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In the article, Cultural constraints in management theories, Geert Hofstede examines business management around the globe from a cultural perspective. He explains how he believes there are no universal practices when it comes to management and offers examples from the US, Germany, France, Japan, Holland, China and Russia. He demonstrates how business management theories and practices are very much subject to cultural norms and values and by understanding these differences, it can give managers an advantage in global business practices. I found this article to be very insightful and I enjoyed reading about different management practices around the globe. The author states that the people who develop business strategies are only human and …show more content…
They also see their managers as task masters and expert problem solvers rather than as motivators and they value production roles more than leadership roles (Hofstede, 1993, p. 83). In Japan, they value employee loyalty. They expect their workers to join a company and remain there for the duration of their working life. They have a groupthink outlook and spend a lot of time working in groups. They value what is good for the company and the team rather than looking for individual recognition and tend to be more peer led than manager led, which means that US management cultures are not a good fit for countries like Japan (Hofstede, 1993, p. 83-84). In France, employees who are educated are more highly respected and their workers are divided into two categories. There are the properly educated workers (cadres) and the not properly education workers (non-cadres). There is no crossing between the two and the cadres are given privileges that the non-cadres are not regardless of their actual job title or task (Hofstede, 1993, p. 84-85). In Holland, they manage by consensus (Hofstede, 1993, p. 85). China has many smaller, family run businesses and because of this, many times the manager and the owner are the same. They tend to be more specialized and less global, and most of the decisions are made by the most dominant member of the family that owns the business. They are very thrifty when it comes to cost and spending and apply Confucian values on money. Their management system is very lacking of modern business management practices (Hofstede, 1993, p. 86). In short, all these comparisons can be summed up by saying that all companies everywhere have a concept of management, but what it means and how it’s practiced is different around the world (Hofstede, 1993, p. 88-89). So, if
Most countries have their own unique social hierarchies, shaped by the cultures and history of the people. Social hierarchies are the way individuals are classified based on their skill sets, incomes and social standing and are usually passed down for many generations. Because of the factors that shape these hierarchies, it is impossible for a country to change overnight, but it can be done over time. Some countries have very clear structured hierarchy systems with defined rules and roles. Others countries structures are more loosely defined, having little impact on how individuals are treated and don’t restrict potential. Social hierarchies carry over from everyday life and strongly effect how individuals lead, interact and think in a business environment. The countries of Germany and China have drastically different pasts, which have created different social hierarchies, shaping how their businesses are structured and run today.
As we look at strategy teams they are composed of strategy managers, analysts and directors, (Paroutis, Heracleous, & Angwin, 2013). Each discipline within the team is vital to a successful outcome. Strategy teams vary in size, they can be as few as 10 or as many as 50 in one team, (Paroutis, et al., 2013). The director oversees the operation, insuring progress is being made and strategies are being developed. The strategy team analysts conduct surveys, develop strategy reports based on findings and provide support to the team, (Paroutis, et al., 2013). The strategy mangers are the people who interact with stakeholders and implement the strategies, (Paroutis, et al., 2013). This is a high pace position that requires excellent social skills and versatility in function, (Paroutis, et al., 2013). This can be a very demanding position that requires extensive
Societies have different cultures and people in each culture are grown and raised with a set of norms, values, and beliefs. These shared values and beliefs are learned from their childhood through their adulthood. Culture is not something which everyone is born with, but it is something which everyone learns while growing up. It does not only influence the daily lives, but it also influences the business activities which take place in that particular society. Many of us work with people who have different backgrounds and that makes it important for us to understand the differences between cultures. So, although cultures might look similar, there are differences in many aspects which distinguish them from each other. There are five cultural
Wit, BD & Meyer, R 2010, Strategy: process, content, context : an international perspective, Cengage Learning EMEA, London.
90) describes people in collectivist cultures rely heavily on “in-groups which look after them in exchange for loyalty.” China and Japan are high power distance cultures. They have a hierarchical structure where societal movement is minimal. Hao (2015) describes collectivist cultures to place emphasis on “what is best for the social institutions that [an individual] belongs to over personal ambitions and goals.” Both Chinese and Japanese cultures are motivated and driven by success as seen by evidence on each countries emphasis on the importance of education (Country Comparison. n.d.). Long-term orientation allows both countries to prepare for the future and achieve long-term goals. While practical in their efforts they are “working to serve [future] generations” (Country Comparison. n.d.). Leisure time is not an emphasis in either culture and leads to “self-restraint and the emphasis on hard work and achievement” defining both China and Japan as restrained cultures (Hao,
... process essentially entails functions such as planning, organising, leading or directing and controlling the resources of an organisation. Strategic management is the application of this management process at the top level of the organisation. At this level the focus is on the resources, capabilities and core competencies or the company as a whole and on the ways to achieve success over the long term within the context of changing and ever-competitive environments. According to Johnson et al, strategies do no happen by themselves. Strategies involve people, especially the managers who decide and implement. Strategic management consists of 3 elements, understanding the strategic position of an organisation, making strategic choices for the future and managing strategy in action. Strategic management thus entails two tasks, strategy making and making strategy work.
Ahlstrom, D., & Bruton, G. D. (2010). International Management: Strategy and Culture in the Emerging
Culture can be defined as the beliefs, values and the pattern of behavior of an individual within designated areas. The culture of organizations defines shared values and behavioral expectations. Cultural issues are especially basic issues all around the globe. These issues can happen in various routes relying upon the size, area and the custom culture of that institution. Social issues happen even because of the states of mind and how each individual comprehend in diverse business environment. Today, the corporate administrations and rising business firms have chosen to give the essential attention on trainings and classes at the multicultural working environment that will help them to understand and create
Svensson, G., 2001. 'Globalization' of Business Activities: A 'Global Strategy' Approach, Management Decision, 39(1), pp.6-18.
The differences in other cultures vary from beliefs to ways of life, or norms, of the different societies. The importance of understanding and sensitivity to other countries’ differences is crucial to a business’ success. “Lack of familiarity with the business practices, social customs, and etiquette of a country can weaken a co...
The Hofstede model of national culture differences, based on research carried out in the early seventies, is the first major study to receive worldwide attention. This influential model of cultural traits identifies five dimensions of culture that help to explain how and why people from various cultures behave as they do. According to Hofstede (1997) culture is Ù[ collective programming of the mind? This referring to a set of assumptions, beliefs, values and practices that a group of people has condoned as a result of the history of their engagements with one another and their environment over time. In this study, culture refers to a set of core values and behavioural patterns people have due to socialisation to a certain culture. The author̼ theoretical framework will be applied to compare differing management practices in China and the West. The five measurements of culture identified by the author are:
Miroshnik, V. (2002). Culture and international management: a review' The Journal of Management Development 21(7): 521-544
Can the effects of cultural misunderstandings can be painful for the individuals, but also for the organization as a whole. Embarrassing situations and inadvertently insults, offenses and failure to achieve individual and organizational goals are among the consequences of the joint. Experience of many managers and researchers in the field of strategy, organization, and the development of the theory of the organization suggests all this ", the study of cultural issues at the organizational level is absolutely essential to a basic understanding of what goes on in organizations, and how it works, and how to improve" (Shin 1990).
Strategy formulation is the process of establishing the firm's mission, goals, and choosing among alternative strategies or plans; it involves and implies that preparing the best approach to respond to the circumstances of a firm's environment, whether or not its conditions are known in advance; being strategic and tactical, then, means being clear about the management's aims; being aware of the company's resources, and incorporating both into being consciously responsive to a dynamic environment (SM, 2010). As nearly all businesses have limited resources, top leaders and management must determine which alternative plans or strategies will do well to the organization most; strategic management requires attention to the big picture and the motivation to adapt to circumstances, and consists of the following aspects:
in order to be a successful professional. In United States Companies is common to see