Cross-cultural Management

A case study Presentation

On Sweden Company & their subsidiary in China

Group Members:Sunny SharmaLeonid ValdMandeep AulakhQiyue ZhouRaghav Mehra

Culture…“Software of mind”- HofstedeMental programmingInfluence organizations – both at macro

and micro level

Cross-Cultural ManagementManaging culture across the boarders Because of globalization and the rapid

development of economicsCross-Cultural Management deals with:

leadership Style Motivational approaches Organization structure Strategies

Differences between Sweden and Chinese cultures

Swedes• Egalitarian in nature

• Competition is not encouraged

• Maintain eye contact coupled with

hand shaking when greeting

• Business wear is conservative

• Usually cut and dried

• Punctual

• Meetings governed by an agenda

• Status is not very important

• Treat all people with equal respect

and deference

• Consensus driven

Chinese• Collective society

• Look towards the ground when

greeting

• Business attire is conservative and

unpretentious

• Appointments are necessary

• Punctual

• Pay great attention to the agenda

• Rank is extremely important

• Prefer face to face meeting

•Working through an intermediary

•Non-confrontational

Case Study

On Monday the new design of the product was sent.

Waiting for a production ready model by Friday.

Sweden China

Email on Thursday saying that there was 1mm error.

What should they do?

ConfusionSweden

Do they need to ask such a question? Why are they waiting for orders instead of taking

initiatives?

China◦ They knew it would be better to provide a standard

model. ◦ However, they decided to notify the Swedish manager

first and let him to decide. It is the Chinese way of showing respect to superior.

Three Attributes – Business ContextManagement StylesStaff BehaviorCommunication System

National Culture Dimensions Index of Sweden and China

PDI IDV MAS LTO UAI0

20

40

60

80

100

120

31

71

5

33 30

81

20

66

118

39SwedenChina

(Hofstede resources page)

MANAGEMENT STYLES

SWEDEN Scenario

• MANAGERS - MEDIATORS• LOW POWER DISTANCE• LOW HIERARCHY LEVEL• MANAGERS EMPOWER

EMPLOYEES AND UTILIZE THEIR KNOWLEDGE

CHINA Scenario

• HIGH POWER DISTANCE • HIGH HIERARCHICAL LEVEL• COLLEAUGES FOLLOW

THE DECISIONS MADE BY SUPEROIR

• MANAGERS ARE EXPECTED TO KNOW EVERYTHING

Staff BehaviorWhat is valued through work ?

Sweden

proud feeling

The job has “became a part of

identity”.

welfare

China

material achievement

Power

Competition

Performance

• Life pressure

• Salary

• The different individualism

scores

Sweden• discussion • comprehensive

decisions

China• Wait for the decision from

managers. • Afraid of expressing

themselves• No suggestion

What causes difference in staff behavior?

Addressing the Objectives, The Mission, The Vision, Slogans

Swedish - Informal and Formal Mode China – Formal Mode

ReportingE-mailing and Memo’s

Communication System

ThanksQuestions?