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Cross-cultural management

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  1. Introduction.
  2. Fensterbau Becker AG.
  3. Introduction of Brazil.
  4. Application of Hofstede's five dimensions.
  5. Managerial implications.
    1. Hierarchies and structure.
    2. Decision making.
    3. Rules and regulations.
    4. Communication.
    5. Motivating employees.
    6. Negotiations.
    7. Use synergies.
  6. Conclusion.
  7. References.
  8. Appendix.

In times of Globalization the role of foreign countries is more and more increasing. To be more competitive in the global market it is necessary to research international markets i.e. in order to increase growth opportunities, to reduce costs for production and distribution or to find new sales market. Therefore, the considered environment has to be examined for several factors. The P.E.S.T. analysis is a common ?tool' to do this. One significant factor is to examine this market for its culture what is an integral part of the operating environment. According to Daniels ?culture refers to learned norms based on values, beliefs and attitudes of a group of people.? (Daniels, 2006, p.49) In order to be successful in a certain region or country a company must build an awareness of cultural differences. Cultural differences can be found in communication (spoken, written or silent language), information and task processing, risk-taking behaviour, relationship preference, work motivation, religion and social stratification. In the following chapters I will show how to discover cultural differences, how to deal with them and especially how to implicate this awareness in a company's business in a certain country. (Daniels, 2006)

[...] o Try to avoid introducing reforms to often. This will increase their anxiety of unknown situations and discourage them because of their threat of unknown situation. o Provide very detailed job descriptions to avoid uncertainties which could affect business in a negative way. Communication o Even if in a big amount of informal emails are considered as irrelevant in the German culture it has a positive impact on subordinates in Brazil. They expect to be more informed than Germans in order to reduce insecurity to a minimum. [...]

[...] Therefore, they have a more democratic and consultant management style. Before making their decision, they want to hear subordinates' opinion because of the awareness that they are also well educated with big expertise. Their opinions are part of decisions although this may lead to long discussions what may cause delayed decisions. These are indications for a small Power- distance. Despite interacting within the company is very familial it is affected by an internal reward system. Each subordinate claim for equal working conditions and expects a reward and acceptance for its individual ideas. [...]

[...] o Use an autocratic management style. It is considered as an ideal management style if managers are acting like a ?good father'. In other words that means to give them clear instructions in a benevolent way. Decision making o Prevent decision making in a democratic way. Brazilians are not as assertive as Germans. They avoid resolving problems by fighting them. Instead a manager should try to create a consensus in the group. o Work councils are good institutions to establish. [...]

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