This presentation will help to understand cross cultural aspects of business.es

1. Cross-cultural Management
A case study Presentation
On Sweden Company & their subsidiary in
China
Group Members:
Sunny Sharma
Leonid Vald
Mandeep Aulakh
Qiyue Zhou
Raghav Mehra

2. Culture…
 “Software of mind”- Hofstede
 Mental programming
 Influence organizations – both at macro
and micro level

3. Cross-Cultural Management
 Managing culture across the boarders
 Because of globalization and the rapid
development of economics
 Cross-Cultural Management deals with:
 leadership Style
 Motivational approaches
 Organization structure
 Strategies

4. Differences between Sweden and Chinese cultures
Swedes Chinese
• Egalitarian in nature • Collective society
• Competition is not encouraged • Look towards the ground when greeting
• Maintain eye contact coupled with hand • Business attire is conservative and
shaking when greeting unpretentious
• Business wear is conservative
• Appointments are necessary
• Usually cut and dried
• Punctual
• Punctual
• Pay great attention to the agenda
• Meetings governed by an agenda
• Rank is extremely important
• Status is not very important
• Prefer face to face meeting
• Treat all people with equal respect and
•Working through an intermediary
deference
• Consensus driven
•Non-confrontational

5. 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?

6. Confusion
 Sweden
 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.

7. Three Attributes – Business Context
 Management Styles
 Staff Behavior
 Communication System

8. National Culture Dimensions Index of Sweden and
China
118
120
100
81
80 71
66
60 Sweden
39 China
40 31 33 30
20
20
5
0
PDI IDV MAS LTO UAI
(Hofstede resources page)

9. MANAGEMENT STYLES
SWEDEN Scenario CHINA Scenario
• HIGH POWER DISTANCE
• MANAGERS - MEDIATORS
• HIGH HIERARCHICAL LEVEL
• LOW POWER DISTANCE
• COLLEAUGES FOLLOW
• LOW HIERARCHY LEVEL THE DECISIONS MADE
• MANAGERS EMPOWER BY SUPEROIR
EMPLOYEES AND UTILIZE • MANAGERS ARE EXPECTED
THEIR KNOWLEDGE TO KNOW EVERYTHING

10. Staff Behavior
What is valued through work ?
Sweden China
 proud feeling  material achievement
 The job has “became a part of  Power
identity”.  Competition
 welfare  Performance

11. What causes difference in staff
behavior?
• Life pressure
• Salary
• The different individualism
scores
Sweden China
• discussion • Wait for the decision from
• comprehensive managers.
decisions • Afraid of expressing
themselves
• No suggestion

12. Communication System
Addressing the Objectives, The Mission, The
Vision, Slogans
 Swedish - Informal and Formal Mode
 China – Formal Mode
 Reporting
 E-mailing and Memo’s

13. Thanks
Questions?