THE INTERNATIONAL BUSINESS CONTEXT
To begin with, let us consider the following business situation described by Hofstede & Hofstede (2005: 73-74):
A medium-size Swedish high-technology corporation was approached by a compatriot, a businessman with good contacts in Saudi Arabia. The corporation sent one of its engineers – let us call him Johannesson – to Riyadh, where he was introduced to a small Saudi engineering firm run by two brothers, both with British university degrees. The brothers were looking for someone to assist in a development project on behalf of the Saudi government. However, after six visits over a period of two years, nothing seemed to happen. Johannesson’s meeting with the brothers were always held in the presence of the Swedish business who had established the first contact. This annoyed him and his superiors because they were not at all sure that this business did not have contacts with their competitors as well – but the Saudis wanted to have an intermediary to be there. Discussions often dwelt on issues having little to do with the business – for instance, Shakespeare, of whom both brothers were fans. Just when Johannesson’s superiors started to doubt with the wisdom of the corporation’s investment in these expensive trips, a fax arrived from Riyadh inviting him for an urgent visit. A contract worth several millions of dollars was ready to be signed. From one day to the next, the Saudi’s attitude changed: the presence of the businessman-intermediary was no longer necessary, and Johannesson for the first time saw the Saudis smile and even make jokes.
So far, so good – but the story goes on. The remarkable order contributed to Johannesson’s promotion to a management position in a different division. Thus he was no longer in charge of the Saudi account. A successor was nominated, another engineer with international experience, whom Johannesson personally introduced to the Saudi brothers. A few weeks later another fax arrived from Riyadh in which the Saudis threatened to cancel the contract over a detail in the delivery conditions. Johannesson’s help was requested. When he went to Riyadh, it appeared that the conflict was over a minor issue and could be easily be resolved – but only, the Saudis felt, with Johannesson as the corporation’s representative. So the corporation twisted its structure to allow Johannesson to handle the Saudi account although his main responsibilities were now in a completely different field.
The Swedes and Saudis in this true story have different concepts of the role of personal relationships in business. For Swedes, business is done with a company; for Saudis, a person whom one has learned to know and trust. When one does not know the other person well enough, it is best that contract takes place in the presence of an intermediary or go-between, someone who knows and is trusted by both parties. And the root of the difference between these cultures is a fundamental issue in human societies: the role of the individual versus the role of the group.
Cultural Views Toward Management and Managers
North American Management Culture. Harris and Moran describe Americans as being goal and achievement oriented, believing they can accomplish almost anything given sufficient resources. Americans tend to resent governmental or external interference in their affairs and possess a strong work ethic. They tend toward friendliness and informality, yet in greeting behavior they tend to be a noncontact culture in public. In both play and business, Americans tend to be competitive and aggressive because of their drives to achieve and succeed.
Hofstede (1993) provides an insightful view of management that is consistent with the American culture:
[Management] refers not only to the process but also to the managers as a class of people. This class (1) does not own a business but sells its skills to act on behalf of the owners and (2) does not produce personally but is responsible for making others produce, through motivation. Members of this class carry a high status and many American boys and girls aspire to the role. In the United States, the manager is a cultural hero.
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