Introduction P. 1

Chapter 2 ‘Doing Business in Britain, France, Germany & Italy’

Chapter 4 ‘Discussion & Conclusion’ P. 31

Bibliography P. 34

Appendices

Appendix 1: Survey Sample Appendix 2: Analysis of Question 3 cont. Appendix 3: Analysis of Question 4 Appendix 4: Analysis of Question 5 & 6 Appendix 5: Analysis of Question 7 Appendix 6: Languages Appendix 7: Analysis of Question 10 Appendix 8: Analysis of Question 11 cont.

Appendix 9: Humour Appendix 10: Transcripts of Question 13

¾¾Figure 1 : Analysis of Survey Question 1

¾¾Figure 2 : Analysis of Survey Question 2 ¾¾Figure 3 : Analysis of Survey Question 3 ¾¾Figure 4 : Analysis of Survey Question 9 ¾¾Figure 5 : Analysis of Survey Question 3 cont. ¾¾Figure 6 : Analysis of Survey Question 4 ¾¾Figure 7 : Analysis of Survey Question 6 ¾¾Figure 8 : Analysis of Survey Question 7 ¾¾Figure 9 : Analysis of Survey Question 10

¾¾Table 1 : Analysis of Survey Question 11

¾¾Table 2 : Analysis of Survey Question 5 ¾¾Table 3 : Analysis of Survey Question 8

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The member countries of the European Union are becoming more and more integrated, but, as the above extract shows, cultural differences among the individual states still remain and can pose problems.

Effective cross-cultural management and communication between the countries is essential in order to work efficiently together and build a strong union. We encounter cross-cultural issues in all areas of our life, but in this dissertation I will concentrate on cross-cultural communication and management in a business context.

Today, numerous businesses operate on an international or European level, mergers between companies from different countries have become very common and for these businesses to work efficiently management and employees have to be aware of cultural differences and understand how to use them to their advantage, instead of seeing them as an obstacle.

Having worked in an international environment for several years, I have become aware of differences between nationalities and interested in exploring where these differences come from and how to accept and deal effectively with them.

Over the summer of 2001 I was working as a coach for several European teams within American Express Customer Relations and encountered difficulties with some of my trainees, which, as I realised later, were triggered by cultural differences.

In this paper I will attempt to give a brief overview of the work of three major theorists, who have researched cross-cultural management and communication. In the second chapter I will outline the consequences cultural differences can have on the workings and organisation of business. Due to the parameters of this project I have chosen only three areas to look at - communication, leadership and meetings.

The next chapter will include details about a survey I conducted at American Express Customer Relations, the results of which I will critically evaluate and compare to the theories mentioned in Chapter 1.

During my research I was overwhelmed by the amount of information found in the topic area of cross-cultural management and communication and, with rising interest and fascination from my site, it was necessary for me to limit the aspects and theories looked at, due to the length of this work.

Nevertheless, I hope that awareness and interest will arise in the reader and perhaps even trigger further investigation into areas of interest.

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Cross-cultural issues, affecting the business environment, have already been explored by several theorists. G. Hofstede is the major author considered for this work, but a brief overview of the work by Trompenaars & Hampden-Turner will also be given and taken into consideration. Generally it is to be said that theories on cross-cultural management and communication in business describe tendencies within the different cultures. Each culture will inevitably display features of all cultural dimensions, but some will predominate. Individuals within each society have varying views and attitudes, but traditionally cultures show general tendencies towards certain behaviour, values, attitudes and beliefs.

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different cultural dimensions (Cole, G.A., 1996: 117).

(Source of photo: http://cwis.kub.nl/~fsw_2/iric/hofstede/)

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In a more individualistic society the individual is in the centre, it is important to go one’s own way and not to be influenced by other people.

According to S. Dahl (2000), Anglo-Saxon countries, including Britain, tend show more individualistic features. As an example he mentions the fact that individualistically oriented societies educate their people to independence. It is quite common for young people in Britain, for instance, to move out of the parents’ home when starting university, whereas in more collectivistically oriented cultures, for example in Italy, this is far more unlikely as the family plays an extremely important role here.

In collectivist societies group goals are far more important than the individual’s own interests. As S. Dahl (2000) mentioned, this is why Bonus Schemes in businesses in collectivist cultures tend to be less successful than in individualistic societies. Individuals do not want to stand out from the group and therefore will avoid achieving better goals, quality or effectiveness than the other group members.

American Express, which deals with numerous different cultures, has implemented a Bonus Scheme, which takes account of these differences. Not only is an individual bonus available, but also a team and a departmental bonus, thus encouraging also collectivist oriented individuals to give their best, in order to help the team and department to achieve their goals.

G. Hofstede (2001) examined further what influence individualism/ collectivism has in a business context. Individualistically oriented individuals will feel more comfortable in a job, which leaves enough time for family, friends and personal life. Personal accomplishments, challenge and high earnings are other features typically desired by people from individualistic countries.

In collectivist societies on the other hand, personal opinions rarely exist (G. Hofstede: 2001) and direct confrontation should be avoided.

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Countries and cultures can also be described as showing more masculine or feminine tendencies - again, this can affect how business is conducted in that country.

)HPLQLQHHcultures, as they display more ‘feminine’ features, are said to

be more tolerant cultures, concerned for the social well being and welfare of its citizens, whereas PDVFXOLQH cultures generally focus

more on materialism, competition and success and are very career oriented societies (Dahl, S., 2000; Cole, G.A. 1996:117).

G. Hofstede (2001:281) mentions that advancement, earnings, training and up-to-dateness are important for men in their jobs. Women value a friendly atmosphere, position security and good physical conditions at work.

According to Hofstede (2001:285) German speaking countries (for example Germany) show more masculine tendencies, Anglo countries (for instance Britain) are just above average on the masculine site and the Latin (for example France) countries show more feminine features.

This dimension plays a more important role in connection with some of the other dimensions Hofstede mentions, as they can intensify the effects of masculine and feminine tendencies.

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It is obvious from the above statement that this dimension does affect the world of business considerably. Hierarchies within companies do play a role in every European country, but are seen as less important (low power distance) in some cultures than in others (high power distance).

According to G. Hofstede (2001:431) a larger power distance usually also implies political centralisation and lack of co-operation between citizens and authorities.

These characteristics can be applied to business as well. In a society with a larger power distance, stricter hierarchies will exist - ‘superiors will be seen as superior persons.’ (Hofstede, G., 2001:97). Decisionmaking within a company will be centralised and subordinates will have less influence and participation, if any at all.

In low power distance countries on the other hand, business tends to be more participative. Individuals holding superior positions within a