Understanding of national cultural differences
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|Релевантные слова:||culture, international, management, cultural, national, approach, local, countries, people, cultures, expatriates, personnel, business, multinational, values|
Internationalization of economic life on a global scale is real and objective process. Deepening of the integration processes and the international division of labor, the rapid rising of foreign investments, the world becomes “global village”. The greatest role in these processes is played by the multinational enterprises which are almost forming contours of the world economy. The companies make decisions on location of their productive forces not only at domestic markets, but also abroad, by taking into account the benefits of international diversification. The international competition and the international character of manufacturing dictate to companies the strategy of management and the organization which would strengthen their competitive comparative advantages. Management of an international company becomes more complicated in comparison with national management as a result of significant national differences in economic, political, legal and cultural backgrounds in the business organization. In order to adequately respond to the demands of a changing international environment, international managers should emphasize on significance of the development of positive corporate culture.
Corporate culture is the unique ability to manage through the use of the creative potential of individuals, relationships within the organization and values of the organization. The positive corporate culture becomes important strategic competitive advantage of the company. Cultural distinctions can create barriers and misunderstanding, but, on the other hand, they can become a source of advantages. In the multinational company, irrespective of organizational forms, branches, the size of the enterprise, there are opportunities to strengthen these advantages.
David E. Liliental defined multinational corporations (MNC) as “the corporations…which have their home in one country but which operate and live under the laws and customs of other countries as well”.
A somewhat different definition based on the characteristics of the overall results of the company, gives Yair Aharoni, "The company is a multinational, if it operates in more than one country and all over the expanding volume. "
According to Peter Drucker, the company based in the USA can be named multinational if “its headquarters is located in the USA, but its organization, industrial activity, aspirations aren't limited to limits of the USA … the corporation top management doesn't become isolated on any one region. . . The administrative personnel thinks and acts according to the requirements of international business, without limiting their activities by national frameworks, including the patriotic feeling. ”
The specifics of the international manager are connected to many international business contacts and foreign trips. Ignoring the national specificity of business etiquette will not allow to solve effectively the main problem - providing long-term contacts with foreign partners, which contradicts the strategic settings of international firms. Cross-cultural knowledge will allow to choose the best negotiating tactic, to achieve the objectives of the meeting and the rules of business etiquette forms a unified field of international business relations. Finally, negotiations with any, even the largest multinational corporation are negotiations with its representatives, with people for whom questions of respect, mutual understanding and a moral climate never will lose its relevance.
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