They include such characteristics of markets as customer needs and tastes that are culturally determined. The cultural aspects of management were introduced to these models [Westney, Zaheer , pp. In the cultural coexistence model, subcultures of foreign subsidiaries coexist but the interaction between them is limited. Cultural Dilemmas of International Management 95 Figure 1 describes the linkages between the concepts discussed above.
Figure 1. TNCs anbo d cultures: national and corporate. Selected Problems of International Management in Cultural Aspects As depicted in section 1 of this thesis, major International Management problems include: — building an effective international strategy, — structuring an appropriate organizational design, — managing people in a cross-cultural environment. Cultural differences influence all the areas mentioned above. Preparing an international strategy requires an environmental analysis.
One of the dimensions that must be scrutinized is the cultural environment. The analysis here concentrates on stakeholders: potential clients, contractors, competitors, regulators, and labour in foreign countries. Managers must be aware of some divergences among national cultures in terms of values, beliefs, convictions, basic assumptions, and artefacts that affect human behaviours, needs, and expectations regarding organizations.
A helpful tool in such an analysis are models of cultural dimensions. Hofstede proposed five dimensions of culture: individualist-collectivist, masculine-feminine, power distance index, the relative need for the avoidance of uncertainty, and long-term versus short-term orientation to life [Hofstede ]. Another useful concept based on seven criteria was proposed by Trompenaars and Hambden-Turner [Trompenaars, Hampden-Turner ]. However, only TNCs that present polycentric, regiocentric or opportunistic attitudes are sensitive to that pressure.
Building an international strategy means solving specific problems, like: geographic spread, local adaptation, global integration, and multi-country, multi-business, and multi-firm issues [Tallman, Yip , p. The goal of a local adaptation is to achieve the maximum fit with local constituencies. The transnational strategy tries to balance the need for responsiveness and integration, whereas the multinational strategy assumes a precedence of the local adaptation over the global integration pressure.
An effective implementation of the international strategy is connected with a structuring process. The multinational strategy is realized in a multinational organization, while the transnational strategy is executed in a transnational model of an organization.
A multinational organization applies a cultural coexistence model of cross-cultural management, while the transnational manages its cultural problems in synergistic manner see Fig. Managing international activities means managing separate functions, like human resources, marketing, finance, production, research and development, etc. The first two are culturally sensitive in particular. Thus the EPRG attitudes can also be observed in human resources management practices and marketing decisions.
In the ethnocentric approach the headquarters make all the key decisions in personnel management and all significant positions in foreign affiliates are held by the parent country nationals. In the polycentric approach the foreign subsidiaries gain control over human resources management, although the headquarters may still make strategic decisions.
Host country nationals usually hold top jobs in foreign subsidiaries. A geocentric attitude to human resources management assumes that a firm relies on the ability and performance when selecting international staff, regardless of their nationality.
A regiocentric philosophy derives from both, geocentric and polycentric. The employees can move from one country to another in a particular region but the employment decisions are based on the skills, abilities and performance of potential staff [McFarlin, Sweeney , p. Standardization versus adaptation is the principal problem of International Marketing. Also here one can find footprints of EPRG concept. Potential divergences among markets are ignored. A polycentric attitude means that managers see differences among foreign markets.
A local adaptation in marketing-mix is implemented. The regiocentric approach tries to reconcile the homogeneity of regional markets and the differences between regions.
Marketing is standardized in countries within one region but at the same time adjusted regionally. The geocentric approach in International Marketing may assume combined ethno- and polycentric attitudes that in International Management are characteristic for a transnational organization and its opportunistic mindset [Rozkwitalska , pp. Conclusions The success that TNCs are able to achieve in an international environment is determined by many factors.
The cultural effectiveness is one of them. The cultural effectiveness is an ability to reach business objectives in a culturally diversified international environment. The model presented in figure 2 assumes that a major determinant of the cultural effectiveness is adjustment among external and internal factors.
Each chapter provides real-life cases together with sample questions that will help readers to draw conclusions from the cases. Each chapter ends with a section on various management implications, together with a section providing useful pointers for students' further research. International HRM will be recommended reading on courses in international management, international human resource management and cross-cultural management, for advanced undergraduates, postgraduates and MBA students.
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Books Add to list Added to list. View 4 excerpts, references background. Jim O'Neill, one of the most influential economists today, shares his insights on how and why he developed one of the most compelling economic concepts of our time in "The Growth Map". View 29 excerpts, references background and methods. Human resource development: theory and practice. Basingstoke: Palgrave.
View 44 excerpts, references background. World class comparisons in HRD. Research report. Leeds: Learning and Skills Council. The benefits of hierarchy.
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