10_Intercultural Management Skills Flashcards
Standardisation vs Specialisation
Success of Intercultural Management
- success of intercultural management depends on whether cross-cultural standardisation is possible or whether adaptation to local peculiarities is necessary (specialisation)
Standardisation
- transfer of proven central approaches such as corporate identity, principles , cultural paramters, corporate strategy or brand and image policy, to the global corporate structure
Specialisation
- consderation of country-specific peculiarities
- e.g. in areas of organization, production and marketing, but in particular also in relation to market relations e.g. towards customers and suppliers
EPRG-Model by Perlmutter
Definition
- how to handle and combine standardisation and specialisation of central approaches
**4 Strategies of EPRG-Model **
by Perlmutter
- Ethnocentri Approach
- Polycentric Approach
- Geocentric Approach
- Regiocentric Approach
- approaches are management models for globally active companies
Ethnocentric Approch
EPRG-Model by Perlmutter
- own cultural group is superior to other
- using same management style as practiced in business’s home country
- risky -> losing face or millions in profit
100% STANDARDIZATION
Polycentric Approach
EPRG-model by Permultter
- building workforce of locals bc they know best region’s culture, work style, consumer preferences etc.
- integrating qualified locals into management team can be a successful strategy
100% SPECIALIZATION
Geocentric Approach
EPRG-model by Perlmutter
- globally comprehensive management concept linked to decentralized organizational model with predominantly local managers
- neither home nor host country preferred -> combination of both styles
- most highly qualified individuals (regardless of country or region) placed in management position
neither SPECIALIZATION NOR STANDARDIZATION
In context of EPRG-model by Perlmutter:
Which Approaches don’t overemphasize neither cultures
- Geocentric approach
- regiocentric approach
Regiocentric Approach [1979]
EPRG-model by Perlmutter
- similarities in terms of regions
- standardization within defined economic (e.g. EU, NAFTA, ASEAN)
- some strategies and products can be used in set of countries
- none of the cultures overemphasized
Characteristics of companies applying Ethnocentric Approach
-main decisions made in HQ
- home standards applied on all markets
- focus on domestic objectives
- identification with the owner’s nationality
- high positions taken by managers from owner’s country
- NISSAN
Characteristics of companies applying Polycentric Approach
- lower role of main HW
- local standards applied on local markets
- focus on local objectives
- identification with natioanlity of host country
- high positions taken by local managers
- CITICORP +
Characteristics of companies applying Regiocentric Approach
EPRG-model by Perlmutter
- main decision made in regional HQ
- regional standards in regions
- focus on regional objectives
- identification with the region
- high positions taken by regional managers
- Coca Cola, Pepsi, GM
Characteristics of companies applying Geocentric Approach
EPRG-model by Perlmutter
- collaboration with local HW
- universal standards
- focus on global objectives
- global view
- having an experience in different countries is a must to take a high position
- financial crisis: universal approach cheaper
Integrative Management Model
Definition
- requires balance between standardized and specific approaches
Adaptation of management standards to action-relevant cultural peculiarities
1. Attitudes and Reactions that are influenced by a variety of cultures
- fully localized management “culture bound”
2. Generally proven mangement procedures
- standard management “culture free”
Integrative Management Model
Further Expansion
- should be based on conscious decision
- requires intelligent inclusion of culturally relevant action parameters
- missing ratio depends on situation
4-Step-Process-model
for
Intercultural Management Competence
1. Basic competencies [“to have”]
- acquisition of goal-oriented general and specific theoretical and practical knowledge about cultrula and intercultural peculiarities and other parameters influencing behaviour
2. Intercultural knowledge [“to know”]
- acquisition and implementation of ability to combine intercultural knowledge with intercultraul core competencies and reflect one’s own behaviour
3. Intercultural decision making competencies [“to can”]
- transformation and extension of action competencies into an integrated action-oriented intercultural management competence
4. Intercultural Management Competence [“to be”]
- existence of relevant general management competencies and selected intercultural basic competencies
