One of the great drivers of globalization is the growth of multinational corporations through mergers, acquisitions, joint ventures, and branching. Many people believe that these integrations will create a standardized corporate culture, a common language for international workers. However, cultural clashes not only persist, but also show signs of increasing.
“There is no formula for exporting a management model from one country to another,” said a Harvard Business School professor. “Every case is different. Often the problem comes from the way the organization is structured. An American company is organized very egalitarianally, with not many levels—only four or five at most. If you bring that organizational model to China, it will not work. Groups of people spontaneously form their own hierarchy. The gap is so wide that what may seem egalitarian in one place may appear authoritarian in another.”
In addition to organizational structures, the way workers are motivated is also very different. The Anglo-Saxon and Nordic regions tend to be more individualistic, while Asia and Latin America are more collectivistic. Therefore, it is a mistake to put the issue of individual performance in a region where people are more interested in the collective.
Day-to-day working relationships can also be a source of cultural clashes. A Filipino semiconductor worker for a Japanese company in Frankfurt has been working for several years under bosses from France, Germany, Japan, and Spain. Everyone speaks English, but because of cultural differences, many of his colleagues have asked to leave. Listen to this worker’s analysis: “We are having a hard time right now because most of my colleagues are German and we are used to working under a German. Recently, a Spanish boss was brought in and things are different. The way the Germans do things is not acceptable. Germans are very direct, whereas the Spanish boss may say something to calm an argument but then act completely differently.”
Conflicts can arise from working tools. For example, Microsoft software is very popular all over the world, but for some jobs, the application may be different. This Japanese company is applying a Japanese-specific software, but a German administrative director thinks that SAP software is better (SAP is a German software company).
Japan is an interesting case study because the Japanese government has tried to introduce Western management models into domestic companies to attract foreign investment, but has not succeeded. The Japanese hoped that as capital flowed in, there would be a ripple effect. In fact, capital kept flowing in, but the management models did not follow.
Japan's major companies seem to be dividing into two groups: one group with companies like Nissan and Sony adopting the model of hiring foreign CEOs, while the other group consisting of traditional giants like Mitsubishi and Sumitomo is keeping the Japanese management model.
While the Japanese are still skeptical of foreign takeovers, they are more willing to accept foreign bosses. New graduates are more accepting of working for foreign companies like Morgan Stanley than they used to be. The problem is that their English is poor, even compared with some other Asian countries.
For many companies in developing countries, the pressure to conform to Western standards is intense, with corporate ethics being the biggest challenge.
However, thanks to the globalization of companies, many cases are much simpler than they seem. This month, BASF, a large German chemical company, acquired Engelhard, a New Jersey-based metals and materials company. Each company has its own corporate culture, but both are global companies, with a presence in many parts of the world.
According to Saigon Businessman Weekend
