The recent 20 years have been the era of globalization with enormous growth in international trade and foreign direct investment (FDI). In former times, most Western companies did not engage in international business. On the hand their domestic market seemed to be attractive enough and there were sufficient opportunities for growth. On the other hand, companies did not have to take into consideration the specific features of foreign markets, such as foreign languages and “strange” cultural behaviour. Nowadays, however, the changing business environment has forced most companies to seek opportunities in foreign markets as well. (Compare: Kotler, Armstrong, Saunders, Wong; Page 166) This development has led to the existence of so - called MNCs - multinational companies, which conduct business globally. Nowadays, there is no economy in which foreign companies are not active. In those companies, employees, suppliers and customers come from many different cultures, which has led to an increasing awareness about questions related to Cross Cultural Management (Compare: Bergemann, Sourisseaux; Page 9) In my essay, I will concentrate on this topic and I will try to describe cross cultural management in France. Concerning the structure of this essay, I want to start off by trying to give an explanation of the term "culture". Afterwards, I will explain one of the best known models to describe cultural dimensions -Hofstede's 5-D-Model- and point out French and German cultural elements. But my main goal is to show how culture influences the management process and the business behaviour of the French company leaders and to compare these elements to the German business people. I will explain some differences between German and French business people, as far as management and leadership are concerned, by the help of an investigation of small and medium – sized companies. By describing three important features – values and objectives, internal leadership and external leadership I will point out the main differences between German and French company leaders, as far as leading and representing the firm, but also behaviour in daily business life and the relationship to business partners is concerned. Finally, I will point out, what German business people have to consider when they do business with French companies, how they can avoid mistakes in business decisions, how Germans should behave in a French company and draw a conclusion of this essay.
Table of Contents
1. Main objectives and overview of the essay
2. Definition of the term "culture"
2.1 Hofstede's 5 - Model
2.2 German and French cultural dimensions in comparison
3. Intercultural communication – Comparison between Germany and France
3.1.Goals and Values
3.2. Internal Leadership
3.3 External Leadership
3.4 Summary of the results
4. Summary
5. Reference
Objectives and Core Topics
The primary objective of this essay is to analyze how cultural differences influence management processes and business behavior by comparing German and French managers within small and medium-sized enterprises (SMEs).
- Theoretical exploration of the term "culture" and Hofstede's 5-D model.
- Comparative analysis of German and French cultural dimensions.
- Investigation of leadership styles and decision-making behavior in SMEs.
- Examination of specific management features: values/objectives, internal leadership, and external leadership.
- Practical recommendations for Germans doing business with French companies.
Excerpt from the Book
3.1 Goals and values
Group 1 (Goal 1): This manager attaches a lot of importance to tradition and is closely tied to his home. The company shall be handed over to family members. Power and social status play a minor role and common leadership is accepted. selling the company is an option that is not thought of.
Group 2 (Goal 2): For this type of manager tradition is important as well and the company shall be handed over to family members. However, contrary to type 1, common leadership is rejected, whereas power, money and social status play and important role.
Group 3 (Goal 3): This type of manager does not attach importance to family traditions. Just as Type 1 he does not reject family tradition, and does not consider social status to be important. Altogether, he is reluctant to traditional values, contrary to type 1 and 2.
Group 4 (Goal 4): This type of manager accepts family tradition, but the company does not necessarily have to be handed over to family members, which distinguishes him from type 1 and 2. He does not reject common leadership, but social status and tradition are important to him.
Similarities of all types: Although all types have different values, they have certain common goals, such as high profitability, high market share, low degree of debt and continuation of the company.
Summary of Chapters
1. Main objectives and overview of the essay: Provides the context of globalization and sets the scope for examining cross-cultural management differences between France and Germany.
2. Definition of the term "culture": Explores various theoretical definitions of culture and introduces Hofstede's 5-D model as a framework for the subsequent analysis.
2.1 Hofstede's 5 - Model: Details the five cultural dimensions (power distance, individualism/collectivism, masculinity/femininity, uncertainty avoidance, and short-/long-term orientation).
2.2 German and French cultural dimensions in comparison: Applies Hofstede’s dimensions specifically to the business environments of Germany and France to highlight organizational implications.
3. Intercultural communication – Comparison between Germany and France: Introduces the research methodology used to compare leadership styles and decision-making in SMEs in both countries.
3.1.Goals and Values: Categorizes managers into four distinct groups based on their orientation toward family tradition, social status, and common leadership.
3.2. Internal Leadership: Compares management styles regarding employee autonomy, creative input, and sanction mechanisms within SMEs.
3.3 External Leadership: Examines how managers interact with external business partners, including customers and suppliers, and how they perceive trade customs.
3.4 Summary of the results: Synthesizes the empirical findings, confirming the more authoritarian nature of French leadership compared to the democratic, mutual approach favored in Germany.
4. Summary: Concludes the essay by reflecting on the cultural findings and linking them to historical and political developments in both nations.
5. Reference: Lists the academic literature and digital sources utilized throughout the essay.
Keywords
Intercultural Management, Cross-Cultural Management, Germany, France, Hofstede, Power Distance, Leadership Style, SMEs, Business Behavior, Globalization, Values, Decision-Making, Individualism, Uncertainty Avoidance, Organizational Culture.
Frequently Asked Questions
What is the core focus of this essay?
The essay focuses on comparing the management and leadership styles of German and French managers within small and medium-sized enterprises (SMEs) to identify cultural influences.
Which central topics are discussed?
The work covers definitions of culture, Hofstede's cultural dimensions, comparative analysis of German and French business values, and internal vs. external leadership behaviors.
What is the primary research goal?
The aim is to demonstrate whether cultural differences exist between German and French managers and to analyze how these differences manifest in daily business operations.
What scientific methodology was employed?
The author utilizes an investigation based on a 1994 research study conducted by the universities of Darmstadt and Montpellier, which used uniform questionnaires to survey managers in SMEs.
What does the main part of the essay address?
The main part analyzes empirical data regarding management values, internal leadership (subordinate management), and external leadership (partner/customer relations).
Which keywords best characterize the work?
Key terms include Intercultural Management, Hofstede's 5-D model, Power Distance, Leadership Style, Germany, France, and SMEs.
How does the author define French management style?
The author characterizes the "typical" French management style as more authoritarian and centralized compared to the democratic and delegation-oriented German style.
Why is historical and political development considered important?
The author suggests that the differing historical and political systems, such as French centralism (Paris as the center) versus German federalism, significantly shape the management structures found in businesses.
- Quote paper
- Christian Herbst (Author), 2004, Cross Cultural Management in France, Munich, GRIN Verlag, https://www.grin.com/document/39896
