Management Styles

Chapter 5 Summary

Chapter 5 discusses the management styles around the world, and how some cultures seem to emphasize the importance of information and competition, while others focus more on relationships and transaction cost reductions, however There are no simple answers and the only safe generalization is that entrepreneurs working in another country must be sensitive to the business environment and be willing to adapt when necessary.

Unfortunately, to know when adaptation is needed is not always easy, in some cases adaptation is optional, while in others it is really desirable. Understand the culture you are entering is the only solid basis for planning.

The behavior of companies is largely derived from basic cultural environment in which the company operates and as such, is subject to the extreme diversity found among the various cultures and subcultures. Environmental considerations significantly affect attitudes, behavior and prospects for foreign businessmen. Patterns of motivation of entrepreneurs, business positions, sources of authority, and his own personality.

Different forms of motivation inevitably affect the methods of doing business in different countries.

The new generation of international business appears to have greater sensitivity to cultural variations, however, is not enough, the international operator must be constantly alert and prepared to adapt when necessary. One must always realize that, regardless of the time in a country, the alien is not a place in many countries that the person can always be treated as a stranger.

To conclude, it is very important to avoid the fundamental error of believing that knowledge of an acceptable proportion of the culture itself.