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CASE APPLICATION 1:
Learning to love Globalization:
Requirement :
What global attitude do you think characterized SAP prior to 2002? How do
you know? What global attitude do you think most characterizes it now?
Explain.
I think that the attitude that SAP has before 2002 was ethnocentric. Because the manager of company who was very good in making global decision and handling the foreign problems but he did not shared his characteristics with anyone else especially in the company’s headquarter. He hides his qualities and approach because the global perspective was unacceptable in the company at that time. After 2002, the company has changed its attitude from ethnocentric to polycentric because they have opened their branches in other countries, hired foreign managers and have allowed the managers of those foreign areas to do their best. Now they recognize and believe that new managers and people can also do better. That is why they have distributed their mega projects into different parts and assigned these to different stations. For example, analytical work is done in India, product finishing, look and feel are the duty of employees in California and the coding of software is done in walldrof. Another reason through which we can find that the attitude has changed is making English as the official language for the company meetings.
Requirement:
Do some cultural research on Germany ,the united states and India .compare
the cultural chacteristics of Germany and united states. What similarities and
differences exist? How about with Germany and India? How these cultural
differences may be effecting the situation at SAP?
In this research we have considered the Hofstede analysis of these countries cultures and we have found some other variables like appearance, behavior and communication .We will discuss Germany then India and then America.
Germany
Hofstede Analysis:
The Hofstede analysis for Germany shows their emphasis on individualism and uncertainty avoidance. Power distance and long-term orientation are both ranked considerably lower than the others. This illustrates Germany’s belief in equality and opportunity for each citizen, as well as its ability to change and adapt rapidly.
Appearance
Business dress in Germany is very conservative. Businessmen wear dark suits; solid, conservative ties, and white shirts. Women also dress conservatively, in dark suits and white blouses. Chewing gum while talking to someone is considered rude. Don't be surprised if occasionally you see a fashion statement with white socks being worn with a dark suit.
Behavior
Germans are strongly individualistic. The German thought process is extremely thorough, with each aspect of a project being examined in great detail. This process is often times very time-intensive. However, once the planning is over, a project will move very quickly and deadlines are expected to be honored. Germans do not like surprises. Sudden changes in business transactions, even if they may improve the outcome, are unwelcome. German citizens do not need or expect to be complimented. In Germany, it is assumed that everything is satisfactory unless the person hears otherwise. Punctuality is necessity in Germany. Arrive on time for every appointment, whether for business or social. Being late, even if it is only by a few minutes, is very insulting to a German executive. When being introduced to a woman, wait to see if she extends her hand.
Business is viewed as being very serious, and Germans do not appreciate humor in a business context. People that have worked together for years still shake hands each morning as if it were the first time they met.
Communications
German is the official language. Approximately ninety-nine percent of the population speaks German. However, there are several different dialects in the various regions. Germans love to talk on the telephone. While important business decisions are not made over the phone, expect many follow up calls or faxes. Germans guard their private life, so do not phone a German executive at home without permission. Titles are very important to Germans. Do your best to address people by their full, correct title, no matter how extraordinarily long that title may seem to foreigners. This is also true when addressing a letter.
The word "no" has harsh implications in India. Evasive refusals are more common, and are considered more polite. Never directly refuse an invitation, a vague "I’ll try" is an acceptable refusal. Do not thank your hosts at the end of a meal. "Thank you" is considered a form of payment and therefore insulting. Titles are very important. Always use professional titles.
America
Hofstede Analysis
The Hofstede analysis for the United States is very similar to other World Countries that have their heritage founded in Europe with strong ties to the British Isles. Individualism ranks highest and is a significant factor in the life of U.S. Americans. The low ranking of Long-term Orientation reflects a freedom in the culture from long-term traditional commitments, which allows greater flexibility and the freedom to react quickly to new opportunities. Power distance ranks the lowest in the whole world.
Appearance
Business suit and tie are appropriate in all major cities. Wear dark colored business suits in classic colors of gray and navy. For an important formal meeting, choose a white dress shirt, for less formal a light blue shirt will still give you a conservative appearance. Women should wear a suit or dress with jacket in major cities. Wearing classic clothing and classic colors of navy, gray, ivory, and white will ensure you give a confident and conservative appearance. Rural areas and areas with extremely warm summers have more informal wardrobe requirements. Women may wear a business dress, or skirt and blouse, in rural areas. Men may conduct business without wearing a jacket and/or tie in rural areas. Clothing, whether formal or casual, should be clean and neat in appearance. Men may generally wear jeans or khaki pants with a shirt for casual attire. Women may wear comfortably fitting slacks with a casual shirt. Wearing jeans or shorts, even in a casual setting, may be inappropriate for the city. It is better to err on the conservative side if you are not sure.
Behavior
Business conversation may take place during meals. However, many times you will find more social conversation taking place during the actual meal. Gift giving is discouraged or limited by many US companies. A gracious written note is always appropriate and acceptable. If you do give a gift, it should not appear to be a bribe. An invitation for a meal or a modest gift is usually acceptable. If you are someplace with a line or queue, go to the end and wait your turn.
Do not use or chew on a toothpick in public. Many public places and private homes do not allow smoking. In some areas laws have been passed to prevent smoking in public places.
Communications
Offer a firm handshake, lasting 3-5 seconds, upon greeting and leaving. Maintain good eye contact during your handshake. If you are meeting several people at once, maintain eye contact with the person you are shaking hands with, until you are moving on the next person. Good eye contact during business and social conversations shows interest, sincerity and confidence. Good friends may briefly embrace, although the larger the city, usually the more formal the behavior. Introductions include one's title if appropriate, or Mr., Ms, Mrs. and the full name. Business cards are generally exchanged during introductions. However, they may be exchanged when one party is leaving. A smile is a sign of friendliness, and in rural areas you may be greeted with a "hello" rather than a handshake. Ask permission to smoke before lighting a cigarette or cigar. Due to health concerns, you may or may not be given permission.
How the cultural differences be effecting the situation at SAP.
The cultural differences among these countries can effect SAP in great way. The things or action that are appreciated in one country may not be appreciated or considered bad in the other things. For example an employ may call his manager directly by his name in US because of less power distance and the manager may not mind it, but if someone do the same being the employ of same company in India can suffer a lot. Another example is of presenting gifts, an Indian may not mind it or consider it but an American can mind it. We can present more example like these which effect directly the situation at SAP.
Requirement:
What could SAP managers do to support, promote, and encourage cultural
awareness among the various global locations? Explain.
If the SAP managers want to support, promote and encourage cultural awareness among the various global locations they would first find out the differences between SAP and the local values of the stations. They should know what will be the reactions / effects of organization culture upon them. A manager should analyze and coupe with any conflicts if there exists. The whole culture of organization should not be in the opposition of any group of employees in a foreign station. The managers of SAP can support, promote and encourage the cultural awareness by arranging cultural awareness trainings. They can arrange these trainings for both new and old employees whenever they are needed.
CASE APPLICATION 2
WHEN YES DOESN’T ALWAYS MEAN YES, AND NO DOESN’T
ALWAYS MEAN NO
REQUIREMENT :
Would legal-political and economic differences play a role as companies
design appropriate cultural awareness training for employees? Explain
The legal-political and economic differences do play a role in designing appropriate cultural awareness training for employees. If a manager is going to design training for employees, he must keep these differences in mind because the employees will follow these things in future. For example, if a company is working in command economy and they have been trained according to market economy then the result is quite obvious i.e. failure. Similarly if cultural values of employees are not observed, they may stop working efficiently or even stop working. So for manager it is necessary to keep legal-political and economic values in mind while designing and employee training programme.
Requirement :
Pick one of the country mentioned in the case do some cultural research on
it. what did you find about the culture of that country? How might this
information effect the way a manger in that country plans, organize, leads
and control?
The country upon which I have selected in this requirement for the cultural research is Germany.
Hofstede Analysis
The Hofstede analysis for Germany shows their emphasis on individualism and uncertainty avoidance. Power distance and long-term orientation are both ranked considerably lower than the others. This illustrates Germany’s belief in equality and opportunity for each citizen, as well as its ability to change and adapt rapidly.
Appearance
Business dress in Germany is very conservative. Businessmen wear dark suits; solid, conservative ties, and white shirts. Women also dress conservatively, in dark suits and white blouses. Chewing gum while talking to someone is considered rude. Don't be surprised if occasionally you see a fashion statement with white socks being worn with a dark suit.
Behavior
Germans are strongly individualistic. The German thought process is extremely thorough, with each aspect of a project being examined in great detail. This process is often times very time-intensive. However, once the planning is over, a project will move very quickly and deadlines are expected to be honored. Germans do not like surprises. Sudden changes in business transactions, even if they may improve the outcome, are unwelcome. German citizens do not need or expect to be complimented. In Germany, it is assumed that everything is satisfactory unless the person hears otherwise.
Punctuality is necessity in Germany. Arrive on time for every appointment, whether for business or social. Being late, even if it is only by a few minutes, is very insulting to a German executive. When being introduced to a woman, wait to see if she extends her hand.
Business is viewed as being very serious, and Germans do not appreciate humor in a business context. People that have worked together for years still shake hands each morning as if it were the first time they met.
Communications
German is the official language. Approximately ninety-nine percent of the population speaks German. However, there are several different dialects in the various regions. Germans love to talk on the telephone. While important business decisions are not made over the phone, expect many follow up calls or faxes. Germans guard their private life, so do not phone a German executive at home without permission. Titles are very important to Germans. Do your best to address people by their full, correct title, no matter how extraordinarily long that title may seem to foreigners. This is also true when addressing a letter.
The above information may force the manger to take decisions and perform his duties according to their values. As German people show more emphasis on the uncertainty avoidance so the manger should take decisions that have low chances of uncertainty. Another thing is that German people don’t accept is time delays so the manger should plan, organize, lead and control within the given deadline.german people accept and adapt the changes but they totally dislike the sudden change so being a manager one should do his job in such away that sudden changes are totally eliminated.
