developing cultural competencies

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Bachofer, Vanessa; Franco Ruiz, Carolina; Vivas L., Maryori

Developing Cultural Competences

Universidad y Empresa, nm. 17, julio-diciembre, 2009, pp. 223-243

Universidad del Rosario

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Universidad y Empresa

ISSN (Versin impresa): 0124-4639

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Universidad del Rosario

Colombia

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Developing Cultural CompetencesVanessa Bachofer*

Carolina Franco Ruiz**

Maryori Vivas L.***

Recibido: junio de 2009 - Aprobado: agosto de 2009

RESUmEn

Este dcument trata la gestin intercultural cm fuente de ventajas cmpetitivas, la cualcn el desarrll del cmerci internacinal tma mayr relevancia. Las empresas que seexpanden en mercads internacinales deben adaptarse a diferentes culturas cn el n decmunicarse de manera efectiva cn el persnal lcal y pder btener ls mejres resultads.Este trabaj es basad en la metdlga de investigacin y accin e incluye el anlisis delcntext intercultural de la cmpaa Skanska Prperty CZ.Palabras Clave: Cultura, cultura nacinal, cmpaa internacinal, cultura crprativa,cultura crprativa de una empresa internacinal, cntext intercultural de una empresa, c-municacin intercultural, ventaja cmpetitiva, cmpetencias culturales, inteligencia cultural.

abStRact

This cntributin deals with a tpic f intercultural management as a surce f cmpetiti-ve advantages whse signicance tgether with the develpment f the internatinal tradebecmes mre imprtant. Firms that expand int freign markets must adapt themselvest different cultures t be able t cmmunicate effectively with the lcal backgrund and tachieve the best pssible results. This entry is based n the methdlgy f actin research

and includes the analysis f the intercultural cntext f the cmpany Skanska Prperty CZ.Key words: Culture, natinal culture, internatinal cmpany, enterprise culture, enterpriseculture f an internatinal rm, intercultural cntext f an enterprise, intercultural cmmuni-catin, cmpetitive advantage, cultural cmpetences, cultural Intelligence.

* [email protected]** [email protected]*** [email protected]

Para citar este artculo: Bachofer, V., Franco, C. y Vivas, M. (2009), Developing Cultural Competences. En RevistaUniversidad & Empresa, Universidad del Rosario, 17: 223-243.


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Univ. Empresa, Bogot (Colombia) (17): 223-243, julio-diciembre de 2009

I. IntroductIon

Tday, mre than ever, glbalizatinis in demand f business prfessi-nals with additinal skills that willset them aside frm the average pr-fessinal. Its simply nt enugh tknw abut freign trade, lgistics,prductin and technlgy. It is ba-sically mandatry t understand themarket in which yur prduct andservices are ffered.

Bundaries fr internatinal busines-ses are becming increasingly n-nexistent. In numerus cuntries fthe wrld, free trade agreements havebecme a pririty fr gvernmentsas part f their ecnmic strategy,and thse are prviding access tthusands f cnsumers never befre

expected. A cultural understanding isessential t ffering glbal prductswith lcal features.

By the same tken, cultural unders-tanding prvides a skillful edge tmanagers wh deal with internati-nal businesses. We are incrementallyliving glbal lives. But managerslive lives that are mre glbal thanmst. (cf. Thmas & Inksn, 2003:6). Glbal business implies glbalschedules, glbal and multiculturalteams and glbal challenges as well.

In the past, glbal business meantbig business. Nwadays, this haschanged dramatically; starting withe-cmmerce and Internet tls that

affrd businesses the pprtunityf an internatinal and glbal reach

while maintaining resurces at redu-ced levels. This implies that anynewh launched their prducts int agiven market place must be awaref glbal business and cultural im-plicatins as well.

Glbal is amng the mst verusedand least understd wrd in businesstday. The phrase ging glbal isused t refer t everything frm pe-ning a rms rst internatinal salesfce t taking a trip utside the Uni-ted States. one cmpany with pera-tins in Mexic and Brazil calls itselfglbal when it is really hemisphe-ric. An Asian cnsumer prductscmpany has been pursuing what itcalls glbalizatin by mving frm

its Philippine and Hng Kng basesint Indnesia, Singapre, and Malay-sia, a strategy that was at best reginal.An increasingly glbal ecnmy isclearly imprtant t businesses tday,and understanding f glbal strategyis a critical element in any leadersrepertire. Infrmatin technlgyand trade that link the wrld havemade exprt markets a vital part f the

sales grwth plan fr manufacturingand, increasingly, service cmpaniesf all sizes. Even cmpanies with alw percentage f internatinal saleshave internatinal suppliers, cmpetewith internatinal cmpanies in theirhme markets, and must meet wrldclass quality standards in rder t hldtheir lcal business(cf. Kanter, 1995).


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Vanessa Bachofer, Carolina Franco Ruiz, Maryori Vivas L.


Crss-cultural management prvidesthe understanding f cultural matters

that determine cnsumers behavir,trends and preferences. Culture gesbeynd the simple flklre repre-senting the heritage and traditin fpeple It represents the way theyare.

While technlgy has brught thewrld tgether, it is still fundamen-tally the peple that are the impr-tant fcus. Technlgy is simply themeans t cmmunicate and assistwhat is really at the heart f everyprduct and service: human beings.

Whether dealing with issues f mar-keting, managing, r negtiating,the success r failure f a cmpanyabrad depends n hw effectively

its emplyees can exercise theirskills in a new lcatin. That abilitywill depend n bth their jb-relatedexpertise and the individuals sensi-tivity and respnsiveness t the newcultural envirnment (cf. Ferrar,2002: 7).

Why d we have t develp CulturalIntelligence and Crss-Cultural Ma-nagement?

Creates cmpetitive advantagesin yur cmpany.

Prvides accurate understandingf cultural matters in rder t fa-cilitate access t new markets.

Helps save time and therefresave mney.

Increases yur RoI.

one f the ways f vercming cul-tural differences is t becme cultu-rally intelligent. That means beingskilled and exible abut understan-ding a culture, learning mre abut itfrm yur nging interactins, andgradually reshaping yur thinking tbehave yurself mre apprpriate.

Fr business internatinal expansinin rder t access new markets, atrst glance culd be thinkable t takerst thse culturally similar, hwevercases such as the ne f small andmedium cmpanies in Chile demns-trate the ppsite. A business study

prepared by Universidad de Chileanalyzing the called Brn Glbal,with 110 small and medium Chileancmpanies are created with an expr-ter prle, shws are characterizedbecause exprt t freign marketsculturally distant like Japan, Chinaand Hlland, amng thers (Cancin& Bnilla, 2009).

Why d we have t invest time andresurces in Cultural Intelligenceand Crss Cultural Management?Research has shwn that failuresin verseas business setting mstfrequently result frm an inabilityt understand and adapt t freignways f thinking and acting rather


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than frm technical r prfessinalincmpetence (Black, Gregersern

& Mendenhall, 1992; Tung, 1988).Fr example Eurdisney nw calledDisneyland Paris, shws hw thelack f cultural sensitivity and thenegative inltratin strategy brughtlss f time, mney and reputatinfrm which they have nly recentlybegun t recver.

II. a deFInItIon oF

culture

Culture is a universal rientatinsystem typical f a sciety, rga-nizatin r grup. This rientatinsystem is built upn specic symblsand is passed dwn in the respectivesciety, rganizatin r grup. It in-uences the prcesses f perceiving,

thinking, evaluating and acting fall members and thus denes theirafliatin t a sciety (cf. Thmas,1993: 380).

The understanding f culture as anrientatin system implies a set fcllective gals, culture specic ru-les f actin and a culture specicreservir f stries. Cllective galsare brken dwn by the members tan individual level and apprpria-ted t a specic situatin. The termculture specific rules f actinrefers particularly t scial cdes,such as cdes f demand and as-sessment r values. By means f thecultural specic reservir f striesthe members f a culture frm, arti-

culate and pass dwn their identity,their cllective and individual un-

derstanding f themselves and thewrld. These gals, cdes, rules andstries are ften nly implicitly pre-sent in acting and at the mst in thefrm f insinuatins. At this pintCrss Cultural Psychlgy cmesint play: It identies, cmprehendsand explains actins in a determinedmanner trying t read cultural c-des ver the agents shulders (cf.Straub, 1999: 166 and 185).

Wesee culture in everyday behavir,but such behavir is cntrlled bydeeply embedded mental prgrams.Culture is nt just a set f surface fea-tures, such as ur mannerisms, urways f speaking t each ther, theway we dress. In fact, these surface

scial behavirs are ften manifesta-tins f deeply embedded, culturallybased values and principles(Thmas& Inksn, 2003: 22).

This understanding f culture im-plies the fllwing tasks f crss-cultural management:

1. Identicatin f effective charac-

teristics f the respective culturespecic rientatin system.

2. Gathering f differences, cmm-nalities and cmpatibility betweendifferent rientatin systems.

3. Develpment and testing f lear-ning methds which allw the in-


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crpratin f freign rientatinsystems int the wn system (cf.

Thmas, 1996: 112).

The s called cultural standardsare central characteristics f a culturespecic rientatin system. Culturalstandards are understd t be alltypes f perceiving, thinking, evalua-ting and acting that are believed nr-mal, self-evident, typical and bindingby the majrity f the members f aspecic culture (cf. Thmas, 1996:112). Values cnstitute the main cul-tural differences. Systematic differen-ces exist in the fllwing dimensins:

1. Values abut pwer and inequa-lity (Pwer Distance PDI).

2. The relatinship between the

individual and the grup (Indivi-dualism IDV).

3. The scial rles expected frmmen r wmen (MasculinityMAS).

4. Ways f dealing with the uncer-tainties in life (Uncertainty Avi-dance Index UAI).

5. Whether ne is mainly preccu-pied with the future r with thepast r with the present (Lng-Term orientatin LTo) (cf. H-fstede, 1997: 236).

Such cultural standards are the basisfr the evaluatin f wn and freign

behavir. Central cultural standardsexist in every culture. Hwever, they

becme effective nly in their speci-c cultural cntext. Thus, central cul-tural standards f ne culture can becmpletely nn-existent in antherr nly be f subrdinate imprtance.Equally it is pssible that differentcultures feature similar cultural stan-dards which yet may fulll distinctfunctins r apply in distinct eldsf actin r whse range f tlerancediffers (cf. Thmas, 1996: 113). Thisusually uncnscius cnditiningthe mental sftware leavesindividuals a cnsiderable freedmt think, feel and act but within thecnstraints f what their scial envi-rnment ffers in terms f pssiblethughts, feelings and actins (cf.Hfstede, 1997: 235). Cultural stan-

dards range frm general values tvery specic, mandatry behavi-ral rules. Cultural standards have acertain range of tolerance inside ofwhich individual r grup specicstamping is accepted. outlying be-haviral patterns and attitudes arerejected and sanctined (cf. Thmas,1996: 112).

Cultural prgramming starts usuallyin the family where a yung child isbrught up. It cntinues at schland later n at wrk. The behavirat wrk is an extensin f the be-havir acquired in the family andat wrk. Plitics, the relatinshipsbetween citizens and authrities,religius beliefs, secular idelgies,


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scientic theries are extensins fmental sftware demnstrated in the

family, at schl, at wrk and in g-vernment relatins. Therefre, theyreinfrce the dminant patterns fthinking, feeling and acting acrssall spheres (cf. Hfstede, 1997: 235et seq.). Particularly imprtant is thefact that individuals wh have beensuccessfully scialized within neculture d notperceive cnsciuslycultural standards in their actin-regulating functin. Nt until theyget in tuch with partners, wh havebeen scialized in anther culture,cultural standards becme perceiva-ble (cf. Thmas, 1996: 113).

In a nutshell, there are sme basiccharacteristics that apply t any cul-ture, which are wrth being taken

int accunt:

1. Culture is shared.

2. Culture is learned and is endu-ring.

3. Culture is a pwerful inuence nbehavir.

4. Culture is systematic and rgani-zed.

5. Culture is largely invisible (cf.Thmas & Inksn, 2003: 24 etseq.).

III. cultural overlaP

sItuatIons

Usually, we aspire t be sufcientlywell infrmed abut urselves andur envirnment in rder t assure anptimal ability t act. We succeed ifwe pssess reliable infrmatin andexperience and if ur envirnment,especially ur interactin partnersbehave the way we expect them t.our wn rientatin system fails assn as we have t deal with a f-reign, unknwn envirnment and assn as the behavir f ur partnersbecmes unpredictable, i.e. as snas the behavir f ur partners is re-gulated by unfamiliar values, cdesand criteria. The behavir f urpartners scialized in a freignrientatin system cannt be anti-

cipated in a secure way (cf. Thmas,1996: 113). This usually happens ins called Cultural overlap Situa-tin (cf. Thmas, 2005: 34).

a. the own

Everybdy lks at the wrld frmbehind the windws f a culturalhme and everybdy prefers t actas if peple frm ther cuntrieshave smething special abut them(a natinal character) but hme isnrmal. Unfrtunately, there is nnrmal in cultural matters (Hfste-


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de, 1997: 235). Basically, everyneassumes that thers behave the waythey d. They think that the way theyperceive and evaluate their envirn-ment, anticipate and try t inuence(the) thers behavir is crrect andapprpriate. As sn as smethingges wrng, i.e. smething unex-

pected and unfamiliar happens, theindividual takes ntice f their wncultural standards s far appliedin an uncnscius way (cf. Thmas,2005: 34 et seq.).

B. the Feign

Individuals frm ther cultures havegrwn up ver many generatinsunder ther gegraphic, climatic,ecnmic, plitic, scial and inte-llectual-cultural circumstances underwhich ther values, rules and cdes

have becme mandatry and underwhich these individuals have deve-lped ther frms f perceiving, fe-eling and acting. These individuals aswell assume that every ther persnin the wrld des behave the way

Figure 1. Cultural Overlap Situation According to A. Thomas (Thomas, 2005: 33)

The Crss-Cultural

The FreignThe own

own culture Freign cultureCultural overlap

Situatin


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they d and the way they cnsidercrrect and leading t success (cf.

Thmas, 2005: 36).

c. the Ineulul / c-ulul

We can reect the wn and takentice f the freign. We als cantake ntice f bth and cmpareintrigued withut mdifying ur be-havir and way f thinking. As snas we have t cperate with persnsf ther cultures, this is nt suf-cient. The wn and the freignhave t be synchrnized in rdert make efficient cmmunicatinnegtiatin pssible (cf. Thmas,2005: 37). If we think, feel and acts differently, hw can we mana-ge t wrk tgether? An increased

cnsciusness f the cnstraints fur mental prgrams versus thse fther is crucial fr successful cm-municatin and interactin. Sucha cnsciusness can be develpedand that while we shuld nt expectt becme all alike, we can at leastaspire t becme mre csmplitanin ur thinking. Successful intercul-tural encunters are nly pssibleif the partners believe in their wnvalues. A sense f identity cmeswith strings attached t the feelingf security frm which ne can meetther cultures with an pen mind.one des notneed t think, feel andact in the same way in rder t agreen practical issues and t cperate(cf. Hfstede, 1997: 237).

Iv. cultural IntellIgence

- cultural sKIlls

The gd news is that intercultu-ral cmmunicatin can be learned.Cultural intelligence, the capabilityt deal effectively with peple frmdifferent cultural backgrunds, is amultifaceted cmpetency cnsistingf cultural knwledge, the practicef mindfulness, and a repertire f behaviral skills (cf. Thmas &Inksn, 2003: 182 et seq.).

Figure 2. Components of Cultural

Intelligence (CQ) (Thomas & Inkson,

2003: 16)

Knwledge Mindfulness

BehavrialSkills

CQ

Knowledge: We have t learn abutther cultures if we have t interactwith them. We shuld learn abuttheir symbls, their heres and theirrituals. While we might never sharetheir values, we may at least btainan intellectual grasp f where theirvalues differ frm urs (cf. Hfstede,1997: 230 et seq.).


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Mindfulness: The recgnitin thatI carry a particular mental sftware

because f the way I was brught upand that ther brught up in a diffe-rent envirnment carry a differentmental sftware fr equally gdreasns (cf. Hfstede, 1997: 230 etseq.; Thmas & Inksn, 2003: 15).

Mindfulness means being aware fur wn assumptins, ideas, andemtins. At the same time it is n-ticing what is apparent abut thether persns assumptins, wrds,and behavir. In a subsequent stepit implies using all f the senses inperceiving situatins, i.e. viewing thesituatin frm several perspectivesand attending t the cntext t helpt interpret what is happening.Fina-lly, this leads t creating new mental

maps f thers and creating new andmre sphisticated categries frthers.Seeking ut fresh infrmatinin respnse t cnrm r discnrmthe mental maps, and using empathyequally are part f the prcess facquiring mindfulness (cf. Thmas& Inksn, 2003: 183). T be capablef bserving the behavir f thers,being mindful f it and reecting nit, and being skilled at mdifyingnes wn behavir n respnse, is akey cmpnent f cultural intelligen-ce (Thmas & Inksn, 2003: 116).

The key elements f cultural intelli-gence are knwledge and mindful-ness. Hwever, in themselves theyare nt enugh. Becming cultu-

rally intelligent is abut acquiringbehaviralskills (cf. Thmas & Ink-

sn, 2003: 183). Skills are based onmindfulness and knwledge pluspractice. It is essential t recgnizeand apply the symbls f the therculture, recgnize their heres, prac-tice their rituals, etc. Nt until then,we can experience the satisfactinf getting alng in the new envirn-ment, being able t reslve rst thesimpler and later n sme f the mrecmplicated prblems (cf. Hfstede,1997: 230 et seq.). The main gal isnt t becme mre skilled, but tdevelp a repertire f skilled beha-virs and t knw in which situatint use each ne (cf. Thmas & Ink-sn, 2003: 183). Ding s invlvesknwledge f the likely behavir fpartners f different cultural back-

grunds. Quite helpful at this stageare generalizatins frm culturalvalues like individualism vs. cllec-tivism, masculinity vs. femininity,etc., accrding t Hfstede. Mindfulbservatin helps yu rene theseexpectatins ver time (cf. Thmas& Inksn, 2003: 138 et seq.).

v. corPorate culture

Culture represents a very cmplexinuence f the enturage inclusi-ve knwledge, skills, beliefs, valuescales, laws, public mrals, etiquetteand a range f ther habits, wills andabilities f each persn as a mem-ber f a given sciety. Neverthelessthe character and incidence f the


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mentined culture elements can bemarkedly different in each particular

natin (Dnnelly, Gibsn, Ivance-vich, 1995). The basic characteristicf each culture is, that all its mem-bers (r almst all) share up the samelearnt behavir, which is transmittedfrm generatin t generatin, frmthe ld t the yung. Thus, it is nttransferred bilgically. And nally,culture frms peples behavir andits cnceptin f the wrld (rnk,2000).

Mst f the denitins f crprateculture agree in that, it is a set f cn-ceptins, values, nrms, and wayst behave, that are shared and alsrelatively lng term maintained ineach crpratin. outwardly, culturemakes itself felt like a frm f scial

intercurse amng the staff and alslike the way the staff tgether sustainhabits, manners, rules and materialaccessries. All the factrs menti-ned befre have a signicant inuen-ce n the managing prcesses andhave a cntrl functin. In ther waythis means, that crprate culturemakes pssible c-rdinatin, inte-gratin, identicatin and in a certainmanner mtivatin f wrkers insidethe rm and allws wrkers t pt frthe right way f behavir, t valuedifferent kinds f demnstratin andbehavir and t distinguish desirablefrm undesirable. Thus, crprateculture is frmed and interpreted bythe emplyees f the cmpany and isthe result f the prcess f learning,

crdinatin and adaptatin (Hra-lkv, 2000).

Culture, cultural differences andknwledge f them play an imprtantpart in the internatinal ecnmicrelatins and have its meaning atmarketing, freign investments atinternatinal cmpanies, internati-nal trade negtiatins and at wrk fmulticultural teams (rnk, 2000).The fast g f the ecnmic gl-balizatin and glbalizatin f theecnmic prcesses frms a cm-pletely new situatin nt nly fr de-velping new systems f intra-plantprceedings, but especially changethe scial rle f the manager and hisprfessinal, scial and interculturalcmpetencies as well (Nv, 1996).

a. sknk Ppey czehrepubli - ce sudy

1. objeive

Based n the mind map fr theanalysis f the intercultural cn-text f the crprate culture fan internatinal cmpany createdby the authr, describe the inter-cultural cntext f the cmpanySkanska Prperty CZ as a mem-ber f the internatinal grupSkanska.

Refer t the cmpetitive advan-tages that arise frm the intercul-tural cntext f the cmpany as amember f an internatinal grup.


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2. Mehd

This cntributin is based n themethdlgy f actin research.Fr the analysis f the interculturalcntext f the crprate culture fthe cmpany Skanska Prperty s.r..,was used the mind map created bythe authr n the basis f cntentanalysis f texts (see scheme 1).Next fr the descriptin f the in-tercultural cntext f the cmpanywere used interrgating methdsand dcument analysis. First wascnducted an structured directedinterview with the managing direc-tr f Skanska Prperty, wh wasexpatriated and came frm Swedenand after a similar but mre infrmalinterview with the fce managerand the prperty manager frm the

Czech Republic. Within the framef the dcument analysis were usedthe fllwing cmpany dcuments:wrking cde, the cde f cnduct,letters and emails, reprts, cmpanynewsletters, annual reprts.

3. reul

Norms and Values

The nrms and values valid fr all therganizatinal units f the SkanskaGrup are summarized in the wr-king cde and the cde f cnduct.Every emplyee has t knw andrespect them. T the mst impr-tant values belng: respnsibilitytwards the cuntries in which the

cmpany perates, twards the emplyees, cmmercial partners and

the cmpany in general, respect anddignity, ethical cmmerce ghtingcrruptin and safety f health andenvirnment. The leading managerf each cuntry is respnsible frimplementing such values in the in-dividual rganizatinal units f thecmpany.

The mst imprtant values f Skan-ska Prperty are respect, tleranceand gd team wrk. Infrmal acti-vities, such as a ne-week-lng stayf the entire team in the muntainsr the visit t Sweden, are a surcef many times remembered wittystries. Such activities enhance t-lerance and respect amng the indi-vidual members f the team. T the

mst imprtant unwritten nrms fthe cmpany belng: keep everyneinfrmed, n speaking in Czech inthe directrs presence, n sharingf salary details, celebrating the bir-thday f every emplyee, celebratingChristmas and cmpany achieve-ments such as the cmpletin f aprject.

Communication

English is the fcial language wi-thin the entire cmpany, even thughit is riginally Swedish. This meansthat all internatinal meetings andcuncils are carried ut in English.Bth ral and written cmmunica-tin amng the individual branch


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Scheme1.MindMapfortheA

nalysisoftheInterculturalContextoftheCorporateCultureofanInternationalCompany

RewardSystem

persn

algrwthfemplyees

Cmmunic

atin

Legisl

ation

leadershipstyle

Facilities

Appreciatinsandpenalties

FinancialrewardsM

aterialrewards

trainings

Information

obchdnjednnaprady

Crpratelanguages

Cmmunicatinprcess

Eavesdr

pping

interculturaltrainings

Clletive

Wrkingenvirment

Values

W

rkinghurs

Striesand

myths

unwrittennrms

Cdexfcnduct

(writtennrms)

Meetingsand

celeb

rations

Inuence

fthenatinal

cultureverthecrprate

c

ulture

Culturalinuences

Inuencefthemthercrprate

cultureverthecrprateculture

fthedaugtherfces

Cmpanycars

Languages

Interpretacin

ActualityIm

prtance

Directin

Cmmunicatinwhiththe

cns

umersandsuppliers

Mbilephnes

intercultural

cntextfan

internatinalcmpany


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fces f the cmpany is als carriedut in English.

Letters, plans fr each year, reprts,cmpany newsletters, annual reprtsetc. wrked ut by the mther cm-pany are sent ut in English t all thebranch cmpanies arund the wrld.The magazine Wrldwide, whichkeeps the investrs and emplyeesinfrmed abut any imprtant in-vestments, prjects and cmpanysuccesses arund the wrld, mayserve as an example. The cmpanysannual reprts are als in English.That is the means thrugh which themther cmpany keeps in tuch withthe individual branch cmpaniesarund the wrld.

The fcial language f the cmpany

in each cuntry is usually the langua-ge f the given cuntry, because thecmpany tries t adapt t the lcalcnditins f the cuntry in whichit perates. Mst f the executivemanagers and emplyees are lcalinhabitants. Despite that the cmmu-nicatin with the mther cmpanyhas t be carried ut in English. Allthe plans and reprts need t be trans-lated int English language.

That is als the reasn why ne fthe requests fr the pst f the tpexecutive managers, the leading l-cal managers and the managers fthe intercultural teams is t be ablet cmmunicate in English language.

It is upn the directr f the givensectins, whether he will require a

certain level f language knwledgerelative t the individual emply-ment psitins, r nt. Managers fthe intercultural team d nt have tknw the language f the cuntry inwhich they will be wrking.

Because the cmpany functins wi-thin the Prject Develpment Eur-pe, in which the tp managers in thepst f a managing directr live asexpatriates, ne f the crucial requi-rements fr the lcal emplyees is anexcellent level f English language.This is als due t the fact that theteam is nt very big and requiresimmediate c-peratin, cmmuni-catin and understanding.

The internal envirnment f SkanskaPrperty supprts pen, exact andclear cmmunicatin. The membersf the team talk t each ther inCzech, but cmmunicatin with thedirectr and at the meetings is carriedut in English. The meetings takeplace twice a mnth and are f bthfrmal and infrmal character. Lessfrmal, but still having an infrmati-

ve character, are business breakfastsand meetings. The directr attendstwice a year t the Prject Develp-ment Eurpe meeting and nce a yeart the meeting Tp 250, where allthe Skanska managers frm all verthe wrld meet. He eventually relatesthe infrmatin t his emplyees.


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The directr f the Skanska Prpertyevaluates the cmmunicatinal sys-

tem f the cmpany the fllwing:

The emplyees f the cmpanyare thrughly infrmed abutthe glbal gals, values and ac-tivities f the cmpany, abut itscurrent situatin and future prs-pects.

The cmpany tries t minimizethe number f cmmunicatinchannels.

The team is very small whichminimizes the risk f misunders-tanding.

Excellent scial and cmmunica-tive skills f the manager and his

team

The ability t actively listen t theleading executive.

The feedback cming frm theemplyees penness in thecmmunicatin.

The inclusin f an expatriate ma-nager allws smther cmmu-nicatin between the directrateand the branch cmpany.

Cultural Infuences

As it was said earlier n, the SkanskaCmpany tries t adapt t the cn-ditins f the cuntries in which it

perates. It creates lcal cmpaniesfr its internatinal markets, which

are in mst f the cases lead by lcalmanagers. That is the reasn whythe natinal culture f the hstingcuntry exerts big inuence upnthe cmpany culture f the individualbranch cmpanies. Nevertheless thecmpany tries t apprach its clientsas ne bdy with the same attitudetwards the custmers and marketsall ver the wrld. This is achie-ved thrugh the cmpany culture,which is reected primarily in itsglbal gals, strategies and the ab-ve mentined values and shared byall the branch cmpanies arund thewrld. This means that it is a cmpr-mise between giving sufcient spacefr individual apprach twards thecreating a cmpany culture in every

daughter cmpany, which springsfrm the custms and specics f thehsting envirnment, and the respectfr a centralized pwer, r in therwrds a glbal cmpany culture.

Even thugh the abve descriptinincludes the characteristics f the scalled plycentric cmpany cultu-re, the cmpany shws aspects f a

gecentric cmpany culture in thefllwing areas:

The cmpany tries t link effec-tively all the reginal units f theinternatinal cmpany. This isachieved thrugh varius regularmeetings, during which the s-lutins f the pssible prblems


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are explained frm varius stan-dpints, the knwledge abut the

internatinal market is deepened,the flexibility is imprved andan atmsphere f c-peratinamng the individual branch cm-panies arund the wrld is created.

The cmpany is mre hriznta-lly than vertically rganized.

The pwer f decisin making istransferred t a greater extent tthe individual regins. The tpmanagers in the individual cun-tries have high pwer. They areexplained, what needs t be dne,but it is upn them, hw they exe-cute the case in the given territry,fllwing f curse the valuesand strategies f the cmpany.

The central directrate takespart in chsing the key em-plyees and makes sure that thecandidates prle crrespnds tthe cmpany culture.

Despite the natinal cultural di-fferences it is pssible t denethe cmpany as a bdy with astrng internal integrity.

Fr smther creatin f the lcalbranch fces the cmpany preferslcal managers with a high degree fqualicatin and better knwledgef the market and lcal cnditins,t expatriate managers. The rgani-zatinal unit called Prject Devel-

pment Eurpe is an exceptin. Thissectin has its branch cmpanies

in Pland, Hungary and the CzechRepublic (Skanska Prperty), itsmanagers in the internatinal mar-ket are mstly Swedish. They haveempwerment and respnsibilityfr leading the individual branchcmpanies and fr creating an idealcexistence f the cmpany and thenatinal culture.

It culd be said that the cmpanyculture f Skanska Prperty CZ em-plyees is a result f the cmbinatinf the natinal culture, wrldwidecmpany culture and als the Swe-dish culture, which the tp managertries t implement in the cmpany.This hwever may als lead t in-ternal misunderstandings. Primarily

because f the fact that it is very hardfr the emplyees t accept the threecultures at the time and t understandthe mentality f the tp managers,wh change in the pst apprx. everytw years. The emplyees might pr-mte the Swedish culture instead fthe cmpany culture, which is an-ther pssible danger.

T make sure that the prle f theSkanska Prperty CZ emplyees c-rrespnds t the prle f the wrld-wide Skanska cmpany culture, thedirectr cntacted the cmpany Pr-les Internatinal, which mnitredthe prfile f the individual em-plyees in psychlgical tests andcnsequently recmmended their


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amendments in order to come closert the cmpany culture.

The directr f the cmpany Mr.Bjrn Mattssn describes the in-uence f the mther cmpany upnthe cmpany culture as fllws: Themther cmpany leads the way,shws us the mst imprtant strate-gies and gals, it is upn us hw wereect them at the lcal level.

Legislature and Relationship with theGovernment

The cde f the Skanska Cmpanystates that its cnduct will be in ac-crdance with the legal regulatinsf the cuntries in which it pera-tes, that it respects the InternatinalDeclaratin f Human Rights and

accepts these rights in relatin tits emplyees and the cmmunitiesin which it wrks and lives. Thecmpanys aim is t fllw the legis-lative and ther regulatins relatedt the natural envirnment and thehealth safety f its emplyees.

The wrking cnditins that it fferst its emplyees are in accrdancewith the legislative regulatins f thegiven cuntries. The cmpany willnt emply a persn yunger than 15years f age. In the cuntries wherethe cnditins are different, the cm-pany fllws the given age limit.

Prperty CZ fllws the valid legis-lature f the Czech Republic given

by the legislative and ther regula-tins in accrdance with the values

accepted by all the branch cmpa-nies arund the wrld. T make surethat the lcal legislative cnditinsare fully respected, the cmpanyc-perates with external lcal pr-fessinals.

The Personal Growth o Employees

The directrs f all the branch cm-panies arund the wrld are res-pnsible fr the persnal grwth ftheir emplyees. The directr has tdecide which sequence f trainingwill take place in the cmpany andwhm will it be directed t, eventua-lly create a prgram in c-peratinwith the persnnel department.

The cmpany des nt rganize spe-cic curses r culturally fcusedtraining fr the internatinal mana-gers. Its left up t the initiative fthe manager t cllect infrmatinabut the new culture, eventuallyabut hw t manage the culturalshck and lead a new team in a f-reign cultural envirnment.

The Skanska Prperty CZ des nthave a special prgram fr the em-plyee develpment, which wuldinclude training fr the individualmanagers. Furthermre the cndi-tins that the emplyees need t ful-ll in rder t be prmted r t havethe pprtunity t wrk in a branchcmpany abrad are nt dened.


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In the system f training the empl-yees themselves request frm the

manager a certain type f trainingaccrding t their wn needs, whichthey believe will imprve their wr-king efciency. In mst f the cases,in the wrds f the fce manager,the directr tries t satisfy his em-plyees requests. This system isadequate and at the same time m-tivating. Regarding the fact that theSkanska Prperty CZ team is madeup f 7 emplyees (managers), whenter a frequent and pen cmmuni-catin with the directr. Thanks tthis the directr has a clear picturef what the individual emplyeesneed in rder t imprve their wrkefciency.

Business visits t freign branch

cmpanies, which wuld prvidenew experience and cultural skills,are being granted nly excepti-nally. Nne f the managers frmSkanska Prperty has yet taken partin a business stay abrad. The ten-dency is t send ut Swedish ma-nagers t freign cuntries ratherthan the ther way rund. That isals why the majrity f the expa-triate managers are Swedish. Thedirectr f the cmpany Mr. BjrnMattssn claims the reasn fr thisbeing that the cmpanies as well astheir emplyees are lcally fcused.The emplyees skills and the waythey prmte them may nt alwaysbe suitable in anther cuntry. Thatis why the cmpany prefers a team

made up f lcal emplyees. Never-theless such business stays represent

fr the cmpany a valuable surce fpsitive cmpetitin, nt nly due tits mtivatinal effect, but als duet the widening f perspectives andknwledge f the emplyees and inturn f the cmpany as a whle.

The Reward System

The tp managers f the rganizati-nal units f the cmpany arund thewrld are respnsible fr determi-ning the level f salaries and a systemf bnus rewards fr the individualbranch cmpanies abrad, the decisi-ve factrs being the legislative regu-latins and the level f average salaryat the given psts in each cuntry.

Material rewards in Skanska Proper-ty are as follows: High salary fr themanagers, higher than the average inthe Czech Republic at similar psts(true fr the branch cmpanies fthe Prject Develpment Eurpe),high bnus rewards fr the accm-plishment f gals (the gals needt be f adequate level, the cmpanydes nt tlerate simple gals), thecmpany ffers an pprtunity fmaking use f the cmpanys car rprvides a nancial lease with veryadvantageus cnditins, the cm-pany prvides a phne with a freecredit and fd tickets.

Among the non-material rewardsare: The directrs and team apprai-


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sals and acknwledgements fr gdwrk, the pprtunity t cntribute

t the imprtant decisin-makingprcess in the cmpany the directrslely infrms abut what is neededt be dne. Apart frm that he lets theindividual managers perfrm theirtasks in the way they like.

The Working Environment

The effrt f the Skanska grup isto create conditions for a safe andharmless wrk in all its branch cm-panies, minimizing any risks t itsemplyees and surrundings, whichare in accrdance with the legislaturef the Czech Republic given by thejurisdictin and ther regulatins tthe securing f safety and prtectinf the emplyees and wrkers and

are furthermre in accrdance withthe principles SN EN ISo 9001:2001, SN EN ISo 14 001 and oHSAS 18 001.

Skanska Prperty CZ cnsists f ateam f yung emplyees theirage ranging frm apprx. 25 - 45years. It is a grup, where, asits apparent frm the first sight,the emplyees get n well with neanther and respect each ther. Atthe backgrund is the directr f thecmpany, wh makes sure that anrganizatinal climate, which su-pprts pen c-peratin, is created.This is achieved thrugh fr exam-ple the managers sharing a cmmnpen space, r thrugh allwing the

team t take part in the key decisin-making prcesses and t be initiati-

ve and inventive while slving theprjects.The wrking site was built withinthe cmpanys wn prject calledBredvsky Dvur. The interir c-rrespnds t mdern trends. It ispen, light and czy. All the empl-yees had a wrd in deciding the nalappearance f the wrking place andthus created fr themselves a nice,friendly, inspiratinal and mtivatingenvirnment, which prvides bettercnditins fr their wrk, with whichthe managers are satised.

The wrking hurs are establishedaccrding t the standards f thegiven cuntry, where the cmpany

perates. The wrking hurs in theCzech Republic are apprx. frm 8a.m. t 5 p.m.

The Sources o Competitive Advantages

The surces f cmpetitive advan-tages in Skanska Prperty CZ as amember f the internatinal grupSkanska, resulting frm the inter-cultural cntext are summarized asfllws:

An optimum balance betweendecentralization and integration:Cnstructin and develpmentare the issues f lcal markets,which is the reasn why its es-sential to maintain a decentrali-


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zed apprach. At the same time,hwever, Skanska is ne cm-

pany and thus requires a unisnleadership, cnsistent nrms andprcedures in rder t prtectits nancial psitin and cm-mercial brand. That is why thedecentralized-integrated mdelis the best way f hw t createan added value fr the clients,emplyees and investrs.

A local approach: The emplyeesknw very well their natinalmarket and respect the cnditinsf the natinal culture. This secu-res fr the cmpany better cndi-tins fr being well accepted atthe market, fr cmpeting withthe ther natinal cmpanies, fracquiring a better exibility t be

able t react t the specic needsf the market and create bettercnditins fr the success f thecmpany. The lcal apprach, nthe ther hand, allws the cm-pany t wrk n a gd reputatinby cntributing t the prblemslving at the natinal level, frex. unemplyment. By acceptingthe lcal legislative regulatinsthe cmpany enters int a gdrelatinship f cperatin wi-th the lcal state fces, whichare respnsible fr the branch fcnstructin.

Marketing designed especiallyfor the individual clients and in-vestors: Allws timely reactins

t their specific needs and de-mands, being clser t them and

imprving the cmpanys image.

The presence of the Swedishmanager: Allws better cm-municatin between the BranchCmpany and the directrate,and represents a very imprtantsurce f infrmatin cncerningthe entire glbal rganizatinalculture between the cmpanyand the ther lcal emplyeesand managers f the cmpanysbranch fce.

vI. conclusIon and

dIscussIon

Managers wrking in an interna-tinal eld have t face greater de-

mands, since every manager needst adapt t the different culture andat the same time carry ut their dailywrk duties. The manager in such apsitin shuld be, in general, mrepen-minded in relatin t freigncultures, mre scially sensitive,have better language skills, and anyther aptitude that will better theunderstanding. This requires thatthe cmpany prvides its emplyeeswith sufcient infrmatin regardingthe freign culture.

By Imprving the qualicatin andintercultural skills f internatinalmanagers the cmpany will get cm-petitive advantages, fr examplerganizing intercultural trainings


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fr managers wrking at freignmarkets. The mst effective f said

training are thse fcused upn inte-ractin, cmmunicatin and intercul-tural assimilatin. The interculturaltraining shuld be lead by speciali-zed prfessinal cnsultants, whichthe cmpany wuld hire externally.All f this shuld be taken care fby the Persnnel Department. Treduce the cultural cnicts betweenthe manager cming frm a differentculture and the emplyees, wh arelcal, it is essential t fcus the trai-ning n them as well.

The cmpany may imprve its p-tential and lyalty f its emplyees,since it ffers them the pssibility fpersnal and career grwth. Interna-tinal cmpanies have, due t their

peratinal eld, a greater pprtu-nity fr emplyee develpment thancmpanies f lcal type fr example.

The intercultural cntext f an inter-natinal cmpany affects and trans-frms crprate culture, in the mea-sure nrms and values, cmmunica-tin; reward systems amng thersbecme different. A prper culturalsensitivity with an apprpriate stra-tegy will prvide saving f time,mney and success t a cmpanyabrad.

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