Overview
The company that was researched for this specific assignment has offices in over 25 countries working in the international fishing industry. The company mainly deals with European employees and customers. Therefore, the focus of this assignment in mainly on European cultures and how the company deals with this dynamic.
Cultural Limitations
A big international company has the responsibility to its employees to make sure everybody feels comfortable and accepted. To make this happen you need to take in everybody’s cultural differences and respect them. The company acknowledges the differences between countries and cultures. To make sure they get along they created values for the company. These values are: passion, change, trust and share. With these shared values they try to get a shared vision as a company. On top of that there is a code of conduct for all its employees. This is a manual on how they should act and behave. Every country gets the same code of conduct in its own language so everybody can read it. The main idea of this is to create one world for all its employees so every employee knows how to behave to another. For example, English, Russian and Polish the main languages for all the employees. Sometimes the employees have to adjust to these rules. The person we interviewed is from Poland and the company originated in Norway. The interviewee explained that Norway is very well organised and everybody follows the strict rules. In Poland the people know the law but the way how to act is different, it is more flexible. At the start it was difficult to adjust to this new way of working but in the end much easier. The company tries to treat every employee the same way. For example, people with the same job get the same salary and social package. The guidelines are the same for all the employees. But to acknowledge the cultural differences, preparation is key. They know that people have different cultures and they make sure they are prepared. For example, when meeting with the French colleagues, the interviewee stated that it is important not to directly start with negotiations or talk about anything work related, but rather start with a personal conversation or have lunch together before anything important is discussed. This is a lot different than meeting with the Germans, who are similar to Norwegians and can start the meeting right away. These differences are important to acknowledge to make sure that everyone feels comfortable and work can be done successfully. Hofstede (2020), also mentions that it is important to understand why other’s act as they do and to recognize those differences from their perspective. When doing so, the actions make more sense and greater interaction and cooperation between people from different cultures can be achieved. As stated earlier, the company tries to get all employees on the same page by creating one code of conduct for everyone to follow. However, due to cultural differences, there are slight changes to the way of working in every country. The interviewee couldn’t really name any prohibitive or inhibitive issues that have occurred on the work floor but named a few mistakes the company has made in the past regarding culture. With the company being active in over 25 countries, the preparation before meetings is crucial in order to prevent mistakes during meetings or negotiations. For example, the company had to let go of a senior executive who was responsible for the Italian market, these announcements are communicated to all employees in the same way; by email. However, the Italian colleagues were so surprised and shocked with this type of news being announced through e-mail that one of the executives had to fly from Norway to Italy to make sure the Italians understood why this move was made. This type of news is always communicated through email because it’s such a large company with hundreds of employees and having to tell everyone in person is too time consuming. The company neglected the fact that in the Italian culture, this type of news is generally communicated in person, as an explanation to why this move has been made is needed. Italians score significantly higher than Norway in terms of masculinity, which can indicate why the Italians reacted in such a way (Hofstede, 2020). The interviewee explained that from now on, the Italians will be informed in person rather than through e-mail when this type of news has to be announced once again.
Value Dimensions
The definition of power distance refers to the degree of inequality that exists in people with and without power (Mulder, 2021). The interviewee indicated that there is no distance between employees and even business partners. The company tries to treat every employee the same way. As told before, people with the same job get the same salary and social package. All the employees have the same guidelines. The definition Individualism refers to the strength of the mutual ties between individuals in a particular community (Mulder, 2021). The company created a one word document, so all the employees will be on the same page by creating one code of conduct for everyone to follow. But cultural differences are considered through good preparation, to prevent miscommunication. The employees’ value equal treatment, which is what the company gives them. Employees are all treated and paid equally in the company. This shows that there is mainly collectivism in the company because there is strong group cohesion and respect for the employees. The definition of uncertainty refers to the level of anxiety members in a society feel when faced with unfamiliar situations (Mulder, 2021). Because rules have been drawn up before, employees in the company do not have to worry about unfamiliar situations. The interviewee indicated that it can be difficult to comply with the rules, but they are the basic rules in the company that every employee must adhere to. This definition of Masculinity refers to the extent to which a society lives up to its values in the form of traditional male and female roles (Mulder, 2021). Men often emphasize achievement and success, while women emphasize modesty, tenderness, and quality of life. Norway is very well organized and everyone follows the rules strictly. The company already had its rules and policies to follow by any new partners or departments. The company works strategically. The company has strict rules that employees must adhere to achieve performance and goals. The company has offices in 25 different countries. Everyone’s identity is of course taken into account, but it is expected that everyone adheres to the rules. So, there is more masculinity in the company as they strive for success. This dimension focuses on social values that are based on traditions and old values. These apply for both short term and long term (Mulder, 2021). The company takes care of all the employees. They share values, equality, and respect. The company is committed to treating all employees the same regardless of origin, position, age, and gender. The company tries to not show any differences and expects from the employees to follow this idea. However, they do try to make the differences that are clearly there easier for everyone. For example, they have made the document accessible in all languages. So, there is a real focus on the development of the employees and the social values in the company.
Best Practices
Regarding the best practices performed by the interviewed company, it can be considered in various aspects. Firstly, there is a global, and company as a whole perspective. Further, we can consider the view of the management and factory workers. This specific company has its origins and headquarters in Poland. However, it was acquired by a global company with Norwegian background. Such acquisition required adjustments on all company levels. The company already had its rules and policies to follow by any new partners or departments. There was a previously prepared and already examined setup that obligated new entrants to obey unquestioningly. In such a scenario, the company could benefit from already made structures and previous experiences.
From the management or administration perspective, there are clear and strict rules to apply in everyday life. The company made an effort and designed a meaningful so-called “inner world”.
It is an idea of creating a global environment for all employees to operate in, which even has its name “one XYZ.” (due to the anonymity of the interview, the name of the company was replaced by “XYZ”) It is also the first graphic that employees see after logging into the computer all over the world. Part of the creation of a joint base and fundaments are the values. There is a model of values for the whole group: passion, change, trust, and share. Another practice is that each administration employee has the value graphic in the office, and it is also visible across the headquarters. The interviewee admitted that it was a process to understand and live up to those values, but ultimately it is a common ground for all employees, facilitating the communication and decisions. From our interviewee’s view, common values facilitate operations and communication.
Another practice performed by the company is a universal code of conduct with precise instructions. It covers behaviors in all spectrums of life and contains examples of proper actions. The code of conduct is the same for each country; nevertheless, it is translated to each language to understand and interpret the document correctly. It is also a mandatory item in each office. It is also an obligation to follow the code of conduct to cooperate with the company.
The primary approach towards cultural differences and cooperation with various countries is to treat everyone equally. The group tries not to show any differences and expects others to follow the idea. Nevertheless, the differences are recognized, and for instance, the negotiation style is adjusted to each country and culture. The time for the meeting is already estimated considering the differences.
Considering the factory workers, the practices mentioned above are also followed. It is expected that they adjust to the country they operate in; however, their identity is respected. It is a priority for the company to provide the same working conditions for all nations and do not differentiate the workers. All employees are treated the same way as Poles, with restrictions to receive the same remuneration, social packet, and other benefits. The warning signs and any other safety rules are in three dominant languages. Additionally, being noted on the stock exchange and cooperation with big players requires the company and the whole group to take care of all employees. During the audit, the questions, such as “Are you happy?” all employees can be asked.
Summing up the best practices, the shared values, equality, and respect set the direction of any actions.
Student Authors
Sara Stochnialek (LinkedIn)
Exchange Student at Singapore Management University Student at Koźmiński University Warsaw Poland
Block 4, Semester 2, 2021
Tim van Lingen (LinkedIn)
Student International Business at the Amsterdam University of Applied Sciences, Amsterdam, The Netherlands
Block 4, Semester 2, 2021
Nirsrin Abdalla (LinkedIn)
Student Faculty of Business and Economics, Amsterdam University of Applied Sciences, Amsterdam, The Netherlands
Block 4, Semester 2, 2021
Jaron Kapitein (LinkedIn)
Student, Faculty of Business and Economics Amsterdam University of Applied Sciences, Amsterdam, The Netherlands
Block 4, Semester 2, 2021