CROSS CULTURAL ISSUES IN INTERNATIONAL BUSINESS

SIEMENS CROSS CULTURAL ISSUES IN CHINA

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SID: 6128252 For: Mr Clive Puttock

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EXECUTIVE SUMMARY

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Table of Contents
EXECUTIVE SUMMARY .......................................................................................................................... 2 Table & Figures: ........................................................................................................................................... 4 1. INTRODUCATION ............................................................................................................................. 5 1.1. 1.2. 1.3. 1.4. 2. WHAT IS CULTURE? ................................................................................................................. 5 WHAT IS CORPORATE AND ORGANISATIONAL CUTLURE? .......................................... 5 HISTORY OF SIEMENS ............................................................................................................. 6 OWNER OF SIEMENS .............................................................. Error! Bookmark not defined.

MANAGING CHANGE ARCOSS SIEMENS & CHINESECULTURE ............................................ 6 2.1. Envisioned future: ......................................................................................................................... 8

3. 4. 5. 6. 6.

SIEMENS ORANISATIONAL CULTURE......................................................................................... 8 CHINESE NATIONAL CULTURE ................................................................................................... 12 CHINESE BUSINESS CULTURE .................................................................................................... 15 HOFSTEDE'S CULTURAL DIMENSIONS ..................................................................................... 17 DILEMMES & SOLUTION FOR STRUCTURE & SYSTEMS....................................................... 22 6.1. 6.2. DILEMMES WITHIN SIEMENS CORPERATE STRUCTURE IN CHINA ....................... 22 SOLUTIONS WITHIN SIEMENS CORPERATE STRUCTURE IN CHINA ..................... 23

7. 7. 8.

SOLUTION FOR REPORTING METHODS .................................................................................... 25 CHANGE MANAGEMENT PROCESS ............................................................................................ 26 CONCLUSION ................................................................................................................................... 30

REFERENCE LIST .................................................................................................................................... 30 Articles: ................................................................................................................................................... 30 Books: ..................................................................................................................................................... 30 Websites .................................................................................................................................................. 30 Appendix A: History of Siemens ................................................................................................................ 32 Appendix B: Confucianism Five Basic Human Relationship Categories (Wu Lun)................................ 33 APPENDIX C: GERMANY BUSINESS CULTURE ................................................................................ 34 APPENIX D: THE CHANGE PROCESS MAPPING (Trompenaars and Woolliams., 2003, pp.367) .................................................................................................................... Error! Bookmark not defined.

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Table & Figures:

Table 1:The Change Process: (Trompenaars and Woolliams., 2003, pp.367) .............................................. 7 Table 2: Siemens Organisation Culture: (Siemens, 2010) (Johnson et al., 2008)......................................... 9 Table 3: Siemens Cultural Web: (Johnson et al, 2008, p.194), (Siemens, 2010), (The Times 100, 2010). .................................................................................................................................................................... 12 Table 4: The Sections of Confucianism (Wang et al, 2005, pp20-34) ........................................................ 13 Table 5: Hofstede's Five Cultural Dimensions: Germany vs China (Geert-Hofstede, 2009), (French, 2010, pp.56). ......................................................................................................................................................... 19 Table 6: Hofstedes Five Dimensions of Culture: China Vs Germany: (Geert-Hofstede, 2009), (French, 2010, pp.56) , (Mind Tool, 2010). .............................................................................................................. 20 Table 7: The extreme stereotypes of corporate culture: (Trompenaars and Woolliams., 2003, pp.365-366). .................................................................................................................................................................... 22 Table 8: Top six ranked tension scenarios: (Trompenaars and Woolliams., 2003, pp.366). ...................... 23 Table 9: Solutions for integrating dilemmas found in China and Siemens corporate culture: (Trompenaars and Woolliams., 2003, pp.371). .................................................................................................................. 24

Figure 1: Culture in four layers: (Johnson et al, 2008, p.194). ..................................................................... 8 Figure 2: Cultural Web (Johnson et al., 2008, pp.198) ............................................................................... 11 Figure 3: Confucianism (adopted from Wang et al, 2005, pp.20) .............................................................. 13 Figure 4: Importance in Maintaining 'Guanxi': (Wang, et al, 2005, pp.47-51). .......................................... 16 Figure 5: Johari Window (Mind Tool, 2010). ............................................................................................. 26 Figure 6: Lewin's Change Management Model: (Mind Tool, 2010). ......................................................... 27 Figure 7: Lewin Change Management Framework: Practical Steps for Siemens Implement change (Mind Tool, 2010).................................................................................................................................................. 28

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1. INTRODUCATION

Aqui escrever a introduao da monh

1.1. WHAT IS CULTURE?

Hofstede cited in (French, 2010, pp.22), summarised that culture as being the collective programming of the mind that distinguishes the members of one group or category of people from another. Hofstede, also stated that collective programming takes place through socialisation and is the process by which a society transmits values from one generation to another (French, 2010, pp.22). Hofstede also recognises that there is another dimensional culture that is called individual programming. This allows the individual personality and abilities to be expressed as behaviour patterns which is more common in humans (French, 2010).

1.2.

WHAT IS CORPORATE AND ORGANISATIONAL CUTLURE?

Peters and Waterman (1982) and Deal and Kennedy (1982) poised the correlation between company level culture and success, arguing that excellent companies have strong cultures which deliver the success. Therefore, they stated that corporate culture refers to those culture deliberately created by management to achieve its future ends(French, 2010, pp.39). However, Needle (2004) cited in (French, 2010, pp.39) argues that organisational culture represents the collective values, beliefs and principles of organisational members and is a product of such factors as history, product market, technology, strategy, type of employees, management style, national cultures and so on. Hannagan, (2002, pp.145), stated that An organisations culture can be defined as the way we do things around here. Hannagan considers it to be a complex mixture of tangible factors which can be seen and touched, assumptions about how people should behave in the organisation and peoples actual behavior (2002, pp.145). Hannagan also argues that cculture can be the basis of competitive advantage in markets because it may prove difficult to imitate. On the other hand, it is also difficult to change and it can be argued that organizations are captured by their own cultures (2002, pp.145).
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1.3.

HISTORY OF SIEMENS

Siemens was established in 1847 by Werner von Siemens and begun its existence as Telegraphenbauanstalt von Siemens & Halske in a small workshop making telegraph equipment and warning bells for trains. From day one, Siemens were growing and growing with every new invention. In 1866, Werner von Siemens produced a electric generator powered by electromagnets, this leads to escalators, street laps, electric railways, and more to be invented. In 1892, its founding member Werner Von Siemens past away but the company kept growing and by the 1920s Siemens was one of the leading electronic manufacturing companies in the world. When the Nazi Party took control of the government of Germany, Siemens was forced in the war economy which meant increase in demands from the military and that led to an increase in the work force up to 1944. After the war, Siemens rebuilt in Germany but was forced to move into different countries in 1950 and returned to its position it held in the 1920s as one of leading electronic manufacturing companies in 1960. In 1966, Siemens & Halske merged with two other companies: Siemens Schuckertwerke AG and SiemensReiniger-Werke AG to form Siemens AG. From this date Siemens went from strength to strength developing almost anything from telephone exchanges to computers. Siemens emergence to the cellular world was quite slow. In 1991, the GSM mobile network was released aimed at linking up the whole of Europe in a wireless network. Siemens waited until 1997 before releasing their own mobile handset, the S 10.

Acrescentar aqui um ponto: Difference in national cultures of europe and china

2. MANAGING CHANGE ARCOSS SIEMENS & CHINESECULTURE
In order to successfully integrate Siemens organisational culture with Chinese culture I will be using a framework for managing change this cultures which was developed by Trompenaars and Woolliams in 2003, (see above . for Change Process mapping).

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(Trompenaars and Woolliams., 2003, pp.367)

I will be also looking at the Chinese national and business culture. The change process has the following steps (Table 1):
Table 1:The Change Process: (Trompenaars and Woolliams., 2003, pp.367)

The Change process

1. 2. 3. 4. 5. Envisioned future Current organisational culture Core values - Key purpose Business dilemmas Reconciliation process Implement new design & define actions Ideal organisational culture

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2.1.

Envisioned future:

The CEO of Siemens Wolfgang Dehen, declared that "Siemens is expanding its commitment to environmentally-friendly energy technology in China with this new wind turbine production facility in Shanghai,. He also stated that "China could soon become the largest wind energy market in the world and with our new production facility in Shanghai we are establishing an excellent starting position for meeting the growing demand of this exciting market.

3. SIEMENS ORANISATIONAL CULTURE

Johnson (et al, 2008, pp.194) stated that the cultural of an organisation is often conceived of consisting of four layers, (illustrated in figure 2).

Figure 1: Culture in four layers: (Johnson et al, 2008, p.194).

VALUE

BELIFES

BELIFES

PARADIGM (or taken for granted assumption)

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Table 2 shows the organisational culture of Siemens in conjunction with Johnson (et al, 2008), work on the four layers culture.

Table 2: Siemens Organisation Culture: (Siemens, 2010) (Johnson et al., 2008).

Precisava

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SIEMENS ORGANISATIONAL CULTURE
Responsible: Committed to ethical and responsible actions

VALUES

Siemens are committed and determined in meeting all legal and ethical requirements. One of their principles is to conduct their business according to highest professional and ethical standards and practices; therefore they do not tolerate non-compliant behavior. They ensure that their values for ethical and responsible actions are also encourage to their business partners, suppliers and other stakeholders to adapt a similar standard of ethical behavior (Siemens, 2010).

Excellent: Achieving high performance and excellent results Siemens set themselves ambiguous targets the derived from their vision and verified by benchmarks, for all their employees to achieve. They pride themselves to be beside their customers in order to search for the perfect quality and coming up with solutions that exceed expectations. Siemens states that the demand excellence within their organisation is a path of continuous improvement and constantly challenging existing processes. Siemens pursuit of excellence also means that they recruit the best talent within the marketplace and give them the skills and opportunities they need to become high achievers. In conclusion this means that Siemens are committed to living a high-performance culture (Siemens, 2010).
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Innovative: Being innovative to create sustainable value Siemens believe that innovation is the cornerstone of their success. They consider to themselves be entrepreneurs whose innovations successful global scale. They closely in line are indeed activities with their business strategy, as well is holding key partners in having a strong position both established and emerging technologies. Therefore their goal is to become a trendsetter all of their businesses. Siemens do this by unlocking the energy and creativity of their employees in order to impress new and different ways of working and innovation. They also embraced this quality in all their varied meaning such as being original, inventive and resourceful (Siemens, 2010).

BELIEFS

Siemens beliefs are set in becoming the pioneer in the following areas: Energy efficiency Industrial productivity Affordable and personalized healthcare Intelligent infrastructure solutions

BEHAVIOUR Siemens corporate culture sets high standards of conduct for its
managers and employees. Theyre a community of individuals committed to integrity and to clear and binding principles of conduct. Siemens company values responsible, excellent and innovative are the basis of their understanding of integrity, their thinking and their actions. Siemens have formulated clear and binding principles of conduct that cover all aspects of their entrepreneurial activities, define a uniform ethical framework for their company and establish clear responsibilities Siemens-wide. Action areas include fighting
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corruption, ensuring occupational safety, health management and environmental protection (Siemens, 2010).

Assumptions

Siemens have set out certain assumptions for their employees to follow which is at the core of their organisational culture for highperformance. Johnston (et al, 2008), states that it is often difficult for employees to explain the company's assumptions, and often take it for granted. However, Siemens assumptions are their valued responsible, excellent and innovation principles which is integrated in the day-to-day running of the company in the way their employees think and act (Siemens, 2010).

As well as using a four layers of culture, it is also necessary that I use on a framework called cultural Web which was also developed by Johnson (et al, 2008). This is so that I get a better understanding of both the existing culture and effects, in order to be able to analyse Siemens culture. The cultural Web shows the behavioural, physical and symbolic manifestations of the Siemens culture, which informs and are informed by the taken-forgranted assumptions, or paradigm (Johnson et al., 2008, pp.194). Figure 3 illustrates the sections of the cultural Web, and Table 3 analyses Siemens cultural Web.

Figure 2: Cultural Web (Johnson et al., 2008, pp.198)

Stories Rituals Rotuines Paradigram Control Sytem Organisational Power Structures

Symbols

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Table 3: Siemens Cultural Web: (Johnson et al, 2008, p.194), (Siemens, 2010), (The Times 100, 2010).

4. CHINESE NATIONAL CULTURE

The Chinese culture is based on a 3000 year old belief system called Confucianism, which was founded by a man called Confucius who lived in modern-day Shandong Province in 2500 B.C. (Wang et al., 2005, pp.20). At time, China was facing an absolute political social turmoil, and Confucius decided to create a moral foundation that binds China's society together (Wang et al., 2005, pp.20). Wang el al (2005, pp.20) sates that there are six major areas of influence in Confucianism, which constitutes the foundation of traditional Chinese society. They are a hierarchy, collectivism, face, pragmatism, high uncertainty avoidance and egalitarianism (see Figure 3 & Table 4).
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Figure 3: Confucianism (adopted from Wang et al, 2005, pp.20)

HIERARCHY

EGALITARIANISM

COLLECTIVISM

HIGH UNCERTAINTY AVOIDANCE

FACE

PARAGRMATISM

Confucius's teachings focused on ethics, or proper behavior, for individuals and governments. He said that people should conduct their lives according to two basic principles. These principles were ren, or concern for others, and li, or appropriate behavior. Confucius argued that society would function best if everyone followed ren and li. Confucius thought that everyone had a proper role to play in society. Order was maintained when people knew their place and behaved appropriately. For example, Confucius said that young people should obey their elders and that subjects should obey their rulers.
Table 4: The Sections of Confucianism (Wang et al, 2005, pp20-34)

HIERARCHY:

Within Chinas nation, there a hierarchy in which each level society is obedient to the level of above it, so that there is a guarantee that the stability of China while safeguarding the power of their ruler. Five basic human relationship categories, called Wu Lun The upper class require that lower class demonstrate loyalty to them, while lower class except that places a higher status showed them kindness in return for their loyalty.

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Most Chinese to accept inequality in their social life and in the workplace. This is equally true in respect of wealth, power, social status and rights. Face is both an ancient tradition norm and a current social value in China. Deals with the relationships between one's own status or image as well as relationships between individuals. Chinese people are strongly Concerned with how to protect or enhance both their and others face. LOSING FACE, HURTING FACE - Consequence of social carelessness in respects in repaying a favour. Reciprocal obligation at PEER level:

FACE

1. Friends 2. Relative 3. Colleagues WORK FACE - Building & maintaining a relationship between oneself & people of higher or lower social scale. PROTECTING FACE - A person should meet the social requirements of superiors & seniors ENHANCING FACE - A person of relative lower social standing must be sensitive to the social scale.

1. Must be aware of absolute importance of authority 2. Person with higher prestige, (status) shows respect to lower status person. However, a request must be returned, when requested by the boss. 3. Presenting compliments, gifts. 4. Conforming to his or her opinions & behaviour. COLLECTIVISM: BOSS FACE - Refusal to cooperate with bosss request. Negative result in employees career A refusal seen as rejection of a relationship Collectivism with the Chinese culture defines the individual status, which in return defines their dependent relations. Dependent relations within the social hierarchy is like an extend family. So one

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should also give loyalty & respect. A desire to avoid competition, which leads to a positive sense of group solidarity in areas like negotiation, business networking, team working & cooperation. Human nature is initially good, which is inevitably subject to social & family influence. People become bad when exposed to evil influences like becoming greedy when placed in the wrong environment. Strict adherence to moral principles and hierarchical regulation is needed as prevention to evilness. A focus on equal results rather than equal opportunity. A form of shared poverty. Stresses that people should be satisfied with their equal economic status, within the same social rank without challenging authority.

PRAGMATISM

EGALITARIANSIM

5. CHINESE BUSINESS CULTURE

Wang (et al, 2005, pp.44) states that Chinese business culture succeeds on amicability, as it emphasises friendly cooperation as a basis success. This is because Chinese people strongly believe that in business, friendship is more important than regulation outcomes (Wang et al, 2005, pp.44). In addition, Chinese businesses believe that harmony brings business opportunities while anger or confrontation is likely to cause a loss of business, and that the good feeling play a role in developing and maintaining a good business(Wang et al, 2005, pp.44). This is because Confucianism emphasises on the role of moral principle is that of legal regulation (Wang et al, 2005, pp.44). Chen (2004), cited in (French, 2010, pp.89), found that the analysis of Guanxi has an effect on management systems and business processes of an organisation. Chen (2004), defined that guanxi referring both interpersonal relationships and connections (French, 2010, pp.89). In addition, Chen (2004), describes guanxi as the binding of two people through the exchange favours rather than expression of sympathy as it tends to be more utilitarian than emotional (French, 2010, pp.89). Chen (2004) stresses the importance of the moral dimension that a person obsevering the rule of quality and not refusing to return the favour, as this could
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lead to a consequence of losing face and be seen as untrustworthy (French, 2010, pp.89). There is a desire to avoid competition, which leads to a positive sense of group solidarity in areas like negotiation, business networking, team working & cooperation. Figure 4 illustrates the importance of maintaining Guanxi within the Chinese business culture and the different stages that need to be achieved.

Figure 4: Importance in Maintaining 'Guanxi': (Wang, et al, 2005, pp.47-51).

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6. HOFSTEDE'S CULTURAL DIMENSIONS

Hofstedes five cultural dimensions of culture (Table 5,6 and Appendix ) illustrates the major cultural differences between Germany and China. Hofstedes model sets out a framework to understand characteristic patterns pf workplace behavior based on collective programming (French, 2010, pp.54). Hofstedes five cultural dimensions of culture are as follows:

Fazer resumo desta tabela sff

Power distance - (PD) that is the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally. This represents inequality (more versus less), but defined from below, not from above. It suggests that a society's level of inequality is endorsed by the followers as much as by the leaders. Power and inequality, of course, are extremely fundamental facts of any society and anybody with some international experience will be aware that 'all societies are unequal, but some are more unequal than others'. Uncertainty avoidance (UAI) deals with a society's tolerance for uncertainty and ambiguity; it ultimately refers to man's search for Truth. It indicates to what extent a culture programs its members to feel either uncomfortable or comfortable in unstructured situations. Unstructured situations are novel, unknown, surprising, different from usual. Uncertainty avoiding cultures try to minimize the possibility of such situations by strict laws and

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rules, safety and security measures, and on the philosophical and religious level by a belief in absolute Truth; 'there can only be one Truth and we have it'. People in uncertainty avoiding countries are also more emotional, and motivated by inner nervous energy. The opposite type, uncertainty accepting cultures, are more tolerant of opinions different from what they are used to; they try to have as few rules as possible, and on the philosophical and religious level they are relativist and allow many currents to flow side by side. People within these cultures are more phlegmatic and contemplative, and not expected by their environment to express emotions. Individualism/Collectivsim - (IDV) on the one side versus its opposite, collectivism, that is the degree to which individuals are inte-grated into groups. On the individualist side we find societies in which the ties between individuals are loose: everyone is expected to look after him/herself and his/her immediate family. On the collectivist side, we find societies in which people from birth onwards are integrated into strong, cohesive in-groups, often extended families (with uncles, aunts and grandparents) which continue protecting them in exchange for unquestioning loyalty. The word 'collectivism' in this sense has no political meaning: it refers to the group, not to the state. Again, the issue addressed by this dimension is an extremely fundamental one, regarding all societies in the world. Masculinity/Femininty (MAS) refers to the distribution of roles between the genders which is another fundamental issue for any society to which a range of solutions are found. The IBM studies revealed that (a) women's values differ less among societies than men's values; (b) men's values from one country to another contain a dimension from
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very assertive and competitive and maximally different from women's values on the one side, to modest and caring and similar to women's values on the other. The assertive pole has been called 'masculine' and the modest, caring pole 'feminine'. The women in feminine countries have the same modest, caring values as the men; in the masculine countries they are somewhat assertive and competitive, but not as much as the men, so that these countries show a gap between men's values and women's values. Long-term (LTO) orientation versus short-term orientation: this fifth dimension was found in a study among students in 23 countries around the world, using a questionnaire designed by Chinese scholars It can be said to deal with Virtue regardless of Truth. Values associated with Long Term Orientation are thrift and perseverance; values associated with Short Term Orientation are respect for tradition, fulfilling social obligations, and protecting one's 'face'. Both the positively and the negatively rated values of this dimension are found in the teachings of Confucius, the most influential Chinese philosopher who lived around 500 B.C.; however, the dimension also applies to countries without a Confucian heritage.

Table 5: Hofstede's Five Cultural Dimensions: Germany vs China (Geert-Hofstede, 2009), (French, 2010, pp.56).

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Hofstede's Cultural Dimensions: Germany vs China

140 120 100 80 80 60 40 20 0 PD IDV MAS UAI LTO 35 20 30 31 67 66 66 65 GERMANY CHINA 118

Using Hostedes framework, Table 6 analyses the cultural difference was between China and Germany characteristics and the binding actions of preference.

Table 6: Hofstedes Five Dimensions of Culture: China Vs Germany: (Geert-Hofstede, 2009), (French, 2010, pp.56) , (Mind Tool, 2010).

Hofstedes Five Dimensions of Culture: China Vs Germany

CHINA
Characteristics PD (HIGH) 80 Centralized companies. Strong hierarchies. Large gaps in compensation, authority, and respect. Emphasis on building skills and becoming masters of something. Work for intrinsic rewards. Actions Acknowledge a leader's power. Be aware that you may need to go to the top for answers. (LOW) 35
Characteristics

GERMANY Actions
Use teamwork. Involve as many people as possible in decision making. Acknowledge accomplishm ents. Don't ask for too much personal

Flatter organizations. Supervisors and employees are considered almost as equals.

IDV

(LOW) 20

Show respect for age and wisdom. Suppress feelings and emotions to work in harmony. Respect traditions and

(HIGH) 67

High valuation on people's time and their need for freedom. An enjoyment of challenges, and an expectation of

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rewards for hard work. Respect for privacy. information. Encourage debate and expression of own ideas. Be aware that people may expect male and female roles to be distinct. Advise men to avoid discussing emotions or making emotionallybased decisions or arguments. Be clear and concise about your expectations and parameters. Plan and prepare, communicate often and early, provide detailed plans and focus on the tactical aspects of a job or project. Express your emotions through hands gestures and raised voices. Expect to live by the same standards and rules you create. Be respectful

Harmony more important than honesty.

introduce change slowly.

MAS

(HIGH) 66

Men are masculine and women are feminine. There is a well defined distinction between mens work and womens work.

Be aware that people may expect male and female roles to be distinct. Advise men to avoid discussing emotions or making emotionallybased decisions or arguments.

(HIGH) 66

Men are masculine and women are feminine. There is a well defined distinction between mens work and womens work.

UAI

(LOW) 30

Informal business attitude. More concern with long term strategy than what is happening on a daily basis. Accepting of change and risk.

Do not impose rules or structure unnecessarily. Minimize your emotional response by being calm and contemplating situations before speaking. Express curiosity when you discover differences.

(HIGH) 65

Very formal business conduct with lots of rules and policies. Need and expect structure. Sense of nervousness spurns high levels of emotion and expression. Differences are avoided.

LTO

(HIGH) 118

Family is the basis of society. Parents and men have more authority than young people and women.

Show respect for traditions. Do not display extravagance or act frivolously. Reward perseverance,

(LOW) 31

Promotion of equality. High creativity, individualism. Treat others as you would like to

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be treated. Self-actualization is sought. of others. Do not hesitate to introduce necessary changes.

Strong work ethic. High value placed on education and training.

loyalty, and commitment. Avoid doing anything that would cause another to "lose face".

1. DILEMMES & SOLUTION FOR STRUCTURE & SYSTEMS

6.1. DILEMMES WITHIN SIEMENS CORPERATE STRUCTURE IN CHINA

According to the work founded by Trompenaars and Woolliams (2003) corporate culture falls under for extreme stereotypes, which can be seen in Table 7.
Table 7: The extreme stereotypes of corporate culture: (Trompenaars and Woolliams., 2003, pp.365-366).

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Even though I should be careful in stereotyping corporate culture in this extreme manner, I can safely say that my findings on the Chinese corporate culture fit nicely into the family culture stereotype developed by Trompenaars and Woolliams (2003). Employees in the family seemed to be interacted brand of centralised power or father or mother. The power of the organisation is based on autocratic leader who is like spider web directs the organisation. Organisational members tend to be near to the centre as possible, and that is a source of power. Hence the climate inside the organisation is highly proliferative and full of intrigues. In this political system, the prime logic and of vertical differentiation is hierarchal differentiation of power and status (Trompenaars and Woolliams., 2003, pp.365-366) . Siemens culture is stereotyped as being the guided missile. This is because their culture and revolves around task and project orientation of their organisational relationship is very resource orientated (Trompenaars and Woolliams., 2003,
pp.365-366). This can be clearly seen in the way Siemens have shaped in their corporate culture around their organizational cultural on high performance culture.

6.2.

SOLUTIONS WITHIN SIEMENS CORPERATE STRUCTURE IN CHINA

According to Trompenaars and Woolliams (2003), there are six ranked tension scenarios to be considered when integrated to cultural differences. They are as follows:
Table 8: Top six ranked tension scenarios: (Trompenaars and Woolliams., 2003, pp.366).

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Having established that the Chinese corporate culture is a family based (current), and Siemens corporate culture is guided missile (ideal) stereotype. My next is to find ways of integrating business and cultural challenges, while remembering the cultural values of Siemens (Table 2). Trompenaars and Wooliams (2003), the change process, he essentially is facing dilemmas he or she needs to reconcile it with areas of people, time and nature. Trompenaars and Wooliams argued that successful leaders do not change from horn of dilemma to its opposite horn. They are not trying to compromise between extreme of values orientation, from extreme individualism to teamwork, from universal rules to learning expectations, from performance expectations to the respect for seniority ( 2003, pp.371). In the case Siemens cororate integrating with Chinese corporate culture Table 9 illustrates a different solution integration.
Table 9: Solutions for integrating dilemmas found in China and Siemens corporate culture: (Trompenaars and Woolliams., 2003, pp.371).

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7.

SOLUTION FOR REPORTING METHODS

The Johari Window (developed by Joseph Luft and Harry Ingham) is a communication model that can be used to improve understanding between individuals within a team or in a group setting. Based on disclosure, self-disclosure and feedback, the Johari Window can also be used to improve a group's relationship with other groups. There are two ways that this model can help Siemens intergrate a better reporting system for their Chinese workforce (Mind Tool, 2010). The following areas are: 1. To build trust with their Chinese workforce, especially as trust is a very important factor in the Chinese culture (guanxi). This is done by individuals disclosing information about themselves 2. Empolyees can learn about themselves and come to terms with personal issues with the help of feedback from others. By explaining the idea of the Johari Window to Siemens new workforce, Siemens can help team members understand the value of self-disclosure, and gently encourage people to give and accept feedback. If Siemens intergrate this model sensitively within their corporate culture, then it can help their new employees build more-trusting relationships with one another, solve issues and work more effectively as a team (Mind Tool, 2010).

Johari Window (Figure 5), has four quadrants, they are:

Quadrant 1: Open Area What is known by the person about him/herself and is also known by others.

Quadrant 2: Blind Area, or "Blind Spot" What is unknown by the person about him/herself but which others know. This can be simple information, or can involve deep issues (for example, feelings of inadequacy, incompetence, unworthiness, rejection) which are difficult for individuals to face directly,
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and yet can be seen by others.

Quadrant 3: Hidden or Avoided Area What the person knows about him/herself that others do not.

Quadrant 4: Unknown Area What is unknown by the person about him/herself and is also unknown by others.

The process of enlarging the open quadrant vertically is called self-disclosure, a give and take process between the person and the people he/she interacts with.

Figure 5: Johari Window (Mind Tool, 2010).

2. CHANGE MANAGEMENT PROCESS

In order, for Siemens to implement the integration of both their corporate culture and the Chinese culture in their new production facility in Shanghai, they have to have a successful process change management. One of the cornerstone models for understanding organizational change
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was developed by Kurt Lewin back in the 1950s. His model is known as Unfreeze Change Refreeze, refers to the three-stage process of change he describes. Lewin, a physicist as well as social scientist, explained organizational change using the analogy of changing the shape of a block of ice, see Figure 6 (Mind Tool, 2010).

Figure 6: Lewin's Change Management Model: (Mind Tool, 2010).

Figure 7 illustrates the practical steps seamlessly to undertake in order to manage change within the cultural organisation. Lewin's change model is a simple and easy-to-understand framework for managing change. Therefore, I believe that it would be easy to integrate the framework within both cultures.

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By recognizing these three distinct stages of change, Siemens can plan to implement the change required. Siemens start by creating the motivation to change (unfreeze). Then Siemens move through the change process by promoting effective communications and empowering the Chinese people to embrace new ways of working (change). And the process ends when Siemens return the organization to a sense of stability (refreeze), which is so necessary for creating the confidence from which to embark on the next, inevitable change for Siemens (Mind Tool, 2010).
Figure 7: Lewin Change Management Framework: Practical Steps for Siemens Implement change (Mind Tool, 2010).

Lewin Change Management Framework: Practical Steps for Siemens Implement Change
Unfreezing Implementation 1. The Change within Siemens & Chinese Culture. Structure, Reporting Management style Change 1. Siemens need to communicate often to its employees: Throughout the planning and implementation of the changes. 2. Siemens need to describe the benefits: Explaining exactly the how Refreeze 1. Anchor the changes into the both culture.

2. Ensuring that there is strong support from upper management of Siemens CEO:

2. Siemens need to develop ways to sustain the change: Ensure leadership 28

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[SID: 6128252] support. Create a reward system. Establish feedback systems. Adapt the organizational structure as necessary. 3. Siemens need to provide support and training. Keep everyone informed and supported.

Stakeholder (Siemens & New Chinese workforce).

the changes will affect everyone.

3. Creating the need for change within the new production factory: Siemens need to create a compelling message as to why change has to occur. By using their vision and strategy as supporting evidence. Communicating the vision in terms of the change required. Emphasize the "why". 3. Siemens need to manage and understand the doubts and concerns from their stakeholders. Siemens need to remain open to employee concerns and address in terms of the need to change.

3. Siemens need to prepare everyone for what is coming: Dispel rumours. Answer questions openly and honestly. Deal with problems immediately. Relate the need for change back to operational necessities. 3. Siemens needs to empower action. Provide lots of opportunity for employee involvement. Have line managers provide day-today direction. 4. Involve people in the process. Generate shortterm wins to reinforce the change. Negotiate with external stakeholders as necessary.

4. Finally Siemens should celebrate success with all their employees.

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8.

CONCLUSION

RESUMIR A PARTE DAS SOLUTIONS TO CROSS CULTURAL ISSUES DO TRABALHO DA MONH

REFERENCE LIST Articles:

Trompenaars & Woolliams.,2003. A new framework for managing change across cultures. Journal of Change Management, 3 (4) pp.361-75.

Books:
French, R. 2010. Cross-Cultural Management in Work Organisations. London: CIPD. Johnson, G., Scholes, K. & Whittington, R. 2008. Exploring Corporate Strategy: Text and Cases. UK: Pearson Education.
Hannagan, T. 2002. Mastering Strategic Management, New York:, Palgrave.

Wang, Y., Zhang, X. S. & Goodfellow, R. 2005. China Business Culture: Strategies for Success. Singapore: Talisman.

Websites
Cyborlink. 2010. Germany. [Online]. Available: < http://www.cyborlink.com/besite/germany.htm> [Accessed 28 October 2010].

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Geert-Hofstede. 2010. Hofstede's Cultural Dimensions: China. [Online]. Available: < http://www.geert-hofstede.com/hofstede_china.shtml> [Accessed 28 October 2010].

Geert-Hofstede. 2010. Hofstede's Cultural Dimensions: Germany. [Online]. Available: < http://www.geert-hofstede.com/hofstede_germany.shtml> [Accessed 28 October 2010].

Mind Tools. 2010. Hofstede's Cultural Dimensions: Understanding workplace values around the world. [Online]. Available: < http://www.mindtools.com/pages/article/newLDR_66.htm> [Accessed 28 October 2010].

Mind Tools. 2010. The Johari Window Creating Better Understanding Between Individuals and Groups. [Online]. Available: < http://www.mindtools.com/CommSkll/JohariWindow.htm> [Accessed 28 October 2010].

Mind Tools. 2010. Lewin's Change Management Model Understanding the Three Stages of Change. [Online]. Available: < http://www.mindtools.com/pages/article/newPPM_94.htm> [Accessed 28 October 2010].

Siemens. 2010. Company History. [Online]. Available: <http://www.siemens.com/companyhistory> [Accessed 28 October 2010].

Siemens. 2010. Events. [Online]. Available: <http://www.siemens.com/press/pool/de/events/pressegespraech/press-briefing-silde.pdf> [Accessed 28 October 2010]. Siemens. 2010. Management Structure. [Online]. Available: <http://www.siemens.com/about/en/management-structure.htm> [Accessed 28 October 2010].

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Appendix A: History of Siemens

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Appendix B: Confucianism Five Basic Human Relationship Categories (Wu Lun)

EMPEROR Kindness FATHER Support & Consideration HUSBAND Protection

SUBJECT Loyalty

Son Piety & Obedience WIFE Submission YOUNGER BROTHER Modelling Subject FRIEND Trust & Obligation

OLDER BROTHER Care

FRIEND Trust & Obligation

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APPENDIX C: GERMANY BUSINESS CULTURE GERMANY BUSINESS CULTURE

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. In business situations, shake hands at both the beginning and the end of a meeting. Additionally, a handshake may be accompanied with a slight bow. Reciprocating the nod is a good way to make a good impression, as failure to respond with this nod/bow (especially a superior) may get you off to a bad start. Be sure to look directly into the person's eyes while shaking hands. 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. In business meetings, age takes precedence over youth. If you are in a group setting, the eldest person enters first. Germans keep a larger personal space around them, approximately 6 inches more space than North Americans do. However, it is not unusual that when in line at a store cash register, Germans will crowd up very close to the person in front of them. 34

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People that have worked together for years still shake hands each morning as if it were the first time they met. German men frequently great each other with Herr 'last name', even when they know each other very well. Germans are able to consume large quantities of beer in one evening, but public drunkenness is not acceptable. It is best to know your limits, especially in Bavaria where two liters of beer is an ordinary evening. Pace yourself and eat plenty of food. Typically, you do not wait to be seated in German restaurants, and it is not uncommon to share a table with strangers. However, most Germans will think it odd if you try to initiate a conversation with them beyond just establishing that the chairs are available.

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.

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French, R. 2010. Cross-Cultural Management in Work Organisations, London, CIPD. Hannagan, T. 2002. Mastering Strategic Management, New York:, Palgrave. Johnson, G., Scholes, K. & Whittington, R. 2008. Exploring Corporate Strategy: Text and Cases, Pearson Education UK. Trompenaars & Woolliams.,2003. A new framework for managing change across cultures. Journal of Change Management, 3 (4) pp.361-75. Wang, Y., Zhang, X. S. & Goodfellow, R. 2005. China Business Culture: Strategies for Success, Singapore, Talisman.

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