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CROSS-CULTURE MANAGEMENT: WORKER IN A MULTICULTURAL ENVIRONMENT

Zdeka KONEN
The contribution is devoted to the issue of cross-culture management. This issue can be considered extremely topical, especially now, in the current period that is typical for a very quickly proceeding process of internationalization and globalization and thus continuous intensification of connections among members of various national cultures. Attention is focused on conditions of successful international cooperation including ways of bringing near of cultures of mutually cooperating companies. Subsequently, factors that influence behaviour of worker in multicultural environment and preparation of its effective operation in conditions of a multi-national company are stated. Recommended processes for overcoming of cultural differences including basic rules and a process of adapting to a different culture are further developed. The article was written within the research project entitled The Impact of Organizational Culture on Performance of Multicultural Companies in the Czech Republic, Austria and Hungary which is funded from the Austrian Science and Research Liaison Office Brno on behalf of the Austrian Federal Ministry for Education, Science and Culture. Key words: cross-culture management, internationalization, globalization, national cultures, multicultural environment

1. Introduction
A mutually intertwined process of internationalization and globalization has been proceeding very quickly and it has been becoming to a greater extend a characteristic feature of the present. Multinational companies are attracted by non-filled markets, cheap qualified labour force, convenient location or tax relief and nowadays they are able to position and move very quickly any source into any territory that bears, in their opinion, the most suitable conditions for increasing their value. In this context it mainly includes opportunities and challenges of developing global society. However, the cooperation advantageous for the partners involved may change into mutual competition. In the area of management it means that management should not be limited only to performing of economic and technical operations and not to pay attention to the influence of cultural environment companies operate in. It is necessary to focus on the ability of managers to manage a company in multicultural conditions. In this context we can find quite a new term intercultural management, defined by Nov and co. as managing and running organizations in an environment of two or more cultures (1996, p. 76). International working teams are quite common these days. Companies more and more get into touch with members of various national cultures. This includes their employees, business partners and customers. The work of managers is more and more influenced by development of global economics and that is why the need to manage problems of controlling and communication in the multicultural environment of multinational companies is of prominent interest now.

2. Ways of managing cultural differences at companies operating in multicultural environment

One of the main tasks of management is solving of problems that are may appear at encountering individual company and national cultures. At the same time it is important which of the partner companies brings know-how, capital, management and suchlike. The partner that provides the future company management usually also influences the newly created organizational culture. When trying to overcome possible misunderstandings and to create of an environment favourable for all participating partners, it is possible to use several ways of converging of partner companies (Nov et al., 1996): 2.1. Cultural dominance In case of the so-called cultural dominance it is the main goal to create a single strong company culture within the framework of all business subjects, which can be for example daughter companies or divisions. In this context we can encounter the term global organization culture, where in the process of creating of a new organization culture an emphasis is put on enforcing of universal values, norms and patterns of behaviour. Daughter companies are perceived as inseparable parts of integrated organization culture of the mother company. This approach is accepted especially in those cases where it is necessary for the company to act in the same way in all means so that to use organization and economic advantages of integrated actions. Besides the facts stated the choice of way of cultural convergence can also be influenced by the beliefs of the managers of the mother company concerning universality of values and norms of the culture being.

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Introducing of integrated organization culture happens without problems, if the daughter companies are newly built. In other cases problems may occur. 2.2. Plurality of cultures Plurality of cultures or, in other words, polycentric culture bears the feature of cultural compromise. The basis is creating a suitable space for individually different approach to creation of organization culture of each daughter company. This can arise from cultural traditions of the local environment and is obliged to respect universal goals, approaches and methods only to a limited extend. The reason for choosing a polycentric culture can be for example the fact that the company operates in very different conditions. 2.3 Synergic model Application of synergic model also referred to as geocentric culture involves mainly use of specific features of individual national cultures in the interest of a single common culture which represents a purposeful interconnection of all regional parts of an international company. A company is internally integrated despite differences in national cultures. A very important criterion of choice of suitable employees is the so called intercultural competence which means the actual ability of an employee to manage the demands of work in an international team and in a different cultural environment. If managers did not cooperate and were not interested in convergence of cultures of cooperating organizations and pursued simple implementation of conditions, shared values, norms and patterns of behaviour, misunderstanding, conflict situations and in extreme situations even decline or vanishing of the common business may occur. If companies that are fusing are entering this partnership with the aim of gaining strategic advantages and synergic effects, why suddenly upon the realization of these synergies problems and misunderstandings occur? According to research workers and consultants the main, mutually interconnected, causes are cultural shock, change resistance and protection of own identity (Larsson, Risberg, 1998, Gancel, Rodgers, Raynaud, 2002, in Lukov, Nov et al., 2004). Cultural shock, which occurs in case that the culture of to fusing companies is different, is perceived as a feeling of disorientation connected with the fact that people are exposed to the necessity to communicate and cooperate with someone who perceives the situation differently and does things in a different way. At the same time each participating party is convinced that the way they do things is the only correct one. If the cultural differences are then not managed, the situation results in mutual disbelief, misunderstandings, disillusion, decrease of morals and productivity, increase of fluctuation and leaving of key workers (and thus loss of know-how). In such situations the customer is rarely in the centre of interest. The final result is decrease of efficiency. The rate of efficiency loss can represent up to 25 - 30% according to Walters research (1985, according to Larsson, Risberg, 1998, in Lukov, Nov et al., 2004). A protection of ones identity, which appears as a result of feeling of threat and is one of the causes of cultural stress that people experience after fusion of companies, happens on the level of an individual as well as organization. Culture in which man lives and the basic presumptions, values and norms that he shares with the others provide the feeling of unity, patterns of behaviour, stable and predictable environment and thus emotional wellness. While national culture is in peoples blood, which means that it is an internal and emotional part of every individual, in case of organization culture the extend of emotional wellness and identification with a certain culture depends on how much the organization culture corresponds with personal values and internal norms of an individual. However, even organizations have their own identity connected to their history and being proud about their mark and tradition, which the staff identifies with, shares and tends to protect. It thus happens that as a result of fusions and acquisitions that the members of the companies which were bought and are smaller than those that bought them feel frustrated, suffer from the loss of position (from the market leader in our segment we have become just a small component in a new company) and disillusion leading to resistance and unwillingness to create synergies. The consequences of ignoring of cultural differences can be devastating for the results of fusions and acquisitions. Based on their fifteen-year experience in advisory practice Gancel, Rodgers a Raynaud (2002) defined the following categories of causes: 1. Insufficient awareness of existence of differences managers who are not aware of the very existence of the cultural dimension of management.

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2. Insufficient understanding managers know about the existence of culture, but they do not understand this issue and thus underestimate the culture impact and do not have any need to deal with it. 3. Insufficient willingness managers knowingly decided not to deal with culture. Such decision of theirs is usually connected with one or more of the following reasons: - managing of cultural dimensions is not a sufficient priority for them (they understand that its cultural aspects are important, but they are not as urgent for them as pressure to reach results thus they focus their energy on economic issues or technical problems and they do not have enough time to manage cultural differences); - they experience fear of the unknown (dealing with financial problems is safer and more comfortable, because it enables falling back on numbers and facts to manage soft problems means to deal with people, behaviour, emotions, make decisions in a different way, which causes discomfort, fear and uncertainty); - care of cultural integration is not attractive enough for them (cultural integration is not easy to measure, its contribution cannot be expressed in money and thus it is not possible to prove success Opening a new factory improves image. But dealing with culture? What about it?.); - managers really believe that it is not necessary to do anything. (Our managers are intelligent, they understand that cooperation is necessary this approach is, according to the authors, the most contra productive and very naive, especially if we realize deeply emotional substance of national culture); 4. Insufficient level of abilities and skills managers may be aware of the need to do something about it and they may even try to do it, but they fail due to lack of intercultural competences (which is due to lack of knowledge, intercultural sensitiveness, lack of appropriate skills, etc.).

3. Worker in a multicultural environment

Success of cooperation depends to a great extend on abilities of workers who operate in multicultural conditions. These workers should meet certain conditions of successful fulfilling of everyday tasks in a multinational company. Unfortunately, cooperation in international conditions is often not as successful as managers originally expected. One of the most frequent reasons can be seen in not understanding cultural differences in the environment of the partner companies. It is very often possible to meet international teams consisting of great specialist in their field, but despite all effort, suitable conditions and perfect work of individuals, the output of the team as a whole does not correspond to the expected results. It is not always possible to reach mutual understanding, despite the fact that the same language of communicating and corresponding techniques is used. Habits based on long-term traditions may be different in different countries and the efficiency of mutual cooperation depends to a great extend on how much effort the workers from different cultural environments exercise to come into agreement. Misunderstandings or conflicts, which usually represent serious obstructions of successful cooperation, appear especially due to the fact that ideas about certain cultures are deeply rooted and as such they are considered to be generally true. In the process of meeting and cooperation spontaneous reactions occur and thus it can happen that the way the partner acts is seen as something imperfect or even funny. In this way cultural differences may easily cause different perception, misunderstanding and missing each other. It is useful to realize that finances, technologies or transmission of information are to a great extend independent on the place of origin and are very easily transferable into a different environment. On the other hand, management style, decision making, educating or involvement of employees are closely connected and, as stated by Nov et al. (1996), determined by specific patterns of a given culture that direct the ways of acting and thus prescribe to the individuals how to behave in specific situation. 3.1. Factors influencing behaviour of workers in multicultural environment Acting and ways of behaviour or workers in multicultural environment is influenced by many factors. One of the most important factors is information about culture of partners of colleagues known to workers. Understanding and correct interpretation of different behaviour of a partner can contribute to mutual understanding and good cooperation.

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Companies enter cooperation relationships with other companies and they can operate within more organization or national cultures. This fact influences the behaviour of the company. Problems caused by different perception, ways of thinking and behaviour of members of different cultures may exist on more levels (Lukov, Nov et al., 2004): - on the level of organization cultures within the framework of national fusions, acquisitions and other forms of cooperation of companies; - on the level of organization as well as national cultures within the framework of international fusions, acquisitions and other forms of international cooperation. If fusions or acquisitions are created within one country, which means among local companies, the cause of conflict is difference of the content of organization cultures. Confrontation on the level of organization processes, systems, practices and behaviour of employees that takes place here is relatively visible for the employees of the fusing companies. Less visible (or hidden) is the conflict on the level of organization values and especially the main conditions through which the external manifestations are determined. If fusions and acquisitions are created among companies from different countries, the employees are exposed to a double conflict: a conflict on the level of organization cultures and a conflict on the level of national cultures. The authors agree that the differences in thinking, feeling and behaviour resulting from differences of national cultures are deeper than the differences resulting from various organization cultures (Hall, 1995, Gancel, Rodgers, Raynaud, 2002, etc.). The more distant are the countries of origin of the fusing companies the more different are not only the main conditions and preferences of values, but also organization characteristics of these companies, because differences in national cultures lead to different organization practices and different employees expectations (Kogut, Singh, 1988, according to Larsson, Risberg 1998) and to nationally specific management style (Olie, 1990, according to Larsson, Risberg, 1998). Researches carried out so far show that if the cultures of the fusing companies are alike, the results of fusions and acquisitions are more favourable than in case of different cultures (Larsson, Risberg, 1998, Forstmann, 1998, etc.). The results of fusions and acquisitions may not necessarily become worse with the growing extend of cultural difference, because the extend of impact is influenced by other factors that play a certain role here (Larsson, Risberg, 1998) and cultural difference also does not have to automatically mean a devastating collision (Very, Lubatkin, Calori, 1998), especially when the workers or the fusing companies are well prepared to this fact. 3.3. Preparation of workers for their operation in multicultural conditions Preparation as well as selection of workers whose role it is to fulfil work tasks in international environment depends to a great extend on the form of cooperation between the partner companies which are represented by the individual workers. In case of a looser cooperation between companies, for example based on business contracts, the selection and preparation of workers takes place rather on informative and individual level. In cases of closer cooperation, such as fusion, company takeover of direct foreign activities, the selection as well as preparation of workers should be more complex and very intensive and it should concern workers of the whole company. 3.2.1. Processes of overcoming cultural differences Every worker who fulfils his/her tasks in multicultural environment, no matter if he or she is a company representative for a prearranged period or as an employee, should know several basic rules that can make the orientation in a strange environment easier. When overcoming cultural differences, it is necessary to know oneself perfectly, which means to know ones culture, which is neither obvious nor simple. An enormous pitfall is the fact that within ones own culture the approach to the others as well as interpretation of their behaviour is verified and does not cause big problems, because despite the globalisation tendencies, the depth of cultural roots, patterns and standards influences perception and evaluation of gained information. The starting point for managing intercultural standards is realization of validity of the patterns of the own culture and recognition of cultural groundwork of the partner. The awareness of the fact that for example the Czech culture is optimal for solving of life situations just in the Czech society is a very important point in the effort to manage smooth operation in multicultural conditions. Schroll-Machl, Nov et al. (2001) recommend quite a simple procedure consisting of three consequent steps leading to a successful cooperation in international environment:

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1. Good knowledge of foreign culture The first step means acknowledging and admitting the existence of differences between cultures. This mainly includes differences in perceptions, interpretations and evaluations of social situations and people who create them and act within them. These differences than have to be named, described, explained and understood. Recognition of the culture of a partner is considered to be the first condition of mutual understanding and good cooperation. This step is definitely neither common nor easy.

2. Respect of a foreign culture

Respect of a foreign culture means most of all accepting their differences without any judgement. It is not possible to claim that a certain culture is more perfect, better than another culture. Cultures are different and for their members they represent optimum to manage life situations in conditions they have been living in for a long time. 3. Helpful steps in the relationship to a foreign culture The last stem of the recommended process should be the effort to find common solution, mutual understanding and simplification of the complicated and demanding process of behaving in different cultural conditions. These helpful steps in no case mean that the participating partners should give up their cultural background, but it suggests that they should use their knowledge of own culture to gain knowledge about the partners culture, which can be quite easy after all. Very often it is enough to sacrifice something that is not too important for us, but it means a lot for another culture. The main condition is a very good knowledge of partners and their cultural environment, though. The main condition of a successful international cooperation is then understanding, respect and getting closer to the culture of foreign partners. Workers operating in international environment should be introduced to this procedure and through these simple steps they should try to avoid possible misunderstandings and conflicts in their everyday working lives. The mentioned recommendations can be used in contact with members of different cultures operating in international environment in both local and foreign environment. 3.2.2. Process of assimilation with a foreign culture The process of assimilation with a foreign culture should be introduced especially to those workers who operate in a foreign cultural environment on a long-term basis. According to Weber and co. (1998) this process is very similar for many workers operating in multicultural conditions and it can be described by four phases:

1. Observation phase
Observation phase starts with the arrival of the representative worker into the hosting country. In most cases it happens without serious problems because everything is usually prearranged and a great attention is paid by the accepting organization to the worker. He creates new contacts with workers from the same country as well as with workers from the hosting organization quite quickly. The worker usually gains a very positive impression.

2. Collision phase
During the so-called collision phase the first problems occur. The new colleagues are not as reliable in some situations as they originally seemed to be. It is more difficult to make new contacts with people, especially out of work, than it was at the beginning. The worker continuously develops a critical attitude towards the foreign environment. This phase can also be called a critical phase and it usually lasts two to six months. The worker starts to be uncertain, which may decrease his or her self-confidence, especially if the expectancy and demands on his or her efficiency are simultaneously increasing. In this phase the danger of interruption of the stay by the worker is quite likely. He or she may experience the so called cultural shock that is usually defined as an emotional reaction of an individual resulting from loss of a culture familiar to him. Stressful situations, the intensity of which depends on how strongly the worker perceives the cultural departure, may occur.

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3. Consolidation phase
In the third phase the worker recovers from the previous crisis, if he manages to find balance after the collision phase. He continuously adapts to the conditions of the hosting country, which is often connected to improvement of the language knowledge and identifying of reasons of different ways of behaviour of the other individuals. In an ideal case the system of relationships is settled and ones own ideas are becoming a possible alternative of evaluating measures. 4. Departure phase Departure phase starts already with the preparations for the return from a foreign stay to the home country. An uncertainty about future in both working and personal life may appear. The worker clearly understands that the habits and ways of behaviour he acquired abroad will be lost in the home country. His found balance and satisfaction can get lower and go again through the so-called contra-cultural shock, this time at the arrival to his own country. This shock is specific by repeated process of adoption. During their stay abroad the workers may get into various life and work situations and go through different personal experience. That is why it is not possible to generalize this process. The length of each phase is also different for each individual. Despite this fact, knowledge of this process is very beneficial for the workers, especially from the point of view of preparations for a long-term stay in the environment of a foreign culture. The more distant is the hosting culture and its culture for the visiting worker, the more important is his preparation and consequent ability to adapt to the culture that is strange to him. 4. Conclusion In the period of enlargement of Europe, orientation in international environment is definitely vital not only for its members but also for other people. Many of them meet the differences of national cultures not only as tourists but also in everyday working life, because the fast process of internationalisation and overall globalisation brings requirements for inevitable integration of cultures and cooperation within the framework of multinational organizations. Traditional companies operating only inside of the borders of the individual countries are very rare these days. Culture and cultural differences play an important role in international companies, at work of multicultural teams and at international meetings. Different understanding of approaches, different cultural patterns may cause that it is not possible to efficiently and successfully execute good intentions and ideas. People in various countries may view and interpret the same facts differently. The meanings given to them are a place where the different cultural traditions can be seen the most. The knowledge of cultural differences may help the workers operating in multicultural environment to reduce the possible misunderstandings and it enables them to foresee the possible reactions of their partners. The workers who are ready to admit, understand and respect the cultural differences of other nations and to take helpful steps have a great advantage at fulfilling tasks in multicultural environment. Intercultural management is not only a marginal area but it has been gaining more and more significance for international as well as purely national companies, if they want to succeed in the demanding competitive environment. The development trend in this area goes towards converging individual nations, communication and understanding of intercultural differences, which represents a possible way to mutual cooperation reaching beyond the contemporary borders of individual states or groups.
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