The European Union united the countries of Europe, The European Union united the countries of Europe, but each country keeps its the culture, language, organization of the state . Companies and enterprises in Sweden, Germany, Italy manage differently, maintaining a tradition of behavior and business communication. Those who come to European countries to build a business, need to be prepared for cultural differences and know what they are.
Differences in cultures and leadership styles in Europe
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Representatives of different nationalities, cultures, and worldviews work in one team of a Western European company: from North America, Asia, Africa, and Europe. Everyone has their own experience, different education and learned patterns of behavior. These are the consequences of globalization in the world. Differences between people in an organization provide competitive advantage. It is important for a manager to know how to manage a diverse staff and take into account the traditions of the management of the country where the company operates at the same time. Attempts to set up headquarters to manage international firms in the European Union have run into a problem: it is difficult to manage different people without taking cultural traditions and conditions into account. European states have different laws that govern business and different codes of corporate governance. Some countries emphasise employee relations and cooperation, others focus on competition and market processes. |
Models of business practice in different countries
The issue of styles and management traditions in different countries has been studied for a long time. Manfred Perlitz and Frank Seger explain in their 2004 article "European Cultures and Management Styles" that a unified management model did not exist in Europe after World War II. European managers still face different business communities and corporate governance issues. Therefore, success depends on how well the manager knows these differences. Management styles in Germany may not work in France, Italy or the Scandinavian countries.
The authors of the study identified five general patterns of business behaviour:
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Anglo-Saxon culture Ireland, UK, Austria, USA, Canada. The hierarchical model of management is a characteristic model for these countries. Decisions are made by one strong leader or management team. |
Scandinavian culture Denmark, Norway, Netherlands, Sweden, Finland. Decisions are taken collectively, equal relations are built up within the team. |
German culture Germany, Austria, Belgium, Switzerland. Business is formalized and bureaucratized. Conditions, functional responsibilities and procedures are prescribed in official documents and strictly observed. |
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Francophile culture
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Italian culture
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The countries of Eastern and Central Europe are adopting the Western style, taking into account the conditions and laws of the states. Rules for business, management styles change and depend on the economic and political status of each state. There is no single European approach. European management consists of a large number of management models that differ from each other and each model has its pros and cons. Diversity is a strength of business in a multicultural world.
