A-Nagels

1. Alexandra NagelsPrespective Management ServicesCross InternationalHuman Resourcesalexandra_nagels@hotmail.com+32 495 20 99 86 1

2. Introduction Cross Serviceswww.crossint.eu +32 2 609 58 70* International network of local HR expertise* Senior consultants with valuable line management experience internationally skilled in: Talent Search Mergers & Acquisitions HR Audits Change Management Executive Coaching Organisational Development* Outstanding knowledge of local legislations and local working conditions in Europe, Russia and China. Own offices in Poland, Belgium,...→ Ideal partner for Bulgarian companies which invest/start up outside the country. 2

3. Intercultural issues and HRNo theoretical models but just experiences sharing.Mindset drives human behaviors and is influenced by the population,environment, customs and “culture”.→ complete different results on the floor for the same HR Tools/techniques.→ differences in expressions of practices and organisational structures but some human characteristics are very personal or globally the same ! 3

4. AGAINStereotypes/ Typology = incomplete and only to see in their context.“sofisticated stereotypes” help you initially but if you keep them in mind, they will limite your view rather than help you !“Each organisation has the Human Resources Management it deserves ! “----- 4

5. Ten years ago: implementing a Performance system in Asia was very sensitive and offending.Now: every individual wants to be appraised and wants to get honest feedback, it is the way how that differs.Example 1 :Assignment : Implementation of performance appraisal in Japan8 Japanees and 4 Europeans joined the workshopThe HR Director had the western approach: -project set with milestones / deadlines etc .-who/what/whenReply : YESResult : NONE → CULTURAL MISTAKE 5

6. How did the project became succesful ?Fase 1 → setting up “natural teams” to determine characteristics of a PA systemFase 2 → identify the representative per cross departmental teamFase 3→ final proposalDifference in key principles : NONE.Way of doing : the people created it !They understand, live and own it ! 6

7. Example 2 :Implementation bonus system for Sales Representativesin Sweden CULTURAL MISTAKE : by law and mentality : No remuneration differences for the same jobfamily accepted.Consequence : a lot of high level managers leave Sweden to earn more outside. 7

8. Example 3 : Euro Disney in FranceAll level of all jobs described in detail; but also behavior: when the customer says.... You say.....Appearances and even haircut were described→ To much links with American Army / Business ModelConsequence : not enough or not the right candidates interested to work in Euro Disney → Enormous delays for opening → To adapt the core image/business of Walt Disney to succeed → Adapt the Disney university to European standardsHR practices differsify the behavior of the employees ! 8

9. LESSON LEARNEDThe system became the goal instead of that it serves the business → Talk less about how people should behave but talk more with the people !CHALLENGEDo not fall into the other extreme : HR is the service division : No, HR is more than only an employee championship division.HR should focus also on the external customer and ensures the right internal communication ! 9

10. Typologies on several European nationalities...Comparison on general leadership styles of management cross culturally and the consequences to the HR job.French management approach :*Autocratic-Top Mgt decides everything and does not take any remarks – “just do it”*Unions are communistic, management is the enemy, union members are impulsive, not very educated*HR is very executional / procedures / union negociations 10

11. StoryVery big FMCG Multinational – Closure factory in Lille of 1200 employees(37% unemployment ratio)Hostage of the International HR Director during 7 days. Non French HR Director spoke French → relationship → negociation  British HR colleagues 11

12. British management approach:British Management thinks long term and takes decisions “in consensus”→ slow decision taking process and slow executionSociability is all that counts (gain trust takes time)As HR :*Stay friendly, formal, social*Be very analytical in your approach→ F.e. To implement a new HR system, make sure it is already analysed in detail and let the analyst sell it to line management (ensure your team has those competences and you as top HR do not keep yourself busy with C&B) 12

13. German management approach:Hierarchical – very emphatic and people drivenInitially debate on all the reasons why something will/could not work → learning phaseAs HR :* patience – listening – starters for other countries* Datenschutz legislation → Performance Mgt systems in personal files → communication with unions is key* Union member very well educated – know their role 13

14. Story:British HR got assignment in Germany to optimize systemsSuccessful cultural insemination due to cigarettes sharing→ gained trustMetaphore :Peach : first contacts very informal but what you see is NOT what you get“I feel that......”↕Egg : can handle confrontation – straight forward“I think that .....” f.e. P.A. In US/G 14

15. American management approach:- A lot of business models are linked with the American Army culture.- Management gives a lot of empowerment – involves a lot of people – once decision taken:→ “Just do it” – no criticism accepted during execution.→ No corrections possible during process short-term execution – not so analytical→ Very sceptical people do not fit.As HR : * know your legislation and be a very good administrator → hotlines, haressment → law suits → avoiding press ...* Very burocratic – mainly maintenance → less creation of new things* Short-term execution is key 15

16. Story :‘lying nude painting of Matisse’American approach of business execution had the passing years a lot of economical success For the moment European economy growing → more long term thinkingAdapt to improve during decission taking↕Business in Asia : China short term thinkingA lot of turnover Money is the driverNo loyalty 16

17. General HR Challenges in Asia:- Optimize staffing procedures and Retention tools- Optimize education/training- Sell your company – Cross border programs- Control/follow-up of procedures and policies- Good (contract) negotiation- Organisational structures: No matrix- Asking improvement ideas are not in line with the cultureHR position becomes very important → well paid in local companies !↕ 17

18. While in the Western world expectations to HR were quite unrealistic during the last years: “HR solves everything “Now : → authority ↓ → execution level ↑ → Outsourcing ↑ → controlling positionMiddle East :- link with French systems – retention is money- execution of governmental legislations (Visa)- big gap between top management and middle management 18

19. To build a successful cross cultural HR Team :* Ensure presence of cultural diversity within your own team* As Manager : show a weakness and cultivate it. Your cross cultural team will help you and you will get a “human –vulnerable image” When you have a rather unstructured way of management, the British will love it and respect youBut do not show that too much to your German subordinates(Do not send a young, inexperienced German to Germany to solve cross cultural issues (British-smoking-story)) 19

20. In general learned lessons:- Ranking against colleagues (Jack Welsh – GE) and cut bottom 15% worked only on that moment in that organisation in a specific environmentNot accepted cross culturally but : ranking against one self, not against others = OK (GE, Unilever,…)- Employee satisfaction survey: do not improve every score but pick only those which are culturally important and adds value to the strategy- Against all theorizing on cultural differences: your direct Manager, his business approach, his value and your mutual chemistry is all over the world the most important factor for success.- The best HR practices are the most simple, all over the world !(F.e. Remuneration systems are never perfect, but the flexibility in implementation is key !) 20

21. CONCLUSIONKeep in mind :For all adaptation models there are 3 phases (Wilbur):Pre conventional : what the hell is all this ?Conventional : Adapt, play with the norm, differentiate to grow to the..Post conventional phase : mingled in, accepted, successful 21

22. Cultural study on one global company can not be interpreted and validated more than the presumption. “There is only one Finish, one Portuguese,… culture “.(f.e. Finish people do not answer on questions raised in public..?)→ do not mix nationality with culture f.e. Belgians have a lot of differences in culture but only 1 nationality → do not mix organisational cultures with people cultures, an approach of a small enterprise can differ a lot from an approach of a multinational→ think about successful systems/organisations and adapt always according local standards (Walt Disney – American program “Youth at risk”)Think common sense, do not act silly 22

23. Think common sense, do not act silly !It is all about knowing the limits of “sophisticated stereotyping”, value it but do not overestimate it.Look also at yourself and what you as individual can do instead of putting groups of people into “stereotypes”. (some cultures do not accept open conversations on one’s behaviour)You can only differentiate in groups of people when you make it your own environment → grow beyond stereotyping (Boundary crossers) 23

24. When you look out of the window and it rains : all drops are alike and wet.When you step into the rain you notice that there exist several sorts of rain !Thank you for your attention ! 24