Chapter 4: Managing in a Global Environment

Case Application: Learning to Love Globalization Q 1: Answer: Prior to 2002 SAP was characterized with the ethnocentric attitude. This could be because of the statement of a veteran developer whom stated we used to be kings here . Which shows that before foreigners were employed by SAP only Germans were working there. Now SAP can be characterized with geocentric attitude because they hired employees fom foreign countries such as United States, India and China. Not only that, they even have foreign managers employed in SAP now. Q 3: Answer: SAP managers could support, permote and encourage cultural awareness amongst the various global locations by following the Hofstedes five dimensions of national culture as a guide. Firstly, they should encourage their subordinates to be more individualistic so that they will do their job correctly and care for their organization interest and goals. Secondly, they should play down inequalities so that the employees are not afraid to approach them if they have some problems, doubts or complications. Thirdly, managers should have low uncertainty avoidance so that they will be comfortable with risks and tolerant with the different behavior and opinion of not only the local employees but also the foreign employees. Fourthly, they should make the employees more achievement oriented so that values such as assertiveness, acquiring money and goods and competition will prevail and they will work harder. Lastly, managers should be more long-term oriented and look for ways to improve the organization by analyzing what could happen in the future value thrift so that they will not waste the organization money. Moreover, they should be more persistent so that they will always work hard towards achieving the organizations goals.

Q 4: Answer: Other managers can learn many things from SAPs experience in going global. Firstly, they can follow the geocentric attitude that gives them a view that focuses on using the best approaches and people from around the globe. Secondly managers from any country will need to be aware of how their decision and actions will be viewed not only those who may agree but, more importantly, by those who may disagree. They will adjust their leadership styles and management approaches to accommodate these diverse views.