European management

1.Managing purpose

This answers the question of the goal of a business. In the European model, business is seen on a global scale and
companies strive for global leadership. This is true for midsize European companies as well as the large
multinationals because cross-border competition has forced them to adapt to multinational markets. European
managers are regarded as being well prepared for global leadership, and this is particularly true of the millennial
generation which is better equipped for mastery of the English language and has travelled more. Stakeholder
capitalism is even more pronounced than in the past as its management model after Brexit and the American
withdrawal from international agreements. Multiculturalism has been the most visible consequence of the European
model not only for companies but in many aspects of society: education, law, the arts and politics.

2. Managing people

Europe changed its model of leadership considerably with the experience of two world wars. In Germany and other
countries participative leadership is not just a management practice but is imbedded in the corporate legal structure
in such a way that no individual can hold all the power and make all the decisions. Consultation of different parties is
seen as necessary and natural for business leaders who must make decisions in cooperation with stakeholders from
inside and from outside with governments, NGOs and initiatives for corporate social responsibility. European
management has typically invested in promoting people from within and training for long term career development. In
some European countries companies must follow mandated investment in training budgets. Europe has a long history
of internship where companies and the education system cooperate to develop skills and exposure to the workplace.

3. Managing relationships

European business changed significantly with the necessity to operate across borders. No longer could the elite of one
country dominate a multinational business nor could the culturally determined ways of building relationships be as
simple as in a business based on national foundations. Inclusive management and social equality are management
principles for companies operating outside national borders. Contracts and administration across borders are a
necessary part of European management, particularly with the free movement of labour across European member
countries. No company can manage a multinational workforce without a commitment to diversity, which in Europe
means primarily cultural diversity.

4. Managing change

This quadrant of the model is where the weakness lies, not only because of European rules and policies but also
because other parts of the world, particularly Asia, are changing faster than Europe. The preference for planned,
incremental change is challenged by disruptive business models as well as by the need to adapt to faster
growth. Stakeholders can block change from the inside which is the downside of the European participative
management model. European concern that technology must benefit society slows the application of technological
changes, as evidenced by laws and rules for protecting society. However this social requirement has its advantages

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and some experts underline that Europe is more advanced than other parts of the world when it comes to genetic
engineering, data protection and social safety nets.
European countries take a more a humanistic approach. A humanistic approach focuses on the needs of employees and
has a concentration on the relationship between managers and employees. In parts of Europe, they focus on making
sure managers have a fair balance between work and their private lives.

For the Eastern European countries a leader would be independent while maintaining strong interest in protecting
their position as a leader.

Culture clusters and desired leadership behaviours:

 autonomous leadership
 self-protective leadership
 charismatic/value-based leadership
 team-oriented leadership
 humane-oriented leadership
 participative leadership (Northouse, 2007, p.315)
Values
The European Union is founded on the following values:

Human dignity
Human dignity is inviolable. It must be respected, protected and constitutes the real basis of fundamental rights.

Freedom
Freedom of movement gives citizens the right to move and reside freely within the Union. Individual freedoms such
as respect for private life, freedom of thought, religion, assembly, expression and information are protected by the EU
Charter of Fundamental Rights.

Democracy
The functioning of the EU is founded on representative democracy. A European citizen automatically enjoys political
rights. Every adult EU citizen has the right to stand as a candidate and to vote in elections to the European Parliament.
EU citizens have the right to stand as a candidate and to vote in their country of residence, or in their country of
origin.
Equality
Equality is about equal rights for all citizens before the law. The principle of equality between women and men
underpins all European policies and is the basis for European integration. It applies in all areas. The principle of equal
pay for equal work became part of the Treaty of Rome in 1957.

Rule of law
The EU is based on the rule of law. Everything the EU does is founded on treaties, voluntarily and democratically
agreed by its EU countries. Law and justice are upheld by an independent judiciary. The EU countries gave final
jurisdiction to the European Court of Justice - its judgments have to be respected by all.

Human rights
Human rights are protected by the EU Charter of Fundamental Rights. These cover the right to be free from
discrimination on the basis of sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation, the
right to the protection of your personal data, and the right to get access to justice.

What is Eurocentric management?

Eurocentric. The Western or Eurocentric style of leadership places emphasis on the individualist ideology, whereas
the African or afrocentric style is collectivist in nature, underpinned by humanism - ubuntu.

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North America vs. Europe?
More than ever before in history, we live in an age where companies are just as critically rated as their employees. But
there is a reason many of these types of services are based in the United States. Simply put, culture and management
matter a great deal to Americans on the search for a job, whereas their European counterparts have slightly different
interests in mind.
One approach to determining the values of employees in various locations is to look into the terms they use to search
for employment. In the United States, an overwhelming majority of queries in search engines in the HR and human
capital management (HCM) landscapes focus on culture and what it’s like to work at a specific organization. The most
searched terms include “management” (both learning and talent), “talent” and “culture”. On the other hand,
European searchers—notably from Germany, the UK and France—focus on specific “HR” and “LMS” companies or
programs.
Culture and Benefits
There is one compelling reason why Americans pay special attention to an organization’s culture, more so than
Europeans.
When Netflix announced a fully paid parental leave at a minimum of 12 weeks (and up to 12 months), it made a
splash in the news. For most countries in Europe, however, these benefits are mandated by the government and are
considered a given. All EU countries must offer a minimum of 14 weeks’ maternity leave (paid or unpaid). Finland
goes further, offering 45 days for new fathers.
For holidays, the EU mandates a 4 week minimum for its members, whereas the United States offers no such
obligations. In fact, the United States is the only advanced economy that does not have mandated vacation time for its
workers. So when prospective talent in the country search for company culture, benefits like paid time off come into
play.
Management Style
Even with the absence of government benefits, there’s another notable difference between America and Europe. While
searches in the United States focus on the people who work on the management team itself, Europeans tend to look
into specific HR programs.
In general terms, individual leadership is a key factor in the management of a team in the United States, whereas
European countries tend to practice a more balanced management style, focusing on the whole team rather than the
individual. The former is more prone to risk but also greater rewards, while the latter is more stable, but perhaps sees
less opportunities. This trend goes hand-in-hand with the EU policies that promote a healthier work-life balance
among its workers.
Localization
Lastly, localization matters more in Europe. Given the wide array of language needs, management must solidify
training for its employees through an LMS (learning management system) so that they can operate effectively in the
multilingual markets.
For example, a business in Switzerland by default already needs to communicate in French and German, the country’s
two biggest languages. Additionally, they will likely need to have the international language of English, and Italian,
the nation’s next biggest official language. That’s four languages just to operate in their own country. If they want to
expand elsewhere in Europe, additional training will be required.
This is in contrast to North America, where the lingua franca is overwhelmingly English. Extra efforts at
multilingualism tend to be made only when companies want to branch out into international markets. This focus on a
single language can be detrimental to the organization.
Whether your organization would benefit more from improved English skills or a greater variety of European
languages, Speexx offers language training courses tailored to the needs of your company.
Key Takeaway
The fundamental difference between Europe and North America lies in the focus of the respective regions. For
employees, benefits like paid vacation and parental leave are crucial for those in the United States. There is also a
greater focus on individual managers and how they operate within the company culture. By contrast, due to
government policies, European talent can worry less about benefits like vacation time in general (though it does vary
by country), and instead focus on effective training on the job.

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A solution that meets the needs of both markets and provides an advantage when hiring is offering language training.
In the European market, it is seen as useful professional job training. And in North America, it takes the form of an
added perk. A well-developed language training program is an effective way to attract top talent in any market.
Ethics in USA vs. Ethics in EU

 The US tends to prioritize individualism over collectivism, while European business ethics often prioritize the
common good.
 European companies are more likely to offer long-term employment contracts, whereas the US places a higher
value on at-will employment.
 In Europe, there is often a greater emphasis on stakeholder management, while the US prioritizes shareholder
value.
 American business culture values competition more than European business culture.
 The US has a higher tolerance for risk-taking in business, whereas Europe is generally more risk-averse.

Perception of Americans by Europeans

 Americans are often viewed as being more assertive and confident in their business dealings.
 American business culture is often seen as more fast-paced and result-oriented.
 Americans are generally more direct and open in their communication.
 Europeans may view Americans as being more informal and casual in their business interactions.
 Americans are often perceived as being more entrepreneurial and innovative.

Asian vs. Western leadership

1. Flat vs. Hierarchical

Western organisations generally have flatter structures, which come with a less prescriptive mode of leadership.
Leaders are more of the mindset where they tell employees the end goal, and trust them to find the right way to get
there. Asian styles might often be more directive, which less license for employees to forge their own paths. Both
styles have obvious benefits and failings, of course.

2. Challenging vs. Deferential

Western leaders tend to have to deal with (and are more accustomed to) more challenge, and pass more challenge on
up the line as well. In Asian corporate culture, there is arguably more respect for authority, and more deference to
leaders. The Wolf of Wall Street model of employee would seem even more shocking in an Asian setting. Although it
was shocking enough.

3. Individual vs. collective

Asian corporate culture tends to focus on collective achievement, while Western culture promotes individual
achievement. Leaders in Asian cultures tend to judge success on team achievement, whereas Western leaders will look
for superstars and weak links.

4. Freedom vs. process

Asian leaders tend to feel comfortable with great, certain processes, and hesitant to step outside the tried and true.
Western leaders, on the other hand, have a more opportunistic focus. Pitfalls to both, of course.

5. Open vs. ?

It’s unfair to call Asian leadership style ‘closed’, but it’s something. Western leaders tend to build close relationships
with their teams, whereas Asian leaders are more ‘arm’s length.

Cultural Differences - Asian Culture vs the West

SOCIAL BEHAVIOUR:
Difference 1:
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Expressing Opinions
Westerners - believe it is important to speak directly about issues in a straightforward manner.
Asians - often discuss issues indirectly especially if there is the potential of creating conflict.
Difference 2:
Group Behaviour
Westerners - are considered more individualistic, thinking more of themselves and their own needs and objectives.
They are comfortable making decisions and taking actions without the advice or support of others.
Asians - feel more comfortable as part of a group. They actively seek the counsel and direct assistance of other people
about both personal and business issues.
Difference 3:
Ordinary Emotions
Westerners - are comfortable displaying a full range of diverse emotions like joy and sadness in an expressive manner.
Their facial expressions often change frequently during conversations. They can be offensive when angry.
Asians - habitually don’t like to express emotions outwardly. Their facial expressions change less often during
conversations. They don't like appearing angry in public.
Difference 4:
Intense Emotions
Westerners - can quickly become infuriated and express strong emotions in loud and sometimes aggressive manners
that appear provocative to non-westerners. But they usually quickly calm down when the offense has been rectified
and rarely seek violent revenge afterward.
Asians - seldom exhibit extreme emotions and strive to be seem polite and controlled even in the face of severe ill-
treatment. When finally pushed over the limit, they can become destructive to others.
Difference 5:
Group Behaviour
Westerners - generally speak softly at public social functions and in restaurants to companions and waiters. Group
sizes are usually small.
Asians - can be loud and exuberant when with friends and co-workers at public locations. Noisy revelry in large
groups is common at restaurants and social occasions.
Difference 6:
Relationships
Westerners - are more at ease with casual relationships that are friendly and professional but not too deep.
Asians - desire to make strong emotional relationships with others and keep them for life.
Difference 7:
Loyalties
Westerners - claim to put the needs of their organization ahead of the needs of single individuals including
themselves.
Asians - believe relationships are personal and people are more important than impersonal entities.
PERSONAL HABITS:
Difference 1:
Diet
Westerners - replacing high-calorie western cooking for healthier Asian cuisine partly to trim down their girth.
Asians - switching unfortunately to high-calorie/fatty western foods and gaining weight.
Difference 2:
Meals
Westerners - regularly eat breakfast in a hurry and lunch in front of a computer. Dinner is the only meal that is eaten
with others in a somewhat formal manner.
Asians - expect to dine with others at a seated table 3 times per day with snack breaks at specific times.
Difference 3:
Holidays
Westerners - believe weekends and holidays are for “getting away from it all” so they can unwind and relax by
themselves or with a small number of close relatives or friends.
Asians - think noisy, crowded places like shopping centres and big social gatherings are ideal for spending weekends.
Difference 4:
Queuing
Westerners - automatically form themselves into a line when at cashier counters and help desks.
Asians - don’t think waiting in line is important if they just have a quick issue to deal with or they know someone
behind the counter.
TREATMENT OF OTHERS:
Difference 1:
Colleagues and Co-workers
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Westerners - believe it is impractical to have deep relationships with everyone they work with although they hold
them in high professional regard. They generally form close relationships with only a few people who have similar
tastes and interests.
Asians - often form close emotional bonds with people they go to school with and work with that last a lifetime.
Difference 2:
Foreigners
Westerners - generally feel that foreigners to their country should conform to their manner of doing things.
Asians - generally indulge foreigners as honoured guests to their countries and exempt them from most local social
constraints. They allow foreigners to do whatever they wish without much worry of consequences.
Difference 3:
Children
Western children - are expected to become self-reliant and make their own way in the world when they become adults.
Asian children - can expect parent to continue supporting them over their entire life.
Difference 4:
Parents
Western parents - feel it is improper to direct the lives of their adult children and only give advice when asked to do
so. They should also not expect to live off their offspring in old age.
Asian parents - feel their guidance is important to ensure the success of children throughout their entire lives. Children
who succeed in life should naturally assist their parents in old age.
Difference 5:
Elderly
Westerners - believe adults, old and young, should be responsible for their own needs and strive not to be a burden on
family members or friends.
Asians - expect to care for elderly parents and anticipate being cared for when they are old.
Difference 6:
Casual Acquaintances
Westerners - believe common courtesies such as having a chat with a complete stranger and giving way to others are
important.
Asians - are used to living in crowded environments where it is impractical to be overly concerned with people you
will only see once in your life.

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