Management and Lithuanian Managers

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VILNIUS UNIVERSITY FACULTY OF ECONOMICS

DOMANTAS TRACEVIČIUS, ELENA ŽILYTĖ, GEDIMINAS RICKEVIČIUS, URTĖ RUPŠYTĖ Cross-cultural comparative management

Developing Cross-Cultural Effectiveness Lithuania and China Comparison

Prof. Danutė Diskienė

Vilnius, 2012

1. Lithuania‘s cultural profile
Parameter Time focus Time orientation Space Power Structure Competition Communication Action Value=1 monochronic past private equality individualism co-operative low-context being Value=5 polychronic future public hierarchy collectivism competitive high-context doing Lithuania 3 4 3 3 2 4 2 4

2. Comparison between China and Lithuania
Parameter Time focus Time orientation Space Power Structure Competition Communication Action Value=1 monochronic past private equality individualism co-operative low-context being Value=5 polychronic future public hierarchy collectivism competitive high-context doing Lithuania 3 4 3 3 2 4 2 4 China 4 2 2 5 4 2 4 2

As it is shown in the table and graph above, cultural profiles of China and Lithuania are sufficiently different. Chinese managers are accustomed to dealing with many different things at the same time, they are prone to interruptions, tardiness and changing plans. Lithuania, on the other hand, is not so polychronic country. However, Lithuanian managers can work on several fronts simultaneously. What is more, Chinese are past-oriented, while Lithuania are focused towards future. Public space in Lithuania is larger than in China. It is also important to keep in mind that China is highly hierarchical country but as is Lithuania in some ways, so showing respect and deference to people of authority is recommended in both countries. One more difference between these two cultures is structure. China is very collective country that places community before individual. Success is achieved in groups, decisions are referred to committees and groups jointly assume responsibilities while Lithuania is an individualistic country. Emphasis in Lithuania is on personal responsibility and decision-making. When doing business between these two countries it is essential to take all those differences into account. Knowledge of the impact of cultural differences is one of the keys to international business success. Improving levels of cultural awareness can help managers from different countries build international competencies and become more successful in doing business between different countries.

3. Cultural differences
Planning 

Differences in cultural values regarding management tasks: Chinese managers adopt a longer term horizon in business planning than Lithuanians.

The business principles, for example, attaching importance to long lasting relationships, not gains, long-term orientation and the doctrine of harmony between people and nature make Chinese managers think longer-term. Thus, they are often willing to plow earning into reinvestment and accept lower profits to maintain continuous production and competitiveness for the purpose of long-term profit and survival. Chinese managers adopt a long-term orientation in business planning and they tend to concentrate more on long term goals and objectives than dayto-day survival. What is more, Chinese companies are highly sensitive to changing tendencies and environments.  Management strategies: Lithuanian companies looking to do business with China also need to show a long-term approach that will prove that they're in the country to stay. It's very important to realize that success in China takes time, it requires patience and it costs a lot of resources. Managers have got to be very open-minded about anticipating that China is going to be in the coming decades. China is growing in the field of consumer goods and it will grow fast so managers have got to find a way to match the future impact of China with the current characteristics of China.

Organizing 

Differences in cultural value regarding management tasks Chinese working...
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