The effect of culture on managers decision making
2009:023
MASTER 'S THESIS
The effects of Culture on managers decision making
- a case study of Mexico and Germany
Christian Becker
Sandra Palmér
Luleå University of Technology
Master Thesis, Continuation Courses
Marketing and e-commerce
Department of Business Administration and Social Sciences
Division of Industrial marketing and e-commerce
2009:023 - ISSN: 1653-0187 - ISRN: LTU-PB-EX--09/023--SE
Abstract
The purpose of this study was to provide a better understanding on how decision making in Germany and Mexico could be described and how culture affect this decision making. The reason for choosing these to countries was that according to previous found results by the renowned Geert Hofstede these two countries were supposed to be quite the opposite to one another. Therefore the study also compared the similarities and the differences between the cases in the countries. Based on the research questions stated a literature review was conducted upon which a frame of reference was built. Qualitative multiple case studies was used to be able to cross reference the results. To gain a deeper understanding of issues directly related to the research questions interviews was the main source of data collection. The previous mentioned frame of reference then served as a foundation for the interview guide. The interviews in
Mexico were conducted at FEMSA and in Germany at Siemens and a Steel Company.
The findings from the case studies regarding decision making indicates the following: Both Mexico and
Germany uses a rational decision making process, to some extent, when making decisions. When a decision follows the rational decision making model it does not exclude non-rational decision making.
Despite the group being involved in many decisions both in Mexico and Germany someone at top level still make the final decision. Neither country likes to take risky decisions, which could be connected to the fact that the cases in particular are
MASTER 'S THESIS
The effects of Culture on managers decision making
- a case study of Mexico and Germany
Christian Becker
Sandra Palmér
Luleå University of Technology
Master Thesis, Continuation Courses
Marketing and e-commerce
Department of Business Administration and Social Sciences
Division of Industrial marketing and e-commerce
2009:023 - ISSN: 1653-0187 - ISRN: LTU-PB-EX--09/023--SE
Abstract
The purpose of this study was to provide a better understanding on how decision making in Germany and Mexico could be described and how culture affect this decision making. The reason for choosing these to countries was that according to previous found results by the renowned Geert Hofstede these two countries were supposed to be quite the opposite to one another. Therefore the study also compared the similarities and the differences between the cases in the countries. Based on the research questions stated a literature review was conducted upon which a frame of reference was built. Qualitative multiple case studies was used to be able to cross reference the results. To gain a deeper understanding of issues directly related to the research questions interviews was the main source of data collection. The previous mentioned frame of reference then served as a foundation for the interview guide. The interviews in
Mexico were conducted at FEMSA and in Germany at Siemens and a Steel Company.
The findings from the case studies regarding decision making indicates the following: Both Mexico and
Germany uses a rational decision making process, to some extent, when making decisions. When a decision follows the rational decision making model it does not exclude non-rational decision making.
Despite the group being involved in many decisions both in Mexico and Germany someone at top level still make the final decision. Neither country likes to take risky decisions, which could be connected to the fact that the cases in particular are
References: Ardichvili, A. & Kuchike, P.K. (2002) Leaderships and cultural calues among managers and subordinates: a comparatice study of four countries of the former Soviet Union, Germany, and the Denscombe, M. (2000) Forskningshandboken – för småskaliga forskningsprojekt inom samhällsvetenskaperna Studentlitteratur Deresky, H. (2003). International management managing across borders and cultures Elbanna, S Harrison, F.E. (1996) A process perspective on strategic decision making Management Decsision Vol 34 Isse 1 pp Harrison J.K. & Hubbard, R. (1998) Antecedents to Organizational Commitment Among Mexican Employees of a U.S Hofstede, H. & Hofstede, G-J. (2005) Cultures and organizations Lund : Studentlitteratur Hofstede, G Mangament Science Vol 44 issue 8 pp. 1148-1166 Pelled, Lisa Hope; Hill, Kenneth D. Salter, S.B., Lewis P.A., Valdes Juáres, L.P. (2004) Aqui No Se Habla Agencia. An examination of the Impact of Adverse Selection and Framin in Decision-Making: a US/Mexico Comparison outcomes, electronic resource, Westport, Conn. : Quorum, 1999. Saunders, M., Lewis, P. & Thornhill, A. (2007) Research Methods for Business Students, 4th Edition Prentice Hall Scheider, S.C. & Barsoux, J-L. (1997). Managing Across Cultures Schneider, J., Litrell R.F Wild, J.J., Wild, K.L. & Han (2006). International Business, The challenges of globalization http://ne.se/jsp/search/article.jsp?