International Management Report: A Case Study of Deutsch Bank

This report delves into the realm of international management, emphasizing the critical role of cultural aspects in organizational success. It begins with an introduction to globalization and the significance of understanding cultural nuances. The core of the report centers on Hofstede's Model of Culture, dissecting its six dimensions (Power Distance Index, Individualism vs. Collectivism, Uncertainty Avoidance Index, Masculinity vs. Femininity, Long-Term vs. Short-Term Orientation, and Indulgence vs. Restraint) and their implications for businesses, using Deutsch Bank as a case study. The report further examines the characteristics of organizational and national cultures, including decision-making, staffing, religion, and language. It then addresses the challenges and opportunities of managing a diverse workforce, particularly in the context of a globalized economy, highlighting factors such as reduced trade barriers and technological advancements. The report concludes by summarizing the impact of cultural elements on the overall growth and prosperity of international organizations, emphasizing the need for cultural sensitivity in global business operations. The provided references support the arguments and findings presented throughout the report.

INTERNATIONAL
MANAGEMENT

Table of Content
• Introduction
• Hofstede Model of Culture
• Characteristics of organization and national culture
• Challenges and opportunity of managing a diverse workforce
• Contribution of factors towards globalized economy
• Conclusion
• References

Introduction
Globalization or International business is
regarded as the activity where a trade of goods,
services, capital, technology, and knowledge
takes place within boundaries of a particular
nation and across different countries. There are
numerous factors that need to be take into
account while entering into a foreign market
and one of the significant is culture of a
particular nation that have direct impact over
organizational culture.

Hofstede Model of Culture
Hofstede cultural dimension theory was developed
by Greet Hofstede way back in 1980 to evaluate the
effects of society’s culture over the values of the
people and how it affects their overall behavior and
attitude. The model helps Deutsch Bank and other
institutions in understanding different culture across
distinct regions, dimension of culture and their
overall impact over their overseas operations. The
model constitutes of six stages which are discussed
in context of chosen company.

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Power distance Index: This aspect reveals the information with regards to the
extent to which inequality and power in handled by a society. The low index states
that people desire to have equality in power and authority, participative in
management and decentralized in decision making. For instance people in
Shanghai have low power distance index, opposing the bureaucracy at workplace.
Whereas people with high power index accept power difference, promote
bureaucracy, and seek no justification for the hierarchical order.
Deutsch Bank works closely on this aspect while operating in different nations as
these factors have a direct influence over organizational structure and determine
the hierarchy level of power and authority.

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Individualism and collectivism: IDV dimension suggest the extent or degree to
which an individual in a society are integrated towards work. Understanding of
this aspect help Deutsch Bank in creating an organizational culture and
motivating employee towards common goals. Individualism states that people
give greater importance to their personal goals, family, and relatives. Societies
in Brazil are more concentrated towards their families and show great concern
for them. Whereas people with collectivism approach are team oriented and put
emphasis on the well being of group and attaining group objectives. For
instance, people in South Africa are more cooperative and collaborative at
workplace.

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Uncertainty avoidance index: Deutsch Bank while operating in overseas market
considers capabilities of people in a society to deal with the uncertainties and
ambiguity which is inherent to each and every business. People in a society have a
low tolerance capacity to uncertainties and risk taking at high avoidance index and
opt for rigid guidelines, laws and policies, whereas people at low risk index have a
high capacity of tolerance because of free flow environment and regulations.
Considering the example of Brazil, where communities represents low tolerance
towards the unforeseen situation and protect themselves with the several laws and
policies acting as a safeguard for them. On the other hand, Shanghai communities is
bold and audacious ready to accept challenges and exploit opportunities.

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Masculinity versus Femininity: Hofstede have divided the culture on the basis of
femininity which represents few characteristics such as modesty, cooperation,
expecting quality of life and caring for weaken section. For example, People in
Brazil are based on the femininity and aims for the overall development of
vulnerable societies. On the other hand, Masculinity dominant society gives
preference for achievement, heroism, assertiveness and rewards for success. For
instance people of South Africa are male dominant society and give preference of
achievements over quality of life.

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Long term versus short term orientation: Connection of past while dealing with
the present and future challenges is divided into two groups such as Short and long
term, short term orientation focus on short term success and focus on present
rather than future. Whereas, the opposite have a long vision which is based on
persistence, perseverance and long term goals. While taking an example of Brazil,
there people live in present and make their efforts towards attaining short term
goals leading to a overall development. Whereas Chinese community are well
known for their determination and persistence and desire to achieve long term
goals though being future oriented.
.

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Indulgence versus Restraint: This dimension deals with capacity of society
to deal with whim and desires and how these are fulfilled. Indulgence society
allows fulfilment of individual’s emotions and desires. Few characteristics are
freedom of speech, optimistic, and enjoying life with fun. Restrain society are
regulated by rigid social norms which influence their behavior and attitude.
Societies bases on restrain characteristics are more restricted to the changes
and are less adaptable to the uncertainties. Considering the example of South
Africa where attitude of a people are govern and regulated by the norms and
belief of an society whereas, Brazilian communities live to fulfill their desires
and wants are more social as compared to African people.

Characteristics of organization and national
culture
Decision making: Centralized and decentralized decision making system define
how and at what level decisions are taken. In context of Deutsch Bank, decisions
are made via decentralization where employees at lower staff is equally
participated and valued. This type of work culture allow workforce at lower level
to take part in important decision making process and inculcate a feeling of unity
and integrity.
Staffing: Different methods are used in different culture while hiring a staff such
as technical and affiliation criteria. While operating in a overseas market
Deutsche Bank analyze the criteria of selection and hiring which help in getting
right force with right skills.

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Religion: One of the key characteristics for overseas operation in Religion which
shape the working attitude of an individual. For instance, some people consider
work as god’s mercy and devote their dedicated time to work. On other hand,
some work for saving earning money and other pleasures. For instance, South
African people are known for their hard working and dedication, on the other
hand, Brazilians have a casual attitude towards work and spend most of the time
in recreational activities.
Language: Language is another significant aspect which has to be keeping in
mind while operating in overseas market. Deutsch Bank with its operation in 58
countries, understand the cultural aspects of the employees and communicate with
them in order to create a healthy and friendly working environment.
.

Challenges and opportunity of managing a
diverse workforce
Deutsch Bank had faced numerous challenges while operating in overseas market
with the matter of fact that the company has its origin from Germany.
Difference in language and communication gap: Being a German based company,
Deutsch bank have dealt with the language issue in majorly in Shanghai, South
Africa and Brazil who have their own dialect and language. Communication
becomes difficult with the workforce of these nations which contributed towards
mismanagement and poor performance. For instance, language in Shanghai is
completely different as compared to Brazilian and there are different version of
dialect in south African regions.

Contribution of factors towards globalized
economy
Reduced entry and trade barriers: Countries are inviting foreign investment
which leads to the overall development of a nation and an economy as whole.
Liberal trade policies have enabled Deutsch Bank to operate in more than 50
countries. Apart from this availability of resources, financial policies of
governments and well developed infrastructure are major factors of globalization;
Technological Advancements: Innovation in technology has improved the
communication network and ease in commuting from one country to another.
Companies can connect with their overseas customer while being at their host
countries this have permitted them to have a large market share. Considering
example of Deutsch Bank, company is offering a premium facility to have access
of customer account from nation to another.

Conclusion
Therefore, it has been concluded that cultural aspects play a significant role in
overall prosperity and growth of an organization. There are numerous factors that
has to be keep in mind while operating in a different region such as language,
culture, beliefs, tradition, custom which shape the behavior and attitude of an
individual at workplace.

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