Analysis of Cross-Cultural Management Effectiveness at Konigsbrau-TAK

This report provides a comprehensive analysis of cross-cultural management effectiveness, using Konigsbrau-TAK as a case study. It delves into the impact of globalization, organizational structures, and cultural dimensions on business operations, particularly focusing on the firm's interactions within the Ukrainian market. The report examines the utilization of labor resources, motivational factors influencing employee performance, and various approaches to assessing the effectiveness of cross-cultural management. It explores leadership styles, organizational culture, and the application of frameworks like Kluckhohns and Strodtbecks' value orientations and Hofstede's dimensions. The report also discusses performance measures, cost indicators, and the importance of aligning management systems with cultural contexts to achieve organizational goals. The conclusion provides a synthesis of findings and recommendations for enhancing cross-cultural management practices.

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Management

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Introduction
The globalization of the economy is an important factor in the changes expected in the
cross cultural management of the enterprise. Its main element will be people able to solve
problems of combining the interests of their own country and other states, partnership
between business and government agencies of different countries, competition and
cooperation on a global scale, ethics and social responsibility of business, integration of
cultures of peoples, strengthening of the role of man as the most valuable of all the resources
that society has (Berry, John W). A major role is played also by changes in organizational
forms and the nature of the activity of firms, the increase in the importance of broadcasting
corporations in world economic relations.
Cross cultural dimensions in an organization
Konigsbrau-TAK has a strategy that focuses on relations with beer distributers in
Ukraine’s economy. The firm’s commercial strategy is the emphasis of this case. Thus,
understanding the values of Ukrainian culture will best identify the reasoning behind the
firm’s approach to its operating environment. Overall assessment of the effectiveness of
personnel cross cultural management on the Completeness of the use of labor resources can
be estimated by the number of days and hours worked by one employee for the analyzed
period of time, as well as by the degree of utilization of the working time fund. Such an
analysis is carried out for each category of employees, for each production unit and for the
enterprise as a whole (Bird, Allan, and Mark E. Mendenhall).
The analysis of the use of the working time fund for 2011, 2013 and 2013 at
Konigsbrau-TAK shows how working time is used in the year. Based on the cross cultural
management strategy, one can see that in 2011 and 2012 the fact did not exceed the plan,
which is very good for the enterprise. But in 2013 the fact exceeded the plan, due to
maternity leave, which caused small losses to the enterprise, but despite this, the working
time at the enterprise was used rationally and without large deviations.To select motivational
actions, it is necessary to assess the motivational environment that creates the necessary
incentives for effective work and achievement of goals.
The results of the questionnaire on the diagnosis of the motivational environment and
the definition of the motivational profile determined the degree of interest of the employees
in increasing the efficiency of the enterprise's activity .It turned out that wages are one of the
main motives for the work of drivers and the chief accountant (80%), and for the director and
founder the most significant motive is the expansion of the company due to the good work of
drivers and the chief accountant (92%).
The second significant motivational sign for Konigsbrau-TAK employees is the need
for safe working conditions and social comfort in the team. The need for good attitude on the
part of colleagues is observed in 35%, and the need for respect from the leader is revealed in
52%. Evaluation of cross cultural management effectiveness is of primary importance for
many aspects of cross cultural management, since it determines the correctness, validity and
effectiveness of the manager's work. According to keller, The effectiveness of cross cultural
management is a relative characteristic of the performance of a particular control system,
reflected in various indicators both of the cross cultural management object and the cross
cultural management activity proper (the cross cultural management entity). And these
indicators have both quantitative and qualitative characteristics (French, Raymond). The
effectiveness of the cross cultural management system should be expressed through the
performance indicators of the managed system, although it may also have its own particular
characteristics.

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Any changes in the organization carried out by the cross cultural management apparatus must
meet certain of its goals, the achievement of which predetermines whether or not the effective
work of the organization will or not.
According to Keller, effectiveness is a consequence of the fact that "the right things
are being done," and efficiency is a consequence of the fact that "these things are correctly
created". So, " Konigsbrau-TAK " has defined a way of preparation of beer with their low
cost price and with steadily high quality and it has reached success. The level of cross-
cultural management effectiveness is largely determined by the level of rational organization
of the managed system and cross cultural management process. Efficiency manifests itself in
various indicators of both the cross cultural management object and the cross cultural
management activity proper.
Cross cultural management and leadership approaches
The main concepts of cross cultural management effectiveness are: the efficiency of
the work of workers in the administrative apparatus; the effectiveness of the cross cultural
management process; the effectiveness of the cross cultural management system, the
effectiveness of the cross cultural management mechanism. The general efficiency formula:
the ratio of the useful result to the volume of use of resources, or the ratio of quality (as a set
of useful consumer properties) to costs.
To determine the effectiveness of cross cultural management, it is necessary, first of all, to
really evaluate its effectiveness. First you need to find out what to consider a useful result of
cross cultural management activity, and then - how to measure it.
Of fundamental importance for assessing the effectiveness of the cross cultural
management system is the choice of the basis for comparison or the definition of the level of
efficiency that is adopted for the normative. Here you can specify several approaches that can
be differentiated in relation to specific cases.
Approaches to assessing effectiveness
The essence of the benchmark approach is reduced to comparison with the indicators
characterizing the effectiveness of the organizational structure as a reference version of the
cross cultural management system. The characteristics of this option are accepted as
normative. The Ukrainian organizational culture as a reference variant, both the projected
system and the actually functioning object can be adopted (Johnson, Jean L., and John B.
Cullen). Then in the first case the comparative efficiency of the analyzed system is
determined on the basis of a comparison of the normative and actual (design) parameters of
the system, using mainly quantitative comparison methods. In the second case, the
comparison is made with the performance indicators and the characteristics of the functioning
control system.
Expert evaluation of the organizational and technical level can be conducted:
- For a comprehensive assessment of the cross cultural management system;

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- Evaluation of individual subsystems;
- Evaluation of design and planning decisions.
The expert evaluation on organizational culture of IKEA is based on the use of a quantitative
and qualitative approach, which makes it possible to evaluate the effectiveness of cross
cultural management for a large number of factors.
Performance measures
- Volume (increase in volume) of output;
- profit (increase in profit);
- Prime cost (cost reduction);
- The volume of capital investments
- The quality of products, the timing of the introduction of new technology.
This, the so-called normative and cost indicators, which allow us to estimate both the
number qualitatively, and qualitatively the cross cultural management process. The following
characteristics can be assigned to the regulatory characteristics of the control apparatus: -
productivity, - economy, - adaptability, - flexibility, - efficiency, - reliability. The productivity
of the control apparatus can be defined as the quantity of the final product produced by the
organization or the amount produced in the process of cross cultural management of
information per one employee employed in the cross cultural management apparatus.
The cost-effectiveness of the cross cultural management apparatus is understood to be
relative costs s on its functioning, commensurate with the volumes or performance results.
The effectiveness of making cross cultural management decisions characterizes the timeliness
of identifying managerial problems and the speed with which they are solved, which ensures
maximum achievement of the set goals. The stability of the established production and
supporting processes (Thomas, David C., and Mark F. Peterson). The reliability of the
apparatus and cross cultural management as a whole is characterized by its trouble-free
operation. If we consider the quality of the definition of goals and the statement of problems
sufficient, then the reliability of the control apparatus can be relatively fully characterized by
its performance, i.e. ability to provide planned tasks within the established deadlines and
allocated resources.
Kluckhohns and Strodtbecks dimensions of value orientation (sociology framework)
According to Kluckhohns and Strodtbecks dimensions of value orientation to evaluate
the effectiveness of cross cultural management operating in different culture, it is important
to determine the conformity of the cross cultural management system and its organizational
structure to the cross cultural management entity. This conformity is expressed by the
indicators reflecting its dynamics: - the balance of the complex of functions and cross cultural
management objectives, - the content completeness and integrity of the cross cultural
management processes, - the correspondence of the number and composition of employees to
the volume and complexity of the work, - the completeness of providing the production and

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technological processes with the required information, cross cultural management of
technological facilities, taking into account their nomenclature, capacities and speed, -
ensuring the structural-hierarchical correspondence of the indicators to the system the ability
to adequately reflect the dynamism of controlled processes, the balance and consistency of
indicators. It should be understood that the formation and implementation of a useful cross
cultural management effect is not a one-off phenomenon, but as a lengthy process that
encompasses different levels and links in the managerial process.
Their quality in many respects predetermines the effectiveness of cross cultural
management in general and should be the subject of special analysis, evaluation and
stimulation. Comparison of useful results of cross cultural management activities with the
corresponding costs or used resources in a specific cross cultural management link, as a rule,
is a common basis for determining the criteria for cross cultural management effectiveness
(Karin Andreassi, Jeanine, et al). However, such a base, which makes it possible to relatively
well solve the problem of efficiency in the sphere of economy and production, is completely
unacceptable in the sphere of social and, consequently, in the spheres of state and municipal
cross cultural management.
Leadership Grid (Behavioral Theories)- Hofstedes dimension of cultural management
In the methodology of determining the effectiveness of cross cultural management, indicators
and criteria for cross cultural management effectiveness differ. Performance indicators
quantify the effect obtained, and efficiency criteria express qualitative requirements for
choosing the optimal option for a managed object.
A reliable assessment of the effectiveness of cross cultural management should be
comprehensive, which is ensured by the use of a system of cross cultural management
effectiveness indicators, which includes:
- Labor efficiency of employees of the cross cultural management apparatus;
- The effectiveness of the cross cultural management process (functions, communications,
adoption and implementation of decisions);
- The effectiveness of the cross cultural management system (hierarchy of cross cultural
management);
- The effectiveness of the cross cultural management mechanism (structural-functional,
financial, marketing, social, innovation).
The performance criteria of the organization are:
• Effectiveness - the degree of achievement of the organization's goals;
• economy - the ratio of the required and actual consumption of resources;
• quality - conformity of characteristics of products (services); standards and requirements of
consumers;

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• profitability - the ratio between income and total costs;
• productivity - the ratio of the volume of products (services) for a certain period in natural,
cost, and other indicators and the costs of resources corresponding to this volume of output
(labor, material, financial, etc.);
• quality of working life - working conditions of employees;
• Innovative activity - the introduction of innovations in various functional areas of the
organization.
International Perspective on the Path-Goal theory
- social efficiency - is characterized by qualitative indicators (improvement of
professional skill, improvement of working and living conditions, formation of organizational
culture, satisfying In general, an assessment of the effectiveness of the cross cultural
management system is to compare the results of cross cultural management activities (the
organization as a whole) and the costs (resources) associated with the functioning of the cross
cultural management system taking into account the time factor. There are several approaches
to calculating economic indicators that allow to directly or indirectly assess the effectiveness
of cross cultural management. These are the following indicators.
Efficiency of cross cultural management –
With the transition to a market economy, there are fundamental changes in the system
of enterprise cross cultural management. They are primarily caused by a decrease in the share
and role of the state form of ownership with its inherent managerial ties, mainly "vertically"
and administrative-command methods of cross cultural management. Accordingly, the role of
commercial structures increases, the interrelations between which are built primarily
"horizontally", on contractual bases. A consequence of such changes are new approaches to
the organization and quality of enterprise cross cultural management, as well as to cross
cultural management personnel. When calculating the partial turnover indicators that
characterize the intensity of the use of current assets at certain stages of the circuit, the
turnover can be taken as turnover instead of the proceeds from sales: by production reserves -
their consumption for production, at production costs - commodity output in the valuation at
cost; on finished products - shipment of products at cost; for goods shipped - sale at cost.
Environment of the business with Hofsteds dimensions
Cross cultural management functions are formed on the basis of connecting managed
objects with the stages of cross cultural management processes, for example: analysis of the
state of production, resource planning, organization and promotion of commercial activities,
information support of scientific and technological development, monitoring and regulation
of economic development, evaluation of social development results (Moore, Fiona).

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When determining the content of each function, work and operations are distinguished
in it, the description of which serves as the basis for the organization both for its
implementation (in general) and for the organization of the work of personnel performing this
function. In the conditions of a market economy, a combination of groups of cross cultural
management functions characterizes the content and scope of cross cultural management
activity in an enterprise (Triandis, Harry C). Thus, the object of cross cultural management
are all aspects of the enterprise - organizational, technical, economic, social.
Currently, it is urgent to consider issues of improving the cross cultural management
of the enterprise and the methodological approaches to its evaluation. The way to increase the
competitiveness of products lies through the improvement of the work of the enterprise, in
this connection it is necessary to consider the main ways to improve the work of the
enterprise, based on the use of world experience.
Important importance in the cross cultural management mechanism is the
effectiveness of the existing organizational cross cultural management structure. When
analyzing and designing organizations, one should consider the relationships of their
elements, the structure, and also the mechanism of interaction of these elements within the
framework of certain goals and the given structure of the organization. Organizational
structure and organizational mechanism in all the diversity of their manifestations form
organizational forms of cross cultural management.
Leadership theories
Finally, effective cross cultural management in leadership of a modern enterprise is
impossible without using the opportunities that modern information technologies and
integrated cross cultural management systems of the main processes of the modern enterprise
today provide for the head.
Thomas Carlyle and the Trait Theory of Leadership
According to Carlyle, the history is shaped by extraordinary leaders. Ability to lead is
simply in born and is not something that could be developed. The implications of trait
theories are that;
 Traits produce certain behaviors in leaders
 The patterns are consistent across different situations
 Leadership is inborn
Leadership Grid (Behavioral Theories)
The managerial grid model is a leadership style that is based on the concerns for people and
their production. The thesis highlights important and important for each head of the
Ukrainian enterprise problems. Among the issues discussed are, above all, economic policy in
the cross cultural management of the enterprise, which allows not only to keep the enterprise
"afloat", but also to ensure its effective functioning at the present stage of economic
development in Ukraine.
Vroom-Yetton Theory (Contingency theory)

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The Vroom- Yetton contingency model is an organizational psychological model
developed by Victor Vroom and is a situational leadership theory. It argues that the best
leadership style is contingent to the situation at hand. The managers of the company IKEA
would like to see the main motivation for their subordinates - satisfaction from a job well
done (62%), the need for security conditions and the need for awareness of the social
importance of workers' work (48% received both motives).
International Perspective on the Path-Goal theory (Contingency)
The analysis shows how the thinking of cross cultural management and staff differs.
The choice of motivational activities is usually determined by the founder and director (Stahl,
Günter K., et al.). In theory, there are methods for assessing the effectiveness of personnel
cross cultural management, such as:
- labor productivity;
- Labor intensity;
- Profitability of the personnel.
The calculation of the personnel cross cultural management effectiveness indicators at
Konigsbrau-TAK is presented in
- Calculation of indicators of the assessment of the effectiveness of personnel cross cultural
management at the company Konigsbrau-TAK
For keller, there is another group of indicators for assessing the effectiveness of
personnel cross cultural management at Konigsbrau-TAK, which includes a set of
performance indicators of staff, which include such indicators as staff turnover, labor
discipline level and others.
Some types of enterprise assets have different turnover rates. To identify the reasons
for the change in the general turnover of current assets, one should analyze the dynamics of
indicators of turnover of circulating assets through the stages of the circuit (Steers, Richard
M., and Carlos J. Sánchez‐Runde). This will allow keller to determine at which stages the
acceleration or deceleration of the movement of labor occurred, that is, at what speed each
element of working capital passes from one functional form to another.
Work Cited
Berry, John W. "Global psychology: Implications for cross-cultural research and
management." Cross Cultural Management 22.3 (2015): 342-355.

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Bird, Allan, and Mark E. Mendenhall. "From cross-cultural management to global leadership:
Evolution and adaptation." Journal of World Business 51.1 (2016): 115-126.
French, Raymond. Cross-cultural management in work organisations. Kogan Page
Publishers, 2015.
Johnson, Jean L., and John B. Cullen. "Trust in cross‐cultural relationships." The Blackwell
Handbook of Cross
‐Cultural Management (2017): 335-360.
Karin Andreassi, Jeanine, et al. "Cultural impact of human resource practices on job
satisfaction: A global study across 48 countries." Cross cultural management 21.1 (2014): 55-
77.
Moore, Fiona. "Towards a complex view of culture: cross-cultural management,‘native
categories’, and their impact on concepts of management and organisation." The Routledge
Companion to Cross-Cultural Management. Routledge, 2015. 69-77.
Stahl, Günter K., et al. "The upside of cultural differences: Towards a more balanced
treatment of culture in cross-cultural management research." Cross Cultural & Strategic
Management 24.1 (2017): 2-12.
Steers, Richard M., and Carlos J. Sánchez‐Runde. "Culture, motivation, and work
behavior." The Blackwell Handbook of Cross
‐Cultural Management (2017): 190-216.
Thomas, David C., and Mark F. Peterson. Cross-cultural management: Essential concepts.
Sage Publications, 2017.
Triandis, Harry C. "Generic individualism and collectivism." The Blackwell handbook of
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‐cultural management(2017): 16-45.