Polish-US Joint Venture: Cultures Comparison

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Table of Contents

Introduction
Cultural Differences, Risks, and difficulties in Poland Compared to US
Hofstede and the 7d Dimension Models
Polish Workers and the US Management Styles
Recommendations to the US Expatriate Managers
Polish Cultural differences as an advantage
Conclusion
References

Introduction

Business internationalization has become an integral part of international trade that also spurs the globalization process (Rozkwitalska, 2010). Although trade and international business have effectively enabled the development of partnerships among countries to stabilize economically and strengthen their trade relations, organizational and national cultures existing between two nations influence trade activities.

Despite some recorded success, national and organizational differences in culture greatly influence joint ventures (Rozkwitalska, 2010). The United States and Poland is a perfect example of countries that have been trading partners through joint venture systems. In this viewpoint, this essay seeks to analyze the existing organizational and national cultures in the Polish-US joint venture.

Cultural Differences, Risks, and difficulties in Poland Compared to US

Business analysts perceive Poland as a nation that has survived through an old communist system with communist ideologies that have frequently discouraged quality performance, risk-taking, and completions among organizations (Rozkwitalska, 2010). Most of the Polish organizations have a culture of institutional ethnocentrism to maintain their communist ideologies, have a tendency of discouraging human resource practices, strategic orientation focused to the central offices, and acquisitive culture of maintaining old traditions in succeeding offices (Rozkwitalska, 2010).

Polish organizations have insufficient knowledge of selecting and utilizing of expatriates, and insufficient formal communication techniques. Nationally, individuals believe in communist ideologies of social collectivism rather than individualism, uncertainty avoidance, power distance or hierarchical order and gender egalitarianism.

Hofstede and the 7d Dimension Models

Hofstede discovered four major cultural dimensions associated with cultural differences in power distance, individualism and collectivism, uncertainty avoidance, and the masculinity and femininity aspects. Power dimension refers to the degree to which few powerful individuals influence institutional members and organizations to accept and practice hierarchical order (Hofstede, 2011).

Individualism is the practice where certain individuals uphold the perspective of personal autonomy, and collectivism is the behavior of individuals acting depending on communal social principles that bound them. Investors with Individualist behaviors protect their autonomous stand and value their personal beliefs, personal independence, and personal pleasure.

Individualism ideology is common among American investors and businesspersons, while collectivism is practical in Poland investors and their organizations (Hofstede, 2011). Uncertainty avoidance is the notion of living in a cultural fear of falling into threats of risks and uncertainties and individuals tend to avoid taking risky engagements (Hofstede, 2011). While American organizations and individuals believe in deviant actions and beliefs, Polish businesspersons rely on developing and adopting formal laws, stringent codes of behaviors to protect them from incurring uncertainties. Masculinity and femininity dimension is the notion that cultural differences involve distribution of social gender roles.

Similar perceptions exist in the 7d cultural dimensions model of Trompenaar, which include universalism verses particularism, individualism verses collectivism, neutral verses affective, specific verses diffuse, achievement verses ascription, internal verses external control and the past verses present (Hofstede, 2011). Whereas the Polish believe in universality, the Americans dwell in particularity. While American entrepreneurs believe in specificity, their Polish counterparts believe in social diffusion and concern for each other (Hofstede, 2011).

The Americans are effective, while the Polish are neutral and fear expressing their emotions. The Americans normally target achievement and success, while the Polish ascribe to life conditions (Hofstede, 2011). While the Americans believe on internal control, the Polish dwell on environmental (external) control.

Polish Workers and the US Management Styles

Polish employees view the notion of democracy that Americans managers practice as a risky business engagement since the hierarchical order of power is essential in organizational order and sanity. According to Rozkwitalska (2012), Polish workers believe that American managers are risking their businesses since superiority and hierarchical positions instill organizational order, make the decision-making process easier, and organizational planning.

Polish workers have the collectivism perception that makes them believe that social cohesion and populist ideologies are important within organizations (Rozkwitalska, 2012). Since American expatriates act contrary to the national and organizational cultures of Poland, polish employees view American expatriates as inexperienced managers and regularly distrust them.

Recommendations to the US Expatriate Managers

To have a significant breakthrough in Poland, American expatriates must adapt to the communication behavior of Polish people before considering imparting corporate changes (Rozkwitalska, 2012). Democracy is practicable even in organizations with hierarchical order and for the American expatriates to maneuver in Poland they must practice power and hierarchical organizational arrangement while they instill democracy in their management (Rozkwitalska, 2010). Just as the Polish organizations fear and avoid uncertainty, American managers must also understand that risky businesses are harmful to corporate growth.

Polish Cultural differences as an advantage

A great ideology, which may effectively improve the chances of survival for organizations managed by both the American managers and Polish managers, is the perception of uncertainty avoidance, which Polish individuals, organizations, and societies are keenly maintaining (Rozkwitalska, 2010). For firms to remain competent and survive the business world in the near future, risk management and uncertainty avoidance are imperative. As part of risk avoidance, according to Rozkwitalska (2010), Polish managers tend to offer high employee retention through the lifetime employment strategies. It is very important for American firms to understand that retention of key talents of an organization makes companies stable.

Conclusion

International trade and business internationalization are increasingly becoming an effective approach for the multinational or transnational firms. Nonetheless, managers must understand that organizational, communal, and national cultural differences between two nations are normally influential in business management and corporate practices. Adopting, adapting, and exchanging of important cultural beliefs about corporate governance are important facets for international trade partners. American entrepreneurs can emulate some cultural aspects of the Polish such as uncertainty avoidance that also fosters effective employee retention.

References

Hofstede, G. (2011). Dimensionalizing Cultures: The Hofstede Model in Context. Online Readings in Psychology and Culture, 2(1), 1-26.

Rozkwitalska, M. (2010). Barriers of Cross-cultural Interactions According to the Research Findings. Journal of Intercultural Management, 2(2), 37–52.

Rozkwitalska, M. (2012). Accepted and strong organizational culture in multinational corporations. Journal of Intercultural Management, 4(3), 5-14.

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