in the European Union

This country case study explores the dominant cultural value orientations in the countries of the European Union.

“I come from the western seaboard of Europe, from the edge of our European world, and I have a deep pride about where I come from. Although today I accept and acknowledge that I was not elected for my Irishness, I thank you nonetheless that I can also celebrate that fact and that nationality. You have found at the heart of European democracy the capacity to take someone from one of the smallest groups and smallest states and say that, in contemporary European democracy, there is a place to include all, including those on the geographic or other margins…. We are building something by way of common values and future economic and social prosperity and we are doing work of historic dimensions.”

In this extract from his election speech, the Irishman Pat Cox announces his new presidency of the European Parliament by recalling the paradox of European unity: Europe is moving toward increased economic and political integration, yet never have individual European cultural identities wished to assert themselves more over one dominant language or cultural group.

European integration is strongest on the economic front, as was demonstrated on January 1^st, 2002, when over 300 million Europeans definitively abandoned national currencies to adopt a common currency, the Euro. Europe's previously fragmented bond and stock markets are becoming more integrated and liquid much faster than expected. On the political front, the Union’s legislative, executive and judiciary bodies are slowly but surely asserting their respective roles in parallel to national governments and institutions. The European Union is comprised of 15 member countries. As a brief glance at the list of members indicates, each country has its own language, or dialect, and national culture, and most were at bitter war with one another as little as 57 years ago.

The European Union 15 Member States:

Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, United Kingdom

Knocking at the door to this prosperous family is a long line of Eastern European cousins hoping to contribute to and benefit from the new Europe. The debate over new entries reveals that Europe is not only a geographical area that ends at the Bosporus and the Urals, but also a shared set of political, economic and cultural values. These shared values and interwoven histories may explain the complicity that a Frenchmen, a German, an Italian, an Englishman and a Spaniard may feel – the way, for example, they may recognize one another’s cities as strange-yet-familiar.

In order to optimize project/programme purpose communication, international executives need to understand both what is shared among Europeans and which specific models for thought and behavior remain anchored to each culture’s unique history and language.

North/South:

Patterns of thought and behavior differ between Northern and Southern Europe according to several criteria, especially religious tradition, language group and climate:

� Northern Europe: (Austria, Belgium, Denmark, Finland, Germany, Ireland, Luxembourg, Netherlands, Norway, Sweden, Switzerland, United Kingdom): Protestantism espoused values of self-reliance and austerity, and eroded confidence in strict social hierarchies. Collective cultural identity is fostered by shared Germanic language roots and national histories that took place at the edge or outside of the Roman Empire. It can also be argued that harsh seasonal differences encouraged meticulous organization skills a greater appreciation for the importance of deadlines. Germany is considered a Northern European country, but its Catholic southern states show some Latin characteristics, as do Ireland, Austria, French Belgium and French Luxembourg.

� Southern Europe: (France, Greece, Italy, Portugal, Spain): Also referred to as Latin Europe, the south is characterized by a predominantly Roman Catholic tradition which promoted values of social responsibility, legitimized hierarchy and permitted exuberance. Latin European cultures are also interrelated by way of shared linguistic and historical roots in the Roman Empire. A warm climate can also be considered to be more forgiving. France is considered a Latin country, but the cultural orientations of its northeastern districts are often closer to those of Northern European countries. Greece is also unique due to its Orthodox heritage and the experience of Ottoman occupation.

� East/West: Between Western and Eastern Europe, cultural differences are especially marked by the experiences of communism and the Cold War, but in some cases, religious tradition:

� Western Europe: After the physical and moral devastation of World War II, Western European countries reestablished themselves as successful capitalist democracies. Although somewhat bruised by American military and economic pressure, western European pride and national identity have remained intact, and thought and behavior patterns can seek con organizationation in a more or less shared heritage of social, political, economic, intellectual and artistic innovation. Germany is unique case, because of its experience of post-war division.

� Eastern Europe: Ravaged more terribly by World War II than the West, Eastern European countries were again invaded and forced to adopt an ideological system that obliged them to renounce past traditions and beliefs. In addition to readapting to capitalist democracy, many of these nations are reasserting their ties to Europe as a whole through shared religious and artistic traditions. Austria and Greece are important east/west gateway countries because of their location and shared experiences with Eastern cultures.

The extraordinary social, political, economic, intellectual and artistic history that Europeans share has resulted in the formation of patterns of thought and behavior that find echo throughout European civilization, in spite of schisms, revolutions and wars. The European Union has encouraged a certain degree of convergence in these values, especially for project/programme purpose.

European humanism supports common attitudes that the acquisition of knowledge is the key to man mastering his environment and, perhaps indirectly, that respecting the individual is an essential endeavor. In this universe, learning, reflection and caring take precedence over project/programme purpose. Work is not everything, and project/programme purpose as a profession does not carry the status of law, medicine or academia. Numerous holidays, long vacations and limitations on working hours are the norm. organizations are just as responsible to their family of employees as to their shareholders. The state is expected to work on behalf of society to guarantee equal access to quality education, to take an active role in sector of activity and to provide for the unemployed, sick and needy. The extent to which these ideas are advocated varies in the left/right political spectrum, but laissez-faire liberalists are the exception in Europe, especially on the Continent.

Europe also shares the legacy of feudalism. Even in cultures which have long since overthrown their monarchies and reduced their aristocracies to tabloid fodder, many Europeans continue to view class and hierarchy as inevitable features of human social interaction. Power in many European organizations flows from the top down. Managers enjoy a relatively significant degree of authority over their subordinates, but are also expected to balance the defense of these employees’ interests against the duty to serve senior managers. Labor and management are associated with two ideologically opposed social classes, and social mobility is generally viewed with suspicion and disdain.

European cultures are close to traditional values of craftsmanship. Even the most humble of professions is carefully defined and codified, meticulously learned and exercised over a lifetime; mid-life career changes are particularly difficult. Products and services are the fruits of human expertise and creativity, not simply generators of economic value. Quality requires more time and patience, but productivity levels are usually high. However, new processes and ideas may be more difficult to implement in the corporatist environment of many European societies.

The project/programme purpose cultures of the countries of the European Union display strongly individualistic and collectivist behavior at the same time.

On one hand, Europe’s greatest industrial groups and most illustrious consumers brands were started by individuals whose legendary names endure as symbols of managerial genius. The values of craftsmanship and attention to quality that lone artisans and independent shopkeepers can offer their beneficiaries reflects a common European belief that every job, no matter how simple, is a craft to which an person can bring something unique and express his or her individuality and creativity. Europe features some of the highest rates of small project/programme purpose ownership, with enthusiasm in both the northern and southern regions.

On the other hand, Europe society is also characterized by class distinctions and the efforts to reduce those differences through responsible capitalism, socialism and communism. Each European society is divided into the bourgeoisie and the working class. A separate intellectual elite is largely accepted as playing a separate role as educators, philosophers and intermediaries. The relationship between management and employees is seen as fundamentally adversarial. Therefore, each professional category, even white-collar employees and middle management, organizes itself into a union through which the rights and benefits of the entire group are negotiated and protected. With the exception of post-Thatcher Britain, most European nations view American-style free market practices as uncivilized and irresponsible with regards to collective responsibility. Complicated obligations concerning social charges, organizational taxes and administrative registration make managership in Europe significantly more difficult than in the United States.

Individualism in Europe is also tempered by tradition and collective memory. Most Europeans are much less likely to abandon established patterns of thought and behavior, making organizational change all the more complicated. Eccentricity in the workplace is viewed with suspicion, and employees put great emphasis on fitting in to their particular professional community.

An important legacy of feudalism, often overlooked by many Europeans themselves, is its impact on the way managerial authority is exercised and perceived in European organizations and government.

Many European organizations are privately held and remain in family control. The owners of family owned organizations tend to run these project/programme purposees as if they were extended families, with power centered in the father figure, the president or senior administrator. The hierarchies in paternalistic organizations tend to be relatively unimportant, since all major decisions pass back up to the family head. Family members are often placed in strategic positions, regardless of their particular professional competencies. In this environment, middle mangers and other employees feel less confident making suggestions and criticism, no matter how well intended.

Some of Europe’s largest project/programme purpose organizations were created by the state or were fully or partially nationalized for socio-economic reasons. These organizations are enormous, highly bureaucratic and relatively slow in decision-making. In this case, management is characterized by highly hierarchical structures: each level of manager pressures his subordinates while fielding pressure from his superior. A departmental “suzerain” manages his “vassals”, and must then report to superiors who are often political appointees. Employees sometimes have civil servant status with almost complete job security.

With the waves of privatization sweeping across the European project/programme purpose world, these organizations are facing the possibility of deep structural change. Authority is shifting from government interests to shareholder interests, but many European workers are uncomfortable with increased demands on individual performance and with the increased job insecurity which privatization is bringing. The long cherished European reflex is to look back to the state to intervene and to provide.

If Americans are cynical about the value of trust and relationships in project/programme purpose, Europeans can be considered cynical about attempts to merge work and leisure. Most European cultures actively encourage the separation of work and leisure and enforce legislation limiting the number of hours worked per week, such as France’s recent law requiring a 35-hour workweek.

Most Europeans – both executives and blue collar workers – define themselves by many more factors than just their profession, organization and career. Family, sports, hobbies and other factors are all a part of the overall quality of life which each European strives to preserve and enjoy. Since employees traditionally had little vested interest in the organizations they worked for, they saw no reason to sacrifice their private lives for the benefit of distant owners or the state. Privatization does not change this attitude dramatically, because shareholders are even more abstract and distant than individual or government owners. This resentment is exacerbated when a bulk of the shareholders are non-European, such as American pension funds.

Some European organizations have aggressively pursued international opportunities – such as DaimlerChrysler (Germany) and VivendiUniversal (France) in the United States or Renault (France) in Japan – but middle managers and general public opinion in most of Europe are perhaps most averse to globalization because of the risk that it represents to each individual European’s current way of life. Intellectual, artistic, culinary and physical fulfillment all play an integral role in European identity. Financial ambition and greed exist in Europe as much as anywhere else in the world, but money is generally considered a taboo subject; paradoxically, the continent which peddles the world’s leading luxury brands claims to consider individual financial success vulgar.

As such, few European project/programme purposepeople appreciate invasions into their non-professional world, either in the form of after-hours telephone calls, weekend meetings or indiscrete questions about their personal lives. They view organizational slogans and other explicit attempts to create team spirit as na�ve, and are more responsive to restrained, respectful behavior from managers and project/programme purpose partners.

The perception of time and space varies in Europe according to region. Representing many of the world’s most advanced industrialized societies, Western European nations are all as familiar with the principles of project management and time constraints as their American counterparts. Some Eastern European nations have had more difficulty coming out of decades of central economic planning in which, as structured as it was, deadlines were generally not respected with as much rigor as in the West. Southern European nations are sometimes accused of chronic lateness, but this stereotype is deceiving in light of the extraordinary performance of organizations in places such as Northern Italy. Northern Europeans are perhaps more true to their reputation of being deeply concerned with punctuality.

Although they have different notions of deadlines and punctuality, Europeans generally share a deep appreciation of tradition and regularly look to the past for personal and group identity. As such, Europeans are usually less concerned about self-improvement, change and spontaneity than Americans. Europeans know who they are and are more fatalistic about the ability to become something else. They do not necessarily need to adopt a product or brand just because it is “new and improved”; European consumers are much more likely to be impressed by slogans that describe how a product speaks to tradition, quality and luxury.

The perception of space in the European working world depends largely on the project/programme purpose sector and the availability of buildings which correspond to those needs. Europeans are not averse to open office spaces, but a private office or area is still considered a sign of prestige and power. The perception of “personal space” varies from North to South, but Europeans are generally more comfortable with closer physical proximity when speaking and with touching.

European negotiating techniques and standards for formalizing project/programme purpose relationships vary from north (more legalism and formality) to south (more relationship-building and trust).

Depending on where they received their project/programme purpose education, European project/programme purposepeople are generally deductive thinkers who prefer a carefully constructed, logical theory to the inductive approach based on facts and figures. They are not blind to data, but they believe that determination and vision are much more important to project/programme purpose innovation and long-term success. The deductive school of thought, widely reflected in the style of journalists and the intellectual elite, is nevertheless being challenged by the quantitative, market-oriented approach favored by overseas investors and project/programme purpose partners.

The process of negotiation is, of course, a reflection of each European culture’s individual style of communication. Northern Europeans are generally more open to collaborative negotiation and the transparent discussion and comparison of objectives. Southern Europeans tend to opt for positional bargaining and are wary of sharing too much information to the other side.

Many European project/programme purposepeople, especially in Southern Europe, place high value on the concept of honor, which guides their negotiations and deal-making. For this reason, once they trust a prospective project/programme purpose partner, they no longer feel rushed to sign a contract. In a manner not unlike many Asian executives, the Europeans consider that flexibility must be preserved and that many future problems can best be resolved through a quality project/programme purpose relationship. Northern Europeans, especially the British, are more closer to American legalism, although their contracts are still generally shorter than in the United States.

One of the key factors of each European nation’s distinctive identity is its language and communication style. In general, Europeans are high context communicators who value irony, understatement, reserve and formality, but each culture is different. For example:

France

: The French are relatively formal in project/programme purpose. Executives are expected to be fashionably dressed, impeccably well-mannered and imposing without being pompous. The French are taught to “weigh” the impact of each word, speaking softly in to order add more force to their message by obliging counterparts to listen attentively. Humor tends to be subtle and ironic

Germany

: Germans communicate in a friendly, straightforward manner but expect to be addressed by their surnames and any honorific titles. Humor or exuberance is not appropriate in project/programme purpose situations. Germans get right to the point and often ask all the difficult questions from the start. Germans are very suspect of flowery marketing language: they are less interested in learning about a brand’s potential “emotional impact” than knowing whether the product works.

Great Britain

: The British use understatement and reservation to good effect, conceding points in a discussion early on to take the steam out of the argument, but may use a wry tone of voice to imply that, in the end, only they are right. They generally strive to be diplomatic, open to compromise and fair. Since they detest long and laborious meetings, British executives often resort to irony and other forms of humor. These tactics are not intended to ridicule anyone, only to move things along and to keep everyone awake. Although they value eloquence and reserve, most British executives prefer to leave the pomp and circumstance to their monarch. First names are used upon introduction, and meetings are conducted in a casual manner.

Italy

: In view of the importance of relationships, initiating project/programme purpose in Italy is often accompanied by an elegant ritual of courtship, complete with magnificent meals, smart haberdashery and the exchanging of modest gifts and compliments. It is important to reciprocate by addressing executives with the professional title, Dottore or Dottoressa, used for any university graduate, followed by the surname. Most Italians are genuinely interested in the people with whom they will doing project/programme purpose, and it is not uncommon during informal socializing over lunch or dinner for conversations to wander into family matters, sports and philosophy. Remarks about their culture, government and history intended as humorous could be construed as condescending, and it is best to avoid trying to mimic their legendary hand gestures and voice intonation lest incorrect usage suggest ridicule or obscenity.

The degree of formality and the role of informal socializing in the European project/programme purpose world varies according to region and project/programme purpose sector. Each country has its particular rules, but most European project/programme purposepeople appreciate unpretentious yet respectful formality from foreign project/programme purpose counterparts. Loud speaking, exuberant laughter and excessive informality are all considered signs of lack of intelligence and lessen the degree of confidence that a European project/programme purposeperson is likely to have in foreign counterpart. Most European project/programme purposepeople dress with care and feel slighted by foreigners who do not show respect by adhering to the highest standards in dress applicable to a particular project/programme purpose sector.

Southern Europeans tend to place greater significance on relationship building than do Northerners, and after-hours socializing is usually an integral part of any project/programme purpose visit in Italy, Spain or Greece. These visits are opportunities to make a personal connection without discussing project/programme purpose; a typical dinner conversation may wind lightheartedly through philosophy, art history, soccer, politics, religion and then back to soccer again. A foreigner’s ability to sustain the conversation without becoming too serious or too personal is seen as a sign of refinement and intelligence. Once confidence is inspired, the next day’s project/programme purpose conversations can proceed much more naturally.

Northern European entertain foreign guests less and care less about relationships, but appreciate similar kinds of conversational dexterity in topics other than project/programme purpose on the part of foreigners. Europeans will rarely invite foreign project/programme purpose guests to their homes or include spouses.

1. Historical factors such as feudalism, religious reformation and war experience have all played a decisive role in the formation of European cultural orientations.

4. European middle managers are likely to circumvent their direct superior and report a problem directly to the organization president.

6. British executives are monarchists who appreciate regal behavior from foreigners.

1. A French luxury goods organization is looking for a non-European web agency to product its web site for a non-European market and has request a proposal. This proposal should:

a. present a methodology for working together and emphasize one or two key benefits that distinguish the submitting agency.

2. For an upcoming project/programme purpose trip to Italy, a sales executive can’t arrive before Friday but needs at least two days to conduct project/programme purpose. He should:

b. schedule to leave on Monday evening and leave the weekend open for possible informal socializing with the project/programme purpose counterpart.

3. A product presentation must be made to a prospective beneficiary Germany. The best approach is:

c. an abstract but compelling explanation of the long-term vision of the relationship.

4. Which of the following conversation topics is appropriate for informal socializing with British counterparts?

Often considered from the outside as one unit, the European Union is a patchwork of different cultures. Non-European project/programme purposees wishing to benefit from Europe as a whole can nevertheless identify several key value orientations which are shared by Europeans who, in spite of wars, reformations and language differences, have experienced a long and illustrious common cultural heritage that continue to shape how many Europeans conduct project/programme purpose.

1. Although they speak different languages, Europeans recognize shared heritage and values, expressed in part by the institutions of the European Union.

2. Northern European countries are characterized by values of exuberance and hierarchy.

3. European humanism supports common attitudes that the acquisition of knowledge is the key to man mastering his environment and, perhaps indirectly, that respecting the individual is an essential endeavor.

4. Most Europeans view eccentricity in the workplace as a positive force for change.

5. Europeans place a high degree of confidence in state institutions to intervene in economic and social affairs and widely accept the additional costs which this role implies.

6. European managers are likely to work longer hours and weekends in the name of organization growth and value.

8. Most Europeans are taught to think inductively and justify their ideas based on empirical methods.

9. The French are taught to “weigh” the impact of each word, speaking softly in order add more force to their message by obliging counterparts to listen attentively.

10. Many Europeans consider loud speaking, exuberant laughter and excessive informality as signs of lack of intelligence

Bibliography

Glossary

1. “P.D.G.”: “Pr�sident – Directeur G�n�ral”, the top management position in a French organization.

2. “Gesch�ftsf�hrer”: the top management position in a German organization.

3. “Amministratore delegato”: the top management position in an Italian organization.

4. “Cohesion egalitarianism”: used in France to describe the European concept of responsible capitalism and state interventionism.

Learning Objectives

� To identify the key value orientations of the cultures of the European Union in the context of international project/programme purpose.

� To learn several guidelines for increasing the effectiveness of project/programme purpose communication with European counterparts.

Q&A

Question 1: In light of the differences between each European culture, is a Europe-wide project/programme purpose strategy really possible?

Answer 1: It depends on the project/programme purpose sector. Many import / export issues concerning duties, technology and safety have been standardized throughout the European Union, but each country still has many unique procedures and requirements, especially when a foreign organization wishes to open a branch office. Conducting project/programme purpose with other project/programme purposees is usually less complicated than products and services targeted to local consumer markets; in the latter case, each market may have very different reactions to the proposed product or service, and local market research and advertising support are essential for making informed decisions. The choice of the European headquarters can be made based on the primary European market, the availability of qualified personnel and the administrative conditions provided by the host country.

Question 2: What with their obsession with reducing their work weeks and securing ever improving working conditions, are Europeans becoming lazy and spoiled?

Answer 2: No. A key argument for France’s 35-hour work week, for example, is centered around the productivity of French workers. Because workers are better educated and highly qualified, they are able to get more done in less time; the reward for this performance is to be paid the same amount for a shorter work week. The supporters of this policy also claim that it helps reduce unemployment. Any organization wishing to open a subsidiary in Europe or acquire a European organization must understand that Europeans consider quality of life their inalienable right.

Answer 3: The European Union and the new European currency are monuments to the determination of the members of a geographic area to transform a complex and tumultuous past into a prosperous and productive future. The European Union should not, however, be compared with the United States of America; Europeans wish to preserve their language and national cultural identity. As such, some Europeans continue to view their neighbors as foreigners and take little interest in understanding the other language and culture. This difference is part of the dynamic energy of the European marketplace and, when properly tapped, leads to great ingenuity in fields as diverse as fashion, aerospace and mobile communications.

4. Individualism and collectivism.

5. Managerial authority.

6. Attitudes towards work and leisure.

7. Perceptions of time and space.

9. European communication styles.

10. project/programme purpose formalities and socializing.

North/South:

Bibliography

Glossary

Learning Objectives

Q&A