Cultural Differences: Mercedes vs. EMITAC

Cultural Differences: Mercedes vs.
EMITAC
Section 1) INTRODUCTION
Cultural difference is study and research prepared for academic purposes with comparison of cultural differences on Mercedes Company and Emitac Company. It is for improving researchers knowledge about cultural differences in organization and behavior.
The difference in location of organization and their business or structure creates differences in culture of working environment they are doing business and where employees are working. Therefore, it is analyzing about each organization that is having culture different from another organization.
The research study on cultural differences will be exploring organizational structure and culture, how they are contributing for business
improvement and success. The failure to maintain good structure and culture will result in poor employee performance causing business failure or downturn.
There will be examining of Mercedes and Emitacs approaches to management. The behavior of employees working in these organizations influenced due to culture and structure of organization.
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Cultural Differences: Mercedes vs. EMITAC

Mercedes is German manufacturer that is offering and selling products such as buses, automobiles, coaches, and trucks worldwide. In 1901, it was there first marketing technique to reach maximum customer and to create sales. In 1926, Mercedes produced first Mercedes Benz and it is their brand name. They are presenting their brands as safety innovation, solutions and technology when comparing with
competitors in the market (Mercedes Benz, 2009).
Emitac
is
international
company
with
well-
established branches and divisions around the world. They are standing in the market and selling for creativity & innovation and they show assurance as value-added quality and technology.
Emitac products are solutions, technology and they are selling it in the United Arab Emirates working, and operating three vertical divisions and they are (Emitac United Arab Emirates, 2009):
Emitac Distribution (EDL) Emitac Enterprise Solutions (EES) Emitac Healthcare Group (EHG)
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There is more information on working and business environment of Emitac and they are motivated due to continuous perfection, quality and excellence. There is demand from each customer and there should be differentiated operational framework because each demand is not the same (Emitac Official Website, 2009).
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Section 2) DESCRIPTION
1)Management Structure
The management or organization structure of Mercedes is functional structure. The employees distributed in the structure are as per their departmental function and they are working according to this.
There is enhancement of experience in functional structure due to differentiated function of each. Moreover, it is grouping of employees working under same field and same area and they will be sharing knowledge while working and supporting each other.
The form of functional structure is saving costs and efforts due to presentation form of economies of scale. There will be coordination in functional structure among different departments but it is complex and difficult when comparing with other structures.
There is absence of flexibility in functional structure because centralized form of structure (Word Press, 2006).
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The organization structure of Mercedes is below (Daimler, 2008):
Emitac is multidivisional structure that is having more than one division with different businesses or services to offer for their customers. In multidivisional structure, there is separate business operating under each division or group. This is suitable form of structure for diversified companies and the key roles and activities of managers are to exploit synergies among the group of division. The managers will be using strategic combination of controls along with financial controls. There is competition between the division and the managers are trying to maintain a balance between them. The reason for multidivisional structure is that there are competitions for scare resources among divisions.
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There will be creation of opportunities in multidivisional structure for developing synergies among is employees. maximizing The overall main purpose of
multidivisional
structure
Emitacs
business
performance (MOS, 2009). The below shows, Emitacs multidivisional structure (Emitac Official Website, 2009):
When comparing Mercedes and Emitacs structure there is big difference among them. The difference is due to strengths and benefits of each structure. Therefore, Mercedes strengths are showing typical hierarchy, which is resulting in obtaining hierarchical structure properties. The difference is for suiting each organizational function and structure of working and communicating that is connecting each department or division with each other.
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The strengths of functional structure are maximizing functional
performance and cultivating specialists. The strengths of multidivisional structure are showing clear accountability, possessing smooth
departmental coordination, developing broader skills and adapting and unstable environment (Practical Management, 2009).
2)Culture, types of culture and signs of culture
Organization culture is about shared behavior communication, perceptions assumptions employees. culture, human distress, values and and
shared among
Organization
culture is affecting human behavior during their working environment. There is construction of communication and basis of system are on history as per assumptions making. The guiding and constraining of
organizational members are in frameworks of values and interpretation. The employees will be performing their roles and confronting to challenges that is occurring in organizational environment (University of Kentucky, 2009).
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The types of organizational culture shown below (SW Management Learning, 2009):
The below table shows differences among organizational culture of Mercedes and Emitac:
Mercedes
Emitac
Shared within division Communication established Department decision-making
Shared within units of division Creation of communication Unit decision-making

among units of
Competition among departments Competition

division
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3)Effects on Business Performance
The good organizational culture will boost and will have positive impact on business performance. The effects are serious and there should be consideration for maintaining proper and suitable organizational culture. There are significant impacts on organizations that are influencing economic and organization performance on long-term basis.
Organizational culture is one of the important factors that are essential for determining failure or success of organization. The results will be affecting for next decade. The major influential part is long-term financial growth and performance, which is very rare due to inappropriate organization culture.
The development of such culture will be easy when there are employees intelligent and reasonable adapting to changing working environment and business performance. It is difficult to change organizational culture and it influences business performance but it will be easy if there is
understanding from managers resulting in sustainable organizational culture.
The effects of business performance improvement and success are because employees are able to understand the business history and their
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operational methods at present. It is possible to control employee behaviors and there are best culture types that are resulting in excellent productivity and great effectiveness leading organization towards success.
There should be ethical norms and culture that will support and provide guidelines for ethical behavior for employees. The failure to maintain ethics in organization culture by managers will affect business
performance. Therefore, managers will be playing important role in developing ethical behavior among their employees and this is by correct behavior exhibiting (SW Management Learning, 2009).
The below table shows business performance and culture of Mercedes and Emitac:
Mercedes
Emitac
Complications are less Easy determination

success
Complications are more of Failure determination

division is less
of
units
of
Departmental managers Understanding of history
Divisions managers Understanding operations & activities
4)Individual Behavior Factors Influencing
There is variety of individual differences that is influencing strongly organizational individual behavior. The person influential factors are
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characteristics and specific dimensions. The bases are on personality of an employee that is causing individual differences patterns (University of Oklahoma, 2009). The individual behavior influencing factors are
motivation, situational factors (MARS), role perceptions and ability of employees.
The below diagram shows individual performance and behavior (ACN Sydney, 2009):
The below table shows business performance and culture of Mercedes and Emitac:
Mercedes
Emitac
Motivation from department
Motivation
from department and
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division
MARS
department
combination
from MARS
combination
from
department and division
Role within team Ability less competitive

5)Theories of Management
Role with team and individual Ability high competitive
There are two forms of theories of management and they are critical and culture theory (University of Kentucky, 2009). These theories of
management are different in Mercedes and Emitac during comparison varying culture to critical theory.
Mercedes is following culture theory, there are three areas and they are value focus, attitudes focus, and beliefs focus. Emitac is following critical theory and there are two areas and they are social structures and technological structures.
6) Theories Underpins Principles & Practices
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There are underlying practices and principles in organizational behavior and culture based on command and environment of organization. There should be single or one immediate supervisor.
The principle known is Scalar and this principle will be limiting people to communicate directly in hierarchical relationship. The practice should avoid ignoring members psychology. The other principle and practice is Confucian principle. There are possibilities for promoting employee productivity and it is available in every culture. There is work ethic in protestant nature (University of Texas at San Antonio, 2009). The principles / practices will support as guidelines for Mercedes and Emitacs management and employees.
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Section 3) CONCLUSION
There are many differences between Mercedes and Emitac and the major reason is due to organizational structure. The discussion included organizational structure, organizational culture, individual behavior at work factors, business performance & culture, theories underlying principles and practices, theories of management and definitions on culture and types of culture. Moreover, they are having differentiated
products and services for their customers that resulted in differences. The nature of the business is influencing cultural differences and effective management will lead to success on short-term or long-term basis.
Mercedes and Emitac are two different countries operating under different working environment, working conditions, business and structure. After analysis of these organizations on their culture and structure, there is observation of big difference and they should be able to manage and handle it for improved business performance and culture.
Mercedes is following functional structure and it is basis on what employees are doing, based on functions of departments, structure is saving money, economies of scale, coordination among departments and operating connecting each department.
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Emitac is following multidivisional structure and it is operating as separate business, diversified business, exploiting synergies, financial and strategic controls combination, division competition and performance maximization. There is difference in organizational culture between Mercedes and Emitac but the difference is less.
The recommendation for Mercedes and Emitac is to adopt organizational culture that is not showing much difference in their current and past environment of culture. This is to ensure that employees are performing well with productivity.
The other solution is implementing ethics in organizational culture to maintain good business performance and sales. This will be challenge for Mercedes and Emitac and if they are not able to implement it, then it will be become issues and problems affecting their business.
Moreover, Mercedes and Emitac should be able to maintain good business structure and culture that will ensure productivity and success avoiding possible failure due to poor organizational behavior management. They can adopt different approaches to management because there is difference in Mercedes and Emitac different structure and culture influencing individual behavior at work.
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Cultural Differences: Mercedes vs. EMITAC BIBLIOGRAPHY
ACN Sydney. 2009. Chapter 2: Organizational Behavior. [WWW] <URL: http://www.auscampus.net/currentstudents/coursenotes/hrsubjects/mgt2_obe/OB%20Chp%202%20%20Wk%202.ppt > [Accessed 22 October 2009.]
Daimler. 2008. Managements Sustainability Governance-Structure. [WWW] <URL: http://nachhaltigkeit2008.daimler.com/daimler/annual/2008/nb//En glish/30/10/Nachhaltigkeitsmanagements_SustainabilityGovernance-Structure.gif > [Accessed 22 October 2009.]
Emitac Official Website. 2009. Emitac Profile. [WWW] <URL: http://www.emitac.ae/corporate/Pages/CorporateProfile.aspx > [Accessed 22 October 2009.]
Emitac United Arab Emirates. 2009. Emitac Company Official Website for United Arab Emirates. [WWW] <URL: http://www.emitac.ae/corporate/Pages/AboutOurCompany.aspx> [Accessed 22 October 2009.]
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Mercedes Benz. 2009. Mercedes Company Official Website. [WWW] <URL: http://www3.mercedes-benz.com/mbcom_v4/xx/de.html> [Accessed 22 October 2009.]
MOS. 2009. Chapter 12. [WWW] <URL: http://mos.uwo.ca/courses/410/Chapter%2012%20Hitt%20%20pp %20slides.ppt > [Accessed 22 October 2009.]
Practical Management. 2009. Organization Development: Functional vs. Divisional Structure. [WWW] <URL: http://www.practicalmanagement.com/Organization-Development/Functional-VsDivisional-Structure.html> [Accessed 22 October 2009.]
SW Management Learning. 2009. Chapter 15. [WWW] <URL: http://www.swlearning.com/management/hellriegel/ob10e/isc/powe rpoint/ch15.ppt > [Accessed 22 October 2009.]
University of Kentucky. 2009. Chapter 5. [WWW] <URL: http://www.uky.edu/~drlane/orgcomm/325ch05.ppt> [Accessed 22 October 2009.]
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University of Oklahoma. 2009. Chapter 14. [WWW] <URL: http://pcbfaculty.ou.edu/classfiles/BAD%204013/14.ppt> [Accessed 22 October 2009.]
University of Texas at San Antonio. 2009. Culture and Organization. [WWW] <URL: http://www.utsa.edu/cpi/garza/docs/Psy3053_Spring09/April %2027%20-%20Culture%20and%20Organiztions.ppt> [Accessed 22 October 2009.]
Word Press. 2006. Operations, Processes, and Decisions. [WWW] <URL: http://sameh.wordpress.com/2006/05/13/a7/ > [Accessed 22 October 2009.]
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