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MANAGEMENT OF MNES/MNCS ITALIAN STYLE

Culture and Management Practice of Italy

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Page 1: Culture and Management Practice of Italy

MANAGEMENT OF MNES/MNCS

ITALIAN STYLE

Page 2: Culture and Management Practice of Italy

Group Profile:Group Number : 12

ID Name Remarks

B-110202056

Md. Imran

B-110202

B-110202

B-110202

B-110202

Page 3: Culture and Management Practice of Italy

Contents Overview of Italy Religion and Language Dress code and Food habit Etiquettes and Customs Cultural Dimensions Business Etiquette and Protocol Management Style Negotiation tactics Comparison with USA and Japan

Page 4: Culture and Management Practice of Italy

Overview of Italy Official name – Italian Republic Population – About 58, 126, 212 Official Language – Italian (German & French

in some regions) Currency – Euro (EUR) Capital city – Rome GDP – purchasing power parity about $1.821

trillion GDP Per Capita – purchasing power parity

about $31,000

Page 5: Culture and Management Practice of Italy

An Overview of Italy Italy is considered the birthplace of Western

civilization and a cultural superpower. Both the internal and external facets of Western culture were born on the Italian peninsula. The famous elements of Italian culture are its art, music, fashion, and iconic food. Italy was the birthplace of opera. Italy is home to the greatest number of UNESCO World Heritage Sites (51) to date and according to one estimate the country is home to half the world's great art treasures

Page 6: Culture and Management Practice of Italy

Religion

83%

12%4% 1%

ChristiansIrreligiousMuslimsOthers

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Important Elements of Culture

Language: Verbal: Non-verbal

Religion Values and Attitudes Manners and Customers

Page 8: Culture and Management Practice of Italy

Impact of Language Verbal Language: The official language of the country is Italian.

About 93 percent of the Italian population speaks Italian as native language, according to the BBC. There are a number of dialects of the language spoken in the country, including Sardinian, Friulian, Neapolitan, Sicilian, Ligurian, Piedmontese, Venetian and Calabrian. Milanese is also spoken in Milan. Other languages spoken by native Italians include Albanian, Bavarian, Catalan, Cimbrian, Corsican, Croatian, French, German, Greek, Slovenian and Walser.

Page 9: Culture and Management Practice of Italy

Non-verbal Language:

Various types of action to communicate with each other with particular message, it is used in replacement of speech or in parallel with spoken words.-While meeting an Italian for the first time, be ready to shake hands, but if they come at you be ready for an air kiss- The air kiss is simply pressing your cheek to someone else’s, starting with the right cheek and moving to the left

- lip contact is not necessary, but in very close relationship its ok

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Eye Contact Italians are relies heavily on eye contact Eye behavior is most often associated with the

understanding of deception. Italians use eye contact to depict how honest

one is. Intense direct eye contact is common, looking

away is a sign of disinterest and/or that you are behaving rude.

Maintain eye contact while talking, it is considered that you are hiding something if you look away

Page 12: Culture and Management Practice of Italy

Dress Etiquette Dressing well is a priority in Italy. Men wears dark coloured, conservative

business suits. Women wears wear either business suits

or conservative dresses. Elegant accessories are equally important

for men and women. Fashions and fashion design are

trademarks of Italy.

Page 13: Culture and Management Practice of Italy

Business Dress Code :

Page 14: Culture and Management Practice of Italy

Traditional Dress Code

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Page 16: Culture and Management Practice of Italy

Food Habits Italians typically eat three meals on an average

day: breakfast (colazione), lunch (desinare), and dinner (cena). Breakfast is usually a quick affair consisting of espresso or cappuccino and a croissant (briosce) or cookies (biscotti).

Lunch is the main meal of the day in Italy, though on weekdays it’s likely to have fewer course than on Sundays and to be somewhat more rushed, though what’s hurried for the Italians may seem downright leisurely to us.

Dinner is usually served late in the evening – after 7:00 or 8:00 – and traditionally consists of light items, such as salads, steamed vegetables, cheese, and cold cuts, as well as meats, pastas and desserts.

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Public Holidays

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Other Cultural Festivals :Italy's interesting festivals include: Venice Film Festivals - A glamorous event on Venice Lido, August/September Taormina Film Fest - Events in the Greco-Roman theatre at Taormina, June Buskers Festival - In Ferrara, October Rome Cinema Festival - Competes with the more famous one in Venice, autumn Venice Biennale - Art and architecture exhibitions, in alternating years, June to November Mittelfest - Drama, music and dance in Cividale del Friuli, July Greek drama in Sicily - Classical drama in the Greek theatre of Siracusa (Syracuse), May-June

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Meeting Etiquette: Greetings are enthusiastic yet rather formal. The usual handshake with direct eye contact and a smile suffices between strangers. Once a relationship develops, air-kissing on

both cheeks, starting with the left is often added as well as a pat on the back between men.

Wait until invited to move to a first name basis.

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Meeting Etiquette:

Wait until invited to move to a first name basis Italians are guided by first impressions.

Many Italians use calling cards in social situations. These are slightly larger than traditional business cards and include the person's name, address, title or academic honors, and their telephone number.

If you are staying in Italy for an extended period of time, it is a good idea to have calling cards made. Never give your business card in lieu of a calling card in a social situation.

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Business Card Business cards are exchanged

after the formal introduction. To demonstrate proper respect for

the other person, look closely at their business card before putting it in your card holder.

It is a good idea to have one side of your business card translated into Italian.

If you have a graduate degree, include it on your business card.

Make sure your title is on your card. Italians like knowing how you fit within your organization.

Page 22: Culture and Management Practice of Italy

Dining Etiquette:If invited to an Italian house: If an invitation says the dress is informal, wear stylish

clothes that are still rather formal, i.e., jacket and tie for men and an elegant dress for women.

Punctuality is not mandatory. You may arrive between 15 minutes late if invited to dinner and up to 30 minutes late if invited to a party.

If you are invited to a meal, bring gift-wrapped such as wine or chocolates.

If you are invited for dinner and want to send flowers, have them delivered that day.

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Table manners:

Remain standing until invited to sit down. You may be shown to a particular seat.

Table manners are Continental -- the fork is held in the left hand and the knife in the right while eating.

Follow the lead of the hostess - she sits at the table first, starts eating first, and is the first to get up at the end of the meal.

The host gives the first toast. An honored guest should return the toast later in the meal. Women may offer a toast.

Page 24: Culture and Management Practice of Italy

Gift Giving Etiquette: Do not give red flowers as they indicate secrecy. Do not give yellow flowers as they indicate jealousy If you bring wine, make sure it is a good vintage.

Quality, rather than quantity, is important. Do not wrap gifts in black, as is traditionally a mourning

color. Do not give chrysanthemums as they are used at funerals. Do not wrap gifts in purple, as it is a symbol of bad luck. Gifts are usually opened when received.

Page 25: Culture and Management Practice of Italy

Hofstede’s Cultural Dimension

Page 26: Culture and Management Practice of Italy

Individualism This dimension is the degree of interdependence a

society maintains among its members In Individualist societies people are supposed to

look after themselves and their direct family only. In Collectivist societies people belong to ‘in groups’ that take care of them in exchange for loyalty.

Italy is an Individualist culture as it is “me” centred For Italians having their own personal ideas and

objectives in life is very motivating and the route to happiness is through personal fulfilment.

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Power Distance This dimension deals with the fact that all

individuals in societies are not equal Italy tends to prefer equality and a

decentralisation of power and decision-making.

Control and formal supervision is generally disliked among the younger generation, who demonstrate a preference for teamwork and an open management style.

Page 28: Culture and Management Practice of Italy

Masculinity Masculine dimension indicates that the society will be

driven by competition, achievement and success. And Feminine dimension means that the dominant values in society are caring for others and quality of life.

Italy is a Masculine society – highly success oriented and driven

Children are taught from an early age that competition is good and to be a winner is important in one’s life.

Italians show their success by acquiring status symbols such as a beautiful car, a big house, a yacht and travels to exotic countries.

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Uncertainty Avoidance The extent to which the members of a culture

feel threatened by ambiguous or unknown situations and have created beliefs and institutions that try to avoid these is referred as Uncertainty Avoidance

Italy has a high level of Uncertainty Avoidance which means that as a nation Italians are not comfortable in ambiguous situations.

Formality in Italian society is important and the Italian penal and civil code are complicated with clauses, codicils etc.

Page 30: Culture and Management Practice of Italy

Time Dimension Long-term oriented. Focus more on the near future and

therefore do not save or plan their future too much.

Do not focus on investing. Consider traditions to be very important.

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Indulgence Offers delightful small group tours in comfort

and style. Travel to the iconic jewels as well as the out of

the way destinations, away from the beaten path.

Use local guides in cities and towns who are experts in their fields.

Cars are able to move around as the locals do. Offer the best mix of culture, history, art, food

and wine experiences.

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Religion in Italy The major religion in Italy is Roman

Catholicism. This is not surprising, as Vatican City, located in the heart of Rome, is the hub of Roman Catholicism and where the Pope resides. Roman Catholics make up 90 percent of the population, though only one-third of those are practicing Catholics, while the other 10 percent is composed of Protestant, Jewish and a growing Muslim immigrant community

Page 33: Culture and Management Practice of Italy

Family Values The family is the centre of the social

structure and provides a stabilizing influence for its members.

In the north, generally only the nuclear family lives together; while in the south, the extended family often resides together in one house.

The family provides both emotional and financial support to its members.

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Etiquette & Customs in Italy Greetings are enthusiastic yet rather formal. The

usual handshake with direct eye contact and a smile suffices between strangers.

Wait until invited to move to a first name basis. Italians are guided by first impressions, so it is

important to demonstrate propriety and respect when greeting people, especially when meeting them for the first time.

Once a relationship develops, air-kissing on both cheeks, starting with the left is often added as well as a pat on the back between men

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Business Etiquette and Protocol in Italy Italians prefer to do business with people they know

and trust. A third party introduction will go a long way in

providing an initial platform from which to work. Italians much prefer face-to-face contact, so it is

important to spend time in Italy developing the relationship.

Demeanour is important as Italians judge people on appearances and the first impression you make will be a lasting one. Italians are intuitive. Therefore, make an effort to ensure that your Italians colleagues like and trust you.

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Business Etiquette and Protocol in Italy

Networking can be an almost full-time occupation in Italy. Personal contacts allow people to get ahead.

Take the time to ask questions about your business colleagues family and personal interests, as this helps build the relationship.

Italians are extremely expressive communicators. They tend to be wordy, eloquent, emotional, and demonstrative, often using facial and hand gestures to prove their point.

Your business colleagues will be eager to know something about you as a person before conducting business with you.

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Business Negotiation In the north, people are direct, see time as money, and get

down to business after only a brief period of social talk. In the south, people take a more leisurely approach to life

and want to get to know the people with whom they do business.

Allow your Italian business colleagues to set the pace for your negotiations. Follow their lead as to when it is appropriate to move from social to business discussions.

Italians prefer to do business with high-ranking people. Hierarchy is the cornerstone of Italian business. Italians

respect power and age. Negotiations are often protracted. Never use high-pressure sales tactics

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Management of Italy When managing in Italy, it is important to keep in

mind that each person has a very distinct role within the organization, and maintaining that role helps to keep order.

People believe that their supervisors have been chosen because they have more experience and greater knowledge than those they manage, and it is, therefore, unnecessary, and even inappropriate for them to consult with lower-ranking individuals when decision-making.

Managing in Italy is very difficult for someone from the Northern countries.

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Management of Italy Age is very important in Italy, and one’s age determines

the relative degree of respect one should receive. Some companies have a rather old board of directors,

and therefore still do business in the more traditional way.

Companies with younger people in charge are often much more flexible. Because the Italians hold hierarchy in high regard, employees are very loyal and have deep respect for their superiors.

Their superiors expect results of very high quality and are therefore not easily satisfied.

Therefore, it is not uncommon that the work has to be double checked and improved before the superiors are satisfied.

Page 40: Culture and Management Practice of Italy

Planning in Italy

Who take decision in Italy ?

The Manager himself

Decision Making time

Decision making time is very slow

Implementation time

Implementation time is very fast

At the time of decision making, the manager at first decides on whom the responsibility will be imposed and then they do another job regarding to the planning.

Page 41: Culture and Management Practice of Italy

Organizing In Italy Italian organizational functions were

massively developed in 1980s They introduced new personnel policies

like merit-based promotion, incentive pay and increase autonomy

Responsibilities for the manager were also developed

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Staffing in Italy Italian organization recruit people for their

organization from employment agencies, European employment service, private agencies and executive recruitment

These agencies registered qualified people and provide vacancy information and collect the requirement of organization.

Ministero del Levoro e della Prevedenza Sociale, ALI, Sinterim, Vedior, Eurointerim are such type of employment agencies.

Page 43: Culture and Management Practice of Italy

Controlling Italy maintains the hierarchy in the

relationship in organization, so the lenders or superiors control people.

Sub ordinates give respect to him and leaders maintain paternalistic leadership style.

They distribute work responsibility to the employee, motivate them as like a friend for better and productive outcome.

If any one fails to provide better result he or she must be demoted from the post.

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Problem solving

Workplace conflicts are very common, there are very few offices where all the employees get along. Because of this, conflict resolution is a necessary component of the workplace, and those in a leadership position must be skilled in conflict resolution techniques. In that case the conflict resolution techniques or problem solving policies used by the Italians are described at below:

a) Listen then speak outb) Gather groupc) Be impartiald) Broadcast praisee) Promote team workf) Do not postpone conflict situation

Page 45: Culture and Management Practice of Italy

Negotiation Tactics Italians are sophisticated diplomats and negotiators. Emphasizing the mutual benefit of a long-term

relationship may be the best way to ensure business success.

Who one knows can be more important than what one knows when doing business in Italy.

Italians generally expect and prefer to negotiate with only the most important people – and the people with authority to make decisions – in the company.

Page 46: Culture and Management Practice of Italy

Negotiation Tactics Dealings are generally formal affairs in Italy. Italians behave –

and expect others to behave – with decorum. Honor and personal pride are critical to Italians and must never

be insulted. Most decisions will not be made at the table but instead behind

closed doors by various people who may have to be consulted. negotiations can be very slow and protracted affairs in Italy. A known Italian tactic is to dramatically change demands at the

eleventh hour to unsettle or test the flexibility of their counterparts. Remain firm

Page 47: Culture and Management Practice of Italy

Negotiation Tactics In the north, people are direct, see time as money, and get

down to business after only a brief period of social talk. In the south, people take a more leisurely approach to life and

want to get to know the people with whom they do business. Allow your Italian business colleagues to set the pace for your

negotiations. Follow their lead as to when it is appropriate to move from social to business discussions.

Italians prefer to do business with high-ranking people. Hierarchy is the cornerstone of Italian business. Italians respect

power and age.

Page 48: Culture and Management Practice of Italy

Negotiation Tactics Negotiations are often protracted. Never use high-pressure sales tactics. Always adhere to your verbal agreements. Failing to follow

through on a commitment will destroy a business relationship. Heated debates and arguments often erupt in meetings. This

is simply a function of the free-flow of ideas. Haggling over price and delivery date is common. Decisions are often based more on how you are viewed by the

other party than on concrete business objectives.

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Comparison with USA and JapanCultural Dimension Comparison

Dimensions USA Japan Italy

Individualism High Low High

Power Distance Low High Medium

Masculinity High High High

Uncertainty Avoidance Low High High

Orientation Short term Long term Long term

Page 50: Culture and Management Practice of Italy

Comparison with USA and JapanManagement Practices Comparison

Topic USA Japan Italy

Decision comes At the top Top to bottom and to back

At the top

Decision made Fast Slow Slow

Implementation Slow and requires

Fast and comparatively

accurate

Fast

Responsible for activities

Individual Group Individual

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Comparison with USA and JapanManagement Practices Comparison Topic USA Japan Italy

Clear the responsibilities

Clear and specific

Ambiguous responsibility

Little visible

Organization structure

Formal and bureaucratic

Informal Strong hierarchical

Organization culture

Lack of common organizational

culture

Well known organizational

culture

Well known organizational

culture and philosophy

Identification By profession By company rather than occupation

By company

Level of job security

Very low High Medium

Page 52: Culture and Management Practice of Italy

Thank You