Cross Cultural Management Guide Monaco

The guidance offered below is for managers who want to learn more about the management style and business culture of Monaco.

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Being a Manager in Monaco

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Foreign managers working in Monaco are more likely to succeed if they understand the level of formality required.

• In business, it is safest to be formal and reserved in your behavior and expect that your colleagues will be the same.
• Communication is often situational and context-driven.
• When dealing with superiors, communication is formal and follows the rules of hierarchy, while when dealing with one’s peers or friends, communication may be more informal.

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The Role of a Manager

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Newcomers to the Monaco management style should carefully study the corporate culture of specific companies because they may vary from being hierarchical to rather egalitarian.

• Consequently, employees will range from feeling empowered to speak out in the management process, to those who believe it is most important to simply execute the instructions by their leadership.
• Some employees in Monaco do not feel that they are authorized by station, education, or position, to either aspire to leadership or to express themselves freely in management circles.
• Nevertheless many do, and especially with the influence of intercultural working, organizations are tending to rely more heavily on the wisdom of their people and not just the direction of leadership.

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Approach to Change

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Monaco’s cultural readiness for change is developing all the time. Monaco is seen to have a medium tolerance for change and risk. It is important for innovations to have a track record or history noting the benefits if they are to be accepted and implemented.

• The fear of exposure, and the potential embarrassment that may accompany failure, brings about an aversion to risk and the need to thoroughly examine the potential negative implications.
• While in risk-tolerant environments, failure is perceived as a learning process that encourages confidence in future ventures, failure in Monaco causes a long-term loss of confidence by the individual as well as by others.
• Because of this attitude, cultural sensitivity is going to be required, especially when conducting group meetings and discussing contributions made by participating individuals.

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Approach to Time and Priorities

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Monaco is a moderate time culture and typically there may be some flexibility to strict adherence to schedules and deadlines.

• Nevertheless, the expectations of intercultural and global expansion have caused the Monacans to adopt relatively strict standards of adhering to schedules.
• Effective cross-cultural management will depend on the individual’s ability to meet deadlines.

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Decision Making

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It is important to remember that hierarchy in business is strictly observed. Decision-making is done at the highest levels, often without consultation with subordinates or other stakeholders.

• Managers provide explicit instructions on how work is to be performed.
• Employees are expected to adhere to the correct protocol for the situation.
• Employees generally have specific roles and responsibilities and do not cross over into other areas.
• Employees are not criticized or praised publicly.

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Boss or Team Player?

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Monacans like working in teams and collaborate quite well. The communication within a team is generally quite collegial, albeit somewhat direct and blunt. Role allocation within the team is generally quite clearly defined and people will take greater responsibility for their specific task than for the group as a whole.

• Successful management will depend on the individual’s ability to harness the talent of the group assembled and develop any resulting synergies.
• The leader will be deferred to as the final authority in any decisions that are made, but they do not dominate the discussion or generation of ideas.
• Praise should be given to the entire group as well as to individuals.

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Communication and Negotiation Styles

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In terms of communication style, the people of Monaco tend to be formal and polite, and they value good manners and decorum.

• When negotiating, they also tend to be diplomatic and reserved, preferring to avoid confrontation and find common ground.
• As a result of their affluent lifestyle, they are accustomed to a certain level of luxury and prestige, which can influence their negotiation tactics.
• However, they also place a high value on trust and building relationships, so negotiations are often conducted in a respectful and collaborative manner.
• Maintain direct eye contact while speaking.
• You will have to be patient and not appear ruffled by the strict adherence to protocol.
• Monacans prefer a low-key, logical presentation that explains the advantages of the proposal.
• They prefer to compartmentalize their business and personal lives.

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