Formal Written Report Assignment
Central Global Communication
Understanding Spanish Workers
What American Management Needs to Know
Prepared for
John Smith, Supervisor
Real Estate Development Division
Central Global Communication
Prepared by
William J. Everett, Supervisor
Survey Department, Madrid
Central Global Communication
August 14, 2016
John Smith, Supervisor August 14, 2016
1
Central Global Communication
Real Estate Development Division Survey Department
August 2, 2016
John Smith, Supervisor, Real Estate Development
1234 Enterprise Ave
Baltimore, Md. 21117
Dear Mr. Smith:
It is a privilege to have been selected as the new Survey Department Supervisor in Madrid. As you requested, I have prepared a formal report outlining what upper management in the United States needs to know about operating an effective branch office in Madrid. This report will cover:
Background of Madrid branch office
Conflicts between management & employees
Possible resolutions
Strategies to rebuild employee relationships
As I have not yet spent enough time here to gather effective primary data, this report consists solely of secondary data, however, from reputable sources. I thank you for the opportunity to prepare this report, and would be pleased to further expand on the topics covered herein, via teleconference, or any other convenient media. Sincerely,
William J. Everett Professional Land Surveyor Supervisor, Survey Department, Madrid
John Smith, Supervisor August 14, 2016
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Table of Contents
Introduction………………………………………………………………...3
Background...………………………………………………………………………………….3
Purpose & Scope…………………………………………………………………………….3
What Management Needs to Know………………………………..3
Cultural Context.…………………………………………………………………………….3
Business Culture…………………………………………………………………………….4
Economic Growth in Spain......………………………………………………………….5
Conclusion & Recommendations…………………………………...6
Conclusion………………………………………………………………………………...…...6
Recommendations………………………………………………………………………….7
Works Cited………………………………………………………………....8
List of Figures
Figure 1-Context Box Chart………...………………………………………………….4
Figure 2-Spanish Business Hours Diagram.…………………………………….4
Figure 3-US Business Hours Diagram……………………………………...……...5
Figure 4-Economic Growth Graph……………………….………………………….6
John Smith, Supervisor August 14, 2016
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Introduction
Background
Employee morale and production in Madrid are currently at all-time lows. Previous
management did not fully realize the importance of recognizing local customs, culture, and
accepted business practices. Under the previous regime, many employees became
disgruntled, and thus, productivity has sunk below acceptable standards.
Purpose & Scope
This report aims to determine reasons, and explore possible solutions, for previous
managements’ failure to maintain and continue growth within the Madrid branch. It is
important for Central Global Communications to not only understand what the problems
are, but why these problems have upset so many employees. To reverse the trend of poor
productivity, we must delve into these issues and appease our employees abroad.
What Management Needs to Know
Cultural Context
When expanding internationally, it is important to understand how cultures vary
from one country to the next. From an operational standpoint, context is a key concept that
must be understood. Previous management failed to understand these subtle, yet
fundamental differences.
The United States is known as a low context culture, while Spain is known as a high
context culture. Figure 1, on the next page, highlights the disparities between high context
and low context cultures, relative to the business world.
John Smith, Supervisor August 14, 2016
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Figure 1
(Guffey, 15)
While conducting day to day operations in Spain, it is important to keep these
differences in mind. Prior management was accustomed to western culture, and placed
higher value on individual accomplishments, used “no” directly when inappropriate, and
failed to pick up on non-verbal cues of employees.
Business Culture
Business culture in Spain differs greatly from that found in America. Typically,
businesses in Spain are much more laid back than those in the United States. “They usually
do not put too much emphasis upon work, as they like to
focus on their leisure and live each day to the fullest. In
general, family and social bonds are more important than
a person’s working life in Spain (Business Etiquette)”. This
attitude towards work and family is illustrated in figure 2,
which shows hours in a typical Spanish work day.
Figure 2 (InterNations)
Low Context (USA) High Context (Spain)
Direct Verbal Communication Indirect Verbal Communication
Say “No” Directly Avoid Saying “No”
Rely on Logic Rely on Context
Value Individual Value Group
Prefer Written Information Prefer Visual Information
Lunch From
2-5 PM
End at
8 PM
Begin at
9-9:30 AM
John Smith, Supervisor August 14, 2016
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The reasons for starting work later in the morning, and having a longer lunch break,
are examples of this laid back attitude. Starting later in the morning is much less stressful,
and the longer lunch break allows employees to spend quality time with their families
during the day (Business Etiquette).
Figure 3 By comparison, western work days follow a
much more rigid schedule, starting earlier in the day,
and with a shorter lunch break, as shown in Figure 3.
When previous management took over the Madrid
branch last year, one of the first moves made was to
switch office hours over to a more western style
schedule of 8 AM to 5 PM. This deeply upset our employees by increasing stress and
reducing quality time with their families.
Economic Growth in Europe
One of the keys to successfully running an international business is operating
branch offices in the right locations. Spain is an ideal place to expand Central Global
Communication’s Real Estate Development Division.
Spain’s economy is currently one of the strongest in the European Union. Figure 4,
on the following page, shows Forbes contributor Tim Worstall’s take on the European
economy: “Spain’s economy grew 3.2% in 2015 and is expected to expand by 2.7% this
year, compared to estimates in the euro area of 1.5% and 1.6%, respectively” (Worstall).
Lunch From
12-1 PM
End at
5 PM
Begin at
8 AM
John Smith, Supervisor August 14, 2016
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Figure 4
As long as our employees remain unhappy, production shall remain low, which
means as a company, Central Global Communication misses out on one of the best
opportunities in the Eurozone today.
Conclusion & Recommendations
Conclusion
It is imperative for Central Global Communication to understand the cultural
differences between the United States and Spain, from a business sense. In order to
continue to successfully grow internationally, we must recognize and embrace the
fundamental characteristics that make Spain unique from the United States. Showing our
employees abroad that we understand, respect, and appreciate what makes them unique
will help maintain higher employee morale and happiness, and thus higher productivity.
EuroZone
Spain
0
0.5
1
1.5
2
2.5
3
3.5
2015 Growth % Projected 2016 Growth %
EuroZone 1.5 1.6
Spain 3.2 2.7
P e
rc e
n ta
g e
Annual Economic Growth in Europe
John Smith, Supervisor August 14, 2016
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Recommendations
Based on the compiled data, recommendations can be made to rectify the wrongs of
previous management, boost morale, and increase productivity:
1) Issue a companywide memo
a) Openly introduce upcoming changes
b) Make employees feel valued as a group by staying informed
2) Reinstate customary Spanish business hours
a) Reduce workplace stress
b) Allow employees to spend time with loved ones
3) Boost morale and build a positive atmosphere
a) Utilize group projects & team building activities
b) Set small, achievable goals, early on (Hartley)
4) Conduct an employee survey
a) To better understand problems
b) Find out what employees expect from us
c) Gain valuable primary data for future use
5) Provide employee training in United States
a) Reduce cultural friction
b) Prevent future productivity loss
c) Smoother international transitions
Following the above listed recommendations will improve employee/management
relations in Spain, restore productivity, and provide a template for future expansion into
other growing nations.
John Smith, Supervisor August 14, 2016
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Works Cited Guffey, Mary Ellen., and Dana Loewy. Essentials of Business Communication. Boston, MA.:
Cengage Learning, 2014. Print. "Working in Spain." Community for Expatriates & Global Minds. InterNations.org, n.d. Web.
14 Aug. 2016. Hartley, Jonathan. "Balancing Employee Happiness and Productivity." LeBow College of
Business. Drexel University, 24 June 2016. Web. 14 Aug. 2016. Worstall, Tim. "Spain's Shining Economic Recovery." Forbes. Forbes Magazine, 16 Apr. 2016.
Web. 14 Aug. 2016. "Business Etiquette." Business Culture. N.p., n.d. Web. 17 Aug. 2016 “I have abided by CCBC’s academic honor code on this assignment, and I attest that I have neither cheated in any way nor have I failed to give proper credit to all other sources of ideas and materials.”