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 International Management Guides

International Management Guides

Designed specifically for the traveling manager, these short, sharp guides to being a manager in a foreign country offer invaluable insights and practical tips.

Intercultural Management - Hungary

Being a Manager in Hungary

The business set up in Hungary is formal and hierarchical. Cross cultural management needs to adopt a formal approach and pay close attention to hierarchy and status. Hungarians are highly individualistic and proud of their personal accomplishments. They work exceedingly hard and will work extra hours to complete a job to the best of their ability. They enjoy socializing with people from work and do not separate their business and personal lives as is done in many other cultures.

The Role of a Manager

Newcomers to the Hungary 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 Hungary 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 globalization and intercultural expansion, organizations are tending to rely more heavily on the wisdom of their people and not just the direction of leadership.

Approach to Change

Hungary’s intercultural adaptability and readiness for change is medium. Changes are made, albeit slowly, and require considerable amount of thought, planning and evaluation. It would be perceived as imprudent to introduce rapid change, and yet it would be recognized as poor management to resist change unnecessarily. Tradition is valued, thus change is not readily embraced simply because it is new.

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 of embarrassment that may accompany failure mean intercultural sensitivity is needed. While in risk-tolerant environments, failure is perceived as a learning process that encourages confidence in future ventures, failure in Hungary causes a long-term loss of confidence by the individual as well as by others.

Approach to Time and Priorities

Hungary is a moderate time culture and typically and there may be some flexibility to strict adherence to schedules and deadlines. Nevertheless, the expectations of global business have caused the Hungarian to adopt relatively strict standards of adhering to schedules.

Successful cross cultural management will depend on the individual’s ability to provide and enforce timelines.

Decision Making

Hungarians are individualistic and therefore do not always work well in teams. If you plan to use a team, make sure that everyone understands that they have been selected because of their unique talent. Compliment individual members on a regular basis for their contributions.

Conformity is not viewed as a positive attribute. Consensus is often seen as a sign of weakness. On the other hand, there is a strong tendency for managers to be autocratic in their leadership style.

Boss or Team Player?

In post-communist countries, there is a tradition of teamwork inherited from the communal aspects of the previous era where groups and work units commonly met together to discuss ideas and create plans. However, those plans seldom resulted in implementation or results, leading to apathy and cynicism among the workers.

Today the after-effects are still evident among much of the older generation resulting in a lack of drive and energy. The younger generation will participate in teams and share ideas, but they will need to be coached in the process.

Communication and Negotiation Styles

Business is conducted slowly so patience is a necessary cross cultural skill. Do not appear ruffled by the strict adherence to protocol. Hungarians are very detail-oriented and want to understand every innuendo before reaching an agreement. Do not remove your suit jacket without asking permission. Decision making can be prolonged as the person making the decision will often seek input from several stakeholders first. Maintain direct eye contact while speaking. Contracts should be clear and concise.