Developing managers in the European subsidiary of a UK financial services organisation.

This dissertation is concerned with the cross-cultural communication and relationship-building challenges faced by an internationally diverse group of managers and team leaders operating in the European subsidiary (ESI) of a large British-based financial services organisation.It examines the impact of organisational and national cultures on managerial communication and relationship building. It considers the capabilities needed by managers operating in a European context where the British Parent company has a strong influence in setting ESI's strategic goals yet whose Subsidiary top team lack significant international experience.The research methods used reflect a social constructivist paradigm using a Grounded Theory methodology. The data collection methods involved semistructured interviews; participant observation; document analysis; metaphor analysis; analytical memos and a research diary. The research population covered a number of managers and team leaders within ESI, and the immediate parent company, FSD. The findings from this research study suggest the need for the active 'management of the interface' between the respective Grandparent, Parent and Subsidiary companies, given the impact of culture at organisational, business and national levels. The ability of managers to manage this 'interface' suggests levels and types of managerial capability that might need to be different from those who operate solely in a single-country environment. It also suggests that culture and cultural difference need to be more explicitly articulated and acknowledged to avoid the negative organisational consequences of 'cultural blindness.' (Adler, 2002, p106).Given the conflict and misunderstanding that can occur in cross-cultural exchanges, I suggest that managers in ESI need high levels of cross-cultural competence which combine cross-cultural knowledge and communication skills with a high degree of self-awareness and understanding. Increasing self-awareness and self-disclosure suggests that before we can truly get closer to understanding how to build and sustain effective cross-cultural relationships, within and outside an organisation, we need to understand our own responses and reactions to dealing with 'strangers'. This needs to inform the nature and content of management and leadership development programmes.