EUROPE

EUROPE: MULTICULTURAL EUROPEAN COMMUNITY

It has currently 27 member countries adding three more countries for the EU membership: Turkey, Croatia and the Former Yugoslavia Republic of Macedonia.
The European Union started as a consequence of the Second World War.

Facts:

1950 the European Coal and steel community made a union between European countries economically and politically. The main founders are Belgium, France, Germany, Italy, Luxembourg and the Netherlands.
1970 EU adopted its first plan for a single currency to maintain monetary stability. Euro is the official currency but not for all of them. The following map shows the member States using the Euro in red color and those that do not in blue color.

Map taken from the official website of European Union

1973 The six become nine when Denmark, Ireland and the United Kingdom formally enter the EU. Orange color: Member States: Germany, France, Italy, the Netherlands, Belgium and Luxembourg. Yellow color: New Member States: Denmark, Ireland and the United Kingdom.
Map taken from the official website of the European Union

1981 Greece joined to the EU.
1986 Spain and Portugal enter the EU, bringing membership to 12.
1992 The Treaty on European Union is signed in Maastricht, setting clear rules for the future single currency as well as for foreign and security policy and closer cooperation in justice and home affairs. Under the treaty, the name ‘European Union’ officially replaces ‘European Community’.
1993 it was established the free movement of goods, services, people and money.
1995 new member states: Austria, Finland and Sweden.
2004 new member states: Czech Republic, Cyprus, Estonia, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia.

In accordance of ideas the European Union has diversity in their cultures due to the membership into it. And each of them has different strategies to apply in business and different cultures that make them unique not matter if they belong to the same economic alliance. The clear example is the failed presence of Wal-mart in Germany, because one of Wal-mart strategy is the use of customer service in order to offer and aid to customers, they did not consider important to know that Germans do not like being helped just do the things by themselves, though.

CO-DETERMINISM PRINCIPLE IN GERMANY

Nowadays there is a current discussion around the existence of the co-determinism principle in Germany. It consists according to the Euro found in Germany on to two distinct levels and forms of employee participation:

• Co-determination at establishment level by the works council


• Co-determination above establishment level

It means that workers are well represented in the board, influencing company decisions. At this level, co-determination is regulated by three statutes for different sectors of the economy and sizes of company and gives a lot of importance to workers in organizations. Co-determinism was born in Germany in the steel, coal and iron industry in the 1950´s.

Following the co-determinism principle in Germany, there are some arguments in favor and some against it.

Three arguments in favor:

1. The quality of decisions, it is explained as decisions in the company can be made by owners and workers in the same time in accordance to this both will be benefited.


2. Co-determinism makes workers and owners are motivated to work in order to welfare of the company, such as result promoting integration in the company.


3. Giving participation to workers in important decision makes High possibility to achieve innovation and creativity.

Three arguments against:

1. It is considered as a bureaucratic monster, because nowadays it is considered as an old fashion and not competitive principle for modern companies, due to it was created many years ago, which makes it is seen as a routine.



2. Co-determinism damages the interests of shareholders, because their main interest is profit, but the main interests of workers are like benefits to the society, to their family, among others that are not considering profit.


3. The belief that the German industry is sufficiently strong and stable and does not need to apply this concept in order to be more competitive.
   
   

REFERENCES

• Piette, Jean-Jacques. 2004. “Understanding management German style”. Les Amis de L’ecole de Paris.


• The official website of the European Union: http://europa.eu/about-eu/27-member-countries/index_en.htm


• EuropeanFound:http://www.eurofound.europa.eu/emire/GERMANY/CODETERMINATION-DE.htm