Challenges of Bolshevik Biscuit Factory - Case Study Example

Bolshevik Biscuit Factory Executive Summary Fifty percent of all mergers and acquisitions fail, it has been documented, and most of the time different management and organizational cultures are blamed. This may not be true with Bolshevik Biscuit Factory that is struggling to overcome difficulties in its multicultural work environment. Bolshevik was acquired by Danone or Groupe Danone in 1994. Danone is an international food products company with its central headquarters in France, specializing in dairy products, mineral water and biscuits. Formerly based in the New York, it has moved back to Pairs where it has its headquarters there (http://www.answers.com/topic/danone). Since 1992, Danone, although holding a majority share (87%) in Bolshevik, has had only consulting status that changes could take place only with the approval of the Russian management. Danone took full managerial control of Bolshevik from 1997. The present staff at Bolshevik are said to be apparently having problems to include the nuances of having a multicultural workforce (ibid.). This report provides some four challenges met in the case and suggests for changes so that Bolshevik may become compatible with the Danone Group, while allowing for Russian cultural context in fulfilling their objectives. These challenges may somehow overlap in some ways. The facts used in the following discussion lean heavily on the de Vries et al. (2004) case study. Challenge 1) Power structure and reaching out to all or integration. A local Russian worker said, 'We need to understand what the priorities are. This is very clear to westerners because they are working in their own system. It's not clear to us because capitalism is very new to us. It is very important to know what the consequences are for certain actions or non-achievement of tasks. We are playing a new game and the rules need to be explained clearly.' (Quoted from Camiah and Hollinshead. In: de Vries 2004). There is a need to reach out to all workers, no matter how subordinate they are in the power structure of the business. Managers must pass on relevant information to all workers in the system. This means providing equally all employees with what they need to know about career advancement, communication, leadership, management, organizational culture, power, networking, interpersonal skills, and all the other unwritten rules, norms, and cues for success (Copeland 2003). The following ideas can help integrate cultures like those of Russians who prefer a more defined corporate structure where leaders lead and employees follow, with other cultures who like much looser exchange of ideas even on coffee shops (Noik-Benet 2004) - Hold season celebrations that encompass several different holidays and observances under one banner. Establish support networks like clubs for specific groups Use multicultural calendars. Allot to staff three or four discretionary days to cover "non-majority" holidays. Hold season celebrations. Hold a diversity month. Challenge 2) Moving from diverse to diversity-aware organization. There is also the need to be trained in cultural diversity. People from a different cultural background have diverse world views based on religion, philosophy, experience. From diversity to diversity-awareness, groupings should not be emphasized but the wholeness of the organization, therefore as much as possible groups should be treated as one without impinging on the rights of subordinate groups. Diversity awareness training (Payne 2003). Diversity is said to be one of the most serious issues for workers today, but employers are not even prepared for it. They are actually "culturally deprived," not having experienced the kinds of situations arising in today's multicultural settings. Russians and Fins and Americans in Bolshevik or Danone may undergo these trainings. Diversity awareness trainings [offered by some organizations for the purpose] provide an understanding of the issues underlying cultural systems, to help improve communication and its effectiveness in distinct multicultural workplaces. There are hidden meanings underlying communication. These trainings are self-paced and highly interactive and participants work through authentic cases, and learn relevant concepts. Usually covering two-hour period, participants completing this course will: Gain knowledge of issues playing a role in cultural value systems Be able to correctly interpret cross-cultural situations Establish a basis from which to learn more about cross-cultural communication Challenge 3) Leadership styles and establishing trust. There are two fundamentally different forms of leadership: transactional and transformational. Transactional leaders operate within the framework of an existing organizational culture. On the other hand, transformational leaders seek to make more substantial changes based on a clear vision that they have. This vision, they try to instill in others and seek to change the organization's culture and the group's need and wants' (de Vries 2004). At this time, a transformational leader is sought for Bolshevik because it has to be compatible with Danone. Closely related to the challenge of leadership style is the challenge of differing values. Autocratic, dictatorial, despotic, tyrannical, oppressive, illiberal are values not compatible with Danone core values of dependable, trustworthy, authentic, and strict. Danone Core (American and Finnish) Values would facilitate empowerment, involve workforce by providing meaning, encourage people to "own", foster openness and teamwork, exercise discipline and control by providing clear boundaries, give support, create a sense of security (ibid), A French/Russian bicultural/bilingual leader would be the solution to the described culture gap. This person would ideally have working exposures in both countries. The director should manage the change from an authoritarian (tyrannical, oppressive) to an authoritative (direct, strict) rule (ibid). Challenge 4) English Communication styles and proficiency. A local Russian worker was heard to say: 'Russians speak plainly and to the point. Sometimes foreigners, and especially the British, are considered false. They seem so nice and friendly and then they are dissatisfied. Russians do not understand this. If they don't like something they should say it clearly.' (Quoted from Camiah and Hollinshead, In: de Vries 2004). Communication is elemental, for even basic concepts of business like trust, strategy and leadership can have different meanings among Russians. Lee (2005) mentions of 12 dimensions of strategic internal communication among which are integrity and integration, roles and responsibilities, training and support, and structure and process. It is said that the fundamental purpose of communication in an organization is to enable and energize employees to carry out its strategic intent. Communication integrity. Credible communication has integrity, and in integrity is constant and complete consistency between communication and conduct. The organization's formal, semi-formal, and informal voices, if integrated, are credible. Roles and Responsibilities. Each employee has a role in communication, but some have multiple roles. All employees in the organizations should have clearly defined responsibilities for vertical and for lateral communication depending on their position. Such responsibilities must specify what information ought to be communicated, to whom, when, how and why. Regardless of the information or message people communicate, a healthy communication environment would encourage and reward employees for active communication within the organization. Training and Support. Organizations must ensure that all employees have the capability, the tools, and the support to fulfill their responsibilities in recognition of each employee's important role in communication. Support includes a stream of strategic information, channels of upward and downward communication, and the physical facilities needed for good communication. Structure and Process. Communication is a means, not an end, and internal communication should reflect this fact. The fundamental purpose of communication for business is to enhance the performance of the organization. It succeeds only to the extent that it allows and encourages employees to align their work with the organization's goals. Therefore, communication should build alliances within the organization. The need for some workers to be trained in English communication skills is paramount. English is the language of the global village. Because of the growing numbers of non-native English speakers in [multicultural settings] and their educational needs, some companies are beginning to provide training here. It would help Bolshevik a lot if its workers are all adept at the English language because then it would enhance their worker abilities. Programs for non-native English speaking workers. For these programs, literacy requirements for the workers must be systematically analyzed first after which instructional materials are prepared. The types of tasks workers must perform and the corresponding literacy levels necessary must be indicated. Employers, unions, and instructors must be partners in planning, designing, and operating classes. A needs assessment is necessary, answering the following questions, after which a workforce program may be drawn - Why is the site considering an education program for its employees Where did the idea originate, and what was the route it followed through the organizational hierarchy What are the language, literacy, and cultural issues to be addressed Who will measure progress in the program How What is at stake if a certain literacy level is not attained by the program's end Ribbink (2003) outlines seven steps managers can take to ensure that communication is tapped effectively for business - Learn how the source culture best receives communications. Train international employees early and often, including the non-foreign-born Practice open-door communication-carefully In company-wide communications, avoid jargon and slang. Play by the rules and stick to business. Andragogy. Experienced teachers know adults are taught in a different way from teaching children because they are more responsible in their learning. Here, learning need not be strictly structured as to time, place, method. The mentor may simply provide content to be learned by chunks and then both mentor and learners can meet for discussion at a later time. In other words, the mentor is greatly a facilitator, checking from time to time the learners' progress. Since the English language is the subject, this needs a systemic approach. This means the learner not only read the language and write the language, but speak the language and think the language (Personal experience). Games may be designed in such a way that learning is not painful but fun. Speaking the language may require fines when caught speaking another language at some time of the day agreed upon. Thinking English may also make use of games like dreaming in the language, requiring snappy responses to questions, translating outright vernaculars into English, and the like. In sum, learning English the fastest way is represented as follows - Read Write Speak Think E n g l i s h Figure 1. The more a learner does these activities with the English language, the better enhanced his learning. References 'Building and Maintaining a Diverse and High Quality Workforce,' 2000, Available at http://www.opm.gov/Diversity/diversity-3.htm 'Groupe Danone SA,' 2005, Available at http://www.answers.com/topic/danone 'Training in racism awareness and cultural diversity,' Home Office Development and Practice Reports 2002, Communications Development Unit, London, Available at www.homeoffice.gov.uk/rds/pdfs2/dpr3.pdf Copeland, L. "Managing a Multicultural Workforce.' 2003. California Job Journal, Available at http://www.jobjournal.com/article_full_text.aspartid=1001 De Vries, K; Florent E, and Pavlovsky, P. 2004, "Waking the Bear; 'Danonizing' the Bolshevik Biscuit Factory," Fountainebleau: INSEAD, Available at andidas.deviantart.net/projects/academic/InternationalBusinessOperations_DanoneCaseStudyReport.pdf Lee, T.J. 2003, 'The Twelve Dimensions of Strategic Internal Communication.' Melcrum Publications, Available at: http://www.melcrum.com/cgibin/melcrum/eu_content.pldocurl=article%20cc%2012%20dimensions Narsee, S. 2001, 'Some Perspectives on Literacy and Workplace Communication within a Culturally and Linguistically Diverse Vocational Training Institution in South Africa,' Available at http://ultibase.rmit.edu.au/Articles/may00/narsee1.htm Noik-Bent, S. 2004, 'By being visible: How to manage multicultural maze,' Available at http://www.promptinfo.ca/mediaGlobeNov24_BeingVisible.html Payne, N. 2003, 'Cross Cultural Solutions for International Business.' Kwintessential Ltd. Language and culture specialists database, Available at: http://www.kwintessential.co.uk/cultural-services/articles/cross-cultural-solutions-international-business.html Ribbink. K. 2003. 'Seven Tips for Communicating in Today's Diverse Workplace,' Working Knowledge Newsletter. Harvard business School, Available at http://hbswk.hbs.edu/item.jhtmlid=3266&t=career_effectiveness Read More