Case Analysis: Charles Martin in Uganda - Assignment Example

Case Analysis Charles Martin in Uganda Executive Summary The case discusses the delicate business situation which the Vice-President of Hydro Generation (HG) is facing. One of his best liaison officers, Martin has been found to have employed questionable practices in the commissioning of the Ugandan project. However, his work has been exemplary, he has displayed exceptional cultural sensitivity and all timelines and budgets have been adhered to. Under such circumstances, how does Green decide on the future course of action? Should he retain Martin in his role and provide him support? Or is it more appropriate to appoint another person in his place? We analyze the case and recommend that Green should retain Martin because of his knowledge of the local business conditions. He has developed a good network with key people in the Government. Besides he would be able to induct any new entrants who may be deputed by HG into the Ugandan project. However, we need to issue a cautionary note to Martin. He should be immediately asked to refrain from all unethical practices and he needs to report any unfair demands directly to Green so that the issues can be tackled with due regard to the cultural sensitivity. Additionally, Martin needs to develop the role of a functional manager who can cross fertilize ideas and transplant best practices from the host nation to the local country. Introduction The case discusses the cultural issues that Hydro Generation (HG) has faced in Uganda and the decision point faced by the vice-president Green. Martin as the liaison officer for HG has proved to be extremely capable and has completed all the tasks on time. At this juncture, Green ponders over some of the methods adopted by Martin. While some of them seem to go against the stronger views held by American companies, some of the approaches seem to be completely unethical and unfair. Under these circumstances, Green needs to decide on the next crucial phase of the project: should he continue to retain Martin as the chief liaison officer overseeing the entire project? Case Analysis Question 1 has to do with an understanding of cultural aspects of doing business in Uganda. We have insights from the case here. Uganda has largely been a developing nation thus far with the progress not percolating down to the lower strata of society. It has not had a stable government though Multinational companies and their operations are well encouraged. Some of the cultural aspects points to a backward, superstitious nature wherein tribal sacrifices and soothsayers seem to hold sway over cold logic and reasoning. Culture could be defined as a system of knowledge and standards adopted for perceiving, believing, evaluating and acting (Allaire & Firsirotu, 1984). Culture is a system of socially transmitted patterns of behavior that helps people relate to their environment. It develops gradually over time and is often influenced by social and economic progress also. A simpler definition has been put forward by Hofstede (1984) who described it as a collective programming of the mind that helps distinguish one category of people from another. From the case, we also observe certain patterns of Ugandan society. They tend to favor nepotism and are largely driven by a commitment to their family and kin. A stronger bonding and accountability towards the social circle seems to take precedence over business commitments. Both attributes could affect the operations of a multinational company interested in doing business in Uganda. Firstly, superstitious beliefs could hamper usual logical decisions that rely on business judgment and analytical outcomes. Obviously, multinational companies would be driven by logic and rationale. They would be offended if superstitious beliefs posed hurdles to business commitments and operations. Martin has however tried to blend in with the locals by adopting their cultural practices and participating in their rituals. This makes a strong point in his favor for he has understood the cultural diversity and sensitivity (Trompenaars, 1993; Eddy, Hall & Robinson, 2006) even as he was engaged in executing the business end of the project. Even while selecting a location for his residence, he has consciously found a place where Ugandans are the majority. Similarly, businesses are dependent on talent recognition and tend to focus on competencies. Under such circumstances nepotism could act as a bottleneck. Multinational companies such as HG hire based on skills and talents. However, Ugandan culture seems to be oriented towards favoring friends and family members for positions in companies. We have evidence that Martin has also resorted to Ugandan ways of hiring. He has hired friends and relatives of Ugandan locals who are well connected to people in critical positions such as Import clearance. With this he hoped to get clearance for any imports quickly and with minimum fuss. To answer Question 2, we assess the case situation from two different viewpoints. Green’s view is an ethnocentric view since he believes that the American way of doing things is right and that it has to be merely replicated in Uganda for successful implementation of the project. What could be influencing Green’s view? It is quite possible (since the case does not mention it explicitly) that Green has grown up in the American corporate culture. He may not have exposure to an African country’s way of getting things done. Moreover, the social and business network in which Green has moved up in the organization could hold a different view of things. Green’s mentality is more tuned towards a defined way of working and within the legal boundaries set out by the country. We can look at Green’s perspective from a different angle. For one thing, he might have been exposed to an organization in which structures and hierarchies are clearly defined. There could be a well-laid out procedure for executing projects and responsibilities. Under such circumstances, Green may view even a foreign country as just an extension area where the host country approach would work perfectly. Martin however has a polycentric attitude to the project. This is known from the fact that he has attempted to blend in with the local community at Uganda. He has chosen to stay in the residential area of Ugandans. He has even gone to the extent of participating in animal sacrifices. Besides, he has no qualms about hiring the right locals for various routine, operational tasks at HG. He has also taken references from locals for hiring people in critical positions. What factors have influenced Martin’s attitude? The case tells us that Martin has worked for several years in African countries. He consciously wanted to study their culture and ways of doing business. Since he was passionate about African culture and work ethics, he volunteered to take up the post of liaison officer for HG. Hence we can say that a prior knowledge of Uganda and a deep interest in their culture has influenced Martin’s attitude. While relating the situation to research findings, we come across some interesting insights. Hofstede (1980), in his study of culture across several nations has observed striking differences. He has basically divided country orientations towards culture in terms of power distance, collectivist-individualist, uncertainty avoidance and masculine-feminine. Applying this logic, we can clearly see what while HG in America faces less power distance, the social structure is tuned towards the individualistic way of thinking. However, in Africa, power distances and hierarchy matter; it is a collectivist culture. At HG, Martin is fully aware of the differences between America and Uganda in the cultural context. He has sought to take advantage and therefore he has identified himself as being eager to adapt to the Ugandan ways of doing things. In Uganda, the collectivist mentality is prevalent as friends and relatives are keen to get employed with HG once they someone who is already working with the firm. Looking at another perspective, noted authors Johanson & Vahlne (1977) talk about a stage-wise model of internationalization. What is important here is the establishment of strong social and business networks (Welch & Welch, 1996) which then lead to deeper commitments. Martin has effectively tried to establish strong local networks before moving onto more critical stages of the project. However, Green thinks he can simply transplant American ideals and corporate practices to Uganda. He does not perceive the psychic distance (Johanson & Vahlne, 1977). While it is true that Martin will always be perceived as a foreigner in Uganda, he still seeks to move up the rankings, reduce his vulnerable position and become an outsider (Johanson & Vahlne, 2009) through establishing stronger social networks in the foreign country. We now approach question 3. Martin has attempted to grease palms, curry favor with people in key positions and participate in tribal activities in his efforts to execute the project for HG. Green has frowned upon most of these actions and has been very concerned especially about a lot of unethical and corrupt practices. It is clear that a lot of organizations place ethical compliance (Tyler, Dienhart & Thomas, 2008) high on their priority list. Ethical climate has been found to influence job satisfaction; here, both the individual and the organizational ethical climate matter (Parboteeah et al., 2010; Wang & Hsieh, 2012). We look at this issue from the perspective of Martin and Green separately before arriving at a verdict. Look at some of Martin’s attempts to blend with the local community. His hiring practices, location of his residence and participation in tribal sacrifices. So far, he has merely tried to adapt himself to the different culture. Yet his views and orientation are still in stark contrast to the American way of doing things. However, Martin has not stopped at this stage. He has also bribed a few officials to obtain the right permits and licenses for the project execution. He has probably given unmerited favors to government officials. According to Green’s perspective, Martin should have stayed aloof, identified himself with the American expatriate community and socialized only with them. While this view is very much ethnocentric, it is just what Green himself would have done under similar circumstances. Green is worried about bribes and corrupt practices that have been encouraged by Martin. His concern is valid: if unethical practices continue, there could be a point when it catches media attention and then HG as a corporate would face serious repercussions. Green’s view with regard to corrupt practices and unethical means to secure permits and licenses is correct. In the long run, it would only result in a bad name for the company. Besides, it could escalate to a level, where for every single action of the company, there could be a Ugandan official asking for facilitating payments (bribes). Such a situation is wholly undesirable and Martin’s actions in this regard are definitely unethical. If there are lawsuits against the company, then it could lead to expensive legal wrangling, delaying projects indefinitely and leading to economic losses. If Martin had not been a member of the project team, then a lot of things might have been stalled or would have been very slow. Martin has been quick to adapt and make use of the local talent. Besides, he has tried to conform to the patterns of Ugandan culture. First, we shall look at things that would have worked. Then we shall also discuss issues that may have stalled if Martin had not been part of the project team. With regard to technical competencies, HG was obviously quite strong and could manage the procurement and planning well. Hence with regard to getting equipment on the ground, HG would have been able to get it done. Perhaps, there would have been more delays since HG would have been acting as a foreign agent trying to establish a project in Uganda. In terms of obtaining unskilled and semi-skilled labor, HG might have faced problems. HG would have been able to do the installation part of the project comfortably because it would not have posed a threat to the Ugandan rural populace. HG may have faced problems on the following fronts: a) issue of permits and licenses, b) hiring of local talent and c) delay in import clearances, etc. Additionally, had a liaison officer with an ethnocentric attitude been in charge, a real social bonding may not have taken place. On the positive side, perhaps HG could have avoided unethical practices. It would not have participated in some of the tribal rituals. In other words, it is possible that without Martin HG might have done the preliminary work with a foreigner, ethnocentric attitude. All that we can assume is that the project work may have had more delays. Question 4 seeks to know about the near future scenario: whether HG should retain Martin in his role as the liaison officer. We can answer this by understanding some of the upcoming challenges. Once the hydro-electric project is commissioned and ready for operation, the flow of water would be controlled. At times there could be flooding and extensive damage to some villages. Now the socio-cultural issues also come into play. In these circumstances, Martin is well placed to deal with the local authorities since he has already established a good working relationship. Hence it is more prudent for Green to retain Martin in his key role as the project moves onto the next critical role. Drawing some learnings from global, cross-cultural research, we find that a manager working in a foreign set-up dons different hats: he could be a business manager handling strategy, architecture and coordination (Bartlett & Ghoshal, 1992); he could be a country manager responsible for sensing building and contributing and lastly, he could be a functional manager, responsible for scanning the environment, cross pollination of ideas and championing the cause. From the case, it is evident that Martin has donned the first and the second roles with ease. We now proceed to discuss some of his serious lapses and how he can correct them. One of Martin’s chief failings has been his inability to incorporate fair and just practices. He has resorted to quick fire, short-cut methods by way of bribes to get things done. Besides he has not donned the role of a functional manager (Bartlett & Ghoshal, 1992) who could cross fertilize ideas and transplant best practices from the host nation to the foreign nation. This is a point of weakness that Martin needs to address. The vice-president Green is fully aware of this and it is his responsibility to ensure that Martin quickly makes amends: 1) cutting down completely on ‘facilitating payments’ or bribes, 2) develops social and business bonds with the American expatriates by giving equal importance to the local community as well as the expatriate community and 3) help the new technical crew who would now join the Uganda project in its final and crucial phase. References Allaire, Y. & Firsirotu, M.E. 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