Management and the External Environment Influences - Case Study Example

Internationalisation is an aspect that many organizations in the twenty first century have taken advantage of. This has been heightened by the increase in globalisation in world economic markets. As organisations continue to embrace globalisation, outsourcing becomes a common practice therein. This includes outsourcing of knowledge workers and other professionals. Leadership styles are very essential as organisations embrace internationalisation or globalisation. There are various leadership styles that can be incorporated in overall management of organisations. This includes democratic or participative, authoritarian and free reign. This paper analyses case study that relates to South Africa and Australia. (Bartol, 2005) This paper therefore looks at the aspects that would assist South African and Australian managers before being sent on overseas assignments. It further elaborates the strategy that Monash South Africa adopted in establishing a campus in South Africa. The paper then shows the strategy that South African Monash campus would have adopted in order to enhance effectiveness. This paper finally explains why it would be better for Australian Companies to set up joint ventures with partners in other countries like South Africa and China rather than stand alone operations. (Bartol, 2005) An overall analysis of the case study shows differences in leadership styles between Australian and South African managers. It is quite essential to note that the environment has great influence on leadership style that is adopted in an organisation. This also includes the culture present in the organisation. The case study reveals that South African organisations have more of authoritarian style of leadership. (Dessler, 2001) This is highly depicted in language that is used by senior executives when addressing junior employees. They tend to use the word ‘must’ and even raise their voices. On the other hand, Australian managers are used to a democratic style of leadership that involves negotiation in order for both parties to come to a consensus. (Bartol, 2005) When managers from Australia were sent to South Africa, their leadership style was viewed as weak by other employees. On the other hand, managers from South Africa to Australia were perceived to be too domineering and hence their leadership style did not bear much fruit. Various strategies would have been put in place before managers in both nations were sent out on overseas assignments. One of this is whereby the managers would have undergone training and development as concerns the organisations that they were to manage in overseas nation. (Dessler, 2001) In this case, they would have been educated and trained on leadership styles that are currently used in the organisation. This includes aspects of culture and how employees perceive different styles of leadership. Organisational behaviour is also an aspect that highly relates to leadership styles in an organisation. They should be enlightened on behavioural aspects that relate to leadership. (Bartol, 2005) Leadership behaviour in work includes; directive, supportive, participative and achievement oriented. They are concerned with people feelings and making things pleasant for the followers and defining tasks requirements and other aspects of the work agenda. The type of leadership adopted highly influences the relationship between the leader and the followers. Therefore new managers need to be highlighted on organisational behaviour evident within the organisations that they join. This would have enabled them to go with an informed mind on what employees expect in terms of leadership styles. (Hilltop, 1994) Another strategy that would have been implemented is that the managers would not have started their roles of leadership immediately in the organisations. They would have been given some time for orientation with the organisation, other managers and employees in the organisation. (Hoberman and Mailick, 1992) Interaction with managers in the organisation and through observation would have enabled the new managers adjust their leadership styles to the new environment. Managers in the organisations would also have oriented the new managers on various leadership styles that work in the organisation and the culture therein. This would have allowed managers to adapt to differences in leadership styles evident between the two nations. (Hoberman and Mailick, 1992) In managing the process of internationalisation, Monash South Africa adopted a strategy of outsourcing. This is whereby the management outsourced expatriates from neighbouring nations to be managers in the institution. This shows that expatriates from neighbouring nations were somehow given an upper hand as compared to those in South Africa. Another factor that would have influenced this is the fact that it is easy to get expatriates from neighbouring nations than sourcing all of them from within the nation. It is quite imperative to note that several senior staff from Australia had been sent to South Africa on expatriate basis. This strategy never worked well because both Australian and other expatriates from other nations were not conversant with the business environment in South Africa. This resulted in a case whereby the local South African AA quotas were not met. The case study clearly illustrates that this situation led to loss of thirty million dollars by the year 2006. This clearly shows that the initiators of the project did not carry out their research on the external environment before implementation. This is in terms of political, economic, socio-cultural, technological and legal factors that could either affect the campus positively or negatively. (Hilltop, 1994) Given that Monash South Africa had lost so much on this venture it would have made program that all businesses in South Africa are obliged to implement. This is whereby all businesses in the nation have to employ woman from South Africa as a first priority. This according to the affirmative action earns the organisation most points. (Hilltop, 1994) The next priority is then given to a black man of South African origin. In case there are other vacancies in the organisation they can then be given to a coloured female and then a coloured male in that order. If the organisation still has other vacancies then they can be given to female and then male Indian. The last priority is then given to white female then white male. (Hoberman and Mailick, 1992) This clearly indicates that the organisation should have given South African citizens the first priority of employment before giving to neighbouring nations. The organisation would also have carried out research on the South African environment to ensure that all necessary laws and regulations are followed to the latter. The overall analysis of the case study shows that it would be better for Australian Companies to set up joint ventures with partners in countries such as South Africa and China. (Maundy, 2001) This is a better strategy rather than having stand alone operations. This is because an analysis of Australian organisations shows that they highly use participative leadership style. An analysis of South African and Chinese organisations shows that they use authoritarian style of leadership. Joint venture with partners in countries like South Africa and China will help Australian Companies to incorporate authoritarian style of leadership is very essential in management. (Maundy, 2001) This does not mean that it is the best style of leadership. Research carried out by Robbins, (2004) about leadership shows that there is no single style of leadership that is effective. All leadership styles need to be implemented at different times in an organisation depending on the situation at hand. This joint venture will also result in a situation where organisations will have cultural diversity. (Robbins, 2004) This will enable the Companies to serve its different customers in a much better way. This is because the management and employees will be in a position to understand and even appreciate cultural diversity in its customers. Joint venture with of Australian Companies with South Africana and Chinese organisations will enable the Companies to have expatriates from these nations. They will act as advisors on legal matters of the land that the Companies need to adhere to. This is more so when the Companies are based in South Africa and China. They will enable natives to feel that they are part and parcel of the organisation and that it is of benefit to them. (Robbins, 2004) In conclusion, South African and Australian managers need to go through training before being sent on overseas assignments. This will enable them to know leadership and management styles that work in nation they are being sent to. They also need orientation on organisational culture, employee behaviour and leadership styles before they are allowed. Monash South Africa adopted a strategy of outsourcing expatriates from nations that neighbour South Africa. The campus would have adopted a strategy that relates to the Affirmative Action in the nation. This is whereby the first priority would have been given to female expatriates from South Africa and then black male as the AA stipulates. Australian Company joint ventures with partners in countries like South Africa and China will enable the organisation to have a balance in leadership styles. This includes incorporation of both authoritarian and participative leadership styles. All these are necessary in enhancing effectiveness in the Companies. Read More