Problem Solution: Riordan - Essay Example

?Running head: PROBLEM SOLUTION: RIORDAN Problem Solution: Riordan Goes Here of Phoenix Problem Solution: Riordan Riordan has successfully bought a new facility in Guangzhou to complement production in its current site, as business improves, and in order to grow the business moving forward. The competition for scarce workers has meant that Riordan must source talent from a pool that consists of workers from different nationalities. The challenge is to deal with the cross-cultural management issues that are sure to arise as these workers work together to meet Riordan's business and production goals. The issue is how best to deal with such cross-cultural issues, and what the opportunities are for Riordan in terms of the best way to set up a workforce that manages its multicultural workforce in the most excellent and effective way possible (Guthrie, 2012; Yang et al., 2009; Tan & Snell, 2002; Dunfee & Warren, 2001; Chua et al., 2008; Richter, 1994; McCabe et al., 1993) . Situation Analysis Issue and Opportunity Identification The Hangzhou operations had met with some level of success, to a level where Riordan had come to the realization that there is business merit in expansion. The expansion has proceeded in the form of a new plant, and it was found feasible to acquire an existing plant likewise in Hangzhou, and to convert the plant and make it ready operationally to complement the initial facility and start producing for Riordan. While the facility and the issues and difficulties relating to putting the facility up and running to the exact specifications and needs of the firm, there is a problem with regard to sourcing skilled labor for the new plant. This is owing to the intensified competition for talent in the province, a proxy for the success of Riordan's line of business and the success likewise of competitors to Riordan who are also in the province with their own facilities, attracting and keeping their own share of the talent pool. There is an opportunity, as outlined in the case, to hire talent that are non-Chinese, and this talent pool is a cultural mix bag, with potential workers coming from a diverse nationality pool, including Koreans, Pakistanis, Americans, Indians and the local Chinese. Top management itself is composed of westerners and a plant manager who is Chinese, steeped in the local culture, has a wide net of contacts in the province, and has under his belt a long work experience in the industry. The issue is that the plant needs workers, and because of the shortage of skilled labor it is inevitable that the company will have to employ workers from this varied mix of talent, nationality and cultural wise. The opportunity is in making this diverse talent pool work together so that Riordan realizes its expansion and production goals, and continues to succeed. This requires being able to navigate through the potential cross cultural management issues and problems that may arise, and that may impede production and Riordan's business goals (Guthrie, 2012; Yang et al., 2009; Tan & Snell, 2002; Dunfee & Warren, 2001; Chua et al., 2008; Richter, 1994; McCabe et al., 1993) . Stakeholder Perspectives/Ethical Dilemmas On a macro level there are five sets of stakeholders. One set of stakeholders is made up of management. The second set of stakeholders is made up of the workers. A third set of stakeholders is made up of suppliers. The fourth set of stakeholders is made up of the end-consumers. The fifth set of stakeholders is made up of the members of the surrounding community, the province and the government. Within these sets of stakeholders one can go several layers down and come up with more finely grained definitions of stakeholders within those particular groups. Management, for instance, can be thought of as being composed of several stakeholders, one of them being the duo of Dr. Riordan and Charles Williamson making up the top management, and the duo of Robert Lord and Lu Chen making up country or province management. Worker stakeholders can be split into a number of stakeholder groups too, by nationality, by function, and by union or political affiliation (Guthrie, 2012; Richter, 1994; McCabe et al., 1993). Management interests, as a stakeholder group, include that the plant should meet its production targets, and be viable for the long term. It has a right to ensure that the plant recoups firm investments to make it run, and to employ workers to make sure that that happens. Its values may be utilitarian, and that is meeting business goals, though of course with an eye towards worker welfare. Its espousal of sound cross cultural management is not an end in itself, but to make sure that workers from different nationalities and ethnic backgrounds work together towards meeting company goals (Guthrie, 2012; Richter, 1994; McCabe et al., 1993). Workers' interests, as a stakeholder group, are to make sure that they are compensated well, and have some measure of security of tenure. Also, it is in the workers' interests that they are able to work and function well with others, especially since their work depends on others to be effective. They have a right to a workplace that if diverse culturally, allows them to fulfill their work functions effectively and well. These latter constitute their values, that they function and work effectively in this workplace, and are compensated and given security of person and tenure (Guthrie, 2012; Richter, 1994; McCabe et al., 1993). Lu Chen can be considered as a somewhat special interest person, because his interests are not only with regard to making sure that the plant works well, but also that he is able to preserve his good relation among his contacts and among the people in his network. This is very important for Lu Chen, given that he is a native with his whole career on the line, and his Guanxi being something that he will have to go back to no matter how his fortunes fare at Riordan. It is important that cross cultural issues are solved, because one, it is vital to Riordan making the plant work well, and two, that his long-term career options are tied to the new plant meeting targets. This is to be done without him losing his face and his stature in his network of contacts in Hangzhou province and in China. Therein lies his values as well, straddling two places, work and career, and his place in the Chinese network of work relationships (Guthrie, 2012; Yang et al. 2009; Tan & Snell, 2002; Dunfee & Warren, 2001; Chua et al., 2008; Richter, 1994; McCabe et al., 1993). There are potential conflicts of interests and values in this scenario. One is with regard to the conflict of values between management and the workers. Worker interests may not always be aligned with management interests to make sure that all workers from all nationalities are able to work together, especially in cases where working together may mean some groups compromising some of their cultural values, for instance. In a workplace of differing cultures, conflict is inevitable, and potential points of conflict may be cultural values that different groups may hold within the workforce. Those values conflict among workers may adversely affect plant performance, which would then adversely affect the values of management, centered on making sure that the plant meets its production targets. In some cases management will have to face ethical dilemmas and make some hard decisions where cultural values are involved, and make some decisions that may run counter to the cultural values of some workers, in order to meet production targets (Guthrie, 2012; Yang et al., 2009; Tan & Snell, 2002; Dunfee & Warren, 2001; Chua et al., 2008; Richter, 1994; McCabe et al., 1993). Problem Statement Given the circumstances that Riordan Manufacturing is in with its new plant and with its need to hire workers from different nationalities in order to run the plant and meet the company’s production and business goals, how can Riordan Manufacturing leverage current capabilities and cross-cultural management competencies in order to for the firm to realize its goals for the new plant? (Guthrie, 2012; Yang et al., 2009; Tan & Snell, 2002; Dunfee & Warren, 2001; Chua et al., 2008; Richter, 1994; McCabe et al., 1993) End-State Vision The company vision for the Guangzhou plant is an operation that efficiently and profitably meets its production and business targets, making use of a productive, talented and happy workforce coming from different nationalities and working together in a workplace culture that is mindful of cross-cultural management issues, and successfully navigates those issues as part of the company culture, and in aid of the plant's and the company's long-term success. (Guthrie, 2012; Yang et al., 2009; Tan & Snell, 2002; Dunfee & Warren, 2001; Chua et al., 2008; Richter, 1994; McCabe et al., 1993) Alternative Solutions 1. Issue: Different stakeholders have different values that they bring into the table as they negotiate with each other to achieve common goals (Guthrie, 2012; Yang et al., 2009; Tan & Snell, 2002; Dunfee & Warren, 2001; Chua et al., 2008; Richter, 1994; McCabe et al., 1993). Opportunity: There is an opportunity to engage outside consultants who will guide Riordan through the process of coming up with a new plant work culture that will be mindful of the cross-cultural management issues that are sure to crop up in such a multicultural workforce setting Alternative Solution: Engage outside consultants who will help Riordan set up a new organizational culture for a workforce that will consist of members from different nationalities 2. Issue: Lu Chen, while being entrenched in the local work network of professionals in the field, and while having many years of experience in the industry, may lack the experience to deal with workers from cultural backgrounds that are neither Chinese nor Western, but are Indian, Korean, and Pakistani (Guthrie, 2012; Yang et al., 2009; Tan & Snell, 2002; Dunfee & Warren, 2001; Chua et al., 2008; Richter, 1994; McCabe et al., 1993). Opportunity: There is an opportunity for someone like Charles Williamson, given his international background and experience working in different cultural settings, to coach the country management, in Robert Lord and Lu Chen, on cross-cultural management, and therefore aid in making sure that the company achieves its target with a harmonious workforce in place Alternative Solution: Engage Charles Williamson or external consultants to coach Robert Lord and Lu Chen on managing a cross-cultural workplace. 3. Issue: Existing management talent may not be adequate to manage a cross-cultural workplace, even with the international experience of top management. Lu Chen in particular, looking out for his place in the local Guanxi, may have difficulty dealing with a cross-cultural workplace without compromising on his local Guanxi and Chinese values (Guthrie, 2012; Yang et al., 2009; Tan & Snell, 2002; Dunfee & Warren, 2001; Chua et al., 2008; Richter, 1994; McCabe et al., 1993). Opportunity: If current management is deficient, there is an opportunity to hire new managers who will be good at managing a cross-cultural workplace ,with the right experience Alternative Solution: Hire additional managers to manage the cross-cultural workplace Analysis of Alternative Solutions The primary goal is to meet business targets, and the hiring goals are subordinate to that. This is why the first goal in the matrix/table had the highest mark of 5, while the two hiring goals, the third tied to building a work culture that excels at cross-cultural management, are rated 4, still high, but not as high as the ultimate goal of meeting production and business targets. For the first alternative, while it may rank high in terms of the first two goals, in terms of the third goal, which is building the culture, this is not a sure thing, given that consultants do not have a stake in the firm as much as an insider or a member of top management may have. So for this third goal the first alternative was given a mark of three, or just a middling mark, for the second alternative, because Williamson has an insider's mentality, and has an insider's stake on the process, there is a much larger chance of success. This is why, across the three goals, the marks are high. For the third alternative, there is no guarantee that new managers will be loyal. Moreover, the firm is in it with Lu Chen for the long haul, this alternative therefore may not work. This is reflected in the low marks for each of the goals (Guthrie, 2012; Yang et al., 2009; Tan & Snell, 2002; Dunfee & Warren, 2001; Chua et al., 2008; Richter, 1994; McCabe et al., 1993) Risk Assessment and Mitigation Techniques With the first alternative, there is a risk of low engagement by management and by the consultants themselves, and also by the workers eventually. This is because consultants may not have a personal stake and a long term stake in the success of the firm. This risk has a high probability of occurring, with the severity being medium, because it may impact morale and operations. An insider must have ownership of the process, to mitigate the risks. This insider may be the head of China management for Riordan (Guthrie, 2012; Yang et al., 2009; Tan & Snell, 2002; Dunfee & Warren, 2001; Chua et al., 2008; Richter, 1994; McCabe et al., 1993). With the second alternative, there is a low risk of the coaching failing, and the severity is low too. This is because coaching will be constant, and because Williamson has a stake in making the coaching work. Also the long work experience working together should help. Coaching must be constant, and if necessary existing managers may take formal classes in cross-cultural management (Guthrie, 2012; Yang et al., 2009; Tan & Snell, 2002; Dunfee & Warren, 2001; Chua et al., 2008; Richter, 1994; McCabe et al., 1993). With the third alternative there is a risk that new managers may not be loyal, and that old management may be turned off. The risk is high, and the severity is high. New managers should report to Lu Chen and Lord (Guthrie, 2012; Yang et al., 2009; Tan and Snell, 2002; Dunfee and Warren, 2001; Chua et al., 2008; Richter, 1994; McCabe et al., 1993) . Optimal Solution The matrices and the tables on risk and on the alternative solutions all point to the optimal solution to the problem being the engagement of Williamson as guru and coach to guide China management when it comes to making hiring decisions for workers of different nationalities, dealing with the workers, and dealing with the cross-cultural management issues. The coaching will be continuous and hands-on, and should work, given that the members have a stake in making things work, and coaching will be a part of the management communication process and the rapport that is already in place among those involved – Lu Chen, Lord, Williamson, and even Riordan himself. If necessary, China management may enroll in formal classes, and even engage outside help, but it is clear that China management will have ownership of the whole process (Guthrie, 2012; Yang et al., 2009; Tan & Snell, 2002; Dunfee & Warren, 2001; Chua et al., 2008; Richter, 1994; McCabe et al., 1993). Implementation Plan Williamson is tasked to come up with a coaching and hiring plan for Lu Chen and Lord by the first quarter of 2013. Hiring will be done by the second quarter, and so will the commencement of operations. From here on monitoring of operations and of progress of management in achieving human resources and business goals shall commence (Guthrie, 2012; Yang et al., 2009; Tan & Snell, 2002; Dunfee & Warren, 2001; Chua et al., 2008; Richter, 1994; McCabe et al., 1993) Evaluation of Results Management is to set production and financial/sales revenue targets for the new facility. This will be the metric for determining if the business goals of the facility are met. Staffing levels shall be the metric for worker acquisition. By the second quarter of 2013, full staffing is the target, with all positions necessary to meet production targets filled (Guthrie, 2012; Yang et al., 2009; Tan & Snell, 2002; Dunfee & Warren, 2001; Chua et al., 2008; Richter, 1994; McCabe et al., 1993) Conclusion Because Riordan has already committed considerable financial resources to buy the new facility and to make the facility run, there is no alternative but to source workers from a skilled labor pool consisting of workers from different nationalities. This means dealing with cross-cultural management issues. The preceding analysis reveals that the best way to prepare for this is to coach current management on cross-cultural management, on the job, and making use of available in-house talent in Williamson (Guthrie, 2012; Yang et al., 2009; Tan & Snell, 2002; Dunfee & Warren, 2001; Chua et al., 2008; Richter, 1994; McCabe et al., 1993). References Chua, R. et al. (2008). Guanxi vs. networking: Distinctive configurations of affect- and cognition-based trust in the networks of Chinese vs. American Managers. Journal of International Business Studies (2009) 40. Retrieved from http://www.palgrave-journals.com/jibs/journal/v40/n3/abs/8400422a.html Dunfee, T., & Warren, D. (2001). Is Guanxi Ethical? A normative analysis of doing business in China. Journal of Business Ethics 32 (3). Retrieved from http://www.springerlink.com/content/n5680w3837470361/ Guthrie, D. (2012). Building sustainable and ethical supply chains. Forbes. Retrieved from http://www.forbes.com/sites/dougguthrie/2012/03/09/building-sustainable-and-ethical-supply-chains/ McCabe, D. et al. (1993). Values and moral dilemmas: A cross-cultural comparison. Business Ethics Quarterly 3 (2). Retrieved from http://www.jstor.org/discover/10.2307/3857367?uid=3738824&uid=2129&uid=2&uid=70&uid=4&sid=47698827712037 Richter, A. (1994). Global business ethics: When values clash. QED Consulting. Retrieved from http://qedconsulting.com/news/wvc.html Tan, D. and Snell, S. (2002). The third eye: Exploring Guanxi and relational morality in the workplace. Journal of Business Ethics 41 (4). Retrieved from http://www.springerlink.com/content/q306460p3013j600/ Yang, H. et al. (2005). Cultural perspectives: Siding in a workplace dispute in China. International Journal of Cross Cultural Management 5 (3). Retrieved from http://ccm.sagepub.com/content/5/3/329.abstract Table 3 Table 4 Risk Assessment and Mitigation Techniques Risk Assessment and Mitigation Techniques Alternative Solution Risks and Probability Consequence and Severity Mitigation Techniques Hire external consultants Low consultant buy in and engagement, risk of low worker and management engagement Targets not met, low morale, medium severity Insider, preferably head of China management for Riordan, must own process Engage Williamson to coach China management on cross-cultural management Coaching may be inadequate, low probability Management fails at cross-cultural issues, low severity Constant coaching, formal training if needed Hire new managers with experience at cross-cultural management New managers may have low commitment, existing managers and workers may be put off New managers fail, medium severity New managers must be under Lu Chen and Lord Table 5 Optimal Solution Implementation Plan Deliverable Timeline Who is Responsible Coaching plan for Lu Chen and Lord First quarter of 2012 Williamson Hiring of workers Second quarter 2012 Williamson, Lord, Lu Chen Company orientation and training Second quarter 2012 Lord and Lu Chen Operational management and follow up Second quarter 2012 Williamson, Lord and Lu Chen Table 6 Evaluation of Results End-State Goals Metrics Target Meet production and business goals Production quota, financial results 100 percent production targets met, financial results met Get workforce onboard Staffing levels, production levels 100 percent staffing by second quarter 2013 Read More