Merrill Lynch and the Main Reasons for Challenges - Case Study Example

Table of contents Introduction 2 Case analysis 2 Problem identification 2 Measures that can be taken to resolve the problem identified 3 Conclusion 6 References 7 Introduction The main reasons for challenges that are encountered in cross cultural communication mainly emanate from the fact that people from different cultures have different understandings regarding the interaction process and different styles of dialogue (Korac-Kakabadse et al , 2001). As such, this paper is mainly concerned with analysing a case study that is related to difficulties experienced in a situation that deals with cross cultural communication. The paper starts by analysing the case and this will be followed by problem identification and presentation. The main part of the paper will analyse the measures that can be implemented in order to deal with the problem in an amicable way that is not likely to create more problems. A summary of the major points discussed will be drawn at the end of the paper. Case analysis Leary is the manager of a thriving financial company, Merrill Lynch and she uses people oriented strategies to manage the company. She prefers to engage the employees in their work so as to try to get the best out of them. She also closely monitors the performance of the employees so as to be in a position to effectively manage them so that the goals of the organization can be achieved. There are about 45 financial consultants who carry out the work in the company. Of notable concern is the fact that the company has an employee, Ted Chung who primary origin is Taiwan. Chung is specifically meant to target Taiwanese people since this segment is comprised of affluent people who can bring meaningful business to the company. Indeed, Chung brought a whopping account worth $6 million, one of the highest in the history of the company. Chung states that he has to use the Taiwanese tradition in order to attract these targeted people and there is no other financial consultant with the exquisite skills to perform this particular task. Problem identification For quite some time, Leary has noticed certain behaviour in Chung which she thinks is a cause for concern. For instance, Chung is a self centred person and he does not like to interact with others. He does not want to share his things with others and he is also short tempered. All these factors worry Leary. The other problem is that Chung has requested a private office but regardless of the fact that he brought one of the largest accounts to the company and he is performing well, he is still too junior to get a private office. Of the 45 financial consultants, only eight have private offices. Therefore, the problem in this case is twofold: if Leary gives in and try to appease Chung, this is likely to attract the wrath of other senior financial consultants who can also demand the same favour. This will certainly impact on the morale of other employees as well as their performance. It can also be seen that the problem is culture based. By virtue of being Taiwanese, Chung thinks that he deserves special treatment since he is dealing with a niche group of customers that has potential to bring a lot of business to the company. As such, a holistic approach ought to be taken when dealing with this case since it can negatively affect the whole organization if care is not taken. Measures that can be taken to resolve the problem identified According to Korac-Kakabadse et al (2001), the difficulties that arise in cross-cultural face-to-face encounters may be addressed with a better understanding of communication styles utilised by different cultures. In this case, it is imperative for Leary to understand the culture of Chung before taking a decisive step. People who come from different cultural backgrounds have different communication skills and this impacts on the way they interact with others. It can be noted that Chung is a sort of withdrawn person but this may not be his fault as may be thought by other people within the company. A closer reading of the case study shows that Chung is an individualist person who wants to keep his things to himself and he does not want to socialise with other workmates in the company. Chung also portrays himself as different from other people within the company due to the fact that he comes from a different culture from the rest of the people in the organization. This may not be his problem but it can be a result of his cultural background. In some cultures some people have high while others have low communication patterns. When communicating, people use either verbal or non verbal communication styles and these impact on the way they communicate in different areas. There is a relationship between culture and communication (Korac-Kakabadse et al , 2001). People from different cultures have different perceptions towards certain issues and they may also have different feelings towards certain events they may encounter in their lives. in as far as the aspect of communication is concerned in the given case study, it may be seen that the behaviour of Chung is shaped by his culture. In other words, Chung is not that bad person as may be thought by other people. What is important for Leary and other workmates is that they should make an effort to try to understand the culture of Chung since this greatly shapes his behaviour towards other people in the organization. Once people grasp the main features of Chung’s character, they may be in a position to understand him better than assuming that he is a selfish person who is self centred and does not like to interact meaningfully with other people in the organization. Thus, “a helpful approach to increase one’s options in negotiating across cultures is to carry out in advance as part of your preparation a cultural review or a cultural audit of the other cultures concerned (Cohen, 1999 as cited in Hurn, 2007). This is very important since it helps the parties involved to reach consensus without risking pitfalls that are likely to be caused by lack of understanding of cultural sensitivities that help to understand any cultural nuances in communication. Communication is not only concerned with exchange of information but implies that individuals who engage in the process perceive or acquire sets of meaningful information, that have been derived from a common and ordered set of interpretations by the participants involved (Leeds Hurwittz, 1989; Wierzbicka, 1991 as cited in Korac-Kakabadse et al, 2001). In order for people involved in a communication process to understand each other in a mutual way, it is imperative for them to have similar interpretations of the subject under discussion. Failure to have mutual understanding can impact on their ability to meaningfully exchange information that may be helpful to both parties involved. It is the duty of Leary to set the platform that can be followed by all the employees when communicating or executing their duties. In an organization, there is a certain culture that should be followed by all people who work in the company. This culture shapes the behaviour of the employees and it prescribes certain norms that should be followed by all the people in the company. In this case, it is the duty of Leary to take duty bit by bit in as far as the aspect of organizational culture is concerned. It is imperative that Leary should remind Chung in a polite way that Merrill Lynch is an organization that has its own culture which ought to shape the behaviour of all the employees regardless of creed, belief as well as race. Every employee in the organization is seen as equal hence Chung should not demand for special or preferential treatment by virtue of the fact that he is of Taiwanese origins hence different from other employees who are Americans. The effectiveness of a company is mainly determined by the culture that shapes the behaviour of the employees in carrying out different tasks. In order to solve this issue, it is imperative for Leary to go back to the drawing board with Chung so that he can grasp important aspects about organizational culture. This will also help him to gain a deep insight about different organizational values that distinguish the company from other competitors in the same industry. The impending showdown between Chung and Leary can be solved if the culture of the organization as well as its values is clearly explained to everyone so that they may be in a position to appreciate their roles in the company. Therefore, it is Leary’s duty to remind Chung that there is no one who is above the culture of the organization. If this vital information is explained in a polite way, Chung is likely going to understand and this can help him set aside his demand for private office space given that he is still new in the company. Chung can be pardoned for his demand for preferential treatment as a result of the fact that he may not be aware of some of the company norms and values. However, efforts should be made in order to enlighten this ambitious financial consultant that there are various issues that are considered before one is accorded the status of having a private office. In dealing with employees, a manager should be impartial so as to be in a position to display professionalism. If Chung is accorded the status of having a private office, this amounts to favouritism since he is still junior in the company while there are other senior financial consultants who have worked for the company for several years but have not yet had the opportunity to be given private offices. It is the duty of Leary to be stern and operate within the rules and regulations of the company. If ever she tries to appease Chung by according him the status of having a private office, she is likely to cause more conflicts in the organization since other employees will also demand the same favours. This sort of conflict is counterproductive and it can destabilize the viability of the organization. All employees should be treated as equal so as to be in a position to avoid unnecessary conflicts that can negatively impact on the operations of the company. Thus, Chung is no different from any other person in the organization which is the reason why he should not be given preferential treatment regardless of the fact that he has brought substantial business to the company through the mega account of $6 million which he opened. Conclusion There are different challenges that are encountered in communication across cultures especially in organizations. The main problem identified in the given case study is related to cultural differences. As discussed above, there is need for Leary to reorientate Chung about the significance of organizational culture so that he can understand that there is no one who is above this culture. It is also important for Leary to be impartial when dealing with employees in the organization since this helps to reduce unnecessary conflicts. Favouritism or preferential treatment of other employees may cause conflicts that can affect the viability of the organization. Organizational culture should be applied without fear or favour. References Korac-Kakabadse,N et al 2001, “Low- and High-Context Communication Patterns: Towards Mapping Cross-Cultural Encounters,” Volume 8 Number 2 2001 3. Hurn, BJ, 2007, “The influence of culture on international business negotiations,” Industrial and Commercial Training journal, VOL. 39 NO. 7 2007, pp. 354-360. Read More