Role of the Coca-Cola Company Manager in China - Case Study Example

DESCRIBE THE PROCESS MANAGERS USE TO SELECT AND TRAIN AN EXPATRIATE MANAGER FOR SUCCESSFUL POSTING IN ANOTHER COUNTRY Role of theCoca-cola Company Manager in China Introduction An expatriate manager is one who goes to work in a region away from their native home. This change of region of working comes with a variety of challenges to the expatriate manager which if not looked into might have a negative impact to the performance of an organization. In this case where Coca- Cola Company is situated in the United States, sends an expatriate manager to one of its branches in China. These two countries are culturally diverse and in this article we look at some of the aspects that Coca-Cola has to examine before sending their expatriate manager to the host nation for it to function effectively according to their expectations. 1. Agent of Socialization The manager should be well aware of the values and beliefs of the parent company. Should understand what the parent company’s vision, mission, and strategic goals are and how they are communicated to the entire organization so that they can be able to transfer them to the host country with minimal resistance. All these aspects can be well transferred by a manager who has advanced knowledge of how the parent organization functions and runs. 2. Network Builder The purpose of Coca-Cola company employing a manager in China is to create an international link between the parent company in the United States and the host company in China whose work involve communicating and offering informal control in the host nation. In this case, the manager must, therefore, possess knowledge that is necessary for the functioning of the company. The manager has to understand the people he is working with and their environment while at the same time, the employees must also understand what the manager is credible for and how to perform their various duties according to their level in the company (Dowling & Welch,2004). 3. Offer Direct Control. The Coca-Cola Company in United States needs an overview and control of the host company in China. Therefore, they employ bureaucratic control mechanism through the manager they employee in the host nation with the direct supervision which in turn ensures that everyone in the organization complies to the laws and rules set by the host nation so as to be able to achieve a common goal as Coca-Cola company (Dowling & Welch,2004). 4. Boundary Spanners This involve the activities that the manager has to engage into so as to be able to bridge the gap between the company internal and external contexts so that they can be able to connect well with their target market(Dowling & Welch,2004). The manager in the host country will have the duty of collecting information about the market through market analysis where information will be gathered directly from their customers through proper means of communication for the firm. Culture Comparison Between United States (Parent Country) and China (Host Country) 1. Power Distance Index This involves how companies view equality of individuals within the organization. In China, the power distance between the manager and the employees is large, therefore, the system in place is hierarchical meaning a lower level subordinate has to consult with the immediate upper-level employee before getting to the topmost management. The employee is left with little if not no control over the decision making in organization. Whereas, in the United States, the power distance index between the management and employees is very minimal hence the employees can interact freely with their employer and open management system is used in management (Hofstede, 1984) 2. Individualism versus Collectivism United States practices the culture of individualism while China practices the culture of collectivism. In individualism culture, every member of an organization is viewed to be unique in their own way, and they are valued according to their personal contribution to the organization and achievements. While, in the collectivist culture, people work as a group hence all the emphasis is placed on the group that in turn has an influence on the management of the organization (Hofstede, 1984) 3. Masculinity versus Femininity Culture Members of organizations in masculinity cultures are seen to be assertive and competitive in nature and favoring the male in the society showing high level of gender differences whereas in the femininity cultures, the members display the traits of sensitivity and modesty in their working within an organization. There are low gender differences within the organization, and one’s employment is based on their qualifications rather than their gender. The masculinity culture is mainly practiced in China while the femininity one is practiced in the United States where everyone is viewed with equality (Hofstede, 1984) 4. Uncertainty Avoidance Index This involves the measures a culture puts in place so as to be able to tolerate ambiguity in their values and beliefs. Organizations with high uncertainty avoidance cultures have a highly structured system that is in order and followed. They take minimal amount of risks and their rules dominate the running of the organization. This is practiced in China. While low uncertainty avoidance culture is risk takers and are flexible to their rules and regulations. This type of culture is mainly practiced by organization in the United States (Hofstede, 1984). 5. Long- Term Versus Short-Term Orientation China is a short term oriented culture while US long term oriented culture. Organizations in China value their present and past and put great importance on their traditions and accomplishing their social requirements. While in the United States, who are a long-term oriented culture, put strong emphasis in building the future and focus on perseverance (Leung & White, 2004) 6. High Versus Low Context Culture This relates to how members of a culture relate to each other, communicate and their commitments within and outside the organization context. Business involves communication where individuals exchange information and ideas in the decision-making process. China is a high-context culture and have its members value close relationship with their business partners and an individual feelings are of great importance in this cultures as information is shared widely between members of this culture (Barak, 2005). United States is a low context culture hence they pay little attention towards building relationships with low involvement with each other. People in this culture are individualistic and openly express their views with no fear (Barak, 2005). Manager Training to Deal With These Changes 1. Cross-Cultural Training The host manager should undergo training that will help him adapt to the host nation and prevent them from feeling isolated in China after leaving United States. The manager should be trained to understand the culture of the host country so as to reduce the amount of difficulties they might face during their international assignments in the Coca-Cola Company. Cultural training of the manager is the most effective method of preparing the manager to adapt well to their host country (Dowling & Welch, 2004). During this cultural training, the manager to be employed in China is made aware that there are behavioral differences that are brought about by the different cultures and why it will be important for them to observe them carefully. With the understanding of the host culture behavior, the manager learns what believes the Chinese people value most and how it can be used to the advantage of performance of Coca-Cola as a company. During the training process, the managers are also encouraged to practice the Chinese behavior for efficiency in their international duties(Stroh et al.,2004). Form of Training Offered: a) Low Rigor Training; This approach mainly involves giving information to the manager and is mainly done through watching videos, learning the new language and reading books. This kind of training last for a short period of time(Stroh et al., 2002; Evans et al., 2004; Dowling & Welch, 2004). b) Moderate Rigor Training; It last for a period of four weeks involving cultural assimilation and stress reduction training and the manager is also trained moderately on the host language(Stroh et al., 2002; Evans et al., 2004; Dowling & Welch, 2004). c) High Rigor Training; It is an approach that is immersed involving more experimental training hence taking a longer period of time of more than a month. This kind of training might be done on the actual ground as well as well as a deep understanding of the host language(Stroh et al., 2002; Evans et al., 2004; Dowling & Welch, 2004). Factors That Determine the Level of Training to be Offered: a)Cultural Toughness; These the level of differences in culture between the home country, United States, and host country, China in which the manager is going to spend a certain amount of time. The tougher the cultural differences, the more rigorous training are expected to be offered (Stroh et al., 2004). b) Job Toughness; In most cases managers get promoted when they are handed jobs overseas, and this mean a rise in new challenges. The more challenges to be faced the more rigorous training is to be offered to the manager (Stroh et al., 2004). c) Communication Toughness; this is the extent to which the manager in the host nation will communicate with the host nation. The more communication required, the more training in communication to be offered so as to help manage to interact well (Stroh et al., 2004). 2. Preliminary Visits Preliminary trip by the managers to the host country is another way of training the manager. This will enable the manager and the family to be able to examine their interest and suitability of the task ahead. It also introduces the manager to the business context as well as giving them more information of how to plan for the actual trip (Dowling & Welch, 2004). 3. Language Training In general, English is accepted as the business language. therefore, manager will have to learn Chinese language as this will enable him in the host country to make proper strategic and operational plans with regards to the company competitors while at the same time improving the managers effectiveness in the business and negotiating ability (Dowling & Welch, 2004).Manager will also be able to accesses information on the country’s economy and also market. Through learning of the host language, the manager, and the family will also be able to gain social support in their new environment. 4. Assistance for Day-to –Day matters There are relocation specialists that assist the managers to get good accommodation, schools and jobs for their spouses so that they cannot feel left out in the host nation. Another way of gaining information about the host nation is through the already existing expatriates in the host nation who are willing to offer help (Dowling & Welch, 2004). 5. Preparing the Accompanying Family and Spouse When the family of the manager to the host country is able to adapt to the new environment smoothly, it will in turn impact to a positive productivity of the manager too. From this, we see that the Coca-Cola company need to choose a manager whose family will adapt easily to new environment (Webb & Wright, 1996). In conclusion, we find out that the Coca-Cola company had to consider various factors before posting their expatriate manager into the host country China. Cultural differences affect the amount that the manager needs before being posted in the host country and without this the performance of the manager can lead to the poor performance of the Coca-Cola branch in the host country. Therefore, training is an essential entity that has to be involved in the process of sending an expatriate to a host nation. References Barak, M.M. (2005). Managing Diversity Toward a Globally Inclusive Workplace. Thousand Oaks, California: Sage Publications Inc. Dowling, P. J., & Welch, D. E. (2004). International Human Resource Management: Managing people in an international context (4th ed.). London: Thompson learning. Hofstede, G. (1984). Culture’s Consequences; International Differences in Work – Related Values. Newbury Park, California; Sage Publications, Inc. Hofstede, G., & Hofstede, J. G. (2005). Cultures and Organizations: software of the mind. New York: McGraw-Hill Webb, A., & Wright, P.C. (1996) The Expatriate Experience: Implications for Career Suc-cess. Career Development International, 1/5 (1996). pp. 38-44. Read More