ECL Operations in the Chinese Markets - Essay Example

 Project Communications Case Study Paper Table of Contents Executive Summary …………………………………………………………. 3 1.0 Problem Identification …………………………………………………… 4 2.0 Situation Analysis ……………………………………………………....... 4 3.0 Recommendations ………………………………………………………… 6 References …………………………………………………………………… 8 Executive Summary The case study under consideration deals with the extension of ECL operations in the Chinese markets (Ho & Wong, 2001, p. 1). The problem posed by this case study is both simple and complex at one and the same time. ECL is responsible for roughly 13,000 workers and managers in China (Ho & Wong, 2001, p.2). Right from the start of its operations in China, the company was well aware of the fact that the management of its human resources in China posed as one of its biggest challenge (Ho & Wong, 2001, p. 1). The good thing was that the firm was also cognizant of the reality that the challenge faced by it had an unavoidable cultural dimension (Ho & Wong, 2001, p.1). Yet, the irony of the situation was that ECL failed to resist the temptation of believing in the universality of its global management policies and instead of adapting its policies to the Chinese cultural norms and practices, decided in favor of implementing its standardized policies in its Chinese ventures and subsidiaries (Ho & Wong, 2001, p. 2). The net result is that though the systems and policies put in place looked suitable and methodical, it is finding it challenging to motivate and retain its Chinese employees (Ho & Wong, 2001, p. 8). A saner solution in this context requires ECL to inculcate a strong Chinese cultural aspect in its otherwise standardized and effective global management policies. 1.0 Problem Identification The origins of the problems being faced by ECL could be conveniently located in the ‘Basic Values and Objectives’ segment of this case study (Ho & Wong, 2001, p. 9). So far as the key goals and initiatives of ECL in China are concerned, they are fairly reasonable and acceptable in the sense that they adhere to universal business aspirations like the achievement of overall excellence, financial success and effective leadership (Ho & Wong, 2001, p. 9). However, when one takes a cursory look at the belief system of the company, it is then that the real problem pops out. The key beliefs of the company that had a direct bearing on the human resource management policies of ECL in China are discernibly affiliated to the Golden Rule that is “Do unto others as you have them do unto you (Engleberg & Wynn, 2010, p. 98).” The company seems to have totally overlooked the fact that the notions of effective and ethical behavior and communication are always relative and could mean different things to people adhering to different cultures (Engleberg & Wynn, 2010, p. 98). The net result is that the systems, management policies, institutions and philosophies introduced by ECL in China are disproportionately Americanized and unsuitable. The company is intuitively aware of this discrepancy and is finding it difficult to recruit and retain the competent employees in China (Ho & Wong, 2001, p. 8). 2.0 Situation Analysis Evidently, the primary objective of ECL in China is to nurture and develop a leadership pool of local managers, who could carry on the company’s business in the region, as per its vision and values (Ho & Wong, 2001, p.8). However, the biggest obstacle to the achievement of this objective is ECL’s failure to exhibit and practice the requisite cultural awareness (PMBOK Guide, 2008, p. 420). The firm so far has ignored the need and necessity of identifying and exploiting the cultural differences that are unique to its Chinese workforce (PMBOK Guide, 2008, p. 420). To aspire and stimulate leadership, the company ought to first practice leadership itself by proactively diluting the ethnocentric bias in its HR policies in China (Rothwell, 2004, p. 269; Engleberg & Wynn, 2010, p. 79). ECL’s Chinese managers and workforce stand to be pivotal stakeholders in its local and global operations (PMBOK Guide, 2008, p. 247). Therefore, the very objective and responsibility of managing stakeholder expectations does necessitate the need of exhibiting sensitivity to local values, mores and aspirations (PMBOK Guide, 2008, p. 261). The belief system of the firm is unintentionally, yet counterproductively marred by varied barriers to understanding the needs and preferences of its Chinese employees (Engleberg & Wynn, 2010, p. 79). The good thing was that right from the start, ECL was well aware of the cultural differences that needed to be managed by it, both from the perspective of its expatriate managers and its local workforce (Ho & Wong, 2001, p. 2). However, during the conceptualization and actualization of its training facilities, communication networks, administrative systems and motivation policies and plans, ECL simply ignored and overlooked these differences (Ho & Wong, 2001, p. 4, 5, 6 & 7). Though, not mentioned in the case study, this flaw would have conclusively given way to many problems. Power is always group centric (Rothwell, 2004, p. 248). Thus, the overlooking of the cultural dimensions of its Chinese workers, that constitute the biggest group in its local workforce, would have negatively impacted ECL’s ability to exercise influence over them, despite all the positive intentions and efforts. The transference of skills and knowledge to the local managers should have been matched by the extension of commensurate freedom and empowerment, which would have enabled them to come out with a leadership combination that would have been in tandem with the local culture, needs and practices (Rothwell, 2004, p. 249; Goleman, 2000, p. 3). It is these managers that are bound to be conversant with the linguistic style, most apt for the local workforce (Tannen, 1995, p. 139). 3.0 Recommendations In the light of the above analysis, the following recommendations are made to ECL: In its ‘Basic Values and Objectives’, in the ‘Key Beliefs’ section, ECL should add the line, “In its global operations, the company shall try to customize the notions of respect and integrity, as per the local and culture specific values, mores and aspirations.” ECL should come out with a formal report elaborating on cultural differences as perceived by the expatriate managers and local workers. A copy of this report should be individually provided to all the employees and managers associated with its operations in China. The schedules and routines in the factories must be adjusted as per the local practices and preferences. Studies in Group Diversity should be made a permanent feature of all the courses offered by ECL University in China. The University should hire the local academicians and professionals to educate its students. Besides, the participation of the local Chinese training experts in learning and training needs analysis should be increased and encouraged. The local experts could be expected to be more proficient in detecting and responding to the requirements and aspirations of the Chinese students. The communication policies and programs being implemented in ECL China should be in consonance with the high-context predilections of the Chinese society. The employees should be encouraged to select the modes of feedback extension and communication that they feel most comfortable with, and which allow them to express individual creativity, while being true to their essential beliefs and values. To begin with, ECL should opt for an autonomous HR Department with a simple structure, which should focus on the naturalization of the HR practices of ECL. Once this objective is achieved, the department could be made to meaningfully integrate with other units in the company. The expatriate managers should be empowered to respond promptly to the local realities and their role in the key decision making should be alleviated. ECL should offer the bright Chinese graduates, the chance to develop into global leaders, by extending to them the possibilities of a global exposure and the opportunity to work in an international environment. ECL should look to it that its remuneration policy is at par with the best in the market. References A Guide to the Project Management Body of Knowledge (PMBOK Guide) (4th Ed.). (2008). Newton Square, PA: Project Management Institute, Inc. Engleberg, I & Wynn, D. (2010). Working in Groups (5th Ed.). . Boston, MA: Pearson Education, Inc. Goleman, Daniel. (March 1, 20100. Leadership that gets Results. Harvard Business Review. Prod. #: R00204-PDF-ENG. Ho, M & Wong, G. (November 9, 2001). Establishing an ‘ECL’ Culture in China. Hong Kong: The University of Hong Kong. Rothwell, J Dan. (2004). In Mixed Company: Communicating in Small Groups and Teams. Victoria: Thomson Wadsworth. Tannen, Deborah. (September 1, 1995). The Power of Talk: Who gets Heard and Why. Harvard Business Review. Prod. #: 95510-PDF-ENG. Read More