Effectual Work Adjustment at the Company - Essay Example

With full reference to relevant literature, studies and theory answer the following: 1a. How might an appreciation of the dimensions of national culture have assisted Jane and Tony as they made their decisions about how they would manage their Faro employees? Effectual Work Adjustment Based on a past research by Kabasakal and Bodur (1997), some cultures are characterized by a strong slant towards collectivism and both societal and organizational levels. It may perhaps be useful for JETZ to initially analyze the Portuguese culture in terms of power distance, masculinity, human orientation, achievement, and future orientation (Hofstede, 1983). It may also look into the Portuguese business culture’s commitment and sense of duty to the organization, respect for managerial hierarchy, type of leadership, and other ethical norms. Armed with such knowledge. JETZ expatriates can definitely influence the expectations of its expatriates and help in their adjustment to the new work environment (Hofstede, 1983). In addition, Portuguese business culture communication styles should also be assessed by JETZ and the manner through which corporate values and organizational culture are transmitted. For instance, is it through socialization? In some cultures, exchange of favors, information sharing and friendships are critical means of winning and developing trust. Logically, JETZ managers who are sent to Portugal ought to have such characteristics as patience and being open to socialization with locals. 1b. How should they now proceed? Apparently, Tom, Mark and Jane have experienced a whole host of changes in being sent to a global post. On a personal level, they are required to undergo a transition from an environment to which they were accustomed to one which is very unfamiliar. Naturally, this required modifications in their living habits, and entailed finding a healthy, novel balance between their work and personal preoccupations. For a majority of individuals, this expends too much time and effort. Thus, the human resources department of JETZ ought to take action to prepare them so that they may cope with these difficulties in adjustment. The research of Mendenhall and Oddou (1985) indicate that adjustment to the cross-cultural facets of a global assignment requires three distinct personal abilities, as follows: 1) the capacity to sustain a valued sense of self; 2) the ability to associate to host nationals; 3) the ability to intellectually appreciate the belief systems that underpin behaviors in the host country. If Tom, Mark and Jane were oriented with these traits, it would have been easier for them to adjust because their expectations were more effectively managed (Black, 1990b; Mendenhall & Oddou, 1985). If they possessed such traits, it would have been more probable for them to adjust easily in their Faro assignment. In a related vein, JETZ is obliged to help select those individuals with these ideal traits for expatriation assignments. However, while JTZ may try its best to send ideal candidates, they are frequently unavailable – thus, tradeoffs and compromises may be needed. Since they are now in the midst of the assignment, they ought to try their best to find out what makes their Portuguese counterparts ‘tick’. They could start with learning the basics of the Portuguese culture, norms, beliefs, and customs. They should also take every chance to interface with their colleagues to facilitate this socio-cultural adjustment process. 2. In paragraph 7 Jane says: “I don’t know if we could have prepared ourselves for the experience.” Assess the means and methods by which they might have been better prepared for their expatriation? With the integration of global markets and the burgeoning growth of multinational business activity, JETZ has to learn how to effectively manage, coordinate, control and synergize its operations with its Faro counterparts. To accomplish this task, the team who was sent to manage the merger process ought to prepare before they are sent their as ambassadors of the UK head office. This preparation process, however, is not such an easy task. The difficulty lies in the fact that this requires them to have unique skills different from those that proved to be effective when they were assigned as managers in the UK. Tom, Mark and Jane should have been equipped with the knowledge of Farotech’s organizational culture and philosophy, home country business practices, norms and customs. Being assigned to a foreign environment with peculiar political, cultural, and economic working conditions, expatriates encounter both job-related and personal difficulties (Birdseye & Hill, 1995). If these issues expressed by the team are not given adequate attention, this results in extreme stress in both the expatriate’s personal life and life, and ultimately to expatriate turnover. Facets of Cross Cultural Adjustment for JETZ The results of the unprepared expatriation of JETZ managers suggest that there must be a more optimal fit between these managers and those of Farotech as a new work and sociocultural environment. Both the Portuguese and British managers need to invest more in the adjustment of their expatriates. To expedite their effective adjustment, JETX must coordinate with Fare and get involve their management in the predeparture and cross cultural training of those who will be assigned to the Faro satellite office. Moreover, the management of JETZ ought to lend constant support to those who are sent to Portuguese assignments. Predeparture Expatriation Training Programs JETZ ought to ensure that training programs are given to candidates for expatriation to facilitate their adjustment to amenities, overall living conditions, and social norms. For example, cultural diversity training programs and learning sessions concentrating on values, habits, beliefs, religion and language of the Portuguese must have been part of the preparation of Tom, Mark and Jane. These will help them undergo the indoctrination period more easily and quickly. In this context, JETZ expatriates assigned to Portuguese operations, should also be keenly aware of the particular facets of life in Portugal. If expatriates that their families are made aware of these information and their expectations well managed, then unwelcome surprises may be avoided (Cavusgil et al., 1992; Marlin et al., 1995; Tung, 1982). Sponsorship Programs and Social Activities Apparently, Tom, Mark and Jane feel alienated in adjusting to the new conditions at Farotech and perhaps at Portugal, in general. They wish to maintain their self identity and their cultural norms more than ever. While this seems ordinary, such emotions may also cause the adjustment process to be even more difficult. Thus, to counter such tendency for isolation and expedite adjustment to social life in Portugal, it may be necessary to accord them culturally enriching venues for the expatriates (Marlin et al, 1995). JETZ as the mother company may consider setting up recreational and entertainment activities such as sight seeing time, sports events, company picnics and the like. These are opportunities for the expatriates to interact socially with their Farotech counterparts. These interactions outside of the work setting may allow more positive attitudes to emerge between the British and Portuguese nationals and prepare the foundation for building mutual trust and cohesiveness at work. If Tom, Mark and Jane will minimize their social interface with the Portuguese nationals, and concentrate solely on work-related tasks, they risk being out of touch with local ways, the accepted manner of doing things, isolations, and perhaps even organizational insignificance. This is because in Portugal, and in most other countries, being an “in” team member necessitates team interaction beyond work – which is deemed effectual (Cavusgil et al., 1992; Marlin et al., 1995; Tung, 1982). Apart from structured social activities, building Portuguese-national sponsorship programs may also be beneficial in easing the socio-cultural adjustment of expatriates. Sponsorship programs could particularly be useful if the sponsoring family’s characteristics match that of the expatriate family in terms of the age and gender of the children, for instance (Cavusgil et al., 1992; Marlin et al., 1995; Tung, 1982). Mentorship and Pre-departure Preparation JETZ may also consider pre-departure training on the Portuguese business environment and its culture. This will certainly help them to better prepare about what to expect and expedite their adjustment period. On their part, Farotech may consider establishing a mentorship program for these expatriates. The delegation of a senior executive from Farotech to act as a mentor will not only assist the expatriate in gaining a profound understanding of Portuguese business culture but may also influence others in accepting them more readily since they are under the mentorship of a figurehead. Farotech should also be keen about learning the practices of their British counterparts. Companies which have proven themselves effective at assimilating non-natives into their fold accord training not only for their expatriate managers but also for their local supervisors (John & Roberts, 1996). Coaching for Repatriation While empirical evidence is not conclusive, it may be worthwhile to consider that an expatriate’s expectations regarding his return assignment is associated to his in-country adjustment. Naumann (1992) and Selmer (1995) suggest a serious consideration of career implications and repatriation concerns in expatriate training programs. In the future, JETZ should clarify to its expatriates the premium of the assignment to the individual’s career and explain his career alternatives afterwards. There ought to be a reconciliation of whether such an assignment is aligned to the person’s overall career goals. If managers perceive that their global assignment is the beginning of a critical part of their career they may be highly motivated and may throw themselves more wholeheartedly into their new role. These managers may seek out contact with Portuguese nationals as well as take initiative to enhance performance. 3. Tony states (paragraph 8) that “the team is functioning more as three groups than as one true team.” Why might this be the case? There are several reasons for mergers or joint ventures’ failures. Following an analysis of the 700 most expensive global deals from 1996 to 1998 and interviewing 107 executives from these organizations, KPMG suggests the following golden rules for successful integration: Directors must let themselves out of the boardroom; Establish a clear direction for the new business; Clarify the emotional political and rational issues; Optimize involvement; Emphasize communication; Ensure clarity around roles and decision lines; Be customer centric to; and Be flexible (KPMG in Nguyen & Kleiner, 2003). Directors must let themselves out of the boardroom. As a director, Tony must have hands-on leadership and a strong results orientation. He ought to clear us his calendar and allot time for everything such as meetings, visits to partner facilities, to simply having time to reflect through their interactions. In addition, he must clarify with Nakado managers that the combination process is being prioritized and that this entails their own time and concentration. It is crucial for Tony to be actively engaged in the integration. He ought to lead from the front, project themselves as very approachable to new staff and actively involve themselves in the joint venture. The newly formed senior management team must also manifest support and learn speedily to manage the team (Marks, 1997). Establish a clear direction for the new business. Feelings of uncertainty regarding the joint venture may be resolved by clarifying one’s goals. Tony ought to have a serious discussion with the executives of Nokada on the future vision values, goals, and policies of the joint venture. There should also be a premium placed on improving shareholder value in crafting the new vision. Moreover, Tony and Nokada’s executive team should concur about the vision and the strategy for the new entity. Consequently, this may be cascaded clearly to the whole company (Marks, 1997). Clarify the cultural, emotional and political issues. Tony must be able to exhibit a gut-level comprehension of what it is like to be an employee during the joint venture combination process. If he is successful in doing so, people may be more willing to let go of their existing attitudes and the ways they were accustomed to, and to accept novel ones consistent with his vision. He must then be constantly aware of the concerns of employees. This means trying to empathize with them, which may only be possible by spending a considerable amount of time with them, across levels and departments (Marks, 1997). In addition, Tony must learn how to acknowledge the importance of culture which is integral in the combination process; and the accompanying culture clash. Nokada and JETZ ought to have an active attempt to educate staff about each partner’s culture and business norms. Optimize involvement. The most potent way to solicit support for change is by optimizing employee involvement in the consultation process. While strong leadership is critical for an effective integration such as that of JETZ and Nokada, the necessity of cascading involvement into the process is as equally important. If Tony utilizes a top-down approach coming from only a limited number of people, this is likely to result in weak buy-in and impact on change process. The engagement of a majority will allow synergy, generate momentum, and determine problem areas early on. The integration team of JETZ and Nokada should be composed of staff who have credibility and influence within the organization (Appelbaum et al., 2000). Emphasize communication. Tony ought to give clear, aligned and accurate data – this will enhance the coping of employees, and ultimately translate to increased productivity. He must also encourage transparency in all communication channels. Corporate culture, although extremely resistant to change, can indeed be changed with an optimal communication plan established. Such a plan ought to share the following to employees: The shared vision for the new company. The nature and development of the joint venture and the anticipated benefits. Results and rough timescales for future decisions (Rifkin, 1997). Ensure clarity around roles and decision lines. A quick transition can vent energy and decrease the likelihood of stressful periods which can hamper productivity. To retain critical staff, management has to expedite decisions about the new structure, and the accompanying roles and skill gaps. Tony and Nokada should exercise transparency throughout the whole process, clarity about the new roles, and prompt communication of decisions. It is critical that clear decision making process be formed, based on empirical information and analysis. This also assists in funneling all key decisions through clear lines of authority and evading unnecessary bottlenecks at the most senior level (The Manager Mentor, 2002). Be customer centric. To maintain the confidence of customers, Tony and Nokada ought to share future product strategy maps with the customer. This must be done as soon as possible to assure the customer and make him feel secure about his purchasing decisions. Moreover, their joint venture has to guarantee its customers that the quality of service, support people and sales people will be maintained. In a heavily service-oriented industries, the consolidation of products, processes and services can take a sudden and heavy toll on customer support which, in turn, can negatively influence customer satisfaction and, ultimately profitability (Simpson, 2000). Be flexible. Integration is fine, but to become a market leader after such an integration or joint venture necessitates a synergy of strengths. In some instances, the cultures may be very distinct that a merger or joint venture may not be the most logical and sensible approach (Emerge International, 2002). Jetz must also be keen at preserving the intangibles that made Nokada a good player within its niche. The minimal required integration is swift and respectful, and each unit is permitted– and expected – to sustain the focus on the customer rather than on the joint venture (Kaplan, 2001). 3b. What should now be done to (in Tony’s words): “…. turn this situation around and make this an effective and achieving team.”? For international organizations there is an impending necessity to get groups of managers from various nationalities to collaborate either as long lasting management teams or to resource specific projects resolving critical business issues. Numerous organizations have found that bringing such groups of managers together can be difficult and performance is not always at the level necessary or expected. Tony must 1) consider the nature and influence of national cultural differences, and 2) value diversity; and 3) build cultural understanding and awareness. The nature and influence of national cultural differences. It is helpful to determine a clear framework for comprehending and analyzing cultural differences. One such theoretical framework has been developed by Hofstede (1983). In his original work, he determined four key dimensions which influence national cultural differences. These are: Individualism/collectivism: This aspect reflects the degree to which individuals value self-determination instead of their behaviour being determined by the collective will of a group or organization. Power-distance: At the core of this dimension lies the question of participation in decision making. In low power-distance cultures, employees seek involvement and have a desire for a participative management style. At the other end of this continuum, employees tend to work and behave in a specific way because they recognize that they will be directed to do so by management. Uncertainty avoidance: This facet is involved with employees’ tolerance of ambiguity or uncertainty in their working environment. In cultures which have a high uncertainty avoidance, employees will look for clearly defined, formal rules and conventions governing their behaviour. Masculinity/femininity: This is perhaps the most difficult dimension to use in an organizational context. In reality, the hardship is more to do with terminology and linguistics, in Hofstede’s work the dimension related to values. In highly “masculine cultures” dominant values relate to assertiveness and material acquisition. In highly “feminine cultures” values emphasize on relationships among people, concern for others and quality of life. The results of Hofstede’s research are frequently borne out and reinforced by the practical experience of multinationals seeking to deploy international HR policies. Higgs and Phelps (1990) undertook research into Japanese financial organizations operating in UK markets and their findings showed evidence of practical experience which was explicable in terms of Hofstede’s framework. In practice this has significant implications for the development of global management teams. Using this framework, it is possible for Tony to identify differences in responses to management styles, organizational preferences and motivation patterns. There are some distinct differences which can impact on the way in which managers from different cultures may behave and perform in a team. For instance, for uncertainty avoidance, it may be seen that a UK member (low uncertainty avoidance) and Japanese member (high uncertainty avoidance) of a management team would have significant differences in their initial perceptions and expectations of both team purposes and processes. From this brief illustration it is, hopefully, apparent that in order to build effective international management teams it is necessary to create an environment which both recognizes and values cultural diversity and tries to acquire cultural awareness and sensitivity. Valuing diversity. Frequently, multinationals see the cultural diversity within their operations as an area of difficulty rather than as an opportunity to build competitive advantage. This point is well illustrated by an exercise in the early 1980s carried out by Laurent and Adler (n.d.). Global executives attending management seminars in France were asked to list the advantages and disadvantages of cultural diversity for their organizations. All of the participants were able to determine disadvantages less than 30 per cent could determine any advantage. Usually, comprehending the nature and value of cultural diversity is not well ingrained within an organization’s thinking and practice. In several ways thinking in this area has not been cultivated aligned with the trend of globalization (Houlder, n.d.). It may well be that effective performance of international management teams has as much to do with the values of multinationals as with the development processes. Adler (1983) lends evidence for this in her analysis of organizational strategies for the management of cultural diversity. However, it is critical not only to comprehend the distinctions between cultures. It is also important to determine the potential advantages and disadvantages that will probably be brought to a team by managers of different cultures. Building cultural understanding and awareness. Hofstede (1983) submitted a general framework for developing competencies for cross-cultural operations, as follows: building awareness of culture and cultural differences; developing knowledge of the impact of cultural differences and of the of the relative strengths and weaknesses of different cultures in a managerial setting; and building skills in identifying the impact of different cultural settings for managerial problems adapting behaviours to achieve effective results in different cultural settings. More specifically, Tony may concentrate on the following in aspiring to have an effective global, cross cultural team: Develop cohesion and consistency in teamworking; Establish a shared and compelling vision and understanding; Ensure quality dialogue among Nodaka members; Develop feedback mechanisms to review and enhance team processes (Kakabadse & Myers, 1994). References Adler, N.J. (1983). Organizational development in a multicultural environment. Journal of Applied Behavioural Science, 19(3). Appelbaum, S.H., Gandell, J., Yortis, H., Proper, S., & Jobin, F. (2000). Anatomy of a merger: behavior of organizational factors and processes throughout the pre-during-post-stages. Management Decision, 38(2), 649-62. Birdseye, M.G & Hill, J.S. (1995). Individual, organizational/work and environmental influences on expatriate turnover tendencies: an empirical study. Journal of International Business Studies, 26(4), 787-813. Black, J.S. (1990b). The relationship of personal characteristics with the adjustment of Japanese expatriate managers. Management International Review, 30(2), 119-34. Cavusgil, T., Yavas, U., & Bykowicz, S. (1992). Preparing executives for overseas assignments. Management Decision, 30(1), 54-8. Higgs, M., Phelps, R. (1990). Does culture matter? Banking and Financial Training, 6 (3). Hofstede, G. (1983). Dimension of national cultures in fifty countries and three regions. In Deregowski, J.B., Dziurawiec, S, Annis, R.C. (eds.). Explications in Cross-Cultural Psychology. Lisse, The Netherlands: Swets and Zeitlinger, Houlder, V. (n.d.) Cultural exchanges. Financial Times. John, M.T. & Roberts, D.G. (1996). Cultural Adaptation in the Workplace. New York, NY: Garland Publishing. Kabasakal, H. , Bodur, M. (1997). Leadership, values and institutions: the case of Turkey. GLOBE (Global Leadership and Organizational Behavior Effectiveness) Project, Wharton Business School, Philadelphia, PA, Working Paper. Kakabadse, A. & Myers, A. (1994). Qualities of top management: Comparison of European manufacturers. Cranfield: Cranfield School of Management Paper. Laurent, A. & Adler, N.J. (n.d.) Cultural synergy survey. European Institute of Business Administration, unpublished survey of participants in seminar on managerial skills for international business. (The) Manager Mentor (2002). Post-merger integration. www.themanagermentor.com. Kaplan, N. (2001). Assimilate, integrate, or leave alone. Journal of Business Strategy, No. January/February. Marks, M.L. (1997). Consulting in mergers and acquisition. Journal of Organizational Change Management, 10 (3), 267-79. Marlin, M.R., Hanson, D.P, & Hook, M.K. (1995). The need for local agencies to provide expatriate support programs. The International Executive, 37(1), 81-9. Mendenhall, M. & Oddou, G. (1985). The dimensions of expatriate acculturation: A review. Academy of Management Review, 10(1), 39-47. Naumann, E. (1992). A conceptual model of expatriate turnover. Journal of International Business Studies, 23(3), 499-531. Nguyen, H. & Kleiner, B. (2003). The effective management of mergers. Leadership and Organization Development Journal, 24 (8), 447-454. Rifkin, G. (1997). Growth by acquisition: the case of Cisco Systems. Strategy + Business, No. second quarter, 4-12. Selmer, J. (1995). Conclusions: new ideas for international management. In Selmer, J. (ed.). Expatriate Management: New Ideas for International Business. Westport, CT: Quorum Books. Simpson, C. (2000). Integration framework: supporting successful mergers. Mergers and Acquisition in Canada, http://global.factiva.com, 12(10), 3. Trompenaars, F. (1993), Riding the Waves of Culture: Understanding Cultural Diversity in Business. London: Economist Books. Tung, R.L. (1982). Selection and training procedures of US, European, and Japanese multinationals. California Management Review, 25 (1), 57-71. Read More