Globalization has diminished the boundaries between countries. For the optimum level of production and profit maximization, business entities seek efficient employees. For that purpose, it hires employees with intimate knowledge of their functional area and competency to work in volatile market condition. No workforce is homogeneous in nature. Employees of an organization are with required with respective abilities that may belong to different culture. Leading a workforce with cultural diversity is one of the most challenging tasks for managers an
Report is prepared to elucidate organizational and cross cultural issues prevailing in a business entity. For this purpose, a manufacturing company in an automotive industry Endon Engineering PLC is taken into account. The report discusses the major challenges faced by the manager when new manufacturing facility unit is acquired in a region with different culture. Further, it throws light on different leadership styles and approaches adopted by manager to bring adaptability in different culture.
Identification And Evaluation Of Organizational And Cultural Issues
Organizational structure: Major issue encountered by manager while shifting to the new manufacturing facility was the transition in organizational structure of the unit. Mentioned company was previously a state owned company, whose organizational structure was totally in contrast with the company's established venture in Africa Endon engineering PLC is a privately owned company whereas the natives working in new manufacturing facility was functioning under the control of the state (House and et.al, 2004). There are different management philosophies prevailing in both the units. State owned company works on the principal of centralized working. Power is centralized at the apex level and orders are delegated to subordinates and are executed under the supervision of senior officials. On the contrary, in a privately owned company principle of centralization of powers is followed. In this, power is distributed to employees at different levels and hence is accountable for the results and targets achieved. There are six components of organizational structure in which an organization differs: Behavior regularities, norms, dominant values, philosophy, rules and organizational climate (Grisham and Walker, 2008). These are the components that are addressed by the management to comply with different culture.
Attitude towards ambiguity:
Parochialism: Major hindrance in the execution of specified task and strategies and accomplishing targeted goals is the parochialism existing in the Romanian natives. Parochialism is the biggest obstacle and major challenge faced by the management while adapting with different culture and increasing manufacturing rate and equipment of industry. It refers to the attitude of resistance and acceptance for the different cultural practices. Important component is considered by manger undergoing cross cultural leadership.
Cultural diversity: When a team shifts to another country for work in collaboration with the natives, both the sides encounter differences between them in many aspects. Moreover, people with two totally different cultural backgrounds respond to these diversities in different ways. Working in organizations with different structures helps in adjusting with the different management philosophies (Walumbwa, Lawler and Avolio, 2007). Natives have worked under the management of state owned company whereas immigrants were from privately owned and more decentralized work system. Developing respect and acceptance or the people with different culture is prerequisite for the management. It includes understanding in employees about uniqueness and individual differences.
Operational management: Operational management is the soul of organization which shows that in what manner it precedes its functioning and working. It determines the principles and values on which employees accomplish their targets. It shows direction to the human resources and process on which organization can be executed (Lok and Crawford, 2004). It portrays the way in which other linkages and external parties look at organization and assume about its working and values. Differences in culture lead to different operational management. Operational management encompasses in managing human resource, financial resources and infrastructure. Further, the strategic formulation is the important part of it. Differences in culture results in difference in operational management of the organization (Javidan and et.al., 2006). Total transition in working environment for the employer and employees leads to cumbersomeness and difficulty to manage.
Technological differences: Ranking fourth in the automotive industry in central and Eastern Europe, Romania is known for using high technology in manufacturing and other functions which are operated in the nation. Rapid increment in the high technology companies, soft industries and high value added industries is due to the installation of advanced technology equipment and highly skilled manpower. Focus of the Romanian industries is to hire the professional and technical manpower. Hence, natives of Romanian were highly knowledgeable and experienced whereas immigrants from UK were not familiar with the advanced machinery and resources. The change in employment structure is the fundamental component to deal with. Improper management and competency with the technologically different organization affects productivity and efficiency of employees which results into low success rate.
Major Obstacles To Change Faced By Manager To Adapt In New Facility
Management- employee relationship: One of the significant determinant of efficiency and productivity of organization is the degree of effectiveness of relational constructs between management and employees. Stronger the bond shared by both employers and employees, more result oriented and resourceful is their work (Gupta, MacMillan and Surie, 2004). The major challenge is to deal with good relationship between management and employees with different cultures. Addressing all the issues and challenges in an effective manner with applicability of different theories and models is required. Effectual methods adopted by manager leads to resolving matters productively.
Teamwork: Organization with a large family is segmented into different parts and team of employees with similar activities and efficiency to achieve a specified goal and target. Team is formed only on the basis their functional areas, that results in a team with members of different cultural backgrounds. Inducing team work in team and motivating them to work with dedication and mutual coordination is a required attribute of a leader (Chhokar, Brodbeck and House, 2013). When team members are from different culture, psychological and technological background, manager's duties and efforts increases in the considerable manner to bring all the members together to work for a single goal.
Diverse level of efficiency: Employees with diverse culture and backgrounds has different level of efficiency and work productivity. Managing employees with different level of efficiency lead to the use of pragmatic approach for applying leadership theories and models. Further, for bringing coordination among employee’s demands of effectual methods can be used so that pace of different employees can be matched (Gelfand, Erez and Aycan, 2007). It specifies proceedings for the purpose; manager faces many challenges such as pace difference, familiarity with technological advancements and coordination among employees to use a particular equipment and machinery. For instance, natives at Romanian workplace are more equipped with knowledge and information to use high techs but immigrants from UK are required to be trained to comply with employees working to maintain pace with them.
Language barrier: One the most important aspect of management is effective communication. Communication is in different forms one is verbal and other is non verbal. Nurturing and maintaining effective coordination among employees of organization is a major concern of the management. One of the biggest obstacles in developing strong relational constructs between employees is language barrier faced by them. Both of them know different languages due to different belongings (Fincher and et.al., 2008). It hinders the fast pace growth of operations by affecting different functions such as delegation. Language differences leads to the imprecise delivery of tasks and orders. Communication gap occur which affects smoothness of working and functioning. When gap occurs in the delegation and communication, execution of tasks gets affected.
Managing cultural diverse workforce: Managing workforce from different cultural background is a crucial task for the management. Bringing coordination and resourceful communication are the important components (Waldman and et.al, 2006). Employees from different work-culture have different work philosophies, attitude towards methods of functions and other different diversity. To manage them include different areas such as bringing them together to work for a common goal and target. It enables them to increase their efficiency and also leads to increase in productivity of organization. Developing several interpersonal skills such as decision making, leadership, communication adds on to pacing out achieving targets.
Suitable Leadership Approach/Style For Leading Change At The New Manufacturing Facility
Leading employees belonging to different culture endows a manger with the slew of responsibilities and duties that are required to be executed by adopting strategic behavior and implementation of suitable theories and modals. For that, different aspect is required to be kept in consideration. To overcome the cultural differences in employees some ways can be adopted which deals with the situation in an effective manner.
Market research: Before proceeding to the establishment of any venture or starting afresh it is very essential to completely analyze the internal and external situation of the organization (Sczesny and et.al, 2004). External analysis refers to checking and monitoring of factors and its compatibility with the organization that is the political scenario, economic situation, social aspects, technological differences and similarities, legal aspects and also the environmental conditions prevailing in the country. Adaptability with these factors is assessed by considering all the dimensions. Apart from this, internal analysis is done in which total internal scenario is taken into consideration such as employer-employee relationship, strategic formulation, employee’s related issues, operational management and the level of technological advancements prevailing in the organization and competency of employees with this equipment and machinery. It includes overall analysis of organization that decides its strengths and weakness so that it can be overcome and rectified by using proper methods. Further, by inculcation of all the theories and methods into the methods and processes adopted to accomplish goals management can be made systematic and in planned manner.
To lead an organization with employees it demands pragmatic approach towards leadership (Nahavandi, 2009). It means that manager is required to use different leadership style in different situation as per the need and requirement so that it can be handled efficiently. Manager of Endon engineering PLC uses styles and approaches accordingly.
To bring discipline in the organization and manufacturing unit, manager uses autocratic leadership styles. According to this style, the leader takes all the major decisions without involving employees of the organization such as appointment and selection of employees. In this process, rigorous methods are adopted by managers to recruit eligible candidates from the pool of applicants. Apart from recruitment and selections, decisions are taken with respect to appointing candidates to their suitable palaces and designations and formulating strategies with respect to execution of plans formulated (Ayman and Korabik, 2010).
Every individual possess different learning style and the ways to process information. To increase the productivity and efficiency of employees for faster production and increased preciseness, manager uses different methods for it such as VARK learning style. It enables the manager to know the ways employees process the orders delegated to them and accordingly tasks are allotted to them as per their strengths and area of field. Compatible assignments and projects are given to them so that it becomes easy for them to work and function.
To form team and process the execution, a model is used by the manager that has to effectively work upon the organization with employees from different cultural backgrounds. Manager uses Tucuman's team building model. It included various stages for forming teams such as forming and storming (Alon and Higgins, 2005). In these gradual stages, teams are formed step by step. This method is proved very effectual in implementing tasks and methods to accomplish goals of manufacturing.
There is always scope of improvement and up-gradation. Apart from the purpose of improvement and up-gradation, there is requirement of training of employees to bring adaptability with new culture and environment. Training is organized and conducted by manager in different aspects (Schein, 2006). A pre-departure training was conducted for the employees operating in UK to adapt different culture in many dimensions like a basic training was given about Romanian language and cultural proceedings, the use of technologically advanced equipment and machinery, to work in a team and united work culture and other related aspects (Schoorman, Mayer and Davis, 2007).
To remove language barrier among employees from different culture, training is conducted. One of the effectual methods to remove obstacle is introducing a single language in the organization so that it is easier for all the employees to communicate and delegate employees about their tasks. Further, the employees communicate with each other in universal language helps in building coordination among the members. For this purpose, a pre-departure training was given to the employees of UK so that they do not face any issue in adjusting in new culture and environment with different language.
Motivating and inspiring team members is the important component followed by the leader to keep his team and members motivated towards works and their goals. Further, the degree of coordination and closeness decides the efficiency and productivity of employees to achieve goals and targets. For that purpose, manager uses different theories and models to keep their employees motivated. The tuchman model used by manger for a team proves beneficial for the management as it results in better coordination and mutual respect. In one of the stage of Tuchman’s model employees discuses about opinions and ideas to derive better results and outcomes. This stage brings mutual consideration which helps in building stronger bond between employees from different culture (Avolio, Walumbwa and Weber, 2009). Apart from this, the manager uses models such as Herzberg two factor theory and Maslow’s theory of hierarchy of needs model. It enables the managers to realize needs of employees and fulfill their needs to keep them motivated. It concentrates on motivators and hygiene factors such as maintaining healthy work culture and motivates employees. It helps in realizing needs and requirements of employees to accomplish the goals and keep themselves inspired.
Further, at certain time managers uses transaction and transformational approach of leadership. In this style, manager seeks advice from the employees to make changes in functioning and operations of the organization. Employees are intimately connected with the challenges and facing problems so management should consider the need for the advice and suggestions to make changes. In transaction approach of leadership, management includes employees to get opinions and ides in different aspects of organizational working.
Critical Success Factors For Successfully Engaging Your New Workforce With The Change Process
For the success of engagement of workforce in new place, there is requirement of several favorable factors that helps in improving and rectifying conditions of organization and employees working in that area (Walumbwa, Hartnell and Oke, 2010). Fundamental components required for the success of establishing new venture are mentioned as follows:
Effective operational management: Fundamental requirement of an organization to establish its venture at a new place is the effective operational management adopted by the management. It inculcates different components such as the human resource management, capital management, consideration of financial resources, human resource management and compatibility of the human resources with the machinery and equipment used in the manufacturing. It includes all the factors and dimensions that deals with the processing of all functions and operations occurring in an organization (Tsui, Nifadkar and Ou, 2007). Major components that decides the efficiency level is effective strategic formulation. It means that there is the need to form suitable strategies in all the areas of work.
Human resource management: Major component that decides the success or failure of any task and work is the efficiency and productivity level of the employees working in the organization. It includes supervision of employees in allocation and allotment of tasks and duties to accomplish targeted goals (Javidan and et.al, 2005). Proper assignment of tasks and duties enables the manager to derive optimum results and outcomes. It also includes training of employees to bring adaptability with the new culture and environment so that it may face minimum number of problems to deal with the changing scenario. Manager uses different suitable theories and models to make their employees efficient. Further, with the above analysis it was found that there is difference in the technological knowledge and information possessed by the natives of two countries. Romanian employees are fully equipped with methods and ways to use advanced equipment and machinery whereas there is the need to upgrade the skills of employees going from UK is to imbibe in them the technological advancements.
Facing challenges and use of strategies: For the efficient use of resources, it must adopt the optimum level of strategies and methods so that unexpected challenges can be deal with perfect efficiency and effectively. For that purpose, management are required to equip with the ways to make suitable changes when required and also imbibe certain attributes in the management and employees as per the need. Further, at the time of challenges it is also required that manager should derive results and outcomes from the employees so that it does not hinder growth (Majlergaard, 2015).
From the above study and analysis made, it can be articulated that manager is required to take into consideration different aspects of organizational working to bring adaptability to the environment with different culture and scenario. There are many differences which the manager encountered to make change of the establishment to new manufacturing facility successful. Endon engineering PLC was operating in UK and has made shift to Romanian manufacturing facility. To bring adaptability to the new culture, manager has used different theories and methods for leadership, motivation and team building. Further, various methods have been adopted by the manager to remove flaws and obstacles. Training was conducted to bring adaptability in different culture, language and technological differences.
- Alon, I. and Higgins, J.M., 2005. Global leadership success through emotional and cultural intelligences. Business horizons. 48(6). pp.501-512.
- Avolio, B.J., Walumbwa, F.O. and Weber, T.J., 2009. Leadership: Current theories, research, and future directions. Annual review of psychology. 60. pp.421-449.
- Ayman, R. and Korabik, K., 2010. Leadership: Why gender and culture matter. American Psychologist. 65(3). p.157.
- Chhokar, J.S., Brodbeck, F.C. and House, R.J. eds., 2013. Culture and leadership across the world: The GLOBE book of in-depth studies of 25 societies. Routledge.
- Fincher, C.L., Thornhill, R., Murray, D.R. and Schaller, M., 2008. Pathogen prevalence predicts human cross-cultural variability in individualism/collectivism. Proceedings of the Royal Society of London B: Biological Sciences. 275(1640). pp.1279-1285.
- Gelfand, M.J., Erez, M. and Aycan, Z., 2007. Cross-cultural organizational behavior. Annu. Rev. Psychol. 58. pp.479-514.
- Grisham, T. and Walker, D.H., 2008. Cross-cultural leadership. International Journal of Managing Projects in Business. 1(3). pp.439-445.
- Gupta, V., MacMillan, I.C. and Surie, G., 2004. Entrepreneurial leadership: developing and measuring a cross-cultural construct. Journal of Business Venturing. 19(2).pp.241-260.
- House and et.al., 2004. Culture, leadership, and organizations: The GLOBE study of 62 societies. Sage publications.
- Javidan, M. and et.al., 2005. Cross-border transfer of knowledge: Cultural lessons from Project GLOBE. The Academy of Management Executive. 19(2). pp.59-76.
- Javidan, M., Dorfman, P.W., De Luque, M.S. and House, R.J., 2006. In the eye of the beholder: Cross cultural lessons in leadership from Project GLOBE. The Academy of Management Perspectives. 20(1). pp.67-90.