CROSS-CULTURAL MANAGEMENT AT HYDRO GENERATION
Contents
Introduction
Cross-cultural management refers to the undertakings of management but within a cross-cultural context. Cross-cultural management involves the administration of individuals and activities that includes an alternate culture backdrop and dynamic background (Thomas, D.C. and Peterson, M.F., 2016). The study of cross-cultural management extends from training to analyzing ways in which people in an organization can deal with the conflict of clashes arising from diverse cultures. Managers within organizations acknowledge that members within their association have different cultural backgrounds. Besides, the organization’s operations if global, may extend to a foreign country with a different cultural background. The management strives to synchronize their organizational culture with that of the local community. It has never been more important for international companies to listen to and accommodate the local communities. Firms need to understand the people and places that they affect.
Hydro Generation, an international company based in the United States, is engaged in a dam construction project in Tanzania. The company vice president Graham Steinberg trusted Brett Jones, a project liaison specialist with administrative duties to oversee the completion of the project. It has been a rough journey for the company with recent concerns over the apparent misconduct of Brett Jones. There is a concern that Jones is struggling with the aspect of reconciling the organizational culture with that of the local community. He seems to lean more to the local community culture and ignoring the culture of his employers in the process.
This report explores the problem of the conflict that exists between the organizational culture and that of the individual and the local community. Also, the report explores some of the ethical concerns facing HG and ways in which the company is improving the livelihoods of the community. The report explores the aspects of organizational culture, organizational structure, and the ethics and CSR at HG.
Organizational culture
Organizational culture is defined as the underlying beliefs, assumptions, values, and ways of interacting that make up the unique social and psychological environment of an organization. Organizational culture extends to the expectations, experiences, philosophies, and company values that dictate the member’s behavior (Alvesson, M., 2012). In identifying the organizational culture of a particular firm, one may pay attention to their operations or way of doing things and the way the members of the organization interact with people from the outside world. Both management and their subordinates play a very important role in shaping the culture of their organization through some of the shared experiences and expectations that they have for each other. Company values, vision, and mission statement constitute their culture.
There is mention of the organizational culture at HG in the case study and ways it affects the cross-cultural management system. According to Steinberg, Jones appeared too eager to accommodate the Tanzanian culture more than the organizational culture of HG. The Tanzanian way of doing things embraced by Jones was in contravention to the organizational culture of HG and its ways of conducting business in foreign environments. There is concern that the actions of Jones would have negative repercussions on the company. Jones always adopted the policy of having things done with little regard to the mode of operation used in achieving the result.
Lawrence Bertelet, the founder and current CEO at HG built the company on the pillars of Christianity. Being a firm believer of Christianity and its practices, Bertelet impacted the organizational culture of his company to adopt a Christianity friendly approach to business. He believes strongly that business activities should embody Christian values. The organizational culture at HG reflects the principles of its founder. He believes that subordinates like Jones should be granted the freedom to implement to make decisions on behalf of the company but take responsibility for the consequences. There is mention of a company culture that encourages its employees to adopt standards of living that match the prosperity of their company. Jones disregards this when he prefers settling within a middle-level income neighborhood in Tanzania.
The Neo-classical organization theory gives more focus on the physiological and mechanical variables of organizational functioning. According to this theory, the behavior of people within an organization is influenced by factors bigger than physiology. Elton Mayo and some of his associates in the Hawthorne Studies identified that organizational behavior cannot be influenced by physiological variables only. In our case, Jones is earning more than enough salary to procure housing facilities within an affluent setting. This is not the case however, he goes against the organizational culture. His behavior does not have a physiological explanation for it. The neo-classical organization theory proposes that many socio-psychological factors are at play in motivating a human being at work. It also acknowledges the conflict between individual and organizational goals like is the problem with Brett Jones. Reconciling the goals of the individual with those of the organization is crucial.
The modern organization theory, developed in the early 1960s conceptualizes human behavior using data and treating the organization as a system with smaller functional parts. This theory approaches the organization as a system with smaller sub-systems and components found within. The modern organization theory identifies an organization as having human input, technological input, organizational inputs, and social structure and norms. For the system to operate efficiently, all the four components must be working in a synchronized manner. The environment, technology, size of operations, and the people influence the way an organization operates. Brett Jones engaging in some of the local tribe rituals is essentially against the organizational culture of HG that is built on the values and morals of Christianity. Environment as a factor influencing human behavior in the modern organization theory is too strong an influence on Brett Jones.
Concerning the problem at hand, I recommend Steinberg to retain the services of Brett Jones. Action must be taken by the company to initiate the reconciliation between the individual goals of their project manager and the organizational goals. The gap that exists between the two parties appears to be the main cause of conflict. An organization can be adaptable and agile by allowing various sub-cultures within the organization to emerge and thrive. For example, allowing their members to settle in any neighborhood that they deem comfortable and not dictating how they lead their lives away from the workplace. Making small compromises will eventually quell the conflicts between individual and organizational culture.
Organizational structure
The organizational structure includes activities such as allocating tasks, coordination, and supervision that are aimed at achieving the organizational objectives. Organizational structure is the platform that provides clear guidelines on what a person should undertake which activity and places the individuals supposed to make decisions at a level higher than the others (Steiger, J.S., Hammou, K.A. and Galib, M.H., 2014). It is defined as the viewing glass through which people can see the organization and its environment. When it comes to allocating responsibilities, people in the organization are placed into small groups or categories known as departments or workgroups in some cases. Depending on the task ahead, the organizational structure enables the allocation of tasks to individuals or groups. On the other hand, it creates a hierarchy of authority so that every person has an individual above them whom they report to. This enhances accountability so that every person takes responsibility for their actions. Overall, organizational structure smoothens the activities of coordination, supervision, and task allocation in an organization.
The case study presents a structure of authority that has the CEO, a vice president, and the project liaison expert that is based in Tanzania. Although there are three people only mentioned in the case, we can perceive the different levels of hierarchy. At the top, there is Lawrence Bertelet who is the founder and current CEO of the company. Next in line is the vice president Graham Steinberg who seems to be interacting directly with Jones the man in charge of the project. Brett Jones also has some authority as he is the person coordinating hiring and the overall process of settling in the experts. Also, he coordinates the importation of materials and clearing of the items with the customs officers. When a problem with the villagers came up, Jones had to seek permission from the headquarters to hire a specialist in African religions who took care of the matter. This strengthens the argument of a hierarchy of authority further.
Steinberg seems to be pondering whether to fire Jones or stick with him due to the immeasurable experience that he possesses. At the initial stages, Jones wanted to make sure that his superiors knew that he wanted an African assignment. This indicates that there are several people that Jones answers to. It is safe to assume that they have not been doing a great job at maintaining control and coordinating the activities of their subordinates. It is the reason why Jones has been on his own and his conduct on behalf of the HG Company being questioned widely regarding unethical conduct. If the senior managers above Jones kept a close eye they would have arrested the situation early enough. It indicates that there is a weak link in the organizational structure at HG. Jones was also accused by the locals of setting up a flat structure that seemed disorganized with nobody in place to wield authority.
Weber’s bureaucratic approach theory proposes organization structures are part of a broader society. According to Weber, organization structures are based on structure, specialization, predictability and suitability, rationality, and democracy. The problem of self-serving interest being experienced with Jones in our case study is explained with this theory. Jones has been granted freedom and democracy to make decisions on behalf of the company. He is not impersonal but instead perpetuating his self-interests that are at logger’s heads with those of the company.
Henry Fayol’s administrative theory identifies the organizational structure as a component of planning, organizing, and training, commanding, and coordinating functions. Determination of the effectiveness of an organization structure depends hugely on these activities. This is linked to the seemingly unethical activities of Jones to pay off people to attain favors. Besides, he is in the business of hiring close family members of the current workers which constitute poor planning. It could be the reason people are complaining of a flat structure that lacks a strong figure of authority.
It is recommended that the middle-level managers identify expert human resource managers that will come in between Jones and the employees and take over the process of hiring. Alternatively, a special team made up of mainly local should be constituted to assist Jones in supervising and coordinating the activities of the team of workers. Besides enjoying familiarity with the people that they are hiring, it would eliminate the element of bias that is currently blurring the vision of Brett Jones. Professional human resources will handle the hiring process better than Jones may fathom.
Ethics and CSR
Corporate social responsibility is defined as a type of international private business self-regulation that aims to contribute to the societal goals of a philanthropic, activist, or charitable nature by supporting, volunteering, or ethically-oriented practices (Advantage, C., 2020). It is an internal organization policy aimed at improving the image of the company. Ethics from a business view are the moral principles and standards that guide behavior in the world of business (Ferrell, O.C., Harrison, D.E., Ferrell, L. and Hair, J.F., 2019). Corporate social responsibility and ethics are integrated into that both advocate for responsible behavior from the company to serve the interests of the company. Traditionally, only the international companies adopted the CSR practices mainly due to the stringent budgets that small and medium enterprises run on. In the modern world, however, almost all business owners have adopted this practice. Ethics affects the business practices of a business with the managers leaning towards the business process that will uplift the society or preserve the environment.
A classic example of CSR is when HG Company initiated a resettlement package for the families of the people that would be displaced due to the construction of the dam. A resettlement package that included renovating a school and a health center of the area where the relocations happened. About 700 villagers were displaced by the dam, which prompted HG to go out of their way to ensure a smooth transition of the living conditions for the affected families.
On the other hand, there were grave concerns about the unethical conduct of Jones. For a start, Jones was engaging in nepotism and favoritism in the hiring process. He believed that passing information on employment opportunities by word of mouth was the easiest way of securing labor. Steinberg is concerned about the unethical practice that is acceptable in Tanzania. He is also worried about the outcome of Jones participating in the tribal rituals. It would be interpreted as a mockery of their culture and therefore igniting a hostility or worse still interpreted as a dilution of the Christian morals that the company strongly stands for.
The business ethics theory of CSR defines CSR as a social obligation and that companies have a moral duty towards the society. According to this theory, businesses have a responsibility to solve societal issues and make the environment a better place for the people surrounding the business. Concerning the theory, the actions by HG to offer a resettlement package that included the construction of social amenities were in no way a favor. It is something that was expected of them, more so since their business operations were the main reason why they were displaced in the first place.
The shareholder value theory of CSR by Milton Friedman argues that the sole responsibility of a business is to maximize the profits and ensure that the business follows all the legal norms while at it. This theory identifies making profits as a way of contributing to the betterment of society. As long as the business operations observe the legal and moral framework of the operating point then they have served their responsibility. According to this theory, if Jones was to steer clear of nepotism and other unethical business practices that he was engaging in, then that is considered a CSR enough. The company is not required to give out handouts but instead keep it professional and ethical in their operations. This addresses the problem of unethical business practices witnessed under the watch of Jones.
One of the basic recommendations is for the management to streamline their business operations to maintain business ethics. Mainly, the issue of hiring people by word of mouth should be dealt with by setting up a professional human resource department based in Tanzania. This department will be tasked with the sole responsibility of advertising vacancies, receiving applications, filtering the applications, interviewing, hiring, and eventual training of the potential workers. On the other hand, establishing a procurement department will eliminate the need for Jones to bribe customs officials and other officials for them to hasten delivery. Overall a great organizational structure will enable HG to accommodate stronger business ethics which according to the shareholder value theory is CSR.
Conclusion
In conclusion, the problem of unethical business practices and the perceived conflict between organizational culture and the individual and national culture can be traced back to the roots of a poor organization structure. The assumption is that the top tier managers, based in the headquarters in the USA are disconnected from the lower level managers working closely with Brett Jones. Organizational culture has an overall influence on the human behavior of individuals within the organization. Sometimes if the goals and objectives of an individual do not align with those of the organization that they are working for, their decision making will always come into question. This attributable to the fact that decisions made are self-serving and therefore there is little regard to the consequences of their actions to the organization. Business ethics at HG are being affected by the one-man run it all show that is currently going on. Minimal delegation or support is going on with Jones in Tanzania at the moment. He runs customs clearance, human resources, and assimilation of new workers, administration, and CSR all on his own. A common recommendation of establishing a clearer organization structure stands out among the three topics.
References
Advantage, C., 2020. Corporate Social Responsibility. CSR and Socially Responsible Investing Strategies in Transitioning and Emerging Economies, p.65.
Alvesson, M., 2012. Understanding organizational culture. Sage.
Ferrell, O.C., Harrison, D.E., Ferrell, L. and Hair, J.F., 2019. Business ethics, corporate social responsibility, and brand attitudes: An exploratory study. Journal of Business Research, 95, pp.491-501.
Steiger, J.S., Hammou, K.A. and Galib, M.H., 2014. An examination of the influence of organizational structure types and management levels on knowledge management practices in organizations. International Journal of Business and Management, 9(6), p.43.
Thomas, D.C. and Peterson, M.F., 2016. Cross-cultural management: Essential concepts. Sage Publications.