Electronic communications ltd (ECL) was no exception, and it was also attracted by the opportunities in Chinese market. The company has decided to make China its second home and seek common prosperity with Chinese people. ECL knew that there were major gains to be made, but there were also risks and challenges.
The major challenge faced by the company was the management cultural differences. Another major issue was that whether it should adapt ECL’s management practice to the Chinese culture or it should establish ECL’s global management policy in China. A successful cultural alignment is the most important thing for a multinational organization.
The company has to deal with the cross cultural challenges in the working environment of China with the local labor and employees of the company. The company is headed by the top management which is operating form the United States of America so the top management has to maintain a cultural image of Chinese people and then they have to decide for any issue or plans to be implemented.
PROBLEM IDENTIFICATION
The company is based in United States of America and the problem is that the culture of America and the culture of China are totally different from each other. The company is considering about the culture they need to adopt for the operations in China. The company is new to the Chinese culture and if the company does not allow the culture of the people their required space the company may foresee loses as the employees will feel demotivated and will avoid working in the current environment.
The company, if not follows or respects the culture of the people of China, will not be able to perform in an appropriate manner.
The company will face problems like employees turnover, low motivation, conflicts, bad attitude and the worst of all can be strikes by the labor unions.
How the company will manage its operations in China with the Chinese labor and what type of culture wills suite the company in China?
SITUATION ANALYSIS
Cultural issues are the most important to be addressed at first because cultural issues will create the daily operations environment and it is a critical factor for the company. It is not just a problem for the ECL but it is an important issue for every multinational company entering into a new foreign market.
The management of the company must determine what decision will be prudent to adapt to the Chinese culture or to apply the west-centric management practices to ECLChina. The top management of the company has to make a decision between the two, either to adapt the culture or apply the culture of west. The company needs to find out that they need to develop a reliable management plan to attract, develop and retain leaders within the company.
A key issue for ECL is learning how to effectively integrate managers from a different culture. People of different culture react differently in different situations and the reaction depends upon the culture of the person. This is why cultural relationship is also important to be established in an organization.
The cultural issues rose when the expatriate managers provided feedback to Chinese employees who felt the feedback as a criticism to their culture. However the company’s management should focus on creating tasks that will contribute to building relationships with ECL China associates. It is important for management to build personal relationships for conflict resolution......................
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