Norge Case Study
With the support from Managing Director Lars Jorgensen, Jiao started to implement changes o the company’s personnel function in an analytical and result oriented manner. But after the climate survey result returned back from the management consultant, it showed several concerning areas that need to be addressed. One of the fundamental problems with Jog’s changes could be the lack of cultural consideration In his decisions.
Any business management decisions taken have to be based on the country’s custom and values. Hence, Hypotheses model will be applied to several aspects of Jiao Saliva’s decisions, to analyze the cohesiveness between his changes ND the cultural acceptance of the Portuguese. Analysis using Hypotheses model Power Distance In Portugal, the power distance between ranks Is above average compare to other countries, with a score of 63 from www. Greet-hefted. Com. This reflects the Portuguese culture of respecting authority, and negative feedback would be difficult for employees to give to higher ranking directors.
This was consistent in the climate survey, as it shows that higher ranking officers within the company mostly had higher grades. Therefore, Jiao needs to take that into consideration while analyzing the survey result. Individualism vs.. Collectivism Individualism has a very low score in Portuguese culture.
This means the people of Portugal prefer to work In teams, and discuss decisions In a group before they are made. This does not Jive with some of the decisions Jiao made. Jiao Implemented much of the changes without support or interference from the company’s managing director and managers.
Furthermore, Jiao created a company grading structure for jobs without any discussion with company directors, at the same time ordering them to not share those Job grades with the rest of the employees. This method impolitely contradicts the business culture of what Is acceptable to Portuguese.
Masculinity vs. Femininity Portugal scores low in this category. By definition per Hypotheses model, the culture is more nurturing, less excessive competition. There are several examples in Jog’s decisions that aren’t consistent with this theory.
First, Jiao applied deadlines for Job description submission from all managers, and used the 14th month bonus salary as a penalty If the deadline Isn’t met. Furthermore, Jiao implemented the “Results Evaluation System” as the company performance appraisal, using scoring system of 1 Norton Tort can employee’s JODI performance In an analytical manner, Glenn zero bonus to the ones that receive a score below 3.
To say the least, this tactic does not create harmony in this company of 57 employees, and it certainly doesn’t coincide with the Portuguese culture.
Uncertainty Avoidance Portugal scores extremely high in this category, given a 103 on wry. Greet- hefted. Com. This means the Portuguese do not like taking risks when it comes to business, and they prefer security over innovative opportunity.
Most people don’t associate Portuguese with entrepreneurship. This is partially the result of a socialist country that started back in the sass. This behavior of its people completely contradicts everything that Jiao Silva did to Norse in his implementation of functional changes.
His changes in wages, promotional methods, and organizational structure created a lot of uncertainty that could be unwelcoming and damaging to the moral of the company. Confucianism (not applicable, low relevance) Conclusion Within the climate survey received by Jiao Silva, the company’s synergy, HER policy and remuneration all scored very low and are categories of major concern.
After applying the Hypotheses model, it shows that one of the main contributing factors of these issues is the lack of cultural consideration given in Goads decisions.
Clearly, the employees of Norse, native to Portugal, did not appreciate the changes to a more competitive compensation structure, tying pay to performance, giving it more uncertainty. Lastly, the overall lack of communication between personnel was viewed negatively and possibly created tension and affected the overall synergy of Norse. Jiao Saliva’s fix should be open communication among all ranks, and a stable pay structure that nurtures the “Norse Family’.
