Erie Polymers joint venture Essay

INTRODUCTIONERIE speciality chemicals was a gild which is based in Cleveland, Ohio, which moved to china due to the key support provided by them in expanding their industrial capacity relating to chemicals. In revise to expand its production in China performance polymers had merged with Wuhan plastics factory to form Wuhan Erie Polymers (WEP). Stanley Wong was the bedr of the team up that negotiated the word venture and soon became general managing director and because chair of the Joint venture. Though he was rattling pleased with his transfer a scum bagtha to Gary, he wasnt finished yet. He wanted to nominate a successor who would take the company to a nonher level. He was a bang-up leader as he motivated his employees in many aspects and he had as well created a unique conclusion between the Chinese and the westerly practices.Ans1) if I had to advice the organisation on who to succeed Wong thence I would lease MR Henri Boulanger as he has been in the organisation f or the past 16 geezerhood and he overly has 24 years of motion experience. Though he lacks Chinese skills he yet gets on well with his Chinese subordinates. He has withal been very effective in his current send and he has also introduced certain(prenominal) techniques such as marketing and net on the job(p) which is very of the essence(predicate) for any organisation. According to me due to his intelligence and energetic levels he would also be able to inculcate leadership and adapt certain principles in the organisation in order for it to run efficiently and smoothly.He would catch a democratic leadership style where he will relate many employees in the organisation before taking any key decision regarding the companys future. Certain theories relating to leadership are take onful in many organizations for it to perform on a high scale. 1) feature advancement to leadership-Managers can utilize the information from the theory to evaluate their position in the organiza tion and to assess how their position will be do stronger in the organization. This theory makes the managers realize their strengths and weaknesses and they can also get an discretion of how to develop their leadership qualities2) Behavioral approach- this approach involves structuring the roles of the subordinates by providing them with instructions, and behaving in slipway which will maturation the performance of the convocation. Certain types of tasks are given to employees in order to meet the goals of the organization3) Contingency approach to leadership-this theory refers to the group atmosphere and to the degree of confidence, loyalty, and attraction the followers feel ab out(p) their leader. If certain favourable situations occur then in that respect has been a positive consanguinity between the followers and the leader which means that the task was clearly delineate and there is a clear leader position force.Certain principles which would be inculcated by MR Boula nger in the organization such as1) Division of work2) Authority and responsibility3) Discipline4) Unity of command5) Unity of mode6) Remuneration7) orderans2) cross cultural differences and diversity conflictsthe success of the sound out venture depends upon the compatibility of the partners and this compatibility involves finis as well. Culpan (2002) suggests that each partner in the colligation venture brings its own culture and if these cultures are not compatible then they will make the pronounce venture vulnerable. depending upon the source, it was reported that 37 and 70 percent joint ventures fail because of cross cultural differences between partners.These joint ventures comport been reported to suffer from communication,cooperation, commitment, and conflict-resolution problems caused by partners value and demeanour differences, which in turn causes interaction problems that adversely affects the joint venture performance. Moreover, value and deportment differences b etween culturally distant partners bend interpretations and responses to strategic and managerial issues, increase difficulties when making transactions and sharing information in international joint ventures (Mohr and Spekman, 1994).There are two types of cultures that directly affect the joint venture, source one is the organizational culture and second one is the national culture. bridle-path and Beamish (1990) stated that the problem in IJVs is due to the influence of the national culture on the behaviour and direction system that leads to conflicts and differences in the workplace. The organizational culture plays a significant role in the prevail of knowledge within the organization but at the same judgment of conviction it can also act like obstruction in the mould (Almeida et al. 2002). The national culture evolves around societal norms consisting of values which are share by major part of the population. Once, a system has been developed it is very hard to change and any variation in the institution does not affect the societal norms due to the deeper levels of values and beliefs. (Hofstede, 2001, p.11)There are 3 broad categories used by the western sandwich organizations in order to manage differences in cultures when operating internationally. The first is that the organization can build a strong organizational culture internationally so that all part of the organization, wherever they are located, share the same organizational culture. This approach assumes that the homogeneousness of cultures creates the best way of managing the organization. This approach had also been criticised because in order of reproducing the culture to its simplest form the distinctiveness of the culture can be lost.The second approach for managing differences in culture is to develop a common technical or professional culture. This approach does not try to ensure homogeneity within the work force but it rather, seeks uniformity through strong fiscal and plan ning systems. The organizational structuredictates procedures and processes, as well as specifying the sources of expertness and decision making within the organizational hierarchy.The third approach is to admit each culture alone, allowing each subsidiary to develop its own organizational culture, which is probably tied to the national culture with varying degrees of influence.Hofstede (2001) came up with quint dimensions of the national culture which all societies subscribe to cope with and they used to touchstone cultural differences between organizations1) situation distance- the higher the power distance the more centralized and hierarchical the structure of the organization is. All organizations should increase their power distance in order to overcome any cultural barriers 2) irresolution avoidance- organizations with high uncertainty avoidance are usually bigger in size and the loyalty is much stronger. These organizations are usually reluctant towards saucily techno logy and are more prone towards change. (Hofstede 2001)3) Individualism and collectivism- this dimension measures the design of the relationships an individual has towards the organization. Organizations having high IDV show individualistic and task oriented behaviour of employees (Hofstede 2001) 4) Masculinity and femininity- organizations with high masculinity, promotes competitiveness and in-person accomplishments and the managers are treated as heroes (Hofstede 2001) 5) Long vs short term orientation- if the organizations have a low LTO then importance is given to short term results. (Hofstede 2001)On the basis of these dimensions we can easily evaluate and improve the national culture which directly influences the culture of the organizations working within that environment.Ans 3) Evaluating a successorStanley Wong who was the general manager of this company wanted to find a successor who would lead this company very well in order to maximize its sales and increase their prod uctivity.With reference to certain concepts we can evaluate Wongs challenge of decision a successor1) Performance management- performance management should be seen as a collective responsibility of employees and employers to see that there is continuous return in the tasks, activities and jobs that are agreed upon for achieving the organizations vision, mission goals and objectives.Mathis and Jackson (2008) suggested that certain responsibilities managers need to take into account while managing the company.1) Setting agendas- this includes taking responsibilities and setting goals and objectives for themselves and the teams. 2) use relationships- managing people is about managing superiors, customers, suppliers and other external contacts 3) direction values- understands what unlikeiate roaring and appropriate management behaviour 4) Personality qualities- developing the necessary personal and psycho-logical characteristics to be able to deal with inevitable chaos, ambiguity an d stress associated with managerial jobs 5) Self- awareness- understanding ones personal style of leadership and working patterns and how this might have an impact on others.There are also methods for management cultivation1) Coaching- this is relevant for particular individuals experiencing motivation or self-confidence 2) Project work- this involves working in cross cultural teams on particular projects. It provides exposure to different functions, ways of thinking and doing things, as well as providing an opportunity to notice about different parts of the organization. 3) Action learning- this approach capitalises by the fact that many people learn most effectively is by doing things. It also represents a team activity by which members are set out to define and solve a problem. 4) Secondments- this provides development for an individual through a job in another organization for a defined goal. It also provides a way of broadening experience and of forcing the individual to lea ve their teething ring zone by having to experience different way of doing things 5) Developmentcentres- the designing of development centres is to focus on opportunities for directly to employees might undermine their power base and again concessions might be made unwisely.Thus there are certain concepts which are related to the challenges faced by Mr Wong in finding a successor.ConclusionsThus I would like to conclude by saying that the company might face a difficult period for a short time when Wong gets transferred. The new general manager would have to go through a challenging process in order to overcome cultural barriers and diversity conflicts in the organization. By introducing certain western management practices the company will be able to challenge on many fronts and also all the other employees will get along well with the Chinese employees and the company will run efficiently and smoothly.References1) planar World Knowledge, (2014). Principles of Management 1.0 Fla t World Education. Retrieved 26 November 2014, from http//catalog.flatworldknowledge.com/bookhub/5?e=carpenter-ch10_s02 2) Managementstudyguide.com,. (2014). Trait Theory of Leadership. Retrieved 26 November 2014, from http//managementstudyguide.com/trait-theory-of-leadership.htm 3) Martin, J. (2009). Human resource management. Los Angeles SAGE. 4) Mindtools.com, (2014). Henri Fayols Principles of Management Early Management Theory. Retrieved 26 November 2014, from http//www.mindtools.com/pages/article/henri-fayol.htm 5) referenceforbusiness.com, (2014). Leadership Theories and Studies organization, system, style, manager, definition, model, type, company, workplace, business. 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