In today’s global marketplace I am constantly amazed at how obtuse many MNE’s (Multi National Enterprises) are about the culture they wish to operate in. If one does not try to assimilate the culture one wishes to operate in, and try to work and effective change within the culture, then failure will follow.
The text mentions this when it discussed a Vancouver company that believed their American sales people in the US were unable to understand the process and had to be brought to Vancouver to learn. ‘In one very low-performance company based in Vancouver, Canada, the CEO reported that Americans were incapable of understanding an effective selling process, even for selling in the US.’ (Moran, Abramson, & Moran, 2014, Pg. 117)
This type of attitude can lead to disastrous results. I was hired for a job as an HR manager in a country with a very strong union background. The ruling political party was formed from a labor union, as was the main opposition party. If staff wanted to unionize they had the full support of local politicians, and the backing of strong legislation on the matter. There was also an appointed Labor Commissioner who had legal authority to address companies who did not adhere to the countries labor practices.
The company’s headquarters were based in a country that had little respect for unions or workers’ rights. They viewed any unionization effort by the staff not only with fear, but also outright contempt. I was summoned to the headquarters to meet with the head of the corporate HR. He foolishly made the mistake of giving me a letter informing me that if I ‘allowed’ the staff to unionize he would fire me.
When I got back to the hotel I met with the Labor Commissioner and explained the situation. He informed the company in no uncertain terms that they would be shut down and not allowed to operate if they continued their union busting ways.
I stayed with the company for another year before I moved on. Interestingly the staff didn’t unionize while I was there, but they soon did after I left. Having an open door to my office, and working closely with staff to ensure a harmonious working relationship kept them happy. I respected their culture and worked within it. Headquarters might not have appreciated my approach, but if I had done what they wanted they would have been closed down, and I would have had a hard time procuring employment again, as I would have lost the respect of the locals.
Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing Cultural Differences (9th ed.). Oxford: Routledge
John Byron Spindle says
Sven,
As an HR manager, it would be hard to deal with that type of policy while trying to remain ethical. I feel that you made the right decision with taking that to the Labor Commissioner. Situations like that put you in a bad situation where you must make the tough decision to go around some to ensure the company does not fall into trouble. I find it interesting that the company did not unionize sooner. Is this the only company that you have worked with that has unionized?