Application of Theories to Analyse and Solve Organizational Issues Essay

Introduction

Presents, the construct of Globalization exists in the head frame of most organisations, which shapes their concern schemes and policies. Organizations rate globalisation as one of their major concerns, as it introduces cut-throat competition for limited resources and clients across the Earth. It is a huge field, capable of lay waste toing effects to organisations that unable to accommodate and react to the quickly altering concern environment. Companies are traveling international into unchartered topographic points in the hopes of spread outing, turning, and minimising the menace of competition from within their local markets.

As crisis and alteration are demanding rapid integrating into new markets, companies has to pull off a work force which can be different in assorted facets from the place state. This work force can be disputing to pull off and may necessitate different motivational schemes and incentive strategies to maintain employees motivated and to make a sense of belongingness in the employees. Hence, this may necessitate different function of leading to maintain the employees motivated and involved in order to retain them. And national cultural differences can be one of the grounds to demand altering function of leading.

Organizations opt for globalising their operations to accomplish competitory border over their rivals but this is possible under certain scenarios, such as when houses are able to understand and admit the difference in market constructions across assorted states, appreciate the value derived through planetary economic systems of graduated table and conveyance engineering and cognition across states ( Gupta and Govindarajan, 2001 ) . Therefore, it is of extreme importance that organisations modify their mentality towards a more planetary position to accomplish planetary fight.

This essay analyzes the issue which Haier faced when it started its operation in Pakistan. This issue has been seen by utilizing larning experiences from my Master category, the analytical accomplishments I developed, and larning how theories can be applied in work outing existent life issues in their existent life scenes.

Case of Haier Pakistan

Haier is one of the top trade names of white goods across the Earth and in China, arguably, the most valued trade name ( www.haier.com ) . Company ‘s planetary presence and its enlargement programs can be witnessed through its 29 fabrication workss across different continents, 8 research and development centres, and 119 trading companies all over the Earth across the universe ( www.haier.com ) . Around 60,000 employees in different states ( www.haier.com ) is another factor offering strengths the thought of his strong planetary presence.

Zhang ( CEO ) ‘s guided celebrated trade name scheme through its assorted phases, Haier ‘ trade name value reached 80.3 billion RMB. Main merchandises of the company are telecasting, air conditioner, nomadic phones, computing machines, H2O warmer, icebox, and place contraption integrating ( www.haier.com ) . Haier, in 2008, was chosen as amongst the top 10 planetary trade names of China ( www.haier.com ) .

Wall street diary, in July 2008, ranked first sing leading in Chinese companies ( www.haier.com ) . And recent ranking by Euromonitor, Haier remained at the top in the universe market of white goods. Invention, employees ‘ motive and quality civilization though alone schemes of publicity ( based upon excellence, non visual aspect ) , flexibleness, stigmatization, cognition sharing and utilizing local employees in its planetary operations have been the success factors ( www.haier.com ) .

Invention, productiveness and efficiency can be credited to its Overall Every Control ( OEC ) and trust on influence instead than on net incomes ( www.haier.com ) . Further, the civilization of the organisation based on affecting employees and making sense of belongingness has helped the manner to pull off and portion cognition, ensuing in gaining and prolonging competitory advantage ( www.haier.com ) . Seen, in this manner, its civilization has become its competitory advantage.

However, when company started its production in Pakistan, faced assorted challenges. One of the chief issues has been high turn-over of the employees. To understand the grounds for this issue, I have tried to use Hofstede ( 1980 ) theoretical account of national civilization to understand the consequence of national civilization in this respect and uneffective direction of the employees with different cultural orientation. In fact, assorted larning patterns and theories taught in Master category have enabled me to use certain theories to analyse the issue.

My Learning during Master Degree

First of all, I have learnt to read and analyse assorted theories and empirical surveies. Further, assorted class and instruction patterns have helped me, to some extent, to use theoretical cognition in existent life state of affairs.

Working on assorted undertakings has been important in assorted ways for me. It made me larn to work and organize in the group. Working on get the better ofing on issues during assorted stages of the undertakings has given me assurance to finish the work good in clip and in better quality in any prevalent conditions. Discussions and arguments have made me more extravert and have crafted in me the assurance of working as squad, a squad of diversified people coming from different cultural beginnings, distinguishable survey and experience back land, different courtiers and different civilizations.

In the given scenario of the globalisation at many degrees, this experience will turn out vital for my national and international environment while taking my future professional aims and assignments. In fact, these valuable experiences would turn out a beginning of finishing my future professional assignments. Though many countries such as thin determinations, selling communicating, and traverse cultural direction have been my country involvement, my focal point has been on cross cultural direction by understanding assorted relevant theories including Hofstede Model.

Hofstede Model

The recent development of civilization support theories have shown that civilization values are an of import component that affects administrations. The comparing between different states was made by placing and classifying civilization or forms of values. Valuess are the kernel of “ mental scheduling ” , the formation of the preferable and desirable with the construction of criterions where bing construction or behavior can be put side by side and analysed, and direct persons on the manner they feel, think or act in specific state of affairss and circumstance.

Hofstede research shows that cultural values can be presented in five dimensions ( Figure 2 ) . The 5D ( Five Dimensions ) theoretical account is a research-based theoretical account that sheds visible radiation on intercultural differences. The 5D reflects the common issues in the single state ‘s civilization, and consist of different countries of human behavior.

Figure 1 Hofstede ‘s Five Cultural Dimensions.

Power Distance ( PDI ) is the grade of credence and outlooks of the less powerful single in society, the unequal distribution of power. The chief issue here is how society trades with inequalities. Peoples in societies where there is a big difference in power distribution accept a hierarchal order where everybody has a topographic point and does non necessitate accounts. On the other manus, in societies with a low Power Distance, people work hard to maintain the distribution of power equal.

Individualism vs. Collectivism ( IDV ) : Bolshevism is where people belong to groups, for illustration, households, kins or administrations, and is taken attention of by relations or members of that group in exchange for trueness. Individuality is the behavior of people looking after themselves and their immediate household merely. This defines society ‘s self-image in footings of “ I ” or “ WE. ”

Masculinity vs. Femininity ( MAS ) : the predominating feminine values in society are compassion for others and concern for quality of life. With maleness, the dominant values are achievement and success. The masculine side of this dimension symbolizes the disposition in society to endeavor ever to better you, achievements, gallantry, assertiveness and stuff wagess for positive accomplishments. They represent a competitory nature. Femininity, nevertheless, stands for more attitudes that are concerted, modestness, concern for the weak and the quality of life. They are defined as consensus oriented.

Uncertainty Avoidance ( UAI ) : UAI is defined by the extent to which people are threatened by uncertainness and ambiguity, and seek to take avoiding action… The chief issue here is the manner a society trades with the uncertainness of the hereafter ; should it be controlled or merely allowed to go on? Countries where turning away is practised, seek to maintain a stiff codifications of belief and behavior, and tend non to accept unconventional behaviors and thoughts. States with assurance about the hereafter have a more relaxed attitude ; for them, pattern is more of import than rules.

Long-run vs. Short-Term Orientation ( LTO ) : a society with a short-run orientation tends to be more stable and steady ; it cares more for traditions, has really small inclination to salvage for the hereafter and dressed ores on speedy consequences. Whereas with a long-run orientated society, the inclination is to accommodate traditions harmonizing to altering state of affairss, it tends to be after and salvage, put and boom.

Problems at Haier Pakistan

Harmonizing to Tulgan ( 2001 ) cut-throat competition of the current epoch is “ war for endowment ” and, hence, organisations focus on retaining endowment invariably, ensuing in enhanced outlooks of the employees from the direction about the development and publicities. Current cognition based epoch, in fact, force the organisation to pull off cognition. And harmonizing to Nonaka and Takeuchi ( 1995 ) , one manner to pull off cognition is to place and retain the best people. Hay ( 2002 ) argues that best people leave the organisation when they feel that their professional involvements are non accommodated, ensuing in occupation dissatisfaction and loss of endowment and cognition for the organisation.

Hay ( 2002 ) further suggest that because organisations working forms are altering, diverseness in work force is increasing and organisations are prosecuting in a assortment of web of dealingss and spread outing the concern across the universe, the focal point of leading is distracted because of their multi-dimensional battles, go forthing a infinite for hapless relationships with the employees.

The job was employees go forthing due to dissatisfaction from the work environment. Pakistani civilization, harmonizing to Hofstede ( 1980 ) , has leftist and power-distance dimensions. Pakistani working in Hair had intrinsic feeling of relationship and to cognize their opposite number with whom they are working. However, it looked that Chinese focal point has been more undertaking oriented. This cultural difference has been found as one of the grounds for the grounds of employee dissatisfaction. This work environment made them experience stray and disgruntled. Furthermore, overall Hair civilization is more suited to knowledge sharing and has less hierarchies ( Easterby-Smith et, 2008 ) , but power-distance civilization of Pakistan seem to hold influenced the employees working in Haier Pakistan.

Peoples belonging to such civilizations need centralisation, waies form foremans alternatively of engagement and engagement in determination devising. Employees were non able to pass over out cultural barriers and waited for instructions from Chinese foremans. This brought down their public presentations and therefore deficiency of inducements and no expected rise in wages, ensuing in dissatisfaction and departs from Haier. This suggests that national civilization affects the public presentation of employees and same inducements strategy and promotional program are hard to work in different parts and states ( Van Wijk et al. , 2008 ) . The solution to such job can be found through the application of some leading and motive theories. Therefore, following subdivision reviews assorted leading theories and how their application could hold helped the Haier to get the better of cultural barriers.

Recommendations: Application of leading and motive theories.
Green Man Theories

These theories believe that leaders, born with unconditioned qualities, are extraordinary people, meant to take. Harmonizing to Bolden ( 2003: 6 ) ,

“ The usage of the term ‘man ‘ was knowing since until the latter portion of the 20th century leading was thought of as a construct which is chiefly male, military and Western. This led to the following school of Trait Theories ”

Trait Theories

These theories, in fact, concentrate on assorted traits which make a good leader. These theoreticians bring together assorted positive and virtuous human attributes to foreground good leaders. This list of characteristics of leading contains all characteristics from aspiration to spice for life. Harmonizing to Bolden ( 2003: 7 ) ,

“ The job with the trait attack lies in the fact that about as many traits as surveies undertaken were identified. After several old ages of such research, it became evident that no consistent traits could be identified. Although some traits were found in a considerable figure of surveies, the consequences ”

Behavioristic Theories

These theories, on the other manus, focal point on the actions and activities of the leaders instead than qualities of the leaders. Assorted leading manners have been studied and have got much attending of the practicing directors.

Situational Leadership

These theories are based on the construct that leaders should be able to manage the state of affairs. They should hold ability to understand the state of affairs and must hold flexibleness to command the state of affairs. Their manner can be bossy or participative depending upon the state of affairs.

Contingency Theory

Isaac ( 2001 ) suggests that

“ This is a polish of the situational point of view and focal points on placing the situational variables which best predict the most appropriate or effectual leading manner to suit the peculiar fortunes ” .

Transactional Theory

This theory dressed ore on the significance of the dealingss among followings and leaders, stressing on the shared advantages which can be consequence of “ contract ” utilizing which leaders act and deliver things including acknowledgment or wagess to admit the trueness and committedness of the followings.

Transformational Theory

The cardinal construct of this theory is alteration and the function of leading is to spot, envision and implement the transmutation of organisational public presentation.

Use of Leadership Theory in Haeir

Harmonizing to Isaac et al. , ( 2001 ) , leaders should hold a vision how to utilize best usage the organisational resources including fiscal and human resources while doing discernment about the hereafter and foretelling rivals and market state of affairss. In order to make these terminals, they should be able to fulfill and actuate employees and do them work volitionally for the organisational cause. This position of Isaac that leaders need to transfuse motive among employees is of import and can play critical function in doing the organisation a great success.

Working 8 hour is non sufficient, working 8 hour with the purpose to do the concern success is necessary. This means that more participative leading manner is important so that every employee knows the strategic purposes and working difficult towards accomplishing the organisational purposes. This theory helps the leaders to do strategic purpose of the organisation as purpose of persons and this helps them to be more involved and flexible. This engagement and flexibleness creates a sense of belongingness among employees, and consequences in get the better ofing any issues of dissatisfaction ( Isaac et al. , 2001 ) .

Theories of Motivation

To actuate employees assorted theories of motive have been discussed in the literature ( Isaac et al. , 2001 ) . The early theories of motive were based on simple constructs. One such simplistic construct was to actuate employees utilizing a behavioral history based on carrot and stick attack. This attack can be found in the survey of Taylor ( 1911 cited by Issac, 2001 ) and this theory suggests that wage employees for the good work and punish them for their substandard public presentations. Another construct was the impression that satisfied worker is a good worker which has been besides criticised ( Perrow, 1972 ) . However, current literature does non believe this simpleness and travel farther to detect and analyze behaviors of employees. Katzell and Thompson ( 1990 ) suggest that

“ Major theories of motive are classified as those covering either with exogenic causes, or with endogenous procedures ”

Certain theories relate motive to the extrinsic phenomena such as wagess and inducements including publicities, fillips and rises.

There exist theories which suggest that motive is related to intrinsic maps, which in fact influence and form the behaviours of the employees. For case, Steers et al. , ( 2004 ) suggest that it is the enjoyment at work that makes the employee motivated. They farther suggest this is the recognition of the public presentation and regard that makes the employees motivated. Expectancy-valence theory, in fact, is based on these intrinsic factors ( see Weiner, 1990 ) . In fact, the intent of these theoreticians is to propose which theory work better in the given state of affairs.

Application of Motivational Theory in Haier Case

As discussed earlier, it is the function of the leader to acquire best out of the employees by maintaining them motivated. Further, as discussed earlier that leaders must be able to move otherwise in different state of affairs because in the life of the concern, internal and external factors are altering. To get by up these alterations, leaders can non hold a standard scientific format to cover with all the state of affairss. The same is with the people.

Every individual has, if non alone, a different nature. Hence all the employees can non be dealt through utilizing one theory, based on intrinsic or extrinsic factors. Leaderships, hence, play the function in Haier to understand the nature of the employees and act consequently to actuate them. Further, even a individual human being can non be expected to act in the same manner every clip because his/her life is besides altering and his demands or demands can be different at different times ( Ofori and Toor, 2009 ) . So to maintain the employees motivated, leading function is important. Sometimes extrinsic wagess will work and on other occasions, intrinsic wagess will assist in this respect.

Decision

Presents, the construct of Globalization exists in the head frame of most organisations, which shapes their concern schemes and policies. Organizations rate globalisation as one of their major concerns, as it introduces cut-throat competition for limited resources and clients across the Earth. Haier is one of the top trade names of white goods across the Earth and in China, arguably, the most valued trade name. When company started its operations in Pakistan, company faced high employee turnover rates.

By using Hofstede Model of Culture which has been portion of my acquisition during MBA, I have been able to somehow offer some analysis of the grounds of the issue. The analysis reveals that same policies and schemes of maintaining employees motivated through same leading manner is hard to work. Employees can hold different demands and necessitate different environment, which suits them and which helps them to experience comfy and satisfied. And in this respect, I have offered my recommendations to use different theories, a portion of my acquisition in Master, to get the better of such issues. Hence, I suggest that there is a strong relationship between theory and pattern and my MBA category larning taught me how to utilize theories to analyze the existent life state of affairs and how to manage issues utilizing different theoretical constructs.

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