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Procedure:Case Analyses will be critiqued by your classmates and professor in a Discussion Forum.As in all business communication, be thorough yet succinct (as few words as possible while getting the job done).Notes:All students are to respond to two (2) Team submissions for each case whether or not their team is submitting. See Weekly Module assignments for due dates.(Please respond to the two sets of Case 7 just a simple and short response, At least 150 words.)
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Running head: BALANCING VALUES
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Balancing Values
Jennylyn Gran, Kelsey Jones, Demetris Mosley,
Joshua Riser, Leandro Suero, and Yazcara T. Choi
International Human Resource Management
Troy University
BALANCING VALUES
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Act 1
Identify the main issues raised and discuss how they may be explained in terms of the
cultural and institutional contexts of Pharmaz in general and Pharmaz India in particular.
The issues that arise in the case have to do with the cultural differences between the host
country subsidiary in India and the parent company, located in Denmark. Pharmaz has a strong
corporate culture and executives want all the companies’ subsidiaries to adopt it; however, they
seem to not take into account the cultural differences between countries. Pharmaz’s culture has
three pillars: empowerment of employees, equal opportunities for everyone, and openness in
communication between employees at all levels. As the case explains, while Amrita agrees with
and believes in the corporate values, she has not been able to apply them successfully with her
team. The first issue is that Amrita’s management style is different than what managers from
headquarters expect; they want her to delegate and empower employees instead of being
authoritarian. Their argument is that employees who are empowered to work independently learn
more yet she should intervene if someone keeps making mistakes. The first cultural difference is
apparent in this situation because Amrita is applying a management style based on her
knowledge of Indian culture; however, corporate insists on using a management style that is
more in line with organizational values. The result of Amrita using the management style that
corporate wants is that employees feel she expects too much and they ask for her guidance
anyway. Lastly, this hands off approach makes employees believe Amrita does not think their
work is important. According to Hofstede (n.d.), India scores relatively high in power distance
(77), therefore, it is a society that accepts hierarchies and is “dependent on the boss or the power
holder for direction;” as a result, employees expect to be told what their function is and to
receive clear directions (“What about India?”). Denmark, on the other hand, scores 18 in the
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power distance dimension, thus managers prefer to coach instead of leading so employees have
more autonomy to make decisions (Hofstede, n.d., “What about Denmark?”). The next issue has
to do with corporate feedback and communication. One of Amrita’s teams is having internal
problems, but no one wants to tell her what is happening and she has not been able to observe the
disputes herself. However, it seems that the problems started when one employee that belongs to
a socially higher ranked caste joined the team. Amrita has tried to follow the corporate value of
open communication, however, the team members and the team leader have evaded her
questions. An open communication culture makes sense for a Danish company. Their workplace
typically has an informal atmosphere in which employees refer to each other on a first name
basis, and they are consulted and encouraged to communicate (Hofstede, n.d., “What about
Denmark?”). Nevertheless, Hofstede (n.d.) explains that in India communication is top-down and
directive and negative feedback is never given bottom up (“What about India?”). Still, it is
possible that employees do not feel comfortable saying they have a problem with someone who
belongs to a higher caste (because of their acceptance of power differences), even though India
legislation asserts castes do not grant privileges in the workplace. The last issue has to do with
Niels Nielsen’s management style. As explained above, India scores high in power distance
compared to Denmark; thus, while Niels is used to a more informal workplace with blurry lines
when it comes to management and subordinates, Indians prefer to address their superior in a
more respectful way than their colleagues/peers. Niels wants the employees at the Indian
subsidiary to act more like the employees from the headquarters. However, having a strong
corporate culture and values is not enough if these values clash intensely with the host country
values. It seems Niels has the right intention and the best interest of the subsidiary’s employees
at heart, but Amrita knows better what works with the local employees because she knows the
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culture. She explains that rewards, promotions, and prizes can be implemented in order to
motivate employees to adopt certain aspects of the company culture. A reward system is in line
with Hofstede’s power distance dimension. He (n.d.) explains that Indians are responsive to
rewards and they offer their loyalty in exchange (“What about India?”). Given their cultural
differences, it seems Niels did not think this idea would work.
Act 2
Imagine yourself in Amrita’s position. Which proposal would you make to Niels Nielsen
and how would you argue in order to convince him?
The nature of the problem itself is the cultural differences between India and Denmark.
This is a subsidiary characteristic, when poor performance is due to industrial relations problems,
multinationals tend to attempt to introduce a parent country industrial relations practice aimed at
correcting the issue (Dowling, Festing, & Engle, 2017, p. 247). Niels Nielsen should consider a
more geocentric staffing approach and recognize that each part makes a unique contribution with
its unique competence and assess these differences. We would argue that it is necessary to
implement some adjustments in the corporate culture value system to get all the employees to
buy in. This practice would, in the short term, retain employees and meet their need.
Amrita’s concerns are:

The headquarter wants to carry out more complicated task in India and expectations are
more empowerment and less micromanagement.

The team members are waiting for Amrita’s approval, and they do not know much about
their colleagues’ work, and it is considered under the knowledge sharing.

Teach the employees to live the values.
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When she empowers the employees, they get upset because in the Indian context their
expectations are to be told what to do by the manager. They stick to the instructions and
do not want to go out of the lines – it is not surprising for the Indian culture because they
are taught this in the education system.

Promotion is expected by Amrita for the employees to motivate them.

The organization is considerably flat when compared to other companies and expectation
is having more titles to see the hierarchy clearly.

Potential quarterly prizes for recognition.

The caste system has an influence on social relationships and politics.
We would suggest retraining new hires and training should be aligned with the corporate strategy
and consider employee rotations between other countries to help change the culture within the
organization. Consider a way to minimize or prevent psychological and stress related problems,
and this could be done by creating more flexibility in the workplace (Dowling, Festing, & Engle,
2017, p. 262). Lastly, sharing learning standardization and locally adaptive customization can be
implanted, which also creates strategic involvement of the HR department.
Act 3
1. Do you feel that the measures taken to implement the corporate values and reorganize
work in the financial services center have been appropriate?
The measures taken have not been appropriate. Neil wants to impose the headquarters’
corporate values to its subsidiary company in India. It is inappropriate to order that the same
values should be applied to the companies that are located in different countries. Denmark and
India have different cultures, therefore, what works in Denmark may not work in India. Hofstede
stated that “culture is the collective programming of the mind that distinguishes the members of
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one group or category of people from others” (as cited in Virkus, 2009). Since every country has
cultural differences, it would be difficult and challenging to enforce that subsidiaries of the
multinational company must possess the same values similar to the parent company.
Based on Hofstede’s five dimensions of culture, Denmark received low scores for power
distance, masculinity, uncertainty avoidance, and long-term orientation compared to India; but
received a high score for individualism (Hofstede Insights, 2019). This suggests that Denmark
and India have different cultural perspectives. Based on the five cultural dimensions’ model,
India scores high on four them. Since India received a high score for power distance, it explains
why the employees are more willing to follow what Amrita commands them and rely on their
team leaders for direction or decision making. Forcing Amrita to change her leadership style by
adapting the Pharmaz corporate values is not advisable since her team members have different
attitudes and behaviors compared to the employees in Denmark. Amrita understands what the
company wants her to do, but she also recognizes that her team has different values and it will
take longer before they can change it. Additionally, India’s work culture is contradictory to
Danish people. They constantly need supervision and pushing them to have autonomy or make
their own decision would only result in conflicts. They also have differences when
communicating. Amrita tends to hold back her opinion or communicate indirectly while Neil is
very straightforward. Neil also hesitates every time Amrita makes suggestions on how to
implement the corporate values. He needs to listen and be more open. Also, Indian employees
should be given more time to adjust to the new corporate values rather than expecting them to
adapt right away.
It is noteworthy that Amrita has tried, to the best of her abilities, to implement these
values. According to the Indian Journal of Industrial Relations, the most important factors related
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to empowering employees are control, intrinsic motivation, seamless communication, and
support (Srivastava & Madan, 2018). Armita has extended the control of the environment to
employees by allowing the teams to perform tasks independently without as much direct
supervision. The intrinsic motivation of the employees increased after the addition of the job
titles throughout the department. Seamless communication has been attempted by incorporating
the team morning meetings. Support has been shown from Armita through the team leader
observation and the reward system implementation.
2. Would you have done anything differently?
There are a few things that should have done differently. When looking at the company
values and the cultures involved, they need to know how to translate this to achieve a perfect
balance between the two. Neils should have spent more time listening to the feedback that was
given to him. Another good way would have been to incorporate the feedback from her teams
and see what all they would suggest. This could have helped to see what matters to the people
that they are affecting with these decisions. This would have also provided more information to
form more well developed decisions for the cultural differences there. According UK India
business counsel (2019), an office such as this one does not follow a vertically structured
hierarchy, with closely defined responsibilities; they will have to create a dynamic feedback and
communication mechanism between the headquarters and Indian employees to encourage
collaboration.
In India is a high individual society that thrives on titles and positions. This gives the
employees a sense of belonging (to a certain caste) and knowing exactly where they rank
amongst their peers. According to relocate global (2018), a good rule is to always lean on the
side of formality initially. This leads us to the plan of action that should have been put in place at
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first. They should have expanded the hierarchy there and titles in order to keep with the customs
and traditions. If they were to implement the changes to the headquarters values, they should
have started small with a test team to see if it would hold or if they could find a middle ground in
order to achieve balance between the two. There should also be more time spent on the software
the employees use in order to make information sharing more accessible to anyone in the
organization. This would allow them to generate a system where when anyone opened their
account, they would have seen what the problem was and continued to give the proper advice.
These are the changes that we believe would have been a better fit.
Since cultural change implementation is challenging, it would have been beneficial to
incorporate staff training initiatives for subordinates on teamwork, self-efficacy, and
communication prior to the change (Burke, 2016). It was stated that the team leaders understood
the values and attended several presentations to communicate the values. All the team members,
regardless of job title, should have participated in these presentations. Often the inconsistencies
experienced among teams are due to the lack of understanding of the common goal. Everyone’s
attendance would help ensure that all team members have the same level of understanding of the
expectations of the organization.
3. How should one proceed now to achieve the best possible result to Pharmaz India’s
financial services center?
Pharmaz India’s financial services center has done very well in implementing a hybrid form
of the corporate values in the location. Given that the financial services location is located in
India it is important to consider the culture before implementing drastic changes because it could
lead to the departure of employees who may not feel the values align with theirs. Every country
will have their own culture and values that can help determine how an organization should
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conduct itself. Geert Hofstede created a theory with dimensions that could be applied to cross
cultural communication (Anastasia, 2015). There are six dimensions, and these include power
distance, uncertainty avoidance, individualism vs collectivism, masculinity vs femininity, longterm vs short-term orientation, and indulgence vs. restraint (Anastasia, 2015). These dimensions
were identified by Hofstede to differentiate cultures (Neghina, 2009). Culture is of great
importance because it affects the perspectives of individuals which leads to a direct impact on
strategies (Neghina, 2009). Managers need to be precise with their decision making and
negotiations because the culture can either make it an easy or a difficult task (Neghina, 2009).
Just like nations have cultures each company can have their personal corporate culture which
affects employee satisfaction (Paton, 2016). Corporate culture affects how interactions within the
organization occur; moreover, it is a “driving force in how the company does business” (Root,
n.d.). Just like Hofstede’s culture criteria can be applied to differentiate culture so that managers
can strategize, corporate culture too requires managers to be aware of the effects of the
company’s culture. Geert Hofstede’s cultural dimensions help discern any differences in culture.
When Hofstede’s dimensions are applied to India the organization can easily be identified as
high-power distance given, employees were initially dependent on guidance. Similarly, they are
high in individualism as they seek reassurance for their hard work via recognition and rewards.
Given these observations the organization should seek to encourage and acknowledge individual
accomplishments. Implementing more titles will be beneficial for the morale of the employees
which will help the employee turnover. Given that there are competitors it is important that the
employees’ culture and needs are considered.
To achieve the best possible results for Pharmaz India’s financial services center the
upper level management needs to increase their levels of empowerment. The organization has
BALANCING VALUES
successfully stated the values of the company, but there needs to be continuous reinforcement
among supervisors. The company could implement regular training and development sessions
that focus on acquiring skills to psychologically empower employee’s attitudes and behaviors
from a variety of cultural backgrounds (Burke, 2016). Top level management, such as Niels,
lacks the cultural competency needed to empower the employees in an appropriate manner.
Amrita seems to be open minded, realistic, and culturally aware when selecting empowerment
strategies, but the same attitude is needed from the top level managers collectively. The
organization’s values must be evident through the daily behaviors of supervisors in order to
successfully transfer to subordinates.
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References
Anastasia. (2015, September 4). Understanding Cultures & People with Hofstede Dimensions.
Retrieved July 17, 2019, from Cleverism website:
https://www.cleverism.com/understanding-cultures-people-hofstede-dimensions/
Burke, R. J. (2016). Human resource management applications in the developing world:
Empowering employees. Iranian Journal of Management Studies, 9(4), 795-800.
Business culture in India. (2019). Retrieved July 17, 2019, from https://www.ukibc.com/indiaguide/how-india/business-culture/
Dowling, P. J., Festing, M., & Engle, A. D. (2017). International Human Resource
Management. Andover, Hampshire, United Kingdom: Cengage Learning.
Hofstede Insights. (2019). Country comparison. Retrieved from
https://www.hofstedeinsights.com/country-comparison/denmark,india/
Hofstede, D. (n.d.). What about India? Hofstede Insights. Retrieved from https://www.hofstedeinsights.com/country-comparison/india/
Hofstede, D. (n.d.2). What about Denmark? Hofstede Insights. Retrieve from
https://www.hofstede-insights.com/country/denmark/
Magazine, R. (2018, January 3). Understanding business culture in India: Country pages:
Relocate magazine. Retrieved July 17, 2019, from
https://www.relocatemagazine.com/articles/understanding-the-impact-of-culture-onbusiness-in-india-crown
Neghina, C. (2009, June 29). Hofstede – Cultural differences in international management.
Retrieved July 17, 2019, from SlideShare website:
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https://www.slideshare.net/preciousssa/hofstede-cultural-differences-in-internationalmanagement
Srivastava, S., & Madan, P. (2018). A Measure for Employee Empowerment in Indian Work
Setting. Indian Journal of Industrial Relations, 54(2), 296–308. Retrieved from
http://search.ebscohost.com.libproxy.troy.edu/login.aspx?direct=true&db=bth&AN=1331
74386&site=eds-live
Virkus, S. (2009). Leadership dimensions: Culture and leadership. Retrieved from
https://www.tlu.ee/~sirvir/IKM/Leadership%20Dimensions/dimesnions_of_culture_geert
_hofstede.html
CASE 7 ANALYSIS
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Case 7 Analysis
HRM 6645
Troy University
July 18, 2019
Team 1
Jillian Allen
Ka’Chica Dukes
Christopher James
Royia Marsh
Destiny Pinyan
CASE 7 ANALYSIS
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Case 7 Analysis
I. Problem Identification
Amrita Chopra, a senior financial manager in Pharmaz India, has encountered challenges
implementing corporate values from the Pharmaz headquarters in Denmark to the local work
procedures.
II. Analysis
Identify the main issues raised and discuss how they may be explained in terms of the
cultural and institutional contexts of Pharmaz in general and Pharmaz India in particular.
Main Issues. Pharmaz, a multinational company characterized as “value-driven,”
attempts to maintain three core values in its headquarters and across its subsidiaries:
1. Empowerment, implying that all employees should be able to make independent
decisions within their respective areas of responsi …
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