5Assignment: Strategic Financial Analysis

Read the scenario below. Then draft a 3–4 page business memorandum to Linda Hoff, Stanford’s CFO. In your memo, codify your findings and interpretations from the horizontal and vertical analyses and the level of alignment between the company’s fiscal management and its strategic direction. Include an Excel spreadsheet as an attachment to the memo. In this memo you will:

  1. Review the year-over-year variances contained in the audited Stanford balance sheets and income statements, which are contained within the provided Week 5 Assignment Spreadsheet [XLSX] for fiscal years 2015 through 2018. You’ll be expected to pay particular attention to the negative variances (color coded in “red”) that you believe to be potentially the most impactful to Stanford.
  2. Speculate as to the reasons for the negative variances.
  3. Examine the common size balance sheets and income statements looking for abnormally low or high ratios based on what you know about the line item and what you observe in the data for the other fiscal years.
  4. Look for patterns in the line items over time (2015 through 2018) and identify any unusual findings that may need to be examined further.
  5. Make a judgement regarding the alignment of the organization’s fiscal management with its strategic direction of the firm. Fiscal management is based on your horizontal and vertical analyses. The strategic direction is based on the vision, mission, and strategic priorities of Stanford.

Purpose

The purpose of this assignment is to familiarize you with financial statements, the need to align the financials with the strategic direction of the firm, and the process of performing a horizontal and vertical analysis of a company’s balance sheets and income statements.

The Scenario

You’re a Healthcare Administration Fellow at the prestigious Stanford Healthcare. You have been rotating through the various departments over the past 9 months and now you have the honor of working under the mentorship of Linda Hoff, Chief Financial Officer.

Stanford Medicine includes Stanford Healthcare, Stanford Children’s Hospital, and Lucile Packard Children’s Hospital Stanford. This organization uses an integrated approach to strategic planning, which incorporates jointly agreed upon strategic priorities from its various entities. It also ensures a high degree of congruency in strategic focus by each entity. Before outlining the strategic priorities for Stanford Medicine, it is important to take note that a firm’s directional strategy is comprised on three separate yet interwoven components: vision, mission, and goals (or, in this case, priorities). Armed with this knowledge, you have taken the necessary step and located and familiarized yourself with the vision, mission, and priorities of Stanford Medicine. Below is what you found. When examining a company’s financials, it is prudent to keep the directional strategy of the company in mind. After all, in order to advance many strategic priorities, which include fulfilling the mission and positioning the organization to achieve it vision for the future, it will require proper management of the firm’s scarce resources. Failure to properly manage the financial performance of the organization can compromise the company’s ability to maintain a competitive advantage in the marketplace.

Our Vision

Precision Health: Predict. Prevent. Cure. Precisely.

We will heal humanity through science and compassion by leading the biomedical revolution in Precision Health.

Our Mission

Improving Human Health through Discovery and Care.

Through innovative discovery and the translation of new knowledge, Stanford Medicine improves human health locally and globally. We serve our community by providing outstanding and compassionate care. We inspire and prepare the future leaders of science and medicine.

Strategic Priorities

A collaborative endeavor involving the entire community, the Stanford Medicine Integrated Strategic Planning process yielded a framework that is human centered and discovery led, focused on three overarching priorities for our enterprise.

By enhancing our strengths and achieving our goals in these priority areas, we will amplify our preeminence and remain uniquely positioned to lead the biomedical revolution in Precision Health, ensuring our continued ability to guide health care through significant global changes.

Value Focused
  • Provide a highly personalized patient experience.
  • Ensure a seamless Stanford Medicine experience.
Digitally Driven
  • Amplify the impact of Stanford innovation globally.
  • Deliver human-centered, high-tech, high-touch care and revolutionize biomedical discovery.
  • Lead in population health and data science.
Uniquely Stanford
  • Accelerate discovery in and knowledge of human biology.
  • Discovered here, used everywhere: advance fundamental human knowledge, translational medicine, and global health.
  • Ensure preeminence across all of our mission areas.

Variance Analyses

Normally, managers are expected to examine positive and negative variances, and then speculate as to possible explanations for the observed variances. Following this initial assessment, managers would be expected to dig deeper into those variances of greatest concern to the organization in order to uncover the actual causes for the variances, and then implement necessary corrective actions. Digging into all variances would be costly and, quite frankly, a misuse of one’s time and energy. The CFO has asked you to conduct a variance analysis of the company’s consolidated balance sheets and income statements for fiscal years 2015, 2016, 2017, and 2018, which you began. You have determined the variances for each account (line item) captured in the financials. Now that this first step has been accomplished, the CFO would like for you to pay particular attention to the negative variances contained in the spreadsheet; and focus more specifically on those variances you believe to be potentially the most impactful to Stanford.

Once you’ve completed your variance analysis over time, which is referred to as a horizontal analysis, you are ready to create a common size balance sheet and income statement of each of the 4 fiscal years (2015 through 2018). You prepared the common sized financials, which are captured in your spreadsheet. Now, it is time to perform a vertical and horizontal analysis of these common size financials. The common size balance sheet allows you to see each asset relative to total assets, as well as each liability and net asset (in the case of non-profit organizations) relative to total liabilities and net assets. In a common size income statement, each line item is expressed as a percentage of total revenue or sales. Common sizing balance sheets and income statements allows firms to compare against one another even though they may be of different sizes. It also allows a firm to benchmark its financial performance against comparative groups. In this case, there isn’t any comparative data to benchmark against; however, you can examine the ratios in each fiscal year and look to see if anything looks abnormally low or high based on what you know about the line item and what you observe in the data for the other fiscal years (vertical analysis). You can also look for patterns in the line items over time (2015 through 2018) and point out any unusual findings that may need to be examined further (horizontal analysis). In finance, it isn’t uncommon for the organization to establish interim goals and targets for certain line items in the financials. The firm can compare its actual performance against the established goals and targets.

Financial Management and Strategic Direction

Once you’ve completed your horizontal and vertical analyses of the financial statements, you should be able to get a sense of how well management has managed the financial resources of the company in support of its strategic direction. In business, the strategic direction should be evident in its vision and mission statements and strategic priorities. The strategic priorities should help support the company’s mission, and the mission should help advance the firm’s vision for the future. Failure to effectively manage the company’s financial resources can seriously compromise the firm’s ability to fulfill its mission and subsequently the vision.

Business Memorandum to CFO

Using the analysis that you performed on Stanford Healthcare and trends that you identified, write a business memorandum to the CFO. In your memo, codify your findings and interpretations, and make a judgment regarding the alignment of the organization’s fiscal management with its strategic direction of the firm. Attach your analysis in an Excel spreadsheet as an attachment to the memo. Your analysis and trends identified should take into account any feedback that you received from your professor and/or peers.

Helpful hints: Negative variance is not always a bad thing. For example, you might see a slight increase in the operating costs; however, if you achieved a positive variance in the total operating revenue that outpaced the increase in operating costs, then that may be perceived as a positive outcome. Remember, you need to spend money to make money. We just want to make certain that operating costs/expenses don’t outpace the growth in operating revenues. Also keep in mind that some variances are useful in explaining other variances even if these variances are associated with different financial statements. For example, you may see an increase in operating costs, which is a negative variance, but an increase in current assets, which is a positive variance. Furthermore, you should look for patterns over time. This can reveal both positive and negative trends that may provide insight into the variances you discovered. For example, you may have noticed that a certain expense has continued growth over the past 3 years (negative variance); however, the rate of growth year-over-year has been declining. It could be that Stanford has implemented some cost cutting measures that are showing signs of working.

The specific learning outcome associated with this assignment is:

  • Audit financial statements and expenditures for alignment with organizational strategic priorities.
 
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Managing Transformation At National Computer Operations

MANAGING TRANSFORMATION AT NATIONAL COMPUTER OPERATIONS

Gar Finnvold knew his organization needed to change, to transform itself over the next two years. His 1,000 employees had enjoyed what amounted to monopoly status. They had been the exclusive provider of computer support services to the global enterprises of the U.K.‐based National Banking Group. All that was about to change. National Bank’s newly appointed chairman had announced that, starting in two years, all bank operations would be free to purchase their computer services from any vendor who could supply excellent value. Finnvold’s operation would be competing against the best in Europe. At the same time, Finnvold would be free to market his computer operations on the outside, to build a customer base external to the bank.

 

Finnvold’s excitement at the challenge of transforming his National Computer Operations (NCO) into a truly world‐class competitor was matched by his anxiety (see Exhibit 3‐6 for a partial organization chart). As the longtime manager of computer operations, he understood only too well that NCO was unprepared to compete. Internal bank customers had complained for years of the high‐cost/low‐responsiveness culture of the NCO.

 

EXHIBIT 3-6 Partial Organization Chart—National Computer Operations.

G. Finnvold

Managing Director

N. Krasna

Manager Operations

H. Ramos

Manager Support Services

M. Gold

Chief Financial Officer

P. Petit P. Chereau L. Rubio

Manager Manager Manager Branch Distributive Service Services System Delivery

 

Shielded by their monopoly status, NCO’s computer technicians didn’t worry much about whether the customer perceived them as providing value. They believed they better understood both what that customer needed and how much they should be willing to pay for it. In two years, Finnvold knew that equation would be reversed. Given a free-market choice to seek the best provider of computer services, would they continue to use NCO? Not likely, he thought.

 

At least inside the bank, NCO enjoyed a substantial cost advantage over potential external competitors. National tax laws exempted bank operations from having to pay a 20 percent tax on internally provided services. That tax advantage disappeared when NCO left the safety of the bank to hunt external customers. What’s more, no one at any level in NCO possessed real general management experience. Certainly not managing costs, customers, and operations within a fiercely competitive environment. Was two years even close to enough time to undergo the radical transformation required to make such a venture successful?

NCO Operations

Listen to how Peter Kapok, a longtime NCO manager, described what his organization was like in the 1990s: “We weren’t client oriented. We told our clients what they could and couldn’t have. We came to work for ourselves and did pretty much what we wanted. We simply didn’t consider ourselves working for a client.” The notion that customers might define the ultimate value of their services was alien to NCO.

 

It’s little wonder that for most of NCO’s managers, effectiveness was not measured by organizational performance or client satisfaction. Their focus turned inward instead. How can build up my functional area? Enhance my personal career? “We were an organization of empire builders,” Kapok observed. “The more people you had working for you, the more likely you were to get promoted. There were few performance measures, and almost no coordination of our efforts.” The functional silos of the organization were so powerful, said Kapok, that NCO’s own staff “didn’t quite consider ourselves working for the same operation. If someone from one unit went to someone from another to ask for help, they were considered a nuisance. We certainly never considered the impact of any of this on our costs.”

 

Because of what was occurring within NCO, the bank’s new chairman hired a consulting firm to evaluate internal computer operations. The findings were as disturbing as they were predictable. “They confirmed our worst fears,” recalled an NCO manager. “We were not performing at the level we should have been performing at.”

 

Until the consulting report provided irrefutable evidence to the contrary, NCO managers felt they did an excellent job of providing these services to the bank. “If you had asked us how we were doing,” admitted Gar Finnvold, “we would have said, ‘We meet our customer service levels most of the time. We are improving our unit costs year‐on‐year. And of course we’re adding value.’ ” It was only later that Finnvold came to recognize that customers held a view of NCO’s effectiveness that stood in direct opposition to the opinion of NCO’s managers. “Our customers were saying, ‘You’re too expensive. Your system is always breaking down. And you provide no added value?’ ”

 

At the time of the consulting report, NCO was billing approximately $240 million USD annually (within an overall annual information technology expenditure of $1.5 billion USD), almost entirely to internal bank customers. Although NCO offered a wide range of services, including processing, project management, and technical support and consultancy, they pointed with pride to one distinct competency – disaster recovery. “NCO provides planning and backup facilities for unforeseen crises or disasters such as fire and flood. Planning and backup facilities can be provided either separately or together and can be offered in either a ‘hot start’ or ‘cold start’ environment.”

 

The bank’s new chairman quickly recognized that NCO customers and managers held completely different views of value. Using the consulting report as a driver, he first designated NCO as a profit center. He made clear that NCO would be expected to pare costs severely. Within a year, NCO dramatically downsized its workforce from 1,500 to 1,000. The chair- man then called on Gar Finnvold to oversee more sweeping change. NCO, in other words, would have to become fully competitive in order to survive.

MANAGING TRANSFORMATION AT NATIONAL COMPUTER OPERATIONS

 

Gar Finnvold knew his organization needed to change, to  transform itself over the next two years. His 1,000 employees had enjoyed what amounted to monopoly status. They had been the

exclusive provider of computer support services to the global enterprises of the U.K. based

National Banking Group. All that was about to change. National Bank’s newly appointed chairman had announced that, starting in two years, all bank operations would be free to

purchase their computer services from any vendor who could

supply excellent value. Finnvold’s operation would be competing against the best in Europe.

At the same time, Finnvold would be free to market his computer operations on the outside, to build a customer base external to the bank. Finnvold’s excitement at the challenge of transforming his National Computer Operations (NCO) into a truly world class competitor was matched by his anxiety (see Exhibit 3 6 for a partial organization chart). As the longtime manager of computer operations, he understood only too  well that NCO was unprepared to compete. Internal bank customers had complained for years of the high cost/low responsiveness  culture of the NCO.

 

EXHIBIT 3

6 Partial Organization Chart

National Computer Operations.

Shielded by their monopoly status, NCO’s computer technicians didn’t worry much about

whether the customer perceived them as providing value.

They believed they better understood both what that customer needed  and how much they should be willing to pay for it.

In two years, Finnvold knew that equation would be reversed. Given a free market choice to seek the best provider of computer services, would they continue to use NCO? Not likely, he thought.

At least inside the bank, NCO enjoyed a substantial cost advantage over potential external

competitors. National tax laws exempted bank operations from having to pay a 20 percent tax

on internally provided services. That tax advantage disappeared when NCO left the safety of the

MANAGING TRANSFORMATION AT NATIONAL COMPUTER OPERATIONS

Gar Finnvold knew his organization needed to change, to transform itself over the next two

years. His 1,000 employees had enjoyed what amounted to monopoly status. They had been the

exclusive provider of computer support services to the global enterprises of the U.K.-based

National Banking Group. All that was about to change. National Bank’s newly appointed

chairman had announced that, starting in two years, all bank operations would be free to

purchase their computer services from any vendor who could supply excellent value. Finnvold’s

operation would be competing against the best in Europe. At the same time, Finnvold would be

free to market his computer operations on the outside, to build a customer base external to the

bank.

 

Finnvold’s excitement at the challenge of transforming his National Computer Operations

(NCO) into a truly world-class competitor was matched by his anxiety (see Exhibit 3-6 for a

partial organization chart). As the longtime manager of computer operations, he understood

only too well that NCO was unprepared to compete. Internal bank customers had complained

for years of the high-cost/low-responsiveness culture of the NCO.

EXHIBIT 3-6 Partial Organization Chart—National Computer Operations.

Shielded by their monopoly status, NCO’s computer technicians didn’t worry much about

whether the customer perceived them as providing value. They believed they better understood

both what that customer needed and how much they should be willing to pay for it. In two years,

Finnvold knew that equation would be reversed. Given a free-market choice to seek the best

provider of computer services, would they continue to use NCO? Not likely, he thought.

 

At least inside the bank, NCO enjoyed a substantial cost advantage over potential external

competitors. National tax laws exempted bank operations from having to pay a 20 percent tax

on internally provided services. That tax advantage disappeared when NCO left the safety of the

 
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CASE STUDY

Using your textbook, read the case study provided on pages 298-304. Once you have completed reading the case study,

answer the questions on page 303.

Your Case Study should be at least 1-2 pages in length. You are required to use at least your textbook as source material

for your response. All sources used, including the textbook, must be referenced; paraphrased and quoted material must

have accompanying citations. Include an APA format title page and reference page with the assignment. The title page

and reference page are not included in the required page length.

 

 

Dowling, P. J., Festing, M., & Engle, A. (2013). International human resource management (6th ed.). Boston, MA:

Cengage.

 
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Read The Article “Managing Multicultural Teams” In The Link Below. Briefly Describe One Of The Four Interventions Mentioned And Discuss A Time When You Experienced That Intervention In The Workplace. Was The Intervention Beneficial?

www.hbrreprints.org

 

Managing Multicultural Teams

 

by Jeanne Brett, Kristin Behfar, and Mary C. Kern

 

Included with this full-text

 

Harvard Business Review

 

article:

The Idea in Brief—the core idea

The Idea in Practice—putting the idea to work

 

1

 

Article Summary

 

2

 

Managing Multicultural Teams

A list of related materials, with annotations to guide further

exploration of the article’s ideas and applications

 

10

 

Further Reading

Teams whose members come

from different nations and

backgrounds place special

demands on managers—

especially when a feuding

team looks to the boss for help

with a conflict.

Reprint R0611D

Managing Multicultural Teams

page 1

The Idea in Brief The Idea in Practice

C OPY RIGH T© 20 0 7 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION . ALL RIGHTS RESERVED.

 

If your company does business internation- ally, you’re probably leading teams with members from diverse cultural back- grounds. Those differences can present serious obstacles. For example, some members’ lack of fluency in the team’s dominant language can lead others to underestimate their competence. When such obstacles arise, your team can stalemate.

To get the team moving again, avoid inter- vening directly, advise Brett, Behfar, and Kern. Though sometimes necessary, your involvement can prevent team members from solving problems themselves—and learning from that process.

Instead, choose one of three indirect inter- ventions. When possible, encourage team members to adapt by acknowledging cul- tural gaps and working around them. If your team isn’t able to be open about their differences, consider structural interven- tion (e.g., reassigning members to reduce interpersonal friction). As a last resort, use an exit strategy (e.g., removing a member from the team).

There’s no one right way to tackle multicul- tural problems. But understanding four barriers to team success can help you begin evaluating possible responses.

FOUR BARRIERS

The following cultural differences can cause destructive conflicts in a team:

• Direct versus indirect communication. Some team members use direct, explicit communication while others are indirect, for example, asking questions instead of pointing out problems with a project. When members see such differences as violations of their culture’s communication norms, relationships can suffer.

• Trouble with accents and fluency. Mem- bers who aren’t fluent in the team’s dominant language may have difficulty communicating their knowledge. This can prevent the team from using their expertise and create frustration or perceptions of incompetence.

• Differing attitudes toward hierarchy. Team members from hierarchical cultures expect to be treated differently according to their status in the organization. Members from egalitarian cultures do not. Failure of some members to honor those expectations can cause humiliation or loss of stature and credibility.

• Conflicting decision-making norms. Members vary in how quickly they make decisions and in how much analysis they require beforehand. Someone who prefers making decisions quickly may grow frus- trated with those who need more time.

 

FOUR INTERVENTIONS

 

Your team’s unique circumstances can help you determine how to respond to multicul- tural conflicts. Consider these options:

Intervention Type When to Use Example Adaptation: working with or around diff erences

Members are willing to acknowledge cultural diff erences and fi gure out how to live with them.

An American engineer working on a team that included Israelis was shocked by their in-your-face, argumentative style. Once he noticed they confronted each other and not just him—and still worked well together—he realized confrontations weren’t personal attacks and accepted their style.

Structural intervention: reorganizing to reduce friction

The team has obvious subgroups, or members cling to negative stereotypes of one another.

An international research team’s leader realized that when he led meetings, members “shut down” because they felt intimidated by his executive status. After he hired a consultant to run future meetings, members participated more.

Managerial intervention: making fi nal decisions without team involvement

Rarely; for instance, a new team needs guidance in establishing productive norms.

A software development team’s lingua franca was English, but some members spoke with pronounced accents. The manager explained they’d been chosen for their task expertise, not fl uency in English. And she directed them to tell customers: “I realize I have an accent. If you don’t understand what I’m saying, just stop me and ask questions.”

Exit: voluntary or involuntary removal of a team member

Emotions are running high, and too much face has been lost on both sides to salvage the situation.

When two members of a multicultural consulting team couldn’t resolve their disagreement over how to approach problems, one member left the fi rm.

Managing Multicultural Teams

 

by Jeanne Brett, Kristin Behfar, and Mary C. Kern

harvard business review • november 2006 page 2

C OPY RIGH T© 20 0 7 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED.

Teams whose members come from different nations and backgrounds

place special demands on managers—especially when a feuding team

looks to the boss for help with a conflict.

When a major international software devel- oper needed to produce a new product quickly, the project manager assembled a team of employees from India and the United States. From the start the team members could not agree on a delivery date for the product. The Americans thought the work could be done in two to three weeks; the Indi- ans predicted it would take two to three months. As time went on, the Indian team members proved reluctant to report setbacks in the production process, which the Ameri- can team members would find out about only when work was due to be passed to them. Such conflicts, of course, may affect any team, but in this case they arose from cultural differ- ences. As tensions mounted, conflict over de- livery dates and feedback became personal, disrupting team members’ communication about even mundane issues. The project manager decided he had to intervene—with the result that both the American and the Indian team members came to rely on him for direction regarding minute operational

details that the team should have been able to handle itself. The manager became so bogged down by quotidian issues that the project ca- reened hopelessly off even the most pessimis- tic schedule—and the team never learned to work together effectively.

Multicultural teams often generate frus- trating management dilemmas. Cultural dif- ferences can create substantial obstacles to effective teamwork—but these may be sub- tle and difficult to recognize until significant damage has already been done. As in the case above, which the manager involved told us about, managers may create more prob- lems than they resolve by intervening. The challenge in managing multicultural teams effectively is to recognize underlying cul- tural causes of conflict, and to intervene in ways that both get the team back on track and empower its members to deal with future challenges themselves.

We interviewed managers and members of multicultural teams from all over the world. These interviews, combined with our deep

Managing Multicultural Teams

harvard business review • november 2006 page 3

research on dispute resolution and teamwork, led us to conclude that the wrong kind of man- agerial intervention may sideline valuable members who should be participating or, worse, create resistance, resulting in poor team performance. We’re not talking here about re- specting differing national standards for doing business, such as accounting practices. We’re referring to day-to-day working problems among team members that can keep multicul- tural teams from realizing the very gains they were set up to harvest, such as knowledge of different product markets, culturally sensitive customer service, and 24-hour work rotations.

The good news is that cultural challenges are manageable if managers and team mem- bers choose the right strategy and avoid imposing single-culture-based approaches on multicultural situations.

The Challenges

People tend to assume that challenges on mul- ticultural teams arise from differing styles of communication. But this is only one of the four categories that, according to our research, can create barriers to a team’s ultimate suc- cess. These categories are direct versus indi- rect communication; trouble with accents and fluency; differing attitudes toward hierarchy and authority; and conflicting norms for decision making.

Direct versus indirect communication. Communication in Western cultures is typi- cally direct and explicit. The meaning is on the surface, and a listener doesn’t have to know much about the context or the speaker to interpret it. This is not true in many other cultures, where meaning is embedded in the way the message is presented. For example, Western negotiators get crucial information about the other party’s preferences and prior- ities by asking direct questions, such as “Do you prefer option A or option B?” In cultures that use indirect communication, negotiators may have to infer preferences and priorities from changes—or the lack of them—in the other party’s settlement proposal. In cross- cultural negotiations, the non-Westerner can understand the direct communications of the Westerner, but the Westerner has difficulty understanding the indirect communications of the non-Westerner.

An American manager who was leading a project to build an interface for a U.S. and

Japanese customer-data system explained the problems her team was having this way: “In Japan, they want to talk and discuss. Then we take a break and they talk within the organi- zation. They want to make sure that there’s harmony in the rest of the organization. One of the hardest lessons for me was when I thought they were saying yes but they just meant ‘I’m listening to you.’”

The differences between direct and indirect communication can cause serious damage to relationships when team projects run into problems. When the American manager quoted above discovered that several flaws in the system would significantly disrupt com- pany operations, she pointed this out in an e-mail to her American boss and the Japanese team members. Her boss appreciated the direct warnings; her Japanese colleagues were embarrassed, because she had violated their norms for uncovering and discussing prob- lems. Their reaction was to provide her with less access to the people and information she needed to monitor progress. They would probably have responded better if she had pointed out the problems indirectly—for example, by asking them what would happen if a certain part of the system was not func- tioning properly, even though she knew full well that it was malfunctioning and also what the implications were.

As our research indicates is so often true, communication challenges create barriers to effective teamwork by reducing information sharing, creating interpersonal conflict, or both. In Japan, a typical response to direct confrontation is to isolate the norm violator. This American manager was isolated not just socially but also physically. She told us, “They literally put my office in a storage room, where I had desks stacked from floor to ceil- ing and I was the only person there. So they totally isolated me, which was a pretty loud signal to me that I was not a part of the inside circle and that they would communicate with me only as needed.”

Her direct approach had been intended to solve a problem, and in one sense, it did, be- cause her project was launched problem- free. But her norm violations exacerbated the challenges of working with her Japanese colleagues and limited her ability to uncover any other problems that might have derailed the project later on.

 

Jeanne Brett

 

is the DeWitt W. Buchanan, Jr., Distinguished Professor of Dispute Resolution and Organizations and the director of the Dispute Resolution Research Center at Northwestern University’s Kellogg School of Management in Evanston, Illinois. Kristin Behfar is an assistant professor at the Paul Merage School of Business at the University of California at Irvine. Mary C. Kern is an assistant professor at the Zicklin School of Busi- ness at Baruch College in New York.

Managing Multicultural Teams

harvard business review • november 2006 page 4

Trouble with accents and fluency.

 

Although the language of international business is En- glish, misunderstandings or deep frustration may occur because of nonnative speakers’ accents, lack of fluency, or problems with trans- lation or usage. These may also influence perceptions of status or competence.

For example, a Latin American member of a multicultural consulting team lamented, “Many times I felt that because of the lan- guage difference, I didn’t have the words to say some things that I was thinking. I noticed that when I went to these interviews with the U.S. guy, he would tend to lead the interviews, which was understandable but also disappoint- ing, because we are at the same level. I had very good questions, but he would take the lead.”

When we interviewed an American mem- ber of a U.S.-Japanese team that was assessing the potential expansion of a U.S. retail chain into Japan, she described one American team- mate this way: “He was not interested in the Japanese consultants’ feedback and felt that because they weren’t as fluent as he was, they weren’t intelligent enough and, therefore, could add no value.” The team member de- scribed was responsible for assessing one as- pect of the feasibility of expansion into Japan. Without input from the Japanese experts, he risked overestimating opportunities and underestimating challenges.

Nonfluent team members may well be the most expert on the team, but their difficulty communicating knowledge makes it hard for the team to recognize and utilize their ex- pertise. If teammates become frustrated or impatient with a lack of fluency, interper- sonal conflicts can arise. Nonnative speakers may become less motivated to contribute, or anxious about their performance evaluations and future career prospects. The organiza- tion as a whole pays a greater price: Its invest- ment in a multicultural team fails to pay off.

Some teams, we learned, use language dif- ferences to resolve (rather than create) ten- sions. A team of U.S. and Latin American buyers was negotiating with a team from a Korean supplier. The negotiations took place in Korea, but the discussions were conducted in English. Frequently the Koreans would caucus at the table by speaking Korean. The buyers, frustrated, would respond by appear- ing to caucus in Spanish—though they

discussed only inconsequential current events and sports, in case any of the Koreans spoke Spanish. Members of the team who didn’t speak Spanish pretended to participate, to the great amusement of their teammates. This approach proved effective: It conveyed to the Koreans in an appropriately indirect way that their caucuses in Korean were frustrating and annoying to the other side. As a result, both teams cut back on sidebar conversations.

Differing attitudes toward hierarchy and authority. A challenge inherent in multicul- tural teamwork is that by design, teams have a rather flat structure. But team members from some cultures, in which people are treated differently according to their status in an organization, are uncomfortable on flat teams. If they defer to higher-status team members, their behavior will be seen as ap- propriate when most of the team comes from a hierarchical culture; but they may damage their stature and credibility—and even face humiliation—if most of the team comes from an egalitarian culture.

One manager of Mexican heritage, who was working on a credit and underwriting team for a bank, told us, “In Mexican culture, you’re always supposed to be humble. So whether you understand something or not, you’re sup- posed to put it in the form of a question. You have to keep it open-ended, out of respect. I think that actually worked against me, be- cause the Americans thought I really didn’t know what I was talking about. So it made me feel like they thought I was wavering on my answer.”

When, as a result of differing cultural norms, team members believe they’ve been treated disrespectfully, the whole project can blow up. In another Korean-U.S. negotiation, the American members of a due diligence team were having difficulty getting informa- tion from their Korean counterparts, so they complained directly to higher-level Korean management, nearly wrecking the deal. The higher-level managers were offended because hierarchy is strictly adhered to in Korean or- ganizations and culture. It should have been their own lower-level people, not the U.S. team members, who came to them with a problem. And the Korean team members were mortified that their bosses had been involved before they themselves could brief them. The crisis was resolved only when high-

Team members who are

uncomfortable on flat

teams may, by deferring

to higher-status

teammates, damage their

stature and credibility—

and even face

humiliation—if most of

the team is from an

egalitarian culture.

Managing Multicultural Teams

 

harvard business review • november 2006 page 5

 

level U.S. managers made a trip to Korea, conveying appropriate respect for their Korean counterparts.

 

Conflicting norms for decision making.

 

Cultures differ enormously when it comes to decision making—particularly, how quickly decisions should be made and how much analysis is required beforehand. Not surpris- ingly, U.S. managers like to make decisions very quickly and with relatively little analysis by comparison with managers from other countries.

A Brazilian manager at an American com- pany who was negotiating to buy Korean prod- ucts destined for Latin America told us, “On the first day, we agreed on three points, and on the second day, the U.S.-Spanish side wanted to start with point four. But the Korean side wanted to go back and rediscuss points one through three. My boss almost had an attack.”

What U.S. team members learn from an ex- perience like this is that the American way simply cannot be imposed on other cultures. Managers from other cultures may, for exam- ple, decline to share information until they understand the full scope of a project. But they have learned that they can’t simply ig- nore the desire of their American counter- parts to make decisions quickly. What to do? The best solution seems to be to make minor concessions on process—to learn to adjust to and even respect another approach to deci- sion making. For example, American manag- ers have learned to keep their impatient bosses away from team meetings and give them frequent if brief updates. A comparable lesson for managers from other cultures is to be explicit about what they need—saying, for example, “We have to see the big picture before we talk details.”

 

Four Strategies

 

The most successful teams and managers we interviewed used four strategies for dealing with these challenges: adaptation (acknowl- edging cultural gaps openly and working around them), structural intervention (chang- ing the shape of the team), managerial inter- vention (setting norms early or bringing in a higher-level manager), and exit (removing a team member when other options have failed). There is no one right way to deal with a particular kind of multicultural problem; identifying the type of challenge is only the

first step. The more crucial step is assessing the circumstances—or “enabling situational conditions”—under which the team is work- ing. For example, does the project allow any flexibility for change, or do deadlines make that impossible? Are there additional re- sources available that might be tapped? Is the team permanent or temporary? Does the team’s manager have the autonomy to make a decision about changing the team in some way? Once the situational conditions have been analyzed, the team’s leader can identify an appropriate response (see the exhibit “Identifying the Right Strategy”).

Adaptation. Some teams find ways to work with or around the challenges they face, adapting practices or attitudes without mak- ing changes to the group’s membership or assignments. Adaptation works when team members are willing to acknowledge and name their cultural differences and to assume responsibility for figuring out how to live with them. It’s often the best possible approach to a problem, because it typically involves less managerial time than other strategies; and be- cause team members participate in solving the problem themselves, they learn from the pro- cess. When team members have this mind-set, they can be creative about protecting their own substantive differences while acceding to the processes of others.

An American software engineer located in Ireland who was working with an Israeli account management team from his own company told us how shocked he was by the Israelis’ in-your-face style: “There were defi- nitely different ways of approaching issues and discussing them. There is something pretty common to the Israeli culture: They like to ar- gue. I tend to try to collaborate more, and it got very stressful for me until I figured out how to kind of merge the cultures.”

The software engineer adapted. He im- posed some structure on the Israelis that helped him maintain his own style of being thoroughly prepared; that accommodation enabled him to accept the Israeli style. He also noticed that team members weren’t just confronting him; they confronted one another but were able to work together effec- tively nevertheless. He realized that the con- frontation was not personal but cultural.

In another example, an American member of a postmerger consulting team was frus-

Managing Multicultural Teams

 

harvard business review • november 2006 page 6

 

trated by the hierarchy of the French com- pany his team was working with. He felt that a meeting with certain French managers who were not directly involved in the merger “wouldn’t deliver any value to me or for pur- poses of the project,” but said that he had come to understand that “it was very impor- tant to really involve all the people there” if the integration was ultimately to work.

A U.S. and UK multicultural team tried to use their differing approaches to decision making to reach a higher-quality decision. This approach, called fusion, is getting serious

attention from political scientists and from government officials dealing with multicul- tural populations that want to protect their cultures rather than integrate or assimilate. If the team had relied exclusively on the Ameri- cans’ “forge ahead” approach, it might not have recognized the pitfalls that lay ahead and might later have had to back up and start over. Meanwhile, the UK members would have been gritting their teeth and saying “We told you things were moving too fast.” If the team had used the “Let’s think about this” UK approach, it might have wasted a lot of time

 

Identifying the Right Strategy

 

The most successful teams and managers we interviewed use four strategies for dealing with problems: adaptation (acknowledging cultural gaps openly and working around them), structural intervention (changing the shape of the team), managerial intervention (setting norms early or bringing in a higher-level manager), and exit (removing a team member when other options have failed). Adaptation is the ideal strat- egy because the team works effectively to solve its own problem with minimal input from management—and, most important, learns from the experience. The guide below can help you identify the right strategy once you have identified both the problem and the “enabling situational conditions” that apply to the team.

REPRESENTATIVE PROBLEMS

• Conflict arises from decision- making differences

• Misunderstanding or stone- walling arises from commu- nication differences

• The team is affected by emo- tional tensions relating to flu- ency issues or prejudice

• Team members are inhibited by perceived status differ- ences among teammates

• Violations of hierarchy have resulted in loss of face

• An absence of ground rules is causing conflict

• A team member cannot ad- just to the challenge at hand and has become unable to contribute to the project

ENABLING SITUATIONAL CONDITIONS

• Team members can attribute a challenge to culture rather than personality

• Higher-level managers are not available or the team would be embarrassed to involve them

• The team can be subdivided to mix cultures or expertise

• Tasks can be subdivided

• The problem has produced a high level of emotion

• The team has reached a stalemate

• A higher-level manager is able and willing to intervene

• The team is permanent rather than temporary

• Emotions are beyond the point of intervention

• Too much face has been lost

COMPLICATING FACTORS

• Team members must be exceptionally aware

• Negotiating a common understanding takes time

• If team members aren’t carefully distributed, sub- groups can strengthen preexisting differences

• Subgroup solutions have to fit back together

• The team becomes overly dependent on the manager

• Team members may be sidelined or resistant

• Talent and training costs are lost

STRATEGY

Adaptation

Structural Intervention

Managerial Intervention

Exit

Managing Multicultural Teams

 

harvard business review • november 2006 page 7

 

trying to identify every pitfall, including the most unlikely, while the U.S. members chomped at the bit and muttered about anal- ysis paralysis. The strength of this team was that some of its members were willing to forge ahead and some were willing to work through pitfalls. To accommodate them all, the team did both—moving not quite as fast as the U.S. members would have on their own and not quite as thoroughly as the UK members would have.

Structural intervention. A structural inter- vention is a deliberate reorganization or re- assignment designed to reduce interpersonal friction or to remove a source of conflict for one or more groups. This approach can be extremely effective when obvious subgroups demarcate the team (for example, headquar- ters versus national subsidiaries) or if team members are proud, defensive, threatened, or clinging to negative stereotypes of one another.

A member of an investment research team scattered across continental Europe, the UK, and the U.S. described for us how his man- ager resolved conflicts stemming from status differences and language tensions among the team’s three “tribes.” The manager started by having the team meet face-to-face twice a year, not to discuss mundane day-to-day prob- lems (of which there were many) but to iden- tify a set of values that the team would use to direct and evaluate its progress. At the first meeting, he realized that when he started to speak, everyone else “shut down,” waiting to hear what he had to say. So he hired a con- sultant to run future meetings. The con- sultant didn’t represent a hierarchical threat and was therefore able to get lots of participa- tion from team members.

Another structural intervention might be to create smaller working groups of mixed cultures or mixed corporate identities in order to get at information that is not forthcoming from the team as a whole. The manager of the team that was evaluating retail opportu- nities in Japan used this approach. When she realized that the female Japanese consultants would not participate if the group got large, or if their male superior was present, she broke the team up into smaller groups to try to solve problems. She used this technique repeatedly and made a point of changing the subgroups’ membership each time so that

team members got to know and respect everyone else on the team.

The subgrouping technique involves risks, however. It buffers people who are not work- ing well together or not participating in the larger group for one reason or another. Sooner or later the team will have to assem- ble the pieces that the subgroups have come up with, so this approach relies on another structural intervention: Someone must be- come a mediator in order to see that the various pieces fit together.

Managerial intervention. When a manager behaves like an arbitrator or a judge, making a final decision without team involvement, neither the manager nor the team gains much insight into why the team has stale- mated. But it is possible for team members to use managerial intervention effectively to sort out problems.

When an American refinery-safety expert with significant experience throughout East Asia got stymied during a project in China, she called in her company’s higher-level managers in Beijing to talk to the higher- level managers to whom the Chinese refin- ery’s managers reported. Unlike the Western team members who breached etiquette by approaching the superiors of their Korean counterparts, the safety expert made sure to respect hierarchies in both organizations.

“Trying to resolve the issues,” she told us, “the local management at the Chinese refin- ery would end up having conferences with our Beijing office and also with the upper management within the refinery. Eventually they understood that we weren’t trying to in- sult them or their culture or to tell them they were bad in any way. We were trying to help. They eventually understood that there were significant fire and safety issues. But we actu- ally had to go up some levels of management to get those resolved.”

Managerial intervention to set norms early in a team’s life can really help the team start out with effective processes. In one instance reported to us, a multicultural software devel- opment team’s lingua franca was English, but some members, though they spoke grammati- cally correct English, had a very pronounced accent. In setting the ground rules for the team, the manager addressed the challenge directly, telling the members that they had been chosen for their task expertise, not their

Managing Multicultural Teams

 

harvard business review • november 2006 page 8

 

fluency in English, and that the team was going to have to work around language prob- lems. As the project moved to the customer- services training stage, the manager advised the team members to acknowledge their accents up front. She said they should tell cus- tomers, “I realize I have an accent. If you don’t understand what I’m saying, just stop me and ask questions.”

Exit. Possibly because many of the teams we studied were project based, we found that leaving the team was an infrequent strategy for managing challenges. In short-term situa- tions, unhappy team members often just waited out the project. When teams were per- manent, producing products or services, the exit of one or more members was a strategy of last resort, but it was used—either voluntarily or after a formal request from management. Exit was likely when emotions were running high and too much face had been lost on both sides to salvage the situation.

An American member of a multicultural consulting team described the conflict be- tween two senior consultants, one a Greek woman and the other a Polish man, over how to approach problems: “The woman from Greece would say, ‘Here’s the way I think we should do it.’ It would be something that she was in control of. The guy from Poland would say, ‘I think we should actually do it this way instead.’ The woman would kind of turn red in the face, upset, and say, ‘I just don’t think that’s the right way of doing it.’ It would definitely switch from just professional differ- ences to personal differences.

“The woman from Greece ended up leaving the firm. That was a direct result of probably all the different issues going on between these people. It really just wasn’t a good fit. I’ve found that oftentimes when you’re in consulting, you have to adapt to the culture, obviously, but you have to adapt just as much to the style of whoever is leading the project.”

 

• • •

 

Though multicultural teams face challenges that are not directly attributable to cultural differences, such differences underlay what- ever problem needed to be addressed in many of the teams we studied. Furthermore, while serious in their own right when they have a negative effect on team functioning, cultural challenges may also unmask fundamental managerial problems. Managers who inter-

vene early and set norms; teams and managers who structure social interaction and work to engage everyone on the team; and teams that can see problems as stemming from culture, not personality, approach challenges with good humor and creativity. Managers who have to intervene when the team has reached a stalemate may be able to get the team mov- ing again, but they seldom empower it to help itself the next time a stalemate occurs.

When frustrated team members take some time to think through challenges and possible solutions themselves, it can make a huge dif- ference. Take, for example, this story about a financial-services call center. The members of the call-center team were all fluent Spanish- speakers, but some were North Americans and some were Latin Americans. Team perfor- mance, measured by calls answered per hour, was lagging. One Latin American was taking twice as long with her calls as the rest of the team. She was handling callers’ questions ap- propriately, but she was also engaging in chit- chat. When her teammates confronted her for being a free rider (they resented having to make up for her low call rate), she immedi- ately acknowledged the problem, admitting that she did not know how to end the call politely—chitchat being normal in her cul- ture. They rallied to help her: Using their technology, they would break into any of her calls that went overtime, excusing themselves to the customer, offering to take over the call, and saying that this employee was urgently needed to help out on a different call. The team’s solution worked in the short run, and the employee got better at ending her calls in the long run.

In another case, the Indian manager of a multicultural team coordinating a company- wide IT project found himself frustrated when he and a teammate from Singapore met with two Japanese members of the coordinat- ing team to try to get the Japan section to deliver its part of the project. The Japanese members seemed to be saying yes, but in the Indian manager’s view, their follow-through was insufficient. He considered and rejected the idea of going up the hierarchy to the Japa- nese team members’ boss, and decided in- stead to try to build consensus with the whole Japanese IT team, not just the two members on the coordinating team. He and his Sin- gapore teammate put together an eBusiness

One team manager

addressed the language

challenge directly, telling

the members that they

had been chosen for their

task expertise, not their

fluency in English, and

that the team would have

to work around

problems.

Managing Multicultural Teams

 

harvard business review • november 2006 page 9

 

road show, took it to Japan, invited the whole IT team to view it at a lunch meeting, and walked through success stories about other parts of the organization that had aligned with the company’s larger business priorities. It was rather subtle, he told us, but it worked. The Japanese IT team wanted to be spot- lighted in future eBusiness road shows. In the end, the whole team worked well together— and no higher-level manager had to get involved.

 

Reprint R0611D

 

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Managing Multicultural Teams

 

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For

 

Harvard Business Review

 

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page 10

 

Further Reading

 

A R T I C L E S

 

Making Differences Matter: A New Paradigm for Managing Diversity

 

by David A. Thomas and Robin J. Ely

 

Harvard Business Review

 

September 1996 Product no. 96510

You can strengthen your teams’ ability to use the adaptation process suggested by Brett, Behfar, and Kern by fostering a working envi- ronment in which cultural differences are valued. To cultivate such an environment: 1) Encourage open discussion of cultural back- grounds. For instance, a food company’s Chinese chemist draws on her cooking, not her scientific, experience to solve a soup- flavoring problem. 2) Eliminate forms of dominance—by hierarchy, function, race, gender, and so forth—that inhibit team members’ full contribution. 3) Acknowledge and swiftly resolve the inevitable tensions that arise when employees from different back- grounds share ideas and emotions.

Oil and

 

Wasser

 

by Byron Reimus

 

Harvard Business Review

 

May 2004 Product no. R0405X

 

In this fictional case study, executives from an English firm and a German company who are seeking a supposed “merger of equals” must resolve cross-cultural tensions threatening the deal. Four experts provide suggestions. For example, develop a new shared vision and common strategic goals for the project (such as “Beat the competition and become number one”) that rise above national differences. Cultivate personal relationships with the “other” to eliminate stereotypes, by getting together in relaxed, shoptalk-free social settings. When you get to know one another as individuals, it becomes easier to let go of negative stereotypes.

Cultural Intelligence

 

by P. Christopher Earley and Elaine Mosakowski Harvard Business Review October 2004 Product no. R0410J

Team members can further strengthen their adaptation skills by developing their cultural intelligence. 1) Look for clues to the shared understandings that define another culture. For example, do people from that culture tend to be strict or flexible about deadlines? Are they receptive to highly imaginative ideas, or do they prefer more conservative thinking? 2) Adopt the habits and mannerisms of people from other cultures. You’ll discover in an elemental way what it’s like to be them. And you’ll demonstrate respect for their ways. 3) Cultivate confidence that you can overcome multicultural obstacles and setbacks and that you’re capable of understanding people from unfamiliar cultures.

 

 
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Training And Development In Small Businesses

Training and Development in Small Businesses

Overview

Select a small business with which you are familiar. Imagine that you have been called into that business to provide a consultation on training. Create a comprehensive training proposal for the business.

Instructions

Write a 6 page paper in which you:

1. Analyze key elements of training and development geared toward improving the performance of the specific small business for which you are consulting.

2. Predict 3–5 potential challenges that the managers or owners of the business could face in addressing organizational performance.

3. Justify the effects of detecting organizational gaps in small business, providing examples to explain the rationale.

4. Propose a competitive training strategy that will improve the position of the business in the market. The strategy should include, at a minimum, an agenda of training activities, rationale for instructional strategies used, and the return on investment (ROI) that will be gained from the strategy you have developed.

5. Go to  Basic Search: Strayer University Online Library  to find at least three quality academic resources in this assignment. Note: Wikipedia and similar websites do not qualify as academic resources. The reference page is not included in the required page length.

This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.

The specific course learning outcome associated with this assignment is:

· Develop a training and development proposal for a small business that includes strategies to improve organizational performance and the position of the business in the market.

 

  Unacceptable Needs Improvement Satisfactory Competent Exemplary
Analyze key elements of training and development geared toward improving the performance of the specific small business for which you are consulting. Points:

(0.00%)

Did not submit or incompletely analyzed key elements of training and development geared toward improving the performance of the specific small business for which you are consulting.

Points:

34.125 (16.25%)

Insufficiently analyzed key elements of training and development geared toward improving the performance of the specific small business for which you are consulting.

Points:

39.375 (18.75%)

Partially analyzed key elements of training and development geared toward improving the performance of the specific small business for which you are consulting.

Points:

44.625 (21.25%)

Satisfactorily analyzed key elements of training and development geared toward improving the performance of the specific small business for which you are consulting.

Points:

52.5 (25.00%)

Thoroughly analyzed key elements of training and development geared toward improving the performance of the specific small business for which you are consulting.

Predict 3–5 potential challenges that the managers or owners of the business could face in addressing organizational performance. Points:

(0.00%)

Did not submit or incompletely predicted 3–5 potential challenges that the managers or owners of the business could face in addressing organizational performance.

Points:

27.3 (13.00%)

Insufficiently predicted 3–5 potential challenges that the managers or owners of the business could face in addressing organizational performance.

Points:

31.5 (15.00%)

Partially predicted 3–5 potential challenges that the managers or owners of the business could face in addressing organizational performance.

Points:

35.7 (17.00%)

Satisfactorily predicted 3–5 potential challenges that the managers or owners of the business could face in addressing organizational performance.

Points:

42 (20.00%)

Thoroughly predicted 3–5 potential challenges that the managers or owners of the business could face in addressing organizational performance.

Justify the effects of detecting organizational gaps in small business, providing examples to explain the rationale. Points:

(0.00%)

Did not submit or incompletely justified the effects of detecting organizational gaps in small business, providing examples to explain the rationale.

Points:

27.3 (13.00%)

Insufficiently justified the effects of detecting organizational gaps in small business, providing examples to explain the rationale.

Points:

31.5 (15.00%)

Partially justified the effects of detecting organizational gaps in small business, providing examples to explain the rationale.

Points:

35.7 (17.00%)

Satisfactorily justified the effects of detecting organizational gaps in small business, providing examples to explain the rationale.

Points:

42 (20.00%)

Thoroughly justified the effects of detecting organizational gaps in small business, providing examples to explain the rationale.

Propose a competitive training strategy that will improve the position of the business in the market. The strategy should include, at a minimum, an agenda of training activities, rationale for instructional strategies used, and the return on investment (ROI) that will be gained from the strategy you have developed. Points:

(0.00%)

Did not submit or incompletely proposed a competitive training strategy that will improve the position of the business in the market, including an agenda of training activities, rationale for instructional strategies used, and the return on investment (ROI) that will be gained from the strategy you have developed.

Points:

27.3 (13.00%)

Insufficiently proposed a competitive training strategy that will improve the position of the business in the market, including an agenda of training activities, rationale for instructional strategies used, and the return on investment (ROI) that will be gained from the strategy you have developed.

Points:

31.5 (15.00%)

Partially proposed a competitive training strategy that will improve the position of the business in the market, including an agenda of training activities, rationale for instructional strategies used, and the return on investment (ROI) that will be gained from the strategy you have developed.

Points:

35.7 (17.00%)

Satisfactorily proposed a competitive training strategy that will improve the position of the business in the market, including an agenda of training activities, rationale for instructional strategies used, and the return on investment (ROI) that will be gained from the strategy you have developed.

Points:

42 (20.00%)

Thoroughly proposed a competitive training strategy that will improve the position of the business in the market, including an agenda of training activities, rationale for instructional strategies used, and the return on investment (ROI) that will be gained from the strategy you have developed.

Use at least three quality academic resources in this assignment. Points:

(0.00%)

No references provided.

Points:

6.825 (3.25%)

Does not meet the required number of references; all references are poor-quality choices.

Points:

7.875 (3.75%)

Does not meet the required number of references; some references are poor-quality choices.

Points:

8.925 (4.25%)

Meets the required number of references; some references are high-quality choices.

Points:

10.5 (5.00%)

Meets the required number of references; all references are high-quality choices.

Clarity, writing mechanics, and formatting requirements. Points:

(0.00%)

More than eight errors present.

Points:

13.65 (6.50%)

7–8 errors present.

Points:

15.75 (7.50%)

5–6 errors present.

Points:

17.85 (8.50%)

3–4 errors present.

Points:

21 (10.00%)

0–2 errors present.

 
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Week 6 Assignment – Performance Management

Week 6 Assignment – Performance Management

Week 6 Assignment - Performance Management

Overview

In an effort to evaluate and develop an effective expatriate  performance management system in the previously selected multinational  corporation, you will write an essay analyzing performance management  processes in multinational corporations. (Week 6 Assignment – Performance Management)

Instructions

In 2–4 pages, your assignment must address the following:

  • Describe the five variables that should be addressed in an expatriate performance management system.

1. Clear Objectives

Establish clear objectives for the expatriate. These objectives should align with the organization’s goals and the assignment’s specific requirements.

2. Regular Feedback

Provide regular feedback to the expatriate. This helps identify areas for improvement and acknowledges achievements, fostering continuous development.

3. Cultural Adaptation

Address cultural adaptation. Ensure the expatriate understands local customs and practices, aiding in smoother integration and effective performance.

4. Support Systems

Implement robust support systems. Offer resources like language training, mentoring, and family support to assist the expatriate’s adjustment.

5. Performance Metrics

Define performance metrics. Use both qualitative and quantitative measures to evaluate the expatriate’s contributions and overall effectiveness in the role.

(Week 6 Assignment – Performance Management)

  • Analyze the elements within each of the five variables that should be considered in the performance management system.
  • Evaluate the challenges with conducting performance evaluations  for expatriates that differ from a traditional performance management  system.
  • Provide citations and references from a minimum of three sources found on the Strayer databases at the Basic Search: Strayer University Online Library.

This course requires the use of Strayer Writing Standards. For  assistance and information, please refer to the Strayer Writing  Standards link in the left-hand menu of your course. Check with your  professor for any additional instructions.

The specific course learning outcome associated with this assignment is:

  • Analyze performance management processes used to assess performance throughout a multinational corporation. (Week 6 Assignment – Performance Management)

References

https://www.coursehero.com/file/187755378/Week-6-Assignment-Performance-Managementdocx/

 
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Narrative Therapy

Psy 231     Assignment 9     SFBT & Narrative Therapy

Watch the Gwen & Stan SFBT and Narrative Therapy videos on MindTap, and respond to the following 9 questions:

Solution-Focused Brief Therapy Applied to the Case of Gwen & Stan

1. What did the therapist do that did to create a strong working alliance with Gwen? Describe.

2. What did the therapist do to help Gwen determine ways to move forward with her problem in the SFBT video? Describe.

3. Stan said,“ I am always down on myself and feeling hopeless”. The therapist asked if there are any exceptions to feeling hopeless. What ways was this effective or ineffective and why?

4. If you were a client, how would it be for you to think of exceptions to one of your presenting problems?

5. What value do you see in the miracle question? In what situations would you want to use this technique with a client?

6. What are your thoughts about the scaling technique that involved Stan being asked to rate a change in a particular behavior on a scale from zero to 10?

7. What specific aspects of solution-focused brief therapy would you most like to incorporate into your style of counseling and why?

Narrative Therapy Applied to the Case of Stan

8. What did you notice when Stan talked about changes he would make in his life when comparing it to the process of remodeling a house? Describe.

9. What do you think of the technique of asking Stan to detach himself from his problem? How might you help Stan to construct a new story as opposed to a problem-saturated story?

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9-1 Final Project Submission: Human Resources Strategy Proposal And Professional Reflection

Running head:  HR APPROACH PROPOSAL. 1

HR APROACH PROPOSAL 7

HR Approach Proposal

Dale Rice

2-1 Milestone One: Strategy Proposal Outline

August 04, 2021

 

An Introductory Cover Letter

I am interested in exploring the Human resource management of Coca-Cola Company. Coca-Cola is an American multinational beverage company interested in manufacturing, selling and advertising non-alcoholic cold drink distillates and syrups. In this perspective, this proposal intends to explore Coca-Cola human resource management and determine the secrets behind the company’s success. Coca-Cola is arguably one of the world’s fast-growing Beverage companies with one of the best human resource management (Batie & Agyekum 2021). Various companies will use the proposal outlined in this paper to improve their human resource management by making numerous adjustments in their human resource departments. Oneh (2021), Mazibuko & Govender (2017) and Batie & Agyekum (2021) are the main sources used to write this proposal.

The potential for a universal outlook and cross-national methodology for HR specialists in improving social openness and exploiting the commonalities, standards, and individual exceptionality of administrative members.

These include:

A. Designating employers for projects abroad: Once U.S businesses develop into new countries, their management must decide who hires the services of existing staff and new employees sent abroad.

B. It is developing a strategy to employ local nationals. It entails employing employees through a local cooperate presence which is the safest way to hire local nations. The process also entails using third-party agencies, which is faster than setting up a local cooperate presence. It also entails hiring independent contractors, which is a quick way of getting employees on board.

C. The organization should understand and adhere to both local and international laws. It means that employers must be conversant with local and international employment laws in which the employee and company can terminate the employment contract with or without notice (Mazibuko & Govender 2017).

D. They understand the applicable privacy laws. All privacy regulations should be adhered to, and thus, employers must understand all applicable laws that affect their global workers.

 

The evidence-based approaches that incorporate sound, data-driven study, and critical decision making to back the goals, ideas, and mission of the association

For an organization to effectively integrate a sound statistic driven to study and decision-making to support the company visions, the company should fully adhere to the evidence-based practices.

These include:

A. Acquiring clinical questions from employees, stakeholders and third parties

B. Obtaining evidence on areas the company is doing badly

C. Evaluating the evidence

D. Applying the results

E. Assessing the outcome

The HR department can do the following to defend the reliability of both the business, its workers, and its organization practices. These includes:

A. The company should address the importance of ethics among both employees and stakeholders.

B. Keeping workers informed about the various matters that impact them

C. Upholding promises and commitments to both employees and stakeholders

D. Acknowledging and rewarding good character.

E. HR should hold people accountable for their violation of ethical standards and particularly leaders.

Ways of efficiently influencing operational customer service and cooperation approaches build and appeal associations with investors through confidence, cooperation, and direct communication.

There are five strategies that companies can effectively leverage effective customer service and negotiation with customers and stakeholders. These includes:

A. Listening to the other party’s issues and perceptions

B. Being prepared before getting into a negotiation

C. Keeping the negotiations professional and courteous

D. Understanding the ultimate dynamics of negotiation and customer service

E. Always being ready to draft the first form of the bargain

Implementation

Summary of the method to employee supervision

There are various strategies that companies can use to manage their employees effectively. In this context, the management under the leadership of the human resource manager should set up an employee expectation and ensure every employee is aware of what the management expects of them whenever in the organization. In simple terms, each employee should be aware of the kind of output the organization expects from him in a certain given time.

The management should reward employees for hard work and discipline to motivate others to conduct themselves in the same manner.

Training employees on the required company standards and ethics is also vital in employee management. In the same perspective, the management should respect its employees since they are valuable assets to the company.

Summary of approach to talent development and workforce planning

In workforce planning, talent development requires the organization to consider the organization’s current and future needs and establish the pathways and programs for talent growth. THEREFORE, the HR department should formulate the necessary actions to promote and sustain the growth of talents in the organization.

Predictions for Return on Investment

According to Oneh (2021), the company calculates its expected returns by multiplying the potential outcomes by the chances of each outcome happening and computing the results’ figures. After the company sets effective strategies for employee management, the expected outcomes on investments would likely be twice the investment.

In the long run, the required changes in human resources about employee negotiation and interactions include treating employees as customer’s marketers and using customer experience as a metric for good service delivery. Additionally, focusing on developing the employee brand is among the major changes the human resource department should ensure is put in place.

 

 

Conclusion

There are various strategies that companies can use to manage their employees effectively. In this context, the management under the leadership of the human resource manager should set up an employee expectation and ensure every employee is aware of what the management expects of them whenever in the organization. The management should reward employees for hard work and discipline to motivate others to conduct themselves in the same manner.

 

 

References

Batie, G. D. I., & Agyekum, K. (2021). The effectiveness of project management practices and performance in the beverage industry in Ghana: A case of coca-cola Company (Doctoral dissertation).

Mazibuko, J. V., & Govender, K. K. (2017). Exploring workplace diversity and organizational effectiveness: A South African exploratory case study. SA Journal of Human Resource Management15, 10.

Oneh, C. A. (2021). Formation of an effective process of human resource management at the enterprise in modern conditions. Diploma Master Thesis.

Running head:

 

HR

 

APPROACH

 

PROPOSAL.

 

HR

 

Approach Proposal

 

Dale Rice

 

2

1 Milestone One: Strategy Proposal Outline

 

August 04, 2021

 

Running head: HR APPROACH PROPOSAL. 1

 

HR Approach Proposal

Dale Rice

2-1 Milestone One: Strategy Proposal Outline

August 04, 2021

 
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INTERNATIONAL BUSINESS

36 Pan 1 Introduction and Overview

c. What would happen if the US. govern- mentrequired that flat panel displays sold in the United States had to also be made in the United States? On balance, would this be a good or a bad thing?

tl giobalEOGE

Globalization

Use the globalEDGETM site to complete the following exercises:

Exercise 1

Your company hasdeveloped a new product that has uni- versal appeal across countries and cultures. In fact; it is ex- pected to achieve high penetration rates in all the countries where it is introduced, regardless of the average income of the local populace. Considering the COSts of the product launch, the management team has decided to ini- tially introduce the product only in countries that have a sizable population base. You are required to prepare a pre- liminary report with the top 10 countries in terms of popu- lation size.A member of management has indicated that a resource called the “World Population Data Sheet” may be useful for the report. Since growth opportunities are

Exercise 2

d. What does the example of Vizio tell you about the .futureofproduction in an in- creasingly integrated global economy? What does it tell you about the strategies . that enterprises must adopt to thrive in highly competitive global markets?

another major concern, the average population growth rates should be listed also for management’s consideration.

You are working for a company that is considering in- .vesting in a foreign country. Investing in countries with different traditions is an important element of your com- pany’s long-term strategic goals. As such, management has requested a report regarding the attractiveness of al- ternative countries based on the potential returnofFDL Accordingly, the ranking of the top 25 countries in terms of FDI attractiveness is a crucial. ingredient for your report. A colleague mentioneda potentially useful tool called the “FDI Cottfidence Index”whichis updated . periodically. Find this index and provide additional.in- formation regarding how the index is constructed.

The Globalization of Starbucks Thirty years ago, Starbucks was a single store in Seattle’s Pike Place Market selling premium-roasted coffee. To- day it is a global roaster and retailer of coffee with some 16,700 stores, 40 percent of which are in 50 countries outside of the United States. Starbucks set out on its current course in the 1980s when the company’s director of marketing, Howard Schultz, came back from a trip to Italy enchanted with the Italian coffeehouse experience. Schultz, who later became CEO, persuaded the compa- ny’s owners to experiment with the coffeehouse format-and the Starbucks experience was born. The strategy was to sell the company’s own premium roasted coffee and freshly brewed espresso-style coffee beverages, along with a variety of pastries, coffee accessories, teas, and other products, in a tastefully designed coffeehouse setting. The company focused on selling “a third place experience,” rather than just the coffee. The formula led to spectacular success in the United States, where Star- bucks went from obscurity to one of the best-known brands in the country in a decade. Thanks to Starbucks,

coffee stores became places for relaxation, chatting with friends, reading the newspaper, holding business meet- ings, or (more recently) browsing the web.

In 1995, with 700 stores across the United States, Starbucks began exploring foreign opportunities. The first target market was Japan. The company established a joint venture with a local retailer, Sazaby Inc. Each company held a 50 percent stake in the venture, Star- bucks Coffee of Japan. Starbucks initially invested $10 million in this venture, its first foreign direct invest- ment. The Starbucks format was then licensed to the venture, which was charged with taking over responsi- bility for growing Starbucks’ presence in Japan.

To make sure the Japanese operations replicated the “Starbucks experience” in North America, Starbucks transferred some employees to the Japanese operation. The licensing agreement required all Japanese store managers and employees to attend training classes simi- lar to those given to U.S. employees. The agreement also required that stores adhere to the design parameters

 

 

. established in the United States. In 2001, the company · introduced a stock option plan for all Japanese employ-

making it the first company in Japan to do so. Skep- .tics doubted that Starbucks would be able to replicate its North American success overseas, but by the end of 2009 Starbucks had some 850 stores and a profitable

H./ business in Japan. After Japan, the company embarked on an aggressive

foreign investment program. In 1998, it purchased Seattle Coffee, a British coffee chain with 60 retail stores, for $84 million. An American couple, originally from Seattle, had started Seattle Coffee with the intention of establishing a Starbucks-like chain in Britain. In the late 1990s, Starbucks opened stores in Taiwan, China, Singapore, Thailand, New Zealand, South Korea, and .Malaysia. In Asia, Starbucks’ most common strategy was ·to license its format to a local operator in return for ini- · tiallicensing fees and royalties on store revenues. As in Japan, Starbucks insisted on an intensive employee- training program and strict specifications regarding the format and layout of the store.

By 2002, Starbucks was pursuing an aggressive expan- sion in mainland Europe. As its first entry point, Star- bucks chose Switzerland. Drawing on its experience in Asia, the company entered into a joint venture with a Swiss company, Bon Appetit Group, Switzerland’s larg- est food service company. Bon Appetit was to hold a majority stake in the venture, and Starbucks would license its format to the Swiss company using a similar agreement to those it had used successfully in Asia. This was followed by a joint venture in other countries.

As it has grown its global footprint, Starbucks has also embraced ethical sourcing policies and environ- mental responsibility. Now one of the world’s largest

Globalization Chapter 1 37

buyers of coffee, in 2000 Starbucks started to purchase Fair Trade Certified coffee. The goal was to empower small-scale farmers organized in cooperatives to invest in their farms and communities, to protect the environ- ment, and to develop the business skills necessary to compete in the global marketplace. In short, Starbucks was trying to use its influence to not only change the way people consumed coffee around the world, but also to change the way coffee was produced in a manner that benefited the farmers and the environment. By 2010, some 75 percent of the coffee Starbucks purchased was Fair Trade Certified, and the company has a goal of increasing that to 100 percent by 2015.80

Case Discussion Questions

1. Where did the original idea for the Starbucks for- mat come from? What lesson for international business can be drawn from this?

2. What drove Starbucks to start expanding inter- nationally? How is the company creating value for its shareholders by pursuing an international expansion strategy?

3.. Why do you think Starbucks decided to enter the Japanese market via a joint venture with a Japanese company? What lesson can you draw from this?

4. Is Starbucks a force for globalization? Explain your answer.

5. When it comes to purchasing coffee beans, Star- bucks adheres to a “fair trade” program. What do you think is the difference between fair trade and free trade? How might a fair trade policy benefit Starbucks?

6. US. Department of Commerce, “A Profileof US. Exporting Companies, 2000-2001,” February 2003; report available at www.census.gov/foreign-nade/aip/index.html#profile.

7. Ibid. 8. -C. M. Draffen, “Going Global: Export Market Proves , Profitable for Region’s Small Businesses,” Newsda:y, March

19,2001, p. C18. . 9. B. Benoit and R. Milne, “Germany’s Best Kept Secret,

How Its Exporters Are Betting the World,” Financial Times, May 19, 2006, p. II.

10. See F. T. Knickerbocker, Oligopolistic Reaction and Multina~ tiona! Enterprise (Boston: Harvard Business School Press, 1973); and R. E. Caves, “Japanese Investment in the US.: Lessons for the Economic Analysis of Foreign Investment,” The World Economy 16 (1993), pp. 279-300.

1. “Offshoring Your Lawyer,” The Economist, December 19, 2010, p. 132; D. Itzkoff, “A Legal Victory for Ali G and Sacha Baron Cohen,” The New York TI711eS, April 21, 2009; and D. A. Steiger, “The Rise of Global Legal Sourcing,” Business Law Today, December 2009, pp. 38-43.

2. Trade statistics from World Trade Organization press release, “Trade Growth to Ease in 2011 but Despite 2010 Record Surge, Crisis Hangover Persists,” April 7, 2011; and Foreign Exchange statistics from Bank for Interna- tional Settlements at www.bis.org/index.htm.

3. Thomas L Friedman, The World Is Flat (New York: Farrar, Sttaus and Giroux, 2005).

4. Ibid. 5. T. Levitt, “The Globalization of Markets,” H~4Jll’fd Busi-

ness Review, Mav-june 1983, pp. 92-102.

 
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Training Needs Analysis – Coca Cola Company

Analyze the effectiveness of your organization’s training and development process. Prepare a PowerPoint presentation that addresses the following:

  1. Explain the training needs analysis approach that your organization uses to define training needs.
  2. Describe the process for capturing needs for individuals, groups, and the wider skills for the organization.
  3. Evaluate the effectiveness of at least 3 courses in this curriculum. For each course, address the following:
    1. Are adult learning theories evident in the course design?
    2. Does the course have clear and measurable training objectives and learning outcomes?
    3. Is there alignment of the course objectives with organizational strategic goals and objectives?
    4. Describe the training delivery methods. Are they varied and appropriate to the course topics?
    5. Does the course incorporate varied learning styles in the design?
    6. What level of evaluation is used to measure the effectiveness of the training?
    7. Update at least 1 of the training courses, applying course theories
  4. 6–8 slides with speaker notes of 200–250 words per slide (excluding title and reference slides)
 
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