Decision Making and Hierarchy

Cultural differences can have a significant impact on business operations and cause harm when not properly managed.

Mergers and acquisitions can create challenges due to cultural expectations on a national and organizational level. Often, managers are expected to integrate their current focus into a larger project without understanding how to do so in a larger context.

Communication and coaching are key concepts in ensuring a smooth transition.

As the HR manager of Banks Industries, one of the issues you face with regard to the company's acquisition of a Chinese firm is presented in the following scenario:

The operations manager from Banks in Centervale is used to having complete autonomy. However, on this project, he will have to work directly with the locally based manager in China and share decision making.

The lead manager says that he wants to have the final say on all decisions as he knows how to align the project with the corporate strategies and objectives, something he has been doing for the past 30 years.

The local manager mistrusts the corporate manager because he has been very vocal about not wanting to co-manage on the project.