For Wizard Kim

Running head: UNIT TWO ASSIGNMENT 1

UNIT TWO ASSIGNMENT 10

Unit Two Assignment – Critical Analysis

Learner Name

Kaplan University

GM500-01: Management Theories and Practices I

January 24, 2017

Unit Two Assignment – Critical Analysis

Introduction

The objective or purpose of studying and analyzing a case study and applying learning lessons from the text is to maximize learning and develop key managerial skills. Case studies provide information to the reader about real life business situations, and provides examples of how these situations are managed by real organizations. Case studies also allow you to practice management skills by putting yourself in a decision maker’s position and analyzing real life business situations facing actual managers in the workplace.

If you have ever tried to learn a new concept, then you know that knowing is different from doing. Although the material presented during class will provide me with key theoretical concepts and tools of strategy, they will not give me an opportunity to actually develop some of those skills myself. Case studies allow me to practice analytical skills by forcing me to think through real life business scenarios, draw conclusions, and then justify why I have reached those conclusions. When drawing conclusions, it is likely that I will make decisions by identifying a specific course of action for an organization to take. In doing this, I will also have to consider alternative courses of action, evaluate those alternatives, and then select the most appropriate. This would also include justifying why this is the most appropriate course of action for an organization to take. Therefore, by analyzing case studies, I learn how to use the analytical and problem solving skills I have learned about to solve real life business situations.

Problem

For unit two, I was tasked with analyzing a case study; “We want more guitars!” (Daft, 2014, p. 132). This case study follows an employee of Fletcher Guitars, Adam Wainwright, in his assignment to increase the production of guitars at a guitar manufacturing company in Valencia, Spain; Guitarras Dominguez. Adam is frustrated by the slow production rates at Guitarras Dominguez. Vincent Fletcher, who is Adam’s boss and CEO of Fletcher Guitars, convinces Adam to talk to the owner of Guitarras Dominguez; Salvador Dominguez. Adam shows Salvador the solutions he has come up with to increase production, but Salvador refuses to even consider them because in his culture, quality is more important than quantity.

In this case study, the problem is that Adam is too focused on production and profit to understand the importance of craftsmanship and production of quality products in Spanish culture. Although Adam has some rational concerns regarding production rates, he is not considering the Spanish culture when asking Salvador to increase production by sacrificing craftsmanship and quality products.

In any business, without both productivity and craftsmanship, a company could not survive. In this case study, Salvador comes from a corporate culture that values higher quality products over production rates. If an organization values good craftsmanship and creates higher quality products, but has slow or bad productivity, this can lead to negative consequences, including lower profits and worker morale.

For example, when an organization has a widespread productivity problem, leaders may respond by firing or laying off workers. Although this doesn't do much to improve productivity, it does cut labor costs. However, the employees that are left often suffer from low morale based on fear of losing their own jobs.

On the other hand, Adam comes from a corporate culture that values productivity and profits over craftsmanship and quality. If you work for an organization that values high profits and productivity, but they produce low quality products, this can also lead to negative consequences because the products either fail or do not perform as promised, causing customers to stop buying the products. This approach may be profitable in the short-run, but the success is difficult to sustain over the long-term given the loss in customers. Therefore, there has to be a balance so that you do not sacrifice quality for quantity, or vice versa.

Different people see problems in a different way because of cultural differences. According to Daft (2014, p. 118), the culture of a nation includes the shared knowledge, beliefs, and values among members of a society. This includes common types of behavior and certain ways of thinking. The culture of an organization is greatly impacted by the external environment (Daft, 2014, p. 83).

For example, the French have differences in business etiquette when conducting business face-to-face. According to Zaptor-Peljan (2013, p. 49), Americans tend to work nonstop and see money as an end in itself. Therefore, while an American may strive to be the first to produce a gadget or to be the top salesman for his organization in a given year, a Frenchman would find those same goals to be mindless because they come from a corporate culture that values helping others and being kind rather than self-enhancement and gratification.

Therefore, it is essential for managers, such as Adam, to learn about internal corporate cultures to adjust to the constant change in the global economy. The internal culture should encompass what it takes to succeed in the environment. For example, Salvador’s external corporate culture values craftsmanship, so the internal corporate culture should encourage higher quality products. If Adam wants his organization to succeed in the context of a global economy, then he must learn from areas of communication, collaboration, and cultural leadership because the internal environment must fit the needs of the external environment and strategy of the company (Daft, 2014, p. 83).

Analysis

In order to enhance my cultural literacy in professional settings to identify and manage cultural differences, I must realize that the values and behaviors that typically govern how business is done in America does not always translate to the rest of the world, and my way may not always be the best way. According to Daft (2014, p. 118), ethnocentrism is the tendency of people to view their own culture as superior and to disregard other cultural values. One way that I can overcome my own ethnocentric tendencies is to understand and appreciate differences in social values.

For example, according to Exhibit 4.7 (Daft, p. 121), Denmark values future orientation. This means that Denmark encourages and rewards future oriented behaviors such as long term planning, investing in the future, and delaying gratification (Daft, 2014, p. 120). Therefore, when dealing with potential corporate partners in Denmark, it is important to remember to emphasize working for long term success rather than instant gratification, and to be flexible and adaptive.

Integration

According to my results on the “Rate Your Global Management Potential” (Daft, 2014, p. 130), in which I scored a 62, I have the potential to develop global management skills but may lack skills in certain areas, such as foreign experience. Although I feel that my basic management skills are advancing throughout the course, I still have much to learn about global management. Global leadership is about managing a business across international borders where there are different cultural, economic, and legal systems. It’s about knowing how to operate in different environments trying to achieve a common goal.

According to Cohen (2010, p. 3), “global leadership development must be driven by an organization’s business strategy… acquisition of a true global mindset enables leadership effectiveness in a global capacity.” In order to integrate people working in a global team environment I must have a global mindset. According to Cohen (2010, p. 6), there are five critical global leadership skills that I must possess in order to integrate people working in a global team environment; (1) think globally; (2) appreciate cultural diversity; (3) develop technological savvy; (4) build partnerships and alliances; and (5) share leadership. These skills are in addition to those typically associated with overall general leadership skills, such as human, technical, and conceptual skills. Therefore, I will apply the knowledge I have learned about global leadership to develop a global mindset in order to integrate people working in a global team environment.

Conclusion

To be successful in business internationally you must understand the role of culture. Whatever area you are operating in, cultural differences will have a direct impact on your organization’s success. You can build international competencies by improving your knowledge of international cultural differences in business. This will enable you to gain a competitive advantage and succeed in the long-term.

In order to compete in the context of a global economy, an effective manager must learn from areas of communication, collaboration, and cultural leadership. The culture of an organization shapes how a manager deals with external environments, whereas the internal environment must fit the needs of the external environment and strategy of the company (Daft, 2014, p. 83). It is essential for managers to learn about internal corporate cultures to adjust to the constant change in the global economy. The internal culture should encompass what it takes to succeed in the environment.

I believe that corporate culture significantly affects employee attitude, and thereby impacts turnover rates. Ethical leadership, as well as interpersonal or human management skills, play an important role in creating a corporate culture that has low turnover rates. According to Lam, Loi, Chan, and Liu (2016, p. 283), “employees are less likely to exit when they have the opportunity to voice their ideas.”  In other words, when employees are able to express their opinions and ideas within an organization, they are inclined to view themselves as valued members of the team because their inputs are part of the decision-making process. “When employees believe that their organizations value them, they are more likely to reciprocate by offering the organization greater commitment.” (Lam, Loi, Chan, & Liu, 2016, p. 283).

According to Lam, Loi, Chan, and Liu’s study (2016, p. 291), ethical leadership increases employee sharing of ideas and reduces turnover rates. Therefore, by creating a business whose first priority is ethical leadership rather than profits, you are inadvertently creating an organization that fosters social responsibility. In addition, by promoting interpersonal or human management skills within leadership roles, you are encouraging employee commitment to the organization and decreasing turnover rates.

Part of creating a great corporate culture is through moral responsibility and shared values of honesty and integrity. According to Dempsey (2015, p. 319), there are certain corporate values that will promote wrongdoings by members. For example, an organization that values dishonesty and high sales over customer service and ethics promotes a culture that is all about profit and less about customer satisfaction. Additionally, those who participated in the wrongdoing will receive some degree of moral responsibility for their actions. “This is because, by sharing a culture together organization members support and facilitate each other's actions, so making each complicit in what the other does.” (Dempsey, 2015, p. 319). In other words, if you play a part in creating and maintaining a corporate culture that pressures people into engaging in morally objectionable behavior, each of you becomes equally responsible for the outcome of those actions. A great example of this is a culture that focuses too much on profits and bonuses rather than the interests of the customers.

Therefore, it is important to create a corporate culture that promotes shared values of honesty, integrity, and moral responsibility. You can do this by creating a business whose first priority is ethical leadership and social responsibility rather than just one that focusses on profits and the bottom-line. It is also important to create a corporate culture that embraces cultural differences through professional development in communication, collaboration, and cultural leadership. These are all key learning lessons that I will take from this assignment.

References

Cohen, S. L. (2010). Effective global leadership requires a global mindset. Industrial and Commercial Training, 42(1), 3-10. doi:http://dx.doi.org/10.1108/00197851011013652

Daft, R. L. (2014). Management (11th ed.). Mason, OH: South-Western, Cengage Learning.

Dempsey, J. (2015). Moral responsibility, shared values, and corporate culture. Business Ethics Quarterly, 25(3), 319-340. doi:10.1017/beq.2015.31.

Lam, L. W., Loi, R., Chan, K. W., & Liu, Y. (2016). Voice more and stay longer: How ethical leaders influence employee voice and exit intentions. Business Ethics Quarterly, 26(3), 277-300. doi:10.1017/beq.2016.30. 

Zaptor-Peljan, J. (2013). Business etiquette in Poland, Germany, France and China: An intercultural approach. Global Management Journal, 5(1/2), 46-52.

GM500: Grading Rubric Unit 2 Assignment 1: Critical Analysis (Paper)
Areas to be evaluated	Points Earned	Possible Points
Title Page		5
Introduction – What is the objective or purpose in studying and analyzing a case study and applying learning lessons from the text? -What might you learn?		10
Problem -Identify the problem(s) in the situational context. -Why do different people see problems in a different way? Explain and give examples.		20
Analysis -Draw insights gained from the GLOBE Project Values Dimensions (Daft, 2014, pp. 120-121) as you describe how you can enhance your cultural literacy in professional settings to identify and manage cultural differences.		20
Integration - Evaluate how your management skills are advancing and how you will apply your knowledge to integrate people working in a global team environment. Apply knowledge gained in the “Rate your Global Management Potential” (Daft, 2014, p. 130).		20
Conclusion -Summarize key learning lessons that you will take from this assignment.		10
References Page -Cite at least 2 peer-reviewed, academic journal articles outside our course materials (Virtual Library) -Cite and reference per the APA 6th edition (apastyle.org)		5
Paper Length : Write 4 pages, double spaced, not including the title page and reference page = 1200 words		5
Writing Style : Appearance, Spelling, Grammar, Organization, Clarity, Originality, and APA 6th Edition Format & Style		20
LATE Paper Deduction		-X
Total Points Earned		115