BALANCING VALUES – AN INDIAN PERSPECTIVE ON CORPORATE VALUES FROM SCANDINAVIA
The internationalisation of corporations has become normal concept within the increasing globalization. This concept, however, has been raising many challenges in the multinational companies (MNC) such as: unifying the corporate culture values in orer to have a concise image an globally share values. !urthermore, from the human recourses perspective in orer to align the corporate culture an "# policies in the home country an host countries, there are several several conitions conitions shoul be consiere consiere incluing, incluing, legal regulations, regulations, characterist characteristics ics of host country$s national culture an characteristics of the political an economic system ( %unovic, &'). &'). Conse*ue Conse*uentl ntly y, compani companies es woul woul a+ust a+ust their their cultur cultural alval values ues an strate strategie giess of the organization ue to the create a common base for the internationally implementation an for the achieving the best practice globally. The case stuy of -n /nian perspective on corporate values from 0caninavia$ is one of the the e1am e1ampl ples es of the the chal challe lenge ngess that that mult multin inat atio iona nall comp compan anies ies are are faci facing ng in term termss of the the implementing their corporate culture in the host country cou ntry.. The 2harmaz is multinational pharmaceutical company was foune in %enmar3 an has subsiiaries in more than 4' countries in the worl. The company culture an values have a significant importance for the company an the hea office is eneavouring to sprea it across the borers. The -valueriven$ company$s company$s main core values are state uner the three main areas incluing, empowerment, e*ual opportunities an openness in communication. 5n the other han, The 2harmaz /nia one of the subsiiaries of 2harmaz , has starte to operate the tas3s for the hea office an after their *uic3 growth, their responsibility varie incluing collaboration with other branches. fter the growth an ac*uisition of half /nian owne company, 2harmaz /nia has become a vital growth location for the hea*uarter. Thus, implementation of corporate values in 2harmaz /nia has been consiere seriously from the top managers in %enmar3.
ACT 1 – Question : Identi! t"e #$in issues %$ised $nd dis&uss "o' t"e! #$! (e e)*+$ined in te%#s o t"e &u+tu%$+ $nd institution$+ &onte)ts o P"$%#$, in -ene%$+ $nd P"$%#$, Indi$ in *$%ti&u+$%.
!irst of all, 2harmaz /nia having a challenge with implementing an performing the main values as it is e1pecte from the hea*uarter. This is the as a result of the hea *uarter$s unfamiliarities with the host country$s culture. 6ithout having a better unerstaning of /nian Culture an Conte1t at the wor3place, the hea office intens to implement their own frame right away, without any a+ustments. This results in a conflict of interest between employees an affects the overall performance of the company. There are several subsiiary strategies that MNC use an 2harmaz$s strategy can be classifie uner the ethnocentric, global strategy since they e1pect their subsiiaries to be a li3e in terms of the carrying out same corporationvalue system, organizational structure etc. as they
are use in the main organization (!arnale 7 2aauwe , &''8). The corporate culture of 2harmaz %enmar %enmar3 3 offer offerss lots lots of benefi benefits ts to its /nian /nian subsi subsiiar iary y while while provi proviing ing lifelo lifelong ng learni learning ng environment for everyone. /n his article 0oerberg points out that, the common approach has been use by the companies is communicating to top management an e1pecting the information will transfer linearly from top 9 own to implement their valuebase management system in their across country subsiiaries. "owever, it is challenging to ensure both sies if the information has been receive an unerstoo as planne without having any cultural interpretation (0oerberg,) . !rom !rom the case case stuy stuy,, it is inferr inferre e that that 2harmaz 2harmaz %enmar %enmar3 3 was using the common approach to implement their corporate values in /nia. The manager mrita is the top manager who is sening the message to the employees to create their buyin, however, in the /nian conte1t with their interpretation it i not result in as it is intene. Thus, it create frustration for the manager an employees in /nia. 6e shoul consier the ifferent cultural structure of the two companies to have a better unerstaning about what lies uner the cultural conflicts. "ofstee$s cultural ifferences ifferences framewor3 will be use in this case stuy to conceive main contrasts between two cultures uner the four imensions. These imensions are power istance, iniviualism 9 collectivism, uncertainty avoiance an masculinity an femininity (Cite).
%enmar3 is a western country which has ientifie by the "ofstee$s comparison iniviualism score of ; their culture is iniviualistic in contraict to collectivistic
>ncertainty avoiance is relatively higher in /nia than %enmar3. This shows the why in /nia /n /nia employees are being slow to respon. ?ecause the employees woul li3e to have the approval of their superiors before respon,
CT & 9 uestion : /magine yourself in mrita$s mrita$s position. 6hich proposal woul wou l you ma3e to Niels Nielsen an how woul you argue in orer to convince him D
The nature of the problem itself is cultural ifferences ifferences between two countries. The heaoffice shoul ta3e the action to unerstan an loo3 eep into cultural conte1t in /nia. n then asses these ifferences. !inally, !inally, implement some a+ustments a +ustments in the corporate culture cu lture value system to
get all the employees buy in. /n short term, retain employees an ma3e them happy is the first aim an long term is e1amining the culture etaile an see the main shortcomings. The target shoul be fining the balance between being globally ecentralize an locally centralize. !or e1ample in 2harmaz /nia, /nian wor3 culture, /nstitutional conte1t an company size shoul be consiere. 0uggestions: #etraining, new hires shoul be aligne with the corporate culture, "# trainings an employee rotations between other countries. Eaining core values with e1changing. 0hare learning stanarization an locally aaptation customization. ctive strategic involment of "# epartment:
The hea*uar hea*uarter ter wants wants to carry carry out out more more complic complicate ate tas3 tas3 in in inia inia an e1pectations e1pectations are more empowerment an less micromanagement. The team team members members waiting waiting for the amrit amritas as aprovel, aprovel, they on$t 3now much much about about their their collegues wor3 it is consiere uner the 3nowlege sharing.
CT 4 9 uestions : 0tep out of o f mrita$s mrita$s role an answer the following: %o you feel that the the measures measures ta3en to implemen implementt the corporate corporate values values an reorganize reorganize wor3 in the financial services center have been appropriateD To implement the corporate values at subsiiary level in /nia , top management has to ecie which approach they will choose to esign their international "#M system. /n the literature there are several approaches , however, one of them is the most appropriate for the the current situation in 2harmaz /nia. This approach woul be e1portive, which means "#M practices which have been evelope at the hea office shoul be integrating at the cross borer subsiiaries with the closes replication (Cite, The role of corporate functions.) /n the 2harmaz /nia , where they manage as epenently, to increase the local responsiveness the little a+ustments are acceptable in the replication of the "#M policy. policy.
Corporte "# can more focus on the implementation of the policies in the /nian con te1t an monitor the progress.
& 6oul you you have have one anything anything ifferent ifferently ly D 4 "ow shoul shoul one procee now to achieve achieve the best best possible possible result result for 2harmaz 2harmaz /nia$s /nia$s financial services centerD "er proposal was : new +ob escription escription for everyone with their responsibilities, Meeting for communications an +ob elegation,
#eferences 0Ferberg, . (&'8). #econte1tualising a strategic concept within a globalising company: case stuy on CarlsbergGs -6inning ?ehaviours$ strategy. strategy. International Journal of Human Resource Management , 26 (&), (&), &4&8. !arnale, <. 7 2aauwe, H. (&''8). The role of corporate HR functions in multinational corporations: The interplay between corporate, regional/national an plant le!el (C"#0 (C"#0 6or3ing 2aper I'8' ). /thaca, NJ: Cornell >niversity, >niversity, 0chool of /nustrial an @abor #elations, Center for vance "uman #esource 0tuies.
Kaner, @., Honsen, L., 7 Moc3aitis, . /. (&'). @everaging values in global organizations: premises, parao1es an progress. Management progress. Management International Re!iew, Re!iew, (&). ;.
