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The purpose of this report is to identify, evaluate, and recommend solutions to the problems identified at Argos Diesel Europe. There are three major issues at the heart of the problems of the organisation. These are culture, communication and leadership and motivation. The cultural issues have come to a fore since the arrival of Donaldson who has struggled to come to terms with European culture. He is unable to adjust and as such he has not been as successful in transforming the European subsidiary like he had in Detroit. Communication is also an issue which is looked at in greater detail in the body of the report. There are communication problems at many levels which shows the severity of the problem. Leadership and motivation is the final issue evaluated in this report. Donaldson was an effective leader in the US where his reform was successful. However his approach has been far from successful in Europe and he has not been able to motivate the European workers at all. After evaluating the above issues and looking at many different alternative solutions four recommendations have been made in order to solve the problems that exist. Due to the high level of cultural unawareness that Donaldson possess in Europe it is advisable for him to undertake further learning in the area of cross-cultural communications. This is to be done at Robert Kennedy University. There is a need for improved communication between the Detroit head office and the European office. Regular meetings between Loun, Waterhouse and Donaldson using tele-conferencing technology would allow for a more open flow of information and Loun would get a more accurate picture of the situation that Waterhouse and Donaldson are in. It is important for the organisation to foster an attitude of continual learning by its employees. Waterhouse has begun to focus in how the developments in Europe will affect his career progress through the organisation. These seminars will give Waterhouse the opportunity to learn how to better handle expatriates and to become a transformational and transactional leader. At present the organisation is not fully utilising the resources which it possess. Donaldson does not have the ability to speak to write in any European language, yet his Personal Assistant does. In order to reduce the communication problems associated with this, it is vital that Donaldson immediately utilise the skills that Frau Schweri and use them to his and the organisations benefit. Some of the recommendations can be implemented immediately, but it will take time for Donaldson to gain a grasp on the intricacies of European culture, but with further study he could succeed in doing what he was sent from the US to do. 1.1 Introduction In the preparation of this report two assumptions have been made. The first assumption is that communication between all parties in the organisation occurs only when described in the case study provided on which this report is based. The word limit placed on this report does not enable a full report to be written. Much greater detail could be written in regard to the issues, alternative solutions recommendations and implementation of the recommendations had the word limit provided. 2 Issues and Their Evaluation 2.1 Cultural Differences It is clear from the outset of the case that Bert Donaldson has a lack of cultural savvy and sensitivity. This means, he is unaware ¡§of the cultural variables that affect management decisions and¡K[is not] caring about another individuals culture.¡¨(Deresky 2000, p.104) As a result of this his leadership is tainted and a number of sub-issues become evident. 2.1.1 Ethnocentrism Ethnocentrism is a key sensitivity problem for Donaldson. By adopting an ethnocentric approach to management, Donaldson assumes the way he has been taught to perform a task is the best way of performing that task and is averse to listening to other ways of achieving results. This is best illustrated when Donaldson is talking to Frank Waterhouse, ¡§I¡¦ve tried everything¡Kthey¡¦re just going to have to join the rest of us in the post-industrial age, learn to do things the Argos way.¡¨ 2.1.2 Ignorance of sub-cultures Donaldson has also failed to consider that within the confines of the European culture and even within the Swiss culture, differing sub-cultures exist. Each has levels of morals, beliefs and goals ¡§which conform only in varying degrees to the national culture¡¨ (Deresky 2000, p.111). Therefore, members of each culture are likely to expect business to be done in the manner to which they are accustomed. For example, ¡§¡Kthe Portuguese would have responded had he [Donaldson] brought [the survey] personally.¡¨ 2.1.3 Inability to Adjust It would be a massive oversight if the company failed to realise the effect of a major relocation for Donaldson¡¦s family. According to Tung (1998), ¡§33.7% [of expatriates] said it took 6-12 months [to adjust]; while 5.2% said that they never felt completely comfortable abroad.
Approximate Word count = 3207
Approximate Pages = 12.8
(250 words per page double spaced)
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