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Discuss about the Contemporary Management for Human Development Indicators.

Background of Deronde International

The modern business market is highly competitive and the competition among the various organizations is increasing in significant manner due to the entry of the considerable number of new competitors into the market. The global perfume industry is also affected by the significant amount of competition. One of the major reason behind the emergence of such business competition is the significant impact of the globalisation (Intriligator, 2017). The global market opportunities in the perfume industry is a significantly triggering factor for the multinational organizations. Apart from this, the organizations are also feeling the possibility of having a rapid growth with their operations in the emerging markets. With the possibility of having a significant growth in the mentioned industry, the issues of the cross cultural management is a major challenge for the management of the organizations as well. It is observed that the multinational perfume organizations are significantly facing the problem with managing the culture of the organizations. The cultural differences is not the only hurdle for the management of the modern organizations as the visible differences in the various aspects of the value dimensions between the host country for the organizations and the employees’ native country has great significance as well (Jones, 2013).

The paper is focused in specifying one event of Deronde International recruiting Yang Jianguo as the senior vice president of the global product development. The case portrays significant amount of conflict among the newly recruited SVP and the other members of the management in the sections like the selection of the spokesperson, choices of the market and Choices of the research processes. Apart from this, the paper provides the reasons behind the conflicts and the recommendations to Yang for solving the above mentioned conflicts. Along with this, the paper describes management competencies for the 21st century leader-manager in VUCA world of business.

Deronde International is a multinational perfume manufacturer which was having its base in the country, France. The organization had its business spread almost to every corner of the world.Apart from this, the organization was in need to identify the regions which will have the potential to generate significant amount of growth for the organization. The CEO of the organization Alain Deronde was able to consider the emerging markets as the main target of the organization. In order to effectively manage the strive towards the modified objective of the organization, the CEO promoted Yang from the post of the country manager of China to the senior vice president of the global development of the organization. Under such condition, the organization was facing significant amount of issues due to the improper integration of the other employees of France with the new Senior Vice President (SVP) of the organization.

Conflicts Faced by Yang Jianguo

The general misunderstanding that was present in the case was in between Yang and the Paris workforce of the mentioned organization. The case generally observed three different instances of conflict among the above mentioned two parties. The conflicts were choices of the market, choices of the research process and the selection of the spokesperson. The conflicts were observed to be among Yang Jianguo and global management of the organization specifically Yves.

 The organization was significantly focused in the identification of the markets that will be able to guarantee considerable amount of revenue for the organization. The senior level management of the organization was able to identify the emerging markets as their main objective and that identification was backed by the selection of Yang as the senior vice president of the organization. Yang being the selected one as the senior vice president of the organization was generally focused in the emerging markets. As Yang was the country manager for China, his market analysis was observed to be influenced by the Chinese perspectives in significant manner. He was observed to have significant amount of focus on the Chinese market during his days in the country but eve after his promotion to the role of the senior vice president, his decision making was significantly affected by his previous experiences. On the other hand, being in the post of the senior vice president of the global development, he was not expected to have decisions which were influenced by his past experience of China as the country manager. In the post of SVP, Yang was expected to consider the overall statistics of the organization rather than having Chinese preferences (Hogan & Coote, 2014). This had the potential to cause detrimental effects in the approach of Yang towards the effective leading of the organization.

The organization under the leadership of Yang as the senior vice president was able to observe mysterious ways of the market analysis. Yang was seen to conduct market research on the preferences of the customers of the perfume in a significantly ineffective way. Yang was more inclined towards a selection process where the preferences of one or two individual was getting more hype than overall statistics and financial statements. Yang was observed to select his niece who was a young business school graduate at a high-tech firm in the junior management position as the probable representative of the target market of Deronde. Further to it, Yang was observed to ask his niece about what she and her friends search in a perfume and was trying to align the products in accordance to that. This was a significantly faulty approach according to the senior level management and the board of the organization as they believed that Yang could have produced more focus on the financial data and the statements in terms of conducting the market research (Bolman & Deal, 2017). This was a major reason behind the conflict that was created among the senior level management and the newly recruited senior vice president.

Choices of the Research Processes

Apart from that, Yang was feeling that few members of the senior level management or the board of the organization was not having the desired amount of faith on him. With the exchange of the eagerness from Antoine to Alain regarding the closing of the partnership with the pursuing dermatologist, the case became significantly visible for Yang to have the doubts.

The selection of the spokesperson for the organization was a major concern for the organization as it needed a significantly influential face. This was significantly needed from the part of the organization as the brand awareness among the targeted customers is a major point of concern for it. Influential personalities will be able to help the organization to reach the desired position in terms of branding of the products in the regions where they are considerably unknown and has a limited business. Yang had the idea to introduce a Chinese hurdler who represented the country at the biggest stage of the sporting events that is the Olympics in the form of Liu Xiang. But that was significantly criticised by the other members of the meeting as they considered that the decisions of Yang in post of the senior vice president was still having reflections of the decisions and the assessments of him being in the post of the country manager of China (Büschgens, Bausch & Balkin, 2013). Yves, one of the highly influential member of the meeting, opposed him with the query that whether people outside China knows him or will know him. Yves was prompt in reminding Yang that it was true that China is a significantly attractive market place for them but majority of their customers are outsiders of the third world countries as well.

Yang was significantly concerned with the possibility of the acquisitions of the labs that were doing great researches for the men and he also recommended one to the board members and along with that Yang came up with the idea of introducing sporting celebrities of different nations for the brand awareness in their own country for example Yuvraj Singh for India or any Brazilian footballer for Brazil. But this was significantly opposed by the board of the organization and yet for another time Yves expressed doubts on it with the point that the organization is in need to make sure that the organizations, it will be acquiring must also have significant market for Deronde. In that case the newly recruited SVP’s plan lacks important information.

Selection of the Spokesperson

The reasons behind the conflict or the misunderstandings between Yang and the other members of the senior level management was generally the cultural difference and the variation in the different aspects of the value dimensions.

The case is a notable example of the differences in the corporate culture of the two units established in two different nations of an organization. In China, the corporate culture is like the boss will have the power of decision and everyone in the organization is expected to accept that instead of interfering in the job of the boss. In France, that is significantly different, as the people inside the organization has much more freedom to comment or provide inputs on the decision of the boss. The acceptance of Yang as the senior vice president is also a significantly controversial as the French people along with his probable counterpart for the post of the senior vice president were observed to oppose him in a significant manner (Alvesson & Sveningsson, 2015). Along with that, the amount of help that were required for Yang from the existing workforce at France was absent.

Both the countries, China and France had significant amount of variations in the in the value dimension aspects like power distance, individualism and uncertainty avoidance. This was a major reason behind the generation of the conflicts among the mentioned parties as the leadership of Yang had a reflection of these aspects.

China is a society which accepts the inequality among the people and in organizational context, there is a visible levels of the employees which allows the superior to take the decision. The power structure is so established that the managers’ decisions are expected to be accepted by all the employees and the authorities have the power to influence the individuals. On the other hand, the organizations in France has a comparatively less powerful superior and subordinate formations and in the mentioned country, the formal discussions regarding the decision making were always appreciated. Having said that the organizations in France are also observed to have the one or two stages of hierarchical organizational structure and the access to the higher authority is limited but that is comparatively less strict than China (Matusitz & Musambira, 2013).

With a significantly low score in the individualism section, Chinese society is notable example of a collectivist society. The collective or group considerations is significant in the Chinese organizations. The employee commitment of the nation is significantly low but the trust and commitment towards the other employees is observed to be high. On the other hand the French society was significantly scoring high in the individualism aspects and that was a significant difference that Yang had to manage in the organization (LeFebvre & Franke, 2013). Yang who was in the post of the country manager of China for so long, was subjected to a society which was highly collectivist, but in France, he was subjected to the people of a society which is significantly individualistic. Hence he faced considerable amount of conflict generated from this.

The Chinese society scores considerably low in the uncertainty avoidance aspect and the major reason behind that is the significant quality of adaptability of the people. The Chinese people are capable of managing situations which are favourable for them and it is also observed that the risk element associated in such cases are significantly high. On the other hand, France is a society which scores high in the mentioned aspect and the people are observed to dislike surprises (Kong, 2013). They want everything to be well structured and decorated. The bearable risk element for the mentioned nation is significantly less. Yang was also observed to recommend some plan which was merely entertained by the French management as they wanted to avoid the risk element.

In order to lead a team which is having multinational representation, the first job of a leader is to make sure that the impact of the cultural difference is minimized as much as possible. This will help in effective implementation of the organizational activities. Along with that, Yang was needed to gain some basic qualities as a leader like the proper assessment of the market researches. The assessment of the financial details or the review of the statistics of previous years was much needed in terms of evaluation of the market trends or the preferences of the customers. Yang was significantly wrong in ignoring these steps and following individual preferences for assessing the customer trends. Apart from this, the major recommendation for Yang in the context of Deronde International will be to eliminate the issues with the CEO of the organization and request him for a face to face conversation so that the planning for the revival of the organization and achieving the desired growth get easy. Yang was facing the absence of trust of the employees and the management of the organization. Under such situation, Yang is possibly one win away from establishing himself as one of the major global leader. Yang needs to find quick success for the organization so that he be able to achieve the faith and the trust of his superiors and subordinates.

In the 21st century VUCA world, the managers are in need to increase the self-awareness of them towards the market and the organization. The increased capability of them in achieving the market insights have the potential to help the managers in their usual operations. The managers need to increase the emotional intelligence, self-management and the emotions of the other members of the organization in order to increase the organizational effectiveness. The management of the employees is a significant responsibility of the managers and in that case they are in need to make sure that they be able to understand the emotions of the employees. Along with this, the managers of the modern century must make sure that they increase their skills in the talent acquisition. The managers’ capability in asking critical questions to the employees is much needed for the acquisition of the efficient employees (Bennett & Lemoine, 2014). The operations of the modern organizations are observed to increase in a significant manner and under such conditions the recruitment of the employees hold great significance. This is the main reason behind the need of a manager who has the capability of selecting the best talents for his or her company. Apart from that, the managers must have the required skills in the management of the performances of the employees. In this case, the manager’s capability of extracting the best out of the employees is significant in achieving the organizational objectives. Along with this, the employee engagement is a massive concern for the modern day organizations where the managers must make sure that they be able to come up with strategies which will able to reduce the job stress and dissatisfaction of the employees.

The modern day organizations are observed to face considerable amount of issues in cases of the employee motivation (van der Wal, 2017).  This includes the capability of the mangers to properly hear the concerns of their employees. The managers need to take the responsibility of conducting the required sessions where they can hear the issues and problems that the employees that they are facing in the organization in conducting their usual operations.  The managers are the ones who need to generate proper compensation and rewarding policies for the employees which will be able to motivate them financially and non-financially.

At the end, the managers are basically liable for the operations like the recruitment and management of the employees’ performances. Along with this, they are the responsible ones for making sure that the employees do not feel any sort of demotivation in operating in the organization. Hence they are in need to have the capabilities like the talent acquisition, performance management and motivating the employees.

Conclusion:

On a concluding note, the modern perfume industry is observed to have an increased amount of competition among its competitors. The case is significant in specifying the detrimental impact of the varied corporate culture of the different societies. This also elaborates the faulty operations of Yang being the senior Vice president of the organization. It was observed that Yang was in search of a quick win which will make sure that the people and the employees of the organization recognizes him as a global leader.  Along with that, it is also seen that the cultural differences of the employees of the organization is having a major obstacle in increasing the organizational effectiveness which is barring the modern organizations of every industry from the achievement of their desired growth. The variation in the value dimension aspects has the capability to influence the people or the employees of the organizations in different manner. The view of a case of one employee belonging to a certain country can differ from the employees of other country. Along with that, the preferences of the power dimension is also instrumental in the formation of the difference among various employees of different countries. Hence the influence of these aspects are significant.

References:

Alvesson, M., & Sveningsson, S. (2015). Changing organizational culture: Cultural change work in progress. Routledge.

Bennett, N., & Lemoine, G. J. (2014). What a difference a word makes: Understanding threats to performance in a VUCA world. Business Horizons, 57(3), 311-317.

Bolman, L. G., & Deal, T. E. (2017). Reframing organizations: Artistry, choice, and leadership. John Wiley & Sons.

Büschgens, T., Bausch, A., & Balkin, D. B. (2013). Organizational culture and innovation: A meta?analytic review. Journal of product innovation management, 30(4), 763-781.

Hogan, S. J., & Coote, L. V. (2014). Organizational culture, innovation, and performance: A test of Schein's model. Journal of Business Research, 67(8), 1609-1621.

Intriligator, M. (2017). Globalisation of the World Economy: Potential Bene?ts and Costs and a Net Assessment. In Economics of Globalisation (pp. 85-94). Routledge.

Jones, G. R. (2013). Organizational theory, design, and change. Upper Saddle River, NJ: Pearson,.

Kong, D. T. (2013). Examining a climatoeconomic contextualization of generalized social trust mediated by uncertainty avoidance. Journal of Cross-Cultural Psychology, 44(4), 574-588.

LeFebvre, R., & Franke, V. (2013). Culture matters: Individualism vs. collectivism in conflict decision-making. Societies, 3(1), 128-146.

Matusitz, J., & Musambira, G. (2013). Power distance, uncertainty avoidance, and technology: analyzing Hofstede's dimensions and human development indicators. Journal of Technology in Human Services, 31(1), 42-60.

van der Wal, Z. (2017). The 21st century public manager. Macmillan International Higher Education.

hofstede-insights.com (2018). Home - Hofstede Insights. (2018). Retrieved from https://www.hofstede-insights.com/

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