03 Jun WHY IT DID NOT WORK IN INDONESIA AND WHY IT WORKED IN NEW ZEALAND.
You are an external consultant that has been engaged to advise the Board of Directors of an Australian technology organisation that has successfully expanded its business internationally, but recently, have been experiencing organisational culture issues across its subsidiaries. Two years ago, the organisation opened up its first subsidiary in New Zealand. At the time, in order to maintain the organisation’s corporate identity, the HR Manager had decided that the same HR policies and practices would be used in the subsidiary that are used in the Australian parent company.
Last year, the organisation opened a second subsidiary in Indonesia and following the strategy that was decided upon at the time that the organisation first went international, the same HR policies and practices are also being used in the Indonesian subsidiary. However, the HR policies and practices are not nearly as effective in the Indonesian subsidiary as in the Australian or New Zealand businesses. The organisation’s HR policy of rewarding outstanding performance by individual employees appears to be having a negative effect on team performance and cohesion.
Case Study Questions:
1. Relate the case study scenario to the cultural dimensions identified by Hofstede and explain the issues faced by the organisation.
– use Hofstede cultural dimension to compare between those countries. Why it did not work in Indonesia and why it worked in New Zealand.
– talk about standardization and globalization
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