consistent with Mabuchis corporate strategy? Training program, New integrated Headquarters and Overseas Operations (NIHAO) was launched to train local managers in order to reduce the costs of expatriate mangers who were overpaid compared to the local manager. The Goal was to allow local managers to take over key positions as their skills developed to sufficient levels. This is in line with the strategy of the organization to reduce the cost of operation which is one of the core strengths of the organization. The training program NIHAO has to reinforce hierarchical notion of management and standardize of management practice to avoid overlap or omission of duties. It also should not take into the individual interests and differences in terms of managerial tasks which are generalist in nature. And it should also train the local managers to regularly do performance compensation which encourage upward mobility and provide compensation and bonuses to the employees to retain them. The training program was launched in the Dalian subsidiary to groom local managers. The program was started with 5 different training modules for five different hierarchies in the organization. Local consultants were hired to conduct the training program in the local languages. However, when follow-up test were done to assess the progress of the training program NIHAO, the organization was disappointed as they could see great difficulty in internalizing some of the essential aspects of the Mabuchis management requirement. There was no clear division between subordinates and superiors as most of the locally hired managers couldnt accustom themselves to the requirements of Mabuchi mostly because of their resistance to change their expectations which were set by their prior experience. They also have seen that the performance evaluation was not working properly because of the communist behavior of the employees. The failure of this mainly could be attributed to the cultural difference between Chinese and Japanese. Taking into account the cultural differences, below are the few alternatives for Mabuchi to proceed with: 1
Abort the NIHAO program and continue its
operations with the expatriate managers although the firm incurs higher costs. This option would not be a better alternative as this will inhibit the company to reach its objective. Make stricter policies to make it mandatory for all the employees to follow the required set of rules although they would be resisted by the employees initially. This option takes time to see the change in the mangers. This would also incur organizational costs but when successfully implemented would reach its strategic objective. Go for a pilot in a different plant and check the success rate and see if the failure was only in the Dalian plant or is it with the Chinese plants or with all the plants outside the home country. Then change the training program so as to consider the cultural behavior of Chinese employees. And start off with the changed training program.
Change the organizational structure so as to have
lesser number of expatriate managers who would be supplemented by local managers. This option would not completely remove the need of expatriate managers for the firm. Mabuchi can continue to have transitional expatriate managers as plant/country managers who would overlook the operations of the plant/country and make the local managers to embrace the required change gradually. Once these managers are accustomed to the change, then the number of expatriate managers can be reduced gradually.
Also there can be a mix of alternatives to achieve the organizations objectives.
For instance, mix of 3 and 5 which would provide for risk free transition from the present state to required state which is aligned with the strategic objectives.