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What alternatives to NIHAO were available?

Are these alternatives


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.

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