Running head: PROBLEM SOLUTION: RIORDAN
Problem Solution: Riordan
Problem Solution: Riordan
Riordan Manufacturing is a multinational corporation led by a competent and dedicated senior management team. Riordan has experienced success with an operation opened in China in the past year and has made a decision to expand by adding a second production site. This new venture presents cross-cultural challenges Riordan has not before faced.
Riordan must solve its problem so it can realize its goal of offering more components around the globe. To do this, a nine-step problem-solving model will be applied starting with identifying of issues and opportunities and ending with the optimal ...view middle of the document...
Riordan should study and integrate the principles of researchers Hofstede and Trompenaar (Hodgetts, Luthrans & Doh, 2006, p. 101).
Riordan has noted there is too much competition in the local province that has led to lack of available Chinese skilled labor (University of Phoenix, 2011). Riordan has an opportunity to consider opening a new facility in another emerging country such as India. Steady economic growth has occurred in India and the Indian government is interested in continuing to attract investors (Hodgetts, Luthrans & Doh, 2006, p. 27). If selecting another region for the plant is not viable, Riordan could consider emerging technology to produce and ship their components that would reduce the amount of labor that needs to be hired (Hodgetts, Luthrans & Doh, p. 48).
One of Riordan’s key players, plant manager, Lu Chen has been working for Riordan since the current facility opened and is being groomed to take over for Robert Lord in two years. Per Chen’s e-mail response to Lord where he says his schedule is too full to solicit staff input on the needs and considerations of a culturally diverse workforce it would appear he has issues with uncertainty avoidance (University of Phoenix, 2011). Processes and structures will need to be put into place to encourage acceptance and keep the project moving forward.
Stakeholder Perspectives/Ethical Dilemmas
The government of China is the first stakeholder group to consider. Interests and rights include economic growth, trade liberalization, and foreign investment. Education and job opportunities are highly valued. It is also important to note that China is known for bureaucratic structures that can delay multi-national corporations from proceeding with their plans to expand operations. China’s government regulations favor domestic companies and present major obstacles for MNCs (Hodgetts, Luthrans & Doh, 2006, p. 37). These factors compete with the interests, rights, and values of Riordan Manufacturing that encompass international growth, measured success, and a proactive approach in preventing obstacles that could stand in the way of achieving short and long-term goals (University of Phoenix, 2011).
The diverse workforce of the new facility will have differences and similarities in values, rights, and interests. As an example, managers from India put high value on pursuit of goals in a nonaggressive manner. Korean managers value personal forcefulness, aggressiveness, and place a low value on recognition of others (Hodgetts, Luthrans & Doh, p. 98). American managers believe individuals can influence the future and should be realistic in their aspirations and that competition stimulates high performance (Hodgetts, Luthrans & Doh, p. 99). Competing cultural values can impact organizational performance specifically planning and scheduling, choosing the best motivation and reward systems, and career development and marketing (Hodgetts, Luthrans & Doh, pp. 99).