Riordan Manufacturing Conflict

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Gap Analysis: Riordan Global markets create opportunities for businesses, but simultaneously generate difficultchallenges. The different cultures in the international market can produce conflicts becauseappropriate behavior in one country may be inappropriate for another. Riordan Manufacturing(Riordan) is a multinational company operating in the United States and China (University of Phoenix, 2010). The CEO, Michael Riordan, wants to expand the Hangzhou facility after aprofitable year (University of Phoenix, 2010). The company does not have a personnelmanagement plan to address cultural issues to incorporate in an international managementapproach.International management applies management ideas, procedures, and adaptablemultinational practices…show more content…
Skilled Chinese workers are not available and the company has to hire foreignworkers from Pakistan, India, and Korea to work with the current Chinese and Americanworkforce (University of Phoenix, 2010). To achieve the strategic goals of the company, aninternational management approach that focuses on a cultural sensitivity is necessary. The planhas the opportunity to use cultural dimension studies to develop a cultural synergistic workforce.Riordan human resources should investigate cultural dimension studies to obtaininformation to understand the diverse workforce cultures to create a collaborative and respectfulworkforce. A recognized study is Geer Hofstede¶s cultural dimension (Hodgetts, Luthans, &Doh, 2005). The massive study determines four dimensions: ³(1) power distance, (2) uncertaintyavoidance, (3) individualism, and (4) masculinity´ (Hodgetts, Luthans, & Doh, 2005, p. 102).The study provides information on different cultures behavior (Hodgetts, Luthans, & Doh, 2005).An example is individualism versus collectivism.In the United States, Americans are individualistic concerned about the welfare of self and family (Hodgetts, Luthans, & Doh, 2005). Many of the foreign workers from Pakistan, India,and Korea are in collectivist societies and are concerned about protecting group members andfamily to obtain loyalty (Hodgetts, Luthans, & Doh, 2005). The difference could…show more content…
Hiringthe foreign workers may interfere with the policies of China¶s political and legal environment.Prior to Riordan¶s plans to expand the facility in Hangzhou and hire additional foreignworkers, the management should consider the political and legal climates of China to eliminateinterference with the goals of the company. China is a communist state but embraces a freemarket economy (Hodgetts, Luthans, & Doh, 2005). Presently the political environment is stablein comparison to Latin America or the Middle East (Hodgetts, Luthans, & Doh, 2005). However,Riordan needs to investigate thoroughly the legal and regulatory aspects of expanding the facilityand hiring foreign workers in China.The legal and regulatory environment in China needs investigating. Planning to expandthe Hangzhou facility must be approved by the government. Knowledge of the laws and traderegulations of the country helps to avoid legalities that could be costly. An example of China¶scomplexity is the decision to cap the annual rate of return to 12% on foreign investors interestedin building and operating power-plants (Hodgetts, Luthans, & Doh, 2005). China is a communiststate and makes up its regulatory rules spontaneously. The government has no legislation or court systems that provide checks and balances on the government officials running the country.Riordan must comply with the laws and regulatory policies of

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