Pharmaz is a multinational pharmaceutical company, which headquarter is located in
Denmark. Worldwide, Pharmaz employs around 6000 people in 30 countries.
Currently, the management concentrates on presenting Pharmaz as a value-driven and
innovative company. As a result, the following three corporate values should be focused
prospectively (Dowling, Festing & Engle 2013, p. 319):
1. Empowerment of all employees,
2. Equal opportunities for developing the employees' competencies,
3. Openness in communication associated with knowledge exchange.
Furthermore, a focus for Pharmaz is the growth of the Indian subsidiary. It gains strategic
importance, more people shall be recruited and the management likes to take advantage of the
low cost, professional Indians.
Accordingly, Amrita Chopra, the senior financial manager of Pharmaz India, and Niels
Nielsen, the finance director of Pharmaz India (Dowling, Festing & Engle 2013, p. 322),
discuss the alignment of local work procedures. (Dowling, Festing & Engle 2013, p. 319)
In sum, Pharmaz reflects a company's cultural differences between Denmark and India, while
the Danish executives try to apply its new values. Also, the company represents the huge
managers' efforts that are required for the change. [...]
Table of Contents
1. Introduction
2. Main issues raised at Pharmaz associated with the differing cultural and institutional contexts of Pharmaz Denmark and India
3. Key components of Amrita's approach for implementing the corporate values in India
4. Suggestions for improvements of Amrita's approach
5. Critical questions by Pharmaz Headquarters on the changes implemented
6. Issues in Balvinder's team related to India's culture
7. Conclusion
Research Objectives & Key Topics
This paper examines the challenges of implementing corporate values from a Danish multinational headquarters into its Indian subsidiary, specifically focusing on cross-cultural management conflicts and strategies for successful adaptation.
- Cross-cultural communication and management styles
- Implementation of corporate values in diverse institutional contexts
- Theoretical cultural frameworks (Hofstede, Trompenaars, Hampden Turner)
- Practical approaches to conflict resolution and team management
Excerpt from the Book
Main issues raised at Pharmaz associated with the differing cultural and institutional contexts of Pharmaz Denmark and India
In general, all issues at Pharmaz are depending on the cultural differences. The headquarter's management is keen to implement the focused corporate values worldwide. However, experiences in India have shown that the work culture is different.
The following paragraph will discuss three main issues:
1. Independency of employees
2. Interdepartmental misunderstandings
3. Different perspectives in communication
First of all, Pharmaz' corporate value 'the empowerment of employees' raises major problems. The company's management argues that it is important that every employee is able to make independent decisions. Certainly, the executives expect confident and powerful staff but not everybody in a subsidiary of Pharmaz like the Indian is able to lead own projects cause of their education. (Dowling, Festing & Engle 2013, p. 320)
Consequently, a first characteristic of India's work culture is highlighted. Employees struggle with accepting unknown challenges, require structure and are in need of regulations from direct supervisors. (Birkinshaw & Caulkin n.d., Abstract)
Summary of Chapters
Introduction: Outlines the corporate profile of Pharmaz and the strategic goal of implementing new global values within the Indian subsidiary.
Main issues raised at Pharmaz associated with the differing cultural and institutional contexts of Pharmaz Denmark and India: Identifies core conflicts regarding employee autonomy, communication barriers, and the friction between Danish management expectations and Indian work culture.
Key components of Amrita's approach for implementing the corporate values in India: Details the specific strategies proposed by the local manager, including hierarchy adjustments and reward systems.
Suggestions for improvements of Amrita's approach: Evaluates the efficacy of the proposed strategies and compares them with broader management theories and external expert opinions.
Critical questions by Pharmaz Headquarters on the changes implemented: Analyzes the implementation process as a strategic project and addresses necessary post-implementation reviews.
Issues in Balvinder's team related to India's culture: Examines specific team-level friction and communication gaps rooted in Indian cultural nuances.
Conclusion: Summarizes the necessity of adapting management styles to local cultural realities to prevent long-term operational discrepancies.
Keywords
Cross-cultural management, Corporate values, Pharmaz, India, Denmark, Hofstede, Power distance, Individualism, Change implementation, Global mindset, Team management, Communication, Organizational culture, Work culture, Conflict resolution
Frequently Asked Questions
What is the core focus of this study?
This study analyzes the difficulties a Danish pharmaceutical company faces when attempting to apply its standardized corporate values to its Indian subsidiary.
What are the primary themes discussed?
The main themes include cross-cultural friction, the clash of communication styles, the adaptation of management practices to local hierarchies, and the implementation of change strategies.
What is the main objective of the assignment?
The objective is to explore how cultural and institutional differences between Denmark and India impact the effectiveness of corporate value implementation and to suggest improvements for the management team.
Which scientific models are used to analyze the case?
The author primarily utilizes the cultural dimension models of Geert Hofstede, as well as the frameworks proposed by Fons Trompenaars and Charles Hampden Turner.
What does the main body of the text cover?
The main body covers identified cultural issues, Amrita’s proposed implementation approach, expert perspectives on change management, and a detailed look at team-specific problems in the Indian subsidiary.
Which keywords characterize this paper?
Key terms include Cross-cultural management, Change implementation, Corporate values, Power distance, and Global mindset.
How does the Danish headquarters influence the Indian subsidiary?
The headquarters exerts pressure by insisting on the universal implementation of new values, often without accounting for the specific cultural and educational background of the Indian employees.
What is the role of Amrita in the conflict?
Amrita acts as the local mediator who must reconcile the demands of the Danish management with the actual operational reality of her Indian team.
- Arbeit zitieren
- Lena Meier (Autor:in), 2013, Balancing Values. An Indian perspective on corporate values from Scandinavia, München, GRIN Verlag, https://www.grin.com/document/274922
