MBO Case Study

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Culture is a foundation for preferred modes of conduct Not only does these assumptions are bases of society, but also people’s preferred modes of conducts. In HRM, managers in multinational workplaces need to be someone who is adaptive to different preferences at work. Specifically, expatriate, because he/she has more possibilities for exposure to cultural differences. The reason is, many firms send expatriate to overseas subsidiaries for flows of information and administration. Also, headquarters can achieve control through both socialization and formal report provided by the expatriate (Schneider, 1988). Every national expatriate has his or her own way of doing things. For example, in USA, managers would adopt a more formal and impersonal …show more content…

One feature of this practice is more involvement of superior and subordinates in setting goals (Thomson, 1998). The superior would discuss with his/her subordinates on what to achieve and the time needed to achieve the goals. Having discussing the details thoroughly make this practice factual and precise. Therefore, in Germany, MBO is an effective mean to motivate employees since the principles of MBO concur with German’s value; decentralization, less hierarchy, and factual (Schneider, S. C., 1988). German employees enjoy being engaged in goal setting process and have measurable goals. In other words, they view MBO has positive connotations in German’s mind. On the contrary, it is not effective in France as the idea of MBO in making decisions with superiors is not common in their perspective. Despite the fact MBO is less formal and French people are not always use formalization to achieve goals, they prefer more formalized ways in their workplaces (Schneider, S. C., 1988). In other words, French people somehow interpret MBO in a negative manners. Even though both German and French share degrees of individualism and indulgence in common, it did not help MBO to be successful in France. The lessons from this case is perception also matters when evaluate the effectiveness of HRM practices. Employee’s perception based on cultural background should be taken into account to see the suitability

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