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Cultural Integration
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S
LONG DISTANCE CULTURAL
INTEGRATION
Vikram Dahiya
IIM Rohtak
DIGIWISE TECHNOLOGIES
AI COBB
Acquisition (2004)
AI COBB
DIGIWISE
Technologies
Case Description
Within one year of acquisition of AI COBB the combined product and services were proving to be a good fit for NGS
There’s a potential for more growth and success provided the various cross- cultural integration issues between the two companies be resolved.
Therefore the case presents a leadership challenge to the management of Digiwise technologies in integrating different organizational cultures utilizing mostly virtual communication strategies.
5 W’s and 1 H
Who : Human resource management of Digiwise Technologies and the employees of Al Cobb.
What : Difference in the corporate culture of the two organizations leading to various communication issues between the employees.
Where : At Digiwise’s network group solutions business unit that is composed of members from 3 different countries having different historical values and different work culture.
Continued…
When : The issues began cropping up after DIGIWISE acquired AI COBB . Though some differences in the operating style of the two companies was expected, little attention was given to the major cultural differences.
Why : The management at DIGIWISE failed to understand the work culture of newly acquired company AI COBB. Neither were they able to communicate their work culture well.
How :Digiwise technologies didn’t spend enough time considering the cultural differences between the two companies. Their initial decisions portrayed their image as a pushy domineering bully of a company to AI COBB employees.
PAIBOC MODEL
From Jessica meson’s (HR manager , DIGIWISE technologies) perspective
Purpose : To initiate a two way communication with ex AI COBB employees and settle down on a common set of values in a way that sites could retain their autonomy, style and uniqueness.
Audience: Employees NGS. Ex AI COBB employees Core DIGIWISE employees
Continued…
Information : send information about digiwise work culture & action
Benefits :common set of values would help them to overcome the difficulties of not knowing each other personally
Continued…
Objections : difficulty in Change in the core values and acceptance of new values.
perception of DIGIWISE as a dominating company.
Context : In order to resolve the current cultural and communication issues between the employees and give them a feeling of organizational citizenship.
ISSUES
The upper management at DIGIWISE has not taken the cultural integration issue as a priority even after repetitive reminders from the HR.
Digiwise has not been able to make AI COBB employees feel a part of DIGIWISE .
Geographical isolation leading to long distance virtual interaction.
Work procedure : Decision making practices
Communication style.
One way communication .
MIXING VALUES
Unique Site-based values : Seattle, san Francisco, Denver, Miami, Chicago, Birmingham, Oslo
National values:United States, England, Norway
Historical values: CompuOptionsDigiwiseAI COBB
NGS
NGS :A DIGIWISE Technology business unit.
DILEMMA
What decision making styles should be adopted by DIGIWISE ?
If some style contradicts a DIGIWISE core values , such as participation ?
To what extent ex-AI COBB employees can participate in decision making ?
EFFECTIVE SOLUTIONS
Diversity training for managersPros : understanding of each others cultureCons : adaptability issues
Appreciating AI COBB employees for quality workPros: motivation factor , increases involvement Cons: discontent among AI COBB employees
Transfer of employees to different working sites.Pros: Cultural IntegrationCons: Emotional mismatch , may be performing well in a specific team.
Continued …
Organizing team outing and Rejuvenating trips : increase interaction.
Pros: increased team work efficiencyCons: expenses , objection to go with family
Strict adherence to DIGIWISE values.Pros: strict working culture, short Cons: Discontent among AI COBB employees
Video-conferencing instead of tele-conferencingPros: exchange of expressions, observing responseCons: dissatisfaction regarding work environment
Continued …
EMPATHY : Imagine yourself in the cultural shoes of others.
Pros: give respect get respectCons: wrong perception, stereotyping
COLLECTIVISM: Harmony and loyalty , avoid confrontation.Pros: joyous work environmentCons: emotional involvement at professional workspace
Effective two way communicationPros: better understandingCons: clash of opinions
Resist Stereotyping.
Tolerance of ambiguity.
Respect for differences.
S
THANK YOU .