Gap Analysis: Riordan 1

Running head: GAP ANALYSIS: RIORDAN

Gap Analysis: Riordan

Terri Gilbert

University of Phoenix
 Gap Analysis: Riordan 2

Gap Analysis: Riordan

Global markets create opportunities for businesses, but simultaneously generate difficult

challenges. The different cultures in the international market can produce conflicts because

appropriate 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 a

profitable year (University of Phoenix, 2010). The company does not have a personnel

management plan to address cultural issues to incorporate in an international management

approach.

International management applies management ideas, procedures, and adaptable

multinational practices to different environments (Hodgetts, Luthans, & Doh, 2005). The

company needs skilled workers and available labor is from Korea, India, and Pakistan in the

Hangzhou region (University of Phoenix, 2010). Riordan must rethink the current business

strategy to include a personnel management plan that incorporates cultural sensitivity

approaches, scrutinize other challenges created by cross-border exterior environments, and reveal

requirements management needs to perform in a global market to achieve growth, profitability,

and sustainability in China.

 Gap Analysis: Riordan 3

Situation Analysis

Issue and Opportunity Identification

Riordan plans to hire from a diversified labor force but the different cultures need to

integrate to develop into a collaborative and respectful workforce. The company has the

opportunity to create a personnel management plan that implements cultural sensitivity methods.

Another challenge for Riordan is to ensure China is stable and the company is in compliance

with the laws and regulations for expansion and hiring foreign workers from the Hangzhou area.

The company can research on the China’s politics, laws, and regulatory procedures to ensure

Riordan is in compliance. Riordan must consider investigating important requirements necessary

to establish a successful multinational company. The company has the opportunity to determine

if the integration of culture and management will provide a respectful and collaborative

workforce by using recognized research as the determinants to develop organizational

competence based on cross-cultural perspectives.

 Gap Analysis: Riordan 4

Stakeholder Perspectives/Ethical Dilemmas

Riordan has to consider the stakeholders interest, values, and ethical dilemmas. The

senior management interest is to achieve the strategic goals and values hard work, honesty,

accountability, profit, and self-welfare. The facility expansion failure will decrease profit and

shareholders may leave the organization. Employees’ interest is to receive equitable pay and

benefits and coexisting relationships between cultures. The employees value honesty, fairness,

self-welfare and respect. The ethical dilemma that may present could be miscommunication

because of differences in languages and customs resulting in loss of workers. The Chinese

government has an interest in Riordan adhering to the political and legal climate of the country.

The Chinese government values honesty, self-welfare, interest, accountability, and profit. The

ethical dilemma may be Riordan hiring the foreign workers may not comply with the China’s

employment regulations and could be harmful to the country (e.g. a spy or terrorist).
 Gap Analysis: Riordan 5

End-State Vision

Riordan successfully expanded the Hangzhou facility and has a cultural synergistic

workforce. The company implemented an international management policy that included a

personnel management plan. The plan provided cultural sensitivity programs for the diversified

workforce that developed a collaborative and respectful workforce. Riordan used cultural

dimension studies to understand the diverse labor force and investigated China’s political and

legal procedures to continue operating in a stable environment and be in compliance of

regulations. Riordan incorporated two important research studies to provide a comprehensive

investigation to integrate culture and management. The studies revealed information that helped

the company to achieve better relations with the diversified workforce on a short- and long-term

basis. Riordan has achieved cross-cultural competence and cultural synergy to lead the company

into the top ranking of the plastic industry.

 Gap Analysis: Riordan 6

Gap Analysis

Riordan wants to expand the Chinese facility and needs additional workers (University of

Phoenix, 2010). Skilled Chinese workers are not available and the company has to hire foreign

workers from Pakistan, India, and Korea to work with the current Chinese and American

workforce (University of Phoenix, 2010). To achieve the strategic goals of the company, an

international management approach that focuses on a cultural sensitivity is necessary. The plan

has the opportunity to use cultural dimension studies to develop a cultural synergistic workforce.

Riordan human resources should investigate cultural dimension studies to obtain

information to understand the diverse workforce cultures to create a collaborative and respectful

workforce. A recognized study is Geer Hofstede’s cultural dimension (Hodgetts, Luthans, &

Doh, 2005). The massive study determines four dimensions: “(1) power distance, (2) uncertainty

avoidance, (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 and

family to obtain loyalty (Hodgetts, Luthans, & Doh, 2005). The difference could affect work

performance. Individualist are hard workers, believe in individual rewards, and promotions come

from market rates (Hodgetts, Luthans, & Doh, 2005). Collectivist countries do not support hard

work ethics, have lower self initiative, and promoted by seniority (Hodgetts, Luthans, & Doh,

2005). Hiring workers from collectivistic societies could affect the production and delivery of
 Gap Analysis: Riordan 7

goods, which Riordan should consider when hiring skilled workers from these countries. Hiring

the 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 foreign

workers, the management should consider the political and legal climates of China to eliminate

interference with the goals of the company. China is a communist state but embraces a free

market economy (Hodgetts, Luthans, & Doh, 2005). Presently the political environment is stable

in 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 facility

and hiring foreign workers in China.

The legal and regulatory environment in China needs investigating. Planning to expand

the Hangzhou facility must be approved by the government. Knowledge of the laws and trade

regulations of the country helps to avoid legalities that could be costly. An example of China’s

complexity is the decision to cap the annual rate of return to 12% on foreign investors interested

in building and operating power-plants (Hodgetts, Luthans, & Doh, 2005). China is a communist

state 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 China to continue operating in the

country. The political and legal determinants are requirements for management to continue a

successful global operation. However, an important determinant depends on the organization

competency based on cross-cultural perspectives.

Riordan must recognize requirements to manage successfully the company’s global

business. The company needs to develop organizational competence in the global market.

According to Kersiene and Savaneviciene (2009), “… organizational competence is the ability of

 Gap Analysis: Riordan 8

an organization to sustain coordinated deployments of assets and capabilities in ways that help

the organization achieve its goals” (p. 57). The expansion of the Hangzhou facility challenges the

company in developing a collaborative and respectful diverse workforce. To create cultural

synergy, Riordan needs to develop and manage organizational competence on a cross-cultural

perspective. The company must absorb culture information to provide cultural integration

strategies to manage the impact of cultural diversity (Kersiene & Savaneviciene, 2009).

Investigating recent research on cultural dimension provides insight to leverage cross-cultural

differences to determine integration of culture and management (Kersiene & Savaneviciene,

2009). Two recent studies provide important information needed to establish organization

competency based on a cross-cultural viewpoint. Trompenaars’s cultural dimension and the

GLOBE assessment are research studies that evaluate the integration of culture and management.

The Trompenaar’s cultural dimension study extends Hofstede’s study and provides more cultural

dimensions to use to create cultural sensitivity approaches. The GLOBE (Global Leadership and

Organizational Behavior) is a research program that measures cultural differences by extending

and integrating earlier investigation of cultural characteristics and variables (Hodgetts, Luthans,

& Doh, 2005). The study is significant because a multicultural team conducts the research

(Hodgetts, Luthans, & Doh, 2005). Both studies demonstrate that cross-cultural management is

an important competitive advantage resource and help an organization form cross-cultural

competencies to create cultural synergy.

 Gap Analysis: Riordan 9

Conclusion

Riordan is a multinational corporation that faces new challenges in an effort to achieve a

competitive advantage and create value. The expansion of the Hangzhou facility requires hiring

more of a diverse workforce. An international management system including cultural sensitivity

approaches can create a collaborative and respectful workforce. Examination of the political and

legal climate is necessary to comply with China’s policies. Developing organization competence

based on a cross-cultural viewpoint is necessary to integrate culture and management. Using the

Hofstede and Trompenaar’s cultural dimension and GLOBE provides information on how values

affect a workforce and ways to measure the integration of culture and management.

Investigation and application of these factors create a balance between the needs of a diverse

workforce and the business objective of Riordan to achieve a competitive advantage in the global

market.
 Gap Analysis: Riordan 10

References

Hodgetts, R., Luthans, F., and Doh, J. (2005). International Management: Culture, Strategy, and

Behavior, 6e, New York: The McGraw-Hill Companies.

Kersiene, K. and Savaneviciene, A. (2009). The formation and management of organizational

competence based on cross-cultural perspective. ISSN 1392 – 2785 Inzinerine

Ekonomika-Engineering Economics (5). Retrieved February 4, 2010 from

www.ktu.lt/lt/mokslas/zurnalai/inzeko/65/1392-2758-2009-5-65-056.pdf

University of Phoenix. (2010). Riordan manufacturing [Computer Software]. Retrieved from

University of Phoenix, Simulation, MMPBL/560 - Managing in a Cross-Cultural

Environment website.
 Gap Analysis: Riordan 11

Table 1

Issue and Opportunity Identification

Issue Opportunity Reference to Concept

Specific
Course Concept
(Include citation)

Riordan Manufacturing Riordan has the “International International

management is the
(Riordan) Chinese facility opportunity to process of management
applying
prospered last year and the CEO, develop an management
concepts and
Michael Riordan decided to international techniques in a
multinational
expand the facility to provide management plan environment and
adapting
other goods internationally. The that consists of management
practices to
company faces the challenge of personnel different
economic,
providing a personnel management to political, and
cultural
management plan that provide cultural environments”
(Hodgetts,
incorporates cross-cultural sensitive methods Luthans, & Doh,
2005, p. 6) (s.
issues. for foreign

workers and

continue good

relations with

China
Riordan needs a skilled Riordan has an “… Dutch `
researcher, Geert
workforce that is not available. opportunity to Hofstede found
there are four
The company has decided to use use Hofstede’s dimensions of
culture that help to
foreign workers from Pakistan, research study to explain how and
why
 Gap Analysis: Riordan 12

Korea, and India to work along determine culture

side the current Chinese and sensitive issues

American employees. The that may occur

company’s challenge is to with foreign

provide a personnel management workers

program that develops a cultural performance and

sensitivity program to develop a interrelationships

collaborative and respectful .

workforce.
+++ Riordan has the “… examine the Political and
political, legal and
opportunity to regulatory … Legal
environments ...
research [and] major trends Environment
… that will help
information dictate the world
in which
regarding the international
managers will
current political compete”
(Hodgetts,
and legal status Luthans, & Doh,
2005, p. 34).
of China before

expanding the

facility.
Riordan must consider what Riordan has the “”A more recent Trompenaars’s

requirements need to be opportunity to description of how Cultural

identified to be a successful determine if the cultures differ, by Dimension

multinational company. integration of another Dutch AND

organizational competence based culture and research, Fons GLOBE

 Gap Analysis: Riordan 13

on cross-cultural perspectives. e. management will Trompenaars, … (Global

provide a research conduct Leadership

respectful and over a 10-year a and

collaborative period” (Hodgetts, Organizational

workforce by Luthans, & Doh, Behavior

using recognized 2005, p. 109) Effectiveness)

research as the

determinants to The GLOBE

develop (Global

Leadership and

Organizational

Behavior

Effectiveness)

research program

reflects an

additional

approach to

measuring cultural

differences …

[that] extends and

integrates previous

analyses of

cultural attributes
 Gap Analysis: Riordan 14

and variables”

(Hodgetts,

Luthans, & Doh,

2005, p.117)
 Gap Analysis: Riordan 15

Table 2

Stakeholder Perspectives

Stakeholder Perspectives

Stakeholder Groups The Interests, Rights, and

Values of Each Group

Riordan top management Top management has an interest in

achieving the strategic goals of the company.

The senior management values hard work,

honesty, accountability, interest and self-

welfare. The ethical dilemma could be the

failure of the expansion that will decrease

shareholders gain and the stockholders may

want to leave the organization.

Employees The employees have an interest in receiving

equitable pay and benefits, and

understanding each individual’s culture. The

employees value honest, fairness, self-

welfare, and respect. The ethical dilemma

that may present itself could be

miscommunication because of languages or

customs that could harm the integrity of an

individual.
Chinese government The government has an interest in Riordan

adhering to the political and legal climate of

the country. The Chinese government values

 Gap Analysis: Riordan 16

honesty, self-welfare, interest, accountability,

and profit. The ethical dilemma may be hiring

foreign workers that do not comply with the

country’s employment regulations and could

be harmful to the country (e.g. spy,

terrorist). .
 Gap Analysis: Riordan 17

Table 3

End State Goals

End-State Goals
Implementation of an international management plan that includes a personnel

management method to create cultural sensitivity programs for the foreign workers to

develop a collaborative and respectful workforce.

Used Geert Hofstede’s cultural dimension study to understand the political, legal and

technology challenges facing the company in Hangzhou, China.

Further investigated other research to integrate culture and management using the

Trompenaar’s cultural dimension and Global Leadership and Organizational Behavior

Effectiveness (GLOBE) studies.