Analysis of the Conflict at Alabama Factory

李露

【Abstract】This paper picks a piece of news about cultural clash from The Wall Street Journal，aims to interpret the conflict with several theories and tries to find out what factors contribute to the conflict and what measures can be took to alleviate the situation. Meanwhile， what implications can be provided to other multinational corporations in compliance with an increasing of companies going abroad and dealing with multinational transactions.

【Key words】intercultural conflict； individualism； collectivism； Management style

1.Introduction

This paper centers on a news story about a cultural clash between GD Copper， a Chinese subsidiary in U.S， and the American workers under the background of Chinese companys rapidly acquisition in the U.S. This paper is aimed at employing two theories including Hofstedes cultural dimensions theory and managerial grid theory to analyze the news to figure out the intercultural conflict and how the writer constructs the story to provide implications.

2. Summary of the News Story

The news story took place in GD Copper， a subsidiary of Chinas Golden Dragon， which was established in Alabama， U.S in 2015. Initially， managers and workers didnt get enough training in such areas as safety and understanding foreign cultures. For language barrier， Chinese trainers cant have adequate communication with American workers who thus get insufficient training. Therefore， American workers think they dont have much authority， Chinese people dont trust them and they tend to be punished more harshly than Chinese. So some steelworkers approved a local union to demand a higher wage and alleged some unsafe work practices. The news portrays a cultural conflict between China and American under a multinational company background to highlight the importance of intercultural sensitivity.

3. Theoretical Framework

This paper applies two theories to interpreting it and making several recommendations. The relevant theories include collectivism and individualism from Hofstedes cultural dimensions theory and managerial grid theory of Blake and Mouton.

3.1 Hofstedes cultural dimensions theory

Cultural dimensions theory is proposed by Hofstede， identified six dimensions of culture that he labeled individualism versus collectivism， power distance， uncertainty avoidance， masculinity versus femininity， long-term orientation versus short-term orientation and indulgence versus restraint.（ Hofstede， 1997）

3.2 Managerial grid theory

The managerial grid of Blake and Mouton is an increasingly used theory of leadership effectiveness. Packaged as a human relations training laboratory， the managerial grid has been adopted extensively by several major industrial organizations to improve interpersonal effectiveness and develop leadership skills. Blake and Mouton's book Corporate Excellence through Grid Organization Development （1968） presents a summary of the theory's application.

4. Result

Individualism versus collectivism is one key point of Hofstedes cultural dimensions theory. This news concentrates on the cultural clash between Chinese company and American workers， obviously， Chinese and American respectively have the features of collectivism and individualism. Hence， applying this dimension will contribute to a deeper understanding of the conflict. （Hofstede， 1997）

Apparently， resulting from insufficient intercultural training and language barrier， the Chinese company and the American workers neither have enough cultural sensitivity. Hence， American workers are confused with Chinese in-group phenomenon， and Chinese company is taken back when workers form the union. To some extent， the differences between collectivism and individualism is one of the main contributors in the conflict.

Besides， the management style of managers of GD Copper is more likely close to （5， 5） in managerial grid theory， namely middle-of-the-road style which stands for balance and compromise. With this style， managers try to balance between company goals and workers' needs.

At the outset， GD Copper didnt give managers and workers enough training in such areas as safety and understanding foreign cultures. But to a multinational corporation， safety of workers and language training are most essential， which become crucial factors leading to workers dissatisfaction. In order to alleviate the conflict， the leader should guide the company close to a team style， a statement of high concern for result and people. The company can conduct periodically such training as safety awareness and Chinese culture to make American feel that they are valued. Moreover， normal and detailed regulations concerning employees principle， rewards and disciplinary sanctions should be clearly told to everyone in the team and should be strictly carried out， then American workers know that everyone is equally treated in the company and devote themselves to the team.

5. Conclusion

This paper tends to figure out that regular training on safety and understanding foreign culture is preferred and reinforcing communication between workers and managers are advisable. Besides， the leader should emphasize the intercultural differences and give more concern for the workers on both sides. Its hoped that the analysis can be inspiring to multinational corporations in dealing with intercultural conflict.

【References】

[1].Hofstede， G.（1997）. Cultures and Organizations： Software of the Mind. New York， NY： McGraw-Hill.

[2].James R. Hagerty. （2017， February15）. A Clash of Cultures at Alabama Factory. The Wall Street Journal. Retrieved from http：//www.wsj.com/articles/a-clash-of-culture-at-alabama-factory-1456655407

[3].Blake， Robert R，， and Jane S， Mouton .（1968）. Corporate Excellence Through Grid Organization Development， Houston： Gulf Publishing.