Thursday, April 14, 2011

Leader Interview


Introduction of the Leader
          Miss Namuna Dura serves as the Human Resources Manager of Him-Shree Foods Pvt. Ltd., in Pokhara, Nepal. Him-Shree Foods Pvt. Ltd. is one of the leading noodles and snack manufacturing industries in Nepal with its popular brands like Rara and Aaha. Miss Dura is 32 years of age. After graduating from Indian Institute of Management, India, and  majoring in Human Resources Management, she returned to her hometown and joined her family-owned business as a Human Resource Manager. Miss Dura has been associated with the company since last five years.
         The reason to select Miss Dura for this interview is that she is one of the few HR Professionals in Nepal who really comes with the academic background of her career. She, according to me, is one of the few young leaders in Nepal who really has qualities to be one of the efficient leaders in years to come. I worked for around one year under her as her assistant.

Setup of the Interview                       
          The interview was taken online. Appointment was taken through an email to her organization. She replied with an approval of about half an hour for online interview through a MSN Live Chat. The interview was taken on September 17, 2009 at 11:30 P.M. (EST). Though it was not a real face to face interview, but the conversation gave the same kind of taste to the face to face interview.

Leader’s Style and Behavior
           As a subordinate to her, it was so wonderful to have such opportunity to explore her styles and behavior.  In my perspective, she possesses a People – Oriented Leadership style. She is totally focused on organizing, supporting, and developing the people in the leader’s team. She participates with the team which tends to lead to good teamwork and creative collaboration. 
           Instead of showing power as a leader, she tends to be behaving herself as on the same level as other employees are. She does not create any distinct level of hierarchy amongst her subordinates. She is humble and motivational.
           She has a clear vision of where she wants to lead her organization in terms of the human resource management. She has plans for that. She is focused and determined. She has the ability to decide promptly. Above all she has the courage to ask feedback and to hear criticisms about her. This makes her so competent in her area.
           
Leader’s Effectiveness
           Miss Namuna Dura is a young HR Professional. In this role, Miss Dura handles her corporate human resource issues for more than 800 employees. She works in staff recruitment and formulates human resource policies for new areas of her operation. Her other roles include formulating strategic HR, industrial relations, and training and development. 
          “Strategic human resource management is a branch of Human resource management. It is a fairly new field” says Miss Namuna “that links human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation, flexibility and competitive advantage.”
          She uses all possible advertising tools to recruit. Mainly she has also made an agreement with Rolling Plans Consultancy, which is a private recruitment agency in Nepal. However, she is strictly bound to the organizational budget to spend on such expenses.
         She is very much determined in providing benefits to the employees. “Employees are the hands of the organization” she says “so we have to keep them satisfied by our maximum efforts and budget management.” Insurance of the employees is a neglected area in Nepal. She has emphasized most of her resources in that. She says that in coming two years all her employees will have health insurance.

Leader’s Strengths and Weaknesses
           As per the analysis her strengths are as follows:
1.      She has a good knowledge of what she is doing and what she has to do.
2.      She is very much adoptive to the contingent problems and issues.
3.      She knows how to react on various situations.
4.      She has an ability to create a good relationship amongst the employees.
5.      She is persuasive.
           She has some weaknesses as well. Being so much people oriented and not task oriented is somewhere her one of the major weaknesses. In most cases, people need to be task oriented as well. Being more lenient and being more people oriented may help her to come up with a good team but not with good team’s goal. It can lead to failure to achieve the team’s goals. So, in practice, she needs to have both people oriented as well as task oriented kind of leadership styles.

Leader’s Current Challenges
          Miss Namuna Dura finds it very difficult to change the previous practices which have been ruling the organization for several years. She says it is sometimes very difficult to apply new philosophies all at once. However, she believes that the organization should bring strategies slowly but she is confident that in the long run it will show a tremendous progress.
          The role of labor unions and problems of industrial relations, as they are reflected in changing labor laws are the prevailing current issues for Miss Dura as she says. Nepal is also going through a recovery stage and in a process to finalize its new constitution. People are demanding for their rights and everyone has to be satisfied. As a leader, it is so difficult to handle each one of the employees with better care in such situations.
          Meeting corporate social responsibility is another issue. As it is one of the largest manufacturing industries in Nepal, it has some responsibilities towards its communities. However, she has sponsored to the “AAHA FOOTBALL” conducted every year. She says it is another way of advertising the product. Moreover, from investment perspective, the budget should be designed focusing in every sector which is also a crucial point.
          According to her another critical issue prevailing now is the problem of electricity cut off. Nepal faces electricity cut off for 6 to 7 hours per day. This has pressurized and minimized the output of the organization which is further decreasing the profit margin. In this scenario, there is a tremendous pressure to lay off its employees. “Lay off is not an easy task now because we may need the same employee in future if the conditions get better” she says “it will be difficult to find the local human resource in future if we sack off them now.” However, for the current scenario there is no other alternative as well.
          Favoritism and nepotism is still an incurable-like disease while recruitment. “A lot of phone calls come from reputed people to inject their people when we announce the vacancies” she interprets “the company recently faced a one and half month strike from the labor union blaming the company for unethical and biased hiring practices.” She further adds that sometime it is the board members who pressurize her to hire an employee and in such case they act as the HR Manager and not her. “I wish I could change all the board members having traditional vision.” She angered.
          Hence, critical problems that are prevailing now are just related to the traditional way of thinking from the upper level corporate people. The forcing new labor laws to include every caste, religion, and creed are very difficult. Moreover, finding best candidates from pool of applicants is also a critical issue. The government’s transition period is also another critical problem now.
          However, she likes challenges and accepts that though the path is difficult but destiny is not so far. She says that she is enjoying facing challenges and she is confident that slowly and steadily she will manage to have a good human resource practices in her organization.

Leader’s Challenges Ahead
           “The major challenge ahead is eradicating all the false practices from its root” Miss Dura says “I am in fifth year in this organization; I think I could change only 10 percent. Once, the system is set, it is really so difficult to change convincing so many old philosophies and compelling them to change.”
          She is concerned for succession planning. Her main challenge for next decade is to prepare a pool of well qualified and fully skilled human resources for her organization who will take the company to a new height. She is also unhappy to see the increasing flow of abroad going young and dynamic human resources and settling themselves in abroad only. Her mission is to create some valuable strategies for the organization which will be a sample interpretation of fair human resources practices. She wants to eradicate gender inequality, create strong relations with labor unions, and keep its human resources satisfied and efficient.
           With the determination, vision, and strategies she possess she is proving to be the best leader. With the passage of time she has been able to change many things in the organizations in favor of the good practices inside it. She has been able to find root problems and with her abilities she will be able to conquer each of them and as she said she will be able to create a good human resource practices in her organization. She has been acknowledged by the board members and she is quite a respected leader amongst her employees.

Conclusion
          Human Resources Management is a burning issue in the context of Nepal. Due to lack of knowledge in this field, so many organizations are found to be closing. Human resources are treated as the purchased commodity in the Nepalese business society and paying against the law. Businesses try to dominate their employees in terms of proper pay, gender biased, and efficiency. There is huge unemployment problem in Nepal so there is a very less bargaining power with the human resources. Businesses are found to be taking benefit from that condition.
           Moreover, the concept of a good leadership is also in the increasing trend now as not yet developed. Leaders think themselves associated with extra power to control others. They try to rule on people.
          Also, there are still the false practices ruling in the organization in Nepal. The traditional concepts are overtaking modern values. The scientific and ethical practices are ignored. Moreover, favoritism and nepotism are still ruling. There is a great challenge for the young HR professional and a good leader like Miss Dura to overcome the false practices and lead the company towards the modern path.
          There are so many factors which prevail in current scenario to affect in hiring practices. There are challenges related to employee lay off due to various problems inside the country. However, there is a lot to be done to improve the HR practices in Nepal. The consistent effort from young HR professionals like Miss Dura can, in future, help in creating the best HR practices in Nepal. A visionary leader with strong command on her determination and with the style to influence her employees is what needed for the organization for its tremendous enhancement and success.                                                           

Appendix
List of questions asked:
1.      How would you like to introduce yourself?
2.      Would you please tell me something about your organization?
3.      Would you please tell me the background of your academic qualifications?
4.      How many years have you been involved in Human Resources?
5.      What are the typical duties of the profession? 
6.      What do you mean by Strategic HR?
7.      How do you recruit your employees?
8.      What are the critical issues that you currently face? Please tell me point wise with its description.
9.      How do you feel when you cannot do what you want from your position?
10.  What issues do you believe will be critical in the next decade or so?
11.  Are you still happy with your choice for your profession?




Reference
1.      UHWO Writing Center (1998). Writing an interview paper. Retrieved September 17, 2009, from  http://homepages.uhwo.hawaii.edu/~writing/interview.htm




Fairness and Ethics in Decision Making


Fairness and Ethics in Decision Making

“Many of our decisions are made within a social context, in which we are confronted with the options, the actions, and the presence of other active decision makers (Kelly 2000).  Because of the social setting, decision makers are often have impact on the welfare of others, and vice versa” (Cremer D., Dijk E).
“Ethics is not following the law. A good system of law does incorporate many ethical standards, but law can deviate from what is ethical. Law can become ethically corrupt, as some totalitarian regimes have made it. Law can be a function of power alone and designed to serve the interests of narrow groups. Law may have a difficult time designing or enforcing standards in some important areas, and may be slow to address new problems” (Velasquez M., Michael J.D.)
Here is another very relevant example in fairness and ethics in decision making, “Say ‘A’ is the widowed parent of three children. He has been jobless for almost a year. Six months ago he started looking outside his field, dropping his expectations and salary requirements. He is deep in debt, has no medical coverage and is overdue on the rent. He has been trying to keep up a cheerful attitude for his children, who don’t know the extent of the family’s woes. Now a good job has come up. He is told it’s between him and another person, but he must swear in writing that he has never taken illegal drugs. Trouble is, he used to smoke a little marijuana now and then. He is never taken any other illegal drug and he don’t use marijuana anymore either — but that hasn’t changed his opinion that it is absurd and hypocritical that marijuana is illegal while alcohol and nicotine — which every year kill millions and cost society billions. Does he lie on the application?” (Hanson W.).  people often lie whenever they fall in this kind of situation. It is unethical but there is no way out. Situation and the environment compel them to be unethical and unfair.
“Most of our decisions aren’t such dilemmas. But the stakes can be high even in mundane matters, for everything we do and say represents a choice. How we decide determines the shape of our lives”. (Wes Hanson)
Our decisions in our daily life and in our business situation are unethical most of the times. The reason is that ethical decision may not be the correct decision from the business standpoints and may not be perfect decision from individual perspectives. For example, now a day we, the consumers are very aware that we disregard or say ‘No’ to those business that employed child labor or pay less to their employees. On the other hand businesses have to reduce the cost of their production in order to survive in the competitive business world. They cannot survive if they don’t send their manufacturing plant to China and employed cheap labor of developing countries and least developed countries due to the lack of competitiveness in the business.  For example, CEO of the business decides and says, “We are not going to employ those cheap labors rather being the American company, we only hire American citizens and pay good salary”. This decision is very fair and ethical but this may not be a good business decision. Because, they may go out of business due to the lack of competitiveness and eventually who ever are employed in the business will be laid off as almost all manufacturing giant is moving to developing world seeking cheap labor and cheap materials.  
There is not any clear distinction between ethical and unethical business decisions. Some decisions are ethical for us but the same decisions are consider unethical by some other people. For example, CEO of the any company gets paid far more than that of the average employees of the company. Some people argue in favor of it and some people argue against it. A person who says this is fair believes that CEO’s contribution to the success of the overall organization is far more than that of the average employees and on the other hand those who argue against it say it is misuse of the power.
 One of the reputed commercial bank of Nepal was practicing unfair and unethical business practices to hide taxations. After so many years one of their operation level employees in internal audit department found out the truth and threatened the management team to rectify it before he public the news. Top level management immediately called the meeting. Some of the board members were purposed to fire him because he was the employment at will, which means employer can fire their employees any time for no reason. But board decides to keep him and moved him to other location and in other department. Latter, the guy called the press conference and leaked the breaking news to the media and then to the general public. And finally, the bank gets closed.
In my opinion, above example is a fair and ethical because the management did not fire the guy even though they knew that he is against the fortune of the business. But it’s not the good decision either. Though the guy did the good job by whistle blowing but organization can save its public image by firing this guy and making some adjustment within the organization’s internal audit department.
Another example of fairness and ethics in the decision making is: we have an uncle (older brother of my father) who used to work in the cement company. After working 22 Years in the cement company, he was unable to work like before due to the exposure to the dust, smoke and other unhealthy work life hazards. Few years later he was fired without pension and nothing to live on. His supervisor said that he was a good employee before but now he is worthless. Is it a fair decision? Is it ethical? I would say it is neither fair nor ethical. My uncle is unable to work not because of his own reason rather it is due to his working environment. Therefore, the cement company is responsible to provide him all health related benefits and pension. Decision to fire him and his supervisors comment on him is clearly unethical, irresponsible and unfair.
Furthermore, we have hospital related family owned business. We own several hospitals and we are the sole suppliers of the medical equipment. Whatever medical equipment sold in Nepal like city scan, ultra sounds, ECG machine etc goes through our supply chain. We take a lot of benefits of being only one supplier in the country. Our profitability ratios in those equipments are exceptionally high.  We do this because there are no competitors at all and threat of new entrance is almost nil due to our contract with the Japanese and Korean manufacturing company. We know that it is not ethical to charge too high price in health related goods but this is the way business operates. Our top level management team is doing their best to increase the profit margin either by selling more or by charging high price. During our family gathering my brother (President of the Global Meditech international and Medtronix Nepal) said that “we are not charging high price to our customers rather the price is determined by the demand of the medical equipment itself”). He is right. Price is always determined by the market forces of supply and demand. There is a huge demand of medical equipments in Nepal and we are the sole suppliers supplying those equipment. Two key factors are widely responsible for setting present high price of medical equipments. The first is that the Nepalese hospital industry is growing business and there are no other suppliers in the country therefore we enjoy a kind of monopoly power in the business. But still we cannot say that it is fair and ethical decision as said by my brothers. We have unethical business practices. We charge high price because we know that people will buy it any way which is unethical.
Truly speaking, it is very hard to be ethical and grow in the business in the context of Nepal. To be ethical in the business adds some cost to the overall cost of production. In my opinion, like land, labor, capital, and organization, ethics is another cost of the business. Doing business ethically means adding some cost to it which increase the bottom line cost of the business and we have to charge little bit more to the customers to cover the incremental cost due to the ethicality in the business.
In conclusion, “No one can simply read about ethics and become ethical, of course. People often have to make decisions under economic, professional and social pressure. Rationalization and laziness are constant temptations. But making ethical decisions is worth it if you want a better life and a better world. Keep in mind that whether for good or ill, change is always just a decision away (Hanson H.)




























Reference

Lightsey, O.R. & Christopher, J.C. (1997). Stress Buffers in a non-Western population. Journal of Counseling and Development. 75(6), 451-459.

Klayman, J., Soll, J.B., Gonzalez-Vallejo, C. & Barlas, S. (1999). Overconfidence: It depends on how, what, and whom you ask. Organizational Behavior and Human Decision Processes, 79(3), 216-247.
Bazerman, Max H.(2006) Judgement in managerial decision making 7th edition. Hoboken, New Jersey; John Wiley & Sons.

Conflict Resolution for contrasting culture


1.      How are the mangers of the Japanese manufacturing firm different from the American managers in the way they approach conflict resolution and decision making?
One of the key characteristics of the Japanese managers is that they analyze the thing in long term perspectives and from big pictures.  That means while making decisions, Japanese managers consider broad company goals and strategy. Beside this, Japanese managers try to avoid uncertainties. And also engage in programmed decision-making by using standard operating procedures found in thick operating manuals. Japanese managers rely on systematic decision making process.  Beside this, they also use informal approaches of decision making which could result in an informal meeting or a more formal meeting to consider implementation.
In contrast, American managers make quick and instant decisions for immediate resolution or rapid return on investment.  And unlike Japanese managers, American managers use non-programmed decision in which they gather and analyze data and information to identify and solve the problems. Not only this, but also American managers apply both authoritative and participative behavior to make the decisions.  In authoritative behavior, only concerned manager involves in decision making process and he/she informs his/her subordinates of the decision. On the other hand in Participative behavior of decision making American managers involve in the decision making utilizing subordinates in the process and collectively making a decision.
Another major difference in between Japanese managers and American Managers is that Japanese manager’s focus on collective approach while making decisions or choosing the best alternatives. Japanese managers enjoy much when their entire group enjoyed success. On the contrary, an American manager enjoys much when they are successful individually. In another words, American managers focus more on ways in which they won individually.
           In conflict resolution or while negotiating, the difference between American and Japanese managers lies in the rhythm of negotiation and directness. The key fact about American managers is that they like fast and direct approach of problem solving, conflict resolution or negotiation. But this may not true in case of Japanese managers. Japanese including some other countries managers may not necessarily consider speediness and directness as a quality of the decision making even though American likes it because, the rhythm of negotiations and conflict resolution or decision making is comparatively much slower outside the United States or in Japan.
Finally American managers apply informal way while negotiating and they like quick meetings. Beside this they are aggressive, impatient and direct to problems or to the issues.  On the contrary, Japanese managers try to be formal while negotiating, they like long courting process and they draw on intermediaries. They try to explain the problem situation and they are relatively indirect.  And finally Japanese are comparatively less aggressive rather they are patient and questioning.  The terms of agreement for American managers is a ‘good deal” but for the Japanese managers, “a long term relationship is the key agenda for the negotiations.
In conclusion, American managers view interactions within relationships and groups as occurring between independent individuals, and thus, disagreements and conflicts are accepted as a natural and inevitable aspect of social life while approaching conflict or making decisions. Japanese managers on the other hand, dislike social disorganization or disagreements and therefore they have developed social structures, institutions, and customs for avoiding or reducing conflicts. The Japanese try to avoid tactics and rather they are more concerned with maintaining a social relationship. On the contrary, Americans  who are said to be individualists emphasis a strong use of assertive tactics in conflict situations, with a greater concern for attaining justice for themselves and reported a preference for assertive tactics. Furthermore, American emphasizes more verbally direct approaches for dealing with areas of disagreement. They emphasize precision in language use and generally follow the maxim, "say what you mean and mean what you say" kind of philosophy while dealing with conflict resolution or approaching conflict situation. Talking about the disagreement directly to one another is a comfortable approach for the Discussion style. Japanese on the other hand, apply accommodation style while solving conflict and making decision that emphasizes a more indirect approach for dealing with areas of disagreement and a more emotionally restrained or controlled manner for dealing with each party's emotional response to conflict. They emphasize ambiguity and circumlocution in language to make sure that conflict remains with their control. They use indirect speech and intermediaries to minimize the level of conflict.
2.      Why do the Japanese consider the American mangers impatient?
The reason Japanese managers consider their American counterparts as impatient are that there are so many differences in social structure and business decision making in Japan and in America. Japanese negotiators or managers have a rigid social structure and expect American managers to respect it. For example Japanese managers are interested in multidimensional relationships therefore, they heavily emphasis on entertainment and non-task sounding activities. Japanese believes that things worth doing are worth doing slowly. Agreements are expected to be of long duration – negotiations can’t be rushed. But, American love quick decisions. They don’t want to waste time dealing with unnecessary things. They are sharp and precise in decision making and negotiating.  Japanese see themselves as part of the team and really can’t engage in freelancing.  Japanese spends much time while clearing proposals at all levels so that consensus can be built. On the other hand, Americans are much more likely to disregard the need for harmony.
Another reason for saying the American salespeople are impatient by the Japanese counterparts is that Japanese believes that American managers treat everything as though it is an emergency and never plan before the actual time when they need some information. They further argue that American managers call meetings at the last minute and expect people (especially Japanese) to come ready to solve a problem about which they know nothing in advance.
3.      What would you do to increase the amount of cooperation between the two parties?
Following are some of the elements or the factors that I would like to consider in order to increase the amount of cooperation between two parties:
      1.            Encourage active participation between both parties in the meeting by giving enough time for the preparation with the prior notice of meeting and agenda to be discussed in the meetings.
      2.            Ensure effective and clear communication among and between all the parties and members.
      3.            Slow down the pace of decision making to make sure that all concerned members are clear and up-to-date with the facts discussed so far.
      4.            Make sure that Japanese managers will understand their American counterparts and there is proper communication between both the parties. If there is gap between two parties then encourage good behavior and cross cultural workshop to harmonize the relationship between two.
      5.            Incorporate the culture of both the groups while functioning and making decision.
      6.            Use the tools and methods of the communication as per the preference of the parties to whom the information is being delivered.
      7.            Make sure that everyone’s voice is considered while making decisions and all concerned parties are agreed with the decisions. 
      8.            Encourage the interaction and establish a dialogue between two parties by providing advice, consultation, and support to two parties.
      9.            Call confidential meetings with both Japanese and American managers and try to bring trust in between them.
  10.            Encourage both individual decision-making and group decision making and creative style, to analyse the spread of cognitive diversity among the members, and to give them individual feedback and encourage both American and Japanese managers to talk and participate sensibly about what had happened and to find a way forward.
  11.            Hold the time to time workshop with the manager and colleagues. 
  12.            Encourage and allow time for discussing the problems and possible solutions thoroughly and encourage listening and understanding each other’s points of view in order to find solutions that both the parties will be able to live up to.
  13.            Looking at the situation it seems like Japanese managers fears with that of American managers therefore to enhance the cooperation and communication between these two groups we need to reduce the fear of one party to other so that it work as a core of intercultural conflict resolution and understanding and have to make sure that there is equality of status, position and power in between two groups.

4.      Why did the Japanese not respond to the e-mails and written messages from the Americans?
Some of the important reason for the Japanese managers not responding to the e-mails and written message from the Americans are:
                              1.            In this particular case Japanese Managers think that the Americans don’t want their feedback.
                              2.            American talk fast comparing their Japanese counterparts and use too much slang that makes the Japanese managers unable to understand the situation. And when Japanese don’t understand the overall scenario then they say nothing which doesn’t mean they agree with it (this is the cultural impact).
                              3.            When Japanese managers understand what Americans were talking about in the meeting, American’s were off on a different subject that makes the Japanese feel themselves as an inferior which they don’t like at all.
                              4.            Japanese just agreed so as not to hold up the meeting. Japanese believes that brainstorming session is nothing more than guessing in public which is irresponsibility (this is completely not the way Japanese solves the problems).
                              5.            The Americans rely too much on written communication whereas Japanese don’t therefore; Japanese are less willing to use emails and memos as their primary means of communication. Therefore, Japanese managers believe that American managers send too many memos and too much e-mail and it seems like American’s just sit in their offices creating a lot of paperwork without knowing how people will react.
                              6.            Japanese blames that American’s are so cut-and-dried about business and do not care what others think and they talk a lot about making fast decisions, but they do not seem to be concerned if it is the right decision.
Furthermore, Japanese managers perceive that American managers lack regard for the duties and tons of responsibilities toward headquarters. They  further adds that American managers send faxes demanding quick action, without knowing the obstacles headquarters has to overcome, such as requests from many customers around the world that have to be analyzed. Therefore, they conclude that the real problem as “no loyalty from our U.S. customers”. Furthermore Japanese believes that price and turnaround time matters the most to the American managers rather than the long lasting relationship between the two stakeholders. Not only this but also, Japanese claims that American managers aren’t ready to commit with the headquarters and they don’t want to be committed with them either and that’s the major reason they don’t want to reply the emails and memos.
In conclusion, unlike Americans, Japanese less often use such emails and memos as a central means of communication. Beside this, they don’t like written means of communication and they are less interested to communicate in any other languages beside their own language. But here in this case, there is more than general idea of liking and disliking. There is the grievance and dissatisfaction that should be narrow down or eliminate to encourage communication and participation of both parties in the decision making process.












References:
Phatak, Bhagat & Kashlak, International Management, 2nd ed., McGraw-Hill Irwin, 2009