Question 1

The decision to change the organizational structure of the MIS department of MedScope is the main reason why employees want to leave. The department had a flat organizational structure in which managers shared critical information with employees. However, Bob thought this was not the best organizational structure for the department. He was worried that instead of devoting his time to planning, the heavy managerial workload and a large number of employees reporting to him would affect his performance. The best way to deal with this problem was to change the organizational structure to hierarchical. The impact was that many employees began distrusting Bob and his leadership style leading to resignation. In terms of culture, one aspect of culture that Bob did not incorporate in his decision to make sudden change was that the Australian society is loosely-knit and more individualistic. Thus, hierarchy is established for convenience, superiors are accessible and managers rely on individual employees and teams for their expertise. Both managers and employees expect to be consulted and information is shared frequently.

Question 2

The parent company could have conducted cross-cultural training before letting Bob join their subsidiary in Australia. Bob needed to understand and appreciate cultural values, practices, and the various nuances in Australia. The goal of cross-cultural training is to address cross-cultural communication and cross-cultural conflict resolution. The manager needs to understand the impact of culture on management style. He needs to that culture dictates whether you adopt a formal or less formal management style. In cultures with weak hierarchical structures, employees at all levels are supported and encouraged to contribute their ideas. In cultures with strong hierarchical structures, this may not be acceptable. The manager’s family needs to be aware of intercultural communication to integrate into differing styles.