Question.Nationality of choice for each senior executive position in the New York and Malm offices, respectivelyI would like to choose a local in both places, but what are the reasons to support my choice?

BackgroundA Chinese state-enterprise and its publicly traded Hong Kong subsidiary engaged in the maritime business sector are profiled. The Hong Kong subsidiary is directed to establish offices in New York City in the USA and Malmo City in Sweden. The Hong Kong senior management team has appointed a rising subordinate - 'Director Jia' as the lead person to analyse how the firm should proceed to fill the senior executive position for each foreign office.

10:47 72 + 1 3. Cross Cultural Management for a Global... . . . that the senior management followed a team management (9,9 on the leadership grid) style and the decentralized control paradigm currently. Table II. Control Paradigms Categories Bureaucratic control Decentralized control Rules and Uses detailed rules and procedures; Limited use of rules; relies on values, group procedures formal control systems and self-control, selection and socialization Authority Top-down authority, formal hierarchy, Flexible authority, flat structure, expert position power, quality control power, everyone monitors quality inspectors Job Task-related job description; Results-based job descriptions; emphasis descriptions measurable standards define minimum on goals to be achieved performance Rewards Emphasis on extrinsic rewards Extrinsic and intrinsic rewards (pay, benefits, status) meaningful work, opportunities for growth) Reward Rewards given for meeting individual Rewards individual and team; emphasis on recipients performance standards equity across employees Employee Limited, formalized employee Broad employee participation, including participation participation (e.g. grievance procedures) quality control, system design, and organizational governance Organizational Rigid organizational culture; distrust of Adaptive culture; culture recognized as culture cultural norms as means of control means for uniting individual, team, and organizational goals for overall control Source: Prepared based upon a review of Management, Richard L. Daft, Eighth Edition, Mason, Ohio: Thomson Higher Education, 2008. Daft credits Richard E. Walton, "From control to commitment in the workplace," Harvard Business Review (March-April 1985), pp. 76-84 and Don Hellriegel, Susan E. Jackson, and John W. Slocum, Jr, Management, Eighth Edition, Cincinnati, Ohio: South- Western, 1999, p. 663 as sources for the exhibit that appeared in his textbook Upon reflection, Jia remembered that when he joined HKIS the senior management followed an authority-compliance management (9,1 on the leadership grid) style and the bureaucratic control paradigm. Subsequently, the senior management recognized that their expertise involved understanding the national and political policy goals of the Chinese government although their business acumen was limited. The senior managers relied on subordinate or second-level management contributions to provide HKIS with a team-oriented approach to the two distinct demands (Chinese government policy and market-place business strategy goals) on the organization. The Bureaucratic control paradigm was in place originally; but the senior managers realized that HKIS was established by the state-enterprise CIS and its customers were not other state-enterprises but rather commercial firms. The younger, business educated subordinates were hesitant to deviate from prescribed operating procedures and their job descriptions, challenge poorly made decisions and volunteer information. Thus, in preparation for the October 2009 IPO, the HKIS senior management tasked their subordinates to develop the appropriate control paradigm to compete profitably in the market. The senior managers were convinced that the original leadership style and control paradigm were the correct choices for the newly created HKIS and believe that the merits of these approaches outweigh any identified detractions for newly created organizations. Director Jia was now satisfied that the three tables were essentially the core of his written report and oral presentation to the senior managers. He knew that the difficult part of his assigned project now had to be addressed. Jia pondered as he reviewed the assembled information as to 6 what his analysis would lead to in terms of his recommendation for appointing the senior executives in the New York City and Malmo" offices. Table Ill. Home-country, Host-country, and Third-country Nationals Nationals Benefits Drawbacks Home-country Low training costs Moderate recruiting compensation costs Potential for home-office senior Emphasizes foreign image of company management positions Communications with host-country employees Familiar with home office operations Difficulty in understanding local language and Communications with home office - same culture language and culture Host-country Low recruiting/compensation costs High training costs Enhances local image of company Limited understanding of home office operations Communications with host-country employees Communications with home office - different Understands local language and culture language and culture Third-country Global search to appoint best person for the High recruiting/compensation costs position High training costs Projects a truly international image Limited understanding of home office operations Emphasize foreign image of company Communications with host country employees Difficulty in understanding local language and culture Communications with home-country office - different language and culture Source: Prepared based upon analysis and synthesis of course notes regarding the literature pertaining to hiring home-country nationals, host-country nationals and third-country nationals Further F Q O Beamish, aw-Hill, Boston, M Bigoness, W.J. and Blakely, G.L. (1996), "A cross-national study of managerial values", Journal of International Business Studios Val 27 on 720 1010:46 72