BALANCING VALUES – AN INDIAN PERSPECTIVE ON CORPORATE VALUES

FROM SCANDINAVIA
The internationalisation of corporations has become normal concept within the increasing
globalization. This concept, however, has been raising many challenges in the multinational
companies (MNC) such as: unifying the corporate culture values in order to have a concise
image and globally shared values. Furthermore, from the human recourses perspective in order to
align the corporate culture and HR policies in the home country and host countries, there are
several conditions should be considered including, legal regulations, characteristics of host
country’s national culture and characteristics of the political and economic system ( Dundovic,
2016). Consequently, companies would adjust their cultural-values and strategies of the
organization due to the create a common base for the internationally implementation and for the
achieving the best practice globally.
The case study of ‘An Indian perspective on corporate values from Scandinavia’ is one of
the examples of the challenges that multinational companies are facing in terms of the
implementing their corporate culture in the host country.
The Pharmaz is multinational pharmaceutical company was founded in Denmark and has
subsidiaries in more than 30 countries in the world. The company culture and values have a
significant importance for the company and the head office is endeavouring to spread it across
the borders. The ‘value-driven’ company’s main core values are stated under the three main areas
including, empowerment, equal opportunities and openness in communication.
On the other hand, The Pharmaz India one of the subsidiaries of Pharmaz , has started to
operate the tasks for the head office and after their quick growth, their responsibility varied
including collaboration with other branches. After the growth and acquisition of half Indian
owned company, Pharmaz India has become a vital growth location for the headquarter. Thus,
implementation of corporate values in Pharmaz India has been considered seriously from the top-
managers in Denmark.

ACT 1 – Question : Identify the main issues raised and discuss how they may be explained
in terms of the cultural and institutional contexts of Pharmaz in general and Pharmaz
India in particular.
First of all, Pharmaz India having a challenge with implementing and performing the
main values as it is expected from the headquarter. This is the as a result of the head quarter’s
unfamiliarities with the host country’s culture. Without having a better understanding of Indian
Culture and Context at the workplace, the head office intends to implement their own frame right
away, without any adjustments. This results in a conflict of interest between employees and
affects the overall performance of the company.
There are several subsidiary strategies that MNC use and Pharmaz’s strategy can be
classified under the ethnocentric, global strategy since they expect their subsidiaries to be a like
in terms of the carrying out same corporation-value system, organizational structure etc. as they
are used in the main organization (Farndale & Paauwe , 2005). The corporate culture of Pharmaz
Denmark offers lots of benefits to its Indian subsidiary while providing lifelong learning
environment for everyone.
In his article Soderberg points out that, the common approach has been used by the
companies is communicating to top management and expecting the information will transfer
linearly from top – down to implement their value-based management system in their across
country subsidiaries. However, it is challenging to ensure both sides if the information has been
received and understood as planned without having any cultural interpretation (Soderberg,) .
From the case study, it is inferred that Pharmaz Denmark was using the common
approach to implement their corporate values in India. The manager Amrita is the top manager
who is sending the message to the employees to create their buy-in, however, in the Indian
context with their interpretation it did not result in as it is intended. Thus, it created frustration
for the manager and employees in India.
We should consider the different cultural structure of the two companies to have a better
understanding about what lies under the cultural conflicts. Hofstede’s cultural differences
framework will be used in this case study to conceive main contrasts between two cultures under
the four dimensions. These dimensions are power distance, individualism – collectivism,
uncertainty avoidance and masculinity and femininity (Cite).

Denmark is a western country which has identified by the Hofstede’s comparison

individualism score of 74 their culture is individualistic in contradict to collectivistic Eastern
country India which has individualistic score of 48.
Uncertainty avoidance is relatively higher in India than Denmark. This shows the why in India In
India employees are being slow to respond. Because the employees would like to have the
approval of their superiors before respond,
Empowerment : Headoffice finds her managements system as authoritarian and wants to change
it like more a coach delegate more and give fewer orders. (Empowerment and working
independently ) . Indian culture is not
Maintaning collebrative spirit: There is a challenge due to cultural difference in Indian people
who has different bacgrounds. It affects the professional working environment but so delicate
issue higher castes are not to enjoy any special privilages in the workplace according to in dial
Legislation. But they do not want to raise the topic of caste explicitly.
She finds the expatriate finance director direct and demanding and it is challanging for Amrita
and her collegues > Mention the cultural communication and culture.He is new, Danish and has
lots of experience not onliy in Denmark but in another subsidiaries too .
Institutional and general However he expects a free exchange of ideas which she finds their
conversations so inspirational . And he is good at showing appreciation when likes the
wievpoints and ideas presented. But hard to convince him , This especialy the case *when your
arguments refer to the particularities of the indian context and the need to bend Pharmaz’
corporate values in order to put them into practice in a realistic manner.
Main differenties : He believes in no titles , values are important for him . HE has limited
knowledge about indian context and thinks that values should implemented for speeding up
decision making process by minimazing control and bureaucracy.
He wants to reorganize the the work process in financial department so they can reflect the
pharmaz’s business value and model better.
She is okay with the changes but she thinks that he can not go all the way implementing the
values and model right away in Indian concept.
Promotions and prices different from the headoffice system .to retain their qualified employees
in the competitive labor market.

ACT 2 – Question : Imagine yourself in Amrita’s position. Which proposal would you make to
Niels Nielsen and how would you argue in order to convince him ?

The nature of the problem itself is cultural differences between two countries. The headoffice
should take the action to understand and look deep into cultural context in India. And then asses
these differences. Finally, implement some adjustments in the corporate culture value system to
get all the employees buy in. In short term, retain employees and make them happy is the first
aim and long term is examining the culture detailed and see the main shortcomings.
The target should be finding the balance between being globally decentralized and locally
centralized. For example in Pharmaz India, Indian work culture, Institutional context and
company size should be considered.
Suggestions: Retraining, new hires should be aligned with the corporate culture, HR trainings
and employee rotations between other countries. Gaining core values with exchanging. Shared
learning standardization and locally adaptation customization. Active strategic involment of HR
department:
- The headquarter wants to carry out more complicated task in india and expectations are
more empowerment and less micromanagement.
- The team members waiting for the amritas aprovel, they don’t know much about their
collegues work it is considered under the knowledge sharing.
- Empowerment
- Teach the employees to live the values,
- When she empowers the employees, they get upset because in Indian context their
expectations is being micromanaged by the manager. Explicit orders and follow ups. ( It
is not surprising for the Indian culture because same education system ) They stick to the
instructions and do not want to go out of the lines.
- Promotion is expected by amrata for the employees to motivate them. Organization is
really flat when compare to other companies and expectation is having more titles to see
the hierarchy clearly. And quartly prices (Recognition)

ACT 3 – Questions : Step out of Amrita’s role and answer the following:
1- Do you feel that the measures taken to implement the corporate values and reorganize
work in the financial services center have been appropriate?
To implement the corporate values at subsidiary level in India , top management has to decide
which approach they will choose to design their international HRM system. In the literature there
are several approaches , however, one of them is the most appropriate for the current situation in
Pharmaz India. This approach would be exportive, which means HRM practices which have been
developed at the head office should be integrating at the cross border subsidiaries with the closes
replication (Cite, The role of corporate functions.) In the Pharmaz India , where they managed as
dependently, to increase the local responsiveness the little adjustments are acceptable in the
replication of the HRM policy.

Corporte HR can more focus on the implementation of the policies in the Indian context and
monitor the progress.
 2- Would you have done anything differently ?
3- How should one proceed now to achieve the best possible result for Pharmaz India’s
financial services center?

Her proposal was : new job description for everyone with their responsibilities,
Meeting for communications and job delegation,
Empowerment challenge is practice ,

Clear understanding of expectations, but it is creating more bureaucracy than reducing it

References
Søderberg, A. (2015). Recontextualising a strategic concept within a globalising company: A

case study on Carlsberg's ‘Winning Behaviours’ strategy. International Journal of Human

Resource Management, 26(2), 231-257.

Farndale, E. & Paauwe, J. (2005). The role of corporate HR functions in multinational corporations: The interplay between

corporate, regional/national and plant level (CAHRS Working Paper #05-10). Ithaca, NY: Cornell University, School

of Industrial and Labor Relations, Center for Advanced Human Resource Studies.

Zander, L., Jonsen, K., & Mockaitis, A. I. (2016). Leveraging values in global organizations:

premises, paradoxes and progress. Management International Review, (2). 149.