UNIVERSITI TUN HUSSIEN ONN MALAYSIA

FACULTY OF TECHNOLOGY MANAGEMENT, BUSINESS

AND ENTREPRENEURSHIP

BPB 2053

INDIVIDUAL ASSIGNMENT:

CASE STUDY: WORLD INTERNATIONAL AIRLINES

LECTURER NAME:
MADAM ETA WAHAB

PREPARED BY:
NAME: SITI NOOR DAYANA BINTI MOHD GHAZALI
I/C: 870826105036
MATRIC NO.: CP090011
2 BPA

SUBMIT DATE: 4 JUNE 2010

QUESTION 1

How accurate were Stephen Esterant’s perceptions of western hemisphere employees?

What perceptual bias did he display?
How did the bias affect his behavior?

ANSWER Q 1

In this case, the perceiver of the perception is new general manager, Mr. Stephen, the target
of perception was the employees in western hemisphere and the situation began when new
general manager was change and he plays his role as a top management in his transition
period.

Stephen Esterant’s perception of western hemisphere employees was too high because he
might think that the employees in western were same with in Spain.
He has his own agenda when he gets a reward for his outstanding performance in his carrier.
So, he thinks that the environment in the office was in his mind that the employees give their
good performance. He also need some respect because of their hierarchy in the company and
have a power to do so. Stephen believes in the commitment and the attitude in office will
change the productivity of the company. The power distance about who is the boss and who
is worker is the things that Stephen was highlight in the company. Mr. Stephen also thinks his
employees treat him with a lack of respect. The perception that Mr. Stephen was think maybe
wrong because in the difference culture, different country or state, has a different way of their
job orientation. So, he must adapt the current situation and did not follow the way that he do
in Spain.

The perceptual bias did he display is projection which is the manager judge the employee is
same as him. It is not fair because the different cultural and maybe language will make the
people different each other. In this study case, Mr. Stephen is someone very desires to archive
a good performance and as a reward he was promoted to be general manager. So when he had
a short time visited at the department, what he aspect is not in reality. This is wrong
perceptual judgment to the workers because it can make a problem to others that cannot
follow what their manager want especially in low management area. They might think that
Mr. Stephen is use the power and make their worker not satisfaction because the previous
manager used open policy.

The bias affects his behavior very much. Mr. Stephen make himself acquainted with all
district general managers. He also starts to rank, evaluate and review of employee files. In the
other hand, he visited all district office, met the employee and have some talked with sales
personnel and operational manager. From the opinion, something part of this policy must
change. His actions caused dissatisfaction because employees do not think he should
comment on the previous policy. He also was displeased by the apparent lack of respect given
to him by his subordinates as well as the “cocky” attitude of the hourly employee. He think,
as new manager, the employee, especially on management worker should be friendlier and
entertains him like an outgoing manager. In his mind, this attitude may change as follow his
rules. When he has negative view about the employee, the problem was here and it should
settle as soon as possible.
QUESTION 2
Was Stephen the only person in this case, whose perceptions were faulty?
How accurate were the western-hemisphere employees’ perceptions of Stephen?
Did they display any perceptual biases?

ANSWER Q2

No. the employee in western hemisphere also has wrong perception especially when the
previous general manager Mr. John Nepia meet his friend, Jason Dubryne, the director of
personnel that they said Mr. Stephen was here because of his heir with the company. Mr.
Stephen wife family’s had a share and they think that the heir apparent was technically
incompetent and just did not understand the way of doing business in the western
hemisphere. They perception is opposite with Mr. Stephen view that he had successful work
that available to take the responsible at western.

Based on Mr. Stephen comments about the system and have critics because Mr. Stephen had
worked with a similar system before, the employee think that he is acted superior. The reason
why he acted like that is he gets a chance to change the policy in order to increase the volume
of the sales. Thoughtless, unappreciative and distant in his interactions with subordinates.
District Managers wanted him recalled to Spain.

Mr. Stephen did not understand a western style and culture. The issue here is he was decided
to do some changes. Hence, he did not particular on company rules and regulations. In
employees perception is Mr. Stephen is someone very perfectionist that have critic what he
think not in the place. They also think that Mr. Stephen did not know how to work and not
have a right to comment about them. Mr. Stephen also misuse the worker especially the
driver that drive the wife and her friend around a shopping trip and walk his dog or carry his
wife packages. The driver thinks that he is treated as though a servant. So the driver
perception is Mr. Stephen is not same with his previous employer that treats him as well. In
operation department, they think that Esterant.
The employees show the halo effects that the perceiver’s general impression of a target
influences his or her perception of the target on specific dimension. A subordinate who has a
good overall impression on a manager or supervisor is rated performing high quality work
and when a bad impression is come opposite way. In this case, the employees show the
fundamental attribution error that means the tendency to over attribute behavior to external
rather than to external causes. For example from the case, when Mr. Stephen was visited the
baggage handling area at Chicago where a new computerized routing system was being tested
and he had worked at the similar system before and immediately spotted some procedures
which would increase the efficiency of operation. He proceeded to tell the employees that
they didn’t know what they are doing and questioned their intelligence. From this situation, it
is clearly that Mr. Stephen has the fundamental attribution error. He should not to over give
his judgment based on the situation. His way, can build some block with the employee
because he should build a good relationship with a subordinates.
QUESTION 3
What short-term action should John Nepia have taken to resolve the problems developing
between Stephen and other airline employees?
What long term action should the company have taken to prevent similar future problems?

ANSWER Q 3

Short term action should John Nepia taken is let Mr. Stephen know about the problem
between employees and him. Mr. Nepia should explain the work culture in the company that
the employee was used before. New managers will take part in meetings with their new
employees to discuss the current state of the business and where the business is heading. Talk
with individuals in the organization to determine if his leadership style is working with those
individuals. Direct feedback from those in the workforce is important because it bring a quick
solution. The employee must understand that different culture between Mr. Stephen and the
employee and try to give and take, also need win-win situations. This action is needed
because, have a reason that Mr. Stephen rewarded as a new manager. Let him show the
credibility and his style of managing with the company that having a Multilanguage and
multicultural. Give some introduction to Mr. Stephen about the company that he maybe
didn’t know.

Long term action is setup a better mentoring program that would allow the outgoing manager
to oversee and help take part in the training an acclamation of the new manager. Make sure
the rules and procedures for the company are standard. There seems like there might be some
issues with the way things are done in different countries and if this is standardized this
would make the movement of management easier.
The other long term action is:

New Employee Orientation with offering an overview of cultural differences and how they
may influence communications and other transactions between various parts of the global
organization. Learners can be provided with their own cultural preferences, and these can be
compared to country scores or to actual scores of coworkers. Learners can then, through
exercises, learn how business practices might differ between such coworkers and be provided
with a common Language with which to frame the dialogue on cultural diversity.

Management Practices with offering an understanding of the influence of culture on

management practices worldwide within and between companies. Both compensation and
benefit practices differ considerably across cultures, often on the individual-group dimension.
What may be considered appropriate CEO compensation in a high individualistic culture may
be considered larceny in a high group-oriented country.
QUESTION 4
On the basis of Geert Hofstede’s dimensions and the fact that Stephen Esterant is Spanish,
how would you expect Stephen to behave toward subordinates? (Discuss the cultural
differences between Stephen’s native Spain and the United States location of world
international airlines)
Do these differences explain any of the problems that Stephen is having with his American
subordinated?

ANSWER Q4
Based on the five-dimensional model created by the research of Hofstede and Bond there are
some big differences in some of the characteristics between the U.S. and Spain.

Spain is rated higher in the power distance category, suggesting that the new manager feels
there should be a greater prestige due to the position he hold compared to other employees.

In a social norm power distance, those in power have privileges and powerful people try to
look as powerful as possible and respect for authority. That was Mr. Stephen doing that he
was used the high power distance in his previous work. Power distance is the extent to which
less powerful members of institutions and organizations within a country expect and accept
that power is distributed unequally. In countries with high power distance employees are too
afraid to express their doubts and disagreements with their autocratic and paternalistic bosses.
Subordinates are expected to take the blame for things going wrong. The relationship
between boss and subordinate is rarely close or personal.
In the uncertainty avoidance category Spanish culture rated almost twice as high as the
culture in the U.S. This suggest that the new manager is used to everything being very
standard, no conflicts or controversy, and that rules and regulations would be followed fairly
strictly.