The case under discussion allows investigating the peculiarities of the implementation of the open-door policy and the impact of different cultural norms on the implementation of this approach. In the described case, Bob Smith, the CEO of an American company, implements this policy in his organization. However, the company aims to expand in the South Korean market. Therefore, the question arises: how the open-door policy will be impacted by circumstances of the Korean office?
specifically for you
for only $16.05 $11/page
First of all, it is essential to perform the country comparison in accordance with Hofstede insights’ (2012) measures. Based on the results of the comparison, it is possible to suggest that, in general, opening a new branch of the American company in South Korea would be a challenging task because these countries’ measures differ drastically. Regarding the changes to the open-door policy, two measures have the highest significance: power distance and individualism. In South Korean, the distance between the members of hierarchical organizational structure is greater than in America. And the level of individualism differs immensely, as it is 18 and 91 for South Korea and the United States respectively. Therefore, Bob Smith might have to implement a more authoritarian style of managing because it is more suitable for South Korea.
It is also appropriate to mention that Carpenter and Dunung (2012) mention South Korea among the countries that praise collectivism by considering group goals as significantly more important than individual ones. Another aspect which is observed by Carpenter and Dunung (2012) is the evolution of ethics, as they state that bribery was a widely accepted practice in South Korea for centuries. Therefore, the American company that opens its new branch in South Korea should be aware of identified cultural and ethical peculiarities.
Carpenter, M., & Dunung, S. (2012). Challenges and opportunities in international business. Web.
Hofstede insights. (2012). Country comparison. Web.