Change Agent or Changed Agent?
Change Agent or Changed Agent?
Between the extremes of polycentrism and ethnocentrism are hybrid business practices that are not exactly like the international company's home operations and not exactly like those of the typical host-country firm. These hybrids are the most common means of reconciling differences. When the host-country environment is substantially different, the international firm must decide whether to get people in the host country to accept something new (in which case the firm will be acting as a change agent), or to make changes in the firm itself
Value System
It is much easier to adapt to things that do not challenge our
value system than to things that do. We can usually be flexible about whether
we eat our salad before or after the main course, but we would probably think
twice before exposing more of our bodies or paying bribes to government
officials, actions that would require some moral adjustment if we do not do
these things in our own country.
A Spanish textile factory opened in a community of Guatemala and tried
to install training methods, work hours, and a host of other production "improvements" commonplace in more developed areas. Not only did people refuse to work, but soldiers had to protect the factory from the community. The management retracted and gave in on those things that were most important to the potential workers. These included a four-hour period between shifts so that male workers could attend to agricultural duties and female workers could do household chores and nurse their infants. The laborers were willing to work Saturday afternoons in order to compensate for production lost during shift breaks.53 The important lesson of this is that the more a change disrupts basic values, the more the people affected will resist it. When changes do not interfere with deep-seated customs, accommodation is much more likely. By giving in on matters that were most important to the workers, the foreign firm was able to secure an effective and committed work force.
Fortunately, neither international firms nor their representatives are always expected to adhere to the national norm by people in the host society. For example, many practices that are considered "wrong" in Western culture are either customary elsewhere or only recently abolished and liable to be reinstated. These practices include chattel slavery, polygamy, concubinage, child marriage, and the burning of widows.54 Although foreigners are not expected to participate in these practices, the exposure may be so traumatic to them that the foreigners cannot perform their duties efficiently.
The Society for Applied Anthropology, whose members advise agencies on instituting change in different cultures, has adopted a code of ethics to protect foreign cultures with which they come into contact. Among the considerations is whether a project of planned change will actually benefit the target population. This respect of other cultures is itself a Western cultural phenomenon that goes back at least as far as St. Ambrose's fourth-century advice, "When in Rome, do as the Romans do." Elsewhere there has been no such compulsion to adjust. Because the definition of what is a benefit depends itself on cultural value systems, this code is a challenge to implement.
Cost-Benefit of Change
A firm must consider its sometimes conflicting objectives of cost minimization and sales maximization along with its re-
sources. We have noted, for example, that international firms tend to introduce the same or only slightly altered products into foreign markets instead of designing products that would be best suited for maximum acceptance in those markets. This may be the right decision, even though it is costly to convince people to buy "the next best thing" and even though sales are not maximized. The cost of designing and producing a new product may raise the price of the "best thing" too much, and the firm may lack the resources to make large-scale product changes.
Resistance to Too Much Change
When Sears, Roebuck decided to open its first retail store in Spain, a main problem arose with suppliers. Sears tried to deal with its Spanish suppliers in much the same way as it deals with U.S. suppliers. Among the many new policies that Sears tried to introduce immediately were payments by check, firm delivery dates, standard sizes, no manufacturer's labels, and larger orders. Suppliers balked or continued to do things their old way, claiming forgetfulness.55 Acceptance by suppliers may have been easier to obtain if Sears had made fewer demands at one time, phasing in its other policies over a period of time.
Participation
One way of avoiding undue problems if changes are to be introduced is by promoting participation. By discussing in advance the pos- sibility of change, the firm may ascertain how strong resistance might be,
stimulate the recognition of a need for improvement, and temper fears of adverse consequences among individuals who might otherwise feel that they have no say in their own destinies. Managers sometimes think that delegation
and participation are unique to highly developed countries in which people have educational backgrounds that enable them to make substantial contributions. Experience with economic development programs, however, indicates that participation in even the most undeveloped communities of the world may be extremely important. Two of the most successful development programs on record are the Vicos project in Peru and the Etawah project in India.56 Unlike some other development programs, these projects relied heavily on participation by the people of the communities. This is in spite of preferences in both countries for authoritarian leadership.
Reward Sharing
Sometimes a proposed change may have no foreseeable benefit for the people whose support is needed to ensure its success. Production workers, for example, have little incentive to shift to new work practices unless they see some benefits for themselves. A U.S. firm manufacturing electrical appliances in Mexico moved workers easily from radio to black-and-white television production. When the firm introduced color televisions, however, product defects inexplicably increased. The company learned that the workers were eager to turn out high-quality black-and-white sets because they or their friends might be consumers. The expensive color sets, however, were so far beyond their means that workers had no incentive to be careful in production. The firm's solution was to develop a bonus system for quality.
Opinion Leaders
By discovering the local channels of influence, an international firm may locate opinion leaders to help speed up the acceptance of change. In Ghana, government health workers frequently ask permission and seek the help of village witch doctors before inoculating people or spraying huts to fight malaria. This achieves the desired result without destroying important social structures. Opinion leaders may emerge in different places, such as among youth in a rapidly changing society. An interesting use of this concept in Mexico involved sending low-level workers rather than supervisors to the parent plant in the United States. These workers returned as heroes among their peers and were emulated when they demonstrated new work habits.
Timing
Many good ideas are never applied effectively because they are ill timed. Change brings uncertainty and insecurity: A labor-saving production method creates resistance because people fear losing their jobs. Fewer impediments will occur if the labor-saving methods are introduced when there is a labor shortage rather than a surplus, regardless of what management says will happen to employment. Attitudes and needs may change slowly or rapidly, so keeping abreast of these changes helps in determining timing.
Learning Abroad
The discussion thus far has centered on the interaction between the international firm and the host society. The interaction is, of course, a two-way street. The firm not only affects the relationship but is also
affected by it. It may change things abroad or alter its own activities to fit the foreign environment; it may also learn things that will be useful in its own home country or in other operations.
The national practices most likely to be scrutinized for possible use in other countries are those found in the countries that are doing best economically." For example, in the nineteenth century, when Britain was the economic leader, interest focused on the British cultural character. Then, at the turn of the century, attention was diverted to Germany and the United States. More recently, attention has shifted toward Japan and South Korea as business theorists and practitioners debate whether some of their business practices can be adopted successfully elsewhere. Whether a company is importing or exporting business practices, one must consider the same factors when questioning whether and how change can be introduced.
Between the extremes of polycentrism and ethnocentrism are hybrid business practices that are not exactly like the international company's home operations and not exactly like those of the typical host-country firm. These hybrids are the most common means of reconciling differences. When the host-country environment is substantially different, the international firm must decide whether to get people in the host country to accept something new (in which case the firm will be acting as a change agent), or to make changes in the firm itself
Value System
It is much easier to adapt to things that do not challenge our
value system than to things that do. We can usually be flexible about whether
we eat our salad before or after the main course, but we would probably think
twice before exposing more of our bodies or paying bribes to government
officials, actions that would require some moral adjustment if we do not do
these things in our own country.
A Spanish textile factory opened in a community of Guatemala and tried
to install training methods, work hours, and a host of other production "improvements" commonplace in more developed areas. Not only did people refuse to work, but soldiers had to protect the factory from the community. The management retracted and gave in on those things that were most important to the potential workers. These included a four-hour period between shifts so that male workers could attend to agricultural duties and female workers could do household chores and nurse their infants. The laborers were willing to work Saturday afternoons in order to compensate for production lost during shift breaks.53 The important lesson of this is that the more a change disrupts basic values, the more the people affected will resist it. When changes do not interfere with deep-seated customs, accommodation is much more likely. By giving in on matters that were most important to the workers, the foreign firm was able to secure an effective and committed work force.
Fortunately, neither international firms nor their representatives are always expected to adhere to the national norm by people in the host society. For example, many practices that are considered "wrong" in Western culture are either customary elsewhere or only recently abolished and liable to be reinstated. These practices include chattel slavery, polygamy, concubinage, child marriage, and the burning of widows.54 Although foreigners are not expected to participate in these practices, the exposure may be so traumatic to them that the foreigners cannot perform their duties efficiently.
The Society for Applied Anthropology, whose members advise agencies on instituting change in different cultures, has adopted a code of ethics to protect foreign cultures with which they come into contact. Among the considerations is whether a project of planned change will actually benefit the target population. This respect of other cultures is itself a Western cultural phenomenon that goes back at least as far as St. Ambrose's fourth-century advice, "When in Rome, do as the Romans do." Elsewhere there has been no such compulsion to adjust. Because the definition of what is a benefit depends itself on cultural value systems, this code is a challenge to implement.
Cost-Benefit of Change
A firm must consider its sometimes conflicting objectives of cost minimization and sales maximization along with its re-
sources. We have noted, for example, that international firms tend to introduce the same or only slightly altered products into foreign markets instead of designing products that would be best suited for maximum acceptance in those markets. This may be the right decision, even though it is costly to convince people to buy "the next best thing" and even though sales are not maximized. The cost of designing and producing a new product may raise the price of the "best thing" too much, and the firm may lack the resources to make large-scale product changes.
Resistance to Too Much Change
When Sears, Roebuck decided to open its first retail store in Spain, a main problem arose with suppliers. Sears tried to deal with its Spanish suppliers in much the same way as it deals with U.S. suppliers. Among the many new policies that Sears tried to introduce immediately were payments by check, firm delivery dates, standard sizes, no manufacturer's labels, and larger orders. Suppliers balked or continued to do things their old way, claiming forgetfulness.55 Acceptance by suppliers may have been easier to obtain if Sears had made fewer demands at one time, phasing in its other policies over a period of time.
Participation
One way of avoiding undue problems if changes are to be introduced is by promoting participation. By discussing in advance the pos- sibility of change, the firm may ascertain how strong resistance might be,
stimulate the recognition of a need for improvement, and temper fears of adverse consequences among individuals who might otherwise feel that they have no say in their own destinies. Managers sometimes think that delegation
and participation are unique to highly developed countries in which people have educational backgrounds that enable them to make substantial contributions. Experience with economic development programs, however, indicates that participation in even the most undeveloped communities of the world may be extremely important. Two of the most successful development programs on record are the Vicos project in Peru and the Etawah project in India.56 Unlike some other development programs, these projects relied heavily on participation by the people of the communities. This is in spite of preferences in both countries for authoritarian leadership.
Reward Sharing
Sometimes a proposed change may have no foreseeable benefit for the people whose support is needed to ensure its success. Production workers, for example, have little incentive to shift to new work practices unless they see some benefits for themselves. A U.S. firm manufacturing electrical appliances in Mexico moved workers easily from radio to black-and-white television production. When the firm introduced color televisions, however, product defects inexplicably increased. The company learned that the workers were eager to turn out high-quality black-and-white sets because they or their friends might be consumers. The expensive color sets, however, were so far beyond their means that workers had no incentive to be careful in production. The firm's solution was to develop a bonus system for quality.
Opinion Leaders
By discovering the local channels of influence, an international firm may locate opinion leaders to help speed up the acceptance of change. In Ghana, government health workers frequently ask permission and seek the help of village witch doctors before inoculating people or spraying huts to fight malaria. This achieves the desired result without destroying important social structures. Opinion leaders may emerge in different places, such as among youth in a rapidly changing society. An interesting use of this concept in Mexico involved sending low-level workers rather than supervisors to the parent plant in the United States. These workers returned as heroes among their peers and were emulated when they demonstrated new work habits.
Timing
Many good ideas are never applied effectively because they are ill timed. Change brings uncertainty and insecurity: A labor-saving production method creates resistance because people fear losing their jobs. Fewer impediments will occur if the labor-saving methods are introduced when there is a labor shortage rather than a surplus, regardless of what management says will happen to employment. Attitudes and needs may change slowly or rapidly, so keeping abreast of these changes helps in determining timing.
Learning Abroad
The discussion thus far has centered on the interaction between the international firm and the host society. The interaction is, of course, a two-way street. The firm not only affects the relationship but is also
affected by it. It may change things abroad or alter its own activities to fit the foreign environment; it may also learn things that will be useful in its own home country or in other operations.
The national practices most likely to be scrutinized for possible use in other countries are those found in the countries that are doing best economically." For example, in the nineteenth century, when Britain was the economic leader, interest focused on the British cultural character. Then, at the turn of the century, attention was diverted to Germany and the United States. More recently, attention has shifted toward Japan and South Korea as business theorists and practitioners debate whether some of their business practices can be adopted successfully elsewhere. Whether a company is importing or exporting business practices, one must consider the same factors when questioning whether and how change can be introduced.
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