Case Study: Charles Martin in Uganda

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1. DESCRIBE UGANDAN CULTURAL ATTRIBUTES THAT MIGHT AFFECT

OPERATIONS OF A FOREIGN COMPANY OPERATING THERE.
The Republic of Uganda is a landlocked country in East Africa, bordered on the east by Kenya,
the north by Sudan, on the west by the Democratic Republic of the Congo, on the southwest by
Rwanda, and on the south by Tanzania. When addressing the question with reference to the
cultural attributes that may hinder organizational operations of foreign firms within the Republic
of Uganda, many areas of great concern is evident. For example its multi ethnic, multi religious
and multi language based culture.
The culture of Uganda is made up of a complex and diverse range of ethnic groups resulting in
many tribal based customs and rituals. Many multi religions too are seen within Uganda, even
though Christians make up 85.1% of Uganda's population, there were sizeable numbers of Sikhs
and Hindus in the country until Asians were expelled in 1972 by Idi Amin. It is further stated in
the case study that a considerable number of Muslims and others who follow animistic religions
too exists within Uganda. Ugandas multi language based population too can make a huge impact
on foreign firms taking up operations within the country. Even though English is the official
language of Uganda, only a relatively small percentage of the population speaks it. The most
commonly used languages are Bantu or Nilotic languages.
Another area of great concern for foreign investors would be the impact of the number of
refugees within Uganda. The case study states that a large number of refugees from Rwanda,
Zaire and Sudan have been absorbed by the Republic of Uganda, thus resulting in high levels of
unemployment within the country. Such events not only has hampered the countrys economic
growth severely but also has made many Ugandans live in great poverty and well below
expected standards of living. Even though one may go on to argue on the fact that a country with
a high level of unemployment would result in cheap labour which no doubt could be obtained in
plenty will not only attract foreign investors but also would hand them many positive outcomes
in terms of cost management.

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Case Study: Charles Martin in Uganda

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In contrast such persons should also keep in mind that such cheap labour obtained would not
only be highly unskilled but also would be lacking in the much needed finesse which is of great
value and importance when producing quality products. It could also be stated that such labour
employed would result in minimum levels of value addition to the organization in terms of its
human resources.
As its always the case in many undeveloped and 3rd world countries the level of corruption
within internal and external government parties are extremely high. The republic of Uganda too
is of no exception when considering the amounts of corruption and illegal transactions that are
being carried out. Such actions are a part of their day to day life and have gone to the extent of
being regarded as an accepted norm. Many under the desk dealings and transactions are carried
out and tips are extracted by force rather than being a gesture of goodwill. Such ways in
conducting business operations no doubt would be the greatest challenge met by foreign firms
where they will have to adhere to such procedures if they are to succeed as foreign organization.
These foreign firms would need to restructure their corporate culture and business ethics and in
turn would have to adopt some informal methods in carrying out business dealings. Even though
many firms would be reluctant in doing so they should address such a situation as an adaptive
measure which is essential for business success rather than treating it as an illegal or corrupt
business procedure.

Corruption in Uganda does not end from there, nepotism which could regarded as a part of
corruption too exists within Uganda. Nepotism can be described as showing of favoritism toward
relatives and friends, based upon that relationship, rather than on an objective evaluation of
ability, meritocracy or suitability. For instance, offering employment to a relative, despite the
fact that there are others who are better qualified and willing to perform the job, would be
considered nepotism. Such events taking place in Uganda is quite evident and is well justified as
the case study states that Martin hired the niece of a high ranking customs officer to handle
import clearances. Therefore foreign firms too no doubt would have to adopt such measures in
recruiting employees in order to avoid resistance and other unnecessary complications.

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Case Study: Charles Martin in Uganda

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Foreign investors must also understand that Uganda has been through very traumatic times in the
past especially during the reign of Idi Amin. Idi Amin took power in 1971, ruling the country
with the military for the coming decade. Idi Amin's rule cost an estimated 300,000 Ugandans'
lives. He forcibly removed the entrepreneurial Indian minority from Uganda, decimating the
economy. This could be regarded as one main reason as to why the infrastructure development
within Uganda is still at a very low level. The case study states that only 5% of its population has
access to electricity. Such scarcity of resources and the low levels of infrastructure development
within Uganda would hand foreign firms with added challenges in the initial start up stages of its
organizational inception.

On a concluding note many cultural attributes that may affect business operations of a foreign
firm within Uganda have been clearly stated and have been discussed in length in the above
paragraphs. If foreign firms are to succeed and achieve corporate success all of the above
mentioned reasons need to be clearly understood and clearly evaluated so that all possible
outcomes can be dealt with caution. Even though from a foreign investors point of view starting
up business operations in Uganda may seem as a daunting task where alien ground would be
threaded upon, he should also consider the positives such as the amount of potential the republic
of Uganda holds and the many business opportunities it vows to deliver.

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Case Study: Charles Martin in Uganda

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2. WOULD YOU DESCRIBE GREENS AND MARTINS ATTITUDES AS BEING

ETHNOCENTRIC, POLYCENTRIC OR GEOCENTRIC? WHAT FACTORS DO
YOU THINK HAVE INFLUENCED THEIR ATTITUDES?

Ethnocentrism is defined as the tendency to look at the world primarily from the perspective of
one's own culture. Ethnocentrism often entails the belief that one's own race or ethnic group is
the most important and/or that some or all aspects of its culture are superior to those of other
groups. Within this ideology, individuals will judge other groups in relation to their own
particular ethnic group or culture, especially with concern to language, behaviour, customs, and
religion. Therefore when considering such a definition James Green, the vice president of
Hydro Generations attitude and actions mainly comprising of a U.S based culture where a great
emphasis was made on carrying out business operations according to more traditional working
methods and also following more formal and legal procedures was keen on ensuring that
business operations in Uganda too were carried out in the same manner. This would mean that
the HGs U.S based corporate culture and work ethics were adopted in Uganda to ensure that all
business dealings and transactions followed a formal set of guide lines to make sure that illegal
and corrupt business operations were not practiced.

The reason for Green to adopt such an attitude could be due to the fact that Green being a U.S
Citizen ensures the fact that he has a rich U.S cultural background, where fair play and high
ethical values are given great importance. Another reason identified could be the influence
created by the CEO of Hydro Generations Mr Lawrence Lovell, who is known to be a devout
Christians and a person who also has a strong belief in cultivating high Christian values. Such
events no doubt would have made a significant impact in influencing Green to adopt such an
ethnocentric attitude.

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Case Study: Charles Martin in Uganda

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In contrast Charles Martin shares a totally different view point. Martins main objective was to
complete the 1st phase of the dam project in due time. He having had a vast experience in
working in the African continent knew that achieving such targets had to be done in ways which
were at times not formal and at times in contrast to HGs corporate culture, but actions and
norms which were clearly accepted in the Republic of Uganda as well as all over the African
nation. He was well aware of the fact that the only way to get things moving in Uganda so that
efficiency and effectiveness could be achieved was to comply with local rules and regulations
where corruption and under the desk dealings were not only an accepted norm but also carried
out as a routine process.

Charles Martins actions therefore can be described as more of an adaptive measure rather than
an irresponsible or corrupt in terms of HGs corporate culture. He believed that even though he
was representing a foreign country organization he had to comply with local business regulations
so that work was conducted smoothly and unnecessary complications need not be dealt with.
Such an ideology is witnessed in a polycentric mind set where polycentrism means that in a
polycentric organization, the firm believes that business units in different countries should act
very much like local companies so that in many ways local business procedures and
methodologies are practiced.

In terms of choosing whats best for the HG Corporation when carrying out business operations
in foreign countries a Geocentric approached could be deemed as the most suitable. A geocentric
approach would involve a combination of both ethnocentric and polycentric ideologies. Such an
approach would mean that between the extremes of polycentrism and ethnocentrism, negotiated
business practices are carried out which are a hybrid of the host country practices, the
companys accustomed practices, and some entirely new practices. Many believe that this is the
preferred approach to business dealings with another culture because it increases the introduction
of innovations and decreases the likelihood of their failures.

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Case Study: Charles Martin in Uganda

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3. WHO WAS RIGHT, GREEN OR MARTIN, ABOUT THE CONTROVERSIAL

ACTIONS MARTIN TOOK IN THE UGANDAN OPERATIONS? WHAT MIGHT
HAVE BEEN THE RESULT IF HE HAD NOT TAKEN THOSE ACTIONS?
Hydro Generations as clearly mentioned in the case are specialists in constructing power plants.
It has built such plants in over 16 countries and have also maintained ownership in more than
half of them. The Ugandan project was its first in the African continent. This was the main
reason as to why a person of Charles Martins caliber was employed and deployed in the African
country of Uganda. His initial assignment consisted of the below mentioned objectives.
- To make as many local allies as possible in order to prevent adverse publicity that could lead to
demonstrations and costly work stoppages.
- To establish an operating structure and facility in place so that incoming operating managers
would not have to contend with mundane startup activities, such as obtaining licenses, installing
phone lines etc.
When considering the importance of the above reasons they can be easily listed as the foundation
or the initial basic platform which needs to be created by HG in order to construct its power plant
in Uganda and thus achieve its organizational goal and objective.
Charles Martin as we all know has a sound background on the African culture as well as its precolonial history. It is also quite evident that he has acquired a vast knowledge and great amounts
of work experience in the African continent mainly because he was a member of the Peace Corps
that served in Kenya; he also has travelled to other African countries such as Ethiopia and
Tanzania during his stint with the Peace Corps.
Many would agree that in any project or in any organization, the initial stages of inception are
the most tedious and time consuming as well as is of the highest importance. It not only sets the
pattern for future work activities but also has great significance and creates a huge impact in
accomplishing goals and obtaining desired results.

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Case Study: Charles Martin in Uganda

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When addressing the question as to who was right Green or Martin, in reference to the
controversial actions taken by Martin in Uganda one might think that Martin had no choice but to
adhere to such actions, mainly in order to achieve the tasks delegated to him and also to achieve
the overall goal of the HG corporation. Charles Martin who has had a vast experience in dealing
with African countries knew that corruption and much other inefficiency thrived in Uganda. He
was well aware as to how business dealings took place. He knew that Uganda being such a laid
back country, speeding up operations would only mean that he too would have to use informal
and unorthodox methods such as bribing government officials, giving tips and also hiring
employees who have connections with the local government authorities.

Such actions indeed clashed with Greens methods of carrying out business operations. Green in
contrast believed in traditional ways where he followed the book by its rules. He was keen on
doing business in a ethical and in a more legal manner, where formal procedures were followed
and adhered to. Green was more focused on following the HG Corporations work ethics and
culture so that it created a positive image all over its business practices.

To prove as to who is right or wrong many subsequent events would next have to be considered.
For example if martin had not adopted such unethical procedures the whole projects success and
achievability would have been in jeopardy. Many can argue that the project alone would have
been a complete failure or even if it was completed the chances of it exceeding its budgetary
constraints and time consumption would be extremely high. Taking all these points into
consideration and by justifying Martins actions and ideas as organizational gains rather than
personal gains one can agree with Martins working methods.

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Case Study: Charles Martin in Uganda

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Another important point which needs to be highlighted is that Martins actions were all short
term based achievement of goals and objectives, where he mainly concentrated on completing
the Ugandan project alone. As far as Green was concerned he had much more responsibility as
the vice president of the company to ensure that HG continued its business operations over a
long period of time. His focus was mainly based on achieving long term corporate goals rather
than the completion of one project which could be regarded as a short term objective of the
organization. So therefore when considering the above, one could also agree with Greens
growing concern in the actions taken by Martin to succeed in the Ugandan project.

As my personal point of view I would have to disagree with Martin when considering the actions
taken in the case of appeasing of the spirits. Even though the initial action of hiring a specialist in
African religions could be deemed as a justifiable act, the next few steps taken showed
negligence and irresponsibility on the part of Charles Martin. Martin knowing very well that
religious issues within Uganda are highly sensitive should have been more responsible in finding
a swift solution. Not only did he violate many of HGs high ethical values in the process but also
made a mockery of many tribal customs and rituals. The fact that the ceremony had to be
repeated not only brought about added costs to the company but also gave rise to a series of
unpleasant events which could hamper the companys progress in the long term.

So therefore action taken by both Green and Martin are somewhat questionable. The only way to
differentiate the two would be to address the situation in different time constraints namely in the
short run and in the long run. In Martins point of view his assignment was to mainly deal with
short term organizational goals where as Green had a much broader picture resulting in the long
run achievement of organizational goals. In terms of the HG Corporation it could be stated that if
Martin had not carried out such actions the Ugandan project would have not been a success but
at what cost and at what risk is one question HG would have to deal with.

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Case Study: Charles Martin in Uganda

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4. IN HGs NEXT PHASE, THE DAM CONSTRUCTION, SHOULD IT EMPLOY

SOMEONE WHOSE MAIN FUNCTION IS TO BE A LIAISON BETWEEN HGs
CORPORATE CULTURE AND THE CULTURE OF UGANDA? IF SO, SHOULD
MARTIN BE THE PERSON FOR THE JOB?

The assignment taken up by Hydro Generations to construct a power plant in Uganda can be
viewed in different phases. The first and initial phase can be listed as establishing an operating
structure so that future work activities could be carried out smoothly and uninterrupted. The
second phase consists of the construction of the dam. The final phase even though not mentioned
in the case study could be assumed to be as the final construction of the power plant.
Charles Martins initial assignment mainly dealt in the pre constructional phase where his duties
were three pronged.
1. Working with Ugandan government authorities in the capital, Kampala, and with
villagers in the area where the dam was to be built to gain support and necessary
permissions for the construction.
2. Establishing an office and hiring people for that office who would be responsible for
local purchases, clearance of incoming goods through customs, immigration permissions
for foreigners coming in to work on the project, logistics of materials going from the air
port in Kampala to the dam site and keeping records of supplies and expenditures.
3. Helping foreign visitors become accommodated and oriented when visiting Uganda.

According to the above facts and analyzing his performances it could be stated that Charles
Martin was a great success for HGs corporation, mainly because his work was quite satisfactory
and also because he was able to achieve every task on time and within the given budget.

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Case Study: Charles Martin in Uganda

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As far as the HG Corporation was concerned Martin was the man for the job, since he showed
high levels of interest in working in African countries and also his area of study revolving around
the African culture made him the ideal person for the job. HG saw the importance of having
someone with both a home country corporate perspective and knowledge of Uganda, because of
Ugandas economic, political and cultural complexity. Therefore the choice made in recruiting
Martin for the initial phase of the project was a success, but would it be the right choice for the
next phase which would be the construction of the dam? This is one question HG corporation is
going to find extremely difficult to answer.
Even though Martins business operations were a success during the initial stage many actions
taken remained questionable. For instance James Green the vice president of HG showed great
concern in Martins lifestyle in Uganda, some of his business practices and his participation in
tribal rituals as well.
HG also pondered over the option of finding a suitable replacement for Charles Martin. They
knew that Martin was young in age, aged only 29 and was enthusiastic in working in Uganda and
also been deployed for the past one and a half years, thus making him accustomed to the local
way of living, their rules and regulations, their traditional rituals and beliefs and most important
of all their business procedures. Replacing such a person with such expertise and experience
would be no easy task and if they did find a suitable replacement his ability to achieve success
would still remain a question mark.
The only relevant reason HG needs to consider if they are to hire a suitable replacement for
Martinis only based on the complexity of the second phase the construction of the dam. The case
study clearly states that Martin was first assigned for the preconstructional phase of the Ugandan
project. This stage required more management skills such as controlling, organizing and planning
organizational procedures. Martins main area of work was to establish a sound platform in
Uganda, so that future activities would run smoothly.

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When considering the second phase Martins expertise is questionable. The second phase being
the construction of the dam would mean that more expertise involving construction based
knowledge would be required. It would mean that more technically sound professionals such as
engineers would be required in great numbers. Therefore what Martin could offer in terms of
such requirements would be left unanswered. This is one important area in which HG has to
weigh the pros and cons in deciding whether a replacement is required or whether Martin should
be allowed to continue.
If HG does decide to assign Martin for the second phase of the Ugandan project the following
measures should be taken, in order to achieve further success. They should advise Martin on as
to what action needs to be taken when conducting business operations in Uganda. He should be
given a clear understanding regarding the importance of the HGs organizational culture and also
of its long term existence. Therefore HG should advise Martin about taking calculated risks so
that HGs corporate image is not tarnished or exposed to risk. If HG is able to convince Martin to
carry out business procedures in a more ethical manner it has to be stated that Martin is the most
suitable person for the second phase of the Ugandan project as well. His earlier experience in
working in Ugandas cultural background would no doubt assist and play a major role in
achieving HGs overall objective of constructing the power plant in Uganda.

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