Situational Analysis:

AccountBack is an accounting software company that believes in a flat organizational

structure. The key reason for their success was their strong client relationships
combined with a superior product. The new CEO envisioned the company’s growth
by altering the company’s organizational structure which involved promoting young
sales directors. Wendy Peterson was one of the promoted employees.

Wendy Peterson’s Ivy League education led her to believe that working in close knit
groups with a common objective was the most effective way to achieve
organizational goals. Due to prevalent business practices in the west, she was more
inclined to have a hands-on approach with her sales staff and expected daily
progress updates from them. Her adherence to established team models and
working styles led to her professional success but was also known to cause friction
with workplace veterans. To drive sales growth and increase AccountBack’s client
base Wendy decided to target the Chinese entrepreneurs in Plano who were a close-
knit community. Her knowledge of the access and legitimacy paradigm led her to
believe that hiring someone who has had prior experience of working with the
Chinese would assist her in meeting the ambitious sales commitment she had made.

Fred Wu’s Chinese upbringing and his subsequent interactions with the Chinese
community outside of work in Plano made him an ideal candidate for the execution
of Wendy’s strategy. Since he had experience as an entrepreneur in the Dallas area,
he was familiar with many Chinese executives and was expected to leverage the
same at AccountBack. Although he received college education in the US, his
entrepreneurial endeavors made him operate in a traditional Chinese style of
working. Consequently, this led to a mismatch between Wendy and Wu’s working
styles but the potential benefits if his appointment outweighed the cultural
differences.

After a smooth start which involved Wu helping his colleagues, he started to spend
most of his time developing business relationships. This decreased his involvement
in office gatherings and activities. Wu was reluctant to involve his AccountBack
colleagues in the business dealings with his Chinese contemporaries. When Peterson
suggested that she or someone else in the office accompany him to his meetings, he
quickly dismissed the idea. Wu would not argue or question Peterson’s logic, he
would simply avoid confrontation and just assure her all was well. This standoff led
to a communication barrier that gave rise to hostile circumstances.
 Problem
The unwillingness to adapt to a working style different from one’s own.

Options
1. Arrange cultural sensitivity training
2. Accept Wu’s demands
3. Find Wendy’s replacement
4. Terminate Wu’s employment
Criteria for evaluation
1. Achieving organizational objectives
2. Meeting sales targets
3. Impact on other employees
4. Fulfillment of individual goals
Evaluation of options
1. By arranging a cultural sensitivity training for all employees including Wendy and
Wu, the organization would be enabling its employees to be better equipped in
dealing and working with people from different cultures. This would result in the
organization meeting its long-term objective of building sustainable business
through strong client relationships. This would also result in the AccountBack sales
team meeting and potentially exceeding their sales targets. By understanding and
respecting each other’s differences, the employees would develop a flexible style of
working which would enhance their capabilities. This in turn would significantly
increase the chances of fulfilling the individual goals of every employee who is
currently working with AccountBack.

2. If Wendy accepts Wu’s demand of an assistant it may undermine Wendy’s authority

as the head of the sales department and might provoke other employees to put
forward their demands. Such contrasting work environment will be detrimental to
the organizations long term objectives. However, the company may still end up
achieving its sales targets as an assistant will increase Wu’s productivity and
posturing in from of his Chinese counterparts. The other employees of the sales
team might imitate Wu’s working style in order to achieve their targets. By doing so
they may end up fulfilling individual goals at the cost of the organization’s larger
objective.
3. Since this is the second time Wendy has been unable to form a lasting working
relationship with an employee who did not align with her style of leadership, the
management can consider replacing Wendy. However, this option will go against the
new CEO’s vision of driving the company’s growth with young vice-presidents in the
front seat. This will also jolt the sales department’s growth and their deliverance of
the targets in time with Wendy spearheading the team. As a result, a culture of
 mistrust and fear will creep into the employees which will be counterproductive to
their individual goals.
4. Terminating Wu’s employment with AccountBack would be a radical step given the
circumstances and is not needed at this point of time. By sacking Wu, the company
will be alienating anyone with a slightly different working style. This will also have a
negative impact on the company’s sales targets since there is a possibility of losing
on Wu’s Chinese clients. This would have similar implications of firing Wendy where
the working environment of the office would change for the worse.
Recommendation:
AccountBack should arrange a cultural sensitivity training for all of its employees.
Action Plan
1. The company should convey the importance of conducting a cultural sensitivity
training to all it’s employees. If needed, they should arrange a monitored session for
Wendy and Wu where they can express their reservations freely and come to a
mutual understanding.
2. The company should ensure that they involve employees from different cultures into
making bigger organizational decisions and not just use them to penetrate specific
markets
3. With a culturally sensitive employee base, the company should focus on hiring a
more diverse workforce to meet their long-term objectives.