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Case Analysis-American Factory

Student's Name

Institution

Course

Professor

Date
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About the Case

Located in an abandoned General Motors plant in Ohio, Fuyao Glass America (FGA), a

Chinese-owned automobile glass manufacturing factory that employed over 2000 locals, is the

subject of the American Factory case study. The property was upgraded and purchased by

Chinese billionaire Cao Dewang, who also hired seasoned Chinese managers and laborers to

instruct American workers in glass production. Together, the two parties invested millions of

dollars to transfer Fuyao's operating model. It signified a positive turnabout in the industrial

collapse of the United States. However, as the behind-the-scenes American Factory documentary

made clear, major conflicts emerged when American employees, used to independence,

collective bargaining power, and safety standards, were forced to work under Fuyao's strict

corporate culture, which was rooted in Chinese norms around hierarchy, discipline, workload

expectations, and relationships.

Workplace conflicts involving wage disparities that favor foreign Chinese employees,

health risks from high-pressure targets, misinterpretations of behaviors or systems between

cultures, and a growing desire to form a union to fight alleged mistreatment are all signs of

tension. Thus, while the firm negotiates integrating two sharply different cultures, the example

offers a complicated struggle at the confluence of national identities, industrial relations power,

and ethical labor standards. FGA's continuous battle to successfully bring Chinese globalized

capitalism and Midwestern blue-collar reality involves striking a balance between productivity

goals and sustainable jobs against deeply rooted attitudes across languages, mindsets, and

organizations. There are a lot on the line for everyone.

Principle characters in case

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 Cao Dewang- The proprietor of Fuyao Glass, the parent firm, is a Chinese millionaire.

Investing in and founding Fuyao Glass America (FGA) in Ohio was his decision.

 Cho Tak Wong-Cao’s appointed chairman to lead FGA and supervise its activities in the

US

 Steven Bognar and Julia Reichert- Filmmakers granted permission to record the founding

and activities of FGA, including the conflicts between cultures. The documentary

American Factory was made using their footage.

 American Workers- Over two thousand American locals were employed at FGA's

production, taking over from the shuttered General Motors operation. Many don't have

any prior glassmaking experience.

 Chinese Management and Workers- Imported to oversee manufacturing and provide

training for American laborers from Fuyao, China. They confront cultural hurdles despite

having years of experience in the glass sector.

Issues of concern as a Chinese management

Cultural conflict

Workplace harmony depends on integrating Chinese and American cultures, but this is

difficult because of the drastically different perspectives on authority, punctuality, directness,

work-life balance, and other topics (Chan, 2020). If I were in charge of Chinese management, I

would be worried about conflicts that could arise from enforcing China's strict factory culture

without taking into account local customs. The clash of cultures' national, racial, and industrial

dimensions present difficulties for management procedures and employee relations (Mayer &

Louw, 2012). The two cultural dimensions differ, and FGA's management strategies accentuate

this. Research demonstrates that cross-cultural seminars, multilingual materials, democratic

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leadership philosophies, and social gatherings can enhance cross-cultural understanding and

foster unity among heterogeneous workforces through localized training ("11.11 case study:

American factory", 2023).

Unionization

I'm concerned that Fuyao Glass America's high-pressure Chinese management style may

encourage American employees to embrace unionization ("Race and Culture in American

Factory," 2020). Unions pose a danger to management authority and have the power to use

collective bargaining to demand things like paid time off, lower hours, and greater compensation

(Hayter et al., 2011). On the other hand, implementing proper safety training and offering

workers a say in some choices may lessen support for unions (Chan, 2020). Chinese employees

need to be aware of US labour regulations regarding the right to union formation and how the

unions work for the benefit of the members.

Health and Safety

I would be concerned about Fuyao Glass America maintaining this reputation while

investing in a US factory because of the lax safety regulations and unfavorable working

conditions that have given rise to ethical concerns at Chinese companies ("Race and Culture in

American Factory", 2020). Improving attitudes and adhering to American occupational health

rules could be achieved by providing protective equipment, cutting overtime, implementing

frequent breaks, and prioritizing worker wellbeing. Production goals could, nevertheless, be

more important in real life.

Issues of concern as an American staff

Cultural Adaptation
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It is difficult for us American professionals who value freedom and work-life balance to

adjust to Fuyao's Chinese-centric business culture (Wang, 2021). We battle with demands for

strict discipline, hierarchical leadership styles, and timetables that prioritize equipment uptime

over individual needs. Language hurdles and disparate expectations on timeliness, candor,

hierarchy, and teamwork worry me. The clash of cultures' national, racial, and industrial

dimensions presents difficulties for management procedures and employee relations (Van den

Steen, 2010). The two cultural sizes clearly differ, and FGA's management strategies accentuate

this. In addition to providing two-way mentorships and locally relevant training materials, FGA

ought to promote cross-cultural dialogue (Cha, 2022). It's important to impart technical

information while honoring our experience.

Wage Discrepancies

At Fuyao, there was uproar when it was discovered that imported Chinese employees

were paid significantly more than American workers (Wang, 2021). I'm concerned that this large

salary disparity that is based more on nationality than credentials will continue and have a

detrimental effect on motivation. Unresolved disparities also risk provoking criticism for

receiving preferential treatment from outside. To restore trust in the work relationship, FGA must

conduct local market research on fair compensation rates and make adjustments in line with

transparency on positions and parity rules.

Job Security

Despite claims that the city will be revitalized, the concern is about the long-term job safety of

the American industrial workers in Fuyao as automation grows in the manufacturing sector

("Race and Culture," 2020). Tomorrow's cost-cutting machines might replace the recently trained

employees. When adding new technology, FGA should offer transition support, severance
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payments, retention guarantees, and skill retraining. Uncertainty is reduced via clear

communication.

Issues of concern as a Chinese staff

Loneliness and Isolation

We experience a great deal of loneliness and isolation as Chinese workers are sent abroad

to work at Fuyao Glass America since we are cut off from our families and social networks back

home for an extended period (Chan, 2020). The emotional toll of homesickness, communication

difficulties, a lack of social contacts, and continuous work pressure while away from home

would worry me. To lessen this transitioning challenge, FGA should offer counseling services,

language classes, workforce bonding activities, and frequent trips back to China.

Increased Workload

Although Chinese workers are accustomed to working long hours at factories, we at the

new American factory need to acclimate to even higher production quotas and stricter deadlines

(Cha, 2022). I worry that working too much overtime, swiftly adapting machinery, teaching local

employees, and feeling pressure from Fuyao management to fulfill targets will cause us to burn

out. Nonetheless, we wish to participate and have important technical expertise. Management

might hire more people, exercise empathy, and implement guidelines for a manageable

workload.

Ethical Dilemma

Despite US regulations, I feel confused about adhering to Fuyao's strict, productivity-

focused practices that put profits ahead of worker welfare (Wang, 2021). We must balance

corporate goals and moral considerations like safety, diversity, work-life balance, and democratic

leadership because of America's unionization culture and litigation risks. Chinese employees
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must decide whether to speak out against unethical behavior or stick with the company. Speaking

up advances justice but puts us at risk of losing our careers.

Other important information for the case analysis

According to Tompkins' (2002) cross-cultural management frameworks, the racial and

national cultural divide between Chinese executives and American blue-collar workers causes

communication difficulties and leadership disputes at Fuyao Glass America. Beyond these

identity divisions, though, we also need to look at the power struggle that underlies industrial

relations and arises when capitalist production models and lifestyles are contested (Chan, 2020).

FGA stands for the nexus of Midwestern trade union traditions fighting job losses and declining

wages and working conditions in manufacturing, and Chinese multinational corporations

prioritizing efficiency and shareholder returns through stretch targets, discipline, and technology

(Wang, 2021). The movie shows how these systemic tensions resulting from North America's

deindustrialization appear through racial stereotyping on both sides, exacerbating perceived

threats to their respective interests due to cultural misattributions (Farrell, 2022). A more

sophisticated diagnosis is made possible by knowledge of the governance and socioeconomic

context.

Thesis statement in the case analysis

The Fuyao Glass America case illustrates a complex conflict between the American

workers' conflicting expectations for independence, work-life balance, and collective bargaining

power in their employment relationship and the Chinese executives' authoritarian and

productivity-focused managerial culture imported into the Ohio factory. Fundamentally, the

opposing parties have different cultural presumptions and ideals regarding communication,

hierarchy, teamwork, and other topics. These differences show up in disputes at work that
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impede productivity and cooperation. According to Opp (2014), these micro-level individual

misconceptions result from macro-level forces: the collision between American organized labour

and Fuyao's shareholder capitalism. Understanding the complex social, ethical, and economic

backdrop impacting the management-staff conflicts is essential for finding long-term, effective

solutions (Tien et al., 2020). It keeps the problems from being oversimplified to be only about

racial or national disparities instead of being related to the larger institutional power systems that

China and the USA are engaged in. Therefore, the analysis looks into the clash of management

styles and cultural norms at Fuyao Glass America is a complicated problem influenced by social,

ethical, and economic considerations, with serious repercussions for productivity and long-term

success.

Fishbone diagram on the analysis on critical outcomes

Leadership and Wage disparities Ethical

management management
practices

Grouping by relations culture Ethical

Compatibility,
dilemmas
Not Race

National Job security Low American

Critical outcome
racial concerns Worker Compensation
differences
Employee
Resistance Job security Dissatisfaction Cultural Integration
concerns
Health and Safety
Issues
Employment Loneliness
Unionization
Workplace Racial
differences
industrial

Automation Family
Separation
Challenges
Workforce (Chinese Cultural
Organization Workers) Difference
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Research Evidence

 11.11 case study: American factory – Human resources management – 3rd edition. (2023,

May 3). Open Library Publishing Platform – Pressbooks for Ontario's Postsecondary

Educators. https://ecampusontario.pressbooks.pub/humanresourcesmgmt/chapter/11-11-

case-study-american-factory/

 Race and Culture in American Factory: A Case Study" (2020). Stander Symposium

Projects. 2036. https://ecommons.udayton.edu/stander_posters/2036

 Chan, A. (2020, May 14). American factory: Clash of cultures or a clash of labour and

capital? Made in China Journal. https://madeinchinajournal.com/2019/12/22/american-

factory-clash-of-cultures-or-a-clash-of-labour-and-capital/

Pros to the FGA management

Staff relationships can be enhanced by implementing cultural sensitivity and inclusivity

initiatives, such as multilingual publications, seminars on appreciating diverse origins, two-way

mentorship programs, and social gatherings (Tsai 2011). It lessens the likelihood of

confrontations between Chinese and American workers stemming from misconceptions about

nationality or misinterpreted actions. Encouraging diversity and inclusivity also conforms to US

labor regulations.

The uproar over alleged preferential treatment by foreigners will subside if market

research on appropriate regional salaries eliminates the salary difference between locally

employed American workers and imported Chinese staff. Standardized pay rates improve

company morale, openness, and trust. All these ensures that the work environment is improved,

leading to increased output from the workers.

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Employee well-being is demonstrated by allocating funds for safety training, ergonomic

equipment, monitoring systems, protective gear, mental health services, and regular breaks or job

rotations. This moral position shields other Chinese factories with dubious working conditions

from criticism and appeals to American values that prioritize workers' rights over corporate

profits. The workers in deprived conditions can, therefore, source jobs from companies that

champion their rights and offer a better working environment for both local and foreign workers.

Cons to the FGA management

Chinese employees who are used to rigid, long hours, and top-down leadership styles

would be reluctant to give up established norms in favor of America's freedom, adaptability, and

reasonable expectations, as I suggest. It could reduce their productivity gains from running

comparable Chinese operations in the past. Overcoming intransigence demands a clear

explanation of US laws, which sometimes may not be followed by the Chinese counterparts.

It would be difficult for Chinese workers, accustomed to rigorous work schedules, long

hours, and hierarchical leadership styles, to abandon established standards in favor of America's

flexibility, freedom, and acceptable expectations, as I propose. The productivity gains they have

experienced operating similar Chinese operations in the past might be diminished by this. A

thorough justification of US law must overcome intransigence.

Up front, it costs a lot of money to improve industrial conditions through equipment

upgrades, improved monitoring, less overtime, counseling services, and other labor support

initiatives. Despite short-term earnings drops, I have to persuade management that such ethical

improvements are essential for risk reduction and market reputation over the long run. It is

helpful to quantify the goodwill garnered.

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Reference

11.11 case study: American factory – Human resources management – 3rd edition. (2023, May

3). Open Library Publishing Platform – Pressbooks for Ontario's Postsecondary

Educators. https://ecampusontario.pressbooks.pub/humanresourcesmgmt/chapter/11-11-

case-study-american-factory/

Cha, Y. (2022). When Chinese Capital Goes Global: Understanding the Landscapes, Struggles

and Livelihoods. Springer Nature. https://doi.org/10.1007/978-981-16-6983-0

Chan, A. (2020, May 14). American factory: Clash of cultures or a clash of labour and capital?

Made in China Journal. https://madeinchinajournal.com/2019/12/22/american-factory-

clash-of-cultures-or-a-clash-of-labour-and-capital/

Farrell, C. H. (2022). Hard lines: affect and aging in post-industrial place (Doctoral dissertation).

http://dx.doi.org/10.26153/tsw/41687

Hayter, S., Fashoyin, T., & Kochan, T. A. (2011). Review essay: Collective bargaining for the

21st century. Journal of Industrial Relations, 53(2), 225-247.

https://doi.org/10.1177/0022185610397144

Mayer, C. H., & Louw, L. (2012). Managing cross-cultural conflict in organizations.

International Journal of Cross Cultural Management, 12(1), 3-8.

https://doi.org/10.1177/1470595811413104

Opp, K. D. (2014). Modeling micro-macro relationships: Problems and solutions. In Micro-

Macro Links and Microfoundations in Sociology (pp. 209-234). Routledge.

https://www.taylorfrancis.com/chapters/edit/10.4324/9781315871936-8/modeling-micro-

macro-relationships-karl-dieter-opp
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Race and Culture in American Factory: A Case Study" (2020). Stander Symposium Projects.

2036. https://ecommons.udayton.edu/stander_posters/2036

Tien, N. H., Anh, D. B. H., & Ngoc, N. M. (2020). Corporate financial performance due to

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