Font Size: a A A

A Study Of Cultural Integration Of Strong Subsidiary And Weak Parent Group Company In China:a Perspective Of Subsidiary Company

Posted on:2012-07-30Degree:DoctorType:Dissertation
Country:ChinaCandidate:J KeFull Text:PDF
GTID:1229330377454854Subject:Ideological and political education
Abstract/Summary:PDF Full Text Request
Nowdays, with the increasing expansion of scale, labor division, as well as the complexity of science, technology, and market, the organizational structure of enterprises in China also tend to be intricate. Especially in recent years, along with the development of business diversification and products personalization, business scope expands ceaselessly and group company has become a common organization mode and plays a more and more important role in modern market economic activities. However, cultural conflict has become a major obstacle in the reform of group company in China. Group cultural conflict stems from the fact that subsidiary companies often emerge ahead of parent companies. And subsidiary companies scatter throughout the whole country, which leads to a "weak emperor, strong vassal" phenomenon. Moreover, the formation and evolution of the organizational mode of group company in China has its own peculiarities, which will be destined to have significant impacts on the cultural integration.Scientific Development View is a guidebook to solve the cultural conflict dilemmas to advance cultural integration in group company. The View provides three principles in cultural integration of group company:harmonious development between enterprise and employees;harmonious development among employees, enterprise leaders and the times;harmonious development between parent company and subsidiary company. The View expands a brand new vision and provides a brand new way of understanding, and points out the direction of the cultural integration of group company. To set up the View to guide and speed up the cultural integration of group company, we must take people as the foremost, stick to the pursuit of comprehensive, coordinated and sustainable development adhere to a comprehensive, coordinated, sustainable development, as well as stick to making unified planning with due consideration for all concerned.The objective of cultural integration in "weak parent strong subsidiary" group company is f to establish a distinct group brand and a overall group image by fully using the existing cultural resources, so that the group culture will serve the group strategy more directly and effectively. The objective aims to achieve an organic butt between the similarities of group culture and the differences of particular subsidiaries, so as to meet the needs of group strategy which is beneficial to the healthy development of the subsidiaries. Parent and subsidiaries cooperate on the base of division of labor in the cultural construction to make the whole group’s enterprise culture management efficient and orderly and maximize the group’s core competency and promote a well-coordinated development between parent and subsidiary through an effective cultural control. Group cultural integration covers the integration of four levels-spiritual culture, institutional culture, behavioral culture and material culture in four levels of integration. Enterprise culture is the formation of spiritual, institutional, behavioral, and material powers. Likewise, cultural control and integration of group company means the integration and balancing of spiritual, institutional, behavioral, and material cultures. Meanwhile, cultural integration of group company actually follows the two-way operation path "culture control--cultural integration-culture building--core competency ", which finally help to achieve the bigger and stronger target.An "absorb plus reverse" type of cultural integration mode should be adopted in view of the "subsidiaries ahead of parents" actual situation of group company in China. Its connotation is to integrate the absorb (injection) and reverse mode, which operate in opposite directions and different paths. Elements of culture are united and cultural control is strengthened in newly found group company basing on the absorption of cultural essences of all subsidiaries. With the advantage of late-development of group company, group culture can then be injected and imposed to form norms in subsidiaries. At the same time, cultural independence and characteristics are allowed to a certain extent to maintain, which facilitate the summarization and refinement of outstanding cultural factors to enrich cultural connotation and extension and form a benign loop. The operating process of this mode can be divided into six stages.Group managers must not underestimate the impact of organizational change and cultural integration of group company on staff. We must attach importance to the predominant role of the staff, especially those ones who work in the subsidiaries. Therefore, we must lay stress on the role identity problems of subsidiary employees. Role identity is not just a mental process of individual, but also an integrated concept connecting the objective structure and subject meaning world. Thus it is a guide to individual action and the foundation of social function. We should help employees restore the connotation of their vocation, increase their professional ability, shape a positive self-image, reshape their role identity, enhance their awareness of subjectivism through in-depth understanding of their daily lives, which facilitates an orderly staff flow between group company and subsidiaries and helps staff melt into the overall strategic pattern of group company. Meanwhile, psychological contract is a most sensitive indicator which reflects the change of employment relationship during the organizational restructuring. Psychological contract refers to the relationship between an employer and its employees. New psychological contract will appear between group company and the employees after the restructuring. Thus, psychological contract breach and renewal emerges. There are many ways to heal the breach cultural caused by cultural integration, in which ideological and political work is undoubtedly the most costless and most effective way.It is difficult for group culture to take roots often because enterprise culture construction is usually considered as a duty of the ministry of culture. At the same time, cultural integration often adopts a top-down process. Employees mostly respond negatively. This happens to a large extent due to unclear responsibilities. A five level managerial hierarchy can be set up during cultural integration. A comprehensive liability system should be established.Scientific evaluation and testing of the effectiveness of cultural integration in a certain period is an essential part to enhance the quality and level of the group company’s corporate culture. Comprehensive evaluation system plays roles in three areas. First, it unifies everyones’understanding of the expected goal, status, and degree of cultural integration from top to down. Second, it facilitates effective management and supervision of the process of cultural integration. Third, it helps find out the traditional cultural characteristics of subsidiaries and correct impractical integration plans. Three criteria can be applied in the determination of success or failure of cultural integration in "strong subsidiaries and weak parent" group company: the effectiveness of cultural integration;the positive impact of the new corporate culture on staff morale in subsidiaries. Therefore, an indicator system is designed for the evaluation.Chengdu Airplane Company is analyzed as a typical case. The history, current status and major problems of CAC enterprise cultural construction are illustrated in detail. Cultural integration is urgently needed after organizational restructuring in order to strength control. The three major problems are sorted, analyzed and cracked, from the perspective of a subsidiary, to realize reverse cultural integration while maintaining and improving their own cultural characteristics.This paper spreads out as follows:problem statement, analysis, solving, and examples of resolution, including theoretical digging, situation assessment, goal setting, mode selection, and system construction. Finally, a comprehensive system research covering three levels is carried out based on the theoretical analysis to achieve the cultural integration and innovation. Strategic change from theory to practice is achieved by the analysis of the culture integration of corporate company in China. Basic theory research, policy research and case study are included in the analysis. This study adheres to the standpoint, viewpoint and method of Marx theory and adopts theory research, case study and comparative study.The contributions of this paper lie in: first, this research departs from the subject theory of ideological and iolitical iducation and focuses on the micro level-employees and groups rather than the institutional and technical factors. Micro level individual actors are the subjects vital to the success of cultural integration. Second, the objectives, contents and methods of cultural integration are analyzed in the four levels. Morever, this paper introduces an "absorb plus reverse" type of cultural integration mode and lists its operation procedure. Third, the paper first explicitly put forward that objective evaluation and feedback is demanded for the cultural integration. Feasible operations are proposed.At the same time, this paper has its limitations due to time, manpower and financial limits. For example, this paper only involves the subsidiary companies inside China without touching upon the ones outside China. And the study of the evaluation index system of cultural integration is not deep enough. Moreover, empirical evidence and quantitative methods are not applied due to limits.
Keywords/Search Tags:Strong subsidiaries and weak parent, group company, culturalintegration, cultural control
PDF Full Text Request
Related items