However, majority of organizations have been confronting issues in this regard due to a number of reasons and factors (Landis & Bhagat, pp. 23-29). For this reason, this paper is an attempt to identify some of such issues while carrying out analysis of two different scenarios that will enable a comprehensive understanding of intercultural issues in the organizational management.
Briefly, in the first scenario, an organization tried to introduce and implement a performance reward system in Ecuador after its successful outcomes in Netherlands for the past two years. The company sends one of their HR consultants to Ecuador to arrange briefings of the new system to the employees working there, as the system earlier enabled the organization to achieve five percent increment in productivity, as well as enhancement of employees’ morale. However, few things go wrong in Ecuador, and the HR consultant had to take flight back home without implementation of the new performance reward system. Brief analysis has facilitated the researcher to acknowledge existence of cultural dimension of Geert Hofstede (pp. 24-39) in this scenario due to issue of cultural differences in this scenario of international business. One of the major problems of this scenario was ‘Low PD’ status of the Ecuador Company, whereas, Sandra was considering it a High PD company that caused problems.
Although on a factual basis, the system might sound very promising, however, analysis of the scenario has indicated that some problems on both sides did not allow the organization to achieve the same results of Netherlands in Ecuador. The foremost factor seems lack of awareness about the two cultures that became the biggest barrier in this process. In the past, HR managers were responsible for enhancing motivation level of employees to achieve the productivity target through bonus and reward programs (Ferraro, pp. 56-61); however,