Read the below case study and answer the following questions (approximately 300 words total). This mini case study demonstrates how cultural differences may affect ones perception of work ethics.

1. If you were an outside consultant, what would you recommend to the Korean managers to resolve, or at least reduce, this conflict? (2.5 marks) Why do you think your recommendation might work? (2.5 marks)
2. How could the Korean managers do to get their Mexican subordinates better motivated to achieve the set goals? (5 marks)

Case Study

Cultural anthropologists describe the Mexican culture as being collectivistic, hierarchical, polychromic, paternalistic, group-centred, security-oriented, somewhat formal, and at times fatalistic. This certainly does not apply to all Mexicans; indeed, it doesnt even recognise that Mexico is a multicultural society with both European, Asian, and native influences. Even so, foreign visitors frequently observe that Mexicans will at times go to great lengths to protect their dignity, uphold their honour, and maintain their good name. The uniqueness of the individual is honoured in Mexico, and people are judged on their individual achievements, demeanor, trustworthiness, and character. Personal respect is a very important element in any relationship. Even a relatively insignificant comment or action can be interpreted in a negative or deprecating manner and can destroy the trust between two people.

Foreign observers also suggest that management in Mexico tends to be autocratic. However, while a manager in Mexico must be respected by his or her subordinates for being tough and decisive, he or she must also be seen as simpatico, or understanding. Managers in Mexico tend to exhibit a strong sense of paternalism, a caring for the personal side of their employees that is often absent and at times even resented north of the border. They must act like a patron and treat their subordinates like an extended family. Along with this, managers must also treat their employees with a strong sense of respect; personal slights frequently bring strong resentment. Mexican workers often need more communication, relationship-building, and reassurance than their counterparts in some Western countries.

Enter Samsung Electronics. Founded in 1938, the Samsung Group is the largest corporate entity in South Korea, with $300 billion in revenues and 315,000 employees worldwide. Best known for it flagship, Samsung Electronics producer of semiconductors, mobile phones, TVs, and LCD panels the groups highly diversified businesses span a wide range of industries, including financial services, information technology services, machinery, shipbuilding, and chemicals. When Lee Kun-Hee succeeded his father as only the second chairman in the companys history, Samsung was the leader in Korea in most of its markets. But its overseas position as a low-cost producer was becoming untenable in the face of intensifying competition from Japanese electronics makers, which were setting up manufacturing plants in various parts of the globe, and rising domestic wages in South Koreas newly liberalising economy.

But Lee spotted an opportunity in the reluctance of Japanese companies to adopt digital technology, which consumers were flocking to in cameras, audio equipment, and other electronic products. This opened the door for Samsung to surpass its rivals if it developed the agility, innovativeness, and creativity to succeed in the new digital market. Samsung moved quickly and decisively and began to increase its market share. A key part of its global strategy was the establishment of overseas plants to manufacture its products inexpensively but with a standard of excellence required for a global technology leader. As part of this strategy, Samsung Electronics established a maquilarora manufacturing plant in Mexico; that is, a plant that operates in a free trade zone (FTZ), where factories import material and equipment on a duty-free and tariff-free basis for assembly, processing, or manufacturing and then export the assembled, processed and/or manufactured products, sometimes back to the raw materials country of origin.

In the Samsung facility, the Mexican assembly workers were supervised by South Korean managers. Value conflicts began almost as soon as the plant opened, and grew more intense over time. The Korean managers tended to believe that Mexicans viewed work not as a sacred duty, as in South Korea, but as a means to an end, or even a necessary evil. In their view, their Mexican subordinates routinely made commitments they had little intention of keeping. They also failed to distinguish between work and play. They played loud music and talked excessively during work, wasting time. The Korean managers were dumbfounded by such a lack of commitment.

Needless to say, the Mexican workers had a different point of view. To many of them, the South Korean managers evaluated all people and work situations using their own Confucian values and standards. The workers often felt that the managers should not use Korean cultural values as a criterion when comparing work ethics between countries. To the Mexicans, their managers established unrealistic goals and then blamed the workers for being lazy when these goals were not achieved. Moreover, although the Korean managers might have been willing to work fifteen hours a day, this was Mexico, not South Korea. Finally, first-line Mexican supervisors in these plants suggested that the reason for poor plant performance had less to do with work ethics and more to do with unwillingness on the part of Korean mangers to allow Mexican participation in the production-planning process. Who is right in this conflict may depend more on where you live than on what you believe.