Group

03

European Union University Support Agency

A Case Analysis
In partial fulfillment of the course requirement in ORGANIZATIONAL BEHAVIOR

August 22, 2013-Michelle Ang| Joycee Perez| Aira Serrano

EUUSA| Group 3

August 22, 2013

EUUSA| Group 3

I. CASE BACKGROUND European Union The European Union is a partnership between 27 European countries founded after World War. The purpose was that the European countries that trade with each other become economically interdependent to avoid conflict.1 European Union University Support Agency (EUUSA) The European Union University Support Agency provides information about the European Union to universities in non-European countries. They arrange academic events dedicated to EU topics and how they can be used in the local context. EUUSA gives financial support to the visiting faculty members, paying for their travel expenses. Additionally, the EUUSA, serves as a clearing agency that screens graduate students applying for scholarship and travel grants. The EUUSA is present in most Asian countries including Malaysia. The EUUSA at the ranks of the Representative, Assistant representatives and Travel Officer are usually occupied by the expatriates while the other positions are occupied by the locals. Penang (Malaysia) Representative Office Culture The Penang (Malaysia) Representative was headed by a Belgian expatriate named Louis Bossu. Louis Bossu gave importance in maintaining harmonious relationships with the people whom he came in contact with. Prioritizing good relationships made the employees at ease with the working environment but the laid-back leadership made the employees resist changeand became casual with the rules. When Bossu retired, an Irishman John Fahey replaced him. Fahey was originally trained as an accountant and was perceived as a demanding manager. John started to interview the staff one by one and started to notice the different flaws in the organization. He noticed that the departments were using different forms. Furthermore Fahey noticed that the staff was taking long mid morning breaks and would consult him for simple decisions like what food to order in academic gatherings. Fahey is now exhausted in solving trivial problems the organization and would need to address the problems with the process and discipline.

Impact of Organizational Change

1

http://europa.eu/about-eu/basic-information/ 2

August 22, 2013

EUUSA| Group 3

When the leaders of an organization change, the culture of the organization as whole changes. Like anybody going thru change, individuals in the organization would become uncomfortable and resist to the new set up. They will have to learn new things and would not be able to control situations like they were used to.

II. POINT OF VIEW We will take the point of view of John Faley, an Irishman, who replaced Louis as the head of Penang (Malaysia) Representative Office of EUUSA. III. STATEMENT OF THE PROBLEM What should John undertake to improve EUUSA's culture and productivity? IV. STATEMENT OF OBJECTIVES 1. Identify and explain the problems. 2. Explain staff attitudes 3. Determine how to change staff attitudes V. AREAS FOR CONSIDERATION 1. National Culture Malaysia is a multiethnic society, which means that there are different cultures that need to be taken into account in the business context. The most important is indirectness in discussing business. It is customary to engage in small talk before getting down to business. Malaysians will usually want to discuss other things first; family, impressions about the country etc. Usually tea or coffee will be served.2 Malaysian business culture is hierarchical, and people of senior rank should be treated with great respect. Negotiations and decisionmaking are often lengthy, since proposals will be analysed in great detail, and speed or adherence to deadlines are not priorities. Malaysian communication styles are polite and often indirect, with care being taken not cause another person to "lose face", by

http://malaysia.um.dk/en/the-trade-council/malaysia-as-market/business-culture/

August 22, 2013

EUUSA| Group 3

humiliating or embarrassing them. Malaysians try to avoid outright refusals or criticisms in order to maintain harmony. 3 Face can be lost by openly criticizing, insulting, or putting someone on the spot; doing something that brings shame to a group or individual; challenging someone in authority, especially if this is done in public; showing anger at another person; refusing a request; not keeping a promise; or disagreeing with someone publicly. In contrast, face can be saved by remaining calm and courteous; discussing errors or transgressions in private; speaking about problems without attributing blame; using non-verbal communication to say no; and allowing the other person to get out of a tricky situation with their pride intact.4 2. Organizational Cultures Based on how the case describes it, the culture of Penang (Malaysia) Representative Office (office) of EUUSA is laid-back as influenced by Louis easy-going work style. Staff grew casual with their job descriptions and avoided developing new initiatives that challenged their settled routines. Staff were loyal to their local department heads, who made routine decisions. They were used to extended morning breaks since they are not concern with productivity and efficiency. 3. Organizational Factors As inferred from the case, staff decisions are not questioned and even complimented. When there are conflicting decisions/preferences, the office would follow both decisions at its expense like using two forms, two commercial printers, or expensive caterers. Hence, the office provides adequate funding for all staffs desire. There were two staff with the strongest personalities who disliked each other and . When this happened, staff are divided into two camps, usually over unimportant issues. During conflicts, Louis had kept out of the office altogether so sure that the peace would be restored eventually. 4. Personal Psychologies of the individuals Louis Bossu (Belgian), outgoing Head of the Office, is an easy-going and relationship-oriented leader. He chatted with staff about their domestic lives and delegated administrative activities whenever possible. Mohamed Daouad, Senior Librarian, and Abdul Haji Ibrahim, Head of Finance, disliked each other and were were frequently at loggerhead. Burt Johansson, Assistant Representative, and Marie Penaars, Travel Officer, were relatively new because they were posted within last year.
3 4

http://www.expatfocus.com/expatriate-malaysia-business-culture http://www.destination-asia.com/malaysia/about/etiquette/

August 22, 2013

EUUSA| Group 3

5. Headquarters directive Brussels headquarters is enforcing painful budget cutbacks. All Representative offices were expected to prioritize issues of financial accountability and set firm budgetary targets. It is important to maintain essential services, but to reduce unnecessary expenditures. VI. ALTERNATIVE COURSES OF ACTION ACA 1: Continue stricter leadership (Status Quo) Louis is pretty laid back and turns his head the other direction when he see's breakdown's in discipline, he doesn't like confrontation and wants to be popular. John on the other hand is strict, consistent and fair. He will not hesitate to make a correction to anyone; everyone knows and understands his expectations. John is actually developing future leaders for advanced responsibilities while Louis is promoting laziness and extremely poor discipline. 5 Advantages:

Disadvantages:

ACA 2: Revert back to Louis leadership style Advantages: Louis leadership style makes the individuals in the organization comfortable and happy with the organization. The staff will continue to enjoy the social aspects of their job. Disadvantages: The leadership style of Louis makes the people approach their work in a very casual way. They are very comfortable with their environment up to a point wherein any change in the process or management directions makes them feel uncomfortable6
5

http://www.articlesbase.com/leadership-articles/how-to-instill-discipline-as-aleader-1020868.html
6

http://smallbusiness.chron.com/pros-cons-team-leadership-styles62320.html
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EUUSA| Group 3

ACA 3: Empower employees by delegating minor decision making Advantages: Improve productivity and morale Improved quality Disadvantages: Increased risks Slow decision making VII. RECOMMENDATION
National Culture ACA 1 ACA 2 ACA 3 Org Culture Org Factors Individual Personalities HQ Directive TOTAL

5- highest; 1 - lowest With company sustainability in mind, the group chooses ACA2, which addresses the need of Riley to change the mindset of his team to move the company forward. We believe that long term financial success of Avionics needs to have a solid team which is passionate and responsive to the changing industry standards and demands.

August 22, 2013