Key Challenges to Cross Cultural Management: O2 Germany Case Study
According to the GLOBE Project (House and Hanges, 2004, p15), leadership is the ability of an individual to influence, motivate and enable others to contribute toward the effectiveness and success …show more content…
The main challenge top management faced was to regain the lost employee trust and confidence. The layoff programme on the new management’s agenda did further damage. The employees were feeling detached from the organization. They assumed that the Spanish CEO’s main role was to trim the company down and that they were not strongly represented within the Telefónica Group, leading to low employee motivation and several experienced personnel opting for the layoff with compensation programme. The network division was skeptical about the capabilities of its CTO, having only previous experience in Argentina, to lead in the German market, where quality and regulatory requirements were more stringent. Every effort from the management to identify synergies between the two companies was met with resistance, as it was seen as a redundancy-identification exercise.