Culture clashesat mehtainvestmentgroup: acase study kamlesht. mehta,

Culture Clashesat MehtaInvestmentGroup: ACase Study

KamleshT. Mehta, Peace College

ABSTRACT

ThecasestudyisaboutasmallmultinationalfinancialinvestmentfirmlocatedinEnglandwithover$43millioninnetprofit andemploys over500people.Thirteenemployees ofthefirmhavecomplainedaboutthedisplayofa“Swastika”byco-workersintheworkplace.Thecompanyisfacedwiththechallengesassociatedwithdiverseworkforcewithdifferentnationalities,culturalvalues,andreligiousbeliefs,andlegalcomplicationsintheEuropeanUnion.

THECOMPANY

MehtaInvestmentGroup[MIG]Inc.isaglobal,private,for-profit,financialinvestmentcompanyheadquarteredinLondon,Britain.TheownerandtheChairmanofthecompany,CameronMehta,startedthecompanywith$500dollarsasaresultofanargumentwithhisfatherattheageof20.Sinceitsinception,overthepast41years,companyhasgrowninthefinancialsectoroftheEuropeanUnion.Thefirm’scorebusinessisinvestmentonbehalfofitsclients.In2007,thecompanyreported$43millioninnetprofits,hasclientsfromthe20membercountriesoftheEuropeanUnion,andemploysover500employeesinBritain,France,Germany,andSpain.Thecompanyisintherapidgrowthstageandhasprojecteda$50millioninnetprofitin2008.MehtaInvestmentGroupattributesitssuccesstothecorporateculturethatstemsfromtheleadershipstyleandpersonalvaluesofCameronMehta,Chairmanofthecompany.Inaddition,CameronMehtaattributesthesuccessofthecompanytohisdiverseemployees.Thediversework-forceofthecompanyiscomposedofdifferentnationalities,religiousbeliefs,andculturalvalues.Withthegrowthofthecompany,Cameronplanstoincreasehiswork-forcefrom500employeesto700overthenextfour years.

THEEMPLOYEES

Overtheyears,companyhasnothadanyseriouscomplaintfromtheemployees.Thejobsatisfactionamongemployeeshasbeenveryhigh.Thecompanyhasenjoyedasteadygrowtheveryyearforthepast40years.Thegrowthandsuccessofthecompanyisduetodiversityofemployeesatalllevelsoftheorganization,whoarecharacterizedashard-working,dedicated,loyal,family-oriented,andreligious.Thediverseworkforceiscomposedofnumerousreligionsandnationalorigins.Also,thecompanyChairmanandthemajorityoftheemployeessharesimilarvalues,whichhavedriventhegrowthandsuccessofthecompany.  Asaresult,morethan50%oftheemployeeshavebeenwiththecompanyfor15yearsormore.Theemployeeturnoverrateisat6%andwellbelowtheindustryaverageof26%.Thediversework-forcehasstrengthenedcompany’scontactsintheindustryandbroughtinclientsofdifferentnationaloriginsandfromall20membercountriesoftheEuropeanUnion.Table1presentsthebreakdownofemployeesbynationalorigin,location,andreligion.

Table 1: Company-Wide Employees

THEDILEMMA

AllysaLiverpool,theCEOofMehtaInvestmentGroup(aBritishcompany)receivesamemorandumfromPriyaMehta,theVicePresidentofOperations,regardingdissatisfactionamongseveralemployees.ThememorandumaddressesacomplaintfromthirteenemployeesthroughinternalEmployeeFeedbackCard.TheemployeesattheBritainlocationhaveexpressedtheirdissatisfactionandoutrageregardingsomeof theco-workersdisplayinga“RedSwastika”intheiroffices.ThethirteenemployeesfindthedisplayofswastikaoffensiveandacommendationofactsofNazi duringtheWWII.Thethirteenemployees’nationalitiesare—British(9),Indians (1),French(2),andOther(1).Thereligiousfaithsofthethirteenemployeesare:Judaism(6),Christianity(4),Islam(1),andOther(2).

Althoughonly13employeeshavecomplainedaboutthedisplayofa“RedSwastika”,Priyastated“theproblemissevereandifanimmediatesolutionisnotreached,itcouldgetoutofcontrol”.Thepracticeofdisplayinga“RedSwastika”iscommontotheBritishandGermanlocationsandhasbeengoingonforover15years.However,shestressestheseriousnessofthedilemmaandemployeecomplaintsinceoneoftheemployeesmakingthecomplaint,aBritishnationalwithJudaismfaith,ismarriedtothesonoftheownerofamajorlocalnewspaper.Also,sheassessesthesituationtobeacompanywideissueandconnectedtothelawsofGermany,Britain,andtheEuropeanUnion.

Afterafewmonths,theissuewasbecomingamajorconcernasfewmoreemployeesjoinedinsupportofthecomplaint.Intheircomplaints,theemployeeshavedemandedthatthecompanyfiretheemployeesdisplayingthe“RedSwastika”,provideanapology(fromCameronMehta)totheemployeesandtheirfamiliesforallowingsuchaconduct,andpassacompanywidepolicy banningtheuseanddisplayofthe“Swastika”in anyform andinanyplaceinthecompany,immediately.

TheChairman

CameronMehta,theChairmanofMehtaInvestmentGroup[MIG]Inc.,hasalwaysworkedforhim-self.Anentrepreneuratheart,hispassionwastostarthisownbusiness.Hehasneverworkedinmanagementpositionsforanycompanynorhashestartedmorethanonebusinessofhisown.HespenthisentirecareerwithMehtaInvestmentGroup[MIG]Inc.CameronMehta is theprimaryreasonof thesuccess ofthecompany,today.HewasraisedinLondon,is59yearsof age,andhas anMBAdegreefromasmall,privateCollegeinLondon,Britain.HisparentsmetinLondonatanIndianfestivalcalledDiwali.HismotherwasanAnglo-GermanChristianandfatherwasanIndianmigratedfromIndiawithHinduismashisreligiousfaith.Camerongrewuptoappreciateboththecultures and religiousfaiths.Also,thenameCameron Mehtais arepresentationofbothAnglo-GermanandIndiancultures.

DuringhispursuitoftheBachelorofBusinessAdministrationdegree,CameronMehta’sperformanceintheclasseswasbelowaverage(equivalenttotheUSeducationsystematorbelowC).Asaresult,oneday,inanargument,Cameron’parentstoldhimthat“hewillnotbeasuccessfulpersonunlesshehasthedisciplineanddrivetodosomethingwithhislife”.Theyadded,“Itseemstousthatyouarewastingyourlifeawayalthoughwehaveinstilledthebestvaluesoftwoculturesinyou”.Cameronhadatremendousamountofrespectforhisparentsandsawthemashisheroesandrolemodels.Hewantedtomakethemproud.So,hisparent’swordshurthisfeelingsandhetookthemtoheart.Ononeside,toprovehisparentswrong,andontheotherside,nottodisappointthem,Cameron decided to invest$500 dollarsinthe stockmarket.He hadsavedthis moneyfromthe summerodd jobsasnewspaperdelivery boy,busboy,andawaiter.Hehadaspecialinterest inthestockmarketandoftenusedtolookatthestockpricesinthenewspapereveryweektoseehowcompaniesweredoingwiththeirstockprices.Whiledeliveringthenewspapersatage16,hehadconceivedadreamofbecomingamillionairebybuyingandsellingstocksofdifferentcompaniesbythetimehereachedtheageof30.

CameronMehtaattributeshisandMehtaInvestmentGroup’ssuccesstothevalueshereceivedfromhisparents,whichincludediscipline,hard-work,honesty,loyalty,passion,leadership,family,andreligiousfaith.Heliveshislifebythesevaluesonadailybasis.Forexample,healwaysarrivesatworkat7:30a.m.beforeanyemployeeandstartshisdaywithabriefprayerasperthereligiouspracticesinHinduismandChristianity.Accordingto hisphilosophyand leadership style, employeesarepartofhisextended family.Thus,healwayswantstobeinformedofemployees’professionalaswellaspersonalgrowthandsuccess.

TheChiefExecutiveOfficer

AllysaLiverpool,theCEOofMehtaInvestmentGroup.(aBritishcompany),is50yearsofage.Priortojoiningthecompany,AllysawastheVicePresidentofFinance,DirectorofFinancialOperations,InvestmentAnalyst,FinancialPlanner,andInvestmentBrokerwithnumerousmultinationalcompaniesinFrance,Britain,Germany andSpain.Although aChristian,sherespectspeopleofallfaith fortheirbeliefsandpractices. Although,inherpastexperiences,Allysa’sclientsincludedhighpoweredandinfluentialpeople,shedidnothavetheopportunitytoworkwithemployeeswithvariedreligiousandculturalbackgrounds.Someofherclientswereprominentlawyers,doctors,topexecutives,politicians,parliamentmembers,highlevelgovernmentofficials,andontheForbesTop100RichestPeopleintheWorldfromnumerouscountriesintheEuropeanUnion.Althoughsheisnotincontactwiththemonaregularbasis,herrelationshipswithsomeofthemareverygood.Herpastrelationshipswiththeclients help thecompanyestablishagood imageofthecompanyandpublic relationsstandingwiththepublicandmedia.

Afterthereviewofthecomplaintandpertinentinformation,Allysaconcludedthatthesituationandthecomplaintwasnotaseriousconcernanddidnotneedtobeclassifiedasahighpriority.Asaresult,shedecidedtonotbringtheissuetotheattentionofCameronMehta.SheconsideredCameronMehtatobeverysetinhisways,religiousinhisbeliefs,traditionalinhisvalues,andoldfashionedinhisthinking.ShethoughtthatbriningthecomplainttotheattentionofCameronwillonlymakemattersworsesinceheprobablywouldsupportthereligiouspracticesandfamilyvaluesofhismajorityemployees.SheisconfidentthatshecouldtackletheproblemwithoutgettingCameroninvolvedinthesituation.

VicePresidentofOperations:

PriyaMehta hasaDoctorateinHuman ResourcesManagementfromaprominentIvyLeague UniversityintheUSA.SheisraisedinUSandBritainandis35yearsofage.AtMehtaInvestmentGroup[MIG]Inc.,shehasbeenthe VicePresidentofOperationsforthepast5 years.Priortojoiningthecompany,hercumulativeexperiencesof4yearsincludeDirectorofOperationsandAssistantDirectorofPublicRelationswithprominentcompaniesinUSandBritain. SheisthedaughteroftheChairmanofthecompany. Asherfather,shesharesthevaluesinstilledinherfromherparents.Sheiswellrespectedintheindustryandbytheemployeesathercompanyandmaintainsoutstandingrelations withtheemployeesandhisfather.She regardsher father, Cameron Mehta,ashermentor, rolemodel, and hero, however, oftenhasdisagreedwithher fatheronkeyissuesinthe bestinterestofthe company.SheregardsAllysaLiverpool,theCEOofMehtaInvestmentGroup[MIG],Inc.,tobelessconcernedabouttheemployeesandmorefocusedonthebottomline,i.e.,profitinmonetaryterms.DuetoPriya’sexpertiseinhumanresourcesandunderstandingofthelegalandregulatoryimplicationsrelatedtolaborissues,sheoftenfindsherselfopposingAllysaLiverpoolonmattersrelatedtohumanresourcesatthecompany.

RESEARCHINGTHECOMPLAINT

Inherresearchofthecomplaint,PriyaMehtalearnedthefollowingattheCompanylevel(inclusiveofsubsidiariesatalllocations):

Itwastruethatsomeemployeesweredisplayinga“RedSwastika”thatwasmentionedinthecomplaint.Noone inthecompany wasdisplayingthe“Nazi Swastika”.  IntheHinduism,Buddhism, andJainismreligions,the“RedSwastika”isusedduringmarriageceremonies,religiousprayers,housewarmingparties,grandopeningceremoniesofanewbusiness,NewYearcelebrations,inhomes andtemples,andpaintedon theforeheadofa babyonher/hisfirsthair-cuttingsacrament.Itisviewedasagoodluckcharm.Hindusregard“TheSwastika”inmuchthesamewayasChristiansviewtheCross.

NaziGermanscopiedtheoriginal“swastika”fromHinduismandwithaslightmodification,useditforNazipropaganda.TheHinduswastika facestotheright,unliketheoneadoptedbytheNaziswhichfaces totheleft.Also,theHinduswastikaistraditionallyred,acolorregardedasauspiciousbyHindus,whereastheNaziSwastikaisblack.

Theemployeesdisplayingthe“RedSwastika”wereofdifferentnationality,Angloaswellasnon-AnglowiththereligiousfaithofHinduism.

Thetotalnumberofemployeesdisplayingthe“RedSwastika”was60%ofthetotalcompanywork-force.Table2presentsthecompany-widebreakdownbynationalorigin,location,andreligion,ofthoseemployees(60%ofcompanywork-force)displayingthe“Redswastika”.

Priya MehtanotedthatwhenPrinceHarry waspicturedwearing the“Nazi Swastika”,thepeople askedforan apology,which herendered.However,duetothelack of sufficienttimeshedidnotincludespecificinformationpertainingtothelawsoftheEuropeanUnionrelatedtotheemployeecomplaints,butadvisedAllysaLiverpooltoreviewEUlawspriortomakinganydecision.

Table 2: Company-Wide EmployeesDisplayingthe“RedSwastika”

PositionofEmployeeswithHinduismFaith

The“Red Swastika”display waspartof theritualinabrief prayer accordingtoHinduismreligion andwassymbolicallydrawninredcoloronthephotoofoneoftheGoddesscalledLakshmi—knownastheGoddessofMoney.Employees of Hinduismfaith believeinstarting everydaywith asymbolic ritualandaprayerthatwas oneminutelong.InHinduismthegeneralbeliefisthatdrawinga“Red Swastika”bringsspiritual,mental, andfinancialsuccessand prosperityfor the dayineverythingtheydo, includingbringingnewclientsto thefirm.Itisregardedasthesecondmostsacredsymbolafterthe“Om”andisusedtowardevilspiritanddevotiontoGod.Hinduismistheoldestdocumentedreligionintheworldandthepracticeofdrawingthe“RedSwastika”datesbackto5000years.TheHinduemployeesstatedthattheHinduismreligion,itsritualsandpractices,andthesymbolicuseofswastikahadbeenaroundbeforetheexistenceofwesterncountries,Nazipropaganda,andAdolfHitler.

Accordingtothepeopleof Hinduism,Buddhism, andJainismfaith, thecompanycannotbantheirreligioussymbols,whichhavebeenpartoftheirbeliefs,culture,andreligioustraditionswellbeforetheWesterncultureandcountrieswereborn.TheyremindedPriyaMehtathattheytooarethecitizensofEuropeandhavetherighttopracticetheirreligion.Inaddition,itistheirbeliefthatovertheyears,companyhasbenefitedfromtheirprayers.Theyraisedinterestingquestionsforthecompanyexecutives:Ifthecompanydecidestobanone,willitbanallothersimilarsymbolssuchastheOminHinduism,CrossorJesusFishinChristianity,TheStarofDavidinJudaism,CTR-Choose the RightinMormon,andthe Crescentand Starin Islam?  Wherewillthecompanydrawthelineonwhatisacceptableandwhatisnot?Willthecompanybanthewaycertainemployeesdress?ShouldthecompanybanthedisplayofCrossjustbecausetheKuKluxKlanusedtoburnit?Shouldthecompanybanthedisplayofa“Swastika”justbecausetheNaziuseditforirreprehensiblepurposes?

PositionofEmployeeswithJudaismFaith

A“Swastika”usedbyNaziGermanshasbeenasymbolofatrocitytowardsJewishpeople,inparticular,andtheworld,ingeneral.Adisplayofsuchasymbolisoffensive,insulting,andacommendationofactsofNaziduringthe WWII.Suchamessagefromthe companywillnotbe tolerated.Allnationsandgovernmentsaround theworldhavecondemnedtheactsofNaziGermansandtherepresentationofthe“NaziSwastika”.Also,inordertolearnfromtheHistoryassociatedwiththe“Swastika”companymusttakeproactiveactionsonthisissueandeliminateitsdisplayanduseinitsentiretyfromthework-place.

PositionofEmployeeswithChristianandMuslimFaiths

Employeeswith Christian andMuslim faithdid notprovideanyexplanation forsuchadisplaynordidtheytakeapositioninfavororagainstthedisplayofthe“RedSwastika”bycoworkers.Although,thethirteenemployees that havebrought the complaintforward suspectthat the Christianand Muslim employees are displayingthe“redswastika”toalignthemselveswiththeChairmanandmajorityofHinduemployeesofthecompany.

PositionofEmployeesofEuropeanOrigin

ThenationalismandregionalismisontheriseinEuropeanUnion.Asaresult,severallegislationshavebeenintroducedintheEuropeanUnionParliamenttolegallybantheuseanddisplayofthefollowinginboththepublic andprivateplaces inthe EuropeanCountries:(1)“TheSwastika”,and(2)all religioussymbols.Inaddition,legislationshavebeenintroducedintheBritishParliamenttolegallybantheuseanddisplayof“TheSwastika”inboththepublicand privateplacesinBritain.Theresultsofthevoteonallofthelegislationsarepending.TheymayormaynotgetpassedthroughtheParliament.AccordingtothelawsofGermany,itisillegaltouseordisplaythe“NaziSwastika” anywhereinGermany.In France,it isillegalfor anyonetowearahijab(ascarfcoveringtheheadorface)inpublicplaces.TheFrenchlawdirectlyaffectedthereligiousbeliefsandpracticesofthepeopleofIslam.

PriyaMehtaattachedallofthedetailedresearchinformationassociatedwiththecomplainttohermemorandumforthereviewofAllysaLiverpool,CEOofMehtaInvestmentGroup[MIG],Inc.

Note:                   Toconcealtheidentityandtoprotecttheindividualsandinterestsofthefirm,thenamesofthecompanyandemployeeswerechangedandthestatisticalinformationprovidedbythefirmwasproportionatelymodifiedinthiscasestudy.

Student Instructions:

Prepare a case study addressing the following elements:

1.      Describe the cultural differences, views, values, and organizational culture of Mehta Investment Group (MIG).

2.      Discuss how these cultural differences impact the business practices and employee relations for MIG.