Cross Cultural Management analysis: American VS British Virgin Island people

1. WEST INDIES
YACHT CLUB
RESORT: WHEN
CULTURE COLLIDE
Gaetano D’Imprima
ID- #35129755-8

2. Agenda
A. Introduction
B. Questions
1. Framework and Problems
2. Managerial behaviour
3. Recommendations
C. Limitations

3. What are we talking about?

4. BVI Tourism Facilities:
Smaller mid-
36 islands 1950-70
scale to upscale
16 inhabited Traveling elite
hotels
Airport problem
1970à Bareboat
charters (much
more affordable)

5. Upscale hotels in the BVI
Little Dix Bay Peter Island Yacht
RESORTS Biras Creek Drakes Anchorage
Resort Club
Rooms 34 12 98 50
1 restaurant, 3 tennis 1 restaurant 1 restaurant
court, private beach Anchorage for Small boats, water- 1 restaurant
Facilities with bar, small charter boats skiing Marina
marina, several miles Hiking trial Snorkelling Beach
of nature trails. 3 sandy beaches Diving
Price (per night) 395%-695$ 400$-600$ 480$-1000$ 395$-525$
Rotate every 2-3 year Managed by
Expatriates 3 year contract Oversaw operations
within the group expatriates
Value for customers Limited activities Water sports Limited activities

6. West Indies Yacht Club Resort
" 1964 Kimball family fall in love with the place.
" place with 5 cottage and a pubà
" Dubois ecology and weirdness
" 1973 after several visits Kimball
" want to buy a small property
" buy the whole property
" Differentiate the resort: Bungalow and sailboats
" 1987 Sandy Point Resort management contract
" Enlarge the resort and its facilities
" 1990 Fully operational water sports oriented
" OCCUPANCY PROBLEMS (-40à60% off peak)
" REWARDS by magazines (CONDE NAST)

7. WIYCR
KSF
" Eco-conscious and comfortable place for travellers
" Try to maintain the natural shape of the resort
" Differentiation
" Watersports, sailining, fishingboats
" Successful marketing strategies
" TARGET FAMILIES
Key Issues WEST INDIES YACHT CLUB RESORT
Rooms 96
" Competition Facilities Marina with all
water sport facilities
" Other resort start having watersport 2 restaurants
Natural trials
Fuel dock
" Labor Cost (regulations) beach
Price (per night) 390$-595$
" Talk later
Value for clients Water Sports

8. Questions
I part Framework and Problems
What are the problems that Johnson and the resort currently face?
Which problems are potentially related to cultural differences?
What local government regulation and policies limit WIYCR
management options?
What theories of motivation might explain why BVI employees seem to be
different than US employees?

9. Problems that Johnson and the resort are currently facing
• 6 expatriates managers had
been hired and quit in just 2
year.
Misundersta • A deeper analysis of the case
nding Expatriate
between local shows that the former managers
managers’
and turnover used to manage areas in which
expatriates
staff.
they have to stay strictly in
contact with local employees.
two categories of employees
use to work in a different
way and where not able to
collaborate. This problem • the number of guests
makes the resort a very hard complaining about the
place where to work for both low level of service,
sides. provided by almost all
the staff operating at
the resort, had
Customer
satisfaction increased drastically
(from 10 per week to
30 per week

10. • Power distance is the level of acceptance by a society of the
unequal distribution of power in institutions àLOW/LOW
• Uncertainty Avoidance is the extent to which people in a society
feel threatened by ambiguous situationà HIGH/LOW
• Masculinity refers to the degree of traditionally masculine value
(assertiveness, materialism and lack of concern for the others)
that prevail in a society. The fundamental issue here is what
motivates people, wanting to be the best (masculine) or liking
what you do (feminine). MASC/MASC
• Individualism is linked to the tendency of people to look after
themselves and their immediate families only and to neglect the
needs of society. COLLEC/INDIV

11. Cultural Differences
NOTE
Power distance (LOW) Power distance (LOW)
• Informal relationship • Similar to the Carribean but in the case
• accessible superiors
• “coaching leaders” Uncertainty Avoidance (LOW)
Uncertainty Avoidance (HIGH) • They want to take risks
• Strong decision taking style
• they don’t want to take risks • Achievements first
• non-decision making” style
• role of regulation Masculinity
Masculinity • Money
• Promotions
• Different elements than money drive their • Career
motivation
Individualism
Collectivism
• Family
• Extended relationships • Individual first
• Group first • Achievement

12. BVI Labor law
Limited number of work No lay-off during slow Restricting firing
permits + Promote local seasons conditions
if possible • Higher Labor cost (not in • Compensation system
• Linked to the high level of term of wages but retention) problems:
illiteracy it leads to the • Rewards
possibility of not-well Firings
educated staff Uncertainty avoidance
people are not truly rewarded according
Less time for expatriates to their performance and they can’t be
VACTIONS fired if they don’t work.
Paid by offshore companies
Local employees, who are uncertainty
avoidance, feel save and they are not
motivated by money or promotion by
themselves. They know that they will
get more money within time, putting
MORE INEFFECTIVE HR the same effort or eventually not
working at all

13. Culture and problems
Conflicts between local
Expatriate turnover Customer satisfaction
and expatriate staff
Management style Employees management
Cultural collision
doesn’t fit with local. and compensation system
Power distance + Individualism vs
Motivation
Indivividualism Collettivism
. They came from the US and The current compensation
system also play an the two different
managed locals in the same way
cultures’ collision
they would have treated Americans. important role because it’s
The way they give orders, the not good to motivate local
feedback they expect to receive and staff
the way they motivate local
employees was a result of their
personal background, especially
linked with the American
individualistic culture. This
management style doesn’t suit the
local.

14. Motivation theory
" Humanistic Theories of Motivations: People have strong cognitive
reasons to perform various actions
Self-
actualization This is illustrated in Abraham Maslow's
hierarchy of needs, which presents different
motivations at different levels.
Esteem
Maslow's hierarchy of needs is the representation
of westerner society so in the case it could be
Belongingnes
s seen as the way the Americans are motivated:
they will reach their climax when they will be
able to fulfil their self-actualization needs,
thanks to promotions, more salary
Safety
Physiological

15. Caribbean Pyramid of Needs
Caribbean people have the same needs, but the
Belongingness
hierarchy seems to be completely different. At
the top of their pyramid, belongingness needs
Self-
are the most important.
actualization
This has a very strong impact on the motivation,
making the resort compensation system as
Esteem ineffective. It has been created for people who
want to satisfy self-actualization needs, so it is
not the right way to motivate people who want
Safety to fulfil other kind of need (friends, family,
group identity).
Physiological The regulations, with the “difficult to fire”
mode, also help the system to be even more
ineffective.

16. Questions
Part II Managerial Behaviour
Several example of managerial behaviour are provided in the case. Which behaviour seems to be
inappropriate regardless of cultural context? Which seem to be ineffective due to the resort cultural
context?
Why is Lucas having such a difficult time with his staff?
BVI employees, especially those in Water Sport Department, don’t seem to be motivated by
tips. Why do you think this is so? What alternative arrangements might be made?
Does the fact that Kimball, Johnson and Fitch work from the United States have any potential
impact on local employees?
Things are not all bad at WIYCR. Who are the expatriate managers who seem to be effective and
why are they effective?

17. WIYCR Managerial Structure
Marketing and
Chicago office President Special promotions
Director
General manager
Operations Level,
Accounting & Property manager
Finance
Rooms Division Food & Beverage Waterfront Engineering
Manager Director director Marina director Department
2 Restaurants and Watersports
Front desk Housekeeping Commissary Director

18. Johnson’s main intervention area
Chicago office Joe Kimball Tom Fitch
US US US
Jim Johnson
USàUS/BVI
Operations Level, Kent Mawhinney
Accounting &
Finance USAàBVI
Kristin Singiser Steve Lucas Nick Smith Engineering
VACANT Department
USAàBVI USAàBVI USAàBVI
2 Restaurants and Enrik Harrigan
Front desk Housekeeping Commissary DominicanàBVI

19. “Real” main intervention area
After reading
Chicago office Joe Kimball Tom Fitch
US US US
the case
Jim Johnson
USàUS/BVI
NO Communication
Operations Level, Kent Mawhinney
Accounting &
Finance USAàBVI
Kristin Singiser Steve Lucas Nick Smith Engineering
VACANT Department
USAàBVI USAàBVI USAàBVI
2 Restaurants and Enrik Harrigan
Front desk Housekeeping Commissary DominicanàBVI

20. Inappropriate and Ineffective managers (I)
Johnson Lucas
• Lives in the US • Individualistic American
• Speaks only with top managers • Not a coaching leader
• Stays in his office • Doesn’t build relationships
• Should be the bridge with Chicago • Complains too much
Harrigan Fitch
• Non-decision maker • Rarely on place
• His subordinates want day by day goal • Cannot understand resorts’ truly capabilities
• He has no supervision and potential.
Kimball Chicago Office
• Old • More communication and integration with the
• President key people in the resort
• Can perform his activity from Chicago

21. Inappropriate and Ineffective managers (II)
Johnson, Lucas, Fitch
Common attributes: Parochial
Most inapproriate behaviour
For local they are outsiders American people Attitude
Worked in hospitality resorts in Narrowly restricted in
the US scope or outlook
Specialists (academic training)

22. Effective Managers
• “Get-his-hands-dirty” Man • Relationship builder
• every day on the field • Never take things for
• Truly interested in all the credit
resort problems • “Bash them over the head
• always accessible with it” philosophy
• Her really problems are
with the HQ
Kristin Singiser,
Kent Mawhinney,
Rooms Division
Property Manager
Manager
Cultural
Approach

23. • Water Sport employees don’t seem to be motivated by tips, they want
something else. By they way it seems that they would like to have some
more money somehow (like when Down show them the tips he gained).
• But individuals do not need just money and rewards, they also need
respect and interaction.
• They want to be friends, not only subordinates. For example they treat
with interest the guests who had offered them drinks.
• The Watersport’s director can start saying thank you everyday if a good job is
done and go drink a beer with his employees after work.
• Teamwork is also important. Employees should work in teams formed of local and
expatriate staff. Instead of tips, team who perform well every day, at the end of
the month will have paid days off, or will gain special holidays during their forced
lay-off period.

24. Unmotivated water-sport’s staff
Not challenging people and
they don’t reward Don’t believe in their
“individual” initiatives capabilities
No TIPS
motivated
They want respect and They want to build a
interaction friendship relationship first

25. Questions
Part III Recommandations
If you were Down, what short term and long-term recommendation would you make to
Johnson?
What measures would you recommend that Johnson take in order to reduce the level
of expatriate turnover?
What measures would you recommend that Johnson take in order to decrease the
occurrence of guest complaints related to unmotivated local employees?
What measures would you take to reduce the growing gap between expatriates and local
employees?

26. Customer satisfaction
Short term
Long Term
Apologies
Discounts, special prices, special Present to everyday activity
offers or prize
GM ‘s everyday meetings, with Room
Division manager
Executives everyday meetings with
staff
“Tutor” for each task group with the
assignment of “call them on their
duty

27. STAFF: Short-term decisions
Staff Executives
BOTH
• Share tips Everyday explaining • Johnsonà
Talk more with the plan (even
Small teams (2/3 • Paid days off at the staff
physically) executive
people) of both end of the month for • Executiveà
locals and
expatriates the team Continuously Staff
Check if everything
• “Special” vacations control plans
implementation
is ok
during their forced
Organize parties lay-off period
• Other daily prizes, Ask instantaneous
feedbacks.
Thank the staff if
the job is well done Especially Lucas and
such as free drinks the watersport
• INTERACTION “Tutor” with the Merge the Marina director
assignment of “call direction and the
the staff on their
duty.
Waterfront direction
for a total of 22
• Control Harrigan
employees). Smith
has to control and
rules Harringan
operation

28. Move to the resort and
live there
Johnson • Bridge with US CLO (Chief
• Cross-cultural management Mawhinney Learning Officer)
course
Chief Learning Office of the Resort:
DO LIKE THE PROPERTY
responsible for formulating
MANAGER JOB
learning strategy and education
initiatives for the local employees.
His tasks can include integrating
and managing training programs
throughout the organization.
Staff Training
Inner “Hospitality School”
Local: Train for intermediate
management positions
Cross-cultural
management course
High experience in the
Caribbean or poor experience
Expatriate: in the US hospitality market
Greater incentives to stay

29. Limitations
BVI’s
culture Worked
mainly
with
Little Motivati Dave expatriates TIPS:
informati on Pickering Down vs
on about system example Dave
Any
relationshi
p built
Values with locals
• When Down did it they thought he was joking and then they were willing to
know how was it possible.
• When Dave did it they didn’t care and maybe considered it as “showing
off”.
• Down was considered part of the group, a friend not only a colleague.
• Dave had any relationship with them.
• The lack of information about how to gain respect in a culture as a leader
could lead to different result from a similar behaviour provided by someone
who is accepted and someone who is not.

30. THANK YOU