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Multinational Management of Wal-Mart in Germany

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It is evidently clear from the discussion that German employees were asked by North American leadership to join in physical exercising during shift meetings, often shouting “ Walmart! Walmart! ” as part of their motivational efforts. In the United States, this was known to give employees a sense of motivation and higher morale. In Germany, it was considered very annoying and not at all motivational. Germans are very restrained socially. They are often cynical and pessimistic. Germans that are oriented this way feel that emotional outbursts are inappropriate and work hard to restrain their impulses.

German workers are used to cultures that are collected only when they are given professional voices with the support of labor unions, work councils, and job training. Therefore German workers saw this activity as being very unprofessional and not appropriate for the business environment which affected productivity and intention to stay with the organization once employed. To better improve organizational culture development in Canada and Germany, Wal-Mart was forced to come up with better HR and management policies that were closer to the cultural and social values of German and Canadian workers.

However, since the company’ s entry into Germany in 1998, the company lost hundreds of millions financially and finally decided to pull out of this country since it could not satisfy employees or consumers sharing the same cultural traits. Expatriate managers and local managers trained in Wal-Mart’ s North American organizational culture system could not get employees motivated or productive using HR and management models that were very effective in the home country. Also, the expatriate manager from the United States sent to guide German business operations made sure that all business activities be done in the English language.

This angered German employees. Germans have a strong sense of national pride both in identity and in the German language. In nearly all situations, Wal-Mart failed terribly at building organizational cultures in these two countries whilst trying to use American-style human resources policies and actions.

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