Aideen Turley, Deborah Mireles, Ramoji Alla, Oisín Molloy, Niall Burke.

Mexican Experiences from a Danish Firm: “Changing” Mexican Culture

Novo NordiskCultural disparity Employee

Recruitment and HR Policy

Employee Engagement

Change process and Recommendations

OVERVIEW

Novo Nordisk Global company and world leader in diabetes care. 75 countries, 41,450 employees and products

marketed in 180 countries. Set up a commercialisation and distribution site in

Mexico. HRM policies and cultural barriers

Novo Nordisk Way of Management

Triple Bottom Line

Novo Nordisk Way of Management

What makes up the DNA of the company.

The 10 essentials

NNWoM is not culturally specific to ensure ease of implementation.

Triple Bottom Line

Decisions based on three questions 1. How do we benefit people? --- 2. How to minimise our impact on

the environment? 3. How can we balance these concerns

against economic costs or gains? Transparency leads to market trust.

Cultural disparity

Source: House et al, 2004

In-Group Collectivism

Individualistic nation Individuals view

themselves as independent of the group

Tend to be more group-orientated when it comes to decision making

Collectivistic nationLoyalty and pride in

organisations and familiesBenevolent paternalistic

leadership styleAvoid confrontations and

conflicts

Denmark Mexico

Power Distance

Do not give importance to rank and status

Equal respect for everybody

Flat organisations

Highly hierarchical society

Mexican people value status

Titles are very important

Denmark Mexico

Uncertainty-avoidance

High level Preference to rely on formalized procedures and policiesExcellent welfare state

Medium level Great deal of uncertainty on Mexican economic environmentPreference for bureaucratic procedures to minimize unpredictability in the process

Denmark Mexico

Employee Recruitment and HR Policy of Novo Nordisk Mexico

McKinsey 7S Framework model

Source: http://www.strategicmanagementinsight.com

StaffChallenges SolutionsRecruitment ChannelsSkilled ExecutivesCultural Behaviours Corporate Competition

Word of mouthRewarding System &

Trust and HonestyOpen Organization and No

discriminationEmployee Benefits and

Retention

SkillsChallenges Solutions Training and

Development Change in way of

thinkingBalanced Scorecard

ApproachLearning CultureNo Double

Standards

Employee Engagement

‘Workplace approach designed to ensure that employees are committed & motivated to contribute to organisational

success and at the same time enhance their sense of wellbeing’ (Federman, 2009)

Appraisal SystemPower Distance

Balance Scorecard (Kaplan & Norton, 1990)

Reward SystemTrust Hierarchy

Non-Monetary Benefits

Mexican Experiences from a Danish firm: ‘Changing’

Mexican Culture

Change StrategiesTheory E

Maximise Shareholder value Top down

Theory O

Develop Organisational Capability

Participation

Combined Theory of E and O

Embrace the paradox between Economic value and organisational capability

Direct from the top engage people from below

Hard and soft

‘ The Novo Way of Management is a

system that combines modern value based management with traditional control’

Kurt Lewin’s 3 step Model for Organisational Change

Unfreezing

Changing

Refreezing

Recommendations

ReferencesBeer, Michael, and Nitin Nohria. "Cracking

the code of change." If you read nothing else on change, read thesebest-selling articles. (2000): 15.

Burnes, Bernard. "Kurt Lewin and the planned approach to change: a re‐appraisal." Journal of Management studies 41.6 (2004): 977-1002.

Federman, B. Employee Engagement: A Roadmap for Creating Profits (2009)