Alibaba Group Case Study Solution

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Alibaba Group is a company found in China, and as mentioned above China is one of the countries, which has highest power distance. However, Jack Ma, the founder and the CEO of the company, aims to create a low power distance-working environment and tend to adopt a decentralization strategy (Wolf, 2010). The company’s subsidiaries have developed independent technology teams, that is having no Chief Technology Officer to guide or to handle the operations while other following the decision of the (CTO). This kind of strategy has maximized the flexibility of employees to operate in the organization and can have innovations rather then complying with a decision given by the head of the department. They can cooperate with each other subsidiaries…show more content…
Power-distance contributes in a way employees use to interpret manager–subordinate relations (Mcfarlin, Coget, 2013). Manager can assign work to any subordinates and they will not reject due to the strict manager–subordinate relations, sometimes the workload may shift to a particular group of people, causing inequality. Creativity of employees is also limited. Workers need to obey the rules, the methods and the plan of their manager to complete a task, so they cant apply any creative solutions. In the long run, the rules and inequality will cause a negative emotion to the workers and the unhealthy emotional climate formed in companies. For low power distance, it allows employees to use their creativity. As manager give discretion and freedom to complete a task, employee can work in the most efficient way they believed in and it tends to be much more fair. Employee will voice out and have a stand if they feel there is any inequity. They will not accept any form of inequality easily and seek for…show more content…
For behavior, we concluded that employees in high power distance culture are generally passive and do not involve much in the decision making process. The communication is usually vertically downward, there are not much communication with their employees and they are afraid to voice out their opinion. In low power distance culture, employees generally voice out their opinions directly and the relationship between employees and superiors are rather casual. For performance, we conclude that team participation and employees’ performance is positively related in both high and low power distance culture. As countries with low power distance usually adopt collectivism, team participation will have more significant effect on performance in low power distance culture. For job satisfaction, we conclude that employees in high power distance culture have higher job satisfaction in general, vice versa. It is because employees in high power distance culture can express their point of view more freely. But it is not applicable to China as Chinese employees are used to high power distance culture, their job satisfactions will not be

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