Norge Electronics Portugal S

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Case Analysis: Norge Electronics (Portugal), S.A.
Organizational Design and Management, Prof. S. McGuire
June, 29th 2014

Problem statement:
Nevertheless Norge Portugal is achieving high sales results, there seems to be disconnect between the type of changes that is enforced by Joao Silva in the organizational climate and his conflicting management style. Joao Silva’s management style was shark which did not correspond to the entrepreneurial culture and the type of change that the organization had to make. This has caused employee dissatisfaction that was evident from a climate survey delivered by external consultant and which showed relatively low employee overall satisfaction results (for 6 out of 10 categories).

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This is inappropriate in the particular cases as neither the national culture was considered (which impacts “team effectiveness, creativity and innovation”.8 (McGuire S. , April 2009) Nor there was no need to have a “win-lose” situation.
There was no communication with employees only with directors regarding job evaluation scores and process. Considering Portugal society power distance dimension (63) reflects hierarchical distance and it is very difficult for employees to provide management with negative information. In this case Silva must be conscious of this difficulty and search for little signals on order to discover real problems and avoid becoming relevant. (Hofstede)9
Dynamic HR management project: staffing and pay-for-performance. VP HR set direction to organization to plan for human capital in upcoming years. Silva’s approach was to assess the job descriptions and to target gaps in responsibilities and plan to mitigate those gaps. Silva hired several new roles based only on his own discretion and job descriptions. Pay-for-performance project was initiated and created by Silva based only on his own discretion and understanding of the business.

Internal climate survey is representing the outcome of all changes implemented by Silva and the results could be considered as very poor. One of the reasons is Silva’s lack of experience
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