Problem on research using the hofstede model of culture


Problem: Hannah is an expatriate manager working for the mining company AngloGold Ashanti headquartered in Johannesburg, South Africa. She has just been assigned to work in Peru in a natural gas joint venture. Hannah does some research using the Hofstede model of culture and learn that Peru is high in Power Distance and Uncertainty Avoidance. She learned about empowerment in her MBA program, and read the research that empowerment has been shown to increase employee satisfaction and engagement. So, she decides to empower her Peruvian employees to make their own decisions. After about a month, she finds out that no decisions are being made at all and employees are avoiding her. Morale is low, and no one seems to care about Hannah's goals. What went wrong? What should she do now?

 

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