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The Co-Determination Case Study

Attached is the case study, need help with the following questions:
1. What are the fundamental problems that are causing the distrust between the American and German managements?
2. What led the German management to begin to accept Mr. Smith?
3. Why didn't the German CEO simply order the workers to comply? Why did he feel he had to secure the agreement of the works-council head?
4. What is the importance of the workers voting down the proposal unanimously?
5. What is this thing called the "works council" and why is it so important that management doesn't move without their approval?
6. What is the point of this case?
7. What is your take-away learning from this case?

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Step 1
The fundamental problems that are causing the distrust between the American and German management is ethnocentric leadership. The German management feels that the headquarters treat them as inferior. The German workers also felt that they are being treated as the lowest type of workers. In addition, the American headquarters and the CEO felt that the authoritarian type of leadership was appropriate for imposing the will of the headquarters on the German subsidiary.

Step 2
Smith attended the worker's council meetings for an open and frank discussion about any conflicts and difficulties the workers saw in the relationship with the headquarters. Smith participated in several workers' council meetings. His participation in these meetings and a genuine concern for the problems of workers led to his acceptance by the German Management. He clarified that he was not a watch dog for the headquarters ...

Solution Summary

This solution explains the conflict between American and German management. The sources used are also included in the solution.