Identity Conflicts between BETA Group and Ba Co
Identity 3: Co-evolving similar characters and exploring distinctive characters When the group headquarters attempted to pour new elements (shared values
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As we mentioned before, in identity 2, informal contact gave Ba Co. an
opportunity to make a comparison of production-related practices between both sides, to learn from the group headquarters, and to further change its attitude towards BETA Group. Clearly, informal contact breeds attitudinal change. Such attitudinal
change further initiated a series of shifts in the combination of connections via partner selection. First, departing from a prior way of choosing partners, Ba Co. cut off links with original partners such as Alpha Group to abandon outdated images but, meanwhile, built the links with BETA Group affiliates to explore new and possible self-definitions. The choice pushed Ba Co. to step forward on the way of changing thoughts and practices which gradually conformed to those of BETA Group. Second, Ba Co. established extensive relations with sister affiliates. On the one hand, it won other affiliates gratitude and affection. On the other hand, it pushed other affiliates to rethink what this newcomer represents. Third, Ba Co. built more formal and diversified connections with the group headquarters. On the one hand, staffs had more opportunities to interact with or learn from individuals coming from varied functional areas or mills in the group headquarters. On the other hand, the group headquarters progressively and imperceptibly instilled shared values or common characteristics in Ba Co.
Identity 3: Co-evolving similar characters and exploring distinctive characters
When the group headquarters attempted to pour new elements (shared values and common characteristics) into Ba Co.’s identities, Ba Co. experienced a suffering period. For example, in the past, there were few rules for Ba Co.’s staffs to follow.Under the circumstances, the purchasing department grasped great power because all purchases should route through it and few rules could regulate it. One consultant from the group headquarters recalled:
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general superintendent [of this mill] to telephone the crane company. He said: “Wait a moment. I needed to call the purchasing manager first to gain his permission.” … I was very surprised [that] a general superintendent (a higher position in the hierarchy) should report to a purchasing manager (a lower position in this hierarchy). It never happened in BETA Co.On the contrary, in BETA Group, individuals were expected to adhere strictly to the rules. A statement from one manager illustrated the differences between two groups:
[In the past,] the purchasing department [in Ba Co.] always bought something different from what I suggested; they (staffs in purchasing department) bought it because it was cheaper. [However,] I got annoyed when I used it….I ever told them my feelings when I got something which was against my expectations. They replied:” You never used it before. How do you know [that] it must be a troublesome item?” … In BETA Group, [under the purchasing regulations,] although I needed to fill out a form on-line, purchasing department mostly adopted my suggestions and bought what I desired.
Through social interaction, technicians and managers in Ba Co. had the opportunity to know BETA Group’s practices and thoughts, to make a comparison, and to realize that they needed to make some changes. One executive who tried to reform the
purchasing system told us:
Previously, when we bought an unsuitable machine, no one had to take the responsibility. As for us (people in production division), purchasing department did not follow our suggestions so it was not our fault. As for them (staffs in purchasing department), they never worked in the mill so they did not know it was an unsuitable machine….In BETA Co., there was a very clear policy. [First,] each mill had the authority to outsource some work to some cooperative providers directly. Second, if they (people in the mill) would like to buy something which they could design and domestic manufacturers could follow the composition to produce it. W6 (the central maintenance shop) would deliver the draft to appropriate manufacturers. Third, if they would like to buy something such as a gear wheel which should be bought from foreign companies, the purchasing division would do it….[Obviously,]
we also needed a clear rule [to terminate this chaos]. I attempted to propose changes to the purchasing system in management meetings… The initial reaction of the purchasing manager was
“This company does not need the purchasing department any more. The purchasing department can be cancelled now!”
To start with, Ba Co. contracted with some BETA Co.’s cooperative providers.
According to the contract, Ba Co. could follow the example of BETA Co.; namely,
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each mill had the power to place outsourcing orders directly, rather than routing through the purchasing division. At the same time, to avoid encountering stiff resistance from purchasing department, production executives invited purchasing managers to involve in the provider selection process. After a period of negotiation, Ba Co. finally achieved the goal of setting up a purchasing rule. This story showed how social interaction pushed Ba Co. to make a comparison, to rethink whether its beliefs or practices were outmoded, and to move toward an example, BETA Co.
Table 3.4 lists identity shifts which revealed the similarity between two parties’
identities was mounting.
Apparently, social interaction pushed Ba Co. to change its beliefs, behaviors, and self-definitions. As one manager stated:
In the past, our employees wore uniforms in a very casual way. One side of a shirt was under the pants but the other side of a shirt was pulled out. Meanwhile, they just rolled up a sleeve. The uniform was very dirty. When you saw the way they were dressed, you had a tendency to lose your temper. They looked like poor labors. …Nowadays, they would watch the way they were dressed spontaneously. When they got off duty, they would dress neatly before they rode motorcycles.
On the other hand, outsiders also changed their attitudes towards Ba Co. at the same time. For instance, in 2005, bankers agreed to cancel the basic credit line to show their attitudinal changes and trust. Since 2004, Ba Co. has allowed professors to conduct annual customer satisfaction survey. Table 3.6 lists seven major parts of the survey, including sales, prices, product quality, customer services, the channel of communication, the punctuality of delivery, and the quality of transportation. The survey clearly revealed that Ba Co. had undergone an amazing metamorphosis.
Those qualitative changes helped Ba Co. to win BETA Group’s recognition and willingness to build stronger and multiple relations with it. As one vice president of Ba Co. noted:” BETA Co.[, which refused to accept Ba Co. as a group member at the time of acquisition,] asked us to help it roll sheets (one of BETA Co.’s major
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Trustworthy - Interview: “In 2005 I made a loss of more than 5 billion dollars because I
made a mistake in forecasting the movement of international market price. I [executed a contract; in accordance with this contract I had to]
pay an extremely high price for a batch of raw materials.”
Aggressiveness - Archival: To corroborate informants’ accounts, the data (covering the
period 2001-2007) concerning proposals for improvement, which were submitted by employees, was collected from all three mills and the technology department. Table 3.5 displayed that employees were more active in finding problems and proposing some possible solutions.
They no longer sit passively to wait for commands from their superiors.
Institutionalization - Archival: I calculated the total number of regulations in each year. Ba Co.
established 0 rules in 2001, 2 rules in 2002, 5 rules in 2003, 5 rules in 2004, 4 rules in 2005, 11 rules in 2006, and 6 rules in 2007. Those regulations include different functional areas. Apparently, Ba Co.
instituted a number of changes and was gradually close to BETA Group’s behavior in this dimension.
Respect for people - Interview: “I have a practice of having all the staff members together on Lunar New Year’s Day to express their greetings. This year, in this occasion, a representative of employees told us [that] she was very happy because her salary was higher than her husband’s salary and she could enjoy a better welfare. So, in her family, she is the master now.
Her husband has to do all housework now.”
Archival: I also collected the data (which spans 3 years, 2005-2007) concerning the amount of welfare funds to show this change, which is displayed in Figure 3.3.
Flexibility Interview: “I always take a long time to do evaluations. …In this year, our superiors add “speed” into our company’s objectives.”
Archival (Economic Daily News, 2007): “BETA Co. expresses that they have an intention to adjust sales cycle from a quarter to a month in order to respond to environmental contingencies quickly…”
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