Group- 3

Aditya Das, Ishani Das, Rajneesh Gupta- IIT Delhi

Case Study- John Higgins

Summary
Yamazaki pharmaceutical is one of a major producer of drugs and chemicals in Japan and Weaver is one
of the largest U.S drug firms. Theyve come together and with efforts from both parent companies, the
subsidiary soon started doing well.
Leonard Prescott, vice president and general manager of Weaver Pharmaceutical was concerned that his
executive assistant; John Higgins had noticeable change in attitude. Higgins had apparently Gone
Native, resulting in leniency in administrative role.
Higgins had become a typical Japanese executive, always spending time listening to subordinates who
face personal problems. He also objected to new personnel policy installed by Prescott, that involved a
move away from basing promotions on seniority and toward basing them on superiors evaluations of
subordinates. Change in attitude cost more to the company.
Prescott believes that there are dynamic changes occurring in traditional Japanese customs and culture
and people are not as rigid as Higgins had become. Many of the Japanese subordinates are more willing
to try out new ideas.
Higgins had been an effective and efficient manager with a lot of knowledge, and on numerous
occasions, Prescotts friends envied him. However, Prescott believed that Higgins would be far more
effective if he took a more emotionally detached attitude professionally.
The best international executive is someone who has a strong belief in the principle of home point of
view and understanding of foreign attitudes. Plus, he also thinks that Higgins should not have strong
emotional attachment to Japanese culture.

Questions
1. Polycentric- Higgins was a person with polycentric approach. He identified very well with the Japanese
culture.
All his actions were in alignment and as how the Japanese would do. He wanted to take every person
along and involve every employee. His decisions were driven emotionally because of his connect with
the Japanese and their culture. Higgins objected to the change in the personnel policy from seniority
based to performance based.

Group- 3
Aditya Das, Ishani Das, Rajneesh Gupta- IIT Delhi
Ethnocentric- Prescott was someone who believed that US culture was the best and their approach was
perfect.
Prescotts attitude was absolutely different in implementing the US personnel policies in the Japanese
operations. He believes that slightly detached and professional behavior has to be maintained and
wanted to instill the US Personnel Policy of performance based evaluation and not based on seniority.
Moreover, it reflects that he wanted to establish individualism in the organization rather than
collectivism. He values things like leadership, skills, competencies, etc. For this, he had dismissed a
manager who lacked initiative, leadership and general competency.

2. The difference in attitude emerges from the fact that Prescott is an international businessman whereas
Higgins is a young person emotionally attached to Japan. Prescott had spent most of his career time in
several countries like India, Philippines and Mexico. Higgins had joined the army, learned the Japanese
language and worked as an interpreter and translator in Tokyo, fell in love with Japan, married a
Japanese woman, moved to a strictly Japanese neighborhood.
Both Prescott and Higgins do not follow similar behavioral practices;
Higgins had-High regard and respect for seniority,
- Value system engraved
- Loyalty
- Love for Culture
Prescott maintains a high Power Distance in the working environment and does not prefer employees
discussing their personal issues while at work. He also does not appreciate a decentralized approach in
decision making with employees giving suggestions about redesigning the management policies. Higgins
due to his emotional attachment with Japan is very low on Power Distance at work. According to him,
the most important thing is to maintain his relationship with the employees. Higgins once objected to
the dismissal of a manager who lacked initiative, leadership and general competency. Prescott followed
the Performance based evaluation and promotion policy. Whereas Higgins and his subordinates totally
oppose this practice and they think that it is not fair and it creates an immense pressure on the job
security.

Group- 3
Aditya Das, Ishani Das, Rajneesh Gupta- IIT Delhi
Moreover, they are also different in their risk taking behavior. Prescott was more open to ideas and risks
and encouraged dynamism contrary to Higgins approach.

3. Solutionsa) Prescott being the senior should measure and analyze whether Higgins behavior actually
affected work in terms of productivity, profitability, organizational effectiveness, morale and
other measurable variables.
b) Improve communication between John Higgins and Leonard Prescott- they should talk out
things and chalk out methodologies and processes appropriate for the organizations growth
while balancing US-Japan Cultures(Training and Awareness Building).
c)

Improve Cultural Awareness within the organization for Higgins and Prescott and other
employees to understand each culture.