Hydro Generation Case Study

This report analyzes two major problems faced by Hydro Generation in their dam project in Uganda: recruitment difficulties and the prevalence of nepotism. The report examines the cultural differences between the company's hierarchical structure and Uganda's clan-based culture, highlighting the challenges of finding qualified and culturally-sensitive employees. It also explores the ethical and practical implications of nepotism, emphasizing the potential risks to the company's reputation and operations. Recommendations are provided to address these issues, focusing on communication, negotiation, and ethical business practices.

Our names are xxx, xxxx, xxxx and xxxx and together we will identify and analyse two major
problems that Hydro Generation is experiencing for their dam project in Uganda.
One of the critical issues that James Green, the vice president of HG, is facing relates to
recruitment problems. He is unsure whether to appoint Charles Martin for the final stage of
the project or to look for someone else to finish the work in Uganda. Based on Cameron and
Quinn’s Competing Values Framework (2011), Hydro Generation’s organisational culture is
defined by Hierarchy structure, while Uganda is distinguished by the Clan structure.
Therefore, to replace Martin, Green needs to find someone familiar with Uganda’s and HG’s
organisational culture as well as professional training, this representing a task not easy to
execute in limited time.
Organisational Structure reflects the hierarchical relationship within an organisation. Hickson
and Pugh (1995) study uncovered that as organisations grow in size there is considerable
pressure for them to become more bureaucratic. From the Organisational Structure view,
Hydro Generation’s recruitment issues are impacted by the high level of knowledge of the
subject necessary as well as Martin’s desire to accommodate the Ugandan structure.
Although, the initial project was set up with a flat structure, local employees had pointed out
that it seemed no one was in charge. As a result, the turnover rate of local employees was
rising, and Hydro Generation struggled to deal with the locals. Although, Green has been
restricted to follow the hierarchical structure, Martin realized the recruitment implications
and focused more on integrating the locals in the process to avoid slowing the project.
-------------HELGA------- Regarding recruitment problem: Motivation and HRM
-----------DACIANA----- Regarding recruitment problem: Ethics or Diversity
Hydro generation is facing one of the major problem in creation of their dam which is
related to recruitment. The case study presents that firm is having an unorganised
organisation structure. Major reason behind this can be related to recruitment. Industry is
facing keen problem related to hiring of employees which is becuase of ethics and diversity.
Diversity in culture has given rise to ethical issues that has reduced the effeciency of
employees. Recruiting workers of diversed culture has laid an impact on the operational
working of Hydro generation. They are unable to understand the values, beliefs and thoughts

followed by different workers. This is one of the major reason behind making an organisation
structure ineffective and unorganised.
Hydro generation was unable to take care of the needs and demands of local people.
The employee turnover of local was quiet. It was because no one was in the charge of looking
behind the aspects related to their wants. Company was failing in recognizing the ethics and
culture followed by local people (Johnson & Cullen (2017). To make their project related to
dam successful, firm must engaged in cutting out the religious gap. They must address the
issues faced by local workers in their organisation. It can help them in retaining effecient
employees and will also create loyalty toward the industry. Hydro generation process of
recruitment was unsuccessful as recruiters does not know how to deal woth cultural issues
faced by local people. They lack knowledge and understanding related to ethics and diversity.
In order to retain local employees Hydro generation must be engaged in doing keen
analysis at the time of recruitment. This process fails because of the employer unable to
understand the diverse cultural aspects of local people. Fir example there can occur time
when workers cultural belief clash with the company diverse policies (Mullins, (2013). If
Hydro generation wants to have a diverse workforce that is cultural in nature than they must
be involved in recruiting a diverse pool of candiate. Industry is following an organisation
structure that is hieracrchial nature. While, Ugand follows clan of culture. It can be one of the
major reason behind organisation structure becoming ineffective or unorganised.
Hydro generation to retain local employees and reduce the attrition rate needs to have
a proper understanding of the culture and ethics followed by workers living in Uganda. Also,
they need to implement Ugandan structure in their organisation. Firm should have a
responsibility that their should be someone who has the charge related to performance of
local workers. This can help them in retaining and acquiring local employees. Also, it will
assist Hydro generation in completion of their dam project. In order to create employee
loyalty company must be engaged in making appropriate hiring decisions. The recruitment
judgements that are following diversity way can create issues in an organisation.
Hydro generation needs to make a change in their business practices. They must
engaged in having proper understanding and knowledge about the cultural, values and beliefs
followed by local people of Uganda. This can increase the employee retention rate in firm.
Also, it can assist them in making the organisation structure effective and responsibility will
be created in the mind of employer. In order to retain local workers firm needs to make sure

that they are not engaged in harming the sentiments of employees. This can create chaos in
working environment of industry. Also, it can lead to reduce in workers efficiency.
Productivity can be decreased because of them. Hiring manager of hydro generation should
be engaged in recruiting employee that is correct for the specific job. They must hire right
person to right job.
Recruitment problem can occur in every organisation. To resolve issues related to
ethics and diversity during the process of hiring, Hydro generation should be engaged in have
keen analysis and evaluation of cultural aspects of local workers of Uganda. Martin can
engaged in effective communication with these people and ask them about what is bothering
them (Karin Andreassi et.al. (2014). Firm needs to analyse the spiritual and cultural needs of
workers during the time of recruitment. This can also enhance the process of recruitment.
Hydro generation with effective interaction may build a relationship with local employees
that can allow them to be in firm. It can increase the operational efficiency of organisation.
By following cultural practices and ethical beliefs, industry should also be engaged in solving
and not creating discrimination on basis of gender. All women and men working in Hydro
generation must be given equal rights and opportunities. Company should tend to encourage
the culture of each employees working with them.
Nepotism being perceived as the norm for Uganda, represents another problem that Hydro
Generation has been confronted with.
Nepotism is defined as favor granted to relatives in various fields. Since its declaration of
independence in 1962, Uganda as a country has become subject to nepotism. From
Hofstede’s National Culture point of view The Power Distance Index measures the degree to
which society points out the hierarchy and is perhaps the most crucial one for Ugandans.
Regardless of colonialism or circumstances, Ugandans have strong faith in the hierarchy and
political leaders are perceived as the definitive power. As a result, people are turning to the
President unreservedly, uncovering that E.T. Hall’s low territoriality dimension is spread
across its national culture. On the other hand, Trompenaars cultural dimension, Individualism
measures the way in which one defines himself against collectivism. Based on this, the
individualism scale between United States and Uganda is separated by a considerable
difference. From cultural roots, the Ugandans are perceived as collective people, and this in
itself is good, however, there is a loss of value in individualism.

Leadership is defined by Mullins (2013) as a relationship through which one person
influences behavior or actions of other people. In Uganda, nepotism has become the norm
and is directly related to the Autonomous leadership style adopted by the government. This
represents a high contrast compare to USA based Hydro Generation’s Authority-Compliance
Management style. Martin understood that nepotism was a predominant factor across Uganda
and perceived it as an opportunity that can benefit the project without realizing the risks that
it represents. Green, however understood the risks that nepotism practices subjected the
company to.
Business ethics are associated with moral considerations of good and bad actions and
outcomes. James Green recognized the negative influence that nepotism exhibits. Although in
Uganda is morally acceptable as well as legal to favor relatives Green worried that such
business dealings can be perceived as unethical in a US organisation and could lead to
damaging the image of Hydro Generation. In addition, given the political instability of
Uganda, Green feared that connections created through nepotism in high places could easily
turn into disadvantage if they fail to maintain the political power.
xxxx- Communication and Negotiation for Nepotism (recommendations)!!!!
Most important assest of an organization is an employee. Companies good
management ensures that all of them are treated fairly and with dignity. However, because of
some barriers this situation is avoided and one of the barrier is nepotism. Nepotism is
basically an unprofessional act that includes favoritism of some relative, friends or family
member in working of business. It leads to many disadvantages for an organization such as
partiality towards other employees, also lowers morals of the employee. It is a norm that has
been followed in Uganda. Also, there are allegations that the government of the region is also
corrupt. It has hampered the work effeciency of Hydro generation. For overcoming this issue
it is recommended that firm must get involved in doing negotiation for nepotism. As this can
create a discriminated environment in the working of an organisation. It is basically hiring
one's close member in the company whether the employee is effecient of working at that
position or not. Government is forcing to Hydro generation to appoint under qualified
members. It has made the structure of organisation ineffective and also unorganised.
It is recommended for the company to engage in communication with the government
to reduce the culture of favouritism in an organisation. Hydro generation is asked to make
sure that government of Uganda understands that nepotism creates and unhealthy working

environment in company. It can reduce the effeciency and working of the organisation. If
someone is given responsibility and title without their earning then they will never
understand what s needed for success also they will never understand the duties they are
given and its importance. This will reduce the efficiency of the company, Uganda
government need to understand that this be a disadvantage not only for the company but also
for the government. When a relative is promoted unfairly through nepotism realizes that he is
not resppected same way as others. Once all the other employees of the company realize that
perticular person is promoted on the basis of blood relation they take out all their anger on
that person. Uganda government need to understand that this will push their government
more backword.
For completion of any task in an organization knowledge and bonding between the
employees is very importand also there are no issues between the employees and because of
nepotism issues can be created between the employees which can be a issue in faliure of a
particular project (Mach & Baruch (2015). Because of this cooperation approach will not be
achieved as all the employees will be failing in woring together in an organization. As a
result working environment will not be for all the other employees will not be comfortable as
they all will be dissatisfied with the new employee. It will also affect the reputation of the
company in many ways such as: they will not get the desired results as some employees are
not capable for their job or mouth to mouth spread of negative publicity of the company and
if the tasks are not done properly it can lead to loss for the company.
It can also lead to unwanted comments to friends, customers, family or colleagues
which will not be in favour of companies operations and its image. Employees with lower
morals will have low commitment to the business operations, they will feel that the company
doesn't appreciate their work and contribution they make (Thomas & Peterson,(2017).
Because of all these rules of the governmentit Nepotism will make it difficult for their
citizens to find job in some other way, educational structure wil get disturbed, socio-cultural
structure will get disturbed also at last political structure will also get disturbed. Nepotism is
not that bad until and unless company stop tolerating incompetence otherwise it is harmpul
and all these will result to less loyalty of employees towards company. If a company start
firing an incompetent relative Nepotism is not harmful. So, therefore if Uganda government
does not want to eleminate nepotism then atleast the least they can do is make some rules for
all the employees and the company so that it works in favour of the company, employees as
well as the governement. Such as if the employee does not deliver results or doesnot work

according to the company and complete their tasks then they will be fired or if they are
delivering the results to the company then company cannot fire them or in every few months
test should be taken to check the efficiency of the company to check that weather that
employee is suitable dor the company or not.

References
Hickson, D. J. & Pugh, D. S. (1995) Management Worldwide: The Impact of Societal Culture
on Organizations around the globe. London: Penguin Books.
Mullins, L. J. (2013) Management and Organisational Behaviour. (10th ed.). Harlow: FT
Prentice Hall.
Thomas, D. C., & Peterson, M. F. (2017). Cross-cultural management: Essential concepts.
Sage Publications.
Mach, M., & Baruch, Y. (2015). Team performance in cross cultural project teams: The
moderated mediation role of consensus, heterogeneity, faultlines and trust. Cross Cultural
Management.22(3). 464-486.
Karin Andreassi, J., Lawter, L., Brockerhoff, M. and J. Rutigliano, P., (2014). Cultural
impact of human resource practices on job satisfaction: A global study across 48
countries. Cross cultural management.21(1).pp.55-77.
Johnson, J. L., & Cullen, J. B. (2017). Trust in cross‐cultural relationships. The Blackwell
Handbook of Cross‐Cultural Management. 335-360.