APPLY YOUR UNDERSTANDING: HOMEWORK CHAPTER 4OPENING CASE: GE Medical’s Sick Patient in FranceThis case discusses the acquisition of Companie Generale de Radiologie (CGR) byGeneral Electric (GE) focusing on the culture clash between the “profit-hungry culture ofGE” and the “state-run, non-competitive history and culture of CGR.” There are severalexcellent examples of how managers who do not pay attention to existing organizationaland national culture can both face and cause tremendous difficulties. This case presentsan ideal opportunity to revisit many of the concepts presented in Chapter Two concerningwhy change efforts frequently fail.Suggested Questions:1. In your opinion, what was the most fundamental, important mistake made by GEfollowing the acquisition of CGR?2. Were the GE managers wrong to expect higher performance of the CGR staff? Whyor why not?3. What could GE have done differently?4. Think back to the discussion of duality in Chapter One. Did GE think globally andact locally?1. The stronger an organizational culture, the greater the impact it can have onbehavior; however, the stronger the culture, the more difficult it is to change.Unfortunately, the environment changes, and values that fit the environment todaymay be inappropriate tomorrow. What can an organization do to keep the positiveaspects of a strong culture and still reduce the risk of becoming extinct by notchanging its culture fast enough to accommodate environmental shifts?2. All organizations have cultures. What are the key cultural aspects of your school?What links are there between key assumptions and values and visible artifacts such as clothing, behaviors, or ritual? Compare your school’s culture with that ofother schools. How do they differ? How are they the same?3. If you look forward to working with individuals from a variety of culturalbackgrounds, or perhaps even working in foreign countries, what can you do tobetter prepare yourself for those future opportunities?4. What are the key work values you want in an organization you work for? List atleast five. How can you assess the extent to which potential employers have thesedesired values?Closing Case: Changing the Culture at General SemiconductorThe closing case discusses the culture change initiate by Ronald Ostertag when he tookover as CEO of General Semiconductor. It takes the students through the steps in theprocess. Ostertag first determined the need to change the culture from one of competitionand acrimony to a more team based cooperative culture. He recruited a top managementteam that shared his values. They worked to codify the values. The HR department puttogether training and socialization programs that reiterated the importance of thecompany values. Ostertag, while visiting subsidiaries, made a point of reinforcing theimportance of the company values whenever possible.In addition to detailing the process of culture change, this closing case also provides anopportunity to revisit Chapter 2. The situation can be analyzed using Lewin’s changeframework. Ostertag saw the need for change, convinced others of that need (led them tosee), implemented the change, and lastly reinforced it. The reinforcement is particularlyapparent in the description of Ostertag asking employees in different countries to rattle ofseveral of the 8 culture points important to the company.1. What actions do you think had the greatest impact on changing the culture atGeneral Semiconductor?2. Do you think changing General Semiconductor’s culture was critical to itsimproved performance?3. What changes would you have made and what actions would you have taken ifyou had been in Ronald Ostertag’s position?4. What outcomes would you want to measure to determine if your actions wereworking or not?