Obama's Bag: High Quality with No QC at Barrington

Abstract

This case describes an American leather firm in China that has obtained a reputation for high productivity, excellent quality without QC inspectors, and very low turnover, in spite of offering only industry average compensation. Though many scholars and practitioners contend that “soft” management practices are ineffective in a high power distance country such as China, Barrington has successfully adapted programs such as “character first” and “open door policy” to create a high-involvement culture with a mix of control and commitment human resource management practices. Barrington now faces the need for rapid growth in a highly competitive, low entry barrier niche market, and management is concerned about how to maintain the intimate company culture. The teaching notes provide background for reviewing Barrington's challenges in evolving a healthy corporate culture and management-labor relationships within the context of China's unique historic, cultural and political contexts dynamics. Yet another perspective upon these challenges is given by briefly addressing the similar experiences of China's Asian neighbors, as well as the implications of some scholars' arguments that, even in the West, commitment HRM may be more prevalent in theory than in practice. After discussing Barrington's HRM practices of control, commitment, or hybrid, and their potential influence upon employee motivation and job satisfaction, students argue the pros and cons of the rapid expansion strategies that Barrington is considering to cope with intensifying competition and their potential influence upon the firm's company culture.