The Robert Bosch Group, policies, practices and processes are imbedded in the strategic, structural and operational context of the group. This administrative and operational strategy gives the organization deep insight on how to operate effectively and efficiently across a wide variety of competitive environments.
COMPANY PROFILE
The Bosch Group is a leading international technology and service company, supplying automotive and industrial technology, consumer goods and building technology. The Group employs around 260,000 staff and achieved sales of EUR 43.7 billion in 2006. The Bosch Group is made up of Robert Bosch GmbH and its 300 or so subsidiaries and regional companies in over 50 countries – a global network of development, production and sales capabilities that is the precondition for further growth. The company was founded in Stuttgart in 1885 by Robert Bosch (1861-1942), originally as a “Workshop for Precision Mechanics and Electrical Engineering”. Bosch invests over EUR 3 billion in research and development annually, and applied for over 3,000 patents worldwide in 2006.
CRITICALLY ANALYZE THE FORMS OF INTERNATIONAL WORK USED IN THIS ORGANIZATION
FORMS OF INTERNATIONAL WORK USED BY RBG
When a company decides to go into global operations, it must know to what extent they would participate in the global market. For RBG Company we have mentioned various forms of international work, which includes their operational sector, Labor recruitment and training, decentralization and job allocation. However, the management must know that each of the works attracts degree of ownership, capital involvements and some amount of risk.
SECTOR
An economic sector is a type of business activity within an economy. There are four main types of economic sectors namely, Primary, Secondary, Tertiary and quaternary sectors. Robert Bosch Group, an auto manufacturing company falls under the secondary economic sector. This is because they are involved in sourcing raw materials, processing them and manufacturing automobiles as the end product.
LAB OUR RECRUITMENT/TRAINING
Gary Dressler (2003), pg 127 notes that effective hiring is important for the success of any company. He argued that the overall operations of the organization and its success depend largely on the workforce. RBG is doing all they can to maximize employee’s performance in order to increase productivity in their HQ and all their subsidiaries.
DECENTRALIZATION
1999 marked the beginning of a new trend in RBG, the objective is to move delegates and expatriate from one site to another and from one country to another. The strategy is to operate a decentralized operational management so as to strengthen their potential growth of the international network.
JOB ALLOCATION
RBG is organizing their workforce to reflect their objectives. The company is recruiting competent staff and expatriates. Again, the company also places their employees into various categories, Long-termers, Delegates or short-termers and local workers.
FUTURE PLAN
Bosch cooperate with institutes of higher education despite economic difficulties Bosch are investing in the future, strengthening Germany as a business and educational location and assuming social responsibilities. Bosch and German state of Baden Wurttemberg will invest 25 million Euros in new teaching and infrastructure. (www.bosch.com)
The divisional structure is dynamic and has changed slightly in the past few years and without a doubt will continue to do so in future. Above is the current organizational structure.
THE MAIN CHALLENGES THAT COULD BE FACED BY EXPATRIATES IN THE CURRENT SITUATION
CLIMATE
Climate could be referred to an area of weather averaged and observed for over a long period of time. Generally, an expatriate will take quite some time to blend in a foreign environment. Expatriates who were formerly resided Germany, considering the warm summer and snowy winter, they will be facing changes if the company assigned them to places like Dubai or any part of the middle east country, where the annual climate are mostly humid and hot. Above and beyond, they might fail to adapt easily and can easily fall sick due to the different intensity of sun exposure.
COMMUNICATION AND INTERPERSONAL RELATION
One of the most significant needs is interaction and connection between expatriate and the locals of their host country. Perhaps, study on cultures, languages; lifestyle and behaviour of local citizen have to be done, before going to a new country. It is vital; especially for those delegates because they are expected have good interpersonal skills and to be professional amongst others. The same process is applicable to long-term expatriates since they are going to live in the country for a long period of time, things will be much easier for them if they get to interact well with the society. Therefore, understanding nature of the country and people will be the best approach that they can do to get along with the people. For instance, a manager from Germany cannot practice the same approach of leadership in another country like Malaysia, since they are more close and uneasy to express their selves and ideas at workplace compared to German workers.
DIFFERENT OUTLOOK
For expatriates who lived abroad for a short term, switching back to their former way of life would be much easier, compared to expatriates who have lived abroad for a long time. Impact would be felt by an expatriate on changes like, the cost of groceries, housing costs and the economy in general. By that time, expatriates are likely to fall into the trap of comparing home with their host country, they may find themselves doing the same in reverse when they return home by alluding to how much cheaper fuel was in their countries and other aspects of life, compared to that of which they found in their host country.
SHORT TERM EXPATRIATE
SCRATCH ON PERSONAL AND FAMILY RELATIONSHIPS
It is exceptionally difficult for expatriates to sustain and protect their relation, families, and friends as they are far from home. Factors like time different, work load, lack of communication may strain there relations back home. This problem leads to employees’ depression, de-motivation, low job performance and poor company overall performance.
Inadequate/lack of pre-assignment preparation
Lack of company support and knowledge about the local situation/project
LONG TERM EXPATRIATE
Usually encounter difficulties in learning the local language, making new friends, sorting out finances, healthcare finding a school for the children and Adapting to the local culture.
SUMMARIZE YOUR THOUGHTS ON THIS CASE, AND PROVIDE WITH IDEAS / STEPS TO PROCESS IN THE FUTURE AND BENEFITS OF THE APPROACH
It is evident that Robert Bosch has a well planned Human Resource policy/practice. This has come to matter in today’s business as a result of the following:
Globalization
Profitability through growth
Technology
Intellectual capital
Change, Change & more Changes
It is also observed that the company has been able to strengthen their expertise through their strategic executions, thereby becoming employee champions.
Through their international practice, they have been able to achieve the following:
Productivity & Outputs improved
Closer relationships between employees & management
The needs of the employees & the needs of the organisation are matched more carefully.
Employees are empowered to be highly involved to enhance satisfaction
Robert Bosch has also been able to identify one of their core values as cultural diversity. The diversity advantage has helped in:
Ensuring that the best people are recruited, retained & promoted for the jobs regardless of their ethnicity, age, gender, sexual orientation & other individual characteristics
Recognising people from different backgrounds, cultures & experiences which can then ensure that new ideas & perceptions are brought to the workplace & hence not only productivity but also quality is enhanced
Since promotions are done internally or at least organisations are encouraged to do so, a pool of diverse staff at the entry point ensures that same quantum of staff are available for succession planning efforts
5. However for future plans it may be worth noting that:
Changing demographic patterns of the world & the increasing rate of internationalisation of businesses means that the company may need to broaden their pool of potential recruits. Also, organizational processes must be fair (based on objective & job-relevant criteria) & the managers’ in-charge must be skilled. In so doing effective work commitment is felt throughout the organization and not at a particular level to the neglect of others. In order to retain the best, the company must also reflect flexibility in their activities.
6. The benefits of the above suggestion are:
Injects new blood into the organisation
May be cheaper
Such new employees are neutral of existing groups/gangs or coalition within the organisation
May also bring in the secret of competitors
Another key point is for the organization to reinforce their performance management strategy. This is a way they can help deliver organisational excellence. Performance management strives at achieving three main purposes. Namely:
Feedback
Development
Documentation
The above serves as a process for establishing shared understanding about what is to be achieved. It is also designed to support the employees, the appraisers & the organisation. Most importantly it helps in improving what is considered the inadequacies of the merit rating
The benefit will be a means of getting better results from the organisation, teams & individuals by understanding & managing performance within an agreed framework of planned goals, standards & competency requirements.
Culture is the interaction of people, environment, goals & tasks as well as systems & procedures. The company should also consider managing the diversified culture they operate on. Having successfully, been able to operate internationally in different environment, it is important to note that culture is a liability where the shared values are not in agreement with those that will further the organisation’s effectiveness. Also when the environment is undergoing rapid change, as the case study presents, the organisation’s culture may no longer be appropriate.
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IDENTIFY THE CROSS CULTURE ACTIVITIES IN A MNC, LISTED IN THE STOCK EXCHANGE OF LONDON, AND COMPARE THAT WITH SIMILAR ACTIVITIES IN THE ROBERT BOSCH GMBH.
The German company Bosch Gmbh is considered as a multinational corporation (MNC), with its vast operations over the world that goes to 130 countries with employs power of 240,000, only 30% of them located inside Germany and 70% overseas, therefore it becomes a must for such huge organization to adopt perfect cross culture to manage its human resources in a very efficient way.
Cross culture is the processes of educating employees (and their families) that are given an assignment in a foreign country (Noe, et al 2008). Royal Shell Group been picked up from London stock exchange as a multinational corporation also adopted cross culture its quite the same as Bosch Gmbh in Shell perspective about the cross culture in order to be succeed overseas, expatriates (employees on foreign assignment) need to be
Competent in their area of expertise.
Able to communicate verbally and nonverbally in the host country.
Flexible, tolerant of ambiguity, and sensitive to cultural difference.
Motivated to succeed, able to enjoy the challenge of working in other countries, and willing to learn about the host country’s culture, language, and customs.
Supported by their families.
The faces of similarities between the two companies among their cross culture practices are
The international, virtual teams exist at all levels of management as well as in Bosch and Shell been adopting this to ensure better performance of their employees with regard to their huge employees power.
The international transfer or (expatriates) with the same classifications has also been adopted by Shell Royal the long and short one.
The only differences between both are
Royal Shell has strong concern about the pre departure phase where the organization needs to deliver some helps to the new employees to receive language training and an orientation to the new country’s culture and some customs. Hence, Shell is still striving to include employees’ families in such activity or program because it’s been very critical for them. Bosch Gmbh identifies internationally working personnel officers as separate group, their task is to select, support, and coordinate international transferees. Operations and performance of new arrivals (employees) feedback is given by an experienced coach, project sponsors and top management the same situation and both Bosch Gmbh and Royal Shell. See below more information. (Appendix)
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