Case Study Executive and Managerial Planning in Bosch Subsidiaries in Kazakhstan Possible solution: Corporate Philosophy: The founder Robert Bosch gave the company his name and created values that still apply today. “It is my intention, apart from the alleviation of all kinds of suffering, to promote the moral, physical and intellectual development of the people. ” One of the most important achievements of technological progress has been the growth in productivity that gives us more free time. Robert Bosch introduced the hour day in his plants as early as 1906.
Free Sunday afternoons and regular holidays followed few years later. Besides social responsibility, Bosch sees his strength in the following 6 core competencies: Strategic far sightedness • Innovative strength Efficient processes Quality and reliability Global presence and Human resource development. Apart from these core competencies, the company structured differently in comparison to other multinational companies. It is not a public listed company, but a foundation with the major objectives in the human charity fields. The Robert Bosch Foundation continues to pursue the social principles of the company’s founder.
Environmental Conditions: Kazakhstan is described in the case study as a country with relatively small population and few university graduates. The education system is concern not only for the country, but also for foreign investors. Although labor costs are relatively low, not enough skilled labor can be found to serve in the new factories. As a result, expatriates from Bosch are necessary to build up and run the Bosch facilities in the long run. This is important to consider in the planning process. Recruiting talented staff is a vital prerequisite for further success of the entities.
Corporate Strengths and constraints Bosch introduced a variety of HR tools that apply on a worldwide basis. EMP, MED, MDP,and JUMP are only few examples. The international application of these tools brings Bosch an advantage for recruiting talented staff from major universities and faculties in many countries. Employee development opportunities are key motivators beside a market oriented and performance related payment. Alongside the fast introduction of HR tools also in Kazakhstan it is important to make this information available to potential future employees.
HR marketing with a good brand building can help to overcome shortages in the labor market Develop objectives and goals The key is to find the right people for the sites and to develop them within Bosch, so that Bosch can rely on stable and Bosch minded workforce in the future. To achieve this vision we should define short/medium and long term objectives and goals: · Development of programs and recruitment activities to attract associates for Bosch. This can be programs focused on higher numbers of graduates, e. g. n a comparable situation we introduced a program named “120 plus 20” to attract 120 engineers and 20 commercial professionals within 3 years to get a stable and well qualified base. The entrance level of those candidates is lower than for international programs like JUMP. · Parallel introduction of programs to attract top talents in the country, e. g JUMP · Parallel acquisition of experienced managers from the labor market · Introduce the employee development tools as standard within Bosch · Assign local managers to Germany with the aim of replacing expatriates after return.
Develop Strategies It is mentioned in the case study that only one location (Diesel) is growing fast, while the others are consolidated already. Therefore, major activities are focused on this site. Although it is the long term target to run the business with only a few expatriates and with associates from within, it is not realistic in the next 3-4 years (short/medium term) to fully achieve this target. If you refer to the chart, the overall demand of associates over the next 8 years is 203, where 111 are short/medium term and 92 are long term staffing need of all levels.
Simply to plan a complete allocation with MDP or with associates who completed above mentioned programs is not realistic in middle and upper management levels is completely unrealistic short term. In the medium term we can develop some good candidates out of this pool. In a comparable situation, we planned the staffing sources as follows: · Expatriates: Short/medium term high numbers of expatriates (60), long term (38)=98 · MDP: Short/medium term (30), long term (35) = 65 · Programs, e. g. JUMP: Short/medium term (3), long term (5) only for lower management levels External hires: Short/medium term (18), long term (14) only for lower and middle management level As a result, nearly 50 % of the staffing sources will be expatriates, although this is expensive and not the target of the company. Long term this amount will go down. Local MDP will be the major source in the long run, but not in the next 8 years. Although programs are important for Bosch in many countries, we do not believe that we can find enough qualified personnel in Kazakhstan in the next 8 years, which meet the standard we are looking for. We believe that only 4 % of all staffing sources come from these programs.