Executive and Managerial Planning for Bosch-Kazakhstan - Example

Strategic Forecasts and Staffing Formulation: Executive and Managerial Planning for Bosch-Kazakhstan Problem Definition The problem at Bosch Kazakhstan is how to get qualified staff at this location. The sites are not attractive to most of the qualified employees. Additionally, there is only a small market for qualified managers and specialists. Furthermore, the process for hiring persons outside of Kazakhstan takes an extraordinarily long period of time Festing & Dowling (n.d). Corporate Philosophy The corporate philosophy at Bosch Kazakhstan is that of ensuring human security in making sure that they are fit both physically mentally to carry out their tasks; that they possess a high level of knowledge and understanding; and that they conform to generally accepted standards of conduct. Environmental Analysis Environmental scanning involves an analysis of the macro-environment in which Bosch-Kazakhstan operates. This will help the firm to determine if there are any opportunities or threats in the environment and how these can be dealt with to ensure its survival. The PESTEL model will be used in this analysis. The political situation existing in Kazakhstan is authoritarian presidential rule. This means that the people do not have much say in how the country is run they have to abide by the dictates. They have no freedom and so they have to be obedient. This type of rule normally leeds to coup attempts to gain power. The economic situation in Kazakhstan is one of low wages of $0.86 per hour. This is almost ten times less than the minimum hourly wage in the US. The employment rate is at 7.4 per cent in 2006. Social conditions in Kazakhstan are poor. The low wages that employees receive may only allow them to ‘live each day as if it were the last.’ Low wages can affect work moral as workers experience more hunger. I the body is not properly nourished, it will be difficult to fight diseases. Low wages also implies low production cost. Additionally, the educational system is mainly private with only 2.4 per cent being spent by the government on education in 2006. Only 4 per cent of the population hold University degree. Academic research is also limited and is dependent on foreign aid. This implies that there is not much local research data available to facilitate the planning process. Technology appears to be determined by foreign investments. With wages of $0.86 per hour it may be more economical to use labour instead of machines. In ecological terms Kazakhstan has very cold winters and hot summers and so the people depend on energy to keep them warm. The fuel they use to provide energy releases carbon emissions in the environment and this contributes to global warming a result of the depletion of the ozone layer. Legal systems in place are such that the process to gain a work permit to work in the country does not facilitate the efficient deployment of Bosch’s corporate office staff. The process is longer than other countries in which Bosch’s subsidiaries exist. Internal Analysis The corporate strengths and constraints of Bosch-Kazakhstan can be evaluated using SWOT analysis. In carrying out this process the firm’s resources to determine if it will be able to deal with the opportunities and threats in the macro-environment. This information can be used to develop strategies based on environmental conditions. The strengths of Bosch-Kazakhstan include the fact that its cost of labour is very low compared to other countries in which it operates. The diesel division is growing fast. The weakness of Bosch-Kazakhstan is that its local candidates for management positions do not have what it takes perform in that role and they are also lacking in the experience required. Additionally, its major production sites are unattractive to most qualified workers. Goals and objectives The goals and objectives of Bosch-Kazakhstan is for the Bosch Group HR manager to ensure that it takes the necessary management staff in place within the required time period in order to maintain efficient and effective operations at its four divisions at all times. This requires adequate planning taking into consideration, staff development programmes, new recruits and retiring personnel. Strategies The strategy that Bosch-Kazakhstan needs HR manager should employ is to ensure that the firm always has excess management staff in place. In that way the company will be up and running effectively at all times. Bosch-Kazakhstan could also start the process of obtaining a work permit longer than required on a just in case basis if this is not a very expensive process. Additionally, the company could provide scholarships for Kazakhstanis to attend private universities and also to learn an international language. These three options could be weighed to determine which is less costly. Since diesel (gasoline) is the firm’s fastest growing area the focus would be sending an expatriate who has extensive knowledge and consider providing scholarships in this area for the long term. . The following tables show the actual staffing sources of managers at Bosch-Kazakhstan. the first table 2007-2010 is based on business plans and succession planning and the second 2011-2014 is based on forecasts and global-macro indicators. Staffing Sources 2007-2010 Lower Middle Upper Expatriates 59 35 2 Local MDP members Programmes e.g., JUMP 15 External hires Staffing Total 74 35 2 Comments 2007-2010 The table above indicates that Bosch’s HR manager will place two (2) expatriates in the upper management position since only expatriates are placed in that position. In the middle management position we have only expatriates because there are no possible candidates in Bosch-Kazakhstan who can comfortably fill that role based on our criteria of above average development potential. Additionally, the JUMP candidates would not be able to fill middle management positions because it would take some 6 to 8 years after training to move to the next level. It is not possible to get external hires in within the timeframe it would take an external hire to get into Germany to start working and so for the period 2007 to 2010, they cannot be considered. Staffing Sources 2011-2014 Lower Middle Upper Expatriates 19 24 2 Local MDP members 5 Programmes e.g., JUMP 15 External hires 15 12 Staffing Total 54 36 2 Comments 2011-2014 For the forecast some expatriates retired and so Bosch HR manager replaced them with lower level managers and managers who were just promoted from MDPs at other locations. There were also some expatriates who were sent by Bosch HR manager elsewhere. Bosch HR manager had some time to plan and so they got the process for external hires based on the length of time it takes in Kazakhstan. Bosch HR manger worked hard so that he could have some Local MDP members in management position. Bosch HR manager did not promote any JUMP personnel because they have not yet completed their programme which lasts for 6 to 8 years. Action Plan First Bosch HR manager would look at the personnel that is available currently and the management level position that they occupy. Then I would look at how many would be at retirement within the planning period. Based on previous years experience Bosch HR manager would determine the number of personnel from the different levels of management are expected to resign. Of major importance is the number of personnel available to take up MDP positions. All these would be taken into consideration to determine how many JUMP and External hire would be needed. If so then Bosch HR manager would review recruitment files to determine how many candidates are available for JUMP and External hire. Bosch HR manager would then advertise the positions in so that they will not end up with a manpower shortage. References Festing, M & Manfred, F. (n.d.) Strategic Forecasts and Staffing Formulation: Executive and Managerial Planning for Bosch-Kazakhstan. in Dow, P,, Festing, M. and Engle. A.D. International Human Resource Management: Management : Managing People in a Multinational Context. 5th ed. Cengage Learning Read More