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Strategic Forecasting and Staffing Formulation in Bosch

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Sam Cadman

on 19 April 2016

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Transcript of Strategic Forecasting and Staffing Formulation in Bosch

Strategic Forecasting and Staffing Formulation in Bosch Kazakhstan
Staffing Strategy
Based on model from Perlmutter our approach is Ethnocentric in nature
HQ can have subsidiary managed by PCNs
Control in volatile economic and political climate
Maintaining Robert Bosch Philosophy of promoting from within

Describe the Corporate Philosophy
‘It is my intention, apart from the alleviation of all kinds of suffering, to promote the moral, physical and intellectual development of the people.’- the founder Robert Bosch
 International View
 Development of talent from within the company
 Processed Training programs for proficient and effective management executives
 This entails a long-term vision
 Development of education and skills for the benefit of the external environment as well as the company itself
Scan environmental conditions
 Central Asia
 Main religion: Islam (70.2%) and Christianity (26.2%)
 Language: Kazakh but Russian also used in every day business
 GDP of 148.1 billion US dollars in 2010 in comparison the GDP of the U.S.A being 14.9 trillion US dollars
 Education a major concern
 Low skill proficiency with respect to company’s being able to find employees with relevant skill sets

 Low amount of qualified managers
 Expected increase in the quality of education
 Very low mobility
Executive Managerial Planning:
8 year forecast
Two options for staffing:
To perform short term measures: hiring externally
Medium to long term: development, JUMP, Extensive international work experience

Action Plan
Phase 1: Work Design & Information Flow

Communicating requirement to staff - international assignment goals, expectations, entitlements and experience
Dissemination of information - fundamental role of HR
Facilitate mentoring and experience sharing from senior management - Cross-culture seminars
Initial employee screening coupled with MDP - Test cognitive ability and tacit knowledge
Upstream and Downstream Considerations
Action Plan
Phase 2: Talent Development

Centered around Executive and Managerial Planning through internal HR mechanisms
Management Development Plan - reserved for employees who show high potential
JUMP - recruiting junior managers from universities for management training - includes overseas experience
Core Assessment Factors;
Performance, Personality, Open-mindedness, International mobility potential
Staffing Action Plan
Bosch's core philosophy for employee development, and its relation to achieving managerial staffing targets

Maintaining and further developing employee qualifications
Create a culture that promotes moral, physical and intellectual development
Successfully navigate present and future challenges
Employment Staffing Predictions
Executive and Managerial Planning at Bosch-Kazakhstan
Robert Bosch:
“it is my intention apart from the alleviation of all kinds of suffering to promote the moral, physical and intellectual development of the people”
However a tradition of promoting employees from within the company
Sam Cadman, Brittany Markey, Wang Yan, Phoenix Wang
Macro Level

Cross-National Differences
Includes differences in both country and institutional cultures
Hofstede and Trompenaar
Micro Level

Creating synergies between employee performance and company strategies
The 'Ongoing Development Process'
Linkage between performance and pay
Barriers between PCNs, HCNs and TCNs
Action Plan
Phase 3: Talent Management and Appraisals

Utilising reserves of high potential employees, and continually reviewing expat performance
Streamlining staffing requirements and development planning for all levels of management
Continue the use of overseas assignments, project tasks, and cross-functional teams
Reiterate the importance of career development and advancement
Action Plan
Phase 4: Process and Program Review

By conducting a critical self reflection, it is easier to improve efficiencies in HR policies - such as in the selection criteria.
This includes;
Awareness and accuracy of expat assignment purposes and objectives
Selection criteria
Sensitivity to environmental variables and local conditions
Timing and distance of assignment
Key Takeaways
Performance Management cannot be an annual or semi-annual event, but rather a multi-faceted process
Factors of this process including the design of work; performance expectations; and regular feedback
Companies must seek to create synergies between employee performance and company priorities and strategies
Adapt to the unique needs of different employee types, i.e. PCNs, HCNs and TCNs
Significant consideration is required to understand different host-country contexts, and particularly the availability of qualified individuals in the international labour market
Executive and Managerial Planning at Bosch-Kazakhstan
The Task at Hand
In need of a staffing model to fit our Kazakhstan subsidiary location
Offers a great opportunity for investment in Diesel – a market that is growing rapidly

Location: Central Asia
Population: mostly made up of Kazakhs, Russians and Ukrainians
Language: Kazakh & Russian

Previous member of Soviet union until 1991
Currently a republic with authoritarian presidential rule

Vague and shifting powers of leadership
Education, particularly university graduates, while a high amount, do not possess the skills corresponding to most company’s needs

Our team has formulated a staffing plan via four different steps:
1. Outlining our aggregate approach to the staffing process
2. Executive and managerial planning guide: country and company specific situation
3. Our figures for staffing needs based on these evaluations
4. Bring all information together with an action plankey takeaways and success factors

What we are going to do today?
Low proficiency of university graduates
Essential to acquire managers with appropriate skills - This will require PCNs due to the lack of relevant skill sets in Kazakhstan university graduates

Kazakhstan Labour Market
Program for university Masters graduates
Should be somewhat Regiocentrically focused when choosing appropriate employees
This will help to spread skill and education through Kazakhstan benefiting the economy
Similarly helping to build a relationship with the government who may oppose the idea of PCNs managing the subsidiary rather than HCNs
Evaluation of Approach
There may be disadvantages in the ethnocentric approach
Promotion opportunities restricted and therefore possible effect on productivity
May be time consuming
PCN may make poor decisions
However careful preparation by Bosch may prevent this

Kazakhstan being an unpopular location for assignment may be a problem however
The Problem
Evaluate Corporate Strengths and Constraints
 Established program for management positions
 Large number of subsidiaries
 Clear and consistent strategy:
Demonstrated by large number of PCNs operating in management positions overseas

 Local labour market/ talent unprepared
 Cultural differences as HCN are not yet adequate for management positions
 Pre established company culture

Develop Objectives and Goals
 Establish well staffed subsidiary in Kazakhstan
 Increase numbers of local managers through use of local JUMP program during first 4 years
 In the second 4 years, decrease number of expatriates and promote local management to infuse education and skill into Kazakhstan

Develop Strategies
Short/medium term (2013-2016):
 PCN employment
 Both upper management PCN
Management development attendants employed from local environment
JUMP program underway in short term to involve local work force
Few external hires to keep with company philosophy

Long-term (2017-2020):
 Upper management still employed from PCN
 More middle management employed from JUMP program as will by this time be proficient in relevant skills
Middle management from current arrangement to be promoted
 Less hiring requirements in hopes that employees will be loyal to Bosch
Discussion Questions
Considering Perimutter's EPRG Model, are any other strategies appropriate for Bosch in Kazakhstan?
Are there strategies to encourage the development and improvement of educational standards in Kazakhstan?
As Bosch executives, do you have any suggestions that can potentially optimize our action plan?
Executive and Managerial Planning
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