Issue Identification

Running head: ISSUE IDENTIFICATION
ISSUE IDENTIFICATION
Name of the student
Name of the university
Author note

1ISSUE IDENTIFICATION
2.2 Symptoms and issues diagnostic
The wider availability of natural resources in Kazakhstan supported the growth of the
FDIs in the region. However, it has been noticed that factors like the volatile economic
environment, weak infrastructural growth, lack of transparency in the legal frameworks and the
government intervention has affected the interests of the companies. In this relation, KazOil
acted as an oil production cooperative in Kyzyl- Orda. Kazakhstan Government sold the
concerned organization to the Hydrocarbons Ltd., which is a Canadian organization. The
acquisition of the organization by the Canadian organization has helped in the further
development of the concerned business.
However, development of KazOil was affected through the falling oil prices from a high
of US$11.13 to low of US$5.89 per barrel. In this scenario, the concerned organization created
one export contract with Russia and two contracts with China in the year 1999. The Chinese
contract provided the organization with an initiative of maximizing the rate of its production by
30% (amounting to 100,000 tons) of the production. It has helped the concerned organization in
upholding the sustenance of the same. Hydrocarbons Ltd considered selling the enterprise to the
China Petrol with the aim of upholding the sustenance of the same. However, the HR related
issues that are faced by the organization are related to the top- down management style of the
Chinese firms. The preference of the Chinese management towards the Chinese employees has
affected the morale of the existing employees of the concerned organization. On the other hand,
the authoritative control over the processes has created a cultural gap, which has affected the
capabilities of the concerned organization in upholding the efficiency of the operations.

2ISSUE IDENTIFICATION
Kazakhstan followed a liberalization culture, which was affected by the implementation
of the Chinese authoritative government style. Dissatisfaction among the existing employees of
the concerned organization resulted to high level of staff turnover rates. On the other hand, the
skilled employees resigned from their respective posts as they failed to cope with the new
policies that are framed by the Chinese management system. It has affected the capabilities of the
organization in maintaining the efficiency of the operations in adherence to the sustenance
related needs of the same. On the other hand, the lack of transparency in the Chinese
management approach affected the capabilities of the organization in maintaining the efficiency
of the operations. Therefore, the different issues that are identified in the section will assist in
identifying the major concerns that were faced by the concerned organization while operating in
a change management context.
5 whys for the problems
Proble
m 1
Authoritative governance of Chinese management
Why 1 Why 2 Why 3 Why 4 Why 5 Root cause Reoccurre
nce
prevention
Lack of
transparenc
y
No
communicatio
n
Biased
decision
Dissatisfactio
n among
employees
Lack of
positive
culture
Authoritativ
e
governance
New
manageme
nt culture
No regard
for skilled
employees
Prioritization
of Chinese
workers
No step-
s for
retentio
Centralized
management
Top
down
approac
HRM
policies
Change in
the HRM
policies