Bosch Case Study: Cultural Diversity, Staffing & Global Strategy

This case study solution examines Bosch's challenges and advantages with multicultural teams, including creativity, diverse perspectives, and cultural knowledge. It identifies contemporary issues like expatriate costs and staffing approaches, advocating for a polycentric approach in host countries. The analysis suggests tailored training programs focusing on technical skills, cultural sensitivity, and ethical conduct to foster a healthy work environment and mitigate risks of discrimination and unethical domination. Furthermore, it emphasizes the importance of cost management strategies to address high expatriate and compensation costs. The solution recommends that Bosch focus on managing multicultural teams effectively, meeting employee expectations, and maintaining a liberal work culture to encourage employee motivation and retention, ultimately enhancing the success of international assignments. Desklib offers a range of similar solved assignments and study resources for students.

Sociology
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Table of Contents
Question 1:.................................................................................................................................3
What are the main advantages and disadvantages that Bosch face with the multicultural
teams?.....................................................................................................................................3
Question 2:.................................................................................................................................6
Discuss some of the contemporary issues that Bosch face and need to take into account
when deciding on their operations and how to organise the business across cultures...........6
Question 3:.................................................................................................................................7
What staffing approach do they follow? Support this answer with evidence from the case
study.......................................................................................................................................7
Questions 4:................................................................................................................................7
What should they do differently? What do you propose as a strategy for their staffing
arrangements and recruitment moving forward?...................................................................7
Question 5:.................................................................................................................................8
What kinds of training or support do you think Bosch should offer their global
management team and multicultural teams to succeed when moving abroad?.....................8
Reference..................................................................................................................................10

Question 1:
What are the main advantages and disadvantages that Bosch face with the
multicultural teams?
Bosch is a German multinational company that is involved with operations like
engineering technology and provide services regarding mobility solutions, consumer good,
energy as well as building technology. It has expanded its business in several countries
Europe, America, Asia Pacific. The company has over 283,597 employees, out of which over
60 per cent of the employees are outside the home country Germany. Hence, it is evident that,
for the purpose of undertaking international assignment the company needs to manage
multicultural teams, cooperate with culturally diverse employees, meet their expectations,
maintain a liberal work culture, design various employee motivation and retention program to
encourage them to put their best efforts (Akinnusi et al. 2017).
The advantages Bosch face with the multicultural teams may include creativity.
People from different country, culture, religion are reared in different atmosphere, which has
contributed to their different levels of creativity. Hence, an MNC like Bosch can be highly
benefitted from a multicultural team. As the team will be able to contribute a lot in the
brainstorming and creative thinking process which occur before the beginning of a project
(NicholsHornerand Fyfe,2015).
Another advantage is difference in perspective. People from different country, culture,
religion are brought up in different circumstance, hence, each of the employees who are from
different cultural, religious or ethnical background, will have different levels of intellect and
will be able to look at things from different perspectives. Hence a team consisting of people
from culturally diverse backgrounds will easily find out what are the factors that can foster

innovation. This will in turn facilitate in formulating prudent plans for completing
international assignments (MaderaDawsonand Neal2017).
One of the greatest advantages, is that, in a multicultural team people will have
knowledge about different culture, language taste and preferences. This will facilitate Bosch
to conduct their business in different countries For example, if Bosch want to expand its
business in several countries of Asia pacific, then people in the multicultural team who are
from Asia will be able to understand and interpretthe language taste preference and needs of
the target customers in those Asian countries, where Bosch has planned to conduct its
business.
Another advantage is difference in perspective. People from different country, culture,
religion are brought up in different circumstance, hence, each of the employees who are from
different cultural, religious or ethnical background, will have different levels of intellect and
will be able to look at things from different perspectives. Hence a team consisting of people
from culturally diverse backgrounds will easily find out what are the factors that can foster
innovation. This will in turn facilitate in formulating prudent plans for completing
international assignments.
There are several disadvantages of having a multicultural team. As all of the members
may not be broad minded to accept colleagues from different ethnic religious as well as
cultural background, there may be cases like bullying. Again, there may occur
discriminations on the basis of race and ethnicity. For example, if one of the team member is
white Americana nd one is African, there may be cases of racial discrimination or bullying in
the name of skin color.
There may be cases of domination. If one of the members of the team is from
developing countries like India and other are from developed countries like UK or America,

those who are from developing countries may be dominated by those who are from developed
countries. For this reason, the potentialities of the dominated member may not come out.
Both the problems of racial discrimination and unethical domination may destroy the
integrity. This will in turn hamper the cooperation. Lack of coordination and cooperation will
further destroy the disciple in work. This will not only delay the whole project but also cause
project failure.
Again, there may occur problem of understanding, if people are not frank enough with
each other. This will lead to misinterpretation and misunderstanding, which will hamper the
overall success of the international assignment
There may be cases of unscrupulous activities. If one of the members of the team is
from developing countries like India and other are from developed countries like UK or
America, those who are from developing countries may be deceived by those who are from
developed countries. For this reason, the potentialities of the dominated member may not
come out.
BOSCH has expanded its business in multiple countries like Europe, Germany, Korea
countries of Asia pacific, other Asian countries like India. As it often undertakes
theinternational assignments,or other projects like establishment of manufacturing plants in
different countries; it has to undergo several issues related to cost management, management
of multicultural teams

Question 2:
Discuss some of the contemporary issues that Bosch face and need to take into
account when deciding on their operations and how to organise the business
across cultures.
The contemporary issues that BOSCH needs to take into account when deciding on
their operations and the plan for organizing the business across cultures are- the high levels of
expatriate costs, compensation costs or other allowance to employees of other countries.
Sometimes due to the fluctuation in the exchange rate as well as the inflation rate in the
countries where BOSCH conducts its business, several expense s of BOSCH increases. Such
as- the cost of the project which is occurring in the country with fluctuating exchange and
inflation rate, the expenses for different kinds of allowances as well as compensation to the
employees and so on. Again sometimes, due to the premature termination of a project the
company has to bear expatriate costs. Hence the company needs to formulate prudent policies
Along with obtaining a prudent cost management policies, BOSCH also needs to look
after its staffing approach. The staffing approach adopted by BOSCH is the geocentric
staffing approach. Managerial posts are headed by people from different ethnic background.
This contributes to the fostering of creativity as well as innovation. Hence, an MNC like
Bosch can be highly benefitted from a multicultural management employees. As the team
will be able to contribute a lot in the brainstorming and creative thinking process which occur
before the beginning of a project.

Question 3:
What staffing approach do they follow? Support this answer with evidence from
the case study.
As the strategy for their staffing arrangements and recruitment moving forward, it can
be said that, in the host country the company should take polycentric staffing approach. As a
stratefor the recruitment moving forwardBOSCH should adopt staffing approach that are not
biased to the host country rather, fill up the managerial posts by people from different ethnic
background. This contributes to the fostering of creativity as well as innovation. Hence, an
MNC like Bosch can be highly benefitted from a multicultural management employees.. As
the team will be able to contribute a lot in the brainstorming and creative thinking process
which occur before the beginning of a project.
Questions 4:
What should they do differently? What do you propose as a strategy for their
staffing arrangements and recruitment moving forward?
As the strategy for their staffing arrangements and recruitment moving forward, it can
be said that, in the host country the company should take polycentric staffing approach. As a
stratefor the recruitment moving forward BOSCH should adopt staffing approach that are not
biased to to the host country rather, fill up the managerial posts by people from different
ethnic background. This contributes to the fostering of creativity as well as innovation.
Hence, an MNC like Bosch can be highly benefitted from a multicultural management
employees.. As the team will be able to contribute a lot in the brainstorming and creative
thinking process which occur before the beginning of a project.

Question 5:
What kinds of training or support do you think Bosch should offer their global
management team and multicultural teams to succeed when moving abroad?
The training Bosch should offer their global management team and multicultural
teams are technical skill training, language and culture related knowledge enhancement
programs. Most importantly training related to code of conduct for providing multicultural
team a healthy working environment. This is because, all of the members may not be broad
minded to accept colleagues from different ethnic religious as well as cultural background,
there may be cases like bullying. Again, there may occur discriminations on the basis of race
and ethnicity. For example, if one of the team member is white Americana nd one is African,
there may be cases of racial discrimination or bullying in the name of skin color. Another
reason behind providing training related to code of conduct for a multicultural team is that,
there may be cases of domination. If one of the members of the team is from developing
countries like India and other are from developed countries like UK or America, those who
are from developing countries may be dominated by those who are from developed countries.
For this reason, the potentialities of the dominated member may not come out.Another reason
behind providing training related to code of conduct for a multicultural team is that, both the
problems of racial discrimination and unethical domination may destroy the integrity. This
will in turn hamper the cooperation. Lack of coordination and cooperation will further
destroy the disciple in work. This will not only delay the whole project but also cause project
failure.Another reason behind providing training related to code of conduct for a
multicultural team is that, there may occur problem of understanding, if people are not frank
enough with each other. This will lead to misinterpretation and misunderstanding, which will
hamper the overall success of the international assignment.

Moreover the managers of different departments whoa re assigned with different
project should be given training for reduction of compensation cost, expatriate cost,
allowance expenses.This is because, the high levels of expatriate costs, compensation costs or
other allowance to employees of other countries are contributing to the decline of the
revenue. Sometimes due to the fluctuation in the exchange rate as well as the inflation rate in
the countries where BOSCH conducts its business, several expense s of BOSCH increases.
Such as- the cost of the project which is occurring in the country with fluctuating exchange
and inflation rate, the expenses for different kinds of allowances as well as compensation to
the employees and so on. Again sometimes, due to the premature termination of a project the
company has to bear expatriate costs. Hence the company needs to formulate prudent policies
In the conclusion, it can be recommended that, for the purpose of undertaking
international assignment the company needs to manage multicultural teams, cooperate with
culturally diverse employees, meet their expectations, maintain a liberal work culture, design
various employee motivation and retention program to encourage them to put their best
efforts.BOSCH needs to undertake different policies for reducing various costs. This include
high levels of expatriate costs, compensation costs or other allowance to employees of other
countries are contributing to the decline of the revenue. Sometimes due to the fluctuation in
the exchange rate as well as the inflation rate in the countries where BOSCH conducts its
business, several expense s of BOSCH increases. Such as- the cost of the project which is
occurring in the country with fluctuating exchange and inflation rate, the expenses for
different kinds of allowances as well as compensation to the employees and so on. From this
above discussion.

Reference
Akinnusi, D.M., Sonubi, O.O. and Oyewunmi, A.E., 2017. Fostering effective workforce
diversity management in Nigerian organizations: The challenge of Human Resource
Management. International Review of Management and Marketing, 7(2), pp.108-116.
Nichols, P., Horner, B. and Fyfe, K., 2015. Understanding and improving communication
processes in an increasingly multicultural aged care workforce. Journal of Aging Studies, 32,
pp.23-31.
Madera, J.M., Dawson, M. and Neal, J.A., 2017. Managers’ psychological diversity climate
and fairness: The utility and importance of diversity management in the hospitality industry.
Journal of Human Resources in Hospitality & Tourism, 16(3), pp.288-307.