Bosch Group in India: Transition to a Transnational Organization

Bosch group in India: Transition to a transnational organization

Contents

Introduction: 3

Key issues with Leadership: 3

SWOT Analysis: 4

Change in leadership: 5

Activities against the change management process: 6

Recommendation: 7

Conclusion: 7

Exhibits: 8

Exhibit – Key issues of leadership 8

Exhibit – SWOT Analysis: 8

Exhibit – Change in activities against management process 9

Introduction:

The establishment of Bosch Group was as the Precision Mechanics and Electrical Engineering Workshop in 1886 by Robert Bosch in Stuttgart. Initially, the firm was involved in construction and installation of all types of electrical devices which included remote indicators of electrical water-level and telephone system. The Bosch Group had been a leading service and technology supplier around the world with concentration in areas such as Consumer goods and building technology, industrial technology and automotive technology.

In India, the Bosch Group had a workforce of about 25000 employees with the consolidated revenue of about 113,000 million. In 1951, the Bosch Group started operating in India and initiated manufacturing in 1953. Similar to global organizations, the Bosch Group operates in India into three segments in which engineering and IT services – an additional one. Therefore, in India, it represented three joint ventures which included MHB Filter India Private Ltd. MHB Filter India Private Ltd, Bosch Electrical Drives India Private Ltd., and Bosch Automotive Electronics India Private Ltd.

Key issues with Leadership:

The Bosch Group had been strictly following the functional structure in the management and growth of organization. Due to the geographic distances of the organization operating in different regions or countries, purposely for the close management of organizational operations; there had been difficulties in communication and travelling. As per these difficulties in close management, the acquisition of autonomy had been observed for many large international operations. Therefore, the re-organization of German organizations in postwar conditions of World War II. This had made it more difficult to practice authority for headquarters of the organization in terms of international operations.

SWOT Analysis:

Strength:

• The Bosch Group has been operating as a multinational organization in three main areas particularly in Germany and other 59 countries in the world.

• It works with an effective and quite large workforce with efficient performance at work.

• It has strong command in sales and greatly invest in research and development to compete in the international market.

Weakness:

• Each division of organizations have a communication gap resulting in a number of difficulties in getting the management of organization closer.

• It lacks effective leadership style and unnecessary changes in the organizational structure at global level which does not suit to each organization in different domains.

• Imbalance of workers’ salaries ranges of both profitable and less profitable divisions of organization.

Opportunities:

• Focusing on the leadership style and improving the organizational structure according to the need of each division will assist to function in an effective manner.

• There will be expansion of business in countries which have not been explored due to the effective management of organization.

• Considering needs and encouraging employees by providing them with incentives they deserve will reduce conflicts.

Threats:

• Multiple reporting lines followed by the organization’s each division will further complicate the reporting process.

• Neglecting the rights and needs of employees will result in demotivation of employees at work affecting the performance of organization.

• Same rules for different organization in different countries will complicate the production and supply chain of organization in particular domain.

Change in leadership:

Due to the difficulties faced by the Bosch Group after the postwar conditions of World War II, there had been a need of global geographic organization structure. As initially, when there were limited number of employees and the management was in direct contact with the employees ensuring no communication gap within. As the organization started to flourish, the number of employees as well as the scale at which the organization operates. Therefore, on this basis, the management of the organization started introducing reforms to its constitution and structure of corporate.

Change in leadership style