Case Study 5: DHL Bangladesh 1. What advantages and disadvantages associated with a matrix structure does this case reveal? The matrix structure of DHL lends many advantages and disadvantages to DHL. One advantage can be seen in the ability for DHL to accomplish pockets of business via the geographic settings through specific output groups to handle the diversity of business available for DHL.
It keeps the different partitions of business in scope of how to best service each geographic region and allow for a leadership support structure to reign over each pocket to provide a unify management system, guidance, and leadership for the different portions of business. The other advantage of the matrix structure is that it allows for a check and balance process for the different groups for DHL to ensure the best overall company structure is established.
The disadvantages of having this type of matrix structure is that the section of business has its own agenda and process in how it executes it business model along with difference nuisances and strategies that go with it. When this type of segregation occurs it limits the ability for one area to adapt to another as evidence the HRIS modification that DHLB would have to undergo from the DHL Pakistani to utilize its system. It also builds improper alliance with position of power that limits the reach of voice to communicate feedback or opinion because of fear of backlash.
The flow of ideas and best practices is also limited by the barriers of the matrix structure as it keeps each party in their own circle. 2. For Nural, identify the advantages and disadvantages for the three options: (1) proceeding with DHL Pakistan’s HRIS, (2) proceedings with a local Bangladesh vendor, and (3) negotiating with regional HQ. A. Proceeding with DHL Pakistan’s HRIS – The advantage of using this system would allow for all of DHL to be under one system and streamline the support team to operate under one team versus having teams spread out through the organization to help with all the different HRIS systems.
The disadvantage is that the company would be tied to support and engineering of DHL Pakistan. The other groups would not have the ability to hold DHL Pakistan accountable for their modification or timelines as they would be able to move at the pace they deem best fit. The cost is much more than using a local vendor but the support function would be much stronger. B. Proceeding with a local Bangladesh vendor – Using a local Bangladesh vendor would be 5 times cheaper and the support potential would be much stronger than going through DHL Pakistan.
The modification modules would be much quicker to assemble then going through DHL Pakistan. However, it does not provide an enterprise (global) solution. C. Negotiating with regional HQ – Negotiating with Regional HQ would allow for a cheaper price of the HRIS system and allow for Nural to protect his reputation and career advancement potential if he did. The disadvantage would be that he would not get to fully express his concern with having to compromise with regional HQ. 3.
Rank in order the advantages and disadvantages listed in the question above, in terms of their (1) Potential for solving DHLB’s problems and (2) Political importance from the viewpoint of DHLB and regional HQ. For a more detailed analysis, include the following stakeholders: (1) Nurul Rahman, (2) DHLB’s HR department, (3) Mr. Saha, and (4) DHL Pakistan. In regards to potentially solving DHLB’s problems, proceeding with a local Bangladesh vendor would be the most feasible. This solution would benefit DHLB’s HR department and provide a sense of ownership to Nurul.
However, from Mr. Saha’s perspective DHL would not provide a consistent system throughout the enterprise. Implementing DHL Pakistan’s HRIS solution would deem fit for Mr. Saha and DHL Pakistan, but this would require the IT department of DHL Pakistan to increase their resources to provide support and changes to the other areas HRIS systems. Negotiating with regional HQ would rank least in terms of solving DHLB’s problems. It may be important to Nurul, but Nurul should consider the benefits for the company. 4.
If you were Nurul Rahman, what would you recommend? If I were Nurul Rahman I would stand my ground and present my beliefs on going with a local vendor in Bangladesh with a strategy to implement that solution globally. This opportunity would allow Nurul to showcase his analytical and business acumen to understand the operations of his business with others. The danger of his career advancement is a high risk to absorb but this would be a decision that would eat at him and eventually cause him career dissatisfaction.
This decision would also protect DHLB from incorporating a solution that would not be in the best interest of their organization. The cheap cost, the proper support structure, and ability to adapt a HRIS solution to their group is the biggest priority then aligning DHL groups in which there is already a relationship with the vendor and the costs are low. The vendor can develop the solution for the other sites and the Pakistan resources can assist with implementation and developing the solutions globally.