Primary Problem
Due to the acquisition of the company by Canada Corporation (Hydrocarbon Ltd.) and later China Petrol in 2005, there has been changing at the management level. As a result of this, the company was forced to follow different human resource strategies that are prevalent and are operational according to the cultures of China and Canada. It also brought in changes in corporate culture as well as management style. Coming out of a different political and cultural background, the employees found it challenging to cope up with the new scenario and hence it was considered to be a primary problem.
The company had accepted the Canadian culture since it had been under it for several years. As a result, there was not much problem in coping up since Canadian management culture is considered to be open, transparent and employee friendly. The major problem started since 2005 after China Petroleum acquired the company. China has a strict political system that does not encourage free discussion and transparency, and this has been reflecting in corporate culture as well. The KazOil employees were not involved in free discussion since it was only conducted among the higher officials. As a result, there was lack of motivation and the gradual resignation of a large number of employees (Bondy & Starkey, 2014).
Secondary Problem
The employees of …show more content…
In case of KazOil, the employees could cope up with Canadian management style but as per the secretive style of China Petrol, they felt they have purposely put aside from all important decisions. As a result of this, they went for alternative opportunities, preferably Western companies that would ensure equal distribution of power and transparency among the employees and superiors, backed by healthy discussion and intense
Due to the acquisition of the company by Canada Corporation (Hydrocarbon Ltd.) and later China Petrol in 2005, there has been changing at the management level. As a result of this, the company was forced to follow different human resource strategies that are prevalent and are operational according to the cultures of China and Canada. It also brought in changes in corporate culture as well as management style. Coming out of a different political and cultural background, the employees found it challenging to cope up with the new scenario and hence it was considered to be a primary problem.
The company had accepted the Canadian culture since it had been under it for several years. As a result, there was not much problem in coping up since Canadian management culture is considered to be open, transparent and employee friendly. The major problem started since 2005 after China Petroleum acquired the company. China has a strict political system that does not encourage free discussion and transparency, and this has been reflecting in corporate culture as well. The KazOil employees were not involved in free discussion since it was only conducted among the higher officials. As a result, there was lack of motivation and the gradual resignation of a large number of employees (Bondy & Starkey, 2014).
Secondary Problem
The employees of …show more content…
In case of KazOil, the employees could cope up with Canadian management style but as per the secretive style of China Petrol, they felt they have purposely put aside from all important decisions. As a result of this, they went for alternative opportunities, preferably Western companies that would ensure equal distribution of power and transparency among the employees and superiors, backed by healthy discussion and intense