Case Study Dhl Bangladesh Essay

8728 Words May 16th, 2011 35 Pages


DHL Bangladesh: Managing HeadquartersSubsidiary Relations
By Hemant Merchant Masud Chand
This case revolves around Nurul Rahman, a DHL Bangladesh (DHLB) manager who must recommend which of the two human resource information systems (HRISs) DHLB should adopt to alleviate the escalating workload on its human resources (HR) department. The choice between these systems is difficult: the HRIS favored by regional headquarters is significantly more expensive and likely unsuited to DHLB’s unique needs, whereas the HRIS favored by DHLB—although likely effective—seems to be incapable of meeting headquarters’ strong preference for streamlining human resource systems across disparate Asian subsidiaries. Rahman must carefully
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These were: (1) sales, (2) customer service, (3) ground operations, (4) air operations, (5) marketing, (6) finance, (7) human resources, and (8) information technology. The first four functions were often referred to as “frontline” departments, whereas the latter four functions were called “backline” departments. The frontline departments interacted with customers on a regular basis and were supported by backline departments who provided ancillary services. Most of the increase in DHLB’s employee base had occurred in the frontline departments. In contrast, the backline departments experienced a considerably harder time getting approval for their requests for personnel increases. Rahman recalled:
In 2000, DHL Asia had implemented a regionwide cost management program. An important aspect of that program was to reduce backline costs. Consequently, recruitment for backline departments was frozen, and any new hiring for these departments had to be approved by the regional HQ. In fact, the costreduction initiative was so vital that DHL subsidiaries needed regional approval even if they wanted to fill vacancies created by retirements or turnover. There had been instances where such replacement hiring had not been approved by the regional HQ.

A subsidiary of privately held DHL Worldwide Express, DHLB was a pioneer and the acknowledged market leader in the “air express” industry in Bangladesh (see Figure 1 for DHL Worldwide’s organizational chart).

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