Case Study 5: DHL Bangladesh 1. This case reveals the advantages and disadvantages associated with a matrix structure. DHL benefits from its matrix structure by being able to effectively handle various pockets of business through specific output groups based on geographic settings. This allows DHL to capitalize on the diversity of business opportunities available to them.
By implementing a matrix structure, DHL is able to keep the various divisions of its business focused on providing optimal service to each geographic region. This structure enables a leadership support system to oversee each division and ensure a unified management system, guidance, and leadership are in place for all sections of the business. Additionally, the matrix structure allows for a check and balance process to ensure that DHL establishes the most effective overall company structure.
The drawbacks of the matrix structure include each business section having its own agenda, processes, nuances, and strategies, which restricts their ability to adapt and collaborate. For example, DHLB would need to modify its HRIS from the DHL Pakistani system to use it. Additionally, this structure can create improper alliances with positions of power, leading to limited communication and fear of backlash when providing feedback or opinions.
The flow of ideas and best practices is hindered by the matrix structure, as it confines each party within their own circle.
For Nural, the advantages and disadvantages of three options are identified: (1) proceeding with DHL Pakistan’s HRIS, (2) proceeding with a local Bangladesh vendor, and (3) negotiating with regional HQ.
A. Proceeding with DHL Pakistan’s HRIS – The advantage of this option is that it would allow for all of DHL to operate under one system, thereby streamlining the support team. This is in contrast to having teams spread out across the organization to handle various HRIS systems.
The drawback is that the company would be dependent on the support and engineering services of DHL Pakistan. The other groups would lack the ability to hold DHL Pakistan responsible for any changes or deadlines as they would be able to progress at their preferred speed. Although using a local vendor would be significantly cheaper, the level of support provided would be much stronger. B. Choosing to work with a local vendor in Bangladesh – Opting for a local vendor in Bangladesh would cost five times less and offer greater support potential compared to engaging with DHL Pakistan.
The process of assembling the modification modules would be faster compared to using DHL Pakistan. However, this option does not offer a global solution. On the other hand, negotiating with regional HQ would result in a lower price for the HRIS system and enable Nural to safeguard his reputation and career advancement opportunities. The downside is that he would not have the chance to fully voice his concerns about having to make compromises with regional HQ.
The advantages and disadvantages listed in the question above can be ranked in terms of their potential for solving DHLB’s problems and political importance from the viewpoint of DHLB and regional HQ. In order to provide a more detailed analysis, it is important to consider the perspectives of stakeholders such as Nurul Rahman, DHLB’s HR department, Mr. Saha, and DHL Pakistan. When it comes to potentially solving DHLB’s problems, opting for a local Bangladesh vendor would be the most practical solution. This approach would not only benefit DHLB’s HR department but also give Nurul a sense of ownership.
However, Mr. Saha believes that DHL does not offer a standardized system for the entire enterprise. According to him, implementing DHL Pakistan’s HRIS solution would be suitable, but it would necessitate increased resources from the IT department to support and make changes to other areas’ HRIS systems. Negotiating with regional HQ is not a priority for solving DHLB’s problems. While it may be important to Nurul, he should consider the company’s benefits.
As Nurul Rahman, my recommendation would be to remain steadfast in my beliefs and propose opting for a local vendor in Bangladesh, along with a plan to implement this solution globally. Seizing this opportunity would enable Nurul to demonstrate his astute analysis and business acumen in comprehending the functioning of his company alongside others. Although embarking on this career advancement entails considerable risks, deciding otherwise would constantly trouble him and ultimately lead to dissatisfaction in his career.
This decision would reinforce the protection of DHLB by avoiding the adoption of a solution that would not serve their best interests. The foremost priority is to secure a cost-effective HRIS solution with a suitable support structure, as well as the ability to customize it for their group. It is also important to consider aligning DHL groups, especially with vendors that have established relationships and offer low costs. In this case, the vendor can create the solution for other sites, while the Pakistan resources can provide assistance in implementing and developing global solutions.
