OPPapers.com

Degrussa: Strategy And Human Resources In China

Case questions:

Q1. How would you characterize Degrussa’s staffing practices?

Degrussa AG, a German-based chemical company underwent a rapid strategic transformation during early 2000’s. Degrussa’s Chinese operation came into being as part of its Global strategy and Degrussa anticipates high-flying performance out of it and is putting forward a proactive approach in its staffing.
Degrussa’s Chinese Operations used polycentric staffing approach to start with. Degrussa established itself as the most attractive employers in China, drawing up the exceptionally qualified young Chinese. These people were to be groomed to take up the key management positions in its China Operations while Germans held key positions in the Corporate Headquarters. Possibly this was to obviate the cultural myopia as well as to achieve a low cost value creation. Since Degrussa wanted to accomplish its objective of high productivity and profitability, it was prepared for geocentric policy. The idea was to take out the creams from its China operation , carry out Management developments on those with exceptional potential and outstanding performance track records and offer the leaderships opportunities internationally (though within Degrussa’s global network of operation). The development inputs included off the job training like China Top Program and On-the-job training like working cooperatively across organizational boundaries.

This was to attain its long term goals though:
• Best utilization of human resources
• Reduce cultural myopia
• Leverage transfer of core competencies & experience curve effects
• Enhance local responsiveness.

So, Degrussa was adopting polycentric policy initially that was soon proactively upgraded to geocentric policy.

Q2. From a management development perspective, what is Degrussa trying to achieve through its China Top Program?

Hiring of best of the resources cannot always guarantee outstanding pay off; the resources have to be developed for...