Question

Instead of relying on local agents, DHL prides itself on having its own staff of around 350,000 people across the globe. What are the merits and drawbacks of this international staffing approach?

You are required to provide a detailed answer (at least 200 words) to the above questions.

Answer 1

Answer: Staffing, particularly at the international level is a complex thing. The strategy of DHL to rely on its own staff instead of relying on the local agents and this strategy has its both merits as well as drawbacks. The first merit of having the own staff is that it enables the company to get work done in line as per the organizational philosophy and culture. Having own staff enables the companies to create a uniform working cultures and values and make the workers act accordingly. The second advantage of having own staff is that DHL can develop in house knowledge and maintain its trade secrets and intellectual property intact. The third merit that having the own staff is that the company has a larger control on the employees and business operations as compared to having local agents.

But at the same time there are certain disadvantages also of this system. The first disadvantage is that it is costly to have own staff members as the company need to pay them full time while the agents may be hired as and when required. Having one’s own staff also involves paying higher perks and pays as compared to local agents. Another demerit is that the responsibility of the company towards the own staff in terms of things like training and development is higher.