Coloplast a/S Organization Challenges in Off-Shoring

Coloplast A/S organization challenges in off-shoring Name: Houssam Khawajkyia Date: Friday, July 18, 2009 Executive summary Coloplast, an international company which specializes in developing, manufacturing, and marketing medical devices, implemented an off-shoring strategy in order to be different, stay competitive and meet the dynamic market needs. In implementing this strategy, Coloplast had several issues and the first was the organizational structure. Due to changes in the organizational structure of its Danish and Hungarian production plants, misunderstandings arose between employees which resulted in serious of organizational and managerial challenges. However, the management resolved these differences through†¦show more content†¦An initial plan to train the Hungarians employees in Denmark failed due to complications arising from Danish unions. However, this challenge was solved through Danish employees training their fellow employees at Hungary, Tatabanya (Nielsen, Pedersen, Pyndt, 2008). Knowledge management was also affected by a difference in the organizational culture of t he Hungarian employees and Danish employees. Since Hungarian employees had worked in multinationals which had different organizational cultures, some employees tended to act passively or simplify instructions excessively. This made the Hungarian workers’ skills to be underestimated and it also created some misunderstandings. Danish workers could also not learn useful skills from their Hungarian counterparts due to this challenge. Employee motivation and communication When the management at Coloplast formulated plans to relocate to Hungary, this posed a threat to employee motivation. This is due to the fact that many employees become de-motivated whenever there are imminent changes in an organization due to opposition to organizational change. The Coloplast management recognized this fact and ensured that all employees had access to information about the impending relocation in order to reduce anxiety among them. The management was honest and open about the forthcoming relocation, and it ensured that it obtained feedback from