AP Moller Case Analysis Summary

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A. P.

Moller-Maersk Group:
Evaluating Strategic Talent
Management Initiatives
JELLYFISH GROUP
Joko | Jul | Resi | Richard | Sondang | Syaiful

Brief History

The A.P. Mller-Maersk Group was founded in 1904 by Arnold Peter Mller and
his father, Captain Peter Maersk Mller

Headquarter : Copenhagen, Denmark

The largest company in Denmark, and operates in 130 countries with nearly
110,000 employees

Maersks total market capitalization was $28 billion (As of December 31, 2011)

Comprises over 100 companies

Core business : One of the largest container shipping businesses globally as well
as oil and gas exploration and container terminals operations

Revenues : Container business (40% of revenues) operates 2.5 million twenty


foot equivalent units (TEU )

Transitioned from a family business to a global conglomerate

Problem
The global recession in 2008 had negatively impacted both Maersks top line and its
returns; however, operating results had since improved, and Maersk earned record
profits in 2010.
In recent years, Maersk had seen a rise in its unusually low historic employee turnover
rate. And, Maersk had experienced a notable change in its corporate culture because
of transition.
In particular, Maersk was experiencing five notable talent challenges.

Employee Turnover

Training and Development Program

Hiring

Rehiring former Maersk employees (Boomerangs)

In increasing diversity how to creating an Inclusive Culture ?

Growth has posed a daunting challenge to Maersk's talent management infrastructure.


Their shifts in strategies have revealed their strengths and weaknesses as a global
conglomerate but they were still faced with the question

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Recommendation

Retention & Development


o

Retention should be synced with Development (pre 2003 era)

Facilitate "Talent Intimacy"

Integrate actions out of the 5 talent management areas as part of the


strategy to improve retention

Leadership and development coaching to support upward movement

Rehiring
o

Exit Interview provide employers with the opportunity to gain candid


feedback and provide employers with information as to how the
organisation compares with other employers who recruit from the same
talent pool.

Develop a tracking system to keep touch with key employees that have left
to further their development to ensure they return and can contribute
positively to the firm

Hiring/Integration
o

Establish external and boomerang hiring quotas with a criteria


(background, experience, leadership qualities) to smooth intake and
transition into the organization.

Improve the On boarding experience for external hires. (Look at the


changes in communication styles, culture, processes)

Establish Bi - directional mentor-ship programmes to facilitate knowledge


transfer and ease of integration

Initiate Orientation programme for new, external hires highlighting work


processes, tacit knowledge inherent to the organization, deeper insights
into organizational culture - norms, language, heros in the organization

Culture
o

Develop informal mix of heavy/light task related programmes that will


facilitate employee mixing to build relationships.

Conduct Culture Assessment to understand the explicit and tacit facets of


the organization's culture to inform the Talent management Strategy.

Conduct cross functional and departmental training exercises to drive


integration and greater sharing organizational values

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