Summary of the key issues Becton Dickinson (BD) is a large family-owned corporation with headquarters in New Jersey that emphasizes healthcare and diagnostic devices. Founding in 1897, BD has established its reputation based on a paternalistic human resource philosophy, e. g. never fires anyone, and rewards loyalty. Things had changed when Roger Kern was appointed as the vice president of human resources in 1981. He created a first-class traditional HR function at BD that focused on education, compensation, benefit and other key HR functions.
In the late 1980s, despite these substantial changes, problems began to surface. More and more employees complained most HR programs and functions were “less than effective”, “not realistic enough” or “unresponsive to particular needs’, and many managers began to sense that Kern had failed to assemble a strong business-oriented staff of corporate HR professionals. At the same time, economy recession, declined sales and troubles encountered in BD’s business had led to a dramatic corporate strategy change.
Besides cost control and head count reductions, giving up its ambitious acquisition and over-extended policy, BD has become more focus on its core and basic strengths-healthcare business. Meanwhile, BD’s top management realized that Kern had not put in place an HR infrastructure that adequately supported new business strategies- “the role of human resources changed. ” In 1987, BD introduced the concept of strategic human resource management (SHRM) and defined it as a way of thinking about business and people and how to bring about organizational changes to improve performance.
The Business plan on Pearson Custom Business Resources
Carrefour is global brand whose market edge is ideal. The supermarket chain is revered across the world. It is keeping this in mind that such a brand should always seek to have and maintain this success; key aspect would be to ensure that all their potential customers are reached wherever they are in the globe. One of the ways to ensure this is achieved would be the indulgence of information ...
In October 1988, Kern left BD and Jim Wessel had been appointed as the new head of HR because the top management knew that he understood business strategy and had ample experience. Soon after Wessel assumed his position, he fell into two broad categories: identification of major human resources issues at BD and assessment of the corporate HR function. He solicited views from key managers and interviews were conducted with top management. Then, he must make his decision about what to do next. 2. Specific recommendations
If I take the position of Wessel, based on the internal and external environment and the findings from the outside consultant, BD’s managers and executives, first, I can draw three conclusions as below- First, BD’s HR function should be reshaped. In this time period, HR people have not been uniformly involved in strategic planning. They do not have enough understanding of BD’s business and the process of strategy development. Or, they do not have the awareness of an appropriate standpoint about the partnership between HR and business unit.
The linkage between the HR function and BD’s business units is so weak that they do not know what the counterpart is doing. Managers of business unit do not know what to expect from an HR person. Along with the head count reduction, it seems that HR function has turned back to regular operation, administration and policy development. More importantly, HR person lacks confidence and proactive stance, business knowledge, and analytic and process skills necessary to fill consulting role. Next, organizational development has come to a standstill.
There was nothing in place at the point of entry to permit tracking of high potential individuals, no selection or monitoring system, and no program to identify high potential individuals. BD failed to systematically develop broad-based managers. Managerial skills need to developed in line managers; little cross-functional movement; people tie up key positions; lack actions to overcome problems; insufficient teamwork; lack enough capability to staffing talent. Last, the compensation and benefit system should be improved to match the corporate strategy.
The Essay on Problems in Setting Up and Running a Business Unit
A business unit, sometimes called a strategic business unit or SBU, is a segmented group or department within a company that focuses on reaching a specific market or client. It may also focus on achieving a specific goal for the organization. While some businesses find success with this strategy, there are concerns and potential problems to consider before trying it at your company. Finances In ...
Benefit programs were still in a piecemeal fashion, without an overarching strategy to link them to each other or to larger organizational goals. Individuals were still compensated on their contribution to the achievement of local goals. Merit controls too centralized and rigid. Based on above judgment, related actions could be- First, build a business-strategy-oriented HR function team and working principle. Just like Wessel, I will add a new position to the corporate HR staff, director of organizational development, and this person should thoroughly understand business.
Meanwhile, I will shift the director of compensation and benefit to a new leader with the same qualification. Considering the lack of business knowledge and awareness, I will initiate a comprehensive HR leadership program. In this program, those HR employees, who have potential but without business experience, will be assigned into non-HR operating divisions to attend a job rotation. In addition, I will invite outside HR professional consultants to provide training about how to change mindset and be a successful partner with business units. On the other hand, HR people must be involved in related business planning.
HR people in business unit should attend the weekly, monthly and quarterly business operation staff meeting to gain first-hand information, and co-work with line managers to solve their problems on site. HR people in headquarters should have a keen understanding of requirement from the management team, understand various needs of the diverse business units, and correct, bring in new programs and processes accordingly. A very important change is the HR performance appraisal system. HR people will be assessed by the group to which they provide service, and their performance evaluation will come from business unit.
In a word, the HR function should be a partner of business units. Second, the new director of organizational management will transform the existing management development programs to match the current corporate strategy. The company are undergoing dramatically change. The first strategic change is focus. Focus implies that, comparing with competitors, BD needs more professional talents, more innovative products and more efficient processes. That means BD must set up a knowledge-based employment environment, and this type of HR management involves heavy investment in training and development, employee autonomy and participation.
The Business plan on Starting A Business People Plan Money
Introduction More and more people are beginning to open their minds to new business ventures. It seems like it is becoming the popular move. By opening a business there could be huge profit to be made, depending on the market. On the other hand, there are risks and losses that may occur as well. It is said that there are two reasons why people start a business. The first reason is because they ...
I will develop a program to identity and develop high potential employees in a systematic and structured way. Training curriculum would be redesigned to satisfy managerial skills training first, and then expend to specific professional areas which could be related to the current working environment directly. Cross-function movement will be encouraged. Once a manager has stayed in his/her position for three years, HR function should consider the position transfer. Last, then new director of compensation and benefit should revise a new regulation. Another corporate strategic change will be global expansion.
In fact, going global is the inevitable result of business focus. However, that means BD should develop the capacity of operating in a worldwide team. Teamwork could be a tradition and the compensation should encourage teamwork spirit and have a clear relationship with the whole corporate goals. In addition, going global also implies that BD will face more diverse business environment and employees. In some countries there may have special culture and working habits. So, merit controls could not be too centralized and too rigid. We must consider various conditions and ready for prompt adjustment. 3. Rationale for recommendations
The BD case is a classical example to show the difference between traditional HR and strategic HR. First, strategic HR requires HR people become a partner with senior and line managers in strategy execution. HR would conduct an organizational audit to help managers identify components that need to be changed to facilitate strategy execution. That will be HR people’s first priority. HR function must ensure that he/she has a keen understanding of corporate strategy and business unit operation process. As such, along with the co-work with line managers and using professional HR knowledge, HR people could be very helpful to line managers.
The Essay on California Public Employees Retirement System Corporate Governance Policy
California Public Employees Retirement System corporate governance policy CalPERS strongly believes that each market throughout the world should adopt corporate governance principles that are appropriate for that market. Ideally, these principles should be developed by the markets participants themselves, through cooperative action and consensus What is CalPERS? The California Public Employees ...
Second, HR people should become an expert in the way that work is organized and executed. That is why I would require outside HR consultants train my HR employees. We should use technology and knowledge to ensure the work gets done effectively and efficiently. Third, HR people should become a champion for employees, working to increase employee contribution and commitment to the organization. HR professional are held accountable for ensuring that employees are fully engaged in and committed to the organization. Sometimes HR people should represent employees and be their voice.
When HR team designs a program or process, its members should hear employee’s voice. Last, HR people should become an agent of continuous transformation that shapes processes and culture to improve an organization’s capacity for change. In this case, under the lead of Wessel, HR function team should take the responsibility to help BD plan for and overcome any resistance to change. In general, HR function team should focus on the how to ensure the implementation of corporate strategy and how to deliver value-added actions to improve corporate performance as a whole. It should not be limited within a traditional regular administrative role.
