Black & Decker - Eastern Hemisphere and ADP Initiative - Case Study Example

?Black & Decker - Eastern Hemisphere and ADP Initiative Case Table of Contents Table of Contents 2 What Are Lancaster’s Concerns about the EasternHemisphere Organization? Will ADP Address Those Weaknesses? 3 2) What Concerns Do Asian Managers Have About ADP? How Substantive Are These Concerns? 4 3) What Action Should Lancaster Take and Why? 6 Bibliography 8 1) What Are Lancaster’s Concerns about the Eastern Hemisphere Organization? Will ADP Address Those Weaknesses? Bill Lancaster, the President of the Black & Decker-Eastern Hemisphere was facing a critical scenario which required addressing. Black & Decker had received commendable successes in the Europe and North America but had been deprived of similar level of success in Asia as well as Latin America. Also, they faced certain challenges in these regions. Bill Lancaster, after his appointment as President in October 1995, wanted to set things right in his region i.e. Eastern Hemisphere. Bill Lancaster had certain concerns with relation to the Eastern Hemisphere organization and wanted to acquire a clear understanding of the scenario by discussing and seeking views of the existing employees and members of the Management Advisory Council (MAC). His prime concern was the fact that he found significant disparity in the ‘management styles’ that existed in the region. He found that certain managerial styles emphasized on employee empowerment whereas, others belonged to old authoritarian method. From his observation he felt that a few managers were bad managers. The other aspect was related to the growth and development of the people as he felt that in this region quite a few people were stagnant in their position. The other crucial matter of concern was with regards to existing process of management assessment as well as development system. They followed MBO-type system which had been discarded in the US a few years before. Bill Lancaster observed that these concerns required immediate addressing in order to not only increase the organizational growth in the Eastern Hemisphere organization but also to instigate human resource growth and development. Appraisal Development Plan (ADP) was first introduced in the Black & Decker in 1992 as a replacement method of appraisal to the existing MBO (Management by Objective) plan. ADP method of appraisal was observed to be one of the best tools available to provide employees with set goals and career plans similar to MBO process. The added benefit that ADP provided was that it was undeniably superior to MBO in guiding people towards growth prospects. The ADP plan followed six steps appraisal process which was in line with the 3600 appraisal method. This plan worked as immense aid for a manager as they were provided with the feedback about a subordinate who was reviewed by his peers and also by himself. It helped to reduce the burden of evaluation of an employee by a manager and also it provided a varied perspective towards an employee which in the long run helped in building leaders for the future which was greatly required in the Eastern Hemisphere organization. Thus, ADP had undoubted potential to develop people which was a major weakness in the organization. 2) What Concerns Do Asian Managers Have About ADP? How Substantive Are These Concerns? In the US, there was certain skepticism with ADP. The concerns were regarding its acceptability among the employees other than the senior level. It was also thought that the 3600 feedback process will give rise to biasness as popularity of an employee with the managers of would play a major role in getting a good review. The enormities of the process of collecting as well as processing of the feedback were also a major concern. The process was also thought to be devoid of providing any reward for a job done well by an employee. These concerns that were quite substantial in the US were seen to be raised in some form or the other among the Asian managers. The concerns among the Asian managers were that Asian people were generally thought to be averse from criticism as well as praise. They also were reluctant to open up their views and thought alike the Americans which had a potential to create a hindrance in the appraisal process. The other major concern was regarding the confidentiality of the feedback process as Asians were extremely disinclined in believing in the anonymity of the entire appraisal process. It was thought that if an employee got to know about the colleagues who provided feedback in the rating process which at times may be pessimistic then it could lead to negative consequences in the organization. The culture that was prevalent in Asia and also was a concern against the initiation of the ADP as it was observed that Asians did not support any radical changes and could oppose such initiation. The language of the ADP booklet was considered as a concern as even if they were translated to the local languages that were known by a majority of the employee but still there was concern regarding the change in the translation which could even lead to the changing of the entire meaning of the appraisal form. Though ADP was primarily planned to build commitment as well as develop managers, there was a fear that this process might backfire if people were pressed hard to come out of their comfort zone and open up. Capability of ADP to develop people in the country offices was also a significant doubt among the Asian managers, as general thinking was that there was quite less opportunity to develop in those offices compared to the headquarters. Time and the paper work that would be required to complete the entire ADP feedback and the cultural barriers were the other roadblocks in the path of successful ADP implementation according to the Asian managers. In light of the overall observation of the Asian managers it can be said that their observations were quite substantive. The Asian managers were quite abreast with the mindset and the working culture of their employees. Their point of view about the difference in culture between frank and open culture of the US and the quite submissive and loath culture in the Asian region is undeniable. 3) What Action Should Lancaster Take and Why? ADP was planned as tool to develop people, build an extremely functional and high performance team. It also had the capability of encouraging people to not only work together but also to build one another. These aspects were desperately required in the Eastern Hemisphere organization and were gravely missing. In spite of the several detractors that were put up by the Asian managers it can be said that Bill Lancaster should go ahead with his conviction regarding the implementation of ADP. The benefit that can be derived from ADP out numbered the difficulties. In the Eastern Hemisphere, the prime requirement was related to the development of people and also the development of capable managers who can take the organization forward in the ensuing global competitive environment that the organization was bound to face. Though the ADP would mean a substantial expense from the perspective of training and development, there was a need to implement it ahead of any thought of business growth through building sales and development of the organization in external marketplace. The successful implementation of ADP can in turn have the ability to bring in future success and growth which can be brought about by a capable manager. The best way forward can be the hybrid ADP proposed by Anita Lim, the Human Resource Manager. This process can be identified as the conservative way forward for the organization ahead of the other two options available to Bill Lancaster. As Anita Lim being an Asian manager was quite used to with the culture and viewpoint of the Asian people, she held the best position to suggest the most suitable way forward for Eastern Hemisphere. Therefore, Bill Lancaster after weighing up all the possible solutions should look to go ahead with hybrid ADP and ensure that Eastern Hemisphere comes out of their existing scenario related to bad managerial capability, and lack of growth of people and development. Bibliography Morrison, Allen & Black, Stewart. Black & Decker-Eastern Hemisphere and the ADP Initiative (A) Ivey Management Services, 1998. Read More