SUPPLEMENTAL CASE: Chapter 2

Case: Xerox Focuses on HR

Xerox is a widely known firm worldwide, but it has been through numerous crises
in the past decade. In fact, at one point several years ago, there were questions
about Xerox surviving as a firm. But no longer. Under the leadership of Anne
Mulcahy as CEO, Xerox has rebounded. Numerous strategic business and
financial decisions had to be made, including reducing the workforce by 30,000.
But Mulcahy also stressed that HR had to become a more strategic contributor.

One of the actions taken was to consolidate a number of HR functions from

different business units into a corporate HR Service Center. This center performs
many administrative transactions, and has added Internet-based systems to
make HR services more accessible to managers and employees.

To track employees’ views on the company and HR, employee surveys on the
company intranet have been used for several years. Areas at which lower scores
were recorded have been addressed by HR staff and other managers. The
survey results have led to another primary focus at Xerox: employee retention.
With all of the reductions and organizational restructurings, keeping the
remaining employees, especially high-potential ones, has been a continuing
emphasis. Xerox has invested significant time and resources into training and
development of its employees, an important retention factor. Greater use of e-
learning, technology, and leadership development have paid off in reducing
turnover and convincing employees that career opportunities exist at Xerox.
Continuing competitive pressures are presenting new challenges for Xerox and
its HR staff. The strategic importance of HR has been demonstrated in the past,
and looks to be a part of the firm’s future.46

Questions
1.Discuss the challenges faced by HR management when significant staff
cutbacks occur and how they should be addressed.
The functionality of Human Resources is always changing to
meet the ever evolving needs of an organization. Staff cutbacks
can leave the surviving employees feeling demoralized, bitter,
angry, and in shock. One role of Human Resource Management is
to act as an employee advocate. In a time of workforce reduction,
communicating with employees is important.

2. Use of technology, employee retention, and HR development have been

at the core of HR becoming more strategic at Xerox. Why have those areas
been so key?
When Xerox decided to downsize, the function of Human
Resources became environmental scanning strategic planning.
The restructuring goal however, included more than just a
reduction in force. It was determined that the Human Resource
entity needed to be streamlined and become a more efficient
part of the organization. As a result, the use of technology, and
maintaining employee retention was the core that developed HR
into a more strategic part of the Xerox organization.