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BLACK & DECKER-EASTERN

HEMISPHERE AND THE ADP


INITIATIVE (A)
Submitted by:Group 3
Pratham Garg
Nisha Yadav
Jinesh Rambhia
Ashish Bhalotia
Vikalp Agrawal
Girishma Baghmare
About Black & Decker
● Founded in 1910 by Duncan Black and Alonzo Decker
● Headquartered in Towson, Maryland it had sales offices in 109 countries
● Manufactured industrial machinery
● Had patented a drill with a pistol grip and trigger switch which revolutionized
the power tool industry
● In 1993, there was major reorganization in operations with international group
splitting into Latin America and the Eastern Hemisphere
● Bill Lancaster is the president of Black & Decker-Eastern Hemisphere
● Power Tools was largest single business and represented the “Spiritual heart”
of the company
● Purchased DeWalt for large stationary tools, including radial arm saws
Bill Lancaster Anita Lam
● Appointed as President of Black and ● Asia's Human Resource Manager
Decker Eastern Hemisphere in October ● Opposed to the introduction of ADP
1995 plan
● 1990 to 1995 - Vice President ● Had been with Back and Decker for six
Marketing and Sales, Professional years
Products for the North American Power ● Challenges the confidentiality of the
Tools group ADP system
● 1988 to 1990 - Senior administrative ● Thinks change from MBO to ADP would
positions be radical
● Risen from an entry level human
resource position to one of
considerable authority in Asia
Appraisal Development Plan (ADP)
The entire process is from November 1st till end of February

The appraising manager The manager and This agreement is them


reviews all the forms employee meets to summarized in a shorter
Employee to be and prepare a formal discuss the final report report
evaluated iEmployee to assessment of the • Then they formulate • Which also includes
Appraising manager Appraising manager
be evaluated is asked to employee performance objective, comments from the manager,
requests inputs from 3-6 requests inputs from 3-6 measurement criteria and manager’s boss and the
perform and submit a • Considering 14 different
peers of employee to be subordinates of the weights, and future career employee
self reviews asked to performance dimensions
evaluated employee • Then destroys all the peer
development plans on mutual • The forms are them saved
perform and submit a agreement in writing with HR department
self review and subordinate reviews
Management By Objective (MBO)
● Jointly establish clear and comprehensive objectives for the subordinate for the
coming year
● Late 1980s, half of the Fortune 500 companies were using MBO-type systems.
● System in which superiors would meet individually with each subordinate to discuss
the performance
● Managers were encouraged to have at least one interim meeting with subordinates
during the year to review progress and provide coaching
● Not used for joint goal setting only as a simple performance evaluation instrument
in Eastern Hemisphere
● Does not seek any input from others in the organization
● Jointly establish clear and comprehensive objectives for the subordinate for the
coming year
Major Concerns

● Major disparity in management styles within eastern hemisphere


● Difficulty in Organisational strategy execution at lower levels due to various
management styles
● Lack of growth opportunities for staff members as quite few people were stagnant in
their position
● Existing Process of management assessment and development system
● Asian Managers have concerns regarding the culture,language barriers and
heterogeneity of the region and lack of opportunities for growth
● Difficulty in changing the working style of various managers after ADP implementation
● Culture and Language barriers of the Asian countries as compared to the US may
cause problem in ADP implementation
Way Forward

There were 3 options in front of Lancaster to move forward :


1. To do nothing – the cultural gap between East and West was so great that ADP should
be put on hold and they should just stick with what they were already using.
Implementing ADP would require a huge effort that perhaps would be better spent
building sales and focusing on figuring out the external market place.
2. To go ahead with Lim’s hybrid ADP – Lim understood culture better than Lancaster. By
moving forward more slowly, ADP could evolve over time. Iterative changes are always
less threatening. Stepwise introduction of ADP was a good option as it was difficult for
a single program to function in such a diverse part of the world.
3. To go forward full speed with ADP – Lancaster’s logic was impeccable. The region
clearly needed shaking up. There was a need of a new high performance organizational
culture. ADP was the best tool as he wanted to hire and support the type of employee
who embraced rather than shunned change.
Recommendation

● For making the ADP process effective, the employees need to be trained
well beforehand
● The company need to spend additional cost for employee development
wherever necessary
● Also, if the new ADP process is followed Lancaster will face some cultural
challenges
● A hybrid of MBO system and ADP system is recommended for smooth
transformation to ADP system
● This will ensure gradual change and also some changes can be made
accordingly
Thank You