Part 3: Executing Scenario You are having several challenges on this project. Bi
ID: 378467 • Letter: P
Question
Part 3: Executing Scenario You are having several challenges on this project. Biotech, Inc. originally focused on developing drugs to help fight diseases, but the new CEO, Justin, has emphasized the need to increase profits by tapping into other markets, including genetically modified foods and fuels. The types of people who work on the former market are often very different from people working on the latter markets. They often have different educational backgrounds, skill sets, and values. Most of the people hired in the past year have been hired to support these new markets. Even though Anna and the Resource Management System Project team tried to do a good job managing key stakeholders, they are having difficulties with several employees who disagree with the company’s new marketing strategies. Just a month into the project, several senior managers in the research and drug-related departments have voiced their opposition to having a centralized system and process for hiring people and managing benefits and compensation. A few very vocal managers said that they would continue to hire and manage their resources their way no matter what. It has also been difficult collecting data on how resources are currently managed throughout the company and gathering firm requirements for the new system. Most HR system providers sold several different modules that provided different functionality, and you wanted to make sure you purchased only what was needed. Anna also knew that it was best to try to minimize the need to customize an off-the-shelf application. Many people felt that any centralized system would stifle their creativity and force them to work in a bureaucracy, so they were not open to sharing information or providing feedback as you try to gather requirements and existing data.
5. Given the new information, update your list of risks. Identify the “top ten” risks and describe potential strategies for managing them.
Explanation / Answer
Top risks in the situation
1. Conflict between employees from different lines of business regarding issues like compesation, performance evaluation and growth prospects.
2. Formation of groups leading to deterioration in the team effort.
3. Rising employee dissatisfaction.
4. High employee turnover. Paricularly high performers.
5. Hampering of creativity, motivation and innovation among the employees.
6. Rise of power groups,leading to organizational politics. Shift of focus from productivity to vested interests.
7. Overall deterioration company'c culture.
8. Rising bureaucracy and lack of work freedom will make the performrs frustrated.
9. High cost of litigation and damages.
10. Hampered productivity and lowering of profits and market share.
11. Deterioration of company's overall reputation in the business environment.
To avoid the possibility of these risks to materialize, there must be separate systems for hiring, training ,job designing, performance management, appraisal and other HR functions for the new entity. It would not be advisable to disturb a winning combination and a system that is doing good. The new line of business should be brought in with exclusive HR system. The only common thing should be the ethos and culture of the company.