Case Study5000: “A Team at the Crossroads”1ORGANIZATIONAL CHART–HUMAN RESOURCES/ABC INCABC Inc., Insurance Company –3rd largest insurer in the U.S.
Executive Vice President (EVP) of Human Resources & Legal Divisions•
Mary Johnson is the head of both divisions
•Responsible for organization-wide Human Resources (6,500 employees)•40 years old•10 years with company•
B.S. in Human Resources, M.B.A. &J.D.all from Notre Dame•4direct reports (3 VPs in Legal and 1 VP in HR) including an administrative assistant Mike–Vice President(VP) of Human Resources
•48 years old•12years with company
•B.S. Business Webster University & MA in Human Resources from University of Illinois
•1direct report (3 dotted line) including an administrative assistant Sharon –Assistant Vice President(AVP): •Oversees all daily HR functions•9months with company•34 years old
•B.A. & J.D. from George Washington University
•3 direct reports including an administrative assistant [Director position currently vacant]
Arelene- Senior Manager
•Compensation, Benefits& Payroll•8years with company
•43 years old
•B.S. Accounting/CPA &M.B.A. from Indiana University
•25employees/including supervisors
Deb -Senior Manager
•Talent Acquisition & Succession Planning•2years with company
•28 years old •
B.S. Economics & M.B.A.from University of Texas-Austin•20employees/including supervisors Joanne–Senior Manager
•OD & People Development•6years with company
•47 years old
•B.S. Psychology &M.A.in HRD/OD from Pepperdine University
•28 employees/including supervisors
Case Study5000: “A Team at the Crossroads”2
Issues•
HR Organizational Survey Results (to date):
O Department climate is seen by employees as deteriorating.
O Employees are unclear of the department’s direction even though they get the job done. Specifically, employees view the department as dysfunctional with in-fighting, paranoia, turf battles and power struggles among the senior managers and higher-level professionals. Employees are afraid to give their opinions if they’re in conflict with their bosses.
O Leaders are not leading. They seem oblivious or just don’t want to deal with problems.
O Sharon is new. And, while viewed as smart and competent, she is also perceived by HR employees as abrasive, egotistic and punitive. She comes across as being there to “shake things up. ”Employees do not like her. Some senior managers play politics for survival; they’re afraid of being on Sharon’s bad side. The senior managers are becoming more micro-managing in an attempt to avoid making any mistakes.
O There’s a lot of pressure and anxiety among the professional and administrative staff.
O After almost two years of declining survey results, Mary Johnson, the EVP, is becoming concerned. Mike explained he needs another year to accomplish his goals. Mike told Mary that change, while disruptive, is necessary to transform the department from “an entitlement mentality to being performance-focused.”Mike further explained HR must be able to support the aggressive direction ABC has planned, and must become “best-in-class ”to accomplish this. Because Mike has a successful record of accomplishment, and is well thought of, Mary agreed to give Mike one year to turn things around before intervening. Mary told Mike that the CEO & the Board expect to see improved survey scores next year and will hold Mary and her entire HR management team accountable. The CEO & the Board further emphasized to Mary, the company’s aggressive expansion plans over the next three years.
•20% turnover last year & 24% turnover to date:(12-15% is typical in the industry)
O A mix of tenured as well as newer employees. Some transfer to other areas of the company and some just leave.
•Weekly management meetings
O Upon joining the HR team, Mike turned over responsibility for the weekly management meetings to Sharon who-▪Sets and sends the agenda to the management team (managers & supervisors).▪Chairs each meeting.▪ Receives updates from the managers and sets action plans.
•Mike:
O Hired Sharon based on her legal, HR and project management background, and recommendations from industry peers.
O Believes that Sharon, although tough, is making a difference in the efficiency, professionalism, and productivity of the department
o Meets with Sharon monthly to review department objectives and projects
o Has not said anything to the senior managers, but believes they have not been managing their staff & projects as effectively as they should. Specifically, the managers have not set challenging expectations and have not held employees accountable. Because ABC wants to move aggressively in the next 3 years, Mike worries that the department may not succeed with the existing managers and staff. Mike’s vision for HR, which he has shared numerous times with all HR employees is to be “best in class.”
•Sharon:
O Staff attorney for four years at a prestigious law firm.
O Spent 5 years as a senior corporate lawyer for a large bank before moving to ABC. The bank was bought out by an international firm and wanted her to transfer to England.
Believes she has a knack for creating a solid team of top professionals.
O Wants all members of the management team to succeed, but will not hesitate to get rid of those who can’t meet new and demanding expectations.
O Was told by Mike when she was hired that ABC will seek aggressive growth in the coming 3 years and therefore needs a best-in-class HR function. Mike told Sharon she has a green light to do whatever is necessary to “get us to where we need to be.”
O Really likes Deb and believes she has the most potential, but has kept this to herself.
Arelene:o
Thinks since he hired Sharon, Mike is an ‘absentee leader ’who does not deal well with conflict.
O Does not know why Mike can’t clarify his “Dilbert Vision” for HR. She and her staff have no idea what being “best in class” even means.
O Doesn’t understand why Mike lets Sharon beat people up. She sees Sharon as an egotistical bully.
O Has a history of solid performance reviews from Mike. Sharon gave her an average rating this year.
O Likes her peers and works well with them, although she thinks Deb is becoming a real suck-up to Sharon.
O Sees herself as a technical expert and someone who is fair but firm with her staff.
O Believes the survey scores have gone down because of Sharon’s personality and style, and that this is trickling down to the staff.
O Is concerned that she and/or her peers will lose their jobs if things don’t improve.
•Deb:
Is simply “playing the game” with Sharon until it’s clear whether Sharon is staying or leaving. Deb knows Sharon is not well-liked and wonders if Sharon will be around next year.
O Doesn’t agree with Sharon’s overly-aggressive style, but would never say anything.
O Works well with her peers, but suspects Sharon doesn’t think much of Joanne.
O Received an “outstanding” performance rating this year from Sharon
o Likes Mike, but believes he’s struggling with leading the department.
O Wants to move up and thinks the ‘new direction’ and Sharon may be her ticket to the ‘Director’ position.
Joanne
o Completely disagrees with Sharon’s approach and has told her peers, “this is not how you manage.” Thinks Mike is a poor leader for being disengaged.
O Received a Below Average performance rating from Sharon this year.
She’s never before received a rating this low.
O Believes Deb is Sharon’s pet.
O Has talked with her staff about the survey and knows some of them are trying to get out of HR. Is quietly looking for another job herself.
Mike has contracted with your consulting team because he has worked with you before and believes progressive change must occur for the team to succeed. Write up your recommendations to Mike with supporting rationale. You should incorporate theories, concepts, and models you have learned in this class, including a schedule for actions you are proposing. Finally, there are no “right or wrong” responses, but there ARE mediocre, good,and better responses.