THE HR DEPARTMENT CHALLENGE
BUSN6041 Leadership And Organizational Development. You are the member of a department in AnyoneCan, Inc.
AnyoneCan has just merged with Buttercup Fields Homestores, Inc. Both companies consider themselves middle of the road retailers.
They do not compete with the discount chains nor with the specialty stores. Buttercup Fields has a few specialty stores as part of its chain. AnyoneCan, Inc. has been in the retailing business for over 120 years. Buttercup Fields has been operating for the last fifteen years.
Due to an aggressive management team Buttercup Fields has demonstrated phenomenal growth over the last ten years. In the last three years it has taken over five smaller store chains. In the merger with AnyoneCan, Buttercup Fields is the financially stronger partner.
The retailing industry has had two long years of recession. Competition is intense and sales are generally lagging all round. The discount retailers have fared the best during the downturn.
New technology has radically changed methods of ordering goods, the management of inventories, handling money in the store, as well as new financial reporting procedures both internally and externally. As a result of the merger, to avoid duplication of activities and to benefit from economies of scale, several administrative departments will be closed.
You and several members of your department anticipate that your department will be one of them. Your department has been responsible for all the human resource aspects of Anyone Can.
Corridor gossip is that the new entity, Anyone’s Buttercup, plans to outsource all of its HR functions. You have been told that a committee has been formed to decide which departments will be closed or downsized.
The committee will consist of an equal number of representatives from both companies. Both your department and the HR department of Buttercup Fields are at risk.
You and other members of your department feel you want to use your leadership skills to influence the committee to keep the department.
Using what you know – new realities, systems thinking, emotional intelligence and so on – how are you going to persuade the committee not to outsource the HR activities and keep your department? BUSN6041 Leadership And Organizational Development