The goal of each appraisal feedback session should look to improve and provide the employee with valuable information needed to advance and excel within the organization (Cascio W. , 2010, p. 341). Appraisals are also in compliance with the Labor Relation Laws of India and the documentation required to terminate an employee if need be. The use of comparisons or ranking systems may be a negative reinforcement system in terms of feedback per the India cultural and socio-economic systems in place (Bhal, 2002). This will also add to the divide of the cultural systems currently in…
Black & Decker Corporation is one of the largest manufacturers of power tools and accessories, residential security hardware, outdoor tools and numerous other products. The two largest product groups of B&D are power tools & accessories and household products representing 29% and 15% respectively, in terms of sales. During the 90s the portable power tool market accounted for 1.5 Billion and is segmented in 3 major groups, Professional-Industrial Tools, Professional-Tradesmen Tools and Consumer tools.…
Performance appraisals are essential for the effective management and evaluation of employees. The 360-degree feedback is one of the applications of performance management. As it is mentioned in the textbook, “The 360-degree feedback approach involves collecting performance information not just from the supervisor but from anyone else who might have firsthand knowledge about the employee’s performance behaviors.” Typically, these other sources of information about the employee’s performance come from his peers, subordinates, and customers.…
Appraisal systems in any organization should be designed to motivate and encourage employees to give their best performance. The targets…
When Mike Volkema, CEO of Herman Miller, abruptly attempted to appoint Gary Van Spronsen to executive vice president of offer development and marketing, Volkema was hesitant to get involved. Since 1992, Van Spronsen had worked feverishly to build a leader in the office furniture industry in the Herman Miller subsidiary SQA. Not only did Van Spronsen create the traction that prompted better customer service, a tailored product line and design process, but he also transformed the faltering subsidiary from a refurbishing company, into a position leader that develops their own products. Now, Van Spronsen was suddenly being called on to make the same impact on the second largest producer of office furniture in the United States at the corporate headquarters of Herman Miller. The major question presented is should Van Spronsen take the leap to Herman Miller corporate and put the future of the SQA subsidiary in jeopardy?…
BWW is a growing company in the United States with increasing total revenue that represents more than $246 million. Its great performance makes the company want to expand its concept abroad. It has already made its first export move…
Duncan Black and Alonzo Decker, SR., in 1910, started a machine shop business and in 1917 receiving the world’s first patent for a power drill. The company was later named Black & Decker, (B&D) and over the next 73 years they became one of the most well known brands and market leaders of power tools, accessories, lawn, garden supplies and residential security hardware worldwide. In 1990 B&D grew to a record $4.8 billion dollars in sales with 50% of their business coming from outside the United States. “The B&D name enjoyed substantial equity in both the United States and Europe. An independent survey of 6,000 brands showed (B&D) brand-strength ranking to be #7 in the United States and #19 in Europe” (Dolan 1995). B&D was focused on three very different market segments in the industry; Professional-Industrial Tools, Professional-Tradesman Tools and Consumer Products. The focus of this report will be on the Professional-Tradesmen market segment under the Power Tools Division. “Tradesmen” segment are electricians, plumbers, carpenters, framers, roofers and general remodelers working in residential construction. We will first determine the cause of B&D 9% share vs. Makita’s 50% share. Second, we will describe the buying behavior of the tradesman and their impact on the situation. Next, we will look at Makita’s and Milwaukee’s competitive strategies. Finally, we will discuss the action alternative that B&D should pursue.…
In the 1990’s Black and Decker had a great position in the market for their products to appeal to the Professional Industrial segment and the Consumer segment but when it came to the Professional Tradesmen segment they were lacking. Their 9% market share vs. Makita’s 50% market share in the tradesmen segment was incomparable. Makita clearly had a better product in the eyes of the Professional Tradesmen. In the Professional Segment most of the people who buy the products are people who need these tools to make a living such as carpenters, electricians, plumbers, roofers, and general remodelers. Black and Decker were branded for tools to use at home. Therefore, tradesmen looked at the Black and Decker brand as tools for home use, and not for work. Since they were branded for home use it seemed as if they weren’t made for everyday use, and would not hold up for the wear and tear a carpenter or electrician would need them to. B&D clearly had a problem with brand association with its consumers. In exhibit 2 it shows that Black and Decker failed in capitalizing in the Membership Club distribution channel which was in the top five profitable distribution channels. Makita did distribute its tools to membership clubs and it turned out to be very successful channel for them having 85%. Black and Decker had such a lack of profitability in the tradesmen segment due to having the wrong brand perception and inadequate distribution channel, where Makita excelled in both.…
Many organizations today are revamping their performance management systems to help increase employee satisfaction, increase productivity and profitability, while also teaching and developing their employees. If you ask any manager performance appraisals are probably not on the list of favorite tasks to perform in their job descriptions. Managers think they are boring, time consuming and not all that beneficial. Scripps Health is a non-profit organization that has been in business since 1924 and somewhere down the line starting losing money, had a high turnover rate and unhappy employees that lacked determination. This paper will review Scripps Health’s renovation of their performance management system and the sizable initiatives they…
The Black & Decker Corporation has three major segments which are Professional-Industrial tools, Professional-Tradesmen tools and Consumer tools. It is making good profit in Professional-Industrial and Consumer segments but has only 9% share in Professional-Tradesmen, compared to 50% share of Makita (Table A).…
Jack Welch introduced transformational leadership at General Electric (GE) with the aim of stretching the organization towards achieving global objectives. Welch took the helm of the organization in 1981, at a time when the US economy was overwhelmed by recession. In addition, his predecessor, Jones, had introduced a highly bureaucratic system of management that created divisions, departments, sectors, subsectors and units that were all headed by managerial staff. Welch was determined to facilitate the company to sail through the recession period focusing on the future of GE with a vision of unique, high-spirited entrepreneurial business organization. Through a series of changes in staff management such as downsizing administrative units, de-staffing of particular lines of operation and de-layering, Welch reduced the size of staff and operational costs.…
Performance appraisal is considered a key tool for managerial needs of today’s organizations and is the process by which organizations evaluate job performance. A performance appraisal system usually requires a manager to rate each employee’s performance according to performance criteria’s that have already been established over a period of time. Performance appraisal systems also provide a basis for planning improvement as well as means for determining merit increases, transfers and even dismissals. The most important purpose or goal of the appraisal is to improve performance and hence productivity in the future. Performance appraisals allow employees to see where they are at and managers can get valuable information from employees to help them make employee's jobs more productive. As a result of appraisals, managers’ control over work and results may increase, problems can be identified early, employees are motivated by being allowed to input into and own their objectives, enhances communication, objective feedback given back to employees, facilitates decision making in regard to pay scale and promotion, centralized record of performances.…
Performance appraisals play a large part in the process of performance management. The purpose, stated by Cascio (2013), “is to improve employees’ work performance by helping them realize and use their full potential in carrying out their firms’ mission, and to provide information to employees for use in making work-related decisions”. Employee appraisals will identify low or high performing employees. Based on this, more training may need to be provided to some employees, or for decisions on promotion, demotion, transfer, or discipline. Bollman needs to be cognizant of the potential rightsizing decisions of the current workforce for both their domestic and international employees. Keeping the turnover rate of 5% or less should be in the forefront. Appraisal feedback is essential for personal development, or for identifying training needs to meet the job…
Garavan, T.N., Morley, M. and Flynn, M. (1997) ‘360 degree feedback: its role in employee development’, Journal of Management Development 16(2): 134-147.…
In 1995 when Bill Lancaster was appointed the President of Black and Decker Eastern Hemisphere his initial impression about the organization was depressing. There were some major concerns one of them is the management style that was followed. The current managers were using the Management by Objective (MBO) type plan which is believed to be outdated system that had been replaced in the US some time ago. There were some bad managers and some bad management styles. It was obvious to have lack of growth and development. These concerns led him to see a dark future. These problems require immediate attention and correction to save the organization from its negative impact.…