Human Resource Management - Case Study 1
Case Study 1
Human Resource Management
Christopher Sitko
Dr. James Bullen
July 21st, 2013
Body
Magic Technology, hence forth to be known as “Magic”, is a manufacturing company that has been producing electronic components since 1994. CEO Alan Lo followed business trends and began the switch to export production to foreign countries, specifically China, by creating three additional factories. Two of the factories were located in Shenzhen and the third was located in Suzhou. Before the decision to convert to foreign production, Lo was already facing both strategic and execution difficulties at the company’s headquarters. In attempts to counteract the difficulties, Lo planned to institute a balanced scorecard management system to combat four of five challenges: unclear business strategies, weak execution, difficult performance assessment, and weak management systems. With means to prevent the same happenings at the three foreign factories, Lo had the idea to implement the same balanced scorecard at the department level (the three factories).
1. What was the Value proposition for Magic to push for the implementation of the Balanced Scorecard? With understanding of what direction the company was trying to follow as the market trend into outsourcing production, the value proposition for Magic to implement the Balanced Scorecard is in constructing an integrated structure and logic of strategy formation management in order to build a more comprehensive strategy formation mechanism. This would allow the company to run more smoothly from a manager to worker stand point. Specifically, by instituting the Balanced Scorecard, Lo wanted to increase the understanding between top level management and the staff; not just in direction of tasks, but in an understanding of the strategic thinking. By improving the understanding, Lo hoped to alleviate the tasks from the top management to allow them to dedicate their time more towards strategic thinking.
With this idea of
Human Resource Management
Christopher Sitko
Dr. James Bullen
July 21st, 2013
Body
Magic Technology, hence forth to be known as “Magic”, is a manufacturing company that has been producing electronic components since 1994. CEO Alan Lo followed business trends and began the switch to export production to foreign countries, specifically China, by creating three additional factories. Two of the factories were located in Shenzhen and the third was located in Suzhou. Before the decision to convert to foreign production, Lo was already facing both strategic and execution difficulties at the company’s headquarters. In attempts to counteract the difficulties, Lo planned to institute a balanced scorecard management system to combat four of five challenges: unclear business strategies, weak execution, difficult performance assessment, and weak management systems. With means to prevent the same happenings at the three foreign factories, Lo had the idea to implement the same balanced scorecard at the department level (the three factories).
1. What was the Value proposition for Magic to push for the implementation of the Balanced Scorecard? With understanding of what direction the company was trying to follow as the market trend into outsourcing production, the value proposition for Magic to implement the Balanced Scorecard is in constructing an integrated structure and logic of strategy formation management in order to build a more comprehensive strategy formation mechanism. This would allow the company to run more smoothly from a manager to worker stand point. Specifically, by instituting the Balanced Scorecard, Lo wanted to increase the understanding between top level management and the staff; not just in direction of tasks, but in an understanding of the strategic thinking. By improving the understanding, Lo hoped to alleviate the tasks from the top management to allow them to dedicate their time more towards strategic thinking.
With this idea of