HR Transformation Case Study
Flextronics is a US$33 electronic manufacturing services giant or EMS that offers manufacturing and services to large electronic brands in the world. Some of their notable clients are Dell, Hawlett-Packard, Cisco Systems, Xerox and many more (Humpries and Wilson, 2009, p.169). The company builds electromechanical components, complete systems for networking and communication, circuit boards and subsystems. Despite having impressive portfolio, in 2001 the company is facing challenges caused by the dot.com and telecom crash resulting to major industry stagnation. Flextronics had to close down facilities, restructuring and cutting overhead cost while trying hard to retain their position in the market. The company also doesn't have a centralized HR function as well as HR functions that are effectively aligned with the strategies. Because of the prevailing problem, Flextronics has to redesign their strategies starting with HR transformation. There are four phases in the transformation and the most critical is the third phase in because it involves the overall development design of the organization, practices and people derived from three D's. The three D's is composed of discovery or building HR partners, next is design which means establishing centers for excellence and outsourcing and finally deliver which embodies the realignment of the administration and HR operations.
One of the business that shares the same situation with Flextronics is Accenture Global. They too have a problem with HR strategies because of the fact that their business have expanded to the international market just like Flextronics. The challenges of revolutionizing their HR transformation is caused by distance barrier and cultural barriers and the only way to manage human resources is to go for an HR transformation (Sotkiewicz and Jensen, 2007, web) creating a centralized structure. Flextronics have a good job in implementing their HR strategies for transformation because their market position increased from seventh to the first position (Humpries and Wilson, 2009, p.169). The difference in the approach can be seen on how they structure the transformation, Flextronics evaluated their critical capabilities while Accenture approach is to add value by decreasing transactional and administrative burdens (Sotkiewicz and Jensen, 2007).
The second organization in the case study is the Takeda of North America, it is the largest pharmaceutical company in Japen that started from two centuries ago as a small medicine shop in Doshomachi in Osaka Japan. After years of expansion, the company reached North America nad became one of the top 15 pharmaceutical companies in the United States. The crown achievement of Takeda was built on the introduction of ACTOS, which is an anti-diabetes drub. The main challenges that the company is facing is the lack of innovative products that will match the main players in the industry. The leaders of the organization are also facing the problems with competing for key talents in the pharmaceutical companies along with pressure to attract and retain top leaders. Focusing on the key challenges and the introduction of breakthrough products allowed TPNA to keep up with the pressing pace and to grow market shares (Mitsch and Bentel, 2009, p.210).
Human Resources transformation was realized by developing strategies focusing on a more business-oriented and less transactional driven HR group that will help TPNA leaders the achieve their organizational and talent needs (Mitsch and Bentel, 2009, p.210). The same approach for transformation was adapted by Merck. The focus of reducing business lines and divert attention to value and innovation play the crucial role in the transformation (Steiner et al, 2007, p.17). In order to obtain innovation these companies changed the way their leaders focus on cutting the non-core business lines. As they narrow their focus, they were able to sell products that are unprofitable in many treatment areas and use the proceeds of the investment on a greater money-making potentials (Steiner et al, 2007, p.17). This is how TPNA came up with flagship products targeting specific treatment areas. The only difference that Merck and TPNA has is terms of transformation is that TPNA is more critical in following the third phase of the transformation, which is the HR redesign. Because of the fact that TPNA is not a native North American company, they have to put extra effort in better understanding their clients create a design that is more aligned with business growth strategies. They completely changed their HR systems not only by partnering with business line leaders, but also in the way they acquire talents that possess stronger organizational capabilities (Mitsch and Bentel, 2009, p.212).
Bentel, L., & Mitsch, S. (2009). Chapter 12: TAKEDA North America: Creating Capability in A Fast-Track Subsidiary . In HR Transformation: Building Human Resources from the Outside In. (p. 17). New York, USA: McGraw Hill.
Humphries, P., & Wilson, Q. (2009). FLEXTRONICS: Building a Strategic HR Organization from Scratch. In HR Transformation: Building Human Resources from the Outside. (p. 169). New Yrok, USA: McGraw Hill.
Sotkiewicz, M., & Jensen, E. W. (2007, April). Revolutionizing HR Transformation for Business Impact . Accenture: Outlook. Retrieved June 22, 2012, from http://www.accenture.com/us-en/outlook/pages/outlook-online-2007-successful-hr-transformation.aspx
Steiner, M., Bugen, D. H., Kazanchy, B., Knox IV, W. T., Prentice, M. V., & Goldfarb, L. S. (2007). The Continuing Evolution of the Pharmaceutical Industry: Career Challenges and Opportunities. Regent Atlantic Pharma Paper, 17.
