Case Analysis of Black and Decker Eastern Hemisphere

and the ADP initiatives

Submitted By (Group 7):

Hiteshi Patel
Kirti Dang
Kavya Gupta
Nandini Gupta
Narender
Neha Kumari
Shreyans Jain 1
Shubham Singhla
 Introduction of the company
Founded in 1910 by Duncan Black and Alenzo Decker

Largest producer of power tools, electric lawn and garden tools, and related accessories

HQ: North America – Towson; Europe – London; Latin America – Miami; Eastern Hemisphere –
Singapore

By 1996 – Presence in 109 countries, Sales at $4.9 bn and Income at $229.6 mn, Employee
base of 29000 only

Black and Decker was known for its well known stable brand DeWalt, DustBuster, Price Pfister,
Emhart, power tools and household products 2
Major Characters
• Appointed as President of Black
and Decker eastern hemisphere in
October 1995
• Lancester held senior position in
Black and Decker in Austrailia from
1988 to 1990
• From 1990 to 1995, served as Vice
President Marketing and sales for
North America Power Tools group
Bill
Lancester
• Executive Vice President and
President of Worldwide Power
Tools
• Under his guidance, the two
undertook extensive market
research on the professional-
industrial power tool segments
Jim Bakers
• Human Resources Manager
associated with the company from
last 6 years one of the oldest
employee
• She suggested hybrid performance
evaluation and management
development system
Anita Lim
3
Situation Analysis:
• Bill Lancaster after being appointed as President of Eastern Hemisphere interacted
with people.
• Bill discovered that people had been doing the same jobs for 5 or more years
• About 70 percent of advisory jobs were being filled by outsiders
• Managers were using MBO type system that had been replaced by the U.S.
• MBO system didn’t seek approval from peers
• Bill wanted to go for ADP system
• Bill had to make a choice whether to continue with MBO, go for ADP or have a hybrid
system

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Situation Analysis (Contd.)
Still using MBO-type system

Lancester initial impression of the company

He found that there was a major disparity in
management styles

Some had old authoritain method other

emaphised on employee empowerment

People were not growing or deleloping and

had been doing same job since the last five or
more years

About 70 per cent of management and

supervisory jobs were being filled by outsiders
5
Appraisal Model 1: Management by
Objective (MBO) plan

Superiors would
meet individually
with each
subordinate to
discuss the Criteria would also
A schedule for It didn’t seek input
subordinate’s be set for assessing
follow-up meeting(s) from others in the
performance and the subordinate’s
would be set organization
jointly establish clear progress
and comprehensive
objectives for the
subordinate for the 6
coming year
Appraisal Model 2: THE APPRAISAL DEVELOPMENT PLAN

1.Input from 3-6 employee’s 2. Input from 3-6

peers employee’s
subordinates
6.Objectives
summarized,
with comments
from employee,
manager,
manager’s
boss
3. Self review
from employee

5. Formal meeting,
discussing and 4. Manager preparing a 7
agreeing in writing formal assessment along 14
performance dimensions
ADP U.S. Vs Eastern Hemisphere
U.S.
• It was well received by people, it was
designed as a tool to develop people
• ADP was the potential to build a highly
functional, high performance team
• It encouraged people to come together, to
build one another
• Managers don’t see their subordinates as
much as their peers do thus talking review
from peers was also an essential part
• One of the problem observed ADP was
embraced at the senior level but Less care
was given to it further down the
organization
Eastern Hemisphere
• Managers in the Eastern Hemisphere were
not using the MBO for joint goal setting
• Asians might not believe in the
confidentiality of the ADP system
• The managers have been here a long time
and have rigid views
• The ADP booklets from the U.S. are all in
English. Many lower level employees don’t
speak English
• ADP is designed to build commitment and
develop managers, it may backfire, People
may quit if they are pressed to open up
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ADP Hybrid Proposed
After a year, if it had been
The plan was similar to the accepted, they could then
ADP in terms of its add peer reviews, and then
emphasis on career after another year, go to
planning and goal setting, the full 360º ADP plan by
but without 360º feedback adding subordinate reviews

Lim’s plan relied on 180º Lim believed that a step-

feedback only wise introduction of the
plan would allow people to
gradually buy into the
change while at the same
time allowing revisions
where called for by cultural
realities 9
Lancaster Choice?

OPTION OPTION OPTION

01 02 03

Do Nothing Lim’s Hybrid Full

ADP Implementation
• Great cultural gap • Iterative change less • Region needed
between west & threatening shaking up
east • Step-wise • Wanted high
• Huge commitment to introduction of ADP performance
training & organizational
development culture 10
Recommendation
• For ADP to be most effective, training to employees had to be given
• Also, to remove certain biases and stigma with peer and subordinate evaluation
employees must be illuminated through conferences, trainings and support
• Black and Decker hence must go through both a hybrid of MBO system and ADP
system for smooth transformation to ADP system gradually
• Also, shifting to ADP system entirely can be beneficial but would require a lot of
financial support from the company
• Staff’s full support will be gained slowly as time passes
• Most people don’t like criticism and peer reviews are not reliable as they are
competing for the same position

11
Thank You
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