HR restructuring at Lucent Technologies
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Transcript of HR restructuring at Lucent Technologies
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HR RESTRUCTURING AT
LUCENT TECHNOLOGIES
-SHOUMIK ROY- RISHABH KHANNA
- NIKET MOHAN- HARSHPREET SINGH
- ANIMA BAJPAI
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BACKGROUND
• 1996 – Spun off from AT&T
• 1997 – Lucent major Telecom equipment maker
• Focus on Telecom equipment and voice-based
technologies
• Failure to evolve towards convergence of data, voice
and internet
• 1999 – Decision to restructure operations
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• Restructuring into four key businesses – a. Service provider networksb. NetCare Professional Servicesc. Enterprise Networksd. Communications Technologies
• Late 1999 – Unable to integrate operations of acquired companies
• 2000 – Severe financial crunch
• 2001 – Seven-point restructuring plan
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MAJOR ISSUES
• Mismatch between Lucent’s organizational culture and the culture of companies it had acquired
• Standardization of HR policies and processes difficult due to autonomy in business units
• Failure to evolve with changing market
• Major exodus of talent from acquired companies
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Modern Organization Designs
1. Project design
2. Matrix design
3. Horizontal organizations
4. Network design
5. Virtual organizations
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President
Engineering Marketing Design Purchasing
Project Manager 1
Project Manager 2
Project Manager 3
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MATRIX DESIGN
Advantages –
• High degree of specialization
• Functional departmentation helps gather
specialized resourses
• Facilitates coordination among various specialists
• On-time completion of tasks
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Disadvantages -
• Employees report to two or more bosses
• Role-conflict and ambiguity among employees
• High stress
• Weak superior-subordinate relationships
• Duplication of activities
• Increase in costs
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Lucent’s “GROWS” Initiative – 1997
• GLOBAL – Strengthen Lucent’s International operations and to ensure 70% of the company’s future growth comes from outside U.S.
• RESULTS – Improve flexibility and productivity and to meet the rapidly challenging preferences and diversified needs of customers.
• OBSESSED – Put excessive, matched focus on customers and new competitors.
• WORKPLACE – Create and promote an open, supportive and diverse workplace.
• SPEED – Replace existing culture with a new corporate culture driven by technology and innovations.
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GOALS FOR RESTRUCTURING
• Develop global culture
• Enable speedy decision-making
• Simplify and standardize global HR policies
• Evolve with changing market dynamics
• Effective downsizing of workforce
• Reduce employee dissatisfaction and unrest
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HR ORGANIZATION
HR OPERATION CENTRES
HR CENTRES OF EXCELLENCE
HR BUSINESS PARTNER
ORGANIZATION
SERVICE DELIVERY MODEL
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RESISTANCE TO CHANGE
A. Individual Resistance to Change
B. Organizational Resistance to Change
• Structural inertia
• Limited focus of change
• Group inertia
• Threat to expertise
• Threat to established power relationships
• Threat to established resource allocation
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Benefits of New Organizational Structure
• In accordance with diverse regional operations
• Implemented after communicating changes to
workforce
• Easy and quick decision-making
• Global IT platform reduced workforce costs
• Efficient management of HR functions with
reduced workforce
• Streamlined processing via self-service
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• Drastic reduction in manual interfaces
• Employees encouraged to take online training
programmes
• Work closely aligned with senior managers
• Focus on investing in ongoing development of
talent
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CONTINGENCIES OF ORGANIZATIONAL DESIGN
• Organizational Size
• Organizational Strategy
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BENEFITS OF HR CENTRALIZATION
• The HR function must not only be focused on the workplace but also the marketplace and linked directly to the core business strategy.
• If HR is becoming a profit center, costs need to be reduced and processes optimized - this can only be achieved by having all key players work at the same centralized location.
• Operating centrally is necessary for all parties to be fully aware of the overall strategy and to pull into the same direction.
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ROLE OF INFORMATION TECHNOLOGY
• To Save cost and time consumed in transactional and repetitive HR activities
• Reduced administrative & training cost effectively
• Promoted self service and web enabling to employees and managers
• Helped in quick and effective decision making
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THANK YOU