Xerox - People Problems
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Case Details:
Case Code : HROB015
Case Length : 09 Pages
Period : 1998 - 2001
Pub Date : 2002
Teaching Note : Available
Organization : Xerox Corporation
Industry : Office Automation Products
Countries : USA
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
People Problems - I
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In the initial years, Xerox's work culture was reported to be the 'envy of the
corporate world.' The company's chairman Joseph C. Wilson (Wilson) and his
successor Kearns were lauded for forming a positive culture at the company that
went on to play a major part in establishing the company's supremacy in the
copier business.
A former Xerox HR executive said, "Wilson brought in progressive HR people
schooled in HR at outstanding institutions. They helped him build a very
people-oriented tradition that became famous for its training, development and
sales selection policies."...
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People Problems - II
Based on his findings, Thoman decided to set things right at Xerox by
focusing more strongly on digital equipment rather than the analog ones and
by reorganizing the salesforce to sell digital solutions instead of copying
machines in the existing setup. For the first time in Xerox's history, sales
personnel had to focus on industry based targets (such as the automobile
industry customers) instead of individual clients. This also meant that
their commissions reduced significantly.
Much to Thoman's chagrin, the reorganization plan met with severe criticism
despite the fact that it had been endorsed by a committee of senior
executives...
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The Future
Mulcahy's first concern was to put in place 'retention programs' to
arrest the abnormally high salesforce attrition rate. This included
increasing their pay and other incentives. Soon, the attrition
dropped back to normal levels. The company also decided to offer
training and education via e-learning to the personnel. Mulcahy and
Allaire got in touch personally with thousands of employees to
restore their confidence in the company.
However, Xerox continued to face a fall in its profitability, which
indicated that the company would have to keep the options of
downsizing, consolidating and cost cutting open. |
The company reported a loss of $ 384 million for the year
2000. By January 2001, its stock had dropped 72% over the previous year...
Exhibits
Exhibit I: Xerox - Financial Performance
Exhibit II: Xerox - Organizational Structure
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