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

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."...

Human Resource and Organization Behavior | Case Study in Management, Operations, Strategies, Human Resource and Organization Behavior, Case Studies

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...

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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