MGMT 5309 Wayland Baptist University Alfa Chemical Case Study Please see the attachments for all the info. USE this RUBRIC to check your responses to the t

MGMT 5309 Wayland Baptist University Alfa Chemical Case Study Please see the attachments for all the info. USE this RUBRIC to check your responses to the three requirements. This RUBRIC will be used to assess responses to HR Case Study #1 requirements.USE this Word document TEMPLATE to present responses to the Process Refinement Department MANGER’S requirement. DO NOT delete the requirements from the TEMPLATE. Following a requirement, present a response. MGMT 5309: Human Resource Management
HR Case Study #1
Creating Change and Implementing Strategy within
the Operations Division, Alfa Chemical
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Creating Change and Implementing Strategy within the Operations Division, Alfa Chemical
This HR Case Study covers chapters 1, 2, 3, 4, 5, 6, 7, and 8 (Noe et al., 2019) as
discussed in video PowerPoint lectures in session tabs 1, 2, 3, and 4.
HR Case Study Background
Alfa Chemical is a large-scale company located in Huston, Texas. The Company consists
of five divisions: 1) Marketing, 2) Logistics, 3) Operations, 4) Finance, and 5) Human Resource
Management. The Company produces Phosphate and Sulphur chemicals and sells its products
at a global level to numerous companies in several different industries.
Within the chemical production industry, the market conditions experienced several
significant changes. In the global market, China moved into the number one producer of
Phosphate and Sulphur, which placed competitive pressure on Alfa Chemical. Within the U. S.,
several political-legal changes occurred. Both the Federal and Texas State governments eased
EPA regulation in the chemical industry, which benefited Alfa Chemical. Moreover, the Texas
Supreme Court addressed the employment status of “gig” workers. The court rendered a
decision that certain “gig” workers1 classification must change to a “full-time” employee status.
This court decision required Alfa Chemical to address the classification of certain employee
groups. Lastly, the Equal Opportunity Commission issued several new guidelines concerning
sexual harassment in the workplace. These new guidelines required senior leadership and HRM
to address the new guidelines and document the training of managers, supervisors, and frontline employees on the new sexual harassment guidelines.
However, the greatest impact to Alfa Chemical came from a shift in customer
preferences. Customers now preferred a higher quality of processed Phosphates and Sulphur
chemicals. This shift in customer preference caused Alfa Chemical to experience a 15%
reduction in global orders. This drop-in sale came as a direct result of actions taken by rivals,
who upgraded their production processes with new technology. The new technology improved
the quality process output of Phosphate and Sulphur chemicals. Recent advancements in
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Gig Worker: a gig worker is an individual working in a business, who is outside of traditional, long-term employeremployee relationships, performing independent income-earning activities.
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chemical process technology now provide Alfa Chemical with an opportunity to upgrade its
chemical process operations with the latest technology.
These changes in the market and customers’ quality preference demanded that Alfa
Chemical assess the effectiveness of its current business model. The CEO assembled the
Company’s strategic leadership team (SLT). The SLT comprised the five division directors.
The SLT analyzed the effectiveness of the current business model. Their analysis
determined the current business model to be ineffective and suggested the development of a
new business strategy. The SLT recommended a strategic direction that focused on separating
the Company from its rivals by integrating new technology capable of producing a higher
quality chemical product.
The CEO agreed with the strategic direction recommended by the SLT. Additionally, the
CEO believed that the integration of the new technology within the Operations Division
processes, specifically the Process Refinement Department, would produce the output quality
customers desired. This improved output quality would create growth by attractive previous
customers as well as new customers. The potential of this growth would place the Company as
a leader in its competitive market. Finally, this new technology would address two internal
Operation Division weaknesses: 1) improve product quality, and 2) reduce production costs.
Additionally, the CEO sought to achieve a competitive advantage through improved
performance both at the organizational level [departments] and at the individual levels
[employees]. He believed that department managers and front-line supervisors were key to the
success of implementing the Company’s strategy. To successfully implement the Company’s
strategy, department managers and front-line supervisors would assume a new role of jobperformance coaches. This new role of job-performance coaches would create a company
workforce culture focused on positive employee-relations, sharing of knowledge, and
promoting continual learning and development opportunities. Additionally, as jobperformance coaches, department managers and front-line supervisors would develop highperformance work systems (HPWS) with engaged employees. To this end, managers and frontline supervisors must learn the skillsets essential to perform as job-performance coaches
effectively.
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To create change and implement the Company’s strategic direction, the CEO formulated
the Company’s strategic vision and identified four Strategic Goals (SG) with one Critical Success
Factors2 (CSF) for each strategic goal that supported the strategic vision.
The CEO stated: I envision a Company that meets customers’ expectation by producing
the highest quality Phosphate and Sulphur chemicals. To this end, I envision leaders partnering
with employees and encouraging employees’ engagement. To this end, I envision a Company
with a positive, productive work climate which becomes the Company’s “employer brand” and
our brand attracts and retains talented employees.
To accomplish this strategic vision, the CEO identified four strategic goals with one
critical success factor (CSF) for each goal.
1. Strategic Goal (SG1) 1: Within one year, achieve and sustain a production output level of
10 tons of Phosphate and Sulphur chemicals with a 99.1% quality rating per production
cycle. SG1-Critical Success Factor 1 (CSF 1): Logistics, Operations, and HRM Division plan
and conduct a seamless integration of the Computer Integrated Manufacturing (CIM)
technology and the Manufacturing Requirements Planning Process (MRPP) technology
into the Operations Division Process Refinement Department work processes. The success
of this integration also requires coordination and cooperation with specialized activities
within the Marketing and Human Resource Management Divisions.
2. Strategic Goal (SG2) 2: Create a work climate that encourages and engages employees
and promotes continued workforce performance development. SG2- Critical Success
Factor 2 (CSF2): Managers and supervisors develop competencies as employee jobperformance coaches. As employee job-performance coaches, managers and supervisors
will coach front-line employees’ performance to effectively employ the new technology
while encouraging employee involvement and engagement.
3. Strategic Goal (SG3) 3: Create high-performance work systems throughout the Company
and builds a positive employer brand that attracts and retains talent. SG3-Critical Success
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Critical Success Factor (CSF): is a management term that identifies essential areas of activity that are linked to
and affect the success of goals, projects, or mission. CSFs receive constant and careful attention from
management.
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Factor 3 (CSF3): Promote the engagement of front-line employees through a top-down,
bottom-up two-way communication approach, which allows for employees to take an
active role in job-related decision-making and providing innovative ideas to improve
production.
4. Strategic Goal (SG4) 4: Build a company structure and develop an employee culture that
quickly adapts to changing market conditions to remain competitive. SG4-Critical Success
Factor 4 (CSF4): Develop an adaptive organizational structure and an adaptive
organizational culture through continuous performance improvement, learning, and
knowledge sharing.
With these four Strategic Goals (SG), and the four Critical Success Factors (CSF), the CEO
next expressed concerns about creating the structure and employee performance changes
needed to implement the new business strategy. The CEO continues with these comments:
As a Strategic Leadership Team, you collectively developed an effective strategy that
affords Alfa Chemical with the potential for overcoming our rivals in the market. To achieve this
potential, we must quickly integrate the new technology into the Company’s structure [work
processes and jobs]. Concurrently, while incorporating the new technology, managers,
supervisors, and employees must develop respective performance competencies to employ the
new technology. We face the challenge of successfully implementing our strategy.
I recently read a book, titled: The Execution Premium, by Robert Kaplan and David
Norton. I learned something I believe is significant as we implement our strategy. Kaplan and
Norton reported that of the 500 businesses they studied, 90% of those businesses failed at
implementing strategy. These businesses failed because their employees, senior managers,
managers, supervisors, technicians, and front-line employees, lacked performance competencies
to implement their strategy. Additionally, Kaplan and Norton found that most businesses did
not establish a formal monitoring system to assess the implementation of their strategy
adequately.
What I found most disturbing in their findings was that more than 70% of these
businesses did not establish a performance management system link to strategic goals and that
these same businesses did not link incentive compensation to strategic goals. Finally, Kaplan
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and Norton found that fewer than 10% of employees within these businesses understood their
Company’s strategy and strategic goals. It is clear to me that we will fail at implementing our
strategy if employees do not understand our strategy, if employees do not develop essential
performance competencies, if management does not develop a performance management
system, and if critical performance activities and performance incentives are not aligned with
our strategic goals. I see two divisions crucial to the successful implementation of our strategy:
The Operations Division and the Human Resource Management Division.
The Operations Division is central to this company’s purpose. The Operations Division
receives new technology. The integration of this new technology must be seamless.
Additionally, the three Department Managers and their department’s Supervisors within the
Operations Division must develop the skillsets to perform the role of employee job-performance
coaches.
The Human Resource Management Division must develop HR initiative and policies
focused on 1) re-designing work process structure that integrate the new technology into the
Process Refinement Department; 2) recruit qualified candidates to fill new job positions within
the Process Refinement Department; 3) develop training programs for managers, supervisors,
and front-line employees to effectively employ the new technology; 4) develop training
programs for department managers and supervisors to develop the skillsets to perform as jobperformance coaches; 5) develop a formal performance management system and performance
incentive system linked to strategic goals and 6) developing a talent management strategy
aimed at attracting, retaining, motivating, and developing talented employees.
The CEO identified that central to the successful implementation of the new business
strategy resided in the Operations Division. SG1 and CSF1 require a smooth integration into the
Operations Division workflow processes of the capabilities of new technology in achieving and
sustaining the production cycle output goals. The CEO believes that the new technology
addresses two internal weaknesses within Operations Division: 1) improve production quality
output and 2) reduce production costs. By successfully addressing these two weaknesses, Alfa
Chemical poises itself to create growth opportunities in the form of capturing previous
customers as well as attract new customers.
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Finally, the CEO believes the Company can achieve a competitive advantage by
continually improving employees’ performance at all levels. He believes that job-performance
coaching directly influences performance improvements of employees continually.
Additionally, coaching employees will accomplish three crucial tasks: 1) coaches will
communicate how performance is linked to strategic goals, 2) coaches provide timely feedback
in improving the performance of front-line employees towards strategic goals, and 3) coaches
will solicit feedback from employees. As job-performance coaches, department managers and
supervisors link employees’ performance to strategic goals. The CEO also believes that
coaching performance and seeking employees’ input through two-way communications will
create a positive work climate. This positive work climate centers on valuing employees’ input
which will foster employee engagement. To this end and to enhance employees’ performance
towards strategic goals, the CEO approved the use of performance incentives.
The smooth integration of new technology and developing employees’ competency to
use the new technology requires a partnership with the Director of Operations and the Director
of Human Resource Management. The new technology will revise the workflow structure
within the Process Refinement Department (PFD) and created a new job titled of Chemical
Process Technician with 15 positions. figure 1 shows the previous workflow structure in the
Process Refinement Department. Figure 2 shows the restructured workflow process in the
Process Refinement Department after the integration of new technology.
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To support this partnership, the Director of HRM placed an HR Business Partner with the
Operations Division. The CEO wants the Process Refinement Department (PRD) Manager and
the HR Business Partner to collaborate respective knowledge to cause a smooth transition to
the new technology. With the new technology, the CEO wants current and new employees in
the PRD to develop the competencies necessary to optimize the capabilities of the technology
as quickly as possible.
With regards to SG2 and CSF2, the CEO believes that effective implementation also
requires that managers and supervisors in all divisions within Alfa Chemical engage employees
in a planned change process3. Within a planned change process, the CEO expressed the
importance of managers and supervisors performing effectively in their new leadership roles as
employee job-performance coaches.
The CEO stated: Employee coaching in Alfa Chemical well be focused on improving each
employee’s performance against specific Key Performance Indicators4 (KPI) linked to CSFs that
are linked to SGs. Employee coaching will also focus on performance management, talent
management, and talent retention. Our managers will no longer act in an authoritarian manner
but will collaborate with their employees by identifying, targeting, and developing performance
through individual development plans (IDP)5 focused on KPIs. Additionally, as employee
coaches, managers and supervisors will coach both for performance improvement and
employee engagement.
With regards to SG3 and CSF3, the CEO provides these comments: Managers and
supervisors that focus on coaching employees’ performance will accomplish two important
tasks; first, the coaching will build trusting relationships with employees. This trusting
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Planned Change Process: A planned change process is typically a plan with specific steps that change an
organization’s structure and employees’ competencies required to implement a strategy. A change process also
incorporates a means to evaluate the progress of change.
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Key Performance Indicators (KPI): A quantifiable measurement approach used to evaluate the success of an
organization’s workflow processes and employees’ performance towards an organization’s strategic goals or
objectives.
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Individual Development Plan (IDP): IDP is a tool to assist employees in career and personal development. The
primary purpose of the IDP is to identify development goals and activities and resources to achieve development
goals. Supervisors use the IDP to improve an employee’s current job performance.
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relationship helps employees understand and support performance improvements for Alfa
Chemical and directs performance that successfully implements our strategy. Second, employee
coaching will lay the foundation for building a positive work climate. A positive work climate
within Alfa Chemical will encourage employees to take an active role in job-related decisionmaking and providing innovative ideas to improve operations further. This area is an untapped
resource within the Company.
With regards to SG4 and CSF4, the CEO provides these comments: Essential for the
success of Alpha Chemical strategy is creating a Company culture that can quickly adapt to
changing market conditions. As the foundation of our strategy is creating a positive work
climate where management and employees work as partners. This partnership must be built
upon trust and mutual respect. From a partnership of trust and mutual respect, we will create a
culture that in partnership work to adapt to changing market conditions. Company leadership,
through job-performance coaching and two-way communication, we will build an adaptive,
learning culture.
Before concluding the SLT meeting, the CEO directed the Director of Operations and the
Director of Human Resource Management to develop their respective Division’s Strategic Goals
(SG) and Critical Success Factor (CSF) that support the Company’s strategic goals.
To this end, the Director of the Operations Division developed the following three
Strategic Goals with three Critical Success Factors in support of Alpha Chemical’s strategic goals:
1. OD Strategic Goal #1 (OD-SG#1): The three chemical departments (Sorting,
Purification, and Refinement) integrate new technology and achieve and sustain an
output per production cycle of 10 tons of chemical at a 99.1% quality standard. ODCSF 1: In each department, manages will facilitate a smooth integration into the
Operations Division work processes of the Computer Integrated Manufacturing (CIM)
technology and the Manufacturing Requirements Planning Process (MRPP)
technologies. Essential with this smooth integration is effective coordination and
collaboration with the HRM division.
2. OD Strategic Goal #2 (OD-SG#2): Collaborate with HRM in the process of selecting
qualified new employees in the Process Refinement Department and train new
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employees to the competency level needed to achieve and sustain an output per
production cycle of 10 tons of chemical at a 99.1% quality standard. CSF 2: Key to
successfully implementing the new technology will be the screening and selection of
qualified employees. The new technology will require a revision of workflow through
the three departments. The revised workflow will require the integration of new jobs
and trained employees to perform in the new jobs.
3. OD Strategic Goal #3 (OD-SG#3): Department Managers and Supervisors develop the
competencies to effectively coach and engage department employees to achieve and
sustain an output per production cycle of 10 tons of chemical at a 99.1% quality
standard. CSF 3: Managers and supervisors will develop and implement the skillsets
necessary to perform as job-performance coaches for employees’ performance in their
new job. Managers will use Key Performance Indicators (KPI) within the three CSFs to
coach the required performance necessary to implement the business strategy.
The diagram provided below shows the workflow configuration of the three departments
(Sorting, Purification, and Refinement) within the Operations Division.
The Director of the Human Resource Management developed the following four
Strategic Goals with four Critica…
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