Before the decision to convert to foreign production, Lo was already facing both strategic and execution difficulties at the company’s quarters. In attempts to counteract the difficulties, Lo planned to institute a balanced scorecard management system to combat four of five challenges: unclear business strategies, weak execution, difficult performance assessment, and weak management systems. With means to prevent the same happenings at the three foreign factories, Lo had the idea to implement the same balanced scorecard at the department level (the three factories).
. What was the Value proposition for Magic to push for the implementation of the Balanced Scorecard? With understanding of what direction the company as trying to follow as the market trend into outsourcing production, the value proposition for Magic to implement the Balanced Scorecard is in constructing an integrated structure and logic of strategy formation management in order to build a more comprehensive strategy formation mechanism. This would allow the company to run more smoothly from a manager to worker stand point.
Specifically, by instituting the Balanced Scorecard, Lo wanted to increase the understanding between top level management and the staff; not just in direction of tasks, but in an understanding of the strategic thinking. By improving the understanding, Lo pooped to alleviate the tasks from the top management to allow them to dedicate their time more towards strategic thinking. With this idea of implementation in mind, Lo designed the implementation to take place in three phases: preparation phase, design phase, and execution phase.
Considering the current state of the company, Magic really needed the preparation phase in order for the Balanced Scorecard to be effective. Within the first phase, preparation, the company decided to subdivide it into three additional phases to simplify the transition even more. By subdividing preparation before implementation, designing the Balanced Scorecard, and executing the Balanced Scores card, the R;D department will be able to forecast the parameters of the balanced Scorecard to the entire company before the implementation of it. . Assuming the implementation of the Balanced scorecard at the department level, how can it be improved, in view of the difficulties encountered related to its implementation at the company’s headquarters, for better departmental implementation at Magic? As it is with any implementation of new things at any company, it will never be a perfectly smooth transition from A to B. There will always be errors, and people who do not grasp the concept. With such aids at the Balanced Scorecard and the SOOT Scorecard, the transition is more seamless.
Going further into the SOOT Scorecard: STRENGTHS I WEAKNESSES OPPORTUNITIES I THREATS I Multiple factories allow for more production and higher sales volume I New expansions are potentially difficult to begin I Decision to expand into foreign production could be a success I New factories fail, causing large amounts of debt, and company closing Focuses on prime products; gaining more sales from better products I Implementation of new policies take time to fully transition I New factories could place them On top of their product market I
Competitors in the market catch wind of their ideas, and implement them for themselves I Adapting to the shifting market early I Poor communication between upper management and bottom level workers I Further expansion into more factories to grow in their market I Expansion into various countries without understanding laws cause problems for the company I As one could see, there is more going for them than possibilities that could hinder their expansion. 3. Magic has not proposed the balanced scorecard to deal with the last of the five business challenges: unclear Product Analysis. Why and how would you deal with it?
As CEO of the company, would have a specialist team temporally join the company as a consulting firm to grasp a better understanding of what should be done. Sometimes it takes the eyes of an outside company to make the best decisions for the company. If they come in with said fresh eyes, and the ambitions to do something good for the company, they can surely secure a proper Product Analysis that could benefit the company.
Cite this Human Resource Challenges of the 21st Century
Human Resource Challenges of the 21st Century. (2018, Apr 15). Retrieved from https://graduateway.com/human-resource-management-84/