BLACK & DECKER- EASTERN HEMISPHERE

AND THE ADP INITIATIVE

Submitted by: Group 8

 BLACK & DECKER
• Black & Decker, manufactured
industrial machinery, founded in
1910 by Duncan Black and Alonza
Decker who invested $1,200 to start
a company
• Well known brands – DeWalt, Black
& Decker power tools, Dustbuster
portable vacuums, Kwikset, Pfister,
Emhart, Black & Decker brand
household products.
• In a survey of 6,000 brands, Black
& Decker was ranked seventh in the
U.S. and nineteenth in Europe.
• Patented a drill and trigger switch,
1910s • Opened representative offices in Canada, England, Russia,
Australia and Japan
1970 • DeWalt had been purchased by Black & Decker
• Nolan D. Archibald, Chairman, President and CEO
1980s • Sales offices in 109 countries, world’s largest producer of
power tools, electric lawn, garden tools, and related
accessories
• separate North American Group, European and International
Group
1990s • International Group - Latin America & Eastern Hemisphere
• Sales - $4.9 billion, net income -$229.6 million, employed
over 29,000 people
MAJOR ACTORS
Anita Lim
Singapore based manager of Human
Resource
• With Black & Decker for 6 yrs
• Risen from entry level HR position to
considerable authority in Asia Pacific
• Opposed the introduction of U.S
version of ADP in eastern hemisphere
• Advocated the implementation of
hybrid performance evaluation and
management development system
Bill Lancaster
President Black & Decker Eastern Hemisphere
• 1988 - 1990 : Senior administrative position
• 1990 – 1995 : Vice President Marketing and Sales
(Professional Products for the North American
Power Tools group)
• Wanted a change because of pressure from Jim
Barker to improve results
• In favor of 360 degree ADP system as he’s
impressed by it’s implementation in U.S.
3
MANAGEMENT BY OBJECTIVE
Individual discussion of performance –
past and future

Problems with At least one meeting during the year

MBO
• Other’s input was not taken
into consideration
• Difficult as a manager to Used previously by Western companies hut
know the ground realities of still used now in eastern countries

the project
• Depends on your
compatibility with your boss In 1980s ~ 50 % of fortune 500
companies using MBO systems
 01 Objectives

ADP STEPS Input from 3-6

employee’s peers
summarized, with
comments from
employee,
manager,
02 manager’s boss
.
06
Input from 3-
6
employee’s \ADP
subordinates Formal
Steps meeting ,
discussing
and
agreeing in
03 writing
.
05
Self review
from
Manager preparing a
employee formal assessment
along 14 performance 04
dimensions
14 PERFORMANCE DIMENSIONS
ADP’S ACCEPTANCE IN U.S.
~80% of evaluation is already done under ADP

Peer feedback and self assessments added value to ADP

Managers could add value to reviews

Encouraged people to work together

Not embraced quickly in down the organizational level

Possibility of biased reviews by subordinates

Additional work in filling out, collecting and processing the forms

No reward for doing good in ADP for HR

ADP IN EASTERN HEMISPHERE - CHALLENGES
Eastern Hemisphere’s MBO – simple rating scale without joint goal setting; used as a simple
performance evaluation instrument
Asians not willing to open up like Americans

Confidentiality of ADP process?

Opposing radical change radical change

Language issues for local employees: ADP booklet following English

Developing broader skills vs increasing sales?

Time consuming : many open ended questions; comes at busiest time

Japan: criticizing a peer maybe seen as criticizing the boss himself

Indian: people hate paper work; because of so much competition, peer to peer review
would be very suspect
Singapore: job market is very tight, ADP which would give average rating to all employees
would result in people leaving the job for another job
OPTIONS
OPTION OPTION OPTION

01 02 03

Do Nothing Lim’s Hybrid Full

ADP Implementation
• Great cultural • Iterative change • Region needed
gap between less threatening shaking up
west & east • Step-wise • Wanted high
• Huge introduction of performance
commitment to ADP organizational
training & culture
development
 HYBRID PERFORMANCE
EVALUATION
Year 1 Year 2 Year 3 • Allow
people
50% 75% 100% to
gradual
YEAR 1 YEAR 2 YEAR 3 ly buy2017
the
change
• No
other
Asian
A B C company
• 180 degree feedback success
• No peer or subordinate feedback • 180 degree feedback • Adding subordinate review ful
• Assessing the hybrid plan for an accepted with
year • Adding peer reviews 360
degree
RECOMMENDATION

We should consider Lim’s proposition of making it

180 degree ADP
• If ADP evolved over time people will fine it easier to adapt
• They have large power distance because of which the reviews by subordinates might

Why? not be useful

• Most people don’t like criticism and peer reviews are not reliable as they are
competing for the same position
• Staff’s full support will be gained slowly as time passes

Actions : • Phase by phase implementation will be done by making them acquainted with ADP
culture and comfortable towards this idea
Thank you