BLACK & DECKER

EASTERN HEMISPHERE AND

ADP INITIATIVE
CASE ANALYSIS
Divyendu Jha PGP10018
Adarsh Shukla PGP10004
Chandan Arora PGP10014
Manvendra Singh PGP10030
Shree Khandelwal PGP10050
Nikhil Kandoi PGP10033
ABOUT
 Founded by Duncan Black and Alonzo Decker in 1910.
 Nolan Archibald has been Chairman, President and CEO of Black & Decker since 1986.
 The world's largest manufacturer of power tools, electric lawns and garden tools
 Seventh place in the US and nineteenth place in Europe
 The International Group was split into Latin America, and the Eastern Hemisphere
 Sales office in 19 countries
 In October 1995, Bill Lancaster was appointed President of Black and Decker Eastern
Hemisphere

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 PROTAGONISTS
Anita Lim
 Asia's Human Resource Manager
 Had been with Back and Decker for six years
 Opposed to the introduction of ADP plan
 Thinks change from MBO to ADP would be
radical
 Challenges the confidentiality of the ADP
system
 Risen from an entry level human resource
position to one of considerable authority in
Asia
Bill Lancaster
 Appointed president of Black & Decker
astern Hemisphere
 Held senior administrative positions for
black and decker from 1980 to 1990
 From 1990-95, he was the vice president of
sales and marketing, professional products
 He worked closely with Jim Barker,
Executive Vice President and President of
Worldwide Power Tools
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 MBO
 Jointly set clear and detailed goals for the subordinate for the coming year 

At the end of the 1980s, half of the Fortune 500 firms used MBO-type systems. 
Program in which subordinates will meet with each subordinate individually to discuss results
 Managers were required to hold at least one transitional meeting with subordinates during th
e year to discuss progress and provide coaching.
Not used to set a common goal only as a basic performance assessment tool in the Eastern
Hemisphere does not receive support from others in the company
 Jointly establish clear and comprehensive objectives for the subordinate for the coming year

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ADP
 Appraisal Development Plan (ADP), also called the 360 degree feedback approach to
performance appraisal relies on feedback from peers, subordinates and supervisors as
well as a self-appraisal

 Designed as a tool to develop people

 Can be used to build a highly functional and performance team

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 ISSUES RAISED BY MANAGERS ABOUT
ADP
 Asians might not willingly open up the way American do
 Anita Lim challenges the confidentiality of ADP system
 She thinks change from MBO to ADP is radical an Asians would not support radical changes
 Other concerns came up such as linguistic barrier
 cultural barriers in relation to how Asians compete with each other

Lancaster decided to talk to the more people and approached other members of MAC for
their reactions.

According to him :
• Who had seen it work in the US were excited and supportive
• Who had come from Eastern hemisphere from Europe were less convinced
• ADP were mostly about maintaining confidentiality 6
ALTERNATIVES
 First option was to do nothing and ADP plan should be put on hold
 To go with Lim’s recommendation to apply partial ADP model
 Implement ADP fully

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SUGGESTIONS
 For ADP to be most effective, employee training had to be given
  Therefore, businesses needed to spend additional costs and resources on employee development w
herever necessary
  If Lancaster is involved in the new ADP project, some of the cultural and other problems may arise
 Black and Decker hence must go through both a hybrid of MBO system and ADP system for
smooth transformation to ADP system gradually
 This will allow for gradual change, and changes can be made gradually over time.

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THANK YOU!!