Medical and Environmental Electronic Devices Corporation Essay

BackgroundMedical and Environmental Electronic devices pot was founded in 1959. Initi on the wholey the core business was related to applications in aesculapian device technology. The guild started new business of Environmental control applications and achieved its reli adapted name in 1964. By 1979, MEED achieved 31% market sh be in its market bea. MEEDs competitors had only 20% and11% shares. MEED has headquarters 21 countries about the world including Westland and Michigan. Integrated Circuit Group was set up MEED to chance upon its accept for the customized circuits as semi-conductor industry is shrinking cod to the backward desegregation of major competitors, redirections and acquisitions.Hallmarks of MEED culture were ambiguity, desolatedom, flexibility, risk taking and a supportive emplacement towards employees. There was no established planning in MEED or change surface firs loosely coordinated caller-upwide plan was undertaken in 1980. Sales were growth at 30 % per yr for t he last five grades, stand out $1 billion in 1979. Profits for 1979 were $107 million. Tom Duglass is the theatre director of MEED since 1977. ICG is experiencing a shortage of human vision and is only providing 5-8% of MEEDs annual demand. modern plant set by ICG is overly experiencing problem in startup. The HRD incision headed by Barbara Hamlin is unable to fulfill their duty of providing the human mental imagery which is mandatory for the sound work of ICG. Employees profileTom DouglasGroup managerDom RaffaelliManager, ICG Advanced designLes HoganManager, ICG materialKenny LashManager of operations, ICG plantBarbara HamlinDirector, gracious Resource Development and planningQualitative factsThe Jackson Michigan, manufacturing plant, which began operation in July 1979, was still experiencing fractiousies in start-up and it was without delay the beginning of 1980. Barbara Hamlin in HRDP position was in charge for the fo cast of the IC Groups human resour ce need, with special attention to skipper and managerial personnel and to design and consume programs to meet those needs. MEED designed, manufactured, sold and serviced complex medical and environmental control systems. The working class market was exceedingly tight for exempt employees, especially the full(prenominal)ly practised engineers critical too ICGs work. MEEDs culture was unstructured, informal stigma it happen, fast growth, positive approach towards lot. There was no emphasis on formal planning Douglas sought to reorient ICG recruiting toward meeting needs with vivacious employees and recent college graduates.Given the MEED culture, it was also unreasonable to except that any peer little program manager would remain long enough to see wizard comp superstarnt through its entire life. Materials acquisition function was divided into dickens themes an operation throng that focused on such functions as drudgery purchasing and a strategic classify that deal w ith the commodity managements, IC Group manufacturing and custom projects. In the past a buyer in the operations group could manufacture a supervisor in operations, now a buyer had the additional option of staying with the acquisition exactly travel to a job in a strategic group The greater attention to manpower planning might have led MEED to determine ICG closer to the major sources of trained engineers, or perhaps even to recast its plan to enter the semiconductor industry. Employee mobility need at MEED also do planning difficult. According topersonnel policy, an exempt employee was considered movable after he or she had been in a job for one year. Bosses and subordinates found it difficult to conduct regular performance appraisals they were supposed to be conducted at least(prenominal) once a year as part of an employees stip destroy re cyclorama.Quantitative factsMedical and Environmental Electronic Devices Corporation was founded in 1959 Sales, growing at more than 30% per year for the last five geezerhood, excel $1 billion in 1979 profiles for 1979 were $107 million. The goal was to ensure that by FY1985, 50% of professional hires would be new college graduates. At the beginning of 1980, Ambroses group had openings for two out of five supervisory positions, and 13 out of 37 subordinate engineering slots. In 1980, ICG had 623 employees (plus 8 staff personnel), and 106 open positions to be filed. Annual turnover, while non high by industry standards, was rail close to 10% among exempt and 20% among non exempts.The average numerate of employees for 1979 be 24,900 and another were expected to be hired as MEED continued its rapid growth during monetary 1980. Starting as an idea and a group of 5 people in 1972, ICG had 66 people in 1975, but began its existing growth in 1977, reaching 448 employees at the beginning of fiscal year 1980. ICG was only manufacturing 5% to 8% of MEEDS semiconductor needs quite of the 20% planned. It took about 3 years of work at ICG for a college graduate be fully trained, but by working with these colleges to germinate programs and by providing equipment and dollar tire outations, ICG hoped to shorten on-the-job formulation to 1-1/2 years. A week lost could mean approximately $100,000 lost in lucre before taxes for MEED.Core ProblemThe main issue that MEED was facing was that at that place was an urgent need that thither was no formal planning due to which on that point was a need for the company to pay back a kosher amendments in HRM of the company and to make policies and procedures and implement them effectively as there was a shortage of Human Resource management at all levels at MEED. They were not having specialized engineers and managers in the require numbers is touching the corporation. There was a significant problem in attracting engineers capable of the allege of the art work that ICG technology demanded.The option of simply hiringin honorable people now met resista nce from those who pointed out that there were no free slots for these people until the growth actually took place. An estimation was make that IC groups exempt attrition would rise to an average of 15% per year and non exempt to 35% unless the group improved its recruitment, career phylogeny, performance, appraisals and promotion practices. ICG would need 241 hires in order to bring the employee total up to the target for the end of FY 1980.If we look at the exhibits 4 and 5 it could be observed that Barbara is at a very poorer level in the hierarchy, and is given vey less authority. If a separate HR department is created with swelled all HR responsibilities to the HR department than possibly all most the problems could be solved. early(a) problemsRecommendationsRepositioning of Barbara Hamlin in organizational structureWe think that she should report directly to Dave Bertram, the professorship of MEEDs to minimize the distortion between them and Barbara can printing the autho rity and she leave not have to take approvals from group heads. She is the one who have identified the problems in the system so she should be able to exercise authority so she can solve the problems. Having the backing of the president of MEEDs, people will know that she is a credible source of high authority and she should be followed. Once there is clarity in filament of command, then Barbara should concentrate in making of new human resource department which will include recruitment and selection, compensation and appraisal, training and development which is not addressed in the company till now.Hiring the right peopleProblem of ICG can be solved as there is low performance by the managers and engineers are working as managers and company dont have to hire right workforce and as a result they are performing at the top level. Supply of efficacious workforce is also limited that is also one of the reasons engineers are working as managers. Moreover, it is told in the case study that other companies have made col hollowations with universities and theyhire their technical staff and engineers automatically after they graduate. It is surpass for twain student and company because student will get job like a shot after he graduates and company can get fresh graduates that are fit for the organization. In exhibit 8, it is written at institutes, we work with real projects that means student can get a taste of professional life and projects even when they are students. Good compensation to retain employeesThe trade industry of China is very competitive. In order to get best results in the company, company should be able to retain the right employees who are worth it. HR department should make organized and intelligent purpose in retaining particular employees. As it is written in the case that giving $1000 a month and working for 20 years has become a standard of industry. Other than that, when an individual leaves the job, he or she gets a 30% pay rise on an average that means when labor in the market start doing job hopping it will take employees pays up automatically.Standardize the operating procedureThe first and foremost step that Barbara needs to take is that she should make procedure same for everyone. For e.g. in this case it was written that managers thought HRD is just for training the employees. So, Barbara should start working and should make everything formal including job analysis, job description, training & development and compensation plans. Employees should have sentiency of HR department of the company and employees should know clearly that what are they required to do. Once HR department comes in and take steps to make things formal then companys environment will also become professional as it is desired by HR department. procreation and developmentCompany is not very serious about the training of the employees as position of management development is vacant from some time. prepare is only given to manufacturing department in the company but it should be also offered to the designing department of the company. Training of design department will lead to more innovative designs and less flaws in the system.Exit interviewsWhen an employees is deviation the company he just have to go but one thing that company can do extra is the exit interviews as company can get a new point of view of the employee about the flaws of the company and how they can be improved. Cause of leaving company should be asked from the employees that also point out significant errors in the companys operations.Analysis of exhibitsIf we compare FY80, 81 and the current year in association to number of employees (exempt and non exempt) to the departments (advanced design, manufacturing and material) it could be clearly seen that currently there is a decrease in the number of employees in comparison to the year 80 and 81.Currently there are 6 managers in advanced design, 11 in manufacturing and 6 in material, where as in t he FY 1980 there were 30 managers and 1981 there were 47. Moreover, in the advanced design there are currently 97 employees with 116 in 1980 and 150 in 1981. In manufacturing currently 322, 1980 there were 564 and in 1981 there were 854.In the materials currently they have 204 employees in comparison to 1980 where there were 266 and in 1981 there were 425. Overall a decrease in number of employees could be observed. Exhibit 2 talks about the hiring requirements projections. The exhibit depicts the year period. It could be clearly seen that for all the three departments in association to the years there was an increasing trend. Exhibit 3 talks about the financials of 10 years from (1970 to 1979). It could be clearly seen that there was an increase in gross revenue net income and stockholders equity of MEED since the 7 year period. Though the sales were not steady but and increasing trend is observed.