What human resource management-related steps did siegel take to help get Tyco back on the right track? Do you think she took the appropriate steps? What, if anything, do you suggest she do now? Laurie Siegel was recruited from Honeywell international to help rebuild Tyco. Laurie siegel was appointed as the senior vice president of the human resources at Tyco international; she took over the job just after numerous charges forced the company’s previous board of directors and top executives to leave the firm. The following are the related steps seigel took to help get Tyco back on the right track: 1. Effective recruitment and selection process:
Since in Tyco due to the recent account scandal most of its top management and directors were fired, so the first thing Siegel did was to put in a process to attract the best talent in the company. Getting the best talent into the company was challenging, as these recruits intern would be responsible for the future prospects of the company. Siegel was able to hire the best possible people thru an effective recruitment process. 2. Emphasis on Talent development and effective training:
Before Siegel took over no emphasis was given to the talent development and training of the employees.Seigel understood the importance of talent development and training and gave more importance to these departments which was a positive step taken by her. Employees now had an option to get trained and to pursue different carrier options with in the company. This step taken by Siegel showed that the company cared and showed interest towards the development of its employee’s .Siegel created a database of employee skills to make it easier to promote people into other divisions. Creating a database also helped in keeping a track of all the employees and related skills, this helped in better training and development activities. 3. Increasing and recruiting more number of independent auditors: Siegel did not change the existing ethical policies. She increased the number of internal auditors, so that they can monitor all the activities. 4. Conducting seminars on ethical policies:
Steps were taken to communicate across all employees the ethical policies followed by the firm. All the employees were asked to attend the ethical trainings and seminars so that they could tackle the ethical issues in their work. Also various disciplinary actions steps which would be taken in case of violation were clearly explained in these various sessions. 5. Change in the bonus plan:
She replaced the system of awarding huge bonuses to anyone who somehow drove numbers up and brought in method of “performance pay” which includes as to how managers set and meet their goals. This lead to an effective decrease in bonuses by 25% or by $90 million from previous year. 6. Installation of IT systems:
IT executives to implement effective communication and IT system for better communication across the various departments and across various businesses in different countries. Also emphasis was given to corporate governance. I agree with most of the steps taken by Siegel to bring the company back on track. These steps were necessary to bring back the company back on track. These steps were taken to bring the company back on its feet again and also to make sure that further such scandals don’t occur in the near future and also the company can concentrate on its core competencies. Suggestions:
I would suggest reviewing the current ethical policies present, since in spite of all the policies present the scandal took place. Some more confidence building measures can be taken so that the employees and the stakeholders believe that the company is truly trying to avoid such scandals. More clarity can be given to the new compensation and bonus policies, the employees should be bought into confidence. Employee feedback can be taken to further improve the policies and bring in more employee engagement processes. External audit can be taken...