National Semiconductor Case Study

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National Semiconductor Case Study
HBS

Background
National Semiconductor (NSC), based in Santa Clara, California, manufactures integrated circuits in analog and mixed signal chips. NSC established the India Design Center (IDC) in Bangalore in 1995 to capitalize on the availability of a low cost and highly specialized labor force. 2002 has not been a good year for NSC, resulting in a net loss of $122 million. The IDC has gradually become NSC’s fastest growing overseas design house and is the “go-to” team at NSC that upper management relies on for new product development. However, IDC is in need of a robust management development program. The team recently instated a 360-degree (360D) feedback process as a managerial developmental tool. There were some hurdles but the process generally seems to be doing well. Meanwhile the high tech industry in Bangalore is seeing high turnover rates with many lucrative job offers in a hot labor market. As new managers are joining the IDC team, Ashok Kumar, the general manger of IDC is evaluating whether to continue with the 360D process or to allow new managers to integrate on their own. Problem Statement

While several symptoms have been discussed, the overall problems which require attention can be categorized into the following four: 1.What is the best method of integrating new members of the IDC management team? 2.Should there be continued development of the management team, and how best should this be accomplished? 3.IDC has operated as a silo, with respect to management at the Santa Clara headquarters. How best can IDC align with Santa Clara’s management practices and procedures? 4.IDC managers are not collaborating and communicating directly, resulting in missed deadlines, tension, and reduced morale. Discussion of Critical Issues

The 360D process has improved the coordination and communication of the current management team, and now this team faces the challenge of integrating new managers into an...
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