Case Analysis: Slastyona Confectionary
The underlying issue is the introduction of compensation policies that would support Slastyona’s business strategy of rapid growth. Slastyona is willing to transform factory A into their flagship manufacturing site in Russia and in this region of the world, which would require changes in the compensation and benefits policies that are being applied. Taking into consideration the rapidly changing and complex environment in Russia, it is important pay and HR policies to be implemented that would allow Slastyona to attract, retain and motivate high performing individuals, in order to fulfill its objective to make Factory A state-of-the-art factory. The process of introducing those changes is hampered by the flux in the Russian pay market and by the General Manager of Factory A, Wilton Winchester, who is rather short-sighted, uncooperative and is opposing the planned changes at the factory.
Nadler and Tushman proposed four types of change situations: Tuning, Adaptation, Re-orientation, Re-creation (Nadler & Tushman, 1989). I believe that in the presented case characteristics and/or circumstances can be found that relate to two of the four outlined types of organizational change. Slastyona employs a business strategy of rapid growth. There are four factories functioning in Russia and a fifth one is about to open. The company operates in a flux environment, where managers and professionals are in scarce supply. Slastyona recognized that it has to revise its compensation policies in order to stay competitive and thus to attract and retain qualified staff, which would be needed, considering the future growth that the company is expecting. Hence, a tuning change in compensation policies in anticipation of future growth has been initiated by Slastyona. On the other hand, the provided information in the case implies that a re-orientation change is required in order Factory A to become the...
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