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Business Process Reengineering at Star Electronics Star Electronics, a medium-sized firm located in the northwestern United States, was undergoing what the CEO referred to as “growing pains.” One year ago the company was awarded a substantial government contract to provide electronic parts to the military. Part of Star Electronics’ strategic plan, which was made explicit in their proposal to the government, was to reengineer the organizational design in order to improve quality. After being awarded the contract, the organization hired some very well-known and high-priced consultants to assist in their process improvement efforts. Chuck Hartley, CEO of Star, told his employees that the process improvements would not result in anyone being downsized. In fact, Star had been looking to hire and train additional employees to help meet the demands of the new contract. But, Hartley was very clear that the changes that lie ahead for Star would disrupt normal routines and that the organization would look very different in the future. Departments would be merged, some teams would be disbanded, and employees would be expected to share their knowledge and expertise with everyone in the organization. These changes were needed in order to identify and eliminate redundant activities, and most importantly, to empower employees on the front lines to make recommendations for improvements. Almost one year from the time these changes were first introduced, the results have been a mixed bag. On the positive side, quality has improved as the number of defects has drastically been reduced. Many of the line employees seem to be happier because their suggestions for improvements were acted on and they feel they are a more important part of Star. Unfortunately, not everyone is happy with the changes. The staff personnel, which include Human Resources (HR), Accounting, and Marketing, are having difficulty adjusting to the new organizational design. It seems especially true in the HR Department, which has six employees. Before the changes were introduced, the HR Department was generally seen as a close-knit group who shared duties. Meg Cosinni, the vice president of HR, allowed her direct reports to work on a variety of tasks. She encouraged members of her department to avoid specializing in one area, such as compensation. Instead, she allowed her staff to operate as HR generalists, where each member was given the opportunity to perform tasks related to hiring, appraising performance, salary and benefits, and compensation. Based on the recommendations of the consultants, this has all changed. Employees in the HR Department were asked to focus on the one part of their job they like best and to focus, or specialize, in that area. At first, Cosinni thought this approach might actually help her department’s productivity and cause fewer headaches. Unfortunately, it has had the opposite effect. Morale in the department is down, many associates are calling in sick, and their productivity has declined. 1.What was Star Electronics trying to accomplish with the restructuring effort? Overall, were they successful? Why or why not? 2.Using the terms introduced in the chapter, describe what happened to the HR Department employees’ jobs. How were the five core job dimensions affected by the changes in the department? 3.How could the problems in the HR Department been avoided?
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