Introduction: CEO in 2008: Kasper Rorsted, Studied Economics and has experience in technological companies. Management style was based on face-to-face conversations and pushing for more efficiency. Henkel until 2008 Founded in 1876 as a producer of detergent, by 1920 it was a leading German detergent en glue producer.
After WWII: company restarted as a producer of detergent, glues and personal care products. In 2008: 14 billion euros sales over 125 countries: 2008: 14 billion in sales (+8%) EBIT-margin (10,3%) =>no competitive spirit?! (“The happy underperformer”) 2nd part of 2008: Financial crisis: Price increase by Henkel =>growth in all the business units fell. Reaction of Rorsted (CEO): transform the company into a leaner and more performance driven company by setting 4-year financial goals (2012) for Sales growth (3-5%) – Biggest acquisition ever of 3,7 billion euros for the adhesives and electronic material businesses of the National Starch and Chemical Company. – Dial brand: high investments in North-America =>top brand in body wash markets.
Selling underperforming brands. Vision and Values Focus on financial goals and priorities =>becoming a winning competitor 10 values (see exhibit 5): but they had little meaning inside the company BUT: the CEO Thought they had..2010: Henkel: ” a global leader in brands and technologies” putting customers central A lot of employees have careers of over 20, 30 or even 40 years within the company. 2009: new performance management system for 4 layers of management.
For each employee there was: 1) the current rating of his performance and 2) potential performance for the future. These were put in a grid (exhibit 7) with scores going from L (low), M (moderate) to T (Top) For potential performance numbers were used from 1 to 4 with 4 the limit of performance of someone. These rankings were set up during a Development Roundtable (DRT), a collaborative forum with a group head and his direct reports. Afterwards, the results were discussed during a one-to-one with the employee.
DRT-processes were done bottom-up. Targets were set about how many employees should be fitted in a certain category. E.g; 5% had to be L =>caused a different way of analysis within the business.
Bonus compensation Bonusses were linked to the overall company financial performance, team performance and individual overall performance.
Basic approaches to the study of cultural diversity Essay
With rapid medical and scientific progress, advanced means of connection and travel, more and more people travel abroad, as well as the range of functions they tend to accomplish, enlarged ...
Accounting as a discipline has no theory Essay
Accounting is concerned together with the collection, research and conversation of economical information, which is often used to generate decisions and plans regarding business simply by various users. The Panel ...
Cross-cultural communication Essay
Cross-cultural communication can be an art which will cannot be applied without mental and non-verbal communication. Interacting with people of the same culture needs certain abilities so bonding across distinct ...
Legal aspects of cultural diversity Essay
Cultural range is of great essence to any community, as diversity is important to the living organisms that may in fact , get their ecological system adversely damaged, lack of ...
The Native Family Versus the Dominant Culture Essay
The latest interest in what has come to become called “multicultural” literature features focused essential attention in defining it is most prominent characteristic: authoring a text which attracts at least ...
Childhood Development Essay
Patterson and Bronfenbrenner created a comprehensive reason of the role that a child’s context performs in their developing process. Those two sociologists claim that children’s culture, raising a child style, ...
A multicultural counselor Essay
It is crucial that a modern counselor possess ample tactics in order to be successful in multicultural counseling. This is because the counselor handles consumers who have diverse cultures and, ...
Theory Of Value Essay
The term value is usually defined by the Merriam-Webster dictionary as the relative worth in terms of cash, materials or perhaps services. The same expression has a customized meaning once ...
What Is Success Theory of Knowledge Presentation Outline Essay
My topic was, what is achievement? And the primary knowledge issue I aimed at is, should success end up being measured in happiness or perhaps money? The idea of success ...
AP World Case Study Essay
Real picture Questions Perimeter Review Questions 1 . What similarities and differences happen to be noticeable among the three key continents of the world? 2 . How didthehistory of Meroë ...
