1. Presented by:
Avik Sutar 20HS61002
Manish Kumar 20HS61007
Sankalp Sharma 20HS61014
Soumya Roy 20HS61017
MHRM
Dept of HSS, IIT Kharagpur
The Coach who got
Poached
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2. Introduction
• Compunext Corporation is $2.5 billion company which made electronic
components
• It has various divisions focussing on different products
• Industrial Product was one of the smallest division
• It had only 15% of the Compunext sales
• It focussed on components used in machinery and in process controls for major
manufacturing firms
• Telecommunications division was the largest division accounting for a third of
the total sales
• It was also the most profitable and fastest growing division of the firm
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3. Characters Jared Gordon - President of the Industrial Products Division
Stan Simpson - Vice President of Sales in the Industrial Products
Division
Sue Patel - Compunext’s Vice President of Human resources
Hank Dodge – President of the Telecommunication Division
Mike Martinez – President of the Medical Devices Division
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4. Turnaround story
• Before Jared joined the Industrial Product division, it was in bad shape
• Income were declining for 3 years, and Return on Equity was around to 5%
range
• Analysts were even suggesting to sell off the division
• Jared joined the division around this circumstances
• He did customer and competitor analysis through which he retained only the
profitable products
• He also rearranged the operations of the 6 firms with help of consulting firm
which reduced the cost and increased productivity
• $12.5 billion investment was also made in new technologies to improve
productivity
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Contd…
5. Turnaround Story
• Jared enabled his employers with autonomy and shared
credit with them
• He also hosted awards ceremony to recognize the
employee for their contribution
• Because of the relentless pursuit, sales and profits had
increased 50%
• Analyst had now started including the division for its
future forecasts
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6. The Issue
The attrition in Jared’s Industrial Products division
especially of the good people
In the last 4 years, 10 people have left his division
7 of them went to other division within Compunext like
Stan
Rest 3 went to the competitors
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7. Cause of the problem
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Managers are given the freedom of raiding the other
department staff for their own
Lack of good Human Resource policies
Top Management is unresponsive about this situation
Lack of Talent and Leadership Development
programme
8. 01
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03
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Continuous Feedback must be taken from the employees
from all divisions regarding the issues with leadership or
work culture
Employees must be given new and challenging responsibilities
so that they can adapt and learn new skills
Promotions must be given to the employees based on their
performance and recognition of effort in the team
Top management must address the concerns and should hold
regular meetings with managers from different divisions
Human Resources policies must be revamped considering the
situation in the organization
06 Proper guidelines must be devised by the HR department for
transfer of employees to different divisions
Recommendations
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