Highlights
Exam case – problems at company „Consume All Globe” (CAG)
Kader Sheriff paced around the floor of his executive office, situated on the top floor of the “Consume All Globe” headquarters in Frankfurt. He was the newly appointed president of the division of beauty care products of the whole company. He had a great deal of issues on his mind….
Although he had spent already 10 years with CAG, his career so far has moved up the ranks of the technical side of the business - logistics and product supply. Despite having managed large groups of technical staff – logistics specialists, product planners etc., he had never worked with all functions of the business. Also, he was not that familiar with the full scope of all products being produced and sold, as he came from Middle East/Africa subsidiary where the not all global products were available, considering the local culture specifics. But he was selected for this job because the global company was in trouble, and he was known for his ability to turn things around and motivate his people.
The market for beauty products was quite diverse and full of different beauty products, most of them comparable to CAG was producing, but at lower costs. He had always felt that CAG could leverage the great research and development resources to create new and superior product that can be sold at a premium price, but at the current moment the innovation pipeline was dry as the Head of the R&D Department had just left to join one of the competitors. The company was holding its previous market shares only by reducing prices and applying discount policies for buying in bulk. Sales were flat and profits were down. People sensed all this and were avoiding him in the corridors, and not even willing to talk with each other. There were a lot of sick leave forms submitted, and you were never sure if the person is coming to the office next day or not.
Before him, the organization division had had a tense year under an autocratic leader who had a very directive leadership style. No wonder that the best performers had left the company not being able to handle his commanding attitude. There were important holes in the organization at senior, middle and entry level positions.
The remaining senior executives were still holding, but very reluctant to experiment or try something new or go outside their comfort zones. Performance management process was in place for many years, but most people were rated either “very good” or “not rated”. The evaluation parts of the performance management plans were written in copy/paste manner, so it was impossible to understand the specifics of the performance of any person.
The lack of staff was causing visible stress for the remaining people. About 20% of the positions on all levels (entry level, middle and senior) were vacant and for the first time as long Sheriff remembered, it was impossible to fill them from within, promoting people from the inside of the company, as best performers were leaving on regular basis. Sheriff knew that the problem was there – he could not afford to lose any more good performers. However, getting rid of worst performers was a challenge, as it was impossible to understand the real performance issues.
After taking this position, Sheriff had had individual talks with each of the Lead Team members. They all came to their office seemingly energized and each brought an impressive list of projects showing good progress in their specific area (marketing, finance, sales etc.), although overall company performance was weak, and these accomplishments were not moving company forward. Each Lead Team members suggested that there were serious problems in other areas of the business, blaming his colleagues, except the function they were managing. As several department head positions were vacant due to staff turnover, the last Lead Team meeting took place 6 months before Sheriff was appointed to his new position.
The Human Resources policies and systems that existed were created about 5 years ago, when the company was one of the market leaders. They were all aimed to attract and retain the best employees and “driven by the market” but did not seem to help or to hurt the employees. In fact, exit interviews showed that people left for companies where they were given promises to have more autonomy to make decisions themselves and different management style providing more flexibility. What Sheriff noticed that there were almost no females in mid-senior and executive levels, although the beauty products company was producing attracted a lot of females at the entry level. Before organizing a Lead Team member, Kader Sheriff first wants to share his observations and fears with the Human Resources manager. What would the HR manager suggest as biggest problems from his/her perspective?
Your task:
You are the Human Resources manager going to have a 1:1 meeting with the Business Leader. You need first listen to Sheriff’s perspective (as outlined in the description above) and then together create plan for the upcoming Lead Team meeting, first after 8 months. To start working on this, please try to answer the 2 following questions:
1) What are the main issues that you see in this situation from Human Resources Management perspective?
2) What HR processes/systems should be reviewed and/or changed? Why? Please, explain your opinion.
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