HRM Challenges at Alden Auto Auctions Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Introduction

The paper attempts to conduct a SWOT Analysis of Alden Autos and elaborates key issues that must be addressed by the company if it has to make its internal business processes strong for global expansion. The paper also organizes the entire problems faced by the company towards the global expansion of Alden Autos Auctions. Lastly, the paper describes a full action plan for the recommendations provided to the company.

SWOT Analysis for Alden Autos Auction

Strengths

Alden Auto Auctions have 22 auctions under its belt which makes it the market leader in the east coast region of the United States after First Auto’s 18 auctions. Alden Autos successfully cater the niche market where it has agreements with vehicle companies in disposing of its used vehicles by selling it to the different companies.

Weaknesses

The company lacks the ability to control a larger business because the manpower of the company is less in number. The company is considered to be a small player in the market currently, and can only become a mid-size player when it successfully acquires First Auto. The company lacks the business processes, team, and resources to widen their network.

Opportunities

The major competitor of Alden Autos is First Auto which is near to file bankruptcy because of making investment in different businesses which failed to achieve its targets. However, it is an opportunity for the company to acquire First Autos and manage its business operations that could reveal profits. This would also provide the company with an opportunity to enter the Midwestern marketplace. Live Satellite, virtual auctions, customized approach auction, and globalization are some of the opportunities for Alden Autos.

Threats

If the company does not maintain its competitive edge in the market, then it would be most likely that Alden Autos would also file for bankruptcy. The company faces many managerial problems as its threat to forward and cater a broader market.

First Issue that must be addressed

The first key issue that must be addressed by the company belongs to the organizational design domain. The issue addresses towards a technological component of expanding its business into many alternatives presented. The company wants to implement Live Satellite, virtual auction system, customized options for consumers, and to expand globally are the key issues amongst which the company wants to address the feasible options. The core competency of the company depends upon these issues to gain a competitive edge in the market.

What needs to be done second?

The second issue that needs to be addressed is related to performance management domain. Many of the problems that have been created in the organization is because of poor performance appraisal technique applied by the company. While considering the entire working tenure of Tom Watters for six years, the company only rated the performance through a scale which is not enough to appraise the performance. Assessing the entire performance based on key job responsibilities of an individual and then providing feedback for performance so that the same mistakes shall not be repeated is considered as an adequate form of managing performance. Meeting the performance standards are measured on the basis of the key competency skills and as well as managerial skills in managing teams and to lead a team. Overall performance is measured through a set of skills devised by the company for a particular individual. Therefore, the company and the particular individual would never get to know the core reason for a poor performance if the performance is not measured perfectly.

Feedbacks allow an individual to make improvements in its performance. It was never revealed to Tom Watters about his lapses and the efforts were not made by the company to manage the weaknesses. Even in the case of Jan Denman, the company never focused on providing feedback in improving her performance due to which it made her feel more discontent and criticized the company openly with other employees. Therefore, improvements in performance can only be managed through performance management.

What will come next?

The next issue that has to be addressed is related to staffing. The internal promotion and transfer structures are poorly maintained by the company. Tom Watters did not have the interpersonal and leadership skills, but still he was promoted as the vice president of accounts without evaluating the key abilities required for the particular position and without knowing if Tom Watters has those particular abilities to fulfill the job responsibility for a particular position. However, when the company realized that Tom Watters would not be able to manage the task efficiently, then the company demoted him to director of accounting. The procedure of demoting provides a negative impression in the mind of employees and may result in high dissatisfaction.....................

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