"Euro-Mediterranean Managerial Practices and Issues" of the EFMD Case Writing Competition 2016.
The complexity of restructuring of large companies can hardly ever be ignored. ABB & Galindo brings up the dilemma of Esther, Human Resources director at the factory, when she is faced with the transition of a factory into a service center. This meant either relocating, retraining or letting go most if not all of the current workers, with the additional complication that even after the official announcement the factory still had to run for another 18 months. This case also has a part B.
ABB and Galindo: Winning the Peace (B) RH1-148-B-I
Part B of this case goes beyond the organizational problems of the restructuring described in part A, and addresses the personal situation, commitment and management of the emotions during the mentioned process. This part goes into details of how Esther decided to go above and beyond in many aspects to help resolve the personal situation of workers and managers alike with the best of all of their abilities.
The case follows the implementation of ABB´s decision to restructure its operations in Spain and close the manufacturing line at its Galindo factory in the Basque Country. ABB was required to enter into formal negotiations with its workers towards a Labor Force Reduction Procedure (ERE). The workers at Galindo strongly objected to ABB´s restructuring proposals and were not placated by the company´s generous offers of compensation and employee retraining. The workers employed a number of strategies to derail the ERE including appealing to local politicians and engaging in public protests. After negotiations failed, a final decision was made to approve the ERE by the Ministry of Labor in Madrid.
This interactive multimedia case describes the story of the redundancy process carried out by the architectural studio, Rogers Stirk Harbour and Partners, at the beginning of 2009. The case focuses on how this important studio, which was well-known for having a closely knit, employee-orientated culture, managed this process. The case begins with an introduction to the studio before moving on to hear the reasons of the partners for having to make redundancies. The final section of the case includes an interactive exercise in which students must make recommendations about how the company should manage the process. A dedicated professor's page, which can be shown in class, analyzes the results of the student exercise and also includes a full reaction to the process through various video interviews with employees.
This case lies within the field of Human Resources Management and is fit to be used in such courses across all kinds of postgraduate programs. To date, it has been used successfully in MBA, Executive MBA, Executive Education courses and other management programs.
Organisational Behaviour | Human Resources | Negotiation