Academic journal article Journal of the International Academy for Case Studies

SLASTYONA CONFECTIONARY (A and B)

Academic journal article Journal of the International Academy for Case Studies

SLASTYONA CONFECTIONARY (A and B)

Article excerpt

CASE DESCRIPTION (A)

The primary subject matter of this case is the development of human resources management policies, specifically compensation, in a challenging and changing environment - Russia. Secondary issues are managing organizational change and leadership. Instructors in different disciplines (International Management, Human Resources Management, Change Management, and Leadership) should emphasize different aspects of the case. The case has a difficulty level of four; it is appropriate for senior level and first year graduate students. The case is designed to be taught in 1 1/2 class hours and requires 3 hours of outside preparation by students. The case may be taught with or without the Slastyona (B) case. The case is based on field research. The names of the company and managers have been disguised.

CASE DESCRIPTION (B)

The subject matter of this case is leadership and managerial competence. The case has a difficulty level of four; it is appropriate for senior level and first year graduate students. The case is designed to be taught together with the Slastyona (A) case, or in a follow-up class for approximately 1/2 hour. The B case requires 1 hour of outside preparation by students.

CASE SYNOPSIS (A)

Slastyona was a Russian confectionary firm with the foreign multinational corporation, INTERCHOC, as its majority shareholder. Through explosive growth (80% per year in volume from 2000 to 2003), Slastyona had captured a dominant share of the Russian market. In summer 2004, Slastyona's expatriate president, Jeffrey Walker, and Human Resources Director, Martina Espinosa, in light of the company's plans for further growth, hired an international team of management consultants. The consultants were asked to develop compensation policies including job analysis, job evaluation and grading, and pay scales for Moscow headquarters, the four confectionary factories, and sales offices throughout the country The HR Director's goal was to implement policies that would "attract, retain, and motivate high performing individuals in sales, manufacturing and support staff functions." The influx of MNCs to Russia had distorted pay standards in the country, creating a sellers' market for English speaking managers. Slastyona planned to transform its Factory A in the city of Nizhniy Novgorod into a "flagship" factory by investing in sophisticated, modern plant and equipment. HR and particularly compensation policies were needed to support growth. However, implementation of changes met with resistance by the expatriate General Manager of Factory A, Wilton Winchester.

Given the large investments already made in and planned for Factory A, and given the company's high expectations that it would become the "flagship" factory, the president asked the management consultants what should be done to implement their recommendations.

CASE SYNOPSIS (B)

The B case is designed to complement the Slastyona Confectionary (A) case by providing additional information on Wilton Winchester's leadership and competencies by providing a verbatim interview transcript. Winchester is the General Manager of Slastyona's Factory A. A team of management consultants completed a compensation project in the Slastyona A case and was to do a follow-up assignment that included interviews with managers. The B case begins President Jeffrey Walker asking the consultants "what they have learned" after interviewing Winchester. The rest of the case contains a transcript of a semi-structured interview with Winchester, designed to elicit comments that reveal behavior indicative of his leadership and managerial competencies.

INSTRUCTORS' NOTES

Suggested Teaching Approaches

Instructors may assign either the A case alone or both the A and B cases. The cases are appropriate for advanced undergraduate and graduate courses in International Management, Human Resources Management, Managing Organizational Change, and Leadership, The cases focus on three learning areas:

1. …

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