Strategic Analysis of HR for Alcatel-Lucent: A merger facing HR & management culture issues

Thèmes abordés

Human Resources Management Strategic Analysis of HR for Alcatel-Lucent: "A merger facing HR & management cultures issues"

Résumé du document

In this document, we focus on the analysis of the human resources function of a huge company, which is unique because it is in the perspective of a merger between Alcatel and Lucent. We have first presented an overview of the merger to position the sector, and concluded this part with a SWOT analysis, in order to identify the main opportunities to improve the human resources within the company. In a second part we positioned the human resources in the company with a summary and overview.

The main part deals with the strategic and HR planning with the different values and the strategic and HR goals in terms of capabilities and capacities needed to reach the objectives. We have also analyzed how the workforce is involved in order to achieve the mission statement and match with the corporate values.

Later, we analyze the HR plans and methods of hiring and succession planning. Finally, we conclude with an analysis of the differentiating factors of cultures between the French and American management.

Human resources represent a major department, which has an essential role in leading a company on the path to success. This is the basis of each company, because it is the guide of all the directions of the board, and allows the creation of the environment of the company, and the guidance of all the people who are going to work within the company. In fact, it is a way of controlling the internal and external environments of the company.

In our case, we chose to study the strategic analysis of the Human Resources of the company Alcatel-Lucent. Alcatel-Lucent is a very specific company and has a system which faces many issues related to the restructuring of the organizational alignment.

Through this analysis we are first going to present the company Alcatel and its merger with the company Lucent. It will be interesting to see why they decided to merge, and the reasons why it makes thing harder, as seen by the fact that both companies were in troubles as a result of it. We are also going also to identify the main strategic goals reached, and those formulated in order to be reached. Moreover, it will be necessary to pay attention to the workforce engagement of the company, it capability and its capacity.

In the second part, we will talk about the succession planning which plays a major part in the case of Alcatel-Lucent. In fact, is the main reason why I chose Alcatel-Lucent as the subject is that it is a merger in a very specific industry, and requires building a complicated Human Resources management, because of the need to deal with the HR department of each respective company. This is the factor which will bring us to an analysis of the cultures of Europe for Alcatel and America for Lucent.

Extraits

[...] The issue was that the results were lower with a turnover of billion. In 2007, the merger announced layoffs for 9,000 people. Moreover, the net result was billion. Both companies merged unless they were both in financial difficulty. Who are Alcatel-Lucent customers? The main customers of Alcatel-Lucent are mobile operators (Orange, Verizon, and SFR); businesses and public entities in mature markets are traders who have reduced their investment and competition between suppliers as an invitation to supply, and the emerging market. [...]

[...] This is the factor which will bring us to an analysis of the cultures of Europe for Alcatel and Lucent for the American one. Alcatel Lucent, a merger Alcatel & Lucent This is a company created in France and its sector of activity is the conception and production of telecommunication equipments. The company was created in 1898 and was first named During the years, Alcatel developed itself on a vertical strategy by progressing in its activities in the field of energies and transport. [...]

[...] In fact, the group which was the world leader in telecommunication during several years was defeated. The giant American competitor took the place of leader. Activities Activities of Alcatel are regrouped under 3 segments. These segments are: - Networks activities - Optic networks activities - E-business activities Alcatel-Lucent is operating in more than 130 countries. They have a strategy “Think global, Act local”. The turnover realized by the company in 2009 represents 15.2 billion in 2009[1]. Alcatel-Lucent Main Corporation is based in France. Lucent is an American company created in 1869. [...]

[...] The need is to know if the person is matching with the values of Alcatel-Lucent. - Interview: The two techniques used are the situational interview and the behavior description because the need is to know if the candidate will be efficient in its job career, and to know more efficiently if he can accomplish its missions. The final step: Training If the candidate succeeds in the tests with the CHRO, he is going to begin a training program which is going to integrate him in the company and be trained to do his work. [...]

[...] Culture & international HR management French and American culture models opposed When the companies merged, the management was equally shared between Serge Tchuruk for the French company and Patricia Russo for the American one. But in reality, it was not the case. In fact, the management was influenced by the takeover of Alcatel on Lucent. Details as the annual report dedicated to Mr Tchuruk were signs to insist on the main domination and position of Serge Tchuruk in the organization. This is the risk in such a merger between 2 different cultures. [...]