Page 157 - DMGT548_GLOBAL_HRM

Global HRM

Notes an executive who lacks the incentive to increase profits and boost share price. Meanwhile, the
government is working to curb the problem with new laws that close loopholes and make the
process more transparent. Combined with new analysis tools, investors are now much more
informed.

Task Make a study of compensations being paid to expatriates of different organisations
and analyse the difference.

Self Assessment

Fill in the blanks:

14. ……… compensation refers to the compensation received by the top executives of business
corporations.
15. Equity or ………. options are the contracts which give the recipient the right to buy the
share of the stock at a “pre- specified” exercise price for a pre-specified term.



Case Study Lucent Technologies

ucent Technologies was spun-off from AT&T in 1996, representing one of the most
successful initial offerings in history. Lucent conducts business in 94 countries with
Lmore than 1,30,000 employees. The company is one of the world’s leading designers,
developers and manufactures of communication system, software and products. Among
its most significant intellectual assets is the prestigious Bell Labs, which is the foundation
of Lucent’s research and development efforts.
HR at Lucent
While Lucent is competing in the rapidly changing technology market, and has become a
flexible and nimble ‘new’ organisation, it carries the legacy of AT&T. But it is dedicated to
break with that tradition with respect to how it manages human resources. Lucent’s goal
is to shift from the old ‘entitlement’ culture to a new culture that focuses on individual
accountability and results. The demand and challenges of this organisation renewal effort
are reflected in a Workforce that is relatively senior and where the number of retirees
exceeds the number of current employees. In contrast to AT&T, Lucent is very intensive
with more than 40,000 employee under union contract.
Within this context, Lucent’s HR is committed to the goal of ‘unleashing the power of
Lucent people for competitive advantage and superior business results.’ To support that
goal, Lucent is in the process of a major effort to restructure and refocus its HR function.
The new HR function intends to be fast, focused on business needs, and flexible. Its personnel
will achieve these goals by emphasising both operational excellence and value creation,
the latter reflecting a move away from an active focus on results. Finally, HR is committed
to raising the leadership profile of human resources at Lucent, with the belief that it can
provide value for its business partners, and it aggressively shares that story outside the
HR community.

Contd...

152 LOVELY PROFESSIONAL UNIVERSITY