Case Analysis: Slastyona Confectionary

Problem statement

The underlying issue is the introduction of compensation policies that would support Slastyona’s business strategy of rapid growth. Slastyona is willing to transform factory A into their flagship manufacturing site in Russia and in this region of the world, which would require changes in the compensation and benefits policies that are being applied. Taking into consideration the rapidly changing and complex environment in Russia, it is important pay and HR policies to be implemented that would allow Slastyona to attract, retain and motivate high performing individuals, in order to fulfill its objective to make Factory A state-of-the-art factory. The process of introducing those …show more content…

Wilton Winchester is the head of the factory and he is the one, who has to lead and monitor the process of change. Without his active involvement the plan to build a flagship factory is doomed to fail.

Recommendations
The McGuire’s rule states that: “Sustainable, organization-wide change requires that at least three of the following levers of change be pulled simultaneously: mission/strategies, culture, people, leadership, policies, structure, work, and tools.”
• Wilton Winchester is not capable to lead a strategic change at Factory A. He is not a visionary leader, lacks the ability to see the “big picture” and what obstacles the future might pose in front of Factory A plans to become a flagship manufacturing site. I would advise Jeffrey Walker to replace the current General Manager, because as I stated above he is not cut out to lead a strategic change at the factory.
• In light of the heavy investment planned for Factory A, a major concern would be to hire and retain qualified staff. Therefore, an effective compensation policy has to be implemented at Factory A and Slastyona, which provides clear overview who gets paid what and for what reason.
• One of the most difficult changes that has to be implemented refers to the way the employees approach their work. As Wilton Winchester noted “the difference between the old style and the new style is night and day”. Slastyona and Factory A management has to put an emphasis