The purpose of this article is to summarize the HR issues presented in the article "HR Woes at Xerox" by Robert J. Grossman, published in HR Magazine, May 2001, volume 46, issue 5.
The first important point is that HR problems are pervasive in an organization and even affect the bottom line. Xerox had a long tradition of a positive corporate culture, and many people wanted to work for the company; Xerox counted on its HR department to maintain this positive culture, which was famous for training, employee development and sales selection policies. This paid off, when the company was under attack from the low-price competitors of Japan, they were able to have full support implementing a TQM policy, pare back and bounce back from problems in the 1990s.
In contrast, today the company is cutting back by laying off employees and cutting benefits; these tactics cause anxiety, fear and frustration in employees rather than inspiring loyalty. Also, the role of HR was changed from the voice and supporter of employees to the implementer of management policies; this causes HR to be feared and suspect among employees. Management is heavy-handed and the format is bureaucratic (top-down); employee empowerment, ownership and participation are no longer encouraged. Without the strong leadership from above and especially from HR, along with promotions and power allocated on office politics, the workforce has become "disenfranchised" and no longer cares. They are easy pickings for recruiters who recognize that Xerox hires the best talent and because of the negative environment, cannot retain them. There was also a huge uproar after two waves of massive job cuts.
In response to the demoralization of the workforce, Xerox is working to restore benefits and retain its employees, although they are still pushing an unpopular and poorly initiated sales force reorganization. Yet, more benefit and job cuts are in the future as Xe
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