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Human Resources Management Essay

3740 words - 15 pages

ASSIGNMENTUsing the information that you have gathered write a management report in which you:1.Critically assess the implications of Cap Gemini's business strategy and its current performance for the management of people within it.2.On the basis of your analysis make recommendations for Cap Gemini's short, medium and long-term HRM strategies that would address the issues you have identified. Your recommendations should include your proposed strategy for evaluating the implementation of the measures you recommend.TABLE OF CONTENTS1.INTRODUCTION12.CORE THESIS AND METHODOLOGY22.1.CORE THESIS22.2.METHODOLOGY33.ANALYSIS43.1.BUSINESS STRATEGY43.2HR STRATEGY43.2.1EMERGENCE OF CULTURE DIFFERENCES53.2.2VOILATION OF PSYCHOLOGICAL CONTRACT63.2.3EMPLOYEE DEVELOPMENT73.2.4PAY AND REWARD SYSTEM94CONCLUSIONS95RECOMMENDATIONS105.1SHORT-TERM (0-1 year)105.2MEDIUM-TERM (1-2 years)115.3LONG-TERM (2-4 years)12REFERENCES13BIBLIOGRAPHY16APPENDICES181.INTRODUCTIONCapGemini is one of the world's largest management and IT consulting firms. It offers its services in the management consulting, systems transformation and information systems management areas worldwide. The company is headquartered in Paris,France and employs about 60,000 people. The company's businesses are divided into four core areas: consulting, technology, outsourcing and local professional services. The company's clients are companies in various business sectors like financial services; healthcare; automotive; manufacturing, retail and distribution; life sciences; energy, utilities and chemicals; and telecom, media and entertainment. The company was founded in 1975 as Cap Gemini Sogeti and initiated an array of acquisitions where they acquired Sesa, French rival (in 1987); the Hoskyns Group, UK (in 1990) and expanded globally with takeover of another 22 European and US companies in the next five years (Datamonitor, 2004). Then in 2000, Cap Gemini merged with US consulting giant Ernst & Young (E&Y) to consolidate its position in North America, but due to market downturn and integration issues, it made huge losses thereafter (Figure 1). The incremental change in 2004 figure was due to the currency fluctuations in the dollar rate against the euro and to the acquisition of Transiciel on 31 December, 2003 (Datamonitor, 2004). Also the number of employees were reduced from 59, 549 in 2000 to 55,576 in 2003 (Big4, 2005).2.CORE THESIS AND METHODOLOGY2.1.CORE THESISAs with every IT vendor, beginning in 2000 CapGemini had to deal with the double whammy of an economic downturn and the bursting of the Internet bubble (VarBusiness, 2006). With the coincidence of Internet bubble burst and cultural integration issues related to CapGemini's merger with Ernst & Young in 2000, it had to face a dual predicament wherein it lost its clients as well as employees to its competitors with revenues plummeting in US especially.CapGemini was providing its services to customers around the globe through its teams'...

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