Htc

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Honeywell is a Fortune 100 company that invents and manufactures technologies to address some of the world’s toughest challenges linked to global macro trends such as energy efficiency, clean energy generation, safety and security, globalization and customer productivity. With approximately

132,000 employees worldwide, including more than 22,000 engineers and scientists, they have an unrelenting focus on performance, quality, delivery, value and technology in everything we make and do.

Honeywell International Inc. (Honeywell), incorporated on November 24, 1985, is a diversified technology and manufacturing company, serving customers worldwide with aerospace products and services, control, sensing and security technologies for buildings, homes and industry, turbochargers, automotive products, specialty chemicals, electronic and advanced materials, process technology for refining and petrochemicals, and energy efficient products and solutions for homes, business and transportation. Honeywell operates four business segments: Aerospace, Automation and Control Solutions, Performance Materials and Technologies, and Transportation Systems. In July 2014, the Company announced that it has completed the sale of its Friction Materials (FM) business to Federal-Mogul.

Honeywell’s Aerospace segment is a global provider of integrated avionics, engines, systems and service solutions for aircraft manufacturers, airlines, business and general aviation, military, space and airport operations. The Company’s products/services classes include turbine propulsion engines, auxiliary power units (APU’S), environmental control systems, electric power systems, engine systems accessories, avionics systems, aircraft lighting, inertial sensor, control products, space products and subsystems, management and technical services, and landing systems. During the year ended December 31, 2011, approximately 18% of total sales of Aerospace-related products and services were exports of United States manufactured products and systems and performance of services, such as aircraft repair and overhaul.

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BACKGROUND

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Company Perspectives:

The new Honeywell. Global, progressive, and enriched by a long heritage of innovation and achievement. What makes our future so exciting? Our range of products and services, and our diversified portfolio of businesses. The opportunities we continue to discover and develop worldwide. Our employees' potential to

explore new ways to do things, learn new skills, and make a real impact on modern life. And perhaps most of all, our carefully built, unprecedented balance of strengths. Technological innovation, leadership, outstanding people and track record of delivering for our customers. "Everything is still in plan.

Honeywell’s Business Units:

Aerospace:

Honeywell Aerospace mechanical and electrical aviation products are used today on virtually every aircraft platform. We invent and integrate thousands of products and services that deliver safe, efficient, productive and comfortable experiences worldwide. Our solutions include flight and runway safety, air traffic management, propulsion, in-flight connectivity tools, precision guidance, wheels and brakes and logistics services used in commercial aviation, business and general aviation, and defense and space.

Automation and Control Solutions

Honeywell Automation and Control Solutions (ACS) develops and manufactures environmental controls, building solutions, personal protective equipment, life safety, security, sensing, scanning, and mobility products that enable safer, more comfortable, more secure, and more productive environments. Our products and solutions, at work in 150 million homes, 10 million buildings, and hundreds of gas and electric utilities worldwide, give customers the ability to capture more and better data faster and across a wireless landscape, improve productivity, safety, and security, drive better decision making, and reduce costs.

Performance Materials and Technologies

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Honeywell Performance Materials and Technologies (PMT) is a global leader in developing advanced materials, process technologies and automation solutions. It manufactures a wide variety of high-performance products, including environmentally friendlier refrigerants and materials used in the production of products such as bullet-resistant armor, nylon, computer chips and pharmaceutical packaging. Process technologies developed by PMT’s UOP business form the foundation for most of the world’s refiners, efficiently producing gasoline, diesel, jet fuel, petrochemicals and renewable fuels, and PMT’s Process Solutions business is a pioneer in automation control, instrumentation and services for the oil and gas, refining, pulp and paper, industrial power generation, chemicals and petrochemicals, biofuels, life sciences, and metals, minerals and mining industries.

Overview:

The Company competes with Rolls Royce/Allison, Turbomeca, United Technologies, Williams, Auxilec, Barber Colman, Dukes, Eaton-Vickers, General Electric, Goodrich, Liebherr, Pacific Scientific, Parker Hannifin, TAT, Safran, BAE Controls, Boeing/Jespersen, Garmin, Kaiser, L3, Lockheed Martin, Northrop Grumman, Rockwell Collins, Thales, Trimble/Terra, Universal Avionics, Universal Weather, Hella, LSI, Luminator, Whelen, Astronautics, Kearfott, GEC, L3 Com, KVH, Rockwell, Rosemount, Ithaco, Raytheon, Bechtel, Boeing, Computer Sciences, Dyncorp, Exelis, SAIC, The Washington Group, United Space Alliance, Meggitt and Messier-Bugatti.

Automation and Control Solutions

Honeywell’s Automation and Control Solutions segment is a global provider of environmental and combustion controls, sensing controls, security and life safety products and services, scanning and mobility devices and process automation and building solutions and services for homes, buildings and industrial facilities. The Company’s product/service classes include environmental and combustion controls; sensing controls, security and life safety products and services, scanning and mobility, process automation products and solutions, and building solutions and services. Approximately 3% of total during 2011 sales of Automation and Control Solutions products and services were exports of United States manufactured products.

The Company competes with Bosch, Cherry, Danfoss, Eaton, Emerson, Endress & Hauser, Freescale, Semiconductor, GE, Holmes, Invensys, Johnson Controls, Omron, Schneider, Siemens, United Technologies, Yamatake Measurement Specialties, Draeger, Hubbell Inc, Mine Safety Appliances, Pelco, Phillips, Riken Keiki, Siemens, Tyco, 3M, Datalogic Intermec Technologies, Iridium Vars, Motorola Solutions, Psion, Skywave, Tsi, ABB, AspenTech, Yokogawa, Ameresco, Chevron, GroupMac, Ingersoll Rand, Local contractors and utilities, Safegate, Trane and Thorn.


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Honeywell’s Performance Materials and Technologies segment is providing customers with technologies and materials, including hydrocarbon processing technologies, catalysts, adsorbents, equipment and services, fluorine products, specialty films and additives, advanced fibers and composites, intermediates, specialty chemicals, electronic materials and chemicals. The Company’s product/service classes include Resins & chemicals, Hydrofluoric acid (HF), Fluorocarbons, Nuclear services, Research and fine Chemicals, Performance chemicals Imaging chemicals Chemical processing Sealants, Advanced fibers & composites, Healthcare and packaging, Specialty additives, Electronic chemicals, Semiconductor materials and services, Catalysts, adsorbents and specialties, Process technology and equipment, and Renewable fuels and chemicals. Approximately 34% of total during 2011 sales of Performance Materials and Technologies products and services were exports of United States manufactured products.

The Company competes with BASF, DSM, Sinopec, UBE, INEOS, Mitsui, Shell, Polimeri, Mexichem Fluor, Solvay, Arkema, Dupont, Mexichem Fluor, Daikin, Sinochem, Cameco, Comurhex, Rosatom, Avecia, Degussa, E. Merck, Thermo Fisher, Scientific, Lonza, Sigma-Aldrich, Atotech, Teijin, American Biaxis, CFP, Kolon, Unitika, Clariant, Westlake, KMG, Brewer, Dow, Nikko, Praxair, Shinko, Tosoh, Axens, WR Grace, Haldor, Shell/Criterion, BP/Amoco, Exxon-Mobil, Chevron Lummus Global, Chicago Bridge & Iron Koch Glitsch, Linde AG, Natco, Shaw Group, Shell/SGS, Neste Oy, Lurgi, Kior, Syntroleum and Dynamotive.

Transportation Systems

Honeywell’s Transportation Systems segment is a manufacturer of engine boosting systems for passenger cars and commercial vehicles, as well as a provider of braking products. The Company’s product/service classes include Charge-air systems, Thermal systems, and Brake hard parts and other friction materials. Approximately 3% of total during 2011 sales of Transportation Systems products were exports of United States manufactured products.

The Company competes with Borg-Warner, Holset, IHI, MHI, Behr, Modine, Valeo, Advics, Akebono, Continental, Federal-Mogul, ITT Corp, JBI, Nisshinbo and TRW.

Competitions:

Honeywell is subject to active competition in substantially all product and service areas. Competition is expected to continue in all geographic regions. Competitive conditions vary widely among the thousands of products and services provided by the company and vary by country.

Top Competitors

Among Honeywell's top competitors are companies like BorgWarner, Johnson Controls, United Technologies, Rolls-Royce, Turbomeca, Williams,

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SAFRAN, Parker Hannifin, General Electric, Northrop Grumman, The Boeing Company, Thales, BAE Systems, L-3 Communications, Rockwell Collins, Siemens, ITT Corporation, Eaton, Bosch, BASF, and Goodrich Corp. (now part of United Technologies). For a full list of all major competitors, please see below.

Competitive Conditions:

Depending on the particular customer or market involved, Honeywell competes on a variety of factors, such as price, quality, reliability, delivery, customer service, performance, applied technology, product innovation and product recognition. Brand identity, service to customers and quality are generally important competitive factors for the company's products and services, and there is considerable price competition. Other competitive factors for certain products include breadth of product line, research and development efforts and technical and managerial capability. While Honeywell's competitive position varies among its products and services, the company is a significant competitor in each of its major product and service classes. However, a number of the company's products and services are sold in competition with those of a large number of other companies, some of which have substantial financial resources and significant technological capabilities. In addition, some of Honeywell's products compete with the captive component divisions of original equipment manufacturers.

Honeywell Continues Worldwide Presence and Future Growth

Thermostats are still a major part of Honeywell's business; today home and commercial accounts together make up a quarter of Honeywell sales. In the commercial arena, Honeywell designs computerized control systems that regulate heat and electricity flow for large buildings, and also manufactures its own switches, electronic parts, and motors for these systems. The company has also ventured into "smart" buildings that regulate themselves with packages that can link together a building's phone lines, control devices, and information systems.

When David M. Cote took over as Chairman and CEO in 2002, global operations and company growth were continuing to thrive at Honeywell. By 2002 the company had customers and products in more than 95 countries and employed 43,000 people worldwide. Its footprint included the Asian Pacific, Europe, Middle East, Africa, and Latin American regions, and incorporated all aspects of the Honeywell business--manufacturing, aerospace, control technologies, turbocharging systems, chemical, power generation, electronics, and others. On the home front, Honeywell worked with the Federal Aviation Administration on air safety initiatives in the wake of the September 11, 2001, terrorist attacks. For the near future, the company also outlined commitments to employee learning and satisfaction, superior customer service and product quality, and desires to continue building up the businesses.

Principal Subsidiaries: Honeywell Aerospace; Honeywell Automation & Control; Honeywell Industrial Control; Honeywell Measure Corp.; Honeywell Transportation & Power; Honeywell Consumer Products; Honeywell Sensing and Control;

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http://www.bga-aeroweb.com/Rockwell-Collins.html

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Honeywell DMC SVC Inc., Honeywell Friction Materials; Honeywell Federal Systems Inc.; Honeywell Finance Inc.; Honeywell Asia Pacific Inc. (Hong Kong); Honeywell Ltd. (Canada); Honeywell Europe S.A.; Tata Honeywell Ltd. (India, 50%); Goldstar-Honeywell Co., Ltd. (South Korea, 50%).


Honeywell's Performance Materials and Technologies business can trace its heritage to a small sulfuric acid company started by chemist William H. Nichols in 1870. By the end of the 19th century, Nichols had formed several companies and was recognized as a force in America's fledgling chemical industry. Nichols's vision of a bigger, better chemical company took off when he teamed up with investor Eugene Meyer in 1920. Nichols and Meyer combined five smaller chemical companies to create the Allied Chemical & Dye Company, which later became Allied Chemical Corp., and eventually became part of AlliedSignal, the forerunner of Honeywell's Performance Materials and Technologies business. Meyer went on to serve in the Coolidge, Hoover, and Truman administrations and to buy the Washington Post newspaper in 1933. Both he and Nichols have buildings named after them in Honeywell's headquarters in Morristown, New Jersey. Andreas Kravis is the current President and CEO of the Performance Materials and Technologies division.

GE-Honeywell merger attempt

General Electric announced in 2000 it would attempt to acquire Honeywell; at the time, Honeywell was valued at over $21 billion. The merger was cleared by American authorities but was blocked by the European Commission's competition commissioner, Mario Monti, on July 3, 2001. This decision was taken on the grounds that GE's dominance of the large jet engine market (led by the General Electric CF34 turbofan engine), leasing services (GECAS), and Honeywell's portfolio of regional jet engines and avionics, the new company would be able to "bundle" products and stifle competition through the creation of a horizontal monopoly. US regulators disagreed, finding that the merger would improve competition and reduce prices; United States Assistant Attorney General Charles James called the EU's decision "antithetical to the goals of antitrust law enforcement". In 2007, General Electric acquired Smiths Aerospace, which had a similar product portfolio.

The current "Honeywell International Inc." is the product of a merger between AlliedSignal and Honeywell Inc. in 1999. Although AlliedSignal was twice the size of Honeywell, the combined company chose the name "Honeywell" because of its superior brand recognition. However, the corporate headquarters were consolidated to AlliedSignal's headquarters in Morristown, New Jersey rather than Honeywell's former headquarters in Minneapolis, Minnesota. When Honeywell

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closed its corporate headquarters in Minneapolis, over one thousand employees lost their jobs. A few moved to Morristown or other company locations, but the majority were forced to find new jobs or retire. Soon after the merger, the company's stock fell significantly, and the stock value only regained the pre-merger level in 2007.

In January 2002 Knorr-Bremse – who had been operating in a joint venture with Honeywell International Inc. – assumed full ownership of its ventures in Europe, Brazil, and the USA. Bendix Commercial Vehicle Systems became a subsidiary of Knorr-Bremse AG. Although declining in influence, Honeywell maintains a presence in emerging industries, such as Northern Alberta's oil sans. Honeywell's Plant integrator is currently deployed in some of the most important plant-sites in the Oil Sands (Sync rude, Suncor, and others).

In December 2004, Honeywell made a £1.2bn ($2.3bn) bid for Novar plc. The acquisition was finalized on March 31, 2005.

In October 2008, Honeywell Ltd. was named one of "Canada's Top 100 Employers" by Mediacorp Canada Inc., and was featured in Maclean's news magazine. Later that month, Honeywell was also named one of Greater Toronto's Top Employers, which was announced by the Toronto Star newspaper.

In January 2013, Honeywell shut its subsidiary Ex-Or's factory in Haydock, Merseyside, UK.

In January 2014, Honeywell Aerospace launched its Smart Path Precision Landing System at Malaga-Costa del Sol Airport in Spain, which augments GPS signals to make them suitable for precision approach and landing, before broadcasting the data to approaching aircraft.

7THEME

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HONEYWELL IS INDEED A GOOD COMPANY BUT HAS

GOT A LOT OF LACKING, AND ALL OF THEM ARE IN

EITHER WAY RELATED TO THEIR R&D SECTOR, IF THEY

CAN COME OUT OF THOSE THEY ARE JUST PERFECT AND

THUS THEY WILL SUCCEED IN THE LONG RUN. THEIR

PROBLEMS ARE LIKE THIS THAT THEIR MOST DEMANDED

PRODUCTS ARE THOSE WHICH CAME OUT FIVE YEARS

BACK, LESS INTERACTION BETWEEN THE PERSONS

WORKING FOR HONEYWELL, THE SPACE AND AVIATION

TECHNOLOGY HAD NO IDEA ABOUT THE MARKET GO-ON

OR THE TRENDS AND A MUCH SMALLER PERCENTAGE OF

R&DS WAS CARRIED OUT EITHER IN EUROPE OR IN

MINNEAPOLIS FOR EUROPEAN SOLUTIONS. MOREOVER

THEY ALSO SAY THAT HONEYWELL REALIZED THAT

GOVERNMENT MILITARY SPENDING WAS DECLINING AS

THEY MERGED OUTSIDE.

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WHAT STRATEGIES SHOULD HONEYWELL TAKE INTO

CONSIDERATION SO THAT IT CAN BUILD AN EFFECTIVE GLOBAL

R&D CAPABILITY WHILE REPRODUCING THE ORGANIZATIONAL

CULTURE OUTSIDE THE BOUNDARY OF UNITED STATES THROUGH

PROPER CULTIVATION OF A NEW MANAGEMENT SYSTEM AND

WHAT TECHNIQUES SHOULD THEY DEVELOP WITH THE HRD IN

ORDER TO FUND THESE INTERNATIONAL ORGANIZATION WHILE

THINKING OF AN ALTERNATIVE SOLUTION FOR THE

DEVELOPMENT OF THE NEW INTERNATIONAL R&D

ORGANIZATIONS?

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MAIN ISSUE

SWOT ANALYSIS

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STRENGTHS

HONEYWELL’S TECHNOLOGY CENTER’S FAST GROWTH RATE

RELATEDNESS TO CASE

Many international opportunities for Honeywell are not only just in China but also

throughout Asia and Eastern Europe. There was a growing consensus that HTC had

to become more international to support Honeywell’s growth opportunities.

JUSTIFICATION

Throughout the years Honeywell grew very fast. Throughout the 1930s,

Minneapolis-Honeywell expanded and diversified. In 1930, the first international

subsidiary was opened in Toronto and in 1934; the first European subsidiary was

established in the Netherlands.

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“Honeywell’s has centralized R&D”

RELATEDNESS TO CASE

Honeywell’s research and development R&D organization, was centralized in

Minneapolis, a long way from the potential new markets. There are several reasons

for spreading R&D capability around the world. One, time to market in today’s world

is probably the most significant competitive advantage a company can have.

JUSTIFICATION

The company had a centralized R&D. this gave the company quite a few advantages.

The complexity of Honeywell products and systems is such that a large team of

R&D people is needed in one location to ensure interaction occurs between scientists

and the main functions of Honeywell’s central R&D is to move ideas around the

world.

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“THE SPACE AND AVIATION SECTOR OF HTC”

RELATEDNESS TO CASE

The space and aviation technology, research in this area was more oriented towards

how to apply the technology in existing and new products. As a result, the controls

and navigation group was organized around markets and product lines.

JUSTIFICATION

The space and aviation sector of Honeywell was a leading supplier of avionics

systems for the commercial, military, and space markets. Honeywell systems could

be found on virtually every commercial aircraft produced in the Western world and

were aboard every manned spaceflight launched in the United States.

WEAKNESSES

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“DECLINING DEFENSE INDUSTRY”

RELATEDNESS TO CASE

The Systems and Re- search Center was primarily involved in military research and

was oriented to outside contracts. Because there was comparatively less outside

contract work in the non-defense related controls area, SSDC R&D was focused on

commercial applications and product division problems.

JUSTIFICATION

US defense industry is on a decline. Cutbacks in U.S. defense spending had a

dramatic effect on Honeywell’s Space and Aviation Division. During a three-year

period from 1991 to 1994, space and aviation revenue declined by $700million to

$1.4billion. Space and aviation employment are declined by half to about 11,000 and

3 million.

“Location selection of HTC R&D division”

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RELATEDNESS TO CASE

The complexity of Honeywell products and systems is such that a large team of R&D

people is needed in one location to ensure interaction occurs between scientists. For

example, the control system for a refinery incorporated hundreds of other products.

JUSTIFICATION

The support could come from the product division or in a geographic area known for

a particular technology. Putting R&D people in geographic business units would

increase the relevance of R&D and increase the information flow from business units

to R&D, it may be better to have it located where the local support structure is

strongest

“Internal complications regarding technology transfer”

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RELATEDNESS TO CASE

Although 25% of Honeywell sales were in Europe, a much smaller percentage of

R&D was carried out either in Europe or in Minneapolis for European solutions.

Central R&D was primarily focused on the US market. New product development in

Europe was originating in the European divisional engineering groups.

JUSTIFICATION

Honeywell had complications regarding technology transfer to Honeywell Europe.

Technology transfer to the Honeywell Europe divisions had always been

problematic. While the European divisions expected HTC to develop new

technology, European managers often complained about the irrelevance of the

technology for their markets.

OPPORTUNITIES

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“Eastern European market for HTC’s product”

RELATEDNESS TO CASE

With their high levels of air and water pollution and poor record of energy efficiency,

these areas were large potential markets for Honeywell home and building and

industrial controls. As one HTC researcher indicated, “the mess in Eastern Europe is

a huge market for us.

JUSTIFICATION

The area of district heating was a large potential market for Honeywell. In Eastern

Europe and China, most people had never used a thermostat in their homes.

Apartments generally had no heating controls and their temperatures were

determined by outputs of a central district heating facility.

“Asian market”

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RELATEDNESS TO CASE

Honeywell’s Asia Pacific business had operations in eighteen Asian countries

including Hong Kong. Honeywell generated about $250 million in revenue in China

and expected sales of at least $500 million by the end of the decade. In 1997,

Honeywell began working with Beijing District with the potential for expansion

JUSTIFICATION

The Asian market also worked as a great opportunity for Honeywell. Although

Honeywell’s Asian business accounted for only about 8% of sales, CEO Michael

Bonsignore indicated that “Asia represents the greatest growth opportunity for

Honeywell in the next 20 years.”

“Technology transfer”

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RELATEDNESS TO CASE

If the technology does not require interaction with other technologies, like the

development of a particular sensor or flat panel displays, it may be better to have it

located where the local support structure is strongest. The support could come from

the product division or in a geographic area known for a particular technology.

JUSTIFICATION

Honeywell also saw an opportunity in the technology transfer arena. Creating new

source of technological expertise will allow them to expand their technological

leadership into new territories. Relevance meant that HTC’s goal should be to help

the divisions serve their customers.

THREATS

“Reduction in US defense spending”

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RELATEDNESS TO CASE

During a three-year period from 1991 to 1994, space and aviation revenue declined

by $700 million to $1.4billion. Space and aviation employment declined by half to

about 11,000 and 3 million square feet of plant space was closed.

JUSTIFICATIONThe reduction in US defense spending is a substantial threat for Honeywell, since

them are heavily dependent on the defense sector. Cutbacks in U.S. defense spending

had a dramatic effect on Honeywell’s Space and Aviation Division.

“Mergers and acquisitions”

RELATEDNESS TO CASE

Honeywell competitor in various product markets was one of the world’s largest

organizations. Siemens had sales of more than$60 billion, 250 manufacturing sites in

42 countries, and subsidiaries and affiliates in more than 190countries

JUSTIFICATIONThe controls industry had seen a wave of mergers, acquisitions, and alliances in

1996, Electro watt Group, a Swiss-based holding company, announced the formation

of Landis & Staefa, Inc., a worldwide combination of Landis & Gyr and Staefa

Control System. Landis &Staefa competed with Honeywell in home and building

controls.

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HRP PROCESS

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HTC Honeywell’s primary research organization that supports the worldwide product division

PRODUCT DEMAND

This means there is a demand for the products that is being provided by Honeywell in the market. Honeywell has many product divisions and HTC supports all those product division as it is the primary research organization of Honeywell.

JUSTIFICATION

HTC as a corporate private organization supports the product division and develop technologies that had the potential to benefit multiple product division. It supports the product division by providing world-class technologies, processes, and product concepts that fuel Honeywell’s global growth and profitability.

Honeywell operated two corporate R&D organizations: the Sensors and Systems Development Center (SSDC) and the Systems

and Research Center

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ORGANIZATIONAL GROWTH

Organizational growth means that how the organization has grown and placed itself in the industry. Honeywell with its two R&D sectors has boost the organization’s growth in the home, building, and industrial industry as well as in space and aviation industry.

TECHNOLOGY

This means what type of technology the company is using or how much technologically advanced the organization is becoming or has become in recent years. With the help of its two R&D, Honeywell has grown itself into a well-known technologically advanced corporation.

FINANCIAL RESOURCES

Financial resources mean that how much capital the organization holds in order to run the organization. It includes all non-current and current assets and the owner’s equity and the loan the organization had taken. Here, a lot of funding is required to conduct the research activities.

JUSTIFICATION

R&D development cycles and the maturity of technologies influenced HTC’s organization. The commercial control technologies were more mature than the space and aviation technology. As a result, the controls and navigation group was organized around markets and product lines.

HTC had two additional groups of managers called Business Development managers and Divisional Technology Managers

(DTMs)

MANAGEMENT’S PHILOSOPHY

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This means that the top management has taken some decision for the well-being of the organization. Here, the management has provided two additional group of managers in order to handle different sections of the organization.

MANAGERIAL ESTIMATESThis shows that the manager has taken the decision on its own to handle any kind of business related situations, and problems and how it has solve those issues.

FINANCIAL RESOURCES

Financial resources mean that how much capital the organization holds in order to run the organization. It includes all non-current and current assets and the owner’s equity and the loan the organization had taken. Here, the organization’s additional group of managers were trying to increase the capital of the organization.


Organizational growth means that how the organization has grown and placed itself in the industry. Honeywell’s these two additional group of managers are mostly responsible for its international and domestic business.

JUSTIFICATION

The five Business Development managers were responsible for generating outside contracts. Six DTMs provided an interface between the divisions and HTC, working closely with the technology section heads and the product divisions.

HTC scientists and engineers competed for funding via various funding programs.

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This means that the top management has taken some decision for the well-being of the organization. Here, the top management has authorized the scientist and engineers’ to perform funding programs for the benefit of the organization.


Organizational growth means that how the organization has grown and placed itself in the industry. The funding programs like Home Run Program, The Initiatives Program and The Joint Projects provided for rapid capital return, technology based funding.

JUSTIFICATION

The Home Run Program has an expectation of a rapid capital return, theInitiatives Program focused on innovative, technology-based funding and JointProjects provided for matching funds.

HTC engineers were assigned to divisions to support product development

LABOR MOBILITY

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Labor mobility refers to the permanent or temporary movement of the people from position to another position or from one company to another company.

MARKOV ANALYSIS

A method for tracking the pattern of employee movements through various jobs. It is used to monitor the people of the international division.

MANAGERIAL ESTIMATES

This shows that the manager has taken the decision on its own to handle the problem and to solve the issue. Here, the managers have decided that engineers should be assigned to support product development.


This means that the top management has taken some decision for the well-being of the organization. Here, the management has undertaken such a decision for the betterment of the organization.

JUSTIFICATION

Because of this, the engineers who are designing the product as well as the producers who are making it could work together in order to use their skills together for the development of a better product.

Researchers were expected to generate funding for their projects, which could be either internal or external funding

FINANCIAL RESOURCES

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Financial resources mean that how much capital the organization holds in order to run the organization. It includes all non-current and current assets and the owner’s equity and the loan the organization had taken. Here, the company wants to increase its financial position.


Organizational growth means that how the organization has grown and placed itself in the industry. If the researchers were able to generate funding for the projects, this will lead to the development of the organization and hence towards its growth.


This means that the top management has taken some decision for the well-being of the organization. Here, the management has undertaken such a decision for the betterment of the organization.

JUSTIFICATION

Because of this, the researchers were forced to be in close contact with the divisions, the customers, other researchers, funding agencies. The researchers would get some support for their research through these outside research sponsors. Eventually they would come with product that will meet the need of the customers.

A much smaller percentage of R&D was carried out either in Europe or in Minneapolis for European solutions

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MANAGERIAL ESTIMATES

This shows that the manager has taken the decision on its own to handle the problem and to solve the issue. Here, the European managers are complaining about HTC’s operations in Europe.

FINANCIAL RESOURCES

Financial resources mean that how much capital the organization holds in order to run the organization. It includes all non-current and current assets and the owner’s equity and the loan the organization had taken. Almost 25% of the sales of HTC are from Europe, but due to lack of R&D it seems that they will incur huge loss in the future.

JUSTIFICATION

25% of Honeywell’s sales are from Europe and Europe was funding Honeywell’s central R&D but due to a very small percentage of R&D being done in Europe so it was creating some kind of bitterness in the European operations.

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SWOT & HRP INTEGRATION

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STRENGTHS

1. HONEYWELL’S TECHNOLOGY CENTER’S FAST GROWTH RATE

RELATEDNESS TO CASE

Many international opportunities for Honeywell are not only just in China but also

throughout Asia and Eastern Europe. There was a growing consensus that HTC had

to become more international to support Honeywell’s growth opportunities.

JUSTIFICATION

Throughout the years Honeywell grew very fast. Throughout the 1930s,

Minneapolis-Honeywell expanded and diversified. In 1930, the first international

subsidiary was opened in Toronto and in 1934; the first European subsidiary was

established in the Netherlands.

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RELATEDNESS WITH THE HUMAN RESOURCE PLANNING (HRP) MODEL

JUSTIFICATION OF WHY IT IS UNDER THE MODEL?

This shows that in the future there will be an increase in the product demand made

by Honeywell which will require technology, a huge amount of financial resources,

and management’s philosophy. Hence, there will be organizational growth.

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FORECASTING DEMAND

CONSIDERATIONSSERVICE/ PRODUCT

DEMANDORGANIZATIONAL

GROWTHMANAGEMENT'S

PHILOSOPHYTECHNOLOGY

TECHNIQUESMANAGERIAL

ESTIMATES

RECRUITMENT(SHORTAGE)FULL TIMEPART TIME

RECALLS

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2. “Honeywell’s has centralized R&D”

RELATEDNESS TO CASE

Honeywell’s research and development R&D organization, was centralized in

Minneapolis, a long way from the potential new markets. There are several reasons

for spreading R&D capability around the world. One, time to market in today’s world

is probably the most significant competitive advantage a company can have.

JUSTIFICATION

The company had a centralized R&D. this gave the company quite a few advantages.

The complexity of Honeywell products and systems is such that a large team of

R&D people is needed in one location to ensure interaction occurs between scientists

and the main functions of Honeywell’s central R&D is to move ideas around the

world.

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Honeywell, with the help of its advanced centralized R&D division, can forecast

future product or service demand which will require technology, a huge amount of

financial resources, and management’s philosophy. Hence, there will be

organizational growth.

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FORECASTING DEMAND



GROWTHMANAGEMENT'S


FINANCIAL RESOURCES


ESTIMATES


RECALLS

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3. “THE SPACE AND AVIATION SECTOR OF HTC”

RELATEDNESS TO CASE

The space and aviation technology, research in this area was more oriented towards

how to apply the technology in existing and new products. As a result, the controls

and navigation group was organized around markets and product lines.

JUSTIFICATION

The space and aviation sector of Honeywell was a leading supplier of avionics

systems for the commercial, military, and space markets. Honeywell systems could

be found on virtually every commercial aircraft produced in the Western world and

were aboard every manned spaceflight launched in the United States.

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HRM 360Group: D



Honeywell being the leading supplier of avionics systems for the commercial,

military, and space markets shows that there will be future product demand which

will require technology, a huge amount of financial resources, and management’s

philosophy. Hence, there will be organizational growth.

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FORECASTING DEMAND



GROWTHMANAGEMENT'S


FINANCIAL RESOURCES


ESTIMATES


RECALLS

HRM 360Group: D

WEAKNESSES

1. “DECLINING DEFENSE INDUSTRY”

RELATEDNESS TO CASE

The Systems and Research Center was primarily involved in military research and

was oriented to outside contracts. Because there was comparatively less outside

contract work in the non-defense related controls area, SSDC R&D was focused on

commercial applications and product division problems.

JUSTIFICATION

US defense industry is on a decline. Cutbacks in U.S. defense spending had a

dramatic effect on Honeywell’s Space and Aviation Division. During a three-year

period from 1991 to 1994, space and aviation revenue declined by $700million to

$1.4billion. Space and aviation employment are declined by half to about 11,000 and

3 million.

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HRM 360Group: D



A huge percentage of the revenue comes from the defense industry which makes

Honeywell the leading supplier in space and aviation systems. So, a decline in the

defense industry would result in fall in product demand which will eventually cost

the company a huge amount of financial resources. As a result, it will force the

management to restructure its business. Hence, as a whole the organizational growth

will be affected negatively.

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FORECASTING DEMAND



GROWTHMANAGEMENT'S


FINANCIAL RESOURCES


ESTIMATES


RECALLS

HRM 360Group: D

2. “Location selection of HTC’s R&D division”

RELATEDNESS TO CASE

The complexity of Honeywell products and systems is such that a large team of R&D

people is needed in one location to ensure interaction occurs between scientists. For

example, the control system for a refinery incorporated hundreds of other products.

JUSTIFICATION

The support could come from the product division or in a geographic area known for

a particular technology. Putting R&D people in geographic business units would

increase the relevance of R&D and increase the information flow from business units

to R&D, it may be better to have it located where the local support structure is

strongest

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HRM 360Group: D


37

FORECASTING DEMAND


DEMANDMANAGEMENT'S

PHILOSOPHYFINANCIAL RESOURCES


ESTIMATES


RECALLS

FORECASTING SUPPLY

CONSIDERATIONSEDUCATION OF THE

WORKFORCE

TECHNIQUESSTAFFINGMARKOV ANALYSIS

SKILL INVENTORIES

(SURPLUS) REDUCTIONS

TERMINATIONSDEMOTIONS

RETIREMENTS

HRM 360Group: D


Because of this the management has to do proper staffing and Markov analysis using

skill inventories data considering the education of the workforce which would require

some of company’s financial resources.

3. “Internal complications regarding technology transfer”

RELATEDNESS TO CASE

Although 25% of Honeywell sales were in Europe, a much smaller percentage of

R&D was carried out either in Europe or in Minneapolis for European solutions.

Central R&D was primarily focused on the US market. New product development in

Europe was originating in the European divisional engineering groups.

JUSTIFICATION

Honeywell had complications regarding technology transfer to Honeywell Europe.

Technology transfer to the Honeywell Europe divisions had always been problematic.

While the European divisions expected HTC to develop new technology, European

managers often complained about the irrelevance of the technology for their markets.

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HRM 360Group: D


39

FORECASTING DEMAND


DEMANDORGANIZATIONAL GROWTH

MANAGEMENT'S PHILOSOPHY

TECHNOLOGYFINANCIAL RESOURCES


ESTIMATES


RECALLS

FORECASTING SUPPLY

CONSIDERATIONSEDUCATION OF THE

WORKFORCEDEMOGRAPHIC

CHANGES

TECHNIQUESSTAFFINGMARKOV ANALYSIS

SKILL INVENTORIES

(SURPLUS) REDUCTIONS

TERMINATIONSDEMOTIONS

RETIREMENTS

HRM 360Group: D


Because of this the management has to do proper staffing and Markov analysis using

skill inventories data considering the education of the workforce and the

demographics of the location where the technology needs to be transferred which

would require some of company’s financial resources.

OPPORTUNITIES

1. “Eastern European market for HTC’s product”

RELATEDNESS TO CASE

With their high levels of air and water pollution and poor record of energy

efficiency, these areas were large potential markets for Honeywell home and

building and industrial controls. As one HTC researcher indicated, “the mess in

Eastern Europe is a huge market for us.

JUSTIFICATION

The area of district heating was a large potential market for Honeywell. In Eastern

Europe and China, most people had never used a thermostat in their homes.

Apartments generally had no heating controls and their temperatures were

determined by outputs of a central district heating facility.

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HRM 360Group: D


41

FORECASTING DEMAND






ESTIMATES


RECALLS

HRM 360Group: D


The Eastern-European market possess great opportunity and because of this there

will be an increase in the demand of the product or service. So, the management will

utilize its forces such as technology, and financial resources considering the

managers decision for the growth of the organization.

2. “Asian market”

RELATEDNESS TO CASE

Honeywell’s Asia Pacific business had operations in eighteen Asian countries

including Hong Kong. Honeywell generated about $250 million in revenue in China

and expected sales of at least $500 million by the end of the decade. In 1997,

Honeywell began working with Beijing District with the potential for expansion

JUSTIFICATION

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HRM 360Group: D

The Asian market also worked as a great opportunity for Honeywell. Although

Honeywell’s Asian business accounted for only about 8% of sales, CEO Michael

Bonsignore indicated that “Asia represents the greatest growth opportunity for

Honeywell in the next 20 years.”


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FORECASTING DEMAND






ESTIMATES


RECALLS

HRM 360Group: D


Currently some percentage of the total revenue of Honeywell is coming from the

Asian market. So, according to managers considering the current situation the

management will utilize its forces such as technology, and financial resources

considering the managers decision for the growth of the organization.

3. “Technology transfer”

RELATEDNESS TO CASE

If the technology does not require interaction with other technologies, like the

development of a particular sensor or flat panel displays, it may be better to have it

located where the local support structure is strongest. The support could come from

the product division or in a geographic area known for a particular technology.

JUSTIFICATION

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HRM 360Group: D

Honeywell also saw an opportunity in the technology transfer arena. Creating new

source of technological expertise will allow them to expand their technological

leadership into new territories. Relevance meant that HTC’s goal should be to help

the divisions serve their customers.


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FORECASTING DEMAND






ESTIMATES


RECALLS

HRM 360Group: D


There is an opportunity for the increase in the demand of the product due to transfer

of technology which will allow them to expand their technological leadership into

new territories. So, according to managers considering the current situation the

management will utilize its forces such as technology, and financial resources

considering the managers decision for the growth of the organization.

THREATS

1. “Reduction in US defense spending”

RELATEDNESS TO CASE

During a three-year period from 1991 to 1994, space and aviation revenue declined

by $700 million to $1.4billion. Space and aviation employment declined by half to

about 11,000 and 3 million square feet of plant space was closed.

JUSTIFICATION

46

HRM 360Group: D

The reduction in US defense spending is a substantial threat for Honeywell, since

they are heavily dependent on the defense sector. Cutbacks in U.S. defense spending

had a dramatic effect on Honeywell’s Space and Aviation Division.


47

FORECASTING DEMAND






ESTIMATES


RECALLS

HRM 360Group: D


The fall of demand for the products of Honeywell in the US defense industry is a major threat for the company. So the organization will incur financial loss and which will force the management of the organization to change its business structure which will be costly for the company.

“Mergers and acquisitions”

RELATEDNESS TO CASE

Honeywell competitor in various product markets was one of the world’s largest

organizations. Siemens had sales of more than$60 billion, 250 manufacturing sites in

42 countries, and subsidiaries and affiliates in more than 190countries.

JUSTIFICATION

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HRM 360Group: D

The controls industry had seen a wave of mergers, acquisitions, and alliances in

1996, Electro watt Group, a Swiss-based holding company, announced the formation

of Landis & Staefa, Inc., a worldwide combination of Landis & Gyr and Staefa

Control System. Landis &Staefa competed with Honeywell in home and building

controls.


49

FORECASTING DEMAND






ESTIMATES


RECALLS

HRM 360Group: D


Many competitors of Honeywell are going into mergers and acquisitions in order to

expand their business or to become bigger than Honeywell so that it can compete

with it. So this is one of the major threat for the organization and a great challenge

for the management to keep the company competitive in this competitive industry by

utilizing its forces such as technology, and financial resources considering the

managers decision for the growth of the organization.

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HRM 360Group: D

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RECOMMENDATION

HRM 360Group: D

PROBLEM-1

Their most demanded products are those can that came out five years back.

SOLUTION

They must strengthen their R&D sector otherwise they cannot survive, as needs are changing, newer technologies are coming and thus people tastes will change Honeywell at this state cannot survive in the next few years so they must strengthen that sector.

JUSTIFICATION

R&D was a focal point throughout Honeywell with technology seen as the key to market- place differentiation. About 30% of Honeywell’s current sales were from products introduced in the past five years. Honeywell was involved in two main R&D activities: R&D that supported Honeywell’s worldwide product divisions and contract research funded by outside (Prague) government agencies and firms. So their limitation decreased and their R&D chances of success increases.

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HRM 360Group: D

PROBLEM-2

Honeywell realized that government military spending was declining as they merged outside.

SOLUTION

Honeywell-funded R&D had to become more application-oriented because otherwise they won’t remain with enough fund to continue their activities so they must more focus on application-oriented production, as that would help in increasing funding sources.

JUSTIFICATION

The Systems and Re- search Center was primarily involved in military research and was oriented to outside contracts. Because there was comparatively less outside contract work in the non-defense related controls area, SSDC R&D was focused on commercial applications and product division problems. In 1993 the two R&D groups were merged for both cost and synergy reasons. At then there was a realization that government military spending declining.

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HRM 360Group: D

PROBLEM-3

There was less interaction between the persons working for Honeywell.

SOLUTION

In order to operate effectively there is a necessity of such a structure where exists as a loose framework in order to support interaction among the engineers, scientists, and product divisions i.e. they need to work from a systems perspective, having interaction and networking.

JUSTIFICATION

Although HTC had a structure and clear lines of authority, HTC management believed that to operate effectively, the structure had to exist as a loose framework in order to support interaction among the engineers, scientists, and product divisions. According to an HTC manager. We are very good at quite a number of areas. I can bring together researchers in sensors, control theory, information processing, real time software and those are the guts of Honeywell products. We need to work from a systems perspective, which means we have to have interaction and networking.

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HRM 360Group: D

PROBLEM-4

The space and aviation technology had no idea about the market go-on or the trends.

SOLUTION

Here no possible solution for this can be found as there is no organized market for this and if there would be they won’t be willing to share their things on this purpose so all they can do is hire good quality scientists, engineers and provide enough fund and thus see what happens.

JUSTIFICATION

R&D development cycles and the maturity of technologies influenced HTC’s organization. Because commercial control technologies were more mature than the space and aviation technology, research in this area was more oriented towards how to apply the technology in existing and new products,so they were more organized around markets and product lines where the other three groups were organized around technologies and no organized market.

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HRM 360Group: D

PROBLEM-5

A much smaller percentage of R&DS was carried out either in Europe or in Minneapolis for European solutions.

SOLUTION

They must go for survey in the European market and try to know their trends, tastes, the price they are willing to pay for this particular service etc. and either carry out their R&D activities in Europe or in Minneapolis for European solutions.

JUSTIFICATION

Technology transfer to the Honeywell Europe divisions had always been problematic. While the European divisions expected HTC to develop new technology, European managers often complained about the irrelevance of the technology for their markets, the cost of HTC, and their lack of contact with HTC. Although 25% of Honeywell sales were in Europe, a much smaller percentage of R&D was carried out either in Europe or in Minneapolis for European solutions. So it’s the only solution.

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HRM 360Group: D

1. Their most demanded products are those can that came out five years back.

Who will be implementing?

Honeywell do have enough budget to cover its expenses but still they need to secure its future. They are profit organization competing against for-profit organization. Their manager should come up with the idea five years back.

When will it be implemented?

They can issue security in the capital market to raise capital. If they do so they won’t have to give too much emphasize on managing portfolio. They should do it as soon as possible.

Where it will be implemented?

By issuing bonds in the primary and dealing them in the secondary market they can raise capital for any show for which they previously looked for sponsors. By doing that Honeywell will be able to make decisions out of any influences of external factors. This will improve the quality of the show.

How it will be implemented?

They should manage the investments properly. They should offer more opportunities for the investors and make the way easy for the investors. The investors always find better security and benefits for their investment so they can offer more benefits and security for the investors. For doing this their policy should be more modified and make more comfortable environment for the investors. Day by day it is becoming more difficult to run a company through globally. Whatever the company is for profit or not for profit but it needs money to do this. So the CFO or the financial departments should try to bring new investors and should try to create fund.

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IMPLEMENTATION

HRM 360Group: D

2. Honeywell realized that government military spending was declining as they merged outside.


There are more seniors in organization than needed. In some cases more than more than one manager is created to do a one man job. This results extra costs for these manager compensations and other benefits. To redeem this problem Honeywell should come up with solutions for managerial problems and conflicts.


Recruiting excess and ineffective managers should be avoid and should maintain a strict policy and also Managers should be placed exactly to the right position. Because of too many managers there are too many clashes among the managerial decisions. The HR department can solve this problem effectively.


The HR department should introduce the managers with their exact duties and should make clear their job description. If there is any excess of managers then needed then the best one should be selected and another should be rejected.


In some countries there is conflicts between VP’s like China. The HR department should provide them proper guide line and a structure telling then who will report to whom. A complete and perfect HR can lead the company in a manner that can put the company to the higher position in all aspect. It should inter linked with one department to another so that the best production can betake out. The regular meeting should be held on time. They should be provide the employee so that they can introduce to different culture and can implement those in their work.

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HRM 360Group: D

3. There was less interaction between the persons working for Honeywell.


They should have a well-defined requirement policy as well as a compensation package for the employees. It will be essential for them to hire talent and skillful employees for this large organization. The HR of Honeywell can develop their compensation and recruitment policy in the following ways


As this is a very big problem regarding the human resource policies in the organization this may affect the whole employee base. The HR prospect of the company would be facing a severe problem and it will cause harm to the employee productivity due to dissatisfaction.


They should plan a recruitment policy first that all specifically state the terms and conditions of the recruitments. The HR should mention the qualifications and the requirements of the positions.


The age limit should have been specifically mentioned and hence that should be published in the advertisements of the vacancies. The other thing that we would like to focus on is, they should try to have strong part timer employee base. The students and youth will gladly work with the organization and the company would get several creative, enthusiastic and smart candidates. The other good thing in having a part timer base is that the organization does not have to put an intensive effort to prepare HR issues for those part timers. The compensation and regulations regarding the part timers would be a bit relaxed.

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HRM 360Group: D

4. The space and aviation technology had no idea about the market go-on or the trends.


To build a creative, energetic human capital Honeywell needs a complete training facility. This will boost up employee morale and enrich the quality of the employee performances.


The HR department should conduct more training for the employee and workshop worker’s. It has to be started as soon as possible.


They are repeatedly mistaking by putting the Employee to the job directly. It should be avoided to take out the best from them. The implementation will take place within the organization.


After recruiting give them proper and job related training then release them to the main work stream. The recruiting process should be globalized and circular should publish globally, so that the competitor from the whole world can attain and the company can get the best and talented for the required position. Since this Industry is spreading day by day and worldwide so in near future they can establish a complete training school and recruit students there. Among those students who will score better can be recruit for Honeywell workshop.

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HRM 360Group: D

5. A much smaller percentage of R&Ds was carried out either in Europe or in Minneapolis for European solutions


For decades Honeywell was the first priority for share market. But now there are a lot more successful preschool programs in the network. Increasing pressure for commercial breaks between shows challenging Honeywell’s commercial free philosophy.


Honeywell Inc. has to come up with new ideas to face these new challenges really soon. 60% sales in six month time period. It went to the other license.


They are repeatedly mistaking by putting the Employee to the job directly. It should be avoided to take out the best from them. The implementation will take place within the organization. They should be targeting all the target age groups worldwide.


They should manage the investments properly. They should offer more opportunities for the investors and make the way easy for the investors. The investors always find better security and benefits for their investment so they can offer more benefits and security for the investors. For doing this their policy should be more modified and make more comfortable environment for the investors. Day by day it is becoming more difficult to run a company through globally. Whatever the company is for profit or not for profit but it needs money to do this. So the CFO or the financial departments should try to bring new investors and should try to create fund.

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Htc

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