Globalization and HRM Strategies - Assignment Example

? Multinational Enterprises: SONY Number Introduction Introduction A multinational enterprise (MNE) or multinational corporation (MNC) is a corporation that is registered or that has operations in more than one country. Sony, an example of a multinational enterprise, and my case study, is a multinational conglomerate company that offers financial services, insurance, banking, credit finance and advertising services. Originally called Tokyo Tsushin Kogyo (Tokyo Telecommunications Engineering Company), it derived its name from the Latin word ‘sonus’ which means sound. Headquartered in Tokyo, Japan, Sony was founded on 7th May 1946 by Masaru Ibuka and Akio Morita and has since grown and seen its operations and services spread across the globe. Sony offers a wide range of products including consumer electronics, semiconductors, video games, media and entertainment, computer hardware and telecom equipment. As at of March 31st, the company that has offices in virtually every part of the world had approximately 162, 700 employees and that number continues to grow even as the company seeks to expand further, increase profit and outdo its competitors. It is also affiliated with several music artists like Eminem, The Fray, Kat Deluna, Kelly Clarkson, Marc Anthony, and Michael Jackson among other music and movie personalities. Sony continues to expand the variety and number of products it offers globally together with ensuring high quality to meet consumer needs. Globalization impacts heavily on such multinational enterprises and Sony has been no exception. With certain emergence of related and similar companies, and the world increasingly becoming one global village as a result of improved transport systems, effective communication and internet services, there has been a sure rise in customer expectation and meeting these demands has become a key priority in Sony industries. With globalization have come several factors in business such as increased competition from a large multitude of choices as cited by Sauvant (2006). Companies are therefore constantly forced to produce high quality goods and services at cheaper prices to remain relevant in the markets. Globalization has also seen to an extensive and increased use and exchange of technology. Technology is a critical tool in competition as it is essential in ensuring quality of goods and services. Though it means increase in production costs of the company, technology as a tool ensures increase in sales and product quality to meet the ever increasing/ growing consumer expectations and taste. Additionally, globalization has seen that a company like Sony improves greatly on its information and knowledge transfer which, much like technology is important in helping the company stay connected and informed of emerging customer preferences. Information therefore enables adaptation to trends and its quick and effective transmission has become vital in customer retention and growth hence. Different cultures of the world have very little effect and impact on Sony and unlike most other multinational corporations, Sony has managed to break the barriers of culture across the globe by producing a wide range of high quality, sophisticated and culturally acceptable goods and services. In addition, Sony’s policy of recruiting from any culture, age, gender and other such barriers puts it in a favorable position for worldwide appeal and acceptance. However, the financial and credit services offered by Sony, for example, may receive negative and little acceptance in other parts of the world. Islam, for instance, strictly forbids the use of usury. In such areas, the company may be viewed in bad light and rejected altogether. This is highly unlikely however as Sony offers a wide range of services and products and if one of them is found to be unpalatable in a certain culture, other products eventually override this ‘dislike’ altogether and firmly establishes Sony in the area. Just like cultures, labor markets are of very little hindrance and effect on the human resource management function of Sony. Sony is globally known for its superior employee handling. Their reputation precedes them wherever they go and they find recruitment processes relatively easy. Also, the fact that they recruit without any bias whatsoever except on skill and qualification, coupled with their good pay are major boosts for the company ambitions and intentions to setup in new lands. According to Lyons (1976), Sony pursues a global strategy which focuses and basically entails competing everywhere and in all parts of the world, acknowledging and appreciating that success requires a formidable presence in almost every part of the globe in order to compete effectively, making the products the same for each market, seizing advantage of customer needs and wants in areas lacking the same, integration and co-ordination activities across borders, centralized control and also locating their value adding activities where they can achieve the greatest competitive advantage. 70% of Sony’s total R&D budget is dedicated to digital imaging, game and mobile businesses which have since been prioritized as the main pillars of its electronic business and will henceforth be invested in heavily. In digital imaging, the company seeks to enhance development of proprietary technology in image sensors, lenses and other such fields. In addition, Sony will continue to study trends in the market and consumer wants with relation to the game business with intentions to offer better and entertaining products. Acceleration of Xperia smartphones, Sony Tablet and VAIO PCs and the 100% consolidation of Sony Ericsson serve to increase product appeal and further strengthen the smartphone business. Nathan (2009) says Sony recognizes its employees as core in its operations, implementation of strategies and eventual successes of the organization and therefore strives to provide a suitable and conducive working environment to its workers worldwide. Sony recruits from different backgrounds with a wide range of values, personalities and skills regardless of nationality, culture, race, gender, age, or the absence or presence of physical disabilities with the main goal of remaining progressive in the international human resource management. In its recruitment exercises, character traits such as an entrepreneurial spirit, creative thinking, strong communication skills, discipline, enthusiasm, and other soft skills such as computer literacy are critical in determining whether one will be recruited. The human resource department spends much time with the new recruits in bid to get them fully on board with the objectives and strategies of the company and is focused on universal standard employment offering superior working conditions and paying employees their locally relevant wages. Sony also offers management training to promising recruits. IHRM plays an important role in ensuring productivity of Sony. There are a series of undertakings that the IHRM could pursue to ensure improved productivity and competitiveness of Sony globally. Seminars that serve to enlighten employees further on consumer needs and improve service delivery could be brought on board. Training of employees to sharpen skills and further preparing them for multiple jobs/ flexibility in job assignments must be fully appreciated and implemented in the setup. Other initiatives like promotions for the skilled and hardworking, staff motivation by organizing recreational activities, ensuring attraction and consequent recruitment of the most skilled labor, vigorous performance evaluations, making roles and functions clear, improving communication with employees and keeping them in the know on relevant issues, offering employment security e.g. through signing of contracts may all be necessary to ensure increased performance levels. Problem solving groups are essential and swift solution of arising issues or any quarrels act to minimize employee infighting and the distractive and destructive office gossip thus creating the much needed and indispensable harmonious, smooth working environment (Sauvant, 2006). References Lyons, N. (1976). The Sony Vision. New York: Crown Publishers. Nathan, J. (2009). Sony: The Private Life. Boston, Mass.: Houghton Mifflin. Sauvant, K. P. (2006). Controlling Multinational Enterprises: Problems, Strategies, and Counterstrategies. Boulder, Colo.: Westview Press. Read More