Strategic Human Resource Management - Foxconn Technology Group - Case Study Example

Strategic Human Resource Management Student’s Name Institutional Affiliation Strategic Human Resource Management Industrial Relations. In an article in the Bloomberg News of the Financial Post dated 8th of October 2012, Foxconn Technology Group (FTG) that is among the largest producers of electronic devices in the world and a supplier to Apple, had some of its branches closed down due to employees' strike (Bloomberg, 2012). The strike was said to have been the culmination of increased working pressure, stress in the course of the job and "abuse from guards" (Bloomberg, 2012. According to Bloomberg News (2012), FTG’s shares dropped by 1.9% in Taipei cutting down the year-to-date gain to 18%. Apple's shares also fell by 1.3% in Germany as a result of the strike and its accompanying negative publicity. Industrial relations, now commonly referred to as employee relations is involved with the management and control of employment relations (Wilton, 2011). Strikes by employees of FTB have been increasing as reported in various articles including a 2012 incident in Foxconn’s Taiwan branch (Gabbatt, 2012). In the latter’s incidence, quality control inspectors were roughed up by workers after a prolonged conflict that the management did not care to help resolve. The confrontation is alleged to have been sparked by a company guard hitting one of the employees. The actions of the guard were a violation of the method of dispute resolution in a company (Lauffs, 2013). It is the company's prerogative to streamline the handling of internal conflicts in accordance with the prevailing labor laws. Protocols should be put in place for handling these conflicts. FTG has a very high employment turnover rate (Bloomberg, 2012). The short work tenure for most employees means that the company may constantly have inexperienced workers. It is this inexperience that renders the production process slow and of questionable quality. Consequently, the production managers end up criticizing the employees for the inefficiency and demand them to work for more hours than stipulated and under pressure. Such production flaws and the resulting conflicts can be prevented by the company providing professional education to new employees. This training empowers the employees to perform their duties efficiently. Dearden, Reed and van Reenen established that on-the job training significantly improves productivity in an industry (2000, pp. 30-4). Therefore, Foxconn should initiate training programs for new and older employees and teach them the fundamentals of the job. The management style employed by the company should be changed to accommodate the employees. FTG appears to practice the traditional authoritarian unitarian management. The employees are not included in the decision-making process and are perceived as "factors of production" to be exploited for maximum profits (Wilton, 2011, p.278). The workers are expected to comply with their managers decisions unquestioningly. The company should adopt the consultative pluralism management style. This style allows employees to form trade unions to represent their interests legitimately. In this management style, conflicting employer-employee interests are solved "through rules, negotiation and collective bargaining" (Wilton, 2011, p.277). This management style recognizes industrial action as a valid demonstration of conflict (Lauffs, 2013, p, 18). Diversity Diversity in human resource entails embracing employees with varied dimensions of gender, race, age physical ability and ethnicity (Daft & Lane, 2008). Sumitomo Corporation is among companies that have put in place measures to enhance diversity among its employees. The Japanese company is a general trading industry that has majored in transportation, sale of metal, mineral resources and energy, infrastructure development, and general construction (Sumitomo Corporation, 2014). The corporation has established measures to enhance workplace diversity among its employees. Among the diversification initiatives include deploying employees with an aim of encouraging active participation of female staff in the corporation’s activities, prolonging the employment tenure of older employees and taking up employees from different nations (Sumitomo Corporation, 2014). Among the measures include the adoption of a program that allows older employees who are past the retirement age of 60 to further their employment tenure. This is labeled a re-employment program. This program has the advantage of promoting an assortment of skills and enables young employees to learn from these older experienced employees. The senior employees are used as career advisors to enhance career development among young employees. The human resource has also been diversified by employing staff from offices located overseas. Advantages of Diversity The advantages of enhancing diversity in human resource among companies is significant in promoting equity in the workplace that translates to maintain gender parity among employees. Japan is among the countries with the highest gender inequality indices in the world (Assman, 2014). The Japanese government through the Equal Employment Opportunity law provides for the implementation of equal employment opportunities among men and women (Assman, 2014). Through their measures, Sumitomo is, therefore, adhering by the Law and preventing the corporation from facing possible lawsuits regarding gender inequality at the workplace. Moreover a diversified employee age group is beneficial to the productivity of the workforce as Aged employees add valuable experience to the workforce in addition to being a source of advice and guidance to young employees (Chosewood, 2011). The diverse age group is also in keeping with regulation prohibiting employee age-based discrimination. Disadvantages of Diversity The shortcomings associated with diversity among employees like in Sumitomo Corporation is that it may be difficult to harmonize the workforce to include both men and women equally in Japan. The country is laden with culture that allows women to be solely concerned and responsible for taking care of children below three years (Assman, 2014). Such culture has contributed to many women withdrawing from the workforce especially in order to raise a family. Therefore, it becomes difficult to enhance gender diversity among employees in the company. Other negative attributes of diversity include high costs associated with employee trainings to accommodate or embrace diversity in personalities, thoughts and handling prejudice and conflict professionally (Ongori &Agolla, 2007). In addition, some groups of people are associated with high turnover rates and absenteeism in employment such as African Americans and women (Ongori & Agolla, 2007). The latter may be detrimental to a company’s productivity. Ethics An article in the Nov. 13th 2014 issue of The New York Times titled “new scrutiny of Goldman’s ties to the New York Fed after a leak” demonstrated a breach of ethics governing banking practice in Goldman Sachs (Greenberg, Protess & Eavis, 2014). The banker was accused of accessing confidential information aided by the Banker’s links to the New York Federal Reserve Bank (FRB). The banker had been a previous employer of the FRB of New York. He used his connection to the FRB to gain access to confidential information about one of Goldman’s clients. At Goldman’s the banker was employed to advise banks that the banker had previously policed while working for the New York FRB. The information leaked is said to have allowed Goldman a peek into the FRB’s private insights. This leak was under the backdrop of allegations that the New York FRB was getting cozy with some of the banks it oversees particularly Goldman Sachs. The banker was fired by Goldman for a "breach of the code of professional ethics and conduct" as an employee in that banking industry (Greenberg, Protess & Eavis, 2014). The code of business conduct and ethics (CBCE) at Goldman’s requires that its employees protect information that is deemed confidential or proprietary that concerns the firm or its clients or prospective clients (Goldman Sachs, 2014). In addition, Goldman also fired one of its supervisors whose job entailed identifying and stopping such leaks even though the supervisor was not privy to the shady deal. The Fed’s employee who was also privy to the leakage was also later fired. The firing of both the FRB and Goldman's employee was justified because their actions constituted a breach of the prescribed code of conduct and ethics governing banking practice in their respective organizations. For instance, Goldman's CBCE provides that an employee who breaches elements of the bank’s CBCE be appropriately disciplined and this may include termination of the employee’s employment (Goldman Sachs, 2014). The protection of confidential information by banking institutions is not only provided for in CBCE but also in certain U.S Laws such as "the Gramm-Leach-Bliley Act" that demands financial institutions to safeguard sensitive client information (Gallagher, Callahan & Gartrell, 2006). Therefore, the sacking of the banker is justifiable in that it demonstrates the significance of abiding by CBCE and the repercussions for breaching such codes of ethics. This sets a precedent for other Goldman employee to be vigilant of the organization's code of conduct and ethics. However, Goldman’s action of assigning the banker the role of advising banking institutions that he previously used to regulate while at FRB presented the banker with an ethical dilemma predisposing him to ethical malpractice. Goldman may need to re-examine the allocation of duties or responsibilities to its employees such that the employees are not put in a vulnerable position. References Assmann, S. (2014). Gender equality in Japan: The equal employment opportunity law revisited. Retrieved from http://www.globalresearch.ca/gender-equality-in-japan-the-equal-employment-opportunity-law-revisited/5413100 Chosewood, C. (2011). Benefits of the aging workforce. Retrieved from http://www.medscape.com/viewarticle/741559_3 Daft, R.L. & Lane, P.G. (2008). The leadership experience. Mason, OH: Thomson South-Western. Dearden, L., Reed, H. & van Reenen, J. (2000). Who gains when workers train? Training and productivity in panel of British industries, London: Institute of Fiscal Studies. Gallagher, Callahan & Gartrell. (2006). An effective code of conduct for banking. Retrieved from http://www.gcglaw.com/resources/financial/codeofconduct.html Goldman Sachs. (2014). Code of business conduct and ethics. Retrieved from http://www.goldmansachs.com/investor-relations/corporate-governance/corporate-governance-documents/revise-code-of-conduct.pdf Greenberg, J.S., Protess, B. & Eavis, P. (2014, November 19). New scrutiny of Goldman's ties to the New York Fed after leak. The New York Times. Retrieved from The New York Times: http://dealbook.nytimes.com/2014/11/19/rising-scrutiny-as-banks-hire-from-the-fed/ Gabbart, A., (2012, October 5). Foxconn workers on iPhone 5 line strike in China, rights group says.theguardian. Retrieved from: http://www.theguardian.com/technology/2012/oct/05/foxconn-apple-iphone-china-strik Lauffs, A., 2013. China employment law guide. HongKong: Baker & McKenzie. Ongori, H & Agolla, J.E. (2007). Critical review of literature on workforce diversity. African Journal of Business Management, 72-78. Sumitomo Corpoartion. (2014, November 20). Utilization of human resources-Promoting workplace diversity. Retrieved from http://www.sumitomocorp.co.jp/english/company/talent/wlb/ Wilton, N., 2011. An Introduction to Human Resource Mangement. London: SAGE Publications Ltd. Read More