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    Foxconn

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    Foxconn

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    Foxconn

    Uploaded by

    khairy181083

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    of 27

    FIRE-FIGHTING HRM IN CHINA’S

    NEW GLOBAL ECONOMY

    Ahmed Khairy 22125208


    Ahmed Madboli 22125078
    Mohamed Mandour 22126185
    Riham Ra’fat 22125628
    Agenda
    Case Analysis
    • About Foxconn
    • Foxconn Strategy
    • Working facilities at Foxconn.
    • Working at Foxconn from employee’s perspective.
    • What was the result?
    • How did Foxconn respond?
    • What was the outcome of Foxconn actions?

    Answering the questions:


    • Which competing perspectives capture how people are managed at Foxconn?
    • Flexibility, Outsourcing and Work Fragmentation at Foxconn?
    • Apple’s responsibilities over Foxconn’s human resource strategy?
    • Democratic Unionization possibility of change?
    • How do you feel about the case study?

    Reflections & Recommendations.

    Conclusions
    Case Analysis
    About Foxconn

    Established In #27 of top 500 Revenue 200 Subsidiaries


    Taiwan In 1974 suppliers 206 B $ (2021)
    By Terry Gou.

    30 Factories Manufacturing of 1.5 Million


    China electronic products of Employees
    for Apple, IBM, … etc.
    Foxconn Strategy
    Vision:
    Creating comprehensive smart living
    experiences for our customers across the
    globe.

    Strategy:
    Cost leadership strategy ➔ Select China
    for low-cost labor and raw material to
    achieve Economies of scale ➔ drove the
    company to treat the workers as
    machines.
    Working facilities at Foxconn
    Foxconn production premises are like a
    “city” or a “campus”.

    Shenzhen city has one of the


    company’s biggest factories, having
    500,000 employees.

    Foxconn has its own hospital, banks,


    post office, library, theatres cinemas,
    supermarkets, wedding dress shop,
    different sports courts.
    Working at Foxconn from employee’s perspective.

    Low wages.
    No Work-life balance.
    Poor safety conditions.
    Health hazards.
    Lack of freedom.
    Work environment.
    Forced or compulsory labor.
    The results: 17 Suicide cases in 8 Monthes

    Dead Survived with injuries Count per sex & age


    F M
    24%

    1 3

    3 1
    2 2
    1 1 1 1 1
    76%
    17 18 19 20 21 23 24 25
    The results: 17 Suicide cases in 8 Months

    Guanlan Kunshan Langfang Longhua Nanhai Dead Survived with injuries


    6%
    23%
    1

    6% 2 6

    53% 1
    2 2
    12% 1 1 1

    Jan Mar Apr May Jul Aug


    How did Foxconn respond?
    • Foxconn took preventive measures, in a firefighting way to improve working
    conditions.
    • Increase the workers’ wages from 1,200 CHY to 2,000 CHY per month.
    • Set up of “Safety Net over 150 million square meters of spaces.
    • Establishment of the “Caring Team”.
    • Counselors’ availability to assist the worker.
    • Mandatory Psychological test.
    What was the
    outcome of
    Foxconn actions?
    They aimed at only containing the
    situation and stop the incidents
    without digging deep to solve the
    root cause.

    It was surprising to discover that


    there were still cases of workers
    committing suicide after all the
    above measures were
    implemented.
    Questions
    Which competing perspectives capture
    how people are managed at Foxconn?

    Matching Models (Hard) Radical

    • Military System. • 12-hour Shifts.


    • Recruiting Process Abuse. • Voluntary Overtime Pledge.
    • Time Based. • 1 Hour Work Assembly
    • Absolute Obedience. Mandatory & Unpaid.
    • Product Demand & Quotas. • Shifts Were Frequently
    Changing (2-3 Times Per
    Month).
    • Minimum Wage In The
    Country Plus 100 CHY.
    • Planned Dreadful Pressure.
    Flexibility, Outsourcing and Work
    Fragmentation at Foxconn?
    Flexibility
    HR responsibilities in general:
    • Flexible working hours & schedules,
    • Remote work (if possible).
    • Rearranging the work process to meet organization & employee needs.
    At Foxconn:
    • Employees like machines, no deviation is accepted.
    • Cold depressing environment.
    • Like soldiers in straight lines (standing or sitting jobs).
    • No talk to each other, laugh, giggle, or even change the position of their
    bodies (stretching) is allowed.
    Flexibility, Outsourcing and Work
    Fragmentation at Foxconn?

    Outsourcing
    • Foxconn doesn’t outsource semi-
    products.

    • Foxconn exceeds the temporary


    workers percentage of Apple’s
    acceptance.

    • Studying outsource robotic technology


    in workers' places.
    Flexibility, Outsourcing and Work
    Fragmentation at Foxconn?

    Work fragmentation
    • Splitting the activity into minor tasks to
    reduce time, increase accuracy.

    • High level at Foxconn.

    • Employees are too bored and have no


    connection with final product.
    Apple responsibilities over Foxconn’s HR What should Apple do?
    strategy?

    Foxconn & Apple transaction relation value. ✓ Rectifying the bad military regime work

    environment.
    Apple code of conduct.

    ✓ Learn and development support.


    Apple ethical contradictory actions.

    ✓ Ensure fair processes.

    ✓ Force Foxconn not to hire children.


    Democratic Unionization
    possibility of change?

    Democratic unionization is a system of union


    governance that emphasizes worker
    participation and control over the union. This
    means that workers have a say in how the
    union is run, including who is elected to
    leadership positions, how the union's finances
    are managed, and what bargaining priorities
    are set.
    Benefits To Democratic Unionization
    Ensure that the union Build trust and
    is responsive to the solidarity among Worker control.
    needs of its members. workers.

    Transparency. Accountability. Education.

    Solidarity.
    Democratic Unionization - Challenges That Need To Be Overcome

    ✓ Government interference.

    ✓ Company opposition.

    ✓ Worker apathy.

    ✓ Time-consuming and expensive.

    ✓ Unions need to invest in resources.

    ✓ Democratic unionization on the factory floor is a


    challenging but worthwhile goal.

    ✓ It can help to improve working conditions for workers


    and create a more just and equitable society.
    How do you feel about Foxconn case study?
    Reflections and
    Recommendations
    Workforce
    Planning

    Succession
    Talent Management planning
    Recruitment &
    Selecting
    ( Transitioning )
    System Implementation

    compensation &
    Onboarding
    benefits

    Training &
    Developing
    TALENT MANAGEMENT SYSTEM IMPLEMENTATION
    ✓ New job design.
    ✓ Clear job description.
    ✓ Raise wages to market value
    ✓ Benefits include life and health insurance
    ✓ Show care and stop treating workers as machines
    ✓ Increase employee engagement.
    ✓ Develop a culture that the workers are the core of
    the production.
    ✓ Stop of supervisors abusing their authority against
    the workers.
    ✓ Training, coaching and development.
    ✓ Succession planning.
    Balanced
    Score Card
    Measures

    Make internal, learning and growth side of equal priority


    and weight as the other sides.

    Change the (SOPs) to be more agile and flexible.


    Psychological
    Personal
    Support & Do Regular Organize Anonymous Present And Discuss

    Satisfaction Psychological
    Personal Support
    Regular Satisfaction
    Surveys.
    The Survey Results.

    Sessions.
    Surveys
    Conclusion
    Hard Radical Strategies: led Foxconn to continue
    being one of the 300 most wealthy companies but
    there are deficiencies in the HR strategy and in
    managing the resources that led to the series of
    suicides.
    Military Way: confronting situations in a fire
    fighting method & targeting their goals in
    disconnect from the workers.
    The company should change to a more caring one,
    from make-and-sell to a sense-and-response, to
    encourage workers and increase productivity
    abiding several talent management techniques.

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