Human Resource Management in Foxconn - Essay Example

? Human Resource Management in Foxconn Background At the onset, it is quite ironic that the employees of a majorsupplier of a high end technology company would be driven to extreme measures of committing suicide because of low wage. It is hard to reconcile that Apple’s major supplier, which is Foxconn, do not have enough money to pay its employees considering that its client, Apple Inc is one of the most profitable and prestigious company in the world. The suicides were not even coincidence or caused by non-related issues but is directly related to work, and its frequency is disturbing. It began in 2009 where a factory by the name of Sun Dayong, committed suicide just because he lost an iPhone 4 prototype in his posession (Barbosa 2008). It was followed by 14 suicides 2010 until 2012, the latest in June of 2012 where suicides were directly related to wage. Obviously, there is something very wrong in the human resource management practice of Foxconn which needs to be addressed. Human resource issue The kind of technology that Foxconn supplies to Apple may be cutting edge and its client, Apple Inc may be a revolutionary company but the human resource practice of Foxconn is medieval that even predated classical management theorists whose theorists were already debunked by modern practice of management. Foxconn workplaces were often described as labor camps due to the horrible treatment of its employees that include abuse and illegal overtimes to the point that employees commit suicide. Worst, Foxconn also make their employees sign waivers that gurantee that Foxconn will not be sued by its employees up to their descendants if something happened to them whether they died, get injured and committed suicide (Malone 2010). In its Mexico plant, it was even alleged that the bus that was supposed to take the workers to and from the plant were deliberately delayed by Foxconn so that the managemend could force its employees to do an overtime work without pay while waiting for the bus. This issue had been compounded until riot broke loose in February 19, 2010 where employees set fire in the company’s gymnasium. These actions only manifests how callous and abusive Foxconn in treating its employees. Their human resource practice virtually breaks every rule in good human resource management. Their human resource practice did not even conform to the basic tenet of Taylor’s scientific management which is the most basic management concept available today. Taylor management theories may have been dismissed as outdated but at least, Taylor had the motivation concept that if employees will be paid well, they will also be motivated to work well (Butler 1991). Foxconn is notorious in this aspect that its employees are even driven to suicide out of frustration of the company ‘s level of pay. It would find ways where it can force its employees to work overtime without pay such as delaying their commuter bus. It may be a cheap strategy but Foxconn would resort to it for as long as it can make more money out of its employees never mind if they will commit suicide later. Foxconn has also no regard for its employees welfare. Instead of addressing the root cause of its suicide issues in the company which is mismanagement and oppressive pay, it instead made its employees sign a contract that would deter them in suing the company if anything happen to them in the company. This is Foxconn’s response to its human resource issue which is to protect itself from legal complications instead of mending its management practice (Dalrymple 2009). What Foxconn should have done? Applicable human resource theories. Had Foxconn been a conscientious company, it should have addressed the employees grievances instead of seeking legal protection. If the issue is pay, Foxconn should have increased the wages of its workers at least for it to become competitive industry and not at its current level where it drives employees to suicide. Second, it should have conducted leadership and management trainings to its line managers and supervisors, including the executives to improve treatment of its employees. Its HR should have installed a feedback mechanism during performance appraisal on how the employees feel about their work and the company allowing Foxconn to apply remedial measures if there are common issues cited by the employees. Apparently, this concept is alien to Foxconn because it seems that it would take advantage of its employees whenever it can. Instead of being abusive to its employees to work harder, Foxconn should have employed reward system that would provide incentive to those who performs well so that its employees will be motivated to work. But instead of motivating and rewarding, Foxconn turned its factories into a labor camp employing abusive methods to compel its employees to work. In Maslow’s Hierararchy of Needs, the worker’s first order of need which is biological need is not even met and such, it was not surprising if Foxconn’s employees will be driven to suicide. One of the factors that contributed suicide among its employees could be the monotony of the job or burn out due to the repetitive nature of work considering that Foxconn is a manufacturing plant where there are assemblies with personnel assigned to do a specific work. Foxconn would have employed Herzberg’s theory of motivation of making its employees motivated to work by making the work interesting through job rotation and giving them more autonomy (Herzberg 1987). Again, this concept seems foreign with the management practice of Foxconn towards it employees. Is Apple a party to be blamed? Foxconn may be the company to blame for the suicide to its employees but its client, Apple Inc is also a party to it. Perhaps Foxconn was also driven to be thrifty to the point of being opressive in giving salaries to its employees because of the business strategy of Apple of leveraging on its liquidity by locking down suppliers in a long term contract at a cheaper cost. Such, the response of Foxconn having been shortchanged by Apple is to pass the burden to its employees by not paying them with right wages. The necessity of treating employees right Treating employees right should be done not only out of social propriety but also because of business imperative. When people are motivated to work, they are likely to perform better that would increase their productivity which will ultimately benefit the company’s bottomline and profitability. Thus, it is better to motivate employees than abuse them in making them work. Bibliography Barbosa, David (2009). IPhone Maker in China Is Under Fire After a Suicide. Retrieved from http://www.nytimes.com/2009/07/27/technology/companies/27apple.html?_r=2&scp=1&sq=foxconn&st=cse [accessed April 10, 2013] Dalrymple, Jim (July 21,2009). Apple confirms death of iPhone worker in China. Retrieved from http://news.cnet.com/8301-13579_3-10291701-37.html [accessed April 10, 2013] Butler, G.R..(1991) Frederick Winslow Taylor: the Father Of Scientific Management and His Philosophy Revisited.Industrial Management, Vol. 33 Issue 3, p23, 4p Herzberg, Frederick I. (1987). 'One more time: How do you motivate employees?  Harvard Business Review, (65):30, 48-61. Hoffman, E (1992). The Last Interview of Abraham Maslow. Psychology Today 25(1): 68-89. Malone, Andrew; Jones, Richard (2010). "Revealed: Inside the Chinese Suicide Sweatshop Where Workers Toil in 34-Hour Shifts To Make Your iPod". Daily Mail (London). Retrieved 2011-10-07 Read More