HRM GROUP PROJECT

Group 5:Vo Thong TuTu Le Hien Duc

1. INTRODUCTION

Foxconn Technology Group, a subsidy of the Hon Hai Precision Industries Ltd., is the world’s leading electronics manufacturer.

It ranks 112th among Global Fortune 500 Companies. Currently, Foxconn has a workforce of 900,000 workers all over China.

2. DESCRIBE THE PROBLEM Foxconn pays no attention to the actual stress of

workers resulting from their management methodology.

Thirteen Foxconn employees had plunged from building in 2010, of which ten died and three were injured.

All the employees, who commit suicide, were aged between 17 and 25.

3. ANALYSIS PROBLEM

The main problem of Foxconn is commit suicide.

From the main problem, we will write there are many causes below.

3.1. Basic wages is far below living wage.

Low wages compel workers to accept overtime hours well in excess of the legal maximum

The basic salary is not enough for the workers to live on in the city based on the general cost of living, they are forced to work long hours to support themselves.

Tianjin Wuhan Hangzhou Kunshan

Food consumption per captal (CNY) 450.42 469.14 518.15 534.96

Monthly living wage (CNY) 1684.5 1754.4 2173.3 2000.5

Local minimum wage (CNY) 920 900 1100 960

Basic wage of a frontline worker at Foxconn (CNY)

940 950 1250 1110

3.2. Employee stress.

Stress is a condition of strain that affects employee’s emotions, though processes and physical condition (Raymond J Stone, 2014. P.681).

The part below will list all the stressors that cause the stress at Foxconn.

3.2.1 Work overload: Workers generally work 11 hours every day,

including weekends and holidays in peak seasons

They can only take a day off every month, and they may need to work for several months without a day off in the peak seasons.

Some have to stand to operate their tasks all day, they only have two 30-minute meal breaks a day.

3.2.2. Physical environment.

The training for workers on health and safety is inadequate.

Personal protective equipment are not provided to workers

health examination is denied

3.2.3. Organization climate

Work environment such as extreme competition, poor communications and an authoritarian and threatening management style also create stress to employees.

All workers have to be highly focused on their work

They are not allowed to talk, doze off, giggle, stretch their bodies or move around.

3.3. Missing the needs of workers

At present, Needs of Love, Affection and Belongingness and Needs for Esteem are not met for Workers in Foxconn.

Most employees do not even know their roommates' names.

Managers often punish the workers with inhumane punishments

3.4. Harsh management extends to living place If workers violate the dormitory rules, their

names will be documented and they will be made to clean the dormitory as “volunteers”.

The insulting punishment is extended from shop floor to the dormitory.

It is not difficult to imagine the physical, social and psychological pressure workers need to endure when such treatment extends even to outside the workplace.

4. SOLUTION FOR IMPROVING SITUATION

4.1. Reduce working hours Sustained resolution of this problem is to

communicate directly to workers that management understands it is important to conform to work hour’s standards.

the factory must commit to paying workers the legal overtime rates.

4.2. Making working conditions safer

To reduce the risk of hazards in the workplace and new materials and manufacturing processes to assess potential risks and take appropriate action before they are introduced to the factory.

Need require immediate correction, look for the ways to expand safety procedures and practices in all similar facilities.

5. DESIGN CHANGE ACTIVITIES

If Foxconn could not raise the base pay, in order to solve the low salary problem because of the cost leadership strategy in their industry.

Foxconn can use incentive programs, not just using overtimes pay. For example, pay for performance which is a pay system that rewards employees on the basis of their performance.

5. DESIGN CHANGE ACTIVITIES (cont)

With the right combination of benefits can help Foxconn in promotion the attraction retention and motivation of employees.

The benefits should include financial reward that are not paid directly in cash to the employee for example child care, health care, insurance and all non-financial rewards such as safety condition at work.

5. DESIGN CHANGE ACTIVITIES (cont)

Foxconn should reduce the work overload in order to reduce the stress at work.

Foxconn should require accidents to be reported and recorded every single employee injury systematically and immediately.

Foxconn should improve “operating procedures, measurement, and documentation” related to the facilities

5. DESIGN CHANGE ACTIVITIES (cont)

Foxconn should also improve the election process of worker representatives, as required by local law.

Training of workers to identify hazards, empowering the employees to look out for their own and their colleagues’ safety is an essential part of this process.

6. CONCLUSION Company should create an ethical, legal, and

business obligations to provide their employees with safe and healthy working environment.

Foxconn can achieve a sustainable development when they treat their workers as human, not as machines.

The mutual relationship between the company and employees will lead to sustainable development.