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BRiC and Sony

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  • Introduction

    Human Resource Management Challenges at Sony Started in the wake of WWII and officially founded in 1958Sony is a Japanese Electronics Company that employs over 170,000 worldwideThey make everything from gaming systems to semiconductors

  • Introduction

    Issues with Sonys Managing its Manufacturing WorkforceHuman Resource Management Philosophy at Sony Training and Talent Management Development Corporate Social Responsibility

  • Sonys Approach towards Staffing Subsidiaries

  • What approach do you think should Sony apply?Because The high concentration of foreign firms in China (including Dell, Hitachi, IBM and NEC) has created much competition for local talent, Sony needs to hire expatsEthnocentric VS Geocentric

  • Ethnocentric StaffingExpatriates from home country to fill key management positionsAdvantages:Alignment of interests & perspectives of home office with all foreign subsidiariesEasier communication, no language & cultural barriersAble to transfer employees w a clear performance record- level of predictability

    Disadvantages:Lose local perspectives & insights to overcome unique hurdles in foreign office.Hiring expatriates is costlyLocal resentment in foreign subsidiaries-hurt morale

  • Geocentric StaffingUsed by business and other organisations that have a completely integrated global strategyStaffing undertaken at global levelBest person for the job is hired regardless of the persons country of originOrganizations overall strategy is integrated across the globe Organisation is able to make the best use of its human resourcesInternational executives-feel at home working in a number of different cultures

  • Common factors contributing to Expat FailuresInability to cope with larger overseas responsibilityDifficulties with the new environmentPersonal or emotional problemsLack of technical competenceInability of spouse to adjust

  • When Recruiting Expats, What Characteristics Sony Should Emphasise to Ensure its Managers Can Adapt When Living and Working Overseas Global MindsetCultural FlexibilityEmotional MaturityAbility to take on heavy and challenging responsibilityAbility to handle family affairs

  • International Managers:Maintain Management Trainee programs What are they passionate about? / What can they bring to the management role that could advance the firm?Global managers: Not Shy/ Risk Takers/ People Skills / InfluentialSenior leadership development programStringer appointed younger / non-Japanese leadersOther talent:Training tailored to individual demands and career aspirationsMentoring and coaching network providedExecutives coach successors Mentoring younger upper-management candidatesExhaustive interviews and assessments

    What steps should it take to ensure it has an adequate pool of international managers and other talent for world-wide operations?

  • Closed door management conference (Tokyo)Attended by 1000 Sony ManagersInspire managementConvey the firms strategic vision Global OrganisationPromote more international managers in other countries Diversity!BRICS Market 20% of Global GDP in three years (Growth Starategy)Operations rooted firmly in local marketsCapitalize on brand strength Tailored local sales networksB2B and Entertainment fieldsE.G Mumbai (Growing Entertainment Industry / SONY Bravia billboards)

    What should Sony do to promote global mindsets?

  • BRIC MarketBRAZIL Official FIFA Partner- Production site in Manaus Sales increase in Brazil- One of the top three LCD TV brands RUSSIA2010 Highest recorded sales Compact Digital Cameras / Portable audio playersSony Sub brands: Vaio/ PlaystationINDIALaunch of Sony Entertainment Television Joint VentureOffering general entertainment / comedy and movies Strengthening Sonys brandCHINASecond largest economyNationwide sales networkConsumer Products / Broadcast / Professional-use equipmentTop Brand in HD and 3D

    What should Sony do to promote global mindsets?

  • Question 3: What are your views of Sonys Training efforts?

  • Sony Operates in Many countries , so national economic conditions. Technology levels and infrastructure.Highly Customized training packages Multi Lingual trainings.Offers management trainee programs for most promising employees.Online system fast and easy way of development ( world).

    What are your views of Sonys Training efforts?

  • When Training there should be more entrepreneur spirit. Creative thinking/ strong communication skillsDiverse Talent e.g. Former Chairman Norio Ohga- Singer- Pilot- Orchestra conductor

    What steps could Sony take to improve its training in light of its multi- country operations?

  • Management training programsFormal coursesMentoring and coaching networksOn the job training Multi Level Job specific training Proper Training and orientation of managers may improve Sony Performance.

    What steps could Sony take to improve its training in light of its multi- country operations?

  • Maximization of people and the organisation through more training efforts Creative HRAmbitious HRGlobal HRProfessionalShares value , empower men and creates a next leader training generation.

  • If the employees are retained and used to use their Knowledge and skills it will enable sufficient CommunicationCo-operationCollaboration Culture

  • Overview of labour relations issuesIn 2013, production halted in Indonesia as a result of employee protests towards change in the production process

    In Mexico, the company was accused of workers' rights violation

  • Internal corporate image strategy Maximise communication with employees - E.g. involvement of campaigns -> explain all benefits/care towards employees - ensure transparency and open communication

    Explain the reasons behind decisions made by the company

    Necessary to regain employee trust -> Rectify the labour relations problem faced by the company in Indonesia

  • Human resource strategies According to Wagner and Gilson (2000), HR strategy impacts labour relations

    Shift away from the traditional management approach/ rigid boundary between management and employees - Requires new business processes and organisational structures

  • Human resource strategiesReshape organisational culture, in conjunction with: Offering competitive remuneration Important to create an employee-engaging environment Most importantly, however, is the example set by management towards employees in building trustFoster a culture of trust

  • Human resource strategies

    Build and maintain emotional intelligence of leaders within SonySaruta (2006, 487) implies the benefits of having emotionally intelligent leaders Leads to better-performing and more satisfied employees

  • Human resource strategies- B2EB2E strategy involves all HR strategies within a competitive market B2E platform includes all relevant information desired by employees Aim of B2E platform is to:- Maximise satisfaction and efficiency of employees - Build sense of community and unity

  • Disconnect between employees thoughts and feelings and employers Freeman and Rogers (1999) highlight this dissatisfaction of employees who feel employers don understand their needs and wants Regular anonymous satisfaction surveysCompany-wide meetings, a forum to implement employees and employer based discussions

    Employee Satisfaction Strategies

  • Company-wide meetings, a forum to implement employees and employer based discussions Help legitimise employee concerns and make them feel heard Useful strategies to create Two-way discussion Freeman and Roger (1999) again highlight the importance of employee satisfaction, that is becoming key to Contemporary Companies

    Employee Satisfaction Strategies

  • Conclusion

    Expatriates- Citizen of the companys home country working in foreign country

    Host country national- Citizen of host country. Employee hired by foreign company to work in home country

    Han-Third country national- An employee that is a citizen if one country, but is working in another country for a company that is headquartered in a third country

    Ethnocentric staffing-Relies primarily on expats

    Involves staffing the most important positions in foreign subsidiaries with expatriates from the companys home country

    Expats believed to better represent interest of home office & ensure foreign officers are aligned with home headquarters

    Benefit: Alignment of interests & perspectives of home office w all foreign subsidiaries abroad

    Easier communication, no language & cultural barriers

    Able to transfer employees w a clear performance record, giving a some level of predictability

    Cons: lose local perspectives & insights that local employees can provide which can help overcome unique hurdles in each foreign office.

    Hiring expats more expensive vs hiring locally

    High ratio of expiates may create local resentment in foreign subsidiaries that may hurt morale

    Geocentric staffing-

    Global approach, where organizations overall strategy is integrated across the globe and the best employees are selected regardless of their countries of origin

    used by business and other organisations that have a completely integrated global strategy

    Staffing undertaken at global level, best person for the job is hired regardless of the persons country of origin

    Complex method , HR needs to deal with HR issues on global scale

    *

    Geocentric staffing-

    Global approach, where organizations overall strategy is integrated across the globe and the best employees are selected regardless of their countries of origin

    used by business and other organisations that have a completely integrated global strategy

    Staffing undertaken at global level, best person for the job is hired regardless of the persons country of origin

    Disadvantages

    Complex method , HR needs to deal with HR issues on global scalecan be limited by immigration laws is costly to implement

    *

    the inability to cope with larger overseas responsibilitydifficulties with the new environmentpersonal or emotional problemsa lack of technical competencethe inability of spouse to adjust

    *-Exhaustive interviews and assessments: Eg executive fast track candidates need to be fluent in English and two other languages / have international experience / posses drive and ambition to take international leadership roles -Senior leadership development program: Emphasises on developing visionary leadership and leading with emotional intelligence-A lot of emphasis on managerial talent!-Launched initiatives to groom more English-speaking executives (Japanese origin)*SONYs VISION: Across the world, in all the entertainment and communication sectors in which we operate, every Sony employee is united through a common set of beliefs, ideals and aspirations. This is our Vision.*SONYs VISION: Across the world, in all the entertainment and communication sectors in which we operate, every Sony employee is united through a common set of beliefs, ideals and aspirations. This is our Vision.**********