GROUP 9 August 30, 2019

Ayubo, Shania Human Resource

Libao, Anne Section-2
Mission, Rysa

Chapter 1
Rising Wages Send Companies in Search of Cheaper Workers
Questions:
1. From a global business perspective, what factors would a company’s management consider
when it decides on where to locate a manufacturing plant in a particular country/locality? What
implications do they have for the host country/locality’s government? Please rank these factors in
descending order of importance and justify your answers.
 As we all know that it is not only the internal aspect we are going to thoroughly but also
the external aspect, which is the environment if the surroundings or ambiance of that
specific country is the best fit for that company. Since, some of the company’s today are
looking where their products are going to be a big hit or would sell the most. And with
these case, stated that “relocating a production site is no small decision”, which is
absolutely true since we are dealing in a different country where they also have different
perspectives and rules and regulations to be followed. There are actually four factors in
putting up a business in a different country, first, the most important is the government
influences because it deals with the government policies, laws, and any legal papers needed
for the company to work on. They should be able to secure all the documents for a smoother
transaction and should respect and understand carefully the given law so that there would
be no problem in the long-run. The second important to look forward to is the economic
condition or state of a country because it would greatly affect your business if you are not
fully aware about their economic growth and do some research if they already had an
economic crisis because if the country is not that stable then your business will not work.
You have to make sure that choosing a relocation deals with the external aspect because it
plays a big part of a company you are putting into. And third, would be the geographic and
competition concerns after researching about the place you should also focus on various
competitors around your company since it is said in the case that Malaysia has higher wages
compared to the other countries involved in the ASEAN, but since China has too many
employees that is why they are called “manufacturing hub”, since each person would
accept the job even though they would work for low wages so you have to stay close with
what your competitor is trying to impose. And lastly, workforce composition, it might look
like that we are less prioritizing the workers but no since we have studied in the past term
that workers should be flexible and open to changes and also workers that already has
experiences since he or she already has the background of their job and would be easier
and effective since it would be a win-win situation for both employee and company. And
we should always practice diversity as it is because we will be handling different people
with different opinions in life. It may seem that there might be complications just like
having communication barriers but we should not let these barriers keep us from not talking
to other employees and try a different setup. It would be a better workforce if all of the
employees are doing their part in the specific department and if you would look at China
are experiencing lack of unskilled labor it is very hard to look for employees which are
very capable in a specific field.
2. From a general human resource management perspective, which aspects of a manufacturing
workforce in a particular country/locality are difficult to manage? What tentative solutions can
you identify to address them? Please rank these aspects in descending order of difficulty and justify
your answers.
 As these instances happened within these different countries, there are lots of aspects been
involved throughout these issues. In terms of rising wages, we all know that it is good for
us to get some benefits from this to be needed to compensate for the increased prices of
consumer goods. First aspect included to this was organizational culture in a particular
locality because every country has its different collective assumptions and values in ways
of interrelate that can contribute to the psychological environment of every organization of
it. Since we had this different perspective in terms of managing a manufacturing workforce,
there are country that are against with this kind of proposal. One of the notion was
Masatoshi Matzusaki who was the chairman of the board of Japanese copier maker “Konica
Minolta”. According to him, he was against of rising wages and cheap labor. As he said
that they will not depend on this instead they will pursue the improvement and development
of using automated system. Other countries also come to an end to be independent about
the issue about wages alone. Since rising wages was up that ends up to proposed by other
country, especially Vietnam; there’s a kind of issue where people of it strike for two days
to make the rise of wages possible up to 5% but then luckily ended up into 12%. By that,
they should deal and adapt some opinions and information from other side since
organizational culture can bring all on a common platform whether it is a way to achieve
one’s common goals or not. Second aspect is recruitment and selection. This was included
since it was designed to maximize the employee’s strength in order to meet the employer’s
strategic goals. China was recognized and popular as the “world’s factory” because they
have this small number of unemployed people because almost of it are employed.
According to the article, China been also recruiting unskilled people with a doubled-wages.
Even though there are negative sides about it, they still believe and they also clearly
pointing out that they were improving faster and increasing their productivity because of
the large number of manpower they have. Third aspect included was the performance
management. Under this aspect, the unskilled labor of China was also involved. It was
difficult to manage since the people of it are lack of basic skills and have these poor
interpersonal skills. But besides on this based from the article, Flex Japan been recruiting
people in Myanmar since they’d known the characteristics of it, they would easily handle
and manage it alone. In order to manage it, they have been training its development for
three years as tentative solution to make some possibilities to improve more the skills and
bring some changes and contribution for the organization. By all these means, there are
lots of tentative solutions such as implementing strategic workforce planning and engage
more employee's performance from the first to manage well the aspects and handle it as
well from the locality of every issues involve in order to accomplish goals.