ABSTRACT
In the current study, learning has focused on diverse emerging issues that engineering firm or auto mobile sector faces while operating business in developed as well as developing nation. Key motive of current study was to understand the key difference in between the human resource practices of developed and developing nation. Current learning is also essential to understand the key issues that engineering or manufacturing sector faces. Honda is one of world's largest motorcycle manufacturing firms since 1959. Company is also considered as world's largest manufacturing business firm that provides internal combustion engines. Organisation manufactures 14 million internal combustion engines every year.
In the support of this, it has been spotted that human resource management of Honda, Japan focuses on four key pillars which can be classified as long term employment, seniority based promotion and compensation, company driven employee training programs and trade union. In the current study, it has been spotted that company focuses on regular base training programs for employees so that their engineering skills can be improved in an effective manner. In developed nation like Japan, human resource practices of Honda offers salary to its employees on the basis of engineering functions and age. While on the other side, in India, company is not considering training and development process as a critical factor that impacts the manufacturing and engineering process in a diverse manner.
Moreover, it has also been identified in the learning that cultural fluctuation is one of key issues for the management of Honda while moving to developing nation from developed nation. In developing nation, it is necessary for human resource management to have effective identification of cultural needs as it facilitates in effective designing of strategies which is beneficial for the effective accomplishment of engineering activities. In the culture of developed nation, it is one of critical decisions for management to fire individual. It can be considered as an inequality activity which can impact the morale of workforce in a negative manner.
Introduction to Contemporary Engineering Issues
Contemporary Engineering Issues are related to engineering problems that business organisations are facing while operating business in international market. In support of this, it can be said that bike manufacturing sector is one of critical sectors of engineering (Wang, 2007). In other aspect, it can be stated that it is necessary for students to understand key issues that bike industry faces in manufacturing of products. Moreover, it has been identified that sector is facing various engineering and other problems as it has moved from developed nations to developing nations in order to reduce the cost of product manufacturing.
Company Overview
Honda is one of world's largest motorcycle manufacturing firms since 1959. Company is also considered as world's largest manufacturing business firm that provides internal combustion engines. Organisation manufactures 14 million internal combustion engines every year but manufacturing in Japan and supply of spare parts in India or any other developing nation is one of the key issues that impacts the organisational performance of engineering outsourcing firm (Kitchenham, 2009). In this context, it has been identified that business organisation has now moved from developed nation to developing nation so that manufacturing cost can be reduced.
Human resource practice of Honda in Japan
In support of this, it has been spotted that Japan is parent nation for Honda. As per the structured study, it can be said that human resource practice in Honda, Japan focuses on four key pillars. Classification of four key pillars can be as long term employment, seniority based promotion and compensation, company driven employee training programs and trade union. It means that human resource management of Honda, Japan focuses on recruitment and selection process that provides long term employment opportunities to business so that goals can be accomplished in an effective manner (Wang, 2008). It has also been spotted that fifty five percent of Japanese companies are still observing various factors that provide long term employment. In this respect, management of Honda, Japan is also considering active recruitment and retention tools. Moreover, in order to have effective long term employment, business organisation is having direct recruitment from college and universities so that employees will have long stay with the organisation (Richerson, 2005). Effective promotion and compensation strategies are being adopted by human resource management of Honda, Japan in order to enhance the motivation level of employees. With an improved level of motivation level, employees can perform number of engineering and manufacturing tasks in a better way.
Moreover, human resource practice of developed nation promotes industrial peace and high degree of trust among employees. It also provides proper allocation of human resources so that various engineering and manufacturing tasks can be performed in an effective manner. In support of this, it has also been spotted that human resource practice of Honda, Japan provides salary to employees as per the consideration of functions and age (Shepherd, 2011). In this, skills are also considered as a significant factor while advancing pay. It promotes harmony with the organisational culture so that work culture can be maintained in an appropriate manner. In developed nations, activities like demotions and salary reduction are rarely taken into account so that it also creates positivity in work culture. It also reduces the employment cost for company and increases the business opportunities for Honda, Japan (Ma, 2006).
Other than this, Company also provides regular base training to employees so that their engineering skills can be improved in an effective manner. In other aspect, it can be stated that management of Honda, Japan is focused more on the identification of hi-post and managerial talent. Company is focused on the development of generalist so that each member can provide great assistance to diverse engineering actions (Olds, 2005). It also increases collective work environment within organisation and lead business to impressive level of success. In support of this, it can also be stated that business organisation is also focusing on traditional Japanese training styles to improve engineering skills in an effective manner. Moreover, human resource management of Honda, Japan also gives efforts as per the rules and regulations of various trade unions that are present in nation. Company also focuses on international standards to meet objectives in an appropriate manner (McMichael, 2011).
Human resource practice of Honda in India
In support of this, it can be said that while operating business in India Honda is focusing in different human resource practices to meet the organisational goals. In this respect, it can be stated that human resource practice of Honda, India mainly focuses on short term employment, performance and personal relation based promotion as well as less arrangement of employee training programs and trade union. It means that human resource management of Honda, India is mainly focusing on activities that provide short term employment opportunities in order to accomplish various manufacturing tasks. Company does not focus on effective or long term recruitment system as their key motive is to acquire human resources and accomplish task (Bansal, 2005). It means that human resource management of Honda, India is not having effective focus on active recruitment and selection process that can provide long term employment opportunities to business. Company’s key motive is to acquire low cost human skills that can accomplish engineering task effectively in order to meet organisational goals. Company is also not focused towards employee retention strategies as in India they can easily have the availability of human resources (Aguinis, 2009). Human resource management of Honda, India is focused on indirect recruitment and selection process with an assistance of various consultancy organisations.
Other than this, human resource practice in India is also influenced due to unethical practices which are not identified by management. Mostly human resource professionals provide compensation and promotion to employees so that they can maintain strong personal relationship with individuals. It impacts the morale of talented employees in a negative manner (Dowling, 2008). Moreover, human resource practice of developing nation does not promote industrial peace and high degree of trust among employees in an effective manner. But, it facilitates firm to accomplish engineering task in desired time period by using easy accessibility factor of human resource. These kinds of practices also impact the promotion of harmony with the organisational culture in a negative manner.
In support of above statement, it can be said that human resource management of Honda, India is also not focused on regular conduction of employee training so that sometimes it impacts skills development process in a negative manner. Company conducts training and development programs for employees but it does not have regular implementation. In other aspect, it can be said that sometimes human resource professionals consider training and development process as a formality. Human resource management of Honda, India mostly uses latest technological tools in training and development program to reduce the cost of operations (Reid, 2011). Company is focused on the development of specialists so that individual can perform his/her task in an effective manner without any assistance of any other employee. It impacts effectiveness of team work within organization. In other aspect, it can be said that business organisation is also focusing on modern training styles as per the western culture in order to improve engineering skills in an effective manner (Robert, 2005). Moreover, human resource management of Honda, India also ignores the rules and regulations of trade union to reduce the cost or accomplish task in desired time. It does not mean that company is having unethical practices but they are also focused on international standards to meet objectives of business in an appropriate manner.
Issues
There are number of human resources and engineering issues that management of Honda faces while operating business in developed as well as developing nation. In this support, it can be said that cultural differences create number of issues for the management of Honda. While operating in developing nation, it is necessary for human resource management to understand cultural needs so that activities can be designed in an appropriate manner which is beneficial for the effective accomplishment of engineering activities (Escobar, 2011). If, company will not design strategies and engineering activities as per the culture and perception of local community, then management can face some critical issues. Moreover, identification of employee’s needs and culture is one of significant factors for every business as it can influence the overall operational activities of Honda.
Another key issue while operating business in India is related to less availability of skilled human resources. In India, company has availability of human resources in an easy manner with low cost but they are not well skilled as Indian educational system has some loopholes. In the support of this, it can be said that educational system of India is not effective and students are not well skilled or knowledgeable about engineering concepts (Cuervo-Cazurra, 2008). It has been identified that number of professionals do not have proper knowledge about the key scope of engineering activities that impacts the overall process of manufacturing in a negative manner. It also increases the cost of training and development program in developing nations but human resource management is not focused on regular employee’s training. This clearly indicates that skills of employees cannot be developed on the continuous basis (Escobar, 2011). If, business organisation focuses on regular basis training program, then operational cost of business will be increased.
Other than this, while operating business in developed nation, human resource management of Honda also faces few issues that impact the operational activities in the context of engineering. In developed nation, culture it is one of critical decisions for management to fire individual. It can be considered as an inequality activity which can impact the morale of workforce in a negative manner (Robert, 2005). In other words, it can also be said that management also faces issues regarding non competency of factors which also impact the functional activities of business in the context of engineering or manufacturing of motorcycle.
Moreover, company also faces issues regarding the high employment cost which influences the overall cost of operations. It has also been identified that human resource management of Honda also faces issues in manufacturing process due to economic crises and liberalization in Indian economic system (Reid, 2011). For example, prices of resources in India have increased, then it forces management to increase the level of budget allocation so that engineering or manufacturing process will not be impacted. Less availability of machines and other supportive tools in developing nation is also one of the key issues for human resource management.
For example, manufacturing of motorcycle requires high level of technological tools and machines which are not available effectively in India. In this situation, it is necessary for management to import technological tools and machines from developed nation. These kinds of activities increase the cost of operation and also impact the manufacturing process of Honda. Lack of awareness among employees regarding the operational activities is also one of critical issues for human resource management of engineering firm (Cuervo-Cazurra, 2008). If, employees does not have proper skills regarding the engineering activities then it will have negative influence on the overall organisational performance. High level of focus on consultancy firms for recruitment and selection impacts business in a negative manner as it increases the cost of recruitment and selection process. Moreover, high level of involvement of consultant in process also impacts the effectiveness of selection process and may be possible that skilled employees will not be hired due to influence of consultant (Wang, 2007).
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Conclusion
As per the above study, it can be concluded that engineering outsourcing firms are having number of issues that impact organisational effectiveness. It has been identified that auto mobile firm faces issues in the context of human resource and engineering while operating business in developing nation. Less availability of skilled workforce and improper support from technological tools are one of the key issues that human resource management faces while operating business in developing nation like India. Furthermore, recruitment process and other human resources practices also impact the engineering activities within Honda.
References
- Cuervo-Cazurra, A., 2008. Transforming disadvantages into advantages: developing-country MNEs in the least developed countries. journal of international Business Studies.
- Dowling, P., 2008. International human resource management: Managing people in a multinational context. Cengage Learning.
- Escobar, A., 2011. Encountering development: The making and unmaking of the Third World. Princeton University Press.
- Kitchenham, B., 2009. Systematic literature reviews in software engineering–a systematic literature review. Information and software technology.
- Aguinis, H., 2009. Benefits of training and development for individuals and teams, organizations, and society. Annual review of psychology.
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