Sonys Evolving Human Resource Challenge

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In the world today, firms of various kinds produce multimedia systems ranging from home entertainment systems to laptops computers. Sony is one of the foremost and leading manufacturers of home entertainment systems, media players, game console and laptop computers. The companies also operate motion picture divisions like the Sony picture entertainment.

The company’s head office is located in Japan and operates across major countries in Europe and North America.Sony employs more than 165000 workers with improved human resource management. The location where the company operates differs in terms of culture, technology expertise, economic conditions and infrastructure. Workers of the firm are faced with series of risks. For instance, in 1999 an executive of one of the firm’s branches in Mexico died during a failed carjacking.

Sony has a very good human resource management (HRM) that helps the organization to deal effectively with its employees during their various phases of the employment cycle.The HRM division is efficient and effective from the firm’s job recruitment stage to the post selection stages. The firm is more interested in the skills possessed by the potential worker than his qualifications during its recruitment stage. Since, Sony tries to improve its international human resource management and image, the company form some policy options that needed to be implemented. One of such is the linking of the firm’s goals and objectives to the employee capabilities that are needed to achieve important responsibilities.There’s planned learning experiences that teach workers how to perform their current jobs effectively and efficiently by the company.

Sony also has talent development program where promising trainees are encourage to work towards the progress of the firm. For instance, these employees are given the opportunity to study for 2 years, 8 month component that covers all aspects of the firm operations and the firm’s practices.In addition, senior mangers tries to carry out SWOT analysis on its employees to enable them utilized their various skills effectively and efficiently. There was major work force lay off by the company in 2003 due to decline in profitability and local labor unrest. Sony fired 1000 workers in Indonesia and shut down an audio-equipment plant in addition, 4000 employees were fired in Britain due to loss of competitiveness.

The firm tries to maintain work place standard that encourages integrity in other to gain entry into new markets and have a good company reputation.In 2005 there was restructuring in the management where the first non-Japanese Sir Howard Stringer was hired as the CEO and chainman of the company. Stringer took some critical decisions that included the closing down of eleven factories, reducing the workforce by 10000 and relocation of the firm’s main producing component to low-cost place like China. This is necessitated in order to increase the firm’s profit by reducing the cost of production as it was cheaper to produce away from the home country and produce in low- cost countries.In addition, the high concentration of Multi National Corporation in China created much competition for local endowment and many companies face scarcity of new hires. The issue facing the company includes high competition by other companies and shortage of employees, high cost of production that reduces the firm’s profits.

In addition, the environment that the firm operates differs in terms of culture, technological advancement, economic and legal conditions.The firm also faces serious issue of economic changes and restructuring. Possible Pros and Cons/ Recommendations: Sony should gain competitive advantage over its competitors by effectively managing their human resources. The firm should introduce innovation product that is preferred by buyers to gain competitive advantage and able to control a major percentage of the industry market share.

Gaining cost advantage and product differentiation should be some major objective that Sony should pursue.Sony must provide the same services and products as its competitors, but produce them at a lower cost. The firm should also reduce its per unit cost of production by increasing the value of number of units produced to the total cost of production. Cost of production can be reduced by using of new technology, devising more efficient work methods and cutting overhead costs. The firm should also create a better quality service and product, choosing a superior location, promoting and packaging its product to create the perception of higher quality.

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