Case Study Analysis: Foxconn Technology Group

Key HRM Issues Highlighted in the Case Study

This was further substantiated by the poor working conditions highlighted at Foxconn, which are hard on low-skill employees. Much of the talk was about long hours, high pressure, and autocratic management – all stressful factors for the staff. The nature of the jobs done in the factory included assembly lines that placed a lot of pressure on the workers in terms of productivity. This raised work fatigue or other health issues that could affect the workers (Eccles et al., 2011). Some critical problems evident here were monotony and a decreased sense of ownership and identity due to repetitive work and fast production schedules. It is the culmination of these conditions that have led to several suicides that brought focus on the conditions of Foxconn employees.

Wage levels are essential aspects nuanced within the Foxconn case study. As much as the establishment offered employment to thousands of workers, the wages offered were considered tangent from a developed economy perspective. Resources indicated that a Foxconn worker is likely to spend only $1.8 per month on basic needs, indicating that an average employee needs help to plan for the future or when an emergency arises (Eccles et al., 2011). The political conflict between keeping the labour costs down to remain competitive in the market and the possible consequences of increasing these costs for the company's performance was an important issue to address. The wage levels at Foxconn concerned the company and manufacturing balance and the fair reward for employee input.

Considering the case study undertaken for this assignment, the issue of employees' well-being appeared to be more poignant, especially concerning their mental health and counselling. The trend of suicide in Foxconn is an emphasis on the importance of prevention strategies to deal with the situation of the workers. Some of the specific steps taken involved the formulation of a 'No Suicide' policy, setting up safety nets in areas identified as prone to suicide, and increasing the employees' remunerations as part of an effort to boost morale (Eccles et al., 2011). Nevertheless, the potential for reasonable and proportionate reactive measures has drawn attention to establishing and implementing a holistic and integrated Employee Welfare Program that enhances mental well-being and stress prevention and balances work and personal responsibilities. It is essential to create a tolerant environment at the workplace, which is necessary for the protection and wellbeing of all employees.

In this case, it was highlighted that lack of corporate responsibility has been an issue, especially where their suppliers are concerned. In the case of Apple, it is responsible for supervising their suppliers' practices regarding employees. This resulted in the spotlight being turned towards Foxconn on their supply chain, ethics, and the role and responsibility of global companies (Eccles et al., 2011). Making large-scale changes to corporate responsibility to guarantee the protection of workers' compliance with labour rights and the need for a successful supply chain policy. Businesses such as Apple were encouraged to actively ensure that they complied with ethical standards in which their suppliers worked, which implies that they should make efforts to ensure they act in the best interest of these suppliers as a way of practicing social responsibility.

Undertaking Research on the Problem Presented: Research Sources

While researching the issues described in the case, one finds multiple sources that shed light on the plight of Foxconn workers and the general consequences for a company such as Apple. According to the article "Foxconn and Apple Fail to Fulfill Promises” by Sacom, organizations remain negligent in their promises regarding the working conditions of their employees and the enhancement of wages for these employees. It also notes various instances of greenwashing, which state the best intentions that are only sometimes represented adequately in practice, necessitating more responsibility when managing supply chains.

Danau and Defraigne's article " The Resilience of the Relationship between Apple and Foxconn” reveals how Foxconn's labour issues are pertinent to Apple's achievement. The piece examines concrete examples of how Foxconn employees—or employees like them—affect Apple's brand image and how customers see the company. This underscores the issue of related but separate labour practices across the supply chain and what this means in terms of corporate sustainability and ethical responsibility.

Chan et al. (2022) article examines the tragic suicides at Foxconn and workers' rights. The article being analyzed presents an analysis of the social and economic factors that favoured suicide incidences and the employment problems of new LSP companies' low-skilled workforce in high-productivity demanding workplaces. It poses a major social issue on how multinationals treat their workers and the call for change that will preferably safeguard workers' rights in the supply chain process.

Critical Analysis

The problems at Foxconn can be effectively seen as indicators of the systemic problems associated with supply chain management around the globe. The case looks at the reality of irregular and low-wage labour and poor working conditions that characterize the common manufacturing workforce, which usually does not require many skills (Eccles et al., 2011). These conditions are detrimental to the health of appropriate personnel and have significant effects on the performance, image, and longevity of corporations working in such settings. The case thus highlights the importance of ethical leadership, endorsement of and support for employee wellbeing, and the establishment of sustainable human resource management practices in creating and maintaining a healthier organizational culture that will enable the success of organizations such as Foxconn.

Ethical leadership occupies centre stage in any organization since it creates strategy and culture that promote ethical practices and behaviours. Thus, it is high time leaders in companies like Foxconn, empowered with the responsibility of bearing the liability of the companies and customers, learn the importance of ethical-moral leadership in tackling the problems concerning labour (Eccles et al., 2011). Thus, forming an appropriate organizational culture that supports the integrity and social responsibility of leaders and employees can enhance the protection of workers' rights and compliance with ethical standards in the workplace.

Focusing on the issue of Foxconn, we may speak about employee wellbeing as the most burning issue in the context of its problems. Positive workplace culture and P3 outcomes require sustainable HRM practices, which consider, for instance, work-life balance or employee mental health. It is clear that roles such as investing in employee growth, offering opportunities to express oneself, and paying a fair salary are highly significant in boosting the satisfaction and quality of ordinary workers.

Industry Comparisons

Electronic companies such as Samsung have developed supplier codes of conduct and annual check and training programs to bolster supplier compliance with labour rights and ethical rules. In other aspects of risk management, the company's attention to detail and accounting density have been instrumental in curbing risks associated with labour exploitation, notoriously creating sound working conditions for employees.

Intel has also received accolades concerning diversity, equity, and inclusion in the firm's employment process. The policies regarding care for the employees, promoting personal and career growth of the workers, and a good remuneration program have led to impressive employment satisfaction in the company. Overall, Samsung Electronics and Intel have shown that ethical HRM practices both mean good business and serve as work ethic models in the industry (Hao & Bu 2022).

Recommendations

The first recommendation herein is developing and launching a broad-ranging employee help program. Regarding the employees' mental health concerns, a potential direction for improvement revolves around the necessity for Foxconn to develop a feasible and efficient Employee Assistance Program (EAP). This should include components like psycho-social support, counselling sessions, stress management sessions, and availing resources on dealing with personal and work-related cases. In this way, organizations like Foxconn can offer a caring environment that fosters resolution for employee mental health concerns, thus enhancing organizational wellness (Li, 2022). Moreover, it is recommended that the training of managers and supervisors for timely identification of distress signals and the availability of even EAP experts for any intervention will also complement the EAP.

Secondly, it promotes the visibility of supply chain management operations. Hence, Foxconn needs to observe maximum transparency concerning its supply chain management to conform to labour laws and professional ethics. Suppliers and subcontractors should develop clear reporting structures that reflect ethically sourced materials and practices and regular audits conducted that can be shared with the public (Li, 2022). Suppose Foxconn takes proactive measures in currently contentious areas like working conditions, wages, and employment rights down the supply chain. In that case, it will strike down general concerns surrounding labour exploitation and subsequently uphold its CSR.

There is also an imperative need to develop more human assets through care for employees. Foxconn may support different types of personal development activities that meet the interests and needs of employees and their employing organization, including training schedules, workshops, and promotion opportunities, to boost the satisfaction and motivation of its human capital and minimize its turnover. These approaches involve establishing means for career development, timely working scheduling, and wellness services, which are likely to enhance job satisfaction and create a stronger bond among the workforce. In the same way, Foxconn can improve the wellbeing of its employees and thus support a positive work environment that will develop the overall satisfaction and success of the employees.

The last one is to enhance stakeholder engagement, though this is more of a stand-alone activity that can be pursued independently of the others. Starting with the workers, interacting with unions and NGOs, as well as cooperating with governmental officials, is crucial in discussing labour-related problems and contributing to the formation of a positive image in society. This means that Foxconn should involve the stakeholders in the communication process with the organization and encourage them to provide their opinions, suggestions, and feedback regarding organizational decisions and activities (Li, 2022). By doing such things, Foxconn can reveal that it is a socially responsible organization and takes responsibility for the effects of its decisions on the stakeholders. Stakeholder engagement can result in the development of stakeholder-driven solutions, identification of benchmarks for sustainable employment, and effectiveness of partnership for maximum benefits that will positively impact the employees and society in the long run.