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  • Subject Name : Human Resource Management

Assessment 1: Critical Evaluation of Sony in India

Some important justifications needed to be provided against the justification towards the argument that is the recruitment challenge faced by the Sony employees in India. This statement is true to a certain extent in the sense that Sony Electronics in India had laid off some employees due to a fall in the sales and also facing the competition from the Chinese competitors (HRkatha 2020). The justification behind this is due to the availability of cheaper models of China within the market which have forced around 200 employees to leave the company.

Particularly,the market survey highlighted that the television market in India is getting affected largely with the sales falling two percent since the last two years. The reason behind this is that consumers nowadays prefer streaming the contents online by using laptops or smartphones. It has been found that the market expansion was good for Sony in India that is around 22 per cent during 2015, 17 per cent in the following year, and only around 3 per cent in the other years (Sony 2020). This shows that the curve of the market share of the television of Sony Company is declining over time.

However during a bid, to cut the costs Sony India had started merging some of its branch offices and have also rehauled certain business strategies as well as human resources so that the agility along with efficiency and the long-run stability can be easily achieved.The operational revenues of Sony India during 2018-19 fell by 8.3 per cent from last year to around 6,417.52 crores (Sony 2020). However, the sales by Sony India have gained a peak of around 11,010 crores during 2014-15. However, the revenues have started falling gradually from FY 2016. This in turn had failed in generating inters among the employees to join the company.

The management of Sony India has announced that it had realized losses during 2012 and hence since 2008, the management of Sony India has failed in generated a profit since 2008.One important mistake that has been committed by the management of Sony India is that it has failed in acknowledging some of the biggest technological innovative procedures that are the digitization where the shift towards the software and Internet importance got neglected by Sony India (Sony 2020). In Sony India, the executives have complained privately regarding the managers who have refused in sharing the information and also refused to work with the other divisions. In this context, the management of Sony India has to start its operations again through exiting some of the product lines where focus towards brand vulnerabilities at the top tech companies needs to be developed (Writankar 2019).

The management of Sony India failed in persuing the best creations by harnessing the diversity as well as inclusions. In addition to this, the management of Sony India has also failed in making proper exemplification of ethics as well as responsibility through which the sustainable business and growth can get maintained. On the other hand, the communication between the top management along with the Sony India employees not get maintained effectively is the lack of global governance. This is the reason; the management of the company have faced certain recruitment challenges (HRkatha 2020).

Assessment 2: Critical Evaluation of International Orientations to HRM in MNCs and its impact on IHRM policies of MNCs

International orientation in the context of an organization or an enterprise is defined as one form of the connection of internal presence concerning about trade, degree of influences, both inward and outward investments as well as the control across the borders (Mahadevan 2020). There exist different stages of international orientations. First of them is the ethnocentric orientations where the companies did not adapt their products as per the desires of other countries. In addition to that, no changes are there in the specification of the products, promotions as well as price levels. The company’s senior management’s general attitudes state that the nationals from that of the native country of the company are more open and adaptable in the context of driving the international activities forward as compared with the non-native employees who work at the subsidiary levels (Mahmood 2020). The advantage of this form of mindset is that through this the lack of qualified managers can get easily overcome through their migration from home countries. Then comes regiocentric orientation where a particular company finds certain similarities in the context of the economic, cultural, and political similarities so that the customer’s similar needs can get easily satisfied (Sharma and Matta 2018).

For example, Pakistan, as well as India, are similar since they possess similar and strongregional identities. Other than this, there comes geocentric orientation through which the global marketing gets encouraged. It not only helps in equating superiority along with nationality but also tries its best in seeking for the best men as well as problems so that they can be solved with both of the legal and political boundaries. This indicates effective human resource management usage through the development of effective and strong culture and also the development of informal managerial channels ( SIETAR Switzerland 2020). Under polycentric orientation, the company should be provided with equal importance in every domestic market of the country. The participating country under this treated solely and at the same time here the individual strategies also carried out efficiently.

In the context of MNCs, the HRM practices and the strategies are under the strong influence of cultural as well as institutional factors due to the presence of characteristics of social embeddedness. As being highlighted by Mahadevan (2020) the impact on IHRM policies through international orientations can be defined as the development of cultural and institutional factors due to the presence of social embeddedness characteristics. Sharma and Matta (2018) argued that American MNCs can be defined as one of the most centralized in context of the decision making than the European MNCs. Coming to the functions of HRM, one of the important and debated functions of HRM is the performance management function which is one of the ongoing communication process existing between the supervisor and the employee through which the organizational objectives can be attained. Performance management involves certain processes like planning, reviews, and checking INS.

On the other hand, the function of the organizational reward system is in the enhancement of the motivation among the employees and also reward them due to their contribution to the organization like making any strategic decision regarding the product development or the employee communication enhancement, etc.This helps in bringing effectiveness. On the other hand, in the context of employee relations and the human resources, it has been argued by the authors like Mahadevan (2020), that the primary purpose of the employee relations is in strengthening the relationship between the employer and the employees through resolving the issues in the workplace based on which the satisfaction among the employees and the employee morals can be adequately safeguarded and this way the adequate amount of support can be provided to develop the companies performances. In the context of the impact of International orientations on MNCs IHRM policies can be accessed and evaluated through different International orientations like ethnocentric,geocentric,and polycentric.

The MNCs following the ethnocentric policy usually go with exporting HRM approach whereas the others like polycentric and that of geocentric follows best practice approach of IHRM policies. It has been argued by authors like Sharma and Matta (2018), that the polycentric orientation generates a positive impact on the MNCs IHRM policies that is the formation of the higher autonomy. However. Geocentric orientation focuses on more complex attitudes by the MNCs. But the positive thing about this orientation is that it brings out the best practices from MNCs following IHRM policies which have a direct positive influence on the subsidiaries; behavior. The parent company influences, and the standardization of different recruitment and selection activities, depended on the headquarters‟ attitude towards subsidiaries‟ HRM practices as well as on the scope of employees‟ mobility among different subsidiaries (Mahmood 2020).

However, apart from the above factors, MNCs also face sudden challenges like the adaptation of the traditional talent developmental practices to the global extent and environment. In addition to this, MNCs also need to understand the existing operational conditions and along with that the present business environment on the local level while monitoring and understanding the global strategy of the firms.Some of the companies choose to make recruitment from the global open market. However, according to Mahadevan (2020), it might yield to less than desired results to attain successful global leaders. On the other hand,most of the researchers have found that the Chinese economy has led towards the creation of higher demand for talent management for the nationals of China through the development of talent and leadership potentialities.

Bibliography for International Orientations to HRM

Hiroko, T. 2012. How Sony failed to keep up with the tech revolution. Available at: https://www.livemint.com/Companies/WSFk5Ck18LpCGHKaBcFogM/How-Sony-failed-to-keep-up-with-the-tech-revolution.html

HRkatha. 2020. Sony India lays off over 120. Available at: https://www.hrkatha.com/hiring-firing/sony-india-lays-off-over-120/

Mahadevan, J. 2020. Ethnographic studies in international human resource management: Types and usefulness. German Journal of Human Resource Management , 34 (2), 228-251.

Mahmood, M. 2020. Strategy, Structure And HRM PracticesIn Multinational Subsidiaries: European Mncs In A Developing Country Context . Available at: https://pdfs.semanticscholar.org/b53d/7c4f8bc81c64c098645de521e67a71738976.pdf

Sharma, V. and Matta, M.G., 2018. Reinventing IHRM Factors for Expatriate Satisfaction in it Sector in Asia and Outside Asia. Asian Journal of Management, 9(1), pp.227-238.

SIETAR Switzerland. 2020. Performance appraisal in multinational companies: the most culturally sensitive HR practice? Available at: http://sietar.ch/performance-appraisal-in-multinational-companies-the-most-culturally-sensitive-hr-practice-by-dr-samer-francois-nakhle/

Sony. 2020. Sustainability Reporting. Available at: https://www.sony.net/SonyInfo/csr_report/employees/

Writankar, M. 2019. Sony India's revenue falls for fourth year in a row. Available at: https://economictimes.indiatimes.com/industry/cons-products/electronics/sony-indias-revenue-falls-for-fourth-year-in-a-row/articleshow/71142649.cms

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