case Study : Sony Incorporation
By
Danang Rahmanto
By
Danang Rahmanto
company overview
Sony Corporation is a multinational conglomerate corporation headquartered in Minato, Tokyo, Japan, and one of the world's largest media conglomerates with revenue exceeding ¥ 7.730.0 trillion, or $78.88 billion U.S. Sony is one of the leading manufacturers of electronics, video, communications, video game consoles, and information technology products for the consumer and professional markets.
Sony Corporation is the electronics business unit and the parent company of the Sony Group, which is engaged in business through its five operating segments—electronics, games, entertainment (motion pictures and music), financial services and other. These make Sony one of the most comprehensive entertainment companies in the world. Sony's principal business operations include Sony Corporation (Sony Electronics in the U.S.), Sony Pictures Entertainment, Sony Computer Entertainment, Sony Music Entertainment, Sony Ericsson, and Sony Financial. As a semiconductor maker, Sony is among the Worldwide Top 20 Semiconductor Sales Leaders. The company's current slogan is Make.Believe.
History
In late 1945, after World War II, Masaru Ibuka started a radio repair shop in a bomb-damaged department store building in Nihonbashi of Tokyo. The next year, he was joined by his colleague Akio Morita and they founded a company called Tokyo Tsushin Kogyo K.K., which translates in English to Tokyo Telecommunications Engineering Corporation. The company built Japan's first tape recorder called the Type-G.
In the early 1950s, Ibuka traveled in the United States and heard about Bell Labs' invention of the transistor. He convinced Bell to license the transistor technology to his Japanese company. While most American companies were researching the transistor for its military applications, Ibuka and Morita looked to apply it to communications. Although the American companies Regency and Texas Instruments built the first transistor radios, it was Ibuka's company that made them commercially successful for the first time.
In August 1955, Tokyo Telecommunications Engineering released the Sony TR-55, Japan's first commercially produced transistor radio. They followed up in December of the same year by releasing the Sony TR-72, a product that won favor both within Japan and in export markets, including Canada, Australia, the Netherlands and Germany. Featuring six transistors, push-pull output and greatly improved sound quality, the TR-72 continued to be a popular seller into the early sixties.
In May 1956, the company released the TR-6, which featured an innovative slim design and sound quality capable of rivaling portable tube radios. It was for the TR-6 that Sony first contracted "Atchan", a cartoon character created by Fuyuhiko Okabe, to become its advertising character. Now known as "Sony Boy", the character first appeared in a cartoon ad holding a TR-6 to his ear, but went on to represent the company in ads for a variety of products well into the mid-sixties. The following year, 1957, Tokyo Telecommunications Engineering came out with the TR-63 model, then the smallest (112 × 71 × 32 mm) transistor radio in commercial production. It was a worldwide commercial success.
Personal Development
The development and vitality of Sony's employees drives dynamic growth for Sony. Sony recognizes that the growth of the people who support it is its most important management asset.
Sony strives to further enhance motivation and encourage personal growth through on-the-job learning, as well as access to a variety of programs tailored to different regional needs, including education for next-generation business leaders and engineers, management skill improvement training, and training aimed at enhancing the abilities and skills of individual employees. In an effort to enhance personnel development and realize next-generation business leaders and engineers in particular, Sony has established a Human Resources Development Department in its head office to promote cross-business initiatives. The department is charged with planning, developing and implementing training programs.
As a company that does business in a variety of countries and regions around the world, Sony recognizes the importance of cultivating talented employees with leadership potential, as well as an international outlook and appreciation for diverse cultures and working environments. In fiscal year 2008, Sony appointed 13 global talent directors from among its regional human resources managers. Global talent directors are charged with identifying promising individuals in all businesses and regions and developing them into future business leaders
Theoretical Review
Approaches to staffing
The IHRM literature uses four terms to describe Multinational Enterprise to managing and staffing their subsidiaries, consist of ethnocentric, polycentric and geocentric as a primary attitude and the fourth attitude is regiocentric. But in this assignment we only use the ethnocentric and polycentric attitude.
Ethnocentric
Few foreign subsidiaries have any autonomy and strategic decisions are made at headquarters. Key positions in domestic and foreign operation are held by headquarters’ personnel. Subsidiaries are managed by staff from the home country (PCNs).
Polycentric
The MNE treats each subsidiary as a distinct national entity with some decision making autonomy. Subsidiaries are usually managed by local nationals (HCNs), who are seldom promoted to position at head quarters, and PCNs are rarely transferred to foreign subsidiary operation.
The main advantages of polycentric policy are:
International assignment
Given the difficulties surrounding international assignment, it is reasonable to question why multinationals persists in using expatriates. Certainly, there are ebbs and flows associated with the number of staff moved internationally. Frequently, prediction are made that expatriates will become like dinosaurs as firm implement localization strategies, replacing expatriates with HCNs as a way of containing employment cost.
The international management and IHRM literature has consistently identified three key reasons for transferring staff through the use of various forms of international assignment:
Position filling
The organization has a need and depending on the type of position and level involved will either employ someone locally or transfer a suitable candidate. The most common reason are to fill a skill gap, followed by the launch of a new endeavor, and technology transfer.
Management development
Staff can be moved on the parts of the organization for training and development purposes, and to assist in development of common corporate values. For this reason, we see headquarter staff transferred to subsidiary operation, or subsidiary staff transferring into the parent operations or to other subsidiaries operations.
Organization development
Here strategic objectives of the operation come into play: the need for control, the transfer of knowledge, competences, procedures and practice into location, ant to exploit global market opportunities.
Analysis of IHRM at SONY Corp
Different countries take different paths
Sony Corporation is a famous multinational enterprise. It was established in1946 and its headquarters is in Japan. SONY has its IHRM policies to managing their employees and achieve successful. Because it consider the diversity in different region. This is showed by how this company develop their employee ability by differentiate the method of training based on the region. And In various locations in Europe, where applicable, Sony has established Works Council where labor-related negotiations are conducted in line with legislation and labor practices. This provides the forum for representative of management and employees from each EU member country to meet and discuss issues. But this system just implement in Europe. Sony provides education and training to develop the skills of employees working in different countries and areas of the business. But the training systems are different in different region. Such as SONY established the SONY University in New York and Tokyo. Provide on-line education and training programs in Europe. Employees at Sony Electronics Inc. (SEL) can benefit from programs offered at the Learning Center in USA.
Sustaining international business process
The change from ethnocentric to polycentric In order to maintain the position during the global recession, Sony decides to swap the expatriate employee with the local talent in host country. Sony decides to change the policy that put the Japanese staff in key position to manage the subsidiaries (ethnocentric) becoming hire local talented staff to fill that position (Polycentric). This is one of Sony strategy to overcome the global recession.
They do this policy in India. The company is betting its bucks on local talent as it looks to replace 20 expatriates who occupy top positions in the company. This is part of the company's strategy to nurture local leaders to hold the reins of the company, going ahead.
This strategy successfully cut the cost of the employee because their hire the local people that less expensive rather than sent the Japanese staff as an expatriate. Also by hire employee from host country, it means the company reducing the barriers of adjustment problem that usually faced by the expatriate staff. Think global, hire local. This is precisely Japanese Sony's strategy to crack the market.
International assignment
Management development
Sony organizes various training programs for employees of all levels, from new graduates to senior executives, suitable to each region and business. In Japan, the Sony Group offers more than 300 training programs, such as technological training and business training that use various approaches, including group training sessions, e-learning and correspondence courses, depending on objectives. Sony is also enhancing these training programs by inviting outside experts in various fields to impart knowledge about cutting- edge technology.
In addition to classroom-based training programs such as these, Sony Group companies in Japan place a high priority on on-the-job training, or the acquisition of knowledge and skills while working. As an example, Sony Corporation assigns an experienced young employee in the same workplace to tutor a new recruit for his or her first year on the job, providing instruction in basic workplace routine and work attitudes, as well as to offer advice on how to address specific tasks. This initiative also adds to the experience and contributes to the growth of young employees who serve as tutors.
Conclusion
International human resource management is possible even the culture and national is variation. The IHRM policies in the organization should differentiate and integrate each unit. And according to the local culture, law, policy and social etc. make appropriate change to the different subsidiary company. SONY is an example to explain it.
They use polycentric policy in order to maintain their position to compete with other company. By using this policy, Sony reduce the high cost of expatriate compensation packages, cultural differences and inability to adapt in a few cases to the increasing availability of Indians returning to work in the country.
Sony corp. also considers their employee performance by applying many training program, and of course the training program are different in every region.
References
Dowling. Peter. J, Welch. Denice. E. 2004. International Human Resources Management: Managing People in a Multinational Context 4th edition. Queensland. Thomson Learning.
http://www.scribd.com/doc/7379957/International-Human-Resource-Management-is-Not-Possible-Because-of-National-and-Cultural-Variation
http://en.wikipedia.org/wiki/Sony_Corp
http://www.sony.net/SonyInfo/csr/employees/human/index.html
http://www.sony.net/SonyInfo/csr/employees/diversity/index.html
http://www.dnaindia.com/money/report_sony-to-swap-expatriate-honchos-with-local-talent_1285419
Sony Corporation is the electronics business unit and the parent company of the Sony Group, which is engaged in business through its five operating segments—electronics, games, entertainment (motion pictures and music), financial services and other. These make Sony one of the most comprehensive entertainment companies in the world. Sony's principal business operations include Sony Corporation (Sony Electronics in the U.S.), Sony Pictures Entertainment, Sony Computer Entertainment, Sony Music Entertainment, Sony Ericsson, and Sony Financial. As a semiconductor maker, Sony is among the Worldwide Top 20 Semiconductor Sales Leaders. The company's current slogan is Make.Believe.
History
In late 1945, after World War II, Masaru Ibuka started a radio repair shop in a bomb-damaged department store building in Nihonbashi of Tokyo. The next year, he was joined by his colleague Akio Morita and they founded a company called Tokyo Tsushin Kogyo K.K., which translates in English to Tokyo Telecommunications Engineering Corporation. The company built Japan's first tape recorder called the Type-G.
In the early 1950s, Ibuka traveled in the United States and heard about Bell Labs' invention of the transistor. He convinced Bell to license the transistor technology to his Japanese company. While most American companies were researching the transistor for its military applications, Ibuka and Morita looked to apply it to communications. Although the American companies Regency and Texas Instruments built the first transistor radios, it was Ibuka's company that made them commercially successful for the first time.
In August 1955, Tokyo Telecommunications Engineering released the Sony TR-55, Japan's first commercially produced transistor radio. They followed up in December of the same year by releasing the Sony TR-72, a product that won favor both within Japan and in export markets, including Canada, Australia, the Netherlands and Germany. Featuring six transistors, push-pull output and greatly improved sound quality, the TR-72 continued to be a popular seller into the early sixties.
In May 1956, the company released the TR-6, which featured an innovative slim design and sound quality capable of rivaling portable tube radios. It was for the TR-6 that Sony first contracted "Atchan", a cartoon character created by Fuyuhiko Okabe, to become its advertising character. Now known as "Sony Boy", the character first appeared in a cartoon ad holding a TR-6 to his ear, but went on to represent the company in ads for a variety of products well into the mid-sixties. The following year, 1957, Tokyo Telecommunications Engineering came out with the TR-63 model, then the smallest (112 × 71 × 32 mm) transistor radio in commercial production. It was a worldwide commercial success.
Personal Development
The development and vitality of Sony's employees drives dynamic growth for Sony. Sony recognizes that the growth of the people who support it is its most important management asset.
Sony strives to further enhance motivation and encourage personal growth through on-the-job learning, as well as access to a variety of programs tailored to different regional needs, including education for next-generation business leaders and engineers, management skill improvement training, and training aimed at enhancing the abilities and skills of individual employees. In an effort to enhance personnel development and realize next-generation business leaders and engineers in particular, Sony has established a Human Resources Development Department in its head office to promote cross-business initiatives. The department is charged with planning, developing and implementing training programs.
As a company that does business in a variety of countries and regions around the world, Sony recognizes the importance of cultivating talented employees with leadership potential, as well as an international outlook and appreciation for diverse cultures and working environments. In fiscal year 2008, Sony appointed 13 global talent directors from among its regional human resources managers. Global talent directors are charged with identifying promising individuals in all businesses and regions and developing them into future business leaders
Theoretical Review
Approaches to staffing
The IHRM literature uses four terms to describe Multinational Enterprise to managing and staffing their subsidiaries, consist of ethnocentric, polycentric and geocentric as a primary attitude and the fourth attitude is regiocentric. But in this assignment we only use the ethnocentric and polycentric attitude.
Ethnocentric
Few foreign subsidiaries have any autonomy and strategic decisions are made at headquarters. Key positions in domestic and foreign operation are held by headquarters’ personnel. Subsidiaries are managed by staff from the home country (PCNs).
Polycentric
The MNE treats each subsidiary as a distinct national entity with some decision making autonomy. Subsidiaries are usually managed by local nationals (HCNs), who are seldom promoted to position at head quarters, and PCNs are rarely transferred to foreign subsidiary operation.
The main advantages of polycentric policy are:
- Employing HCNs eliminate language barriers, avoid the adjustment problems.
- Employment of HCNs allows a multinational company to take a lower profile in sensitive political situations.
- Employement of HCNs is less expensive, even if a premium is paid to attract high-quality applicants.
- This approach avoids the turnover of key position.
International assignment
Given the difficulties surrounding international assignment, it is reasonable to question why multinationals persists in using expatriates. Certainly, there are ebbs and flows associated with the number of staff moved internationally. Frequently, prediction are made that expatriates will become like dinosaurs as firm implement localization strategies, replacing expatriates with HCNs as a way of containing employment cost.
The international management and IHRM literature has consistently identified three key reasons for transferring staff through the use of various forms of international assignment:
Position filling
The organization has a need and depending on the type of position and level involved will either employ someone locally or transfer a suitable candidate. The most common reason are to fill a skill gap, followed by the launch of a new endeavor, and technology transfer.
Management development
Staff can be moved on the parts of the organization for training and development purposes, and to assist in development of common corporate values. For this reason, we see headquarter staff transferred to subsidiary operation, or subsidiary staff transferring into the parent operations or to other subsidiaries operations.
Organization development
Here strategic objectives of the operation come into play: the need for control, the transfer of knowledge, competences, procedures and practice into location, ant to exploit global market opportunities.
Analysis of IHRM at SONY Corp
Different countries take different paths
Sony Corporation is a famous multinational enterprise. It was established in1946 and its headquarters is in Japan. SONY has its IHRM policies to managing their employees and achieve successful. Because it consider the diversity in different region. This is showed by how this company develop their employee ability by differentiate the method of training based on the region. And In various locations in Europe, where applicable, Sony has established Works Council where labor-related negotiations are conducted in line with legislation and labor practices. This provides the forum for representative of management and employees from each EU member country to meet and discuss issues. But this system just implement in Europe. Sony provides education and training to develop the skills of employees working in different countries and areas of the business. But the training systems are different in different region. Such as SONY established the SONY University in New York and Tokyo. Provide on-line education and training programs in Europe. Employees at Sony Electronics Inc. (SEL) can benefit from programs offered at the Learning Center in USA.
Sustaining international business process
The change from ethnocentric to polycentric In order to maintain the position during the global recession, Sony decides to swap the expatriate employee with the local talent in host country. Sony decides to change the policy that put the Japanese staff in key position to manage the subsidiaries (ethnocentric) becoming hire local talented staff to fill that position (Polycentric). This is one of Sony strategy to overcome the global recession.
They do this policy in India. The company is betting its bucks on local talent as it looks to replace 20 expatriates who occupy top positions in the company. This is part of the company's strategy to nurture local leaders to hold the reins of the company, going ahead.
This strategy successfully cut the cost of the employee because their hire the local people that less expensive rather than sent the Japanese staff as an expatriate. Also by hire employee from host country, it means the company reducing the barriers of adjustment problem that usually faced by the expatriate staff. Think global, hire local. This is precisely Japanese Sony's strategy to crack the market.
International assignment
Management development
Sony organizes various training programs for employees of all levels, from new graduates to senior executives, suitable to each region and business. In Japan, the Sony Group offers more than 300 training programs, such as technological training and business training that use various approaches, including group training sessions, e-learning and correspondence courses, depending on objectives. Sony is also enhancing these training programs by inviting outside experts in various fields to impart knowledge about cutting- edge technology.
In addition to classroom-based training programs such as these, Sony Group companies in Japan place a high priority on on-the-job training, or the acquisition of knowledge and skills while working. As an example, Sony Corporation assigns an experienced young employee in the same workplace to tutor a new recruit for his or her first year on the job, providing instruction in basic workplace routine and work attitudes, as well as to offer advice on how to address specific tasks. This initiative also adds to the experience and contributes to the growth of young employees who serve as tutors.
Conclusion
International human resource management is possible even the culture and national is variation. The IHRM policies in the organization should differentiate and integrate each unit. And according to the local culture, law, policy and social etc. make appropriate change to the different subsidiary company. SONY is an example to explain it.
They use polycentric policy in order to maintain their position to compete with other company. By using this policy, Sony reduce the high cost of expatriate compensation packages, cultural differences and inability to adapt in a few cases to the increasing availability of Indians returning to work in the country.
Sony corp. also considers their employee performance by applying many training program, and of course the training program are different in every region.
References
Dowling. Peter. J, Welch. Denice. E. 2004. International Human Resources Management: Managing People in a Multinational Context 4th edition. Queensland. Thomson Learning.
http://www.scribd.com/doc/7379957/International-Human-Resource-Management-is-Not-Possible-Because-of-National-and-Cultural-Variation
http://en.wikipedia.org/wiki/Sony_Corp
http://www.sony.net/SonyInfo/csr/employees/human/index.html
http://www.sony.net/SonyInfo/csr/employees/diversity/index.html
http://www.dnaindia.com/money/report_sony-to-swap-expatriate-honchos-with-local-talent_1285419
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