Foxconn’s business model implied prioritization of the leadership of the CEO while minimizing the significance of the employees’ individual goals (Eccles, Serafeim, & Cheng, 2013). Meanwhile, Foxconn’s factory is the best-working location for the potential workforce with low education or the absence of it (Eccles et al., 2013). Nonetheless, the company’s desire to minimise the overall labour costs was one of the reasons for the increased migration, horrifying living conditions in the dormitories of the workforce, and the lack of the motivation among the workers (Eccles et al., 2013). A combination of these factors was the primary cause of the occurrence of the social problems associated with illegal immigration and suicide.
The majority of the issues related to Foxconn’s business model are related to the malfunction and underestimation of HR practices. The management failed to apply the best practice principles, which imply focusing on employees’ learning while ensuring the achievement of the financial objectives (Boselie, 2010). Meanwhile, the company did not emphasise the increase in the commitment of the employees while not cultivating the drivers for the overall development of skills and continuous learning principles due to the educational distinction between workers (Smith, Oczkowski, & Sellby-Smith, 2011; Ashton & Sung, 2006).
Furthermore, the firm was not able to depict the connection between the company’s competitive edge and the competences of the employees while being a primary cause of the underestimation of the workforce as a critical asset and leading to the development of the wrongful attitudes among the workers (Lloyd, 2005). In the context of the presented case, the lack of the well-developed employees’ role in Foxconn’s business model and the underestimation of HRM practices were the critical attributes, which define company’s failure and the incapability to reach the set financial objectives while creating negative perception of the firm in the society.
References
Ashton, D., & Sung, J. (2006). How competitive strategy matters? Understanding the drivers of training, learning and performance at the firm level (Research Paper No. 66). Oxford, UK: Oxford and Warwick Universities Centre for Skills, Knowledge and Organisational Performance.
Boselie, P. (2010). Strategic human resource management: A balanced approach. Berkshire, UK: McGraw Hill Higher Education.
Eccles, R., Serafeim, G., & Cheng, B. (2013). Foxconn technology group A. Web.
Lloyd, C. (2005). Competitive strategy and skills: working out the fit in the fitness industry. Human Resource Management Journal, 15(2), 15-34.
Smith, A., Oczkowski, E., Sellby-Smith, C. (2011). To have and to hold: Modeling the drivers of employee turnover and skill retention in Australian organisations. International Journal of Human Resource Management, 22(2), 395-416.