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Philips Electronics Singapore Essay

Manufacturing of common everyday utilities that span from household appliances, business equipment, and industry machineries require massive labor force that may span from a few hundreds to several thousands. This type of organization would typically have a wide operational staff base as there is the need to deal with production of goods. This is followed by different management levels and the top management whose functions vary from one another. A very important aspect in the landscape of organizations, to which manufacturing is not an exemption, is motivation as it has a direct impact on the organizational and individual effectiveness.

Motivation in work, according to Muchinsky (2006), is in reference of the use of the different motivational strategies in the workplace. Furthermore, the same author, in the discussion of work motivation, included the following statement: Work motivation is a set of energetic forces that originate both within as well as beyond an individual’s being, to initiate work-related behavior, and to determine its form, direction, intensity, and duration. (Pinder as cited in Muchinsky, 2006, p. 381).

Motivation inside the workplace is said to take on different forms and strategies that are identified based on the management style, needs of the organization, characteristics of the employees, and the nature of the organization. The definition mentioned above places a wide scope that reaches all sectors and all levels in the work industry and likewise places emphasis on the fact that this is geared towards the goal of improving the productivity of the employee, which is a view espoused by the Scientific Management (Kelly-Heidenthal, 2002).

On the other hand, with the introduction of the Human Relations perspective, work motivation shared a slightly different view from that of the Scientific Management era where the focus is now placed on the employee and their individual needs (Kelly-Heidenthal, 2002). The Human Relations perspective, the forerunner of which is Elton Mayo with his Hawthorne study, places a new element which is job satisfaction as “a major determinant of productivity or performance” (Hoque, 2006, p. 20).

The component of job satisfaction, being an important aspect in productivity and performance, is a major consideration in the motivation strategies (Doran, 2003). New trends in motivation have led managers to continually seek for creative ways to motivate their subordinates according to their needs. These new trends are composed of a mix of the older theories that continually evolve to suit the emerging needs and new trends in the field today.

Background of the Organization The Organization In the year 1951, Royal Philips Electronics, which was established in Eindhoven, the Netherlands in the year 1891, decided to give birth to Philips Electronics Singapore by setting up one of their branches in the said country (“Philips in Singapore,” n. d. ). The company served as one of the “pioneer investors in Singapore and has been in the country for 56 years” and it received its status of an Operational Headquarters 38 years after its inception (“Philips in Singapore,” n. d. ).

The organization has received several awards that are indicative of their outstanding performance as recognized by different sectors. The organization received three awards from the Singaporean government namely the Distinguished Partner in Progress Award in 1992, Singapore Quality Award for its Philips Tuner Factory in 1998, and Singapore Quality Award for the Domestic Appliances and Personal Care Factory in 2000 (“Philips in Singapore,” n. d. ). Likewise, the company was able to earn the Singapore Innovation Award for its Video and Multimedia Applications division in 2006.

In the same year, the Domestic Appliances and Personal Care Factory became a finalist in the Manufacturing Excellence Award and received the Singapore Advantage Award for the said event (“Philips in Sinapore,” n. d. ). Their sterling record with regard to the field of human resources development is, likewise, recognized by the National Trades Union Congress and they were given the May Day Plaque of Commendation – Gold Award in the year 1995 (“Philips in Singapore,” n. d. ).

In consonance with the award given by the National Trades Union Congress, Philips continues to wield its way into becoming the preferred employer, according to the Ministry of Manpower (2007). The company does this by fostering an environment that leads to an organizational culture where people are oriented towards their performance, provision of incentives driven by market, and a holistic approach with their theme of “think total rewards” (Ministry of Manpower, 2007). The 4 Value Statements The said company espouses 4 values that they carry with their mission and vision.

These values are to delight the customer, deliver on commitment, develop our people, and depend on each other. As can be discerned from the values mentioned above, they are after the welfare of the stakeholders they feel accountable to and thus, adhere to a holistic approach to their endeavors. Likewise, this confirms their “think total rewards” statement where they show that they are a company that is meant to address the concerns of the different sectors that they continuously interact with.

Organizational values are considered as the “values that are shared to some extent across a firm” (Gillilan et al. , 2003, p. 6). Organizational values are at times equated to two things: a) the culture of the organization and b) the values that the top management holds (Gillilan et al. , 2003). For Philips, their values are carried by almost everyone in the company as they carry out their responsibilities and serves as their guiding principle, which extends to the organizational culture.

It should be noted that organizational culture defines how the members of the organization do things or accomplish their tasks (Muchinsky, 2006). The Activity Groups The company has four main activity groups namely the Philips Innovation Campus, the Regional Competence Centers, the Sales Organization, and the Industrial Operations and Support (“Philips in Singapore,” n. d. ). These activity centers serve as the gateway for learning, training, support, and production for the company to ensure that it goes well with its operations.

The Products It concentrates on electronic consumer products that include home entertainment system components, personal computer products, communication gadgets, household appliances, accessories, lighting, and a few professional products and services (“Philips,” n. d. ). The list of professional products and services cater to the medical sector, businesses with special needs, and lighting (“Philips,” n. d. ). The presence of the brand has enabled it to establish its reputation as a maker of electronic goods and continues to be such after more than a hundred years since it was first created, which as in 1891 (“Philips in Sinpapore,” n. . ).

The stability of the company is attributed to the fact that they have scattered their specialties into different fields and this diversity provides a stable support for its overall structure. The Challenges The company faces several challenges which stem from internal and external sources. First, there is a need to make sure that they always have their best foot forward with regard to their Human Resources policies while looking into its impact for the concerned stakeholders.

With the previously mentioned desire of the company to become the first in terms of employee preference, they always keep abreast of the trends and issues that the field is facing. Their HR department needs to identify these issues, the impact to the employees, and measures to mitigate the effects. Some of these global issues include cultural diversity and negative work behaviors that sometimes lead to disruption in the workplace. Second, the company, despite their efforts to foster a healthy and fair working environment, also has to deal with employee turnover.

According to Mathis and Jackson (2006), turnover is the “process in which employees leave an organization and have to be replaced” (p. 73). Employee turnover is inevitable to an organization as the present generation of workers, the Generation X, considers job-hopping as “essential for advancement” (Lovely et al. , 2007, p. 52). Likewise the Millenials group, the phenomenon is predicted to become ordinary for them (Lovely et al. , 2007).

Since job-hopping can not be prevented as it has become a characteristic of the organization, the need for programs and policies that enhance employee retention is greater for the organization’s HR department. With the nature of the organization where they are in need of the talents, as well as the manpower, they should be able to retain the best of the best as the competition and the need to stay updated among the current trends in the technology would mean that they have to keep the greatest minds and the most efficient and skilled workers they have.

For example, an employee working on the technical department such as an engineer who becomes their asset would be a big loss for them if he/she decides to move on to other careers and other organizations. This turnover of employees would also mean a turnover of skills, knowledge, and abilities from their organization to another. Likewise, the cost for employee turnover, according to a survey of employers, 45% of them reported that they incur a cost of more than $10,000 for every employee who leaves the company because of this phenomenon (Mathis & Jackson, 2006).

The cost for Philips Electronics Singapore would vary certainly depending on the value of the person to the organization and the amount they spent to invest in the employee’s skills and training. Likewise, the disruption of work operations and the need for the remaining workers to take on increasing volumes of work also poses certain costs for the company (Locke, 2000). The said problem of turnover is to be addressed through the assessment of employee motivation (Orlikowski, et al. , 1996).

The interlocking relationship between job motivation, job satisfaction, and employee retention is at the forefront of the HR concerns of Philips Electronics Singapore due to their nature and the competitive industry they are in. The Nature of the Electronics Industry The Singaporean economy is a very dynamic economy buzzing with life and competition stays firm for the few multinational companies who sell and produce electronic goods. There is a wide product base in the said industry of the country that includes from the smallest computer chip to automated industry machineries.

The different companies in the electronic industry of Singapore account for one third of the entire manufacturing sector of the country and utilizes 25% or a quarter of the labor force to continually produce the goods being demanded in the local and international market (“Electronics,” n. d. ). The massive output of the industry enables it to have a fair competition in catering to the needs of a greater population. They are not restricted to one sector or one locale but is rather responding to global demands that even reach outside countries and this makes creating demand easier.

Likewise, the general reach of the products has created a ready market for the producers and the only thing they have to deal with is the brand preference that the customers have with respect to a number of considerations that include quality and affordability. In addition to this, the industry also has the responsibility of taking their products to greater heights with the purpose of making life easier for their clients. Modern technologies incessantly come into existence through laborious research and development.

The electronics industry of the country relies on the new breakthroughs they meet through their research facilities for them to provide innovative solutions to different needs of the society. According to the Economic Development Board chairman Lim Siong Guan, “given the cost factors in Singapore, we’re going for capital-intensive, knowledge-intensive, innovation-intensive activities” (as cited in “Singapore – Base for Complex Manufacturing,” n. d. ). The statement of the EDB chairman and the focus on innovation emphasized by Philips Singapore runs parallel with one another.


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