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DENSO DMMI manufacturing. The paper should be divided into 2 parts: 1) Link between Human Resources Strategy at Parent Level VS. Subsidiary Level According to the corporate web site web DENSO DMMI is a subsidiary of Denso Corp. , one of the world's leading automotive parts suppliers. Denso provides advanced automotive technology, systems and components to all the major automakers. An $ 18. 1 billion corporation, it operates in 30 countries and has 87, 000 employees. DMMI was established in 1984 and currently employs some 2, 000 people in Battle Creek, Michigan.
That facility's annual sales total more than $ 900 million and its main products include radiators, heaters, blowers and air conditioners. It should be noted that DENSO DMMI is already a subsidy of the DENSO corporate that was originally found in Japan, yet because of pursuit of increased returns, lucrative markets and cheap labor, the company had opened various branches world wide to benefit from the various country-specific conditions. One should remember that although DENSO allows certain autonomy of each of its individual subsidiary, it does create the master plan that needs to be followed by the branch offices. HRM strategy is set at that very level at DENSO. Analysis of the corporate-level strategy at which HRM strategy is established. I first of all need to define the DENSO DMMI's mission and goals, which appear to be satisfaction of the customer primary needs, at a profit.
The DENSO DMMI Company has large resources and exchanges competencies with its numerous departments and it certainly needs satisfied and competent people to work for it to assure the long-term success. Human Resource strategy therefore is defined at the corporate level to assure that no single branch goes against the top managements desire to encourage diversity and competitiveness. It should be noted that in addition to various US Laws that regulate equal employment opportunity for various minority groups in the USA, the top management of DENSO encourages diversity, care, understanding and tolerance at all its branches. Thus, one can say that the parent level HRM strategy is imperative and it consists of the company desire to hire extremely competent workers as well as bright university students without experience to any of its branch offices around the world.
Related diversification strategies where DENSO operates and that are created on the corporate level call for a firm to operate in several different, but related, businesses, industries, or markets at the same time. DENSO as well as its other subsidiaries uses this related diversification strategy. One also understands that this strategy requires smooth interaction of people from different backgrounds, and countries, therefore DENSO ties the success at the diversification strategy to the diversity of its personnel. Analysis of the business-level strategy and HRM. The DENSO DMMI is in many businesses of the automotive parts industry, and each of its own businesses (strategic business units) will have its own business-level strategy which are governed only by the corporate level strategy. One has to remember that probably the most efficient strategy in the long run is the cost leadership strategy.
At DENSO DMMI it is believed that cost leadership (most cost-effective producer of automotive parts) can be achieved only with increase productivity of the employees, thus making the HRM productivity issues the responsibility of each individual (subsidiary) level. The subsidiary level of DENSO deals with the hiring, firing, motivation and control issues of human resources that are considered as assets in the company rather than the overhead. DENSO DMMI tries therefore to make use of the best available workers in the area, regardless of their gender, income, skin color or age that the corporate DENSO strategy requires. Analyze functional-level strategy with HRM implications. The successful implementation of a DENSO Dmmi's strategy requires the key areas of the business-marketing, finance, logistics, operations and human resource management-to be effectively organized in order operational ise the strategy. For instance to increase work hygiene factors, DENSO is committed to maintaining workplace safety for all employees.
But creating a safe work environment also involves a conscious team effort from the workers, which by the way are called associates. DENSO deploys the modified strategy Z (by Ouchie) of the Japanese management that promotes consensus and family atmosphere at the work place. DENSO tries to motivate the employees by providing them with various fringe benefits (for them and for their families) which are not regulated by the top (corporate level) management strategy and are at a discretion of the subsidiary (business / function ) levels. The company has various quality circles as well as other work-related meetings as an HRM attempt to either improve motivation, or to increase the corporate spirit at DENSO. For instance at the subsidiary level the HR managers create various seminars about potential safety hazards and how to prevent them, focusing on safety procedures, proper use of equipment, and problem reporting.
The corporate (parent) level HR managers do to control this process in each individual subsidiary, yet pass on various guidelines and recommendations with the subsidiaries being free to choose whichever means the corporate level HRM advices. Another method that DENSO uses to motivate the employees at its DENSO DMMI branch is the family fringe benefits. Although the DENSO top level HRM recommends to use various family perks, the DENSO DMMI probably because of the labor market specifics (e. g. the majority of the full time workers are married) put that motivation strategy to a high level. Thus, the spouses of the DMMI workers receive monthly passes to gyms, or swimming pools, the whole families receive paid vacations to various parts of the world, while children also oftentimes might receive scholarship from DMMI if applying to college.
The thinking, which once again was developed at this subsidiary and is different from motivational methods in other DENSO subsidiaries is the following. Such family motivation should prompt the person to constantly improve at work. If a person fails to do well, he / she besides the motivational talks with the HR manager would be exposed to family dissatisfaction from the spouse who stops getting monthly passes to health clubs or from his children who start complaint about DMMI not paying the scholarships any longer. Such inability to hide from ones laziness is expected to make people have a positive attitude and constantly improve. 2) Diversity Management programs (2 pages) The Diversity Management Program at DENSO DMMI attempted to incorporate all the advantages that diversity provides for any given company at any given time. Hiring and managing a diverse workforce is thought to help DENSO (and all its offices worldwide) address the labor shortage in any given regions, raise productivity, and improve product quality that is correlated with the employee satisfaction levels. Diversity at DENSO DMMI also improves the quality of life in the area (Michigan) where facilities are located and increase a company's sales.
The DENSO DMMI has set up a total of eight affinity councils that deal with diversity inside the company: The African American Association, Hispanic Network, Native American Indian Council, Lesbian and Gay Resource, Women at DENSO DMMI, The Veterans Group, The Asian Network and The Silent Group. The number of these diversity councils is applied not only to the Michigan division of DENSO but also to other branches. And should there appear the need for any other diversity group, the branches can cooperate and share the diversity group information and support via phone, teleconferences and other means of communication. The Diversity Management Program at DENSO DMMI is meant to train employees and management to respond to diversity issues in the workplace to increase tolerance and efficiency. DENSO currently has two main approaches (steps) to assure the implementation of the Diversity Management program at the work place. The first step in developing a successful relationship with a diverse group of employees at DENSO DMMI is to be aware that differences in gender, life experience, language, culture, and expectations can have a great impact on workers' performance and job satisfaction.
DENSO tries to make the employees undergo sensitivity or awareness training that helps them understand the different attitudes and beliefs that women, minorities, and immigrants bring to their jobs. Awareness training at DENSO DMMI helps employees understand their company's culture and the economic value of managing diversity. It is believed at DENSO that understanding diversity can help the company elicit the highest performance levels from all employees. The second step in diversity management program at DENSO DMMI is a sensitivity training that typically calls on employees to articulate their own values and misconceptions about gender, race, and ethnicity during regular diversity seminars.
At these seminars the employees also learn why traditional management styles may not be effective with a diverse workforce and learn other approaches that will be more successful. The ultimate goal of a diversity-management program is to create a workplace in which every employee can reach his or her full potential regardless of race, gender, or culture. DENSO is a multi-cultural company and therefore tries to create the diversity personal-development program that promotes good communication, cooperation, and self-esteem among all employees regardless of their location. Managers, for example, are taught to listen and respond to individuals with sympathy; ask for help when needed; share thoughts, feelings, and rationales; and provide support without removing responsibility. Various employee-exchanges that allow DENSO employees to travel from the USA to Japan or to any European country where DENSO is represented, and vice versa, let alone the exchanges, internships and trainings for DENSO branches from different states. Bibliography: Thomas, Anderson, HRM, McGraw Hill, 2002.
Donahue, Richard, Corporate Strategy, Prentice hall, 2001. web Smith, Ryan, Management of human resources, penguin books, 2000. McIntosh, Ashley, Creating a corporate strategy, Oxford University Press, 2001, vol. 23 a
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