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    IHRM - Case Study Seiko Instruments PDF

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    Case study: Seiko Instruments ‘The Seiko Group, established in 1937, consists of tee distinct companies Seiko Corporation, Seiko Instruments Inc (SI) and Seiko Epson Corporation. They operate independently but function as a cohesive unit inthe design, production and marketing ofthe timepieces that established the Seiko name. The company has around 70 subsidiaries werldwide with over 10,000 employees. Through its global network, Seiko Corporation marie the timepieces produced by Sil and Seiko Epson. In 1988 Seiko completed the word’ fst automated assembling system for multipurpose, small-ot production of watch movements The Scotish plant was founded in March 1990 and has 110 employees. The location was ‘hosen because it is close to European markets, has a stable skilled workforce, and other Japanese companies had a sucessful experience in Scotland. The subsidiary mainuactures thermal printers and watch components. The organisational structures constrained by British standards in some respects, i common ‘with othe Japanese companies operating inthe UK HR strategy ‘The General Manager (GM), who is Scottish, has worked on the site for over 10 years and In all those years there have been only two visits by a personnel representative from Japan, ‘The main objectives ofthe visits was for the H to survey the Japanese employees working The corporation’ stance is basically that inthe overseas countries the personnel Function should ‘operate entirely autonomously. I's falily bizate to have identical policies and procedutes a stes in 48 diverse locations as Japan, China, Thalland, Malaysia and the UK. Generally the company tres 0 tweat its employees fly well and it's left up to local personnel to follow local standarcs, “aEit wasn't for Mr X [a Japanese senior manager] you wouldn't know you worked for a lapanese com: pany. Thee isnt really nyting Japanese about i tal. say to people: you wil probably nd this, ‘company isnot like Jour typial Japanese company. “Most personnel polices of the Scottish site are made locally; the sit is given targets and a free range to achieve them the Scottish way’. The company’s policy’ isto respect local ways—they ‘ty to adapt to local management practices 100 percent within the Scottish location. People ‘management is designed locally, mainly by the General Managet. They have constructed a pol- icy manual and handbook containing mostly local prgctices. They are first writen. n drat, involvingall the managersat this stage, agreed upon, and thet formalised. Then they are placed ‘on notice boards and employees are notified. Revisions are initiated as required by legislation, for example changes in working practices. The GM has spent some time working in the US (California) with Seiko and has introduced some Californian practices into the sit, Recruitment All practices are driven from the Scottish site. In Japan they’select school leaves for operators. Initially, the Japanese Manufacturing Manager had a preference for school leavers and teenagers and wanted the Scottish site to recruit them. He was involved in the recruitment of the frst 90 employees who fulfilled this age criterion. When these 90 young recruits were assessed on, for example, how they behaved against their elders onsite, they were considered ‘unreliable and ‘unaccustomed to this kind of work’ Absenteeism was a problem at this stage He believed that ‘they had no work ethic at this age’. The Personnel Manager atthe time was the only personnel manager of a Japanese company in Livingston to say ‘Lwill not employ school leavers and ieenagers’. He thinks the policy of recruiting school leavers works in Japan because youngsters are more obedient and better educated. Overseas training ‘Watch manufacturing has been in operation for over four years. Alot of initial training was doné in Seiko's subsidiaries in Singapore and the far east; alot of overseas trainers came over, and worked with the operators for about 3 months. The on-site practices have been refined over the years. Production supervisors go over to Japan every year to learn new processes. If the Scottish site had a disastrous manufacturing problem a Japanese would come ove Recently they have had an engineering design problem in the printers section and quality people came over ftom Japan. They stayed for three days to sort things out. What fas been brought from overseas is mainly knowledge. When the watch manufac turing was set up there were no processes in existence. Twenty four employees were sent over to Japan to learn hew to operate the equipment. They came back and eventually increased the number of people in the area and developed their own systems. The senior manufacturing engineet goes to Japan for training and looking at business opportunities, and to Singapore for transfer of production lines and further training. Generally, no one goes over to Japan to train. Although things are changing—they are becoming more interested in what Scotland is doing With regard to technical processes. Scotland has taken Japanese ideas and Js now running some of thelr machines more efficiently, Training differences between Japan and Scotland In Scotland the company encourages people to develop at operator level, both in-house and in colleges and other educational establishments, and finances their further education. In Japan, because employees stay in the company a long time, they have large, established Internal training and recognised formal qualifications. They have extensive support resources, for example engineering and technical support. Rank and file employees do not go to college co university, because they are not available tg everyone at the company’s expense, but ‘somtimes managess do attend short courses in these éstablishments. However, the company vill pay up to $0 percent of the cost of out-sourced English classes if employees wish to learn the language. Team working The subsidiary management has introduced the Japanese way of teamworking. The local _managers know the Japanese practices such as total quality management and quality circles, and use them in a modified way. The management does not push Japanese quality initiatives; they are happy for thé employees to apply the tools they prefer. Also, in Japan they run qual- ity circles after working hours on a voluntary non-paid basis but the Scottish managers would rot be able to implement them hete because the operators would want to be paid overtime, In addition, the managers believe that such practices as twice dally exercises in the office, ‘customary in the Japanese sites, would not work here ‘because the company is not a school orarmy’. Consensual decision making ‘The GM's observation from working in Seiko plants in Japan Is that Japanese style consen- sual decision making offers unsatisfactory compromises. He says decisions take more time to bbe made. Also, if junior Japanese managers are involved they will not speak their mind because they feel inhibited, for cultural and traditional reasons. Inthe Scottish site employees are more frank ‘would imagine that having worked here fora number of years our boss probably prefers what he may have initially interpreted asa fairly antagonistic discourse—it's abit more stimulating and Actually mcre things are aired and moved forward.” Pay and benefits “These are all decided locally. There fs considerable competition for skilled local staff. Seiko in Livingston competes against the likes of Motorola and Sky for employees. Consequently their pay is competitive, with rewards for hard work. They also offer paternity leave, pen- sions, life assurance and sick pay. Industrial relations ‘The Scottish site is not unionised, but the Japanese sites have company-based unions. Moreover, in Scotland there ate grievance procedures in place to enable the employees to file

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