London School of Commerce Malta

MODULE TITLE: Managing Human Capital and Leadership: MHCL

PROGRAMME: MBA – Part Time

MODULE PERIOD: October 2021

GROUPS: 47 – 48

Name, Surname: Steve Galea

ID Number: 405099M

Lecturer setting the Assessment: Stephen Fenech

DEADLINE FOR THE ASSESSMENT TO BE COMPLETED AND SUBMITTED:

Midnight of 26th May 2022

SUBMISSION METHOD/MODE:

Online via turnitin,

Word Count: 4300

MBA Human Resources Assignment
Introduction
Methode Electronics Malta (MEM) was founded in February 1997 when Methode
Electronics acquired Merit Malta. Merit Malta was an ‘extended workbench’ of the German
Parent Company Merit which specialised in the manufacturing of high-quality hidden switches
for big car companies such as Ford, GM Opel, Mazda, Volvo and JLR (Jaguar – Land Rover).
The acquisition of MEM and other centres across the European continent has allowed Methode
to establish itself as an international leading brand for automotive solutions, fostering company
growth in continental Europe as well. Along the years MEM has attracted several businesses
from the European automotive sector, securing big contracts with Continental Automative,
Audi, Renault, PSA (Peugeot S.A.), MMC (Mitsubishi Materials Cooperation), Iveco,
Chrysler, Nissan, and Volvo trucks. Securing big contracts has resulted in record breaking
sales, facility expansion and large increase in recruitment. Recruitment efforts did not only
consist of bench workers but also of qualified engineers and financial personnel. Having a
continuously changing company dynamic has allowed MEM to set up teams of engineering
leads which were smart enough to predict the next type of facilities to be opened within MEM
to satisfy arising growing automotive market needs. An example is the smart strategic decision
of setting up a Power Solutions Group (PSG) in Europe for electric vehicle manufacturing.
This attracted companies such as Nissan, Renault, Volkswagen and Daimler for battery busbar
manufacturing. Lastly, MEM has grown further by expanding its company profile thanks to
the acquisition of new companies such as Hetronic in 2008, and Procoplast in 2017. Moreover,
to push larger sale volumes at a reduced price, Samaya Electronics Egypt (SEEL) was founded
in 2012 as a division of MEM. (Micallef, 2022)

Models and Theories Shaping Strategic Human Resources

Management
Human Resources Management has come a long way, especially in automotive
industries like MEM. Industries like MEM are large scale automotive manufacturing pioneers
of the 20th century. They were instrumental players in the creation of highly skilled, specialised
workforces. In the early 1900s, competition peaked amongst automotive companies to produce
innovative and high-quality products. (Romford, 2021) The biggest challenge on the workplace
was to find worker productivity. Back then, personnel management was unknown and workers
rights were very limited. This gave rise to the formation of workers unions and human rights
groups which were pivotal in advocating human rights on the workplace.

Personnel management had a very hard approach, as it were very authoritarian and
assumed that employees were easily replaceable company assets. (McGregor, 1957) This
approach was found to be inadequate on the workplace, as it was found that it slowed down
company growth due to a lack of employee longevity and evolved skillset in the available
workforce. In 1911, Mechanical Engineer Dr.Frederick Taylor had suggested in his book “The
Principles of Scientific Management” that by applying scientific management principles on the
workplace, the employee has to be developed to his maximum state of efficiency with adequate
training. Moreover, work must be divided and specific amongst different groups of employees,
in order to improve the overall operating efficiency of the company. Moreover, rewarding
personnel with wage increases will promote employee longevity and will also incentivise
employees to work harder and be ‘loyal’ to their manager and workplace. (Taylor, 1911)

Sociologists such as Mary Parker Follett contradicted Taylorism by introducing a

‘softer’ approach towards personnel management on the workplace. Follett’s organisational
theory states that true leaders should empower (power-with) their employees by giving
importance to group dynamism, individualistically assigning goals to employees and create a
collaborative workforce. (Sethi, 1962) A theory like Follett’s is the McClelland’s ‘Need for
achievement’ theory which states that a leader must identify the employees’ biggest motivators
on the workplace to achieve maximum employee productivity. There are three main types of
motivators on the workplace which are achievement, affiliation and power, and employers
should individually assign employees to jobs which best fits their main motivator, to achieve
self-motivation on the workplace. (McLelland, 1988) Similarly, in 1923 Edward Mayo
theorised the Hawthorne effect which stated that employees displayed an increase productivity
when given the attention and care needed from the management as it made them feel important
and pivotal in the company growth. (Bendix, 2000)

In 1943, Abraham Maslow theorised that people are motivated if their five categories
of needs (physiological needs, security needs, social needs, esteem needs, and self-
actualisation) are satisfied. The first four needs are deficiency needs and self-actualisation is
the need to grow. Individual self-growth will allow the employee to achieve maximum
potential on the workplace, driving company growth. (Maslow, 1943) People who have
developed theories like Maslow include Herzberg with the ‘motivation-hygiene’ theory.
Hygiene factors (company policy, supervision, working conditions, salary, status, job security,
personal life etc.) are things associated with the four deficiency needs in Maslow’s hierarchy
of needs, while motivation (achievement, recognition, advancement, growth, etc.) is self-
actualisation on the workplace (Pardee, 1990).

Hard and Soft approaches to HR were explained as Theory X and Theory Y by

McGregor. When using a theory Y (a soft HR approach) approach, the management thinks that
employees take pride into their job, allowing employees to participate more in decisions on the
workplace. A theory X (hard HR approach) approach tends to be more controlling on
employees and assume that employees dislike their own jobs. Theory X is very popular in large
scale production environments and non-Westernised institutions (McGregor, 1957),
(Mcgregor, 1960). Professor William Ouchi found a ‘mid-way’ to McGregor’s theory by
introducing Theory Z, a Japanese influenced style of employment which promotes stability,
high productivity and high employee satisfaction. Theory Z assumes that the employee is
willing to enter in a partnership with the employer. Theory Z emphasises that workers are
exposed to different aspects of a business, unlike in theory Y which promotes job specialisation
(Sarthak, 2019), (Ouchi, 1981)

Over the years models were developed which contributed to the development of
personnel management on the workplace. In the 1980s, Beer et al. developed the discipline of
human resources management (HRM). HRM looks at employees as capital and the only
resource in the company, which can generate value, for long term organisational success.
Having a strategic HRM (SHRM) is a cost-effective way to ensure company growth when
combined with company strategy. Moreover, it was highlighted that to ensure organisational
success, strategic HRM must be implemented all throughout the organisation.

The Harvard model is an analytical approach which studies the determinants and
consequences of HRM polices. The Harvard model recognises the importance of strategic
HRM in a company and the importance of employee needs, as much as customers and
shareholders. Using the Harvard model, managers’ choices greatly effective through the polices
they create. Using the 4C Harvard model, the manager and company policies (culture) can
affect the overall employee commitment and employee competence on the place of work, the
congruence between employee and company goals, and the overall cost effectiveness of the
company (four Cs of Harvard’s model of HRM). By aiming to strive the four Cs and other
factors, the company can take care of the overall well-being of the company and employees,
maintain environmental effectiveness (Beer M., 2015)

Figure 1: Harvard Model of HR Diagram (Beer M. S., 1984)

There are many more models that are used widely amongst HR peers which were
derived from the Harvard model. Such models include the 8-box model by Paul Boselie which
focuses on the external market context of HR, meaning how do external factors influence the
way one does HR (tailoring recruitment and hiring according to skill shortage, impact of
legislation on employee welfare policies, cultural effect on HR policy etc.). The HR value chain
by Paauwe and Richardson considers day to day HRM activities such as the cost-effectiveness
of hiring and training processes, and measure their outcomes (satisfaction, motivation,
retention and presence). This model enables an employer to take the best outcome of his own
actions, such as spending more time to hire an employee to ensure that he/she hires the right
employee for the job. (Hans, 2021)

Due to the CoVid-19 pandemic, there had to be a complete re-structuring of core HR-
activities. This is to strategically acquire the maximum amount of financial value out of the
business while still safe-guarding employees’ jobs. One such HR re-structuring includes the
use of HR information systems and implementation of digital tools on the workplace to
safeguard employee health and maximise employee productivity. EY have devised an HR
model in 2021 as a result of the pandemic which they called the ‘People Value Chain’ which
is based on three aspects: digital people team, people consultants, and virtual global business
services. (Vasey, 2021)

Figure 2: EY Model for Strategic HRM on the workplace; A Post-Pandemic HR Model

Using such theories and models, a PESTEL analysis (CIPD, 2021) can be carried out
to further determine the external factors which have shaped HR practice in organisations in the
past two years due to the CoVid-19 Pandemic:
 External Factors to Consider
Political Government Policy
Political Stability
Tax
Industry regulations
Global trade agreements and/or
restrictions
Impact of factors on industry of choice Organisational
Importance
The CoVid-19 Pandemic has had profound High
consequences on global trade due to lesser sales, and
logistical problems that resulted in a decrease in
shipments over the course of the pandemic.
There have been sharp increases in shipment prices
ever since the start of the pandemic. Moreover, a Medium
shortage of production parts from China (PCBs) due
to factory lockdowns have delayed shipments
further. These issues have slowed down sales and
reduced profit margins greatly.

The current political instability in Ukraine and the

EU has resulted in inflation of raw material prices.
This conflict has resulted in the closure of industrial
plants all around Europe which produced products Medium/High
for Russia and neighbouring countries. This has had
a major effect on sales and supply chain
management.
Economic Exchange rates The CoVid-19 pandemic has resulted in inflation of High
Globalisation prices of imports from countries outside the EU such
Econometrics as China. Moreover, it has deeply affected the
Inflation and Cost of living worldwide economic situation, resulting in dips in
Labour costs sales with a reduction in forecasted economic growth
Consumer purchasing habits trends.

Labour costs had to be reduced in order to keep the

company running with the least number of
 employees possible. Sub-contracting of employees Medium/High
has been carried out to minimise the number of
employees on the company’s payroll.
Social Consumer trends/tastes The CoVid-19 pandemic has deeply impacted social Medium
Lifestyle Factors interaction on the workplace due to remote working.
Career attributes There has been an increased usage of virtual video-
Work/life balance conferencing platforms for meetings to avoid person
Population Demographics to person contact.

Shifts in working times (Enforcing a 4-day week,

working on shift bases, flexitime) to reduce person
Low
to person contact has also impacted social interaction
on the workplace.

It is increasingly difficult to achieve a work/life

balance when working from home due to the lack of Low
change in environment between a set-up home office
and the house itself. At the worst of the pandemic,
facility closures as a precautionary measure,
worsened out the situation even more.
Technology Automation During the CoVid-19 pandemic, the importance of High
Innovation and Upgrades data tracking and data analysis had been noted.
Disruptive technologies Moreover, data tracking was improved, and data
Robotics logging systems were set up to keep a better track of
AI employee availability/productivity from home.
Robotics
Security An increased usage of AI and robotics on the
workplace has been observed, since it reduces the
High
extent of human error on the shop floor, especially
for quality checks.

Environmental Environmental Regulations Industrial Practices must always abide by local and High
imposed by country and the EU EU environmental legislation.
Sustainable resources
Corporate social responsibility Production efforts should be done to avoid the use of
Ethical sourcing
Procurement
Supply Chain Management
Future Pandemics
Legal Employments Laws
Local Labour laws
Common Law
Health and Safety Regulations
Increased security on the place of work for the
protection of company’s intellectual property which
High
include patents, drawings and designs, customer
contracts.
toxic substances and increase the amount of recycled
High
material used in production parts. Moreover, the
reusage of plastic re-grind is an effective way to not
waste plastic.
Corporate should always do its best to reduce the High
carbon footprint in the industry when negotiating
deals with customers in order to stay in line with
environmental strategies implemented by the
company.
Contracts issued to employees must be in line with High
local legislation (HR act, employee act) and they
should keep in line guidelines set out between the
company and workers unions (GWU) in order to
ensure that worker rights are protected.
Health and safety practices should always be in kept
in check at the workplace and should follow local
High
legislation
HR Strategy at Methode Electronics Malta
MEM has continuously shaped and diversified its HR policy throughout the years since
its offices consist of Manufacturing facilities, and Sales and Engineering facilities. As a result,
company HR Policies must be drafted in such a way that they satisfy either type of employee:
shopfloor-type of employee (Manufacturing) or a staff employee (Sales and Engineering). HR
Policy implementation will vary between the two streams, yet the company always strives to
provide equal opportunities to every type of employee to scale up from their current job
position if and only if their skill set/degree of technical expertise fulfils the job requirements.
HR Policies at MEM will always strive to eliminate the glass ceiling effect from the workplace
through this initiative

The recruitment process at MEM for non-entry level jobs starts off as a departmental
in-house type of recruitment. Departmental managers are expected to identify and coach a
handful individuals using a SMART approach on leadership and management on the place of
work (a SHRM strategy). The employee with the best combination of technical and leadership
qualities will be the next contender for a promotion to a managerial position within the
section/company. This continuous employee training will ensure that there are always trained
employees available take-up vacant managerial/leadership positions within the company. This
strategically helps employees to fulfil themselves on the workplace, eliminate aspects of the
glass ceiling effect between manager and employee, and maintain a healthy psychological
contract between the employee, management and HR.

If no one is internally available to take up the required role, an open call for Job Vacancy
will be issued on the MEM web portal (an online database protected via Okta Network Security
Solutions). The advert will consist of a job title and description, responsibilities, needed skills
and qualifications and the deadline to apply. In the case that no one within the company is
available or qualified enough to take on the role, job recruitment websites such as LinkedIn)
are used by HR recruitment officers to selectively look up for ideal candidates and approach
them for an interview. At MEM, it is very uncommon to issue an advert for work unless it is
unless it is for a very rare skillset resource such as a toolmaker.

Employee selection is normally via a face-to-face interview between the HR

recruitment manager and the responsible line manager/s. Questions are usually highly technical
and require a very high level of expertise for them to be answered (As a result, interviews are
usually mixture of aptitude and attainment type of tests). Questions are then normally followed
by interest tests to further understand the social skills of the individual and their extent of
integration on the workplace. Scores of 1-5 (1: Lowest, 5: Highest) are assigned to the
interviewee and then an average score is derived, deciding if the person is fit for the job (Score
must be at least 3 or higher). From this point onwards, the employee skill set, CV, contract
agreements, personal details, health check-ups are tracked and stored using Human Resources
information systems such as Shireburn and Workday (Workday, 2021), (Shireburn, 2021)
These applications are used to track individual employee development and monitor skillset
availability on the workplace.

HR will ensure that the employee receives the necessary onboarding training upon
selection. Topics covered during training range from employee health and safety,
environmental awareness on the workplace and disciplinary behaviour workplace (including
sexual harassment policies, company fraud policies, environmental policies) are discussed. A
year-long training program is strategically issued by the line manager so that new employees
are fully coached on their job, and to ensure that employee achieves maximum work output for
their current job at MEM. Moreover, several courses on anger management, negotiation skills
time management on the workplace are offered by HR and made compulsory for workers, to
improve social interaction and work-flow efficiency on the job. Last not least, specific training
on the handling of specialised equipment is given to a select number of workers for themselves
and their team’s health and safety on the premises. Examples include health and safety courses
on the handling compressed gases. Lastly, online training using Thomson Reuters platforms
are used to give cyber-security training courses.

Line managers are expected to routinely give feedback to employees on their job
performance and criticise them when needed. Officially, HR routinely interviews employees
and asks them for feedback on their place work, wage, job satisfaction, attitude towards
company policy culture (Kaizen system, 5S, etc.) and relationships with their colleagues and
superiors on the workplace. All this data is recorded on excel files and stored on the MEM
drive, so that they are easily accessible in the need of a job promotion, wage increase and
rewarding of individual for increased performance. Shopfloor employees are represented by
the Maltese General Workers Union which together with MEM have a guideline which outlines
worker rights, health and safety on the workplace, yearly wage guidelines and guides towards
constructive employee appraisals on the workplace.
 CoVid-19 has significantly boosted the use of Human Resources Information systems
to track employee data: employee skillset, employee wages (Using Shireburn indigo), booking
leave and employee punching-in and punching out (using Work Attend mobile phone
application). HR has tried its utmost to protect the most venerable, mothers and pregnant
individuals to work from home. Due to the constant communication between shopfloor
employees and staff, it was very difficult to allow most people to work from home. due to the
To retain staff and crucial shopfloor personnel from manufacturing, a 4-day working week was
proposed to reduce staff attrition and to protect jobs. Meetings were shifted to Microsoft Teams
which nowadays became a popular convenience to hold meetings within the company and
schedule appointments for day-to-day discussions and developments on the workspace.

Thriving in a new normal

The Covid-19 Pandemic has altered the way SHRM functions within MEM. MEM HR
has spent the past two fiscal years focused on improving its human resources information
systems, and workplace digitisation. Improving such systems, has exposed ways how effective
budgeting on resource management can help in keeping the company financially afloat. HR
digitisation has allowed better tracking of employee skillsets, employee development on and
off the workplace, employee punch-in, monitoring vacation leave, hosting staff meetings using
video conferencing means and enabling the slow transition towards industry 4.0 due to a keen
interest in improving data collection methods on the workplace.

Transitioning towards industry 4.0 isn’t easy, as it involves a lot of training to staff and
shop floor employees on manufacturing data information systems and efficient way to
manipulate and process data in order to better analyse the overall efficiency of the workplace,
hence employee productivity. This type of data has allowed management to take easier
decisions on employee retention, selective employee coaching, improvement of standard
operating procedures and efficient budgeting dependant on operational needs.

Unfortunately, this data driven approach has fuelled hard HRM practices on the
workplace. Shopfloor employees are excessively driven to keep up with production demands.
Moreover, a data driven approach has made managers more stringent on expecting immediate
explanations to production downtime or reasons for decreased efficiency (reduced cycle time)
during production. This is putting shopfloor employees under excessive pressure which if not
dealt with in the right manner, could lead to catastrophic damage to employee morale on the
workplace. As a result, this attitude has resulted in an increased employee attrition over the
course of the pandemic, meaning that employees with years of experience on different fields
injection moulding, toolmaking, electrical technicians were lost as a result of this managerial
shift.

In order to reduce the number of non-essential employees on the workplace, MEM-

employed shopfloor machine operators were changed to sub-contracted shopfloor machine
operators. As a result, this move was very beneficial during the pandemic since it cut out a lot
of people from the payroll, but then created more problems in the long run due to the lack of
appropriate employee selection and a lack of workplace training which resulted an increase in
un-necessary machine downtime and an increase in the number of incidents on the workplace.
If these systems had to still be used in the long term, they could pose major un-necessary costs
on the company.

Health and Safety on the workplace was very much looked after, by providing weekly
testing to staff to safeguard the protection of employees, providing free PPEs and sanitizers on
the workplace and ensuring that there is enough desk space and social distancing present on
site. As a result, worker rights to stay home was still behind when compared to other business,
resulting in a lack of flexibility on the workplace. Meaning, that workers were still expected to
come to work regardless of the situation of the pandemic, as top management felt that worker
productivity decreased if staff were to work from home. This is another example of needless
Hard HRM on the workplace with staff.

Moreover, a lot of improvements still need to be done on human resources information

systems. Not all the data is being digitalised on a centralised system yet. HR personnel are still
saving data on a centralised company drive (MEM servers) rather than uploading everything
on already present human resources information systems such as Workday. Moreover,
recruitment and selection processes have not been altered greatly since the start of the pandemic
making it continuously difficult to reach out for new talent.

Being a true Leader and ideal Manager at Methode Electronics Malta

Running a manufacturing facility as a line manager is no easy job, especially due to the
constant pressure from superiors to keep up with production demands. Yet, this should not alter
one’s behaviour on the workplace, specifically shopfloor employees. Firstly, for effective
employee response, the line manager should always maintain a healthy psychological contract
with his/her employees. This will boost the employee’s confidence on the workplace and will
allow the employee to look at the job from a more positive outlook. Having a positive mindset
will unknowingly make the employee loyal to the job, and always strive to do better. Doing
better means, aiming to reach production goals and surpassing by taking initiative on the job.

Using a slight soft HRM approach (Theory Y) can be beneficial on the workplace and
can make things easier when it comes to integrating new concepts on the workplace such as
data management systems. Time is key, and time should be allocated for the training and
coaching of employees so as to ensure that employees are fulfilling their job without risking
their welfare and without missing any crucial steps that need to be done on the job. Such
checks/steps include produced part quality checks and 5S checks (maintaining order on the
workplace; Japanese culture [Theory Z]) on the workspace.

Hence, having employees permanently employed to the company can give room for
fast tracked continuous improvement in production outputs and the continuous technical
development of employees on the workplace. Continuous improvement allows line managers
to recruit ideal employees to grow within the company. This will help employees to develop
themselves as tomorrow’s leaders. Argyris in his book of organisational learning has
emphasised, that using such an approach on the workplace will ensure an increased employee
satisfaction in the long run.

Data systems play an important role in organisational development. This is because,

data systems have given the opportunity to line managers to analyse their daily production
output trends and see how production can improve. Analysis and interpretation data will give
room for organisational restructuring in such a way that it will adapt its SOPs accordingly to
reduce needless machine downtime. As a matter of fact, data collection should not be used as
a threat on the employee, but rather a tool for improvement. Moreover, shopfloor employees
should be coached and educated on the importance of such systems without sounding off as
rough or demanding.

The Human resources department need to try to use Human Resources Information
Systems more effectively and train all employees on how such systems are used for their own
benefit. Keeping these information systems up to date are of great benefit to the company to
keep track of the available skills of employees on the workplace. This is an essential tool for
managers, to know what skill sets and expertise are available on the workplace in order to
assign staff specifically to positions on different projects. Moreover, the department should be
more open to change management procedures and push for change management in different
departments, ensuring continuous improvement in every department and never allowing the
‘freezing’ of ongoing procedures on the workplace.

Conclusion
Human Resource Management has come a long way and it will take to come back on
its two feet, especially after going through a pandemic of this sort. The economic repercussions
are great and need time for them to be restored. As a result, the biggest challenge of human
resources throughout the pandemic was to stay grounded and keep on pushing towards the
protection and welfare of the employee on the workplace. Methode electronics Malta might be
on the right path in doing so (policy wise) yet there is still a long way to go to achieve optimal
HR performance on the workplace, especially when it comes to the implementation of Human
Resources Information Systems on the workplace.

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