[Reward Systems and the Culture of Private Enterprise]

by

Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation represent my own unaided work, and that the dissertation has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

Table of Content

CHAPTER 1 INTRODUCTION5

SOLUTION6

CHAPTER 2: LITERATURE REVIEW8

Foxconn in transition8

Employment System reforms8

Reward system reforms10

Promotion system reforms11

HRM in present-day Foxconn12

Performance Related Reward Systems13

CHAPTER 3: METHODOLOGY15

Issues in Cross-cultural research15

Method17

Toyota's Guiding Principles and Culture18

Ford`s Culture18

Ford and Toyota - A Cross Cultural Parable19

Foxconn Case20

The Burgeoning Issue21

Rewards21

CHAPTER 4: DISCUSSION23

CHAPTER 5: CONCLUSION25

CHAPTER 6: LIMITATIONS AND DIRECTIONS FOR FUTURE RESEARCH26

REFERENCES28

Chapter 1 Introduction

Foxconn is a world leading manufacturer of electronic hardware and required a new North American assembly operation to support HP's demand for special configurated computers that could be delivered within 5 days of a customer order. This new operation would employ 1,500 people to work in a highly productive state-of-the-art manufacturing facility within 9 months. CBRE was also hired to provide state and local incentive consulting services.

Solutions

Both build to suit and existing building options were considered, and because of the above normal 900 car parking requirement, a build to suit was believed to be the only option. It was determined that the airport area was Foxconn's preferred location due to the proximity to Fed Ex and the quality of employees in that region. CBRE was able to find an existing facility that would also accommodate future growth but that building required the purchase of adjacent airport owned land along the interstate to accommodate added parking for that building option. This option was 15% more cost effective than the lowest cost build to suit option.

After extensive building renovations that included the addition of 50,000 SF of office, 900 car parking lots, and a new access road provided at the expense of county and state entities, Foxconn moved into its new facility and began installing equipment within 5 months. This existing facility provided expansion options for both building and parking. Including the cost of the new road, CBRE was able to negotiate state and local incentives totaling $8 million for the project. CBRE also secured fixed options to extend the lease term for a period of 20 years due to the extensive cost of equipment installation. Chapter 2: Literature Review

To be able to investigate which reward system is preferred most, I will first provide some background on Human Resource Management in Foxconn and reward systems over the years.

The legacy of Mao, after he died in 1976, consisted of immensely overstaffed companies, a workforce that lacked motivation, low productivity, low morale, unemployment and poverty. When Deng Xiaoping came to power in 1978, he recognized these problems and embarked on numerous experiments to improve the situation. These experiments resulted in the 'Open door' policy, which was aimed ...