Free hyundai motor company business plan sample

Hyundai Motor Company (HMC), a South Korean automobile manufacturer is the fifth largest automobile company that was founded in 1967, and entered the US market in 1986. In just a few decades Hyundai Motor proved to be the most reliable, trustworthy, robust and technically sound company in the automobile sector. During the initial days of setup Hyundai Motor faced financial problems that led to cut the workforce and offer two years compensation and several retirement options for the laid off labors. Hyundai executives who were charged with solving the labor problem while holding down costs and improving efficiency cited “ the Hyundai spirit” as the motivating factor that held the remaining workers together (Kirk, 50).
Hyundai has had multiple issues with the labor force since its inception, due to the creation of the union. In September 2000 when Hyundai got separated from the Hyundai group and shifted its base to Yangjae-dong, Korea, (icmrindia. org, n. d) the workers at the Ulsan plant went on strike in December 2001 demanding higher wages and bonus and 30% share of the profits from the company. The Hyundai labor union was also referred as the Korean labor movement. These issues with the labor posted many complications in Hyundai Motor Company and the management was forced to implement its strategic decisions.
Apart from the Korean government, HMC was also pressurized by the International Monetary Fund (IMF) due to the labor issues that proved to have a negative impact on the economy of the country. The decision of the company to lay off workers sparked off agitations not only in Hyundai but in other companies’ too (icmrindia. org, n. d). The Human Resource Management (HRM) in HMC required a drastic makeover to overcome the labor issues. The strategic HRM is considered to a well-planned strategy that helps the organizations achieve its goals and objectives. The company such as Hyundai must also consider the country in which it operates its business. Different countries have specific rules related to the labor unions, which must be known by the HRM. Failure to maintain good cordial relations with such unions may result in strikes and other forms of labor unrest (Regis, 165). To overcome these labor issues HMC implement the Strategic Human Resource Management system.
The future of HMC relies on the success of Strategic HRM as this strategy is used to be competitive with the competitors; the strategy focuses on the long term goals, increases productivity from the employees by focusing on business problem and deriving solutions, and makes an effective work environment. HMC frequently updates its policies, procedures and programs as a part of strategic HRM. This strategy creates motivation in the employees to be more productive and also helps the employees’ career growth and increases the business. The function of HRM is to frame the objectives and implement them in the organization.
Culture plays a vital role in framing the objectives of an organization and depending on the HMC culture the policies in HMC are outlined for the employee and the organization. Strategic HRM as stated by (Regis, 13) is the linking of strategic goals and objectives in order to improve business performance and develop organizational culture that fosters innovation and flexibility. Hyundai Motor reflects business in an ordinary form and now provides an effective work environment, and concentrates on the superior outcomes of the organization.
The challenge for the new leaders in Hyundai to cope up with the labor-management disputes has diminished with the implementation of Strategic HRM, and, the statement “ We are going to establish a new practice of labor union activities” made by the Senior Vice President Shim Young Soo during the late nineties (Kirk, 239) seems to have fallen on the ears of the current leaders of Hyundai Motor Company. Strategic HRM has proved to be an important concept in analyzing the various roles in the company and providing solutions according to the situations.

Works Cited

Hyundai Motor Co. HR Problems in Hyundai Motor Co.. icmrindia. org, n. d. Web. 14 Nov 2013.
Kirk, Donald. Korean Dynasty: Hyundai and Chung Ju Yung. M. E. Sharpe, 1994. Print.
Regis, Richard. Strategic Human Resource Management and Development. Excel Books India.
2008. Print