Report on MPMS implementation at Seoul plant
The task of the present report on the operations of Motoco in Seoul is to assess the implementations of the Motoco Performance Management System (MPMS) system at the local plant, considering the situation that the company is unwilling to shift to locally adopted approaches. MPMS implies a performance based pay system, with the strong role of group performance ratio impacting the work of individuals. To achieve that, it is necessary to assess benefits and risks arising from this action, consider the local specifications, including the solid potency of the unions, and elaborate certain strategic options which could be selected. These options have to take into consideration ethical issues from the point of various stakeholders, and one of them being the most preferable, should be recommended for implementation.
Benefits and potential risks of implementing MPMS
To assess the MPMS implementation at the plant, it is necessary to consider both likely benefits and risks which could arise. It has to be assessed in the context of strong opposition by the Korea Auto Workers Union (KAWU) towards changing the management system, which is very dangerous considering their profound experience in countering such issues. It is especially problematic due to potential involvement of IndustriALL, an international union of manufacturing workers.The visible positive outcomes from implementing MPMS in the plant lie in motivating the workers to achieve better results. It is considered to be a very powerful motivator, since it directly links efforts with the result. The instrumental value of money for every employee is high. The surveys where people are asked to rank money as the motivation it usually takes a high position, and providing people with the rewards for their excellence also increases their connection with the company (Rynes et al., 2005: 595). Such policy would stimulate not only the high-performers to keep their pace, yet the low-performers to reach their level, i.e. is likely to generate an atmosphere of healthy competition at the enterprise. In its turn, the competition will increase the productivity, which will be a stimulus to open new plants in Korea and enter cooperation with local automobile companies.In addition, spreading MPMS towards the plan would be a fairer approach, if we speak about other workers. Treating all Motoco employees equally, independent of the country where they operate, is a just approach, and instead failure to comply with such policy could generate misunderstanding among the employees in another countries.
At the same time, the potential risks of implementing MPMS despite remain high. One of the root causes lies in the form of acquisition of the plant. Since it was a “brownfield” operation, the newly imposed system is going to enter into conflict with the previously existing. The workers used to be managed in a certain way, and entering by new HRs will not be encountered with the positive remarks. In this case, entering with a “greenfield” investment could have prevented better option; however, it is possible that the unwillingness to shift performance management system is …
