Molex and Human Resource Management

Touro University International

Kevin J. Hall (5332)

Bus401

International Business Module 3 Case Assignment

Professor: Dr. Anastasia Luca

Molex and Human Resource Management

As today’s global economic evolution stirs interest in worldwide expansion, the ongoing information revolution is shrinking the market place through a global business environment. This environment, a tossed salad of cultures, must be nourished by building a human resource function that is flexible, adapt, able, and focused on attracting, motivating, mobilizing, and retaining global human capital. The alignment of key human resource functions more closely with overall corporate strategy enables theses businesses to greater capitalize on people: the greatest, most important asset of a company. This is where Molex leads the way.

Molex is a plastic material developed by the late Frederick August Krehbiel. In 1938, he founded the Molex Products Company in Brookfield, Illinois to manufacture a variety of products from this material, including clock cases, flower pots, valve wheels and salt tablet dispensers. In 1940 one of Frederick’s sons, John H. Krehbiel, Sr., joined

Molex and soon recognized the importance of this material’s excellent electrical insulating properties. Later in the decade, Molex added metal stamping to its molding processes, resulting in its first connector assembly. In the 1950s, Molex rapidly penetrated the appliance market with its low cost connector terminal blocks, plugs, and receptacle connectors. Through the rest of the decade, Molex continued to increase the range of its products for a variety of consumer and capital goods applications. Molex reached a milestone in 1960, the company introduced its first nylon plug and receptacle line, marking its evolution from a manufacturer of a material called Molex to an electronics corporation named Molex. By 1967, Molex had established an international division, opening its first plant in Japan in 1970 and a plant in Ireland in 1971. Today Molex operates 50 factories in 21 countries. They kept pace with the growth of the electronics industry in the 1980s by expanding their product lines to better serve the computer and business equipment markets. The company also established itself as a preferred supplier to the automotive industry. In the 1990s, Molex again proved its

versatility by entering global growth industries such as telecommunications, industrial automation and premise networks.

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versatility by entering global growth industries such as telecommunications, industrial automation and premise networks.

Molex’s people are the key to its success in the global connector business. By fostering teamwork through active participation, creative interest and skills acquisition, employees are given the opportunity to develop their potential to the fullest. Molex is continually investing in its people through programs such as technical, supervisory and people skills training, education assistance, and other management training to help successful individuals enhance their careers. Molex has a number of attractive performance appreciation and recognition programs to recognize and to reward significant employee contribution. These include performance bonuses, stock option plan, stock purchase plan, individual and team stock awards. Outstanding Molex employees may be offered cross-function, regional and international career opportunities as well. Not only does Molex focus internally, they believe the customer is king. “There's a strong focus on service right now. The companies that are more flexible and react to quick turnarounds will be the ones to do better. The Molex culture is built on the fact that the customer is king and comes before all of us. The company honors personal commitment, hard work, a sense of urgency in everything, and respect for the world's different cultures. Here, no single individual can ascribe success to himself," said Joe King, vice chairman and chief executive of Molex Inc., Lisle, Ill. Molex’s strategic target and focus are its customers; and the worldwide operating philosophy and commitment is total customer satisfaction. Molex has implemented TQM, Total Quality Management, to ensure continuous improvement of all value-added processes of the organization. This key management approach is Molex’s avenue to long-term success with its business partners and involves all Molex employees and suppliers in improving processes, products, services, and work culture. Of equal significance is Molex’s drive to meet internationally recognized standards. In South Asia, Moxlex Singapore, Taiwan, Dongguan, Shanghai, Hong Kong, Malaysia and Thailand have all obtained ISO certification.

Molex is one of the first connector companies to implement SAP (Systems, Applications and Products) globally. This is a highly versatile integrated enterprise system designed for real-time business processing and management. This powerful information system will allow Molex to improve its business process with suppliers, distributors and customers right along the global supply chain.

Exporting the corporate culture to overseas countries has been the most difficult part of their HR plan. The Molex corporate culture is a global one, but there are aspects of it that are easier to implement in the United States than in some foreign countries. It is important to give all employees the same training and development opportunities, have the same chances to speak up when they have a suggestion or a complaint, be treated with respect, and be paid for performance. Not all these philosophies translate smoothly into foreign cultures. “When our employees are treated well, they thrive. When employees are secure, recognized for their accomplishments, encouraged to speak up, make improvements in their jobs and pursue training to develop themselves; Molex wins. Making top profits every year means we have more to invest in our plants, in our technology and in our employees,” says Malou Roth, vice president of human resources for corporate training and development of Molex Inc. To enable top managers; the company's chairman, COO, executive vice president, corporate VP of HR and VP of HR, and other senior executives of the local entity and the region, to stay focused and in tune with the companies goals, they hold an annual communication meeting. They spend a day at each location touring the factory, looking at new equipment and facilities and meeting with employees. "Our annual communications meetings ensure that our employees know they're a part of something much bigger than their local entities. They know our history, our performance, and our plans for the future. This, combined with frequent contact among our employees from entities around the world and common practices, helps maintain our culture and strengthen a global team of employees," says Roth.

It is this human resource policy that is the one, singular, most important success Molex achieved. They found a way for individuals with varying backgrounds and perspectives to work together while maximizing the energy of the individuals throughout the company’s global operations and limiting financial obstacles that result from the transportation of individuals from one place to another. Molex says it best themselves, “Molex: Bringing People & Technology Together, Worldwide."

Works Cited:

Workforce; Costa Mesa; Mar 1999; Jennifer Laabs;

Compensation & Benefits Management; Greenvale; Summer 2000; Sarah Cuthill