This piece of work aims to critically analyse the role of HRM within MICHELIN as the organisation sets to completely shut down its Ballymena tyre factory in 2017 with the first leg of redundancy starting in May 2016. The shutting down of this plant may automatically make 860 employed staff and about 500 contractors redundant.
The announcement of the closure was made on the BBC News on the 18th of November, 2015 by the organisation stating that there is a need to reduce overcapacity by shutting down the Ballymena plant and that the organisation will concentrate in producing Michelin tyres in other plants that are more competitive.
The organisation said it arrived at this business decision because it is cost effective judging by the contextual factors that lead to this decision. These factors will be discussed further on in this report. This report will also …show more content…
Schuler and Jackson (1999) rightly said that organisations HRM activities may also cause changes in the political, legal, social environment of the organisation.
Analysing the general environment in Michelin Ballymena Factory using some parts of the SWOT and STEEPLE Models
STRENGTHS – The organisations strengths include its length of stay in the tyre manufacturing industry. Michelin has been in existence since 1905 and is known for quality tyre production.
WEAKNESS – Inability to compete favourably with new market entrants.
OPPURTUNITIES – Restructuring and modernising warehousing infrastructure and logistics, increase in its production by investing more in its Dundee and Stoke-on-Trent factories so as to transform them into a state- of- the- art factories and to confirm its place in the heart of its European operations. Diversification into other products and tyre types like aircraft tyres and power bikes
The announcement of the closure was made on the BBC News on the 18th of November, 2015 by the organisation stating that there is a need to reduce overcapacity by shutting down the Ballymena plant and that the organisation will concentrate in producing Michelin tyres in other plants that are more competitive.
The organisation said it arrived at this business decision because it is cost effective judging by the contextual factors that lead to this decision. These factors will be discussed further on in this report. This report will also …show more content…
Schuler and Jackson (1999) rightly said that organisations HRM activities may also cause changes in the political, legal, social environment of the organisation.
Analysing the general environment in Michelin Ballymena Factory using some parts of the SWOT and STEEPLE Models
STRENGTHS – The organisations strengths include its length of stay in the tyre manufacturing industry. Michelin has been in existence since 1905 and is known for quality tyre production.
WEAKNESS – Inability to compete favourably with new market entrants.
OPPURTUNITIES – Restructuring and modernising warehousing infrastructure and logistics, increase in its production by investing more in its Dundee and Stoke-on-Trent factories so as to transform them into a state- of- the- art factories and to confirm its place in the heart of its European operations. Diversification into other products and tyre types like aircraft tyres and power bikes