Innovation in Human Resource Management in BYD
Human resource management in BYD is aligned with its strategy on its manufacturing process and product improvement respectively. This leads to the innovative human resource strategy for two distinguished organizations, which are labor-intensive process in the BYD’s operating system and scientific research and development center. Following are the two significant differences in the HR strategy, with the aspects including trainings, salary, welfare, benefits and so on.
* Integrate HR management model closely with the nature of manufacturing process. It mostly applies for the manufacturing workforce in the labor-intensive process in plants. In the manufacturing process, it requires huge number of workforce with basic manufacturing skills. The cost of the labors is quite low. - Salary and Welfare
As the number of workers is large and the skill sets required for them are not high, those workers usually work in the first line and get paid in low salaries. In the meanwhile, the welfare is also limited, like the implied value for housing, food and health insurance is RMB500. - Trainings
The workers have few skill trainings in the plant. All they have is basic behavior training. As development of reliable production process requires high levels of discipline of the workforce, BYD provides discipline trainings for these employees. The training is mostly with employee’s basic actions and doesn’t have direct relation with production, but it’s believed to be effective to improve quality of the product. - Results
From above we can see that BYD has a very strict cost control of the labors in plants. But also under such condition, the turnover rate in manufacturing workforce is very high, which is 10% -20%. -Improvement
Although the workforce in manufacturing units can be easily replaced and trained, it’s also necessary to reduce the attrition in the plants. So in order to solve this, BYD encourages job rotation and...
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