PROJECT – COMPANY ANALYSIS

NEXPERIA MALAYSIA SDN. BHD.

ORGANISATIO
NAL
BEHAVIOUR
BOB 7034
Mohammad Faizal Abdullah
1221404715
Table of Content

1. Background of Nexperia
2. Nexperia’s Current Practices Related to Motivation Theories
3. The Challenges / Issues Faced by Nexperia Related to Motivation of Their
Employees and Its Implication
4. How Nexperia Overcome the Challenges / Issues
5. Recommendations to Nexperia
Background of
Nexperia
Headquartered in the Netherlands, Nexperia is a
semiconductor company with a global presence
and a rich European history. Nexperia was the
former Standard Products division of NXP
Semiconductors, which was divested from Philips
Semiconductors in 2006. Nexperia has over
15,000 employees across Europe, Asia, and the
United States.
Products and Key Applications
Products Applications

Bipolar transistors

ESD protection, TVS, filtering and

signal conditioning

Insulated Gate Bipolar Transistors

(IGBT)

Diodes

MOSFETs

Analog & Logic Ics

GaN FETs
Nexperia – Main
Locations
Nexperia Malaysia
Sdn. Bhd. (ATSN)
• 1992: Philips opened the Assembly & Test
Seremban (ATSN) as part of a joint venture with
Motorola
• 2006: NXP established as a spin-off from Philips
• 2017: Nexperia born from NXP spin-off
• ATSN product portfolio includes diodes, bipolar
transistors, ESD protection devices, MOSFETs,
GaN FETs and analog & logic ICs that meet the
stringent standards of the Automotive industry
• Employee : ~2900 direct labour (DL), ~300
indirect labour (IDL)
Nexperia’s Current Practices Related to Motivation Theories
Maslow’s Hierarchy of Needs
Nexperia uses Maslow’s Hierarchy of Needs Theory to motivate its employees by providing the benefits below :

• Mentoring & Coaching Award

• Internal & external training • Business Improvement Competition (BIC)
• Contractual Bonus – 1.0 month of basic • Root Cause Analysis (RCA) Project
salary • Project Recognition
• GM Recognition Award • Internal Trainers Recognition
• Perfect attendance award (IDL)
• Long Service Award – 5/10/15/20/25/30 • Flexi working hours for IDL 9 hours/day
years
from between 7:30 am to 6:00 pm
• New Employee Confirmation
• Communications Incentive (IDL)
• Birthday Award
• Sports events – Sports Carnival,
Badminton Tournament, Fitness
Challenge
• Insurance – Employee & family (spouse • Recreational events – Women’s Day, All
& 5 children <18 YO) Together Now Nexperia, Car Hunt,
• Dental / Vision / Blood Screening Festival Giveaway
• Travel Allowance (IDL) & Travel Subsidy
(DL)
• Motor Vehicle Hire Purchase Interest • Hostel for foreign worker
Subsidy – 70% of the interest incurred • Food subsidy
per annum.
• Shift allowance
Goal Setting Theory

• Nexperia also use Goal Setting Theory for their employees’ performance
management
• For IDL – Goal setting will be set in Jan. The Mid Year Review is to be
done in Jul, and the Final Evaluation is in Dec
• For DL – performance will be monitored monthly based on the KPI
setting
• Results of the performance management will determine the annual
incentive for the employee in terms of bonuses, salary increments and
promotions.
Herzberg’s Two Nexperia also implements Herzberg’s Two Factor Theory in
their organization.
Factor Theory

Motivators Hygiene Factors

• Rewards and Recognition as listed previously • Induction Program for new joiner
• Employee Performance Improvement Program –regularly reviews a • Clear Company Policy (e.g working hours, code of conduct,
low performer’s performance to encourage and motivate the quiet disciplinary action, etc)
performer to improve their level of performance to meet the • Comfortable working conditions
goal/standard established for the job. • Competitive salary
• Technician To Engineer Program – to upgrade potential Technician • Dress code – comfort of the employees
towards an Engineer career path.
• Operator Technical Ladder – provide opportunity to operators for
career progression to the Technician path
 Challenges:

Challenges & Issues 1. Mixed race and nationality: Dealing with a diverse workforce from different countries and
cultures challenges communication, understanding, and harmonising work practices. It requires

Faced by Nexperia
additional efforts to promote inclusivity and ensure effective collaboration among employees.
2. Location disadvantages: Being further away from the Klang Valley makes attracting local talent
difficult. The lack of local workforce participation resulted in a smaller pool of potential
employees, requiring additional efforts to recruit and retain skilled workers.
3. Strict working environment and policies: The strict working environment, such as the clean
room area restrictions and long working hours, pose challenges to employee satisfaction and
well-being. These conditions affect morale and productivity, requiring management to find ways
to address employee concerns and create a healthier work environment.
4. Cost challenges: The slow market demand has put pressure on the company's finances, requiring
cost-cutting measures in various aspects—this impacts employee benefits, training programs,
and resources available for recruitment and retention efforts.
Issues:
5. High turnover, especially for DL: The high turnover rate indicates issues with employee
satisfaction, engagement, or dissatisfaction with the working conditions.
6. Long time to fill up the vacancy for IDL: It takes a considerable amount of time to fill vacant
positions and can strain the existing workforce and lead to increased workload and burnout.
7. High pressure in a fast-paced environment: The fast-paced nature of the work results in high-
pressure situations for employees.
How Nexperia Overcome the Challenges /
Issues
Addressing diversity: Nexperia values diversity and takes steps to promote inclusivity and effective collaboration among employees
from different backgrounds. This includes diversity training programs, cultural exchange initiatives, and open communication
channels to foster understanding and respect.

Talent attraction strategies: To overcome the challenge of attracting local talent, Nexperia Malaysia has implemented targeted
recruitment strategies, such as partnering with local educational institutions, participating in job fairs, and offering competitive
compensation packages and career advancement opportunities to attract skilled workers.

Employee well-being initiatives: Nexperia recognizes the need to address strict working environment challenges and employee
satisfaction. Efforts include providing regular breaks during long working hours, improving work conditions in the clean room area,
and implementing employee well-being programs, such as stress management initiatives and regular health check-up.

Cost optimisation measures: To mitigate the impact of slow market demand, Nexperia Malaysia may have implemented cost
optimization measures. This involve reviewing expenses, identifying areas for cost-saving, and optimizing resource allocation while
still ensuring employees have access to necessary tools and resources to perform their tasks effectively.

Employee retention and development: To reduce the high turnover, Nexperia Malaysia addressed this issue through retention
strategies and talent development programs. Nexperia Malaysia may focus on enhancing employee engagement, providing career
development opportunities, and offering related benefits and rewards.
Recommendations to Nexperia

• It is crucial to identify the underlying causes and taking steps to improve employee retention through
measures like better work-life balance, career development opportunities, and addressing concerns
related to the working environment is crucial.
• The recruitment process may need to be reviewed and streamlined to attract suitable candidates more
efficiently.
• It is crucial to provide adequate support, resources, and training to help employees cope with the
demands of their roles. Implementing stress management programs or strategies can also be beneficial.
• Always review the market salary and benefits in the same industry and others, like the gig industry and
food & beverages business, which provide more flexibility with higher benefits.
• Nexperia Malaysia can evaluate and implement the Designing Motivating Jobs theory to increase
motivation and satisfaction at work by encouraging autonomy and empowerment, enhancing
communication and transparency and promoting work-life balance like job rotations.
Thank you!