Cypress Semiconductor: A Federation Harvard Case Solution & Analysis

Cypress Semiconductor: A Federation Case Solution


Cypress Semiconductor was established in 1982 by T.J. Rodgers. It is a small player in the industry that has appeared to the big giants in the industry like Samsung in the Semiconductor Industry. Cypress Semiconductor is competing with the company that is 40 times larger in size. However, Cypress Semiconductor has progressed with the revenue of $995 million,which rose by 24 percent in the profit margin by 2011.

The debts of the company have been minimized from previous years. Moreover, efforts of cost reduction by the company have developed profits before taxes of approximately 23 percent and revenues raised from $884 million to $995 million over past years.

Problem Identification

Rodgers has to meet the challenges of competing with larger businesses in the industry through development and execution of the plans. It has also developed core values and hiring policies in order to meet the demand of the market accurately with the help of developed organizational culture. Furthermore, the enterprise has developed technological innovations with the streamline generation. However, it still needs to develop the workforce in order to advance the technology of the organization.

Model of Cypress

Cypress Semiconductor has carried out its operations with the management of best culture in the organization. There are three major ways with which Cypress operates. First principle of the Cypress deals with the effective recruitment of the people, their hiring, and retaining them in the organization. Second principle involves honesty and transparency in the culture of the organization. Employees of Cypress know very well that the management does not allow any bureaucratic politics in the environment and that any such practice results in termination. The third principle of Cypress belongs to the second one,which includes involvement of the employees for the focus of innovations in the organization’s product development, its manufacturing and the development of plan to implement it.

Organizational Culture

Human Resource Management at Cypress

Cypress Semiconductor has processed strategies that are suitable to retain its employees. The procedure of selecting employees is however, lengthy and entails four interviews of the candidates. It is beneficial for the company to select employees after conducting different levels of tests. However, a stress interview is also arranged in order to identify the capability of a candidate to work in a pressure situation. Furthermore, Cypress also encourages the efforts of the employees.For the purpose of appreciation, performance of the employees are judged through the weight age average on the software. This enables company to get the accuracy in efforts an employee places for the organization. Long software the department heads and board of directors also remain involved in the process of annual appraisal. The appraisal thus, motivates employees to work hard for the Cypress. The compensation and equal practices with employees lead the employees toward organizational commitment and they are easily retained by the Cypress Semiconductor.

Information System of Cypress

According to the Rodgers,the growth of the company is obvious if and when the organization succeeds. With the growth of company, the work has increased and in order to accomplish more tasks, there is the need of increased workforce. Hence, the management of the people and the working stored by the digital documents needs to be stored appropriately.

In addition, security of the confidential data is also essential for Cypress when the data is on digital based information system. The information system at Cypress thus, is purposely driven by allocating proper resources of technological advancement and the cost effective tools that the organization manages to adopt....................

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