In this project I have outlined different management varieties of Automobile market sectors by considering their motivational and organizational Theory of management. I have explained some interpersonal factors and also the Impact of technology on management and authority behavior.
The first part of the assignment discuss the intro of both companies. i. e. Ford and Nissan, their management action and impact of such tendencies on business performance. Than motivational theories how it changes the habit of company and last impact of technology on the performance, composition and design of the companies.
In today’s competitive market managers have to perform various functions in the organization. Their handling of different situation depends on their management styles. Within the motivational theory the most notable leadership and the professional management is aware of the lively needs dynamic for employee’s determination and give the purpose for being encouraged. Organizational theory, for an effective organization, give attention to the establishment of coordination that how management and employees by conditioning themselves can achieve the normal organizational goals
Everything is performed for some distinct motive; here we are making our assignment for a definite purpose. The conclusion and submission of this assignment can be an crucial part of Move forward Diploma in Business Management from London Essex University.
Through assignment students will familiarize with management routines and patterns role that they have to play throughout their professional opportunities The students not only acclimatize themselves to the organization environment but also figure out how to suppose responsibility, co-operation and teamwork the hallmarks of modern management and the most important we have to pass our module as well.
As for as way is concerned here we applied the management thoughts and theories of our respective companies. We applied different educational models, academics research, classroom notes, our personal experience, industry publication, means both primary and secondary research on auto industry as s well as review and analysis of it.
The Ford Electric motor Company can be an American multinational organization based in Dearborn, Michigan, a suburb of Detroit. It’s the third most significant automaker based on worldwide vehicle deal in US after General Motors and Toyota. The automaker was founded by Henry Ford and incorporated on June 16, 1903. As well as the Ford, Lincoln, and Mercury brands, Ford also is the owner of a little stake in Mazda in Japan and Aston Martin in the united kingdom. Ford’s former UK subsidiaries Jaguar and Land Rover were sold to Tata Motors of India in March 2008. In 2010 2010 Ford sold Volvo to Geely Automobile. Ford will discontinue the Mercury brand by the end of 2010.
Ford introduced methods for large-scale processing of autos and large-scale management of your industrial labor force using elaborately engineered making sequences typified by moving assemblage lines. Henry Ford’s methods came to be known across the world as Fordism by 1914, he’s also daddy of modern set up line found in mass production
Nissan is a Japanese Car Company whose trade make is Datsun. The head office buildings are in Japan. Nissan was used to be Japan’s second-Largest car company. It is an motor vehicle, financial services and engineering industry. It produced auto, out plank motors and forklift pickup trucks. About 176, 000 employees are working at Nissan. In 1986, Nissan become the first Japanese car company which establish the production place in Europe at Sunderland. It’s important to know the business’s management philosophy, beliefs, eye-sight, goals, and interpersonal environment. The culture depicts the sort of control. communication and teams dynamics within the organisatiion.
Under the new management of Alan Mulally CEO of Ford motor company enhance overall company’s performance. His management can be summed up in these details:
Learn what’s happening and exactly how things work.
Set goals based on good information.
Communicate these goals to everyone involved.
Create a process for communicating improvement and results.
Successful leadership depends on such important skills as communication, collaboration and common sense. The CEO Alan Mulally endorsed these skills in an extraordinarily high-pressure environment. He modified Ford’s culture since he became a member of Ford and has fostered cooperation among divisions and parts that used to contend with the other person for resources. He’s also modeled transparency, meeting regularly with employees and instituting a dashboard system which makes key metrics about sales and market share more obvious and specific to the organization.
Ford created a culture where telling the reality, however painful it may be, gets rewarded. Every week Ford review their Business Plan with the higher management just top gather report on how well Ford interacting with their goals and company goal.
In 2010, Ford forecast a 2010 operating income and published $2. 7 billion in net income for last year Ford recovered the benefits, after three gross annual deficits – the full-year revenue was Ford first after 2006.
More significantly, Ford gained U. S. market talk about for the first season since 1995, with new models like the revamped Taurus. Famous brands GM and Chrysler, on the other hand, reorganized with federal government aid. Ford’s income and cash from businesses have been bettering with better costs and cost savings.
Ford Motor unit Company requires all its employees to be an expert, which encourages specialty area. Thus, Ford is a functional organization. Each worker reports to a functional manager. At the same time, they understand the value of a focus on the ultimate product. Because of this, a matrix firm is created where each employee also reviews to a chief engineer who signifies the pursuits of the client. Conferences are conducted every two times to coordinate the relations between chief engineers and functional professionals. Ford’s structure also has other formal mechanisms facilitating communication among functions, such as component development teams, that are cross-functional teams that bring together product and production engineers. Through this composition, Ford strikes a balance between being highly traditional and bureaucratic while at the same time agile and innovative.
Ford culture and structure constantly emphasis on learning and constant improvement. All employees from different levels are expected to analyse the actual and standard performance and when there is any issue there, than understand the reason for all problems. A theoretical platform is made in respect with cause and result marriage, means what factors causes that problems, how this problem can be solved, when this problem will solved and how long it take to solve that problem.
Without such understanding, they consider, improvements are not likely. Their culture emphasizes rethinking of how things are done, and sayings such as “never be satisfied” and “there’s gotta be an improved way” are part with their daily life. For example, if a car comes down the assembly brand with a defect, fixing the defect is not the goal. Instead, the emphasis is on understanding the cause of the defect so that it is not repeated.
In addition to facilitating learning at the average person and team levels, they take steps to make sure that what’s learned is distributed to the rest of the organization. This is achieved by putting implied knowledge into writing. Usually management structure was vertical where string of demand and ultimate decisions created by top management.
Ford Company started the mass production with automotive tools in past due1920 with standard products, special goal machine, and specifications task and useful department of labour. The moving assemblage lines is the mark of Fordism at Ford Company.
New management of in 2006, turnaround plan that called for closing plants, trimming jobs and dropping some of its models. The said management removed hurdles, put new professionals set up and pressured feuding elements of the company to work together. In addition the new management introduced cards printed out out for every employee exhorting visitors to work together and speed up development of new products –
Ford Motor Company runs on the Positive Reinforcement Strategy i. e. the ford employees are compensated for the favorable behavior they perform in line with the wishes of the manager.
Nissan Company is very clear about its goals and goals. The management of company does not believe on traditional but have their own knowledge and experience and powerful move of information that operates through divisions of business areas. Their strategy is easy, inspire effective performance and create value for the clients. The management regards individual vision, staff performance, commit action projects and same management techniques are entrenched at every level of company.
Workforce variety is also important element, when people from different regions, cultures worked along definitely they show different thoughts but on the other way often healthy conflicts also aroused but the successful management practice settled that conflicts, ends up with operation within Nissan making the process active and immediate so diverse labor force brings alternatives and leads company towards new path.
Employees of Nissan talk about their thoughts and romance with the employees based on mutual value and trust. A fresh communication channel helps the employees to express the ideas in more effective manner. That is to somewhat the true culture of any progress company.
Management approach of company is very good, employees are cured like the property of the business, good friendly environment, and staff member participation in decision making is the proof of that company is also rehearsing the impact of different management ideas like Hawthorne studies where workers productivity tends after human behavior. There may be equal job opportunity, workforce variety, Global code of carry out within the business,
Company framework arrange people and job so that work can be carried out for the success of any business as many freelance writers pointed about the value of organization framework and its marriage with company strategy, technology, environment and culture.
Burns and Stalker (1961) concluded that if a business is to attain maximum performance than its structure must match or match the speed of change in its conditions. Handy (1990-1993) has reviewed the importance of culture in relation to organization design and structure.
Nissan Company has released to present new organizational framework to guide Nissan.
Employees and the most notable management understand the company structure and express their viewpoints easily.
Traditional car company (FORD) has traditional hierarchical organizational framework that means each employee’s role within the organization and romantic relationship of employees. Traditional company has thin spans of control most significant decision will be produced by older management. Inside the 20th hundred years, company expands bigger and they have order and control of the business due to the globalization and technology.
All employees’ authority and responsibility will be described.
Specific professionals and hierarchical environment inspire effectively.
Employees will be dedicated.
Company will be bureaucratic and respond slowly and gradually to changing customer needs.
Horizontal communication will be poor.
Usually departments make decisions so business decision will be little by little implemented.
Culture is the total of the beliefs and worth that form norms of behaviour and determine the ways things get done. There are several continuums that help determine an organization’s culture. Is the organization motivated by results and success, or relationships and people? Does the business have an internal emphasis, or an exterior focus? Is the corporation adaptive and flexible, or is it structured and steady?
Role of organizational culture plays in safety issues. It brings about innovation and tactical thinking. Authority is also important ethnicities that every company can know that management affect culture. Market leaders change or create culture. Social leadership apparently has some features in the car production companies where ethnic leaders have multiple ethnic leaders of once.
All companies’ performance shows suitable trade. They are traditional companies but they are growing business on earth.
I have chosen system theory to clarify two of the companies. It was developed in 1950’s and it was a biological system such as human being. It is most simple level and needs inputs.
Boundaries and environment
Objectivities and goals
Organization as a system
Systems theory views a business as a complicated set of dynamically intertwined and interconnected elements, including inputs, operations, outputs, responses loops, and the surroundings. Any change in a single element triggers changes in other elements.
System theory really helps to learn the company. Such as
Maslow’s hierarchy needs.
Creating doctrines of participation.
Modern including of technology.
Building shared eyesight.
System view point
The systems plan views company as a system composed of interconnected and therefore mutually based mostly – sub-systems. These sub-systems can have their own sub-sub-systems. A system can be perceived as made up of some components, functions and operations (Albrecht, 1983). Thus, the organization consists of the following three basic elements (Bakke, 1959 ):
Motivation is the most important factor which escalates the performance and productivity of the company. Company implements many motivational activities such as rewards (salary, payment, and bonus items), treating the employees very well, taking a pastime in the employee’s personal life, supplying a chance to everyone at the company, building and teaching new skills and making the task interesting.
Motivated labor force in Nissan is the greatest asset of the company; actually the performance of company displays the attitudes, values and interest of employees toward work. Company is motivating the employees but various ways both intrinsically and extrinsically. Promotion and empowerment are few samples, when people are empowered, their belongingness with company increased, bring about increased in the production.
Promotion is based on performance based not on seniority based system however in truth on performance centered as well as there exists reimbursement system for excellent performance of employees, this is good practice of corporate and business gurus of company
Research shows how exactly we can motivate employees in a company. Many motivational ideas and models could be employed to help motivate the staff at any companies. Highly encouraged people gives great results will subsequently help achieve the business desire goals. Motivating staff in the automobile creation industry is most important factor of running a business.
Abraham Maslow developed a motivation theory of human being needs in 1954. He stated that humans have some other variety of needs. First of all, humans fulfill their basic needs then make an effort to fulfill their other needs. A business should think about the needs of most its employees.
Maslow noted five basic needs and ordered them in a hierarchy from higher to lessen.
Esteem Needs Accomplishment Challenging Job
Belongingness Needs Status Job Title
Security Needs Friendship Friends in Group
Physiological Needs Stableness Pension Plan
Sustenance Basic Salary
One research study by James R. Lindner at Ohio University demonstrates factors which influence the drive of employees at a corporation. These studies are interesting; work and good pay are influencing factors on employees at work. Further influential reward systems include job enlargement, job enrichment, deals, internal and exterior stipends, economic and non economic compensation. These should all be considered as they have been shown to stimulate employees at the job. It means an employee’s behavior will change as their needs are satisfied. Based on the Maslow theory, a business should design their system to inspire its people; pay will satisfy the essential need.
By applying the Taylor methodology of medical management we can apply the abovementioned theory, effective hiring, training, and reimbursement incentives, work successes fulfilled the needs of individuals. American Ford company used this technique in assembly type of production to get more detailed production and successful usage of resources. When worker are given good working conditions, fresh air, than their basic need is satisfied, but they can’t be encouraged until provided by security need and down the road when their principal needs are fulfilled than they transfer to other needs.
In distinction with company. i. e. is also gratifying all these theory as for as matter of employees. it is fulfilling their basic need by offering attractive salary packages’, based on performance when appraisal is made employee movements to next level.
The X and Y theory originated by Douglas McGregor in 1960. Theory X suggests that professionals want to steer and control their employees. It argues that employees can’t stand work, so managers or supervisors should punish them because of this. On the other hand, relating to theory Y, employees are self encouraged, like to do their work and wish to achieve the organization’s goals.
These are some ideas to inspire people at two companies. (Nissan and Ford)
Motivating through work design
Motivating through participation
Motivating through targets
If these two companies do not motivate its employees, commonly, some problems will appear.
Bucking of the system
Challenging of policy
Recruitment and selection report of company is examined that how can it maintain and carried out the personnel. Some factors are including recruiting the followings factors;
The business growth
Filling the vacancies by resignation or termination and retirement life.
When the business analyses the communal factors, we ought to consider the followings factors. In general management behavior, Social factors also influence including the groups to that your team be longs and public status. In an organization or team, several persons interact to influence the decisions. Ford and Nissan companies should think about the interpersonal factors.
PESTEL research will clarify the interpersonal factors to make the decisions.
Sales are romantic relationship driven
Relationship management is industry demand.
Life time customers
Customers want way to the problems.
Global /multinational company.
Cultural brain set
Developing countries will vary levels.
Different levels of service.
If Ford and Nissan use the socialization (Group and team) perfectly, they’ll get pursuing possible outcomes, such as
High work motivation
Understanding of culture and identified control
High job involvement
Committed to organization
Actions will be produced to encourage moral and social action.
Be genuine in setting principles and goals regarding employee relationships
Encourage type from organization associates regarding appropriate principles and techniques for implementing the culture
Opt for a “strong” culture that induces and rewards variety and principled dissent
Provide training on adopting and employing the organization’s beliefs
Many of the influences of IT are straightforward. However they are not necessarily noticeable, nor are they trivial” (Jack port Nilles, Centre for Future Research)
IT influences on Ford and Nissan companies ‘performance and production. It offers organizational and financial benefits for companies. It is changing to business panorama. All companies ‘civilizations and business strategies use IT.
Business strategy – collapsing time and distance, enabling electronic business.
Organization Culture – motivating the free stream of information.
Organization Structures – making networking and exclusive businesses a reality
Management Procedures – providing support for sophisticated decision making techniques.
Work – drastically changing the type of professional and today managerial work.
The work environment – allowing work from home and on the move, as in telework.
With the scientific development UK car industry is one the main car industry as Ford, producing a third of its global engine necessity at two UK locations and Nissan’s Sunderland flower, which is set to be always a Western european hub for electric battery and electric vehicle development.
The blend of investment in British brands and investment in the country’s workers and vegetation by international companies also brings significant benefits to the entire breadth of the UK automotive industry
The key problem of Nissan is to generate the organization image and foundation in highly competitive environment which is presuming earthquake (EQ) as the most critical catastrophe. While ongoing innovation, customers prospects, changing mix, management of diverse workforce are fundamental issues of Ford Company
Some of the main element issues are the following.
Global creation and competition.
Consumers spending patterns
Health Attention and environmental issues.
Foreign Exchange rates
The management styles can be different in different business but these management styles should bring great success of the organizational goals. By adapting right design of management and command in an firm the facilitation of working command between various entities of the organization is possible. Thus by evaluating the entire management action and the framework of the organization for both Ford and Nissan I totally agree that Ford is preferable to Nissan in all ways. For as UK car industry can be involved, it’s very different as it identified in 1970`s because majority of British brands are actually possessed by non British isles motors band of foreign traders, on the other hand, Aston Martin, recently possessed by Ford. Governmental regulations are one the reason why of drop in the decrease of automobile industry in UK, so federal should encourage domestic production and reduce the tariff and fees.