Management Behavior in the Car Industry Essay

In today ‘s competitory market directors have to execute assorted functions in the organisation. Their handling of different state of affairs depends on their direction manners. In the motivational theory the top leading and the executive direction understands the active demands active for employee ‘s motive and give the intent for being motivated. Organizational theory, for a successful organisation, focal point on the constitution of coordination that how direction and employees by beef uping themselves can accomplish the common organisational ends


Everything is done for some definite motivation ; here we are doing our assignment for a definite intent. The completion and entry of this assignment is an built-in portion of Advance Diploma in Business Management from London Essex College.

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Through assignment pupils will familiarise with direction patterns and behavior function that they have to play during their professional callings The pupils non merely acclimatise themselves to the corporate environment but besides learn to presume duty, co-operation and teamwork the trademarks of modern direction and the most of import we have to go through our faculty every bit good.


Equally for as attack is concerned here we applied the direction ideas and theories of our several companies. We applied different academic theoretical accounts, academic research, category room notes, our personal experience, industry publication, means both primary and secondary research on car industry as s good as reappraisal and analysis of it.



The Ford Motor Company is an American transnational corporation based in Dearborn, Michigan, a suburb of Detroit. It is the 3rd largest car manufacturer based on worldwide vehicle sale in US after General Motors and Toyota. The car manufacturer was founded by Henry Ford and incorporated on June 16, 1903. In add-on to the Ford, Lincoln, and Mercury trade names, Ford besides owns a little interest in Mazda in Japan and Aston Martin in the UK. Ford ‘s former UK subordinates Jaguar and Land Rover were sold to Tata Motors of India in March 2008. In 2010 Ford sold Volvo to Geely Automobile. Ford will stop the Mercury trade name at the terminal of 2010.

Ford introduced methods for large-scale fabrication of autos and large-scale direction of an industrial work force utilizing intricately engineered fabrication sequences typified by traveling assembly lines. Henry Ford ‘s methods came to be known around the universe as Fordism by 1914, he is besides father of modern assembly line used in mass production


Nissan is Nipponese Car Company and uses the trade grade Datsun. The caput offices are in the Ginza country of chuoku, Tokyo, Japan. Nissan used to be Japan ‘s second-Largest auto company. It is automotive, fiscal services and technology industry. It produced car, out board motors and forklift trucks.175, 766 employees are working at Nissan. In July 1986, Nissan become the first japanaese car company which set the production works in Europe at Sunderland. We want to cognize the company ‘s best on direction doctrine, values, vision, ends, and societal environment. The civilization determines the type of leading.communication and groups kineticss within the company.

Impact of Management Behavior and Organizational Culture of Ford

Ford Motor Company CEO Alan Mulally turned around the company since he joined Ford Motor Company from Boeing. His direction can be summed up in these points:

Learn what ‘s traveling on and how things work.

Set ends based on good information.

Communicate these ends to everyone involved.

Make a procedure for pass oning advancement and consequences.

Successful leading flexible joints on such important accomplishments as communicating, coaction and judgement. Alan Mulally embodied these accomplishments in an inordinately high-pressure environment. He transformed Ford ‘s civilization since geting at the house and has fostered cooperation among divisions and parts that used to vie with each other for resources. He ‘s besides modeled transparence, run intoing on a regular basis with employees and establishing a splashboard system that makes cardinal prosodies about gross revenues and market portion more seeable to the organisation.

Allan Mullally recognizes that his ain energy is catching and that positive energy is a high octane fuel. He exudes a sort of optimism that is both animating and believable – a blend of his missional belief in the program his squad has developed together, balanced by grim pragmatism about current market conditions, and a willingness to do accommodations along the manner.

Finally, Mulally has created a civilization in which stating the truth, nevertheless painful it may be, gets rewarded. Every Thursday forenoon, he presides over what he calls a “ Business Plan Review. ” The caputs of Ford ‘s four net income Centres around the universe and its 12 functional caputs gather to describe on how good they ‘re run intoing their marks and on any jobs they ‘re holding. They ‘re all in it together.

Impact on Business

On January 28, 2010, Ford forecast a 2010 pretax operating net income and posted $ 2.7 billion in net income for last twelvemonth as its CEO Alan Mulally, 64, reaped the benefits of his recovery program after three one-year losingss – the full-year net income was his first since coming from Boeing in 2006.

Possibly more significantly, Ford gained U.S. market portion for the first twelvemonth since 1995, with new theoretical accounts such as the revamped Taurus. The likes of GM and Chrysler, meanwhile, reorganized with federal assistance. Ford ‘s net income and hard currency from operations have been bettering thanks to market portion additions, better pricing and cost nest eggs.


Ford Motor Company requires all its employees to be an expert in what they do, which encourages specialisation. Thus, Ford is a functional organisation. Each employee studies to a functional director. At the same clip, they understand the importance of a focal point on the concluding merchandise. As a consequence, a matrix organisation is created where each employee besides reports to a main applied scientist who represents the involvements of the client. Meetings are conducted every two yearss to organize the dealingss between head applied scientists and functional directors. Ford ‘s construction besides has other formal mechanisms easing communicating among maps, such as faculty development squads, which are cross-functional squads that bring together merchandise and production applied scientists. Through this construction, Ford strikes a balance between being extremely traditional and bureaucratic piece at the same clip agile and advanced.

Ford civilization and construction invariably emphasis on larning and uninterrupted betterment.All employees from different degrees are expected to analyze the existent and standard public presentation and if there is any job at that place, than understand the cause of all jobs. A theoretical model is made in regard with cause and consequence relationship, means what factors causes that jobs, how this job can be solved, when this job will work out and how long it take to work out that job.

Without such apprehension, they believe, betterments are non likely. Their civilization emphasizes rethinking of how things are done, and expressions such as “ ne’er be satisfied ” and “ there ‘s got ta be a better manner ” are portion of their day-to-day life. For illustration, if a auto comes down the assembly line with a defect, repairing the defect is non the precedence. Alternatively, the accent is on understanding the cause of the defect so it is non repeated.

In add-on to easing larning at the person and squad degrees, they take stairss to do certain that what is learned is shared with the remainder of the organisation. This is achieved by seting implied cognition into composing. Traditionally direction construction was perpendicular where concatenation of bid and ultimate determinations made by top direction.

Ford Company started the mass production with automotive tools in late1920 with standard merchandises, particular purpose machine, and criterions undertaking and efficient division of labor. The traveling assembly line is the symbol of Fordism at Ford Company.

Motivation techniques at Ford Motor Company

Mulally, a tough director masked by a boylike face and gee-whiz demeanour, joined Ford in October 2006, a twelvemonth into a turnaround program that called for shutting workss, cutting occupations and dropping some of its theoretical accounts.

He removed obstructions, put new directors in topographic point and forced feuding parts of the company to work together. He had cards printed out for every employee cheering people to work together and speed up development of new merchandises – and carries one in his ain pocket. In hebdomadal direction meetings, he holds people accountable but besides greets success with hand clapping.

CEO Ford Motor Company uses a Positive Reinforcement Technique i.e. the Ford employees are rewarded for the favourable behaviour they perform harmonizing to the wants of their director.

Impact of Management Behavior and Organizational Culture of NISSAN

Nissan Company is really clear about its ends and aims. The direction of company does non believe on traditional but have their ain cognition and expertness and powerful flow of information that runs through divisions of concern countries. Their scheme is simple, inspire effectual public presentation and make value for the clients. The direction convey single vision, employee public presentation, commit action programs and same direction patterns are entrenched at every degree of company.

Workforce diverseness is besides of import component, when people from different parts, civilizations worked together decidedly they portion different ideas but on the other manner frequently healthy struggles besides aroused but the efficient direction pattern resolved that struggles, consequences in operation within Nissan doing the procedure active and direct so diverse work force brings solutions and leads company towards new way.

There is besides two manner flow of communicating ; employees can easy portion their ideas and relationship with the employees based on common regard and trust. A new communicating channel helps the employees to show the thoughts in more effectual mode. This is to somewhat the true civilization of any advancement company.

Management Approach of Nissan

Management attack of company is really good, employees are treated like the assets of the company, good friendly environment, and worker engagement in determination devising is the cogent evidence of that company is besides practising the impact of different direction theories like Hawthorne surveies where workers productivity tends upon human behaviour. There is equal employment chance, work force diverseness, Global codification of behavior within the organisation,


Company ‘s Structure

Company construction arrange people and occupation so that work can be performed for the success of any company as many authors pointed about the importance of organisation construction and its relationship with company scheme, engineering, environment and civilization.

Nathan birnbaums and Stalker ( 1961 ) concluded that if an organisation is to accomplish maximal public presentation than its construction must suit with or fit the rate of alteration in its environments. Handy ( 1990-1993 ) has discussed the importance of civilization in relation to organisation design and construction.

Organization ‘s construction of Nissan

Nissan Company has announced to present new organisational construction to steer Nissan. Nissan has alterations to its top direction and alterations are taking topographic point really shortly.

Toshiyuki Shiga-Chef Operating officer and continues to describe president and CEO.

Colin Dodge- Chief recovery officer

Hiroto Saikawa- Executive frailty president

Carols Tavaras -Executive frailty president

Andrew Palmer – Senior frailty president

Employees understand the company construction and show their sentiments easy.

Traditional auto company ( FORD ) has traditional hierarchal organisational construction that means each employee ‘s function within the organisation and relationship of employees. Traditional company has narrow spans of control most of import determination will be made by senior direction. In the twentieth century, company grows bigger and they have command and control of the organisation due to the globalisation and engineering.

Advantages of hierarchal constructions

All employees ‘ authorization and duty will be defined.

Specific directors and hierarchal environment motivate efficaciously.

Employees will be loyal.

Disadvantages of Hierarchical constructions

Company will be bureaucratic and respond easy to altering client demands.

Horizontal communicating will be hapless.

Normally sections make determinations so concern determination will be easy implemented.

Company ‘s civilization of both organisations

Culture is the amount of the beliefs and values that form norms of behavior and order the ways things get done. There are several continuums that help specify an organisation ‘s civilization. Is the organisation driven by consequences and achievement, or relationships and people? Does the organisation have an internal focal point, or an external focal point? Is the organisation adaptive and flexible, or is it structured and stable?

Role of organisational civilization dramas in safety issues. It leads to invention and strategic thought. Leadership is besides of import civilizations that every company can cognize that leading affect civilization. Leaderships change or create civilization. Cultural leading seemingly has some characteristics in the auto production companies where cultural leaders have multiple cultural leaders of the same clip.

All companies ‘ public presentation shows acceptable trade. These are traditional companies but they are turning concern in the universe.

Organizational theories in direction behavior

System theory

I have chosen system theory to explicate two of these companies. It was developed in 1950 ‘s and it was a biological system such as human being. It is most simple degree and takes inputs.

Basic Elementss of a System

Inputs Organization or Outputs

Transformation system


Boundaries and environment

Objectivities and ends

Organization as a system

Systems theory positions an organisation as a complex set of dynamically intertwined and interrelated elements, including inputs, procedures, end products, feedback cringles, and the environment. Any alteration in one component causes alterations in other elements.

System theory helps to larn the company. Such as

Maslow ‘s hierarchy demands.

Making philosophies of engagement.

Modern including of engineering.

Personal command.

Mental theoretical accounts.

Building shared vision.

Team acquisition.

Systems believing

A modern company as like Nissan should hold followerss features.

System position point

Dynamic procedure






The systems approach views organisation as a system composed of interrelated and therefore reciprocally dependent – sub-systems. These sub-systems can hold their ain sub-sub-systems. A system can be perceived as composed of some constituents, maps and procedures ( Albrecht, 1983 ) . Therefore, the organisation consists of the undermentioned three basic elements ( Bakke, 1959 ) :

Motivation in pattern at two auto companies

Motivation is the most of import factor which increases the public presentation and productiveness of a company. Company implements many motivational activities such as wagess ( salary, committee, and fillips ) , handling the employees really good, taking an involvement in the employee ‘s personal life, giving a opportunity to everyone at the company, edifice and learning new accomplishments and doing the work interesting.

Motivated work force in Nissan is the greatest plus of the company ; really the public presentation of company reflects the attitudes, beliefs and passion of employees toward work. Company is actuating the employees but different ways both per se and extrinsically. Promotion and authorization are few illustrations, when people are empowered, their belongingness with company increased, consequence in increased in the productiveness.

Promotion is based on public presentation based non on senior status based system but in fact on public presentation based every bit good as there is compensation system for first-class public presentation of employees, this is good pattern of corporate gurus of company


Research shows how we can actuate employees in a company. Many motivational theories and theoretical accounts could be employed to assist to actuate the staff at any companies. Highly motivated people will give good consequences will in bend aid to accomplish the organisation ‘s ends. Motivating staff in the auto fabrication industry is most of import portion of running a concern.

Abraham Maslow developed a motive theory of human demands in 1954. He mentioned that worlds have a different assortment of demands. First, worlds satisfy their basic demands so seek to fulfill their other demands. A company should see the demands of all its employees.

Maslow noted five basic demands and ordered them in a hierarchy from higher to take down.

Self Actualization Needs

Esteem Needs

Achievement Challenging Job

Belongingness Needs

Status Job Title

Security Needs

Friendship Friends in Group

Physiological Needs

Stability Pension Plan

Sustenance Basic Salary

Maslow Need Hierarchy

One research survey by James R. Lindner at Ohio University shows that factors which influence the motive of employees at a company. These findings are interesting ; work and good wage are act uponing factors on employees at work. Further influential wages systems include occupation expansion, occupation enrichment, publicities, internal and external stipends, pecuniary and non pecuniary compensation. These should wholly be considered as they have been shown to actuate employees at work.It means that an employee ‘s behaviour will alter as their demands are satisfied. Harmonizing to the Maslow theory, an organisation should plan their system to actuate its people ; pay will assist to fulfill the basic demand.

By using the Taylor attack of scientific direction we can use the abovementioned theory, effectual hiring, preparation, and compensation inducements, work accomplishments fulfilled the demands of workers. American Ford company used this technique in assembly line of production for more production and efficient use of resources. When worker are provided good on the job conditions, fresh air, than their basic demand is fulfilled, but they ca n’t be motivated until provided by security demand and subsequently on when their primary demands are fulfilled than they shift to other demands.

In contrast with company.i.e. is besides carry throughing the aforesaid theory every bit for as concern of employees. it is carry throughing their basic demand by offering fine-looking salary bundles ‘ , based on public presentation when assessment is made employee moves to following phase.

The X and Y theory was developed by Douglas McGregor in 1960. Theory X suggests that directors want to direct and command their employees. It argues that employees do n’t wish work, so directors or supervisors should penalize them for this. On the other manus, harmonizing to theory Y, employees are self motivated, like to make their work and wish to accomplish the organisation ‘s ends.

These are some thoughts to actuate people at two companies. ( Nissan and Ford )

Motivating through work design

Motivating through engagement

Motivating through marks

If these two companies do non actuate its employees, normally, some jobs will happen.


Wasting clip


Bucking of the system

Challenging of policy


Recruitment and choice study of company is analyzed that how can it keep and carried out the staff. Some factors are including enrolling the followerss factors ;

The concern growing

Filling the vacancies by surrender or expiration and retirement.

Internal publicity

Analysis of Social Factors

Equally for as corporate societal duties both companies playing an of import function in the society of UK. Nissan and Ford will put ?2 billion of deserving investing in production and R & A ; D of low C and electric auto across the England and Wales. The motivation of Nissan is environmental friendly and enriching people life.

When the company analyses the societal factors, we should see the followerss factors. In direction behaviour, Social factors besides influence such as the groups to which the squad be longs and societal position. In a group or squad, several individuals interact to act upon the determinations. Ford and Nissan companies should see the societal factors.

PESTEL analysis will explicate the societal factors to do the determinations.

They are:

Gross saless are relationship driven

Customer outlooks

Relationship direction is industry demand.

Life clip clients

Customers want solution to the jobs.

Global /multinational company.

Cultural head set

Developing states are different degrees.

Different degrees of service.

If Ford and Nissan implement the socialisation ( Group and squad ) really good, they will acquire following possible results, such as

Job satisfaction

Role lucidity

High work motive

Understanding of civilization and perceived control

High occupation engagement

Committed to organisation


High public presentation

Internationalized values.

Actions will be made to promote ethical and societal behaviour.

Be realistic in puting values and ends sing employee relationships

Encourage input from organisation members sing appropriate values and patterns for implementing the civilization

Opt for a “ strong ” civilization that encourages and wagess diverseness and principled dissent

Provide preparation on following and implementing the organisation ‘s values

Impact of Technology on direction behaviour and work force

Many of the impacts of Information Technology are straightforward. But they are non needfully obvious, nor are they fiddling ” ( Jack Nilles, Centre for Future Research )

IT impacts on Ford and Nissan companies ‘performance and productiveness. IT provides organisational and fiscal benefits for companies. It is altering to concern landscape. All companies ‘cultures and concern schemes use IT.

Business scheme – collapsing clip and distance, enabling electronic commercialism.

Organization Culture – promoting the free flow of information.

Organization Structures – doing networking and practical corporations a world

Management Processes – supplying support for complex determination devising procedures.

Work – dramatically altering the nature of professional and now managerial work.

The workplace – leting work from place and on the move, as in telework.

With the technological development UK auto industry is one the taking auto industry as Ford, bring forthing a 3rd of its planetary engine demand at two UK locations and Nissan ‘s Sunderland works, which is set to be a European hub for battery and electric vehicle production.

The combination of investing in British trade names and investing in the state ‘s forces and workss by foreign companies besides brings important benefits to the full comprehensiveness of the UK automotive industry


The cardinal issue of Nissan is to construct the corporate image and foundation in extremely competitory environment and is presuming temblor ( EQ ) as the most critical calamity. While uninterrupted invention, clients outlooks, altering mix, direction of diverse work force are cardinal issues of Ford Company

Some of the cardinal issues are as follows.

Global production and competition.

Consumers disbursement forms

Emerging Markets

Health Care and environmental issues.

Foreign Exchange rates


The direction manners can be different in different organisation but these direction manners should convey great accomplishment of the organisational ends. By accommodating right manner of direction and leading in an organisation the facilitation of working leading between assorted entities of the organisation is possible. Therefore by comparing the overall direction behaviour and the construction of the organisation for both Ford and Nissan I wholly agree that Ford is better than Nissan in all ways. Equally for as UK auto industry is concerned, it is really different as it perceived in 1970`s because bulk of British trade names are now owned by non British motors group of foreign investors, on the other manus, Aston Martin, more late owned by Ford. Governmental policies are one the ground of diminution in the diminution of car industry in UK, so authorities should promote domestic production and cut down the duty and revenue enhancements.


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