Management Assignment: Individual Integrated Case Analysis Walmart

Honda Motor Co.

Integrative Case Analysis

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Course

Table of Contents

Page | 2 2

EXECUTIVE SUMMARY 3

Page | 17 3

INTRODUCTION 4

Overview of Organization 4

Type of Organization 5

Organizational Chart 5

HUMAN RELATIONS THEORY 7

Maslow’s Hierarchy of Needs 7

McGregor’s Y Theory 8

Fayol’s Theory 9

COMMUNICATION ISSUES 10

Time 10

Teamwork 10

Communication 11

INTERCULTURAL RELATIONSHIPS 11

Context Culture 11

Barriers 12

Overcoming Barriers 12

ETHICAL ISSUES 13

Ethical Yardsticks 13

Honda Philosophy 14

SUMMARY 15

REFERENCES 17

The organization of choice for analysis is Honda Motor Co, Ltd., which operates its headquarters in Minato, Tokyo, Japan and multiple subsidiaries worldwide. Soichiro Honda and Takeo Fujisawa founded Honda Motor Co. in 1948. Honda Motor Co. is a Japanese public multinational corporation renowned for its manufacturing of automobiles, motorcycles, and power equipment.

The human relations model for Honda Motor Co. is based on a combination of Abraham Maslow’s Hierarchy of Needs, Daniel McGregor’s Y Theory, and Fayol’s Theory. The management styles implemented were truly revolutionary, with department clearly delineated and were responsible for its own production. The Honda Philosophy coursing through the veins of the company, a standard that the company bases itself on for the conduct and decision-making of all personnel. Honda encouraged motivation to employees, to give self-actualization that would instill the drive to learn without fear of failure in order to build towards success and reap the rewards of hard work.

Honda Motor strives off its time, teamwork, and communication. Time is essential concept to Honda Motors success. Without it, without keeping to schedules Honda would not be where it is today. Top management involves all employees with the brainstorm and collaboration process for specific projects that further the development of Honda products. For Honda Motor, time and distances is not much of a problem because of its many subdivisions; each subdivision is responsible for its own entity meaning that each is also able to further its innovation.

Honda Motor Co. revolves around a high- and low- context culture through its sense of collective collaboration and success, rather than individualists approach. However, the low-context culture plays a part by allowing associates to have an individualistic initiative approach. This allows employees to be able to make their ideas a reality, creating new innovations and new technology. Some barriers Honda could face would be non-verbal communication between the different divisions across the world. However, since the start, Soichiro has led it associates in collaboration between Japanese and American associates by learning the cultures of each other’s.

Ethics with Honda Motor Co. has not been a problem according to sources. The ideals of Soichiro Honda have lived on through his time operating Honda and continue to live on following his passing. Since the beginning, Honda has had codes of conduct, company culture, and ethics. All these can be also known as the Honda Philosophy, which is the core of the virtue behind Honda Motor Co. This philosophy is also accompanied by Soichiro’s “Three Joys.”

Honda Motors has many subdivisions, but just as all the employees come together to further innovation so does its subdivisions. This has led Honda Motor to become one of the leading automobile makers of the world. Honda continues this innovation by allowing employees to have the culture of freedom to produce.

Honda, the synonymous name known worldwide with quality and ingenuity. This name is world renowned, founded by Soichiro Honda who can be accredited for the successful culture that the company enjoys today. Soichiro, the mastermind behind Honda Motor Co., was the son of a blacksmith who opened up a shop in repairing bicycles. Soichiro was influenced by his father and his love of machines and expanded beyond traditional bicycles to automobiles and motorcycles. He developed a career in repairing cars and motorcycles and eventually led into manufacturing. After a few years of working on his career, he left and started his own company. Soon after in 1948, the Honda name became concrete and started to develop a name for itself by partnering up with Takeo Fujisawa. Soichiro led the engineering side whereas, Takeo led the business side, and together built Honda into what it is today a brand known for its continuous innovation backed by reliability, affordability, and ethical business practices. Over the years, Honda has went through many leaders since 1948: Soichiro Honda (1948-1973), Kiyoshi Kawashima (1973-1983), Tadashi Kume (1983-1990), Nobuhiko Kawamoto (1990-1998), Hiroyuki Yoshino (1998-2003), Takeo Fukui (2003-2009), Takanobu Ito (2009-2015), and finally upcoming leader Takahiro Hachigo (2015--).

Honda Motors was the first manufacturer of Japanese origin to produce cars in the U.S. Today, Honda Motor Co. Ltd., operates its headquarters in Minato, Tokyo, Japan and multiple subsidiaries worldwide. Honda Motor Co. is a Japanese public multinational corporation renowned for it’s manufacturing of automobiles, motorcycles, and power equipment. During its life, Honda was a leader in the largest motorcycle manufacturer, and has become a household brand to many consumers of automobiles. Honda Motors is also the world’s largest manufacturer of internal combustion engines, producing more than 14 million engines each year.

The Board of Directors at Honda Motor has 20 members, two of whom are external appointees. It supervises the execution of Honda’s business affairs and makes decisions on matters of importance to the company, which include legal issues. In looking at the organizational structure at Honda, it would seem as if it were a combination of a hybrid between a horizontal and a vertical organizational structure. This is because the Honda Motor Group has many subsidiaries or divisions. These divisions are run on a vertical level to the Honda Worldwide Group then horizontally to the different divisions such as Honda Manufacturing, Honda R&D, Honda Jet, and continents such as Honda of Asia, Honda of America, and Honda of UK. This chain of command runs on a vertical level to the point of departments and run horizontal to the department heads. Then returns to the vertical level to managers, supervisors, associates, and interns. It would seem that Honda’s organizational structure is one of the reasons of why Honda is so successful today, because this structure opens more opportunity or openness, also cries out to creativity and innovation, and constant engineering. A sample of how the organizational structure at Honda Motor Co. is as shown (The Official Board),

Motivation can be defined as the desire to do things (Psychology Today), and Maslow researched into why people are motivated to achieve certain needs (Simply Psychology). Soichiro invested in human initiative and attention to all his workers from the start of Honda Motors. He also aimed to create a better environment for his associates, attracting specialists and motivating them to do their work in the most attainable way. Honda stepped away from the traditional caste system of hierarchy to promote the more experienced associates rather promoted based on their performance. He understood that encouraging his workers would lead them to personal development, allowing them to come one step closer to self-actualization that would ultimately lead him to success. He inspired his employees the drive to learn without fear of failure, which would build the road to success.

According to Zaremba, Honda Motor Co. would fall under McGregor’s Y Theory due to the characteristics that presupposes it. Under Theory Y, Zaremba points out that under the right conditions, work can be as natural as play. Honda of Asia describes this perfectly in that Honda has the desire to proceed always with ambition and youthfulness. Honda believes that ambitions are the positive driving force that motivates us, and youthfulness is a spirit of wholehearted commitment to ideals (Asian Honda). Honda lives by a set of a beliefs that has been passed down since the foundation; and one of these beliefs is to take initiative which in essence is to not be bound by preconceived ideas and to act on one’s own initiative and to take responsibility for those actions (Honda). Theory Y also mentions workers seek responsibility and feel rewarded through their accomplishments. Honda encourages achievement and helps employees to feel accomplished by allowing each associate to gain a sense of joy and pride in the work they do (Asian Honda). Finally Theory Y, states that workers are creative and capable of organizational creativity (Zaremba Ch 2).

Planning. Honda Motors develops versatile plans, where they can anticipate possible problems and the solutions to those problems involving their staff in various planning such as product and business planning. These various plans that have been created help the associates in collaborating in extensive brainstorming sessions where they first set objectives and discuss ways to achieve those objectives.

Organizing. In order for any plan to be completed Honda emphasizes organizing as a crucial function to the organization. Honda places a team of specialists for various centers across the world, which is assigned to specific roles in order to accomplish goals.

Command. During the beginning of Honda Motor Co., Honda and Fujisawa used forceful personal leadership in which they later introduced team leadership by Takeo.

Coordination. The management structure at Honda Motor Co. involves coordinating and overseeing the work activities of others so that the organizational goals can be accomplished efficiently and effectively.

Control. Honda uses a “soft” approach where workers are placed in complete control over machines. Human control is vital where human monitors what machines do.

Honda believes time is a limited resource; and to make the most use of time is to take sound idea and approach tasks with efficiency and productivity. Asian Honda mentions, three key elements in keeping time: simplicity (focusing on the critical issue by knowing what must be done), concentration (focus resources and thinking to reach goals), and speed (rapid implementation). Adding to this concept is another element, which is to be ready on time. Everything has certain timing and without it business activities will slow down. There are time schedules to stay on track and it is how to make the most use of time and the time of others (Asian Honda).

The objective of managers is to build relationships in which workers would see themselves working with the manager, rather than working for the manager. Human resource management assumes that if employees are happier at work the production would increase. The owners treat others as equal and often work in a workshop with employees allowing them to be able to express their ideas and theories with higher ups. Honda does not want to throw fresh ideas out and stick to what works, but to challenge and take fresh ideas, allow flexibility, creativity, and innovation to keep Honda on the leading edge (Asian Honda).

Honda advocates communication with its various stakeholders for instance customers, business partners, shareholders and investors, as well as local communities. The organization also strives to cultivate fluid internal communication with the goal of staying clear and responsible. Honda Group associates vow to comply with communication guidelines; “I, as an associate of Honda, will strive to practice appropriate and smooth communication.” This vow has consists of three components: timely and appropriate disclosure of information, communicating with stakeholders with sincere mannerism, and communicating at work with the motifs to create a peaceful work environment (Honda 2015).

Honda Motor Co. is unique company when it comes to dimensions of culture. This is because of its origin and its early history venture into the United States marketplace. According to Guffy, Japan is a high-context culture due to its relational, collectivist, intuitive, and contemplative characteristics. However, since Soichiro’s venture to the US he wanted to instill the cultural characteristics of North America (low-context culture), a logical, individualistic, linear, and action-oriented culture (Guffy Ch 1). In terms of the individualism perspective, Honda Motors pursues to place high value towards the group, its duties, and decisions. While at the same time, allows an associate to take initiatives on his or her own accord even if it results in failure. Soichiro Honda quoted “Success represents the 1% of your work which results from the 99% that is called failure” (Brainy Quote 2015).

Honda may face some barriers within their organization. These barriers could be perceptual disparity which Zaremba describes as selective perceptions may lead difficult or conflicting opinions (Zaremba Ch 11). In terms for the Honda Group, the Japanese cultured associates may feel that they are being disrespected by the US, Latin American, or European culture due to varied behaviors. Another barrier that Honda may face is the effect of language dissimilarity. Zaremba mentions that language shapes reality because what is spoken may impact message reception and understanding (Zaremba Ch 11). A final barrier could be nonverbal dissimilarity, which Zaremba points out that gestures or other nonverbal barriers are judged differently or can have different meanings in different cultures. To combat these barriers organizations such as Honda who have or who are seeking to multinational status should look into altering their structural orientations.

Honda has been able to overcome these barriers by following prescriptions that is recommended in Zaremba. The Honda Philosophy and codes of conduct has helped the Honda Groups in living out the beliefs of its founders. A second way to overcome barriers is for Honda associates to learn about the cultures of coworkers. Honda has instilled the Honda Philosophy of respecting the individual that pertains to Honda’s various stakeholders which helps to open diversification within the company. A third way Honda has overcome barriers is to assume an egalitarian frame or to be open to cultural differences. From the start of Soichiro’s dream of expansion, he had used this approach for his associates to conduct business with one another regardless if they are in America or in Japan. This approach has guided Honda Motor Co. into the organization it is today hybridizing the high- and low-context cultural characteristics to strive to be the unique.

The ethical paradigm at Honda Motor Co. has lived throughout the corporation’s history, derived from Soichiro Honda, and still continues to live on past his time at Honda. Since the beginning of Honda Motor Co., Honda has instilled the Honda Philosophy to be guidelines for his company. Under the Four Ethical Yardsticks mentioned by Zaremba, Honda would be an example of an organization that implements the Catergorical Imperative (assumes there are universal absolutes for what is or is not ethical), Utilitarianism (determines ethics by looking at the “collective happiness”), and Veil of Ignorance (decisions should be made with no consideration of political, financial, or role influence) (Zaremba Ch 4). The beliefs, principles, and management policies derived and passed down from Soichiro has helped Honda Motors in leading an ethical life.

This Honda Philosophy can be broken down into Fundamental Beliefs (“Respect for the Individual” and “The Three Joys”), the Company Principle, and Management Policies. According to Honda Worldwide, the Fundamental Beliefs are further reduced to two groups: Respect for the Individual and The Three Joys. Respect for the Individual consists of initiative, equality and trust. Initiative means not to be limited by preconceived ideas, but to act on ones’ own initiative and judgment, while understanding that one must take responsibility for the results of those actions. Equality means to recognize and respect individual differences in one another and treat each other fairly. Trust must be mutual and must recognize each other as individuals helping, sharing, and making and effort in collaborating to fulfill responsibilities.

“The Three Joys” are the Joy of Buying, Selling, and Creating. Buying can be achieved through providing products and services exceeding the needs and expectations of consumers. Selling occurs when those who are engaged in selling and servicing Honda products develop relationships with a customer based on mutual trust. Creating occurs when Honda associates and suppliers involved in the design, development, engineering and manufacturing of Honda products recognize a sense of joy in customers and dealers. The company principle (mission statement) of maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction.

The Management Policies are subjected to five key points that all associates in the Honda Group will uphold. First is to proceed always with ambition and youthfulness. Second, to respect sound theory, develop fresh ideas, and make the most effective use of time. Third is to enjoy work and encourage open communications. Fourth is to strive constantly for harmonious flow of work. Fifth is to be ever mindful of the value of research and endeavor. This philosophy is shared among all associates, and can also be the basis for all company activities and to set standards for the conduct and decision-making of all associates throughout the Honda Group.

Since its founding days, Honda Motor Co. has been on a road to success. This success is the ideals and dreams of founder Soichiro Honda. However, he was not the brains to the business, he was the engineer. He hired Takeo Fujisawa to become to business mind behind Honda. Together, they created Honda Motor Co. into the organization it is today. Living by the ideals and dreams of Soichiro, Honda Motor Co. has become a place for automotive enthusiasts to look to for innovation, dreams, passion, ethics, and culture. Honda Motor Co. has paved the way of how all automotive and other industries alike should conduct business. By having a culture that can be passed down the organizational structure from the CEO down to the intern. Motivating associates to reward them for their hard work, dedication, dreams, and ideas even if it results to failure. Allowing associates to take this failure to strive for the 1% of success that Soichiro strived for. A leadership team that stands behind its associates when they have a fresh new idea. Associates who love their work to create a new innovative design or concept. Taking that idea and making it a reality for those who inspired the idea. Living by the ethical beliefs of Soichiro to create a company whom consumers can turn to in times of need. Honda Motor Co. lives to benefit the world in collective happiness rather than themselves. They do this by choosing to conduct business ethically without a desire for profits first, but rather by innovation, accomplishment and pride. This is Honda Motor Co. founded by Soichiro Honda.

Asian Honda

https://career.asianhonda.com/culture.aspx

Brainy Quote

http://www.brainyquote.com/quotes/quotes/s/soichiroho350000.html

Guffy, Mary Ellen and Loewy, Dana (2010). Essentials of Business Communication 9e, Mason, Ohio

Honda

http://world.honda.com/profile/philosophy/index.html

Organizational chart

http://www.theofficialboard.com/org-chart/honda-motor

Psychology Today

https://www.psychologytoday.com/basics/motivation

Simply Psychology

http://www.simplypsychology.org/maslow.html

Soichiro Biography

http://jcc-good-leadership.tripod.com/id4.html

Zaremba, Alan Jay (2010). Organizational Communication 3e, Mason, Ohio, Thomson South-Western