Human resources assignment essay on: Issue at Honda Motors China
Honda Motors (Analysis of Organizational Issues)
Introduction
This essay is based on Honda Motors which is a well known Japanese company. The issues related to HONDA Motors at china are being studied with perspectives related to Modern, symbolic and Post Modern Theories. As per (Cunliffe AnnL 2008) modernist theory is based on the real situations and performs functions for survival in the changing world. Modernist highlights that if there is interaction between the elements internally than it’s known as the close system and if elements interact externally than it is known as open system. The Modernist also states that this theory is as similar to contingency theory which shows that there is no way to manage the organization. The symbolic perspective is found at dealing with the qualitative aspects related to factors such as stress based on real subjects, negotiation with the help of social interaction process and etc (Kontopoulos 2006). The post modern theory is based on issues which should be understood from different perspectives in an organization for adding meaning to it. Honda Motors was Brand founded by Soichiro Honda and is well known for its quality and superior technology in Automobile Segment throughout the world. It has been setting up its manufacturing facilities across the world since 1960’s (Greimel, Hans 2012). According to (New York Times 2010) Honda Motors faced problem in china because workers wanted to form their own union who could understand their problems and also wanted increase in their pay scales. The production was being shut down and 1700 workers went for the strike. It created problem for management of Honda Motors and it became a political issue over there. Honda also faced the labor shortage for production process and productivity was being hampered which resulted in lower amount of sales. This essay will highlight Honda’s overall strategy to cope up with such problems by understanding issues with perspectives related with Modern, symbolic and Post Modern Theories of Organization.
Modernist Theory
This theory states that changes can be viewed by the five senses of human which is related with epistemology and ontological. An ontological aspect can be defined as belief based on knowledge and reality. In case of epistemology is a kind of truth which requires discovery with the help of scientific management. Modernist theory also has sub theories known as contingency, social, environment, technology and cultural theories. All of these theories are explained below by relating it with the issues of Honda Motors at China.
Contingency Theory
In an organization management is dependent upon certain factors such as technology, structure, culture and environment. Contingency theory is based on the thought process and it states that no structure remains permanent for any of the organizations (Lex Donaldson 2001). As per this theory the issues of Honda Motors at china was related with increasing wages of the labor over there and to start the production process for boosting up their sales. The labor should be provided more than their average wages but far below than what they were expecting. This strategy can be implemented Honda by negotiation process. Thirty representatives were selected from the entire Labor so that process of strike could be ended by the management. It can be done by asking labor to sign the clause of no strike (Jorge Martin 2012).
Social Structure Theory
It is a kind of theory which says that organizational structure is mechanistic in nature. It is a kind of structure where the decisions are made at top level and pushed down to bottom level. It is a centralized organization where relationships are based on the level of hierarchies. The communication in such organization takes place in vertical manner and also rules and policies are standardized in nature. It operates with formal structure and the task is done on individual basis (E-notes.Com, Inc 2012). The decision was made by top management of JAPAN with the support of ACFTU in a formal and centralized manner at china. It was also found by the Japanese management that china was no longer a destination for cheaper Labor. The top management has decided to shut down the five units temporarily to pacify the situation. If we analyze Honda Motors as per social structure, then in such case it can be found that top management of Honda is following mechanistic structure (Inquirer.net 2012).
Environmental Theory
As per the environmental theory it is being classified into two sections such as task based and the general one. Task based environment represents all the activities related to business. The task environment will includes market, competitors, technology, suppliers and structure. The general environment includes all forces that affect the organization indirectly (Richards L Drft 2010). The factors are such as socio-cultural, economic, political, technological and etc. In case of Honda Motors Labor unrest at china the task environment will pay more emphasis because the workers in such situation will not perform any of the activity which will reduce the sales and profits of the organization. Since Honda’s production will be stopped in such case the competitors will enjoy the monopoly in the market. This factor affects the Honda’s overall strategy. The employee’s have been protesting the Japanese Culture during the strike process which affects the organization. In such case Honda Motors had to increase the wages above than the minimum one but less than the employees who work in Japanese Plant to enjoy the profits (China Labor Net 2012).
Technological Theory
It is defined as the techniques used for transforming inputs to get the outputs. It helps to get the difficult task done easily by machines with less human effort (Discovery Education 2005). The technology used by the organization will be linked with the mission of an organization. The materials and machines used by Honda Motors will represent its technology. The technology will help to identify the nature and structure of the organization whether it is centralized or decentralized. In case of Honda Motors the specialized workers should use the technology for schedules working hours and they should be paid on the basis of what they have produced in those hours. Honda Motors is well known for its technology throughout the world because the entire technical process is being centralized by the management of Japan. It has been using latest technology which helps in fuel consumption and provides best car models throughout the world.
Cultural Theory
Culture is defined as an important tool for survival in society, community, organization and among the countries. It is a combination of beliefs knowledge and emotions which are being shared among the employees in an organization either in an ethnocentric or polycentric manner. In an organization the culture will help in reflecting the behaviors of the employees while performing any task. In an organization while framing decisions by the employees cultural aspects are to be valued form the view point of an organization by analyzing all the facts. The culture will help to decide what is right and wrong and how to develop interpersonal relationships at workplace. Organization should develop their own working culture so that employee’s can value each other and understand the emotions with empathy. The actions and decisions taken by any organization are based on the value system of an organization. The organization while framing its own corporate culture should respect the customers globally, respect each other’s, hire employees cross culturally and focus on the innovation and new developments. The culture of Honda Motors should be reflected in Logo and the slogan (Power of Dreams) of the organization. It is managing its culture with the help of creativity and innovation. It has been conducting several meetings and participated in auto seminars all across the world. At china the employees found that Japanese are unable to respect their culture so employees started to protest against the working culture of Honda Motors at china. Japan and China should respect each other’s culture because it is require for the growth of the economies. The management of Honda Motors need to respect the employee’s emotions at china and should analyze their employee’s requirements at china to develop better intercultural relations.
According to the Modernist theory it can be summarized that Honda Motors had been facing the problems regarding the separate formation of unions and increasing in the pay of their employees at china. The sub theories such as contingency theory will help in negotiation process to overcome the problems related to strikes. The social theory will help the management to take decisions with the help of ACFTU. The environmental theory will help to respect the employee’s dignity by increasing the workers pay at china. Technological theory will help in attracting customers globally with new features in its products. The cultural theory will help management do maintain healthy employment relationship by valuing each other’s culture. It will help in providing maximum satisfaction to the employees at china which will motivate them to produce more effectively and efficiently at china.
Symbolic Theory
It is a kind of theory which states that society builds the technology. There is a controversy between Modernist and Symbolic theory regarding technology. The modernist theory explains that technology builds the society. Technology in isolated terms is useless because it should add meaning to the some aspect. It is used for the interaction process between the people in organizations and society. The technology will help in delegating the work in an appropriate manner (Answers Corporation 2012). The more interaction between people in society gives birth to innovation and the new technologies. It takes ample amount of time and it is important for the organization. The innovation is a process which is the combined result of technology and society. The new technology which is being launched in market should be able to define itself. If we consider the factor of Anthropology with respect to the use of Technology it was found that the Labor of china protested the management of Honda Motors by publishing it in newspapers, in chats and at internet. The technology is related with the socio cultural aspects and how it will be functioning in the society. The Chinese labor expressed their views that they were being exploited by Honda Management. The organization was hiring Labor from vocational institutes to meet its expectations. These younger workers knew how to use the technology in a better manner as compared to the earlier Chinese employees. It is a company which has been producing fuel efficient, eco friendly and designer cars for the consumers who are located globally. The ASIMO process of technology is being used by Honda Motors to receive and give the objects during the manufacturing process. A research is being conducted regarding the Human Robot by inviting all the leaders and experts from all across the world by Honda Motors. The Honda Motors at china had very bad experience which was unexpected because the local Labors of china started to criticize the Japanese Management. The labor problems at Honda Motors in china did not help the organization to use its technology to the fullest extent.
Thus according to symbolic theory, it can be stated that technology fails at times when the social interaction is missing between people in the society and organizations. The Labor unrest created strike and management was unable to understand the requirement at china. It proves that technology is being used and developed only when employees share healthy employment relationship with the management and understand the working culture of the organization. Even management should focus on providing benefits and maximum satisfaction to the employees. The process of innovation and use of technology is only possible if people interact with each other in society and value each other’s culture. Meaning can only be given if technologies are being properly explained to the world adding the factor of experience to it (About .com 2012).
Post Modernist Theory
It is term which has been defined by several researchers. It is a way to explain the complex relationships, knowledge and power which are interwoven. The world is being created with the help of power and knowledge. The postmodern approach is based on cultural, social, and language based factors with their meanings. It is the nature of human who uses all the factors for his existence in the society which is uncertain in nature (Smith, GB 1991). According to the post Modern theory power and knowledge is supposed to be the key factor for finding the hidden facts.
If we analyze the issue of Honda Motors at China from postmodernist view it can be reflected how power & knowledge was being used by management and it’s Labor for presenting their views. There were several reasons why the manufacturing units were being closed temporarily by the management. The Honda’s organizational and employee’s performance was being hampered by such strikes. The reason were like Honda was facing labor unrest problems such as employee’s were demanding higher wages, negative publicity was being done by the labor, and Japanese culture was at stake. The Labor used their power and knowledge by protesting which was reflected as changes in the china’s demographic structure by creating awareness among all the citizens for their rights at workplace (The Washington Post 2012). Historically china was considered a good place by the multinational for setting up their plants for low cost productions of the products. Most of the upcoming generations of china are educated and they want to civilize the Chinese society regarding their human rights at workplace. More over one child policy of the Government at china had also affected the Labor market and overall china’s economy. Management of Honda Motors at china used their power by organizing temporary shutdown. Labor had been conscious regarding their right and management had to increase pay which was only the way to invite Labors back to their Job. Management took an advantage by increasing some amount above the average wage rate but far below from the Japanese wage rate.
According to the Postmodernist Theory Honda’s management at china knew that they can use their power by negotiation with the employees and trade unions of china for fruitful result. Since china is known as a destination for cheaper labor and the manufacturing cost is low as compared to other countries. Management could not fire all the employees who went for strikes. Though there was scarcity of the labor in china’s market and also it could have created more problems for Honda Motors’s management and for china’s government politically.
Conclusions
It can be concluded that every theory hold its equal importance and it depends on how human views it. In case of Honda Motor’s china, above explained theories and perspectives have been used to analyse the issues created by Labor over there. They demanded for increase in pay and their rights at workplace. The Modernist theory will help Honda Motors to face the problems regarding the separate formation of unions and increasing in the pay of their employees at china. The sub theories of Modernist theory such as contingency theory will help in negotiation process, social theory will assist management to take decisions with the help of ACFTU, environmental theory will help to respect the employee’s dignity by increasing the workers pay at china, Technological theory will help in attracting the customers globally with new features in its products and cultural theory will help management do maintain healthy employment relationship by valuing each other’s culture. The symbolic theory states that technology fails at times when the social interaction is missing between people in the society and organizations. Postmodernist Theory explains that Honda’s management at china knew that they can use their power and knowledge by negotiating with the employees and trade unions of china for fruitful result.
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