Executive summary
In spring 2010, New United Motor Manufacturing Inc., a successful joint venture between Toyota Motor Co. and General Motors Co, shut down its plant in Fremont, California. Over two decades NUMMI was a model manufacturing plant with high quality and productivity, exceptional worker’s satisfaction and attendance. What did NUMMI do to change the former GM’s dysfunctional disaster into best plant?
This report is going to examine a dramatic change conducted by NUMMI’s leadership. It will address three main reasons which made this change possible: • Creating a new production system • Developing a new management system • Reformation of corporate culture.
And finally, the recommendations will be identified
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NUMMI was created as a team-based organization with sense of interdependence and unity. There were just three-level management levels; in contrast, old GM’s plant had a six levels hierarchy. A team leader, who was responsible not only for coordinating teamwork and trainings of team members, but also was able to replace a team member on line if needed, represented the first level of management. The second-level management in addition was responsible for budgeting and planning. Moreover, these managers were expected to resolve the problems at the lowest possible level.
In order to foster fair and efficient environment NUMMI designed a new job structure; specifically, job classifications were reduced from 81 to 3 with the same wage rate. Developed reward system also tended to equalize rewards among employees. For instance, a team leader received only a 50-cent hourly premium and each team was awarded with a small social budget.
Continual training system and information sharing among all team members let the company to support its goals. Implementing the stop-the-line system allowed management to empower its employees by pushing down responsibility for the production and quality at the lowest possible level, to a worker. Meanwhile, the policy of “mutual trust” or no-layoff policy established a real trust between the company and employees by ensuring its workers to
Throughout this essay organisational culture will be examined, including the two approaches mainstream and critical. What managers can do to shape culture and also an example of when culture has in fact been changed.
Increasing productivity and sparking motivation in employees, are challenges that managers, businesses, and organizations have struggled with for centuries. While there are many beliefs about which method(s) yield the best results, and what is considered to be the desired result, a ‘one-size-fits-all’ management technique still does not exist. The current movement in psychology, called Positive Psychology, focuses on what is “right” in an individual, and not on their faults. This basic concept is starting to extend its influences into the workplace, making it seem that Positive Psychology may become the key ingredient corporate culture, and all places of employment alike, have needed to promote success and satisfaction in their lines of work.
To understand the organizational culture of a company, one needs to start by looking at the history. Lakeshore Learning Materials was born from a divorced mother of three named Ethelyn Kaplan, who took a dream and a chance by moving her family to California in 1954 to open a toy store. When she started noticing that teachers were interested in her material, Ethelyn realized that she needed to expand her business into educational materials. 60 years later, Lakeshore Learning Materials has grown into a company with over 2000 employees, 60 retail stores throughout the United States and growing. Lakeshore Learning Materials is currently headed by Ethelyn’s grandsons, Bo and Josh Kaplan. Under the supervision of Bo and Josh, Lakeshore continues to be a leader in the Educational Materials, yet still able to keep the family culture that their grandmother started. Highest quality customer service and hard work are the core values that shape Lakeshore’s Organizational Strategy. These high expectations aren’t hard for employees at Lakeshore because the company is so loved by everyone that works there, that they give nothing less than the best.
This theory recognizes that individuals are concerned not only with the absolute amount of rewards they will receive; but is based on one’s inputs, efforts, experience, education, and competence. Employees can compare equity ratios to ensure fair treatment; and when treated fairly employees are motivated to work harder (Ramall, 2004). The theory motives employees to be proactive, satisfied employees and demonstrates a company’s willingness to ensure fairness and equality (Ramall, 2004). Engstrom Auto Mirror Plant by changing the team structure will gain the benefit of group decision making, shorten production time and improve communication and teamwork efforts.
Organisational Culture is defined as what the employees perceive and how this perception creates a pattern of beliefs, values and, expectations. Organisational culture differs from organizational climate. Climate refers to more temporary attitudes, feelings and perceptions of individuals (Schneider, 1990). Culture on the other hand is an enduring, slow to change, core characteristic of organisations which is an implicit often indiscernible aspects of organisations, climate refers to more overt, observable attributes of organisations.. Organisational culture is “the way things are” in the organisation rather that people’s transitory attitudes about them
Within organizations, large and small, there exists a sense of identity among its members that separates it from other organizations. This sense of identity is known as organizational culture. All over, managers seek to influence and change this into something that can be beneficial for the organization. In his article, “The Six Levers for Managing Organizational Culture”, Professor David W. Young defines the different elements that can influence and change the culture within the organization and how the reader can use these “levers” to their advantage. While the author does present a decent explanation for changing the culture of an organization, he leaves many questions unanswered that leaves his argument incomplete.
According to Mclean and Marshall (1993) organisational culture is defined as the collection of traditions, values, policies, beliefs and attitudes that contribute a pervasive context for everything we do and think in an organisation. (ie) this means that these factors actually determine how we think as well as act and react not only to people from within the same organisation but also to anybody on the outside who has some sort of interaction with the organisation. As can be seen with the part-structure in Figure 1, this organisation (WHD) has various levels of management. There is quite
The formal reporting lines refers to the communication between directors, managers, and those employees under them in the organizational structure while the informal reporting line refers to the communication that occurs between health care professionals in the course of the decision-making process, i.e. nurse to physician discussing a patient. Informal communication also can be peer to peer regarding conflict, policy, or safety issues. If a decision is made between the peers, the formal reporting line can be entered in with the peers taking the information up the chain to the managers and directors. Often informal reporting becomes formal reporting. In my organization our formal reporting line starts with the unit charge nurse, proceeding to the team coordinator, the director
There is no denying that work, nowadays, normally cannot be finished by one person, even one firm. A complicated task or assignment has to be resolved by a team of members or several companies who collaborate with each other. For example, different parts of a computer are made by distinct companies, such as the software, the hardware companies. Consequently, companies should dedicate enough money to strengthen workers' cooperation.
New United Motor Manufacturing Incorporated, the 1984 joint venture between Toyota and General Motors, was by all accounts a manufacturing success. NUMMI’s effectiveness was evidenced by the drastic change in output quality, employee morale, and overall cost—but while these great outcomes were recognized by GM, they were hardly leveraged. What supported these results were exactly the factors that radically set NUMMI apart from the rest of the GM family. Ultimately, GM’s failure to adapt the plant’s success was the result of a prideful conglomerate embodying a competitive internal structure and divisive culture so strong that it was unable to fully recognize and adapt to the fundamentally different NUMMI model.
Organisational culture refers to ‘the shared beliefs and values guiding the thinking and behavioural styles of members’ (Cooke and Rousseau, 1988, in Bratton 2010: 334), indicating that employees who accept the common values of an organisation and put great effort on commitments are likely to build up a strong culture to an organisation.
Edgar H Schein: 1996 “Culture: The missing concept in organization studies” Administrative Science Quarterly, 41, 229 – 240.
In 2004, the pubs reduce the amount of alcohol in its cocktail pitchers and create the new product which is beverage with alcohol. This is a better way to developing the pubs well (Quain, 2009).
In this week’s assignment we will be looking at organizational structure and organizational culture. We will first look at how organizational culture impacts organizational structure and vice versa. Then look at how organizational structure interacts and impacts the organization’s decision process.
One of the world’s largest automakers, GMC has it’s roots traced back to 1908. Also known as GM, this company is a United States-based automaker with its headquarters in Detroit, Michigan. After the General Motors Company was founded, it soon became known as one of the largest car manufacturers in the world. In 1909, the Grabowsky Rapid Motor Vehicle Company (GMC) joined with GM. The trade name GMC Trucks was first exhibited in 1912 at the New York Auto Show and registered with the U.S. Patent Office eight months later. The