Another aspect of change was in the structural organization of the company. The successor to Chung Ju-Yung, Mr. Se Yung Chung, redesigned the structure of Hyundai from a functional organization to a divisional organization in an effort to decentralize power, increase motivation, cost reduction and market diversification. These changes forced Hyundai to effectively downsizing because of macro-environmental factors. One such factor was the South Korea economic slump of the 90’s whereby the sales of the company were adversely affected because the company’s six plants were operating at only 40% of their capacity (Center for Management Research, 2014).
The tolerance of the company in accepting external business factors that influenced its existence was stained in the 1990s and 2000’s when the company experienced labor unrests. This further compounded the capacity of the company to continue employing a huge number of workers as its struggled to cut costs in the face of dropping sales. As a result, a lot of workers were laid off, and those retained suffered degrading pay grades and benefits.
Organizational Changes in Hyundai
The organizational changes instituted by Hyundai can be summed up by the company’s Human Resource Development agenda which is to develop creative talent and cultivate a collaborative culture in order to improve business performance and build value (Hyundai, 2014). This essentially means that the company is focusing on facilitating growth based on common goals and common values by positively motivating their workforce. Therefore, the company has instituted organization changes in the following capacities; leadership, workforce, and society. In regards to workforce management, the organization has instituted a four...
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Breach in individual rights is evident in the case of ex-Lockheed manager Kenneth Branch who unlawfully gained access to “25000 documents containing proprietary technical and cost information of Lockheed”. This concerns Lockheed’s copyright and privacy issue.
It focuses on how to formulate and define clearly vision statement (organizational culture), challenging goals (organizational strategy) and gaining respect and trust (Humphreys & Einstein, 2003). The leaders encouraging participations, willing to take risks and acting as role models, who are highly admired, respected and trusted by their followers (Conger and Kanungo, 1998; Howell and Frost, 1989 and Bass & Riggio, 2006). Therefore, the followers will be highly motivated to perform beyond leaders’ expectations (Howell and Avolio,
AT& T is the largest communications company in the world. The company is the leading U.S. provider of wireless, high speed Internet access, local and long distance voice, and directory publishing and advertising services. They have even expanded to include entertainment with television services called UVERSE TV. With the many accomplishments of this media giant its portrayal of evidenced practice of some successful organizational behavior concepts reveal clear understanding of leadership. AT & T has proven success through effective organizational behaviors that include focusing on organizational structure, organizational culture and communication.
(2014) is “the way in which leaders interact, make decisions, and influence others in the organization” (p 237). The culture needs to foster cooperation from all areas of an organization, while providing the ability for adaptation and growth. Not all organizations culture will be the same, there is not a correct one that can blanket all organizations to cozy success. (3) Talent Systems. Human capital drives all organizations, the right people need to be in the right jobs with the correct opportunities for growth and advancement. There must be a constant search for strategic thinkers and leaders able to step up with called upon. The authors mention “Talent Sustainability” (p. 248), there must be enough qualified employees ready to move up so the organization will not stall while searching for others to replace others due to attrition, or other opportunists. (4) Organizational Design, must take a number of variables into account while providing structure to an organization. Hughes et al. (2014) state “the design of the organization is a trade-off between options, each with advantages and disadvantages” (p 253). The correct design can help clear the hierarchy of an organization and the proper channels for
The main problems that are affecting the company were the high level of labour turnover, below target production rates, high levels of scrap, the employees had little input in the decision making, therefore resulting in low motivation and job satisfaction, and didn't have enough feedback on there performance. Added to this was the conflict between the supervisors and employees in the production and packing areas, and the grading and payment levels wasn't satisfactory to the employees.
What is organizational behavior? Prior to this course, I had never known that much of what is organizational behavior and in which ways it can impact the organization. Initially, over the course my knowledge about OB was expanded.
The company’s approach to motivate employees has been working in a positive way. The employees are satisfied with the family style community, and the productivity has increased as well. The company’s style of treating employees as important partners has been successful in other manufacturing companies too. For example, when Honda opened its first factory in the U.S., the CEO and employees shared the same cafeteria, just like Lincoln.
The organizational culture of the automotive industry is one that underwent a drastic decline between 2008 and 2009 (Goolsbee & Krueger 2015). However, within a few years the Chrysler organization made enhancing adjustments for the better. The catalyst for the transformation from negative to positive within Chrysler organization was Sergio Marchionne, who took radical measures to realign the organizational culture (Kreitner & Kinicki 2013). Through carefully adjusting the espoused value of the company and guaranteeing that they matched the enacted values he was able to generate a high Person-environment fit (PE fit) that guided the company out of bankruptcy. By using attentive deliberation of the Chrysler culture we can learn about the
In the past 20 years, the technology has been improving as well as the behavior of human. Another change that has been significant enough in the workforce is the generation. Since the baby boomers is reaching the retirement ages, the workforce changes its face. During the change of the pace there are many issues regarding the younger generation. Though, the unprepared new labor force brings another issues to the most company. As the new age begin, the company is struggling with the high demand of spending and low output level from the employees. This event challenges the human resource management on the search of potential employees. The consideration breed the pros and cons whether to keep, train and improve or recruit and change the force. The essay will provides the thorough exploration to oversee the positives of developing dedication of the employees. The method will be used are research and case discussion. The objective of the written report is to provide an insight of the importance of loyalty from the employees.
It is very clear that the problems experienced in the companies are not lone standing but in most of the cases they are dependent on each other and there are strong bonds or relationships with regards to the cause and effects between them. It is therefore important to form or establish a strong cause and affect between them.
Organizational behavior is the study of the many factors that have an impact on how people and groups act, think, feel, and respond to work and organizations and how organizations respond to their environments. (George & Jones, 2005) Organizational behavior is particularly important to managers, who are responsible for supervising the activities of one of more employees.
In business, the effectiveness of an organization rests on the ability of the management to interact with its employees and to motivate the wo...
Stephen Robbins and A.J.B UBRIN think organisational behavior (OB) includes three interrelated influence and contact area of research: the behavior of the individual level, the group level and the organisational level behavior.
In an effort to address the burred and rough spots found by Quality Control on several defective panels, upper management uncovered several poor managerial decisions and employee relations issues. In order to stay competitive within the automotive industry, the company must make some major decisions. A decision to support one of their line supervisors’ decisions of disciplining an employee could cause a potential strike. Although, a decision of not supporting their line supervisor could potentially avoid a strike and paint a positive image in the company.
In Today’s world, the composition and how work is done has massively changed and is still continuing to change. Work is now more complex, more team base, depends greatly on technological and social skills and lastly more mobile and does not depend on geography. Companies are also opting for ways to help their employees perform their duties effectively so that huge profits are realized in the long term .The changes in the workplaces include Reduction in the structure of the hierarchy ,breakdown in the organization boundaries , improved and better management tactics and perspectives and lastly better workplace condition and health to the employees. (Frank Ackerman, Neva R. Goodwin, Laurie Dougherty, Kevin Gallagher, 2001)