Group 7_Section D_Organization Design

8/12/2019 Group 7_Section D_Organization Design

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13P205 : Deepti Thakral

13P210: Parth Khanna

13P217: Niket Gupta

13P218: Nikhil Saini

13P223: Praveen Kumar

13P228: Rishab Dugar

14IAE01:Chloe Andrieu

Group 7 : Section D


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Worlds largest manufacturer and 2ndlargest company of 2 wheelers

subsidiary of Honda Motor Company Ltd, Japan

youngest player in the 2 wheeler segment

First factory was setup in Manesar with annual capacity of 1.65 million

units

Other facilities are at Tapakura, Rajasthan and Narsapura, Bangalore

Dedicated to supplying products of the highest quality, yet at a

reasonable price

for worldwide customer satisfaction


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Respect for theIndividual

Honda recognizes andrespects individualdifferences

stems from these:

Initiative

Equality

Trust

The Three Joys

Honda conducts allbusinesses in pursuit of

these: The joy of manufacturing

high quality products

The joy of selling highquality products

The joy of buying highquality products


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LabourMarket

Customer

Supplier

Task Environment

Many instances of wildcat strikes

that hamper production

An incident of a security

personnel misbehaving with a

temporary worker which led to

strike Manesar plant

Establishment of a unionHonda conducts various MDPs for

its managers

Honda uses multiple

suppliers for each type of

component

Believes in co-prosperity

and exchanges industrys

best practices with its

suppliersRespects the suppliers

capabilities and has an open

door policy to build mutual

trust

Strongly believes in enhancing the customer experience andin turn building customer trust

These principles have led to the growth of the customer base

from 10 million to 15 million in a short span of 18 months

integrated its service departments for each region and

established Customer Service Operations to provide world

wide customer satisfaction

Honda conducts customer


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Government

100% FDI in automobilehad led to almost allmajor global companiesbeing present in India

Increase in the fuelprices has led to need offuel efficient andalternate fuel vehicles

All this led to greateremphasis by Honda on itsResearch & Development

Department

Economy

Slow growth and rupeesdepreciation has led to arise in the cost of theimported auto

components Led to reduction in the

demand and a slump inthe automotive industry

Political

political uncertainty tillthe next generalelections has led to aslow economic growth

This affects the sales ofthe automotive industry

This downturn has ledmany companies todelay their expansionplans


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Hondas environment is of

Low/Medium uncertainty To deal with this, Honda has a

mechanistic structure with

different functional departments

for different purposes

There are clearly defined roles

and heads are responsible forintegrating and co-ordinating

among the different functional

departments

Feedback obtained through

internet and satisfaction surveys is

closely monitored by thecompanys Sales and Marketing

department

S&M works in close collaboration

with the R&D department to

ensure a good customer experience


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Honda has a functional

structure

Activities are grouped

together by common

function

Further these operations

are divided intoDepartments

Every department is

responsible to achieve their

own targets and works in

close collaboration with

other departments

ADVANTAGES

Economies of scale

In-depth knowledge

Skill Development

Slow response time

Poor horizontal coordination

among departments

DISADVANTAGES


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Hierarchy structure is followed

Employee is reports to his immediate senior and chain of command is

followed till top management

Workers report to supervisor/junior executive who are diploma holders

Supervisor/ junior executive look after the daily production and

manufacturing targetsSpan of control is more at bottom level of organisation

Junior Executive handles around 15-20 workers

Span of control reduce to approx. 3-4 as hierarchy reaches the top

management


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They are the mechanism of coordination among various departments to

increase the effectiveness

In Honda direct contact and hierarchy are used

Due to this time lag in decision making is always there

In case of new project or in operations like sales & marketing, team mechanism

is followed


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Honda has a collaborative

relationship with its suppliers

& dealers

The long term benefits of

Honda being partner with its

suppliersHigh dependence and

trust

Low cost and high quality

products

Partnership approach

rather than traditionaladversarial approach


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Honda following of stringent

rules & regulation and discipline

culture

Different culture is being

followed in different operations

In manufacturing:bureaucratic culture with daily

targets to achieve

Culture is to follow rules &

regulation

Employees wear a dress defined

in companys bookIn operations like customer

service, sales:

Adaptable culture to fulfil

customer requirements on priority

basis


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Overall Hondas CultureFriendly culture

Follows equality, every employee is expected to wear the same uniform i.e. worker and

presidents wear the same uniform

As well as a very demanding culture wherein employees are expected to put in best effort in

assigned job

Honda believes in taking care of its employees and increasing their participation levels to

improve quality


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Honda parted ways with Hero In 2010

Since then Honda has been following very aggressive strategy to

be no.1 in Market

It has acquired 2ndposition in two wheeler market after growing

at very rapid rate

It has opened 4 plants in last 3 years.

Lot of changes in top management and new roles &

responsibilities to managers

With such rapid expansion , Honda needs to restructure its

organisation structure


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THANK YOU

Documents

Group 7_Section D_Organization Design