Case Study Organisational Behaviour Of Automobile Company - Nissan

Questions: 1. Analyse the case study given and answer the questions mentioned below 2. Why was organisational change necessary in Nissan? What did Ghosn and others do to implement change? Was the change effective? Answers: 1.0 Introduction: The concepts of organisational behaviour (OB) help to investigate the impact of the corporate culture, structure, individuals and groups which have a significant behavioural approach for the purpose of applying skills and knowledge towards improving the organisational effectiveness (Bizony, 2009). The purpose of the study is to scrutinise the present organisational behaviour of the car company, Nissan. Along with that, it speculates the initiatives taken by Ghosn and the effectiveness of the implemented changes within the organisation. 2.0 The requirement of organisational change in Nissan: The five key reasons of organisational change in Nissan: Loss of focus on profits It has been observed that Nissan management did not have any data or metrics to measure the performance of the company. For an instance, the 43models introduced by the firm did not get a fair market share in the global marketplace. As per the opinion of Heitger and Heitger (2008), these kinds of circumstances made the most difficult situation for the company to get the optimum profitable market position. Loss of focus on the customers The company has no focus on the demand of the customers. According to the opinion of Jindal et al. (2011), there was no clear understanding of the preferences of the customers on the models of the cars in the competitive marketplace. The firm paid only for lip service to the concept of the client focussed. No sense of urgency The decision making the process of the company was indigent. While operating in prosperous countries, the management did not leave its comfort zone and usually discourage the cultural consensus of this particular country (Piso et al. 2012). Thus, this is the big issues which did not direct the firm towards the profitability. No vision Considering the opinion of Macharis and De Witte (2012), the company did not have any particular view to enhancing the business growth in the global market of the automobile industry. The lack of clear strategic vision of the firm prevented the employees from sharing the innovativeness for the future development of the company. 3.0 The initiatives by Ghosn for implementing the change: Carlos Ghosn and the team have taken a lot of transformational attempts for applying the change process within the organisation. Ghosn had announced Revival Plan initially, to turn the company into a profitable position. According to the opinion of Minchin (2007), the Revival Plan speech of the firm includes the elimination of many jobs and reduction of production capacity by 30% due to the massive crisis of the enterprise. Adding to this, Ghosn had publicised for sharing the platform with Renaults to achieve the reliability again in the market. After that, Ghosn took steps for eliminating the number of suppliers so that the suppliers could spread the costs over the larger volumes. Ghosn had established the clear sense of targets to direct the company for achieving the goal (Bizony, 2009). Furthermore, the objectives like return on profitability, reducing debt and improvement in overall profitability is highly precious to deal with the current situation of Nissan. The employee motiva tional approach of Ghosn with the active leadership style and the support of Cross Functional Teams (CFTs) assisted in breaking the silos and instilling cross-company collaboration. The real work approach adopted by Carlos Ghosn had helped Nissan to be progressive for achieving desired goals in the current global marketplace. 4.0 Scrutinising the effectiveness of the change: It has been examined that the identified strategy taken by Carlos Ghosn has helped the company to fulfil the foremost objectives such as the making of high profitability, debt amount reduction and fixing up a strategic vision for the future development of the firm. Nissan has attained massive changes in the business operation under the leadership of Ghosn. According to the opinion of Piso et al. (2012), a loss of 684 billion was converted into a profit of 331 within one year. It has been speculated that Nissan was one of the most profitable automobile company with 11.1% operating margin within the next four years. Adding to this, as a positive impact of the Goshns strategy the car manufacturing company had launched a new plan, called Value-up, for raising its annual sales by 38% to 4.2 million vehicles by the end of next four financial years (www.nissan.in, 2016). Hence, it could be inferred that the Ghosns approach was highly effective for Nissan to achieve a sustainable market po sition after overcoming the crucial situation. 5.0 Conclusion: The primary assertion of the study helps to understand the organisational behaviour of the automobile company, Nissan. While conducting the research it has been observed that the brand has a high requirement for regulatory change due to the effect of loss of focus on profits, loss of focus on the customers, no sense of urgency and no vision. Furthermore, the research has evaluated strategic initiatives like Revival Plan adopted by Ghosn for implementing the change within the firm. Finally, the research associate has scrutinised the effectiveness of the modification process for the future development of the company. References: Bizony, P. (2009) Four wheels good? [car manufacturing], Engineering Technology, 4(16), pp. 1619. Heitger, L.E. and Heitger, D.L. (2008) Jamestown electric supply company: Assessing customer profitability, Issues in Accounting Education, 23(2), pp. 3642. Jindal, D., Jee, C. and Thakur, R.R. (2011) Nissan: Go global strategy, Business Strategy Series, 12(4), pp. 195201. Macharis, C. and De Witte, A. (2012) The typical company car user does not exist: The case of Flemish company car drivers, Transport Policy, 24(6), pp. 9198. Minchin, T.J. (2007) The assembly line and cars come First: Labor relations and the demise of Nissan car manufacturing in Australia, Labor History, 48(3), pp. 327346. Piso, P., Schlitt, H.J. and Nissan, A. (2012) Changing prognosis of metastastic disease by multimodal strategy-patients do benefit from close interactions between treating disciplines, Journal of Surgical Oncology, 107(6), pp. 565565.