HR Restructuring at Nissan Motor Company Harvard Case Solution & Analysis

HR Restructuring at Nissan Motor Company

Introduction

            Nissan Motor Company Limited was a multinational automaker headquartered in Japan, which was previously a core company of the Nissan Group. After its restructuring, it became totally independent in the year 2000. Carlos Ghosn, who was the CEO of Renault, was additionally performing the responsibility as a CEO of Nissan as well. It was nominated as one of the “101 Best and Brightest” places to work in Southeast Michigan. In the paper it was discussed that organizations were evaluated for the award structure on the following constraints: Diversity and Multiculturalism, Employee Communication and Recognition, Work-Life Balance, Strategic Planning and Integration, Compensation and Benefits and some others. Nissan gave priorities and facilities to women work force because they thought that it is one of the key drivers for them; as a result of that they won an appreciation award on behalf of its women as a driver’s seat initiative. They worked towards raising women’s empowerment in business in Japan. The reason behind the focus on women’s work force was the results of the research, which identified that women were influencers of two-thirds of all car purchases. They had implemented various strategies like “Women Engagement”, their education and their advancement level as well. Nissan also focused on diversity and employee motivation in the organization. They also offered specialized programs like “Career Advisors” for the women to guide them on their career development.

            At Nissan, targets were set for every employee after giving them consideration and viewing their point of views and problems. But once the targets were defined, the employees were given clear instructions and guidelines about how the performance would be measured. These activities were playing a vital role for the organization in order to improve work practices. The company did not focus in giving a particular job responsibility to the employees; it believed that team work, effective communication, well defined objectives, flexibility in the work environment, and benchmarking are the basis of organization’s success in the long term. Nissan also implemented the Training and Development program along with Leadership Training in order to gain competitive advantage in the industry. In spite of all of these practices, Nissan had not been well structured and suffered huge losses in the 1990’s. One of the key troubles that Nissan faced was related to the company’s culture and union did not agree with the things that Nissan wanted to implement.

Problem Statement

            Nissan had faced a lot of problems both internally and externally. One of the main concerns behind it was not achieving profit. They had no mission and vision statement to follow, which is always very fundamental for any organization’s success and management was just concentrated on short term business operations and daily routine activities; they did not have any goals and objective to follow. Another essential factor that was missing in the organization was that there was no team work and due to that the organization was facing various difficulties.

Analysis

Recruitment and selection

            Before alliance with the Renault, Nissan had invested more on women’s work force; after Ghosn had joined as a new CEO of the Nissan, he was also relied on women’s work force and concerned more about giving equal benefits to all the employees in order to ensure the organization’s success on long term basis. Previously, there are lots of flaws in the recruitment and selection process like most of the senior level positions assigned to the senior level staff members who had served the organization from a very long time and they were getting handsome salaries. When Ghosn came and join the Nissan, the recruitment process totally changed as well as well organized and recruitment was done from the top universities and brightest brains were hired from the top colleges. These candidates joined the organization at the entry level positions and were promised to offer their services for life time (Nick Deligiannis, 2012).

Compensation & benefits

            The young talent that was hired in the organization had not been offered the compensation which they desired initially, but when they came at the senior level desk; the pay scale was increased according as per their performance. They believed more on egalitarianism rather than focusing on performance based structure. Ghosn had encouraged over time work activity as well as working on holidays and individuals were recovering a very high over time rates as well. This had made the employees faithful to the company, but employees had huge concern regarding their social family network because it had affected a lot to them.

Employee Motivation and Development

            It is one of the important factors for any organization in order to achieve success in the long term. In the beginning, Nissan was not much focused ...............................

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