Automotive Industry in US and Japan
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Few industries have influenced management styles in the United States and Japan as much as the automotive industry. When Henry Ford introduced the assembly line at his manufacturing plants, he changed the American worker's way of life. Arthur Deming's suggestions of quality circles in the mid-twentieth century were successfully adopted not by American manufacturers, but by the Japanese; the resulting exports changed the cars that American companies produced. Since World War II, distinct management styles have become apparent in Japanese and American automobile manufacturing, styles based as much on each country's culture as on textbook management techniques. This research examines the management styles of two manufacturers, Honda and Saturn, and considers the changes that Japanese and American management has undergone in recent years.Soichiro Honda, founder of Honda Motor Company, imbued the organization with the "Honda Way," a central philosophy which is both elusive and effective. According to executive vice president Soichiro Irimajiri, it took one year to develop an English description of corporate policy, which amounts to everyone working diligently and in unity to develop competitive products. These products are efficiently produced and priced reasonably for the global market. The core of the Honda Way is a uniformly understood set of principles which guides each employee's actions in any situation. The principles are prominently posted in Honda installations
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pay their sales representatives commissions, there is uniform pricing (no dealing on the sticker price), and a high level of commitment to customer service. Such control at the showroom level is the result of close communication and co-operation between Saturn and its dealer network.
Saturn also has a close relationship with its workers, beginning with members of the United Auto Workers (UAW) union, which traditionally enjoys an adversarial relationship with American car manufacturers. The UAW has an official seated on the Saturn Strategic Action Council with a full voice in consensus decision-making. A UAW advisor also is part of each business unit.
Within Saturn, all stakeholders participate in resolving conflicts and have access to all relevant information. each participant must be able to accept at least 70 percent of all consensus decisions, and then be able to demonstrate 100 percent commitment to implementing the decision.
Saturn uses simultaneous engineering in order to integrate the human resources into the process as much as possible. This type of organization means that product development is not divided into separate tasks which are accomplished sequentially; instead, projects are shaped by teams. Each tea
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Approximate Word count = 1801
Approximate Pages = 7 (250 words per page)
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