People & amp; Organizations
Comparison between two MNCs
The organization is a key function to assist the achievement of any plans. Honda has a specialized team for various centers across the globes who were allotted for specific tasks to fetch their aim. Honda Motors has a quite big structure inside its organization. Honda spread their organizational controls evenly all over their departments. In the organizational structure of Honda motors, the executive council is at the top (GUMNANI, 2018). The council manages the company. It keeps track of the overall vision of the company. The decision was taken by the council to help to maintain the company for making high-quality products and keep innovating without increasing much complexity. The main motive of the Honda is to produce good high-quality products which will provide safety and comfort to their customer.
There is a parallel layout of the Honda. They have the motorcycle operation, automobiles operation, purchasing operation, business support operation, business management operation. Honda does a very good job in the organization they make sure about the fact that everything goes smoothly as per their plan without facing much hassle. Honda is very organized with many layers of management that manage the company by maintaining high-level authority which is the key to make decisions deals with business activities (Vyncke et al., 2019). Honda basically focuses on top-down management, whereas the executive manager on the very first level informs the manager who then later informs the staff what to do and how to do. Honda is basically a formalized organization in its regulation they have mentioned their rules and regulation over there. The regulations are compulsory which are mentioned inside the organization these regulations are followed by each and every employee no matter what the situation is in the company.
The pillar for the success of an organization relies on the potential to generate a homogeneous organizational structure. Such a culture constitutes shares worth and opinion that combine several elements of an organization. Honda Motor appreciate that it performs in a global market characterized by people from various background. It established a culture respecting people and its worth in increasing its success (Pratikno, 2019). In order to show that people are not ordinary benefits for the company. That is why they use the term “associated” to describe the special relationship with its people i.e. the customer, employees, and society. The capacity of the organization in order to build and maintain a good cultural relationship with the people (customers, society) to explain its leadership in manufacturing automobiles, motorcycle, power products such as garden, marine, and now proceeding into the aerospace industry products such as airplane engines.
Fig: Organizational structure of Honda
(Source: The Official Board, 2020)
As a brand ultra-tech embodies strength, reliability, innovation. All these together allocate engineers to extend the limits of their imagination to build homes, building and a structure for new INDIA. Ultra- tech cement limited is considered as the largest cement manufacture company of India. It also holds a rank in the largest cement companies in the world. Ultra- tech vision is considered as the “the leader” in-building solution. It is the largest manufacture of grey cement as well as white cement and also ready-mix concrete. The brand has governance which can be also called the board of directors. There are different segments under the board of directors. It is claimed that there are 4 segments of the board of directors like 1) Non- executive chairman, 2) non-executive director 3) Independent director, 4) executive directors. All these people who belonged in this different segment they are. Mr. KM Birla, there are two people under the non-executive director they Mrs. Rajarshree Birla and Mr. OP Puranmalka (Dasgupta, 2017). Under the independent director there are total six people they are Mr. GM Dave, Mr. SB Mathur, Mr. Arun Adhikari, Mrs. Renuka Ramnath, Mrs. Sukanya Kripalu, Ms. Alka Bharucha and under the executive director there were 3 people Mr. KK Maheshwari ‐ MD, Mr. Atul Daga ‐ CFO, Mr. K C Jhanwar – Dy MD. They also have their own management team as well. The management team is also divided into five sections 1) Managing director, 2) Chief Manufacturing Officer & Dy. MD, 3) Executive Director & CFO, 4) Chief Marketing Officer, 5) Chief Human Resource officer.
The organizational culture refers to a system of shared which are held by the members that separate or make this organization different from other organization. This process of sharing the meanings is actually the paths that are followed by them in order to characterize the organization’s value. The word organization is an illustrative word that mainly stays concern with how employees perceive the characteristic of organization culture (Madan and Jain, 2017). The culture is basically defined as a specific process for sharing meanings which can be expected that people who vary from a different background or different levels in the organization will be able to explain the organizational term in a similar way. It has been noticed that people get affected by the culture where or in which they live. Therefore, when an individual seems to be working for any organization with a secure establishment culture over there they will be taught about behavior, values, and norms, etc. which will be needed for the organization.
It has seen that ultra tech cement has become the largest cement company in India. The production of the cement has increased at a compound annual growth rate. India has a vast potential for its infrastructure. And it has the capacity to hold rank among the biggest and renowned cement companies (Maheshwari and BCET, 2019). It is estimated that by the end of 2025 it will grab the position or the rank between 1 to 3. Now seeing the recent rather current position of the leaders is in cement production. Ultra – tech cement has been noticed as a successful cement company and grabs a rank globally. The ultra – tech cement sector is seen to be expected to witness for the positive growth in India with high demands. After analyzing further report it has been noticed the southern part demands the maximum order for the cement which is expected to increase more in the future.
Fig: Organizational structure of Ultratech
(Source: The Official Board, 2020)
The perceived impact that organizational structure and culture have upon the ways in which leaders, managers, and employees behave in these companies
The organizational structure and culture of the companies have a huge impact on the company’s leaders, managers, and employees. It has a direct impact on the company’s overall output such as sales, profit, recruiting effort, workplace culture, and many others. A company that has a great working environment attracts large numbers of recruits. This is a great advantage for the company. This helps the company to select the talented employees. Apart from the employee’s recruitment, the proper environment also attracts other large companies that may work together. This will increase the business with the company (Ali et al., 2018). The organizational structure and culture of the company also affect the productivity of the employee. The organization structure and culture can act as a motivation for the employee to give a productive result. The proper culture of the company can have a competitive environment and are broadly communicated and strengthened. This type of culture gives value to the employee which provides them the control over their jobs. This helps them to achieve a higher level of outcome.
The organization structure and culture allow the employee to develop. The companies can offer promotions, career development training, etc. to the deserving employee. This can also help in improving the overall performance of the employees. The strong organization structure and culture have an impact on the employees as well as on the company. In multinational and public sector companies such as Honda Motors and Ultratech cement have excellent employee communication medium. Communication is very important to have an effective outcome. Companies with good communication practices help the employee to present their ideas more efficiently. These practices in the company make the employee feel that they are heard. Good communication practices help the company to increase the participation and creativity of the employee. These public sectors and multinational companies also give value to their employee and ensure their safety. These cultures can empower the development of the employee as well as of the organization.
Large multinational and public sector companies implement training programs for their employees for the development of the organization. These training programs help an employee to focus on their goals. This helps in improving the productivity of the company. With the help of these training programs, the employee’s confidence level is increased. Employees are advised to be result-oriented to get the required outcome. This program helps in making clear objectives, guidelines, and goals of the organization or organization. Employees keep proper communication in the organization to create a bigger community (Hallowell et al., 2016). The company tries to promote the performance level of the employee by providing them motivation, profit schemes, incentives, etc. Having a better organizational environment helps in supporting the companies with its mission. Apart from training programs have the company should also encourage a flexible environment. This motivates the employee to increase participation and creativity in the projects.
Flexibility in the working environment provides a high level of independence to the employee. This also helps in improving the trust between the workers. This also affects the productivity level of the employee. The flexibility in the working environment reduced stress and also increases job satisfaction in the employee of the organization (Nicholson et al., 2018). The organization structure and culture of the organization also has an impact on the ethics of the working environment. Ethics is very important in maintaining good relationships between the suppliers and the stakeholders. Business ethics in the organization helps in making the right decisions and applications. To improve the performance and motivation level among the employee it is important to have a good ethical environment. Many organization uses mentoring and coaching of the employee to increase the efficiency in performing the task. This mentoring and coaching also help in self-improvement among the employee.
|Description||The political factors that Honda motors might closely examine before stepping in a particular market (Fern Fort University, 2020). There is a threat of military incursion as well as corruption level. The government does meddling in Auto Manufacturers. The political solidity and significance of Auto Manufacturers are vital. Logical property security is needed.
|The economic aspects that Honda Motors must think about while carrying out PESTLE analysis are the business cycle stage, unemployment rate, interest rates, discretionary income and increment rate.
|The social aspects that management of Honda Motors must research for PESTLE analysis are demographics as well as population’s skill level, class and power structure, and hierarchy in the society, culture, leisure interests, education standard, and education level in the Honda Motors.
|The technological aspect includes the current technological growth of Honda Motor oppositions, the effect on expense structure in a major industry, rate of diffusion of technology, the impact of technology on product contribution and effect on worth chain composition in the Consumer Goods segment (Free PESTEL Analysis, 2020).
|The environmental aspects that must be considered are weather, recycling, endangered species, climate change, and support for renewable energy.
|The legal aspects are discrimination law, employment law, data protection, anti-trust law and health, and protection law.
|Description||The cost of cement is basically controlled by the power tariffs, royalty, coal rates, cess on limestone, railways tariffs and freight. Interestingly, all these prices are controlled by the government.
|The export division of the industry is believed to develop again because of different structural projects that are being accepted worldwide and as keeping up the quality high will endure more and more clients all around the world and even in the country too.
|In India, cement industries are of two types, organized and unorganized. The organized segment includes the famous cement producing organizations whereas the chief distributors of the unorganized segment are the local and regional cement manufacturing units.
|Cement business has made great paces in technological improvement and integration of recent technology (Managementparadise.com, 2020). Currently, 93% of the total capacity in the business is based on modern technology.
|By the PESTLE analysis, it is found that the environmental aspects immensely influenced the Ultratech. As cement factories are very damaging for the atmosphere causing loads of pollution and are damaging to the health of people, thus this proves that is not good for the environment. So the factories are all made to be built on the outskirts of the city, where there is no population or the rate of the population is very low.
Ali, S.S., Kaur, R. and Jaramillo, A.B., 2018. An assessment of green supply chain framework in Indian automobile industry using interpretive structural modelling and its validation using MICMAC analysis. International Journal of Services and Operations Management, 30(3), pp.318-356.
Dasgupta, R., 2017. Behavioral Implications of Risk-Return Associations: An Application of Prospect Theory on CNX NIFTY Companies. Australasian Accounting, Business and Finance Journal, 11(3), pp.103-126.
Fern Fort University. (2020). Honda Motor Co., Ltd. PESTEL / PEST & Environment Analysis[Strategy]. Available at: http://fernfortuniversity.com/term-papers/pestel/nyse4/682-honda-motor-co—ltd-.php.
Free PESTEL Analysis. (2020). PESTEL/PESTLE Analysis of Honda. Available at: https://freepestelanalysis.com/pestelpestle-analysis-of-honda/.
GUMNANI, R., 2018. AN ANALYSIS ON FACTOR INFLUENCING BUYING BEHAVIOR OF THE CONSUMER.
Hallowell, R., Bowen, D. and Knoop, C.I., 2016. THE Airlines, the Walt Disney SUCCESS Company, Wal-Mart, and USAA (among others) is frequently attributed in no small degree to their corporate cultures. These companies have built and maintained organizational cultures in which everyone is focused on delivering high customer value, including service, and individuals behave accordingly. The culture influences how employees behave, which, in turn, shapes the value that customers receive, in part through the thousands of daily encounters between employees …. Readings and Cases in International Human Resource Management, p.73.
Madan, M. and Jain, E., 2017. Impact of organizational culture & climate on managerial effectiveness: An empirical study. Delhi Business Review, 16(2), pp.47-57.
Maheshwari, R. and BCET, D., 2019. Comparison of Bonding Behaviour of Bamboo Reinforcement in Concrete Beam using Different Bonding Material. International Journal of Engineering Science, 21936.
Managementparadise.com. (2020). Pest Analysis On Cement Industry | Management Paradise. Available at: http://www.managementparadise.com/forums/principles-management-p-o-m/208710-pest-analysis-cement-industry.html.
Nicholson, M., Smith, A.C., Stewart, B. and Hoye, R., 2018. Sport management: Principles and applications. Routledge.
Pratikno, R.V., 2019. The Stronger Impact of National Culture over Organizational Culture on Supply Chain Operations. Verity: Jurnal Ilmiah Hubungan Internasional (International Relations Journal), 10(20), pp.1-13.
The Official Board. (2020). Org Chart Honda Motor. Available at: https://www.theofficialboard.com/org-chart/honda-motor.
The Official Board. (2020). Org Chart UltraTech Cement. Available at: https://www.theofficialboard.com/org-chart/ultratech-cement.
Vyncke, F., Van Hove, L. and Brengman, M., 2019. Cultural congruence of Websites: conscious, unconscious or coinciden
Academic Research Writing Arm of Global Research Services.