Honda-Management and Technical Aspects

HONDAThe Power of Dreams

By-Devesh Soni

INTRODUCTION•Honda is a Japanese Multinational Corporation primarily known as a manufacturer of automobiles and motorcycles.

•Founded on 24th September, 1948 by SOICHIRO HONDA and TAKEO FUJISAWA.

Introduction

•Headquarters: Minato, Tokyo, Japan

How did Honda Start?

TYPE A-MODEL

Company Description

81%

12%

4% 3%HMC Sales Allocation

MotorcyclesAutomobilesPower ProductsOthers

• Automobiles• Motorcycles• Scooters • ATVs (All-terrain vehicle)• Electrical Generators • Water pumps• Lawn and Garden Equipments• Tillers• Outboard motors• Robotics• Jets,Jet Engines• Thin-film solar cells

Products

Management of HondaManagement involves coordinating & overseeing the work activities of others so that organizational goals can be accomplished efficiently and effectively.

1.Planning Honda develops flexible plans, where they anticipate possible problems and solutions to those problems. Honda involves it’s staff in different types of planning.

1. Product Planning 2. Business Planning

Honda develops many plans and then carries outextensive brainstorming sessions where they first set objectives and discuss ways to achieve those objectives.

Cont…

Organizing is a crucial function to facilitate completion of any plans. Honda placed a team of specialists for various centers across the world, who were assigned specific tasks to accomplish goals

Initially Soichiro Honda & Takeo Fujisawa used forceful personal leadership but later Mr. Takeo introduced “team leadership”.

Honda uses the “soft” approach where workers are put in complete control of machines. Human control is necessary where humans monitor what machines do.

2.Organizing

3.Leading

4.Controlling

Strategic ManagementStep 1: Identifying Honda’s current mission, goals and strategies 

Honda’s mission statement

“Maintaining a global viewpoint, we are dedicated to supplying

products of the highest quality, yet at a reasonable price for

worldwide customer satisfaction.”

Honda’s current goals

“Accelerate our effort to strengthen the core characteristics that make Honda unique to accomplish further growth “ part of speech by Honda’s president.

Another goal is to reduce total hydrocarbon emissions by developing “green” vehicles

Honda’s strategy

Honda’s current global strategy is to put cost-effective plants in areas that best

meet the needs of local customers.

Step 2: SWOT ANALYSIS

STRENGTH

• Innovation• Market

share leadership

• Strong brand equity

• Unique products

OPPORTUNITIES

• Emerging markets

• Expansion abroad

• Demand for “green” cars

WEAKNESS

• High cost structure

• They depend on international profits rather than domestic.

THREATS

• Economic slowdown

• External changes (govt., politics, taxes)

• Lower imports

Team & Individua

l Objectiv

e Set Out

Mid Year

Review

Annual Perform

ance Review

Review &

Individual

Communication

Summarised

Step 3: Formulate, implement strategies and evaluate results 

Annual Performance

Cycle

Human Resource ManagementHRM means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirement.

Honda company employs 1,81,876+ workers. Soichiro Honda had the clear aim and created a trustworthy atmosphere in the company.

His employees soon came to understand that poor performance would not be tolerated.

The Human Resource Managing Department at Honda is given specific instructions on how to employ the best possible workers.

The objective of managers is to build relationships in which workers would see themselves working with the manager, rather than working for a manager

Human resource management assume that if employees are happier at work, the production would increase. The owners treat others as equal and often work in a workshop with employees.

Cont…..

Employees – an asset of the organization

Motivating EmployeesMotivating the employees was one of the main objective of the human resource management at Honda.

Motivation can be defined as the process of arousing, directing, and maintaining behavior toward a goal.

Soichiro Honda placed human initiative and attention to all workers on the first place. He tried to create a better environment for his employees, attract specialists and motivate them to do their work in the best possible way.

Mr. Honda paid much attention to experimental work and did not accept attempts to control him or his corporation via the traditional caste system.

Mr. Honda understood that encouraging his worker’s personal development will bring him success in business. He instilled in his employees the drive to learn without fear of failure, having built the road to success.

Need for self actualisation

Esteem Need

Social needs

Security need

The physiological needs

Cont….

Managing Operations“Taking an innovative approach to develop new efficiencies in managing our operations through their services” said Mike Wallace, manager of Honda’s MRO purchasing.

An example of the way Honda manages operations is when they use tracking software to monitor when motors and other machinery go into service. This has brought significant cost savings to Honda, making Honda very efficient.

Assembly Lines

Managing change & innovation“In today’s competitive market, you must keep up with the latest technology, but more importantly you must take care of your customers." stated Honda’s managing director

Honda is keeping up with technology like creating “green” cars, and wants to maintain profits but however it’s main focus is to provide excellent customer service

Honda’s current situation•According to this article, Honda ranked #1 on ACEEE’s “greenest vehicles of 2010”

•ACEEE is the American council for an Energy Efficient Economy.

•This shows that Honda is doing it’s best to keep up with the current social trends, one of which is being “environmentally friendly”

•Honda is going “green” in order to satisfy the needs of those customers who are trying to reduce their carbon footprint on this earth.

•By producing such cars Honda is able to prove that it is a THOUGHTFUL ORGANIZATION.

•Honda Civic GX natural gas car earns the top spot for the seventh year straight.

Honda in IndiaHonda Cars India

Honda Motor Company 

Usha International

Honda Siel Cars India Ltd

JointVenture in Dec, 1995

Honda Motor

Company

Usha Internationa

lHonda Cars India Ltd (HCIL)

ModelsHonda

CityHonda Accord

Honda Civic

Honda Jazz

Honda Brio

Honda CRV

Honda Amaze

Honda Mobilio

Honda 2 Wheeler

Hero Grou

p

Honda Motor Company

Hero Honda

JointVenture 1984-98

Kinetic Engineering Limited

Honda

Motor

Company

Kinetic Honda

JointVenture 1984-2010

ModelsHonda CBR

Honda Activa

Honda Aviator

Honda Unicorn

Honda CB Twister

Honda Dazzler

Why is Honda Successful?

• Company's clean-burning CVCC engine created an automotive revolution, and its cars won a large share of the U.S. market.

• The longevity of how long the vehicle lasts

• The great resale value

• Great Performance Cars

References1. Google search engine, helped to surf for information about Honda

2. Management, VSP RAO

3. Human Resource & Personnel Management, K Aswathappa