Describe about the Issues and Solution by Honda Motors in China Market.
Analysis of organization and the countries
This essay is basically based on the problems faced by the company in the market. For the discussion, one country has been chosen. For the analysis, the company has been chosen named Honda Motors and country has been chosen named China. The issue with Honda Motors in china was that the worker of the company wanted their own union to whom they can tell their problem. Along with this, they wanted to increment in their salary and pay scale. Because of their demands, the production of the company was shut down and around 1700 workers were on the strike. This situation became very serious problem for the management of the company. Honda faced the shortage of workers for production and company also faced the loss in the sales and revenue. Along with this, this matter became the political matter which impacted the brand image of the company among the customers (Marketwired, 2008).
As per the contingency theory of the organizational behavior, the problem in the Honda motors was related to the pay scales. The company can use negotiation process to tackle the problem. Company should provide them the salary more than their average salary. The company can say to the employees to sign in the contract to ensure that they will not go on the strike again. As per social structure, the company Honda motors in a centralized company where the rules and policies are in a proper manner (BARBOZA, 2010). It has been observed that the china is not the destination of cheap labor so, the company decided to shut down the production of five units to tackle the situation. By the environmental theory of the organizational behavior, when the Honda Motors was facing this issue, it was the chance for the competitors to enjoy the monopoly. At that time, the company increased the wages of workers (Martín, 2010).
In case of the Honda Motors in China, the issue and problems were raised by the employees because they wanted to increase their salaries. The above discussed theories of the organizational behavior helped the company to tackle the problem. The theories help the company to maintain the respect of the workers to ensure them that they are the important part of the company’s growth. The management team of the company in china was able to use the skills and power by negotiating with the employee and their union. The management of the company ensured success with its skill and knowledge (FOSHAN, 2010).
BARBOZA, D., (2010). More Honda Labor Trouble in China. Retrieved on 6th October 2016 from https://www.nytimes.com/2010/06/10/business/global/10honda.html
FOSHAN, ( 2010). Strike breakers. Retrieved on 6th October 2016 from https://www.economist.com/node/16282233
Marketwired, (2008). Key Challenges and Issues facing the Motorcycles Market in China. Retrieved on 6th October 2016 from https://www.marketwired.com/press-release/key-challenges-and-issues-facing-the-motorcycles-market-in-china-871941.htm
Martín, J., (2010). China: Honda workers’ strike – the beginning of a new labour movement? Retrieved on 6th October 2016 from https://www.marxist.com/china-honda-workers-strike.html