Discuss about the Organizational Behavior and Management by Legend of Carlos Ghosn.
Organizational behavior is one of the most important aspects of a business organization and it plays a vital role in determining the business pattern of the organization and the growth of the organization largely depends on the organizational behavior. Moreover, the organizational behavior and organizational culture are shared values and a belief that governs the behavioral pattern of the people of the organization and leaders of the organizations are mainly responsible for building the organizational behavioral model. In this context, Carlos Ghosen is a remarkable example. Carlos Ghosn is brilliant throughout his career. A man of highest standards he tried to bridge the gap between employees and the top management to form a unique collaboration. Moreover, it not only ensures job satisfaction among the employees but also end up in creating products, which are perfect for the market thereby creating the product to dominate the market and end up being profitable for the company (Atanasova-Krasteva, 2015). Carlos Ghosn is a man of many talents. He uses to speak in five languages which seem instrumental in driving his subordinates and the employees to work freely under him. It is sure that many of his decisions have led to the condition of political turmoil, but his actions are always firm and to the point so that enabling the company to move a notch higher in its regards. Carlos Ghosn started his career as a factory worker in Michelin and moved to top rung slowly and steadily. As an executive and later as a profound team member of the high level of management he has been able to implement the standards and trade rules he has learned on his way to top (Appelbaum et al., 2015). Carlos Ghosn as a top rung executive has an eye to see the strength and weaknesses of a particular person. He always loves to push people to cross the limits so that his people always succeed to achieve the goals that are considered a boundary. As a result, people would usually see themselves doing things which are considered impossible by themselves and other people. Carlos Ghosn always set his priorities and standards in front of the organization (Bond, Cooper and Sutherland, 2010). He is the chief architect of some major operational functions of key areas of his company. Apart from this, he is a patient listener and listens to anybody speech regarding company’s behalf. A through a family man, Carlos Ghosn always prefers to leave office work at bay before going home, and this attitude becomes a reflection on his leadership skills. He always inundated on the formula of taking failures as the pillars of success. He was very much progressive in his belief and very much confident on what he was doing as an executive for the best interest of his company and employees. He tried to enable his interest in culture and cultural debates to the truest sense inside his organization thereby reducing loss cycle and making Nissan profitable after a lot of years (Sum Chau and Witcher, 2008). Carlos Ghosn has always been instrumental in replicating his success of his previous company and creating a particular brand image for the enterprise which can be used in the long run by the firm in the view-finder of profits and growth.
Analysis of the organizational culture at Nissan and changes made
Carlos Ghosn is considered the super driver of organizational skills. His profound interest beyond geographical barriers and implementation of different styles of work has led him in creating a path of success for all the companies he has worked on.
Before Carlos Ghosn joined Nissan, the company was considered a disillusioned company. No proper work coordination, sticking to the unforeseen beliefs and design techniques, which were not suited for business thus, led the Japanese giant to the point of disruption. Talks were already on with American automotive giant Chrysler for the buyout of the company, but when negotiations knock down through, Renault came to the forefront (Durand and Sebag, 2005). Renault purchased the company stake in 1999, and Carlos Ghosn was considered one of the top executives who had been the beneficiary tool for Renault's enviable market position in European and world market played a pivotal role in taking over the company. The idea was criticized with some negative responses. The conservative Japanese, well-cultured people rose out questions Carlos Ghosen, and they wondered how a French national can resurrect their business (Santos and Gonçalves, 2012). Although the result was legendary, Carlos Ghosn had to carve out a lot of permutations and combinations to create an enviable market position in the form of market share for the company. The market leader at that time for the Japanese market was Toyota, and everything done by Nissan gets replicated against the benchmark set by Toyota. Carlos Ghosn changed that theory. He stressed on the belief that Nissan was an independent automaker and from now whatever Nissan is going to design would have Nissan, not Toyota stamp in it (Fuchs and Edwards, 2011). Before his regime, Nissan's design team used to work in a boring format paying no interest to the designing of the vehicles and there was not any focus on customer satisfaction and derivation. Carlos Ghosn came in and created an extended design team with the help of recruitments of outside designers which could excite customers. This decision resulted in recognition of the company as an innovator of designer products and best car design for the market segment. The company started finding a place of supremacy in a market which is destroyed by them and also begun to offer some resistance in the form of competition to Toyota (Ghosn, 2005). The company started to design cars using common platform of Nissan and Renault which made cost reduction much more efficiently. Carlos Ghosn enjoys great media attention, and he speaks to the media with utter confidence and self-belief. This attitude can also obtain media backlash and loss regarding market share, but Carlos Ghosn never lets that happen. He divided the company into different segments and sponsors which would give him ample amount of time to engage in the hitherto activities and running of the business functions. This rule of segmentation was not present in pre-Carlos Ghosn regime (Ghosn and Nueno Iniesta, 2012). Every department was given responsibility to take a final decision, which would not only make the company end up being profitable but also ensure steady growth in the future market.
When Carlos Ghosn joined Nissan, the company was in a disillusioned format. Nissan does not have any focus on profit making. The rule was clearly evident of the fact that out of 43 models Nissan is marketing in the Japanese market; only four are profitable and succeeded in the market capture. Moreover, this led to a declination of profit for the company for straight eight years. The company did not have the matrix of customer satisfaction (Huczynski and Buchanan, 2013). They had little or no regard for the client which resulted in steady market fall. The Japanese car model was low cost in nature, but the efficiency return was also little. The previous management of Nissan was also not presented with the need of urgency. The company was usually performing with its boring format at that effect was prevalent in the market domination. Furthermore, Nissan was dominated by peoples from only one culture, and no transversal was present. Another vital issue of Nissan was the salary structure of the employees, which states the greater years of experience resulting in the most significant amount of wages for the employee (?kinci, 2014). All these factors led to the fast decline of the company. Carlos Ghosn regime is a perfect collaboration of every given segment to the perfect coordination. When Carlos Ghosn joined Nissan, he brought along certain French people and executive who would be instrumental in making the company a success. Carlos Ghosn is very much active in avoided the advent of groupies based on particular clan and geographical location. He managed to keep all these people under one roof thereby the unique ways of solving a difficult situation for different groups at different times came in handy (Kapoor, 2008). Carlos Ghosn has been succeeded in changing the entire psychology of the company and its employees. He always prefers the fact of solving problems in the simplest possible format. Even when in times of a complicated situation Carlos Ghosn would address the situation in the simplest ways. Carlos Ghosn is not only capable but also an excellent mentor. He laid his head on the block, and the job on the line was thereby creating the effectiveness to run a company with the highest regard. The company has thrived under his regime because Carlos Ghosn is interested in listening to everybody given a suggestion patiently (Lutz Allen, Smith and Da Silva, 2013). Although it was Carlos Ghosn who went ahead and took all the decisions himself still the clarity he imposed made him take a right thing for the employees and the company. Carlos Ghosn is a free spirit. He never spoke and decided on anything, which could have possible twin effect. Transparency, consistency, and simplicity are three areas which have helped Nissan took the market chair it enjoys today, and all this have been effective because of Carlos Ghosn. He is the frontrunner of making transparent decisions even in adverse situations like staff layoffs, which could levy unrest in the company (Nissan and Niroomand, 2012). He always preached on behalf of his clean belief of consistency, which helped his company and its employees and the executive body to adhere to the methods applied to him in the form of guidelines. Once employees got consistent with their performance, the automaker's performance is front of the market and become regular too. Simplicity is another format applied by Carlos Ghosn as he always believes in taking life in the simplest form. Even in times of professional and other management hazards and rising of complex situations, Carlos Ghosn would make decisions based on simple slices (Ahmed et al., 2015). All these factors combine to take Nissan to the skyrocketing position it enjoys in the form of market domination. Nissan became the most profitable company under Carlos Ghosn regime, and these factors attribute to the highest regard of running the business in a format envied by other. Everyone wanted a slice of Carlos Ghosn and his ideas because of the innovation he showed in his path of creating the top bracket for Nissan.
Before Renault bought Nissan and Carlos Ghosn entered the Japanese market, Nissan was suffering havoc doldrums in the form of market declinations. However, the company being publicized as the number two automaker in Japan just beyond Toyota but the company was sustaining consecutive losses for consecutive eight years. The reason can be in the form of various factors (Aksoy et al., 2014). Loss of focus on profit brought a sharp decline in profit in the automotive industry can contribute to the fact that the market was not particularly responsive on the products that Nissan was manufacturing. There were only 4 out of the 43 models, which were produced by Nissan got popularity amongst the target audiences. That led to the declination in market demand as well as the profitability of the company and the market share of the company was continually declining. The executives did not take urgent steps in opposition to the loss. Although profits were hard to come by Nissan, managers were more inclined on taking a boring approach towards business and productivity. The officials imposed on findings and learning from the mistakes they had been doing (Barmeyer and Mayrhofer, 2009). This lack of urgency was gradually leading to market dominance by other companies. The Japanese market is small yet very competitive in nature. So the lackluster approach towards business was driving a fast and steady decline in the form of profit and market dominance of the company in front of the market. Loss of focus from the customers was another factor attributing to the cause. Nissan had been reliant on benchmarks created by Toyota is the Japanese market, and the company was more prone in replicating the formula (Cui, 2015). In this process, the company was paying little and even no regard to the customers of the organization. They were continuing creating products which were all the same tried and tested. The company was more interested in creating products which were low cost. However, the low cost has to be supported with the high form of efficiency. That factor was missing from the products produced by Nissan. The situation led to utmost customer dissatisfaction and the steady decline of market shares, and profitability of the company (Durand and Sebag, 2005). Another controlling factor prior to Carlos Ghosn involvement in the action was in the form of silos existence, which was the result of the culture of the company. Intermixing of ideas and techniques was not prevalent in Nissan, and these helped in addressing a particular issue in the same tried and tested approach, which might not be right for the organization. Another reason of the huge market loss of Nissan was in the form of lack of vision. Nissan executives were little or not interested in carving the path to future. So they did not resort to innovation, which remains an essential ingredient of success in the future market (Gupta and Banerjee, 2013). All these factors pushed Nissan degrade in front of the market and invoked serious threat in the form of market declination and even bankruptcy and this manner reducing profitability from the given spheres of the Japanese market.
Once Carlos Ghosn entered the company with the help of Renault acquisition over Nissan he set some precedence’s to explain a vision of the enterprise. The first thing that was required for the company was reducing the number of losses and makes the company profitable. Carlos Ghosn was firm on the belief that he was capable of creating the path of safer future for Nissan. Reduction of production was the first factor that needs addressing (Horowitz, 2009). Carlos Ghosn made layoffs which were necessary for the company and which would reduce the substantial cost to the enterprise. Reduction of facilities was also an important factor to be considered. 24 platforms got used before Carlos Ghosn entered the loss-making company and he immediately reduced the number to 15 and which are common platforms and utilize by both Nissan and Renault to manufacture and assemble their cars. The number of suppliers and partners instrumental in running the company are also reduced to cut costs incurred by the enterprise. Another step taken by Carlos Ghosn was the sale of outperforming assets (Matsudaira, 2010). The Nissan revival plan by Carlos Ghosn is much deeper than this general study. Carlos Ghosn went ahead and laid foundations to recruiting people who came up with the vast amount of examples and can motivate people in working for the company. Carlos Ghosn further assured that all this diversities in the form of people and culture do not make things in groups. Rather they worked under one leadership and one unit bringing in a vision of solving issues met by the company in different ways. That helped the company in addressing all associated problems with various solutions. Carlos Ghosn is always ready to push people beyond the confinements of boundaries. He always believed in the capabilities of an individual and urged people to attain a level of success deemed impossible at one stage by the employees (Mencl et al., 2012). This situation helped the company gain outstanding contribution from the employees thereby creating a preferred path to success. Carlos Ghosn also led lots of stress on customers' requirements. He formed design teams with designers from different companies who could bring vast amount changes on the table. Once customers start recognizing the products, Nissan is back on top of the game once again. Carlos Ghosn has the positive vision of carving a path to the future. Because he is not living in a void filled with taboo he can take decisions in his favor to create an enviable market position. These decisions made by Carlos Ghosn helped him to become the legend (Simmons and Striley, 2013). Furthermore, the ideas, which brought complete changes in the functionality and performance of the company he brought along, are used by many organizations across the globe. Carlos Ghosn and his ideas helped Nissan create and dominate the market position that the firm enjoys today in Japanese and world market.
Carlos Ghosn was a real leader. A through the family man he used to give ample amount of time to the household and children. He is one person to avoid the mixing of professional and personal factors of life. This quality is seen in his leadership style. From his early days in tire maker giant Michelin, he carved the first path of personal success along with success for the company (Sinha, 2008). He always imbibed on the principle of unity in diversity amongst his employees. While staying in a tougher market of North America, he is always studying the practical ethics and standards of the major American automakers. These learning have helped him to run the outfits of Renault and later the entire company of Nissan in future.
The truest feature of Carlos Ghosn style of work is that he is completely at ease with everyone around. A company worker would be of some comfort in front of him as well the vice president of the enterprise. The situation helped Carlos Ghosn interact with ease with everybody thereby reducing job dissatisfaction (Solansky, 2008). Once employees are completely at ease with their boss, they can work without apprehended pressure which resulted in reaching abnormal targets achieved by Carlos Ghosn through the help of his employees leading to the growth in market share and profitability of the company. Another aspect of Carlos Ghosn’s leadership is the understanding of different culture. Before he joined, Nissan trade experts have particular skeptic attitude of whether Carlos Ghosn could work in the company in the Japanese way. Carlos Ghosn paid lots of importance to the Japanese culture and Japanese way of doing business but also added different preservatives of other different cultures he has enacted before (Stahl and Brannen, 2013). The step helped him create a unique proposition and innovate business idea where the company is at ease to solve issues with various alternatives. Under the leadership of Carlos Ghosn Nissan has worked as one unit combining different cultures to get the best possible result. The steps helped Nissan attain the level and market reputation it enjoyed today and helped Nissan capture the bigger world market with much effect. The delegation of duties and responsibilities to subordinates was another great feature of Carlos Ghosn leadership (Taha, Mahfouz and Arafa, 2008). He went ahead and divided the top executives into different teams and sponsors with various capabilities and requirements. Carlos Ghosn is influential in viewing the capabilities of a person, and he tried to push the person beyond impossible. When the teams got divided Carlos Ghosn subjected them to different tasks which were thought impossible by others at times but they succeeded in reaching a target successfully. However, under Carlos Ghosn, the teams at Nissan performed those impossible tasks enabling highest standards for the company. Nissan became the most profitable organization under the leadership of Carlos Ghosn, and this factor is one of the most redundant factors considered when analyzing the legends of Carlos Ghosn business methods and applications. Another great feature of Carlos Ghosn remains in the handling of media (Thomas and Bendoly, 2009). Carlos Ghosn has been media savvy from his early days and his peers let him enjoy that to effect. When Carlos Ghosn entered the Japanese territory, he addressed the first skeptic attitude of Japanese media and their adversaries using the media fraternity to the greatest effect. One of the biggest quality of Carlos Ghosn remains that he is always true in what he is saying. That helped him get a prominent position in the company and a person of interest in the media. He wants himself to be considered as regular citizens in Japan as this can be found in the ways he is handling the media (Xiao and Eastmure, 2014). Carlos Ghosn has been able to create a leadership style which is not only consistent but also coherent in nature. The steps taken by Carlos Ghosn helped him to attain impossible targets, which he set for himself to change the face of the organization. Nissan was bleeding blood before he came on and the automotive company becomes the most profitable company under his regime. Only a real leader like Carlos Ghosn can create something like that. His abilities to slice a complex situation in simplest parts for solving helped him and his employees get control over the situation. The mixture of different class and cultures and ethnicities helped Carlos Ghosn to mitigate risk to greater effects. He is firm in his ordeals as a leader. ‘Failures are pillars of success, and one has to learn from criticism’ remains the motto of his life (Thomas and Bendoly, 2009). Carlos Ghosn has been able to imbibe that sense in its people. Therefore, the employees used to take every harsh criticism as a tool to enhance their performance in future. Nissan as well as other companies where Carlos Ghosn worked thrived because of these leadership qualities.
Carlos Ghosn is a man of many talents. He started his career as a factory worker in Michelin and moved to top rung slowly and steadily. As an executive and later as a profound team member of the high level of management he has been able to implement the standards and trade rules he has learned on his way to the top. When Carlos Ghosn joined Nissan, the company was in a disillusioned format (Wood, 2010). The company does not have any focus on profit making. The first thing that was needed at that time was reducing the number of losses and makes the company profitable. Carlos Ghosn was firm on the belief that he was capable of creating the path of safer future for Nissan. He always preferred the fact of solving problems in the simplest possible form, and this remains as an application tool for Nissan. Reduction of production was the first factor that needs addressing. Carlos Ghosn made layoffs which are necessary for the company and which would reduce the substantial cost to the enterprise. Reduction of facilities was also an important factor to be considered. Carlos Ghosn further assured that all this diversities in the form of people and culture do not make things in groups. Rather they worked under one leadership and one unit bringing in a vision of solving issues met by the company in different ways. That helped the company in addressing all involved problems with various solutions. Carlos Ghosn is a real leader, a through a family man as he used to give ample amount of time to the household and children (Xiao and Eastmure, 2014). These qualities of to his leadership styles and traits help him in accomplishing this remarkable success. Furthermore, all these factors helped him become the legend, which he is right now.
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