ORGANIZATIONAL BEHAVIOUR

FINAL PROJECT
May,22,2019

Submitted by:
Adina Naeem
Ayesha Zia
Rimsha Khalid
4TH Semester
BS-BA

Submitted to:
Mr. Fayyaz Bherra

Quaid-i-Azam School of Management Sciences,

Quaid-i-Azam University,
Islamabad
 Acknowledgement
A work is never a work of an individual. We owe a sense of gratitude to the

intelligence and cooperation of those people who had been so easy to let me

understand what we needed from time to time for completion of this exclusive

project.

I want to express my special gratitude towards Mr. Fayyaz Bherra lecturer,

Organizational behavior, for giving us such a unique project.

Last but not the least we would like to forward my gratitude to all the people who

always endured us and stood by us and without whom we could not have been

envisaged the completion of our project.

 TABLE OF CONTENT

 Introduction

 Power Of Dream

 Statistical Analysis

 Corporate Social Responsibility (CSR)

 Honda business

 Organizational Chart Of Honda

 Honda Leadership Style

 Honda Management Policies

 Honda Management Style

 Employee Retention

 Diversity In Organization

 Pest Analysis Of Honda

 Strategy about R & D in Honda

 Recommendations
HONDA
Honda Motor Company, Japanese public multinational conglomerate corporation
primarily known as a manufacturer of automobiles, aircraft, motorcycles, and
power equipment.
Honda has been the world's largest motorcycle manufacturer since 1959, as well as
the world's largest manufacturer of internal combustion engines measured by
volume, producing more than 14 million internal combustion engines each
year.Honda became the second-largest Japanese automobile manufacturer in
2001. Honda was the eighth largest automobile manufacturer in the world in 2015.
Honda was the first Japanese automobile manufacturer to release a dedicated
luxury brand, Acura, in 1986.In 2013, Honda invested about 5.7% (US$6.8 billion)
of its revenues in research and development. Also in 2013, Honda became the first
Japanese automaker to be a net exporter from the United States, exporting 108,705
Honda and Acura models, while importing only 88,357.1

POWER OF DREAM:

The Power of Dreams" philosophy speaks to Honda's belief that drives the
company's R&D and diverse array of advanced-technology products, and to the
determination to bring them to market. This rejuvenated approach to overall brand
marketing is the sum of Honda's best thinking and could only come from the
company's years of design and innovation.

HONDA BUSINESS
 Auto mobiles
 Motorcycles
 Aircraft

1
https://en.wikipedia.org/wiki/Honda
 STATISTICAL ANALYSIS:

HONDA’S CORPORATE SOCIAL RESPONSIBILITY REPORT

Honda North America, Inc. – Corporate Social Responsibility Report FY
18 (ending March 30, 2018)
Honda seeks to be a company that society wants to exist, creating products and
technologies that improve the lives of people, while minimizing the
environmental impacts of our products and business operations to ensure a
sustainable future for society. Honda is committed to making positive
contributions to the communities where we live and do business; to socially
responsible business practices; and to the promotion of diversity in our
workforce and supply chain.
Here are details of our key initiatives in the areas of the environment, diversity,
community and safety for our fiscal year April 1, 2017-March 30, 2018 (FY
18).2

HONDA MOTORS ORGANIZATIONAL STRUCTURE

LEADERSHIP STYLE:

2
https://csr.honda.com/longform-content/hondas-corporate-social-responsibility-report/
Research has shown that Honda is an exemplary leader who has built his success
on ‘failures’. He believed ‘failures’ are essential for achieving the real success.
Persistence is the major characteristic feature of Honda. He had the ability to go
through one failure after the other and to stay the same person with the same
dreams and aspirations. Soichiro Honda is recognized as one of the most successful
mechanical engineering entrepreneurs since Henry Ford. Vision and recognition of
an opportunity is the hallmark of Honda and other leaders. Honda had a clear aim –
the factor that guided his corporation and brought it success. It was Honda’s
leadership and vision that made his corporation successful on a world scale.
Honda focused efforts and activities of a team for achieving the desired goal –
effective and successful team work. He set clear goals and everyone accepted
them. Honda was a good leader who was able to deal with all team work issues.
Although the employees called Honda ‘Mr. Thunder’ for his bursts of anger in
answer to their mistakes, they loved and respected him.3

MANAGEMENT POLICIES:
Information:

• To be on time and accuracy of information

• To develop a willingness to communicate with and listed to other and
respect their ideas
• To encourage open and candid discussions, feedback and sharing of
information among team members and department
• To ensure the flow of work harmoniously for effective operation

Time:

• To make the most effective use of time

• To approach our work on three key elements:
• SIMPLICITY: simplify the complex problem and grasp the essence of what
need to be done
• CONCENTRATION: focus resources and energy on the critical issue need
to reach important goal
• SPEED: rapid implementation to honor committed time

Cost consciousness:

3
www.articlesfactory.com/articles/education/analysis-of-hondas-leadership-style.html
 • To be constantly aware of impact of one action’s on cost and profit of
money
• To avoid wasteful expenditure
• To be observable visible and invisible trend within the inside and outside of
organization
• To strive for highest efficiencies in the development of financial resources of
company4

MANAGEMENT STYLE:

 To be constantly aware of impact of one action’s on cost and profit of

money.
 To avoid wasteful expenditure.
 To be observable visible and invisible trend within the inside and outside
of organization.
 To strive for highest efficiencies in the development of financial
resources of company.

EMPLOYEE RETENTION:

In the area of employee retention, the retention of Honda engineering

workforce, have seen the biggest improvement. Two or three years ago, the
leadership team was not doing a very good job of communicating and
developing relationships with their younger engineers. Attrition was close to
17 percent, meaning they were losing 17 percent of our manpower annually.
Now they are hovering around 6 percent and moving toward our goal of 3
percent. So, we have made incredible gains in the retention area, and those
gains impact every area of the operation. 5

HONDA DIVERSITY:

Honda says: “We don’t just encourage diversity. We’re built on it.”

https://www.google.com/search?q=honda+management+policies&source=lnms&tbm=isch&sa=X&ved=0ahUKEwi
Yjpe595LiAhVCJlAKHYa-ASgQ_AUIDigB&biw=1366&bih=651#imgrc=ykkQ1KMgIGhY1M:

https://static1.squarespace.com/static/5706860bd51cd45f7c903ef5/t/5707d9d0f699bbcfa158a4c5/14601323050
21/Honda+Case+Study+-+Full+Mike+Jett+Interview.pdf
 Sameness doesn’t work in a product line and it doesn’t work in a workforce.
That’s why from the beginning, Honda has strived to bring people from different
cultures, backgrounds, races, genders and sexual orientations together. It’s a
commitment that hasn’t just created better diversity. It’s created a better Honda.6

To ensure diversity in the organization , Honda has started various programs.

Honda supports a variety of programs aimed at advancing education and creating
experiences of discovery that help all young people – regardless of their culture,
race and creed – achieve their dreams.

 Honda Battle of the Bands

Now in its 15th year, the Honda Battle of the Bands (HBOB) celebrates
and supports the most prestigious marching bands from America’s
Historically Black Colleges and Universities (HBCU), and provides them
with a platform to share their unique blend of musicianship and
choreography with millions of fans.7

 Hispanic Scholarship Fund

Since 2003, Honda has partnered with the Hispanic Scholarship Fund to
help undergraduate Latino students achieve their dreams of attaining and
completing a college education.

 Honda Campus All-Star Challenge

The Honda Campus All-Star Challenge is an academic bowl for

HBCUs and one of Honda’s largest and longest running philanthropic
initiatives in the United States. Since 1989, the program has awarded
more than $8 million in grants to participating HBCUs.8

PESTEL ANALYSIS OF HONDA:

6
https://csr.honda.com/diversity/
7
https://csr.honda.com/diversity/programs-diversity/battle-of-the-bands/

8
https://csr.honda.com/diversity/programs-diversity/campus-all-star-challenge/
 Political Factors
In the UK, a very limited number of cars are being sold after the government
gave out its new proposal. This law would affect the sales of Honda, and
they would not be able to produce the number of cars like it used to
previously. Moreover, people in Europe have to pay a high amount of taxes
than anywhere in the world. Market prices, costless business and oil charges
allows to access customer to devote automobile. The stable political
environment will construct the modern standards and boosts the endowment.
Political factors include recruitment law, trade and domestic trade
administration and the taxation. Political factors will be influencing the
innovations directly. It means Honda needs to perform responsive to its
improvements in a safe manner.

 Economic Factors
Honda Company can easily dominate the economic factors if the trends are
clever. The exchange rate of the United Kingdom and Japan are not constant
always. Hence it affects the price of Honda’s cars. The rising income refers
to the consumer’s income being raised, hence leading to an increase in
purchasing power. Honda introduces new models of cars every year to go on
sale and keep up with this income rising. To cope up with the economic
problems that the world is facing, Honda is now launching more economical
and eco-friendly cars. Honda might suffer aloss in the coming years. Its
growth will limit because of the petrol consuming vehicles. However, the
company mainly relies on the exchange rate which needs to be stable
otherwise it will affect the price if automobiles.

 Social Factors
The social factors affecting the motor vehicle company involve the cultural
and demographic aspects of the external macro environment. People tend to
go for their own country’s car manufacturers instead of opting for imported
ones. Hence, Honda introduced new eco-friendly cars to change their
thinking. Honda deals in the English language to remove language barriers
and spread worldwide. Cars products in the UK are less expensive than
anywhere else in the world. Thus, consumers buy these products from
western countries more. All these factors affect the customer needs and size
of the potential markets.
  Technological Factors
The factors that affect Honda regarding technology show how the trend
helps in the business. In the modern world, people have started relying too
much on the GPS to look for the location they want to go to. So the Honda
manufacturers have included the Satellite Navigation System in new cars.
Honda is now manufacturing environmental friendly cars by providing fuel
economy, clean emissions, and ample torque. It is important to take safety
measures while advancing the technology. However, the company will
surely consider the fact of hybrid cars, which will benefit the users and
generate more sales. Honda has always been that company that is eager in
innovating technology and advancing in mobile technology.

 Legal Factors
Law restricts the production because of the environmental issues. However,
Governments laws have a wide impact on the Honda Company. Honda
needs to focus on its pricing policies, must propose the reduction on
vehicles, which helps to confront the opponents, and allows generating more
sales. The working hours in the UK are 8 hours daily, and the pay is high per
hour. The company may be affected due to the high wages of employees.
The government has issued a law saying all the workplace of the company
should be safe. They cope up with issues like reporting accidents, training,
and the safety equipment to ensure that its employees are secure.

 Environmental Factors
Car engines mainly rely on the climate changes. The efficient solution will
surely eliminate the situation of heated engines and will improve the
performance of cars. The prices of petroleum are increasing due to global
warming hence; Honda is producing eco-friendly cars like Honda Hybrid to
protect global warming. The UK has had a varying climate and weather in
the past years. The changes in temperature affect the engines of cars. It is
difficult to start a car engine in winters than it is in summers. So, Honda has
manufactured different engines for different regions to resolve this issue.9

9
marketingdawn.com/pestle-analysis-of-honda/
STRATEGY ABOUT R&D IN HONDA:

Value creation from an independent identity:

 In 1960, Honda spun off the research and development division from Honda
motor co., Ltd. As an independent entity with the founding of Honda R&D
co., Ltd.

 As expressed by words of Honda's founder soichiro Honda, “what i am

researching is not technology, but rather what people like,” the aim of
Honda's research is not just to research technologies but to also undertake
research that extends to people’s values.

 Honda R&D promotes wide-ranging in-house development that

encompasses products as well as technologies for raw materials and
elements.

Promoting open innovation that accelerates research & development in new

fields

 Honda has been striving to evolve mobility and the daily lives of people all
around the world as part of our 2030 Vision. This requires R&D in new
domains in addition to the existing motorcycle, automobile, power products
and aircraft domains.

 Honda is taking a proactive approach to open innovation, which encourages

strategic ties with innovative partners.

 To enable a swift response, Honda is embracing open innovation.

 Based on the concept of “AI × Data × Honda’s strengths,” we are working

toward Mono-zukuri (the art of making things) and Koto-zukuri (new
experiences drawn from the art of making things) that provide new value in
harmony with people as an extension of our manufacturing projects up until
now.

Opened R&D center X

  In April 2017, Honda established R&D Center X, which takes a non-
traditional approach to assume responsibility for R&D in “new value” areas
ahead of new challenges.

 R&D Center X will conduct R&D with a focus on long-term strategy in

consideration of Honda’s ideal image for 2030 and with 2050 as its starting
point.

 In robotics, one of Honda’s R&D domains, we aim to realize a robotics

society that will further highlight the inherent greatness of human beings in
areas that include autonomously operated machines and systems which is
necessary to power them.

 The Center has stated 3E (Empower, Experience, Empathy) as the concept

behind its R&D.

Demo day

 A “Demo Day” is held twice a year to introduce the latest technology trends
and technologies under development, and anyone from Honda who wishes to
participate can do so.

 Demo Days help to uncover the needs of engineers and researchers, provide
hands on experience and spread the culture of open innovation throughout
Honda.10

RECOMMENDATIONS:

 In order to increase the motivation among employees they should provide

incentives such as badges for employ of the month.

 To reduce employ turnover Honda should have strong organizational

culture. They can enforce this by holding annual seminars.

 In order to maintain strong customer relationship and get constructive

feedback they should create online questionnaires and chat rooms.

10
https://global.honda/about/sustainability/strategy/r-and-d-innovation-management.html
  The rules that had been set by Mr. Honda and Mr. Fujisaawa need to be
modified according to the changing times as Honda is becoming more
globalized.

 They should be able to adapt the different styles of management as each

country has its own management style.

QUESTIONNAIRE:

RESULT:

Overall the employees seemed satisfied as they had positive work experience as
they were encouraged, rewarded and valud by their supervisors. Moreover,
management gives importance to the suggestions of their employees which creates
positive work environment and positive image of the company.