QUESTION
HW for Organization Theory
Listen (or read the transcript) to This American Life, episode 561: NUMMI 2015, which can be found at the following link: http://www.thisamericanlife.org/radio-archives/episode/561/ nummi-2015 Drawing upon relevant theories from lectures, video lessons, and readings. You should clearly address the following question in your analysis: • What accounted for NUMMI’s success? Here are some guidelines and tips for your analysis: • Do not just restate case facts. Rather, you should use information from the case to support your analysis, which should be explicitly based upon theory learned from the course thus far. • Make sure you clearly define and explain specific concepts and frameworks. You may not use or search for any outside information.
Module 1 - 4 Strategy and Organization Effectiveness • Core competence • Contingency factors of Organic VS. Mechanistic design • Efficiency VS. Effectiveness• The competing values model considers multiple parts and goals of the organization simultaneously Organization Design • Control VS. Collaboration Vertical linkages Horizontal linkages • Design types Functional Divisional Geographic Matrix Outsourcing and virtual network Self-managing The External Environment • Defining the external environment The external environment Task VS. general environment • Environmental uncertainty and adaptation • Managing the internal environment Mergers and acquisitions Joint ventures Strategic partnerships Executive recruitment Public relations Changing the organization’s domain (environmental sectors) Political action Trade associations Module 5 - 8 The International Environment • Motivators for international expansion International expansion can be critical to a company’s growth. • Challenges to international expansion Competition Market access and local legitimacy • International strategy and design Globalization (standardization) VS. Multi-domestic (tailored to local needs) Organization design — should fit international strategy Intra- and inter- organizational Networks • Network Physical networks & Social networks Social capital • Network characteristics Tie strength: weak ties VS. strong ties Network cohesion • Inter- organizational relationships Resource dependence theory Collaborative networks Population ecology Institutionalism Technology and Organizations • The use of technology and “big data” analytics • Algorithms are most effective when used in concert with human decision-makers. • Control and Coordination Behavior controls vs. outcome controls Feedback control model Balanced scorecard • Knowledge management Tacit knowledge VS. codified knowledge Organization Life Cycle • Bureaucracy Max Weber and bureaucracy Organization size and bureaucracy • Authority Max Weber and authority Professionalism and control • Organizational life cycle Life cycle: entrepreneurial stage, collectivity stage, formalization stage, and elaboration stage Cause of organization decline: atrophy, vulnerability, and environmental decline and competition Stages of decline: blinded, inaction, faulty action, crisis, and dissolution
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| Subject | Business | Pages | 4 | Style | APA |
|---|
Answer
The New United Motor Manufacturing Inc.’s Success Factors
The New Motor Manufacturing Inc. (NUMMI) was mainly designed to enhance the productivity of the American workforce at General Motors (GM). Studies indicate that before the introduction of NUMMI, the workforce at the ancient GM Fremont Plant was unreliable and less productive (This American Life, 2015). Different individuals considered the workforce to be the worst. The workforce during that era before the introduction of NUMMI had a horrible reputation, often going on strike, and filing complaints as a result of sabotaging quality. This paper aims to discuss the role that NUMMI played in addressing these concerns and evaluate the factors that contributed to its success.
Various factors have contributed to the success of NUMMI. For instance, some individuals attribute that NUMMI’s achievements are as a result of its careful job-application screening procedure. However, one can ascertain that the organization's success originates from the development of a third culture that was neither Japanese nor American. The combination of these cultures enabled NUMMI to break out from the old conflict-ridden culture and begin a novel strategy that centred on the workforce activities (This American Life, 2015). It is noted that working and learning from the Japanese was a significant and life-changing form of training. According to NUMMI’s administrative department, Japanese assistance in training the workforce has been a substantial factor to the success of the company.
NUMMI's receptive atmosphere, in which diversities of opinions are valued and accepted, provides another essential ingredient to the success of the company. The joint adventure inherited a workforce of individuals who had known each other for many years. Thus, it was easy for them to understand each other as a result, enhance NUMMI’s productivity (This American Life, 2015).
Conclusively, NUMMI’s success was a result of the collaboration with the Japanese organization, who introduced new working procedures and policies that enhanced teamwork and staff productivity. Moreover, NUMMI’s workforce relationship plays a significant role in the organization's success. After the training sessions with the Japanese, NUMMI’s employees could speak proudly of the company’s diverse workforce, emphasizing that the diversities among them are a significant strength to the company, therefore, increasing the company's success.
References
This American Life. (2015). New Motor Manufacturing Inc. (NUMMI) 2015. Retrieved From http://www.thisamericanlife.org/radio-archives/espisode/561/nummi-2015.