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    1. QUESTION

     

    ‘Nissan’s Approach to Supplier Development’

    From Burnes, B. (2014) ‘Managing Change’ 6thed. pp.51-55

    Nissan’s Sunderland assembly plant is the most productive in Europe and produces almost one in every four cars built in the UK.  However, when it opted for a UK base in 1984, the company faced a major challenge in bringing its European suppliers up to the same standard as those in Japan. Nissan recognised that European – especially UK – component suppliers fell far short of Japanese standards of quality, reliability and cost. Measuring suppliers’ capabilities on a scale of 0 – 100, Nissan rated Japanese suppliers at 100, suppliers in mainland Europe at 80 and UK suppliers were rated at 65-70. Nissan were required by the European Union to produce cars which contained, by value, 80% of local content. Therefore, it needed to improve the capabilities of its European suppliers, if it was to maintain the quality and cost standards achieved by its plants in Japan. To this end, Nissan decided in 1987 to for a Supplier Development Team (SDT) based at its Sunderland plant. The aim of the SDT was and is to help suppliers to develop their business to the stage where they can meet Nissan’s present and future performance requirements. A similar function had been in operation for 15 years in Japan, and this was considered to be a suitable model for its UK operation.

    Initially, two engineers were sent to Japan for a nine-week training course. This training included extensive practice in undertaking improvement activities within Nissan’s Japanese suppliers. On their return, based on the techniques learnt in Japan, the engineers developed a ‘ten-day improvement’ activity for use with UK suppliers. Their aim was to establish an approach, which whilst achieving immediate productivity and quality improvements, would convince UK suppliers to adopt the Japanese approach to manufacturing. Consequently, though Nissan was concerned that the outcome of any improvement activity should be positive, its ultimate objective was for suppliers to recognise the value and benefits of adopting the Japanese approach, and to continue with it once the SDT had left.

    The SDT approach was officially launched in the UK in November 1988, and involved a group of 12 medium-sized suppliers. Since these small beginnings, the size of the SDT has grown, and it has become an established and important part of Nissan’s operations. It has worked with the majority of Nissan’s suppliers, and has established a reputation amongst them for its expertise and commitment. Though it originally concentrated on shop-floor improvement projects, which still form the core its work, it has provided a broader range of assistance, such as cost reduction initiatives, joint production development, supervisory training and strategic planning programmes. In essence, it offers a consultancy service to Nissan’s suppliers which is, normally, free of charge.

     

     

    The SDT in Action

    The SDT approach is to work co-operatively with suppliers to help them identify areas for improvement, and then to assist them to develop and monitor improvement plans. In particular, the SDT will train supplier personnel in quality and production improvement methods, and support supplier initiatives to improve production and reduce defects. The idea of free consultancy by an organisation such as Nissan sounds attractive, but suppliers can also perceive such an offer as either domineering or patronising. Nissan’s relations with its suppliers were and are very positive; however, given the history antagonism between customers and suppliers in the UK car industry, it tends to tread warily and prepare the ground carefully before offering assistance.

    Initial Approach

    Before undertaking the first improvement activity with a supplier, the SDT makes a presentation to the senior managers of the company concerned. This is because it regards senior manager commitment and understanding as an essential precondition for success. Unless this commitment is gained, the SDT cannot and does not proceed further. Though the approach is now well established among and valued by suppliers, in the early days of the SDT, some suppliers were sceptical and resistant to such an approach. Nevertheless, most suppliers respond favourably to the initial presentation.

    The ST’s standard presentation begins by describing what continuous improvement (Kaizen) is and the benefits it brings. The SDT then outlines a typical improvement activity, including the various tools and techniques used. The team stress that most improvement activities can be carried at little or no cost, provided that the employees working in the area concerned are involved in planning and making the necessary changes. If, after the presentation, senior managers are willing to proceed, the SDT briefs other staff and undertakes a factory assessment.

    The Factory Assessment

    The length of time devoted to a factory assessment varies, but typically takes a day. Assessments are not compulsory but most suppliers welcome an independent review of their operations, especially by a world-class company such as Nissan. The factory assessment does not form part of Nissan’s formal supplier assessment procedure and, therefore, is less threatening than might otherwise be the case. Factories are assessed under ten headings:

    • Company Policy
    • Quality Performance and Procedures
    • Delivery Control Methods and Performance Productivity
    • Equipment Maintenance Procedures
    • Stock Control
    • Production Process Development
    • Housekeeping (how clean and tidy the factory is)
    • Health and Safety
    • Employee Morale

     

    Each heading is scored out of five and the scores recorded on a factory assessment summary sheet. The assessment is then discussed with and explained to the supplier’s management. From the assessment, the supplier and the SDT can begin to identify areas of concern and possible targets for improvement. The SDT then proceeds to suggest how it might be of assistance and, if this is accepted, agrees an improvement project with the supplier.

     

    Improvement Activities

     

    Though the ten-day improvement activity offered by the SDT is based on the tools, techniques and experience of Nissan in Japan, it has been altered to meet the specific needs of its European suppliers (who are mainly based in the UK). Improvement activities usually include some or all of the following:

    • Reducing assembly time and improving methods
    • Reducing overhead costs-including reducing inventory and improving equipment availability
    • Reducing work-in process
    • Preventing defects
    • Improving productivity by reducing throughput times and introducing JiT scheduling

    As mentioned, most improvement activities are usually achieved at little or no cost to the supplier; however, the supplier does need to commit time and personnel to the activity. The improvement process revolves around a multi-functional team composed of the supplier’s own staff who are assisted by the SDT. The supplier’s team includes operators and supervisors from the production area concerned as well as maintenance, process engineering, quality and sometime administrative staff. The team is led by someone from the supplier. The SDT stress that the most important members of the team are shop-floor employees working on the process which is to be improved. Not only does this prevent change simply being imposed on those who will be directly affected by it, with all the scope for resentment and mistrust that this can cause, but it also ensures that the valuable knowledge of the shop-floor employee is utilised. Perhaps more importantly, it provides them with the skills and motivation to continue to improve the process and even after the SDT have ceased to be involved. An independent study (Lloyd et al, 1994) found that this approach led to greater commitment to the activity, and improved morale in the areas concerned. It also found that improvement activities helped to break down functional barriers, and assisted the development of greater co-operation and team spirit.

    Once the process or activity which is to be improved has been agreed, targets for the improvement are then established (e.g. reductions in lead time, improvements in quality). The supplier prepares the ground the ground for by briefing staff and making any necessary resources available, such as dedicated meeting room. If the improvement activity is likely to cause a disruption to production, a stock of components may be built up before the activity commences to compensate for this.

    Day One of the ten-day improvement activity is devoted to providing training for the supplier’s team. If it is the first time the supplier has been involved in such an activity, the SDT will take the lead in this. However, if the supplier has previous experience of SDT improvement activities, then a member of staff is expected to take the lead. The SDT sees it its prime purpose as ensuring that: everyone understands the concept of Kaizen; the procedures for the ten-day activity are clear; and the team becomes familiar with the tools and techniques for its task. In this latter respect, the most frequently-used tools are flow charts, work-flow diagrams, pareto charts, cause and effect (fish bone) diagrams, brainstorming and critical path analysis. Where necessary, these are reinforced and supplemented as the ten-day improvement activity develops.

    On Day Two of the improvement activity, the team splits into smaller groups to analyse and discuss the process to be improved. The groups use a combination of hard data, such as scrap rates, equipment down time and stock levels, and more subjective opinions, such as comments about layout, ease of use and the provision of information, to identify cause of waste and possible counter-measure. The SDT encourages the use of stop watches and even video cameras to assist the supplier’s team to analyse the process in question, though these can sometimes be viewed with suspicion by operators. Once the individual groups have completed their deliberations, they reconvene as a team. The team usually makes a flow diagram of the entire process in order that everyone can appreciate what is involved and agree the changes which will bring the best benefits. The data that has been collected by the groups is analysed by the entire team. To make this easier, it is ordered and analysed under a number of standard headings:

    1. Quality: Are quality problems due to material, process, design or training deficiencies?
    2. Technology: Is the equipment appropriate, well maintained and used correctly?
    3. Ease of Operation: Can work be made easier through ergonomic improvements such as eliminating the need to bend, or through modifications to the equipment?
    4. Layout: Does the layout of the process result in time delays or excessive work-in process?

    For each of the above categories, the team proceeds to identify Concerns, Causes and Counter-measures. Most suppliers’ teams find this a demanding approach. In the space of two days, not only do they have to learn new tools and techniques, but they also have to deploy these in a rigorous and constructive fashion. Nevertheless, by the end of the second day, teams have normally identified what the problems are, what is causing them and the measures necessary to correct them. Sometimes, the outcome is a recognition that existing equipment is inadequate for its task but it is more usually the case that the team comes up with a list of low cost/no cost changes which they can implement themselves. In some cases, other members of the supplier’s staff may be called in to discuss the feasibility of some of the ideas generated. However, in the main, the suppliers’ teams are usually capable of making their own judgements.

    Days Three to Eight of the improvement activity are spent implementing the agreed improvements. Though the SDT does come back on day six to observe progress and can be contacted for assistance at any time, the responsibility for this phase of the programme lies firmly with the supplier’s personnel. The changes they make may be small and simple, or may involve the re-arrangement of complete areas of a factory. Where feasible, the team makes the changes in conjunction with personnel in the area concerned. The changed process is then tested, re-analysed and, if necessary, fine-tuned. To minimise disruption, any major changes in layout tend to take place during the weekend which falls in the middle of the improvement activity.

    For Days Nine and Ten of the improvement activity, the SDT returns to help the team review what they have learnt and achieved and to ensure that all changes are fully documented. They also discuss outstanding issues and concerns, and potential future improvement projects. The final task is to prepare and deliver a presentation to the company’s senior manager describing the changes achieved and the benefits gained. Not only does this give staff the opportunity to show senior managers what they have achieved (and receive well-earned praise), but it also helps those unused to public speaking to develop their skills in this area.

     

    SUMMARY

    The SDT has come to be considered as a valuable resource by Nissan’s suppliers, and there is always a queue for its services. From the suppliers’ perspective, this is understandable. Improvement activities usually meet or exceed their targets. Productivity increases of 20 and 40% are quite common, as are similar improvements in quality and reductions in work-in process. From Nissan’s point of view, it is not the individual improvements per se which are important, but the ability of suppliers to carry on making improvements once the SDT presence is removed. For many, this is the case, and the individual improvement projects act as a catalyst to the development of continuous improvement both on and off the shop-floor. Nevertheless, this does not always occur, and some suppliers do appear to find difficulty sustaining and spreading the SDT philosophy which may affect their longer term position as a Nissan supplier. After all, Nissan is not a charity. It helps its suppliers to improve their competitiveness in order to improve to improve its own competitiveness. Therefore, it would misleading to believe that Nissan was in anyway ‘soft’ on suppliers. It promotes co-operative working with suppliers (and encourages suppliers to work co-operatively with their own staff) because it believes it makes sound business sense. Nissan is prepared to enter into log-term partnerships with its suppliers but suppliers must reciprocate by continuously improving their performance – not an easy task. As Sir Ian Gibson, Nissan’s former Managing Director, stated: ‘Co-operative supply chain relationships are not an easy option, as many imagine, but are considerably harder to implement than the traditional buyer-seller relationships’ (quoted in Burnes and Whittle, 1995:10).

     

    Questions

    1. Compare Nissan’s approach to performance improvement with that advocated by F. W. Taylor.
    2. What are the benefits of Nissan’s ‘bottom-up’ approach to shop-floor performance improvement compared with the benefits of Taylor’s approach?
    3. If Frederick Taylor’s perception of human beings is as ‘greedy robots’, what is Nissans?
    4. What are the implications of the Nissan approach for both managers and the managed?

     

    Background reading: C18OB textbook.

    Chapter 1; The Nature of Organisational Behaviour

    Chapter 2; Approaches to Organisations and Management

    Chapter 3; The Nature and Context of Organisations

     

     

 

Subject Employment Pages 19 Style APA

Answer

Taylor’s Theory on Performance Improvement

                Fredrick Wilson Taylor is renowned by scholars for developing scientific principles that improved work efficiency in the late 19th and early 20th centuries. Critical to the discussion is the fact that Fredrick developed the principles after acknowledging the role of the management and workers in performance improvement. For instance, Myrick (2012) reveals that Taylor based his scientific principles on four management duties and workers ability to obey directives from the management. Analogously, Blake and Mosley (2010) argue that Taylor based his scientific management principles on time study, functional foremanship, standardization of tools, bonuses for successful performance, and careful task allocation. It is notable that regardless of the view of different authors on the scientific principles, they all point to the four principles discussed by Myrick (2012). Specifically, the principles are scientific management, scientific training, cooperation with workers, and teamwork.

                It is important to note that the theory under discussion posits that each trait of workers responsibilities must be tested and examined thoroughly to establish the best method for handling specific tasks. As evidence, Wren (2011) argues that every worker’s duties should be planned by specifying what needs to be done and how it should be done. As a result, employers should invest time and money training and hiring employees instead of allowing workers to define how to handle their duties. As evidence, Taylor believes that allowing employees to manage their responsibilities would result in employees making inefficient choices that would cost an organization time and money. As mentioned earlier, Taylor’s scientific management principles involved employee training and scientific development. This implies that the theory inscribes to the philosophy of allowing workers to perform their duties based on strict adherence to how the duties were designed by the management.

                It is also important to note that the theory advocates for teamwork. As evidence, Blake and Mosley (2010) reveal that the goal for the principle is to ascertain a clear division of labor within an organization. Critical to the discussion is the fact that Taylor further asserts that the division of labor is a duty for the management. This implies that the management should supervise teamwork by assigning all members of the team responsibilities that best suit their abilities. Evidently, implementing Taylor’s scientific principles within an organization calls for change in organizational practices. As a result, Taylor warned managers of facing resistance for trying to implement organizational change abruptly. This owes to the reality that he cautioned managers by advising them to establish how to revolutionize habits and attitudes of the management before implementing changes. Based on scientific examination of best workers, Taylor proposes using a stopwatch to eliminate slow, false, and undesired movements.

                 It is important to discuss Taylor’s opinion on employee motivation because it explains why some scholars question whether “people are greedy robots with nothing to offer but their labor”. This owes to the reality that John argues that Taylor’s conception of human motivation is limited. Specifically, the concept posits that workers can only be motivated by monetary incentives. Further, the theory asserts that employees have limited ability to make informed decisions, which explains why the management should plan for all tasks within an organization. However, it should be noted that the theory in question was developed when most workers were uneducated immigrants with little knowledge in English. As a result, Taylor believed that such workers could not supervise other works efficiently, let alone manage their own responsibilities. This explains why the scholar advocated for developing scientific methods, establishing goals for workers, systems of rewards, and training employees.

Nissan’s Approach to Performance Improvement

                Nissan’s Sunderland plant is Europe’s most productive plant in the automotive industry. This owes to the fact that the plant produces almost one in every four cars built in England. Critical to the discussion is the fact that the organization sent some of its managers to Japan for training so that they could implement the best production strategies in England. As a result, the managers came back to England with the following strategy. First, the strategy requires that an employee working on the improvement process take the lead unless none of the employees has experience on the strategy implemented by the organization. Further, the improvement process requires employees to use tools such as Pareto charts, workflow diagrams, cause and effect diagrams, and critical path analysis. In simple terms, the approach used by Nissan appreciates the use of scientific principles for performance improvement.

                It is also important to note that the approach used by the organization in question embraces collaboration and teamwork. As evidence, the approach requires that all members who are going through the training split themselves into small groups where they will be required to work together. Further, the approach requires that employees use scientific tools in the performance improvement process. It is also important to highlight that process used in the organization motivate employees differently, which in turn allows them to improve their performance. Specifically, the approach motivates employees through appreciating their abilities, providing them with an effective working environment, allowing them time for a work life balance, and using attractive remuneration packages. This ensures that members of the organization are happy and productive, because it makes them look forward to working every day. It also ensures that performance improvement in the organization is continuous.

                The SDT has come to be considered as a valuable resource by Nissan’s suppliers, and there is always a queue for its services. From the suppliers’ perspective, this is understandable. Improvement activities usually meet or exceed their targets. Productivity increases of 20 and 40% are quite common, as are similar improvements in quality and reductions in work-in process. From Nissan’s point of view, it is not the individual improvements per se which are important, but the ability of suppliers to carry on making improvements once the SDT presence is removed. For many, this is the case, and the individual improvement projects act as a catalyst to the development of continuous improvement both on and off the shop floor. Nevertheless, this does not always occur, and some suppliers do appear to find difficulty sustaining and spreading the SDT philosophy, which may affect their longer-term position as a Nissan supplier. After all, Nissan is not a charity. It helps its suppliers to improve their competitiveness in order to improve to improve its own competitiveness. Therefore, it would misleading to believe that Nissan was in anyway ‘soft’ on suppliers. It promotes co-operative working with suppliers (and encourages suppliers to work co-operatively with their own staff) because it believes it makes sound business sense. Nissan is prepared to enter into log-term partnerships with its suppliers but suppliers must reciprocate by continuously improving their performance – not an easy task. As Sir Ian Gibson, Nissan’s former Managing Director, stated: ‘Co-operative supply chain relationships are not an easy option, as many imagine, but are considerably harder to implement than the traditional buyer-seller relationships’

Compare Nissan’s approach to performance improvement with that advocated by F. W. Taylor.

                Evidently, both approaches of performance improvement result in improvement in organizational productivity. As evidence, Verity (2012) argues that Taylor’s principle of scientific management is known to increase productivity when the approach is applied. It is because for Taylor proposes using a stopwatch to eliminate slow, false, and undesired movements. Similarly, the performance improvement approach implemented at Nissan also ensures that productivity within the organization. As evidence, implementing the Kaizen principle of management always results in a 20 percent to forty percent increase in productivity (Szwejczewski and Jones, 2012). However, it is notable that the performance improvement at Nissan is continuous while using Taylor principles of scientific management does not necessarily result in continuous improvement. This indicates that even though both approaches result in an increase in productivity, Nissan’s approach to scientific management, as opposed to Taylor’s principle, results in continuous increase in productivity.

                It is important to highlight that both approaches under discussion advocate using scientific tools to increase productivity.  For instance, Taylor’s principle reveals that each trait of workers responsibilities must be tested and examined thoroughly to establish the best method for handling specific tasks. In addition, Taylor advised using a watch to record the time taken by efficient workers to complete a specific task (Skrabec, 2012). The time recoded can then be used to train other workers, which indicates that the principles uphold the need of using scientific tools to increase organizational productivity. It is also notable that Nissan’s approach to performance improvement also upholds the idea of using scientific tools to increase organizational productivity. As evidence, the approach uses tools such as Pareto charts, workflow diagrams, cause and effect diagrams, and critical path analysis, which are scientific in nature. It follows that both approaches apply scientific tools to improve performance.

                It is clear that both approaches have similarities because they both result in organizational productivity and use scientific tools for the improvement. However, the approaches have differences. For example, Taylor’s approach of scientific management reveals that all employees must work by adhering to instructions from their managers. This owes to the reality that the principle requires managers to examine and develop tasks for every employee, which must be adhered to very closely. On the contrary, Nissan’s approach to scientific management requires that employees supervise themselves and only report to their managers about their individual performance. In addition, Taylor’s approach to scientific management indicates that employees can only motivated by monetary incentives. This opposes Nissan’s approach for motivating employees because the approach based on annual global reviews. This indicates that the two performance improvement approaches under discussion have similarities as well as differences.

Benefits of Nissan’s ‘bottom-up’ Approach to Shop-Floor Performance

What are the benefits of Nissan’s ‘bottom-up’ approach to shop-floor performance improvement compared with the benefits of Taylor’s approach?

                To begin with, Nissan’s ‘bottom-up’ approach involves employees in the performance improvement process. As evidence, the Nissan Motor Corporation Sustainability Report (2014) asserts that the organization believes that power originates from within the organization. Specifically, the organization implements performance improvement strategies by involving employees in the process. In fact, Bamber, Stanton, Bartram, and Ballardie (2014) reveal that most important people that contribute to the performance improvement process are shop-floor employees who work on the process that is being improved. In comparison, Taylor’s theory of performance improvement does not involve all stakeholders in the improvement process. This owes to the reality that Giannantonio (2011) argues that the management establishes all performance improvement strategies when Taylor’s scientific principles of performance improvement are used. It follows that Nissan’s bottom up approach to performance improvement appreciates all employees as resourceful members of organizations. As a result, it makes employees motivated to pursue their daily responsibilities just because they feel that they are part of the team.

                It is also important to note that Nissan’s ‘bottom-up’ approach to performance improvement is a continuous process that does not stop at any moment. This owes to the truth that the performance improvement strategy implemented by the organization is based on Kaizen, which stands for continuous improvement. Further, the approach has individual projects, but the aim of such individual projects is to ascertain continuous improvement on and off Shop floor. In contrast, Taylor’s principle of scientific management has no room for scientific improvement. This owes to the fact that the principle advocates for training and supervision. Specifically, the theory requires that manages establish the best methodologies for performing tasks, train their employees, then constantly supervise the workers to ensure that they perform according to how they were trained. This indicates that implementing Nissan’s approach to performance improvement is better than using Taylor’s theory of scientific management because the former ensures continuous organizational improvement.

                The approach used to motivate employees in the Nissan’s approach to performance improvement and Taylor’s scientific principles are different. According to the Nissan Motor Corporation Sustainability Report (2014), the organization motivates its employees according to global annual reviews. Further, Evangelopoulos (2011) reveals that the Kaizen approach used for performance improvement at the organization motivates employees, by appreciating their abilities, providing them with an effective working environment, allowing them time for a work life balance, and using attractive remuneration packages. As a result, employees at Nissan are fully motivated to achieve their best. In contrast, Taylor’s principle of scientific management asserts that the only way to motivate workers is using financial incentives. It follows that the principle disregards important aspects of employee motivation because it exclusively uses monetary incentives to motivate employees. Thus, the benefit of Nissan’s approach towards performance improvement, unlike Taylor’s theory, involves several aspects of employee motivation.

                Even though Nisan’s approach to performance improvement and Taylor’s principle to scientific management have different benefits, they also possess similar benefits. For example, both Taylor’s scientific management principles and Nissan approach to performance improvement result in productivity after either is implemented. As evidence, Kulesza, G. M, Weaver, and Friedman (2011) argue that Taylors approach to scientific improvement was sold to organizations because it improved productivity. This owes to the reality that the principle eliminated unnecessary movement, saved time, and increased employee motivation. Analogously, Nissan’s approach to performance improvement also increased productivity within the organization. It is because the approach implemented by the organization in question reduces defects, increases employee motivation, and cuts on the cost of production, which are major factors contributing to organizational improvement. Thus, there is sufficient evidence to deduce that both Nissan’s approach to performance improvement and Taylor scientific principles result in increased productivity.

If Frederick Taylor’s perception of human beings is as ‘greedy robots’, what is Nissans?

                It is evident that Taylor perceives human beings as robots owing to the nature of his theory. This owes to the reality that the theory could be interpreted to imply that it considers workers as people who cannot make their own thoughts. In simple terms, the theory points to the fact that human beings can only complete tasks by taking instructions. Critical to the discussion is the truth that such an interpretation emerges from the theory’s implication on the role of managers and employees. As evidence, Blake, and Mosley (2010) argue that managers have a duty of training their employees and supervising them to ensure that they work based on their training. This implies that employees can only work after receiving instructions from managers, which is a characteristic of robots. Above all, the theory argues that employees are only motivated by monetary incentives, yet employees are also motivated by dreams, passion, and social lives, which is not an element of robots.

                Taylor’s theory of performance improvement considers workers as robots, but not human beings, which was evident when Taylor trained employees at a pig iron plant. This owes to the reality that Taylor trained employees at the plant by asking them to sit when they are asked to sit and work when they are asked to work. According to Taylor, the employee who was given the instruction could not identify when to rest and when to work. This is a direct comparison of human beings to robots because robots cannot think for themselves and only rely on instructions from human beings. Critical to the discussion is the fact that Nissan’s approach to performance improvement is the direct opposite of Taylor’s principles of scientific management when it comes to the subject of human characteristics. This owes to the fact than Nissan’s approach to performance improvement includes aspects that appreciate humans as living people.

                For instance, the principle incorporates aspects such as work life balance as a tool for motivating workers. As evidence, the Nissan Motor Corporation Sustainability Report (2014) reveals that the organization motivates its employees by encouraging them to spend time on their social and communal responsibilities. Specifically, the organization acknowledges that employees are human beings who have families and communities that rely on them. Thus, the organization provides its employees with a working environment that can give time to employees so that they can handle their family and communal responsibilities. In addition, the organization’s approach to performance improvement acknowledges employees as people who can make decisions for themselves. It is because the approach used allows employees to participate in the performance improvement process, by thinking for themselves. Therefore, unlike Taylor’s principles of scientific management, Nissan’s approach to performance improvement acknowledges workers as people who have family and communal responsibilities.

Implications of Nissan’s approach to Mangers and the Managed

What are the implications of the Nissan approach for both managers and the managed?

                The approach used for performance improvement by Nissan has implications for both managers and the managed. For example, the approach used by the organization reduces the workload for managers by making them mentors instead of supervisors. As evidence, the approach does not require managers to design responsibilities for every employee, train, and supervise them. Instated the approach requires employees to participate in analyzing their own duties, and develop strategies for improving their performance (Nissan Motor Corporation Sustainability Report, 2015). Apparently, the approach lightens managers’ duty because it does not require managers to check on the responsibilities of every employee. On the contrary, the approach demands that employees report to their managers about their performance for mentorship. It is also notable that the approach does not require managers to supervise their employees continuously. In simple terms, Nissan’s approach to performance improvement reduces responsibilities for managers by eliminating their supervisory and trainers’ roles as managers.

                It is important that the approach used at the organization in question benefits the managed by allowing them not only to improve, but also to show case their skills to their seniors. Specifically, the approach requires members of the organization to work in teams, which improves their interpersonal skills. Further, the approach improves employee skills by training employees on analytical and scientific tools used to establish problems that face them in their daily obligations. This owes to the reality that the performance improvement process requires employees to use analytical skills such as timing, recording using cameras, and eliminating defects. As mentioned earlier, the approach also allows employees to show case their skills to their managers, because they are required to report the outcome of their analysis to their managers. This gives them an opportunity to boast about their abilities, which in turn boosts employee’s morale.     

 

 

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