Emotions
Carlos Ghosn understood that Nissan employees were predominantly Japanese nationals who had a different perception of management. Ghosn had an interest in understanding how Nissan employees viewed social, cultural, and personal competencies. For example, social competencies that influence employees’ interrelationships implied a lack of proper communication channels (Millikin & Fu, 2005).
In this regard, Ghosn made his presence among junior and mid-level managers known by socializing with them. This was against the company’s culture of manager-employee interactions. From this perspective, Ghosn prioritizes intuition and empathy among employees who developed an interest in understanding others. In this regard, employee development and self-awareness prompted people to communicate freely without fear.
From Nissan’s employees, Ghosn understood that leadership and teamwork followed an ineffective channel of communication that allowed senior managers, the elderly, and educated the privileges of making decisions. From this context, Ghosn motivated junior employees and included them as members of the cross-functional team (Millikin & Fu, 2005). This strategy was instrumental in creating bonds among employees who positively influence each other without intimidation.
Also, Ghosn diffused the previous communication channels that promoted departmental anonymity. This was done by understanding departmental policies protected by respective managers and consequently prioritizing collective company goals. Since Nissan senior and mid-level managers existed by heading operations and protecting their careers, Ghosn influenced them to become change catalysts among the employees.
Nissan employees’ competencies were questionable before Ghosn became the Chief Executive Officer (COO). This predicament was initiated by a lack of self-awareness, regulation, and motivation. Initially, Nissan employees did not conduct self-assessment since they were shelved from accountability by senior and mid-level managers (Millikin & Fu, 2005). Supervisors and mid-level managers had low confidence during decision-making processes.
In this regard, Ghosn ensured that personal contribution during the decision-making process was appreciated through cross-functional teams’ activities. This made employees with various capabilities and competencies stand out among the rest — consequently, this increased confidence among employees who felt appreciated. Also, Ghosn ensured that senior and mid-level managers were accountable through pre-determined goals.
This gave employees independence and flexibility of executing responsibilities in a bid to realize personal and organizational goals. Also, employees became open to ideas by adapting other people to contribute to developing and adapting innovations. On the other hand, Ghosn promoted employee commitment in realizing organizational goals through promotions and other rewards (Millikin & Fu, 2005). This increased optimism among employees who now consulted each other in a bid to pursue a common goal.
Cross-functional teams
Ghosn insisted on using cross-functional teams for various purposes. To establish change at Nissan, Ghosn had to use employees in achieving the same. This was to be done using cross-functional teams (CFTs) that drew members from various departments. The nine CFTs with ten members were to initialize Nissan revival plan and subsequent new company culture (Millikin & Fu, 2005).
The CFTs were fundamental in improving communication in the company. In this regard, high ranking managers were to establish communication with mid-level managers. This developed was to be replicated across company structures as a matter of understanding company issues. From the CFTs, Ghosn expected managers and employees to make recommendations about existing problems. Therefore, CFTs were to acts as decision-making forums instead of using external consultants for the same.
From Nissan’s case study, it is evident that motivation was low before the establishment of the CFTs. In this context, CFTs are credited with fostering motivation, innovation, and employee relationship. In additional, CFTs improved horizontal communication across the organization. Fundamentally, an employee gains a sense of ownership and responsibility in making organizational changes. To employees, such improvements are viewed as career achievements.
Moreover, Ghosn perceived CFTs as integral in protecting Japan’s cloture within the company. In this regard, Ghosn used the CFTs to achieve the most critical elements of Japan’s culture, such as resilience, competitiveness, and collectiveness. Japan’s culture is maintained through CFT’s leaders, who play a critical role in influencing other employees to embrace radical organizational changes (Millikin & Fu, 2005).
An element of critical thinking is achieved among managers and CFTs members who are obliged to be responsible for their decisions and resolutions. The CFTs role as an oversight body for a revival plan implies the significance in monitoring and effecting improvement. Also, this oversight role of the CFTs encouraged self-assessment among employees, managers, and the organization. This shows the impact of CFTs concerning responsibility and standard measures of success.
It is imperative that any plan of change provides an opportunity for managers and employees to experience challenges of learning from a different perspective. Ghosn ensured that such experiences had a positive impact on managers who viewed the automobile industry from a different perspective.
For example, Nissan managers changed their perception about the government taking responsibility to bail financial crumbling companies. Nissan managers and employees embraced new practices and used profitability as the standard measure for competitiveness.
Sharing of skills and perspectives are the core objectives of CFTs. At Nissan, Ghosn attributes harnessing of diversity in culture, skills, age, and competence in solving company problems. Gathering valuable data through CFTs as a source of information, as well as a discovery platform, is necessary for reducing departmental redundancy.
Also, CFTs ensures continued partnership among stakeholders, such as suppliers and customers, is maintained. The fundamental principle behind CFTs is to engage many stakeholders as possible. This is to ensure that the success of Nissan’s revival plan is guaranteed through a consensus before its implementation.
Conclusion
As a COO of a company undergoing financial challenges, I would seek to understand the employees’ emotional reaction to existing problems. In this regard, I intend to understand whether the employees are using any problem-solving mechanisms about the problem. From this perspective, I will require a leadership structure that has the same views of instilling change in the organization. This is intended to instill hope and motivation among the employees.
I have decided to use team-building activities like sports to encourage horizontal communication across organizational structures. In a bid to understand organizational problems, I have noted employees are not motivated in their work. This can be evidenced by the lack of proper communication structures in the organization, low productivity, and increased employee turnover. However, I have initialized a plan that ensures decision-making processes are developed from CFTs before they are finalized by a committee of experts.
This is to ensure employees feel appreciated in the company. As the company COO, I have authorized an open-door communication policy to ensure employees get friendly with the management. Also, a reward system that promotes employees through promotions and monetary has been established. The reward system is to improve employee productivity and realization of the company goals.
Reference
Millikin, J. P & Fu, D. (2005). The global leadership of Carlos Ghosn at Nissan. Thunderbird International Business Review, 47(1), 121-137.