Thursday, December 12, 2013

Nissan Pins Revival on Leadership Trio

Auto Maker Says Recent Changes Will Allow It to Spot Problems Earlier

Nissan has struggled with weak profits and recently sought to restructure their management team.  The blame for their drop in profits has been linked to poor constitution of levels of management. Executives, in the past, have been responsible for overseeing multiple regions abroad.  This has led to issues for several reasons. First of all, one individual supervising various regions is unable to access problems and develop a resolution in a timely manner.  If one problem isn’t resolved adequately, there exists a slew to follow.  Secondly, managing several areas reduces performance level. As issues rise within one region of operations, executives devote time to eliminating conflict in that particular area, and time needed to improve quality and performance in other areas are limited.  This only adds to the cycle of chaos.  Management restructure may also develop better relations with those having direct insight of the issues.  Issues occurring on the ground level may not be heard correctly, in enough time, or at all, by superiors. Negative impacts may occur as a consequence.  As pressure flows from top to bottom, misunderstanding and miscommunication widens the gap between executives and employees. This strains relations and openness to receive new concepts, procedures, and policies necessary for advancing products and ultimately profits.   Nissan has decided to split regions among executives, so that each is accountable for managing less geographical regions.  An executive mentioned in the article that each region has its own dynamics.  This must be taken strongly into consideration because altering dynamics requires different needs.  Domestic functions will be different than in foreign sectors.  This is vital for improvement in production and profit.  Executives may be surprised at how well operations will flow after re-structuring the right needs to the right individuals.  The article unveils a question declining management as the problem source and proposing whether Nissan is producing what consumers want to buy?  They’ve joined the green team by producing the Leaf, an electric car.  The support to go green is high in demand and consumers are pushing the same in as many areas of production and service as possible.  It seems as though, it would be smart for Nissan to move into such venture.  Over the next fiscal year we will better understand the true problem-management, product, or both.

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