New United Motor Manufacturing, Inc Case Study
By: Xuân Quỳnh • January 13, 2017 • Case Study • 1,458 Words (6 Pages) • 1,914 Views
RMIT International University Vietnam
Bachelor of Commerce Program
Subject Code: | BUSM2301 |
Subject Name: | Organizational Behavior |
Title of Assignment: | Individual Paper |
Student name: | Nghiem Xuan Quynh |
Student Number: | S3579986 |
Teachers Name: | Mr. Sagi Mathew |
Group Number: | |
Assignment due date: | 4/12/2016 |
Date of Submission:
| 4/12/2016 |
Number of pages including this one: | |
Word Count:
| 1410 |
Introduction
New United Motor Manufacturing, Inc (NUMMI) is a 50/50 joint venture of the Fremont plant of General Motors (GM) and Japanese automakers - Toyota. The company was authorized after the GM’s shut down due to labor-management conflict. After the closing, GM wanted to investigate in building compact cars that can compete against the wide proportion of smaller imports. In addition, GM’s manager was interested in the production and management system of Toyota. On the other hand, Toyota’s objective was to produce automobiles and applied the Toyota Production System to the workers in America. As the result, NUMMI was established in 1984, 2 years after the closing.
With the entirely different management approach, the corporate entity had successfully created a motivational environment in the workplace for employees as well as enhances the performance of entire company. This essay will illustrate three different motivation frameworks including: Maslow’s hierarchy of needs theory, McClelland’s needs theory and Equity theory as well as evaluated the lessons learned from what company applied, while giving some recommendations for the manager toward NUMMI’s improvement.
Definition of Motivation
According to Srivastava( ), “ Motivation” is defined as one of the four essential drivers which disposed individual toward certain behavior or performance to achieve certain goal or task. Motivated people are not only obtained a higher level of invention but also promote higher productivity at a higher level of effectiveness.
Maslow’s hierarchy of needs theory
Maslow’s hierarchy of needs theory is the first theory that NUMMI applied in order to motivate their workers. The Maslow’s theory consists 5 stages of needs that divided into two: higher-order needs and lower-order needs. Higher-order needs contain Self-actualization and Esteem while Lower-order needs include Social, Safety and Physiological requirement. According to Patrick J. Montana, Bruce H. Charnov(), when one level of needs is assume to be achieved, it is effected people to be motivated to fulfill the next level and so on.
The first stage called Physiological needs are consisted the most essential needs in order to maintain life such as air, foods, water and sleep. In addition, when people are satisfied with their needs for survival, they are capable of working efficiency and increase the productivity ( Hamlett, C, n.d) . As the result, NUMMI provided a cafeteria in the workplace in order to achieved worker’s needs. After obtain mentioned needs, employees would generated to the next level which is Safety needs ( Zuhike,K, nd). In this level, worker would seek for protection and security to avoid physical injuries as well as leading to better performance and interaction with others( Hamlett, C, n.d). Therefore, the company provide a contract of “ A no-strike, no-layoff agreement” in order to build trust and make employees feel more secure.
The third stage in Lower-order needs is Social needs. This needs associated with a sense of love and belonging (D. Martin and K. Joomis, 2007). According to Caldwell C, team-based project is one of the motivation tools for workers to interact with others by exchanging their knowledge as well as creating family atmosphere in the workplace. In addition, NUMMI decided to form teams of four to five workers and the leader who guide the work and therefore, creating a strong connection in employee-manager relationship.
Level four of this theory describes the needs of feeling respect by getting recognized their accomplishment by others especially in the company. At NUMMI, workers are awarded bonuses based on their performances toward the jobs and productivity improvements and thus creating higher motivation.
According to Maslow’s theory, the last level is Self-actualization and also the hardest stage of hierarchy of needs. At this level, the employees are acquired to realize the personal potential and understand the needs for fulfillment. In other word, as Goldstein K said, “self-actualization is a driving life forces leading to the maximizing one abilities and determining the course of one’s life”.
McClelland’s needs theory
This theory is also known as “ Learned needs theory” which is consisted of three “learned” needs in order to motivated employees: the need for achievement, the need for affiliation and the need for power.
First, the characteristic of people who motivated by achievement needs are those who seek for challenging goal and work toward it to get recognized by the company (Napolitano G,2014) . These people are also enjoying receiving feedbacks on their achievement. At NUMMI, there was a system called “ Andon” that allow employees to stop and fix any problems during their production line. This action encourages workers to work their best while motivate them to determine the best product or work as their challenging goal to obtain.
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