ORGANISATION CULTURE IN MITSUBHISHI
Mitsubishi Motors recently announced that it lost $846 million for the fiscal year-nearly, tripple what had previously been expected. In contrast to competitors such as Honda and Daimler Chrysler, this major Japanese car manufacturer has serious problems, The Company Heavy reliance on weak trucks and bus markets in Asia and its inability to quickly respond to the hot demand for mini vans and sport utility vehicles have contributed to its financial losses. But the real culprit is the deeply rooted Mitsubishi culture. Its tradition based culture is better suited to the automobile industry that existed in the 1970s than the one that exists today.Katsuhico Kawasoe,Mitsubhishi Motors new president,is clearly a man on hot seat. He’s got to try to change the culture.
The automobile division of mitsubhishi Heavy industries is much like the rest of the company. it has cloistered itself from the real world of competetion.while other Japanese companies have broken from the country’s long held beliefs on the importance of tradition and history,Mitsubhishi continuous to move at its own pace. For instance, most other companies have discarded the notion of life time employment, realising it's no longer realist in a highly competitive world marketing place.Not Mitsubhishi. It continues, almost arrogantly, to do things it way. When the chairman of mitsubhishi heavy was asked about lying off people, He replied "Employment is more important then profits! We are not concerned with return on equity....If foreign investors don't see merit in our stock, they con sell it". Which, not suprisingly, they have!
A consultant who works with Mitsubhishi says the company is being held back by the lack of incentives and market pressure on management. In short, nobody is holding management accountble.When something goes wrong manager simple intone: it would be un-Japanese to fire anyone or to close plantes.But that is not stopping other...