Running head: OBJECTIVE SIX – CONSTRAINTS 1

Objective Six – Entry One: Constraints

Lily Michele Mouelet

McDaniel College OBJECTIVE SIX – ENTRY ONE: CONSTRAINTS 2

Objective Six – Entry One: Constraints

Human Resource Development (HRD) “is the framework for helping employees develop their personal and organizational skills, knowledge, and abilities” (Heathfield, 2016, para. 1). It involves training, development and organizational development. Every organization is confronted with internal or external constraints that can affect its ability to implement change.

When recommending new interventions, there is a great need to recognize these constraints and build strategies to limit their impact.

The objective of this entry is to demonstrate that I have applied and mastered the skills to recognize the constraints imposed by the legal, organizational, cultural, and social environments.

This is an educational entry supported by the NUMMI case study from my organizational theory and behavior class.

Relation to objective

The process of creating this artifact required me to work through many constraints imposed by NUMMI’s organizational, cultural, and social environments. These constraints were related to the cultural and legal environment as well as demographics. Through this artifact I have learned to identify these constraints and recommend strategies to minimize their impact.

With my knowledge of the theories of motivation, I can work to create an environment where employees stay focused and motivated in spite of the constraints. I will be able to bring value to any HR department by helping employees to stay motivated. I can implement policies that contributes to employee development and the accomplishment of their goals such as training and development plan, succession planning, open door policy, and employee recognition.

Summary of the artifact OBJECTIVE SIX – ENTRY ONE: CONSTRAINTS 3

The goal of this assignment was to analyze how New United Motor Manufacturing, Inc.

(NUMMI) succeeded in creating a viable organizational structure and increase its productivity despite the constraints impose by its environment. NUMMI was created from a joint venture between General Motors (GM) and Toyota. Toyota invested 100 million dollars in the GM-

Fremont plant whereas GM gave use of the Fremont plant. This happened in an economic context when the American car industry was declining, and Japanese companies like Toyota were entering the USA markets and thriving. GM-Fremont was closed due to lack of productivity. GM and Toyota were in the same industry: selling cars and trucks. Regarding the company structure, both GM and Toyota were highly bureaucratic, using standardized procedures in their production lines. Labor unions were present in both GM-Fremont and later

NUMMI. The GM-Fremont workforce was characterized by the following: the average age of their employees was in the forties; the average level of education was a high school diploma; it was a diverse environment with African Americans, Hispanics, females, males, and whites.

From this description, many constraints specific to NUMMI can be identified. At the creation of the joint venture, NUMMI inherited a unionized workforce in their forties. The work ethic was low, and the union activities were very disruptive. Absenteeism was high; employees were demotivated and lazy. The cultural environment was autocratic based on coercion where employees were ignored. The legal environment included dealing with a union and respecting union laws. The American automobile industry was declining and new Asian companies were entering the market and thriving. In such an environment, the Human Resources department had the responsibility to partner with business leaders in order to investigate the root cause of these issues and recommend valid interventions. OBJECTIVE SIX – ENTRY ONE: CONSTRAINTS 4

NUMMI was able to recognize the constraints in its environment and make decisions that positively impacted its productivity by giving employees the opportunity to express their ideas.

Many employees started making suggestions, and these suggestions were implemented for the most part. Absenteeism dropped from between 20% and 25% at the old GM-Fremont plant to 3% to 4% at NUMMI; participation rose from 26% to 96%, and the proportion of employees describing themselves as satisfied rose to more than 90% (Adler, 1993, p. 7).

Theoretical foundations

It is important to understand and apply the theories of motivation when dealing with a demotivated workforce. Also, these theories can be a tool to keep employees motivated, even in an environment that imposes many constraints.

Motivation can be defined “as the processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal” (Robbins and Judge, 1943, p. 202).

Many authors such as Abraham Maslow and Douglas McGregor researched the factors of motivation in the workplace. They have defined basic theories of motivation that are still taught in business schools today.

The first theory is the theory of hierarchy of needs by Abraham Maslow. According to this theory, there exists a pyramid hierarchy of needs that every human being needs to meet. The first type of need is physiological, and refers to basic needs like hunger, thirst, clothing and shelter. The second type is safety. The third type of need is social and refers to the need of belonging and being accepted in a social group. The fourth type of need is the need of esteem.

The fifth type of need is self-actualization, meaning the drive for accomplishment and self- fulfillment (Robbins and Judge, 1943, p. 203). For the individual to be motivated, his basic needs OBJECTIVE SIX – ENTRY ONE: CONSTRAINTS 5 need to be met first. After satisfying needs from a specific level, the individual will be motivated by the needs of the other level.

Theory X and Y from Douglas McGregor is the second motivation theory. “Douglas

McGregor proposed two distinct views of human beings: one basically negative, labeled Theory

X, and the other basically positive, labeled Theory Y” (Robbins and Judge, 1943, p. 204).

According to Theory X, managers view employees as lazy and reluctant to invest the effort. In order for them to be productive, management has to be coercive. However, managers in Theory

Y recognize that employees are willing to invest the work. It is therefore the responsibility of management to create an environment, rules, and policy that will encourage employees.

“McGregor himself believed Theory Y assumptions were more valid than Theory X. Therefore, he proposed such ideas as participative decision making, responsible and challenging jobs, and good group relations to maximize an employee’s job motivation” (Robbins and Judge, 1943, p.

204). This theory Y of motivation has been applied in my artifact with interventions like creating a new socialization process, a soft application of Taylor’s time and motion theory and empowering employees. Taylor’s theory involve time and motion study, standardized tools and procedures, and tasks (Locke, 1987, p. 14-15). NUMMI applied some of these principles but adapted them to the company’s values by empowering employees in job design.

The third theory of motivation is the Two Factors Theory by Frederick Herzberg.

According to this theory, there are two types of factors: motivation factors and hygiene factors.

Hygiene factors are necessary element that needs to be included in every job to avoid dissatisfaction. The presence of these factors does not tend to increase the employee’s motivation. These factors include “company policy and administration, supervision, and salary etc” (Robbins and Judge, 1943, p. 205). Motivation factors on the other hand refers to elements OBJECTIVE SIX – ENTRY ONE: CONSTRAINTS 6 that tends to increase the employee’s motivation such as “achievement, recognition, the work itself, responsibility advancement and growth” (Robbins and Judge, 1943, p. 206).

Importance to HR

As it relates to HR, all companies have to navigate in an environment full of legal, cultural, and social constraints. As human resources practitioners, we should be aware of that and find creative ways to overcome these limitations. In the HR profession, labor laws determine the restrictions imposed by the nation to employers when dealing with employees. HR professionals should know these laws and keep themselves informed when new regulations are added.

Additionally, HR practitioners should make sure to educate managers to respect these laws.

HR practitioners should also be aware of other type of constraints, especially economic constraints. This means understanding the implications of major economic up and downs on the company’s productivity. For example, a major economic downturn can have the effect of creating mass layoffs for employees. If HR professionals are able to forecast such events, they can adopt proactive measures and take relevant actions. Additionally, there are internal constraints that can be based on the location of the business or the composition of the workforce.

For example, in case the workforce is constituted of an ageing population, HR should focus on transfer of knowledge to younger employees.

Conclusion

Legal, social, and economic constraints are imposed on most companies. These constraints can be external or internal. Through the artifact I learned to identify the internal constraints the company was facing and how it affected the company’s productivity. To my opinion the best option to deal with these constraints was to apply the theories of motivation and OBJECTIVE SIX – ENTRY ONE: CONSTRAINTS 7 invest in employees’ recognition and development. This recommendation has shown itself successful by leading to an increase in productivity and a reduction of the turnover rate at

NUMMI. This is an example for many companies trying to decrease turnover and increase the overall motivation of their employees. The challenge for companies in the upcoming years will be to attract and retain talent. Finding creative ways to motivate employees will make the difference between successful teams and unsuccessful ones. OBJECTIVE SIX – ENTRY ONE: CONSTRAINTS 8

References

Adler, P. (1993, Jan-Feb). Time-and-motion regained. Harvard Business Review, pp. 1-29.

Heathfield, S. M. (2016, August 9). What is human resource development (HRD)? The Balance.

Retrieved from https://www.thebalance.com/what-is-human-resource-development-hrd-

1918142

Locke, E. A. (1982). The ideas of Frederick W. Taylor: an evaluation. Academy of Management

Review, pp. 15-16.

Robbins, S. P., & Judge, A. A. (1943). Essentials of organizational behavior (15th Edition ed.).

Pearson Education, Inc.