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Essay: Hyundai Company Employees

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Hyundai Company Employees

Hyundai Company Employees

COMPANY REVIEW – HYUNDAI

PROBLEM STATEMENT

(Hyundai Motor Case Studies, 2007) Korea-based Hyundai Automotive Group is a global company with many subsidiaries and it sells motor vehicles throughout the world. The company was having problems in communicating with its intermediaries. The internal communication mechanism completely faltered when 100,000 users placed a heavy demand on the group’s server system, employees struggled with outdated collaboration software, and developers took a long time to create new applications. Internal communication model at Hyundai is outdated and is the problem.

PROBLEM EXPLANATION

Hyundai Motor Company is one of the big export houses exporting to more than 193 countries worldwide. Its subsidiary Kia Motors, headquartered in Seoul, Korea, was the major contributor to exports. The procedure of internal communication started with order enquiry and ended at order delivery. The customer places an order at Hyundai subsidiary, which is communicated to the headquarters and the spare parts are then transported to the subsidiary and the personnel in the subsidiary assemble the parts and deliver the products. This methodology was running smooth but as the customer base increased, the internal communication experienced major problems.

Information got overloaded and the server communicating between Hyundai and its subsidiary often crashed. This caused mishap and confusion inside the organization and there was conflict between the departments. As a result, the order processing became stagnant and the production was badly affected. Finally, the sales came down drastically and a lot of customers were dissatisfied to the core due to the problem. The internal communication model was under heavy scanner and needed a replacement.

INTRODUCTION

In this essay, the various current approaches to internal communication are discussed. Then the organizations internal communication system is analyzed towards attaining competitive advantage. Then finally the areas of improvement in the system are discussed. Finally the paper is concluded by developing a costing implementation plan.

CURRENT APPROACHES TO INTERNAL COMMUNICATION:

Dr.C.B.Guptha, (2008) has included the following as current approaches:

Formal channels

Intranets

Intranet is the popular approach to internal communication.

E-Mail

Newsletter

Periodic Presentations by the Boss

Open House or Town Hall Sessions and even

Good old Team Briefings or Staff Magazines, Notices and Posters.

All can form part of the mix of internal communications. What about the famous internal memo or memorandum to give it the official title. It is a short brief message to another member of the same organization. Typically such memos today are sent by e-mail.

FORMAL COMMUNICATION:

In much of the organization the communication is formal. Communication is acting as channel between the superior and the subordinates. This communication type takes the following forms:

Downward communication:

It flows in the direction of the superior to subordinate. These communications are medium through which the superior. The superior directs the efforts of his subordinates and defines the goals of the organization and the sub-group. The superior tells the subordinates what is expected of them and administers reward and punishment. There can be several media of downward communication such as written orders, posters, company periodical and handbook.

Upward communication:

Communication which flows from the subordinate to superior will come under this category. These communications generally act as feedback. They enable the management to know how the downward communication is understood and carried out.

Horizontal communication:

These are known as lateral or cross-wise communications. They refer to the communication between the subordinates on the same level of the organization. Lateral communication avoids the much slower procedure of directing communications through a common superior.

External communication:

These are the communications with the external agencies. Like current and potential customers, government agencies, departments, trade unions.

P.C.Tripathi, P.N Reddy (2006, p 27)

INTERNAL COMMUNICATIONS PLAN AND STRATEGY – ANALYSIS

After analyzing the different forms of communication, a mixture of meetings and intranet can be used for effective internal communication.

The important information is conveyed to the respective head of the departments by convening a meeting. The information about the meeting like notice, agenda, minutes are intimated through Intranet. E.g: If a meeting has to take place on 12th September, then the computer administrator can use the intranet and circulate the notice and agenda of the meeting to all the head of the departments and get their acknowledgment. Than as per scheduled, the meeting can be convened and the information can be shared. After the meeting, the respective head of departments can convey the message to their department workers orally. A copy of the minutes of the meeting can be uploaded in the intranet so that all employees can have an idea about the meeting and the information.

This strategy can be implemented by adopting the following guidelines:

Heninz weitirich, (2004, p. 76)

Whether planning your internal or external communications efforts, it helps a great deal to develop a communications plan, either informally or formally. The internal communication task is to convey the messages appropriately. For the internal communication to be effective, a step by step approach is to be adopted.

1. The content of the message and its relevant importance is to be identified.

2. The target audience who will receive the message (e.g., consider clients, funders, community leaders, service providers, etc.)?

3. Now, depending upon the target audience, identify the best way or method to convey the message to the recipient.

4. There must be a check measure or a mechanism to ensure the message has reached the recipient. This is done by

  • Measuring Internal Communication Messages
  • Adding Standard Deviations
  • Converting Discrete Data to Continuous
  • Understanding Difference between Proportion and Number
  • Sampling Roll Goods during a Production Run

Formulating internal communication strategy, the following factors should be taken care of:

  • The purpose should be clear
  • The medium and timing are important.
  • Careful usage of Language is advised and is mandatory
  • The communication tools must be updated and recent.
  • The tolerance for ambiguity decreases when people are vulnerable.

Heninz weitirich, (2004, p. 85)

SPECIFIC AREAS FOR IMPROVEMENT IN INTERNAL COMMUNICATION:

Problems with bad internal communication system at Hyundai motors are

Short-term impact

  • Spread of misinformation – This is a serious issue as the requirements of the customer change due to this and ultimately, the customer is dissatisfied
  • Erosion of employee trust and confidence – When the expectations of the customer are not met, the customer will lose confidence in the company and shift to other companies
  • Conflicts between employees and management – There will be dilemma in the instructions and employees will be left confused in following the instructions
  • Misinformed employees can make wrong decisions – When the instructions are tampered, eventually it will lead to poor decision making
  • Internal brand image suffers – As a result of poor decisions, the entire brand image will be affected and will have a bad name in the corporate

Long-term impact

  • Dissatisfaction among employees leads to higher attrition – When the employees are not properly informed, their results and performance will come down and eventually they will leave the organization
  • Lack of coherent and shared vision – There will be no unity and goal to achieve in the long term
  • Low employee morale results in lower productivity – The productivity feature comes down drastically as a result of the low employee participation
  • Impact on company’s stocks – The value of the company’s stocks will come down gradually and demand will be less for the shares
  • Organization’s external brand value suffers – The name of the company will be having a bad reputation among the customers, suppliers, stakeholders etc.

CONCLUSION

Internal communication is considered a vital tool for binding an organization, enhancing employee morale, promoting transparency and reducing attrition, while everybody understands and talks about the significance of internal communication, very few are able to manage it efficiently, and both the long-term and short-term fallout of ineffective internal communication can be damaging for an organization. Rumors are the starting point to disillusionment among employees to a gradual destruction of the company’s brand image and it may also lead to the slow death of the organization. Ineffective communication is the root cause of most internal problems being faced by a company often stems from.

The following are the business benefits of installing an internal communications system:

Internal communication system provides information and encourages sharing by driving and supporting the organization’s short-term and long-term goals and objectives, ensures that these initiatives are implemented and followed at a local level, ensures that knowledge-sharing and communication processes are part of the daily workflow across all functions of the business, helps drive ownership and shared engagement.

Implementing an intranet is the best solution to rectify the problem at Hyundai Motors. A sample costing plan for implementing the intranet is given under.

COSTING PLAN

S.No

Method

Timeline

Cost

1

Meeting

12th September 2008

$225

Planning

6th September 2008

$50

Organizing

7th September 2008

$50

Notice Print

8th September 2008

$75

Agenda

9th September 2008

$50

2

Intranet

10th September 2008

$50

Message formulation

10th September 2008

$20

Message Circulation

10th September 2008

$10

Message Posting (Minutes)

12th September 2008

$20

3

Electricity

$50

4

Computer Maintenance

$50

5

Staff Working Hours

3 days

$300

Total

$675.00

REFERENCES:

  • P.C.Tripathi, P.N Reddy “PRINCIPLES OF MANAGEMENT”, Third Edition, the McGraw-Hill companies.
  • Harold Koontz, Heninz weitirich, “ESSENTIALS OF MARKETING”, 5th Edition, the McGraw-Hill companies.
  • Dr.C.B.Guptha, “BUSINESS MANAGEMENT”, 5th Edition, Sultan Chand & Sons.
  • Heninz weitirich, “MANAGEMENT”, 11th Edition, the McGraw-Hill companies.
  • Hyundai Motor Case Studies. Available at: http://www.microsoft.com/casestudies/casestudy.aspx?casestudyid=49470#top
  • http://www.hyundai-motor.com/

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