Introduction

Honda Motor Company Limited, a public-listed company founded by Soichiro Honda and
Takeo Fujisawa on year 1948 (Honda, 2016) is currently being the worlds largest and top
motorcycle manufacturer worldwide. With technological innovation, they are able to improve
and create new products that brings convenient to customers. Also with the spirit to look from
customers point of view, products are produced at highest quality yet affordable. These are
among the reasons that make Honda company stands out from others and maintain the status
as top manufacturer in the world.

Management Approach Applied in Honda Motor Company Limited: Quantitative Approach

Honda Motor Co. Ltd. applied Total Quality Management (TQM) approach as the
managing method which makes Honda the leader in the automobile world.
TQM is an integrative philosophy of management that involves constant adjust from all
employees and all production aspects to improve the quality of products and processes that
creates long-term success through customer satisfaction. There are six elements which
include intense focus on the customers, concern for continual improvement, process focused,
improvement in the quality of everything the organization does, accurate measurement and
empowerment of employees. (Robbins, Coulter, 2014)
First, intense focus on the customers who interact with the organization internally and
externally. The priority Honda has is the customer satisfaction which drives them to create
and improve the products designs and functions. For example, Hondas market quality
enhancement system which collects customers feedback and report to the service
departments and to the R&D quality center to help in resolving problems and causes raised
from the customers and improving the affected products at the same time.

Image 1: Hondas Quality Enhancement System(Ahmed, 2013)

Next, the concern for continual improvement says that a product can be gradually improve
from time to time due to a better technological innovation and also higher product satisfaction
required by the customers. Honda conducts aggressive quality assurance steps that creates
new levels of enhanced quality of automobiles. Thus, with a 100% inspection within the
process, mass-production of a high quality product can be achieved.

Image 2:

The third aspect is the process focused where each process involved should be maintained
and standardized in order to maintain the outstanding quality of the product. Thus, Honda
established the Global Honda Quality Standard (G-HQS) in April 2005 (Ahmed, 2013) that
gathered all the knowledgeable ones to produce quality products and make preventions from
products recalls.

Improvement in the quality of everything the organization does involves the speed of how
fast the products delivered, sales and after-sales services the time to resolve the issues and the
like. Every process involved must be precise and well-conducted so that the final outcome
will be welly presented which creates efficiency and high satisfaction.
Next, accurate measurement can be applied especially for the recall system and other
measures. Although Honda assured 120 % product quality, sometimes there will still have
some defects or damages occurs which will come through the recall system. For the customer
side, Honda will determine the product issues, report the issue to the governmental authorities
in accordance with countries regulations, contact the affected owner and provide information
about how they can receive free repair. Internally, the R&D will find out the roots to the
problems, resolve the problem and creating prevention for further assurance.

Lastly, empowerment of employees where the employees get to speak out their ideas and
work out the solutions as they intent to. Honda appreciates their employees and tend to train
them to be leaders in improving quality So, Honda offers Honda QC Basic Course (HBC)
which provides necessary training on how to resolve the issues in their own departments.

Organisational Culture

Organisational culture is the shared values by the company and the employees that is
realize though actions and decisions, not by words only.
Hondas organisational culture, which they called as the Honda Philosophy is initiated by
the two founders, Soichiro Honda and Takeo Fujisawa. It is applied by the companies and
employees of Honda worldwide. It consists of fundamental beliefs, company principles and
management policies. (Ahmed, 2013)
First, there are two sub-elements for fundamental beliefs which are respect for the
individual and the three joys. Respect for the individual includes three aspects which are
initiative that is to think creatively and using own judgement for a solution but responsibility
is yourself, equality which is to give everyone the same opportunity to perform regardless of
races, genders and the like as well as mutual trust which is important to create a
knowledgeable and efficient society. While for the three joys are the joy of buying achieved
by customers through expectations and needs of the products, the joy of selling achieved
from the relationship developed between Honda products and customers as well as the joy of
creating when suppliers and associates get to involve in the full processes of creating the
products.
Next, the company principle which is to maintain an international viewpoint with the
determination to supply the products of highest quality yet at a reasonable price for customer
satisfaction.
Lastly, the management policies which is to hope that the employees always enjoy their
work which will motivate them to develop fresh ideas continuously from time to time. They
can exchange and improve their ideas through open communications with each other and
with the top employees. Thus, they will be ambitious and mindful on the value of research
and endeavour that results in harmonious work flow environment and also gradually
improvement on products quality.

Conclusion

There is always reasons behind a huge success of a company and Honda Motor Company
Limited is the perfect example.
First, Honda applied Total Quality Management approach that takes customers feedback
into account and from there, researches are done and thus increasing the product quality as
well as increasing the customer satisfaction level as well. This approach is useful as Honda is
getting customer satisfaction which motivates participation and teamwork of employees and
results in increasing profitability of the company.
Next, Honda philosophy provides a strategic direction to the company and to strive to be a
company society wants to exist. This is realise through providing the joy to customers for
product satisfaction and employees for job achievement and realisation of the ideas applied.
Also, to create products that has the highest standards in safety and environmental
performance which develops sustainable society.
All in all, Honda will be continued to be the worlds leading automobile company with the
application of TQM and Honda philosophy that keeps the employees and customers to be on
board with the company.

Reference List

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