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Management of Honda

Management involves coordinating & overseeing the work activities of others so that

organizational goals can be accomplished efficiently and effectively.


Hondas management has established the following goal for its organization. Maintaining a

global viewpoint, we are dedicated to supplying products of the highest quality, yet at a

reasonable price for worldwide customersatisfaction.

Honda develops flexible plans, where they anticipate possible problems and solutions to those

problems. Honda involves its staff in different types ofplanning.

1. Product Planning

2. Business Planning

Honda develops many plans and then carries out extensive brainstorming sessions where they

first set objectives and discuss ways to achieve those objectives.


Organizing is a crucial function to facilitate completion of any plans. Honda placed a team of

specialists for various centers across the world, who were assigned specific tasks to accomplish


Initially Soichiro Honda & Takeo Fujisawa used forceful personal leadership but later Mr. Takeo

introduced team leadership where the boardroom system was used.


Honda uses the soft approach where workers are put in complete control of machines.

Human control is necessary where humans monitor what machines do.

Strategic Management

Step 1: Identifying Hondas current mission, goals and strategies

Hondas mission statement

Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality,

yet at a reasonable price for worldwide customersatisfaction.

Hondas current goals

Accelerate our effort to strengthen the core characteristics that makeHonda unique to

accomplish further growth part of speech by Hondaspresident.

Another goal is to reduce total hydrocarbon emissions by developing green vehicles

Hondas strategy

Hondas current global strategy is to put cost-effective

plants in areas that best meet the needs of local customers

Step 2: Doing an external and internal analysis of Honda (SWOT)


1. Innovation

2. Market share leadership

3. Strong brand equity

4. Unique products

1. High cost structure

2. They depend on profits coming in internationally rather than domestic profits


1. Emerging markets

2. Expansion abroad

3. Demand for green Bikes


1. Economic slowdown

2. External changes

3. (government, politics, taxes)

4. Lower imports
Step 3: Formulate, implement strategies and evaluate results

Hondas Annual performance cycle helps them to formulate implement strategies and evaluate

Human Resource Management

HRM means employing people, developing their resources, utilizing, maintaining and

compensating their services in tune with the job and organizational requirement.

Honda company employs 181876 workers. Soichiro Honda had the clear aim and created a

trustworthy atmosphere in the company.

His employees soon came to understand that poor performance would not be tolerated. Due to

his anger the employees called him Mr. Thunder, but they loved him.

The Human Resource Managing Department at Honda is given specific instructions on how to

employ the best possible workers.

The objective of managers is to build relationships in which workers would see themselves

working with the manager, rather than working for a manager.

Human resource management assume that if employees are happier at work the production

would increase. The owners treat others as equal and often work in a workshop with

Motivating employees

Mr. Honda paid much attention to experimental work and did not accept attempts to

control him or his corporation via the traditional caste system.

Mr. Honda understood that encouraging his workers personal development, their wish for self-

actualization will bring him success in business. He instilled in his employees the drive to learn

without fear of failure, having built the road to success.

Managing Operations

Taking an innovative approach to develop new efficiencies in managing our operations

through their services said Mike Wallace, manager of Hondas MRO purchasing.

An example of the way Honda manages operations is when they use tracking software to

monitor when motors and other machinery go into service. This has brought significant cost

savings to Honda, making Honda very efficient.