UAE Nissan Company Analysis Essay

Nissan is a motor company whose origin is Japan. The country is famous for its car companies such as Toyota, Mitsubishi among others which are both effective and affordable. Nissan has a market control all over the world. Its main competitors are Japanese, European and American companies. These include Toyota, Mercedes and Ford respectively. The company has four main brands. These are the Infiniti, Nissan, NIMSO and Datsun. The company has also formed alliances with other makers of automobiles around the world. This essay examines such partnerships. It focuses specifically on Nissan in the United Arab Emirates. The essay describes how Nissan has managed to maintain its influence in the United Arab Emirates (UAE). It also focuses on Nissan’s organizational behavior. The company maintains an organizational structure which supports all its operations in the Middle East. The essay looks at certain literature about Nissan’s operations to determine its behavior in the East.

Nissan Company Influence in the UAE

Nissan is the sixth largest manufacturer and seller of automobiles in the world. This is after other manufacturers as sellers which are the Toyota Company, General Motors Company, Volkswagen Group of companies, Hyundai Motors and Ford according to statistics in 2013. In order to maintain international control of the market as well as manufacturing, the company has set up regional groups in all continents around the world. These groups deal with manufacturing as well as marketing in each continent. The Middle East is a major market of Nissan automobiles in the world. It is for a reason that the region is rich in oil with the population having more disposable income than most regions. Nissan has taken advantage of this and has strengthened its operations in the region. In order to examine the success of the company in the UAE, it is important to look at Nissan’s organizational structure in the UAE. This will give a representation of the region in terms of organizational behavior to promote the company’s success. Organizational behavior refers to human activities that an organization engages in to enhance its growth and success. This is both in the internal as well in the external environment.

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Literature Review

Robbins (2001) observes that organizational behavior studies human aspects in any organizational. It is for a reason that human aspects for an organization influence the organization’s structure both in the internal as well as the external environment. It is a link between human behavior and the organization. The study of organizational behavior is in two different categories. The first category examines the study of specific individuals and their role in the organization. This is the micro study of organizational behavior. The other part studies the specific behavior of a certain organizational in general. This is the micro study which generalizes organizational aspects to study the behavior. It is important to distinguish organizational behavior and organizational psychology. Organizational behavior refers to the actual human activities in an organization while organizational psychology refers to the causes of certain behavior. In order to determine the organizational behavior characteristics for this organization in the UAE, it is important to follow the guidelines in this study. The literature assists in establishing a starting point in reviewing Nissan’s organizational behavior in the UAE (Robbins, 2001).

Ichiro (2003) points out that there are two methods that one can use to study the organizational behavior of Nissan in the UAE. The first method involves the use of quantitative data. In this method, it is needful to focus on the data with specific analyses of different variables. It is important to specifically use inferential statistics whereby one uses the data to make inferences on the relationship between different variables. In quantitative methods, one can use the data available for Nissan Motor Company in UAE to calculate such constants as the ANOVE, the time series, the meta-analysis, regressions and other models at different levels. This is crucial in order to make important inferences about organizational behavior. The other necessary method of analysis is the use of qualitative data. In this method, one uses general inquiry into different aspects of the organization without necessarily focusing on the variables and mathematical data. The most important aspect of qualitative research is the content of the organization’s practices. This is through a focus on the material that the organization records as well as the behavior and cognitive characteristics such as team work and innovation. The method involves use of approaches such as ethnography, organization’s history, case analysis as well as a grounded theory approach. In order to examine organizational behavior for Nissan in the UAE, it is important to use both quantitative and qualitative research methods. This will examine Nissan’s history in the region to establish its organization’s structure (Ichiro, 2003).

Nissan (2002) gave a study which examines different characteristics of Nissan in the UAE to come up with the organizational characteristics. These include the behavior in the work place by the employees in the organization than harm or promote organizational objectives as well as the decision-making processes in the organization. The study uses descriptive, normative and prescriptive as well as rational models to examine how the organization makes important decisions during the operational process. The study also focuses on feedbacks of employees in areas such as supervision, remuneration, bullying, incentives, sexual harassment and promotion of culture in the region. It is also important to examine whether the organizational has corporate social responsibility. This study focuses on the organization’s leadership to determine the theories that the leaders use to promote organizational culture and the Nissan’s effectiveness in the region (Nissan, 2002). According to this study, Nissan has different characteristics when it comes to emotions and attitudes for the employees. Therefore, these affect the commitment of the organization to its mission and vision, labor relations as well as job satisfaction for the employees. The study also focuses on national culture as well as employee motivation for Nissan in the UAE.

Cusumano (2005) gives a study which observes that it is important for Nissan in the UAE to enhance its policies in corporate governance. This will assist in fulfilling its corporate social responsibility objectives as well as achieving goals not only in the country but also in the Middle East region. According to the literature, Nissan UAE maintains high levels of transparency in the management. This is by disclosing all the organization’s information to the stakeholders. The company also gives the stakeholders the guidelines and goals for all its business activities in the region. Nissan UAE has clear responsibilities for the management, employees, directors and stakeholders. All the responsibilities are towards the achievement of corporate goals and objectives in the region. The most important aspect for the company in the region is to enhance transparency for both employees and the stakeholders. This ensures that the company makes positive progress towards all its objectives. It also does this to promote its market in the region (Cusumano, 2005). All the companies which compete against Nissan in the UAE and the Middle East in general are strong players in the market. Thus, Nissan has to promote organizational behavior which strengthens its operations in the Arabian automobile market.

Analysis

Nissan UAE has its headquarters in Dubai in the Northern Emirates. This is a regional affiliate of the main Nissan Motor Company. It has independent stakeholders with the main company having the highest percentage in ownership. Nissan UAE controls the sale of Nissan vehicles, spare parts and servicing in the Middle East region. To achieve effective service delivery to customers, Nissan UAE maintains a quality policy with different objectives. The first principle of the quality policy is to meet all customers’ requirements in the region. This is done by conducting surveys all over the region to determine the levels of customer satisfaction. The second principle is to maintain a management system that measures as well as maintain the performance of the business in the region (Nonaka & Takeuchi, 2005). This ensures that the company has effective management to spearhead its operations. The company also struggles to improve employee satisfaction at all levels of the organization. This is through developing employees’ skills by means of motivation, empowerment and training to ensure that it achieves all its objectives. It also aims at becoming a responsible corporate citizen in the region. This is done by sponsoring corporate social responsibility activities which include social events, charity organizations, sports and other cultural activities in the Arab region. The company also aims at promoting quality management in all its operations. This is done by conducting audits both internally and externally to ensure transparency. In addition, it organizes reviews by external observers to ensure that the company meets its objectives. All these activities are important in determining organizational behavior. It is for a reason that the organization will act with these as the guidelines towards achievement of future objectives (Nonaka & Takeuchi, 2005).

Nissan UAE promotes organizational behavior with a guideline to certain core principles. The company has a corporate governance approach with employee ethical standards, effective systems for risk management as well as the security for the information in the organization. The assembly factories and Nissan offices in the region work together in all aspects to support different activities for both employees and the management. This ensures that all employees have the right motivation as well as the right skills to promote Nissan’s international organizational culture. The company also ensures that it has the most effective managers and supervisors who promote its culture. Every organization promotes organization behavior with the issues it deals with. At Nissan UAE, employee’s individual behavior is in such a way that it complies with the organization’s guidelines. Nissan UAE engages employees who maintain high standards of business and organizational ethics (Hertog, 2012). This is to promote customer relationships as well as teamwork in the organization. The company employs qualifies personnel in different departments across all areas of operations. The company also maintains specific levels of employee discipline in compliance with their guidelines. This is to ensure that they maintain the organization’s ethical code of conduct. The organization behaves in such a way that it promotes employee training and motivation in accordance to its ethics. This ensures that employees understand any changes in the organization. This way, they can adapt to the changes with changes in personnel where necessary.

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Nissan UAE also applies different risk management procedures. According to the company’s statement, a risk is anything which prevents it from achievement of key goals and objectives. The company realizes that the market in the UAE has several risks. One of the major risks is competition from other automobile companies in the region. The main competitors are Toyota and General Motors. The Middle East region also has political instability and uncertainties especially after the Arab Spring. Thus, the company manages its operations in such a way that it can manage all the risks in the country and the region in general. The organization’s management has the appropriate training which enables them to identify any risk during operations. The management then creates the awareness of the risk to all employees and departments in the organization to ensure that they are able to respond appropriately. After examining the risks in detail, the management plans on the necessary interventions. They influence the right measures to address different risks. The process of deploying and implementing these measures at different levels of the organization depends on the readiness of employees. Moreover, employees and the organization in general should behave in such a way that they are able to mitigate the risks. This is done by minimizing the chances of the risk to materialize as much as possible. The organization also realizes the damages that various risks can cause to its operations in the region. Therefore, it has the appropriate measures in place to ensure that it responds appropriately (Arnett, 2002).

Information is a very important aspect for any organization. Automobile organizations maintain information for different purposes. They may maintain information about the market, employees, potential mergers, new products and prototypes among other important information. Nissan UAE shares its information with other Nissan branches worldwide. It has a strict security policy to protect its information. This policy enables the company to operate effectively and eliminates the possibilities of leaking important information. Nissan UAE also ensures that it gives all important information to all its employees regarding information security. The management does this by organizing in-house forums. They ensure that the organization can educate as well as motivate their employees to uphold information secrecy. This ensures that all employees are aware of their responsibilities and prevents insider trading or whistle-blowing. Thus, Nissan UAE has had minimal information complaints in the recent years. It is for a reason that is has promoted organizational behavior for the management as well as employees which ensure that vital information remains in the organization.

The study of organizational behavior focuses on both the internal as well as the external environment for every organization. The internal environment examines how an organization manages its workforce to follow the organizational culture. Nissan UAE has set and implemented several management principles to quantify their employee requirements. This enhances employee commitment to daily activities. Nissan UAE has set several organizational measures in accordance with the UAE Companies Act. This is in order to abide to the regulations and requirements of the UAE authority. The company’s board of directors has adhered to the Act to create commitment guidelines for all the employees (Robbins, 2001). It ensures that it has put in place these principles to ensure that it pursues its goals using creative and innovative methods which do not violate employee requirements. The board makes the necessary changes and adjustments to the commitment requirements. This is with changes or improvements in organizational practices and procedures. The employee system in Nissan UAE is such that it inspires employee freedom and at the same time gives them certain guidelines to follow. It maintains employee motivation and at the same time gives them the boundaries in the work place.

In order to ensure transparency on the side of the managers, Nissan UAE has a board of directors which monitors the managers closely. The board of directors can give recommendations on hiring, sacking or promotion of managers in the organization. The board of directors for Nissan UAE has representatives from the management, stakeholders as well as Nissan’s main office in Japan. They ensure that the managers run the organization in such a way that it abides to Nissan’s general policies. The board of directors also acts as executive consultants for the management. The managers consult them on matters relating to the market, brand changes, employee behavior and statutory regulations. Nissan UAE has also set the system to monitor the board of directors. This is to ensure its members do not violate principles and use power for their own interests. The Board of Statutory Auditors monitors the board of directors. It oversees the actions of the board members in order to ensure that they do not violate the principles of the UAE authority as well as Nissan’s principles in general. The Board of Statutory Auditors demands reports on plans and inspections from internal auditors as well as independent observers (Cusumano, 2005). They also meet with the management to exchange vital information about the organization. Statutory Auditors receive periodical reports from all stakeholders including the internal auditors to make their own reports about the effectiveness of the board of directors.

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Nissan UAE ensures that it complies with the regional legal framework. Nissan, the mother company, has set a framework which allows for changes in the main provisions to accommodate regional legal requirements. Nissan has a Nissan code of conduct which it set in 2001. The code of conduct outlines the guidelines for all employees of the company across the world for uniformity in operations. Before hiring employees in the UAE and the Middle East in general, Nissan UAE ensures that they are ready to comply with the global code of conduct as well as the statutory requirements. The company also educates the corporate officers and directors in all regional officers regarding the adherence of global as well as the national rules and regulations. The Global Compliance Committee oversees all operations for Nissan UAE in the region. It ensures that the employees follow all the guidelines. This is through a specialized regional compliance committee in the UAE. This committee has formed a system to prevent unethical and legal behavior for all employees and board of directors. The regional committee works closely with the Global committee to ensure that they curb all illegal employee behavior. This is important in protection of the overall organizational behavior (Hertog, 2012).

Nissan UAE depends on import of cars and car parts from Japan and other regions. Thus, it is important to set up appropriate import controls. The organization also exports cars from the UAE to other regions in the Middle East. Thus, export control is also another crucial part which dictates its external organizational behavior. Moreover, the company must comply with UAE export and import laws to ensure that it complies with all export regulations. In addition, the company must consider the provisions of the international community before undertaking any exports or imports. This enables the company to contribute indirectly to security and peace in the region. Thus, there are several import and export principles that guide Nissan UAE. The first principle is that the company must comply thoroughly with the laws of UAE (Nissan, 2002). Therefore, it cannot undertake foreign exchange with countries that the UAE does not approve. The company also has its own control rules which enable it operate peacefully with the UAE government. First, the company does not support the proliferation of any conventional weapons, weapons of mass destruction or technologies and products which can lead to the development of the two. The company also regulates imports and exports to the levels that the UAE government has allowed. This is though the advice of the chief operating officer in Dubai. This is the case for other affiliate companies and regional groups. This promotes uniform external organizational behavior for Nissan in the UAE.

The other important aspect of organizational behavior for Nissan UAE is employee treatment. An organization’s workforce behaves according to the manner that the organization treats them. Nissan UAE operates in a region which is multi-lingual and multi-cultural. It is also a region which strict laws on the basis of the Islamic religion. To ensure that it complies with the country’s laws, Nissan UAE has put in place a code of conduct to hiring procedures. In the global code of conduct, there is an item which gives the company’s stance against harassment and discrimination. The company establishes that it gives equal opportunities to all its employees regardless of their gender, race, social status, religion, ethnicity or any other basis of discrimination. The company seeks to respect value and accept employee diversity, customers, communities, partners as well as the general society where it operates. With this principle, Nissan UAE rejects harassment and discrimination in any level of its operations despite how minor or irrelevant this might be to the organization’s operations (Ichiro, 2003). This is to ensure that all employees feel appreciated and can work to promote universal organizational behavior. The company has strict consequences for its employees who may violate this code. This is done in order to avoid any form of harassment including sexual harassment. Furthermore, Nissan UAE gives all members a chance to report any cases of harassment, mistreatment or discrimination with proper investigations to determine the truth of the allegations. This way, the employees are able to work in harmony to achieve the objectives of the organization.

For any organization performs effectively in the international market, its corporate governance should be sound. The soundness of the corporate governance translates to organizational strength at all levels of the organization. The organization must have a strong chief executive officer (CEO) who motivates all other employees below him/her. Nissan UAE knows that it must promote its corporate governance to perform strongly in the region. To enable this, the company changes its executive members if they do not exhibit strong leadership qualities to steer it to success. The company also has an appropriate internal reporting system. This is to enable the employees to identify which employees are performing poorly in the organization and report them appropriately. The reporting mechanisms allow the employees to submit questions, requests and opinions to the company. It enables the shareholders to take appropriate measures to ensure effective management. Nissan UAE has an Easy Voice System which is an effective reporting mechanism. This is to protect people who are offering information to the authorities, management, and board of directors or even the shareholders. It gives all the employees an opportunity to expose illegal or unethical behavior at any level in the organization. This is important in ensuring effective organizational practices.

In 2000, Nissan Motor Company did a total Human Resource Restructuring at the head office levels. This was to ensure that the company would remain competitive in the international automobile market. Every organization knows that its overall strength depends on the strength of its top officials. This is also the case for Nissan UAE. Since Nissan changed its CEO to Carlos Ghosn, there have been certain changes in the organization. It is for a reason that the new CEO brought in new ideas such as the Renault alliance together with innovation in marketing and automobile manufacture. Nissan UAE has also undergone several changes in their human resource department to accommodate changes in the organization. The Middle East region has many cultural issues which affect Nissan UAE. In order to achieve maximum productivity, the organization must tackle the cultural issues with expertise. This has been the case for Nissan UAE. It has sought the services of a multicultural and multilingual CEO who has assisted in bringing effective employee integration. The company has also gone through restructuring of its human resource to incorporate an innovative working environment with the use of new technology in automobile marketing, advertising, selling as well as regional trade practices. This has created a strong organization in the external environment (Nissan, 2002).

Nissan UAE has also included career advisors especially for women. This is to assist women in the region in career development in the organization, in a region where male chauvinism is still strong. This is an important internal organizational behavior aspect. It is for a reason that it shows innovation in HR practices to incorporate new methods that other organizations in the region lack. The company also has talent management strategies in all its offices. In these strategies, there are experts to identify talent for the entire workforce. The experts then assist the employees in developing their talents in specific aspects. This is especially for the new workers in the organization who have the potential for career growth. Nissan UAE also has performance management procedures. This assists in succession management and career development for all employees. These are important parts for HR restructuring to promote organizational behavior for a new generation company. The most important part in structuring the human resources in an organization is to understand human concepts which affect the working environment. These include culture, talents, personal and interpersonal relationship (Ichiro, 2003). It is important to set the human resource department in such a way that it will manage all human aspects especially with an understanding of the cultural setting in the region. Nissan UAE has taken these aspects into consideration and has changed is HR structure several times to accommodate changes in human aspects. It is evident that the organizational behavior of Nissan UAE in both the internal and the external environment promotes competition in the region. However, the company has a long way to go if it wants to dominate the Middle East automobile market. There are other organizational options that the company can explore in the future (Nonaka & Takeuchi, 2005).

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Conclusion

Nissan UAE is one of the largest automobile dealers in the Middle East region. It operates at a region where there are several cultures as well as languages. The region is also economically stable due to the availability of oil reserves for most countries. This means that Nissan UAE can take advantage of the resource availability to increase automobile sales in the region. To achieve this, the organization must emphasize on creating stable organizational culture which promotes its activities in the region. Organizational behavior focuses specifically on human behavior in a certain organization. For Nissan UAE, it includes the behavior of its employees, managers as well as the Board of Directors towards achieving the organization’s objectives. Nissan UAE has conducted activities to improve employee motivation, focus on employee discipline, legal and ethical compliance. It has also ensured effective managers’ and directors’ assessment at different levels in the organization. However, the company has a long way to as far as market dominance is concerned. If it has to remain on the competitive edge in the Middle East region, it has to embrace organizational dynamism with practices to assist all the employees through the changes.