ISYS5001 Business Project: Challenges in Automotive Industries

dquarters of the organization is located in Port Melbourne at Victoria in Australia. There are around 200 employees working for the company. The parent company of this company is the General Motors (Holden.com.au, 2018).

The overview of the issues detected in the organization

The issues have been very much problematic for the organization to confront in the contemporary business environment. This is why Holden had to identify the several issues in their grasp indeed (Bolden 2016). The primary challenges that have been identified are completely related to that of leadership. The most important factor that the leadership issues and challenges contain is that of the bureaucratic leadership within the organization. The leaders are not at all supportive to the employees and they only go on to dictate the orders to their employees on what things to do. The organizational leadership in the bureaucratic way has been regarded as one of the biggest challenges indeed (Best 2012).

The issues with the bureaucratic leadership

Some issues have been noticed in the Holden Car Company related to bureaucratic leadership of the managers. However, it has been interpreted that there are several people with utmost creativity and innovation within the organization (Bolden 2016). The managers have simply overlooked this fact and they have only stressed on their decisions to be implemented in a forcible manner. In order to do so, they have not listened to the opinions of any of the employees within the organization. It has to be mentioned that the humanity of the organization has been completely destroyed by the bureaucratic leadership of the organization (Gurdjian, Halbeisen and Lane 2014). This is the reason why several conflicts have been there in practice with the leaders of the organization. One of the biggest problems in the company has been due to the use of the social media strategy within the organization. As the operation managers of the organization are quite old in age and backdated, this works as a negative factor for the organization indeed (Hill and Brierley 2017).

Apart from that the conflicts within the organization have been seen as well. The mission, vision and goals of the company are quite often hampered by some of the bureaucratic decisions of the organization (Gurdjian, Halbeisen and Lane 2014). It has been seen that the bureaucratic leaders only make the decisions in the organizations. This is when Holden has not been able to implement the detailed planning indeed. As the issue is with leadership, the normal employees have not been able to voice their opinions about some important aspects of the growth of the company as well. This is when the employees feel disgusted and this reflects on their performance as well (Sosik and Jung 2018). No direct communication is made with the employees indeed. The bureaucratic leaders do not abide by the purpose of the organization. They only care about the facts that they want to implement. This comes up a boomerang for them in most the cases.

The dissatisfaction of the customers

The satisfaction of the customers is considered as one of the most important aspects for the overall success of the organization (Fraering and S. Minor 2013). However, in the last few years Holden has not been able to meet up the expectations of the customers. Several top car companies like Ford, Ferrari, BMW, Suzuki, Audi and others have been successful in capturing the global market as well. In this scenario, it must be said the satisfaction level of customers is not properly met as well. This is why the organization would need to make some changes in their plans that would motivate them to be the global leaders as well (Sosik and Jung 2018).

They are not at all satisfied with the quality of the parts that the company provides to their customers (Driskill 2018). Some reasons have been identified in the organization due to the poor customer service and the inability of the car companies to keep their promises. Holden has also not been listening to the voice of their customers lately as well. It has also been reported in case of Holden that the behavior of the employees has been rude as well (Renko et al., 2018). The company has changed some of its policies due to the bureaucratic decisions that have affected the timing of the service delivery of their products as well. In this context it must also be said that some of the greedy managers have made some hidden information or costs within the organization as well. The customers have also complained that they have not been communicates by the customer service team of Holden numerous times indeed (Renko et al., 2018).

This has also been a problematic thing for the customers and added to the misery of the organizations as well. The managers have been running this business for past several years in the conservative manner by not properly using the social media strategy. This has hampered the customer satisfaction in a huge level as well. They top authorities have not paid any heed to the changing demands of the customers (Antonakis and House 2013). This is why this has been very problematic for the organization to be to gain the profits as well. Their market share has been going down as they are not serving their customer circle properly as well. So, most of the customers have lost the faith on their products and services and it has negatively hampered their economic growth (Büschgens, Bausch and Balkin 2013).

The customers have also reported against this in the several social media platforms. Thus the overall popularity of the Holden Car Company has gone down at once. The fact they have not been able to provide the best services to their customers has been a negative thing for the organization indeed (Antonakis and House 2013). This can be taken as a violation of the ethical issues as well. This is why the proper recommendations will be needed to make an appropriate solution to this wide problem. As the customers are not at all satisfied with the decision changes of the company Holden due to the conflicts of opinion and major leadership issue, the shift in the customer preference has been sensed here (Green 2013).

Recommendations

Use of the democratic leadership style

The use of the democratic style of leadership could be a useful proposition to make the changes within the organization (Büschgens, Bausch and Balkin 2013). The managers will have to take the sessions with the employees and let the employees speak on the policies they have taken as well (Rahim, Ignatius and Adeoti 2012). It is very important for the organization to recognize that the creativity and innovative aspects of all their employees. It would be a real boost for them to practice this and listen to the words of their employees as well. This factor can surely be much helpful for the organizational growth (Green 2013).

Another aspect in this matter is that of the letting the creative aspects of the organization shine for the future success. If the employees can speak out their opinions it could really be effective and exercised within the context for the betterment of the organization indeed. More power should be distributed among the employees in order to provide them with more responsibilities (Kouzes 2012). The managers must distribute the various responsibilities between the different employees. The decisions should be made with the group decision making process. This model or theory has some important advantages. These advantages are regarding the job satisfaction of the employees and good communication between the employees (Venters, Green and Lopez 2012).

Perceived quality customer satisfaction model

One of the most important factors for the customer satisfaction will be the perceived quality customer satisfaction model. According to the model the changing demands of the customers (Alvesson 2012). This will create the proper awareness among the people concerned with the service delivery process. The organization Holden must understand that the services they provide must be value for the money of the customers (Maher 2014). If the first purchase of the customer is satisfactory they will come back to the organization again. In this context, Holden should go on to present the proper service delivery for the customers on time and with affordability of the price (Setó-Pamies 2012). The company must make the proper surveys by which the organization can understand the changing demands of the customers. The company must focus on the customer loyalty indeed. If they provide the services and products to the customers on time this will be highly beneficial for them to gain the loyalty of the customers (Rahim, Ignatius and Adeoti 2012). They should try to diminish the number of complaints from the end of the customers indeed.

Conclusion

The paper can be concluded by saying that the dissatisfaction of the customers and the leadership problems has been very problematic for the overall success of the organization Holden. This is the reason they will have to think upon this practice. The managers of Holden should go on to implement the democratic leadership style to ensure that the decisions are being taken after group discussions. Apart from that they should also focus on the customer loyalty so they can surely retain the customers in this competitive business environment. In order to become the global leaders in the automotive industry, they should understand the demands of the customers in a whole new manner.

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