Dr. Michael A. Diamond
December 13, 2000
Organizational
Analysis
Case
of Mitsubishi Motor Company, Normal in Illinois
A
description of the organization
Mission
Mitsubishi Motor Manufacturing of
America, Inc. (MMMA) started as joint venture based on capital tie-up between
Mitsubishi Motors Corporation (MMC) and Chrysler Corporation in 1985. The main
workplace is in two million square feet of Bloomington-Normal area, Illinois,
and scale of the facilities is 636 acres. Mission of the MMMA, as auto assembly
plant, is to certainly produce and sell millionth Mitsubishi-style vehicle,
particularly mid-size and convertible passenger car, in North America auto
market. It produces over 240,000 vehicles annually. The auto production of the
MMMA is the highest in total production scale of the MMC.
Policies
The MMMA has innovated technologically
advanced auto manufacturing facilities in pursuit of high productivity and
efficiency. The company establishes computerized and developed assembly line
system, which is designed to simultaneously accommodate different process and
intermixed functions. Nearly more than 600 auto-production robots are equipped
in the workplace.
Organizational Structure
The MMMA employs approximately 4,000
workers including terminal production-workers and skilled traders. Herein,
approximate number of the female workers and temporarily transferred workers
from the MMC is respectively 700 and 60. The organizational structure is
comprised of five main shops: Stamping, Plastics, Body, Pain, and Trim/Final
Assembly.
The company is intrinsically organized
in huge hierarchical structure. Organizational decision concerning management,
orders and rules is transmitted through top-down and unilateral information
system. Central office of the company practices vertical oversight on each shop
from broader perspective with respect to total organizational stabilization,
efficiency and productivity. Also, each shop is differentiated as hierarchical
subsystem. Each shop includes middle-level management office, which
independently deal with its own issues such as personnel and job performance.
The function of leadership is also
differentiated. The MMMA officials including CEO and executive officials are
responsible for overall organizational management such as comprehensive policy
setting and public relation. On the other hand, line manager have managerial
responsibility to deal with internal issues of each shop. Every line manager is
required to acquire professional knowledge and skill according to function of
each shop. This sophisticated hierarchical framework and division of leadership
are widely adopted by large auto industrial organization for effective
implementation of overall organizational decision-making and internal unity.
Task and role
The MMMA includes
multiple and specialized tasks and role particular to auto production. Primary
task and role of each shop are determined and assigned in terms of division of
labor. Individual workers has professional and differentiated task and role,
which are defined in job description and day-to-day performance standard
according to level of their job position. Each official authority and liability
comes into force with setting of task and role concomitantly.
Organizational Culture
1. Complex
Subculture
The MMMA’s organizational culture includes subculture of each shop. As hierarchical subsystem, each shop has its own socialized and embedded subculture according to different leader, occupation and function. The subculture affects each line manager and his workers in terms of behavioral or psychological aspect. In addition, this subculture is always influenced by higher-level organizational conducts. Top-down orders and personnel management of central office have influence on cultural formation and change in each shop.
2. Male-dominant
culture
The MMMA as a
Japanese company is said to be male-dominated workplace. Japanese culture,
which is generally regarded as male-dominated (or ”Jane Crow”) society no
matter what the truth is, has affected the organizational culture not only in
terms of management and leadership, but also in terms of gender role and human
right. Also, traditional value attached in auto plant, which is generally
considered as male-oriented workplace, may affect the formation of male
dominated culture.
3. Dehumanized
culture
The structure
of assembly line, which is hierarchically and technically managed, affects the
organizational culture. The managerial structure creates not only general
mechanization of tasks and roles, but also the dehumanized culture in the
working environment. Job automation and computerization can require the workers
to be a part of machine, and undervalue their emotional aspect such as anger
and anxiety. Herein individual morality, creativity and self-observation to
his/her job performance are minimized
This dehumanized culture brings the workers
pathological psychological condition like disappointment, frustration and
aggression. Actually, many production-workers are unsatisfied or frustrated in
the workplace. On the other hand, there is an example of individual acceptance
and reliance on the dehumanized culture. Because obedience to this culture and
mechanical routine ensures employment and salary in this culture, some workers
attempt to accept or depend on the culture to escape from their anxiety of
firing and punishment. This dehumanized culture and worker’s psychological
response are embedded over time in the overall organizational culture.
4. Powerful
culture
The MMMA is a major employer in Normal,
Illinois, which is a relatively small college town. Average of salary among the
workers is as twice as the local market rate around the area. Also,
Mitsubishi’s bland name is attractive for a worker who expects employment safety,
job security and appropriate leadership. Actually, many people try to be on the
register of the company with much expectation and affection, and they try to
stay in the company. These phenomena ensure sense of belonging toward the
company and their reliability on the organizational culture no matter what the
culture is.
Historical account of critical
incident that triggered change in the organization
Critical incidence of
the MMMA is outbreak of sexual harassment Lawsuit. On December 15, 1994,
twenty-nine female workers filed a federal lawsuit against the company accusing
this company of organizational sexual harassment. Accordingly, Equal Employment
Opportunity Commission (EEOC) filed a class-action suit against the auto plant
for 300 female workers on April 9, 1996. Official statement of the EEOC showed
that about 400 male workers had repeatedly exercised sexual harassment on the
women in the overall assembly line. This lawsuit was finished in June 1998, but
the company had to pay total $ 34 million to settle the claims.
External damage (externality of the
incidence)
1. Economic
Damage of the MMMA
The MMMA faced one of the most economically critical and largest sexual
harassment lawsuits in U.S history. Settlement package of the company was a
record as reconciliation payment for sexual harassment lawsuit. The incidence
was also critical for the company that ran about $1,000 million final combined
deficits in March 1998. In addition, during a period of the lawsuit, the
company has lost approximately $1 billion because of reduction of its global
sales and the impact of Asian currency crisis. Consequently, the company
abandoned its massive investment plan involved in construction of new assembly
plant and future continental market network.
2. Decreasing
of public trust and the reputation
Through the lawsuit, not only the MMMA
but also the MMC was criticized as “a Merchant of Shame”. There were worldwide
boycott movements against Mitsubishi’s products and Global Champaign denouncing
the company for the harassment. Not only civil right group such as National
Organization for Woman (NOW), but also politicians participated in the social
movement. Contemporary ground swell of worldwide “feminism” or “abolition”
movement also gave serious impetus to this anti-Mitsubishi movement.
1. Psychological
damage among workers
The lawsuit has been highlighted since it began. It had much negative
impact on the worker’s psychological or emotional dynamics. Under the
nationwide criticism of “Merchant of Shame” and fact of decline of business
performance, many workers, who particularly have tried to create good products
and workplace in their tasks, would be psychologically damaged. This damage
subsequently took the shape of regressive behavior such as loss of motivation,
blaming, feeling of guilty or anxiety and disappointment toward their task and
the company.
2. Destructive
workplace
This incidence also brought destructive
relationship among the workers into the workplace. For example, there were
internal conflicts and mistrust in terms of human relation not only between
male and female but also between the manager and his/her workers. Also there
were some individual or group-based retaliations and acts of revenge on the female
plaintiffs. This unfavorable working environment increased much more anxieties
or fears of job security and personal relationship.
Past management and leadership reality
1. Mixed management
and leadership
The MMMA had adopted practice of Japanese management system to help organize and operate the organizational structure. Many Japanese management experts and chief engineers were sent to the company after the training program concerning their professional tasks and cultural understanding. In addition, American managers, particularly male, also have taken incentive training program in Japan not only for improvement of his expertise and knowledge but also for understanding of Japanese culture and behavior. Japanizing of the American and Americanizing of the Japanese were promoted throughout the company. However, there were various personal-level conflicts of opinion and misunderstandings concerning culture and value in Japanese-American mixed management and leadership.
2. Failure of
management
a. Difficulty
of problem setting
Handling of various problems of line
managers was often routine and red tape. According to local civil rights
committees, some line managers not only ignored job-related complaints but also
refused to intervene these problems. Also, because there was no bottom-up
problem setting system such as monitoring system within this hierarchical
structure, it was difficult for the central office and officials to collect various
cases and information of problem, and to recognize them. Therefore, despite of
hundreds of witness and thousand of document about sexual harassment, it spent
two to three years to discover the problems and take organizational action.
b. Unclearness
of decision-making of leader
In the huge hierarchical
organization, the lower-level position is always under control of the
higher-level position. Actually each line manager was independent within his
official responsibility and authority, however his substantive decision about
personnel management and overall strategies depended on decision of MMMA’s
officials and central office. During the lawsuit, behavior and decision of the
central office and the officials was said to be often ambiguous and changeable.
Therefore, behavior and decision of the line manager was also different and
inconsistent. These scattered decision-makings consequently made all workers
confused and frustrated with response of his manager and the officials.
3. Failure of organizational reaction
After the lawsuit started, MMMA fired more than 10 women plaintiffs, and
it executed more than 80 unclear dispositions such as demotion and conversion
over other workers. Some of these actions were acknowledged by the EEOC as
unforgivable organizational retaliation or intimidation.
One of the most unfavorable reactions
regarded as critical management failure was to protest against the EEOC. In the
protestation march to the EEOC Chicago office, the company mobilized about
2,500 demonstrators, made up 59 buses and gave its workers daily allowance for
the demonstration. Also, it set up phone line at the auto plant to make its
workers criticize some opponent politicians. These organizational strategies
were broadly denounced not only by the EEOC but also by Press, legislators and
women’s organizations.
4. Dependence
on power and authority
After the above critical management failure, the company changed its
tactics to employ former U.S. Labor Secretary Lynn Martin who would conduct a
high-profile investigations and overhauls of the personnel policies. 16
flagrant offenders were fired after her appointment. However this tactic
finally came to nothing after disclosure of excessive salary to Martine ($2.2
million) and her intentional admission that she would not substantially deal
with anything about the incident. Therefore, the company was re-criticized for
lack of acknowledgment to the problems and poor management depending on the
authority.
5. “Implicit
culture” as fundamental assumption
In terms of human relationship of the
workplace, there would be “Japanese collectivism” where “organizational or
interpersonal conformity (or harmony)” is prioritized everywhere including
communities. Herein, to maintain the “conformity” is implicit principle of
every member. If he/she has authority and power in the community, he/she
undertakes implicit duty to maintain the “conformity”. On the other hand, if
someone raises a problem, he/she can be regarded as those who disrespect or
intimidate “conformity”, and he/she can be kept at a distance or excluded by
the other members.
This “conformity assumption” was said to
be in the MMMA’s workplace. Not only Japanese managers but also American
managers, who knew this assumption, consciously or unconsciously, would
maintain the “organizational conformity”. The implicit assumption would be
embodied as their avoidance of complaint, reluctance of problem handling,
cover-up of problem, and exclusion (or isolation) of the female plaintiffs as
destroyer of the assumption.
6. Defensive
mechanism of individuals as fundamental assumption
Not only the workers but also the
managers could be defensive to the their failures and critical incidences
within controlled organizational structure. They were consciously or
unconsciously afraid of externalization of internal problems because the
problems may involves inevitable punishment and firing exercised by
higher-level superiors. Position, authority, reputation and good salary could
be their interests worth protecting. Therefore, they tried to avoid or refuse
personal interviews and discussion about details of problems. In this
situation, problem was uncertain and undiscussable.
Present
management and leadership reality
The MMMA establishes organizational managerial reforms in terms of appropriate problem-setting and problem-solving perspectives. Herein, each assembly line exercises annual management training programs where the line managers are required to take minimum of 92 hours of annual training with two years. It also reviews all job assignments by sometimes using outside institutions, and starts survey on all workers annually to collect feedback information regarding the workplace and the company-related issues. Various technical communication methods such as e-mail and Intranet are frequently used in these activities. It also improves various welfare programs including worker-family support subsidies, holiday system for childcare, homecare and nursing mother system. These managerial activities particularly focus on improvement of all managers’ professional abilities and the changes of existing management style including creation of new programs and grade-up of quality. However, fundamental organizational changes such as comprehensive structural reform is not implemented.
Comparison of the old and the new
organization in terms of macro level perspective
Old
organizational reality
1. Creation
of sexual harassment environment
The MMMA had included
sexual harassment environment, what the EEOC called “hyper-sexual harassment”
anywhere and anytime. Physical or verbal sexual abuses toward female workers
had been conducted visibly or invisibly. For example, according to the EEOC
reports, sexually explicit photographs and posters were circulated in
workplaces, including employee breaks rooms and locker rooms where female
workers could easily see them. Some strippers were allowed in workplace to
perform sexual acts with male workers. Also, some male workers including the
line managers frequently conducted physical sexual harassment to female
workers, for example shooting air guns to them, peering at or touching their
breasts and buttocks and simulating masturbation in their sights. In these
continuous patterns and practices of sexual harassment, some female workers felt
depressive, came under psychological damages such as Post-Traumatic Stress
Disorder (PTSD) or quit the job.
The organizational management style were also one of indirect factors
why the company had created the incidence and overlooked it. The male American
managers, who visited Japan for the training program, voluntarily or
compellingly went to strip clubs and ‘sex club” where they act sex with
prostitutes as entertainment. Some of them brought sexual souvenirs and gifts
back into the workplace just for in fun after the training was finished. This
specific atmosphere or culture where many male managers were more or less
involved in sexual harassment has been embedded in the overall organization for
a long time. Consequently, This organizational leadership assumption became a
filter or barrier for testing the incidences publicly. It was difficult for the
managers not only to have knowledge and awareness the sexual harassment issue
in this workplace, but also to have serious motivation to challenge the
problems.
2. Complexity
of the sexual harassment case
Some complicated factors of sexual harassment also sustained the
critical organizational environment. These factors finally not only increased
atmosphere of sexual harassment, but also prevented the problem from being
discussable and testable. At first, traditional fixed ideas, such as male
chauvinism and ignorance of gender issue and societal female role, had
permeated throughout the organization. The traditional male-oriented task
(derived from auto production) had improved stability of these ideas in the
organization. Herein, these discriminately values, where men thought of women
as only sexual objects, and undermined their status, had existed thoroughly
even if various legal anti-discrimination actions such as Affirmative Action
Plan became widely known in public.
Secondly, psychological aspect of harassed women had affected their
attitudes and reactions to the incidence. Some female workers accepted facts of
the harassment spontaneously or non-spontaneously. According to EEOC reports,
there was silence of some victims coping with the sexual harassment because of
self-protection. This psychological self-protection mechanism was generally
based on not only avoidance of fear (or threats) of firing and destructive work
relationship with others, but also avoidance of self-guilty about accusing the
company or their intimate male workers.
Thirdly, a variety of women’s values or physical reactions had made the
problem recognition more difficult. Actually, while some female workers had
complained about the harassment facts and poor managerial provisions, others
would deny the existence or seriousness of the harassment. Many of those who
denied the problems would feel sympathy toward their harassers, showed
reluctance of the lawsuit, or blamed the plaintiffs as shameful, lazy and
immature workers.
Fourthly, there seemed to be confusion over what exactly constituted the
harassments. In other words, there were cognitive differences of personal
definition of “sexual harassment” among the workers despite of the previously
stated definition. There were critical conflicts for definitions and responses
to sexual-related behaviors between the harassers and the harassed. Even one
action, a person thought it as offensive and intolerable conduct while the
other did not. In fact, some managers did not think of the erotic photographs
as offensive before the lawsuit started. In addition, while the female worker
sometimes accused her male superior or her male co-worker for harassment, he
criticized her for wired personality, overreaction or lack of job motivation.
These unclear differences with respect to perspectives of sexual harassment and
complexity of human relation made it more complicated to resolve the issue.
3. Defensive
mechanism of Organization
Even if the EEOC started the lawsuit,
the organization was reluctant to concede the incidence of sexual harassment.
Despites of increasing social complaints against it, it did not treat the
incidence as one of organizational critical problems but as a public relations
problem which it would control and settle. Also, despite of the outsiders’
requests of personal interviews and panel discussion, it focused on its own
internal investigation for problem recognition rather than the outside
intervention. Rather than that, the organization tried to prevent internal
information leak regarding personnel management and workplace operation, and
protected itself against loss of its bland name and business performance. These
organizational behaviors were publicly criticized as aggressive self-defensive
and violation of human right.
New
organizational reality
After the settlement of lawsuit for the
EEOC and plaintiffs, the organization attempted prevalence of specific
anti-sexual harassment strategies. It aggressively promotes problem recognition
system and managerial techniques concerned with various workplace-related
issues as well as sexual harassment issues. “Sexual harassment” is recognized
as one of important organizational knowledge.
Under the strategies, sexual abused materials and publications are
excluded from the overall workplace. Any behaviors and actions potentially
related to sexual harassment are strictly prohibited. Complaint reviewing system
and mandatory training program for improvement of awareness of sexual
harassment are applied to every workplace. “Sexual harassment” clinic is also
established. Participatory decision-making, collaboration and mutual
understanding are particularly emphasized in these anti-harassment
policies.
Not only the line managers and the officials but also all workers are
involved in this organizational change. A worker, who act (or acts) sexual
abuses and ignore (ignored) the anti-harassment regulations, should be blamed
or punished in the workplace. In addition, a line manager, who faces sexual
harassment-related problem and cannot handle it, should be panelized including
suspension and demotion for supervision liability. In this condition, many
workers are required to adapt his/her behavioral or cognitive state concerning
managerial liability and human right to these new anti-harassment
organizational changes.
A description of the implemented particular strategy of
organizational change
1. Establishment
of Consent Decree
As cornerstone of these above mentioned
remedial strategies, “Consent Decree” is established and exercised by and
between the female plaintiffs, the EEOC and the company. This decree includes
particular standard and guideline related to any anti-sexual harassment
strategies. It articulates full and comprehensive agreement (or consensus) of
each party involving mission, goal and performance for resolution of the
harassment matters. Any representations and inducements to compromise
discriminatory actions are excluded except those recited or referenced in the
decree.
2. Monetary relief policy
As a monetary relief policy, the company agreed to establish settlement funds
with respect to the matters. Female workers who substantially suffered from the
organizational harassment environment can submit “claim forms” to be certified
as “claimants” refereed in the degree. The claimant can receive payment
according to physical or mental damage determined in the Consent Decree. The
company finally has paid $34 million in compensation for at least 350 eligible
female workers since 1990.
3. Zero
tolerance policy
The company is committed to develop and
maintain a “zero-tolerance policy” which composes various specific actions
plans against sexual harassment, sex-based harassment and retaliation action.
This policy as disciplinary system is designed not only to eradicate hostile
environment for all workers, but also to prevent conduct acts related to any
discrimination. For example, clear definition of sexual harassment and the
accompanying conducts, active monitoring systems, complaint procedures and
promoting of monetary training program in overall workplace are established
under the policy. This policy involves in any level of workers, and is revised
at pleasure if necessary.
4. New
problem of the strategy in terms of Organizational Learning
These anti-harassment strategies have
been carried out by the MMMA’s official’s initiative in the face of strong
pressure of the EEOC and other human-right institutions. For “ultimate
elimination of sexual harassment environment”, various work-related and human
right-related obligations or duties are imposed on every worker. In this
context, the strategies substantially take on the character of mandate and
regulatory functions that control personal behaviors and values toward sexual
harassment. Thus, the strategies should be based on classical management
approach, which focus how to control and manage workers to fulfill the
organizational goals by using unilateral value settings and managerial orders.
For the resolution of this organizational problem, implementation of the
strategies is focused more than anything. Because the company is required to
show visible performance of anti-harassment polity to the outsiders involved, systematic
changes and managerial revision are prioritized. On the other hand, matters of
fundamental assumption such as interpersonal relationship and cultural
difference are not emphasized because of the complexity and unpredictability.
The organization requests all workers to follow the strategies. The
workers therefore are required to meet individually determined responsibility
according to his/her role, task and authority without deliberation of their own
internal factors such as personal values and ethics.
These approaches cause internal conflicts and contradiction with regard
to human relationship and individual psychological dynamics. Actually, while
many people are pleased in the strategy, some people feel frustrated with it.
For example, some male workers feel stress in the workplace because of
unfavorable oversight system. Some managers are confused with worker’s unclear
or subtle complaints and unilateral work-related requests by the name of sexual
harassment. In addition, some female workers think of the organizational
provision as incomplete or still male-dominated. These chaotic conditions
including anxiety, instability, frustration and grievance do not superficially
appear on the surface of the organizational reality, but they exist fundamental
structure such as psychology and behavioral standard among every worker.
Conclusion
The critical incidence
in the MMMA was based on various factors such as the traditional values,
cultural difference, matter particular to auto factory, the organizational and
personal ethic and behavior of the workers. Complicating matter is the fact
that complexity of the organization reality and complexity of sexual harassment
case were interrelated in the workplace. Herein, psychological reality was also
involved in outbreak of the incidence. In fact, the bulk of the existing documents
show the difficulties of resolutions for the problems.
As mentioned above, the MMMA took some
organizational reactions for resolution of the problem. However, fundamental
provisions, which change organizational “bare bone”, may not yet achieved.
Also, issues about the mass-production-managerial style and the sensitive areas
such as cultural difference and individual self-awareness and personality in
the workplace are still left in terms of organizational learning.
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