History and Planning Function of Honda

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Soichiro Honda founded the Honda Motor Co. at Hamamatsu, near the southern coast of Japan between Tokyo and Nagoya. That was in 1948. For the first fifteen years, Honda was a motorcycle producer, selling its products in Japan and over the world. In 1989, Soichiro Honda became the first Japanese to be honored in Detroit's prestigious 'Automotive Industry Hall of Fame' (Mair, p38). In 1962, the Honda Motor Co., a Japanese motorcycle manufacturer founded fourteen years previously, made its first automobile. Entering the four-wheeler business had been a hurried affair, rushed along because it looked as if the Japanese Ministry of Trade and Industry would try to prevent new firms from joining Japan's small automobile industry. The current President of Honda Motor Company is Mr. Hiroyoko Yoshino.

The planning function means defining an organization's goals, establishing an overall strategy for achieving these goals, and developing a comprehensive hierarchy of plans to integrate and coordinate activities (Robbins, De Cenzo, p9).

Japanese discovered a way which is captured in the phrase 'right first time'. If the manufacturer can ensure that the components and their process are of superior quality in the first place, then they can actually reduce costs, because there is less wastage, less machine downtime with inferior parts getting caught up in machines, less demand for special quality control workers. Not only that, but customers will be more satisfies because there is less chance of defective products reaching them. The nature of its organization structures is a culturally root mentality ties Japanese employees to each other and to the firms like serfs were tied to masters. The leading firms play their part in the bargain by offering lifetime 4 employment in exchange for loyalty. It was that the kinds of employees that Japanese firms might want group oriented employees...