case presentation harley
TRANSCRIPT
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Harley-Davidson History
Harley-Davidson was founded in 1903
Harley-Davidson had become the largest motorcycleproducing company in the world in 1918
Japanese competitors entered the market in 1959, Harley-Davidson executives did noting to counter the advance ofcompetition.
100,000 production target achieved; market share exceeds
60% in the super-heavyweight segment in 1995
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AMF Years
It is quantity of motorcycles vs. quality
Reduce time to introduce new models
Production and Quality Problems
Unskilled workers
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Vaughn Beals
Took over as the CEO of Harley-Davidson afterGott left
He held different ideals than AMF and the topmanagement
AMF began looking for a buyer for Harley-Davidson
With Harley-Davidsons profitability down, Bealsand some other Harley-Davidson managersorchestrated a highly leveraged buyout
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Vaughn Beals
This large amount of debt for the buyout forcedHarley Davidsons managers to adopt a newstrategy: survival
If Harley-Davidson wanted to remain a dominantforce, in the motorcycle market they were going toneed to change
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Change
Forces for Change: Competition
Japanese competitors began coming into the
market and forced Harley-Davidson to change theway they produced motorcycles
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Change in Job Design
The Productivity Triad Harley-Davidsons newapproach to production
Beals and his team realize the only way to compete
with foreign market is to improve quality
Based on Japanese methods of production
Involved: (a) employee involvement (b) use of JIT
inventory (c) statistical operator control (SOC)
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Change in Job Design
Organizational Structure - Job tasks would bedivided much differently under the productivitytriad
Achange in structure introduced new aspects toan employees day at work
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Change in Job Design
Employee Involvement - using input ofemployees would increase commitment to success
Participation is key to success in terms of bothproduct quality and production process
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Job Characteristics Model
Autonomy: Line workers were encouraged tomake more decisions during production process
Skill Variety: Instead of focusing on just producing
the product, Beals wanted his employees to becomequality experts. Directly uses the SOC
Task Identity: Employees were responsible for thetangible product, but also the quality aspect
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Creating a Learning Organization
Learning Organization: To keep up with thecompetition, Harley needed to be able to adapt tochange
In the 1990s, HD began emphasizing learning atall levels in the organization through a programcalled the Leadership Institute
Everyone had the potential to learn more
Going against traditional ways of management
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New Design Options
To allow for easy sharing of informationthroughout the organization, team work became anew focus
Team Structure: Eliminated certain senior vicepresident positions, these brought no value to thefirm
Teams replaced these positions
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Chain of command was eliminated
Employees had limitless spans of control
Departments were replaced with teams
Boundaryless Organization
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Employees had a choice to seek training
Learning was emphasized throughout the
organization both employees and topmanagement
Culture outside the firm is also created
Culture
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To master all the skills necessary, to do a qualityjob all the time
Improve product service and the quality ofproducts through team empowerment
Take responsibility and ownership for the product
Always be looking for ways to improve
Merge the thinking with top management and allother employees
Core Values
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Functional Harley-Davidsons new culturecreated lots of opinions which would help themavoid groupthink
Process Harley-Davidson grew internationallyand has subsidiaries throughout Europe
Conflict
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Participative Management Harley-Davidsoneliminated several management positions andinstead gave the responsibilities to teams that were
made up of employees
Merit Based Pay Harley-Davidson introduced apay for performance system to improve quality
Rewarding Employees
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Technical Training Through the LearningOrganization, Harley-Davidson sought to traintheir employees in the latest technologies that were
used in Harleys factories
Types of Training
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Declared dividend as of December 9th, 2008 for$0.33 a share
Harley Davidson museum
http://www.harley-davidson.com
Give back to community at holiday time(donatetoys to needy children)
How Harley Davidson is Today