Analysis of Theory and Practice in Management - Free Essay Example

Sample details Pages: 10 Words: 2919 Downloads: 5 Date added: 2017/06/26 Category Management Essay Type Analytical essay Did you like this example? In this answer the relationship in between management theory practice is clearly defined, starting with defining the meaning of management theory, later on the relation in between the two is highlighted followed by a critical review conclusion. WHAT IS MANAGEMENT THEORY? Management theory is a lens that allows people to interpret modes of management, to identify a particular set of problems and to seek a variety of solutions to those problems. Management practices in different organisations depend on the theories that are applied either explicitly or implicitly (Soriano,2009). Don’t waste time! Our writers will create an original "Analysis of Theory and Practice in Management" essay for you Create order RELATION IN BETWEEN MANAGEMENT THEORY PRACTICE Every living practioner is prisoner to the ideas of a dead theorist(Mullins,2007,p.40). Management theory is a critical ingredient that helps in the production of knowledge, bringing transparency, accountability and accessibility to the research practice (Brownlie,2007). Theories are perspectives with which people make sense of their world experiences. The relation between theory practice is very important as without theoretical knowledge it is impossible to put the skills into practice and make the right decisions. Theory gives deep understanding and allows to view the problems from different perspectives which leads to decision-making practice. In relation to  Ãƒâ€šÃ‚  the problems faced by organisations today, without understanding the basics of it, without knowing the case in depth, it becomes difficult to come to the right decision and solve the problem which causes the delays in decisions results(Stoner et. al. 19 95, pp. 31-2). Thus, Six Sigma a system of  practices evolving from best management theories  was developed by Motorola in the 1980s to improve processes by eliminating defects (Pande,2007). It is therefore very important for people leading the organisations to have a good theoretical knowledge. CRITICAL REVIEW As per a report in The Sunday Times(2009), in the last two decades, management theory, once rejected in Britain by both unions and management, has been deliberately implied on almost every aspect of commercial and public life (Billen,2009). This act of blindly implying theories into practice is incorrect moreover certain beneficial management practices are the ones not mentioned in management theories. As stated by Gary Hamel in The Future of Management, several leading executives-including Sergey Brin and Larry Page (the Google Guys) and John Mackey of Whole Foods Market, never went to business school had no knowledge of management theories, still thei r management practices were successful(The Econmist,2007). In most of the organisations there appears a gap between theory and practice of management, this problem is attributed to converting research knowledge into practice to solve this researchers propose a method of engaged scholarship in which researchers and practitioners coproduce knowledge that can advance theory and practice in a given domain(Ven et. al, 2006). CONCLUSION In managing, as in any other field, unless practitioners try to learn by trial and error method, there is no place they can turn for meaningful guidance other than the knowledge underlying their practice; this knowledge is theory. Managers who attempt to manage without management theory must put their trust to luck, intuition, or what their experience in the past. A management who makes serious attempts to translate management theory into practice is bound to increase productivity more than a management which chooses to use the fire brigade or  Ãƒâ€šÃ‚  trial and error approach(Weirich, 2004). Q:Explain the main difficulties in studying personalities; how is this of importance to organisations? A: INTRODUCTION: In this answer, the difficulties in studying personalities are highlighted, by defining the meaning of personalities mentioning the reasons for the difficulties. Later on, the importance of understanding personalities to organisations is mentioned followed b y a conclusion. MEANING OF PERSONALITY: As per Websters Dictionary Personality is derived from the latin word persona, which means mask as in mask worn by actors on stage or role as in ones role in life, so personality is essential character of a person. (David Knights and hugh willmott,2007,p.80) Difficulties in Studying Personalities: No two individuals have exactly the same personalities, as stated in The New York Times (2009)It is said that parents of one child believe that upbringing determines personality, but parents with two children believe in genetic tendencies. The evidence points to something more complex: genetic predispositions interact with circumstances to produce unique individuals (Aamodt Wang,2009). So, studying personalities is a complex task as the techniques that are used to collect group data is questionable and the outcome that comes from it is inappropriate in understanding personalities because the richness and depth of an individuals personality cannot be revealed in superficial pen and papers questionnaires. The personality cannot be understood outside an individuals social context and has to be studied in the light of his/her own perceptions of the world. Moreover, the categories defined by psychologists to study personalities are quite narrow in depth and scope. We expect individuals behaviour to be consistent or stable, however it might not be true everytime, for e.g if a person has taken drugs or is under great stress he will not behave as per his personality traits (Mullins,2004). Importance To Organisations: Those who manage or even aspire to manage organisations a vital part of their role is understanding human  Ãƒâ€šÃ‚  behaviour and psychology(Rollinson,2005).Within the mainstream thinking and practice of management personality is seen as one of the most basic and fundamental features of an organisation(David Knights and hugh willmott,2007,p.79). The study the personalities can help organisations in solving real problems that happen at the place of work. By using personality psychological research findings the organisations can hire better employees, decrease absenteeism, increase job satisfaction solve many other organisational problems related to work. Understanding of personality is required in various organizational processes for e.g. Selection Placement. As per Africa News(2005) personality is the key element  organisations  need to assess when recruiting people. Apart from such processes understanding personalities can help organisations in redesigning j obs to make them more meaningful and satisfying to the employees which in turn will lead to healthy and productive workforce. An organisation should recognise and try to improve employees personality and talent so that certain positive and encouraging traits can be developed in them which would lead to better work atmosphere and attainment of common aims and goals (Paul M. Muchinsky,2001). CONCLUSION It can thus be concluded that personality is a major factor that determines the success or failure of the individual but understanding personality is a complex process, so the organisations should be careful in selecting its employees by understanding their personalities should also try bring positive changes to their personalities for organisational success.   Q: In what ways can an understanding of motivation theory contribute to successful organizational working? Illustrate your key arguments with  organizationally based examples. A : INTRODUCTION In this answer, the importance of understanding motivation theories for organisations is mentioned, with the help of surveys, organizationally based examples press releases. In the beginning the different motivation theories are described in brief, followed by explanation of reasons for understanding them. WHAT IS MOTIVATION WHAT ARE THE DIFFERENT MOTIVATION THEORIES? The term motivation derived from th e Latin word movere, meaning to move(Kretiner, 1998). As per Robbins (1993) motivation is the willingness to put high levels of effort toward organizational goals, conditioned being the efforts should satisfy some individual need(Ramlall,2004). The first theory of motivation was developed by FW Taylors was called Scientific Management Theory. Taylor believed money was the only motivator and that there should be a carrot and stick approach to motivate people. Those who worked hard should be rewarded, but those who didnt, penalties should be imposed. Other theorists felt that this was not always the way to get the best out of people(The Times 100, 2010,Motivation how Egg unleashes the power of people). So there other motivation theories got evolved namely Content theories attempt to explain those specific things that actually motivate the individual at work Process theories that attempt to identify the relationship among the variables that make up motivation(Mullins,2007). CONTENT THEORIES 1)Needs theories: Maslows hierarchy of needs theory identifies five major basic needs: a)physiological, b)safety, c)love/affiliation,d) esteem, e) self-actualization. This theory provided organisations ways of motivating employees by devising programs aimed at satisfying unmet needs(Ramlall,2004). Champagne McAfee (1989), cited ways for organisations to meet the needs of their employees:-Physiological: Vending machines, Drinking fountains; Safety: retirement benefits, solving grievances, Rest periods; Affiliation: creating team spirit, using periodic praise; Esteem: Encouraging participation, giving training; Self-actualization: Encouraging creativity, providing challenges. LIMITATION: The level and type of employees need may vary, fulfilling some needs might be really costly(Ramlall,2004). 2)Herzbergs two-factor theory: As per Herzberg(1968) financial rewards do not always satisfy employees, as proposed by Taylor. This theory assumes that the absence of hygiene factors like salary, security, working conditions leads to demotivation amongst the employees whereas motivators like achievement, recognition, responsibility, nature of work leads to motivation(Quader Quader, 2008). This theory teaches organisation that for an employee to be motivated, his job must be fully enriched where he has the opportunity for achievement and recognition(Ramlall,2004). LIMITATION: This theory can only be applied to manual workers the theory is methodologically bound(Mullins,2007). 3) McClellands Achievement motivation theory: McClellands work originated from the relationship between hunger needs and the extent to which imagery of food dominated thought processes. McClelland saw the achievement need as the most critical need for the countrys economic growth and success. LIMITATION: The theory is generalised however, different people have different achievement needs(Mullins,2007). PROCESS THEORIES: 1)Equity theory: Equity theory states that individuals are concerned not only with the absolute amount of rewards they receive for their efforts, but also with the relationship of this amount to what others receive. If they find any imbalance, tension is created people can do many things to remove this inequity. Therefore organizations must develop reward systems that are fair and equitable for all the employees(Ramlall,2004). LIMITATION: It fails to specify what will people do to reduce the inequity/tension (Muchinsky,2003). 2) Attribution theory: This theory suggests that behaviour is determined by a combination of perceived internal forces (skills, ability) and external forces(policies,weather)(Mullins,2007). LIMITATION: If an employee performs well but the manager thinks this was due to luck, the appropriate recognition/reward may not be given employee will get demotivated. 3)Expectancy theory: As per this theory people are motivated to behave in ways that produce desired combinations of expected outcomes(Kreitner Kinicki, 1999, p.227). This theory states that the task itself is key to employee motivation so organisations should follow job enrichment and job rotation to increase motivation. LIMITATION: Expectancy models are not always easy to understand, or apply in actual management(Mullins,2007). 4)Goal-setting theory : It says individuals are motivated by specific difficult goals their behaviour revolves around the set goal(Gordon,1996,p145). It helps organisations in gaining improved results as employees set specific goals directly related to their work(Mullins,2007). LIMITATION : If goals are set at a very high level to achieve, performance suffers, especially over a longer period(Mullins,2007). LITERATURE REVIEW: In the past theories of motivation a lot of importance was given to recognition factor of motivation the only dependent variables were job satisfaction performance. Later on, Significant advances were made in understanding how culture, characteristics of the job, and the person-organization fit influenced motivation. Earlier, motivation was restricted to research findings of North Americans. There ware clashes amongst theorists that existed throughout much of the twentieth century hence much of the energy was spent on theory destruction rather than theory construction(Latham Pinder,2005). WHY IS IT IMPORTANT TO UNDERSTAND THEORIES MOTIVATE EMPLOYEES? Organisational investments in employee motivation create obligations on the employees to reciprocate in positive ways, which, in turn, result in better organisational performance(Lee Bruvold,2003). Moreover, motivation theory can go a long way towards helping us understand why people behave in the way they do. Armed with such knowledge, managers should be better placed to direct employee behaviour for the good of the organisation (Hannagan,2005,pp.350-351). As stated by Amer Zureikat, regional Manager, Bayt.com. in United Arab Emirates(2009), Organisations the world over are realising that successfully motivating staff on an ongoing basis is a fundamental element in building good rapport among staff, keeping staff loyal to the company and most of all maintaining optimal productivity levels of employees. This becomes even more crucial during these times of economic crisis, because news of job losses and an unstable future may serve to de-motivate employees significantly. MOTIVATION REDUCES ABSENTEEISM It is mentioned in The Irish Times that up to 50 to 80 per cent of an organisations total expenditure is on employees, even average absence levels can represent a serious expense in terms of reduced productivity and can reduce employee retention because of over-stretched staff. An initiative to lower absenteeism makes financial sense to the organisation. This can be done only if the motivation theories are understood put into practice(Madden,2008). MOTIVATION IMPROVES PRODUCTIVITY PERFORMANCE: Georgopoulos et al.(1957) Porter Lawler(1967) found that employees for whom money was a motivator, performed better if more money was offered to them (Edwin A. Locke,1970). West and Patterson suggest  Ãƒâ€šÃ‚  Where the level of satisfaction is generally high employees may be more motivated to engage in pro-social behaviours and make extra effort to help other departments and functions. Over thousands  Ãƒâ€šÃ‚  of instances  of helping and motivating the employees show that it increases productivity and performance(Robin Fincham Peter Rhodes,2005, p.232). MOTIVATION IMPROVES TEAMWORK CO-ORDINATION Certain gain-sharing programs, such as the Scanlon Plan, Improshare, or Rucker Plan, helps workers to get a share in productivity improvements. Such programs result in increased coordination, teamwork and knowledge sharing. They also contribute to better  Ãƒâ€šÃ‚  attainment of social needs, increased acceptance of change of technology and new methods. It causes more efficient management and planning, reduction of overtime for workers, increase in creativity and implementation of new ideas and more flexible labour and management relationship(Judith R Gordon, 1996). CASE STUDY BLACK DECKER: A new program Everyone Counts based on employees social self esteem needs as per the needs motivation theories was implemented at Black and Deckers Household Products division in Shelton. Everyone Counts, an employee incentive campaign, replaced the suggestion box and allowed teams of employees to provide cost saving, cost analysis and implementation suggestions. Thirty-nine teams were allowed to submit five ideas each in twelve weeks. One such idea is estimated to save the company over seven hundred dollars by substituting a new material in one of the product lines. Everyone counts also improved communications with upper management, increased employee involvement and allowed more centralisation of the employee work environment (Harris Kliener,1993). Examples to show the  Ãƒâ€šÃ‚  Link of Motivation with Organisational Success: American Express  introduced an incentive plan for 10,000 employees in the consumer-lending and consumer card groups  Ãƒâ€šÃ‚  after a one year pilot program, during which 98 percent of 1,500 employees received bonuses of 4 percent of their salaries. The plan resulted in an increase in customer satisfaction, employee productivity and shareholder gains (Judith R.Gordon,1996). Royal Bank of Scotland: RBS provides world-class employment package for every employee adopts an attitude that motivates its staff in both financial and personal ways. This helps RBS to compete for the best people and attract them to its business has lead to RBS being rated as one of the best employers in the world. Thus following motivation theories has proved beneficicial for RBS(The Times 100, motivating through total reward). CASE STUDY OF HONEYWELL: Honeywells Electro Optics Division was in serious financial trouble because of low employee morale. In order to motivate their employees they turned to the Boston office of Bernard Hodes for a motivational programme. Posters of the five great performers with their chosen quote were made and placed in the hallways. The five great performers were instant celebrities and everyone wanted to be one. It enhanced employees performance by the use of motivation. In six months Honeywell was out of the financial trouble(Harris Kliener,1993). There are several examples to show importance of motivation, Some of the better known examples include the Digital Equipment Corporation plants at Enfield in America (Perry,1984) and Ayr in Scotland (Buchanan McCalman,1989). In Britain, empowered self-managing teams can also be found in The Body Shop, Unipart, Frizzell Financial Services, Ciba UK and in the Harvester Restaurant in Dulwich (Pickard,1993).Many American companies have adopted motivating and team working methods, like Shenandoah Life Insurance, Harley-Davidson, Compaq, Cummins Engine Company, Procter Gamble, and General M otors( Hoerr et al.,1986; Hoerr,1989;Peters,1987) In most of these companies role of traditional first line supervisor was changed and in others they have been replaced by people who were more motivating(David Buchanan Andrzej Huczynski,1997, p.96).   CONCLUSION: Thus, with the different examples shown it can be concluded that by understanding the importance of motivation organisations can prosper, it can also be said that apart from money there are other motivators of great importance as well, like job security, challenging tasks and working together with colleagues in a good working environment. It has been seen that great organisations are the ones in which the employees are motivated to bring out the best in them. It is therefore very important for the organisations to understand that the employees are an organisations most precious asset anything that can be done to increase their capability should be done so that the returns come to the organisation.

Analysis Of Halfords Plc Financial Analysis - 1276 Words

Halfords Plc Financial Analysis Table of Contents 1-Executive summary............................................................................ 2-Introduction ....................................................................................... 2.1-About BIKE Industry†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 2.2- Halfords Overview†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 2.3- Halfords Key Competitors †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 2.4-SportsDirect Overview ........... 3-Segmentation Analysis .............................. 3.1-Product Contribution towards Total Sales ..... 3.2-Region Contribution towards Total Sales........ 4-Halfords and SportsDirect Financial Analysis ............ 4.1-Growth Ratios †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 4.2-Profitibility Ratios†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 4.3-Efficiency Ratios †¦.. 4.4-Gearing Ratios †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 4.5-Investor Ratios .. 5-Conclusion Recommendation for Investors ........................................... 6-References †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 23 7-Appendix .................................................................................................... 1-Executive summary This report aims to analyse the financial position of HALFORDS PLC within its daily operating activities and it also compares the company’s performance with its key competitor, the SPORTS DIRECT PLC. The report also includes background of both the companies and an industry overview. To better understand the performance of both the companies, the segmental analyses have been done for both region andShow MoreRelatedThe Theory Of The Capital Structure8603 Words   |  35 Pagesaffected. Though the literature teens with several studies on the effect of debt financing and its capacity to accelerate growth, the factors that affect capital structure of quoted companies in United Kingdom manufacturing industry as it affect the financial performance are yet to be documented. Theoretical postulation also abound in the literature on the influence of firms’ characteristic such as size, asset structure, age, growth etc. the finding of some empirical work were in agreement with some wereRead MoreMarketing Project of Reckitt Benckiser19417 Words   |  78 Pagesin 1995. Benckiser Johann A. Benckiser founded a business in Germany in 1823. Its main products were industrial chemicals.[6]  Benckiser went public in 1997. 1999 to present The company was formed by a merger between Britains  Reckitt amp; Colman plc  and the Dutch company  Benckiser NV  in December 1999. Bart Becht became CEO of the new company and has been credited for its transformation, focusing on core brands and improving efficiency in the supply chain. The new management team strategy of innovationRead MoreMarketing Project of Reckitt Benckiser19403 Words   |  78 Pages1995. Benckiser Johann A. Benckiser founded a business in Germany in 1823. Its main products were industrial chemicals.[6]  Benckiser went public in 1997. 1999 to present The company was formed by a merger between Britains  Reckitt amp; Colman plc  and the Dutch company  Benckiser NV  in December 1999. Bart Becht became CEO of the new company and has been credited for its transformation, focusing on core brands and improving efficiency in the supply chain. The new management team strategy of innovationRead MoreStrategic Management Term Paper8657 Words   |  35 Pages SURYA KANT MANI INDEX INDUSTRY PROFILE | 4-5 | Mission $vission | 5 | Organization structure | 7 | Org.analysis | 8-9 | Industry environment | 10-11 | Competitor analysis | 12 | Environment analysis | 13-15 | SWOT Analysis | 17 | Financial analysis | 17-18 | Acquistation | 18-20 | Objective of the study | 21 | Research methodology | 21 | Article | 21-22 | Strategic alternatives | 23-24 | Conclusion | 25 | Bibliography | 26 | Read MoreBp/Amoco Merger Acquisition6130 Words   |  25 Pages| | | 12/10/2012 | | Contents Time Line of Events 3 Introduction 4 Industry Analysis 5 Overview of ARCO s Business 7 Overview of BP Amoco’s Business 7 Value Creation from the Merger: 8 Competitors Analysis 9 Antitrust Issues 11 FTC Arguments 12 What Happened? 14 Divestitures 14 Phillips Acquires ARCO Alaska 15 FTC dissent 16 Performance and key Financials 17 Annual Shareholder’s meeting: 19 Conclusion: 20 Time Line of Events April 01, 1999:

Generally Accepted Accounting Principles and Capital Assumption Factor free essay sample

This case deals with the valuation of AirThread Connections Business (ATC) from the perspective of its potential acquirer, American Cable Communication (ACC). ACC is a large cable operator which serves the video, internet and landline telephony needs of millions of users across America. However it is recently looking to acquire ATC which is one of the largest wireless companies in the United States. This acquisition will bring with it certain synergies that both can benefit from, which is primarily the reason behind the valuation requirements of AirThread. Methodological approach to value AirThread American Cable Communication is interested in raising significant capital following the Leveraged Buyout (LBO) approach. This implies that the purchase is financed primarily through debt. As this means that ACC will not be maintaining their current debt to equity ratio therefore relying on the WACC method to calculate the value of AirThread would not be appropriate. For the valuation of AirThread in this case analysis we are using APV. We will write a custom essay sample on Generally Accepted Accounting Principles and Capital Assumption Factor or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page However we will still need to calculate the WACC for the purposes of the APV valuation. To calculate the discount rate for AirThread, we have looked at the industry Asset Beta (this measures the systematic business risk). The Asset Beta for each firm is calculated using the formula ? a= ? e/1+(D/E)(1-t) e. g. For Universal Mobile this value is computed as follows (we are using the tax rate as 40%) 0. 86 / (1 + (0. 923)(1-0. 4) = 0. 5534 The Industry average is simply the average of all the firms listed. Once we have the Asset Beta, we can calculate the Equity beta using the following formula. The highlighted row represents the average Debt/Value ratio for the industry as seen in the previous table. Therefore the Unlevered Cost of Capital for ATC can be assumed to be 8. 29% and the rwacc is 8. 01%. The rwacc is calculated using the formula rwacc = E*re/(E+D) + D*rd*(1-tax rate)/(E+D) Terminal Value Calculation of AirThread To calculate the Terminal value of AirThread, we will treat it like a perpetuity and therefore we need to account for a growth rate.

The Company A Global Presence Along With International Distribution

Question: How the presidency of Mr. Trump will effect on the business processes and the economic consequences due to it? What is the work culture in the car industry of Australia and the USA, the differences and consequences on the work life of the managers? What are the HR issues and related employee relationship issues affecting the work methods and work life, in the car industry of USA? Answer: Introduction The company Toyota Motor Corporation Australia has the trading name of Toyota Australia, operating with the Luxury and budget cars. In Australia, the company deals with the domestic customer segments along with the international customers of the neighbouring countries. The company has a global presence along with international distribution and production channels (Toyota.com.au 2017). The company was established in Australia in 1963 and the main production unit was set up in Victoria. In the year 2014, Toyota Australia announced to close down its manufacturing plant till the last of 2017, since the company was modifying their business structure as a national sales and distribution company over Australia. The report discusses about the effects and consequences aroused due to this decision. Along with that, the effect of the presidency of Donald Trump and the economic fragmentations due to it are part of the discussion. The role of the HR department is the major part in the situation and it is focused in this report. Along with that, the issues among the employees and managers are also evaluated and recommendations made to resolve it. Back Ground of study The Altona plant is the biggest manufacturing unit of Toyota Motor Corporation in Australia operated in the suburb of Altona and near to Melbourne Port. The plant mainly produces the Camry and Aurion with the target market in Australia and the Middle East. Apart from that, the company offers the market with a large range of products and hence earns a huge turn over (Afr.com 2017). The company has decided to relocate their manufacturing plant to a similar plan located in USA. According to a report by the Australian financial review, Toyota axed around 2600 jobs for this purpose and hence the workforce of the organization has faced a huge change and diversity. The HR managers are also facing various issues due to this and the employee management has become difficult for the top level management. Along with that, the presidency of Donald Trump is also affecting the financial status and approaches applied by the company to shift and expand over USA. Henceforth, the Human Resource department is facing both internal and external issues to handle and create a positive work environment for ultimate organizational growth (Reddon and Shuey 2015). Presidency and Approaches of Donald Trump The company Toyota Motor Corporation has planned to set up their new manufacturing unit in the city of California. The President Donald Trump has issued a threat against the Toyota Motor Corporation regarding the new plant development in the Baja California. The election of the president has affected the decision taken by the Toyota due to this purpose as this has appeared to be an obstacle of big border taxation for the exim of the cars and other necessities. The new president Donald Trump has imposed his decision over it as; Toyota Motor has to build their plant in US, not in Mexico, otherwise they have to pay huge border tax for the exports. The company has issued a statement in response assuring the US employment in the new production facility build up in Guanajuato. The company Toyota is strategically collaborating with the administration services of Donald Trump to get competitive advantages in the business along with the ner manufacturing facilities. The main purpose behind this strategy is to serve the target customers with best of their services. The entire automotive industry will be influence due to this collaboration, if happen in US. However, in the conversation over the social media, the labour negotiation issues has come up and the company Toyota has yet not modifies their decision for the approaches of Donald Trump (Garcia 2017). According to a report published by Heraldsun.com.au, the company Toyota Australia has announced the closure of the plant in the Australia as on 3rd of October in the year 2017. The decision is going to affect the family of 2600 workers. In the year 2016, Ford has similarly shut down their plant in Australia and that has majorly affected the employability status of the country (Heraldsun.com.au 2017). According to the report by Reuters.com, the new president Donald Trump has targeted the largest automaker Toyota Motor Corp to stop the outsourcing of the workforce from Mexico. Trump want the unemployed people of US to get placed in the company Toyota, which is itself can be compared as a good decision for the country, but it is influencing the present economic situation of the Australia. The broader side of such incident can be resulted in the cross- border trading and the economic losses to Latin America As per the report, Mr. Trump is going to force more American automakers to build their production facilities in US to accommodate the employment status of US (Reuters.com 2017). In the report it is said, Toyota and other various automakers such as Ford has exported more than 1.1 million vehicles to US from Mexico. Thus, Trump is reconsidering the terms of the North American Free Trade Agreement as happened with General Motors Corp and the countries like Canada and Mexico. Trump ha s also criticized the General Motors for importing the Mexican made vehicles. According to the report published by Usatoday.com, the decision of Donald Trump has accused the foreign automakers who use to make their vehicle in Mexico and export them to US, to pay 35% tariff for this purpose. The free trading agreement is going to be revised by the president to stop the market entry of the foreign exporter. The made in US strategy is adopted for developing the employment growth in the country. The Mexico plant has 2000 employees and the productivity is about 200000 vehicles. However, every foreign automaker is approaching the president for collaboration in this purpose and they are trying to get the more profit from market at any means. The strategy adopted by the companies targeting the new administration to shake hand in the development of the new business fairs among the country and the company. According to the report, the production unit in Guanajuato will focus on the production of Corolla cars and the old manufacturing unit of the Corolla cars will be rec onstructing their manufacturing facilities (Usatoday.com 2017). Australian Car industry The country Australia is famous for manufacturing the designer large sized cars. For the same, several global companies have chosen Australia as a major part of their global production. The companies like Ford Motor, General Motor and Toyota has a century of operation in the country. However, at present few of the companies has closed and few of them are going to close their production units in Australia (Productivity Commission 2014). In the past decades, the industry has employed above 50000 people in the automaker companies. The car industry has done huge investment in the economy of the country. There are several people whose life is dependent on the growth of the industry. According to a study, it is counted as up to $5 billion dollars of investment by the car manufacturing industry in the country. In the economy all the big vehicles and the small vehicles producers are participating and hence influencing the position of the country in the international market (Dechezleprtre, Neumayer and Perkins 2015). The country itself has 64 automotive brands which are also exporting cars to other countries thus earning foreign currency for better economic growth of the country. The cross country trades affect the life of the employees working in those companies. However, labour cost in Australia is quite high rather than the neighbouring counties and hence it can be concluded that the employees working in the car industry is having sufficient resources for their family (Adelaidenow.com.au 2017). According to the report, the assembly line workers in Thailand use to get paid more as $6 per hour rate and $12500 per year, whereas, the Australian Manufacturing workers use to get wage of $69000 per year. The reason behind such above average wage rates in Australia is concluded as the Free Trade Agreements among Australia and other countries regarding the import and export of the spare parts and the manufactured big sized cars. According to the report by Federal Chamber of Automotive Industries, the automaker industry is contributing for last 70 years and hence supporting the families of the people who are working in various job roles such as manufacturing, retailing, sales, servicing and the repair and the logistics. The industry used to get an annual turnover of $160 billion and the government of the country is getting various numbers if taxes and again contributing for the development of the status of the people in the country. The industry uses to provide best ever technology for the safety of the workers during the production and other manufacturing procedures. Thus, the employees use to get secured workplace and hence assurances for future for their family. The organizations used to provide specialized professional training to their employees for developing the skills. However, the employees use to get support in education and growth from their companies (Fcai.com.au 2017). According to a report dealing with the present scenario of the industry, it is stated that, the biggest Australian manufacturing companies are shifting their production units since the labour cost is high in Australia and the other countrys labour market can provide the companies with low production costs. These approaches by the various car manufacturing companies are resulting in the huge fall in the economic conditions of Australia. Along with that, the job cuts are indicating towards the imbalance of the employment situation in the country. According to the Australian Bureau of Statistics, the industry currently employ around 8.5 % of the total workforce of the country which is going to be declined in near two or few more years. The report has focused on the import tariffs, Free Trade Agreements and the work conditions imposed by the trade unions (Swinburne.edu.au 2017). US car Industry According to the article published by Vault.com, there are about 253 million cars registered in the US and hence it reflects the usage of the cars in the country. However, the American has increased the use of the cars in last few decades and hence it has increased the growth of the car manufacturing industry in US (Lichtenstein 2013). Along with that, the people who are working in the US car companies, getting the best wage rates and they are having best work environment too. However, the industries in US use to face extensive competition not only among the companies but in the organizational people. This seems to the peer pressures hampering the work life balance of the employees in US (Moreno and Terwiesch 2015). When discussing about the employment scenarios in the car manufacturing industry of US, it is necessary to state about the job availability. There are several types of jobs available in the industry and blue collar jobs are comparatively more paid relating to other countries. However, there are several trade unions controlling the workforce in the production units and hence arousing various labour issues among the worker which the HR managers use to face difficult for solving (Correcher et al 2017). There are basically two type of remuneration, hourly based which are considered for the union workers and the salary based which are considered for the nonunion workers. The industry is employing around 1.5 million people of the country and the management of the countries uses to face various labour issues such as strikes due to attrition rate, salary structures and the policies for employees benefits imposed by the organization (Vault.com 2017). According to research it is seen that, the workers in US use to have less work life balance since they use to face huge work pressure in their organization. The US car industry use to have huge demand in the market and hence they put pressure in the production units. Thus, the work life balance of the workers get ruined. Apart from that, it is seen that, the employee satisfaction rate over the industries are less than the industries of other countries. However, in Australia, better employees satisfaction rate is seen due to less work pressure as compared with US. Differences between the two industries Comparing both the countries, it can be stated that, the workers of both of the countries use to get high wage rates and along with that, they use to get supports for various issues from the Organizations. In the country Australia, there is less demand than in the US, hence the automaker companies has more opportunities in US rather than Australia. However, the wage is higher in the country. Thus Toyota has taken the decision to shift to Mexico. The situation can ruin the life of the old employees of the production unit of Australia. However, it will put an economic effect on both the countries. There is a huge gape among the car industries of the two countries in the matter of employees satisfaction. The work satisfaction of the workers results in motivation and employees engagement in the work better. However, the excessive work pressure sometimes ruin the path of achieving goals. Recommended HR strategies for the situation and issues For the internal situation The HR managers of Toyota need to handle the situation strategically and they also need to put some effective methods to help the old employees. For this purpose, the management can help them in new employment or help them in acquiring new jobs in other companies. Along with that, the company should help the old employees in further professional studies that, the employees can approach for better career. Due to expansion the company can face various employee relationship issues. Such issues should be handled with regular meetings and open conferences. For the external situation Since the company is going to expand, the further recruitment policies need to be modified. To handle the approaches of President Donald Trump, the company can approach for hiring work force from US as for international placements in their Mexican firm. This strategy will help in collaborating with the administrative services of Mr. Trump. To handle the diversity among the employees few skill development programs and team management training should be given. Conclusion The report has gone through the view of the car manufacturing industry of Australia and US. Along with that, the comparison and evaluation of the both industries are done in this report. The report concludes that, there are various issues and obstacles the HR managers of Toyota going to face, but there are few solutions too. The recommended strategies can help the managers and the organization in handling the situation as caused due to the approaches of President Donald Trump. However, the approaches are good for the people of US. References Adelaidenow.com.au. 2017. Why Australia's car industry died. [online] Available at: https://www.adelaidenow.com.au/technology/why-australian-car-manufacturing-died-and-what-it-means-for-our-motoring-future/news-story/0428dc235d1b44639459959f5a3bbf9b Afr.com. 2017. Toyota will shut its car making plant in Melbourne on October 3. [online] Available at: https://www.afr.com/business/manufacturing/toyota-to-axe-2600-jobs-when-car-making-stops-on-october-3-20170131-gu2hmb Armstrong, M. and Taylor, S., 2014.Armstrong's handbook of human resource management practice. Kogan Page Publishers. Correcher, J.F., Alonso, M.T., Parreo, F. and Alvarez-Valdes, R., 2017. Solving a large multicontainer loading problem in the car manufacturing industry.Computers Operations Research,82, pp.139-152. Dechezleprtre, A., Neumayer, E. and Perkins, R., 2015. Environmental regulation and the cross-border diffusion of new technology: Evidence from automobile patents.Research Policy,44(1), pp.244-257. Fcai.com.au. 2017. Australian Automotive Industry. [online] Available at: https://www.fcai.com.au/library/publication/fcai6049_full_version_final_(2).pdf Garcia, F. 2017. Donald Trump just threatened one of the world's biggest companies. [online] Independent.co.uk. Available at: https://www.independent.co.uk/news/world/americas/donald-trump-toyota-baja-california-plant-jobs-twitter-latest-a7511981.html Heraldsun.com.au. 2017. I have three kids and a wife to support. [online] Available at: https://www.heraldsun.com.au/business/toyota-to-shut-down-altona-plant-with-thousands-of-job-losses/news-story/763b7e389d8977e7caa804e773726b6e Lichtenstein, N., 2013.State of the union: A century of American labor. Princeton University Press. Moreno, A. and Terwiesch, C., 2015. Pricing and production flexibility: An empirical analysis of the US automotive industry.Manufacturing Service Operations Management,17(4), pp.428-444. Productivity Commission, 2014. Australias automotive manufacturing industry. Reddon, J. and Shuey, K., 2015. Exploring the effects of manual labour in a Toyota manufacturing company on a production employees mental and physical health. Reuters.com. 2017. Trump hits Toyota in latest broadside against carmakers and Mexico. [online] Available at: https://www.reuters.com/article/us-usa-trump-toyota-idUSKBN14P27S?type=companyNews Swinburne.edu.au. 2017. Collapse of Australian car manufacturing industry | Swinburne news. [online] Available at: https://www.swinburne.edu.au/news/latest-news/2016/10/collapse-of-australian-car-manufacturing-industry-.php Toyota.com.au. 2017. Toyota About The Company. [online] Available at: https://www.toyota.com.au/toyota/company Toyota.com.au. 2017. Toyota Key Facts. [online] Available at: https://www.toyota.com.au/toyota/company/key-facts Toyota.com.au. 2017. Toyota Operations. [online] Available at: https://www.toyota.com.au/toyota/company/operations Usatoday.com. 2017. Trump attacks Toyota for expanding in Mexico to sell in U.S.. [online] Available at: https://www.usatoday.com/story/money/cars/2017/01/05/donald-trump-toyota-manufacturing-mexico-jobs-nafta/96205464/ Usatoday.com. 2017. Trump attacks Toyota for expanding in Mexico to sell in U.S.. [online] Available at: https://www.usatoday.com/story/money/cars/2017/01/05/donald-trump-toyota-manufacturing-mexico-jobs-nafta/96205464/ Vault.com. 2017. Automotive Manufacturing|Vault.com. [online] Available at: https://www.vault.com/industries-professions/industries/automotive-manufacturing.aspx