Employee Involvement At Nissan Commerce Essay

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Part 1 Analysis of the reasons why the AEEU entered into a single union agreement and the advantages and disadvantages both from management's and union's perspective of signing a single union.

AEEU is apparently efficient and effective in terms of managing the opportunities and challenges brought about by employee involvement to their organization. According International Research Journal of Finance and Economics (2009), due to the globalization of production processes and markets, an ever increasing number of business organization and its employee have to deal with issues in different settings, they faces the dilemma of how to respond to many opportunities where there is no specific law to achieve successful results. Furthermore, the current set-up for Nissan and their employee's involvement and organizational design were also found to be weak and ineffectual in terms of managing the risks and challenges brought about by the rapid growth of technological advancements which may cause a negative effect on the businesses. They are considered inapplicable to match up and go with the current flow of business management that is why this single union agreement is so important. From the point of view, the employees will benefit personally if the business itself is successful in dealing with different challenges and opportunities in the future.

Moreover, while these opportunities address various dimensions of challenges when organization, there are still deficiencies in terms of addressing new challenges surfaced by the employee relations or business practice. The said opportunities that continue to pose as hurdles for an effective function of an organization are the various employee practices, innovation in products and services, influence of culture and ethnicity, regulatory constraints and managerial jurisdiction. This idea provides the AEEU in adopting a strategic management perspective that integrates the single union agreement with planning that requires information and communication allocation with their subsidiaries.

The reason for this agreement also embodies excellent and successful strategic alliances with the employees which has a unique set of attributes and criterion that distinguish them from the rest. The validity of this is supported by its consistency not only with the framework of the said agreement but also by the sound objectives of the company with the responses to the reasons empirical to effective management. The systems of an effective organization as well as its strategies and implementation, ought to be the direct responsibility of the management. This is because if such was the case, union will be allocated and will be set clearly to all concerned and the planning, implementation and control will be handled efficiently (Smith, 2006).

While it may be difficult to actually predict the compatibility between the management and employee is maintained, it is convenient to actually think of specific strategies to determine whether the relationship will work or not. This is not just a way to check the success with the party involved, but also a means for identifying potential evolutional processes once the agreement is working.


1. Increase compensations for its members. Single union's agreement tends to have higher wages for its members than other industries.

2. Counterbalance. It can also increase employment opportunities. Management will also have a market power in setting their standard wages and the process of employing workers.

3. Representation of Workers. This single union agreement can also protect the employees from exploitation, and aid to uphold safe and healthy legislations.

4. Productivity deals. AEEU single union agreement can aid in negotiating productivity deals. This agreement can also help the management to increase output; and enable them to be able to afford higher opportunities and wages which is important in the implementation of new working practices that improve the employee and the company's productivity.

5. Management Benefits. Modern economies have seen a fall down in union power because of manufacturing decline and increase in management perspectives. Management through this single union agreement tend to protect employers in these kind of jobs

6. Teamworking. Single union agreement increases unity and teamwork success among employees and management. Teamwork also produces quality labour and flexibility among them.


1. Create Unemployment. If the industry is competitive, higher wages will cause unemployment that can cause wages to go above equilibrium through the possibility of strikes.

3. Lost Productivity. If this single union failed to manage, strike will rise and low productivity will increase that leads to lost output and sales.

4. Wage Inflation. This agreement can be a powerful unity tool to bargain for higher compensation which is above the inflation rate.

Continuous enjoyment of advantages can only happen if the level of performance that a union attains in its implementation of the unique value-enhancing strategy is not concurrently being done by existing or potential threats and the management are either not reluctant or able to recreate the benefits of this particular agreement. Thus, AEEU single agreement can only arise from the maximization of the right strategic assets (Smith, 2006).

Part 2. To what extent is the commitment of Nissan employees enhanced by the promotion of an employee voice within the factory.

The Nissan's employee that attached to the company for a variety of reason that induced them to established social association such as union. Once initial ties are forged and the rewards that they provide to each other serve to maintain and enhance the bonds. This is when a stronger commitment is developed. The opposite situation is also possible: the insufficient rewards, an association will weaken or break. Rewards that are exchanged can either be intrinsic (for instance love, affection, and respect) or extrinsic (for instance money and physical labour). The party cannot reward each other equally, when there are unequally in the exchange, a difference in power will exchange within association. When one party needs something for another but has nothing comparable to offer in return, four other alternatives are available, one of which is that people can find another source to obtain what they need. This is the scenario when employee leaves their job upon experiencing dissatisfaction which may be due either to lack of motivation or insufficiency of reward. The situation above describes the scenario of Nissan's employees. Their commitment enhanced by the promotion of their welfare is stimulated (Kumar, 2009).

Additionally, employees gained satisfaction with the presence of motivational factors, whereas the presence of these factors such as improving their voice in the company does lead to satisfaction. Employees are also motivated by the challenges and pleasure they get out of the work. They are moved to work based on the satisfaction of their needs or on some motives which drive them to work. Another area to observe is the communication in the work setting and how the management strategies attain their role as advocate.

In Nissan's case, diversity has become an increasingly important issue to associate with the agreement. First, we need to know why their voice and communication patterns fail and must have changed the approaches accordingly to sustain the commitment. Poor communication stands out in both practices as the number one cause of ineffective performance in many business and organization. It is usually resulted in: low productivity, miscommunication, poor quality, low morale, accidents and most other undesirable events impacting affectivity and productivity of a certain society or organization (Groth, 1999).

Sharing and accepting ideas and suggestions are also best process to achieve optimum level of functioning among employees. Communicating effectively and successfully with on different issues in the company and their welfare most likely occur better and functional communication and commitment processes at the cure of most problems in business and organizations or society. The extent to which commitment will be accommodated will be in the area of productivity, quality and flexibility (Kumar, 2009).

The main purpose to examine the employee's commitment is ensuring that the action done by the management is effective or the goals are met. Problem solving is important to unveil the underlying issues concerning the problems arises that causes ineffective process among the employees which is directly affected the performance of their work. Poor communication with the management is considered a culprit in these problems that increases the tendency to solve the problem in a long period of time of worst, never. These are one of the underlying problem caused the communication breakdown in business, looking at the workplace and environment in the scenario. Poor communication is also the individuals of varying ethnic, religious and cultural backgrounds, miscommunication is almost inevitable, these happens with the underlying cause is a lack of understanding, time constraints or even intolerance.

The enhancement of voice of the employees depends upon several human resources related factors, such as the personal, interpersonal, group and intergroup interactions within the organization. Therefore, for a Nissan's employee objective to be successful, the key players in both parties have to be aware of the human capital problems that are associated with the relationship (Monat, 2003).

More importantly, the management should be willing to work out a strategy that can come up with collaborative efforts to solve these problems. Employee commitment must be earned rather than simply assumed, and for this reason, the HR department must be consulted every step of the way to ensure a successful combination of the two companies, at the practical as well as the abstract levels of engagement. This willingness to work out solutions must look at the human side of the merger instead of focusing merely on the values process, structure, formal roles and indirect communication usually associated with the HR practices (Groth, 1999).

As the managerial mystique or the tendency to gloss over the people, ideas and feelings can be affected. There is a stronger emphasis on control and professionalism before and during the process, and any human capital-related problems are usually taken place. To increase the commitment more, the management should listen to employees concern. If they ask for wage hike, the management should be able to come up with a salary restructuring that is fair and commensurate to the job functions and responsibilities that the employees undertake. While the top executives are given the unilateral right to change pay levels as they see fit, they are also constrained by applicable laws and by the level of service and competency that the employees can offer the new firm (Goulding, 1996).

Providing employees with reward or compensation status to make employees feel valued and appreciated are very important. Offer them with meaningful and challenging work assignment which enables creativity, innovation, and progress according to long-term goals. According to Maslow's hierarchy, various employees will be motivated by completely recognizing different needs including work and financial security (Goulding, 1996).

In Nissan's factory, every employee is assigned to do some specified tasks, therefore a feedback from the immediate supervisor and performance appreciation whether verbal or written is a must to maintain employee's motives in a good status, to encourage the employee's will to improve, and to closely adjust deficiencies in the employees performance. The work field is in continuous flux, everyday is a new day that opens its doors to innovations, improvements, and developments. The speed motion of development is in all fields, and the quality consideration is of great concern especially for competitive work forces.

As a result of commitment enhance by the agreement, every employee is starving to maintain and improve "quality". In fact, financial support is the backbone for quality maintenance, but it really has to be joined with powerful human resources who will know how to efficiently spend and manage the expenses. In the light of that, continuous development training is a must to keep the employed staff updated with all recent news concerning their fields. Staff development and commitment is a predetermined program with a detailed schedule of all expected activities the employee is supposed to perform for the organizational interest (Kumar, 2009).

As a result, the employee will be more knowledgeable, confident and productive to the place he/she works for. The work environment includes the preset policies and procedures which should be written carefully in the sense of serving the organization objectives and mutually allowing the employees to feel respected, acknowledged, and protected from any misbehaviours. Job satisfaction is usually measured by a systematic survey that assesses the needs of employees and it is followed by actual actions and recommendations