Summary. The retirement of CEO of Renault, Louis Schwei

Added on - 19 Sep 2019

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SummaryThe retirement of CEO of Renault, Louis Schweitzer, Carlos Ghosn was in a dilemma of how torun Renault and Nissan at the same time in a successful manner. Carlos Ghosn was posed with achallenge of implementing successful techniques and utilising his experience so as to run boththe companies in a profitable manner. The first step was to use the Cross Company (CCT) alongwith Cross Function Teams (CFT) for creating open communication between both thecompanies. The experience of Ghosn was highly successful in proving the efficient profitabilityof Renault. Secondly, Ghosn had to boost employee engagement and employee morale forcreating a productive company culture. Therefore, he walked the plant floors at Nissan andinteracted with the various employees and talked regarding their culture. He further assured theemployees that no layoff would be performed and engaged with them to increase theproductivity. Ghosn cleared out the importance of corporate culture right and mentioned thatculture is important than the resources of the company. He dumped the seniority rule and startedpromoting the capable younger employees. The whole team reviewed performance records of theemployees and changed the long-standing practices.The whole compensation system was revamped so as to focus only on the performances as therewere no incentives in the system. The previous system did not give a considerable amount ofincentive to the upper management. Nissan changed it all and offered high incentives to the highperformers which amounted more than one third of their annual pay packages along with variousstock company incentives.One another problem encountered during the whole scenario was inability of accepting anyresponsibility. In the case of poor performance, the company blamed another one. The salesdepartment saw to blame product planning which in turn blamed engineering and engineering
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