Case ID: HROB138
Solution ID: 37159
Words: 1257
Price $ 45

HR Restructuring at Nissan

Overview of Case Solution

Nissan, an automobile manufacturing firm, had a decent setup and was performing reasonably well until 1990s when it started sinking into a financial trap of its creditors. It wasn’t long before the company decided to find a new partner and form an alliance in order to end the distress. In 1999, Nissan formed an alliance with Renault, a French automobile manufacturer, by selling just over one – third of its stakes. Renault’s Chief Executive Officer, Carlos Ghosn took over the same position at Nissan, as well, and lead both firms. Ghosn realized that Nissan Motor Corporation lacked a vision, direction, and organizational culture, which had led to such serious problems. He immediately started to restructure the organization from all aspects even by putting his job on the line. It wasn’t before long that his efforts started reaping rewards and Nissan Motor Corporation was once again on the road of profitability. After leading both companies for over a decade, the compensation package of Carl Ghosn came into limelight as it was published by one of the leading global magazines. As the figure was disclosed, many stakeholders and media houses started discussing and debating whether such a huge package was acceptable or not. This response aims to strategically analyze whether the compensation package is right or unacceptable.

Excel Calculations

Questions Covered

1.       Problem Identification

2.       Problem Evaluation from Different Aspects

3.       From Human Resource Perspective

4.       From Strategic Perspective

 5.       Recommended Action Plan

Keywords

Turnaround, Competency Management, Performance Management, Succession Management, Human Resource Management, HR Practices, Culture, Restructuring Strategies, Decision Making, The Nissan Way, Nissan, Talent Management, Incentives, Reward, Career Development, Carlos Ghosn, Diversity, Empowerment