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Consulted Magna with Recommendations

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Executive Summary Magna International Inc. (Magna) is a Canadian car and light trucks parts maker, who design, develop and manufacture automotive systems, assemblies, modules and components, as well as engineers and assembles complete vehicles, primarily for sale to original equipment manufacturers (OEMs). Magna operates in three geographical regions: North America, Europe, and the rest of the world (mainly Asia, South America and Africa), making Magna an international company. We have investigated Magna and identified two key issues they are currently facing. Firstly, Magna is suffering Quality Control problems in their divisions, such as Magna Powertrain, Magna Steyr, Magna Closures, Magna Car Top Systems, etc. The current method of dealing with problems is a weak matrix structure. However, we recommend two alternatives that will increase Magna's efficiency. Our first recommendation is to create a Dedicated Team. Our second recommendation is to enhance the existing Matrix Structure, by making it stronger. We illustrate numerous strengths and weaknesses for each recommendation. The second issue Magna is dealing with is the increased pressure to unionize their employees. To a degree, this matter seems unavoidable. We simply recommend Magana create a Management's Rights Clause and/or Management Prerogatives Rights in order to protect their rights and clarify various aspects of employment rights from the beginning. Therefore, Magna needs to assess these alternatives from their internal perspective. As a consulting agency, we can only suggest alternatives that would suit the organization and improve their current drawbacks. Introduction Magna International Inc. (Magna) is a Canadian car parts maker and supplier to a wide variety of automakers throughout the world. The systems Magna provides are major components in the final assembly of cars, for GM, Ford, Chrysler, Mercedes, BMW, Toyota, Honda, Porsche, Volkswagen, along with others. ...read more.


This goal-oriented structure makes planning, control and general project management simpler and easier than with other forms of organization. There can be much better integration of everyone who is involved in the project and communication between them (formal and informal) is faster, direct and frequent. Teamwork is much easier to develop and therefore creates a higher degree of commitment to the project objectives, especially when the team is permanent. Conflict is likely to be less than other project organization forms and if complications arise it can be solved more easily. Consequently, project teams tend to maximize the probability of completing projects on time, within budget and to specification. Unfortunately, teams are not the most flexible way in which to use company resources. If more than one team exists in the same company, it becomes necessary to increase the numbers of specialists on the payroll because each specialist (or group of specialists) must be allocated fully to each project team for the project's life. It is usually difficult to switch specialists from one project to another to take account of day-to-day fluctuations in workload. Division of labour within functions is therefore more difficult so that a dedicated project team might have to make do with a generalist in a function where a specialist would be preferred. Therefore, although the Dedicated project team (separate divisional form of project organization) enables projects to be managed more effectively than the functional organization and it avoids some of the problems of more complex organizational forms, it can generally be used on larger projects capable of sustaining bigger functionalist groups within the team. The team structure is appropriate, therefore when a company is handling a single important project, or where one project is much more important than the others, it justifies setting up a completely separate company division. ...read more.


If this union arrangement is to take place it poses controversy given that workers "lose the right to strike [and this] takes away a fundamental historic right in exerting pressure on management for change and gains in wages and benefits". In the Magna agreement, the traditional grievance process will be replaced by a 'concern resolution process'. In addition, it seems as though Hargrove, the CAW president, is willing to go to unorthodox lengths to secure more members for a CAW whose auto-sector membership is in long-term decline. Essentially, it is as though he is trying to provide job security but in our opinion may be doing this to collect union dues. It would be in Magna's best interest to establish a Management's Rights Clause, which states that it gives the employer all rights to manage the business except as specified in the contract. For example, if the contract does not specify the criteria for promotions, with a management's right clause, managers will have the right to use any criteria they wish. Another clause of benefit to Magna would be to put in a Management Prerogatives Rights Clause. This clause gives management the right to schedule work hours, hire and fire workers, set production standards, determine the number of supervisors in each department and promote, demote and transfer workers. Conclusion In conclusion, Magna's current issues are QC problems and union pressures. In terms of QC problems, we recommended implementing a Dedicated Team or Strong Matrix Structure. In terms of Union pressures, we recommended Magna create a Management's Rights Clause and/or Management Prerogatives Rights Clause to protect their interests. Basically, we are confident that which ever alternative Magna selects, their current performance will improve. Appendices Appendix A: Appendix B: Appendix C: Appendix D: ?? ?? ?? ?? 1 ...read more.

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