Managing people in the car industry. Flashcards
What are the 4 leadership styles?
- Paternalistic
- Democratic
- Laizze faire
- Autocratic
How does the government influence the car industry in the UK?
The shift to electrified vehicles is the biggest challenge facing the sector. The government is already working with the industry to attract additional battery manufacturing to the UK but the report calls for a binding target of 60 GWh of battery capacity to be built by 2030. These ‘gigafactories’ would give British manufacturers the capability to produce up to one million electric vehicles a year and ensure tariff-free access to critical markets in the EU.
What is the positive impact on employees if a car manufacturer decides to operate a high level of capacity utilisation?
- Operating at a higher level would lower fixed costs, allowing it to charge low prices for its cars which might increase sales.
- For long-term development, it may involve the recruitment of new permanent staff and supervisory opportunities for existing staff.
- If short-term increase in capacity utilisation, there may be some welcome overtime for existing staff or more hours for staff on zero-hour contracts.
- Car companies may recruit temporary staff on short-term contracts if uncertain about the cause of the need to increase capacity utilisation.
What is the negative impact on employees if a car manufacturer decides to operate a higher level of capacity utilisation?
- Depends on the starting point. Higher than 95% or higher than 45%? The impact on the employees may be different.
- Higher demand for staff could be met by offering existing staff more hours. This depends on whether the increasing capacity utilisation is seen as a long-term move or a temporary move to increase demand.
- A sudden increase may place undue pressure on staff machinery so maintenance staff may be put on more strain.
- May put pressure on machinery reducing productivity and leading to higher average unit fixed costs.