Question: Harley-Davidson
Revving It Up: Since its founding in 1903, Harley-Davidson Motor Company has survived wartime economies, the Great Depression, overseas competition from Japanese manufacturers, and in 1985 the threat of bankruptcy. When it went public in 1986, a new era began. Harley tackled problems of global competition and the need for U.S. expansion. More importantly, it broke away from the adversarial model of management versus union by creating a "circle organization based around the core processes at Harley-create demand, produce product, and provide support."
Partners in Business: Harley-Davidson's unique partnership style of management allied with labor was labeled the High Performance Work Organization (HPWO). The strategy minimizes red tape and calls on employees for leadership, responsibility, and ingenuity. Workers provide input at every stage of the manufacturing process. The absence of the "us against them" mentality so often found in labor relations-coupled with a true sense of ownership by unionized workers- has motivated Harley employees to work toward
a common goal. In addition, the process has lowered the company's costs, allowing it to create new jobs and expand operations.
Happy Workers, Humming Hogs: The HPWO is paying off for the motorcycle manufacturer, which in 2004 was named one of America's "100 Best Places to Work" by Fortune magazine. Employees and shareholders alike have cause for celebration. Since its turnaround in 1986, the company has experienced tremendous growth and reaped impressive profits. Harley-Davidson now sells motorcycles in over 60 countries. In 2006 it opened its first retail store in China. Now Chinese bikers donned in leather can buy a true American icon. Bandana sold separately.
Analyzing the Impact Question
1. Summarizing What change in business practices helped Harley-Davidson boost production and profits?
2. Drawing Conclusions Harley-Davidson also made a commitment to using only U.S. workers and parts suppliers. How might this commitment help or hinder the company? Explain.