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Public administration can be defined as management and supervision tool used by the executives in an organization. Public administration can be defined as study of the public organizations, their association and relationships to each other and the public. Public administration deals with how private and public organizations are managed and controlled by their policies which are designed by the management. Organizational policies are designed to ensure that aims, objectives and goals of the company are achieved and realized. The policies are created and planned to meet the interest and needs of the organizations and their clients. Public administration enhances that policies and programs of the organization function and effective management of public programs. The study of public administration will enable the private institutions, public organizations and government departments to facilitate better decision making and form alternative policies, ideas and programs in time of conflict resolution (Krech& McNeill, 2004)
Public administration is also concerned with regulation and evaluating of the conduct and behaviors of the private and public organization officials. Public officials and administrators should be responsible for their conducts while working in the public, private departments in all levels of organizations and government. To some, public administration is considered as a career and a field of study. Many scholars differ about whether the study of public administration can be termed as a discipline or not. This is chiefly due to the fact that some scholars like Donald Kettl consider public administration as a sub division of political science. Scholars like Luther Gulick regard public administration as sub branch of administrative science. Definition from the Public Administration (NAICS 91) sector states that public administration is composed of foundations that mainly involve the activities of an organization. The activities enforce and interpret the laws and regulations of the administrative policies, programs and rules.
The paper discusses the context of public administration in relation to the history, connection to the public services, ethical issues and dilemmas, management and leadership, power and influence, accounting, collaborating, coordinating, finance and budgeting and challenging issues in the Hyundai motor company.
History of the Hyundai motor company
The Hyundai motor Company was founded in 1967. Chung Ju- Yung founded the Hyundai Engineering and Construction Company in 1947 and the Hyundai motor company is a sub branch of the parent company. The Hyundai motor company is the chief company of the Hyundai Kia automotive group which is the fifth largest automobile maker in the world. The company is the manufacturer of the world fastest growing automobile vehicle, the Kia. The Hyundai motor company has its headquarters based in Seoul, the capital city of South Korea. The company operates the world largest incorporated and integrated automakers manufacturing facility (Krech & McNeill, 2004).The facility is based in Ulsan and is able to produce one million and six hundred thousand units yearly. The company has employed over seventy five thousands employers worldwide. Hyundai’s motor companies are based in 193 countries where its car units are sold through 6100 dealerships and showrooms worldwide.
The Hyundai logo is a partial and stylized H symbol which emblem the company shaking hands with its consumers. The word Hyundai translates from the term modernity which means the integration of the new concepts to enhance its production. The company’s first car model was built in partnership with Ford Motor Company in 1968 and named the Cortina. The Pony, the first South Korean car built was released to the Korean market. The car was designed by Italian designer Giorgio Giugiro and the command clout technology was provided by the Japan’s Mitsubishi Motors. The exports started the next year mainly to Ecuador before penetration the market of the Benelux countries. In 1991 the company succeeded to make its first gasoline driven engine with a four cylinder alpha and transmission enabling technological independence of the company. Due to its high quality and affordability, the Hyundai began to sell it cars in the U.S.A and Canada markets in the year 1983.
In 1986 the Hyundai become the fastest selling car in both the Canada and U.S.A markets and awarded the Bes product vehicle by the fortune magazine. Later the company invested heavily in design, manufacturing, quality and long time research to increase its markets in the World.
Provisions and connections to public services by the Hyundai Company
Public service is a phrase used to refer to services offered by the company or an organization to its clients and employers. The services are offered either directly or by funding the private provision of the services. The direct services for example from the Hyundai Company may involve after sale services and 2 year warrants. The funded services involve heavy investments in quality improvement, manufacturing, design and upgrade the research of the company. Direct service offered by the Hyundai Company in the U.S.A is provision of a two year warrant to its customers. Public services by the Hyundai motor company is provided for different reasons including; a form of advertisement, quality improvement, customer satisfaction policy, social and political reasons. Public service by organizations and companies nowadays are termed, apt and are considered as essentials and vital requirement to the modern life that guarantee our morals, fundamental and elementary human rights (Margulies & Peterson, 2009).
In 2010 the Hyundai motor company committee met in Al Shaikh in Egypt to discuss Middle East customer’s requirement and how to enhance them. The meeting was held to look for ways forward to enhance the product quality as a way of offering public services to its clients. The objectives of the meeting were to understand the needs and interest of the clients and provide the best results and services. The Company is community development programs including the outstanding public service award offered to individuals and organizations that enhance safe communities and schools. Hyundai Motor American President Finbarr O’Neil was awarded the prize for his role to ensure a safe community. He designed programs to reduce violence in Maryland schools. In Asia, Hyundai company supports provide equipments, services and facilities to the poor population in sporting events (Margulies & Peterson, 2009).
In 2002, the company was the official sponsor of the 2002 world cup held in South Korea (Margulies& Peterson, 2009).
Ethical issues and dilemma in Hyundai Motor Company
Ethics is a division of philosophy which tries to answer questions about morality. Ethics tries to address the concept between two different and contrast phrases for example good and evil, crime and justice and virtues and immorality. Ethical issues and dilemmas demonstrates how on a free market, the self interest of Hyundai company will result to undesirable outcomes. A free market will result to inequality in income levels, market power and wealth distribution. The free market has caused the Hyundai Company to be a monopoly supplier in South Korea hence exploiting the consumers. Monopolistic buyers can also exploit supply firms by forcing the company to only comply with their needs and interests (Wyschogrod & McKenny, 2003). For example the Hyundai Motor Company mainly complies with interests and needs of the South Korean where the company is based. The worldwide inequalities in income have resulted to unethical practices such as exploration of human labor.
Quality issues have been a problem for the Hyundai Motor Company resulting to a dilemma and unethical practices. A complain was filed by Olivier .T about a Tiburon Hyundai he bought in 2003. He complained about the chipped paint in the front of his bumper and the back hood of his car. Although the policies of the Hyundai company states that the paint is give a 3 year warrant or 36,000 miles, Olivier was not paid (Gazzaniga, 2006). The dealer insisted that Olivier may have caused the damage by hitting rocks in the freeway and the warrant did not cover the damages. Patti Owens from Riverside California complained that when she bought her first car, Hyundai XG300 and took it for servicing for the front brakes to be fixed she was shocked. With only 14,000 miles and just over a year in use, she was informed by the dealer that the brakes did not need replacement if the brakes had been cleaned at 7,500 miles. The car did not only need brakes change but oil change which she was required to pay bearing the fact she had not been informed about the problems. This is contrary to the provisions made by the Hyundai’s warrant that a new car shouldn’t have its brakes replaced that quickly and incase of such an event the company is reliable to pay the expenses (Wyschogrod & McKenny, 2003).
Leadership and management of Hyundai Company
Chung Ju Yung founded the Hyundai engineering and construction company in 1947. The company is the parent company of the Hyundai motor company. To overhaul its image as a worldwide brand, the company in 1998 changed it leader. The company’s founder and chairman transferred his leadership to his son Chung Mong Koo. The strategy used by the Hyundai over the years has been to either bring leaders from other companies or to directly promote its employees from within the company (Chong & Hwuan, 1997). 1n 2003, the leadership research in the company has provided fascinating and attractive statistics. The research found out that only 22 percent of the executives brought from outside the company’s employees remained after 5 years. It was also noticed that in the same period, 75 percent of the employees who were promoted from within the company remained. The research has shown that it was worthy building and cultivating company and homegrown leadership for effective administration of the company. However questions were asked about the company’s ability to develop and foster its future leaders in a tight labor market.
The rapid growth of Hyundai motor company is also enforcing the company to look for ways and strategies to continue its growth. The pressure is to find appropriate ways to mould and develop its employees to be in leadership positions. The Hyundai management is tasked with all the organizational activities and action which involves organizing employees together for the company to achieve its aims, goals and objectives effectively and efficiently. In the Hyundai Company management involves leadership styles used, systems used, objectives, controlling, development, consulting, strategic management and customer relationship management. The company through management is able to resource, arrange and operate its financial resources, technological resources, natural resources and the human resources. The Hyundai executives realized the importance of creating and use of ample and inclusive programs. The demanding course would center on enhancing growth of accountable management instead of simply providing a general overview of the issue. The management level in the Company has come up with a program planned and designed for three different groups namely; managers and executives, exempt level employees who include analysts, administrators and field representatives and non exempt employees who show management skills (Chung, 2004).
Hyundai power and influence
The power and influence of Hyundai has being caused by its leaders and effective business strategies programs. The founder and former chairman Chung Ju Yung was well connected to the presidents of other countries. He was a friend of the President of Philippines, Mrs. Gloria and the former President of the United States Mr. George W. Bush. His connections give him favorable privileges that enhance an appropriate environment for his business. It included favorable business policies like easy entry to the market, provision of incentives, reduced tax rates and protective policies. The current president of South Korea, Mr. Myung is also the son of Hyundai motor company founder and former chairman Chung Ju Yung. The company’s power has resulted due to the strategies used. Strategies include employees aligning themselves as teams or as individuals and work towards attaining the objectives of the company or the department. The company has established and communicated to its employees about its desired goals and outcomes. Through its policies, high performance is required from the teams and the individuals. To make the company efficient and powerful, the administration produces assessable returns to enhance short and long term success (Kwon& O’Donnell, 2003).
The Hyundai built its influence based on three main factors. By reeling the quality concerns raised by its costumers, the company formulated a marketing policy and strategy that offered a top security to the customer who were willing to buy the cars. Through the policies, named the incentive of American best warranty, The Hyundai Company was able to win back and have more customers. By improving its quality and fixing its image, the company was able to build trust to its customers. During hard economic times, many companies experience low sales due to lack of creating and initiating relationships with its consumers. During the recession period affecting the world top economies, The Company implemented methods to connect with the market hence gained more influence to the customers. While its main competitors like Subaru and GM withdrew from high profile advertisement to save money, the Hyundai Company vigorously marketed itself. The Company used events like Academy Awards and Super bowl to gain increased connection with their customers during their hard time creating better relations.
To further foster its influence to the public, Hyundai did not only create relations to reach its customers but also crafted an appealing and convincing message which resonated with the concerns of its customers. During the recession period, Hyundai unveiled the Assurance program. The program was to alleviate potential buyers off the fear of job instability. The program was effective due to the fact that, as its competitors sought bailouts from the government, Hyundai promised to bailout its customers who were facing hard economic times.
Accounting in the Hyundai Company
Accounting is considered by many as the backbone of the business. Accounting creates a lucid financial image of the company. Accounting enables the managers and the shareholders to make well versed decision and making the company’s investors to be aware of the developments in the business. The aims and objectives of accounting are to enhance that the company makes profits. In the Hyundai Company a number of sub divisions are involved when accounting. First the company is adhered by the accounting rules to book keep. The Company’s book keeper finds all the funds that the Company’s handles which include the money paid out by the company, money paid to the company and the monetary value of Hyundai’s Company assets. The responsibility of the book keeper is to ensure that the Hyundai’s ledger does balance. Records in the Hyundai’s company include the payroll, company ledgers, paperwork showing assets owned by the company and bank statements. Accounting also involves auditing of the company’s accounts. Auditing is evaluating an organization to verify that the information given is reliable and valid.
Auditing is vital to ensure that investors, employees and the stakeholders of the Hyundai’s company are protected against fraud. Auditing is usually done by an external sources not employed by the company. Accounting records in the Hyundai Company include the fiscal year, methods used and preparation of financial statements, retirement of shares with profit and disposition of dividends. During an audit, the Hyundai’s accountants compare the ledger of the company to other business documents to show that the ledger provides the accurate information about the business. Accounting enhances the company in internal controls. The company’s financial records are use to make important decisions to make when making investment decisions. The accounting records are used by the Hyundai motor company to handle tax rolls and reports to the government agencies in all the countries they are based. In the year ended March 5, 2005 the net worth of the company’s assets were 25,069 Korean billions while the net income was 1,784 Korean billions (Kirk, 1994).
Coordination, collaborating and challenging issues in the Hyundai’s company
The Hyundai motor company is long known as a resolution oriented and responsible maker of quality motor cars. The ability by the Company to be able to produce switch gears, vehicles and generators has enabled the Company to be more sufficient. The capacity enables the company to solely result to a coordinated electrical processor capable of producing all the raw material needed. By using the rotating machine expertise technique, the company is able to design and make switchgears, generators, motor starters and controls. The Raser Technologies have deepened their collaboration with the Hyundai motor company to develop new renewable energies and EV tech. The two companies partnered in order to provide clean energy and electrical transportation, the two main trends aiming the future generations. Hyundai has also collaborated with KCC suppliers, the chief company that supply’s it with automotive coatings. The collaboration is meant to improve the quality of painting used to coat the Hyundai cars. Hyundai has also cooperated with Microsoft to produce the next generation of in car infotainment systems (Chan, 1994).The partnership will enable customers to have vehicles that have advanced voice controlled connectivity technologies. This will enhance bridging mobile gadgets in the car. The devices are meant to solve navigation and multimedia problems.
The main challenge the company is facing is increased competition. Rival companies mainly the GM and Subaru are always tying to outdo the company. Maintaining a market base is also a key challenge to the company because the markets keep on changing and people what to try out new products and services. Last year the company had to recall 1300 cars due to brake failure problems. This is a challenging issue because its customers lost its trust in building quality cars. The fact resulted to low sales by the company (Chan, 1994).
Financing and budgeting
Budgets have played a role to increase the management performance meant as a cost reduction tool. Hyundai uses budgets to list the planned expenses and revenues. The budget is meant to plan for saving and spending. The use of budgeting has resulted to the Hyundai Company to be more effective and enhance its planning. Use of current technology in budgeting has resulted to management of its funds. Finance is defined as a source of funds to the company. Finance represents saving and lending of money. To start the company, Chung Ju source of capital was personal savings and a loan from the bank. Using the available capital, Chung Ju was able to buy goods and services required in production of his company (Kim, 1997).
The paper has discussed the context of public administration in relation to the history, connection to the public services, ethical issues and dilemmas, management and leadership, power and influence, accounting, collaborating, coordinating, finance and budgeting and challenging issues in the Hyundai motor company.