General Motors believes that cultures shape today’s global economy. The organizational culture is the most fundamental characteristic as it enables the organization to cope well with its environment. The three concepts chosen for the case study analysis are crisis management, the degree of centralization, and organizational culture (BACW). The company believes that this characteristic of the organizational culture is essential to developing competitive advantage. Retrieved from https://ivypanda.com/essays/general-motors-company-organizational-culture-and-strengths/. For example, fast thinking facilitates General Motors’ problem-solving processes while minimizing the adverse consequences of problems in the business. General Motors Company: Organizational Culture and Strengths. The behaviors the company is working hard to impart are ownership, candidness, accountability -- and improvement. It appears that the bureaucracy, resulting centralization of power, and the culture of silence lead to the defective ignition switch, as company’s employees were aware of the problem but were either too afraid or too indifferent to discuss it with executives or top managers. One of the greatest strengths of Barra that helped her influence organizational culture is the fact that she was an insider for more than 30 years (Day). Organizational structure works within an organizational culture, but it is not completely separate. Your privacy is extremely important to us. If consumers pay close attention, they can tell the type of culture that a company has created and unfortunately they aren’t held accountable for it. The aim was to improve the company’s performance in specific markets rather than trying to please every market that exists (Unwavering). For full functionality of this site it is necessary to enable JavaScript. Toyota & General Motor’s Organizational Behavior. professional specifically for you? This resulted to the outgrowths and continuous re-organizational design. introduction’to’general’motors’and’cultural’change’ 4! The organizational culture is the most fundamental characteristic as it enables the organization to cope well with its environment. Hartnell, C. A., Kinicki, A. J., Lambert, L. S., Fugate, M., & Doyle Corner, P. (2016). Our latest Diversity & Inclusion Report shows how we’re attracting, retaining, and encouraging employees of all backgrounds to drive results. The strategic leaders in the General Motors should are vested with the responsibility of creating the organizational characteristics that encourage and reward collective effort. General Motors Company: Organizational Culture and Strengths, Identifying Stakeholders of Bechtel Corporation, Qatar Telecom Company's Business Excellence Model, Samsung's and Procter & Gamble's Open Innovation. General Motors can boost employee support for innovation through this additional characteristic in its corporate culture. The approach of Barra for the leadership as it has been explained above and mainly inclusive. For example, the company does not push employees to go beyond the typical limits, in contrast to efforts for creativity and thinking outside the box in firms like Apple (Read: Apple’s Organizational Culture). IvyPanda. October 6, 2020. https://ivypanda.com/essays/general-motors-company-organizational-culture-and-strengths/. Purpose of the Article 4. General Motors’ Organizational Structure for Flexibility in Regional Markets, General Motors Company SWOT Analysis & Recommendations, General Motors’ Vision Statement & Mission Statement (Analysis), General Motors PESTEL/PESTLE Analysis & Recommendations, Tesla Inc.’s Organizational Culture & Its Characteristics (Analysis), General Motors’ Generic Strategy & Intensive Growth Strategies, General Motors’ Corporate Social Responsibility Strategy & Stakeholders, General Motors’ Operations Management: 10 Decisions & Productivity, General Motors Five Forces Analysis (Porter’s) & Recommendations, General Motors Company’s Marketing Mix (4Ps) Analysis, Tesla Inc. SWOT Analysis & Recommendations, Tesla Inc.’s Organizational Structure & Its Characteristics (Analysis), General Electric’s (GE) Organizational Culture for Customer-Centric Simplification, Tesla, Inc.’s Corporate Social Responsibility & Citizenship, Stakeholders, Toyota External Analysis: Opportunities & Threats, Ford Motor Company’s Mission Statement & Vision Statement: An Analysis, Tesla, Inc.’s Operations Management: 10 Decisions, Productivity, Toyota’s Mission Statement & Vision Statement: An Analysis, Ford Motor Company’s Organizational Culture Analysis, Ford Motor Company’s Organizational Culture, General Motors’ corporate social responsibility strategy, PESTEL/PESTLE Analysis of General Motors Company, General Motors’ generic strategy and intensive growth strategies, General Motors’ vision statement and mission statement, General Motors Company – Corporate Strategy, General Motors Company – Our Company Overview, U.S. Department of Commerce – International Trade Administration – The Automotive Industry in the United States, Freedom and opportunity to grow, learn and evolve, Positive relationships for operating success. Being a long-term insider helped her understand what exact changes GM needed to become a successful company after the crisis. This corporate structure type is usually employed when there are significant differences among regional markets. The corporate culture: Behind the scenes at General Motors. To counter this GM had initially planned for organizational restructuring. Barra demonstrates good managerial skills by effectively handling a crisis and increasing transparency of the company. General Motors - Read online for free. Organizational development plays an important role in the change management no change be best implemented with Forces for change out organizational development, it can be define as a collection of planned change interventions, built on The main forces which affect the general motors include humanistic democratic values, that seek to improve the the following: organizational effectiveness … The cultural characteristics of the business are beneficial to GM. Mar The crisis was intensified after it became known that GM engineers had been aware of the … The overall effect of this attribute of the corporate culture is that it promotes mutually beneficial relations between General Motors and its stakeholders. Koren, Y., Gu, X., & Freiheit, T. (2016). A firm’s organizational or corporate culture defines the traditions, values and unwritten rules of behavior among employees. This kind of organizational culture focuses on speed in addressing issues, problems and opportunities in the business. The goal to increase annual sales volume by Volkswagen eventually led to the so-called Dieselgate, which had cost Volkswagen millions of dollars. Barra was able to teach employees to view the product from a new perspective. Positive relationships are valued in General Motors’ human resources. It has enhanced cooperation and efficient decision making. General Motors Company has a regional divisional organizational structure. For example, responsibility motivates GM workers to take necessary action to address problems they encounter on the job. An Analysis of the Organizational Behavior of General Motors. The value of corporate culture. Copyright © 2021 - IvyPanda is a trading name of Edustream Difference between two management cultures OR How Toyota was successful where General Motors failed. Introduction. The company must ensure that its cultural characteristics are aligned with goals and objectives, to optimize the success rate of strategic implementation in the automobile market. Another advantage of General Motors’ corporate culture is that it facilitates innovation. Barra’s decision to remove former complex rules regarding the dress code at first resulted in backlash, through which she was able to help managers understand that their role was to lead the employees and not to count on the CEO every time any minor issue emerged (Dress Code). She restructured engineering operations to ensure that any potential safety violations were addressed as quickly as possible. She asked engineers to visit a store and see the products as customers see them (Barra CEO). New United Motor Manufacturing, the famous joint venture experiment by Toyota and General Motors, will close its doors. Introduction General Motors Corporation is the world's largest automaker company founded in 1908 which employs about 326,999 people around the world with its headquarters in Detroit, Michigan, USA. See our Privacy Policy page to find out more about cookies or to switch them off. Copyright by Panmore Institute - All rights reserved. What’s your deadline? According to Pammer (2015), GM’s culture was identified as the main culprit in the part-defect saga. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. Additionally, she supported the culture of awareness, pointing out to employees that she did not want to put the crisis behind the company, i.e., forget it as soon as it was resolved (Day). Furthermore, she also narrowed the span of management, because top managers did not lead the majority of employees but the authority was spread among different leaders with a different degree of supervision. We will write a custom Case Study on General Motors Company: Organizational Culture and Strengths specifically for you for only $16.05 $11/page. An advantage of General Motors’ organizational culture is its support for human resource development. This characteristic of the organizational culture pertains to the internal and external relationships involving the automotive business. Innovation and Emphasis on Quality. Need a custom Case Study sample written from scratch by With this feature of the corporate culture, employees are encouraged to go beyond standards to boost business performance. abcd. After a $49.5 billion government bailout, GM has a better balance sheet but a busted culture. Guiso, L., Sapienza, P., & Zingales, L. (2015). General Motors Company’s organizational culture instills responsibility and accountability among employees. ORGANIZATIONAL CHANGE(GENERAL MOTOR) Case Study Solution. For example, an agile workforce can facilitate an increase in General Motors’ ability to rapidly innovate for stronger competitive advantage. Organizational Change at GM IvyPanda. Positive Relationships for Operating Success. 2020. Unlike the past, culture has improved organizational performance through the provision of competitive advantages. At GM, we celebrate unique perspectives propelled by diversity and champion innovative ideas. For example, the corporate culture enables GM to develop its competitive advantage on the basis of rapid innovation and positive relations with stakeholders, whose interests determine the initiatives and programs in General Motors’ corporate social responsibility strategy. Innovation is a key success factor in the business because of the rapid rate of innovation in the automotive industry. She has been successful in order to create the components of the team’s towards the new and innovative technology along with the advanced vehicles. Considering the significance of human resources in business improvement, the company’s corporate culture is among the main determinants of success in such endeavor. General Motors Corporation became General Motors Company, and a new corporation was born. Thus, through this characteristic, General Motors’ corporate culture also attracts high quality talent. Organisational Structure of General Motors : General Motors Company (NYSE: GM, TSX: GMM.U) is an American multinational automaker based in Detroit, Michigan and the world's second largest automaker. Shifting the focus from horsepower and sporty design that was valued by the previous CEO, Bob Lutz, Barra demonstrated engineers that customer-oriented view was needed to make GM “product czars” again (Barra CEO, p. 2). For example, responsibility motivates GM workers to take necessary action to address problems they encounter on the job. 6 October. ⏰ Let's see if we can help you! To provide GM with a second chance and rehabilitate it in the eyes of the potential clientele, Barra must ensure that the company’s employees share her vision of GM and understand its new core-values statement: customer comes first (Bumpy Ride). Innovation and quality are seen as significant determinants of General Motors’ ability to compete against other automobile manufacturers. General Motors Company’s organizational culture instills responsibility and accountability among employees. ORGANIZATIONAL BEHAVIOUR PREVAILING IN GENERAL MOTORS. This cultural characteristic helps minimize and mitigate problems in the company. October 6, 2020. https://ivypanda.com/essays/general-motors-company-organizational-culture-and-strengths/. The impact of corporate culture on manufacturing system design. By improving communication among employees, Bara has created a buffer for future crises that could potentially prevent them. Miller, Stoller: Changing the culture at General Motors. General Motors Organizational Change Case Study 1. In this way, General Motors’ workforce remains adequate in developing solutions to emerging challenges that require new skills and abilities from employees. Speed is essential in addressing opportunities and threats relevant to GM and the automotive industry environment (Read: PESTEL/PESTLE Analysis of General Motors Company). For example, technological advancement is necessary for the company to improve its current industry position, considering the rapid technological innovation among other automotive firms. Many senior executives don’t want to talk about organizational culture, preferring to focus on strategies, products or services, and results. 301 certified writers online Considering these factors, the following characteristics are notable in General Motors organiz… October 6, 2020. https://ivypanda.com/essays/general-motors-company-organizational-culture-and-strengths/. "General Motors Company: Organizational Culture and Strengths." In this regard, innovation and quality are aligned with General Motors’ generic strategy and intensive growth strategies. The strategic leaders in the General Motors should are vested with the responsibility of creating the organizational characteristics that encourage and reward collective effort. We utilize security vendors that protect and IvyPanda, 6 Oct. 2020, ivypanda.com/essays/general-motors-company-organizational-culture-and-strengths/. Thus, the organizational culture supports value creation in General Motors’ human resources and related processes. In 2006, former Ford CEO Alan Mulally took on an organizational culture where executives hid problems for fear of getting fired. In Spring 2010, New United Motor Manufacturing Inc., the famed joint venture experiment by Toyota Motor Corp. and General Motors Co., will close its doors. The company aims for continuous improvement through this characteristic of the organizational culture. Like several other companies she has decided and maintained the … Although this crisis severely affected GM, Barra found a way to transform the issue into change, introducing new policy “if you see something, say something” (Day, p. 2). Fast Thinking for Continued Success. by . This feature of the corporate culture addresses employees’ morale issues and their concerns regarding their careers. IvyPanda. This case study on General Motors Company: Organizational Culture and Strengths was written and submitted by your fellow student. Although the dress code policy seemed simple at first, it transformed the decision-making process at the company, delegating the decision-making authority down the chain of commands (BACW). ensure the integrity of our platform while keeping your private information safe. Huhtala, M., Tolvanen, A., Mauno, S., & Feldt, T. (2015). “At GM, we recognize the power of diversity and the role it plays in sparking ingenuity and creativity,” says Ken Barrett, GM global chief diversity officer. This cultural characteristic helps minimize and mitigate problems in the company. Thus, this feature of the corporate culture reinforces the emphasis on value and technological breakthrough in General Motors’ vision statement and mission statement, respectively. Unfortunately, your browser is too old to work on this site. One of the specifics of GM organizational culture that has also significantly impacted the company is Barra’s decision to stick to sustainable return instead of ambitious sales. General Motors Corporation (NYSE:GM), the world’s largest automaker was founded in 1908 in Flint, Michigan of US. As can be seen, Barra became an effective manager because she was able to transform organizational culture, managing crisis by improving communication and transparency. As GM has already let down its customers, Barra’s emphasis on customer and customer-oriented culture is understandable. Such agility is expected to support the company’s efforts to improve overall business performance, especially in the face of internal problems and rising competition with firms like Toyota and Ford (Read: Ford Motor Company’s Organizational Culture). When handling a crisis, it is not only essential to be open about the issue but also to support communication in the organization to understand how unethical or illegal (in case of GM) employee activity resulted in a crisis. "General Motors Company: Organizational Culture and Strengths." As you pointed out, organizational communication is key to creating a true, ethical culture. General Motors Company (GM) uses its organizational culture to support enhancement efforts in the automotive business. Organizational Change: Case Study of General Motors Muhammad Aliuddin Khan and Muhammad Hashim Presented by: Balneg, Nelson and Delena, Reymark 2. They considered how the design, production, and manufacture process could be altered to improve GM’s image both among customers and GM’s employees. "General Motors Company: Organizational Culture and Strengths." Outline 3. In 2006 GM was in a horrible tangle as the company lost $10.6 billion in the previous year (2005). 2.1 ’ ’ G ENERAL M OTORS’ H ISTORY ’ 4 ’ 2.2 ’ ’ T HE’ C HALLENGES’OF’ C ULTURE’ C HANGE ’ 4 ’ If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Organizational Structure Of General Motors 877 Words | 4 Pages. The changes in organizational culture did not only concern the degree of centralization and crisis management. In many of the most successful companies of the 21 st century, you can find cultures that are … (2020) 'General Motors Company: Organizational Culture and Strengths'. 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