(2020) 'General Motors Company: Organizational Culture and Strengths'. This corporate structure type is usually employed when there are significant differences among regional markets. Your privacy is extremely important to us. General motors organizational culture May If you want to understand how the GM ignition switch scandal was able to happen, you need to understand the corporate culture. The following characteristics are notable in General Motors’ organizational culture: Freedom and Opportunity to Grow, Learn and Evolve. 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 three concepts chosen for the case study analysis are crisis management, the degree of centralization, and organizational culture (BACW). A firm’s organizational or corporate culture defines the traditions, values and unwritten rules of behavior among employees. The organizational culture is the most fundamental characteristic as it enables the organization to cope well with its environment. With this feature of the corporate culture, employees are encouraged to go beyond standards to boost business performance. 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). General Motors Corporation (NYSE:GM), the world’s largest automaker was founded in 1908 in Flint, Michigan of US. General Motors believes that cultures shape today’s global economy. The aim was to improve the company’s performance in specific markets rather than trying to please every market that exists (Unwavering). For example, the company maintains human resource programs that develop talent and skills among workers. 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). This cultural characteristic helps minimize and mitigate problems in the company. Find stories about the culture of General Motors. The changes in organizational culture did not only concern the degree of centralization and crisis management. Need a custom Case Study sample written from scratch by Outline 3. The value of corporate culture. Positive Relationships for Operating Success. For full functionality of this site it is necessary to enable JavaScript. Organizational culture is more of a larger picture, a more general term that refers to a large umbrella of smaller topics and issues within an organization. As GM has already let down its customers, Barra’s emphasis on customer and customer-oriented culture is understandable. 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 … [3] With its global headquarters in Detroit, GM employs 209,000 people in every major region of the world and does business in some 157 countries. By improving communication among employees, Bara has created a buffer for future crises that could potentially prevent them. GM CEO Mary Barra likens culture change to changing behaviors. An advantage of General Motors’ organizational culture is its support for human resource development. In 2006, former Ford CEO Alan Mulally took on an organizational culture where executives hid problems for fear of getting fired. For example, relationships involving General Motors and its customers, suppliers, and dealers are considered. She restructured engineering operations to ensure that any potential safety violations were addressed as quickly as possible. This resulted to the outgrowths and continuous re-organizational design. introduction’to’general’motors’and’cultural’change’ 4! 2020. General Motors Company has a regional divisional organizational structure. The goal to increase annual sales volume by Volkswagen eventually led to the so-called Dieselgate, which had cost Volkswagen millions of dollars. As can be seen, Barra became an effective manager because she was able to transform organizational culture, managing crisis by improving communication and transparency. Such creativity can contribute to the company’s competitive advantage based on solutions and products. 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. ensure the integrity of our platform while keeping your private information safe. In this regard, innovation and quality are aligned with General Motors’ generic strategy and intensive growth strategies. For example, responsibility motivates GM workers to take necessary action to address problems they encounter on the job. The corporate culture: Behind the scenes at General Motors. The two are very much intertwined. As you pointed out, organizational communication is key to creating a true, ethical culture. In 2006 GM was in a horrible tangle as the company lost $10.6 billion in the previous year (2005). The associations between ethical organizational culture, burnout, and engagement: A multilevel study. 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. This is so because many of General Motors’ problems in performance are linked to its old cultural characteristics that emphasize bureaucracy and lack of accountability. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Más información sobre la suscripción a Scribd Thus, this feature of the corporate culture reinforces the emphasis on value and technological breakthrough in General Motors’ vision statement and mission statement, respectively. Many senior executives don’t want to talk about organizational culture, preferring to focus on strategies, products or services, and results. The organizational culture is the most fundamental characteristic as it enables the organization to cope well with its environment. In General Motors’ case, the corporate culture promotes agility in human resources. 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. abcd. IvyPanda. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. 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. 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. 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). "General Motors Company: Organizational Culture and Strengths." Barra was able to teach employees to view the product from a new perspective. THE GM CULTURE CRISIS 4 culture has led to the success of many companies currently. General Motors Company’s organizational culture instills responsibility and accountability among employees. CEO Mary Barra is Driving Culture Change at General Motors. 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). You are free to use it for research and reference purposes in order to write your own paper; however, you must. This type of organizational structure involves grouping business activities according to geographical segments or areas of operations. Organizational culture is also seen from insiders AND outsiders. New United Motor Manufacturing, the famous joint venture experiment by Toyota and General Motors, will close its doors. For example, an agile workforce can facilitate an increase in General Motors’ ability to rapidly innovate for stronger competitive advantage. Her experience in holding different positions, from a manager of a plant to an HR director, supported her strive for transparency as she was aware of inner issues that were not resolved at GM for years. Mar The crisis was intensified after it became known that GM engineers had been aware of the … To counter this GM had initially planned for organizational restructuring. Unlike the past, culture has improved organizational performance through the provision of competitive advantages. Huhtala, M., Tolvanen, A., Mauno, S., & Feldt, T. (2015). Being a long-term insider helped her understand what exact changes GM needed to become a successful company after the crisis. General Motors Organizational Change Case Study 1. Barra’s focus on transparency helped her change the organizational culture; at the same time, with this approach, she also addressed other corporate issues such as the centralized nature of GM and bureaucracy’s influence on inner leadership. What’s your deadline? 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. Barra demonstrates good managerial skills by effectively handling a crisis and increasing transparency of the company. The company’s reform efforts view the corporate culture as a contributor to success. Koren, Y., Gu, X., & Freiheit, T. (2016). The strategic leaders in the General Motors should are vested with the responsibility of creating the organizational characteristics that encourage and reward collective effort. The ability of the current CEO of GM to handle a crisis is phenomenal as she decided not to engage in a defensive or denying position but speak clearly, addressing issues and accepting personal and organizational responsibility for them (Bumpy Ride; Testify). Fixing a Weak Safety Culture at General Motors GM needs to create a safety culture that encourages employees to speak up about large, small, and potential failures. Copyright by Panmore Institute - All rights reserved. Retrieved from https://ivypanda.com/essays/general-motors-company-organizational-culture-and-strengths/. This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s. 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. 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. Guiso, L., Sapienza, P., & Zingales, L. (2015). 1. The company discovered the defect issue in 2004 when the company’s Cobalt model reportedly lost power upon the car owner’s unintended contact with the steering column. The strategic leaders in the General Motors should are vested with the responsibility of creating the organizational characteristics that encourage and reward collective effort. For example, responsibility motivates GM workers to take necessary action to address problems they encounter on the job. 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. This case study on General Motors Company: Organizational Culture and Strengths was written and submitted by your fellow student. We will write a custom Case Study on General Motors Company: Organizational Culture and Strengths specifically for you for only $16.05 $11/page. October 6, 2020. https://ivypanda.com/essays/general-motors-company-organizational-culture-and-strengths/. In many of the most successful companies of the 21 st century, you can find cultures that are … (2020, October 6). ORGANIZATIONAL BEHAVIOUR PREVAILING IN GENERAL MOTORS. Organizational Structure Of General Motors 877 Words | 4 Pages. 2.1 ’ ’ G ENERAL M OTORS’ H ISTORY ’ 4 ’ 2.2 ’ ’ T HE’ C HALLENGES’OF’ C ULTURE’ C HANGE ’ 4 ’ October 6, 2020. https://ivypanda.com/essays/general-motors-company-organizational-culture-and-strengths/. Our latest Diversity & Inclusion Report shows how we’re attracting, retaining, and encouraging employees of all backgrounds to drive results. Innovation is a key success factor in the business because of the rapid rate of innovation in the automotive industry. As stated in one of the articles, due to the culture of silence that prevailed in the company from 2000 to 2014, the company was unable to identify the problem and struggled to resolve it even after it began to lead to deadly outcomes (Bumpy Ride). In 2009, General Motors -- I have no financial interest in its stock -- went bankrupt after 101 years. General Motors Company has an organizational culture of agility. Difference between two management cultures OR How Toyota was successful where General Motors failed. It’s a place no CEO wants to be. Hartnell, C. A., Kinicki, A. J., Lambert, L. S., Fugate, M., & Doyle Corner, P. (2016). IvyPanda. 301 certified writers online October 6, 2020. https://ivypanda.com/essays/general-motors-company-organizational-culture-and-strengths/. This characteristic of the organizational culture pertains to the internal and external relationships involving the automotive business. "General Motors Company: Organizational Culture and Strengths." 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. 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). For example, General Motors operations in Europe are grouped as one segment. General Motors - Read online for free. Positive relationships are valued in General Motors’ human resources. With a major position in the global automotive industry, General Motors must maintain an optimized organizational culture that supports business growth and development. Thus, General Motors benefits from a corporate culture of agility that suits its current business needs and environment. See our Privacy Policy page to find out more about cookies or to switch them off. This feature of the corporate culture addresses employees’ morale issues and their concerns regarding their careers. IvyPanda, 6 Oct. 2020, ivypanda.com/essays/general-motors-company-organizational-culture-and-strengths/. She asked engineers to visit a store and see the products as customers see them (Barra CEO). General Motors can boost employee support for innovation through this additional characteristic in its corporate culture. The company aims for continuous improvement through this characteristic of the organizational culture. General Motors Company (GM) uses its organizational culture to support enhancement efforts in the automotive business. Toyota & General Motor’s Organizational Behavior. Unfortunately, your browser is too old to work on this site. Miller, Stoller: Changing the culture at General Motors. After a $49.5 billion government bailout, GM has a better balance sheet but a busted culture. 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). For GDPR compliance, we do not use personally identifiable information to serve ads in the EU and the EEA. 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. Company I chose was a multinational company which manufacturers and marketer which designs, manufactures, fabricates, showcases and conveys vehicles and vehicle parts and offers financial administrations, General Motors Company commonly known as GM (GM.com, 2016). 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