...Change in General Motors Tina L. Wilderman MGT435 - Organizational Change Professor Robert Vega 02/14/2011 Change In General Motors General Motors Corporation was founded in 1902 and has produced nearly 450 million vehicles globally since their inception. The automobile giant has operations in nearly every country in the world. Up until the past decade, GM was enjoying rapidly growing sales and revenues. However, with the recent economic downturn, the challenge has been to capture and sustain their market share while adding to their bottom line. During the global economic crisis, management is left no choice but to make critical decisions that will enable their corporations to endure. Widespread change is necessary and was needed to all functions of GM’s business, including management style, structure, wages, branding, marketing, and technology. The automobile industry employs nearly ten percent, or one out of ten, of the nation’s labor force. GM is one of the largest purchasers of U.S. steel, iron, aluminum, copper, plastics, rubber, electronics, and computer chips. So, in essence, the survival of many other American businesses relies on the survival of GM. If GM doesn’t make some essential changes to start realizing profits, many of their suppliers will suffer the same inevitable fate. According to the Auto Interiors Conference, U.S. auto sales for all foreign and domestic manufacturers have declined by more than 30%, which is the largest decline in...
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...GENERAL MOTORS STRATEGIC CHANGE AFTER SURVIVING BANKRUPCY WORD COUNT: 2726 INTRODUCTION The World Health Organization (WHO) attributes roughly 1.2 million deaths and 39 million injuries to traffic incidents each year (Peden et al., 2002).Two major challenges automobile companies face are enhancing the safety and fuel efficiency components of their vehicles, while there has been significant advancement in these components over the past decades, consumers still demand and want better, safer and more efficient vehicles from automobile manufacturers (Hoffeson, 2012). With the rapid growth of the world’s population it is not surprise that vehicle population and the population of passengers with personal cars have been steadily increasing. Although we are made to believe by popular media agencies through their advertising that U.S automobile producers have closed the gap in safety, high standard products and consistency with their Japanese rivals (Bradsher, 2000). it is however difficult to determine the fact from fiction The U.S automobile industry is a long established manufacturing industry that has seen a lot of strenuous experiences in the last decade. However this industry is still home to two of the world’s largest vehicle manufacturing brands, General Motors (GM) and Ford these two companies alone are that take credit for a large percentage of the world’s vehicle production since the 1980s. Improving vehicle safety is a key strategy company’s use in gaining competitive...
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...GENERAL MOTORS General Motors HRM 587Analysis Paper Lois Hunter D03569279 9/22/2012 Analysis of General Motors Chief Executive Officers and the Change Leader Culture they portrayed in their at tenure in GM Corporation Case Study: General Motors Moving Forward “How Many Expert does it take to turn a company around? That is the question that the taxpayers of America are asking. General Motors was once the industry leader in America. General Motors was a fortune 500 Company for decades. They dominated the automobile industry .Stocks top out at the highest being sold at 83.00 dollars on the market. General Motors made the middle class in America. General boasted the characteristic in the corporate world as being powerful, stubborn, monolithic, and authoritarian and it main concerns was the assembly lines, called the seeds of success. General Motors was established in 1892 by an R. Olds who created the Oldsmobile his vision was to create horseless carriages. He started the automobile factory in Detroit was soon followed by others in the industry, and he and several others decided to create amalgamation of over different companies. The new automobile entities became known as General Motors. Each new partner brought in his brand as they began consolidating. Mr. Olds had a management style of controlling he knew what needed to be done and he did it. He knew when to start merger and acquiring early in the game he established General Motors. His vision and management...
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...General Motors SWOT analysis MGT 521 March 31, 2014 Overview of SWOT matrix “The SWOT matrix is an important matching tool that helps managers develop four strategies.” (David, 2011) This matrix is important to any business because it will show the organizations strengths and weaknesses as well as any opportunities and threats that arise. The SWOT analysis is a great tool for strategic planning, however, it is not as useful for showing how to achieve a competitive advantage. The matrix is divided by SO (strengths –opportunities), WO (weaknesses-opportunities), ST (strengths-threats) and WT (weaknesses-threats). Each type gives a different focus for the organization. Internal Weaknesses and Strengths After the recall of April 2012, and the continuous recalls thereafter, there was a negative impact on the company sales. When looking at the Internals of General Motors, leadership plays a role in the weaknesses that it is having today. The internal strengths of General Motors are a strong market position and brand portfolio. General Motors is brand that people know and respect and many are very loyal to the brand. While using this as a factor, General Motors stated to focus on new research and developments that would give them an advantage over their competition. While they were behind Toyota in the energy efficient car, they are making strides to make their bigger vehicles bore fuel efficient. General Motors is also becoming diversified globally. External...
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...Course Project Proposal The ideal of this project proposal is to compare and contrast General Motors and Ford which have undergone fairly substantial change in the recent past; and how they handled the pressure of change. Lapratt04@yahoo.com HRM-587-12043 Managing Organizational Change Professor Joseph Phillips Due September 7, 2014 Abstract Ford and GM experienced serious issues during the pre and post TARP causing them to restructure and change how they do business. Each of them reacted to these pressure differently. Ford Motor Company as one of the greatest automobile manufacturers of all time started under the leadership of Henry Ford in Detroit, Michigan. His first production was in 1903, the Model A, with an under the floor engine selling for $850. In the first season it sold 1,708 cars (HISTORY of Ford Motor Company, 2014). Whereas General Motors was founded in 1902 by William Durant, who saw that the automobile would one day replace the horse-drawn carriage. The company did not really catch on until 1908, and at first, it was just a Buick holding company. At the end of 1908, however, GM had acquired Oldsmobile, and in 1909, they bought Cadillac, Elmore, and Oakland. The early 1900s were a difficult time for auto manufacturers; the market crash of 1907 adversely affected a lot of small companies, which relied on the banks for credit. Durant saw the economic downturn as an opportunity; he bought smaller car makers, as well as companies that built auto accessories...
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...Organizational Structure Paper General Motors has a long, proud history of one of the biggest car manufacturers in the world. By 1980s and 1990s; however the company was losing profits to newer, more efficient manufacturers. Since then, the company has updated its factories and streamlined its operators to reduce costs. Without an appropriate organizational structure, a business will not succeed. In this paper the subject to describe is the organizational structure of General Motors. It will also describe how the organizational functions influence and determine the organizational structure for General Motors. Last, it will explain how the organizational design helps determine which structure best suits General Motors. Organization structure is a way to organize employees into some kind of structure to meet goals, minimize confusion, and coordinate activities by clearly identifying, which individuals are responsible for which tasks. The type of organizational structure General Motors uses the matrix structure. Matrix structure allow employees from different departments to come together temporarily to work on special projects as a team. It provides flexibility to respond quickly to a customer need by creating a team of people who devote all their time to a project then return to their departments or join a new project team. Compare to the team structure that is similar to the matrix because employees are in a group together on a team of people with different skills to...
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...athttp://www.apexjournal.org ISSN 2315-8727© 2014 Apex Journal International Review Organizational change: Case study of GM (General Motor) Muhammad Hashim* Government college of Management Sciences Peshawar, Scholar at Preston Islamabad, Pakistan. Accepted 24 January, 2014 The main purpose of this article is to elaborate and bring to light the core concept of the organization change, how it works, different factors which moves organization to change, steps for change, resistance for change, change forces, change management approaches and last an example of General Motor (GM) has given that how change was taken place in the organization and what was the strategies for change management. Recommendations and conclusion forms the last part of the paper. . Key words: Organization change, factors, resistance, GM. ORGANIZATIONAL CHANGE: A BRIEF INTRODUCTION The business world today are going very fast and new technology new method of product and new taste of customer and new market trend as well as new strategies for best control of the organization and motivation of employees are emerging and taking place from old to new methods, because the customer are the kings of market and most of the company now spending billions of amount on research and development in the organization, by keeping in view all these things the manager and expert of the today business now compel to decide about the change management in the organization, because business activities now become are globalize, and every...
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...Phil McIntosh Literature Review: My Years with General Motors by Alfred Sloan Presented to: Dr. Francisco Coronel MBA 690 March 21, 2013 Introduction The book My years with General Motors by Alfred Sloan is a great read. I find that it is very important book to read for anyone interested in management, innovation, and overall how to run a succesful organization. Alfred Sloan was able to leave a lasting legacy at the leading automotive company General Motors (GM) by creating positive change through implementing new management techniques, executing financial reforms, establishing a centralized banking system and making luxurious cars in order to gain a competitive advantage over its largest competition. The book is part personal memoir and the other part is standardized text regarding effective management. The General Motors executive depicts story of triumph and the successes he has encountered through proper leadership and management. The main character portrayed in the book of My Years with General Motors is Alfred Sloan. Alfred was raised New York and graduated from MIT with a degree in electrical engineering in the late 1895. His first job post graduation was at an establishment called Hyatt Roller Bearing Company. Hyatt supplied parts to many firms in the automobile industry. After the success of Hyatt, the firm was bought out by General Motors (Sloan, jr., 1990). After the founder of GM William Durant, was forced out of the company for making unwise...
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... | |Prof. A Srinivasa Rao | | | Contents INTRODUCTION 2 DOWNSIZING 3 RESTRUCTURING 4 PRIMARY ISSUES 5 How to Downsize Effectively 5 COMPANY BACKGROUND 8 PRIMARY ISSUES - II 9 GENERAL MOTORS: RESTRUCTURING 10 RECOMMENDATIONS 14 CONCLUSION 15 REFERENCES 16 INTRODUCTION Over the past eight years, our country has experienced a whirlwind of economic slowdown that has led to the restructuring of the way companies do business today. Gone are the days when corporate mergers, acquisition, downsizing, and restructuring were few and far in between. The economic slowdown coupled with ongoing economic uncertainty has led many companies to adjust their organizational operations to a new level of efficiency. Words such as downsizing, rightsizing, restructuring, and reengineering are common vocabulary to corporate businesses of today. Other changes are brought on by the globalization of businesses and changes in the industries and markets. Regardless of the reasons, mergers and acquisitions are likely to continue into the next century (Boockholdt & Service, 1997). In this case study, we will discuss the organizational restructure that...
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...Change in General Motors Tina L. Wilderman MGT435 - Organizational Change Professor Robert Vega 02/14/2011 Change In General Motors General Motors Corporation was founded by William Durrant in 1902, since their conception they have produced nearly 450 million vehicles globally. The goliath corporation operates in virtually every country in the world. Up until the past decade GM was enjoying rapidly growing sales and revenues across the board. However, with the current economic meltdown the ability to capture and sustain marketshare while add to their bottom line has shown to be more than challenging. Through this global economic crisis business leaders are left no choice but to make critical decisions that will enable their corporations to survive. Change is prevalent and management has no choice but to face the fact that they have got to change in order to survive. I think changes will have to be made in all functions of business such as structure, wages, marketing, branding, logistics, management style, and technology. The auto industry today employs about ten percent of the workforce. This means that 1 out of every 10 Americans are tied to the auto industry in some function whether they are suppliers, dealers, consultants, accountants, auditors etc. GM is also one of the largest purchasers of U.S. steel, aluminum, iron, copper, plastics, rubber, electronics, and computer chips. The reality is that if GM can’t make a turn around and start posting profits...
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...Article 2 I chose to read an article titled “Lawmakers accuse GM of possible criminal cover-up.” General Motors has been accused of covering up a problem of defective ignition switches in some of their cars. The problem with the ignition switch is that it can move from the “run” position to the “accessory” position if a heavy key chain is attached to the key. If the ignition switch changes positions, it can cause the engine to shut off, which in turn causes several other problems. This problem has been linked to thirteen deaths and many more accidents. General Motors has been accused of covering up this problem because they waited a decade to recall cars with this problem. A replacement switch was approved in 2006, but General Motors did not change the part number to indicate that there was a problem with the first part. Senator Claire McCaskill said General Motors had “a corporate culture that chose to conceal rather than disclose.” General Motors had ample opportunity to tell owners about the recalled cars, but chose not to. General Motors asserts that they are now more focused on their consumers and their safety, but this statement is unconvincing to lawmakers. I would have a hard time trusting General Motors after hearing about the cover-up of this problem. Being dishonest shows a lack of ethics. In a society where safety and honesty is valued, General Motors has not shown that their cars are safe for customers or that they care about their customers. Anytime...
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...General Motors and Ford Motor Company Contemporary Business General Motors Company and Ford Motor Company are both one of the largest automobile manufactures in the world. General Motors is among the leaders in the number of automobiles sold whereas Ford is among the leaders in global automobile revenue sales. A culture of a company is defined as the foundation in which the company will operate in order to make money. Culture includes the attitude, behavior, beliefs and values that the organization have and are expected to use in order have to reach their goals and be successful. Diversity and empowerment within the company has been the main focus of General Motors and Ford Motors but the cultures of General Motors and Ford Motors are very different. General Motors focus always has been concentrated on using US resources and doing the things that brought them success in the past. General Motors has held on to its US based workforces, suppliers and dealers. “General Motors focus is one of inclusiveness. The cultural trends to be all inclusive no matter whether it is by a person's race, color, religion, sex (including pregnancy), national origin, age (40 or older), disability. One of the main goals is the complete diversify itself to be able to understand and compete more globally. Yet, the global outreach has been little to none” (Corporate Culture & Performance, n.d.). In order to achieve these goals, General Motors has dedicated its company to follow the...
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...|Organizational Re-Structure of General Motors | |Behavior in Organizations | Outline I. Introduction II. Definition a. Downsizing b. Restructuring III. Primary Issues (Part One) a. How to Downsize Effectively IV. Company Background V. Primary Issues (Part Two) a. General Motors: Restructuring VI. Conclusion VII. References Introduction Over the past eight years, our country has experienced a whirlwind of economic slowdown that has led to the restructuring of the way companies do business today. Gone are the days when corporate merger, acquisition, downsizing, and restructuring were few and far in between. The economic slowdown coupled with ongoing economic uncertainty has led many companies to adjust their organizational operations to a new level of efficiency. Words such as downsizing, rightsizing, restructuring, and reengineering are common vocabulary to corporate businesses of today. Other changes are brought on by the globalization of businesses and changes in the industries and markets. Regardless of the reasons, mergers and acquisitions are likely to continue into the next century (Boockholdt & Service, 1997). In this case study, we will discuss the organizational restructure that led to the downsizing of the company, General Motors. In the midst of economic...
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...How General Motors Poor Enterprise Risk Management & Managerial Decisions in the 21st Century has Effected Where They Stand Today Brittany M. Mendez North Greenville University Abstract This paper discusses the rise and fall of General Motors during the 21st century and documents many different managerial decisions that led to where the company is today. It also analyzes the enterprise risk management plan that General Motors was famous for. They were known for being a company that successfully implemented an ERM that was linked to its success after many failures. I will examine how an ERM was the framework to coming up with a plan of action to identify and mitigate risks, but ultimately it was up to supervisors to make the managerial decisions that now General Motors must face the consequences for. Keywords: General Motors, Enterprise Risk Management How General Motors Poor Enterprise Risk Management & Managerial Decisions in the 21st Century has Effected Where They Stand Today General Motors was once regarded as one of the best managed and most successful firms in the world, but between 1980 and 2009 its share of the U.S. market fell from 62.6% to 19.8%, and in 2009 the firm went bankrupt (Helper & Henderson, 2014). In this paper I will examine the decisions that General Motors made in regards to their Enterprise Risk Management Plan and how management decisions determined the fate of where General Motors is today. We all know General Motors has...
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...First Name Last Name Professor Marc Hamilton MGMT 5603032 Management Policies and Practices 1 June 2014 General Motors SWOT Analysis Founded in 1910, General Motors is one of the largest and highly valued cars, trucks and automobile manufactures in the United States with a vision to design, build, and sell the world’s best vehicles. General Motors is a company that has significant impact on our U.S. economy. As I do a SWOT analysis on General Motors I will evaluate the company’s strengths, weaknesses, opportunities, and threats, to gain perspective on GM and there future as a company. STRENGTHS: Product Branding. First and foremost, General Motors has produced and branded a variety of automobiles both international and region specific such as Chevrolet, Buick, GMC, Cadillac, Baojun, Holden, Isuzu, Jiefang, Opel, Vauxhall, and Wuling which for some have become household names. From electric and mini-cars to heavy-duty full-size trucks, monocabs, and convertibles, General Motor’s dynamic brands offer a comprehensive range of vehicles in more than 120 countries around the world (About GM). Global Presence. Another strength GM shares, is their global presence, with factories in Brazil, Russia, India, and China (collectively BRIC) along with having assembly, manufacturing, distribution, office, and warehousing operations in 55 other countries. Of those BRIC factories, GM has the strongest presence in China due to their emerging economy that continues to grow gradually...
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