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Control Mechanisms of Gm

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Control Mechanisms of General Motors
Team A:
MGT/230
23-Dec-

General Motors Control Environment As one of the world’s largest auto manufacturers, General Motors (GM) has over 212,000 employees in nearly 400 facilities over six continents. Due to the size and divisions, GM takes a multifaceted approach to organizational control mechanisms. This is considered as a balanced scorecard approach (Bateman & Snell, 2011). Their strategic vision is formed by their Board of Directors and CEO/President of the Board, David F Ackerson. Through his lead, the GM management team manages various control mechanisms to oversee this mixture of bureaucratic, market, and clan controls. These controls ensure that the goals formed in their strategic vision are realized at their bottom line.

Control Mechanisms Using well-defined policies, procedures and formal authority, the GM management team transfers their strategic vision to its employees. GM uses market controls which includes, pricing mechanisms that influence the profits attained through the new model of vehicles it produces. GM uses clan control to thrive on employees’ creative problem solving skills, as much as on teamwork. Mutual respect, responsibility, and good judgment calls are keys. The controls allow GM to maintain set standards in the areas of product quality, customer satisfaction and competitive pricing. The controls considered perception of GM’s employees. There is concern with all types of controls regarding acceptance by employees and compliance with regulatory rules.

Four Functions of Management
GM uses the four function of management which comprise of planning, organizing, leading and controlling (Bateman & Snell, 2011). For GM to satisfy customers, reach profit goals, and innovate in a globalized, ever changing market, effective control measures are taken to ensure clear standard

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