Category: General Motors

Introduction

General Motors Company (GM) is one of “the leading vehicle manufacturers and marketers in the globe” (General Motors, 2015, para. 2). The company produces unique brands such as Cadillac, Jie Fang, Chevrolet, Opel, and Holden. The company markets its vehicles in Europe, North America, South America, Asia, and Africa. The company has adopted powerful strategies in order to emerge successful. The “current GM has been operating since 2009 after the old company became bankrupt” (General Motors, 2015, para. 3). The company employs thousands of workers and technicians from different parts of the globe.

The leaders at the company focus on the best practices and initiatives in order to achieve the best goals. According to many experts, GM has remained profitable because of its unrivaled production methods (General Motors, 2015). General Motors Company can use appropriate training programs, organizational practices, and mentorship initiatives to tackle specific challenges such as role conflicts, communication problems, lack of cohesiveness, and excessive intergroup disagreements.

How Different Problems Can Affect FM’s Group Productivity

Shin and Park (2012) believe that teamwork is one of the best concepts towards improving a firm’s performance. General Motors Company employs many workers from almost every corner of the globe. This practice has been relevant towards promoting the company’s business objectives. The company employs competent and skilled workers who can support every targeted goal.

This strategy explains “why GM remains a leading player in the world’s automobile industry” (Palmer & Kawakami, 2014, p. 8). However, recent studies have identified numerous problems that can affect GM’s performance. Some teams and groups in the company have been facing various problems. The existence of such challenges can make it impossible for GM to remain a pacesetter in the industry.

Role Conflicts

The first major problem “affecting many workforces is role-conflict within groups” (Palmer & Kawakami, 2014, p. 11). This problem can significantly affect the productivity of different groups. Some managers can put much pressure on their workers. For example, a specific employee can be forced to complete two or more tasks simultaneously. This move will make it impossible for the worker to deliver the best results (Shin & Park, 2012). The malpractice can affect the productivity of his or her group.

Some groups can be characterized by workers who have small children or aging parents. Such individuals “will be required to support their babies while at the same time focusing on the targeted goals” (Palmer & Kawakami, 2014, p. 11).

This situation makes it impossible for the workers to deliver the best results. A group might be required to complete a specific task. However, members of the group might possess different competencies thus forcing only a few individuals to complete the task. This situation can produce new conflicts thus affecting the group’s productivity.

Communication Problems

The other major problem that can affect productivity is the existence of various communication problems. Members of a specific group should be able to interact, communicate, and empower one another.

Sometimes new communication problems arise thus making it impossible for many groups to achieve their potentials. For instance, two members in the same group might disagree over a specific issue. Such individuals might “stop interacting thus affecting the success of the group” (Palmer & Kawakami, 2014, p. 8). This problem can eventually produce new rivalries.

Communication barrier can also “arise when members of the same team come from different social, religious, or ethnic backgrounds” (Shin & Park, 2012, p. 4). The scenario will affect the level of interaction.

New malpractices such as arrogance, miscommunication, and deception might arise thus affecting the productivity of the targeted team. Group leaders should therefore embrace the most appropriate strategies in order to improve the nature of communication. Lack of communication affects different processes such as decision-making and problem-solving.

Lack of Cohesiveness

Diversity is another common occurrence in many organizations and institutions. Diversity occurs when members of the same group come from different cultural backgrounds. Members from different backgrounds tend to have unique opinions, views, ideologies, and beliefs. More often than not, such “tendencies collide thus affecting the performance of many groups” (Shin & Park, 2012, p. 6).

Individuals from various backgrounds can disagree over specific issues thus making it impossible for them to work together. Wheelan (2009) believes that “diversity should be treated as a double-edged tool” (p. 258). This is the case because it can promote positive behaviors or produce new conflicts.

The level of cohesiveness can decrease when a group is composed of members from different backgrounds. That being the case, such individuals will not be ready to address their common problems.

They might ignore various goals because of their differences. Some members might feel superior to their workmates thus creating more problems. This situation will eventually affect the productivity of the affected group (Shin & Park, 2012). This argument encourages group leaders to focus on the best ideas in order to improve the level of cohesiveness.

Excessive Intergroup Conflict

The presence of conflicts in a specific group will definitely affect its productivity. Conflicts can arise from various situations or events. For example, members of the same group might have different expectations. Such group members will disagree because their expectations differ.

As well, the individuals “might focus on their specific roles thus affecting the goals of the team” (Spaho, 2013, p. 38). Human beings “are also social in nature” (Spaho, 2013, p. 38). This fact explains why such persons might disagree or develop negative views against each other (Spaho, 2013). The resources availed to the workers can also create new conflicts.

The above problem might also arise when members of the same group establish different opinions. Some leaders might also favor specific members of a group. The malpractice will definitely create new disagreements. Individuals who feel ignored might become less productive and even fail to support their respective groups. Conflicts can force teammates to establish new opinions.

They can also fail to focus on the best goals. The situation can “eventually result in communication breakdown” (Spaho, 2013, p. 62). For instance, members of the targeted group can ignore some of the best practices such as teamwork, collaboration, and mentorship. Such problems will eventually make it impossible for the affected firm to realize its potentials.

Recommendations to Resolve Each Problem

The above problems can make it impossible for a giant company such GM to realize its business objectives. Such problems have the potential to affect the performance of every group.

Members of the group will be unwilling to focus on the targeted objectives. General Motors Company should therefore embrace these recommendations in order to deal with every problem that might affect its groups (General Motors, 2015). The recommendations presented below have the potential to improve the level of group performance and eventually make GM successful.

Role Conflicts

A proper organizational culture can be essential towards preventing various role conflicts. The culture will ensure every employee is ready to complete his or her task. New training programs can be implemented in order to empower more workers. Such workers will understand how to complete specific tasks in a timely manner.

The firm should also “implement a proper work-life balance” (Spaho, 2013, p. 73). According to Shin and Park (2012), the strategy has the potential to improve the level of motivation and satisfaction. A satisfied employee will always promote the best behaviors and ideas (Baack, 2012). This strategy will eventually improve the level of organizational performance.

Organizational leaders at the firm should be the best pacesetters. They should show their followers how to address different role conflicts in a professional manner (Griffin, 2009). The company can also outline specific roles for every worker or group.

This approach will reduce tension and encourage more workers to focus on their respective duties. Companies such as Google and Apple have been using similar practices in order to produce the best outcomes (Baack, 2012). New workers should also be equipped with the best practices that can deal with various conflicts. This practice will eventually make GM successful.

Communication Problems

Communication breakdown is a major issue that can affect the performance of big companies such as General Motors (GM). Different theories of communication offer powerful incentives that can empower many employees. Such “theories encourage individuals to have specific skills in order to communicate with their teammates” (Wheelan, 2009, p. 249).

The employees should therefore be “encouraged to embrace the best communication skills such as attentive listening, confidence, respect, and open-mindedness” (Baack, 2012, p. 82). These skills will make it easier for many teammates to interact freely. The skills will make it possible for them to address their differences. They will also develop new competencies such as teamwork and collaboration.

GM can also use different methods to improve the quality of organizational communication. Wheelan (2009) believes that a positive organizational culture will encourage more people to interact with each other. The culture will promote appreciable behaviors such as cohesiveness and respect (Griffin, 2009). Individuals from different backgrounds should also be placed in the same group in order to minimize conflicts. The leaders at GM should also design the best organizational culture.

This strategy will ensure every person embraces the best practices (Wheelan, 2009). Such practices will eventually support the goals of different groups. New training programs can be introduced in the firm. The programs will encourage more workers to communicate with one another and engage in constructive discussions. These recommendations will support the needs of many groups and eventually deliver the best results.

Lack of Cohesiveness

Baack (2012) believes that “Group Dynamics Theory (GDT) has a place in firms that have specific organizational problems” (p. 52). According to this model, human behavior is something that “affects the manner in which individuals interact with each other” (Wheelan, 2009, p. 250). That being the case, members of the same group should be encouraged to focus on their collective objectives. They should also be aware of their expectations and differences.

This knowledge will encourage them to promote the best behaviors and ideologies. GM can therefore hire skilled leaders in an attempt to promote cohesiveness and interaction. The leaders “should possess powerful skills that will allow them to act systematically” (Wheelan, 2009, p. 252). This strategy will ensure every group focuses on the best goals and results.

Groups will also tend to evolve within a given period of time. Group leaders should be aware of such changes especially when individuals from various backgrounds join their groups. Such leaders should ensure every member focuses on the final goal. Decisions should also be implemented in a collective manner. The targeted individuals will also be involved in every decision-making process. New training programs can play a significant role in this situation.

Such programs will ensure more workers are ready to interact with one another. They will appreciate their workmates from different backgrounds. It is also necessary for GM to continue analyzing the changing needs of every group. This practice is necessary “because the needs of different workers tend to change frequently” (Wheelan, 2009, p. 254). The important goal is to support every group in order to get the best results.

Excessive Intergroup Conflict

GM can use a powerful training program to equip its workers with the best ideas. The program should equip the workers with the best practices in order to deal with various conflicts. Such training programs should be offered frequently in the firm. Competent tutors should be hired in order to educate more workers.

The workers should be equipped with powerful ideas, practices, and behaviors. Such lessons will make it easier for the workers to deal with every conflict. For instance, the company’s employees should be encouraged to embrace the best practices. The workers “should be empowered and encouraged to respect one another” (Baack, 2012, p. 87). They should also put into practice the concepts presented by their workmates.

Members of the same group should be encouraged to respect their leaders. Group leaders should also be equipped with the best ideas and principles. The practice will make it easier for them to address various problems. Group members should be informed about the importance of respect (Baack, 2012).

They should also “be empowered in order to become open-minded, realistic, and passionate about their goals” (Palmer & Kawakami, 2014, p. 11). Leader should be ready to address different group conflicts whenever they arise. A proper training model will equip more employees with the best concepts. Such concepts will make it possible for the teams to achieve their goals.

Conclusion

Groups play a vital role in every business organization. Members of the same group share ideas, competencies, and skills in order to complete their tasks in a timely manner. However, inappropriate group behaviors can be disastrous and disadvantageous. Some of the major problems affecting many groups today include ineffective communication, endless conflicts, and lack of cohesiveness. The recommendations presented in this paper can make it easier for GM to realize its potentials.

The leaders should use appropriate training programs, organizational practices, and mentorship initiatives to equip different workers with the best competencies (Palmer & Kawakami, 2014). The groups should have competent leaders who can address the grievances presented by different followers. A positive organizational culture will also promote the best practices and group behaviors. In conclusion, the above recommendations will improve group productivity and eventually make GM profitable.

Reference List

Baack, D. (2012). Organizational Behavior. San Diego, CA: Bridgepoint Education Inc.

General Motors. (2015). Web.

Griffin, E. (2009). A First Look at Communication Theory. New York, NY: McGraw-Hill.

Palmer, D., & Kawakami, A. (2014). Tie Formation and Cohesiveness in a Loosely Organized Group: Knitting Together. The Qualitative Report, 19(1), 1-15.

Shin, S., & Park, W. (2012). Moderating effects of Group Cohesiveness in Competency Performance Relationships: A Multi-Level Study. Journal of Behavioral Studies in Business, 1(1), 1-15.

Spaho, K. (2013). Organizational Communication and Conflict Management. Management, 18(1), 103-118.

Wheelan, S. (2009). Group Size, Group Development, and Group Productivity. Small Group Research, 40(2), 247-262.

Introduction

The demand for automobiles in the 21^st Century underscores the substantial need for the industry’s growth in a bid to satisfy the market. Dominant automobile organisations such as General Motors, Chrysler, and Ford have expanded their operations to various regions of the international market with the aim of safeguarding their market share (Bedwell 2009).

The likes of Mercedes-Benz, Toyota, Nissan, Subaru, Volkswagen, and BMW have ventured into the international market, thus creating unease among the big companies such as General Motors (Canis 2011). For this reason, some automobile companies such as General Motors have been engaging in intensive market research in a bid to improve their marketing and sales through an analysis of their competitors’ strengths and weaknesses.

This report will investigate the Australian automobiles industry with regard to Holden General Motors, which announced the abandonment of its manufacturing capacities and diverge into full importation of automobiles by 2017. A recommended venture will then be put forward after conducting a critical analysis of the environment surrounding Holden General Motors and identify strategies that would increase revenue.

Background to General Motors

General Motors was founded in 1908 under the leadership of William Durant (General Motors 2015). Having its base in the US, GM has ever since become a multinational company operating in not less than 120 countries. According to Vlasic (2011), the major brands that GM operates in include Cadillac, Chevrolet, Holden, Isuzu, GMC, Holden, and Opel. GM has been on the frontline towards facilitating technological advancements in the automobile industry with the continued innovation of electric vehicles, improved batteries, and power controls (McLaren 2012). The transnational company upholds the essence of corporate social responsibility that has seen it initiate developmental projects in sectors like health and education in six continents.

Recommended GM-Holden venture Proposal

Venture description

Given that GM Holden will close its manufacturing plant in southern Australia and shift towards the importation of automobiles by 2017, venturing into new markets could also be a viable option. For this reason, merging with the Australian Transit Enterprises (ATE) would be a viable strategy that upholds the core values associated with GM.

The road transport network in Australia is full of opportunities especially in the commuting and freights aspects (Infrastructure Partnerships Australia 2008). In this light, Holden could seize the available opportunities by merging with ATE and build a formidable image in Australia. Innovative strategies include the importation of sophisticated commuter buses and freight vehicles from reputable organisations like GM. The company’s experience with GM would enhance the ease of navigation in the new venture.

The Australian transport industry is reported to have an average annual growth of 4.1%, thus earning over $52 billion in terms of revenue (Tourism Research Australia 2014). Holden’s partnership with ATE would translate into increased revenues, thus leading to the growth of the company. The leveraging of prices advantages in the road-freight transport sector would enable Holden to capitalise on the economies of scale.

Opportunities presented by macroeconomic factors would thus enable them enhance speed, reliability, and convenience (Laird & Bachels 2001). In this regard, the partnership would be in a position to turn the threats experienced earlier into opportunities that allow the companies to compete with other industry players (DePamphilis 2013). This aspect would allow them to compete profitably with water, air, and rail freight.

Marketing

The partnership’s target market would be individuals and groups that use commuter and freight services. ATE has a competitive edge in the industry. The company owns over 900 vehicles that offer transport services. In March 2015, Keolis Downer, one of the largest tram systems companies in the world, acquired ATE after signing a $163 million deal (Keolis 2015). This move will enhance the GM’s competitive advantage since various sources of financing the operations would be available.

Pricing is an important aspect to be considered in the joint venture (Levinson & Khan 2014). Holden and ATE have to find the current Australian systems of road and railway charges facilitated by the PAYGO (pay as you go) approach. The National Transport Commission (NTC) in Australia recommends pricing according to the distance covered through the PAYGO system (Lee 2010). Fair pricing systems would enable the venture to be viable since it would set competitive standards owing to its formidable financial base.

Operations

The management of the new merger implies restructuring both Holden and ATE’s systems for efficient operations. The ATE’s operations director, Wayne Mountjoy, has had a remarkable record in enhancing the company’s services in Australia (ATE 2015). In this regard, operations management that entails the transformation of inputs into desirable outputs is a necessity for efficient and effective operations of the merger.

The management of production processes involving assembly of buses, trucks, trams, and vans would be the primary responsibility of Holden GM. On the other hand, ATE would be focused on the management of operations on the provision of services. In so doing, the two entities would play central interdependent roles that aim at transforming inputs in terms of materials, decisions, finances, and technology into outputs that are portrayed by quality road and rail transport.

Both Holden and ATE are expected to employ effective operation tools such as the DMAIC approach. In this light, Holden would lay down strategies that are geared towards cutting its assembly costs whereas ATE economises on the provision of quality commuter and freight services at affordable rates.

The proposed venture would likely alter the navigation of operations at Holding GM. This aspect means that Holden’s manufacturing plants in Southern Australia would be required to accommodate the production and service of buses. Operation managers at Holden would be required to cooperate with those at ATE before operations decisions are made. Therefore, the proposed venture would alter the management of operations at Holden GM due to the ATE‘s nature of operations.

Management

The joint venture would necessitate managerial changes at the top to accommodate the new aspects of operations. Therefore, a new board of directors would be constituted to facilitate efficient running of the venture to achieve success.

Mark Bernhard is the Holden GM’s new Chairman and Managing Director whose primary target is to oversee the company’s successful transition into a National Sales Company by 2017 (Holden GM 2015). On the other hand, Jonathan Cook is the ATE’s Group Chairman and Managing Director (ATE 2015). The two executives are expected to spearhead operations in the merger trough transformational strategies that would lead to collective success.

For the attainment of an efficient merger, consulting experts in the transport sector would be appropriate. GTA Consultants is a reputable transportation company in Australia and it assists in planning, designing, and delivering services pertaining the transport infrastructure. The services offered by GTA Consultants revolve around the project life cycle through advice on initial planning and feasibility studies that incorporate engineering techniques (GTA Consultants 2015). In this light, both Bernhard and Cook should seek GTA’s consultancy services for the execution of collaborative and cooperative roles that would streamline overall management of the merger.

Financials

Financial planning is an essential aspect of business success (Maister, Green & Galford 2001). The proposed venture ought to be guided by a budget that covers operational expenses in a bid to enhance financial stability. The following figure indicates financial projections in the form of budgetary allocations.

Considering the above cost items in the budget will ensure that the two organisations are merged successfully. For example, considering public relations, marketing, and branding costs will aid in creating sufficient market awareness regarding the new entity. Conversely, budgeting for contingency will enable the organisation to cater for emergent issues during its formative operation stage (Donnelly 2003). Subsequently, the likelihood of attaining positive post-merger performance improves substantially. The process of formulating the merger budget should be a collaborative process between the two merging entities.

Financing the merger should be conducted in three main phases, which include the pre-merger, merger, and the post-merger (Pignataro 2015). The pre-merger phase should involve the conduction of due diligence in order to avoid post-merger challenges. In implementing the proposed joint venture plan, the management of the two organisations should ensure that sufficient funds are availed. The organisations should consider sourcing funds from their retained earnings in order to minimise the cost of the joint venture if credit sources are adopted (Bena & Li 2014).

Critical Risks

Holden GM’s joint venture with ATE would face challenges in the future since incompatibilities may arise due to their diverse backgrounds. The following are some of the challenges forecasted and their solutions:

Conflicts of interest may arise between the two entities, thus resulting in divergent views.

Solution: Holden and ATE should lay down clear provisions that deal with events of conflict of interest. Identification, revelation, and action should be taken to counter such occurrences.

Lack of experience in a joint venture may affect ATE.

Solution: Holden should take a leading role in enabling ATE to familiarise itself with how joint ventures navigate since it has had similar experiences as a subsidiary of the General Motors.

Fines for non-compliance that could amount to millions of dollars

Solution: Ensuring that all the provisions of the National Transport Commission are adhered to and consulting agencies such as GTA Consultants could be strategic.

Volatility of transport and logistics costs due to the global market trends (Drewry Maritime Research 2009).

Solution: The merger should consider financial plans that consider price fluctuations. Additionally, efficiencies in the management of operations are essential for cost control in production and logistics.

Inability to integrate Holden and ATE systems

Solution: New strategies that are in line with the different processes should be implemented for compatibility purposes.

Harvest Strategy

A harvest strategy is essential for the planning of unforeseen future events that may have implications on the financial position of the proposed merger. A harvest strategy entails a plan that reduces or eliminates investments in a particular business venture because the resultant revenues are not worth the expenses incurred (The Entrepreneurs’ Resource 2015). In this light, the proposed merger needs to have a strategy that deals with the scenario whereby the venture reaches its maturity, and there is no requirement for further investments. The following are some of the harvest strategies applicable to the Holden GM and ATE merger.

Owner Buyout

Since the workers, founders, and other stakeholders would still have the desire to keep the business even at its maturity phase, buying it out could work as a harvest strategy (Tolson & Younger 2009). An agreement would be struck amicably between the Holden GM and ATE financiers to let interested parties including employees to buy the company.

Going public

Selling the venture’s ownership to the public could be a good harvest strategy since it provides the merger with an opportunity for growth. This strategy gives Holden and ATE some control over the operations even after selling its shares to the public.

Milestone Schedule

A business venture needs some sense of direction that is geared towards the attainment of a particular objective. The Holden GM and ATE merger needs to have set milestones that would act as a motivational target that triggers the motivation within the merger. Some of the milestones that the organisations should consider are illustrated in the following Gantt chart. The organisations’ management teams should ensure that the milestones are achieved within the set timeframe. Additionally, the organisations’ managers will track the success with which the joint venture is implemented.

Summary

GM Holden’s impending closure of its manufacturing plants by 2017 and diversion towards the importation of automobiles would affect the organisation’s operations. This move may allow its competitors to take over a sizeable market share. A recommendation to a joint venture with the Australian Transit Enterprises will be beneficial, as it would enable the company to make use of its strengths and opportunities in the Australian economy.

Reference List

ATE: About Us: Who We Are 2015.

Bedwell, S 2009, Holden vs Ford: The Cars, the Culture, the Competition, Rockpool Publishing, Summer Hill.

Bena, J & Li, K 2014, ‘Corporate Innovations and Mergers and Acquisitions’, Journal of Finance, vol. 69, no. 5, pp. 1923-60.

Canis, B 2011, The US Motor Vehicle Industry: Confronting a New Dynamic in the Global Economy, DIANE Publishing, Hershey.

DePamphilis, D 2013, Mergers, Acquisitions, and Other Restructuring Activities, Academic Press, Boston.

Donnelly, R 2003, Guide book to planning – a common sense approach: strategic planning and budgeting basics for the growing firm, Van Nostrand Reinhold Publishing, New York.

Drewry Maritime Research: Risk Management in International Transport and Logistics 2009.

General Motors: Company: History & Heritage 2015.

GTA Consultants: About us 2015.

Holden GM: GM Holden Appoints Chairman and Managing Director; Announces 24 Major Vehicle Launches By 2020.

Infrastructure Partnerships Australia: Meeting the 2050 Freight Challenge 2008.

Keolis: Keolis In Australia 2015.

Laird, P & Bachels, M 2001, Back on track: rethinking transport policy in Australia and New Zealand, UNSW Press, Kensington.

Lee, R 2010, Transport: An Australian History, University of New South Wales Press, New South Wales.

Levinson, C & Khan, S 2014, Guerrilla Marketing and Joint Ventures: Million Dollar Partnering Strategies for Growing ANY Business in ANY Economy, Morgan James Publishing, New York.

Maister, D, Green, C & Galford, R 2001, The trusted advisor, Simon Schuster, New York.

McLaren, J 2012, International Trade, Wiley, Hoboken.

Pignataro, P 2015, Mergers, Acquisitions, Divestitures, and Other Restructurings, Wiley, Hoboken.

The Entrepreneurs’ Resource: Choosing Your Exit Strategy2015.

Tourism Research Australia: State of the Industry 2014.

Tolson, D & Younger, C 2009, Harvest: The Definitive Guide to Selling Your Company, Outskirts Press, Parker.

Vlasic, B 2011, Once Upon a Car: The Fall and Resurrection of America’s Big Three Automakers–GM, Ford, and Chrysler, William Morrow, New York.

Introduction

In the contemporary business world, it is prudent for management teams of companies to adopt effective approaches to making decisions, which would culminate in improved performance outcomes. Effective strategies would also help business establishments to maintain their existence in both local and foreign markets. It is apparent that GM Motors recorded better sales in China, a relatively new market, in 2009 than in the US, which could be termed as an old market. It is notable that sales of motor vehicles in the Chinese market grew by 46%, while sales in the US remained almost stagnant (Bloomberg 2010a).

It is no doubt that the management of GM Motors needs to adopt a new organisational design that would help it to take advantage of shifting trends in the global auto market (Bloomberg 2010b). This paper discusses the best approach that would be utilised for GM’s success in China. In addition, it highlights some of the structures that would be critical to expand to other markets across the world. Finally, it offers merits and demerits of adopting decentralisation in GM’s operations in the Chinese market.

Organisational structure ideal for GM’s success in China

Due to the fact that GM Motors recorded better sales in China than in the US, it is important for the company to use a strategy that would result in long-term trends of success in the new market. The best strategy that would be ideal for the enterprise is the team structure, which would focus on promoting teamwork and innovation (Blanding 2011). In the case study, it is notable that the organisation operates in China through a business venture with the SAIC Motor Corporation and Shanghai General Motors. However, it can be argued that the firm would reap more benefits if it would operate without collaborating with other companies. Since its products have already registered excellent results, it would be expected that they would continue to record exemplary sales in the future (Williams 2013).

The management should aim at establishing a major plant in the People’s Republic of China. Afterwards, it should create different teams of personnel. The cross-functional teams would work on different assignments, but with the aim of achieving common goals (Williams 2013). The teams would be critical to help the firm to learn about new opportunities in the expanding Chinese market. In addition, they would be essential to design high quality motor vehicles that would meet needs of customers. A vital aspect that should be realised in relation to the team structure is that it would remove functional barriers that would negatively impact relationships and creativity. Finally, the organisational structure would be key to reduce administrative costs of the company in China (Williams 2013).

Structures that would help the firm to expand to other markets

One of the approaches that would be utilised by the management to expand operations of the firm to other international markets across the world is the network structure. It would make GM Motors rely on other companies to perform important business activities, such as design, production, marketing, and distribution. Contracted firms would be paid on a contractual basis (Fung 2010). The approach would result in a fast pace of expansion of the firm to many world markets. Notably, the number of personnel and operations in different nations would reduce remarkably, leading to a reduction in operation costs.

Another structure for operating in other countries is the functional structure, which relies on a well-defined platform of corporate communications and responsibilities. It would make employees deployed in different countries answerable to the management via established channels, which would greatly improve productivity, and minimise cases of duplication of staff and equipment. In addition, it would be important to promote innovation among workers (Blanding 2011).

Merits and demerits of decentralisation

Decentralisation of GM Motors’ activities in China would result in some advantages. First, it would lead to greater efficiency and output. In fact, the management would focus on care, caution, enthusiasm, and delegation of authority. Second, it would result in relatively high levels of motivation and morale. Morale of employees would be increased because the delegation of duties encourages staff to work to produce excellent results. Third, decentralisation of the firm in China would lead to diversification of business activities by creating more job opportunities. In fact, new management teams would be assigned new duties. Fourth, it would promote effective control and decision-making processes within the firm, which would be essential to achieve excellent performance outcomes (Williams 2013).

However, the approach would also be typified by some disadvantages. First, it would lead to costly operations due to the fact that business functions would be duplicated. In fact, the merit has made small operations unable to adopt the strategy. Second, the approach would not support specialisation for the reason that all personnel would be involved in carrying out different tasks (Williams 2013).

Conclusion

It is apparent that GM Motors is a well-established firm that deals with motor vehicle production and sales across the world. It would be critical for the management of the firm to adopt the team structure in China. In order to expand to other world markets, the management can adopt the network and functional structures. As highlighted in this paper, decentralisation of the business establishment in China would have both merits and demerits.

References

Blanding, M, 2011, Getting to Eureka!: How Companies Can Promote Creativity. Web.

Bloomberg, 2010a, China Ends U.S.’s Reign as Largest Auto Market (Update2). Web.

Bloomberg, 2010b, GM’s China Sales Exceed U.S. for Third Straight Month (Update1). Web.

Fung, E, 2010, GM Expects Bigger Lift From China: Firm’s Yearly Sales in Country Are Likely to Top Three Million Vehicles by 2015. Web.

Williams, C, 2013, Principles of management. South-Western/Cengage Learning, Stamford, CT.

Article Summary

This article demonstrates how various decision-making tools can be used to increase production and growth in any given company. General Motors (GM) applied different tools and mechanisms in its efforts to salvage the company from extinction that was to be caused by stiff competition and poor management. To begin with, all the challenges that were facing this organization were listed and a team instituted to handle the identified challenges using the necessary tools (Alden et al. 7). The team came up with efficient models for use in project management. The first model to be adopted by GM was C-MORE, which was fast and highly efficient. Various assumptions were made in adopting this model, such as the assumption about the unreliability of workstations and the assumption that all buffers always had everlasting capacity (7).

The C-MORE model had a tradeoff in its capability to give an analysis that was between the system’s complexity in modeling and the speed at which the analysis was executed. Various easy to use equations were employed using a predetermined paradigm. One of the notable assumptions that were made by the research team was the fact that all variables were independent, thus not equal. It meant that if one working center failed, then the other centers would not fail; instead, they would continue to function at a reduced rate to compensate the rate at which the closed center would have been operating (8). The C – MORE was largely used to identify those centers that were more likely to have problems in data collection, as well as using historical results for comparison purposes. It is worth noting that results on performance estimates were obtained within a few seconds through the use of a computer.

There was the introduction of other methods that used discrete simulation to increase the degree of accuracy. Specific software, the discrete-event-simulation (DES), was developed to analyze the vast system that GM used. Data structures that were efficient were used alongside a representation flow of jobs to efficiently cater to the machines and the interaction of jobs movement within the system. More efficient software was developed to aid in the analysis of the data that was collected through the use of the C-MORE model (9). In a move to automate the collection of data, GM adopted the use of programmable data controllers (PLC) that relayed information collected from the production lines to a database that was centrally placed. Validation of data was done, followed by filtering data at several stages. Normally, the data collected was compared with the projected data from the C-MORE mode. Deliberations were always made among the team members before any decision was made on how to improve the throughput. Various case studies were reviewed and better training materials were prepared. The adopted C-MORE tool was put to test through a case study about an assembly center located in Detroit-Hamtramck (10).

However, the introduction of new technology that the workers had little knowledge about hindered the expected growth. On the contrary, it led to losses exceeding $100,000 per shift. To effectively change this worrying trend, all floor managers were organized to attend training conducted in GM’s labs. Continual data collection and improvement in the way work was carried out was critical for the company to appear in The Harbour Report among the plants that had the most improved performance. The success recorded brought with it a change in the job operation. The C-MORE technology brought with it improved data collection methods and enhanced teamwork. Later on, a central organization was formed to oversee the operations of all other plants in terms of training, development, and improvement of the C-MORE technology, as well as the introduction of a web system that interlinked all plants to enable them to send data to the central database at the shortest time possible. By the time of publication of this paper, C-MORE was in use in all the plants that GM owned. It helped different managers, engineers, as well as analysts to advocate for good manufacturing practices. GM developed good relationships with the suppliers, where engineers directly engaged with the suppliers to design what would fit in the production. This, in turn, reduced losses that were previously recorded as a result of poor engineer-supplier relationship (17).

Improved project management using various decision-making tools has enhanced the performance of GM. The use of the C-MORE approach has, in the long run, changed the behavior of both managers and engineers, resulting in increased revenue and growth of the organization. The model, which has undergone several modifications, has resulted in over $2.1 billion in savings, as well as increased revenue. The number of overtimes has reduced gradually. GM is now able to meet its production targets, thanks to the C-MORE tool. The tool enables the organization to compete favorably with other players in the automobile industry. Remarkable occasions are when the organization appears in The Harbour Report, which is the widely recognized paper that ranks different automotive manufacturers (19).

How the Article Relates to the Business Community

With good decision making, any company facing challenges can thrive and make profits again. Like the article’s example, success is not a one-off affair; instead, it is gradual. Success requires excellent project management, involving the use of the Program Evaluation Review Technique (PERT) and the Critical Path Method (CPM) in scheduling and controlling the processes. Any manufacturing company ought to maintain its production data. The personnel involved should be engaged in project management to make sure they forecast their production for the organization to meet its target. To register good results, an organization should use modern and relevant decision-making tools to reduce the amount of time that old and inadequate decision-making tools take to give results. Entrepreneurs in the business community can borrow from this article because increasing labor and investing heavily in equipment alone do not contribute much to an increase in throughput. Continued pressure on managers also fails to necessarily correlate to increased throughput. Rather, good project management is the key to a successful business.

This article vividly highlights the need to have a research and development department in any organization that wishes to see itself as a top brand in the future (8). An important lesson learned by personnel in the research and development is that they should adopt better data collection methods, alongside workable models. Another lesson for entrepreneurs is that different stations that are under one business should be interlinked, as a failure in one station would eventually lead to failure in other stations as well, thereby affecting the whole business. The speed at which station A manufactures its products should not differ much with the speed at which Station B and all other stations are producing. This prevents blocking and ensures smooth forecasting of throughput. Models that any business may wish to use in its pursuit of improved performance and growth of an organization should be efficient, easy to use, as well as fast in delivering results. As learned from the article, models that businesses intend to adopt ought to give outputs that are expected at the end of the project.

The magnitude of specialization in a manufacturing company should be put into consideration before adopting a specific method for use in the estimation of performance. One can also learn the fact that time series forecasting is a useful tool that businesses in various fields should use during their decision analysis and project management. To avoid errors in predictions, businesses should learn that poor data collection should be avoided at all costs (10). There is a need for organizations to have data records for all the production activities to avoid repeated obstacles in analyzing throughput. This can be done against a set of standards instituted by the organization. In the case of GM, it was able to install an automatic system of data collection in all its centers.

The use of software in conjunction with project models is reported to have many advantages. This is a welcome revelation to business people who wish to engage in any project management shortly. For example, there was a reduction in the time used by analysts in simulating line design by 50 percent at GM (11). Additionally, there was increased communication and efficiency in transferring the models from one person to another within the same facility. This would be an added advantage to those organizations that are challenged by physical and organizational boundaries. The development of advanced software that can analyze data efficiently is vital for organizations that aim to promote consistency throughout the organization. This is supported by the fact GM developed an improved software to enhance data analysis (11).

The research and development (R&D) team performed several trials and validations to determine the minimum amount of data that was required in the production at GM. Different types of data are always collected from time to time. However, to have a positive impact on the improvement of production, the management of every organization ought to install a team tasked with the implementation of the findings obtained from the data collected. This is vividly supported by the way GM collected data from various centers, but it was not until there was a team instituted that positive impact was observed (13). As observed in GM, data obtained from production units have to be deliberated upon by a group of competent team members before any decision is made on the recommendations to improve the throughput (14). Getting the right people to do a specific type of job is crucial for the progress of any company. It ensures that each specific job is done as projected and using the best knowledge available (17). Therefore, it is wise to invest in employees by conducting training and seminars to improve on the way different managers tackle project management. The fact that GM used employee appraisal to boost morale and improve the confidence of all staff should be welcomed by other companies that anticipate performing well (9). Like in GM, poor project management will lead to poor results, with case scenarios being unexpected losses. To make the work done by production managers more effective, their offices should be constructed close to where production is taking place. Moreover, spare parts should not be placed too far from where production is taking place.

Relation of the Article to this Course- Decision Analysis

This article has a lot that relates to this course concerning decision analysis. A good example is the use of the Gantt chart, which assists in artistic representations of when a given project in a given organization should have the earliest and the latest start, as well as the termination point. The use of decision trees is well portrayed in the article, where they define a chronological view of how the decision process was carried out and implemented mainly by the research and development department. One can argue that the analytic–decomposition techniques that were applied in this article were efficient because they were fast and they gave a wide range of alternatives that could be used to improve on the design of the system. One of the major driving forces in project management is continual improvement in an organization. This requires continual data collection and proper bookkeeping, which are in line with this course. GM praised the C-MORE model they adopted in their project management. A remarkable advantage of the C-MORE was achieved when the data for each operation in the production line was collected and analyzed. In one center, for example, one operator had to stop the production line every 5 cycles due to some bottlenecks.

The total time that was lost during those runs was significant to cause more losses. What followed was that the spare parts that caused the operator to stop the line were brought closer to his place of work. The office of the production manager was also brought closer to where production was taking place. This eventually reduced the losses experienced before and the company was able to register profits again (14). GM also had a database where information was kept for use in future predictions (15). It helped in foretelling the future by identifying the trends from the data. In the same manner, managers need to decide regarding various issues that they encounter, despite the uncertainty about the outcomes of their decisions. This article provides an example of cases where models such as C-MORE were adopted without even knowing what the future held in the company’s performance. Depending on the personalities of the person making the decision, the company either reported increasing results or decreasing results in case of optimistic and pessimistic types of managers respectively.

GM distributed free reading materials that emphasized goals in an organization in a move to boost morale and improve the working habits of its employees (15). A commendable program was introduced were centers that performed greater than others were rewarded, thereby boosting the employees’ performance and encouraging them to improve to get rewards during the next awards ceremony.

As expected, failure to register improvements leads to increased frustration in the whole team involved, as well as poor relationships with various labor unions. This shows that at one point GM did not use project controlling as a decision tool well. If a project is controlled well, then adjustments are made in the course of the project, in case of irregularities, to better suit the expected outcomes.

Work Cited

Alden, M. Jeffrey, Lawrence D. Burns, Theodore Costy, Richard D. Hutton, Craig A. Jackson, David S. Kim, Kevin A. Kohls, Jonathan H. Owen, Mark A. Turnquist, and David J. Vander Veen. “General Motors Increases its Production Throughput.” Interfaces 36.1 (2006): 6-25. Print.

Introduction

There is no use denying that a coherent society dictates its own rules according to which a person or a company should be efficient to survive and become successful. The image of a company plays an important role in this very process. It is usually associated with a product which a company produces and its quality. That is why such a phenomenon as product recall can have a rather pernicious influence on the image of a company and destroy trust which exists among customers towards the products of this very manufacturer. Moreover, it also touches such important issues as the financial performance of a company, leadership and communication styles, ethical environment, and organizational challenges which a company faces. All these perspectives are vital for the functioning of every company and should be considered carefully. Under these conditions, it is vital to analyze the issue of recalls in terms of the functioning of General Motors Company to understand the main aspects of the issue better.

Main Body

The issue of recalls

First of all, it should be said that according to Kubler and Albers, the number of product recalls has considerably increased during the last years (2012). It is connected with a great number of different reasons. First of all, living in a consumer society, a person obtains higher demands for quality. Moreover, he/she understands that the law protects the rights of a customer, and there is the possibility to demand compensation. That is why companies prefer to recall various products if some serious problem has been discovered in their exploitation. Such a procedure could not but change the image of a company, though it is still needed in the modern world.

Considering the great importance of the investigated issue, companies often have a certain strategy that could help them manage the process of recalls most efficiently. In her article, Magno states that the level of professionalism shown by the company while performing this not very pleasant procedure could help save the remnants of its image (2012). That is why various companies and GM company among them, devote much attention to this issue. It should be said that the latest GM recalls obviously could be called a very difficult step which a company had to make to guarantee its existence; otherwise disappointed customers will not use its products.

Recalls and their influence on the quality of products and image of a company

Another aspect of the issue of recalls is connected with the question of quality. Souiden and Pons in their work tend to prove the idea that being rather unpleasant for the image of the company, recalls at the same time could help to save it and improve the quality of products (2009). Taking its products back, a company confesses that there are some serious problems with their quality, though, at the same time, it shows that it cares about its customers and tries to improve the quality of products. GM company created a special recall center whose main aim is to help customers determine whether their vehicle should be recalled. This step could be taken as a sign of care about GM company’s customers and help to improve its image.

Thus, unfortunately, even all these actions could not reduce to zero the negative influence of recalls on the image of a company. Smith, Thomas, and Quelch, talking about Intel recall, underlined that they had a pernicious influence on the image of the company (1996). Things were complicated by the officials’ unwillingness to recognize their fault and start the procedure of recalls. That is why crowds of furious customers importuned the main office of the company. Nevertheless, GM’s decision to organize recalls without any hesitation can be taken as a wise step, which helped to reduce the negative effect of recalls and avoid complaints from unsatisfied customers.

Efficient management under complicated conditions

Taking all these information into account, it is possible to state that in terms of world financial crisis and a great number of different problems connected with its aftermath which GM faces nowadays, it is especially vital for a company to be able to manage the issue of recalls efficiently and guarantee its further existence. The article Measuring the short-term spillover impact of a product recall on a brand ecosystem also underlines its importance, stating the fact that wise management of a company and clear approach to the issue of recalls can help to make its aftermath not so pernicious for a company and return trust of customers (Mackalski & Belisle, 2015). Finally, it is also vital to concentrate on some other products for a company to be able to suggest them to its customers and make them forget about the disaster of their previous product. Under these conditions, GM company’s project connected with new sources of energy and new vehicles can be taken as a good step to obtain the interest and trust of customers (Eberle & Helmolt, 2010).

Conclusion

Having analyzed the given information connected with the issue of recalls, it is possible to make a certain conclusion. It should be said that it has a pernicious influence on the image of a company and, that is why it needs to be able to manage this process efficiently and try to save the brand image.

References

Eberle, U., & Helmolt, R. (2010). Sustainable transportation based on electric vehicle concepts: A brief overview. Energy & Environmental Science, 3(6), 689. Web.

Kubler, R., & Albers, S. (2012). The Impact of Product Recall Communication on Brand Image, Brand Attitude and Perceived Product Quality, SSRN Electronic Journal, 1-33. Web.

Mackalski, R., & Belisle, J. (2015). Measuring the short-term spillover impact of a product recall on a brand ecosystem. Journal of Brand Management,22, 323-339. Web.

Magno, F. (2012). Managing Product Recalls: The Effects of Time, Responsible vs. Opportunistic Recall Management and Blame on Consumers’ Attitudes.Procedia – Social and Behavioral Sciences, 58(12), 1309-1315. Web.

Smith, C., Robert, T., & Quelch, J. (1996). A Strategic Approach to Managing Product Recalls. Harvard Business Review. Web.

Souiden, N., & Pons, F. (2009) Product recall crisis management: the impact on manufacturer’s image, consumer loyalty and purchase intention. Journal of Product & Brand Management, 18(2), 106 – 114, Web.

There is no use denying the fact that the issue of recalls and its influence on the image of a company is closely connected with the feelings and emotions of customers. Starting the procedure of recalls, a company confesses that the products manufactured by it have some crucial problems and there is no opportunity to get rid of them but to give these products back. It is obvious that under these conditions a person feels bad because of several reasons. First of all, he/she becomes deprived of the feeling of joy and anxiety connected with a new purchase. Especially topical it is for the owners of cars manufactured by General Motors. Being rather significant purchase, a car can give a lot of pleasant moments for its owner, though, in case of recalls positive feelings are replaced by anger and disappointment as a customer has no possibility to enjoy his/her purchase. It is possible to predict the fact that appearance of these feelings can lead to the deterioration of the customers attitude towards GM.

However, to obtain clear and credible information, it is necessary to undertake a study which will take into account all thoughts and feelings of customers connected with the issue and process them, suggesting credible information for further investigation of the issue. The targeted audience for the research should be chosen according to several factors. First of all, they should be the owners of cars manufactured by GM. Moreover, it is possible to suggest subdivision of customers to those who suffered from recalls and those who not. These two control groups will be given the same questions and the difference in answers will show how some recalls can alter the customers attitude towards the company and the issue of recalls itself. Moreover, the information obtained in this way can help to support the given research paper with clear evidence of the influence of recalls on the image of the company. Finally, basing on the answers given by the interrogates, a certain idea could be obtained and developed in the course of research work. Moreover, interrogates answers can help to create recommendations for the company to improve its image. With this in mind, it is possible to conclude that the survey among the owners of cars created by GM is the best possible remedy to collect credible information for this project.

Introduction

Multinational corporations experience numerous challenges when operating in foreign countries. These are fronted by macro environmental disparities between the two concerned states (home and foreign). This paper discusses General Motors (from the USA) with regard to its business operations in China. It is evident that both countries are quite different in the realms of their macro economical, political, legal, cultural, and societal factors. These disparities have major potentials in dictating the fate of GM in its international outlets, global presence, marketplace visibility, and profitability. The paper equally determines how the mentioned factors vary for GM both in the US and China. Consequently, such factors have affected the management of GM (in China) in various contexts including its operations, growth, and profitability. It is crucial to consider such factors critically on business grounds.

Macroeconomics

It is evident that the economy of the US is far much different from that of China. As at 2011, the USA and China had a GDP of $15.094 and $7.298 trillion respectively indicating the mentioned macroeconomic disparity. Due to this, GM has to operate tactically in China while considering the aspects of economic hitches within the country. Its business’ strategies and operations must change significantly in order to adopt and survive in the Chinese market. Economic aspects affect numerous businesses in a considerable manner. It dictates the volume of production, sales as well as the ultimate profitability. Evidently, it is expensive to establish an automobile company; thus, it must be favored macro economically in the concerned foreign countries so as to recover the costs it incurred on installations, operations, and management. Since China is known for manufacturing cheap products (automobiles included), this might create a massive macroeconomic hindrance to GM in the Chinese market. Consequently, the company has to restructure its products, operations, promotional strategies, and management tactics in order to remain relevant, competitive, and cost effective in the Chinese market. Precisely, the management aspects of GM are quite different in the Chinese market.

Politics

Political aspects of both countries differ remarkable. The ways through which the USA handles her political provisions differ considerable with that of China. This relates to the business provisions and other political restrictions that the business might face in the foreign territory. Consequently, GM has enacted critical managerial provisions in order to abide by the political demands of China. Since the company is not operating in its home country (the US), it must observe the political aspects of China and adopt them for its own good. This is only achievable through managerial mechanisms relevant to China in the political contexts.

Regulatory

Countries have different legal provisions governing foreign businesses within their territories. The laws that govern GM’s operations in the US differ remarkably from those of the Chinese government. This has forced GM to enact managerial practices that will adopt and embrace the legal requirements of China in order to survive in the very market. The laws that govern foreign businesses differ substantially from one region to the next. China has stringent laws for the foreign firms compared to the local ones. This refers to the policies on environmental protection, business provisions, taxes, and other legal rights. Consequently, it is necessary for GM to abide to the China’s laws in order to remain relevant in the region.

Cultural

The culture of the Chinese people differs considerable from those of the US citizens. This different is able to affect the GM’s survival in the Chinese market in case the organization is not well-managed and lacks critical, managerial, social, and tactical provisions in its promotional endeavors. The marketing aspects of the business must observe these factors so as to allow the company achieve its business objectives with precision. Managing the cultural diversities within the workforce is an important consideration in this context. Since GM has a workforce, which includes people from various racial and cultural backgrounds, the management has to enact good managerial practices that will embrace cultural diversity.

Social

Similarly, the Chinese social aspects differ remarkably from those of the US. This similarly forces GM to reconsider its managerial, operational, and business strategies to ensure that the organization attains its tactical business objectives despite the challenges. Chinese people have different social life influenced by their cultures and other relevant factors. This is an important provision that GM must observe in its endeavors. Evidently, the social trends of a country determine the buying capability of her natives. This is a critical factor in the GM’s context. The social life of most Chinese people differs from those of the US people. Nevertheless, this has not affected GM’s performance in the Chinese market. It adopts critical managerial mechanisms in order to realize any remarkable market visibility and other considerable factors in the motor vehicle industry.

Conclusion

Multinational businesses experience varying challenges in foreign countries. This ranges from political issues to cultural provisions. GM has endured to survive in the Chinese market by restructuring its managerial provisions to match those of the Chinese people. This has considered the aspects of culture, societal, moral, and macroeconomics among other lucrative provisions.

GM Strategy, Structure, and Decision-Making Processes

During its infancy years, General Motors operated under the umbrella of three strategic plans, which included the utility of resourceful marketing policy, accompanied by innovativeness, and well-planned international diversification (Garvin and Levesque 1). Over the years, the management of GM, under Sloam, developed a pricing pyramid, which has been able to fit the budgets of its customers.

In this regard, GM had to make cars that ranged from the economy class to luxury models, and it was able to top in the industry by differentiating itself from other vehicle companies in the United States. Through technological advances, GM has transited a series of innovations such as the annual change in vehicle models, inclusive of overhead valve V-8 engines, increased compensation, a fully automated transmission, and use of premium fuels.

Inclusion of financial products with money lending services via GM Acceptance Corporation subsidiary has been introduced. This has resulted in positive progress in making GM superior over time. Lastly, diversification has been achieved gradually with increasing level of export and purchase of motor firms abroad. For instance, Vauxhall, Opel, and Holden were purchased from the UK, Germany, and Australia, respectively by GM in five years.

About the structure of the company, the top management, headed by Sloam, developed a multidivisional structure that overshadowed the loose GM management system under the founding head, Durant. GM decentralized its operations in a controlled manner to achieve maximal efficiency and economy (Garvin and Levesque 2). Essentially, the decentralized management of GM entailed groups and divisions headed by group executives, the board of directors, and a policy group that completed GM as a leading motor organization.

The decision-making process has been under the management committee and the policy groups. The policy groups within the firm were formed to increase efficiency and performance outcomes. They involved members from all the departments to ensure a high level of diversity.

For instance, the groups ensured that management policies were reviewed in time and that labor contracts were signed according to the provisions of the law. The senior management in the decentralized organizational structure of GM has, over time, been detached from the interests of the lower groups. Thus, it has been focusing on broader issues about global markets.

Alignment of Organizational Processes

Considering the alignment of these organizational processes, the strategic plan of GM, since its creation, has been to provide quality products to all its customers with a gradual diversification internationally.

Attainment of market leadership was through a strong decentralized structure that was highly synchronized with strong linkages between the top management and lower group management (Garvin and Levesque 4). Decision-making was achieved independently without the interference from the senior management, including provisions where endorsement of innovations, the inclusion of new technology, financial obligations was left to specific group managers.

Challenges of Matrix Organization GM’s “Basketweave”

The major challenge in managing the matrix organization such as GM’s “basketweave” was managing change, especially in sustaining and upholding the correct balance between local and regional interests, and managerial interests relating to centralized management to guarantee optimal economies of scale in the organization (Garvin and Levesque 8).

Specifically, the senior management, under Wagoner, disparaged places where GM required streamlining its policies along horizontal lines of the matrix and acquisition of optimal economies of scale in the implementation of new vehicle models.

Solutions to the Challenges

The GM management, following several ASB meetings, the designed solution to the challenge to be a change in responsibility concerning product development and budgets regarding the engineering component of the company (Garvin and Levesque 8). The strategy of decentralization helped the company to improve its performance considerably. For example, all responsibilities, product, product manufacturing, and activities about strategic planning were centralized.

The ASBs Decision-Making and Rick Wagoner’s Role in the Process

The ASB decision-making process was principally mechanical and was characterized by differing worldviews concerning the assessment of its effectiveness. Better communication with senior management through flawless interactions resulted in improved processes in the organization. Due to these interactions, issues surrounding the ASB operations were made clear (Garvin and Levesque 13). This is pertinent to the definition of good decision-making processes about superior management.

On the premises of Wagoner’s intuitions, his consideration of ASB as an enemy of speed shows some demeanor of diversification, which is converse with the interests of the organization and goals of the founding managers of the GM Corporation. On the other hand, his considerations regarding diversification of the mechanism and efficiency in decision-making elicit superiority in deliberating over twenty issues within a single meeting.

Diversity of Decision-Making Processes

Diversity of decision-making processes within firms implies that many people are involved in making decisions that could have implications of organizations. Thus, many companies always adopt diverse approaches to making decisions so that they could improve performance outcomes.

Diversity of the decision-making processes in large organizations may be hampered by different worldviews on issues impacting the companies. With a management system such as the one applied by GM, the simulation company would elicit strong decisions based on the stability of GM under the same valuable mechanisms employed in decision-making. Integrating policies as those implemented in ASB for governance and decision-making can lead to thriving of a simulation company.

Works Cited

Garvin, David A., and Lynne Levesque. “Executive decision making at General Motors.” Harvard Business School Case 1.1 (2006): 1-20. Print.

Introduction

When excellent and experienced leadership is in place within a corporate organization, it may be experienced throughout the organization. With good leaders in control, corporate cultures are freely practiced by the stakeholders, especially the employees (Bruch & Vogel 2010). This also enhances communication between employees and leaders; in this case, everybody understands the goals, mission, and vision of the company (Bruch & Vogel 2010). Therefore, the success of a corporate organization, both at national and international levels, depends on the kind of leadership in place. This means that everything rises and falls on leadership (Bruch & Vogel 2010).

It is important to note that leadership in multinational organizations poses more challenges than those in national organizations (Rugraff & Hansen 2011). In this case, the multinational organizations have more challenging roles than the national ones have (Rugraff & Hansen 2011). This is the reason leaders have to lead by example to demonstrate how to be accountable for their actions and how to actually deal efficiently with adversities. This is the subject of this paper; this paper examines the leadership traits that can role-model the right behaviors within the environment of a multinational company operating in at least three countries. In tackling these issues, the paper focuses on General Motors and the three states in which it operates.

General Motors, commonly referred to as GM, is a multinational corporation whose headquarter is in Detroit, Michigan (Daft & Lane 2009). It is one of the largest automobile corporations in the world. It has its subsidiaries and operations in more than 150 countries around the globe (Lane & McNett 2009). In examining the context of General Motors, the focus is placed on three countries: Kenya, the United States, and China.

Leadership in the Context of General Motors

As a component of their responsibilities, managers of multinational corporations should influence other employees to concentrate on maximizing the value of the organizations across the world. However, it is essential to note that the leadership in a multinational corporation comes with more responsibilities than that of a national corporation (Rugraff & Hansen 2011). In this case, there are many reasons a leader should lead by example, especially concerning multinational corporations.

As earlier noted, business operations in a multinational context have several differences when compared with business operations in a local context; one of the differences is that a multinational business environment has diverse cultures (Kezar 2008). For instance, General Motors operates in the United States, Kenya, and China among other countries (Haviland, Prins, McBride & Walrath 2010); these countries have relatively different cultures and lifestyles (Landstrm 2005). Justifiably, there should be a shift from the types of thinking that has a singular cultural dimension to that of a cross-cultural dimension; this requires a blend of knowledge of how corporations may take advantage of different cultural diversities. Concerning this, it is important to note that emerging market economies have resulted in a change in the manner in which corporations deal with cross-cultural diversities (Semeon 2012).

Hence, the biggest question is how a corporation like General Motors can survive in a multicultural business environment occasioned by its presence in Kenya, China, and the United States. This is what necessitates the need for a leader who can take the lead and create the most appropriate leadership models that are inclusive; these leadership models should be mirrored by the junior managers and employees to successfully achieve organizational goals and objectives. The leader should have enough knowledge of the different cultural environments that his or her corporation operates in (Aswathappa 2010). For instance, General Motors has experienced tremendous success in its global operations because its regional leaders, like the one in charge of international operations, have experience working in different parts of the world, which have varied cultures and beliefs (General Motors 2012).

Leaders should also lead through actions (Blazey 2009). This means that they should not just be heard talking about corporate issues; they should also be seen to act on their words to achieve desirable results. Leaders may efficiently translate their intentions into realities by acting on the leadership models and messages they teach to their juniors. They should also act on the things they speak to other leaders and employees. The implication of this is that leadership is about setting the right example for the people who are led to follow; it is more of an active demonstration of one’s belief rather than just speaking about it. In this regard, General Motors has ensured that its subsidiaries in Kenya, China, and the United States, among others, are headed by visionary leaders (General Motors 2012). This has resulted in team-building and, hence, the achievement of company goals and objectives.

Growth of a multinational corporation is very crucial for its survival in the global market (Levi 2009); the employees and other stakeholders within the organization should also grow. This requires higher standards of practice. Leaders may bring their teams to higher standards by committing themselves to greater challenges themselves (Levi 2009). In this regard, the capabilities, aptitudes, and traits of a leader in a multinational organization provide a broader foundation on which juniors and other stakeholders can grow both as individuals and groups. Therefore, leaders can encourage their followers to adopt a higher standard by being examples of greater control and drive (Levi 2009).

Leadership Accountability

Accountability throughout a multinational corporation is also important to its successes or failures (Banks 2012). Reliably, it is worth pointing out that all executives, supervisors and junior staff members are responsible for the ultimate results of the corporation. For all these people to work towards achieving organizational objectives, the top leadership must create an avenue of accountability by all; this starts by the executives themselves being accountable for the actions they take within the organization (Hansen 2010). When this happens, all other personnel also become motivated to follow in the footsteps of the executives. When this is replicated in all the subsidiaries, the multinational corporation achieves success (Hansen 2010). This is the scenario that exists in the General Motors and its subsidiaries, especially in China, Kenya, and the United States; every manager at every level of the organization can demonstrate his or her accountability, which consequently inspires other personnel to work as a team to achieve the organizational goals and objectives (General Motors 2012).

Dealing with Adversities

Operating a business in the global environment has significant challenges for leaders of multinational corporations (Samir 2008). Therefore, it is paramount that such kind of leaders should be resilient in the face of adversities (Samir 2008). Adversity may be an ongoing unfavorable business condition that may or may not have setbacks; but, it can slow down the process of achieving organizational goals and objectives (Samir 2008). Adversities can last for a prolonged period and include numerous events and changes in circumstances. This kind of scenario requires the leadership of an individual who is resilient and innovative to deal with it successfully without letting the core business of an organization to suffer setbacks (Samir 2008).

It is important to note that General Motors has also suffered many global adversities since its inception. One of the most significant adversities that affected the company was that of the Great Depression, which was aggravated by the effects of the Second World War (Smith 2006). However, the corporation came up with aggressive leadership, which helped in the management of the adversities. This saved the company from the brinks of collapse and ensured its success in the international market (Beaudan 2012). The leadership demonstrated how to deal with various adversities; this set precedence for succeeding leaders to follow, thereby becoming one of the strategies that have been helping the corporation to survive in the global market (Beaudan 2012). This is a testimony that when leaders demonstrate how to deal with adversities in a multinational corporation, their followers are also likely to gain confidence and deal with similar adversities. The overall result is the success of the corporation in the global market (Beaudan 2012).

Dealing with adversities in a multinational business environment does not just mean coming up with solutions; it also implies that leaders should share in the hardship of adversities with the rest of the personnel in the organization (Daft 2008). This makes junior personnel feel that they are all in the situation together with the leader. This constitutes a move and attitude that strengthen the credibility of a leader. Consequently, the credibility of a leader enhances the devotion of the staff members in improving the situation (Daft 2008).

Required Leadership Traits

A leader who can demonstrate accountability and how to successfully deal with recurrent adversities in the context of a multinational corporation should have some specific traits. It is worth recollecting numerous multinational corporations do fail due to bad leadership (Sornum 2010). This implies that some of the leaders lack the requisite character traits that can enable them to competently handle global business issues that may negatively affect their corporations. Besides, such leaders may not have the ability to rally their junior employees behind organizational goals and objectives (Sornum 2010). As a result, a leader who wants to be successful in a multinational corporation should have some crucial traits. These traits form the subject of the next paragraphs.

To be an exemplary leader in the context of a multinational corporation like General Motors, one needs to be able to identify paradigms that drive changes within a corporation, especially for different countries in which the company operates (Suder 2008). With this ability, the leader can demonstrate how to handle various situations within the organization, thereby motivating others to work as a team (Suder 2008). It is also important that a leader in such a context should possess mediation skills. This helps the leader to facilitate knowledge sharing among all stakeholders, especially the junior personnel. A leader should also be decisive in an ever-changing international business environment (Suder 2008). In this case, he or she should be able to prudently deal with challenges that affect the organization and also account for all the actions and decisions he or she makes while performing organizational duties (Suder 2008). This enhances teamwork and creates trust in his or her juniors.

Moreover, a leader in a multinational corporation needs to get motivated by personal values, and not just financial performances, to deal with various business issues within a corporation (Suder 2008). General Motors’ success has been pegged to the fact that its leaders are guided and motivated by their values (Griffin &Moorhead 2011; Dierkes, Antal, Child & Nonaka 2003); this is therefore exemplary. This implies that leaders need to demonstrate a commitment to their beliefs over a relatively long period so as encourage other personnel to ensure continued efforts within the organization. In General Motors, these leadership traits have been demonstrated in all the countries in which its subsidiaries are located. The consequence of this is that all personnel in every country are always motivated to give their best to the core company’s business operations (Mobley 2012).

Conclusion

With good leaders in control, corporate culture is freely practiced by the stakeholders, especially the employees. This also enhances communication among employees and leaders; in this case, everybody understands the goals, mission, and vision of the company. A leader should be able to account for his or her actions and decisions that impact company operations in an international business environment. Besides, a leader should also demonstrate how to deal with company adversities that come due to international operations, which may threaten company performances.

References List

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Introduction

Organizations experience different kinds of changes in their life cycles. These changes require effective management to allow organizations to thrive in the future. In this essay, we apply the Four Frames of Bolman & Deal (2008) and the Eight Stages of Kotter & Cohen (2002) to create a plan to manage culture change at General Motors (GM). It shows how a new organizational culture change can save GM.

Critique the GM’s Profile

GM has been in business for over 100 years. However, in the year 2009, the company declared its state of bankruptcy after losses and declines in market shares and profitability. These events necessitated a large-scale culture change at the company. GM had to change its culture and processes to avert a total closure. Changes started with the appointment of the new CEO, Fritz Henderson.

It is important to note that bankruptcy stimulated a radical cultural transformation in the operations of the company. Henderson focused on a new culture for GM by concentrating on four areas namely, “risk-taking, accountability, speed, and customer and product focus” (Smerd, 2009). The next stage involved effective communication with GM workers and other stakeholders in order to avoid further financial losses. The new CEO faced imminent pressure to turnaround the company through his proposed culture changes. Moreover, Henderson faced pressure from the Federal Government because it expected quick improvement from bankruptcy.

A Plan for Creating Urgency at GM

The new management team must understand a sense of urgency to determine the level of complacency within GM. GM has been on top of the market but faced bankruptcy, which it has to recover from somehow. The company had failed to react positively to signs of imminent bankruptcy. The state of bankruptcy inspired significant changes, which the new CEO had to incorporate in order to steer the company to profitability.

The new management team must ‘aim for the heart’ i.e., guarantee to succeed in its change effort. The new management team must turn to human resource managers and employees to inspire them to grow the company. Employees must inspire culture change at GM. The new CEO must engage employees and communicate effectively to inspire success.

GM must restructure its top leadership and define the new roles of the HR department. The HR department must support a culture change in GM, but it must let employees and leaders to drive the change. GM must develop a procedure for adopting a culture change and put it into practice. It must have a new performance management approach, training for the new culture, effective communication systems for its new values, and a project management team.

An approach to attracting a guiding team

The new CEO needs help to create the right vision, communicate effectively to all employees, eliminate challenges and realize short-term wins. Also, the new CEO needs to lead and manage culture change and inculcate changes deep in the GM’s culture. The company must work on a new culture, which requires a guiding team that would lead GM to success. A guiding team must have the right people to lead a culture.

The guiding team would provide several advantages to the new GM. After the bankruptcy, GM must not miss the opportunity to make decisions that would transform the company. Leaders and managers must be a part of the guiding team in the culture change program. Trust is critical among team members because it would allow them to function effectively.

The team must share similar values and develop trust to make a culture change successful. In this regard, the new CEO and other managers must consider the expertise of the members in order to attract a team with the required expertise, viewpoints, and decision-making abilities. The team must consist of adequate team players to avoid blockage of progresses. The CEO and other managers within the team must be credible leaders so that employees can take their decisions and announcements seriously. Finally, the guiding team must consist of people with leadership abilities, who can drive culture change in GM.

The culture team for GM must consist of a favorable number of leaders and the HR manager.

Components of a change initiative at GM

According to Rob Kleinbaum, “a focus on changing structural costs would not save GM” (Kleinbaum, 2009) from its troubles and bankruptcy. Hence, the focus should be on culture change at GM. Culture change must ensure that the board holds the CEO and other senior managers accountable for results and performance. Training and education programs for employees must reflect best practices in the industry. The company’s culture on promotion must emphasize merits rather than patronage. Regular meetings must not kill ideas but focus on product and business developments. On this note, GM’s culture change must focus on four critical areas.

First, GM must change its performance management approach. Performance must reflect merits. Second, GM must develop a new training program to inform leaders and employees about the new culture and what they should contribute in the process. Third, GM must communicate effectively with all stakeholders by using both internal and external communication channels. Finally, the company must create a team to drive culture change programs.

All these initiatives must focus on risk-taking approaches, accountability of senior executives, urgency, customer, and products.

A Communication Plan

A communication plan for GM must reflect culture change efforts. Also, the new CEO must ensure that many employees understand and embrace cultural change. The plan must avoid miscommunication and inconsistency.

The new CEO must communicate the new culture on an hour-by-hour basis, and the message must reach all departments of GM.

Henderson must use effective communication channels to pronounce culture change in GM. He will use:

• E-mails
• Memos
• Meetings (must be exciting and engaging)
• Presentations (must be lively)

Communications must focus on GM’s problems and the new culture. Communications should be simple and vivid with examples from the industry, and employees should be able to replicate such ideas in their departments. The CEO must use:

One-way communication

This would involve the provision of information about details of the new culture to employees.

Two-way communication

The new CEO would use this approach to facilitate feedback from employees and other stakeholders. Senior executives must provide convincing responses to employees and the board.

Senior executives must seek feedback from employees in all forms of communication channels. A mere gratitude may not be adequate when changing a culture of an organization. In other words, senior executives must insist on employees’ feedback and inputs. This allows employees to have direct inputs and influences on the change process.

All forms of communication must be precise and clear. For instance, senior executives must declare their objectives precisely.

Leaders must also engage in the process and ‘walk the talk’.

Questions and Answers anticipated from employees

What is the new culture and will it save the company?

The new culture aims to introduce a sustainable business model at GM. The culture will save the company because the focus will be on areas of weaknesses such as customer experience, business, and product development, and downsizing.

Will the new culture improve liquidity, eliminate bankruptcy, and lead to profitability?

Effective implementation of a sustainable business model would change the company bankruptcy and lead to profitability.

GM is a large corporation with thousands of workers. How will the company put culture change into practice throughout its global networks?

The company will facilitate two-way communications. Moreover, senior executives would encourage employees to own the process, ask questions, and provide their inputs and feedback.

What are the roles of employees in the new culture?

All employees must ensure that change reaches every part of the company and display the best practices in the automobile industry.

Maintaining credibility with the employees and creating faith in the change effort

The first approach would involve developing trust among all stakeholders. Senior executives must establish trusts among themselves and with employees.

The guiding team must be experts and people who have track records of performance. This would establish credibility in the change process.

Leaders must believe in the change effort to create faith among employees. Senior executives must translate whatever they say about culture change into action. Leaders who are willing to transform GM must engage in action to establish credibility and create faith in culture change. This makes such senior executives living examples and representatives of the new desired GM culture.

All communications and communication channels must be consistent. Leaders must establish credibility through consistent communications and information. Employees will require their superiors to back up their communications and information with facts, logic, data, action, and behaviors (Bolman & Deal, 2008). When change agents and leaders behavior in a manner that facilitates culture change, then the whole firm will change and follow their direction. Senior executives would be able to motivate, inspire, create faith, and reduce cynicism among employees.

Senior executives must enhance their credibility by involving other employees in developing and implementing the suggested change efforts. Employees would embrace the change effort as soon as they begin to realize positive outcomes.

A plan to empower GM

In most cases, the internal structures of GM have opposed changes. For instance, Smead noted that current and former employees showed that GM had “struggled to impose cultural change across the highly bureaucratic system in which brands, departments, and regions operated like self-governing and competing states within a federation” (Smerd, 2009). Also, there were “times when senior managers have pushed cultural change and there was resistance from the workforce, then there had been times when the workforce wanted to change and resistance came from senior management” (Smerd, 2009).

Such odd visions within the organization have hindered culture change. Structural barriers in GM have originated from complex and bureaucratic decision-making processes. Empowering GM would involve eliminating the fragmented processes, improving decision-making processes, and reducing groups that create costly programs and processes.

These challenges have existed in GM for several years. Hence, they would present considerable challenges to culture change. Empowering the company would require realignment of performance appraisal approaches, promotion, and incentives. This would ensure that change efforts have profound impacts on the company.

Managers must use the information management system to enhance the implementation processes of culture change. GM must use effective and powerful communication systems to empower employees. This would facilitate feedback and provide information required for efficient culture change.

GM had problems with its managers who would oppose the proposed culture changes. Such habits often become components of management style within the company. While such managers may not oppose culture change openly, they do not support change initiatives as required. In most cases, change agents have failed to get support from this group of leaders. GM must avoid challenges, which such leaders pose to culture change by seeking for their supports. However, senior executives must recognize that resistance from managers may not have an easy solution. Nevertheless, honest discussions may aid in overcoming challenges associated with management resistance.

The political climate and sub-climates within GM

GM had a tradition of fierce competition among its many divisions and branches. The independent automakers competed for resources, market shares, and there was a general lack of centralization in all processes of the company. This was costly to GM. This culture of competition created a company in which leadership believed in competition for available resources and constant conflicts.

The new culture requires GM leadership to create networks and coalitions that support the fair distribution of resources. GM must create leadership that can adapt to such cultures and support new cultures of effective utilization of available resources.

GM must centralize its operations to reduce conflicts and competition among its subsidiaries. Elimination of competition for funding and other resources will enhance innovation within GM and create streamlined operations. After the bankruptcy, GM leadership must reach a consensus that the need for change culture is inevitable. However, some leaders have maintained that GM’s culture was perfect. Instead, they blamed economic crisis and high fuel prices for their problems. After the consensus, different leaders will support and implement culture change programs.

Disempowering symptoms within GM culture

Competitions for resources and conflicts within GM are major symptoms within its culture. Also, bureaucratic processes of decision-making in GM have affected some departments negatively. These symptoms have resulted in costly affairs for the company.

GM has failed to implement an enterprise-wide initiative and sell it to all departments because of decentralized systems. Many departments would resist such attempts by saying that they already have ‘something going on’ in their areas.

How to change these practices, empower action within the pockets of politics, and create short-term wins that generate ongoing momentum for change initiative

GM must begin by replacing some top senior executives. This process must start at Detroit. The company can replace them with outsiders, or people who have experienced different cultures within GM i.e., from oversees. These changes must also affect the board because of their key contributions to the company. The GM’s board has failed to ensure any form of accountability or culture change from senior executives. Instead, they have favored management decisions without any questions.

GM must adopt centralized and unified systems and work as a team toward eradicating bankruptcy and changing its culture. This would result in streamlined and cost-effective processes within GM. GM will have to eliminate several departments and adopt a single department that focuses on business and product developments. This would eliminate redundancy and bureaucratic processes in the company.

GM must embrace training and education in the entire organization. Training and education must change juniors, as well as seniors. Education would ensure that the company overcomes short-term challenges and establish long-term commitment for the future. Education should extend beyond the company and enhance exposure among some of its outside stakeholders.

Symbols used at GM

For several years, the GM’s board and management have supported the existing culture by asserting that nothing was wrong with it. Moreover, the board and senior executives have claimed that these events were beyond their control. This notion has instilled situations in which “most meetings are still exercised in procrastination, rubber stamping or idea killing, without anything that would pass for genuine debate and dialogue” (Kleinbaum, 2009). Smead noted that GM had “hierarchies and bloated executive ranks in which no one wanted to criticize a project that was not working for fear of a boss’s reprisal” (Smerd, 2009). This resulted in slow decision-making processes, which had negative effects on product developments.

Such approaches to core decision-making in GM have created symbols that have resulted in slow processes and bureaucratic leadership. GM can overcome such symbols through “genuine discussion, feedback, and intellectual engagement” (Kleinbaum, 2009).

GM can only change these symbols by changing its people and leadership. Also, GM must alter its internal structures to create an enabling environment for cultural changes. However, this must be a conscious process among senior executives who want to facilitate culture change.

Senior executives have been reluctant to make tough decisions that would affect the company in the short-term but create long-term solutions. Instead, they have resorted to continual compromise of important decisions, which resulted in immediate challenges. GM has failed to align its manufacturing and operations to market realities. The company has never fired any employees for poor performance. The new culture must change these belief systems, but it can only work with the support of senior executives.

GM must adopt a progressive culture and abandon relying on its past success (Glover, Rainwater, Jones & Friedman, 2002). The static culture has created a situation in which the company cannot make fundamental decisions for tomorrow. While the company has made some achievements in its reform efforts, there is little to praise because senior managers have not changed as required.

GM must rise beyond cost reduction as a strategy to restore its profitability and define new paths for investments. The board and senior managers believe that the company can “reduce its capital investment in products whenever times get bad without having to pay for it in consequences of compromised characteristics and lower share and price” (Kleinbaum, 2009). Instead of capital restructuring, the company should invest in its products and employees.

To overcome these challenges, GM leadership must ignite inspiration in its employees. Leadership must appeal to employees and capture their attention in order to instill a culture of continuous change (Glover, Friedman & Jones, 2002). It must communicate the intended vision effectively.

GM must adopt zero-tolerance for senior executives who do not support the new culture change. The company must create a sense of urgency by acting quickly, boldly and listening to “feedback from customers, employees, dealers, media, and just about anyone else with an opinion” (Smerd, 2009).

References

Bolman, L. G. & Deal, T. E. (2008). Reframing organizations: Artistry, choice, and leadership. San Francisco, CA: Jossey-Bass.

Glover, J., Friedman, H., & Jones, G. (2002). Adaptive leadership: When change is not enough (part one). Organization Development Journal, 20(2), 15-32.

Glover, J., Rainwater, K., Jones, G., & Friedman, H. (2002). Adaptive leadership (part two): Four principles of being adaptive. Organization Development Journal, Chesterland, 20(4), 18-38.

Kleinbaum, R. (2009). Retooling GM’s Culture. Web.

Kotter, J. P. & Cohen, D. S. (2002). The heart of change: Real-life stories of how people change their organizations. Boston, MA: Harvard Business School Press.

Smerd, J. (2009). Can a new corporate culture save General Motors? Web.