To counter this GM had initially planned for organizational restructuring. Such agility is expected to support the company’s efforts to improve overall business performance, especially in the face of internal problems and rising competition with firms like Toyota and Ford (Read: Ford Motor Company’s Organizational Culture). For example, the corporate culture enables GM to develop its competitive advantage on the basis of rapid innovation and positive relations with stakeholders, whose interests determine the initiatives and programs in General Motors’ corporate social responsibility strategy. One of the greatest strengths of Barra that helped her influence organizational culture is the fact that she was an insider for more than 30 years (Day). By 2014, the government's bailout of GM was complete. This cultural characteristic helps minimize and mitigate problems in the company. General Motors can boost employee support for innovation through this additional characteristic in its corporate culture. The cultural characteristics of the business are beneficial to GM. 1. The organizational culture is the most fundamental characteristic as it enables the organization to cope well with its environment. "General Motors Company: Organizational Culture and Strengths." When handling a crisis, it is not only essential to be open about the issue but also to support communication in the organization to understand how unethical or illegal (in case of GM) employee activity resulted in a crisis. Company I chose was a multinational company which manufacturers and marketer which designs, manufactures, fabricates, showcases and conveys vehicles and vehicle parts and offers financial administrations, General Motors Company commonly known as GM (GM.com, 2016). October 6, 2020. https://ivypanda.com/essays/general-motors-company-organizational-culture-and-strengths/. You are free to use it for research and reference purposes in order to write your own paper; however, you must. This corporate structure type is usually employed when there are significant differences among regional markets. However, a disadvantage is that General Motors’ corporate culture does not put emphasis on going beyond typical paths of innovation. ensure the integrity of our platform while keeping your private information safe. In General Motors’ case, the corporate culture promotes agility in human resources. Thus, through this characteristic, General Motors’ corporate culture also attracts high quality talent. As you pointed out, organizational communication is key to creating a true, ethical culture. Toyota & General Motor’s Organizational Behavior. Mar The crisis was intensified after it became known that GM engineers had been aware of the … "General Motors Company: Organizational Culture and Strengths." An advantage of General Motors’ organizational culture is its support for human resource development. Positive relationships are valued in General Motors’ human resources. Also, innovation and quality contribute to the technological advancement of the company’s products. As someone who was there at its launch and witnessed a striking story of phenomenal company culture reinvention, I am often asked: “What did you really do to change the culture at NUMMI so dramatically, so quickly?” Más información sobre la suscripción a Scribd To provide GM with a second chance and rehabilitate it in the eyes of the potential clientele, Barra must ensure that the company’s employees share her vision of GM and understand its new core-values statement: customer comes first (Bumpy Ride). THE GM CULTURE CRISIS 4 culture has led to the success of many companies currently. After a $49.5 billion government bailout, GM has a better balance sheet but a busted culture. Moreover, this feature of General Motors’ corporate culture extends to accountability of managers regarding the effects of the automotive business on its stakeholders. General Motors Corporation (NYSE:GM), the world’s largest automaker was founded in 1908 in Flint, Michigan of US. The value of corporate culture. Nonetheless, other factors are involved in determining the actual performance of GM’s business and its effectiveness in addressing internal problems and external challenges. Introduction. Innovation is a key success factor in the business because of the rapid rate of innovation in the automotive industry. Organizational structure works within an organizational culture, but it is not completely separate. Organizational Structure Of General Motors 877 Words | 4 Pages. Introduction General Motors Corporation is the world's largest automaker company founded in 1908 which employs about 326,999 people around the world with its headquarters in Detroit, Michigan, USA. ORGANIZATIONAL BEHAVIOUR PREVAILING IN GENERAL MOTORS. As can be seen, Barra became an effective manager because she was able to transform organizational culture, managing crisis by improving communication and transparency. With a major position in the global automotive industry, General Motors must maintain an optimized organizational culture that supports business growth and development. IvyPanda, 6 Oct. 2020, ivypanda.com/essays/general-motors-company-organizational-culture-and-strengths/. Another advantage of General Motors’ corporate culture is that it facilitates innovation. Such creativity can contribute to the company’s competitive advantage based on solutions and products. IvyPanda. ORGANIZATIONAL CHANGE(GENERAL MOTOR) Case Study Solution. Speed is essential in addressing opportunities and threats relevant to GM and the automotive industry environment (Read: PESTEL/PESTLE Analysis of General Motors Company). "General Motors Company: Organizational Culture and Strengths." IvyPanda. Innovation and Emphasis on Quality. The following characteristics are notable in General Motors’ organizational culture: Freedom and Opportunity to Grow, Learn and Evolve. Shifting the focus from horsepower and sporty design that was valued by the previous CEO, Bob Lutz, Barra demonstrated engineers that customer-oriented view was needed to make GM “product czars” again (Barra CEO, p. 2). In this regard, innovation and quality are aligned with General Motors’ generic strategy and intensive growth strategies. This characteristic of the organizational culture pertains to the internal and external relationships involving the automotive business. 301 certified writers online General Motors Company has an organizational culture of agility. By improving communication among employees, Bara has created a buffer for future crises that could potentially prevent them. Although this crisis severely affected GM, Barra found a way to transform the issue into change, introducing new policy “if you see something, say something” (Day, p. 2). abcd. It’s a place no CEO wants to be. Barra’s decision to focus on separate markets and countries seems to be more reasonable, considering the recent crisis and former bankruptcy of the company. Focus on its organizational culture allows General Motors to fulfill its goals and objectives for addressing business performance challenges and issues. The database is updated daily, so anyone can easily find a relevant essay example. With this feature of the corporate culture, employees are encouraged to go beyond standards to boost business performance. An Analysis of the Organizational Behavior of General Motors. professional specifically for you? She asked engineers to visit a store and see the products as customers see them (Barra CEO). Your privacy is extremely important to us. This type of organizational structure involves grouping business activities according to geographical segments or areas of operations. For example, responsibility motivates GM workers to take necessary action to address problems they encounter on the job. Thus, General Motors benefits from a corporate culture of agility that suits its current business needs and environment. General Motors’ approach to developing its organizational culture involves freedom and opportunity for employees to address their career development goals. ⏰ Let's see if we can help you! 2.1 ’ ’ G ENERAL M OTORS’ H ISTORY ’ 4 ’ 2.2 ’ ’ T HE’ C HALLENGES’OF’ C ULTURE’ C HANGE ’ 4 ’ As GM has already let down its customers, Barra’s emphasis on customer and customer-oriented culture is understandable. The overall effect of this attribute of the corporate culture is that it promotes mutually beneficial relations between General Motors and its stakeholders. IvyPanda. She has been successful in order to create the components of the team’s towards the new and innovative technology along with the advanced vehicles. Copyright by Panmore Institute - All rights reserved. The two are very much intertwined. (2020, October 6). The approach of Barra for the leadership as it has been explained above and mainly inclusive. Her experience in holding different positions, from a manager of a plant to an HR director, supported her strive for transparency as she was aware of inner issues that were not resolved at GM for years. On the other hand, accountability links outcomes and consequences to General Motors’ human resources, thereby facilitating problem-solving processes. Combat advertising fraud pertains to the outgrowths and continuous re-organizational design innovation through characteristic. Have a more positive effect on firm performance company ’ s global economy Motors that... 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