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headquarters are in Detroit, General Motors has manpower of 204,000 employees and has business across 140 countries. Genral Motors with its strategic alliances makes cars and trucks in thrty four countries and thy sell their brands with names such as Vauxhall, Wuling, Chevrolet, GM Daewoo, Buick, Holden, Opel, Vauxhall and Wuling. GM has the largest market share in the United States with other countries such as China, Italy, Brazil, Canada and United Kingdom KingdoM its OnStar subsidiary is a leader in security, vehicle safety and information sevices. On July 10, 2009 General Motors Corporation acquired operation from General Motors SOME CHANGES WITHIN THE COMPANY FEW YEARS BACK Traditional organization models has a hierarchical structure with an executive at the top, including managers, president then layers of management below it and at the bottom a large number of employees mostly duties in traditional organisation are grouped by function into department this was in the case at General Motors. (Jex, 2002) General Motors was grouped into different independent automakers. Every single automaker was operated differently and competing among other. There was a lack of centralisation which was very costly and competition within its automakers (Taylor, 2004) The transformed organizational model is integrated and centralized a team against its employees striving towards common goals transformed organizational model corporations run in a smoothly way and it is cost effective . A transformed organizational model does not consists of various departments, all performing different tasks. (Jex, 2002) Jack Smith, General Motors's CEO, saw an opportunity for change, "I had the opportunity to really structure the business in the way I thought it should run -- Frankly, at the time we weren't like any other auto company in the world" (Taylor, 2004). The diverse workforce at General Motors. All the employees and management at General Motors had to acquire skills and more importantly General Motors had a diverse workforce. All the employees had to learn software programmes including the global offices but in the end communication was more productive and easier! General Motors engineers also centralized and learnt technique of design and engineering among each other Staff needed to learn to communicate and work as a team not as individuals completing a particular piece of the puzzle. (Taylor, 2004) To make sure that the changes have been implemented properly General Motors had to put systems in practise. A management committee was set up in order communicate the ongoing changes to the CEO within the organisation meetings were held monthly through means of technology such as phone and video conferencing the global offices also participated in the meetings. The heads of regional departments would make use of the meetings to communicate the CEO about the transformation within the organisation. Meetings helped all the staff to work constantly to achieve the organisational goals; another characteristic of the transformed organizational model. (Taylor, 2004)
General Motors is a large corporation and when this transition took place several groups of people were affected. Two of the external stakeholders that were affected were customers and local communities were General Motors's factories were built. Some of General Motors's vehicle brands were discontinued making upgrading or servicing particular vehicle models difficult for customers. Customers are traditional loyal to particular brands so when those brands are no longer available they look for something new; this caused General Motors to lose some of their customer base. (Taylor, 2004). General Motors's had put into practise the transformed organizational model which could be both positive and negative change. The negative changes that took place within the company were job redundancy, closure of business employees losing their homes, communities had to go through a worst phase and some of the positive changes that took place were General Motors became one corporation working together; the costs were reduced because of the reorganisation of operations and functions. In order to survive in a globalise and competitive market change has to take place, the impact could be both positive and negative therefore it is important to scan the environment and put systems and process in practise however in the end people are one step closer to learning something new and knowledge is power! References Jex, S M. (2002). Organizational Psychology: A scientific practitioner approach. , New Jersey: John Wiley & Sons, Inc... Taylor III, A. (2004, April 5). "GM gets its act together: How America's No. 1 car company changed its ways and started looking like...Toyota." Fortune, 149, 136-146 CHANGE MANAGEMENT A) Explore the background to the changes affecting GM and the car industry? Since the establishment of the industrial revolution the automotive industry has played a vital role as the economy was growing throughout the globe. The automotive industry possesses bigger challenges as the industry undergoes basic changes. General Motors Corporation is a part of the automobile industry. In terms of production of motor vehicles the U.S. is one of the leading producers and has large number of consumer. Since 1931 General Motors has been one of the major worldwide suppliers and largest company in the automobile industry. The company has a manpower of 2, 84,000 employees. According to NADA, the total revenue of General Motors was 207.349 billion and its net income was $1.978 billion in the year 2006 The macroeconomic factors that are affecting the automobile industry and the General Motors which includes recession, technology, policies and prices of automobile manufacturers, weather conditions gross domestic products (GDP), automobile manufacturer’s policies and prices, weather peak and recessions. • Gross domestic product-: It includes the services and goods created by resources such as overseas supplied or citizen supplied which are in use within the country. The automobile manufacturing industry has played a pivotal role in the U.S. economy and is one of the major industries in the U.S.
which has significantly contributed in terms of productivity and employment According to the reports the figure indicates that production of the motor vehicle production has contributed 5% of the U.S. private sector GDP. To sustain its business automotive industries such as General Motors has to create profits General Motors. GDP is the tools being used by the company in order to sell their products. • Manufacturer’s policies and prices-: Its programme includes such as incentive, rebates and manufacturers suggested retail price (MSRP). These procedures assist car dealers to create a functioning environment for their company. The procedures of manufacturers has an impact on dealership because the programmes decides the costs of vehicles which is accepted on to the clients it is not possible for the dealer to sell cars at full price therefore various plans are offered as stated above Recession and Weather peaks-: These factors can affect the car industry in several ways because the highest number of cars is sold in summer and spring. During the summer and spring season the index rises to 141% from the breakdown incurred during the winter and the fall of month
Telecommunications and technology-: To operate on a wider scale the company has stimulated to a Global Manufacturing System (GMS). The GMS stress the significance of communicating to help prop up domestic growth and to accomplish excellent business results. Technology and telecommunications policies and prices of the manufacturers are the major macroeconomic factor that has an impact on the automotive industry. Easy access to technology and communication has played a major role in the growth of business. E –Commerce techniques are used by the auto makers to restock their inventories and to control their supply chains. With the use of better and advanced technologies General Motors is able to produce vehicles with improved fuel economy and cleaner emissions. The internet has a great influence on the manufacturers and the consumers because it is been used by the manufacturers to sell its products whereas the consumers access the Internet to become well versed before buying a good or service In order to sell cars website is widely used by the car companies which could be used as a promotional tool to advertise its products and make sales. Technology to communicate will help the company to grow at a global scale. General Motors is exactly doing that it is a key player in China's growing automotive market and consists 8.6 per cent of china's passenger car market. In China General Motors employs more than 38,000 employees and has two wholly owned subsidies and three joint ventures. The triumph in China market proves that General Motors has a strategy to expand globally. The major challenge General Motors has to respond is to do extremely well over the competition and to sustain the achievement at national and international level. The year 2005, General Motors amazed the auto world by losing $10.4 billion and get on a restructuring plan which included closure of plants and many more jobs were made redundant. The various factors that can affect the sales of automobiles include national and international factors, incentives and pricing. Calamities such as earthquakes, floods, interest rates, inflation, oil prices, and closure of plants could directly impact the car
industry. General Motors has good opportunities to invest billion of dollars in the Canadian market to increase the sales of General Motors vehicles. The auto trade of U.S. depends on its own national market, and to a certain extent on the Canadian market. The U.S. vehicle exports have biggest market in the Canada. General Motors has significantly enhanced the eminence of dealership prospects and the selection procedure to categorise new dealerships has been consistent and other factors such as demographics, investments, location, size location, demographics, complexity of operations and investment are taken into consideration while corresponding candidates to dealerships. General Motors put emphasises on four main objectives and it includes lean manufacturing, growth, globalisation and general practices wherever feasible. In conclusion, the global car industry is multifaceted and is both flat and vertically diverse and the three major manufacturers in the car industry are American, Japanese and European the automobile industry has also experienced manufacturers from the Latin countries, Korea and China there are manufacturers that targets niche markets, focus on specialisation and the one who produces mass volume adding to it there are also other factors that includes production, supplies and changing regulation of car industry. The automobile industries are directly affected by the macro economic variables. General Motors the major automobile manufacturer has used some of this variable to help the company to grow and succeed. Source: www.gotessays.com B) Evaluate the strengths and weaknesses of the company existing organisational structure. Discuss the strengths and weaknesses of bureaucracy? The strengths and weaknesses of bureaucracy are embedded to the rise of conflicting theories on bureaucracy persisting in the present leading to the advancement of the concept into different meanings. The most prominent challenger and supporter of bureaucracy are Max Weber and Karl Marx respectively. The theories propounded by this philosopher influenced the progress of various opposing opinions on bureaucracy. Max Weber offered an optimistic viewpoint of bureaucracy through his model description of the managerial system as a logical and well-organized type of organization. These features are accomplished through the application of determined administration, levelling of social and economic differences, and logical rule of authority. According to the Weber’s viewpoint a bureaucratic organization are based on various principles. First it is carried out on constant base and other on official business. Second is the manner of authorized business in stringent manner accordance with the responsibility of every associate, selected through aloof criteria to execute chosen tasks matters to stringent regulations of practice. Third is the organization taking place into a vertical chain of command to be administered by the rights to appeal and command? Fourth is the non-ownership of resources required in executing tasks but with responsibility for the mode of resource use?. Fifth is the stiff division of authorized, earnings and individual interests. Sixth is the non-appropriation of location or workplace. Seventh is certification of every authorized company. (1980) By sticking to these principles, the business expects to attain logical and structural consistency due to the description of position and allocation of responsibilities. Every employee knows his contribution and his position therefore all the managers have to do is organize the specific tasks to accomplish a combined organizational production.
Due to observance to the stringent policy on practical rules, code of conduct, position qualifications, the company accomplish effectiveness in the upward and downward well as the parallel flow of information within the company so it states that decision from the leadership flows downwards to the staff and various department and through the hierarchy the response is sent upwards ( 1994) Weaknesses of Bureaucracy Even though Weber highlighted an optimistic image of bureaucracy, he also acknowledged that these principles might be a question to cruelty. Karl Marx lighted up the weaknesses of bureaucracy these weaknesses are demonstrated through four organisational actions. First is the religious conviction, mainly the Catholic Church. According to Marx the clergies and scribes involve the allocation of definite responsibilities. The members of church leadership presume and limit their responsibilities based on their hierarchy it further leads to bias and less opportunity for development of a person because an associate of the church has to stand by stringent procedure and regulations. Second is the bureaucracy in the government that can be developed through the division of state and church. Domination in a culture effected to cruelty of supremacy of the top leadership followed by favouritism, internal strife in politics and fraudulent activities. The most horrible case of bureaucratic cruelty even resulted to the loss and dislocation of inhabitant owing to the high deliberation of resources and power and resources to the top leadership. Bureaucracy because this created class and economic power schisms domestically and in international relations. The world was divided into developed, developing and underdeveloped countries with the corresponding exploitative relations that sipped through to domestic governance. Fourth is the technological consequence of mass production, where labour became automated and a high premium was given to technological skills resulting to the term technocracy? (1979) these bureaucratic systems show how bureaucracy becomes a cost and burden to society. Conclusion Bureaucracy remains an important administrative system despite criticisms. Weber and Marx both recognize the ideal benefits of bureaucracy and its pitfalls in actual application. The direction of efforts should then be to establish ways of preventing abuse so that organizations can at least approximate the ideal benefits of the system Traditional organization models consist of a hierarchical structure with a president or executive at the top, followed by vice presidents or senior managers, then additional layers of management below, and with the majority of the employees on the bottom. Jobs in traditional organizational models are grouped by function into departments; this was the case at General Motors. (Jex, 2002) GM was divided into different independent automakers; Buick, Cadillac, Oldsmobile, Chevrolet, and Pontiac. Each independent automaker was operated differently and competing with each other. The competition among its own independent automakers and lack of centralization was costly! (Taylor, 2004) The transformed organizational model is centralized and unified; a team versus several individuals working towards common goals. With a transformed
organizational model corporations are run in a more streamlined manner and that is a more cost effective manner of running a corporation. A transformed organizational model does not have several departments, all performing different tasks and with different needs. (Jex, 2002) Jack Smith, General Motors's CEO, saw an opportunity for change, "I had the opportunity to really structure the business in the way I thought it should run -- Frankly, at the time we weren't like any other auto company in the world" (Taylor, 2004). The diverse workforce at General Motors. The staff, including management, at General Motors had to learn a central set of skills; for example, each independent auto maker was using different computer software causing inter-corporation communication to be difficult and sometimes impossible. The staff at General Motors all had to learn a central software program; this included all General Motors global offices as well. This was a large undertaking but in the end communication was more productive and easier! General Motors engineers also had to centralize and learn each other's methods of design and engineering. Staff needed to learn to communicate and work as a team not as individuals completing a particular piece of the puzzle. (Taylor, 2004) General Motors had to put support systems in place to assure the changes were successfully implemented. The Automotive Strategy Board, a management committee, was established to keep General Motors's CEO informed of the on goings of the corporation. Monthly meetings were established and attendance was mandatory; global offices attended these meeting via phone. All the heads of regional operations would utilize these meetings to inform the CEO of the progress of the transformation. These meetings enabled all the staff to be on the same page and working towards the same goals; another attribute of the transformed organizational model. (Taylor, 2004) General Motors is a large corporation and when this transition took place several groups of people were affected. Two of the external stakeholders that were affected were customers and local communities were General Motors's factories were built. Some of General Motors's vehicle brands were discontinued making upgrading or servicing particular vehicle models difficult for customers. Customers are traditional loyal to particular brands so when those brands are no longer available they look for something new; this caused General Motors to lose some of their customer base. (Taylor, 2004). Many communities build and grow around large employers; during this transition some of General Motor's factories were closed in order to streamline production. When large corporations in towns close their factories, entities such as, restaurants, gas stations, the real-estate market, and grocery stores suffer financially. Therefore, this causes a downturn in the community's financial well-belling; everything from property taxes to sales tax suffers. This type of financial suffering causes a chain reaction in the community; less money coming into the community causes unemployment, large budget cuts, and police and fire departments are downsized. When this type of downsizing occurs people tend to move out of the town causing the cycle to start over. (Taylor, 2004) General Motors's transition from the traditional organizational model to the transformed organizational model caused positive and negative change. Some communities suffered horribly during this transformation; families losing jobs, people losing their home, businesses having to close or downsize, and towns having to
rethink their existence. Some of the positive changes that occurred were; General Motors became one corporation working together, operational costs decreased due to streamlining functions and operations, and effective communication methods were established. In order to make progress change has to occur, in some cases change is positive and in others negative, but in the end people are one step closer to learning something new and knowledge is power! References Jex, S M. (2002). Organizational Psychology: A scientific practitioner approach. , New Jersey: John Wiley & Sons, Inc... Taylor III, A. (2004, April 5). "GM gets its act together: How America's No. 1 car company changed its ways and started looking like...Toyota." Fortune, 149, 136-146. GENERAL MOTORS ORGANISATIONAL STRUCTURE Product or market organisation structure-: It is referred to as organisation by divisions, brings together in one work unit all those involved in the production and marketing of a product all those in a certain geographic area or all those dealing with a certain type of customer. Most large multi product companies such as general motors have a product or market organisational structure in an organisation existence sheer size and diversity of product make functional department too unwieldy. When a company departmentalization becomes too complex for coordinating the functional structure top management will create semiautonomous division. In each division management and employee design produce and market their own product http://www.docstoc.com/docs/1021276/TYPES-of-ORGANIZATIONALSTRUCTURES/ Organisation by division has several advantages ADVANTAGES-: high work performance maintained, the burden on central management is eased because divisional managers have greater latitude to act, the performance of divisional management can be measured by in terms of the division profit or loss Organisation by division has several disadvantages Disadvantages-: administrative expenses increase because each division has its own staff members and specialist leading to costly duplication of skills, the divisions may be placed ahead of the goals for total organisation CURRENT STUCTURE • Multi divisional structure • Centralisation of key process • Regions represent strategic business units Minimal links to identical brands in different region Brands are a subdivision of the SBU with minimum control over processes
PROBLEMS WITH CURRENT STRUCTURE Vertically integrated therefore lack of communication between employees from top to bottom Structure focuses on cost reduction Direct conflict with the intended integrated differentiation/ cost leadership strategy Regional strategic business units do not have control over their regions Brand level management is almost inexistent at the strategic business unit’s level which results in lack of differentiation http://www.slideshare.net/andreaberga/general-motors-case-analysis Proposed solution • • • • The company should adopt organic form of structure rather than performing in a highly bureaucratic structure The organic structure has an approach to keep the employees and their schedule redefining Motivate employees and to make them feel and involve in the organisational activities The centralised structure should be transformed in decentralized manner so there would be easy flow of communication Cross functional team To gain competitive advantage in a globalise world Cross functional team plays a vital role. • It needs training and preparation to build up the characteristics • They are involved in designing the product and development process • Innovation and creativity could foster within organizations by interaction of employees particularly within teams and networks • Integration, performance expectation and functional diversity are the attributes of cross functional teams General Motors should cultivate cross functional team within the organisation which could foster innovation, amalgamation of redesign and reengineering, problem solving and development of new products and services Critical analysis of organic structure at General Motors • • • By putting this approach into practise the management could respond more quickly to the changing environment moreover employees can gain dedication and work more passionately Continuously keep on motivating the employees Emergency problems would be solved and leads to better performance.
Hyde, A. (1992). The Proverbs of Total Quality Management: Recharging the Path to Quality Improvement in the Public Sector. Public Productivity and Management Review, 10, 195-213.
COGNITIVE MODEL FOR ORGANISATIONAL DEVELOPMENT This model could be used to reorganise the strengths and weakness of structure of the organisation. As the organisational structure of the General motors mentioned above states that the company has a multi divisional structure majority of the decisions are influenced by higher authorities. So cognitive model could be used as a tool to assist the company for organisational development. Implementation of effective strategy: For an effective implementation of strategy all the employees within the organisation has to work in teams effectively to produce better results and in turn the company should guarantee job security Changes during uncertainty: Proper decisions should be undertaken by the company to face the consequences of change and more importantly it should be looking for innovation and creativity (thinking outside the box) Qualitative strategic decisions: A proper feedback should be given by the professional regarding the consequences faced by the organisation and employees should always looking for learning opportunities from the feedback gained Decisions made in different environment: Strategic decision should be made accordingly to survive and thrive in a global competitive environment as the automobile industry is changing rapidly SWOT ANALYSIS FOR GENERAL MOTORS STRENGHTS-: The strengths of general motors are as follow • • High market share • Innovation in plant and equipment Weaknesses-: the weaknesses of general motors are as follows • • • • Reputation has lowered High cost structure Poor relations with employees Ineffective marketing strategy
Opportunities-: the opportunities for the company are as follows • • • • Merger or takeover Strategic alliances and joint ventures Knowledge of the existing employees Support from the government
Threats-: The threats to the company are as follow
• • •
Financial slowdown Unions Products going through decline stage
http://www.wikiswot.com/SWOT/4_User_Generated/General_Motors.html What is BPR? And how would it help General motors It is a system by which organisation by which organisation modernizes itself and becomes resourceful leading to performance. If General Motors needs to perform it has to implement BPR which could be helped to achieve changes in performance. General Motors performance transmits competitive advantage and internal competencies. Competitive advantage consists of working and updating customer’s knowledge relating all the products and services whereas internal competencies could be accomplished by probing how business could be managed by formal communication and any difficulties Alternative process and critical analysis against General Motors BPR differs from first order change and has a radical approach more so ever it has modernized concept and challenges new thinking and adding to it is performance oriented and has a transformational process within a short period of time therefore it is a second order change. BPR would be more applicable to General Motors because the company does not need incremental strategy it demands fundamental strategy and radical changes in the organisation General motors is based on a hierarchical bureaucratic structure where authority is centralized at the top with a multifaceted structure which could lead to lack of motivation of employee therefore an organic structure could be more suitable for the organisation because the business environment is changing constantly and communication at General Motors will be decentralized because of this authority will have more freedom to take decisions therefore they don’t have to depend on higher authorities. General motors is making losses in terms of unwanted stocks and high costs are incurred in manufacturing units therefore an appropriate system should be adopted to target the customers and understand their behaviour to provide a high quality and valuable service so that their needs could be met and the company could a competitive edge in the automobile industry So when considering the above factors it is vital that General motors consider in implementing new and effective systems in order to grow the organization as a cash cow and to shift from its present situation. As the first step or as a recommendation I would like to propose that the company should consider due to high costs in production to “Out source” the production activities. This will also help General Motors to benefit due to less cost and also new technology would help them to come out with high quality and innovative products which will enhance their brand equity and help gain high profits as well.
What is BPR? And how would it help General motors It is a system by which organisation by which organisation modernizes itself and becomes resourceful leading to performance. If General Motors needs to perform it has to implement BPR which could be helped to achieve changes in performance. General Motors performance transmits competitive advantage and internal competencies. Competitive advantage consists of working and updating customer’s knowledge relating all the products and services whereas internal competencies could be accomplished by probing how business could be managed by formal communication and any difficulties Alternative process and critical analysis against General Motors BPR differs from first order change and has a radical approach more so ever it has modernized concept and challenges new thinking and adding to it is performance oriented and has a transformational process within a short period of time therefore it is a second order change. BPR would be more applicable to General Motors because the company does not need incremental strategy it demands fundamental strategy and radical changes in the organisation General motors’ is based on a hierarchical bureaucratic structure where authority is centralized at the top with a multifaceted structure which could lead to lack of motivation of employee therefore an organic structure could be more suitable for the organisation because the business environment is changing constantly and communication at General Motors will be decentralized because of this authority will have more freedom to take decisions therefore they don’t have to depend on higher authorities. General motors’ is making losses in terms of unwanted stocks and high costs are incurred in manufacturing units therefore an appropriate system should be adopted to target the customers and understand their behaviour to provide a high quality and valuable service so that their needs could be met and the company could a competitive edge in the automobile industry because of high costs involved in production company should outsource its work so that it could lead to less costs in making products and in turn higher profits. General motors should implement JUST IN TIME by developing good networking skills with the supply chain which could help to reduce unwanted and inventory cost
PROPSED CHANGE FRAMEWORK FOR GENERAL MOTORS
Large Scale Transformational
Level: The Organisation Focus: Culture Approach: Emergent change
Level: The Organisation Focus: Structure & Procedures Approach: Bold Stroke Rapid change Turbulent environment
Stable environment Slow change
Level: Individual/ group Focus: Attitudes/ behaviour Approach: Planned change
Level: Individual/ group Focus: Tasks & Procedures Approach: Tayloristc or kaizen
Small scale Incremental
(Source: Burns p 308 Figure 8.4)
In order to execute second order change process it is vital that General Motors
should use effective and state of the art strategies which would be beneficial in betterment of the organization. As General Motors is driving out with out without process objective and vision so as to overcome their direction problems it should implement Business Process Reengineering as a part of their strategy General Motors should develop objectives and a suitable business vision in an environment they are operating it is important to analyse the errors so that accordingly the present business process could be redesigned and particularly when taking General Motors into consideration the errors should be analysed because it has a hierarchical structure where communication is top bottom (centralized) Comparing Kaizen with BPR By executing Kaizen with BPR it will help to bring minute changes at General Motors which could add to efficiency and good quality Kaizen operates at an individual level and it could be an important tool in decentralized communication at General Motors and in developing team work.
• • • • • •
The implementation of Kaizen could be beneficial in many ways such as to empower employees Elimination of wastages and low manufacturing costs, The organisation could be transformed into superior global competitors It could foster innovation and creativity in organisation It will lead to improvement within all the units of business All the employees are motivated to develop a pattern of looking for improvement opportunities and hence involvement of the employee in the event. The whole team takes ownership of the improvement process, and individual employees begin to see themselves as a team General Motors stakeholder analysis
General motor is making changes and transforming itself to be a global leader in the automobile industry. The stakeholder analysis helps us to understand the impact on organisation and its stakeholders as general Motors has a bureaucratic structure the major changes should take place from the top of the organisation as the interests of executives at top level management matters a lot for the changes taking place in the organisation so that could respond to the changes easily same with the middle level management and the lower level management so that they could take interest and work enthusiastically to strive towards organisational goals it is due to changes taking place in the organisation so it indicates the interest of lower level management is vital because they are the internal stakeholders of an organisation. While organisation responding to change customers impact should be taken into consideration and is very vital in the same manner with dealers and suppliers Communication: Communication plays a vital role therefore all the stakeholders should be communicated clearly and in an effective manner about the implementation of change management within the organisation communication could be done conversation, arranging meetings with proper use of technologies • • • • • To give them proper feedback Good leadership qualities to assure and convince them by working in teams to to achieve performance Allocation of jobs such as specific role should be given to the head of department so that they could communicate with their team members within the group To get them involved and strategies should be communicated effectively to all the stakeholders A proper human resource management should be designed to motivate employees and give them proper training regarding the changes taken place within the organisation
Marketing: Marketing strategies should be adopted to keep all the customers informed • • • • • New product and marketing strategies should be implemented Human resources should recruit employees who has got the right knowledge, skills and abilities to work within the process The needs and standards should meet accordingly to the global market Customers should be retained by Human resource management. To attract new customers.
http://www.odi.org.uk/Rapid/Tools/Toolkits/images/stakeholder_grid.gif KEEP SATISFIED Customers: They have low interest and high power relating to any changes taken place within the organisation MONITOR Government: The local government has to play a minimum role and the level of interest and power is also low MANAGEMENT Manage closely: The management has the highest power and interest which can play a major role to initiate change in an organisation KEEP INFORMED
Competitors and Suppliers: They have high interest and low power if any changes made with the organisation they need to be informed APPPROPRIATE MODEL FOR ORGANISATIONAL DEVELOPMENT THE SIX BOX ORGANISATIONAL MODEL This model was first developed by Marvin Weisberg it could be used as diagnostic tool in General Motors for the changes within the organisation and it is made up of six variables which could be applicable for the organisation. As the organisation is based on a bureaucratic structure we would implement the principles and reorganise the structure the six-box organisational model consists of following elements • • • • • • Purpose Rewards Relationship Helpful mechanism Leadership Structure
This model can be applied to General Motors because the company existing structure is bureaucratic and centralised therefore employees are the assets for organisation. So, the model states that company can provide incentive to the employees for performance and in the competitive world companies are trying to imitate its strategies, rewards and relationship are an important part of organisation and considered the most important within the model so mission and vision of the company has its own importance within the organisation. Leadership and structure are the important ingredients of model while being a multi divisional structure we could see multi layers in the organisation therefore restructuring of organisation is vital and there could be various issue raised in the organisation whereas an improper structure could lead to many problems therefore company has to take actions to happen so. General Motors has relationship within and outside the organisation because it is an integrated system of an organisation.
CONCLUSION Due to growing competition and demand in the global world General Motors has to go through drastic management change and implement second order change to survive in the market therefore needs to put into practice process management, JIT, Kaizan approach to meet the changing need of customers. Secondly the company should develop feedback and provide motivation to employees so that could strive towards organisational goals and work enthusiastically by implementing the process would assist the company to grow and survive in a highly competitive market
Bibliography -: Jex, S M. (2002). Organizational Psychology: A scientific practitioner approach. , New Jersey: John Wiley & Sons, Inc... Taylor III, A. (2004, April 5). "GM gets its act together: How America's No. 1 car company changed its ways and started looking like...Toyota." Fortune, 149, 136-146 Hyde, A. (1992). The Proverbs of Total Quality Management: Recharging the Path to Quality Improvement in the Public Sector. Public Productivity and Management Review, 10, 195-213. WEBSITES: http://www.odi.org.uk/Rapid/Tools/Toolkits/images/stakeholder_grid.gif http://www.slideshare.net/andreaberga/general-motors-case-analysis http://www.docstoc.com/docs/1021276/TYPES-of-ORGANIZATIONALSTRUCTURES/ www.gotessays.com http://ivythesis.typepad.com
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