In this case, GM employed a traditional centralized structure with strong functional silos.

The
vignette that opened this chapter suggested that many organizations are now employing team-
based structures that cut across functions.
How might this approach have helped prevent some of the problems illustrated in this case?

Part I:
Definition:
1) Centralization
Refers to the degree to which decision making authority resides at the top of the organizational
chart as opposed to being distributed throughout lower levels (HRM_p.319)

2) Team-base structure:
An organizational structure in which the entire organization is made up of work teams

3) Cross-functional team
A work team composed of individuals from various functional specialties (PM_p. )

Part II:
Advantages of Cross functional team:
Engaged employees + build team spirit
Having team leaders

The first problem of GM is its departments work in silos in which people who worked on one
aspect of the cars rarely spoke to people who worked in other functional areas.

However, Cross-functional teamwork will naturally create a collaborative culture and improve
employee engagement, regardless of what department they are in.

When something goes wrong, the members will discuss and interact with each other to find out
the best solution. Every member in a cross functional team knows their strengths and also their
weaknesses.
Therefore, different departments can use their own expertise to support each other, as well as
learn from one another to expand their own skills and knowledge base

For example, if design employees of GM work and exchange ideas with the customer care
service department. They will collect negative feedback from customers and analyze them. After
that, they will be aware of the safety issues from those designs and fix them immediately before
it's too late
The second problem with GM’s structure was that it was not all clear who had decision making
authority for different decisions, and people at lower levels of the organization were reluctant to
take responsibility for problems or pass bad news up the organizational chart.

One of the benefits of a cross-functional team is having team leaders and different members can
try out in leadership roles to find out who is the best one.
The leader has authority to make the final decision, resolve conflicts among members, manage
time and be responsible for monitoring the performance and quality of each member's work to
ensure they don't make any mistakes.

Moreover, The team leader has to learn how to bring team members together that have different
processes, attitudes and work methods and empower them to work together towards a goal

Part III:
Disadvantages of traditional centralized structure:
• Lower-level managers are not as capable or experienced at making decisions as upper-level
managers.
• Lower-level managers do not want a say in decisions.
• Decisions are relatively minor.
• Organizations are facing a crisis or the risk of company failure.
• Effective implementation of company strategies depends on managers retaining say over what
happens. (PM_p.139)

Script:
 1)
In traditional centralized structure, most departments are not aware that their works also affect
other departments. It is also the first problem of GM that the structure created functional silos in
which people who worked on one aspect of the cars rarely spoke to people who worked in other
functional areas.

So, the approach of team based structure which cuts across functions eliminates those mistakes
by engaging employees and building a collaborative culture, regardless of what department they
are in.

When something goes wrong, the members will discuss and interact with each other to find out
the best solution. Every member in a cross functional team knows their strengths and also their
weaknesses.
Therefore, different departments can use their own expertise to support each other, as well as
learn from one another to expand their own skills and knowledge base

For example, the problem lied on the switch of the car, but the engineers of GM didn't remember
However, if they work and exchange ideas with the customer care service department. They will
collect negative feedback from customers and analyze them. After that, they will be aware of the
safety issues come from their designs and fix them immediately before it's too late

2)
The second problem with GM’s structure was that it was not all clear who had decision making
authority for different decisions, and people at lower levels of the organization were reluctant to
take responsibility for problems or pass bad news up the organizational chart.

=> Actually, the authority of making decisions does not belong to the lower level people, it
is in the hands of upper ones, those who cannot supervise all activities. Thus, when troubles
happen, they do not even know about it, so that problems are not solved. Moreover, lower
workers may know clearly about the mistake in the working process. Nevertheless, they do
not have any rights to make decisions

=> need to empower managers who not only interact with workers, but also have expertise and
diverse knowledge in different areas which other employees take in charge of.

=> Cross-functional teams are a better solution

Definition: Cross-functional team is a group of specialists, who not only have authority in
making decisions but also have expertise in their area.
The leaders, who specialize in many functions, have authority to make the final decision across
functions, it can resolve conflicts among members, manage time and be responsible for
monitoring the performance and quality of each member's work to ensure they don't make any
mistakes.