organizational discussion

3/21/2022

The GM Culture Crisis

I. Introduction

From the case study, General Motors (GM) is a company characterized as lacking in culture and leadership for a number of years. In this case study, General Motors is described as being in the midst of a painful cultural crisis. The key characteristics that have been identified as inherent in GM's behavior are a lack of accountability, emphasis on cost-cutting, a refusal to address issues, a lack of urgency, and conflicting messages from management.

The case study made no mention of any positives, but it did detail a slew of flaws, as we've already seen. Only because of the independent inquiry into the ignition switch recall situation would GM even contemplate making adjustments. "At least 13 fatalities (Kuppler, 2014)" have been attributed to this malfunctioning switch. Researching legal cases, conducting committees, and assigning engineers to junkyards, the Valukas Report delved into great depth. Consequently, a strength that may be attributed to this report is the willingness to acknowledge the existence of a problem in the first place.

II. Organizational Modeling

Organizationally, the Autocratic Model is used in The General Motors Culture Crisis, Whatever Leaders Can Gain from This specific Culture Case Study. They had little authority of their own, were reliant on their immediate supervisor for decisions, and were required to adhere to business norms without question. As a consequence, workers delivered just the least performance. Previously, the company had taken a top-down approach to do things. The Valukas Report provided concrete instances of General Motors' culture and the reasons it contributed to the catastrophe. Employees were apprehensive about bringing up problems or expressing concerns. There was also the "GM Salute, someone would cross their arms and gesture to someone else to indicate that the other person was in charge. When a plan of action was agreed upon, but no one followed through with it, this was referred to as the (GM Nod)" (Kuppler, 2014). Committee after the committee was formed in an attempt to identify answers, but no one individual was able to make the ultimate choice. When it came to senior management, there were frequent contradicting signals, such as that cost-reducing was a high priority, but then that safety was the most important issue, no matter what the cost. Furthermore, there was little feeling of urgency shown. Known concerns were identified. However, they were never addressed.

Toyota, on the other hand, is a comparable firm. Toyota employs a Supportive Model of leadership, which includes encouragement, involvement, motivating individual accomplishment, and recognizing employees. Toyota is regarded as one of the best businesses to work for in the United States because the company recognizes that diversity and a high ethical standard are essential to success. "Knowing that various individuals have diverse skills and abilities has benefitted the person by allowing them to use as many available talents in one area, hence increasing the chance for development within the organization (Essays, 2018)." Employees at the organization are encouraged to innovate, act with integrity, and take on social responsibility.

In terms of size, Hyundai Heavy Industries is one of the biggest shipbuilding businesses in the world. Its name, which translates as "modern," refers to its location in South Korea. “In 2014, the corporation used a performance-based compensation system for the first time” (Ji-won, 2014). This is more in accordance with the supportive approach, which emphasizes incentives to improve work performance.

After the crisis and the Valukas Report, GM's organizational model remained unchanged because it had never been pressed to do so. Toyota, for example, had to figure out how to stay competitive in the business while still attracting personnel who would contribute to its growth. In order to meet the more complex demands of a society as it moves up Maslow's hierarchy of needs, new organizational models are being created. Being able to adapt your business model to the changing times is essential to your company's development and success.

For today's enterprises, the concept of globalization is increasingly relevant. As the global economy expands, firms need to diversify to compete in various markets. By "diversification," we mean reaching out to a wider range of viewpoints and goals than ever before. Employees are looking for firms where they feel appreciated, and the traditional models are becoming obsolete.

GM isn't the only one in its field. Ford also makes a vehicle like this. Due to their positions as market leaders, neither company has felt the need to make significant changes to their business. Using a top-down method, the corporate hierarchy maintains command over daily business activities. If a company of this magnitude wants to continue to be successful on a worldwide stage, it must strive to modify how it operates. It's possible that further tragedies like Flint, Michigan, will be repeated if they fail. These firms may collapse in cities and towns that rely on them for employment.

Organizational modeling changes have caused a shift in motivational models. Increasingly, businesses must arrange their operations around what their consumers value. If you want to acquire market share, adaptability gives you an edge. In the 1800s and early 1900s, models like the autocratic were acceptable. This model emphasized the authority of those in command, the submission of workers to their superiors' directives, and the low pay of those who worked under it. As a consequence, workers put in the barest minimum of effort.

Employers started to pay attention to employee relations in the 1930s. This concept placed greater emphasis on financial incentives and rewards. Employees remained because of the company's superior pay and growth opportunities, not because of the boss. New models like the collegial and system models began to emerge in the 1980s as the economy became more global. Newer models demonstrate many tendencies, including greater customer-emphasizing, more employee empowerment, a slimmer organizational structure, and greater agility. General Motors CEO Mary Barra took the helm on January 15, 2014. On May 29, 2014, the Valukas and Jenner report was released, which "ordered Anton R. Valukas to examine" the events leading up to the recall. These are the beginnings of an organizational shift away from an adversarial approach to one that is more helpful.

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