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DeterminingtheChange.docx

RUNNING HEAD: Determining the Change

DETERMINING THE CHANGE

Determining the Change

HRM 587: Managing Organizational Change

January 2021 Session, Week 5 Assignment

Ed Oshaben, Kyle Fuller, Amanda Urbina, Cedrick Greer, Jacob Gonzalez

February 6, 2021

Purpose-Kyle

Diagnostic Model

The 7-S framework first proposed by Waterman, et. al. (1980) was chosen as a diagnostic model for developing a better understanding of our subject organizations.

Tesla.

Structure

(Meyer, 2018)

· Centralized control

· 6 Functional offices

· Chairman/CEO

· Finance

· Technology

· Global Sales & Service

· Engineering

· Legal

· CEO has unusually high number of direct reports (Zetlin, 2018)

· “Flat” management structure

· 4 Regional divisions for financial reporting

· United States

· China

· Norway

· Other

· 2 Business Units

· Automotive

· Energy Generation & Storage

Strategy

(Hawkins, O’Kane, 2018)

· Over-automated its factories in Fremont and in Nevada

· Increase Model 3 production to 5,000/week to become profitable

· Invest in high-capacity battery cell production plants

· Added capacity by building semi-permanent tent structure outside Fremont plant

· End third-party contracts that were not delivering results

Systems

(Clifford, 2018)

· Stop having meetings

· Emphasize direct communication instead of chain-of-command

· Highly automated manufacturing

· Hard work ethic modeled by Elon Musk

Style

· CEO slept at the factory while working through “production hell”

· Director style

· Brutally honest criticism of his own organization’s weaknesses

Staff

· Expected to work a lot of hours

· Little room for advancement

· Employees motivated by the content of their work

· Senior executives hired from outside the company

Skills

· Innovative engineering

· First mover in EV design and manufacturing

Super-

ordinate goals

· Save the world by ending global dependence on fossil fuels as fast as possible

· Electric vehicles that don’t compromise on automotive style or performance

GM.

Structure

(Kissinger, 2018)

· Regional Divisional Organizational Structure

“Grouping business activities according to geographical segments or areas of operations (Kissinger, 2018).”

· Regional Segments

o GM North America (GMNA)

o GM Europe (GME)

o GM International Operations (GMIO)

o GM South America (GMSA)

· Business Type Divisions

o Automotive

o GM Financial

· Corporate Functional Groups

O Office of the CEO

o North America

o GM Financial

o Global Manufacturing

o Global Communications

o Cadillac

o South America

o Legal and Public Policy

o GM International

o Tax and Audit Services

o Information Technology

o Europe

o Global Human Resources

o Global Product Development

o Purchasing and Supply Chain

o Finance and Treasury

o Accounting Services

o GM China

Strategy

· “The technologies leading this transformation of personal mobility will be autonomous, electric, connected and shared (Our Strategy, n.d.).”

· Electric Vehicles (EV) and Autonomous Vehicles

o 20 Models by 2023

o Priced for Mainstream Consumers

· Mobility

o A World with Zero Congestion

· Safety

o Zero Crashes

o Zero Workplace Accidents

· Customers

o Gain Customers for Life

· Carbon

o A World with Zero Emissions

Systems

· Work together to make quality products.

· Monitoring and evaluating controls

· Integration between business process and information systems.

· No conflicts or dispute

Style

· Inclusive Leadership

· Meetings for New Projects and Ideas

· Encourages Employees to Express Opinions

· Supportive, Encouraging, and Organizational

Staff

· Specific Requirements for their Positions

· On-the-Job Training

· Diversity

· Paid Living Wage and Good Benefits

· Long Hours and Lots of Overtime

Skills

· Facilitates Innovation

· Organizational Culture

Superordinate Goals

· To Create a Future of Zero Crashes, Zero Emissions, and Zero Congestion.

· Sell Only Electric Vehicles by 2035

SWOT analysis - Cedrick due Sat.

Compare Analysis -Jacob

Areas of resistance-Cedrick

Recommendations-Kyle

References

Clifford, C. (Apr. 18, 2018). Elon Musk’s 6 productivity rules, including walk out of meetings that waste your time. [cnbc.com]. Retrieved from https://www.cnbc.com/2018/04/18/elon-musks-productivity-rules-according-to-tesla-email.html

Journalist reports on an email from Elon Musk instructing his employees to avoid meetings they don’t add value to, and to discontinue large and frequently occurring meetings at Tesla.

Debord, M. (2017). Elon Musk on Model 3: 'We're going to go through at least 6 months of production hell'. [businessinsider.com]. Retrieved from https://www.businessinsider.com/elon-musk-says-model-3-faces-production-hell-2017-7

DeBord, M. (2018). GM will stop building cars at 3 North American factories and cut its salaried workforce by 15% in 2019 as it shifts to electric and self-driving cars. [businessinsider.com]. Retrieved from https://www.businessinsider.com/gm-to-2018-11?utm_source=markets&utm_medium=ingest

Duhigg, C. (2018). Dr. Elon & Mr. Musk: Life Inside Tesla's Production Hell. [wired.com]. Retrieved from https://www.wired.com/story/elon-musk-tesla-life-inside-gigafactory/

General Motors. (2018). Proxy statement and notice of 2018 annual meeting of shareholders. Retrieved Mar. 8, 2020 from https://investor.gm.com/static-files/4d125c19-2bc1-41c9-bbf8-a6192d507208

Boudette, N. E. (2020, March 04). G.M. Lays Out Ambitions for Electric-Vehicle Lineup to Rival Tesla. Retrieved from https://www.nytimes.com/2020/03/04/business/gm-electric-vehicles.html

Ethics. (n.d.). Retrieved from https://www.gmsustainability.com/esg-management/ethics.html

Gibson, K. (2018). Tesla reorganization comes as top executives depart automaker. [cbsnews.com]. Retrieved from https://www.cbsnews.com/news/tesla-reorganization-comes-as-top-executives-depart-automaker/

Hawkins, A., O’Kane, S. (2018). Tesla built a giant tent to expand production of the Model 3. [theverge.com]. Retrieved from https://www.theverge.com/2018/6/22/17488372/tesla-model-3-production-tent-expand

Kissinger, D. (2018, September 08). General Motors' Organizational Structure for Flexibility in Regional Markets. Retrieved from http://panmore.com/general-motors-organizational-structure-flexibility-regional-markets

Lambert, F. (2020, June 26). New AAMC Report Confirms Growing Physician Shortage. Retrieved January 24, 2021, from https://www.aamc.org/news-insights/press-releases/new-aamc-report-confirms-growing-physician-shortage

Meyer, P. (Sep. 8, 2018). Tesla Inc.’s organizational structure & its characteristics (analysis). Panmore Institute. Retrieved from http://panmore.com/tesla-motors-inc-organizational-structure-characteristics-analysis

A high-level summary of the corporate hierarchy and the degree of centralized control at Tesla. According to their website, The Panmore Institute is “an online organization of authors from various disciplines, with particular interest in business management, leadership, and related areas.”

Tesla. (April, 2018). Tesla First Quarter 2018 Update. Retrieved from https://tesla-cdn.thron.com/static/8ZSX5X_TSLA_Update_Letter_2018-2Q_4ABIGE.pdf

Tesla. (July, 2018). Tesla Second Quarter 2018 Update. Retrieved from https://tesla-cdn.thron.com/static/8ZSX5X_TSLA_Update_Letter_2018-2Q_4ABIGE.pdf

Vincent, J. (2017). Tesla buys automated manufacturing firm as it struggles with production. [theverge.com]. Retrieved from https://www.theverge.com/2017/11/9/16627528/tesla-perbix-acquisition-automated-factory-machine-builds-machines

Waterman, R. H., Peters, T. J., & Phillips, J. R. (1980). Structure is not organization. Business Horizons, 23(3), 14-26. https://doi.org/10.1016/0007-6813(80)90027-0

This article proposed a new framework for understanding the underlying mechanisms that determined organizational effectiveness. They identified 7 characteristic elements of an organization, each of which is inter-related to another. They argue that organizational structure has been given too much emphasis without consideration for these other critical elements, which must also be carefully analyzed.

Zetlin, M. (Oct. 24, 2018). Tesla internal organization chart shows Elon Musk has an astonishing 29 direct reports. Nope, he still can't delegate. Inc. Retrieved from https://www.inc.com/minda-zetlin/tesla-organizational-chart-elon-musk-29-rep.html

Investigative journalists obtain an internal copy of the Tesla organizational chart that shows Elon Musk has 29 direct reports. The author explains the unusually high number of direct reports is the result of both firing and resignations of several senior executives. Musk claims that the chart was errant.