Organizational management plays a pivotal role in ensuring the success of any organization. Marshall (1992, p.36) defines organizational management as “An effective process of unique planning, organizing, controlling, and leading the main efforts of members as well as resources of an organization to achieve its main goals”. Business environment keeps on changing.
Thus, it requires a substantial organizational management. In this regard, organizations’ managers must be aggressive and capable of solving diverse problems that can occur in an organization. As Marshall (1992, p.25) posits, “planning is paramount for organizations to achieve their desired objectives…they should start by planning on a wide scale and then drilling down to work and employees in the organization”.
If they do this thoroughly, each worker in an organization will have a commotion list, which expounds on the workers’ needed contributions in achieving the objectives of the organization. However, different organizations have different approaches to organizational management. This is mainly because all approaches are dependent on experience and skill level of organizations’ members, nature of work within the organization, and organizational environment.
This paper will discuss the General Motors Company analyzing the chief changes that the company has implemented together with the corresponding problems addressed by the changes. In addition, it will also discuss the effectiveness of the changes made also going a step further to point out the possible new changes that the company needs to implement to remain competitive within the automotive industry and the potential benefits the company will accrue, as a result.
Changes implemented by General Motors
The General Motors Company is a multinational automotive company with its headquarters located in Detroit, Michigan. It is the second largest automaker in the world (Bertel, 2011, p.6). This company employs more than two hundred thousand people. It has business operations in approximately 157 countries all over the globe (Bertel, 2011, p.7).
For any organization to improve its efficiency, it has to make decisions on a daily basis using the most effective approach. The organization structure in this company is complex after having undergone many changes in a bid to improve the performance of this company. The changes implemented aim at increasing the company’s share in the automotive industry all over the globe. One of the remarkable changes implemented by this company is the change in its management structure.
The General Motors has recently embarked on measures to improve its efficiency by changing its leadership structure. A complete overhaul of the bureaucratic and severely bloated organizational culture of the company, more so on its executive positions, has occurred in recent years. For instance, in 2009, the company shook up human resource leadership by appointing a new chief to manage the department (Bertel, 2011, p.9).
The goals of streamlining leadership in GM were to put the best executives in effective positions. They would utilize their diverse perspectives and wide global experiences to improve the company’s efficiency to increase its revenue. Managers should have excellent interpersonal skills that will aid them in accessing valuable information, which in turn enables them to make effective decisions, devise strategies, and implement effective actions.
As Bertel (2011, p.11) astutely reckons, “management in an organization aims at optimum attainment of objectives and goals of the organization through other persons”. In this organization, you will find different categories of managers namely regional managers managing a region, divisional managers managing a division, and departmental managers managing various departments within a division.
The unique way in which employees, departments, divisions, and regions interact and link together, results from the effective management or organizational structure implemented in the organization. Consequently, the company has changed its management structure to achieve a maximum output.
Another change implemented in this company is downsizing. In a bid to reduce its operational costs, the company has implemented measures to reduce its massive workforce. In 2009, the company implemented a project to reduce its workforce by approximately four thousand people (Bertel, 2011, p.4). This aimed at reducing salaries and wages paid to the workers, thus, increasing output by eliminating redundant workers who were a liability to the company.
General Motors also changed its management committees in a bid to increase efficiency. For instance, in 2009, GM company replaced its “Automotive Production Board and ‘Automotive Strategy board’ with a new board made up of nine individuals know as the ‘Executive leadership committee” (Bertel, 2011, p.8).
Governmental actions have also occurred in the General Motors Corporation. In 2008, the company appealed to the US government for billions of dollars as a bailout to rescue it from bankruptcy. Governments give financial assistances in forms of loans to corporations deemed significant to the national economy.
As General Motors is of exceptional essence to the United States economy, its downfall can have detrimental effects on this economy. This has compelled the United States government to assist this company to prevent it from collapsing. In 2009, president Obama’s administration availed “approximately $17 billion to General Motors in a bid to rescue it from its financial whammy” (Bertel, 2011, p.15).
In addition, another change in the company is on the changed process. GM has implemented new production processes mainly incorporating automation processes. In 1990s, the company invested heavily in new machinery that aimed at automating manufacturing processes in the company.
The management implemented changes to develop new products by shoveling billions into the automation processes. The changed processes also involved coming up with new car models and brands that will satisfy a wide range of customers. With its operation spanning all over the globe, this company has to come up with different car models to cater for the diverse needs for its customers. This follows because customers come from different continents having distinct geographical conditions.
Problems addressed by the implemented changes
General Motors is not performing as expected and many critics have castigated this company for its failure in leadership. In a bid to eliminate this, executive restructuring, as suggested by members, was a remarkable approach. This change has aided in eliminating management crises in this company.
As Waldron (1994, p. 27) posits, “management is an effective process by which effective coordination and combination of technology, people, tasks, and other essential resources takes place to achieve the key objectives of the organization”. Thus, this change addressed the problem of failure to meet the chief objectives of the company.
The increase in operating costs at this company has made its revenues decrease at an alarming rate. Downsizing implemented by the company aided in reducing such costs. Removing unnecessary employees in this company is paramount in tackling a vast increase in labor costs.
This ensures that all people within the company have enough responsibilities that challenge them, thus, improving on the overall output. Reducing the committees managing this company is also significant. This committee aided in reducing costs and speeding up decision-making process.
Governmental actions aided the company to recover from bankruptcy, thus, improving its operations. General Motors CEO Rick Wagoner pleaded with the United States Congress for money to bail out the organization. Reinvention in this company required millions of dollars, which the United States government availed.
This helped the company to improve on its operations, thus, eliminating its eminent downfall. Lastly, hanged manufacturing processes addressed the problem of decreasing rates of auto sales experienced by the company. Moreover, it addressed the problem of low efficiency and reduced output.
Effectiveness of the changes already implemented
Different changes implemented in this company are now bearing fruits. This company is slowly recuperating from massive losses it had incurred in the previous years. By changing the management structure in this company, the efficiency of the company is improving. Automation of the production lines has aided much in reaching the targets set by the company.
In addition, it has helped to meet customer’s orders on time resulting to a satisfied clientele. As production became more flexible and fast, the volume of automotives together with spare parts produced increased considerably. Moreover, the quality of the products has increased. This has enabled the company to withstand stiff competition in this industry based on the increase its sales volume.
In addition, operational efficiency in the company will increase after the expected restructuring in its workforce coupled with the hiring of new and experienced employees. The workforce in a company plays a pivotal role in ensuring the success of its operations. The nay organization cannot achieve its main goals if its workforce is incompetent and inefficient.
Therefore, maintaining an effective workforce is paramount if General Motors Company is to achieve its objectives. This explains its option to do the restructuring process. More importantly, the new product development, which has occurred in this company, thanks to its broad and sophisticated production lines, is of considerable essence. It has enabled the company to dominate the lucrative automotive industry.
New changes worth implementing for General Motors to remain competitive within the automotive industry
The company should embark on improvement of its innovations to remain competitive. Innovations will create new and improved designs for various car models. Thus, the company needs to invest a lot in innovative activities that will result to increased models of its automotives.
In addition, it is imperative to create a unique team of experienced professionals who will spearhead the implementation of innovations in the company. In addition, the company should improve communication inside the organization for it to remain competitive. Different organizations can implement different patterns depending on their sizes, speeds, and accuracy required in reaching valid decisions.
Thus, General Motors should implement an effective communication model that will aid in ensuring fast information flow in the organization. More importantly, the company should come up with a rigorous plan to restructure its departments. By emphasizing on autonomy in its departments, decision-making, as well as innovation, will fasten. Another change is the hiring of competent personnel with wide experience as managers.
Managers face diverse challenges when performing duties in a professional organization ranging from management of objectives and resources to time in order to implement effective ideas that it can use to accomplish tasks (Waldron, 1994, p.23). Therefore, this company should hire high performers who will always reflect, discover, act, and assess it. The company should look for managers who consider themselves communicators or tutors rather than organization managers.
Potential benefits of the new changes
The new changes have diverse potential benefits to this company. Effective innovation will mitigate the diverse problems encountered from lack of efficient innovation. For instance, building hydride cars, which will be appealing to the next generation, will make the company competitive. This eventually will increase its sales in the future. This will enable the company to increase its clientele base expanding its operations.
However, it should achieve this through effective management of innovations in the company. Innovation management is paramount, as it enables an organization to manage its ideas and remain competitive. On the other hand, implementing effective structures of communication in general Motors Company is of immense essence because it will influence the decision-making process by increasing its speed and accuracy.
Fast information flow ensures effective operation that enables quick attainment of targets. This will ensure satisfaction of all members in the organization, and a corresponding increased integration between employees. Restructuring the company’s departments will increase efficiency and reduce labor costs.
Hiring astute managers who work assiduously in knowing what the organization needs, and striving to achieve them will improve efficiency. This will enhance the implementation of diverse operation guidelines used in the company, thus increasing its manufacturing processes.
As evident in this paper, General Motors Company has implemented many changes. They all aim at improving its efficiency and increasing its revenues. However, the company has not realized its full potential. Therefore, it still needs to pull up its socks. Implementing diverse changes, as stipulated in this paper, offers many potential benefits to the organization.
Therefore, organizational structure in this company needs regular reviews to ensure that the overall organization and its subsidies such as departments, teams, processes and employees work effectively to achieve the desired results.
Bertel, S. ( 2011).World Largest Automakers of 2011:The Race Gets A little Tighter. The Truth about Cars, 1(3), 3–15.
Marshall, P. (1992). Introduction to the Management Process in Managing People at Work. Guelph: University of Guelph Press.
Waldron, M. (1994). Models for the future. Toronto: Thompson Educational Publishing.