What type of organization is GM?
What type of organization is GM?
General Motors Company (GM) is an American multinational automotive manufacturing company headquartered in Detroit, Michigan, United States. It was founded by William C. Durant on September 16, 1908, as a holding company, and the present entity was established in 2009 after its restructuring.
How would you describe the organizational culture at GM?
General Motors Company’s organizational culture instills responsibility and accountability among employees. This cultural characteristic helps minimize and mitigate problems in the company. For example, responsibility motivates GM workers to take necessary action to address problems they encounter on the job.
What is organizational structure in strategic management?
An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization. These activities can include rules, roles, and responsibilities. The organizational structure also determines how information flows between levels within the company.
How does strategy affect organizational structure?
If an organization changes its strategy, it must change its structure to support the new strategy. Changing strategy means changing what everyone in the organization does. When an organization changes its structure and not its strategy, the strategy will change to fit the new structure. Strategy follows structure.
Is GM centralized?
Over the decades, GM moved towards an operating model that is centralized and shared, and highly effective. On the contrary, GM’s business model is fragmented and decentralized. Each business unit continues to operate independently using different business systems and different processes.
What is the function of the general management?
General management focuses on the entire business as a whole. General management duties and responsibilities include formulating policies, managing daily operations, and planning the use of materials and human resources.
What is General Motors mission statement?
General Motors’ corporate mission is “to earn customers for life by building brands that inspire passion and loyalty through not only breakthrough technologies but also by serving and improving the communities in which we live and work around the world.” This mission statement shows a holistic approach to addressing …
Why do you think the previous CEO Mr Henderson attempts to change the organizational culture might have been lacking?
The previous CEO’s (Mr. Henderson) attempts to change the organizational culture might have been lacking in understanding that GM has a problem with reinventing its culture in the past years. It has been struggling to impose cultural change since the company itself is highly bureaucratic.
Why is organizational structure so important in strategy implementation?
Organizational structures are often important in gaining consensus for a strategy. The structure of an organization will have much to do with gaining consensus because it will determine who has to be appeased in management and how power is aligned.
What is strategic structure?
Strategic structure would be the relationships between the different elements of strategy. The role of structure in strategy is to facilitate delegation, authorization, review and adjustment of the strategy. The structure allows the strategy to be cascaded into the organization.
Why is it important for an organization to have alignment between its strategy and organizational structure?
Aligned organizations result in quicker decisions and reduced time to execution. Organization alignment also allows employees to focus on performing work rather than on figuring out who is supposed to do what and who needs to be consulted when making decisions. Better employee engagement.
How do you align structure and strategy?
Aligning Structure with Strategy
- Aligns the organization to best follow strategic direction.
- Allows for clearly defined roles and responsibilities.
- Clarifies who makes what decisions.
- Enables clear accountability.
- Minimizes handoffs that affect the customer experience.
