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General Motors Essay

1997 words - 8 pages

General Motors
HRM 587Analysis Paper

Lois Hunter

Analysis of General Motors Chief Executive Officers and the Change Leader Culture they portrayed in their at tenure in GM Corporation

Case Study: General Motors Moving Forward
“How Many Expert does it take to turn a company around? That is the question that the taxpayers of America are asking. General Motors was once the industry leader in America. General Motors was a fortune 500 Company for decades. They dominated the automobile industry .Stocks top out at the highest being sold at 83.00 dollars on the market. General Motors made the middle class in America. General boasted the ...view middle of the document...

Sloan visualized an emerging market for repeat sales, if a car could be perceived as out of date within four to five years. He also introduce the concept to reorganized of decentralized the controls coordinated. Each Division maintains a high degree of autonomy while a central set of policies and procedure was put in place. In 1944 every car that rolled off GM assembly plant custom made name plate was placed on it.
Sloan was a manger of persuasion and the power of expertise. He was a change agent that told people change will occur and you will accept it and it is good for you and the organization if you want to remain an employee here at General Motors. The change was long thirty years and they accepted they change and knew it was good for them.
Sloan also had the power of coercion everyone believed in him and they complainant and what they were told to do. The only problems he had was with regulations being mandated on the corporation.
General Motors became the first corporation in the world to generate $1 billion in revenue in a single year. After growing GM into one for the most successful organization in American history, Sloan retired in 1955.
General Motors goes in Reverse: No organizations in the world have had the long term success or the prestige and innovations as GM. It was a low cost producer, the only problems GM might encounter was the Justice Department coming to shrink their monopoly on the market. In 1956 the United States started imported more cars in sales for GM and Ford began to decrease by 15%. By the end of 1956 the imports double and both automobile lost started losing their competitive edge. The problems started the riots in Detroit, the air pollution, the gas prices began to rise. GM had not begun to work on a fuel efficient car, OPEC countries oil embargoes decrease demands for luxury cars, gas guzzlers. The unions, major strikes, more employees was retired than working, The US plunged into recession in the early eighties GM recorded it lowest losses it history.
Roger Smith becomes CEO in 1981 bringing with him a vision to bring GM back to its Glory days, Smith brought in the Robotic called the unmated which was not well thought out. Being a union organization the employees did not buy into this for fear of losing their jobs. The sabotaging made it cost effective. Smith was straight out saying if you Eli mate labor you eliminate cost. This would make GM more compatible with Japan. Japan took Smith idea and implemented it in Japan and the robotic arm work very well in their organizations. He automated the Organization and the plants were running at fifty percent capacity because of glitches in computer integrated systems,
Smith was perceived by the employees’ as autocratic. He blamed the failures on the culture there at GM the employees.
Smith had great ideas and innovative ideas but he could not convince the staff to change and lead with him. Smith purchase EDs and Hughes because he believed that technology...

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