Organization Theory For General Motors Company Commerce Essay

September 26, 2017 Commerce

Organization theory is a sociology subdivision that focuses on the construction, systems and procedures within an organisation. Organization theory is therefore applied by houses and states the activities and ends of that house. General Motors Company was established in 1908 in Michigan by William Durant. By so it was a parent company for Buick. Later that twelvemonth, it acquired two motor path companies i.e. the Reliance motor company which was based in Owosso, Michigan and Pontiac ‘s Rapid motor company.

However, General Motors Company came to be the market leader in Motor industry in the early 1980s.It started with using 349,000 employees and had 150 assembly workss. Presently, General Motors produce paths and autos in over 34 states worldwide. It sells the vehicles through such trade names as Cadillac, Buick, GMS, Chevrolet, Holden, GM Daewoo, Wuling and Vauxhall. The United States is the largest national market for General Motors. Other markets include the China, England, Germany.Russia, Canada and Brazil. Daewoo Auto and Technology Company of South Korea is the chief stockholder of General Motors. It has power preparation and buying coactions with Isuzu motors Ltd and Suzuki Motor corp of Japan. The echt General Motors accoutrements and parts are usually sold under GM Goodwrench, GM public presentation, ACDelco trade names and GM trade names with the aid of parts operations and GM service. The GM transmittals and engines are sold via GM power train ( Frederick, 1995 ) .

General Motors Organizational Structure

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With respects to its organisational construction, General Motors have transformed organize a traditional theoretical account to a modern one. The alteration in the organisational theoretical account has had an impact every bit far as the clients and the local communities of General Motors are concerned. The traditional General Motors Organizational theoretical account consisted of a hierarchy with executive or the president on top, so senior directors or frailty presidents. Followed by directors and eventually the employees. The occupations were normally grouped into sections. The General motors were composed of assorted independent car manufacturers and each car manufacturer operated otherwise and competed with each other. The transmutation of the organisation theoretical account saw General motors unified and centralized whereby several persons work towards accomplishing a common end. The corporation is now run in a streamlined mode and the several sections have been abolished ( The University of Virginia, 1993 ) .

Multinational Company

With operations in 34 states all over the Earth, General Motors is a transnational company. Multinational companies refer to those organisations which have operations in many states. The ability of the General motors to run in many states is enhanced by globalisation. This entails an on-going procedure through which societies, regional economic systems and civilization become integrated as a consequence of executing and Earth web communications. This is normally driven through the combination of technological, political, economic and biological factors.

Organization design

Directors at General Motors have encompassed the application of the organisation design. They have created procedures, functions and describing relationships in order to fit the organisation ‘s signifier really closely. It is through the organisation design that the company is able to better chance that members ‘ corporate attempts will be successful. The General Motors Company have been designed in a beauracratic mode whereby duty and authorization have been arranged hierachically.This has enabled specialisation and grouping of people who performs similar or related undertakings in bunchs. The bureaucratism in the General Motors have enhanced logic, rationally and most of import, the efficiency. It has besides had some demerits every bit far as rigidness and inflexibleness are concerned e.g. slow determination doing process e.t.c. ( Salmon, 1989 ) .

Divisional Structure

The General Motors Company uses divisional construction. Each organisational map is grouped into divisions. A division which is within the divisional construction normally has all the necessary information and resources within it. The General Motors can therefore do a differentiation based on geographical facets e.g. the Russian division and the United Kingdom division and besides on its merchandises such as SUVs and another one for subcompact autos with each division holding its ain technology, gross revenues and selling sections. This organisational construction have its ain demerits which includes trouble in merchandise integrating i.e. each GM divisional director dressed ores on presenting his or her merchandises and fails to concentrate on integrating and besides the employees normally feel a spot attached towards their section merely and they lacks sense of being a portion of the organisation. Divisional construction besides inhibits the calling growing of specializers as proficient people may experience alienated from their co-workers in other divisions and besides may miss some exposure to major developments taking topographic point in the organisation ( Cook, & A ; Woollacott, 1995 ) .

Organizational Culture

The strategic leaders in the General Motors should are vested with the duty of making the organisational features that encourage and reward corporate attempt. The organisational civilization is the most cardinal feature as it enables the organisation to get by good with its environment. For General Motors to last persons must be integrated into a whole and besides the organisation must accommodate efficaciously to the environment in which it is runing ( Lung, 2003 ) .

GM External environment

General Moors merely like many other organisations does non run in a vacuity. The organisation has to be witting about what happens outside its mill and office walls. These factors that occur outside the concern boundaries are known as the external environment. They normally influence the organisations chief maps, aims and schemes. The chief factors include the competition i.e. the extent to which other houses competes with the General Motors cars. The chief rivals of the General Motors ifs the Ford Company. Ford was established in the 1920s by Henry Ford. It has been fighting to catch General Motors Company utilizing such schemes as take downing monetary values. Despite these, General Motors have been the market leader due to its assortment and good direction. To efficaciously cover with the competition menace from Ford and other car shapers such as Toyota, the direction should take at bettering the quality of the merchandises so as to add the value to their clients. The company besides needs non to stagger in the accounting patterns such as derived functions and pensions which have brought immense costs in the General Motors. To better its direction, the General Motors Company has been reshuffling its executives over the old ages ( Helen Dwight Reid Educational Foundation, 1994 ) .

The other factors that affect the General motors are ; societal i.e. how the consumer and communities at big behave with mention to the company ‘s merchandises. The other external factor is legal i.e. the mode in which the statute law affects the organisation e.g. the alteration of the Torahs sing employees working hours. Economic is the other external factor which affects an organisation. This relates to such issues as revenue enhancement, involvement rates, authorities disbursement, planetary economical factors and general demand. The other external factor that affects the concern is the engineering. For case, the General Motors have to travel with the current tendencies in the motor industry every bit far as its production procedures and merchandise invention are concerned. Others are ethics i.e. the morality facet of making a concern ( Bordenave, 2003 ) .

The Stakeholders attack

The General Motors should follow the stakeholders ‘ attack in which instance all its stakeholders will be able to cognize good how the concern is being operated. Stakeholders are those people that have an involvement in an organisation and are affected by the company ‘s skip or committee of its responsibilities. The directors are required to make up one’s mind on which positions from the stakeholders are necessary to listen. The General Motors Company is presently undergoing through some important transmutations as it strives to go more competitory and so there could be several cardinal things that the company could be involved with without the know-how of the company ‘s direction. In an purpose of keeping its competitory position, it is of import to ask from some of its more insightful people who may be experts in the industry about the things that should be done by the GM direction so as to do the organisation healthier, stronger and a more competitory 1. To accomplish this, the directors can follow stakeholder ‘s attack which believes that the directors in any organisation should see the positions from all the company ‘s stakeholders and non trusting merely on the proprietors positions. This inturn enables the stakeholders to hold active involvement every bit far as the concern public assistance is concerned. Some of the stakeholder attack and the possible benefits that can be achieved by concern include offering the clients excellent after sale services and besides good value merchandises so as to make client trueness, societal corporate duties such as supplying the locals with athleticss installations so s to make good dealingss with them which may inturn aid to increase sales.Also, a company should supply the work force with good rewards so that the employees can experience motivated and execute their responsibilities enthusiastically and efficaciously ( Rothstein,2005 ) .

To remain healthier and stronger, the General Motors needs to maintain away from its historical inclinations of being in its comfort zone and sing itself as the greatest. It should concentrate on accomplishing and sustained the impulse so as to convey alteration and improvements.It demands to borrow a foliage from Toyota which is off in front of GM ( Coetzee, 2001 ) .

The General Motors needs to introduce and be in front of ordinance i.e. it should take the chance and re-establish itself as a leader in Enviromental engineering and avoid being regarded as immune towards advancement on emanations and fuel efficiency. This will enable the company to catch Honda and Toyota which is deemed as leaders every bit far as this country is concerned ( Greenberg & A ; Baron, 1995 ) .


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