This milestone is designed to introduce the case study and begin a critical analysis applying knowledge gained within the course. This short paper assignment is the first step in your final project analysis of the company. It should begin with a brief description (one paragraph) of the case study that is being used. The largest component of this short paper should focus on the culture crisis with specific feature details as contributing factors, based on the elements listed below. This assignment will be submitted in the form of a 750-word minimum paper.
Prompt
Use the following case study for your organizational analysis: The GM Culture Crisis: What Leaders Must Learn From This Culture Case Study.
After reading the case study, address the following critical elements.
Introduction
How is the organization described in the case study? What are its key attributes? What are its strengths and weaknesses?
Organizational Modeling
Describe a current behavioral organizational model used in the case study.
- Compare the current behavioral organizational model used above to other models used within the industry and also within external related industries.
Explain why there are differences between the organizational model used by the organization in the case study and those used by organizations in another similar industry. In other words, what are some of the reasons for using these different organizational models?
Compare the current impact of culture on current organizational models to the impact culture has had on past organizational models.
- Explain how the organization is or is not operating within an organizational model unique to its industry.
- Explain if motivational models have shifted in comparison to the organizational modeling trends.
How to solve
MVCC The GM Culture Crisis Case Study
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The organization described in the case study is General Motors (GM). GM is a multinational corporation that operates in the automotive industry. Some key attributes of GM include being one of the largest automakers in the world, having a long history in the industry, and producing a wide range of vehicles across various brands.
Strengths of GM include its global presence, technological capabilities, and brand recognition. GM has a strong market position in North America, China, and other regions. The company has invested in research and development, resulting in innovative technologies and products. Additionally, GM’s brands, such as Chevrolet, Cadillac, and GMC, are well-known and trusted by consumers.
However, GM also faces weaknesses. The case study highlights a culture crisis within the organization, which negatively impacted its operations and reputation. The company had a history of prioritizing cost-cutting measures over quality and safety. This contributed to several major recalls and legal issues, causing significant damage to GM’s brand image and customer trust. Additionally, the hierarchical organizational structure and bureaucratic decision-making processes hindered effective communication and responsiveness to emerging challenges.
Organizational Modeling:
The current behavioral organizational model used in the case study is characterized by a hierarchical structure, centralized decision-making, and a focus on cost reduction. This model emphasizes top-down control and efficiency, with little emphasis on empowering employees or fostering innovation.
Comparing the current organizational model used by GM to other models within the automotive industry and related industries, it is evident that there are differences. Some organizations in the industry, such as Tesla, have adopted a more decentralized and agile organizational model. This model encourages employee empowerment, innovation, and collaboration across different functions and departments.
The differences in organizational models can be attributed to various factors. One reason is the historical legacy and established practices within the industry. Traditional automakers like GM have operated under hierarchical models for decades, and changing this deeply ingrained culture and structure takes time and effort. Additionally, external pressures such as profitability and investor expectations may shape the choice of organizational model.
The current impact of culture on organizational models at GM is significant. The case study highlights how a culture focused on cost-cutting and prioritizing financial goals over quality and safety led to the emergence of a crisis. In the past, organizational models may have been less affected by cultural issues, but in the current business environment, where reputation and customer trust are crucial, culture plays a vital role in shaping organizational models.
GM is operating within an organizational model that is not unique to its industry. The hierarchical structure and centralized decision-making are common in many large, established corporations. This model has proven to be efficient and effective in certain aspects, such as streamlining operations and ensuring consistency. However, it may also create challenges in terms of adaptability, innovation, and employee engagement.
In terms of motivational models, there may have been a shift in comparison to organizational modeling trends. Traditional motivational models often focused on extrinsic factors such as financial rewards and job security. However, in recent years, there has been an increased emphasis on intrinsic motivation, such as autonomy, purpose, and personal growth. Organizations like Tesla that embrace a decentralized model often prioritize intrinsic motivation to foster innovation and creativity.
In conclusion, GM is an organization with significant strengths and weaknesses. The current behavioral organizational model used by GM is hierarchical and focused on cost reduction, which differs from other models in the automotive industry. The differences in organizational models can be attributed to historical legacy, external pressures, and the impact of culture. Culture plays a significant role in shaping organizational models, and there may have been a shift in motivational models in recent years towards intrinsic factors. However, GM’s organizational model is not unique to its industry and may pose challenges in terms of adaptability and innovation.
