HBS General Motors essay

Alternative structures such as grouping by output/product or grouping by market are not options as they would result in “duplication of activities and resources, the erosion of deep technical expertise, missed opportunities for synergies and learning” (Ancona, Kochan, Scully, Van Maanen, & Westney, 2009, p. M2-19). The matrix structure provided a potential positive aspect in that it would provide a needed cross-functional linking mechanism by mixing the functional structure with grouping by output/product, but the complexity, cost, dual systems, and dual roles resulting from the matrix structure historically resulted in either the functional or the output/product system becoming more powerful than the other.

The company has hired three (3) new managers with expertise in larger motor engines, ten (10) staff members to assist on the factory line producing the engine as well as new marketing staff to create the best plan for execution of sale. The current staff will continue to make and monitor the medium size motors with a small amount of cross over. The additional staff with work primarily on the new larger motor project with career ending goals to continue with the organization for a long time to come. This increase and structure is the best of two worlds according to Project Management (Kerzner, 2013) “the matrix structure eliminate almost all of the disadvantages of the traditional

Jeff’s immediate reaction and desire of reassigning Tyler to his new project indicates that not all employees have bought in to or have a functional understanding of the organisation’s matrix

Ford Motor Company is America's one of the largest car manufacturer and seller. In year 1987 it faces an external business environment change in the form of new warranty policy announcement by its major competitors General Motor, which changes the current philosophy of warranty in U.S car market. This policy change may have implications not only on Ford’s sales and market share but also on various departments within organization (such as manufacturing, quality assurance, parts and service, and extended service plans) and their dealer network. In answer, Ford executives have to respond through a best suitable course of action by carefully analyzing the current market variables.

General Motors incorporates entrepreneurship and innovation into its business objectives. This is evident in General Motors Vision statement which states that its goal is to “lead in advanced technologies and quality by creating the world’s best vehicles”. (1) For instance General Motors has an extensive R & D, Design, and Engineering department that oversees the creativity, innovation, and invention of its strategic technologies and innovation programs which are aligned with its corporate vision. In order to lead in advanced technologies of the world’s best vehicles General Motors incorporates entrepreneurship and innovation concepts, which are essential to competing in the global market place.(2) In the spirit of entrepreneurship, which

Explain what shareholders would receive in exchange for (a) old common shares, (b) old class B shares, and (c) old shares held in the employee saving plan.

This recession hits home with the automobile industry. During this current recession GM is facing the possibility of bankruptcy, but is hoping to be helped out by the government. History

Week 3, the lecture on Managing Change describes organizational changes that occur when a company makes a shift from its current state to some preferred future state. Managing organizational change is the process of planning and implementing change in organizations in such a way as to decrease employee resistance and cost to the organization while concurrently expanding the effectiveness of the change effort. Today's business environment requires companies to undergo changes almost constantly if they are to remain competitive. Students of organizational change identify areas of change in order to analyze them. A manager trying to implement a change, no matter how small, should expect to encounter some resistance from within the organization.

The case study, “Beijing EAPS Consulting, Inc.” in the Custom Book, (2011), reveals many advantages and disadvantages to this matrix organizational structure. For instance, the project manager, Ms. Song, and the departmental manager, Mr. Yang, are having a problem deciding who makes the final decisions on work to be completed because they are the same level in the management structure. Ms. Song feels like she does not have the authority to give direction to Mr. Yang’s employees. She is also wary about asking Mr. Yang to give his employees work from her because of his temperament. The loud and abrasive attitude of Mr. Yang represents the rational personality type. A rational trait is more forceful and can get angry quickly. (Lewis, 2003) Mr. Yang knows he has this type of personality; however, he does not do anything to curve this problem when he notices that Ms. Song is not communicating with him. Also, the employees do not know which manager to listen to or how to prioritize their work at hand. This causes more conflict between the employees, the project manager and departmental managers. In addition, these employees are not sure if the project manager or the department manager is their direct supervisor. This in turn causes conflict between both managers.

Change in a business is inevitable and typically only the strongest thrive. With a fluctuating economy and constant technological advancements, organizations are expected to adapt in order to survive. When a business is posed with an issue or change, it must develop new business and strategy structures and implements those developments throughout the entire company. Communication, education and participation are all required for a change model to be successful. Though change and adaptation may be needed to better the company, with implementation of change comes resistance. Most companies face resistance on an organizational and individual level during a transition. However, it is how the company is able to overcome

  P&G intended to overcome the tensions and conflicts of interest that arose in the former matrix structure between category management and regional managers by the clear definition and reallocation of responsibilities for product development, brand design and business strategies to GBUs and market development to MDOs.

As seen from figure 2, the matrix organisational structure is complex and aligns functional and divisional organisational structures merged into a hierarchical structure. The student observes that with this comes the potential to on the one hand, improve interdepartmental collaboration through avoiding silo-functioning and yet, on the other hand, blur the unity of command structure in an organisation that can be counterproductive. A critical analysis of two major advantages and disadvantages of this organisational structure here

Profitability (performance) ratios are used to assess a company’s ability to create equity as compared to its debt and other appropriate expenses created during a particular time frame. A favorable analysis of profitability ratios will reveal that a company’s value is higher than a competitor’s value.

While global category management had improved cross-market coordination, innovative new products were still being developed very slowly especially if developed overseas. They were taking years to rollout. The matrix structure seemed an impediment to entrepreneurship and flexibility.

With direct-connect structure, the business leaders or functional managers of specific business divisions report to their headquarters in the U.S.. After the direct-connect structure is implemented, it has changed the operation in GE Canada. In the past, the Canadian CEO was fully responsible for the profitability of the Canadian operating division, with the manufacturing plants made a full line of products primarily for the Canadian market with some exporting possibilities. After the new management system implemented, the U.S. divisional bosses is responsible for the profitability of each operational business division both in the U.S. and Canada. With the change in management system, the business development group has changed its position in GE Canada by switching the role of conducting feasibility studies and new market development for the business unit in Canada to the role of looking for opportunities to leverage the strengths of Canadian activities on a global basis. The business development group felt that the change in management system has made the U.S.-based business leaders to ignore the potential business opportunity in Canada and added more uncertainty to the business development group role. Most decisions need approval from the U.S. divisional bosses, whom do not have a complete picture of the business potential in Canada and want full control of the business operations