General Motors Management Failure

Topics: Management, Leadership, Business Pages: 3 (812 words) Published: November 9, 2010
General Motors (GM) has a number of reasons for the failure of the company. The main issue that was the most efficient problem was the management inability to foresee and take dynamic action to change. Organizations change in better interest of the customers. Management has to be proactive when deciding on what changes requires active action. Failure to adapt to a positive change will lead the organization to an unsuccessful path. Therefore, if organizational performance changes negatively, the impact of the organization will fail. Business rises and falls on leadership. According to business guru, Brian Tracy, "Leadership is the most important single factor in determining business successor failure in our competitive, turbulent, fast-moving economy." Management roles are to effectively recognize the negative change, research the problem that is negatively impacting the organization and take positive actions to successfully impact the organization. The U. S. Small Business Administration (SBA) reports that over 90 percent of business failures are management-related (Udell, Atehortua, & Parker, 1995). GM management has failed to effectively approach negative change with the organization. (Management Lessons, 2009) Effective management is skilled at strategic thinking, able to make a vision a reality, and able to confront change, make transitions, and envision new possibilities for the future. Successful leadership roles and management roles effectively adjust to organizational changes in environment. GM management failed to change. Failures to adjust to change lead the organization to bad financial policies, uncompetitive vehicles, ignoring competition, failure to innovate and managers managed in the bubble. GM management has believed if the company has been successful in the past, management at GM predicted the organization would always be successful. The management skills at GM were closed minded to enhancing performance in the...
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