General Motors Organizational Transition

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General Motors Organizational Transition

General Motors was founded by William Durant on September 16th, 1908. General Motors (GM) is an American based automobile manufacturing company. From its inception, GM has grown from a small Detroit, Michigan manufacturing plant to one of the top three auto manufacturers in America and the world’s second largest. GM has manufacturing plants in 35 countries and sells in over 200 countries. Throughout the years, recognizable brand names such as Oldsmobile, Opel, Cadillac, Pontiac and Chevrolet have become a part of GM. The company has branched out into the aviation and financial lending fields as well. Recent economic meltdowns have affected GM to point of bankruptcy in 2008. It took an American government bail-out in 2008 to save the company. GM then began an over-haul of its entire organization; including production, manufacturing, management structure and fiscal responsibility practices. The article, GM Organizational Change by Michelle Powers, published March 17, 2009, covers many points of the corporation’s transition from a traditional organizational model to a transformed organizational model. The article identifies how changing the organizational model impacted GM’s workforce, customer base and local communities that GM’s many arms of business were a part of, support systems that were put in place at GM to insure successful transition. Before the transition was put into effect, GM had a traditional hierarchical management structure and viewpoint. At the top of the structure was the president, who was answerable to only the board of directors, senior management and vice-presidents of varied departments were answerable to the president. On down the line there were division managers & supervisors and so on, then your average, regular employees. Having separate entities, such as Buick, Cadillac and other divisions operating differently from each other and the parent company was costly and ineffective...
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