An organizational culture entails a list of common values and beliefs that dictate the standard thinking and behaving patterns in an organization ( Kissinger, 2019 ). Companies are often required to have a cultural or organizational change during their lifespan due to external and internal influences. This has also been the case in General Motors (GM) which is now considered a global automotive manufacturing leader. However, GM was associated with poor leadership and a substandard culture and changes were necessary to influence the employees as well as the managers ‘organizational behavior. These changes were centered on taking responsibility, putting customer needs and quality before profit or cost, and having a platform for employee interaction in case an issue arises.
GM’s investigation on the ignition switch scandal and their CEO’s accountability report before the Congress revealed a can of worms in the organization’s culture and practices. The single event uncovered instances of ignorance, or irresponsibility, in the employees while the organization also had ineffective structures that led to poor management and accountability (LeBeau, 2019). The culture of secrecy seemed to plague the organization, with the propagator of the initial scandal withholding details about the fault and also changing it in secrecy, which only served to frustrate investigation efforts further ( Scudder, 2019 ). However, with the organization threatening with cutting labor costs, consequences like termination might have discouraged openness. Similarly, the management also withheld the disciplinary efforts to fuel the disregard for transparency. The organization also had poor communication strategies and most of the crucial information failed to be communicated effectively to relevant stakeholders, the deceased customers’ relatives, and even between employees. Furthermore, the root of this entire problem could be traced to the organization’s placement of profit ahead of quality and customer satisfaction on its priority list. However, the organization took the lessons out of the experience and started to clean up its act.
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Since the problem was rooted in poor human resource management, the organization began its cultural reform by addressing this. To this effect, the organization applies an open-door policy where employees are free to approach managers, including the CEO, about any issues they experience. The organization encourages positive relationships not only internally, but also externally with alignment between the organization and its partners ( Kissinger, 2019 ). Additionally, the company limits the autonomy given to employees and their decisions are now closely tracked to improve on their responsibility and autonomy. Employees’ responsibility and accountability are ensured since their actions and their consequences are linked to human resources for problem-solving purposes. The company has also focused on the customer and the quality of the end product rather than the previous stance of cost-cutting, even where the quality of the product and the customer’s safety become compromised. This quality assurance has been enabled by an emphasis on innovation which enables the organization to maintain its competitive advantage with more economic products. The company has managed to perpetuate human resource programs to increase the talent and skills of their workers. Through these programs, employees can address several concerns about their careers, morale, and careers.
The cultural shift in GM’s may be interpreted as successful due to several reasons. The company has been able to retain and attract high-quality talent through their career development programs ( Kissinger, 2019 ). The programs also ensure that the organization’s workforce is always updated on changing and emerging challenges. The organization has also managed to regain its lost customer trust and loyalty by developing positive and mutually beneficial relations between it and the stakeholders. The company has also managed to not only avoid the looming crisis due to reducing market share, but it has also managed to realize profits ( Kissinger, 2019 ). The company has also managed to improve the safety of its vehicles since no further design flaws have been reported, which has also increased its customer confidence and has also saved them from legal costs.
Change in an organization’s culture may save or break it while facing challenges. General Motors changed to an organizational culture that supports its human resource development. However, the company was previously marred with instances of poor management and organizational strategies that frustrated its development. The organization’s previous culture presented an image of a company lacking harmony and whose employees lacked accountability in their efforts while trying to achieve the organization's objectives. This was worsened by apparent communication barriers where issues in one department of the organization affected the overall product quality without the knowledge of the decision making authorities. However, the company’s culture shift has enabled the company to avoid collapsing and ensured that it has been able to maintain its competitive advantage.
References
Kissinger, D. (2019). General Motors’ Organizational Culture of Agility & Its Characteristics (An Analysis) - Panmore Institute. Retrieved 29 August 2019, from http://panmore.com/general-motors-organizational-culture-agility-characteristics-analysis
LeBeau, J. (2019). The corporate culture: Behind the scenes at General Motors. Retrieved 29 August 2019, from https://www.cnbc.com/2014/05/16/the-corporate-culture-behind-the-scenes-at-general-motors.html
Scudder, V. (2019). How a Culture of Secrecy Plagued GM. Retrieved 29 August 2019, from https://apps.prsa.org/Intelligence/TheStrategist/Articles/view/10707/1096/How_a_Culture_of_Secrecy_Plagued_GM#.XWcGvegzbIU
