Trying To Do The Impossible At GM - Essay Example

The World War II played a vital role in moving the GM's ratings to the top as GM got the chance to serve the U.S. Army in terms of transportation. The company was always paying attention to the management side, where as others were busy in creating luxury without realizing the needs of the people. GM paid special attention to what most of the people in U.S. were ought to prefer, the company brought models catering the needs and wants of the people as well as the other sectors of the economy, but that was wy back in 50s.

GM not only ruled the automotive sector of the world but also the entire industrial sector of the world. Being the first company to cross the profit margin of $1 Billion, GM griped the market very well until the 1980s when its share started decreasing steadily. The simple reasons for that were the increased production costs and decreased product quality, it was that time when many new entrants competing GM got some hold on the market. It was that time when the exact organizational culture came in view, the company had got so many prevailing issues within it, much of that were related to the labor suggesting that they were facing a strict duty schedule and were pressurized, GM expected them to perform exceptionally well on the outdated plants, this brings in the increased pressure on the human resources which forces them to make many wrong judgments, also there was no proper training available for the employees including the engineers who had to deal with the processing and line manufacturing.

Surprisingly, the organization never gave much importance to its employees in terms of their knowledge and experience as most of the times in the past they hired fresh graduates, it sounds normal for a newly established organization but for a company having an exceptional profit statements, it is really unacceptable. The employees are the ones who represent the organization's culture and in case of GM, they were just new to understand and form a culture that could have been positively self changing and lucrative for the organization in the long run.

One of the poor things about GM was that the executives believed that they reached the pinnacle and hence there is no room for further improvement in any of the GM's operations, sooner this proved to be very costly when the GM's cars got improvements but the competition increased even faster to crumble GM. However there are yet many reasons for the decline of GM such as improper selection and utilization of human resources, the general populations had got lesser education which made it hard for the companies to initially hire people who were really competitive, but at the same time the company never looked for betterment in the executives and kept the same people along, it was strange to hear a top class productive executive working in GM.

Initially, the company was forced do hire such people but they should have changed this policy the moment the market got