Jun 18th, 2015
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Case Studies General Motors:Its Changing Organizations DesignThe trials and tribulations of General Motors (GM) during the 1980s and 1990s mirror those of organizations in the United States and around the world. GM's position of market leader in automobile production and sales began to falter in the early 1980s along with market leaders in other industries. Competitive forces throughout the world were forcing US firms to rethink their strategies and their organization designs. As more and more competitors from Asia and Europe challenged GM's market supremacy and as technological developments in manufacturing and information processing challenged GM's production advantages, GM's management responded by implementing changes in its organization design that continue into the second half of the 90s.The first signs of problems began to appear in 1981 when the company reported its first loss since 1921. This report coincided with the appointment of Roger Smith as CEO, the sixth GM CEO since Alfred P Sloan, Jr., who served from 1937 to 1956. Sloan created the modern version of GM through the development of the divisional organizational structure, which consisted of five independent divisions Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillacand the competing product strategy. The competing product strategy encouraged each division to compete for customers by delegating complete authority to each division to design, produce, market, and sell its own particular lin

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