Organizational Design – Due by Saturday May 11th by 12 noon

Assignment 1: LASA—Organizational Design and Culture

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Many companies find they are forced to remodel their traditional hierarchical structures, which were originally built around functional specialization and centralized authority, to compete in today’s marketplace. Companies often draw on the following five tools of organizational design to make their organizations leaner, flatter, and more responsive to change. The five tools are:

   

  • Empower managers and workers
  • Reengineer work processes
  • Implementing self-directed work teams
  • Rapid incorporation of Internet technology applications
  • Networking with outsiders to improve existing capabilities and create new ones

   

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In addition, there are many managerial tasks that shape corporate culture and the leadership skills needed to engage the full organization to produce great results. Examine the dynamics of the elements that must be brought together to create a corporate culture, such as core values and business principles, operating practices and behaviors, ethical standards and attitudes, and work climate and people management practices.

   

Considering the five tools of organizational design, managerial tasks and leadership skills, examine the practices followed by your selected organization and include the following in a 8–10 page APA formatted paper in MS Word:

   

Describe which of the five tools of organizational design your selected organization uses to maintain and improve productivity while achieving cost savings. Use detailed examples in your response.

 

Explain how work groups are utilized in your organization to accomplish the stated goals of the company.

 

Describe the motivational practices used by the organization to promote better strategy execution. Include some illustrative examples in your response.

   

Explain how, if at all, the reward system in the organization ties incentives directly to achieving higher productivity and performance targets.

   

Explain the evaluation and feedback process used in your company to assess employee performance.

 

Identify the elements in the organization that affect how cultural change is implemented.

 

Describe the ethical model being used by the company.

   

Present your overall opinion of the organization’s corporate strategy approach. Is the strategy execution effort delivering the expected results? Explain and illustrate your conclusions.

   

Describe what specific actions have been taken to delegate authority to middle and junior managers and to create a sense of empowerment among employees. Explain and illustrate your answers.

   

Avoid plagiarism: Using someone else’s words or ideas in your paper without proper acknowledgement constitutes plagiarism and is unacceptable in any situation. Make sure you have properly documented the source of original facts, ideas, and interpretations that you use in your paper. This must be done whether you summarize information or paraphrase what you learned from a particular source.

   

Submit your assignment to the M5: Assignment 1 Dropbox by Saturday, May 11, 2013.

        

Describe which of the five tools of organizational design your selected organization uses to maintain and improve productivity while achieving cost savings. Use detailed examples in your response. 28Explain how work groups are utilized in your organization to accomplish the stated goals of the company.24Describe the motivational practices used by the organization to promote better strategy execution. Include some illustrative examples in your response. 28Explain how, if at all, the reward system in the organization ties incentives directly to achieving higher productivity and performance targets. 24Explain the evaluation and feedback process used in your company to assess employee performance. 24Identify the elements in the organization that affect how cultural change is implemented. 28Describe the ethical model being used by the company. 24Present your overall opinion of the organization’s corporate strategy approach. Is the strategy execution effort delivering the expected results? Explain and illustrate your conclusions. 28Describe what specific actions have been taken to delegate authority to middle and junior managers and to create a sense of empowerment among employees. Explain and illustrate your answers. 28

64

Assignment 1 Grading Criteria

Maximum Points

Written Components: Organization (16) usage and mechanics (16) APA elements (24) Style (8)

Total:

300

   

Assignment 1: LASA—Organizational Design and Culture

Many companies find they are forced to remodel their traditional hierarchical structures, which were originally built around functional specialization and centralized authority, to compete in today’s marketplace. Companies often draw on the following five tools of organizational design to make their organizations leaner, flatter, and more responsive to change. The five tools are:

· Empower managers and workers

· Reengineer work processes

· Implementing self-directed work teams

· Rapid incorporation of Internet technology applications

· Networking with outsiders to improve existing capabilities and create new ones

In addition, there are many managerial tasks that shape corporate culture and the leadership skills needed to engage the full organization to produce great results. Examine the dynamics of the elements that must be brought together to create a corporate culture, such as core values and business principles, operating practices and behaviors, ethical standards and attitudes, and work climate and people management practices.

Considering the five tools of organizational design, managerial tasks and leadership skills, examine the practices followed by your selected organization and include the following in a 8–10 page APA formatted paper in MS Word:

Describe which of the five tools of organizational design your selected organization uses to maintain and improve productivity while achieving cost savings. Use detailed examples in your response.

Explain how work groups are utilized in your organization to accomplish the stated goals of the company.

Describe the motivational practices used by the organization to promote better strategy execution. Include some illustrative examples in your response.

Explain how, if at all, the reward system in the organization ties incentives directly to achieving higher productivity and performance targets.

Explain the evaluation and feedback process used in your company to assess employee performance.

Identify the elements in the organization that affect how cultural change is implemented.

Describe the ethical model being used by the company.

Present your overall opinion of the organization’s corporate strategy approach. Is the strategy execution effort delivering the expected results? Explain and illustrate your conclusions.

Describe what specific actions have been taken to delegate authority to middle and junior managers and to create a sense of empowerment among employees. Explain and illustrate your answers.

Avoid plagiarism: Using someone else’s words or ideas in your paper without proper acknowledgement constitutes plagiarism and is unacceptable in any situation. Make sure you have properly documented the source of original facts, ideas, and interpretations that you use in your paper. This must be done whether you summarize information or paraphrase what you learned from a particular source.

Submit your assignment to the M5: Assignment 1 Dropbox by Saturday, May 11, 2013.

28

24

24

28

24

28

28

Assignment 1 Grading Criteria

Maximum Points

Describe which of the five tools of organizational design your selected organization uses to maintain and improve productivity while achieving cost savings. Use detailed examples in your response.

28

Explain how work groups are utilized in your organization to accomplish the stated goals of the company.

24

Describe the motivational practices used by the organization to promote better strategy execution. Include some illustrative examples in your response.
Explain how, if at all, the reward system in the organization ties incentives directly to achieving higher productivity and performance targets.
Explain the evaluation and feedback process used in your company to assess employee performance.
Identify the elements in the organization that affect how cultural change is implemented.
Describe the ethical model being used by the company.
Present your overall opinion of the organization’s corporate strategy approach. Is the strategy execution effort delivering the expected results? Explain and illustrate your conclusions.
Describe what specific actions have been taken to delegate authority to middle and junior managers and to create a sense of empowerment among employees. Explain and illustrate your answers.

Written Components:
Organization (16)
usage and mechanics (16)
APA elements (24)
Style (8)

64

Total:

300

Running Head: STRATEGIC ANALYSIS

1

STRATEGIC ANALYSIS 11

Strategic Analysis: Organizational & Competitive

By: Dawn Branzei

Business Tactics and Execution

Argosy University

May 1, 2013

Introduction

Owing to globalization, the business environments in which companies now operate have become excessively dynamic and competitive. The organizations have to ensure continuous improvement in their product offerings along with increased quality at economical prices to remain competitive in globalized marketplace. It is essential for the organization to gauge the changes that are occurring at the external environment to exploit the opportunities and mitigate the threats. The external environment scanning and adjusting the organization’s strategic goals to them is a significant process. This paper discusses the mission and vision statement of General Motors and its association with the business strategy of the organization. The external and internal factors and their influence on the company’s strategy are also discussed in the paper.

Mission, Vision and Value Statement

Mission Statement

The mission statement of General Motors is, “G.M. is a multinational corporation engaged in socially responsible operations worldwide. It is dedicated to provide products and services of such quality that our customers will receive superior value while our employees and business partners will share in our success and our stockholders will receive a sustained superior return on their investment” (Mission Statement 2013, p.1).

Vision Statement

The vision statement of General Motors is, “At GM, we are focused on a single global vision: To design, build and sell the world’s best vehicles. This powers the development of world-class products that are winning in the marketplace, and is helping to transform our business and fortify our balance sheet” (Powerful Vision, Powerful Strategy 2013, p.1).

Value Statement

The value statement of General Motors is, “GM is committed towards providing a better customer experience through changing the customer perception towards the adoption of environment friendly, quality and innovative automobiles” (Mission Statement, 2013).

The mission, vision and value statement of the organization are inter-related and focuses on the need of company to be innovative and environment friendly to sustain in the marketplace. The company also considers quality of the product provided to customers as a significant factor in deciding the market share and profitability of company. The mission and vision statement of the company represents the primary objective of the company to be the world’s best seller in terms of designing, developing and selling the automobiles in the market (Mission Statement, 2013). The company adopts a focused approach as reflected in the mission, vision and value statement.

The three statements could be analyzed to comprehend that company considers innovation and quality as the key to retain existing customers and attract new ones to remain competitive in market. The significance of delivering values to the customers is well-recognized by the company in its value statement and the company also provides due importance to environment-friendly vehicles that would be sustainable to the customers and would ensure long-term profitability for the company.

Strategic Goals of GM

The strategic goals of the organization are the foundation of its business model that is derived from the vision statement of the company. The three strategic goals of the company for year 2013 are;1. To optimize GM’s global footprint to develop vehicles that are best in the segment and are cost effective 2. To focus on fewer brand through leverage of the global resources in order to create increasingly compelling technologies and vehicles 3. To maximize revenue using a focused branding strategy that delivers the world-class automobiles to globalized market.

The strategic goals of the organization are derived from its mission and vision statement that clearly stated the focus of the organization to invest heavily in innovative technology to deliver enhanced value to its customers (Powerful Vision, Powerful Strategy, 2013). The vision statement of the company focused on designing, building and selling the best automobiles in the globalized market that the company would achieve through continuous innovation. The first strategic goal of GM is related to designing the vehicles that are preferred by customers across the globe, using the manufacturing facilities of GM scattered around the world such as U.S. and China. The company aims to develop vehicles that are superior in value and are cost-effective, therefore providing complete value to customers (General Motors unveils three years strategic growth plan , 2012).

The second strategic goal of the company also facilitates achievement of its mission and vision by enabling company to deploy advanced technologies and innovative designs that would not only create the best automobile but would also meet the ultimate objective of the organization to increase its profitability by offering superior products to customers. The company also aims to deploy a brand strategy that focusses on two or three products from the product line of company and promotes them throughout the world. This is driven by the mission statement of the company to ensure superior return to the company’s stakeholder through the enhanced profitability of organization. Overall, the strategic goals of GM are well-linked to the mission and vision statement of the organization. Despite of the strategic goals being driven by vision and mission statement of GM, there are some changes that the organization can incorporate in its strategic goals to better align them with their mission.

The strategic goals of the organization should include the environment-friendly factor of the General Motors that has been mentioned in their mission statement. The company should ensure that the production process become increasingly environment-friendly, thereby reducing the carbon footprint of the organization and emerging as an excellent industry example. Another change in the strategic goals should be an incorporation of the customer service statement. The organization defines the level of customer satisfaction such as 95% that they aim to achieve in a specified period of time through their business strategy.

External Factors and Influences

The external environment for the General Motors is assessed using PEST analysis of the automobile industry. This framework scans the macro-environment in which an industry operates and any changes in the environment influences the business operations and strategies of the organizations in that industry for worse or better.

PEST Analysis of General Motors

Political Factors – The political factors that influence the business strategies and operations of the company are the fuel and environment regulations in the countries it operates. In U.S., recently the Obama administration passed the bill limiting the sulfur amount in gas (Obama’s New Fuel Standards That Even Car Companies Love, 2013). This presents a favorable opportunity for automobile industry as this makes the emission standards uniform across the country, therefore, making it easier for automobile industry to design their products. However, the industry faces a significant challenge with the government implementing new policies for automobiles that requires nearly every technology and parts of automobile to be changed (Ashley, 2012). The lightweight structure and efficient engines are well-defined in the policy that could raise the costs associated with this change immensely.

Economic Factors – The 2007 global financial crisis impacted the automobile industry while General Motors demonstrated resilience to a certain level. However, with the economy recovering at slower pace, the organization is faced with a challenge to increase sale through developing cost-efficient automobiles that are of same or better quality. The industry is competitive in terms of cost-efficient cars that offer innovative features along with increased quality.

Social Factors – General Motors is a popular brand among customers that represents class, affordability and quality simultaneously. The company garners huge support from its customers across the globe and with the company growing in innovation and quality, the products of the organization are preferred by the customers.

Technological Factors – The automobile industry is embracing advanced technology to ensure innovation to remain competitive in market. The continuous innovation and launch of new features in the market represents a huge challenge to the organization. However, General Motors is proactive in technological innovation and therefore, keeps pace with the developments in industry.

Internal Factors and Influences

Competitive Position of General Motors

General Motors has competitive advantage in manufacturing. The organization has adopted several innovations in both the processes to ensure innovations. The organization deploys flexible manufacturing enabling power train facility to operate varied transmission or engine families on the universal machining lines. The flexible manufacturing has reduced the tooling and setup costs that are incurred during the changeover of product (GM Announces $250 Million for Flexible Manufacturing in Ingersoll Plant, 2013). Moreover, the organization has also implemented Video Variance Monitor, an advanced vision technology that facilitates quicker diagnose and faster resolution of the quality problems. These innovations in manufacturing process have caused cost savings across the organization, thereby enabling organization to have competitive advantage in terms of cost-efficiency in market.

Market Position

General Motors market position is continuously strengthening with the sales of Cadillac increasing by 50 percent overall, the sale of Buick increasing by 37 percent. The market share of the company increased to 18% in the first quarter of 2013, providing an affirmation of the organization’s robust marketing strategy and competitive position (Reed, 2013). The market position is further expected to enhance with the scheduled launch of Sierra and Silverado trucks in the second quarter of 2013.

Resource Strengths and Weaknesses

The strengths of general Motors enable it to exploit the opportunities external environment offers and mitigate the threats. The top three strengths of GM are popular brand names, large market share, and global experience. The organization has several brands that are self-sustained because of their popularity in the market. The organization also has global marketing programs that becomes a strength because of the intrinsic knowledge organization has on conducting successful marketing campaigns across the globe. The weaknesses of the organization include the reducing employee morale, lack of robust leadership and market share fluctuations. The organization ought to address its weaknesses to ensure that it retains its competitive advantage.

Focused Strategy

General Motors adopts the differentiation strategy by ensuring that the products are innovative and customer-friendly. The company has maintained its competitive advantage by offering the automobiles that are a representation of quality and innovation to its customers. The company launches new and innovative product features in the market with enhanced designs that not only increases the appearance of the automobile but also ensures enhanced functionality. General Motors focuses on the design and production of automobiles that are a combination of autonomous features and is planning to introduce semi-autonomous and fully-autonomous cars in future.

The organization competes in international market by comprehending the local culture and integrating cultural elements and local customer requirements in the features of their automobile. General Motors is an industry leader in China, recording highest sales of automobiles that demonstrate the success of organization in the international market (Annual Report 2012, 2012).

Conclusion

General Motors demonstrates a robust comprehension of strategic tools required for success and profitability of an organization. The company has successfully linked its vision and mission statements with its business model and strategic goals. The adoption of strategic goals driven by mission and vision statement has led to competitive advantage and enhanced marketing share for the company.

References

Annual Report 2012. (2012). Retrieved from General Motors.

General Motors unveils three years strategic growth plan . (2012, July 27). Retrieved April 30, 2013 from The Guardian: http://www.ngrguardiannews.com/index.php?option=com_content&id=93525:general-motors-unveils-three-years-strategic-growth-plan&Itemid=605

GM Announces $250 Million for Flexible Manufacturing in Ingersoll Plant. (2013, march 11). Retrieved April 29, 2013 from Auto Service World: http://www.autoserviceworld.com/news/gm-announces-250-million-for-flexible-manufacturing-in-ingersoll-plant/1002131280/

Mission Statement. (2013). Retrieved from General Motors: Retrieved April 29, 2013 from http://www.gm.com/company/investors/stockholder-information.html

Obama’s New Fuel Standards That Even Car Companies Love. (2013). Retrieved April 30, 2013 from CoExist: http://www.fastcoexist.com/1681720/obamas-new-fuel-standards-that-even-car-companies-love

Powerful Vision, Powerful Strategy. (2013). Retrieved April 30, 2013 from General Motors: http://www.gm.com/company/investors/corporate-strategy.html

Ashley, S. (2012, Nov 08). New Fuel Economy Regulations: A Major Stretch for the Auto Industry. Retrieved April 28, 2013 from General Electricals Ecomagination: http://www.ecomagination.com/new-fuel-economy-regulations-a-major-stretch-for-the-auto-industry

Reed, T. (2013, April 04). GM Has Good News/Bad News March. Retrieved April 30, 2013 from CNBC: http://www.cnbc.com/id/100616443

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