Answer to the 2nd question of the scoop-it team project
|Scooped by GM Group 1|
Cultural approach (by Robin)
GM was the largest car manufacturer in 1980 when Toyota appeared. Then, they progressively lost market shares. In 2009, they almost went bankrupt due to the financial crisis but were saved by a loan given by American government. In order to survive from bankruptcy and save money, GM decided to change its culture in different ways.
First, GM promoted centralizations of functions (e.g : consolidated its purchasing offices from 25 to 1 in the U.S) and removed any redundant process. Then GM replaced its product board and automotive strategy board with an 8-man decision team reporting directly to the CEO in order to boost decisions. GM wanted to give its employees greater accountability and responsibility on the same model as Toyota. Moreover, former CEO Fritz Henderson (who resigned in 2009) wanted to build a better relationship with employees and customers by asking the top management to visit operational centers, dealers and customers. But this decisions to change met some resistances and some criticizes. Some criticized the top down approach of GM and said that GM has a long history of mistrust towards its employees (contrary to Toyota). It means that if GM wants to be successful in this change, they need to empower their employees the way toyota did, where workers played an active part in the change.
Actually, the challenge for GM was to start the cultural change and build a company ready to face the issues of the 21st century. But where Toyota (the global leader) tries to replace robots by employees and trust their expertise, the culture of GM is to tell the employees what to do and not trust them.