In regards to internal and external factors that can significantly influence the four functions of management, include such items as globalization, technology, diversity, ethics and innovation. Furthermore, all of these items pay an important role in the dominance of General Motors in the automotive industry. GM has changed manufacture attitudes to concentrate on some strategic priorities those being to become common, envision lean and compete fast, participate on a worldwide footing, cultivate the business and as a rule significantly keep their attention on the finished goods. General Motors is determined to be committed to a lean and familiar single, global manufacturing approach (Automotive Intelligence News, 2003). The external factor of globalization is a major factor in today’s business world. Globalization additionally adds to the factors of cultural diversity and cultural ethics as it pertains to business climate, culture and organization.
Likewise, even in the US General Motors deals with the issues of diversity and values based of the many cultures that live within the country. Diversity can be both a help and a hindrance to the four function of management, in that when cultural diversity is utilized correctly it aids in all phases of business. However, if both the countries or the individual workers feel that their culture or beliefs are being looked down upon or are demeaned this can lead to serious repercussion.
The same ca be said concerning the ethics each culture holds management must walk a fine line to ensure no vilification or no indignity occurs. Globalization needs a firm touch and a steady hand in the first planning, which entails what countries a company wants to build and sell their goods to, while maintaining a presence in that country. What value the product will bring, the cost of materials, taxes or tariffs, and if the people of those countries have a need, the cost, and the desire to purchase their vehicles. As to organizing, in globalization GM must ensure that local customs will not be pushed aside and must they maintain a proper level of respect and decorum in dealing with the local population and their cultural identity.
Manager must organize by creating a dialog with other countries on GM’s products, explaining the utilization of each countries environmental assets and capital, showing how that being a partnering country with GM will help their country and its people. They must correspondingly incorporate the concept of co-design and systems approach, during the organization function to ensure each country has the belief that they are truly partners with GM. General Motors is currently in the process of restructuring their Global Vehicle Engineering organization. The reason they are doing this is to enhance cross-system integration and to bring more coherent implementation across vehicle platforms. They are also further addressing the functional safety and compliance in its vehicles worldwide (GM News, 2014).
Whereas this reorganization moves GM away from long-established regional authority toward an organization built on global functions. As to the role of leading, globalization brings with it a different set of problems and requirements. In General Motors situation the leading function of management, in the terms of what the role intention is remains the same and can be defined as the focus of guiding the activities of personnel with motivation. However, the challenges of doing so on a global scale are daunting because of issues in cultural difference, in ethics and diversity. Managers must have a working knowledge of the country’s culture, its ethical stances, and language differences both verbal and nonverbal. The controlling function of management within globalization again comes with its own set of issues that need to be overcome.
Likewise, to be able to establish standards, then measure the performance in contrast to those standards and make corrective changes to those standards and plans that have been determined ineffective (Merchant, 1982). In a global setting put additional meaning to the controlling function of management. Management for General Motors have been successful in the endeavor and proof of this can be seen in how they continue to rank near or at the top the list of vehicles sold worldwide. GM is closing the gap on Toyota lead in sales, because of changes in how they are using the control function of management to correct the situation. Since, GM began to renovate its vehicle roster into one of the keenest and newest in the automotive industry from one of the eldest and more outdated ones (Jie, & Horie, 2014). So any and everyone can see how globalization as an external factor affects a company such as General Motors in its operations of the four functions of management. Technology in this case should be considered both and external and internal factor that can affect a company such as GM.
Since, technology deals with not only information and enterprise systems to run a business, it also deals with the creation of new products and equipment to be use in their cars and trucks. General Motors in being such a large global company have an extensive enterprise system to deal with employees, customers, security, and data collection to enable it to run both effectively and efficiently on a global scale. However, technology in the creation and advancement of products goes hand in hand with innovation. We can see how technology is part of innovation, in the way GM addresses the idea of a fully electric car that can go 200 miles between charges. Additionally, the connection of technology and innovation is seen in General Motor’s electric and gas hybrid car the Chevy Volt.
GM similarly has an all-electric car that can go 82 miles on a charge called the Chevy Spark (The Denver Post, 2013). General Motor’s innovations created a need for better technology in electric car batteries, charging systems. They also created a need for electric charging facilities for people who are traveling on long trips, which are still under research as to cost, viability, and the possibility. All of this innovation leads to technology to design and build components that will be needed to compete in this sector of the industry. What is more, all four functions of management are thoroughly affected by globalization, diversity, ethics, innovation and technology as these elements play a crucial role in the structure and running of any business in today world economy.
Automotive Intelligence News. (2003). GM’s Global Manufacturing System – A System To Build Great Cars and Trucks. Retrieved from http://www.autointell.com/News-2003/January-2003/January-2003-1/January-03-03-p6.htm
GM News. (2014). GM Restructures Global Engineering for Cross-System Integration. Retrieved from http://media.gm.com/media/us/en/gm/news.detail.html/content/Pages/news/us/en/2014/Apr/0422-global-eng.html
Jie, M. & Horie, M. (2014). Toyota Beats GM in 2013 as 10 Million Vehicles Seen. Retrieved from http://www.bloomberg.com/news/2014-01-23/toyota-beats-gm-vw-in-2013-car-sales-sees-3-growth-this-year.html
Merchant, K. (1982). Controlling Function of Management. Retrieved from http://sloanreview.mit.edu/
The Denver Post. (2013). General Motors working on 200-mile electric car, exec says. Retrieved from http://www.denverpost.com/business/ci_24109259/general-motors-working-200-mile-electric-car-exec