Organizations across multiple industries have experienced change related to internal and external influences founded upon behavioral theories. Short- and long-term organizational success requires leaders to distinguish connections between these influences and individual, group, and organizational behaviors. Organizational behavior reviews the usual suspects that influence organizational performance and sustainability, including, but not limited to, leadership approach and style, motivational methods and models, internal and external culture, individual behaviors, attitudes, and individual perceptions.
The purpose of this project is to explore these topics from the three specific layers related to organizations: the individual, the group, and the entire organizational system. The project will be a case study analysis of an organization. The analysis will include exploring the organizational modeling, the leadership theory used, and the organizational culture of the company in the case study. By examining an organization through the case study, you will better understand how the different aspects of organizational behavior manifest themselves within a company and how that influences the operations of the company. You will use this case study for this project:
The GM Culture Crisis: What Leaders Must Learn From This Culture Case Study
.
In this assignment, you will demonstrate your mastery of the following course outcomes:
For this project, you will analyze a real-world case study through the lens of organizational behavior, including at least cultural, diverse, motivational, and leadership model perspectives. You will identify these key components within the case study, using proper organizational behavior terminology, and discuss the impacts each appears to have within the organization itself.
Specifically, the following critical elementsmust be addressed:
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Case Study Analysis
Courtney Roberts
August 1,2023
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1. Evaluate Leadership Theory
1. Describe a leadership style used in the case study and why there was a shift in
leadership style throughout the case study.
The leadership style used in the case study seems to be characterized by a lack of
accountability, a hierarchical structure, and a focus on cost control over safety. This style is
evident from the reluctance to raise issues or concerns, the “GM Salute” phenomenon of
avoiding responsibility, conflicting messages from top management regarding safety and cost,
and a lack of urgency in addressing safety issues (Kuppler, 2023). The shift in leadership style
throughout the case study can be attributed to the crisis and public scrutiny faced by General
Motors (GM) due to the ignition switch recall. Initially, the leadership style appeared to be
reactive and focused on damage control, with a lack of emphasis on the underlying cultural
issues. However, after the release of the Volukas Report and Mary Barra’s appearance before
House and Senate Subcommittees, there was an attempt to address the culture problem and take a
more proactive approach to improve safety and organizational culture.
2. Explain the characteristics and decisions of management in the case study that help
explain the shift in leadership style.
The characteristics and decisions of management that help explain the shift in leadership style
include:
•
Reluctance to raise issues or problems: The culture of avoiding raising concerns
prevented the identification and resolution of critical safety issues, leading to a reactive
leadership style initially.
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•
Lack of accountability: The absence of a clear sense of responsibility and accountability
among employees and management allowed the ignition switch problem to persist for
over 11 years without proper resolution.
•
Conflicting messages from top management: The emphasis on cost control over safety
sent mixed signals to employees, leading to a culture where cost considerations were
prioritized, which hindered the prompt resolution of safety issues.
•
Proliferation of committees: The excessive number of committees and unclear decisionmaking processes contributed to a lack of ownership for decisions and allowed issues to
linger without effective action.
•
Inadequate communication and transparency: The lack of open communication and
transparency about safety concerns prevented employees from feeling comfortable
reporting issues, thereby hindering a proactive approach to problem-solving.
3. Identify the internal and external influences on the organization that may have
caused the shift in leadership style. Be sure to explain your choices.
Internal influences on the organization that may have caused the shift in leadership style include:
•
Public scrutiny and pressure: The ignition switch recall crisis received significant media
attention and public backlash, forcing GM to address the underlying cultural issues and
adopt a more proactive leadership style (Kuppler, 2023).
•
Findings from the Volukas Report: The independent investigation report highlighted
cultural issues within GM, compelling the organization to confront and address these
issues to prevent similar incidents in the future.
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•
Employee dissatisfaction and concerns: The internal culture of reluctance to raise issues
and concerns might have been challenged by employees who felt frustrated with the lack
of action on critical safety matters, leading to the need for a shift in leadership style.
External influences on the organization that may have caused the shift in leadership style
include:
•
Government regulations and oversight: The recall crisis attracted the attention of
government regulatory bodies, leading to increased scrutiny and pressure on GM to take
decisive action, including cultural transformation.
•
Customer perception and trust: The negative impact on GM’s reputation and customer
trust due to the recall crisis might have prompted the organization to prioritize safety and
adopt a more proactive leadership style.
4. Describe the relationship between a leadership style used by the organization in the
case study and the decision-making process.
The leadership style used by the organization, characterized by a lack of accountability,
reluctance to raise issues, and a focus on cost control over safety, influenced the decision-making
process in several ways:
•
Slow decision-making: The lack of urgency in addressing safety issues, as pointed out in
the Volukas Report, resulted in slow decision-making and a failure to take prompt action.
•
Lack of ownership: The proliferation of committees and unclear decision-making
processes contributed to a lack of ownership for decisions, hindering effective and
decisive action on critical issues.
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•
Conflicting priorities: The conflicting messages from top management regarding safety
and cost led to a decision-making process where cost considerations often took
precedence over safety, potentially compromising customer safety.
2. Assess Organizational Culture
1. Discuss the internal culture present within the organization. Be sure to utilize terms
relative to organizational behavior.
The internal culture present within GM, as revealed in the case study, appears to be characterized
by several negative aspects:
•
Reluctance to raise concerns: The culture of reluctance to raise issues or concerns created
an environment where employees were hesitant to speak up about safety issues.
•
Lack of accountability: The absence of a clear sense of responsibility and accountability
among employees and management allowed problems to persist without proper
resolution.
•
Bureaucratic decision-making: The proliferation of committees and ad hoc groups
resulted in a bureaucratic decision-making process that hindered prompt and effective
action (Kuppler, 2023).
•
Conflicting messages: The conflicting messages from top management regarding safety
and cost created confusion and ambiguity among employees.
•
Lack of transparency: The absence of open communication and transparency about safety
concerns contributed to a culture of silence and fear of repercussions.
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2. Identify specific examples from the case study that demonstrate the internal culture
present within the organization.
Specific examples from the case study that demonstrate the internal culture present within GM
include:
•
Reluctance to Raise Issues or Problems: Witnesses reported reluctance to raise concerns
in the GM culture, resulting in delayed actions on critical safety issues.
•
The GM Salute and GM Nod: Witnesses described the “GM Salute,” where responsibility
was avoided by pointing towards others, and the “GM Nod,” where agreement on actions
was given but not followed through (Kuppler, 2023).
•
Proliferation of Committees: The issue of the ignition switch passed through numerous
committees, leading to a lack of clear ownership and accountability for decision-making.
•
Conflicting Messages from Top Management: The emphasis on both safety and cost
control created conflicting priorities and confusion among employees.
•
No Sense of Urgency: Witnesses expressed frustration with the lack of urgency in
addressing safety issues promptly.
3. Insights and Conclusions
1. Explain why the leadership style(s) and internal culture of the organization
complement each other or do not complement each other.
The leadership style and internal culture of the organization are incongruent. The
leadership style exhibited in this context is marked by a dearth of accountability, the presence of
conflicting messages, and a prioritization of cost control over safety. These factors have
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facilitated the perpetuation and flourishing of negative elements within the internal culture,
including a hesitancy to voice concerns and the prevalence of bureaucratic decision-making. The
lack of a robust and proactive leadership strategy played a role in the continuation of an
unfavorable organizational culture, resulting in significant ramifications, such as the occurrence
of the ignition switch crisis.
2. Explain whether or not the changes in leadership style or internal culture of the
organization influenced each other.
The changes in leadership style and internal culture of the organization appear to have
influenced each other to some extent. The crisis and public scrutiny forced GM to shift its
leadership style from a reactive one to a more proactive approach that acknowledged the
underlying cultural issues. However, it is evident from the case study that the changes in
leadership style were not sufficient to bring about significant cultural transformation. The
internal culture, characterized by reluctance to raise concerns and lack of transparency, still
persisted to some degree even after the leadership style shift.
3. Explain how the leadership styles and internal culture of the organization may have
influenced the behavior of the employees within the organization. You could
consider providing specific instances or examples from within the case study to
support your response.
The leadership style and internal culture of the organization may have influenced the behavior of
the employees within GM in the following ways:
1. Reluctance to Raise Concerns: The culture of reluctance to raise issues or concerns,
coupled with a lack of accountability from leadership, likely discouraged employees from
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reporting safety issues they observed. The aforementioned conduct became apparent
when engineers recognized the issue with the ignition switch, yet neglected to elevate it
to higher echelons within the organization. They viewed it as a matter of customer
freedom rather than a matter of safety.
2. Bureaucratic Decision-Making: The proliferation of committees and the lack of clear
decision-makers within the organization may have contributed to a sense of
powerlessness among employees. The case study mentions instances where proposed
solutions were discussed but ultimately died in committees or ad hoc groups, leading to
frustration and a feeling of futility among employees (Kuppler, 2023).
3. Conflicting Messages from Top Management: The conflicting messages from top
management about the priority of safety versus cost may have influenced employees’
decision-making. This could have resulted in situations where employees prioritized cost
considerations over safety concerns, as the emphasis on cost control was ingrained in the
organizational culture.
4. Lack of Transparency and Non-Retaliation Policy: The internal culture of nontransparency and a reluctance to classify issues as safety-related might have led
employees to hesitate when reporting potential safety issues. Fear of retaliation, either
explicitly or implicitly, could have hindered employees’ willingness to speak up,
perpetuating a culture of silence.
5. Lack of Sense of Urgency: The absence of urgency in addressing safety issues, as noted
in the case study, could have been mirrored in the behavior of employees responsible for
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investigating and addressing problems. Without a clear sense of urgency from top
leadership, employees may not have prioritized safety issues as they should have.
In conclusion, the leadership style and internal culture of GM appeared to reinforce
negative behaviors within the organization. A reluctance to raise concerns, bureaucratic decisionmaking, conflicting priorities, lack of transparency, and a lack of urgency in addressing safety
issues were all evident within the organizational behavior. The case study underscores the
importance of aligning leadership styles with a healthy and proactive organizational culture to
prevent crises and foster a culture that prioritizes safety, transparency, and accountability at all
levels of the organization.
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References
Kuppler, T. (2023). The GM Culture Crisis: what leaders must learn from this culture case study.
Switch and Shift Website. Retrieved from;
https://web.archive.org/web/20161013135112/http:/switchandshift.com/the-gm-culturecrisis
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