During the 1998 General Motors strike, Mary Barra was appointed as the internal communications director to bridge the communication gap between union workers and the management. While this approach still remains popular, certain limitations exist such as the assumption that the subordinate is strictly motivated by money and reward (Dave Paper). Not only will this leadership style mobilize employees to increase engagement, feel more connected to the organization as well as generate new innovative ideas but it has proven to be a significant catalyst in connecting to new and diverse growth markets. She approaches problems with what she calls action orientation and the belief that you can find a solution. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Christopher T. Hatto was named vice president, global business solutions on Jan. 1, 2020. All these must be carried out by the changing agents or the leaders. During Mary Barras tenure, GM had to navigate the U.S. markets historic shift from cars to SUVs and the rise of technologies such as electric vehicles and vehicle sharing. This is a factIn approaching every GM assignment as if she would be doing it for the rest of her life, she was able to stay focused on the present. Firstly, establishing the need for urgency refers to performing market analysis by determining the problems and opportunities. During the 1998 General Motors strike, Mary Barra was appointed as the internal communications director to bridge the communication gap between union workers and the management. She explains that leaders can continue to improve if they collect accurate information about the current reality. Please read the case General Motors from Chapter 14 Leadership: Styles and Behaviors Page: - 469 given in your textbook Organizational behaviour: Improving performance and commitment in the workplace (6th ed). He also continues on stating that the result of change is, ironically, stability. On her watch, GM invested millions in electric vehicles and self-driving cars to keep the company profitable in todays agile world. Why wouldnt you want to have a better role in your business? In her quest to redesign GM, Mary Barra drawn on her deep understanding of both human and engineering dynamics. Coding Artist. Mary Barra was a game changer right from the start. There were 30 different platforms, and inefficiency and poor quality ran rampant. The first model is John Kotters 8 steps, which was published in 1995 in the Harvard Business Review. In addition, we must be willing to improve the communities where we live and work by. When leading an organization, especially one with more than 180,000 employees, you need to have a clear and simple message. How did they do it? Moreover, since the new General Motors wanted to revive its innovativeness, it is recommended for the company to expose people to new aspects of their tasks and opportunities for collaboration (Vermeulen, Puranam and Gulati, 2010). Her communication style, which involves calling meetings impromptu to discuss issues and find solutions without delay, is another important leadership skill to learn from Mary Barra. In a globalized economy, you are not only facing competition from your neighbors down the block, but from innovators all over the world. On the contrary, the Style theory describes that employees will perform better depending on the adopted style of their leader (Porter, Smith & Fagg, 2006). The second phase is the neutral zone, which is a confusing state between the old reality and the new. She believes that leaders should see each worker as a capable human being, not just a part of the assembly line. A characteristic of the path-goal theory also involves a participative leadership, where the leaders consult with the followers and take their ideas into account for decision-making. While the early leadership theories focused on the leaders individual characteristics and behavior, later theories explored the duties of the followers and the environment contributing to the success of a leader. Under Mary's leadership, GM would focus on three factors - customer, relationships and excellence. This made her the first woman to run one of the Big Three automakers (GM, Ford, and Fiat Chrysler) in the US. Herein, the company faced many barriers and resistance to the changes that were taking place. Dont step away from your career based on what might happen.. Then, the vision must be communicated by using multiple channels to constantly communicate this vision. This is a factHer extensive knowledge of GMs operations and her ability to deal with people positively helped her remove the company out of the crisis. And if a solid foundation is being built in the present, then the future will generally take care of itself. The way how the leader obtains information or the way how the leader makes a decision is different for each type. At GM, the goal is to transform the world one leader at a time. It is, in fact, its mantra. A common problem with business leaders is that they like to pride themselves on their originality, intelligence and problem-solving skills. However, while the Kotters 8 steps outline the management of an organizational change, the Bridges Transition Model suggests that change will not be successful if transition doesnt occur. This model implies ensuring the economic and social security of workers but pays less attention to their motivation and personal development (Christiana, 2018). Based on this analysis, it shows that the former CEO was not apt for changeability. Different leadership styles are taken into consideration, from participative leadership, supportive and achievement oriented leadership to path-goal and transformational leadership. Therefore, General Motors has been focusing on developing new high technology products for these eco-friendly automobiles. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Organizations are expected to experience changes due to the instability and inconsistency of the environment. Mary Barra is a resilient and an exceptional leader, who does whatever it takes to help her company achieve success. Financially, GM leaders and employees are committed to building its market share, revenue, earnings and cash flow with the goal of paying back its loans by 2010. Mary Barra Click To Tweet. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Blue Cross Blue Shield of Michigan Executives, Strategic Staffing Solutions Jobs Near Me, Blue Cross Blue Shield of Michigan Jobs Near Me, Children's Hospital of Michigan Jobs Near Me, American Axle & Manufacturing Jobs Near Me, Production Group Leader jobs at General Motors, Senior Software Engineer jobs at General Motors, Sales And Marketing Internship jobs at General Motors, Manufacturing Engineering Internship jobs at General Motors, Software Developer jobs at General Motors, Product Solution Manager jobs at General Motors, Software Design Engineer jobs at General Motors, Data Analyst Internship jobs at General Motors, Finance/Accounting Analyst jobs at General Motors. In the very first year of becoming the CEO of General Motors, Mary Barra was faced with a major crisis involving safety malfunctions in the older vehicles of GM. Mary Barra has developed a new set of core values that reflect the way in which the companys objectives and those of their customers are essentially woven together. If not, you have some fixing to do. (2019) and Answer the following Questions: Assignment Question(s): 1. And no matter what business you go into, you only win when your customer says you win. The automotive industry is one of the largest economic sectors in the world by revenue and encompasses a broad range of organisations involved in designing, manufacturing, marketing and selling of motor vehicles, their parts and related services. The newly-appointed CEO Ed Whitacre exercised his authority by drawing up a new management blueprint to improve accountability and responsibility for key market performance within General Motors (Luft, 2009). Long before she became CEO, Mary Barra was known to be open and honest when dealing with other staff. As leaders, we have an obligation to act responsibly and courageously for people and the planet, because our actions have long-term effects on the generations that come after us. Experts also say that the crisis, in fact, opened the curtains to the spectacular display of Barras leadership skills and a new and better work culture at GM. Furthermore, they are an inspirational figure, where they can influence their followers in the course of events. This was considered as the biggest failure of an industrial company in US history (BBC website- GM ready to file). In this role, he is responsible for global leadership and oversight for external reporting, technical accounting matters, development of new accounting policies, internal controls and the consolidations process. With this communication flair, Mary Barra was able to initiate a communications strategy where communication moved both ways on the hierarchy ladder so that meltdowns could be tackled before they materialized. Additionally, society has become relatively materialistic and driven by status quo. Sales Operations as CFO for U.S. Chevrolet, Buick and GMC.
Before joining GM, Hatto was a vice president at Goldman Sachs and the corporate controller and chief accounting officer at Tower Automotive. Equileaps 2018 Global Report on Gender Equality noted that GM is one of just two global businesses that have pay equality in top, middle and bottom bands as well as overall no gender pay gap across the company. They crave for leaders who encourage them to open up, be honest, and always listen to their issues. As a result, General Motors was assigned a charismatic, transformational leader to guide it through change, solve complex problems, and build for the future. Share your thoughts in the comments below! Barra's leadership was instrumental to GM's renewed success because she was transparent, gave people a voice, and lived out her values. The newly-appointed CEO, who previously ran the AT&T telecoms company, was brought in as chairman by the Obama administration. If youve mainly worked in one function, consider trying out another role to expand the breadth of your experience and expertise. The next step is empowering the staff by removing organizational policies and structures that inhibit the achievement of the vision. In general, the leadership behavior could be classified into two categories. In each of her previous roles she learned crucial new skills. They inspire . An extraordinary example of the remarkable leadership skills of Mary Barra is how she put General Motors back on track from filing bankruptcy to regaining its stature of being one of the most important auto companies in the US in just four years. It is predominantly engaged in the designing, manufacturing and marketing of cars, trucks, and other automobile parts in North America, Europe, Latin America, and Asia Pacific regions. The thought of deciding on the simplest solution or the too obvious choice causes otherwise smart decision makers to bypass the right option. To export a reference to this article please select a referencing stye below: Content relating to: "Automotive Industry". Finally, a term used to characterize brilliant forms of influence, exceptional, gifted, and even heroic is known as charismatic leadership. Those who think they have . The fact that Mr. Whitacre reorganized and restructured departments three days after taking over demonstrates that he is both transformational and path-goal oriented. If you provide the customer what they want and deserve, they shall come. According to Bridges, management and employees would feel anxious, disoriented, resentful, and self-protective (Bridges, 1995). On her watch, GM invested millions in electric vehicles and self-driving cars to keep the company profitable in todays agile world. With the increasing interest of the environment worldwide specifically in the US and Europe, General Motors has taken a firm stance in Corporate Social Responsibility in all its business practices. And its more than OK to listen to the people you lead. This move was once viewed as unimaginable, since it was one of the worlds leading automakers. Mary Barra embraced the challenges she faced, found solutions, and successfully evaded the glass cliff on her way. GMs product development process was in disarray when Mary Barra took over as product chief in 2011. He is also responsible for reporting financial results to the companys senior leadership and the Board of Directors Audit Committee.
Hatto joined GM in 2007 as the assistant controller for Securities and Exchange Commission reporting. With a passion for helping others and remarkable business acumen, CEO of General Motors is a role model for many. A. Fritz Henderson could also have been path-goal oriented, where he would direct the subordinates, tell them what to do, and provide appropriate guidelines. A., & Wesson, M. J. Everybody does a better job when theyre able to balance. In the case of GM, the former chief executive, Mr. Fritz Henderson was asked to step down from the position. None of the information on this page has been provided or approved by General Motors. You Have to Tap Into Your Customers' Subconscious to Keep Them Coming Back. Even though the new GM decided to get rid of Hummer, Saturn, Pontiac, and Saab, it still held on to the most profitable brands such as Chevrolet, Cadillac, Buick, and GMC. They lead because they seek to serve a higher purpose and use their unique gifts, talents, and skills to make a positive impact on their organizations and the people they encounter. They need to also depend on the subordinates, which can be achieved by encouraging teamwork, empowerment, and acceptance of certain failures (Porter, Smith and Fagg, 2006). Acting as the first woman CEO of a major automaker, Mary Barra's career began with GM in 1980 as a General Motors Institute co-op student. In the case of General Motors, the causes of change were economic conditions on a global scale and unavailability of financial resources. This is a factShe credits her can-do attitude in part to her engineering background. In fact, its essential. Do you have a 2:1 degree or higher? Also, while an organization is in neutral zone, creativity should be encouraged. While rising through the ranks in GM, she moved through communications, human resources, operations, and management. We would like to show you a description here but the site won't allow us. The most appropriate style of leadership is flexible which depends upon the subordinates' preferred style, the situation and the task facing the leader. When it comes to General Motors, you might say that CEO Mary Barra is ride or die. She then introduced the speak for safety program that encourages employees to report issues without the fear of punishments to encourage accountability and responsibility. This is a factThroughout her career she expanded the range of what shes good at, starting with a foundation in engineering, and quickly acquiring skills in quality control, production, human resources, product development, and supply chain management. In this role, he manages a global team charged with optimizing GM business processes to improve service quality, improve customer experience and reduce complexity and costs.
In addition to this role, he remains chief accounting officer, a position hes held since 2018. I am always action-oriented because theres always a way to move forward. With a passion for helping others and remarkable business acumen, CEO of General Motors is a role model for many. Additionally, there was a major decline in sales in major business segments. Mr. Henderson had worked along the former GM president, Mr. Rick Wagoner, throughout his career. In the spring of 2005, Rick Wagoner faced another in a long line of crises. I want to put this painful experience permanently in our collective memories. In the years since, Barra has staked her reputation on transparencywhile pushing to modernize GM with electric and self-driving cars. Due to the ongoing global recession, GMs business would be significantly affected in its revenues, results of operations, cash flow and financial condition. SWOT represents strengths, weaknesses, opportunities, and threats. A successful change is accompanied by the redistribution of power within the company so that the decision-making is moved towards shared power (Porter, Smith and Fagg, 2006). In addition to logical reasoning, you need to be attuned to what people care about their fears and aspirations. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Some distinguishing attributes possessed by the charismatic leader are confidence, power, success, and influence. For example, the EU recently restricted the usage of heavy metals due to environmental issues. Would love your thoughts, please comment. According to Brown (1998, p.6), Organizational culture refers to norms, attitudes, values, and beliefs that conduct the behavior of members of an organization with each other and with external stakeholders. When Pamela Fletcher, VP of Innovation at General Motors, was tasked with developing a successful electric car, she likely put the affiliative leadership style through its paces. General Motors employs more than 200,000 people worldwide. In this case, transition is defined as the ending of something, which is the first phase. All Rights Reserved. According to Madslien (2009), This could pose serious problems for GM, which may now find it hard to find not only a replacement for the charismatic car guy. Hacker From Heart. Earlier in his career he held financial leadership roles at Ernst & Young and Arthur Andersen.
He graduated from Michigan State University in 1992 with a Bachelor of Arts in accounting and is a certified public accountant. An expert in managing risk, leading by example and taking advantage of conflict for the benefit of her organisation, there is plenty to learn from Mary Barra's leadership style. In other words, the same group of people will behave differently according to the leaders style. On the other hand, transformational leadership theory is centralized on the development of commitment and motivation among followers. Marry Barra embodies the very essence of a 21st century global leader, and she is a leader whom I have come to truly admire. Amongst some of these benefits are medical plan including dental, investment options, life insurance, paid holidays and discounts on GM products and services. Is everything as simple and laser-focused as it can be? They are tasks-oriented leadership behavior and people-oriented leadership behavior. Talent will open worlds. Based on our data team's research, Mary Teresa Barra is the General Motors's CEO. Additionally, GM understands the effectiveness of performance when personal life and work are linked. For example, they are required to clear the path by removing roadblocks so that the subordinates know which way to go (Daves Paper). In 2016, he joined U.S. Subscribe to our newsletter for the latest news straight into your inbox. GM uses zero crashes, zero emissions to help all employees understand the focus of the organization. According to Porter, Smith and Fagg (2006, p.301), The change agent should be at the center of any change process, and one of the most important jobs for him or her to do is to develop a good relationship between all the parties involved in the change process. Economically, since 2008, the global automotive industry has been severely affected by the major global credit crisis where both North America and Europe encountered recession. Despite that this company had such an achievement, environmental turbulences such as the global recession in 2009 forced GM to declare bankruptcy. This is a factIts important to surround yourself with people who will challenge you and tell you when and why you are wrong. A new company financed by the US Treasury stepped in and purchased most of GMs assets and trademarks. Leadership lessons from Marry Barra teach us how important it is for leaders to act responsibly for people and the society. Both transactional and transformational are equally important to help increase organizational competitiveness in an era of global competition (Mohamed & Rafiuddin, 2010). Mary Barra believes that the need to listen increases when you become a leader. Good ideas can come from anywhere. Required fields are marked *. I wish people would stop telling me thatyou cant have a successful career and be a successful parent. In order to evaluate the radical change undergone by General Motors, both internal and external factors leading up to the change must be identified. Using Bridges Transition Model, the radical change that occurred in General Motors can be evaluated. But it is hard work that will enable you to accomplish more than you ever imagined and will help you make a dent in the universe. Furthermore, he is also involved in The Business Council. GM can benefit from the increasing usage of the internet, because more and more consumers can access its website and view products more easily. For this reason, its critical that your business projects be rooted in the purpose of solving a problem that is so personal and dear to your heart that you will sacrifice almost anything to achieve your goal. Several change management theories describe the process of developing a planned approach to the changes taken place in an organization. At 18, she started working for GM as a way to help pay for her college tuition. Ethical Leader Mary Barra, CEO of General Motors is changing the culture of one of the largest automotive companies applying ethical leadership. When he accepted the post, he announced that sweeping management changes needed to be made at GM (Luft, 2009). Copyright 2003 - 2022 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. More importantly, it acted quickly and and realized that current leadership talent did not have the capabilities to deal with the radical change. In conclusion, General Motors was able to identify their disparities and firmly decided to change the organization in order to accomplish its goals and objectives. This is a factThe real world is filled with leaders who worked their way up from obscurity to earn millions running huge corporations. We need to find the opportunity not to do everything, but to do the important things. Every year, GM's chief diversity, equity and inclusion officer presents a review of DEI to the Board. Free resources to assist you with your university studies! Leadership itself is both personal and business. They may even have had to find themselves adopting the role as a transformational leader. Mary Barra is a role model for many. In 2013, Hatto became chief financial officer (CFO) of Customer Care and Aftersales. Then, the implications of strategies can be identified (Porter, Smith and Fagg, 2006). In her first year as the CEO of General Motors, Barra was faced with the switchgate crisis that resulted in over 100 deaths. Its largest market is in the U.S, followed by China, Brazil, the UK, Canada, Russia and finally Germany. However, leaders cannot accomplish a successful change on their own. In this manner, not only would his body language be viewed, but also would he be able to display emotions. It is important to first know who your customer is: understand their questions, needs, and concerns to best market and cater to them. This is a factMary Barras expertise, experiences, and leadership skills helped shift GMs gears to boost profits and continue to become a successful automobile company. It means working to improve the communities where we live and work by.. In essence, it aims to end the days when engineers thought they knew what buyers wanted more than the buyers themselves did. The reasons why and how changes occur can only be understood if an internal and external analysis of the company is performed. Mary Barra comes across as a genuine, caring, and authentic human being. 0:00. General Motors then entered the second phase, the neutral zone, of the Bridges Transition Model. Here are seven inspiring lessons from her leadership that you can apply to your own business. This in turn caused unstable oil prices, decreases in employment rate and decrease in consumer spending. Shes keen on political discussions and shares an undying passion for gadgets. The best leaders are not in the business for personal glory or iron-fisted control. Once General Motors was out of the neutral zone, the company was able to indulge in the new beginnings that have been much anticipated for. Consolidating gains is the seventh step. Its OK to ask for help. To be an effective leader, you need to understand every aspect of your business, so you can see how the different parts connect. Our academic experts are ready and waiting to assist with any writing project you may have. Speech is power: speech is to persuade, to convert, to compel. Ethical values of General motors & Leadership Style, Organizational Culture and Ethics of Barra and Iger Marry Barra has set a code of conduct for the GM by her democratic and transformational leadership styles and these code of conducts are the essentials for every employee of the organizations. Mary Barra Click To Tweet. But its not going to get smaller with time. Barra refused to shirk the companys responsibility, conducting an internal probe that resulted in the firing of 15 employees and instating new policies that aimed to prompt workers to flag problems, which permanently altered the company culture. As a result, GM walloped Tesla by rolling out moderately priced, long-range electric vehicle. Moreover, he had a vision to recreate General Motors and put passion and energy into everything. The biggest lesson I learned, and I take it to everything I tackle now, large or small, inside of work and outside: If you have a problem, youve got to solve it. This is a factNot only does she pull in huge stacks, she also is the first U.S. woman to be elected the CEO of an automobile manufacturing company. The emphasis is based on goal clarification, the setting of tasks and objectives, and organizational rewards and punishments. James R. Healey. In fact, the success of your business relies on it. We may earn a commission from links on this page. A caring leader is intuitive, is aware of the small things. Digital Advertising: The Evolution and Revolution. We also have an Inclusion Advisory Board (IAB) that is comprised of internal and external leaders and is led by our Chair and CEO. The new CEO stated, Mr. Is. We're here to answer any questions you have about our services. Mary Barra is humble and collaborative, eager to give credit to her team rather than steal the limelight herself. Mary Barra, Jeff Bezos Leadership Style & Principles, Speech is power: speech is to persuade, to convert, to compel. Learn more about General Motors in Washington D.C. and our employees, facilities, dealers, suppliers, investments, operations and more. Mary Barras career is the epitome of a perfectly executed expanding hedgehog play. However, three aspects of his leadership remain relevant today.. He immediately recognized the importance of organizational development by changing its structure and the people within it. Digital Dandy. General Motors needed an outsider, who had no attachments, as the leader. Much importance must be given during this stage, because the change might be jeopardized if the organization decides to prematurely escape. However, if the neutral zone is completed successfully, many opportunities for creative transformation can be presented. Mary Barra states that focusing on customers needs allows GM to serve them diligently and win more customers over time. With all the changes that GM was experiencing, Whitacre realized the workforce was rattled and immediately addressed it by sending a companywide email. As a result, GM walloped Tesla by rolling out moderately priced, long-range electric vehicle. A., LePine, J. Theres no substitute for hard work. 5:00. He can be categorized as being a transactional leader, where a clear structure must be set in place and subordinates are required to just follow. She has worked at GM for the past 38 years, and in that period, held different managerial positions that have shaped her leadership style. On managing large companies%3A %22Complex organizations have many common challenges%22. The designated leaders take a crucial role in the neutral zone. It is the most widely used analytical management technique. The approach believes that leadership can be learned and developed through training and observations. GM was a sinking ship and the prime reason was red-tapism and lack of innovation. Unfortunately, the recession in the global economy harmed GMs business by adversely affecting its revenues, results of operations, cash flows, and financial condition. In Good to Great, Jim Collins writes about the Hedgehog Model, the intersection of three essential factors for success: (1) what you are passionate about; (2) what you are really good at; and (3) what will reward you economically for your hard work. Study for free with our range of university lectures! The change agent is also known as the leader of the organization. White is the most common ethnicity company-wide. The data presented on this page does not represent the view of General Motors and its employees or that of Zippia. By many accounts, Mary Barra attributes her success at GM to keeping the companys interests and not her own career the focus of her attention. The increase in the global truck market experienced a growth during 2004 and 2008 and will continuously have a steady growth for the future. While women business leaders may approach their roles with contrasting management styles and goals, their leadership shares one commonality. An extraordinary example of her leadership skills is how she put GM back on track from filing bankruptcy to regaining its stature of being one of the most important auto companies in the US in just four years. These five forces include competition from substitutes, entrants, power of suppliers, power of buyers, and established rivals. Paul Jacobson joined General Motors as executive vice president and chief financial officer in December 2020.
Prior to joining GM, Jacobson served as CFO of Delta Air Lines, Inc., a company he helped transform into one of Fortune magazine's Top 50 Most Admired Companies for six consecutive years. The first is primarily based on the physical factors such as appearance, physique, height, etc. This is known as the Traits theory, which has three broad types of traits. That an almost supercentenarian company can change the world. She led GM out of it by being honest and dealing with the problem head-on. On March 31, 2010 Whitacre decided to send out a companywide email to ease the anxiety and anticipation that had been developing during the change. Mary Barra, Chairman and CEO, General Motors. This way, youll know when and why you are wrong, so you can take new steps for your companys improvement. General Motors new management team will focus more on leadership duties and responsibilities to meet their objectives to design, build and sell the worlds best vehicle. How do you take charge and let go? And its more than OK to listen to the people you lead. This is a factIf you are willing to address others in a problem-solving manner, when there is doubt or confusion over a decision or direction being taken, then you will experience more collaboration and more positive energy. This includes the operation of the factories and business offices, usage of renewable and recyclable materials, production of fuel-efficient cars and trucks, and less emission of greenhouse gases (GM website). Throw on your comfortable work shoes and get stuck in in some way! Vice President, Global Head of Government Affairs. This is a factIf employees are treated with dignity and respect, they feel empowered. Mary Barras decision to take time away from her busy job, to attend the Harvard Business School program, is one indication of the importance Barra places on learning and development. Lets propel your leadership to the next level! Mary Barra Click To Tweet. After she became the VP of global development, she eliminated redundant executives involved in decision making to make the decision-making process swift. Zippia gives an in-depth look into the details of General Motors, including salaries, political affiliations, employee data, and more, in order to inform job seekers about General Motors. 1.2 Leadership in General Motors. It means creating workplaces where every employee is empowered to contribute to his or her full potential. She prioritized transparency and accountability things that were absent in the culture of GM for a long time. Given that General Motors is considered to be one of the largest employers in the world, the benefits offered are just as grand. Overcoming the challenge made her gain much respect from the entire GM team. This website or its third-party tools use cookies, which are necessary to its functioning and required to achieve the purposes illustrated in the cookie policy. The most common ethnicity among General Motors executive officers is White. This is a factAdditionally, Mary Barra believes that the companys success greatly depends on relationships established internally and outside the company. According to Porter, Smith and Fagg (2006, p.76), All leaders are considered as decision-makers, and their effectiveness can be determined by examining the quality of decisions taken over time. CEO Whitacre alongside other directors and managers had to work together as a team in order to carry out the changes successfully. In replace of purchasing automobiles, consumers can use public transportation such as buses, trains, and bicycles. According to Galvin, Balkundi and Walkman (2010, p.477), Subordinates who view a leader as charismatic will tend to see the leader and his or her vision as core their own identity and will be willing to sacrifice so as to benefit the collective and achieve the goals and vision of the leader. With a passion for helping others and remarkable business acumen, Mary Barra is a role model for many. The companys liquidity position along with its operating performance was negatively affected by the industry conditions. It means creating workplaces where every employee is empowered to contribute to his or her full potential. Palmer suggests that resistance to change can be managed by communication to the followers, participation from everyone involved, negotiation between the leaders and the subordinates, and explicit or implicit coercion (Palmer, 2006). This is a factPutting the customer first means more than giving in to every customer demand. For example, the provision of benefits, high wages, and health insurance are employees' motives to do their job. This is vital to ensure that commitment, trust and mutual respect develop. As GMs Human Resources department head in 2009, Mary Barra changed its bureaucratic image to a human face with emphasis on personal accountability and responsibility. It may seem clich, but this is one of the most valuable lessons that she learned from her parents that she is now using to be an exceptional CEO. Having the ability to transcend your personal agenda and to create value for your company and your employees is a daily challenge. She told them that she was open to listening to all factors that inhibited high-quality cars production. Mary Barra Click To Tweet. In an interview with Quartz, Barra shares her thoughts on the importance of seeking out new opportunities and the myth about working moms that she detests. Shortly after she took the job, the company was rocked by a global scandal over a defective ignition switch that led to at least 124 deaths, eventually forcing the company to recall 2.6 million cars. Home Blog Leadership Mary Barra Leadership Style & Principles In The Spotlight. GM CEO Mary Barra said the recall crisis of 2014 forever changed her leadership style Richard Feloni Nov 14, 2018, 5:39 AM Mary T. Barra, Chairman and C.E.O., General Motors Company speaks. Reflecting critically on your own behavior can help you identify how you may inadvertently be contributing to your organizations problems. Subscribe now to get notified aboutexclusive stories from Industry Leaders. Her communication style, which involves calling meetings impromptu to discuss issues and find solutions without delay, is another important leadership skill to learn from Mary Barra. If you need assistance with writing your essay, our professional essay writing service is here to help! Can ChatGPT Replace the Google Search Engine? A transformational leader can also be qualified to be charismatic and vice versa. While various theories exist, a successful leader should know their industries, have astute insights, and are willing to induce the changes necessary to their organization (Van Wart, 2010). These actions help her promote the culture of accountability, and the staff understands the importance of responsibility at the workplace. At the same time, they should discern which feedback is worth taking action on. She has been the first female CEO in the automobile industry because she did her best according to her purpose. Secondly, the traits reflected on the persons abilities including intelligence, fluency of speech, and knowledge. This should be inspiring for women everywhere even in a traditionally male-dominated industry, a womans hard work and perseverance can result with her at the helm in a 21st-Century society. Your companys success depends on how well you satisfy your customers. The major competitors include Toyota Motor Corporation, Honda Motor Co., Ford Motor Company, Mazda Motor Corporation and several other automakers (Datamonitor- GM). Is your communication clear, honest and unequivocal? Id urge women not to cut off their career branches too early. Her leadership has been credited with saving GM from "catastrophe" during . By exceling in each of her many roles, Mary Barra paved the way to make an ever-increasing economic contribution at GM. For example, a change in the organizational culture would take place in this stage. Satya Nadella Leadership & Life Lessons, Chip & Dan Heath Made To Stick Book Review. Whether a leader is born or made was the controversial question that arose in the past. Inevitably, during the restructuring and reorganizing, employers were fearful for their jobs. The General Motors executive team is 25% female and 75% male. More importantly, they need to be proactive in their attitude to change. Like Mary Barra, tell them who you are and what you are thinking. Mary Barra recommends asking, Did you get what you needed from this meeting? Another question Mary Barra suggests asking consistently is, Whats your opinion?. Other essential components are the sociological and environment factors. However, the leaders are expected to guide, encourage, and support their subordinates in achieving the goals. Additionally, GM also provides vehicle safety, security and information services through GM OnStar. Here are further demographic highlights of the leadership team: The General Motors executive team is 25% female and 75% male. Make sure theres no fear in the organization, and people feel comfortable to speak up. When people feel safe in their work environment, when they feel that its safe for them to show up and fully be themselves, theyre more productive. Since a transformational leader instills the vision onto the subordinates, he or she can do so in a charismatic manner. Since being appointed CEO in January 2014, GM has experienced impressive positive guidance under Mary Barra's ethical style. By closing this banner, scrolling this page, clicking a link or continuing to browse otherwise, you agree to the use of cookies. Once this is done, the organization must empower the staff which help support the need for change and provide motivation. It means creating workplaces where every employee is empowered to contribute to his or her full potential. . Its OK to admit what you dont know. View Comments. With this communication flair, Barra was able to initiate a communications strategy where communication moved both ways on the hierarchy ladder so that meltdowns could be tackled before they materialized. Yet, another leadership theory is that of Vroom and Yettons decision-making model. 12% of General Motors's management is Hispanic or Latino. It takes a detailed analysis of the very company structure. At this point, the need for recruiting new staff untainted by old habits might be fitting for the organization (Senior and Fleming, 2006). In the first phase, the organization realized there were major discrepancies between its goals and the current system of operation. We have also discussed about the stakeholders, the management and leadership styles and the decisions and sacrifices made by them for the betterment of the organization.Task A: Strategic Analysis Question 1 (a): External Analysis For conducting an extenal analysis of General motors, we are using PESTEL analysis and Five Forces model. She notices a change in the mood of someone and will enquire after their wellbeing with open, generative questions which recognize the individual and what is happening for them in the moment. Its OK to ask for help. Even though restructuring of the company was necessary, the transition and resistance to change were posed challenging. Its how your people will know that you have their back and that you will stand by them. In this world of unbounded opportunity, we all have the opportunity to be successful. The success of the transition of an organizational change is mainly dependent upon the leadership of senior management (Porter, Smith & Fagg, 2006). Up to the late 1940s, it was believed that leadership qualities were innate primarily by men or passed along from generation to generation. On which leadership principles did she lead General Motors? High barriers to entry such as large capital allow the threat of new entrants very low-risk. GM CEO Dan Akerson's top 9 leadership lessons. General Motors CEO Mary Barra - Leadership style analysis Individual assignment - Critical essay by Biljana Stanisic Linnaeus University, Vxj, Sweden Master program, 120 credits The leadership style at General Motors was bureaucratic, and given the nature of their operations and demands for complying strict safety procedures, the foundation of the work environment revolved around strict rules and precise procedures. Even though there was a resistance to change, GM had to swiftly evaluate the situation and devise new strategies on how to move forward. This can be fostered by providing training in the techniques of discovery and innovation, encouraging experiment, embracing losses or setbacks, and looking for opportunities to brainstorm new answers to old problems (Bridges, 1995). Leadership lessons from Marry Barra teach us how important it is for leaders to act responsibly for people and the society. "Diversity is all about the pipeline. USA TODAY. Your email address will not be published. Effective leaders are always willing to bring order into a chaotic world. By July 10, 2009, the companys name changed from General Motors Corporation to General Motors Company. 2022 Industry Leaders Magazine. On the contrary, Mr. Ed Whitacre, who replaced Fritz Henderson, is more of a transformational and charismatic leader. Furthermore, he wants to give people more responsibility and authority deeper in the organization and hold them accountable for their doings (Luft, 2009). The data on this page is also based on data sources collected from public and open data sources on the Internet and other locations, as well as proprietary data we licensed from other companies. Moreover, consumers can also choose from other automobile products that are not GM-related making the threat of substitutes high-risk. The best advice I ever received came from my parents, who encouraged me to work hard and pursue my early love of math. Their stories, inspiring and instructive, reveal a drive to succeed, a willingness to buck convention and, of course, an unshakable work ethic. She loves reading books and articles on business, economics, corporate law, luxury products, artificial intelligence, and latest technology. If you want to be an effective leader, you need to excel in communication. You also need to do the work, because hard work beats talent if talent doesnt work hard. Your email address will not be published. Mary Barra Click To Tweet. While General Motors was able to fast-track the change process with the right leadership in place, certain actions could have been done differently to maximize efficiency and minimize resistance. Early on in Mary Barras career, her mentor ingrained in her the importance of understanding and appealing to both the intellectual and emotional side of her team. At the end of the day, all businesses are about people first because the only way we can build genuinely successful businesses is to build lasting relationships inside and outside the company. This type of leader constantly sells the vision to his followers. Looking for a flexible role? Historical evidence can justify that many effective leaders seem to be born with innate aptitudes. Because that problem is going to get bigger in six months. Toyota Motor Corporation is well-known Japanese Multinational Corporation. But listening to them is just as essential. In the year ended 2009 the estimated worldwide market share was recorded as 11.6%. Save my name, email, and website in this browser for the next time I comment. According to Palmer (2006, p.50), Variety of pressures on managers: the environment, discovery of deviations from standards, new desires and visions of the future or the fundamental nature of organizations themselves. Its OK to admit what you dont know. 64% of the management team is White. Mary Barra describes this goal just as succinctly but with a slightly different focus: This is all about winning customers one at a time.. The rise of the internet worldwide has affected not only the automobile industry, but many others as well. Tales of climbing the ladder from clerk to CEO arent reserved for the plots of Hollywood movies such as 9 to 5 or Jerry Maguire. Since this automaker was an iconic symbol of the American auto industry, it was necessary to preserve it. Therefore, anyone can become a leader. During the transition of the old GM to the new GM, Mr. Ed Whitacre was designated as the CEO. Once an audit of external and internal influences has been conducted, a framework such as SWOT analysis can be used to link an organizations resources and capabilities. Its better to over-explain something than to leave room for misunderstanding. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. Before and during her helm, General Motors encountered various crises, including the recall of 30 million cars due to faulty ignitions. However, concerns such as the fact that Mr. Henderson was clinging on to power in the name of stability were expressed. Communication is at the core of effective leadership. The most appropriate style of leadership is flexible which depends upon the subordinates preferred style, the situation and the task facing the leader. In the last phase also known as refreezing, the changes are stabilized. While these pressures for change are constant, advantages of a changing organization are better integration, teamwork, common values, and mindsets. Also, since it has an extensive geographic presence in 207 locations, General Motors is able to spread its risks across the global markets. Even though leaders of General Motors are still trying to implement stability, the transition leading up to the radical change could have been more efficient and effective. Ralph Waldo Emerson, I want that tension in a constructive way to make sure we evaluate things from every angle. In her speech at the Wharton People Analytics Conference, she said, really focusing on engaging with people, and making sure you do win their hearts and minds and how you empower them, I think has been key.. She depicted her commendable skills of problem-solving and led GM out of the puddle with its reputation intact. Moreover, it has created a business environment based upon mutual respect, responsibility, and understanding. *You can also browse our support articles here >. When she was the head of Product Development, she let engineers know that she wont tolerate any more crappy cars. Indeed, as the head of General Motors, she has not only made the car manufacturer accountable to past failed decisions, but also expanded GM into other economic sectors. Consequently, this would boost the demand for GMs products. This is a factEducation will open doors. Mary Barra, Seven Leadership Insights To Ignore At Your Own Risk, And no matter what business you go into, you only win when your customer says you win. Mary Barra is a role model for many. Finally, there is a high rivalry existing among the competitors of General Motors. Successful companies find a balance between prioritizing customer needs and meeting business goals. How will your employees relate to you and your vision if they know youve never gotten your hands dirty? GM listens to customers intently, and never compromises on quality and safety. Some of them were that of admiration while many were also of condemnation and callous criticism. The first phase is identified as unfreezing, where it involved dismantling the existing mindset of the people. Amongst the many definitions of a leader, Bryman (1992, p. 3) describes The leader is characterized by a strong drive for responsibility and task completion, vigor and persistence in the pursuit of goals, venturesomeness and originality in problem solving, drive to exercise initiative in social situations, self confidence and sense of personal identity, willingness to accept the consequences of his or her decisions and actions, readiness to absorb interpersonal stress, willingness to tolerate frustration and delay, ability to influence other peoples behavior and the capacity to structure social interaction systems to the purpose at hand. Essentially, as a transformational, charismatic, path-goal oriented leader, Mr. Whitacre will try to ensure a smooth and successful transition for GM as a company and for the employees. Customers can choose not only from other automobile manufacturers, but also from many automobile dealers that exist. The leader designates a specific task, and the subordinate is fully responsible to carry it out despite the circumstances. Here are four leadership lessons from Mary Barra that every aspiring leader. As leaders, they are responsible in having a clear sense of direction in order to keep the organization moving on track towards the agreed objectives and goals. This refers to rewarding those who engage positively with the change. This concept is based on a relational contract, where subordinates willingly contribute beyond the requirements. Dont expect to be a boss that sits behind a big desk all day in a comfy chair. Moreover, there has been a worldwide demand for hybrid electric vehicles. A type of leadership that follows the style theory is transactional leadership, based upon contingency where reward or punishment is given depending on the subordinates performance. A dispatch from the world of modern work. The main headquarters is located in Detroit, Michigan where over 200,000 people are currently employed globally. Workaholic. From the beginning, General Motors has always been affected by the law and government regulations. Mary Barra, Everybody does a better job when theyre able to balance. Furthermore, the automaker was slow in moving away from the production of gas-guzzling SUVs when consumers were looking for more fuel-efficient vehicles (BBC-Website, 2009). The strong brand portfolio spanning the global market allows GM to gain a competitive advantage. He managed to guide his followers in how to achieve the goals and objectives set in place for the future GM. A transformational leader creates a vision and eventually persuades his or her followers to buy in in order to transform the performance of the organization (Porter, Smith & Fagg, 2006). I spend the time to get to know them, their families, and whats important to them. Even more so, they knew that restructuring and layoffs were going to take place; therefore, they lost their sense of security and allowed anxiety to take over. The organizational model of General Motors is custodial. General Motors (GM), one of the worlds largest automakers, was initially founded by William Durant in 1902 and held a remarkable presence in the automobile industry for almost a century. by Colquitt, J. Do you really want to manage a business and become somebody like that? More importantly, the global automotive industry is extremely competitive, where General Motors are facing strong competitors. Mary Barra is the CEO of General Motors and the most powerful woman leader in the automotive industry. For example, how do you cuts costs and increase revenues? Its important to surround yourself with people who will help and challenge you to be the best. General Motors not only has a strong brand portfolio, but also has a wide portfolio of regional brands like Buick, Cadillac, Chevrolet, GMC, Hummer, Pontiac, Saab, and Saturn. Here's How. A great business leader needs to be strong, dedicated, and sincerely care about the company and its employees. He was the former Chairman and CEO at AT&T from 1990-2007. Customer satisfaction would be at the center of everything. In other words, this company believes in empowering its employees. While the new GM managed to leave the neutral zone of the change process, it was prolonged because of the resistance to change. When things go wrong, Mary Barra says, you can either bemoan the past, or you can say, What am I going to do about it?. Every leader who wants to make a positive difference must reconcile this contradiction. However, the crisis only made her stronger. Situational factors influence which method is considered the most pertinent. Additionally, it will continue to press on for structural cost reduction and a healthier balance sheet with a significant lower debt. You need to show your employees how the vision you have for your business relates to their everyday tasks. Your associates want to know about you, how you approach a problem, what is important to you. Inclusion is crucial: all employees should feel they have a chance to make an impact. In addition, remember that many workers want a leader who is authentic and has integrity. How to define the leadership style of Mary Barra, who has been ranked #6 in Forbes Power Women list 2020? Without one, the front line will not get or understand the message. In decision-making, this leader follows Group procedure, where he shares the problems with followers and seeks consensus agreement. 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