Furthermore, they are an inspirational figure, where they can influence their followers in the course of events. Workaholic. If you want to influence and inspire your team, you need to practice empathy and transparency, and understand how others perceive you, through your verbal and non-verbal cues. Washington, D.C and St. Paul, M.N. Based on our data team's research, Mary Teresa Barra is the General Motors's CEO. In replace of purchasing automobiles, consumers can use public transportation such as buses, trains, and bicycles. 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. They have been accepted and become the new norm. 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. Barra says the best advice is not in a far-off place. But with Mary Barras outstanding leadership skills, she was able to weather the challenges and steer GM to be one of todays largest and most successful automobile manufacturers in the world. 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. While the path-goal theory of leadership is similar to the Vroom and Yettons model, many differences exist. Throw on your comfortable work shoes and get stuck in in some way! This interview is part of How Well Win, a project exploring the fight for gender equality at work. Mary Barra is a resilient and an exceptional leader, who does whatever it takes to help her company achieve success. General Motors CEO Mary Barra - Leadership style analysis Individual assignment - Critical essay by Biljana Stanisic Linnaeus University, Vxj, Sweden Master program, 120 credits In her first year as the CEO of General Motors, Barra was faced with the switchgate crisis that resulted in over 100 deaths. Much importance must be given during this stage, because the change might be jeopardized if the organization decides to prematurely escape. One of the most noteworthy leadership lessons from Mary Barra to learn is the skill of lifelong learning and exploring. At the same time, they should discern which feedback is worth taking action on. 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. Even though restructuring of the company was necessary, the transition and resistance to change were posed challenging. Every year, GM's chief diversity, equity and inclusion officer presents a review of DEI to the Board. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Moreover, consumers can also choose from other automobile products that are not GM-related making the threat of substitutes high-risk. Here are four leadership lessons from Mary Barra that every aspiring leader. Its a work in progress. The Porters five forces, PESTLE and SWOT analysis, and internal resources can be used to conduct an environmental scanning; hence, objectives and strategies can be formulated and used to implement the changes. Mary Barra, Jeff Bezos Leadership Style & Principles, Speech is power: speech is to persuade, to convert, to compel. Its OK to admit what you dont know. Digital Dandy. Barra's leadership was instrumental to GM's renewed success because she was transparent, gave people a voice, and lived out her values. Mary Barra uses her energy to find solutions to problems rather than directly fighting them. 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. Share your thoughts in the comments below! 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. On her watch, GM invested millions in electric vehicles and self-driving cars to keep the company profitable in todays agile world. How to define the leadership style of Mary Barra, who has been ranked #6 in Forbes Power Women list 2020? Mary Barra Click To Tweet. Henderson had done a remarkable job in leading the company through an unprecedented period of challenge and change (General Motors BBC article, 2009). Mary Barra Click To Tweet. A caring leader is intuitive, is aware of the small things. The increase in the global truck market experienced a growth during 2004 and 2008 and will continuously have a steady growth for the future. Mary Barra - Leadership Style & Principles 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. The emphasis is based on goal clarification, the setting of tasks and objectives, and organizational rewards and punishments. In this manner, not only would his body language be viewed, but also would he be able to display emotions. She has been the first female CEO in the automobile industry because she did her best according to her purpose. During the crisis, this policy helped her get candid responses from employees, which were instrumental in dealing with GMs problems. Maybe its your turn? Mary Barra, Everybody does a better job when theyre able to balance. Long before she became CEO, Mary Barra was known to be open and honest when dealing with other staff. Home Blog Leadership Mary Barra Leadership Style & Principles In The Spotlight. Based on this analysis, it shows that the former CEO was not apt for changeability. Alfred P. Sloan, Jr.'s best-seller, My Years With General Motors, is being read by many businessmen as bible and blueprint rather than biography. This is a factIts important to surround yourself with people who will challenge you and tell you when and why you are wrong. She led GM out of it by being honest and dealing with the problem head-on. Millions of cars were recalled, several employees were fired and Barra had to testify against the Congress. Its OK to ask for help. 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. General Motors has 155,000 employees, of which 83 are in a leadership position. Follow Carrie Ann on. At 18, she started working for GM as a way to help pay for her college tuition. The rise of the internet worldwide has affected not only the automobile industry, but many others as well. . 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. 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. For Mary Barra, having the talent is great but it isnt enough if you want to change the world. You Have to Tap Into Your Customers' Subconscious to Keep Them Coming Back. Sources of data may include, but are not limited to, the BLS, company filings, estimates based on those filings, H1B filings, and other public and private datasets. Mary Barra learned at a young age in life that there is no substitute for hard work. Do you really want to manage a business and become somebody like that? If you need assistance with writing your essay, our professional essay writing service is here to help! Like Mary Barra, tell them who you are and what you are thinking. 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. Given that General Motors is considered to be one of the largest employers in the world, the benefits offered are just as grand. Is your communication clear, honest and unequivocal? Talent will open worlds. And its exactly why you ought to work hard to show you care. 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. Additionally, it will continue to press on for structural cost reduction and a healthier balance sheet with a significant lower debt. The newly-appointed CEO, who previously ran the AT&T telecoms company, was brought in as chairman by the Obama administration. Mr. Whitacre serves on the Board of the Institute for International Economics and the Boards of Burlington Northern Santa Fe, Exxon Mobil and the PGA Tour (Datamonitor-GM). Read more interviews with industry-leading women here. She prioritized transparency and accountability things that were absent in the culture of GM for a long time. 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 fact that Mr. Whitacre reorganized and restructured departments three days after taking over demonstrates that he is both transformational and path-goal oriented. In the case of General Motors, management and employees were confined to the traditional way of the companys operations. The most appropriate style of leadership is flexible which depends upon the subordinates' preferred style, the situation and the task facing the leader. Last but not least, the change must be linked to organizational performance and leadership (Palmer, 2006). A new company financed by the US Treasury stepped in and purchased most of GMs assets and trademarks. In regards to the bargaining power of the buyers, the risk is high. With a passion for helping others and remarkable business acumen, CEO of General Motors is a role model for many. Lets propel your leadership to the next level! Facebook to Acquire the Waze App for $1BN? To export a reference to this article please select a referencing stye below: Content relating to: "Automotive Industry". In fact, its essential. The late Jack Welch CEO of General Electric from 1981 to 2001, probably isn't the ideal model for 21st-century executives. On the contrary, Mr. Ed Whitacre, who replaced Fritz Henderson, is more of a transformational and charismatic leader. He also continues on stating that the result of change is, ironically, stability. By July 10, 2009, the companys name changed from General Motors Corporation to General Motors Company. 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. Also, while an organization is in neutral zone, creativity should be encouraged. In the spring of 2005, Rick Wagoner faced another in a long line of crises. The mountain Im willing to die onis anything thats right for my family. 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. On which leadership principles did she lead General Motors? Study for free with our range of university lectures! 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. Its better to over-explain something than to leave room for misunderstanding. Herein, the company faced many barriers and resistance to the changes that were taking place. Several change management theories describe the process of developing a planned approach to the changes taken place in an organization. Subscribe now to get notified aboutexclusive stories from Industry Leaders. 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. 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. Businesses must adopt a strong customer-first strategy if they are going to truly meet customer needs and create amazing experiences. In general, the leadership behavior could be classified into two categories. SWOT represents strengths, weaknesses, opportunities, and threats. She also deals with the sources of the problems directly to ensure that there is no repetition of the circumstances. General Motors may also be known as or be related to General Motors, General Motors Co, General Motors Company, General Motors Corporation, General Motors Foundation, Inc. and general motors powertrain. General Motors has 155,000 employees, of which 83 are in a leadership position. An internal audit includes the organizations human, financial and other resources which contribute to supporting its strategies. Ralph Waldo Emerson, I want that tension in a constructive way to make sure we evaluate things from every angle. By exceling in each of her many roles, Mary Barra paved the way to make an ever-increasing economic contribution at GM. At 18, she started working for GM as a way to help pay for her college tuition. Even though Whitacre might be somewhat nave in the time frame of product development amongst other areas, he strategically designates other people to overlook the areas he lacks in knowledge. The second step, ensuring there is a powerful change group to guide the change can be performed by creating team structures to help drive the change and making sure the teams have sufficient power to guide the change. We would like to show you a description here but the site won't allow us. Toyota Motor Corporation is well-known Japanese Multinational Corporation. Historical evidence can justify that many effective leaders seem to be born with innate aptitudes. It means creating workplaces where every employee is empowered to contribute to his or her full potential. Situational factors influence which method is considered the most pertinent. 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. As a result, they work better, which is beneficial for the company. Organizations are expected to experience changes due to the instability and inconsistency of the environment. How did they do it? 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. Her leadership style is an inspiration for industry leaders in every sector. Several pressures such as economic conditions, competition, government intervention, technology, resource availability, and people can cause change (Porter, Smith & Fagg, 2006). She made customer safety and transparency a priority over costs. Furthermore, he wants to give people more responsibility and authority deeper in the organization and hold them accountable for their doings (Luft, 2009). 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. However, management differs from leadership in a number of perspectives (Mobley, Wang & Fang). He managed to guide his followers in how to achieve the goals and objectives set in place for the future GM. 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. Successful companies find a balance between prioritizing customer needs and meeting business goals. It is important to first know who your customer is: understand their questions, needs, and concerns to best market and cater to them. Therefore, anyone can become a leader. Additionally, they also want leaders who treat them with respect, empathy, and fairness. Just like Bridges, this phase is also accounted as the hardest to overcome. Copyright 2003 - 2022 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. None of the information on this page has been provided or approved by General Motors. Her gig,inspecting hoods and fender panels of the Pontiac Grand Prix, turned out to be the first step in a lifelong career with the manufacturer, culminating in Barras appointment as chief executive in 2014. 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. Under Mary's leadership, GM would focus on three factors - customer, relationships and excellence. With a passion for helping others and remarkable business acumen, Mary Barra is a role model for many. Employees not only were safe from negative reaction for reporting issues - they would be rewarded. On the other hand, transformational leadership theory is centralized on the development of commitment and motivation among followers. Required fields are marked *. by Colquitt, J. Consider making social medias a place where your employees can connect with your thinking. Both transactional and transformational are equally important to help increase organizational competitiveness in an era of global competition (Mohamed & Rafiuddin, 2010). In fact, its essential. 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. Think of past incidents around the world's largest carmaker, Toyota, and its handling of the recall of 8 million Prius hybrid cars. 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.. For example, how do you cuts costs and increase revenues? Everybody does a better job when theyre able to balance. More importantly, it acted quickly and and realized that current leadership talent did not have the capabilities to deal with the radical change. The reasons why and how changes occur can only be understood if an internal and external analysis of the company is performed. 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). Then, the vision must be communicated by using multiple channels to constantly communicate this vision. They may even have had to find themselves adopting the role as a transformational leader. 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. Since this automaker was an iconic symbol of the American auto industry, it was necessary to preserve it. The first phase is identified as unfreezing, where it involved dismantling the existing mindset of the people. Free resources to assist you with your university studies! 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. This is a factShe has been CEO of General Motors for just three years, but already there is a mountain of lessons in how she has managed not only to survive but to thrive in one of the highest-profile positions of any global business leader not to mention one of the loftiest perches for any female executive. 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. General Motors employs more than 200,000 people worldwide. In fact, the success of your business relies on it. 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). The first is primarily based on the physical factors such as appearance, physique, height, etc. I spend the time to get to know them, their families, and whats important to them. 1.2 Leadership in General Motors. During this phase, people are not ready or comfortable to welcome the new beginnings. Here's How. GM CEO Dan Akerson's top 9 leadership lessons. At this point, the need for recruiting new staff untainted by old habits might be fitting for the organization (Senior and Fleming, 2006). Ethical Leader Mary Barra, CEO of General Motors is changing the culture of one of the largest automotive companies applying ethical leadership. If not, you have some fixing to do. 11% of employees are Black or African American. But its not going to get smaller with time. This way, youll know when and why you are wrong, so you can take new steps for your companys improvement. Also, since it has an extensive geographic presence in 207 locations, General Motors is able to spread its risks across the global markets. Moreover, it has created a business environment based upon mutual respect, responsibility, and understanding. Make sure theres no fear in the organization, and people feel comfortable to speak up. Clear-cut communication increases the likelihood that people will comprehend and take action on whatever youre asking from them. There would be transparency within the company. This is a factPutting the customer first means more than giving in to every customer demand. He then held subsequent regional controllership positions responsible for Latin America, Africa, the Middle East, and General Motors International Operations. Speech is power: speech is to persuade, to convert, to compel. You need to show your employees how the vision you have for your business relates to their everyday tasks. The companys liquidity position along with its operating performance was negatively affected by the industry conditions. The GM official website states that the company has a new global operating structure, a leaner and more streamlined leadership team, and a restructured Board of Directors (GM Website). This made her the first woman to run one of the Big Three automakers (GM, Ford, and Fiat Chrysler) in the US. Although Mr. Whitacre automatically sent out a companywide email when the company was in turmoil, it was not necessarily effective. According to the news article GM ready to file for bankruptcy, GM, once the largest company in the world, has been losing market share since the early 1980s (2009). With a passion for helping others and remarkable business acumen, CEO of General Motors is a role model for many. When it comes to General Motors, you might say that CEO Mary Barra is ride or die. Furthermore, he is also involved in The Business Council. This refers to rewarding those who engage positively with the change. Our academic experts are ready and waiting to assist with any writing project you may have. In the case of General Motors, the causes of change were economic conditions on a global scale and unavailability of financial resources. 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. Another similarity to the Vroom and Yettons model is that the path-goal oriented leader will also vary in his or her approach depending on the situation. The best advice I ever received came from my parents, who encouraged me to work hard and pursue my early love of math. We're here to answer any questions you have about our services. However, concerns such as the fact that Mr. Henderson was clinging on to power in the name of stability were expressed. As a result, there would be an adverse effect on vehicle pricing and market share. View Comments. 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. Mary Barras career is the epitome of a perfectly executed expanding hedgehog play. Secondly, the traits reflected on the persons abilities including intelligence, fluency of speech, and knowledge. 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. Mary Barra Leadership Style & Principles In The Spotlight. It was the economic value she created for her company that led to her own financial and career advancement. Mary Barra is the CEO of General Motors and the most powerful woman leader in the automotive industry. Porters five forces of competition framework can be used to analyze the intensity of competition and the level of profitability (Grant, 2005). In the first phase, the organization realized there were major discrepancies between its goals and the current system of operation. In the commencement speech she delivered at Stanford Graduate School of Business in 2016, she said, 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. When asked for advice on how to get ahead, Eleanor Roosevelt was fond of saying, Do one thing every day that scares you. If I could offer some advice to my younger self, this idea of embracing new and different opportunities would be a good place to start. The third type covers a wide range of personality characteristics such as conservatism, self-confidence, dominance, and emotional control (Bryman, 1992). Mary Barra recommends asking, Did you get what you needed from this meeting? Another question Mary Barra suggests asking consistently is, Whats your opinion?. While these pressures for change are constant, advantages of a changing organization are better integration, teamwork, common values, and mindsets. It means creating workplaces where every employee is empowered to contribute to his or her full potential. A great business leader needs to be strong, dedicated, and sincerely care about the company and its employees. 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. Rather than dealing with issues in a controlling manner, she always turns them into opportunities. The second phase is the neutral zone, which is a confusing state between the old reality and the new. Firstly, establishing the need for urgency refers to performing market analysis by determining the problems and opportunities. Finally, a term used to characterize brilliant forms of influence, exceptional, gifted, and even heroic is known as charismatic leadership. Yet, another leadership theory is that of Vroom and Yettons decision-making model. To be an effective leader, you need to understand every aspect of your business, so you can see how the different parts connect. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Thirdly, developing a vision can be carried out by providing focus for change. Unfortunately, the recession in the global economy harmed GMs business by adversely affecting its revenues, results of operations, cash flows, and financial condition. 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. Subscribe to our newsletter for the latest news straight into your inbox. Using Bridges Transition Model, the radical change that occurred in General Motors can be evaluated. 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. For example, they are required to clear the path by removing roadblocks so that the subordinates know which way to go (Daves Paper). Amongst some of these benefits are medical plan including dental, investment options, life insurance, paid holidays and discounts on GM products and services. While we have made attempts to ensure that the information displayed are correct, Zippia is not responsible for any errors or omissions or for the results obtained from the use of this information. Additionally, society has become relatively materialistic and driven by status quo. The leader designates a specific task, and the subordinate is fully responsible to carry it out despite the circumstances. In addition, remember that many workers want a leader who is authentic and has integrity. Its largest market is in the U.S, followed by China, Brazil, the UK, Canada, Russia and finally Germany. However, if the neutral zone is completed successfully, many opportunities for creative transformation can be presented. 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. 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). 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. They talk and speculate about you anyway. Inclusion is crucial: all employees should feel they have a chance to make an impact. Your email address will not be published. The first model is John Kotters 8 steps, which was published in 1995 in the Harvard Business Review. Similarly, another model of change that was developed in the earlier days is that of Lewins. After she became the VP of global development, she eliminated redundant executives involved in decision making to make the decision-making process swift. The thought of deciding on the simplest solution or the too obvious choice causes otherwise smart decision makers to bypass the right option. 5:00. I am always action-oriented because theres always a way to move forward. The employee data is based on information from people who have self-reported their past or current employments at General Motors. In the case of GM, the former chief executive, Mr. Fritz Henderson was asked to step down from the position. The new GM left the government holding 60% of the companys equity (Clark, 2009). (2019) and Answer the following Questions: Assignment Question(s): 1. 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. Most of us are guilty of needlessly complicating business with complex spreadsheets, fancy jargon or far-sighted business plans. Here are further demographic highlights of the leadership team: Executive Vice President and Chief Financial Officer. Additionally, GM also provides vehicle safety, security and information services through GM OnStar. She then introduced the speak for safety program that encourages employees to report issues without the fear of punishments to encourage accountability and responsibility. The Great GM Mystery. The Chief Executive Officer at GM, Mr. Fritz Henderson, was replaced by Mr. Edward Whitacre in 2009. The success of the transition of an organizational change is mainly dependent upon the leadership of senior management (Porter, Smith & Fagg, 2006). 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. GMs product development process was in disarray when Mary Barra took over as product chief in 2011. Most of the regulations are associated with the environment and concerns for safe automobiles. Learn how you can help create a productive, creative, and compassionate work culture. They are tasks-oriented leadership behavior and people-oriented leadership behavior. A., & Wesson, M. J. If you want to know more or withdraw your consent to all or some of the cookies, please refer to the cookie policy. Leadership lessons from Marry Barra teach us how important it is for leaders to act responsibly for people and the society. At General Motors, diversity is crucial to our success. When she isnt writing she prefers reading. 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. From the beginning, General Motors has always been affected by the law and government regulations. According to Bridges (1995, p.41), Communications help to keep people feeling included in and connected to the organization. A common frustration in meetings is when the presenter reads a presentation, observed Mary Barra. Organizational change is usually provoked by some driving force such as decrease in productivity and services, substantial cuts in funding, major new markets and clients, etc (Barbara and Fleming, 2006). And no matter what business you go into, you only win when your customer says you win. As CEO, Barra has faced plenty of challenges. In order to evaluate the radical change undergone by General Motors, both internal and external factors leading up to the change must be identified. Explore Our Leadership Structure | General Motors Leadership Team "We have the ambition, the talent and the technology to create a world with zero crashes, zero emissions and zero congestion." Mary Barra // Chair and CEO USA TODAY. 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). 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. For example, a change in the organizational culture would take place in this stage. 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. Mary Barra is the first female CEO of General Motors-in fact, the first female CEO of any major auto manufacturing company. Self-made. Marry Barra embodies the very essence of a 21st century global leader, and she is a leader whom I have come to truly admire. GameStop undergoes makeover as 8 board members leave, Leadership and 10 Great Leaders from History. Alternatively, he could have done a video conferencing with all the employees worldwide. 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. Dont expect to be a boss that sits behind a big desk all day in a comfy chair. Your email address will not be published. There were 30 different platforms, and inefficiency and poor quality ran rampant. How GM's Mary Barra Does It The car company has rebounded under her leadership. PESTLE analysis is a framework comprised of political, economical, social, technological, legal, and environmental components. What leadership skills are most essential for CEOs to have in a crisis? Mary Barra is a role model for many. Dont step away from your career based on what might happen.. This represents an opportunity for General Motors to capitalize on this market which can positively affect its revenues and profits. 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. We believe that diversity in all its dimensions including of thought and experience creates a stronger workforce and promotes fresh, innovative thinking. Without one, the front line will not get or understand the message. She exudes a sense of quiet confidence that makes you want to trust and admire her. This is a factHer leadership style involves giving her subordinates and peers the space to express their opinions. It could get bigger in two years. Look for leadership opportunities where you can utilize kinetic energy to exercise some leadership jiu-jitsu and create positive change. Carrie covers technology, trends, marketing, brands, productivity, and leadership. Consequently, the company experienced major changes such as massive job cuts, closure of a dozen facilities, emergence of new leaders, etc. This model implies ensuring the economic and social security of workers but pays less attention to their motivation and personal development (Christiana, 2018). Marys parents taught her and her brother that you have to work for everything you want in life. We need to find the opportunity not to do everything, but to do the important things. His model also consisted of three phases like Bridges Transition Model. The approach believes that leadership can be learned and developed through training and observations. In each of her previous roles she learned crucial new skills. Mary Barra describes this goal just as succinctly but with a slightly different focus: This is all about winning customers one at a time.. Its OK to admit what you dont know. On managing large companies%3A %22Complex organizations have many common challenges%22. Dont step away from your career based on what might happen. Jan 2017 - Apr 20214 years 4 months. 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. This is vital to ensure that commitment, trust and mutual respect develop. 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. Since being appointed CEO in January 2014, GM has experienced impressive positive guidance under Mary Barra's ethical style. Its OK to admit what you dont know. This company sells not only cars but also trucks under several brands such as Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn and Vauxhall in 31 different countries (Datamonitor). She believes that leaders should see each worker as a capable human being, not just a part of the assembly line. Mary Barra, Kaizen: Continuous Improvement In The Spotlight, We need to find the opportunity not to do everything, but to do the important things. However, leaders cannot accomplish a successful change on their own. This is a factShe credits her can-do attitude in part to her engineering background. Leadership lessons from Marry Barra teach us how important it is for leaders to act responsibly for people and the society. The final phase is acceptance of the new beginnings and identification with the new situation (Bridges, 1995). As a result, GM walloped Tesla by rolling out moderately priced, long-range electric vehicle. 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). Its how your people will know that you have their back and that you will stand by them. If youve mainly worked in one function, consider trying out another role to expand the breadth of your experience and expertise. One of the downsides of this leadership style is that if used exclusively, it can allow poorly performing workers to continue to slow team progress. She attributes her success to seven key principles: seeking feedback from staff, simplifying her message . According to Bloomberg Businessweek, the email reassured the employees that the major leadership changes are all behind them (2009). Therefore, General Motors has been focusing on developing new high technology products for these eco-friendly automobiles. Mary Barra was a game changer right from the start. Fritz Henderson could also have been path-goal oriented, where he would direct the subordinates, tell them what to do, and provide appropriate guidelines. In order to be successful, organizations increasingly need to be scanning the environment to anticipate the appropriate change action. Mary Barra, Chairman and CEO, General Motors. Mary Barra comes across as a genuine, caring, and authentic human being. Under her leadership, the company acts with integrity and encourages staff to be creative. It is the most widely used analytical management technique. Customers can choose not only from other automobile manufacturers, but also from many automobile dealers that exist. Even though people wont readily accept a radical vision, the transformational leader will do whatever it takes to get every person on board. Mary Barra believes that the need to listen increases when you become a leader. If you truly want to change the world, you need more than talent. The designated leaders take a crucial role in the neutral zone. While the new GM managed to leave the neutral zone of the change process, it was prolonged because of the resistance to change. Coding Artist. These actions help her promote the culture of accountability, and the staff understands the importance of responsibility at the workplace. Communication is at the core of effective leadership. 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). Its important to surround yourself with people who will help and challenge you to be the best. A true leader has the ability to motivate his or her followers. The change agent is also known as the leader of the organization. This concept is based on a relational contract, where subordinates willingly contribute beyond the requirements. And its more than OK to listen to the people you lead. He immediately recognized the importance of organizational development by changing its structure and the people within it. Its OK to ask for help. Additionally, there was a major decline in sales in major business segments. Some distinguishing attributes possessed by the charismatic leader are confidence, power, success, and influence. According to Bridges, management and employees would feel anxious, disoriented, resentful, and self-protective (Bridges, 1995). In the year ended 2009 the estimated worldwide market share was recorded as 11.6%. Chief public policy, legislative and political executive for the company . 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. 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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. The best leaders are not in the business for personal glory or iron-fisted control. 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. GM's management establishes plans consistent with the company's business goals and objectives. It should only take a few minutes to fill out the survey and your answers will help us make Geeknack even better for YOU and our fellow leaders all around the world! 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. The main headquarters is located in Detroit, Michigan where over 200,000 people are currently employed globally. 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?. Save my name, email, and website in this browser for the next time I comment. Leadership itself is both personal and business. And if a solid foundation is being built in the present, then the future will generally take care of itself. This in turn caused unstable oil prices, decreases in employment rate and decrease in consumer spending. Changing is the second phase of Lewins model where actual changes are implemented so the organization progresses to the new position. I have a fundamental belief that everyone wants to contribute and do a good job. Every leader who wants to make a positive difference must reconcile this contradiction. It means working to improve the communities where we live and work by.. CEO Whitacre alongside other directors and managers had to work together as a team in order to carry out the changes successfully. Those who think they have . More importantly, the global automotive industry is extremely competitive, where General Motors are facing strong competitors. The Top 10 Business Leaders to Watch Out for in 2023, A Solar Power Beam Brings Renewable Energy into Focus, Career Advice by CEOs: How to Win at Life. 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. A transformational leader can also be qualified to be charismatic and vice versa. This is a factThe culture of honesty and speaking up allows everyone at the company to take responsibility for their actions and be accountable for the results. She strongly believes that pre-reading should be sent before meetings to maximize discussion during the meeting. Carrie Ann is Editor-in-Chief at Industry Leaders Magazine, based in Las Vegas. When leading an organization, especially one with more than 180,000 employees, you need to have a clear and simple message. Having the ability to transcend your personal agenda and to create value for your company and your employees is a daily challenge. Most importantly, the automaker will strictly concentrate on investing in innovative products and new technology. 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). From an engineering perspective, she employed tried-and-true engineering principles shared and aggressive goals, collaboration and built-in feedback loops. So, while there will always be individual moves within GM, I want to reassure you that the major leadership changes are behind us (Welch, 2010). As a result, General Motors was assigned a charismatic, transformational leader to guide it through change, solve complex problems, and build for the future. Due to the ongoing global recession, GMs business would be significantly affected in its revenues, results of operations, cash flow and financial condition. The crisis, in fact, opened the curtains to the spectacular display of Mary Barras leadership skills and a new and better work culture at GM. They crave for leaders who encourage them to open up, be honest, and always listen to their issues. Can ChatGPT Replace the Google Search Engine? This type of leader constantly sells the vision to his followers. For example, the provision of benefits, high wages, and health insurance are employees' motives to do their job. 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 Click To Tweet. Vroom and Yetton defined five key types of leadership where two are autocratic, two are consultative and one is group-based. She depicted her commendable skills of problem-solving and led GM out of the puddle with its reputation intact. 2022 Industry Leaders Magazine. 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. No plagiarism, guaranteed! For people like myself who write on leadership, theres no more compelling story right now than Mary Barras tenure at General Motors. The new CEO stated, Mr. When it comes to General Motors, you might say that CEO Mary Barra is ride or die. Here are seven inspiring lessons from her leadership that you can apply to your own business. In the automobile industry, the bargaining power of suppliers is considered low, since these suppliers rely on the automakers to purchase the raw materials such as steel, paint, glass, aluminum, etc. Moreover, there has been a worldwide demand for hybrid electric vehicles. In other words, this company believes in empowering its employees. Learn more about General Motors in Washington D.C. and our employees, facilities, dealers, suppliers, investments, operations and more. The last component in the PESTLE analysis is the technological component. In her quest to redesign GM, Mary Barra drawn on her deep understanding of both human and engineering dynamics. 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. GM can benefit from the increasing usage of the internet, because more and more consumers can access its website and view products more easily. GM incurred significant losses from 2005 through 2008 due to operations and restructurings. From a human perspective, she amplified and directed her peoples energy by modeling authenticity, courage, integrity and resilience. 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. Build up a diverse team of people from different industries, countries, genders, and backgrounds. Even though there was a resistance to change, GM had to swiftly evaluate the situation and devise new strategies on how to move forward. 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. The most common ethnicity among General Motors executive officers is White. John Kotter explains that some forces for change are greater economic integration, maturation and slowdown, technology, and fall of socialist countries and their reorientation toward capitalist economies (Palmer, 2006). He was the former Chairman and CEO at AT&T from 1990-2007. When Mary Barra became CEO of General Motors (GM) in January 2014, she was by most measures an utterly . Overcoming the challenge made her gain much respect from the entire GM team. Additionally, GM understands the effectiveness of performance when personal life and work are linked. White is the most common ethnicity company-wide. While women business leaders may approach their roles with contrasting management styles and goals, their leadership shares one commonality. 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