General Motors is one of largest companies in the world and to run the organization effectively, the best management principles need to be successfully implemented. With the tough competition that the company has to continuously face, it must ensure that all its operations are streamlined for maximum performance to meet and beat its competition effectively to keep its leading position in the marketplace. One of the most important departments within the organization is the “planning department” which bears responsibility for the designing and building of the world’s best vehicles. A comprehensive “definition” of the planning department would envisage vehicle design, manufacturing discipline, brand strength, competitive pricing and profit making capabilities.
Establishing Strategies envisages utilizing the latest innovative technologies and leveraging global resources for making the best vehicles in the world. Coordination of Activities also includes creating a sustained sequence for investment opportunities in the company for obtaining the best results for all stakeholders which includes investors, employees and its customers in all the different countries of the world. Building the best vehicles means optimizing its global presence and maximizing the efficiency of its operations in an environment that is socially responsible. After making the vehicle, it has to be delivered to various dealers and stockists throughout the world to be sold for the generation of revenues. This makes for smooth organization of all planned activities including “purchasing” activities which are very important for the uninterrupted manufacturing of vehicles
Organizing in General Motors means organizing everything in detail for the smooth manufacturing of vehicles in its plants in different parts of the world. This includes activities to unlock important values, minimizing cost and the establishment of operational stability. Efficient organizing can reduce energy costs by 20 to 30 percent which would increase profit margins considerably and also reduce the price of the vehicle. Organizing the purchase of materials and components with less weight and similar qualities is also an essential part of organizing manufacturing activities. Most organizational activities are for activities within the plant which includes lean procurement and material and information flow analysis.
They implement a systematic approach that concentrates on placing the right man for the right job, and adopting the latest means and methods to address the use of the best materials. Organizing activities also include using recycled material wherever possible without compromising quality. This envisages lean manufacturing which avoids waste and adds value to their manufactured vehicles. Proper Organization is absolutely necessary for large organizations like General Motors because improper management results in poor workmanship, escalated costs and other such factors that reduce the competitive edge of the organization.