1. How would you describe the organizational culture at GM? Why was decision making so slowplodding as...

Question:

1. How would you describe the organizational culture at GM? Why was decision making so slow—“plodding” as one analyst described it?
2. Why do you think the previous CEO’s (Mr. Henderson) attempts to change the organizational culture might have been lacking?
3. What changes is Mr. Whitacre making to the culture of GM?
4. What types of resistance is he likely to encounter? Using Exhibit 6-5, what would be the best ways to address that resistance? Be specific.

No one could have imagined it. After all these years, many thought it was too big to fail. Yet, on June 1, 2009, General Motors (GM) filed for Chapter 11 bankruptcy protection, the second-largest industrial bankruptcy in history (WorldCom was the largest).70 GM, which hadn’t made a profit since 2004, declared in its filing that it had $172 billion in debt and $82 billion in assets. As any competent business student could tell you, that ratio doesn’t make a balance, especially when the company’s equity is worth little.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...