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Executive Decision Making at General Motors


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This is a case about General Motor's structure over the last century and how it has affected the performance of the company and the management challenges presented by the new structure.

1. GM was extremely successful for many decades with a multidivisional form. What were the strengths and weaknesses of GM's multidivisional form?

2. How does the decentralization and centralization of decision making change at GM over its history? Why did it change?

3. Why was the matrix structure put into place? How does the matrix structure work? What advantages and disadvantages does it have? Is the new GM more centralized or decentralized?

4. What management challenges face managers in the matrix structure? In terms of participative leadership, as discussed by Yukl in Chapter 4, is the new structure participative? Should it be?

5. Are there any suggestions from the Leading Teams book that you would give to the CEO of GM?


This page last modified on 1/31/07