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Problems Facing General Motors

heir bodies and engines and other parts at a greater cost (pp. 173-174).

Peter F. Drucker (1972) writes about General Motors and its structure as an example of the American corporation. He says that he is looking at General Motors only as an example of the social structure and of the institutional problems of the big-business corporation. He describes the company in terms of its structure. He says that the domestic manufacturing properties of the company can be classed in three groups according to the products they make. The largest in terms of the number of people employed was the automobile and truck group, producing Chevrolet, Buick, Oldsmobile, Pontiac, Cadillac, and General Motors Trucks. The Fisher Body Division also belonged to this group and produced the bodies for all the automobile divisions. The second group was the manufacturers of automobile accessories, making most of the accessories needed by the automobile plants. Many accessories were sold outside the company as well. This division also made Frigidaire, a line of refrigerators. The third group made diesel engines in Cleveland, Detroit, and LaGrange, Illinois. The three groups were organized in the 1940s in about thirty divisions of different sizes. Each division had its own division manager with a complete staff, and the whole division would be structured like an independent business. However, there was also a central management with a set of functional service staffs for manufacturing, engineering, sales, research, personnel, finance, public relations, law, and so on. Each had its own vice-president, and these staff organizations advise both central management and the divisional managers and help communicate between the divisions (pp. 41-43).

General Motors was created in 1908 when three directors filed papers in New Jersey and then selected one of their own, George F. Daniels, to be the company's first president. The company had $12.5 million in c...

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Problems Facing General Motors. (1969, December 31). In LotsofEssays.com. Retrieved 02:59, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1692223.html