...How General Motors Poor Enterprise Risk Management & Managerial Decisions in the 21st Century has Effected Where They Stand Today Brittany M. Mendez North Greenville University Abstract This paper discusses the rise and fall of General Motors during the 21st century and documents many different managerial decisions that led to where the company is today. It also analyzes the enterprise risk management plan that General Motors was famous for. They were known for being a company that successfully implemented an ERM that was linked to its success after many failures. I will examine how an ERM was the framework to coming up with a plan of action to identify and mitigate risks, but ultimately it was up to supervisors to make the managerial decisions that now General Motors must face the consequences for. Keywords: General Motors, Enterprise Risk Management How General Motors Poor Enterprise Risk Management & Managerial Decisions in the 21st Century has Effected Where They Stand Today General Motors was once regarded as one of the best managed and most successful firms in the world, but between 1980 and 2009 its share of the U.S. market fell from 62.6% to 19.8%, and in 2009 the firm went bankrupt (Helper & Henderson, 2014). In this paper I will examine the decisions that General Motors made in regards to their Enterprise Risk Management Plan and how management decisions determined the fate of where General Motors is today. We all know General Motors has...
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...organizational effectiveness and health. On the other hand the wild cat strike happened because there was forced imposition. There was a unilateral decision taken to introduce swipe cards (Palmer, Dunford, & Akin, 2009). It was not thought out well because it was introduced at the beginning of the summer quarter, which is also at the start of the peak holiday season. From the perspective of sense making; the management needs to form an awareness of the key elements relevant to the situation. In addition, the management must form an understanding of the means in some bounded context, based on past experiences, training, education and cognitive capabilities. Finally making decisions by generating alternative response action to control the situation, identifying the objectives, constraints, and factors that influence the feasibility and desirability of each alternative. In BA the management did not form an awareness of key elements; they did not realize that the move was being interpreted to manipulate their working patterns. The management did not understand the importance of not introducing an unpopular system before the peak season. Finally, this was not a decision made by examining different alternatives and evaluating them properly. This was an ad hoc decision taken by the management without considering its consequences. From the point of view of change management; there strength of organizational dissatisfaction, vision for the future and possibility of immediate...
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...of Operations Management ISCOM/471 February 24, 2014 Role of Operations Management Operations management includes many steps as well as subsections to get to the end results. The end results are customer satisfaction, cost saving initiatives, and sense of urgency to complete the work. “Operations management is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization” (Operations Management, 2014, par. 1). All of these parts, and more, help to maximize the income potential of an organization. “Within the operations function, management decisions can be divided into three broad areas: strategic (long-term) decisions, tactical (intermediate-term) decisions, (and) operational planning and control (short-term) decisions” (Chase, 2006, p. 9). Role of Operations Management at Distribution Center At the facility that I work for, we strive to obtain the highest satisfaction rating for customer service. This includes product availability, short lead time, less damage shipped, pleasant associates on the phones, and giving the customer the best product for the lowest costs. This is no different than what the definition of operations management means. The higher you go in management the more broad the scope for decisions made. The strategic decisions are made by the upper management team members. Tactical decisions are made by the middle management team. The short-term decisions are made by the floor team...
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...Achieving Project Goals Simulation Businesses use projects to focus on the way strategies can be put into action to meet the objectives of a business. Through project management, businesses can establish stated objectives and perform the tasks on the project with the knowledge in completing the strategies that aligned with goals of leadership. Project management is designed to make better use of existing resources by getting work to flow horizontally as well as vertically within the company (Kerzner, 2006, pg. ). As part of project management I had the chance to understand how to apply the proper decision-making techniques by completing this simulation. The simulation provided a variety of different situations that I had to make as the Project Manager for this project. By completing this simulation it allow for me to understand the different methods that are involved in proper decision to perform a task in a project. How did completing this simulation change your perspective of project management? After completing this simulation, it has changed my perspective of project management. Initially I was under the impression a project manager primary job was to manage the process that was established through the job scope and a statement of work. Completing the simulation has proven that even if everyone understands the objectives it takes effective planning, execution, monitoring, and controlling methods to complete a project successfully (University...
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...CASE SUMMARY Hasbro Inc. (Hasbro) was founded as Hassenfeld Brothers in 1932 in Pawtucket, Rhode Island. The founder was Henry Hassenfeld, an immigrant from Poland. The operation of Hasbro began with manufacturing inexpensive product, which eventually turning to toys in the 1940s. In 1951, the company hit pay dirt for the Mr. Potato Head that indicated bright future of Hasbro in toys. Next big hit was G.I. Joe around a decade after the first hit. In 1968, the company went public. The beginning of investment in interactive games was acquisition of Milton Bradley. In early 1990s, the company acquired Tonka Toys which includes Parker Brothers. In 995, realizing that interactive games becoming popular and the company’s potential in that area, Alan Hassenfeld, chief executive at that time decided to create Hasbro Interactive as new division to take risk in interactive games. The division was headed by Tom Dusenberry and consist of outside experts hired to meet the needs and demands such as software developers. Mr. Dusenberry was responsible to make all operational decisions and others related to the division. The division generated revenues right away from the existing CD-ROM products which showed rapid growth and leading to rapid success. Hasbro Interactive paid great bonus to the employees for that rapid success. To continue achieving increase in revenues, Mr. Dusenberry expanded company’s activities beyond translating existing Hasbro properties to interactive format. He purchased...
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...Enron is the story of how a company that was deemed to be America’s future came crashing down because simple codes of ethics were not maintained. Enron started out as gas pipeline Company. It entered trading and tried to venture into tall grass with pulp and broadband which they had no clue about. The management that thought they would change the face of business ended up with almost nothing and a legal trial haunting them. After Ken Lay hired Jeff Skilling there were major changes in the company with mark to market accounting and ‘rank and yank’ coming into effect. These policies triggered the downfall of Enron. We know ethical codes of conduct were not maintained and decisions that were made were only with the intention of earning more money. The first point of contention in the history of Enron was in 1987 when the audit team suggested that two traders be fired because their means of procuring money was not right. Ken Lay differed and did not fire these men, citing that these men had got over $130 million dollars for Enron and the company needed the cash. This was Lay’s first mistake. He sent out the wrong signals, anyone could do anything as long as the company made money. Jeffery Skilling was hired. He was an MBA from Harvard. Jeff Skilling proves the bad apple theory wrong. Jeff was a very intelligent man. The situational myriads made him do things that were unethical. Jeff started mark to market accounting. This is perfectly legal and is being used by other companies...
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...|INTERNATIONAL ISLAMIC UNIVERSITY ISLAMABAD | |[pic] | |ALLIED BANK LIMITED | |FACULTY : FMS | |COURSE TITLE : PRINCIPLE OF MANAGEMENT | |COURSE CODE : MGT-202 | |SUBMITTED TO : SIR HASSAN BIN HAROON | |SUBMITTED BY | |WALEED WAZIR 6021 | |MUHAMMAD SOHAIL 6022 | |FAHAD RAHIM 6023 ...
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...Ford introduced the Pinto, a small car that was intended to compete with the then current challenge from European cars and the ominous presence on the horizon of Japanese manufacturers. The Pinto was brought from inception to production in the record time of approximately 25 months, where a normal car usually takes 43 months. This showed an expedited time frame for the Pinto. On top of time pressure the team was also required to follow a limit of 2000, that meaning it could not exceed $2000 in cost and it could not weight more than 2000lbs. When it came to routine crash testing of the Pinto, it was revealed that the Pinto’s fuel tank often ruptured when struck from the rear at a relatively low speed. This was because the fuel tank was positioned between the rear bumper and the rear axle, and when impact was made studs from the axle would puncture the fuel tank, spilling gasoline that could be ignited by the sparks. In crash testing 11 vehicles, 8 of the cars suffered potentially catastrophic gas tank ruptures. There were several possibilities for fixing the problem, but given the restrictions of limit of 2000, they made no changes. The most controversial reason for rejecting the production change was because of Ford’s cost-benefit analysis. Ford believed that the cost of rebuilding the Pinto to make it safer were far more expensive than the cost of life for each fatality. Due to schema, the Pinto was found okay to sell on the market, it was brought up twice for possible recall within...
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...device used in early days of technology “for reading, writing, and erasing data on tapes and disks”. The company had its difficulties, but out of all the issues, one had caused chaos in the company. A decision made by senior officers within the company to sell the product with lesser lifetime to “make the numbers” and Pat’s (Dinah’s immediate manager) decision to ignore what happened in the past, led to layoffs and dysfunctional institution and employees. Pat took the situation to his superior and received the reasons from Fred, why senior management decided, selling product with lesser lifetime was the best solution. Pat explained to Dinah of the situation and the reasoning he received from his superior. If I were in...
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...the appropriateness of business information used to make strategic decisions for my chosen company which is Nervi College. For my chosen company I will be choosing 2 functional areas which are the sports department and the senior management team. The information that this functional area needs and uses The sports department need information from students to show external fund supporters how the funds are being used to provide equipment and facilities for students to use in the college. The sports department obtains this information by collecting data on students that use sports equipment or enter facilities like the gym. Also this data helps the sports department know what sort of things students are interested in. The information collected from students that borrow sports equipment or enters a sport facility like the gym is reliable as students wear their ID cards which help identify the student to the sports department. The sports department uses surveys data that help the college on up to date things or changes that are happening outside the college and also identify gaps in their owns systems. The strategic decision Made by this functional area The strategic decision made by the sports department is to increase the size of the college gym. They have come to this strategic decision as the gym was always crowded and students were complaining a lot also the sports department have come to this decision via the information they gathered on a college survey asking all...
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...sector and market within which it operates Iware operates in IT sector and the competition is always increasing. The growing competition is challenging the sustainability of the firm and affecting the profitability. The company has to be careful in every contract to achieve the objectives since it is in the beginning stage. The organisation had faced issues with the decreasing number of clients and customers due to the challenges and competition in the market. The firm follows a centralized method of decision-making and control where decisions are made strictly at the top management. The management found that the centralization is limiting the ability of gathering information and analyzing the market pulse. Iware employees who work at the client companies have to take approval from the management before taking any decision. Even though this helps the organizations to keep safety and security in the process, it was badly affecting the speed of processes since the management always takes...
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...illustration of ineffectual decision making Synopsis Dysfunctional decision-making is the poison that kills technology projects and the Denver Airport Baggage System project in the 1990’s is a classic example. Although several case studies have been written about the Denver project, the following paper re-examines the case by looking at the key decisions that set the project on the path to disaster and the forces behind those decisions. Background What was to be the world’s largest automated airport baggage handling system became a classic story in how technology projects can go wrong. Faced with the need for greater airport capacity, the city of Denver elected to construct a new state of the art airport that would cement Denver’s position as an air transportation hub. Covering a land area of 140 Km2, the airport was to be the largest in the United States and have the capacity to handle more than 50m passengers annually. The airport's baggage handling system was a critical component in the plan. By automating baggage handling, aircraft turnaround time was to be reduced to as little as 30 minutes. Faster turnaround meant more efficient operations and was a cornerstone of the airports competitive advantage. Despite the good intentions the plan rapidly dissolved as underestimation of the project’s complexity resulted in snowballing problems and public humiliation for everyone involved. Thanks mainly to problems with the baggage system; the airport’s opening was delayed by a full 16...
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...Difficult Decisions 1 Chapter 8 Case Study: Making Difficult Decisions at NBC Universal The NBC Universal’s late night programming network where faced with some very tough decisions regarding Jay Leno and Conan O’Brien talk show host. I’m sure everyone is familiar with this dynamic duo, if not allow me to share a little history about these two gentleman. Jay Leno was born James Douglas Muir Leno on April 28, 1950, in New Rochelle, New York to father Angelo Leno and mother Cathryn Leno. Jay Leno is the late night talk show host and stand-up comedian who hosted The Tonight Show with Jay Leno from 1992 to 2009. Conan O’Brien was born Conan Christopher O’Brien on April 18, 1963 in Brookline, Massachusetts to father Dr. Thomas O’Brien and mother Ruth Reardon O’Brien. Conan O’Brien started out as a TV writer before becoming a talk show host. Conon O’Brien now the new host the Tonight Show for the last 12yrs on NBC host by Jay Leno previously. NBC management decided to move Jay Leno to prime-time slot while elevating Conan O’Brien to the new host of “The Tonight Show” then NBC decided to reverse their decision. NBC became concerned that O’Brien might move to another network, so they decided to make him a promise in 2009 that he would succeed Jay Leno as the host of “The Tonight Show”. NBC was betting by this time Jay Leno would be ready to retire. Unfortunately in...
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... Human Resource is a function which is essential in every organization, but also one which is most criticised. The debate whether HR is for the benefit of the employees or the organization has been one of the most contentious issues in management. The fact is that, the purpose of HR function is to enable the organization to achieve its strategic goals by providing it with the best possible talent. Therefore, before evaluating whether HR is on the side of employee or management, one must understand that HR is part of the organization and exists for the benefit of the organization. However, this does not necessarily mean that HR has to be against the interest of employees. The HR is the function which is responsible for managing the organization’s human capital. In this age of Knowledge economy, human capital is a strategic asset which can give the organization a competitive advantage. However, since HR is the employee facing function, employees expect HR to be of assistance to them and help them with their issues at the workplace. When this does not happen due to one reason or another, the HR is seen as the Bad party which is just working against employee interest. In reality, the fact is that the HR is neither on the side of the management, nor on the side of the employee. The purpose of HR is to meet its role in the organizational strategy. When we talk of strategy, many a times, HR gets ignored because of a feeling that HR cannot be responsible for anything strategic. The...
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...Ethical Issues and Management Delano Taylor XGMT/216 3/29/2015 Steven Goldman Managers are much more then supervisors or a role model, they are leaders whom their employees or teams look forward to guidance and leadership. This paper will focus on the role of the manager figures. In their everyday operations, managers are faced with many ethical and moral decisions meant to move the organization forward. This means in making important decisions for the organizations, managers are likely to be faced with many challenges. These decisions are meant to move the company forward and can affect the company as well as employees and customers. When making these decisions managers usually think about the various outcomes and how everyone associated with these decisions will be affected. I have been through some ethical decision making as a manager for the company that I work for, making some decisions are difficult because you know that the outcome will change someone’s livelihood and will affect them maybe even mentally. I truly believe that when a manager or a supervisor are placed in these positions they should go through various training and ethical testing process. When an employee or a lower level employee sees a manager doing something unethical in the workplace they will lose all respect for that individual, so a manager needs to carry themselves with honor and humility so that others will notice and will trust them to make decisions. When looking over society...
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