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3-20-08 GM vs. Ford - I Ford a Started in 1902 b did not...

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3-20-2008 I. Ford a. Started in 1902 b. did not follow a managerial Structure and GM over took them in the market c. Ford “ I will build the moto car for the great economy, and will be big enough for the family or individual and will be d. Model T was the first car of Ford and was a great success and a very successful car i. Suitable for gravel roads ii. Was so successful that by the mid 20’s had sold over 15 million units e. Mass Production - Ford revolutionized the industry in two ways i. Interchangeability 1. Thousands and hundreds of thousands parts that are the exact same. a. Arms industry was the first to introduce interchangeability ii. Assembly line 1. Most important thing at the time was efficiency 2. In the beginning the line did not move and then it could be raised and lowered for the height of the workers iii. Vertical Integration 1. Even bought the rubber manufacturer in the Amazon f. Never thought about an organizational structure II. Creation of GM a. By a carriage manufacturer. Will Durant – b. In the beginning Gm did not pay attention to organizational needs at first c. Crisis of 1920 i. Company lost 100 million dollars d. Alfred Sloan came in to save the day as CEO and set up a management structure III. Alfred Sloan - engineer a. Analyzed GM and concluded that a centralized structure is out of the question. b. Wanted independent divisions i. Initiative and innovation c. Limits the # of executives reporting to the CEO (narrow Span) d. Delegates to Senior managers absolute responsibility i. he believes each manager under this structure will maximize productivity e. Sets up a Product divisional structure f. Development of financial control i. Good because the CEO can look at each division and compare the products separately
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ii. Can evaluate the divisions and the managers 4-3-08 Motivation and Job Design I. Job enlargement a. Make a persons job by giving them more stuff to do given their present skill set II. Job Enrichment a. Make a persons job bigger by giving them new tasks that are not related to their skill set i. A typer becoming the editor III. Team leadership a. Social Loafing – when someone in the team doesn’t pull their own. i. Managers can avoid this through: sales quota, production evaluations, assign responsibility and make it public, rewarding ii. Cohesiveness can help avoid this - the person who organizes the team must think ahead b. Team compensation i. Heterogeneous vs. homogenous 1. Heterogeneous works better.
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