A multinational organisation does business in two or more countries. It locates its headquarters in a particular country and the organisation's culture and structure take after the headquarters' practices and corporate beliefs. In addition, throughout the course of everyday operations, factors of technical know-how, labour routine and regulations will be homogenised (Hatch & Cunliffe 2006). GM operating in over 35 different countries around the world is thus regarded as a multinational organisation. It situates its headquarters in Detroit, USA whereby its organisational culture is moulded by its group of dedicated employees committed to pursuing goals GM set out to achieve (General Motors 2010).
Multidivisional organisations generally arrange their employees into sets of functionally structured units that report to a centralised headquarter (Hatch & Cunliffe 2006). GM is multidivisional since it is one of the early adopters of Sloan's 'M-structure' in America. This was due to the fact that GM operates in numerous countries and they then started to use organizational charts to identify divisional structures. The chain of command within organisations can be better comprehended and independent markets can be clearly determined (Daft 2007). However, such a structure would call for a need to erect new appointments of division general manager; look into the evaluation of performances; and explore incentives for managers in boosting efficiency (Clegg,
General Motors Company (NYSE: GM, TSX: GMM.U) is an American multinational automaker based in Detroit, Michigan and the world's second largest automaker. With its global headquarters in Detroit, GM employs 209,000 people in every major region of the world and does business in some 157 countries. General Motors produces cars and trucks in 31 countries, and sells and services these vehicles through the following divisions: Buick, Cadillac, Chevrolet, GMC, Opel, Vauxhall, and...