College of Administrative and Financial Sciences
Assignment 1
Principles of Management (MGT101)
Deadline: 05/03/2020 @ 23:59
Course Name: Principles of
Management
Course Code: MGT101
Student’s Name:
Semester: 2nd
CRN:
Student’s ID Number:
Academic Year: 1440/1441 H, 2nd Term
For Instructor’s Use only
Instructor’s Name:
Students’ Grade:
Marks Obtained/Out of 5
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only)
via allocated folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks
may be reduced for poor presentation. This includes filling your information
on the cover page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from
students or other resources without proper referencing will result in ZERO
marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, doublespaced) font. No pictures containing text will be accepted and will be
considered plagiarism).
• Submissions without this cover page will NOT be accepted.
Assignment Workload:
• This Assignment comprise of a short Case.
• Assignment is to be submitted by each student individually.
Assignment Purposes/Learning Outcomes:
After completion of Assignment-1 students will able to understand the
LO 1. Identify and explain the concept of management, functions, roles and skills
of a manager (Lo1.1)
Assignment-1
• Please read the Management in Action case “GM’s New CEO….” at the end
of Chapter 2 “Management Theory” available in your textbook
Management: A Practical Approach 7th edition by Kinicki, A., & Williams,
B., and answer the following questions:
Assignment Question(s):
(Marks 5)
1. To what extent is GM using evidence-based management? Are they overdoing
it? Explain your rationale.
2. To what extent are the managerial practices being used at GM consistent with
principles associated with management science and operations management
techniques? Discuss.
3. How are the managerial practices being used at GM consistent with the QualityManagement viewpoint? Explain your rationale.
4. To what extent does GM represent a learning organization? Discuss.
Answers:
1.
2.
3.
4.
Management in Action
GM’s New CEO, Mary Barra, Must Manage a
Major Recall
(General Motors CEO Mary] Barra, in a letter to em-
ployees posted on a company blog [March 4, 2014),
said she is leading a group of senior executives who
are monitoring the auto maker’s recall of 1.6 million
vehicles equipped with potentially defective ignition
switches and built in the years before GM’s publicly
funded bankruptcy.
The cars could suddenly turn off when the keys are
jarred, shutting down the engine and the airbags.
Thirteen deaths have been linked to the problem, which
GM engineers first discovered more than nine years ago.
GM issued a recall for the affected vehicles late last
month (February], and the National Highway Traffic
Safety Administration has said it is reviewing whether
the auto maker should be fined for taking so long to
act….
Ms. Barra had not commented publicly on the situ-
ation until GM posted her letter. In her post, Ms. Barra
wrote that she is now leading the company’s response
to the problem, and promised that an internal investi-
gation will produce an “unvarnished report on what
happened. We will hold ourselves accountable and im-
prove our processes so our customers do not experi-
ence this again.”
Ms. Barra wrote in her letter that the ignition switch
issue was being reviewed by “experienced technical
experts” who work independently of managers with
responsibility for other aspects of the business. The is-
sue was brought to Ms. Barra and other senior execu-
tives a few weeks ago,” she wrote.
Now, she wrote, she has created “a working group
of senior executives, which I lead, to direct our re-
sponse, monitor our progress and make adjustments as
necessary.” Among other steps. GM is working with
parts makers to get
repair parts to dealers more rapidly
and has provided federal regulators with comprehen-
sive information on this issue.” she wrote.
“While I deeply regret the circumstances that
brought us to this point, I appreciate how today’s GM
has responded so far,” Ms. Barra said. “We have much
more work ahead of us and I’m confident we will do
the right thing for our customers.”
Ms. Barra’s comments come amid the growing like-
lihood that GM will face more lawsuits and a federal
fine for as much as $35 million if regulators determine
that the auto maker violated federal rules that govern
the timeliness of recalls….
GM engineers knew of the potential problem in
2004 when a switch failure incident was reported
around the time of the launch of the 2005 Cobalt, ac-
cording to a timeline submitted by GM and provided
to NHTSA last week. GM looked into the problem, but
decided to close its inquiry with no action.
In 2007, a group of GM employees met with
NHTSA regulators in Washington. D.C., to discuss an-
other matter when a federal official told the GM per-
sonnel that a fatal crash had occurred on July 29, 2005.
in which a 2005 Chevrolet Cobalt was involved in a
front-end collision, and the airbags didn’t deploy, ac-
cording to the GM chronology
But court documents reviewed by The Wall Street
Journal show that concerns about the safety of vehi-
cles equipped with the suspect ignition systems con-
tinued to bounce around the company’s engineering
department in the years after the meeting.
GM, on three separate occasions, “repurchased” ve-
hicles from owners who complained of stalling or los-
ing power while they were driving, according to a
deposition by a GM employee.
One customer, a New Jersey woman who had her
2005 Cobalt repurchased, said the vehicle died on the
highway four times. She only had about 600 miles on
the vehicle. She said the stalling issue seemed to occur
on right-hand turns. The dealer reported that the cus-
tomer “has the fear of God in her about the car,” ac-
cording to a deposition.
GM’s chronology says that a higher-level team to
investigate the ignition switch problem was formed in
2011. The chronology does not identify the members
of this team.
Over the next two years, GM conducted tests and
investigated the problem which finally led to a meeting
on January 31, 2014, where executives decided a recall
was needed, the GM chronology states.
On February 13, GM announced it would recall
about 778,000 Chevrolet Cobalt and Pontiac G5 cars.
Twelve days later, the company widened the recall to
1.6 million vehicles after growing consumer complaints
and issued a second formal apology to consumers….
Ms. Barra in her letter addressed employee con-
cerns about the potential damage to GM’s reputation
and sales.
“My answer is simple: that’s not the issue.” she
wrote. “The vehicles we make today are the best
memory and I’m confident that they will do fine, on
their own merits. And our company’s reputation won’t
be determined by the recall itself, but by how we ad-
dress the problem going forward.”
FOR DISCUSSION
1. To what extent is GM using evidence-based manage-
ment? Are they overdoing it? Explain your rationale.
2. To what extent are the managerial practices being
used at GM consistent with principles associated
Management Theory
CHAPTER 2
67
with management science and operations manage
ment techniques? Discuss.
3. Use Figure 2.4 to analyze the extent to which GM is
using a systems viewpoint.
4. How are the managerial practices being used at GM
consistent with a quality-management viewpoint?
Explain your rationale,
5. To what extent does GM represent a learning organi
zation? Discuss.
Source: Excerpted from J. Bennett. “Recall Is First Big Test for GM
Chief Barra.” The Wall Street Journal, March 5, 2014, http://online
.wsj.com/news/articles/SB/00014240527023043607045794194941912
16588 (accessed March 5, 2014).
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