General Motors (GM) has a new CEO - Mary Barra. She has joined the multinational at a time when it is facing a crisis for selling cars with faulty ignition for a decade, which has resulted in accidents and deaths. Considering there is a global outcry, she must save the reputation of the firm by addressing the ignition problem. This will be crucial for her legacy as a leader. To remedy the situation, Barra accepts responsibility on behalf of GM instead of blaming her predecessors. She also appoints a global vice-president to deal specifically with safety issues and pledges resources and all other support needed to rectify the problem.
Her actions are decisive and firm. She delegates the responsibility and supports the person performing it. The management issues involved in this article are crisis management and public relations. Barra has been thrust into a crisis in her new responsibility. She does not shirk responsibility but chooses to tackle the problem directly. She does not panic but rather handles the crisis knowledgeably and strategically. Apparently, she has studied the situation before deciding to appoint a VC, who is an insider, to handle the problem and recommend viable solutions. She has to save the image of GM by all means and that’s why she updates the press.
I believe Barra has taken the right action. By acknowledging GM’s mistakes, she has in a way appeased those who have had some kind of loss or the other. Appointing a senior manager to deal with the safety problem is also commendable because the appointee understands the problem better than the new CEO. This will save the image of GM as it works on an effective compensatory scheme for affected clients.
Works Cited
Loftus, Geoff. “Mary Barra's Leadership Legacy.” Forbes. 19 Mar. 2014. Web. 12 Apr. 2014.
