Safety Culture at General Motors Post the Ignition Switch Recall Crisis
| Case Code: HROB221 Case Length: 11 Pages Period: 2004-2019 Pub Date: 2020 Teaching Note: Available |
Price: Rs.300 Organization : General Motors Industry :Automotive Countries : United States Themes: Organizational Culture/ Job Design/ Training & Development/Systems Thinking |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Valukas Report
After Barra asked for a thorough enquiry, GM provided access and cooperation to Valukas throughout the entire investigation period of three months. The investigation covered a time period of more than 15 years and involved more than 350 interviews with over 230 individuals and more than 41 million documents. The final report was submitted on May 29, 2014, with the investigation team’s observations related to the faulty ignition switch as well as its recommendations...
GM’s Safety Initiatives
To avert safety problems like the ignition switch issues, GM took various initiatives even before the Valukas Report was tabled. The company paid keen attention to the Valukas Report’s recommendations also. It created a senior position for Vehicle Safety and introduced a Speak Up program, Silos to Systems Approach, and New-employee orientation and annual training on improving the safety culture. Barra also fired 15 employees, including eight executives, for their role in failing to call attention to or respond urgently to the defective switches. ..
Looking Forward
After the ignition switch recall, GM intensified its focus on workplace safety so that it there would never be another safety lapse. The company’s efforts on safety helped it to reduce recordable injury rates and total incident rates. (Refer to Exhibit III for details on US and worldwide recall figures). However, GM was determined that it would pursue further safety initiatives until that figure was 100 percent injury free...
Exhibits
Exhibit I: Timeline - The Ignition Switch Recall
Exhibit II: The Ignition Switch Defect
Exhibit III: GM's Recall Figures Since 2014
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