The Great Economic Tsunami of 2009 That Swept Through GM and Chrysler

The Great Economic Tsunami of 2009 That Swept Through GM and Chrysler


Never in our wildest dreams would anyone of thought that two of the mightiest companies in the world would enter into bankruptcy protection. After all these are two staple companies of the American economy and each year people from college graduates to blue collar workers clamored and salivated to obtain a job with one of these two companies.

So what happened how did the tsunami sweep through them? Office Politics! Now before you say what is this or impossible let’s examine it a little further. Office politics includes a lot of factors not just doing what the boss wants whether they are right or wrong, getting favor with the boss, but it includes everything from reading email from friends to office gossip at the water cooler.

Each year companies pay a heavy Economic price for not addressing the issue in way of productivity, lost wages, and sick leave. Chrysler and GM was so saturated in management levels that complaints and ideas never made it to the top where it mattered most or where a effective decision could be made on products or the direction the company was taking. Still you say how does this equate to office politics?

How many times have we said lets do this because the boss likes it, knowing all the time that it wasn’t a good decision or product? Or if I get in favor with the boss and keep my nose clean and don’t make waves and forsake good ideas I will get that promotion or rise to the top with them or even just to keep my job! It affects others like morale, stress, and absenteeism when certain people who curry favors from the boss get away with doing nothing and a host of other things.

According to the American Institute of stress it cost $300 billion in lost productivity due to stress related factors. In Australia it cost $14.81 billion. To go a little further in 2003 the CCH did a survey and found that companies set aside 4.4% of their budget for absenteeism and 5.3% for poor-fair morale. Undoubtedly GM and Chrysler wouldn’t come close to $300 billion but let’s say that since the size of their companies combined made up a quarter of this figure then that would equate to $75 billion, more than what they received in federal bailout money.

After GM and Chrysler emerge from bankruptcy office politics will be a issue that both companies will have to address. No longer can they continue on the path that led them to this Economic tsunami, they will have to come up with new ideas and ways of doing things. They will have to come up with bold steps to compete globally with the top two (Toyota, Honda) workers will have to be flexible when it comes to compensation and productivity the two are not inseparable.

Promotions and other fringe benefits will have to be tied to performance. If they continue down the same path that led them to this point and not recognize any sort of change and the workers going back to work after the plants reopen and doing the something, then It will be just like Eastern Airlines nothing more than a memory in time and history.

Liberty Magazine - Economic
Liberty Magazine – Economic
Prepare and write by:
Author: Mohammed A Bazzoun
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