Success or Failure in Innovation by the Large Organization U.S. Auto Industry-GM vs. Japanese Auto Industry-Toyota

Abstract

In determining the effect of organizational behavior leading to success or failure in the auto industry, an analysis of the several forces affecting such behavior is necessary. In dealing with the American industry and GM in particular, it appears that management and labor are not united in their commitment to develop a quality product. This lack of commitment may be true more often than not, but is not axiomatic for all plants or segments of the GM operation. It may further appear that Japanese industry, and Toyota are committed to pro(iding a quality product, and labor and management are in concert in this commitment. The market at present is generally in a severe sales slump for the American auto makers with exceptions for certain makes and models. Analysts and economists for the most part would consider the Japanese auto industry a current success, the American industry, a current failure. Depending on the criteria used however, this is true in certain instances and not true in others. If one accepts as necessary the concept that labor should sacrifice the good life for the good of the corporation, as in the Japanese industry, then Toyota is a success.