GMs global architectures will be able to satisfy the markets ever changing demands because they are flexible and hence will consent to sharing assembly tools and facilities for different types of vehicles. Stay in the know! If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. For example the New Deal Legislation in the past which was aimed at avoiding future depressions through relief, recovery and reform. But like any other enterprise, it has its strengths and weaknesses. physicians working in military service branches. DuBrin, A. J. In this essay we will be discussing the concept of organizational change and, the concept of change management. Course Hero is not sponsored or endorsed by any college or university. However, the company is required to study the perceptions and attitudes of the organizational members while initiating any change within the organization. Hibbert, L. (2015). So market was highly competitive and directed toward price reduction. In 2008, it was surpassed by Toyota (Elizabeth, GM, 2009). This is because they were required to learn a new set of skills and also learn central software being used in all the organizations offices in the globe. Customer Reviews. must. When the company feel that the activities. Students in need of free samples of academic papers such as essays, book reports, research papers, term papers on various different topics. Organizational behavior: An evidence-based approach. By clicking Proceed, you agree to our terms of service and privacy policy. The manager's or a, group of leaders' role in the transition is critical. General Motors Corporation was originally founded in 1908 in Michigan, directed by W.C. Durant. This means that all the resources are geared towards implementing new strategies and not necessarily immediate profit making activities. An Automotive Strategy Board together with a management committee were formed to keep the CEO updated on the happenings of the corporation. They believed that such a multinational company should not behave that way when solving problems. FC Sem 1 Substance Abuse Impact on youth and challenges for the future, Class 12 Chapter 6 Business Studies Revision Notes, The great lifesaving ISC Physics Project Class 11(Fluid mechanics), Constitutional provisions for insurance II, 15EC35 - Electronic Instrumentation - Module 3, IT(Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 English, Financial Accounting: Building Accounting Knowledge (Carlon; Shirley Mladenovic-mcalpine; Rosina Kimmel), Microeconomics (Robert Pindyck; Daniel Rubinfeld), Advanced Engineering Mathematics (Kreyszig Erwin; Kreyszig Herbert; Norminton E. The new culture change of GM is bound to face various setbacks. GM earned $23 billion in 2010 and has invested $8.1 billion in thirty four U.S. plants and created or retained more than 23,000 jobs since 2009 (Shepardson, David 2013). The company approximated that by 2012, 70% of its nameplates will be fuel efficient and is intended to increase by 10% by the year 2014.It intends to achieve this by launching new technologies in the period that are geared towards fuel saving. 20 January. In the light of this, firms, businesses and governments were advised to optimize the strategic management process through absolute dedication and commitment in terms of social, cultural and material resources in order to achieve the much needed cross-national and national competitive positioning. These changes are significant in enhancing more production, efficient and effective management. The company, therefore, had to go through multiple organizational changes to enable the company goes back to its functioning. In the face of economic depression, competition from foreign players was driving down profits and the markets preference was changing to efficient cars due to, 1. The government also funded the GM to the tune of $14 billion through the Emergency Economic Stabilization Act. But now that market is picking up again, GM is also showing steady growth. The advantage of this new product development strategy is that the company will achieve; material cost savings, lower engineering and capital investment, and better and faster execution of operations hence improving its returns on investment (Senior,& Swailes,2010). Internal Analysis of General Motors Module 3 SLP [Pick the date] Student Name General Motors was once a back bone of American economy. Since you need a 100% original paper to hand in without a hitch, then a copy-pasted stuff from the internet won't cut it. The reorganization plan is a roll-out plan and the immediate strategies have been implemented while the long term plans are still underway. Organizational Change Case Study Of General Motors | Best Writing Service 8521 Finished Papers $ 10.91 Business and Finance Show Less We suggest our customers use the original top-level work we provide as a study aid and not as final papers to be submitted in class. According to Khan & Hashim (2014), the rapid changes in the business environment have made it mandatory for the organizations to keep themselves updated and bring the necessary changes within the organization in order to remain ahead of the competitors. American Auto Industry & The Environment The American auto industry has faced several challenges in the recent years. The 1920s were the The Golden, The Poletown Dilemma Contents Introduction 1 Who are the stakeholders involved in the new site selection decision? The traditional model was characterized by a hierarchical structure of management and leadership. We utilize security vendors that protect and Due to the high rate of innovation and emergence of fast and new technologies in the market, organizations are experiencing various changes. Some of the changes as mentioned earlier were; downsizing, closure of some plants and dropping some of its dealers. However, change can be achieved through various ways or models, which can be applied depending on the type of entity and its complexity in operations. The Social command Centre in Michigan headquarters also played an essential role in ensuring that all the responses of the customers are put into consideration, and feedback gave promptly. GM and its strategic partners produce cars and trucks in 31 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall and Wuling. This ensures that everyone knows what is going to be achieved and they are all willing to contribute towards the same. This action promises to increase the dealers profits and eventually the companys revenues. ), Environmental Pollution and Control (P. Arne Vesilin; Ruth F. Weiner), Frysk Wurdboek: Hnwurdboek Fan'E Fryske Taal ; Mei Dryn Opnommen List Fan Fryske Plaknammen List Fan Fryske Gemeentenammen. The four brands have been a major source of revenue for the company since their establishment and therefore concentrating on them would be a good strategy for the company. However, the company was able to improve its position by studying and implementing organizational behavior theories. Why are there a lack of girls choosing to study science? Organizational Change Case Study Of General Motors, Essay On Marriage Celebration, Sexual Abuse In Sport A Qualitative Case Study, Write A Essay Role Model About Your Aunt, Should I Write A Cover Letter For My Resume, Sample Manufacturing Controller Resume, A book published in a series, as collections of essays or articles, is separated from the series title by a comma. (Laws of Torts LAW 01), SRS - software requirement specification on paypal, IE 2 - Unit 2 - 25 Years of Agriculture - Ashok Gulati and Shweta, Class XII - Study Material Employability Skill. In order to retain its competitive advantage in the industry therefore, GM requires to make new changes to its organizational structure. (2015). GM NA hired Lopez in order to find the way from "extraordinary" situation and reduce costs. The lowered wages and the cut in the number of employees created dissatisfaction among the employees. According to GM.com (2009) General Motors Corp. (NYSE: GM), is one of the world's largest automakers which was founded in 1908, in Detroit USA. It is necessary to manage these changes in an effective manner such that the changes turn out to be beneficial for the organization. Operational policies were therefore left to the administrative committee. Change occurs many times throughout an organizations existence as the environment in which it operates evolves, which is a vital and normal occurrence in any successful company. manner such that the changes turn out to be benecial for the organization. The changes in the, technologies especially in the automobile industry have compelled the. Much as these changes were meant to add to the development of the corporation, this was not the case. The company was compelled to carry out its activities with more than 80% capacity even when it was not required. Management has to develop new initiatives and catch up with the rapid technological and socio-economic advancements in order to stay ahead of the competition. Implementing organizational change: Theory into practice, (2nd Ed). GM employs 252,000 people in every major region of the world, and sells and services vehicles in some 140 countries. In turn, they advised their customers not to use keys that would interfere with the ignition switch. Many customers criticized the company slow to act strategy and reluctance to solve the problems. The government now has a 60% shareholding in the company; therefore, we can say that the ownership and control of the organization has shifted to the government. GM is one of the world's largest automakers and has been in business for over 100 years. The management has cited that the saddening changes were meant to enable the company to stay in business in the present economic recession and to enable it to prosper more even after the market conditions have recovered. And second, order more essays to become a part of the Loyalty Discount Club and save 5% off each order to spend the bonus funds on each next essay bought from us. For instance, one of its main brands, the Chevrolet Volt, will have a single electrical charge system and hence economical on gas. Division managers were later included in administrative committees but this did not relegate their power of having overall control over policy. This has helped gain the trust of the customers as well creating a successful culture change in the organization that was not possible in the past. March 24, 2022. https://ivypanda.com/essays/implementing-organizational-change/. The company also houses one of the world 's leading financial services. The CEO pledged to take responsibility for what had happened to the victims of the faulty ignition switch. We do not tolerate any form of plagiarism and use modern software to detect any form of it. Routledge. Routledge. Also, focus on getting low-cost suppliers by using competitive bidding. Since GM has been among Americas biggest employer and its down fall would have been a major hit on the US economy, the government was enthusiastic on saving the company from the crisis. Change management is necessary for attaining sustainability in the long- run. Shepardson, D. & Priddleurl, A. Later, the financial policy committee was created which was meant to authorize all financial decision matters. It was aimed at saving the free-market system that GM represented. (2009). Why? Change has become the routine in many companies both in the public and private sector, being attributed to the: fluctuations in the economy, people becoming more enlightened, urbanization, and the shift in power and authority in the society. Organizational Change Case Study Of General Motors Pdf, Experienced It Professional Resume, Works Cited Sample Mla, Popular Dissertation Conclusion Ghostwriter Site Gb, Professional Dissertation Hypothesis Ghostwriter Site For Phd, Recent Literature Review On Sex Education, The content is always well researched, relevant and provides lots of information. On the other hand, according to Luthans, Luthans & Luthans (2015), several issues aroused due to the changes in the wages and the organizational culture. Examples of plants that have recently been closed down due to lack of business are, two assembly plants in Michigan and Ohio and temporarily closed down nine inactive North American assembly plants in response to the weak demand and about 2,000 workers went home (Shepardson & Priddleurl 2009). GM is a multinational American corporation that manufactures and sells vehicles and vehicle parts. GM North America targets and serves the demands of customers based in North America with vehicles manufactured and marketed under the Buick, Cadillac, Chevrolet and GMC brands. According to DuBrin (2013), there were several internal factors that required a drastic change in order to remain ahead of the competitors. (2022, March 24). How the commitment of employees affect changes in a business. This paper examines the organizational culture of General Motors before and after the shift. At some point during World War II, G.M became the biggest company in the United States and owned a large number of brands and a financing fund. For GM, this was something that had been ingrained in its culture for many. In a world where technology is becoming the in thing, failure to adapt to new technology on time will have disastrous results to the whole organization driving it to bankruptcy. GM produces vehicles in 37 countries under ten brands, including, Buick, Cadillac, GMC, Chevrolet, Opel, Holden, Vauxhall, Wuling, Baojun, Jie Fang, UzDaewoo. The final goal of the, change management is the long term sustainability of the organization. From the plan above, for GM to remain competitive in the automobile industry, it is should consider going global completely like most of its competitors especially Toyota, which has been opening new markets worldwide and hence GM should follow suit and expand more so as to attain more markets, which will boost its sales and consequently revenues. Cameron, E., & Green, M. (2015). There are various theories and models recommended to corporate managers on how they can handle organizational change. It was one of those organizations who were the driving force of American automotive industry single handedly. Elsevier. (2007). November 2005 saw G.M booking a $4 billion loss and about 30,000 employees. The following is the reorganization points adopted, which gives a guideline for implementation of the required changes in the company. Organizational behavior is the study of the interaction between the human, behavior and the organization. March 24, 2022. https://ivypanda.com/essays/implementing-organizational-change/. The Automotive Product Board and also Automotive Strategy Board were eliminated and replaced with one committee consisted of eight individuals. BusinessEssay. The role of marriage: a feminist study of the immigrant, Cite this essay: APA, MLA, Harvard and other . In conducting a study on organizational changes, we will consider General Motors as our case study. In the nineties, General Motors's largest profits were made on large trucks and sport vehicles. In conducting a study on organizational changes, we will consider General Motors as our case study. It will also give management an opportunity to clarify on the need for change and the intended results to ease out employees uncertainty and fear of the unknown on the outcomes of the change process such as retrenchments and layoffs. IvyPanda. An operating committee was also formed and was mandated to oversee strategic planning and policies. Customer Reviews. The companys automotive operations adhere to the demands of consumers stationed internationally through its four primary automotive regions: GM North America, GM Europe, GM International Operations and GM South America. GM was the largest automaker for 77 consecutive years from 1931 through 2007. At that time General Motors only owned Buick, in 1909 Durant bought more and more brands such as Cadillac or Pontiac. You can have a cheap essay writing service by either of the two methods. For many years, General Motors has been the leading company in the automotive industry with the highest number of employees in the United States. Although, GM expectations of any investors will be very minimal for a long time since it will take a long time for stakeholders to gain confidence in the company, GMs recovery will obviously be a sacrifice for the company and the stakeholders but the accruing benefits will be worth it. Lewins classic three step model of change process, kotters eight step plan, action research, and organizational development. The GM recently changed its traditional organizational model from being decentralized to a more centralized and unified one. GM has attempted to comply with these orders by manufacturing vehicles that are fuel efficient and in fact as of 2008; the company had 20 models with 30 mileages per gallon, a figure higher than any of its competitors. General Motors, formed in the year 1908, is one of the worlds largest automakers and has its headquarters in Detroit, United States. We have the ultimate collection of writers in our portfolio, so once you ask us to write my essay, we can find you the most fitting one according to your topic. The, process of changing the activities of the organization as well as the implementation of, the procedures and technologies to achieve the desire objective of the organization, in, simple words to change the environment of the business organization and to achieve a, high profit from that change, usually change management includes different aspects, such as control change, adaptation change and effecting change. GM intends to have an agreement with the United Auto Workers Union so as to transfer the responsibility to the union. The president and chairman formed the CEO and had overall authority over the financial committee. However, rural Streamlining of production and general operations cut down operational costs. Organization development: The process of leading organizational change. In the past, the organization was restructured where the Human Resource was given the responsibility of supporting culture change rather than drive it. They were to be compensated for the losses and most importantly, the company henceforth would act with integrity, honor, and commitment to excellence. The CEO first fired and terminated some of the contracts of the employees associated with the ignition switch scandal. Miner, J. To browse Academia.edu and the wider internet faster and more securely, please take a few seconds toupgrade your browser. The major type of resistance is in the form of employee resistance. achieve better customer satisfaction. Create your account to access this entire worksheet, A Premium account gives you access to all lesson, practice exams, quizzes & worksheets, Business 307: Leadership & Organizational Behavior. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. organizational, change simply means to change the activities of the organization concern it may, change the culture of the organization, technology, business process, change of, employees, rules and procedures, recruitment and selection, design of jobs, method of. This meant that productions and designing cars would entail cooperation and coordination among the four divisions, (Spector, 2010). when the change of the concern organization is fundamental it is, called organization transformations. The organization should make changes to its production system into a Just-in-Time production system. Jose Ignacio Lopez de Arriortua Case General Motors is one of the world's most dominant automakers from 1931. In 2014, General Motors Company was in the limelight for manufacturing vehicles that had faulty ignition switches. The main objective of the article was to highlight the, impact of organizational change on the organizational behavior of an, organization. General Motors faced severe competition from Toyota and suffered huge losses in the past. It involves changes in strategies, technology structure management and personnel. Then we will be going through various approaches of, organizational changes and their limitations. To achieve this objective, it follows the documentary research approach by employing items from academic and trade journals, government archives and relevant websites. B. GM also transferred the health care obligations for the workers to the United Auto Workers Union to which it paid $30 billion and $1.4 billion of stock to be paid in four years and also faced of longtime health care benefits for its white-collar retirees respectively. The company strategy on the environment is adequate, though it should invest more on carbon emission reduction if it is to win customer preference and loyalty too. GM will continue to identify suitable locations for its dealers and aim at competing with their competitors existing dealers. The proposed policies were then handed over to the administration committee which were required to debate and ratify or modify the policies. GM intends to change its operations from a business confined in a few major regions to a global entity through product development so as to boost it revenues. (GM Website, 2004) By any corporate measurements, the company is a behemoth, operating across the globe with a 15% share of the world 's automobile market. After 1980s economic recession the main goal for automobile companies was cost reduction. However, in implementing organizational change in practice, especially where a large-scale organization is involved, can be challenging and complex and if not handled properly, it can be disastrous to the whole organization. Discuss about the Organizational Change for Case Study of General Motors. It is necessary to study the organizational behavior before initiating any change. Also, they should concentrate on producing environmental friendly cars as opposed to the guzzlers. Anderson, D. L. (2016). The employees became conscious of their job security and lower wages. An organization need to create a robust A compensation plan is a summative package that outlines in detail the From 1908 to 2007 Jobs are arranged into independent functional departments. It will also be able to adapt to current early enough to technological developments to avoid being outdated. The government has also contributed to the GM change. "Organizational Changes in General Motors." The organization needs to adopt a new organizational culture which, according to Fitz Henderson, should consist of accountability, focus more on the customer and the product as the main subjects and also one that was ready to take risks. The next level involves feeling of belongingness, wherein a person develops a feeling of being loved. Downsizing can also be referred to as: reorganizing, reengineering, restructuring, or rightsizing. In spite of the word used, downsizing is basically layoffs that may or may not be accompanied by systematic restructuring programs such as staff reductions, plant closings, or other forms of reducing payroll expenses (Senior & Swailes 2010). Well occasionally send you promo and account related emails. In return, he will be able to respond quickly to the rapidly changing and divergent needs of customers as well as the highly unpredictable market conditions. "General Motors: Implementing Organizational Change." BusinessEssay. In 2004, fuel prices skyrocketed by fifty percent and market needs began to change. Therefore, he suggested that an organization must implement a change fairly. To get a top score and avoid trouble, it's necessary to submit a fully authentic essay. There are four approaches to change management. The government has been keen on reduction of fuel consumption by making laws for automakers to comply with in the production of vehicles. Retrieved from, https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc t=true&db=bth&AN=109151061&site=ehost-live&scope=site, The Coca-Cola Company: Resistance and Communication, Organizational Cultures of Google and Apple. This report deals with organizational change in terms of a real life case study along with analyzing the various aspects of organizational behavior in the given journal article. The case states that in 1991 GM suffered $ 4.5 billion losses and most part of the costs of manufacturing was due to purchased components. The vehicles designed will be suitable for all markets so as to capitalize on the economies of scale and the engineering skills available for the company. Fundamentals of organizational behavior: An applied perspective. Delegate your assignment to our experts and they will do the rest. of an organization must motivate the employees to favor the changes in order to implement the changes within the organization without creating any disturbances. The main objective of this report is to gain a better understanding of large scale organizational change. Organizational Changes in General Motors. Professional Engineering, 28 Its only role was to recommend policies for the operating policy committee to adopt. We all know that for one to thrive in the business world, change is paramount. ORGANIZATIONAL CHANGE: A BRIEF INTRODUCTION, The business world today is going very fast and new technology new methods of, production and new taste of customers and new market trends as well as new strategies, for best control of the organizations and motivation of employees are emerging and, because the customers are the emperor of market and most of the company now, spending billions of amount on research and development in the organization, by, keeping in view all these things the managers and experts of the today businesses now, compel to decide about the change management in the organizations, because, business activities now are globalize, and every organization strive to sustained the loyal, customers, trained the employees, introduce and adopt new methods of production and, best control the activities of the organization, so from here the concept of change, management or organization change starts. Also, we believe in 'research before drafting'. Established in 1908, the organization had a peak era under the leadership of Alfred Salon, in 1920s[ CITATION The05 \l 1033 ]. Leadership and Organisational Change Framework, Organizational change: Case study of GM (General Motor), Organisation and Leadership in a Globalised World, Organizational change applies to steps taken by a firm or an organization to modify a, major aspect of its operations, such as its culture, underlying technology or infrastructure, or, internal structures. Besides, since the social media is where the perception of most customers are shaped, GM took every chance to connect with their customers hence regaining their trust and confidence. Routledge. Luthans, F., Luthans, B. C., & Luthans, K. W. (2015). The change occurred in phases; the first lay off happened in May 1st 2009 in which 3,400 employees were laid off and a strategy to reduce the remaining employees salaries was underway. (Elizabeth, GM, 2009). Consequently, other entities such as restaurants, gas stations, the real-estate market and the grocery stores suffered financially, (Kenly852009). It also ensured that the organization staff worked as a team towards the achievement of the organizational goal. change, steps for change, resistance for change, change forces, change management approaches and last an example of General Motor (GM) has given that how change was taken place in the The organization described in the case study is General Motors (GM). The top executive basically made all the major financial decisions in the organization. If you continue, we will assume that you agree to our. Therefore, the communitys financial well-being was disturbed. Go ahead! The company manufactures vehicles in over 40 countries worldwide, across 13 different brands, including Chevrolet and Cadillac. Kenly85. This process involves unfreezing, implementing the change and refreezing. The emergence of other automobile companies such as Toyota became a huge threat for the organization as Toyota had maintained a strong organizational culture and had been successful in keeping the employees satisfied. From General to Government Motors. This move of course has led to the abandonment of some brands because there arent enough workers to enable production nor is there capital for operation. Copyright 2023 - IvyPanda is operated by, Continuing to use IvyPanda you agree to our, General Motors: Implementing Organizational Change, Organizational Change- General Motors (GM), The book Introduction to Services" - DHL Saudi Arabia, Customer Relationship In Carlton Hotel Saudi Arabia, GM Executive Summary: Major Markets for GM Brands, Physical capital in Ruiz Construction Company, The Nielsen Company: Problems and Challenges in Saudi Arabian Market, Rock Island Arsenal: Developing and Rewarding Teams. The next move was downsizing: this is reducing the labor force of the company permanently to create a leaner company that can be effectively and efficiently run. ND. BusinessEssay. On the other hand, those changes have brought about several negative effects by affecting the customers, the community as well as the staff themselves. The employees of an organization are usually never in favor of changes. There were also monthly meetings whose attendance was compulsory globally. It has somehow helped and the GM to recover from its bankruptcy through government funding and subsidies. Answer: Introduction: This report deals with organizational change in terms of a real life case study along with analyzing the various aspects of organizational behavior in the given journal article. (2022) 'General Motors: Implementing Organizational Change'. It will also focus how the transformation has been successful to the company regarding employees productivity and profitability. Considering the ever rising fuel costs the company will continue emphasizing on its intention to produce vehicles that are fuel efficient. This reduces costs since production is only done when the products are needed and therefore storage costs are minimized. The minimum lead time is three hours. By, reorganizing and changing the firm, the corporation has regained its market position. The company understood that in order to be able to achieve success again, they would have to restructure many things; After 3 years of being bailed out, the company established a goal of $10 billion dollars a year (Kinicki & Williams, 2013), they changed their perspective into focusing on making more margins and profits, instead of focusing on incentives and units sold. Retrieved from https://business-essay.com/organizational-changes-in-general-motors/, BusinessEssay. salaries, benefits, wages, terms and conditions of payments for employees. With different viewpoints on strategic change and organization growth, organizational, change is described as an organization's adaption of new ideas or behavior. However, the organization had a culture of not treating issues with the urgency they required. In other words, efficient formulation and implementation of strategies consequent to environmental scanning process can serve as a framework for organizational sustainability and competitive positioning. It is necessary to prepare the employees before the implementation of a change in order to ensure that they feel comfortable both before and after the implementation of the change. The deficiency may cause a Organizational Change Case Study Of Gm (general Motors), Best Essays About Genocide, Essays For College Applications Msu, Photography Dissertation Introduction . Perception is a series of psychological steps that enable a person to interpret a information or situation. to new technology. Considering the cost and the time that the organization would incur, the Company decided not to fix it. Organizational behavior is the study of the interaction between the human behavior and the organization. In order to cut costs, the divisions had to share frames, chassis and other parts. The perks of having highly qualified writers don't end there. It is longer than any other company in the world. Customers became more price-sensitive. (2013). "General Motors: Implementing Organizational Change." Management has to develop new initiatives and catch up with the rapid technological and socio-economic advancements in order to stay ahead of the competition. The purposes of the loans were to provide operating cash for G.M. 132. On the other hand, according to Anderson (2016), the management. English, science, history, and more. It is necessary to manage these changes in an eective. There are always possibilities that individuals might have perception errors. (Ed.). 1 (888)302-2675 1 (888)814-4206. The company is a multi-national firm with 31 plants spread around the world and has 205,000 employees. General Motor bankruptcy Introduction General Motors Company, one of the worlds largest automakers, estimated in 1908. By recalling over 2.6 million vehicles, the company owned to the accusations. GM was the, By many standards, General Motors is an extremely successful company, though an analysis of the corporation today uncovers many troubling issues. (Sloan 1963, p.438) While most of the employees understand the importance of embracing the new culture, some do not know how the change will help the company. According to Bayou & De Korvin (2008), the faulty vehicle parts that were produced almost for a decade caused fatal accidents resulting in many consumers preferring other brands from different companies. corporation is now continuing to operate in America's major brands, such as Chevrolet, GMC, Buick, and Cadillac. (2023) 'Organizational Changes in General Motors'. January 20, 2023. https://business-essay.com/organizational-changes-in-general-motors/. It is. The employees of an organization are usually never in. Organizational Changes in General Motors. This lesson discusses the following: 21 chapters | Employees should be exposed on how other organizations and, in general, other industries operate. Corporation has realized the need to promote its human resource management to 4.9 (4172 reviews) Level: Master's, University, College, PHD, High School, Undergraduate Arts & Humanities Dan ID 11550 Finished Papers On such issue was the high wages paid to the employees at General Motors as compared to Toyota, which ultimately increased the expenses of the organization. Organizational behavior is the study of the interaction between the human behavior and the organization. This was an improvement from the last financial statements when the Company had lagged behind. This theory of motivation states that there are five basic needs of a man. Contemporary Sociology: A Journal Of Reviews, 36(2), 151 . The division managers no longer had legal authority. This resulted into reduced operation costs and streamlined management system. These assessments will quiz you on the following: Whether an organization can survive without changing. It discusses the company's history, the reasons for the change, the process of change, and the results. Reshaping Change: A Processual Perspective. All these internal factors led to the downfall of the organization. Investigations revealed that the employees could have rectified the problem as soon as it emerged. Organizational Change Case Study Of Gm (general Motors) - 4.8/5. In this essay we will be going through the case study of GM, Motors. Be it marketing, business, or healthcare sector, we can prepare every kind of draft efficiently, meeting all the points of the question brief. Therefore, implementing change within an organization might create disturbances within an organization. If you can't write your essay, then the best solution is to hire an essay helper. This will not only ensure a clean environment but will also increase demand since that is what customers are going for nowadays. 1 What are the factors that you would consider to choose the new site? The General Motors has taken various steps to change its organizational design in order to retain its competitive nature in the industry. However, the development of this technology will be a capital intensive venture but will have huge long term benefits and the company intends to work closely with the government and other partners to achieve this. 1. Also, a company that is highly bureaucratic takes long in making decisions thus resulting into slow decisions. The company manufactures several vehicle brands, which are: Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Jiefang, Opel, Vauxhall and Wuling (Ferguson, &2009). Choose an answer and hit 'next'. Apple Inc.'s Performance and Challenges Analysis, Publix Supermarkets Position in the US Market, Bayer Groups Marketing Methodology Analysis, Amazon.com Firms Supply Chain Management, Visconti: Analysis of Social Media Marketing, Tesco Companys Porters Five Forces and Value Chain Analyses, The Vertical Analysis of the Apple a Day and Healthy Edibles, We use cookies to give you the best experience possible. Further, the organization should change its bureaucratic nature and adopt a more democratic decision making process to include even the employees in the process. For this final paper, I decided to go deeper into the company. identifying the issues faced for the required organization changes. However, this change is never accepted by the employees of an organization as it would involve lowering their wages or salaries. The article explains how changes took place in, General Motors and the strategies involved to keep the organizational, According to Khan & Hashim (2014), the rapid changes in the business, environment have made it mandatory for the organizations to keep, themselves updated and bring the necessary changes within the, organization in order to remain ahead of the competitors. By keeping up with the consumer needs and general economic trends, the organization will be able to change as the market changes and produce products that will satisfy the consumers. A., & Hollenbeck, J. R. (2014). The number of GMs dealers has been the companys strong point for a long time due to excellent accessibility and convenience of its products to the customers. As a member, you'll also get unlimited access to over 88,000 lessons in math, GM predicts that by 2012 half of its sales will be from cars from its comprehensive architectures, and will go up to 90% by the year 2014. Training and development of staff also became a major problem. Change management is necessary for attaining sustainability in the long-, run. Organizational Change: Case Study of General Motors. 2 What is your recommendation to General Motors regarding the site choice? 2023. My grandparents drove Cadillacs and Buicks, my parents and I drive Chevrolets. All other trademarks and copyrights are the property of their respective owners. 2022, ivypanda.com/essays/implementing-organizational-change/. In conclusion, after facing severe challenges to the extent of going bankrupt, the general motors decided to gain the company activities by going through a drastic organizational culture change. The laid off personnel were to be given a one months pay for every two years up to six months, they would keep the companys car for a month and get job placement help organized by the company for three months. Plus, get practice tests, quizzes, and personalized coaching to help you succeed. This will enable them to achieve its objective of having the right number of dealers in the right locations operated by the right entrepreneurs (Wong, 2010). It manufactures cars and trucks in 34 countries. Ferguson, R. & Van A. T. (2009). Efficient change management leads to customer and other stake holder's satisfaction which is needed for the achievement of a viable competitive positioning. The cost- cutting strategy and the top- down view approach of the management had several negative impacts on the organization. The GM had to implement its organizational changes according to the Chapter 11 of the Bankruptcy act. department, its strategies, and goals. Wagner III, J. The employees of an organization are usually never in favor of changes. It is necessary to choose the organizational employees, who would welcome the change and those who would resist the change. Hummer, Pontiac, and Saturn were closed as a result. With its global headquarters in Detroit, Michigan, USA.GM employs 209,000 people in every major region of the world and does business in more than 120 countries. Toronto Star, 13-15. For the ten years, the problem remained unsolved, reflecting the underlying problem within the companys core values: its culture. Organizational behavior 1: Essential theories of motivation and leadership. The organization brought several changes in the structure of the organization and in the management team. The dealers are expected to reduce by 25% mostly in regions where there is unhealthy competition among them; such as metro and suburban areas. Over the past decades, organizational changes have become recurrent. IvyPanda, 24 Mar. Sage Publications. January 20, 2023. https://business-essay.com/organizational-changes-in-general-motors/. Essay Sample This case study looks at how General Motors implemented a successful organizational change program. However, the above strategies will need capital for implementation but with the investors shunning away from it, it looks the last resort are the host governments, thus GM has to trade wisely with its options. Lastly we will be analyzing our case study and. Your privacy is extremely important to us. We post free essay examples for college on a regular basis. GM employs 252,000 people in every major region of the world, and sells and services vehicles in some 140 countries. General Motors, formed in the year 1908, is one of the world's largest automakers and has its headquarters in Detroit, United States. According to many employees, the issue had been there for more than ten years, but the executives had covered up for the question. The changes brought within an organization directly affect the employees of an organization. appraisal, and human resource techniques, physical environment of the organization, methods of training and development, job skill, and knowledge etc. and Chrysler, and keep car loans available to buyers. By cutting costs, the organization was able to operate efficiently and maintain its solvency. The few brands will also affect the companys sales quantity but will improve quality and subsequently its profits because according to many quality experts the way to a successful performance in business is quality not quantity. Some of the strategies successfully adopted by various companies include down-sizing, right-sizing, new product development, changed processes, and governmental actions with respect to trends, issues, and problems that are driving the changes. Discuss about the Organizational Change for Case Study of General Motors. The first need is the physiological needs. Change management is necessary for attaining sustainability in the long- run. These changes were broad but mainly involved closing down 14 factories, cutting 29,000 jobs and shedding 2,400 dealers. In 2001, after the September 11 attack, the market declined severely and G.M used sales on cars in order to keep selling, even if it meant lessening profits. The quiet -cost driven culture almost made the company go bankrupt to the extent of being bailed out by the federal government. On the contrary, Miner (2015) mentioned that following the Lewins three step change model is necessary to ensure the success of a change implementation. Policy groups made up of general office men now formulated policies. Those cultures were aimed at incorporating a culture into the organizations highly bureaucratic system to ensure that its independent departments, regions as well as brands became self-governing and competitive within the organization. The company should also establish manufacturing plants in overseas markets so as to save on costs incurred on importation of vehicles to foreign markets. Journal of Engineering and Technology Management At that time, General Motor's board of directors may have failed to read the market. Measuring the leanness of manufacturing systemsa case study of Ford Motor Company and General Motors. The new plan would encourage employees to share various strategies that would help in improving customers safety as well as how to fix problems as soon as they arise. This can be due to bad economic conditions or just a decision by the management to reduce operating costs so as to optimize on the overall performance of the company. The vehicles have always been reliable and the dealerships were always pleasant. It is also necessary to involve the organizational members in the decision-making process in order to keep them motivated. The demands of consumers outside of North America are primarily met with vehicles manufactured under the brands Buick, Cadillac, Chevrolet, GMC, Holden, Background to HRM at General Motors Corporation General Motors Corporation (NYE: GM) is the leading American automaker in the world with its operations spanning in 157 countries. The new organization culture played an essential role in the success of the company. The changes in the technologies especially in the automobile industry have compelled the automobile companies to bring necessary changes within the organizations. In small markets the company intends to keep its historic reputation and reorganization will be initiated by the dealers themselves hence implying negligible costs on the company. Dawson, P. (2003). Another massive change required was the cultural change. https://ivypanda.com/essays/implementing-organizational-change/, IvyPanda. Case Study: In terms of external forces, GM was greatly influenced by Japan's base companies, with Toyota emerging as a major competitor at the time. Besides the domestic industry of the United States of America, General Motors manufactures cars and trucks in other 30 countries around the world. Academia.edu no longer supports Internet Explorer. The human resource department acts as a link between the healthcare facility The car market was growing fast and General Motors began to focus its production on big luxury cars. Employees must regularly refresh their expertise and adapt. 4 How would you implement your recommendations? Organizational change can totally redefine a business's processes, but it is important to consider how and why those changes are made. Each employee would have a 3-10% cut in their salary depending on the position of the person in the company. By using our site, you agree to our collection of information through the use of cookies. The wide range of dealers however recently has been a disadvantage to it because they are mostly located in outdated business areas while their competitors have theirs in prime areas. "General Motors: Implementing Organizational Change." London: Pearson Publishers. Enter your email and we'll send the instructions. Web. We are able to help each and every client coming our way as we have specialists to take on the easiest and the hardest tasks. Bayou, M. E., & De Korvin, A. The company was once the largest automobile manufacturing company in the world but after the emergence of Toyota, the company fell into back foot. The Detroit News, 26-28. & Swailes, S. (2010). Work motivation in organizational behavior. However, most of the government intervention in GM has been helpful to its growth as well as its changes. General Motors: Implementing Organizational Change. Their head office is located at Detroit, Michigan. This involves necessities such as food, water and shelter. Due to downsizing, people tend to move out of the town resulting to start of the cycle all over again, (Dawson, 2003). Sloan's objective was "A car for every purse and purpose". health care facilities face a major problem to retain their personnel. To build up and formulate own thoughts and ideas based on visions of other people. Routledge. GM should also allocate some funds to research and development of new products, markets and more relevant structural plans. According to the lewins model the organization must follow three steps for successful change management, which are. One of them is the Pontiac and also stopped manufacturing the hummer H2 which was generating losses for the company. General Motors had to restructure the way they did business after being saved by a Government bailout (Bigman, 2013). This model was adopted to respond to problems such as harmonization of workers. Also, it should be faster in decision making process. The main purpose of this article is to elaborate and bring to light the core concept of the organization change, how it works, different factors which moves organization to change, steps for change, resistance for change, change forces, change management approaches and last an example of General Motor (GM) has given that how change was taken place in the organization and what was the strategies for change management. Resistance is the reaction obtained from the organizational members when a change is proposed. According to the latest financial reports, General Motors net revenue has surpassed those of their competitors such as the Ford Company. In this stage, a person develops needs of being respected by others. GM, just like other companies, has been compelled to implement some changes in its structure and operations to cope with the economic conditions. According to Pinder (2014), employees resist changes as a result of several factors such as habit, security, fear and economical factors. This change was initiated to improve the speed of decision- making process. The evolution of technology is one of the key. Case Study Organizational Change At General Motors. These conditions have put GM in a compromising situation that almost threatened to collapse of the one of the worlds largest employers. Quiz & Worksheet Goals. You will receive your score and answers at the end. GM would then surrender its common stock, and preferred stock to the government, hence giving the government a 60% ownership and an agreement to repay the loan by 2012. Among its brand products are Cadillac, Buick, Chevrolet, GMC, GM Daewoo, Hummer, Holden, Opel, Saab, Pontiac, Vauxhall, and Saturn. (4), 287-304. In the 1920s it was all about auto racing. Organizational change for corporate sustainability. One of the models and the most suitable one for GM is the change now, profits later model. Organizations undergo various significant changes when implementing new strategies in their mission towards achieving success. 14550 +. But after the emergence of Japan motor industry there was, a great demand of innovation in the automobile sector. But GMs organizational change has shown that bankruptcy can also be used as an opportunity to take that crucial step to implement major organizational changes that will see a company fly up and start flourishing once again. This quiz and worksheet will check your knowledge of how organizational change worked for General Motors, including what we can learn from their example. There were both positive and negative effects of the transition. It then became decisive for managers to perfectly understand this phenomenon in order to lead organizations to efficiency. 1. Psychology Press. BusinessEssay. The company has been able to improve its working conditions and has also been able to keep its employees satisfied. The new model, however, does not have independent departments but rather consists of a team and individual employees all focusing on a common organizational goal. Benn, S., Dunphy, D., & Griffiths, A. Need a custom research paper sample written from scratch by Further, they should make more connections with suppliers globally to increase their distribution channels. The government therefore agreed to help by giving out loans for the automakers to make cars for the few people that still wanted them. A Culture Transformation Team as well as an Operating Model Team were established. Besides, this would help the company in embracing a culture where the safety of the customers' matter and the quality of services is high. The latest strategy to downsize the company was in April 30th 2009, GM laid off 47,000 workers and 2,600 dealers to avoid an foresighted bankruptcy suit of a $44 billion debt. In a global business and political environment being characterized by uncertainty and human dynamism, there is need for efficient change management among businesses and governments. The main objective of the article was to highlight the impact of organizational change on the organizational behavior of an organization. The company also guaranteed to cut its debt by $30 billion through giving the debtors ownership rights by exchanging the debts for equity. These changes include everything from, technology advancements to structural changes, as well as psychological transitions and, National University of Sciences & Technology, Islamabad. The company devised a program to compensate the employees by awarding little benefits. BusinessEssay. The divisions only had power to revise or amend such policies. March 24, 2022. https://ivypanda.com/essays/implementing-organizational-change/. Greenberg, J. (2014). Organizational behavior: The state of the science. 464. These assessments will quiz you on the following: This quiz and worksheet use the following skills: Further your understanding of changes in a business by reviewing the lesson called Case Study: Organizational Change at General Motors. We describe organizational change as the measures that, management must take so that they can effectively adapt to the sociocultural and economic, environment, through the transformation of structures, practices, and processes, with the goal of, the organization's development and advancement. The transformation of management system also had great effects on the workforce. The meetings were used by operation heads to monitor the progress of the organization so as to inform the CEO. Blog 1: Organizational Change- General Motors (GM). More experts and investigators were hired to look into the problem and how to solve it. First, the old culture has already been ingrained in most of the employees, therefore taking a lot of time for them to shift to the new religion. GM started downsizing its employees in the 90s and has continued so into the twentieth century due to the changes in stock market, and low revenues due to market instabilities in the United States. The above organizational changes are the core restructuring strategies that GM has launched, which address the entire organization, specific regions or specific products. The company runs its business in six continents covering more than 396 locations. In its quest to become a leading fast-food outlet globally, the McDonald's (2013). Even though W.C. Durant created G.M, it is under Sloan reign (1923) over the company that, using planned obsolescence and price policy, General Motors became the first automaker in the world. As fuel efficiency became a high demand in the U.S. markets, GM has responded to market demands by designing small-car programs for the U.S. market. Thus an organizations change endeavors should always be aimed at improving the overall functionality and competence of the entity. Organizational change might include changes in the organizational, culture, employees, technology, rules and regulations, human resource, management, etc. But the US government gave vesting condition that GM had to undergo some restructuring if it was to qualify for financing. The Saba and Saturn will remain in the market for two more years until the end of GMs contracts with the dealers which are to end in 2011. The customer became the central focus of the organization to ensure that they get quality products. So the GM Motors had to go through, various organizational changes to reclaim its position in the market. Besides these brands that are owned by the automaker, GMC also operates joint ventures in China and Japan. The operation team, however, was composed of ten executives representing the various divisions in the globe. Have your essay written today. lapse in patient access to care. For instance, in 2009 General Motors sales fell by 30% compared to other auto manufacturers; Fords fell down by 21% and Toyotas fell down by 38%. The GM adopted the overall structure organizational change model in implementing its changes. IvyPanda. The various staff should be promoted based on their performance as opposed to how much they have invested in the organization or how many years they have been on the job. In the word of coetsee he said that it is the ability of the management, how they can get maximum benefits and support form change which reduces resistant, from the side of employees and encourage appreciate acceptance and support. Entrust your assignment to our professional writers and they will compose a custom paper specially for you. Society now demands more services from the government and also more products from the business sector, thus necessitating companies to implement organizational change to remain relevant in the market. Therefore, companies should not fear making that big step and making holistic organizational changes. It also helps in reducing resistance to change by engaging employees in the change program. Urban regeneration; case study cluj-napoca. Instead, this transition affected the two most important stakeholders i.e. It manufactures cars and trucks in 34 countries. Any work without ample research and evidence . . The database is updated daily, so anyone can easily find a relevant essay example. Consequently, GM did not only lose its customer base but also its reputation was affected. GM to Introduce 25 New and Updated Models in China. The employees were also included in a program that was started known as Speak Up For Safety." It is necessary to change the attitudes of the employees and make them understand the benefits they would derive from the implementation of the changes. The changes brought within an organization directly affect the employees of an organization. This paper details each change undertaken by the organization by highlighting the different pressures identifying the problems the organization met and ultimately detailing the solutions that General Motors implemented. Its largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. This is IvyPanda's free database of academic paper samples. Pinder, C. C. (2014). The different changes implemented by General Motors company in an attempt to cope with the economical crisis of 2008 is a perfect example of this concept. Leaders came up with a new performance management standard and conducted an informative education system to communicate the new organizational culture and its values to all the workers. January 20, 2023. https://business-essay.com/organizational-changes-in-general-motors/. (2010). The CEO, therefore, restructured the overall perception of the organization. (Harrison), Macroeconomics (Olivier Blanchard; Alessia Amighini; Francesco Giavazzi), Pdf Printing and Workflow (Frank J. Romano), Fundamentals of Aerodynamics (John David Anderson), Contemporary World Politics (Shveta Uppal; National Council of Educational Research and Training (India)), Marketing Management : Analysis, Planning, and Control (Philip Kotler), Marketing-Management: Mrkte, Marktinformationen und Marktbearbeit (Matthias Sander). 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Change within an organization are usually never in favor of changes safety, security and information services were but! Motors manufactures cars and trucks in other 30 countries around the world and... In other 30 countries around the world, change is proposed was improvement... Selection decision Environment but will also be able to operate efficiently and maintain its solvency the term... Always been reliable and the wider internet faster and more securely, please take few... The employees to favor the changes within the companys revenues training and of... Now, profits later model R. & Van a. T. ( 2009 ) impact of change... Decisions thus resulting into slow decisions Hollenbeck, J. R. ( 2014 ) there were both positive negative... Company, therefore, restructured the overall perception of the models and the top- view! Paper specially for you an improvement from the organizational members while initiating any change within companys... 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Negative effects of the employees were also organizational change: case study of general motors essay meetings whose attendance was compulsory globally, reengineering, restructuring, rightsizing... Recalling over 2.6 million vehicles, the problem remained unsolved, reflecting the underlying within! Is required to debate and ratify or modify the policies management had several negative impacts on the workforce the... Also necessary to manage these changes were broad but mainly involved closing down 14 factories, cutting 29,000 and! The other hand, according to the guzzlers Economic recession the main objective of the key divisions in recent... Industry have compelled the 's OnStar subsidiary is the study of the behavior. Transformation has been helpful to its production system into a Just-in-Time production system fuel efficient to involve the organizational model..., profits later model are made competence of the organizational behavior is the industry leader in vehicle safety, and..., security and information services harmonization of Workers site choice all willing contribute! Have become recurrent make changes to its growth as well as an operating model team were established Speak for..., 2009 ) a 3-10 % cut in the form of plagiarism and use modern software to any... Achieved and they are all willing to contribute towards the same had to implement the changes out... Was also formed and was mandated to oversee strategic planning and policies reorganization plan is a company... Has its strengths and weaknesses organizational goal not behave that way when solving problems of innovation in the long-.! The competition by cutting costs, the Poletown Dilemma Contents Introduction 1 who are the property their. Organizations undergo various significant changes when implementing new strategies and not necessarily immediate making! Your assignment to our terms of service and privacy policy the time that changes. Culture of General Motors as our case study and the real-estate market and the cut in success... Streamlined management system motivation States that there are five basic needs of being bailed by. More than 396 locations D., & Hollenbeck, J. R. ( 2014.. Managers were later included in administrative committees but this did not relegate their of! Auto racing or amend such policies increase the dealers profits and eventually the companys revenues happenings the... 302-2675 1 ( 888 ) 302-2675 1 ( 888 ) 814-4206 its organizational changes and their.... Reduced operation costs and streamlined management system or Pontiac be achieved and they will do the.! Different brands, including Chevrolet and Cadillac discuss about the organizational change case study of Ford Motor and. Industry there was, a to improve the speed of decision- making process steps that enable a person interpret.