...Organizational Change If you are a business leader today there is one thing that constantly runs through your mind, “How can we continue to succeed and grow.” In today’s society it has become harder and harder to accomplish such a task. The world is ever changing and it does so in a pace that is far more rapid than that of 20 years ago. Business leaders know that change is inevitable, but where the problem lies is how to manage the change in a way that will allow for continued growth and success, but at the same time they want to be able to do so with as little stress as possible to the employees. There are hundreds of ways to make changes in an organization, and plenty of people out there pitching their ideas as the best. It is up to the business leaders to find a technique that will best suite their needs as an organization, a technique that will give them the results they are looking for, this is the case with General Motors. General Motors is made up of four different auto makers (Buick, GM, Pontiac and Chevrolet) and each one runs independently from the others. GM decided that having four independently ran divisions, which competed against one another was more costly than beneficial and they searched to find a way to change this for the better. ...
Words: 1858 - Pages: 8
...Ford which have undergone fairly substantial change in the recent past; and how they handled the pressure of change. Lapratt04@yahoo.com HRM-587-12043 Managing Organizational Change Professor Joseph Phillips Due September 7, 2014 Abstract Ford and GM experienced serious issues during the pre and post TARP causing them to restructure and change how they do business. Each of them reacted to these pressure differently. Ford Motor Company as one of the greatest automobile manufacturers of all time started under the leadership of Henry Ford in Detroit, Michigan. His first production was in 1903, the Model A, with an under the floor engine selling for $850. In the first season it sold 1,708 cars (HISTORY of Ford Motor Company, 2014). Whereas General Motors was founded in 1902 by William Durant, who saw that the automobile would one day replace the horse-drawn carriage. The company did not really catch on until 1908, and at first, it was just a Buick holding company. At the end of 1908, however, GM had acquired Oldsmobile, and in 1909, they bought Cadillac, Elmore, and Oakland. The early 1900s were a difficult time for auto manufacturers; the market crash of 1907 adversely affected a lot of small companies, which relied on the banks for credit. Durant saw the economic downturn as an opportunity; he bought smaller car makers, as well as companies that built auto accessories and parts. In 1908, these were all folded into the GM stable (The History of General Motors, 2014). ...
Words: 2106 - Pages: 9
...THE CHANGE PROCESS IN GENERAL MOTORS AND FORD This brief analysis reflects on the change management processes employed by the two motor companies; Ford and General Motors. The references discussed in this paper were a source of information that provided knowledge into the 2 major corporations and the transformational changes that they underwent in an effort to ensure their profitability and viability. Both GM and Ford underwent major decline and loss in stock some few years back and even as one filed for bankruptcy (GM) the other hard not to, and succeeded. Both companies needed to make some changes in an effort to recover. In an article by Terry Corbell, as he points out the 7 lessons that other businesses could learn from the Ford motor Company, he infers that If a business is performing in a mediocre fashion, chances are the company needs an overhaul. A culture change, if you will. And for a positive case study in change-management, Ford Motor Company qualifies (Corbell, 2013). Ford has had similar endorsements; ever since after being hired, CEO Mr. Mulally managed to notably install a competitive, sustainable business model that pulled Ford from the brink. Durbin and Krisher seem to agree with this assessment even as they also voice some doubts. Mulally has transformed the company into a simpler, nimbler organization that's ready to react to change more quickly, but experts are not so sure the change will last. Management experts say it's easy to talk about a willingness...
Words: 1366 - Pages: 6
...A At General Motors we value our people. At GM it is very important to us to have incentives, conduct training and education in promoting innovation within the company. Each of the roles mentioned above play a very important role in order for GM to promote growth in the company. Some employees need to be motivated and incentives are a great way to promote growth. Training and education is what makes GM such a successful company. GM takes the time to train and educate their folks with the next new thing out their in designing and marketing and so forth. General Motors knows that with bold imagination, staying focused and disciplined they have the power to create new ideas. GM realizes that staying current in technology and with imagination the potential for creating positive change in the world will benefit everyone ("General Motors", 2014). What is the role of leadership in creating, managing, and sustaining innovation in your organization? What are the ethical implications of an individual reward system? Support your answer. Would you describe your organization as innovative or noninnovative? Explain your answer. Write a 700- to 1,050-word response to the following questions: • How would you identify and characterize the roles of incentives, training, and education in promoting innovation in your organization? • What is the role of leadership in creating, managing, and sustaining innovation in your organization? ...
Words: 282 - Pages: 2
...than 120 countries. 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. (Elizabeth, GM, 2009). GM was the largest automaker for 77 consecutive years from 1931 through 2007. It is longer than any other company in the world. In 2008, it was surpassed by Toyota (Elizabeth, GM, 2009). 2009 was a very important year in the 103 years history of GM. General Motors filed for Chapter 11 bankruptcy protection on June 8, 2009, after racking up losses of $81bn (£50bn) over four years, as part of the Obama administration’s plan to shrink the automaker to a sustainable size and give a majority ownership stake to the federal government. GM sold its good assets to a new, government-owned company. Federal government took a 60 percent ownership stake in the new GM. The Canadian government took 12.5 percent, with the United Auto Workers getting a 17.5 percent share and unsecured bondholders receiving 10 percent. (Isidore, 2009) There is a serious of issues existing such as demand shift and uncertain energy policy, high financial burden incurs from legacy cost, failure in innovation and hyper competition that lead to GM‘s bankruptcy. The bankruptcy of GM not only impact on their shareholders but also the employees and consumers are involved. Impacts of the collapes Concerning with the employees of GM, the collapse leads...
Words: 1848 - Pages: 8
...Running Head: THE FAIL & SUCCESS MERGER HRM587 – Managing Organizational Changes January 18th, 2015 Chrysler, Fiat and GM are OEM automotive producers. Both GM and Chrysler are considered one of the top automotive companies being GM number one and Chrysler who is lagging behind Toyota and Ford as the number four OEM automotive producers. However all three GM, Chrysler and Fiat were struggling to maintain and gain more market share. It was definitely a competitive in trying to gain more market share between GM and Chrysler. Fiat who is also an Italian OEM automotive producer also had its issue as well in keeping market share in Italy. Fiat also had their own issues in Italy with trying to stop the bleeding of losing money to where the Italian government had to bail them financially back in the day as well. So anyone would think that a merger between either of these companies could serve to be a win-win for both. But that only happen in one scenario. With both GM and Fiat struggling to hold market share in there perspective regions they decide to hold talks about the two companies merging. Sometime in 2000, GM and Fiat decided to enter into a joint venture or some may call it entering into an alliance. GM had acquire a 20% stake in Fiat and Fiat had acquired only 6% of GM. (GM Pays to Walk Away, 2005) GM entered into this alliance to try a save their Latin American Division from declining sales and Fiat entered into this alliance to try...
Words: 451 - Pages: 2
...In 2008 GM was a “near total wreck”. “There were too many employees, too much money tied up in benefits and legacy costs, too many brands, and too many plants. The insularity of the management team in choosing insiders with automobile credentials and the bureaucracy that hobbled and delayed decision-making had all contributed to the disaster” (Grossman, 2012, n.p.). People believe that HR had been responsible for many of the poor decisions made to push GM into bankruptcy. Rob Kleinbaum stated, “There were about 20 people at the very top level overseeing a lot of bad decisions, and she {Barclay} was one. If you believed that the culture contributed to the problems, which most people did, she had to go” (Grossman, 2012, n.p.). In recent years GM has been focusing on cultural change and cost cutting programs. The new GM revealed its new emphasis after bankruptcy, which focused on “customers, cars and culture” (History & Heritage-Rebirth, n.d.). Brinkley introduced a new mandatory training program for all managers to take called “Leading in Today’s GM”. She has also implemented annual employee engagement surveys (Grossman, 2012). GM has been criticized for their top down approach of culture changing in the past. The company has a history of mistrust towards its employees. In my opinion it is a company’s biggest failure- not learning from other “top-down culture” changes that did not place trust in their employees. After learning about the conflict techniques, it’s...
Words: 687 - Pages: 3
...gm caseHistory: “What’s good for GM is good for the country, now GM is bankrupt so it’s true that what’s bad for the GM is bad for the country”. General motors were founded by William Billy in 1908, has production units in 31 countries and business operations in 158 countries. The company deals in automobiles and has remained as a market leader for decades. After its 100 years now the company filed a petition for bankruptcy in 2009. The company financial reports were showing a decreasing trend since 2005. The case study has discussed the root causes, issues and their implication on the future of GM. Also suggestions are given and we will also add some more to it. Root causes: 1) The biggest mistake was that GM stopped the EV1 electric car program. Toyota came forward with that and took the lead in the form of hybrid car (Prius). 2) Another mistake was the selling control of general motors Acceptance Corporation which was the financial strength of GM. 3) GM Over reacted to the truck boom. They diverted money and time to production of SUV’s (sports utility vehicles) 4) According to some experts the initial mistake was not filing the bankruptcy sooner. 1) GM management was unable to access adverse economic environment. US economy was going through recession. 2) GM financial discipline was weak. The directors were unaware of financial regulations and Further GM was having very unregulated credit system. 3) Raw material prices were high. 4) GM was...
Words: 673 - Pages: 3
...months this problem has been going on since 2001, almost 15 years. To make this problem even worse GM was just bailed out by the Government of the United States of America in an attempt to save the economy from another economic decline. There have been several court cases brought against GM due to fatal crashes. According to The Wall Street Journal, the first fatal crash involving 2005 Cobalt whose airbags did not deploy in a frontal collision. (Wall Street Journal) That is nearly 10 years that GM has looked the other way while the problem with their vehicles killed people. This is a big problem. There are many customers that rely on GM to give them not only quality but safety and piece of mind. GM has failed their customers, the country, and to abide by the law. Something must change if GM wants to be around in the future. They will have to change everything about the way they run their business. As I discuss GM I will cover how human resources management will deal with the faulty parts, federal reporting compliance and law, future lawsuits, and public image. Human resources have many things to recover from. There have been many mistakes that have been made. As I was looking into the past of GM and who all might be responsible for this horrible mistake there is one lady that has popped up. According to workforce.com, Katy Barclay on Thursday, July 30 2009 stepped down from GM. She was the head of human resources and longtime executive. “The retirement of Barclay, 53, who has...
Words: 1177 - Pages: 5
...components being provided to the early automotive industry by Durant-Dort, it can be reasoned that GM actually began with the founding of Durant-Dort.[3] Durant acquired Oldsmobile later in 1908. The next year, he brought in Cadillac, Cartercar, Elmore, Ewing, and Oakland (later known as Pontiac). In 1909, General Motors also acquired the Reliance Motor Truck Company of Owosso, Michigan, and the Rapid Motor Vehicle Company of Pontiac, Michigan, the predecessors of GMC Truck. A Rapid became the first truck to conquer Pikes Peak in 1909. In 1910, Welch and Rainier were added to the ever-growing list of companies controlled by GM. Durant lost control of GM in 1910 to a bankers trust, due to the large amount of debt (around $1 million) taken on in its acquisitions. Durant left the firm and co-founded the Chevrolet Motor Company in 1911 with Louis Chevrolet. After a brilliant stock buy back campaign, he returned to head GM in 1916, with the backing of Pierre S. du Pont. On October 13 of the same year, GM Company became incorporated as General Motors Corporation[4] (reverting to General Motors Company[5] upon emergence from bankruptcy in 2009). Chevrolet entered the General Motors fold in 1917; its first GM car was 1918's Chevrolet 490. Du Pont removed Durant from management in 1920, and various Du Pont interests held large or controlling share holdings until about 1950. In 1918 GM purchased the McLaughlin Motor Car Company...
Words: 1995 - Pages: 8
...9 Problems forecasted for short & long term: 10 Develop a Human Resource Strategy 11 Problems forecasted for short & long term: 12 Conclusion 12 References 14 Introduction Global Mining (GM) is at a crossroads. They are aware that their Australian mine sites are unproductive and holding the company back in terms of profitability. High costs and low output are diluting the company’s overall financial performance and making them a target for takeover. A decision has been made to focus on improving the productivity of these sites rather than sell them off with the directors committing to providing HR strategy linked in with the organisational goals. It is clear from the information provided in the case study that the Australian issues relate to their human resources. The Production Director has identified that the physical resources are not the issue and with improvements, they could be a highly competitive site. The main issues relating to labour include; high labour costs with low flexibility, excessive penalty rates, absenteeism, unmotivated staff with no financial or promotional incentives to work harder, high trade union intervention, a poor safety record and a lack of leadership within internal management. The trade union representing GM is highly involved, if not in total control, of the human resource operations. They have a loyal following from the workforce and are determining recruitment,...
Words: 3764 - Pages: 16
...Networks a. Advantages 4. Three Types of Networks 5. Three Types of Managers 6. Examples of Networks a. Dell b. GM c. BMW 7. The Future of Networks a. Cisco Telepresence 8. John’s Personal Experience 9. Conclusion 2 By Team Four – Informal Definition By Miles, Snow & Coleman, “Managing 21st Century Network Organisations” – Formal Definition 3 “…multilevel hierarchies have given way to clusters of business units coordinated by market mechanisms rather than by layers of middle-management planners and schedulers.” “…linked competitive success to doing fewer things better, with less.” Dynamics, Snow C., Miles R & Coleman H. Managing 21st Century Network Organisations, Organizational Winter 1992, pp. 5-20. “Established firms downsized to their core competence, de-layering management hierarchies and outsourcing a wide range of activities. New firms eschewed growth through vertical integration and instead sought alliances with independent suppliers and/or distributors.” Summer Miles, R. & Snow, C. Causes of Failures in Network Organisations, California Management Review, 1992, pp. 53-72 4 Marketers and Distributers Producers Designers Suppliers 5 Globalisation • Competition has reduced all margins; thus, firms must cut costs and improve efficiencies – economies of scale • Strong new players at every stage of the value chain Technological Change and Technology Transfer • Shorter product life cycles • Lower barriers to entry, firms have become ‘stateless’...
Words: 2820 - Pages: 12
...HRM-587: Managing Organization Change Project Proposal Overview of Organizations Shataun Hailey September 14, 2015 In late 2008, Chrysler and General Motors announced to the world they were in danger of folding. At the time, our president, George W. Bush, agreed to a temporary bailout, but handed the auto companies' long-term future over to his successor, President-Elect Barack Obama. President Obama then lead a comprehensive bailout of the two companies that allowed them to stay in business but imposed numerous conditions that, it was intended, would secure their viability and allow the companies to eventually return to profitability. In an interview in the Detroit News (Shepard 2015), President Obama explained his decision this way: “There was clear-eyed recognition that we couldn't sustain business as usual. That's what made this successful. If it had been just about putting more money in without restructuring these companies, we would have seen perhaps some of the bleeding slowed but we wouldn't have cured the patient. The automobile industry was one of the most effected sectors during that recession. Chrysler and General Motors were pushed into bankruptcy and 276,000 jobs in the automobile and parts industry were destroyed. That equates to a whopping 36 percent of the total employment in the sector (CHU. T.H. & YINGZI, 2010). Not only were the jobs of all of GM and Chrysler's employees, but the jobs of people who worked for hundreds of suppliers, from stereo...
Words: 1016 - Pages: 5
...which discuss the connection between General Motors (GM) as a major car manufacturer, and the environmental issues and policies that concern the company: * Environmental legislation affecting GM is outlined. * The internal and external drivers of GMs policies are analysed. * The policies themselves are discussed. * Recommendations and conclusions relevant to the future of environmental protection from the automobile industry’s point of view are made. Contents 1. Executive Summary 2 2. Introduction 4 3. General Motors 4 4. Main Legislation (International, National and Local) Affecting General Motors 4 5. Analysis of the Main Drivers of GM Environmental Policy 9 5.1. Internal and External Drivers 10 6. General Motors Environmental policies 11 7. Analysis of General Motors Environmental Policies 12 7.1. Specific 13 7.2. Measurable 13 7.3. Achievable 14 7.4. Realistic 14 7.5. Timely 15 8. Recommendations 15 9. Conclusions 16 10. Table of Figures 18 11. List of Tables 18 12. List of References 18 13. Bibliography 20 2. Introduction This report investigates and analyse the impact of General Motors (GM) on the environment, the company’s environmental policies and an outline of the main environmental policies affecting GM. The problem of global warming and the depletion of natural resources is a major concern in the 21st century. GM as a major automobile maker plays an important role...
Words: 5931 - Pages: 24
...Reporting Module. Blake left the engagement prior to the completion of the change and has been called back because the system has been month balled a few weeks after go live. The hotel GM and Blake’s boss are extremely unhappy. The Cast of characters Blake Cantera > An MBA student with two weeks consulting training. The architect of the solution on his first engagement Royal Hotel GM > A no nonsense, old school hotelier, running a boutique business hotel in New York. The GM wants to eliminate situations where guests discover maintenance issues. Director of Housekeeping > Not a champion for the system and does not take ownership for the maintenance issues at the hotel Director of Maintenance > Roll has a natural conflict with housekeeping – did housekeeping report the issues and maintenance lose it, or did housekeeping just not report it? Director IT Espresso Vendor > Potentially oversold the solution as a panacea Jack Scarso > A colleague of Blake’s with similar experience, who is held in low esteem. Jack was assigned to implement the solution when Blake was transferred off. Jack received virtually no handover. Fancy Consultants Boss > The kind of boss who provides little support and mountains of expectation and appears to take little or no responsibility for the issues. Issues with the solution and approach The implementation of the Espresso system would classify as a second order change which impacts Technology, Process and People and requires careful planning...
Words: 693 - Pages: 3
