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General Motors Corporation Change Management Business Essay

Background of change

The ever sustained fact of the world is change. People, organizations, markets change every second. This change is activated by the environment. On specific level people manage change by changing there routines and behaviors, which is not at all hard. Change within an organization is intricate but comes after the same guidelines, organizations as an individual have to improve there behaviors and routines.

The organizations who have failed to manage the change have crumbled under your toes of your time either disappearing or being purchased by others. For example skybird, tucker company, wirgin, tohatsu, clover, English satellite broadcasting, world champion wrestling, archandor, & most recently basic which filled chapter 11 personal bankruptcy. These organizations were not able to identify the change in the environment and were rejected by the environment.

The organizations that contain been proactive and managed change have been success reports. i. e. Microsoft, 3com and us robotics, Cadbury and Kraft etc. these organizations have evolved there strategies at the right time, they were the market leaders of market change.

Introduction to General Motors

General Motors Organization (GM) is the world's greatest full-line vehicle supplier and professional. Its arsenal of brands includes Chevrolet, Pontiac, GMC, Buick, Cadillac, Saturn, Hummer, and Saab. Opel, Vauxhall, and Holden include GM's international nameplates. Through its system of global alliances, GM holds stakes in Isuzu Motors Ltd. , Fuji Heavy Market sectors Ltd. , Suzuki Electric motor Corporation, Fiat Car, and GM Daewoo Automobile & Technology. Other principal businesses include Standard Motors Acceptance Organization and its own subsidiaries, providers of financing and insurance to GM customers and retailers. In the first 2000s, battling under the weight of escalating healthcare and pension costs, GM wanted to shed a few of its less profitable activities. Toward that end, among other techniques, the business sold its stake in Hughes Consumer electronics, phased out development of the Oldsmobile, and discontinued the Chevrolet Camero and Pontiac Firebird. Facing a tough economic weather, GM has nevertheless retained its position as the world's leading automaker.

Models of change management

Now companies have understood the necessity for change and change management. That's the reason many scholars developed the latest models of of change management.

There are some simple models of change and then there are some complicated models. simple models are helpful but do not identify the needs of "current economy"

Simple models which follow the procedure that "one size works with all"

Lewins model

Unfreeze the existing paradigm of the organization. This involves understanding the necessity for change. Then conversing that need to the people. People should be open to change in structure, action and thinking.

Change the business paradigm by producing new theories in the organization. This is a lengthy process as the new method will take a chance to sink in. people will question the new method thus it's important that there is a strong channel for feedback.

Refreeze the changed paradigm. This is the stage where the change is inculcated into the organization and folks followed the transformed methods as a component and parcel of the business.

Kotters 8 steps

creating a vibe of become the members

gather supporters to steer change

create a vision

explain the eyesight to the supporters

empower visitors to follow and pass on the vision

create shot aim or milestones

improvements and feedback

Inculcation of change by rendering it a part of framework and system.

Complex model which acknowledge the need of individual organizations.

Johnson Scholes and Whittington's model recognizes the parameters that the business faces.

Time is how quickly change is needed. This is identified by the Balogun and Haily's model.

Scope is the degree of change that is essential.

Continuity what is the incremental factor

History is days gone by connection with change

Skills what functions are required and what do we have.

Resources which are available for change management.

Readiness is the determination of people to simply accept change.

Power is where the of the business lays i. e. with management employees, stakeholders etc.

McKinsey 7S construction identifies the areas that management need to focus on in order to manage change effectively

Structure is the hierarchy and the departmentalization of the business before and after the change.

Strategy is the programs that firm makes i. e. when to contend? Where to contend? So when to contend?

System is the position of the strategy with the business enterprise objective and at what level evolutionary stage the organization stands.

Shared principles is which kind of culture prevails in the organization

Style is the command design of the management. How are decisions made?

Staff is the individual resource of the organization. How trained these are and what staff is necessary?

Skill is the organizations capacity to use its resources. Thus way of measuring the efficiency of the organization.

Need for proper change generally motors

General motor is a fallen big. Glory of the past from being a great market leader to bankrupt company General motors has come quite a distance. In 1980s GM was the top car manufacturer in the USA until the entrance of the Japanese cars. The Japanese sold cheap and better automobiles. GM didn't realize the change on the market and technology and constantly lost market show to japan companies. Even with government support the business filled chapter 11 bankruptcy in 2009 2009.

The strategies of japan and GM can be compared with each other and move on to what GM must do to be able to get its ex - glory.

The strategies that have been employed by GM are heavy discounting to fully capture or retain market share.

Strategic intervention techniques

The purpose of involvement techniques is to increase the efficiency and the effectiveness of the organization. Strategic intervention techniques give attention to improving the procedures by which ideas are produced and then gain responses on the ideas. These techniques "make one thing happen" and also focus on "what's happening" French & Bell Jr (1994). The reasons for interventions can be

To gain feedback

To educate people

To invoke immediate change in the organization.

Rapid and unexpected change in the exterior environment

Intense competition

Driving causes for change in GM

Driving forces are the reason that GM requires to change its strategy and align itself with the environment. Few of the forces that pressure Gm to change are as follows

Low economic progress in the car creation business has stumped the majority of the manufacturers.

Car manufacturers on federal support are making vehicles baffled yet somehow there automobiles are on the market and cutting the marketplace share of others.

Japanese car manufacturers are making better automobiles at low price which is the main competition for GM.

Change in technology on the market has been a concern. Honda and Toyota have advanced in technology at an increased rate than GM.

Rising olive oil prices also have brought on the industry to rethink there strategy.

Resource implications for GM

GM CEO Rick Wagoner has devote a whole lot of effort to carefully turn around GM since 1992. but his response to change in the surroundings was too slow. The sources of GM can be assessed using 5 M's model

Money has been the situation for GM for sometime now but federal government is preparing to help them however they don't have a change strategy.

Manpower of GM has not been able to generate new ideas which show dulled determination, and poor creative imagination skills by the management and other employees. Also GM is trapped in associates with employees with huge pensions.

Minutes\ time frame for adaptation has always been short for GM and it has always lagged behind the necessity of time.

Material has very special item olive oil which includes sky rocketed. So the price of car creation is rising as well as the price tag on maintaining an automobile.

Machinery has been the major concern for GM as its competition have received new machinery and processes which can be better than that of GM.

Due to these factors GM has not been able to change. They are the forces that induce level of resistance for change.

Change and stakeholders

Stakeholders are a fundamental element of the organizational paradigm. To bring change in the business, stakeholders should own the change. The process of change should begin from within the stakeholders.

To change the culture stakeholders should realize that there's a need for change. They should be aimed into the right direction. In Kotter's 8 steps model for change the role of stakeholders can be integrated. The model pushes the business to make its decision and establish its process of change.

Kotter's model for change for GM

Kotter gives a style of change in the organization in which the stakeholders are empowered to make change for themselves. I will utilize this model to describe how GM can result in change in the business with the aid of its stakeholders.

Step 1: Create urgency

For change that occurs it is necessary the whole corporation realizes the necessity for change and sets its effort to make the change. For this function managers can color a grim picture of the future if continued on the same path. Explain to the shareholders the upsurge in ability of the organization to exploit its resources. There should be feed back from the stakeholders and there ideas should be incorporated in the change process.

In circumstance of GM it is not very hard to paint a grim picture because the next step to bankruptcy is liquidation. The decrease in the performance of the company is a question mark for years now. So in GM people are ready for change and stakeholders support the management. Now there is need for discussions so the ideas and the wills of the stakeholders can be included in the change process.

Step 2: Coalitions

This is the stage where the command emerges; people among the list of stakeholder should take demand of the categories. It is necessary that to recognize the key control and make them commit to the change in the business. That is necessary that individuals who are selected for the control have confidence in the change.

In circumstance of Basic Motors they have to find leaders to be able to bring change. Popularity of folks who will help GM to develop and to admit the changed techniques is essential, if it wants to make any type of change in its strategy.

Step 3: Vision for change

When the procedure of change starts there are numerous notion of floating. Each one of these ideals need to be linked along if in order to create a eyesight. This vision needs to be simple and understandable. The eyesight gives people a sense of course; they understand the purpose of the change. For change to be successful you should know the key idea behind the change. For this function prepare a synopsis into the future endeavors of the company. Knowing about the near future helps visitors to support the business.

In case of Standard Motors the objective statement is quite clear "G. M. is a multinational organization employed in socially sensible operations, worldwide. It really is focused on provide products and services of such quality our customers will acquire superior value while our employees and business partners will share in our success and our stock-holders will receive a sustained superior come back on their investment. "

But unfortunately Standard Motors has not been able to deliver. The vision of the General Motors must be communicated effectively through the organization. Every stakeholder must have confidence in the mission declaration of Basic Motors.

Step 4: Communication of vision

Every person in the organization must know the objective of the change. The previous paradigm of the company will produce resistance against the new method. THE BRAND NEW Mission statement must overcome the level of resistance and unite the business about the same path to success. Because of this the management must treat all the questions and problems of folks. Divide the eyesight into smaller aims and connect the performance of specific with the achievement of these targets.

In Standard Motors the management should take responsibility of communicating procedure for change through the organization. An activity of change developed from the insight of stakeholders is easier to communicate back.

Step 5: Remove obstacles

In the process of change, there will be resistance. The objective of the management is to reduce this level of resistance and bring the stakeholders to one common platform on which everybody can share their opinion. As the procedure of change steps forward, there should be constant checks for any barriers to improve.

In Basic Motors the interior management has didn't provide change in the business. The change in GM can be induced from the exterior; perhaps a big change agent can help GM over come change barriers. Another good way to bring about change is to honor the individuals who embrace the change.

Step 6: Create short term objectives

For the procedure of change to work people need to find out that it is working. For this management can split the main goal directly into simpler targets. The management should completely analyze the short-term objectives such that they are possible and drive. For the achievement of every goal the employees should be compensated.

In General Motors that management need to step up and separate their long-term goals into the short-term goals. The management should make the stakeholders think that they are capable of changing the business enterprise for the better. The main stakeholder of GM is the government. The government needs to know that that GM can stand on its ft, for it to bail out the business.

Step 7: Build on the change

The process of change is not complete he unless and before change culture has inculcated in to the company. Changes in many organizations fail because they don't fully implement the changed processes. The changed operations should become part and parcel of life in the organization. The folks of the organization need to make on the changed processes and achieve even more success.

The management of Basic Motors shouldn't stop at making the government thought that they have earned a bailout, but should make work to build on the altered processes.

Step 8: Change in corporate and business culture

The most challenging thing to do in bringing about change into the organization is to improve the culture of the organization. In history many of the mergers in companies have failed because they struggling to combine the culture of the firms. Changing the culture of the company is a very long and hard process.

General motors should change the culture and create a fresh strategy to succeed in an unattractive industry. At this time the employees of General Motor will never be motivated; the management needs to bring faith back into the employees.

Monitoring progress and conclusion

The final step in the management of change would be to monitor the performance of the company. For this purpose appraisal of each of the actions of the company will be performed. The justification of activity will provide grounds by which the production of the experience will be measured. The thought of kaizen should be a part of the actions of the business enterprise.

The process of change is very long; it takes years for change process to be part of the culture. The management of the business needs to be very patient and need to prioritize their aims.

In Basic Motors it is necessary that people accept the change and once the changed functions have settled within should be constant analysis and revaluation. The U. S market has become very saturated thus not allowing the companies to develop as fast as they might like. For the firms to survive they have to use there resources with utmost efficiency.

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