Change Management - General Motors Company - Case Study Example

Change management Name Professor Institution Course Date Change management Change is a very important factor in any organization that aims to achieve great success. This may be viewed as the prospect of making the form, nature, what it contains or even the future desired state of something different from what it actually is or what it can be in that future if left in the state it is at the current period (Banhegyi 2007 pg.259). It may include changing the name of something to fit the market demands, rebranding the product to alter peoples taste and preference and so on. Change management is a form of practice that is engaged to ensure important changes are instigated in an orderly, measured and systematic way to effect the firm’s change. General Motors Company is a worldwide automotive firm dealing with automated vehicles across the globe. Like any other company, GM has not been left out with change as they try to make the most in selling their products. Change management theories can cause success in any organization depending on how implementation is conducted. When properly applied, organizational change becomes successful. Adkar Model is one of the theories in change management that has shown success when properly applied in organizations. It is a goal oriented model which allows the team implementing change to focus on achieving specified results (Marchant et al 2010 pg. 17). It has the ability to demonstrate why changes are not as per the plan, and provides the contingence plan which ensures success. Change is something that can totally affect organization structure in both ways, for example positively and negatively. This purely depends on how change management team carries out their work. For a large company like General Motors, management team understands what is needed to make the company successful. However, how to manage change can be a real challenge for them. It is argued that most change efforts fail, and the reason why most managers lose their jobs is because of failed efforts (Marchant et al 2010 pg.17). Today’s management however believes that change can be managed. In most organizations, General Motors to be specific change and failure at one point became a synonymous thing. Employees do not like changing the way they are used to doing things, and when they hear about possibility of change occurring, they relate it with extra work, pain, uncertainties and even losses (Thomas & Thomas 2002 pg.4). General Motors Company has implemented changes in various fields. Employees has been handed more responsibilities. Each and every one of them is held accountable for the work they do in the company and even the level of performance. A group of workers are assigned working capital, and all of them made accountable for the portion they are given. This is a practice which was not there initially, and it has led to employees feeling part of the firm, working hard to achieve success for the company (Thomas & Thomas 2002 pg7). Finance and budget system has also undergone review (Thomas & Thomas 2002 pg5). It is becoming more ascetic, and the senior administration is becoming more involved with finance control. Meetings to review budgets are now held monthly unlike in the previous time which was done annually. This has help the management team to curb funds disappearing mysteriously as each department is made to account for its expenditure. In marketing their vehicles and other products, the company work as a whole. It is a multinational company, with various braches spreading across many countries in the world, but change in management and the way they do things has made it work as a unit. Labor force was seen as the reason for the way it performs, but now they work as a whole unit (Banhegyi 2007 pg.259). Benchmarking exercise has also started working as they have hired external teams to gather news and how competitors are working, and outside views are taken more seriously. The challenge now lies with managing the changes. It is believed that change may not be that hard to achieve, but the challenge is to manage it (Thomas & Thomas 2002 pg3). Assumptions for managing change is actually what the firm regard as if done appropriately, changes are likely to be felt positively within the organization. Uncertainty is what needs careful management. It is a natural aspect of modern business world. It takes a lot of time to develop, and it is sad to find substantial time still spent in understanding the impacts of change (Sengupta 2006 pg.152). This illustrates that even though change might have occurred, these still remains doubt over its efficiency. Leaders are more interested in forward movements, and will want a change initiative that eliminates any kind of uncertainty and keep the company progressing well. Confidence, humility and sense of humor play a crucial role in change management (Sengupta 2006 pg.152). Mangers should be confident with change strategies they are making and be mindful of other and the likely effect it may have. It should be done in a humble manner in which no single stakeholder of the company is forced to conform to it, but it should be attractive that people find themselves changing towards it. Through this, even if setbacks arise in future, it is not likely to affect the change implemented as people hold back perspective and bounce back from setbacks when they find them if they were not forced into it. Change should consider the feeling of people, and it becomes easy to manage it (Sengupta 2006 pg.152). Understanding context and ambitions of business need to be considered before change implementation. Before enacting any form of change within the organization, it is important to understand the effects it can have within and around the business. It is important to know the impact on reputation of the products of the firm, impacts on the market and even how workers will feel about it. The change must create a positive impact among the stakeholders of the firm for it to have any meaning of implementing (Sengupta 2006 pg.152). Building trust from concerned parties is essential in change management. Trust changes almost everything since when people believe in what they are doing, they are more likely to work for the betterment of the company and always feel comfortable with the changes made. The promises made must be delivered to create a lasting confidence (Singh 2010 pg.465). People need meaningful commitment in the matters and challenges affecting them, and the change effected must comply with their desires for the not to object. The process with which change brings out the desired goals is alignment. The goal of any change within this firm is to increase its productivity by sway of increasing sales to maximize profits. The change itself must clearly show the desired goals if change is to be managed. This make all the workers strive to achieve the stipulated goals, in the process making management much easier. When the leaders in the organization are in alignment, employees tend to develop the feeling that goals set are achievable (Singh 2010 pg.465). These assumptions of managing change have impacted the process of change with varied success depending on how it was done, and the entire performance of the organization as a whole. Change is inevitable and when certain traits are not performing as expected, change is a must. Organizations changes for the betterment of their services, and when they refuse to change, prevailing conditions forces them to change (Singh 2010 pg.465). As illustrated above, General motors company has changed significantly over the past years as compared to how they used to operate in the past. After it was declared bankrupt in 2009, the company had to review their operational strategy to get out of the mess it had gotten into. A change process that is well documented, which illustrates clearly the role of each employee means uncertainties do not arise (Singh 2010 pg.465). The current leaders are interested with more focused change which keeps improving the status of the organization. Upon realization of uncertainties in the way the company were operated, for example the risk or running at loss, making minimal or no sale and possibility of having non-qualified employee’s, means there were need to come up with strategies to minimize these changes. This is where change becomes important and they had to comply with it. After implementing change, management team realized there was improvement in all departments of organization. The recruiting team hired more competent staff, leakages was minimized, and the company starts expanding globally, realizing more sales gaining more returns in form of profits from this. Managers created change strategies which people easily accepted. These changes had great sense of humor, and people as their center of attention (Parker & Craig 2008 pg.247). Employees realized that not only these change strategies had organization interest in them, but also it gathered for them. Their welfare was more taken care of, giving them the confidence to strive to excel. They became more confident in their job making them give their best. This change initiative created a positive change in the company and it is evident with the current state of the industry. With its products sold in almost all parts of the world, the changes made must have improved its status making it a force in the world market to compete with others like Toyota, Subaru among others. More emphasis is place on understanding the context of change. Before change is made, a research is conducted to show how the supposed change about to be taken may affect the company. This makes the company understand the nature and what is expected, and necessary remedies immediately taken before launching the initiative. Transition of change became a smooth process since the possible loopholes are taken care of initially. The company then saves money that could have lost in implementing the changes that may be able to fail if not scrutinized and analyzed before making. Members of staff enjoyed their roles in the firm as their work was clearly stipulated, and no collisions were observed thereafter (Parker & Craig 2008 pg.247). Trust became important thing in change implementation. For any event done to be successful, people need to have confidence and trust in the process, leadership and any other related part. In change implementation of this company, people were made to believe in what was coming up as the stipulated policies in promises made were fund to be implemented. People realized the importance of change to avoid taking the company back to crisis it had in 2009 when it were declared insolvent and all worked as per the changes made. People who purchased their products trusted them that they were producing items of superior quality, making them to buy more of their vehicles, increasing sale output (Parker & Craig 2008 pg.247). The firm was also able to meet the set targets after reviewing their policies. After the 2009 tragedy that threatened the closure of the firm, changes were made that made them meet their goals. From this point, the company has move from strength to strength and establishing itself as one of the best producer and seller of motor vehicles (Parker & Craig 2008 pg.247). It has become more diversified and relationship between workers and management has significantly improved. It is possible to suggest that without taking the necessary remedies after 2009, performance of General Motors Company may have gone from worse to worst. With the financial crisis it were going through, the firm could not attract any more investors, and even the existing were already planning to run away from them. Their products were suffering in the market as people begun shifting to buy from other companies. Change saved the company from the jaws of it being closed down (Thomas 2001 pg.21). Assumptions of change management have significantly change overtime. With revolution occurring in most spheres of life, how to manage has moved with it in order to make it simple for any adjustment if and when it is required. Organizations have created research team which collects data and taste theoretically, minimizing uncertainties that may have occurred in the future. Records of past experiences are kept safely, making it easy to access and when any changes is to be made, it can be tracked back to see how it had impacted the organization in the past (Thomas 2001 pg.21). Managers are becoming more aware of the need for change, more aggressive and in the end; change has become important thing for any firm since you cannot keep doing the same thing time and again. Employees have undergone intensive training at present unlike in the past. Training systems have changed, and even the companies have created an integration system which a new staff is made to go through to familiarize with structure and how the firm operates. While under training, workers are informed rules applying at the moment are subject to revision when need arise, so they should be ready to adjust. This has made transition smooth and easily acceptable (Thomas 2001 pg.21). Mutual confidence and trust has developed overtime among the stakeholders in any organization. With improvements made in all spheres of business, consumers that is the buyers are protected by legislations, meaning there is more believe in the goods made (Thomas 2001 pg.21). As changed is dependent on trust to which the people implementing and the ones feeling, trust which has develop over time has help in making the change process not as hard as it was initially. With firms reaching greater heights in success of the work they are doing, people have accepted changes they are making. When trust, confidence and full information of need to do something is there, it becomes easy task to execute (Thomas 2001 pg.60). Customers can witness what firms companies are doing, and since most of them for example GM is excelling, people do not object company’s desire for change since they believe it is for improvements of goods and services they are offering. It is clear that the quickness, magnitude and unpredictability of revolution are bigger than before at present. This is an experience which is going to increase even more, making the need for organization to move with change before change changes them (Thomas 2001 pg.60). It is a challenge that is not moving away from world and is going to get scary the way it is happening. It may even prove to be costly if organizations do not move with change. It is important to create favorable conditions required to get people ready for change unlike believe that people were always resistant to change. The culture of the firm is also essential in ensuring change is taken in accordance. Literature review regarding change approach and learning principles show that people are more willing to change when they experience normative retrained strategies and when they feel their working environment have the faces related with learning philosophy. In conclusion, change is something that has existed since. It is going nowhere and it is only for us to accept and change with it for better performance of our business. Technology is advancing, and new implementations are discovered daily. This shows the need why each firm aspiring to maintain itself and compete with others in the market, there is need for it to always be at fore front in implementing positive changes that will strengthen their performance (Parker & Craig 2008 pg.247). As witnessed in the case of General Motors, after the depression it went through, changes adopted brought it success they have at present. Organizations must change for better performance. References Marchant, G. E., Cardineau, G. A., & Redick, T. P. (2010). Thwarting Consumer Choice The Case Against Mandatory Labeling For Genetically Modified Foods. Washington, D.C. Thomas, S. J., & Thomas, S. J. (2002). The Workbook For Successfully Managing Change In Organizations: A Users Guide. New York, Industrial Press. Sengupta, N. (2006). Managing Change In Organizations. [S.L.], Prentice-Hall Of India. Singh, K. (2010). Organizational Behaviour: Text And Cases. Chandigarh, Pearson. Parker, D. W., & Craig, M. A. (2008). Managing Projects, Managing People. South Yarra, Vic, Macmillan Education. Thomas, S. J. (2001). Successfully Managing Change In Organizations: A Users Guide. New York, Industrial Press. Blokdijk, G. (2008). Change Management 100 Success Secrets: The Complete Guide To Process, Tools, Software And Training In Organizational Change Management. S.L, S.N.]. Banhegyi, S. (2007). Management: Fresh Perspectives. Cape Town, Pearson/Prentice Hall South Africa. Read More