SHAHEED ZULFIQAR ALI BHUTTO INSTITUTE OF SCIENCE & TECHNOLOGY

ISLAMABAD CAMPUS

STRATEGIC HUMAN RESOURCE MANAGEMENT

ASSIGNMENT
GENERAL MOTORS CASE ANALYSIS

SUBMITTED BY:
IMRAN GUL MEMON
SUBMITTED TO:
MAM SANA

Dated: April 26th, 2016

CASE ANALYSIS ON
GENERAL MOTORS

STRATEGIC HUMAN RESOURCE MANAGEMENT

CASE ANALYSIS
The main agenda of the case study was to find and bring the concepts of the organization,
change, steps for change, resistance for change, change management approaches. For this
purpose an example related to General Motors was taken in term of their organization
change and different factors that were involved in the change were addressed.
Organizational change simply means to change the activities of the organization concern it
may includes to change the culture of the organization, technology, business process, change
of employees, rules and procedures, recruitment and selection, design of jobs, method of
appraisal, and human resource techniques, physical environment of the organization, methods
of training and development, job skill and knowledge etc
Main forces which bring change in the organization were Change in new government policies
and legislation, Change and development in new materials, Social and culture value change,
Change in national and global economic condition and trade policies and regulation,
Technology development, Change in customer taste and requirements etc.
GENERAL MOTORS
General Motors were established in 1908 at that time the company was the sole car maker
dealer in the region, e.g. Michigan, first it was a holding Buick company, till 1920 it was
becoming the world largest motor manufacturing company, the company got a tremendous
success in time of Alfred Salon, due to his leadership the company were producing new style
and design car every year, and he has given the such concept to the company.
Business world is changing at a very dramatic pace therefore it is important to continuously
change to coupe up with companys internal and external environment to bring change w
have to analyze following factors:
Internal Environment:

CASE ANALYSIS

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This includes customers need, wants and preferences, competitors, employees, Leadership,
Share holders, Stake holders etc.
External Environment:
This includes Political, Environmental, Socio-economic, Technological and Legal changes
affecting the business. When we bring change then we might face resistance from individual
as well as from organization. Individual resistance is when individuals within the
organization fear loss of power due to the expected change they show resistance. This is also
because individuals consider change a threat naturally. Organizational resistance is when a
group of two or more individual aligned with a certain agenda fears loss of authority and
power they show resistance to the change to avoid resistance we have to follow following
steps.

Implement Change Fairly

Selecting people who accept change
Education and communication
Participation
Building support and commitment
Manipulation and cooption
Internal Environment: Higher Labour Cost then competitors and a union deal that

compel the company to use minimum capacity of 80%

External environment: Intense competition from Foreign Companies and Global
Financial Crisis of 2009

General motors face resistance from individual as well as organizational. Individual Sources
include those employees that feared loss of power e.g. top leadership whereas Organizational
Sources include the labour that had to work for a lesser wage and the labour that had to quit.
GM had come up with the changes in the cost cutting, cultural change, structural change and
process change. The general motors have adopted two main strategies for change
management, recently one is cost cutting strategy for change management and other is
cultural change management strategy. by developing such strategies the company have
achieve its market shares in north America again, as the company was threatened by the
emerging of competitors in the automakers industry but the company decide to bring change
and now the company again in better position and again has maintain the brand of core
products, beside of these the company also achieve the cost benefits by implementing these
change strategies in the company.1
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FIVE STEP CHANGE MODEL AT GM

1. Motivate Change: The GM BODs had to motivate its top leadership to bring change and
they had to hire a new transformational leader as a CEO which they did, they hired Meg
Whitman. Who tell their employees that why this change is very important for us and
what are the benefits they get from this change.
2. Create a new Vision: Meg Whitman came up with a new vision for the company. They
changed their Vision and Mission Statement that incorporated their new vision in which
employees see a unique which they have to achieve in a limited time frame.
3. Develop Political support: the Labour, BODs Leadership and the entire stake holders
were taken in confidence and stand at back in every situation with their employees.
4. Managing Transition: when the change was implemented company face many
resistance from employees but due to support of management sooner all the employees
except that change
5. Sustain Momentum: Management made sure that all the right expertise was hired and all
the financial resource was well allocated and information was effectively disseminated.

THANK YOU

CASE ANALYSIS

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