Change Impact on Culture
The executives and owners of GM are facing great challenge due to the protracted recalls crisis. To resolve the problem, the company is investing millions of dollars, which has called for organizational change. The culture change will have a significant impact on the current and the future owners of the GM. This is so because the process of changing organizational cultures is a long-term and difficult one. The company will have inevitable resistance to alterations of fundamental ways of doing business. This is so because to get out of the recalls mess, GM will be required to change in culture in order to manage diverse workgroups in the future.
The culture change of GM has a significant impact on the current and the future owners because it has to change the vision of what the goals of change are, which is based on leadership commitment. In order to change organizational culture, GM is required to undertake the selection process, especially of managerial personnel, which means the current owner, will lose their jobs (Stock, 2014). Similarly, the company is expected to change in management systems, especially of evaluation and reward systems, which mean the company, will require a new executive to run these systems (Jennings, 2014). To resolve the recall event, the company is expected to carry out training and communication activities, which fit the new culture.
Change Impact of Human Resource
In response to the recall issue, GM had to make radical changes in its human resources, which has a significant impact on the human resource within the organization. GM managed to change its human resource in order to resolve the recall issue effectively. This is so because managing human resource effectively is the key to success in any organization. This management is critical in a fast changing business environment just like GM. The change of the human resource was meant to empower men to build up competencies and skills to meet the changing demand in the market. However, the new change may provoke stress and insecurity in the organization because of the constant pressure on the human resource (Lienert, 2014).
This change has necessitated serious HR initiatives to deal with resistance to change and generate sufficient security and motivation to employees. The organizational change of the GM has affected the role of the human resources. This is so because HR units act as a connection between company management and employees, which facilitate the process of HR, change. Therefore, GM change has affected the HR department to resolve the staffing issues. Since the GM is expected to change its employees, this affects the HR, which has to focus on expanding its recruiting and enhance compensation programs to attract skilled employees.
Since GM is experiencing failure in market focus because of the recall issue, HR is expected to develop severance packages and terminate some employees especially those involved. HR is expected to alter job descriptions for the current workers in case the termination result in a change in job functions. The GM organizational change has led to fears and uncertainty for employees, which requires HR to take action to ease these fears. The HR is required to open the new channels of communication with employees, which promote input and feedback.
Change Impact on Organizational Behaviors
The organizational change affects everyone differently. For instance, GM employees will be willing to engage in the change process even when the change is perceived to positive or nonthreatening. The new change in the GM is motivating employees to embrace the issue and work on a common goal (Lienert, 2014). The company has increased the salary of employees to motivate them to work effectively. These have helped the employees cope despite the challenge because they see a vivid association between their effort and the reward they are given.
The failure of market focus due to the current recall issue has made GM change its management. This has made it difficult for employees who prefer the familiar ways of doing work after the change (GM, 2014). The Company has opted to compensate employees who may be resistant to change by persuading them of the benefits of change. This has created fear among employees because they fear how the change will affect them at a personal level. This has affected their job satisfaction, productivity and performance due to lack of confidence and fear of job instability.
The organizational change on employees is based on the culture of the organization. The GM is working very hard to create a positive organizational culture with open communication and trust of leadership. This is so because negative organizational culture affects the confidence of employees because they tend to lack trust with leaders. For instance, the current recall issue of the GM has affected the working morale of the employees because they lack confidence of the new change. Similarly, the transition of change is becoming challenging for employees who think it hard for the company to recover after reflecting a negative organizational culture (Lienert and Cowan, 2014). Therefore, effective management is significant to promote the change process and alleviating the negative impacts on employees.
References
GM (2014, March 31). GM Recalls Older Model Vehicles to Fix Power Steering. Retrieved from http://media.gm.com/media/us/en/gm/news.detail.html/content/Pages/news/us/en/2014/m ar/0331-power-steering.html
Jennings, R. (2014, March 31). GM recall misery grows: Now 2.5 MILLION cars need work | Computerworld Blogs. Retrieved from http://blogs.computerworld.com/itbwcw/20140331/gm-recall-misery-car
Lienert , P., & Cowan, R. (2014, March 31). U.S. congressional probe heats up as GM expands recalls| Reuters. Retrieved from http://www.reuters.com/article/2014/03/31/us-gm-recall- congress-idUSBREA2T0HO20140331
Lienert, P. (2014, March 28). GM expands ignition switch recall to 2.6 million cars| Reuters. Retrieved from http://www.reuters.com/article/2014/03/28/us-gm-recall-expanded- idUSBREA2R1Y920140328
Stock, K. (2014). Why GM's Recall Mess Might Not Scare Away New Customers - Businessweek. Retrieved April 3, 2014, from http://www.businessweek.com/articles/2014-04-02/why- gms-recall-mess-might-not-scare-away-new-customers
