Organizational Change Management

Running Head: ORGANIZATIONAL CHANGE MANAGEMENT
Organizational Change Management
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1ORGANIZATIONAL CHANGE MANAGEMENT
Today’ business world is becoming highly competitive and the only focus of the
companies is how to increase the productivity by gaining competitive advantage over the market
rivalry. The organizations are focused at applying strategies to heighten the motivation of the
employees because they are the foundation of the organization. According to Ansoff et al (2019),
the only way to achieve loyalty of the potential customers are stay sustainable in the market is by
innovating constantly. The businesses are now deciding about the process of constant innovation
but every innovation requires change in the organization both internally and externally. This is
because the process of innovation either in the products or services requires adoption of new
technologies, methods and activities in the organization. This is the place where the
organizational change happens and the concept of change management occurs from here.
When an organization realizes that the current culture of the organization, the human
resource policies, the structure, the employees are not being suitable to the organization, it
decides on how to change the present scenario along with managing the change incorporated.
Every type of change is resisted by the employees (lower/upper/middle) creating huge problems
because of their own way of perceiving scenarios or sometimes due to the lack of knowledge
regarding a particular situation. Such is the case with General Motors where I worked as an
intern for six months. The company was established in the year 1908as a sole carmaker dealer.
Since its foundation, under the potential leadership of Alfred Salon, the company was emerging
with tremendous success producing new styles of cars every year. A time came when the
Japanese carmaker companies such as Toyota threatened the company by disturbing its
profitability specifically in the North American market.
As Toyota began to capture the market, the sales of Toyota declined. However, after few
years of facing declining sales, the company closed few of its brands and sold to china based

2ORGANIZATIONAL CHANGE MANAGEMENT
company. After several years, the company has gained its position back by restructuring and
making change in some departments of the organization. The company has again started
operating in the core brands like Buick, Chevrolet, GMC and Cardillac. As per my observation
the internal reasons that compelled the company to bring change is that the employees were
being paid high wages ($74 ) each hour where Toyota paid its employees $44 per hour. It played
a huge contribution to the bankruptcy and quick closure of the company (Asee.org , 2019).
Hence, changes were brought about by the company in the structural, cost, process and cultural
aspects. The company cut down the costs in order to maintain the profit level. It also cut down
the wages of employees. As far as cultural change is concerned, it removed the automotive
product board in order to speed up the everyday decision making method and enhancing the
efficiency of the employees.
Notably, the company faced difficulties too while changing. As I have fund, the
autocratic leadership in the organization completely ignored the involvement of the employees as
the participative leadership does. The employees were merely informed about the change and
not about the detailed description regarding what the change is aimed at and how it can improve
the condition of the organization. The next problem was with the cost cutting. The cost cutting
activity was an important part of the organization but suffered huge issue from the trade union
since there was an agreement that the company cannot lower the wages of the organization.
However, while discussing the effectiveness of the strategic changes, I would like to suggest that
the company could have invested a considerable time in managing the change rather than
implementing change. Although, the strategic changes such as cost cutting and cultural change,
the company has regained its previous position along with having cost benefits, the rise of the