HRM Strategies for High-Performance Teams at General Motors

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This report provides a comprehensive analysis of Human Resource Management (HRM) strategies within General Motors (GM). It examines strategies for creating high-performance working teams, including the application of the Matching Model and the 5 P's Model of HRM. The report also delves into motivational theories such as Maslow's Hierarchy of Needs and Adam's Equity Theory to provide guidance to HR professionals. It also explores how rewards can be used to create efficacy in the organization. The report includes an introduction to HR and HRM, and a detailed analysis of how HR professionals can use strategies to create high-performing working teams. The report also includes the impact of reward models on employees at Director and Graduate Trainee levels. This report provides insights into the practical application of HRM principles within a major automotive organization.
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HUMAN RESOURCE
MANAGEMENT
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Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Analysis of Strategies to create High Performance Working Teams within General Motors....1
Impact Of Reward Models..........................................................................................................7
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Human Resources refer to those individuals within a company which supports its
operations and helps the firm in succeeding effectively in accomplishing its business objectives.
These are the support systems of an organisation without which, it is highly unlikely for an
organisation to succeed (Al Ariss, Cascio and Paauwe, 2014). On the other hand, Human
Resource Management is one of most important activity undertaken by a company in relation to
managing their employees and overall workforce. It includes several activities such as
workforce planning, recruitment and selection, training, managing as well as appraising
employees to ensure a consistent growth of the organisation. The following report is based on
General Motors, which is one of the best Automotive organisations headquartered in Detroit,
Michigan, US. The firm was founded in 1908 and is a prominent example of human resource
management with more than 170,000 employees (Number of General Motors employees, 2019).
The report covers a detailed analysis of strategies which HR professionals at General Motors
could use to effectively create high performing working teams within the company. Furthermore,
it refers to prominent key models as well as relevant theories to analyse the same. This report
also covers a detailed analysis of impact of Total Reward and Integrated Reward Models on
employees at Director and Graduate Trainee Level. It includes how HR uses rewards to create
efficacy in the organisation.
MAIN BODY
Analysis of Strategies to create High Performance Working Teams within General Motors
Human resources are one of the crucial component in organisation which helps to make
company growing in industry. In context of company, Human resources are employees
performing operations to provide services to consumers. General Motors is the organisation
which designs, manufactures, markets and distributes vehicles parts. General Motors has good
brand value in society because of their good services to consumers. Human resource manager of
General Motors has to motivate workers to provide best services to consumers by analysing
demand (Tyson, 2014).
HR strategies has to framed which boosts performance of employees such as monetary
benefits, etc. There are many employees working in General Motors. There is difference in their
personal objectives such as financial benefits, social gathering, rewards, etc. So it is
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responsibility of HR manager to analyse it and then frame HR strategies. This makes balance
between organisational and personal goals of workforce. In General Motors business goals and
objectives can be achieved with working in team (Storey, 2014) .
Team refers to the collection of two or more people for achieving same aims and
objectives. There is difference in skills, qualities and knowledge, experience of individuals
working, so HR manger of General Motors are responsible for framing teams. It is easy to frame
team but it is important to frame effective team in which there is proper distribution of roles and
responsibilities according to their skills and competence. While framing team, proper
communication among workforce is mandatory, HR manager has to provide information about
synchronisation of commercial activities. In order to implement HR strategies in more effective
and relevant manner, some HR models are evaluated. According to Dr. Mohamed Sabry, 2017
there are different models such as Matching model, Harvard Model, Contextual model, 5-P
model which HR manager has to use to improve performance of overall association. HR models
which helps to create high performance working team are discussed as under-
First model is MATCHING MODEL OF HR which managers of General Motors can
use as strategy in order to get high performance working teams. This model was propounded by
Fombrun Tichy and Devanna in 1984. as per this mode, HR system and organisational structure
are managed in congruent manner with organisational strategy. Hence this model named as
“Matching Model”. This model has main focus on HR policies, organisational structure and
strategies of business because this has main factors which affects economic, political and cultural
forces within an organisation. These factors are external and not in control of managers, so in
this case this affects business operations in negative manner (Riley, 2014).
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(Source: MATCHING MODEL OF HUMAN RESOURCE, 2018)
As per this mode, there are four processes which has to be followed by HR managers of
General Motors. This process become cycle i.e. selection, appraisal, rewards, development, etc.
as per this cycle firstly individual is selected, then they are apprised and rewarded to their good
work. This leads their career to growth aspects (Purce, 2014).
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Illustration 1: MATCHING MODEL OF HUMAN RESOURCE
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(Source: Four Generic Process, 2018)
Managers of General Motors can use this model as HR strategy which helps to create
high performance working teams (Paillé and et. al., 2014). With the help of matching concept,
HR manager frames organisational structure in specified form through which performance of
teams can improve. When regular performance of workers are analysed and they are rewarded,
then workforce of General Motors give their best. Managers can combine performance of whole
team, so team mates prefers to work in synchronise manner. This is the best way for creating
high performance team. This strategy is relevant in case new employees at General Motors
works in group, they are aware about getting positive results with whole team. This helps to
improve efficiency of workers and they are able to work in team effectively and efficiently (Noe
and et. al., 2017).
Second model is 5 P'S MODEL OF HR which HR manager of General Motor can
follow in order to create high performing team. This model is part of strategic Human resource
management in which there is some crucial process to manage performance of workforce. This
model was developed by Mildred Golden, Chris J. White and Leslie A. According to Dr. Mildred
Golden Pryor, 2019 This model can be understood with the help of 5 P's which are discussed as
under-
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Illustration 2: Four Generic Process
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First element is purpose is the element which shows mission, vision, target for which
team is farmed. This purpose has to be clear to workers, so they are aware about the reason for
which they are working (Nankervis and et. al., 2016).
Second is principle, they are some norms, philosophies, assumption which are followed
by General organisation while operating in industry. This is the way which makes working of
organisation ethical and reliable.
Third is Processes. This factor represents the organisational structure, policies, strategies,
etc. of organisation. This includes structure in which organisation is working to provide product
and services to consumers.
Fourth is People. As per this component employees, workers , etc. which are working in
organisation as per culture, values in order to achieve goals and objectives of association. They
are media through which company represents in front of consumers.
Fifth is performance. As per this component, evaluation of performance is done by
managers of association. This assist managers to evaluate working of employees and takes
decisions according.
With implementing this model, team performance of General Motors gets improved
because this is the way through which in which overall working style of employees and
organisation can be evaluated (Kramar, 2014). When workers at General Motors are aware about
their roles and responsibilities then they performance in better and best manner. Values and
cultural which General Motors follow are clear to workers, so group of people in team conduct
operations in ethical manner. This improves working efficiency of overall company.
HR manager of General Motors can use job rotation technique within team. This creates
fear in mind of workers that they can be evaluated at any time, so they give their best. As per this
technique, there is rotation in job roles of workers. This reduces possibilities of misconduct from
the side of employees. This also helps workers to get overall learning about different task
performed in team.
With the help of above discussed Matching Model and 5 P's Model of HRM, strategies
can be framed by managers of General Motors to improve performance of team. With the help of
5 P's Model employees are aware about philosophies under which General Motor is working, so
they perform according to it. Performance of whole team is evaluated, so workers motivates each
other to reduce possibilities of error. HR Manager can make provision of punishment and
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reward, so in case of any error, concern personnel will be asked for justification of error. While
in case of good performance reward has to be provided (Jackson, Schuler and Jiang, 2014).
While individual is admitting at General Motors HR managers has to make them clear to
working style and culture so they keep these actors in mind. This helps to maintain positive
environment at General Motors.
In addition to the strategies for creating high performance working teams within General
Motors, HR professionals could also utilise some prominent theories to further enhance the scope
of these strategies. These theories would act as a guidance as well as provide appropriate
pathways to HR Professionals which would be increasing probabilities of creation of high
performance working teams within the company.
As per Buchanan & McCalman, 2018, there are several techniques which are based on
motivational theories which could ensure companies of high performance working teams. One
such theory is Maslow's Theory of Motivation. This theory was appropriately developed in 1943
by Abraham Maslow and is based on his hierarchical needs theory. As for its application, HR
professionals at General Motors could motivate employees through fulfilling their five basic
needs. The first one is physiological needs which refer to acquisition of basic necessities such as
food, water and shelter. Then, the next type in Maslow's theory is safety needs which ensures
protection of employees from any sort of economic and physical harm. Moreover, social needs
require General Motors to fulfil social needs of their employees by making them an effective part
of their company and making them familiar with the same. Furthermore, the fourth type is
esteem needs which needs the professionals to provide recognition to employees within the
company regarding their performance. Lastly, self-actualisation needs are the ones which are
self-induced related to development of one's full potential (Foster, 2014).
General Motors could apply the same effectively along with their 5p's Model to create
High Performance Working teams within the firm. HR professionals within the company could
simply achieve so by fulfilling needs of the employees. For physiological needs, the firm could
provide these employees with salaries. In addition, they could ensure that their production and
manufacturing department holds top quality products for the firm to work with to ensure
fulfilment of their safety needs. Furthermore, celebrations after accomplishment of milestones
and calling for weekly team meetings could ensure that their social needs are fulfilled. To
address the esteem needs of employees, HR professionals at General Motors could ensure
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recognition given to members for their contribution and providing them with rewards and
appraisals. Lastly, to fulfil their self-actualisation needs, HR professionals could empower their
employees in achieving effective standards.
Adam's Equity Theory could ensure effective creation of high performance working
teams. This theory revolves around effective balance between inputs provided by employees,
such as, skills, competence, acceptance, hard work, etc., and outputs like benefits, salaries and so
forth (DeCenzo, Robbins and Verhulst, 2016).
The core concept of this model is based on equality between these inputs and outputs.
Each employee within General Motors put their extensive efforts on daily basis to keep up with
the consistency of the company. Furthermore, their input in terms of hard work, skills and their
competence are valuable assets to the company. As for outputs, these are the things which are
being provided by the company to employees in exchange of their inputs. Other than salaries,
these could be appraisals, several benefits, security, etc. This theory says that to enhance
motivation of employees and to create effective high performance working teams, it is
imperative that HR professionals ensure a fair balance between the two. The challenge in this
theory is that it would be dynamic in nature and each employee would be required to be
evaluated consistently for the same. Thus, HR professionals could effectively determine several
common aspects which could help in evaluating their performances and restore balance for each
employee. This would appropriately enhance the scope for General Motors to create high
performance work teams. It is because employees would be motivated to work more efficiently
to ensure higher output from General Motors. To further enhance its scope, HR professionals
could ensure that equal standards are set to evaluate each employee and proper training and
development programmes are being set up in relation to effectively enhance the scope for its
employees (Cascio, 2015).
Impact Of Reward Models
For any organisation, it is very crucial for the top management to acknowledge
performances of each employee. It must be an important and consistent practice within an
company to ensure effective and appropriate management of Human Resources. Furthermore, it
is also crucial for the company to ensure proper rewards for their performances. In context of
General Motors, there are two reward models which have prominent and evident impacts on
employees at Director and Graduate Trainee Level.
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According to Manas and Graham, 2003, Total Reward refers to a term which is used by
organisations to describe a specific reward strategy which transforms factors such as training and
development, along with several elements of working environment into an effective benefits
package (Brewster, Chung and Sparrow, 2016). These could appropriately be used to retain
existing employees as well as to attract and motivate new ones. Basically, this model includes all
those factors which an employee perceives in return of its valuable performance in the
organisation.
In this strategy, there are several components like compensation, benefits, work-life
effectiveness, recognition, performance management as well as talent development. All these
elements would have an impact on employees working at distinct levels of General Motors.
Moreover, it has a severe impact the work engagement of these employees as well. There are
several rewards which are covered under total rewards model. Intrinsic Rewards are the one
which are self initiated, whereas extrinsic rewards are external benefits such as monetary and
fringe benefits. Total Rewards Model have certain rewards for employees at graduate trainee
level as well. Application of this model and implementation of total rewards strategies provide
training and development opportunities to these employees.
Its elements hold the impact which the model imposes on the employees at distinct levels
in General Motors. Compensations ahead of basic pay such as incentives, promotions, pay
increases, etc. develops a sense of achievement in these graduate level employees in the
company. Thus, they tend to focus more on achieving better targets and enhancing their capacity
from what is required of them. As for directors, this ensures consistent productivity in the
company and appropriate accomplishment of organisation's goals which are their prime
objective. As for benefits, both graduate level trainee as well as employees at director level
experience several effective benefits. These are related to securities in terms of income and
health. As for director-level employees, this model would also help to assure retirement and
savings to secure themselves and support their families (Brewster and Hegewisch, 2017). In
addition to this, this model provides work-life effectiveness which enables graduate-level
trainees as well as employees at director level to appropriately balance their personal as well as
professional life. Lastly, performance management as well as talent development helps in
enhancing workplace performance of graduate-level trainees which helps them in ensuring
consistent career development. As for employees at director level, total reward model ensures
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appropriate recognition internally as well as externally of an organisation. All these elements of
Total Reward have a constructive as well as positive impact on these employees. This reward
system in General Motors enables them to work harder, smarter and more than their efficiencies
to ensure targets of the company are met appropriately and within due time.
Another model which has an evident impact on the director-level employee as well as
graduate-level trainee is Star Model. According to Galbraith, 2002, Star Model divides the whole
organisation to four dimensions, which are, structure, decision-making and information
processes, reward systems and people. Structure refers to the departments, hierarchy as well as
the overall infrastructure set up for employees of General Motors. Furthermore, the processes are
related to all those procedures which are undertaken by the company in relation to information as
well as decision making process. As far as people are concerned, these are the human resources
and concerning policies which govern their recruitment, rotation, promotion, training and
development and so forth. Lastly, strategy refer to the actions undertaken by General Motors to
ensure that the firm is leading in right direction. All these dimensions must be effectively fused
with strategy to ensure effectiveness within the company. In General Motors, this would be
having an impact on employees at all levels of the firm. This model would be helping the
organisation in creating an environment which could be adapted as per the requirements by
assessing all its necessities of the business. Furthermore, it has apparent impacts on graduate-
level trainees along with employees at director level. Reward systems within General Motors are
based on reaching the goal of customer satisfaction (Employee Bonuses Driven By Customer
Loyalty at General Motors, 2019). All the systems adopted by the company are centralised to
enhance sales of its vehicles and ensure a long term engagement of these customers with the
company. Thus, according to this model, General Motor's structure, people, processes as well as
strategies must be integrated to ensure a proper reward system to motivate existing workforce
and attract new employees.
To ensure proper reward system in the organisation and to have a favourable impact on
both director-level employees and graduate-level trainees, all the factors of Star Model must be
appropriately aligned (Brewster and. et. al., 2016). Rewards in General Motors are very crucial
in the company as well as effective system of providing these rewards to employees within the
company would be resulting in enhancing competence of graduate-level trainees. Star Model
would have a positive impact on directors as well. This is because a congruent system would
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help directors in setting up several procedures ensuring long-term engagement of employees
within General Motors. Moreover, it would effectively help employees at director level to
influence employee behaviour in a positive manner. Thus, systems related to salary policies,
promotions, profit sharing, bonuses, stock options, etc. must be aligned along with the people,
processes, structure as well as strategies.
The reward system of General Motors includes bonuses and incentives to its employees.
They have several policies like GM BuyPower Card. GM Extended Family Card as well as My
GM Rewards, which has a wide scope for a range of its employees (How My GM Rewards
Works, 2018). All these reward systems have a positive impact on employees at different levels.
Furthermore, there are new compensation structures which are being adopted by a company. For
instance, compensation strategies adopted by the company lately are associated with customer
loyalty in sales as well as after sales services. Their strategy is centralised towards how best their
employees are consistent in effectively entertaining customers and engaging them for long term
within the company. Thus, bonuses for salaried employees would be assured only if customer
retention target is attained by General Motors. This strategy has an impact on employees within
the company. Employees at director level are encouraged to draft those policies and procedures
which would ensure engagement of employees and their consistent performance. Furthermore,
this would help them in retaining employees and ensuring better sales as well as after sales
services for them. This reward system adopted by the company has several training and
development opportunities for graduate-level trainees. In addition, they would be developing
their competence and work in processes which would ensure increase in their competence within
the organisation. With reward based on their competence and ability to retain customers, each
employee at graduate-level trainee along with employees at director level would effectively
enhance their performance to engage customers longer with the firm. Another positive impact
which would be showcased by application of star models in case of reward system adopted by
General Motors is that, this would motivate employees in working more effectively and
efficiently towards success of the company (Bratton and Gold, 2017).
There are several advantages if reward systems within the star model are performed
effectively within General Motors. The first advantage is the engagement induced in the
employees towards the organisation. Graduate-level trainees tend to leave organisations in case
they don't find any growth opportunities for them in the future. Adopting effective reward system
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