Organizational Change and Development: A Case Study of General Motors

This report presents a comprehensive analysis of the organizational changes and development undertaken by General Motors (GM). It begins with an introduction to organizational development (OD) and its significance, followed by an in-depth case study of GM's restructuring efforts. The report explores the company's structural changes, including cost-cutting measures and cultural shifts implemented in response to competitive pressures from Japanese automakers. It examines the impact of these changes on GM's internal functioning, employee dynamics, and overall performance. Furthermore, the report provides a detailed overview of GM's regional divisional organizational structure, discussing its advantages and drawbacks. It also identifies the problem statement, highlighting the challenges posed by increasing competition and the reasons behind GM's restructuring initiatives. The report delves into the change management process employed by GM, including the steps taken to implement cost-cutting and cultural changes. Finally, it concludes with a description of a specific department within GM suitable for simulation, offering insights into potential areas for further analysis and development. This report provides valuable insights into the complexities of organizational change and its impact on a major player in the automotive industry.

Organization change
and development

Table of Contents
INTRODUCTION...........................................................................................................................3
OD Topic................................................................................................................................3
In depth case study analysis...................................................................................................3
Organizational structure of General Motors...........................................................................5
REFERENCES..............................................................................................................................27

INTRODUCTION
Incorporation of changes in Organizational processes also helps Company in developing
efficiency of their working practices as they are working in the better manner (Cerqueira and
Lemos, 2019). In today’s business world enterprises focuses on bringing change within their
processes in order to improve their performance at marketplace. The present report is based on
General Motors, a well known company belonging to car manufacturing industry. The respective
company is providing its products and services across the world including UAE. This report will
include discussion on Case Study associated with this company when brought change and its
influence over organizational processes. Later on, it will describe that how organizational
development has supported the respective company in gaining competitive edge. At last, it will
provide description on the selection of one specific department on which simulation is going be
to done.
OD Topic
Organizational development plays an essential role in the growth and success of every
company. This can be effective done by bringing desired change within the company according
to the requirement of situation and marketplace. The topic associated with current report, it
restructuring of General Motors for improvising its performance and enhancing its profitability
effectively at marketplace.
In depth case study analysis
General Motors was incorporated in the year 1908 and headquartered in Detroit,
Michigan, US. The company comes under top most car manufacturing company worldwide
which offers its products and services to its customers worldwide. The overall activities of this
company include designing, marketing, manufacturing and distribution of complete vehicles as
well as its some parts. Along with this, it also sells financial services. Some of its popular brands
are Chevrolet, GMC, Cadillac, Buick etc. In order to execute all of its operational activities
worldwide the company executes numerous of activities in rightful manner.
With the changing time the respective company has brought numerous of changes in their
working pattern in order to maintain its position at marketplace and remain competitive within
the industry as well. The main changes emerged in this company because of Japan automakers
whose constantly increasing growth and popularity has placed negative impact over the

profitability of General Motors in all of its operating countries. In order to deal with this, the
respective company has incorporated with numerous of changes within the company so that they
can remain competitive and maintain its positioning within the industry. These changes include
cost change, structural change, process change and cultural change (Coghlan, 2019).
This is effectively done with effective planning towards the change, involvement of
manpower in the change so that they can put their maximum efforts in the work that could
support them in attaining higher organizational success as well. With reference to General
Motors, the company has mainly indulged into structural change in order to improve their
internal functioning in an effective manner (Cummings and Cummings, 2014). Structural change
here means the change in its currently working areas in that are completely different from the
existing one but instantly brings major change in the company. In the case of General Motors,
the company has brought change in terms of cost cutting and cultural change. The main reason
behind bringing changes in its structure is to save money of the company and attain attention of
its customers with high quality automobile products that will enhance their quality of experience.
These changes will also ultimately result in the profitability of the company in effective manner.
Change in the structuring of company has affected basic functioning of organizational work as
well because all of them have to modify their work accordingly which will ultimately lead to
attainment of business objectives of their respective departments. For implementing restructuring
and cultural change management of General Motors has incorporated few steps in its change
management process so that execution of change can be done effectively and does not affect the
company in negative manner. Its core steps include cost cutting and cultural change. In cost
cutting, this company has reduced its cost from some of its core brand in order to maintain their
profitability (Lager, 2019). Along with this, the respective company has also taken initiative
cutting cost from employees in order to achieve its pre planned targets. The records of have
revealed that this step of cost cutting has saved around 25 billion in the respective year. With
reference to step of change process related to cultural change, it can be said that its management
team have removed automotive product board. This is because, the company wanted to improve
culture of company by making employees more accountable towards their work.
The overall implementation of restructuring change has revealed that the steps chosen for
its implication also has some barriers which have also affected its overall results. The main
problem associated with cultural change adoption of top down approach. This simply means that

the company usage of this approach does not empowers employees or provides them right to
take effective initiative towards organization (Cummings and Worley, 2019). This has also
limited organizational work. On the other hand, it can be said that if company has adopted down
top approach for changing culture and restructuring company in more effective manner. Then it
would definitely help them out in improving employees’ satisfaction level. This would have also
resulted in the higher involvement of employees in organizational work. On the contrary,
problems associated with cost cutting were their existing agreement with the trade union related
to employees’ salary or wages. This agreement became barrier for them in cost cutting of
employees’ salary. The overall results of this change within the company state that the respective
company has reduced its workforce from around 280000 to 90000 between the years 1998-2009.
The company further focuses on reducing its current workforce at factory from 60000 to 40000
in order to increase its cost cutting. On the other hand, cultural change have improved
productivity of the respective company as its workforce is now aware about its responsibility and
accountability towards organizational work (Li and et. al., 2019).
Organizational structure of General Motors
The respective company makes use of regional divisional organizational structure. This
specific structure includes various business activities that are managed by the business manager
of this company effective on the basis of their different geographical areas. For instance: If the
company operates its business in UAE then in that particular zone they will operate their
business operational activities as per that particular area of zone. The main advantage of making
use of this organizational structure is higher level of flexibility which is being provided to every
regional head that also allows them in taking rightful decisions for the same. This allows them in
making rightful financial decisions at workplace as they are aware about each and every
organizational situation in effective manner (Dawson, 2019). The respective organizational
structure is also helpful for the company in dealing with the business activities executing at
international marketplace. Effectiveness and efficiency of this organizational structure requires
lot of coordination and communication among all department so that they can collaboratively
make decision towards organizational work in rightful manner. Apart from this, the main
drawback associated with the same organizational structure constant based reduction in
consistency of branding and marketing activities. This is because; the respective company was
not able to develop branding activities that are feasible for all areas. This have directly placed

negative impact over customers base as the company is not able to aware customers about the
organizational new automobile products as well as services. This ultimately places impact over
the sales performance of the General Motors which reduces their profitability with the changing
time
(Source: Divisional organizational structure, 2019)
Problem statement and reasons
The constantly increasing competition within whole automotive industry has developed
the need of restructuring within General Motors. This is because, industry rival are taking many
initiatives and introducing many new vehicles with additional features in order to influence
interest of customers towards them in effective manner. This increasing number of vehicles in
the industry has attracted maximum number of customers towards them and resulted in the rapid
decline in sales performance of General Motors. In the maximum manner Toyota, Japan has
affected growth of the respective company a lot because it is offering almost similar kind of
automotive products with advanced features that attracts customers a lot. Toyota is mainly
Illustration 1: Divisional organisational structure, 2019.

offering products to customers at low prices that influences interest of maximum number of
customers.
The company has taken step of restructuring within the company so that they can sustain
longer within the industry for longer period of time. Implementing restructuring within the
company was not at all easy activity for the respective company as they are taking numerous of
measures for managing all things done in effective manner (Gill, 2019). In order to execute
change effectively the company has taken initiative with the help of the change management
process that includes various steps. The main step among all of them is cost cutting. This step
has its own problem as well as issues that have placed higher influence on overall result. In order
to maintain its position within the industry along with the profitability the company has taken
several attempted to reduce cost that is being spend on the existing workforce. The main reason
associated with the restructuring was the initiative of company towards cost cutting activities. In
this, the company has mainly cut the pay of employees so that expenses of company can be
managed and monitored in effective manner and could save some amount of money for the
company (Huber and Bartunek, 2019). This money could be used in some other areas of
respective company in effective manner.
For cutting the cost, the company has also dissolved many departments as well in order to
reduce workforce. Apart from this, the company have also conducted some recruitment as well
for bring talented workforce in the company so that they can effectively take rightful measures
towards the same. These employees are hired according to their skills and qualification
according to the desired job role. At the time of restructuring the respective company have to
remove its automotive product board. This board was consisting numerous of employees who are
not having effective skills and knowledge about their respective department (Hastings and
Schwarz, 2019). Thus, the top most authority of company has taken initiative to resolve this
team. The main reason behind resolving this existing department is its non effective contribution
in the growth of the company. It can be said that by resolving this team the respective managers
of this company could easily save higher level of cost and could ultimately use this saved
amount in another required area which could provide value to the organization. Besides, the
company have taken respective initiative for developing new automotive strategy team, in which
8 board members were chosen who will responsible for taking decisions within the company in
effective manner. In order to hire effective employees with adequate range of skills and

knowledge so that main objective of creating new department or team can be developed in
effective manner (Klochkov, Gazizulina and Golovin, 2016). This recruitment will do for the
vacant for employees in new automotive strategy team. Job descriptions associated with the 10
positions of this new team are described as below:-
JOB DESCRIPTION FOR Chief Administrative Officer
Organisation: General Motors
Department: Automotive strategy team
Job Title: Chief Administrative Officer
Job location:
Job summary
The organisation is looking forward for hiring highly skilled candidates who must possess
mandatory skills, knowledge and expertise in the field of Automotive industry especially
decision making for ensuring development of effective decisions at workplace for saving cost of
company.
Role:
 Planning and organizing all team related activity that could be managed in rightful
manner.
 Monitoring and reporting to top management team towards the strategies developed by
their team in effective manner.
 Quality control of manufacturing vehicles
 Adherence to legislations associated with routine business operations
 Financial budgeting and control
 Making rightful decision associated with the work so that actual spending cost of
vehicles can be managed in effective manner.
 Ensuring ethical conduct at work premises
JOB DESCRIPTION FOR Chief Financial Officer
Organisation: General Motors

Department: Automotive strategy team
Job Title: Chief Financial Officer
Job location: UAE
Job summary
The business entity is recruiting well experienced candidate who is capable of using skills in
order to make strong and healthy financial decisions that will enhance profitability of the
company in effective way.
Role:
 Providing strategic recommendations or advices to CEO as well as other executive
members of the respective team
 Responsible for developing and managing financial budgets and decisions of the
company.
 Developing effective report including long term financial planning.
 Developing strong relationship with the senior management, stakeholders and other
external partners of the company in effective manner.
 Leading, directing and managing financial as well as accounting team of the company.
JOB DESCRIPTION FOR Chief Operations Officer
Organisation: General Motors
Department: Automotive strategy team
Job Title: Chief Operations Officer
Job location:
Job summary
The enterprise is hiring visionary COO for operational process in order to formulate rightful
strategy for providing customers better experience. COO will be required manage all business
activities align them in sequential track in order to implement business strategies in appropriate
manner.
Role and responsibility:
 Working with key executives of company in order to execute all operational activities of

the company.
 Driving organisational performance with the support of employees and aligning their
work according to their respective goal and objectives.
 Assigning work to team members according to their job roles in effective manner
 Analysing marketing activities and overlooking their implication at marketplace in
effective manner.
 Assessing and executing developed processes within the company so that new
technologies and management can collaboratively work together in order make
improvement in their organisational work in rightful manner.
 Make future business projections for the coming years.
 Design and document all audit plans and prepare all reports according to establish
procedures and monitor all corrective actions according to industry standards.
 Provide training to all quality auditors and perform various assessments processes and
prepare schedule for travelling to various sites.
 Enhance compliance department and organization reputation by accepting ownership for
accomplishing new and different requests; exploring opportunities to add value to job
accomplishments.
JOB DESCRIPTION FOR Business Development Officer
Organisation: General Motors
Department: Automotive strategy team
Job Title: Business Development Officer
Job location:
Job summary
Looking for an experienced candidate who can research and pursue new business leads in order
to facilitate growth and development of company. The candidate will have to work in
accordance with newly laid business proposal and presentation. The individual should have
effective interpersonal communication and public speaking skills. Also, they should know how
to tactically deal with customer behaviour and minds to turn them into potential lead for

business.
Role:
 Developing corporate as well as marketing plan in sync with MD for attainment of goal
related to revenues.
 Providing assistance in branding of organisation by leveraging media communication
practices like press release, ads, website, marketing collateral and many more.
 Analysis of past and present budget, sales, revenue, expenditure and product deficiency
for provision of suggestions in relation to growth and development of company.
 Researching the marketplace to identify potential opportunities.
 Responding to queries placed by clients associated with organisational offerings at
market.
 Development of business proposal for old as well as new base of clients.
JOB DESCRIPTION FOR Project Manager
Organisation: General Motors
Department: Automotive strategy team
Job Title: Project Manager
Job location:
Job summary
Looking for candidate who is having experience of at least 3 years in auto-mobile sector and
also has ability to perform their lead whole project which includes planning, budgeting,
documentation etc. of specific project for the company. Candidates are required to strong
communication, leadership, analytical and management skill for handling job of project
manager.
Role:
 Planning for resources required for the projects
 Assembling all available resources and leading whole team according to the project so
that they perform their work in right direction.

 Analysing team performance at regular basis and make changes as per the requirement.
 Develop budget for the team according to the requirement of project.
JOB DESCRIPTION FOR Executive
Organisation: General Motors
Department: Automotive strategy team
Job Title: Executive
Job location:
Job summary
The company is hiring strategic executive for the automation strategy team who will be
responsible for developing effective strategy for the company as per the advices provided by
superiors.
Role:
 Manage information flow in a timely and accurate manner
 Make travel and accommodation arrangements
 Take minutes during meetings
 Act as an office manager by keeping up with office supply inventory
 Act as the point of contact among executives, employees, clients and other external
partners
 Screen and direct phone calls and distribute correspondence
JOB DESCRIPTION FOR Technical Personnel
Organisation: General Motors
Department: Automotive strategy team
Job Title: Technical Personnel
Job location:
Job summary