Over the past decades, organizational changes have become recurrent. It then became decisive for managers to perfectly understand this phenomenon in order to lead organizations to efficiency.
The main objective of this report is to gain a better understanding of large scale organizational change. The different changes implemented by General Motors company in an attempt to cope with the economical crisis of 2008 is a perfect example of this concept. This paper details each change undertaken by the organization by highlighting the different pressures identifying the problems the organization met and ultimately detailing the solutions that General Motors implemented. For this purpose, different tools and sources from the literature will be used. Such as : SWOT analysis, PESTL analysis and Burke-Litwin model on which this report is based.
The Burke-Litwin model shows that the external environment is the main driver of organizational change. This model is relevant as General Motor's pressures for change are in majority external.
In addition, the sources relied on in this report are from different journals available on internet, such as the Journal of Human Resource Management and Multinational Business Review
Ultimately, the report analyzes the results of the changes on the company performance as well as on its environment.
Table of Contents
General Motors History4
From 1908 to 20074
From 2008 to 20105
Findings from the literature6
The SWOT Analysis6
Nature of changes7
The Burke-Litwin Model8
Application for General Motors11
Limitations of Burke and Litwin Model15
Lazlo, C. Laugel, J. F., 1999. Large-Scale Organizational Change. Butterworth-Heinemann17 Appendix19
Appendix A: GM Profits and Revenues19
Appendix B: Unemployment rate in Detroit and USA20
This report attempts to get a better understanding of change in organizations, and more particularly large scale organizational change. Even though change has many definitions from the literature, all scholars agree on that it is inevitable. Be it small or large organizations, first or second change, it will happen, wanted or not. To begin with, the concept of large scale organizational change will be defined in this report by Ledford et al (1991) as a “lasting change in the character of an organization that significantly alter its performance.” For Lazlo and Laugel (1999) “Large scale organizational change provides the principles by which large scale organizations reinvent themselves not once, but on an ongoing basis”. In order to understand this concept, General Motors company will be used as a case study throughout this report. The organizational world is constantly changing and this fact is even more true since the economical crisis in 2008. General Motors is an old company and consequently has a long, lasting history of change. Hence, this report will primarily focus on the change undertaken by General Motors from 2008, and the great recession, to 2010. To begin this report, a brief history of General Motors will be presented. Then a description of the different type of change according to the literature will be given, followed by a description of the three models of change that will be used to analyze General Motors throughout this report. The SWOT analysis will give a first description of G.M environment, the Burke-Litwin model will be the base of this report and the PESTLE analysis will be used to analyze the different pressures applying on General Motors.
General Motors History
General Motors was the world's largest automakers company for more than seventy years. This company was once the single largest employer in the world. Nowadays its global headquarter is based in Detroit, the company employs more than 200,000 people all around the world and does business in some...