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Annotated Bibliography Essay

1406 words - 6 pages

THE CHANGE PROCESS IN GENERAL MOTORS AND FORD
This brief analysis reflects on the change management processes employed by the two motor companies; Ford and General Motors. The references discussed in this paper were a source of information that provided knowledge into the 2 major corporations and the transformational changes that they underwent in an effort to ensure their profitability and viability.
Both GM and Ford underwent major decline and loss in stock some few years back and even as one filed for bankruptcy (GM) the other hard not to, and succeeded. Both companies needed to make some changes in an effort to recover. In an article by Terry Corbell, as he points out the 7 lessons ...view middle of the document...

One of the external forces that pushed GM in this direction was Toyota emerging as a worthy competitor (Muhammad, 2014). This affected the total profitability and cash flow, thus leading to a financial crisis. GM has been trying for the past few years to exact change and resurrect the Company’s profitability. This has been mostly through cost-cutting (GM not operates with 101,000 employees in North America. This is less than half of the 226,000 workers GM had employed in North America in 1998) and through cutting brands. Culture change has also been in the works. These changes may be pushing GM in the right direction, but there is still a lot of skepticism about whether this Company will come out on top. General Motors is betting that a new company culture—one emphasizing risk-taking and independent decision-making—can help reverse its fortunes. But the carmaker has been down the culture-change road many times before (Smerd, 2009). In his article on GM’s situation, Porter Stanberry concludes that GM will go bankrupt again. He argues that the government wasted hundreds of billions of dollars in capital to save a company whose products are mostly sold in other markets and aren't competitive in the U.S. And in doing so, it destroyed several hundred years of legal precedent that provides the foundation of capitalism in America (Stansberry, 2012). Nevertheless, large scale transformational change takes a longer time to implement and maybe an even longer time before pay off. According to Ghoshal and Bartlett, there are three distinct but interrelated transformational change phases: Rationalization (streamlining company operations), Revitalization (leveraging resources and linking opportunities across the whole organization) and Regeneration (managing business unit operations and tensions, while at the same time collaborating elsewhere in the organization to achieve performance). Going through these change phases is not necessarily easy, with the process being akin to the transformation of a caterpillar into a butterfly: “It goes blind, its legs fall off, and its body is torn apart as the beautiful wings emerge. Similarly, transforming a hierarchical bureaucracy into a flexible, self-generating company can be painful, and it requires enormous courage from those who must lead the process of change.”(Palmer, 2009). Perseverance would thus be required of them and the company should be unrelenting in sustaining its changes. As Ford now enjoys heightened market share and profits, Mulally said the positive momentum stems from both “relentless implementation” as well as a return to the company’s ambitious roots (Smith, 2012). Maybe they could learn something from Ford.
The 2 texts by Galbraith; Designing the customer-centric organization: A guide to strategy, structure, and process. And Designing Your Organization: Using the Star Model to solve 5 critical Design challenges analyze the Jay Galbraith model ‘Star’ Model and its 5 components: strategy,...

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