This website uses cookies to ensure you have the best experience. Learn more

Downsizing Of Gm Essay

4996 words - 20 pages

|Counting Our Blessings |
|Organizational Re-Structure of General Motors |
|Behavior in Organizations |

I. Introduction
II. Definition
a. Downsizing
b. Restructuring
III. Primary Issues (Part One)
a. How to Downsize Effectively
IV. Company Background
V. Primary Issues (Part Two)
a. General Motors: Restructuring
VI. Conclusion
VII. References

Over the ...view middle of the document...

In order to comprehend the changes that have transpired with the General Motors Company, we must first define our changes. Downsizing can be defined as “an organization’s conscious use of permanent personnel reductions in an attempt to improve the efficiency and/or effectiveness” of the company (Budros, 1999). Most often, downsizing results in using layoffs as a strategy to eliminate personnel permanently. Downsizing has become a leading strategy for companies around the world. The prime reason of most downsizing efforts is the desire for immediate reduction in cost as well as increasing levels of efficiency, productivity, profitability, and competitiveness (Gandolfi, 2008). Downsizing changes the dynamics of employees, leadership teams, and the entire organization. Research has shown that most people see the consequences of downsizing as negative (Budros, 1999). According to Budros (1999), the negative impact on downsizing results in low morale and motivation, not to mention a decrease in labor and productivity.
Theories and strategies aside, it is clear that downsizing has changed the nature of the relationships between employees and leadership throughout the entire organization. The potential of a reduction in numbers hangs in the minds of employees when it is unclear and done in a manner lacking communication. This in turn greatly impacts employees on a daily basis, leaving them with feelings of uncertainty as to who will be next. As a result, it becomes difficult to maintain an effective and profitable environment (White, 2009).
Over time, the meaning of downsizing has become clouded because nearly everyone treats downsizing and restructuring as overlapping or portrays downsizing as a general concept that encompasses restructuring. By definition, restructuring is changes in an organization’s formal structure, which may includes cutting hierarchical levels and or divisions, consolidating units, and reorganizing work tasks (Budros, 1999). Downsizing and restructuring are independent of one another but are often correlated to one another when it comes to companies strategizing at improving efficiency.
Since the practice of restructuring has become widespread in present-day organizations, the basic management principles need to be altered to create a smooth transition for employees. Human resource programs should be aligned in promoting hard work, and basically employee-centered, since these individuals are the company’s key strength. Team work also plays a vital role in the organizational management. Oftentimes, problems in the industry are caused by a lack of collaboration (Peak, 1997). For employees of companies involved in such events, this is traumatic. Using behaviors in each type of change, management members may not only survive but thrive in the innovated organization. By knowing how to recognize the signals and opportunities that accompany these events, you can emerge from a period of...

Other Papers Like Downsizing of Gm

Communicating Change Analysis

1149 words - 5 pages General Motors and Ford: Communicating the Change Managing Organizational Changes (HRM-587) DeVry University, Keller Graduate School of Management April 13, 2014 “When a company decides to make a major organizational change whether it's a new emphasis on customer service, quality management, restructuring or downsizing managers must get the message through to front-line employees, and enlist their support...or the changes will create

Carlos Ghosn Essay

1468 words - 6 pages orchestrating one of the decade's most aggressive downsizing campaigns and spearheading the turnaround of Nissan from near bankruptcy in the late 1990s, Ghosn earned the nicknames "le cost killer" and "Mr. Fix It."[2] After the Nissan financial turnaround, he achieved celebrity status[3] and ranks as one of the 50 most famous men in global business and politics.[4] In Japan, he is the superhero protagonist in a popular "manga" comic book series.[5] His

Organisational Structure

3563 words - 15 pages firmsave only four levels of management: top management, plant management, department management, and section management. Some U.S. companies also have drastically reduced the number of managers as part of a downsizing strategy; not just to reduce salary expense, but also to streamline the organization in order to improve communication and decision making. In a virtual sense, technology is another means of flattening the organization. The use of

JIT Systems

4476 words - 18 pages system is an easy task. Large organizations accustomed to manufacturing products on a large scale may assume it’s easy to reduce resource usage, while maintaining similar if not higher levels of production overall. Due to the reliance JIT has on efficient and effective coordination, as well as many of the new risks this introduces to operations, it becomes incredibly difficult to make this type of adjustment downsizing. The challenge stems from

Labor Relations

3585 words - 15 pages minorities from executive level jobs (Craver, 2006). As it relates to a company such as Amazon, it can be seen that they are not anti-union. Notwithstanding, when reviewing companies like General Motors. The unions, within that corporation were constantly asking for higher pay and unlimited benefits, which in turn pushed the company into massive debt and unprofitability, and in turn GM as a company went bankrupt and stockholders lost all of their

Allan Mulally 21st Century Leadership

2975 words - 12 pages , if you satisfy customers |and downs of the market but a | |Dysfunctional Behaviour ( Dysfunctional Work Culture) |model} changes to the org. structured [restructuring & downsizing) changes to the |Business Model & attendant Strategies |better than the competition” |fundamental shift in the very | |His challenge was to develop a

Brand Audit

5559 words - 23 pages TMC, is a multinational automaker headquartered in Toyota, Aichi, Japan. It is the world's third largest automobile manufacturer by sales and production. The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota Industries, it created its first product, the Type A engine, and, in 1936, its first passenger car

Freedom And Responsibility

2141 words - 9 pages Built within the Constitution of the United States are specifically defined freedoms that are guaranteed to all citizens. Conversely, with every constitutional freedom there comes a corresponding responsibility. On September 25, 1789, the state legislature’s twelve proposed amendments were transmitted by congress, the first two dealing with congressional representation and congressional pay. The following numbers three through twelve were

Hate Crime Laws

2348 words - 10 pages On June 7, 1998, 49-year-old James Byrd Jr. of Texas accepted a ride from three white men, who then beat him severely, urinated on him, chained him by his ankles to the back of their pick-up truck, dragged him for three miles into the countryside, and dumped his corpse in front of an African-American cemetery (Graczyk). A little over a year later, a jury sentenced ring leader John King to death by lethal injection (“Man Executed for Dragging

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages Rational Emotional Behavior Therapy Case Study of Sarah: A Conceptualization and Treatment Plan Rational emotive behavior therapy, REBT, was developed by Albert Ellis and holds the central belief that the events in our lives do not cause our disturbances but that they are instead caused by our view of the events (Murdock, 2009). Murdock (2009) states that “people are seen as responsible for their behavior” (p. 279) but, because they are

Holidays In Albania

1636 words - 7 pages Have you ever thought about having exciting and incredibly cheap vacations? Albania might be the right choice. According to My Travel Guide, Albania is ranked the fourth among ten places worth visiting in Eastern Europe (“Top 10 Eastern European Destinations”). One can encounter three kinds of vacations in this Mediterranean country: winter, summer, and cultural. The ideal places to spend your winter vacations are the Albanian Alps. They are

Related Essays

Boeing Case Essay

625 words - 3 pages alternative forms of employment. The following is a description of how The Boeing Company successfully completed this effort at downsizing. Downsizing is thought to be an effective human resources strategy to increase global competitiveness. Labor costs, generally one of the largest costs for most organizations can be reduced through downsizing. In many cases the downsizing process includes outsourcing or subcontracting jobs previously performed

General Motors Essay

1104 words - 5 pages General Motors General Motors (GM) has been in business for nearly a century, and in the last four decades, there business has undergone tremendous structural change. In 1962 they had 605,000 employees around the world but now in 2005 they only have 335,000 employees world-wide. Over those 43 years, new technologies and downsizing resulted in a much leaner GM, producing more vehicles with far fewer employees. GM lost $10.6 billion in 2005

Ford Business Case Anlysis Essay

1044 words - 5 pages evolved into a major driver in the consumer decision making process. Research indicates an increasing amount of new vehicle buyers are downsizing, choosing smaller and more fuel efficient vehicles. (J.D. Power, 2012) Ford shifted its focus early on towards the smaller and more fuel efficient model and should increase investment in this space. In addition to the development of green product offerings, Ford should also continue its green operations

Chick Fil A Essay

564 words - 3 pages of positions they have certified. This pay system approach is mostly used in manufacturing and processing plants, and is one of the fastest growing plans used today. Examples of companies that have used skill based programs include: TRW, General Mills, GM Saturn, and Northern Telecom. A broad based- survey of Fortune 1000 firms found that 50 percent of those with pay based skills plans rated their plans as successful or very successful