Background to HRM at General Motors Corporation Essay Example
Background to HRM at General Motors Corporation Essay Example

Background to HRM at General Motors Corporation Essay Example

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  • Pages: 4 (1838 words)
  • Published: October 22, 2017
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General Motors Corporation ( NYE: GM ) is the prima American car manufacturer in the universe with its operations crossing in 157 states. The auto maker was established in 1908 in Michigan and today it is headquartered in Detroit. the United States of America. Besides the domestic industry of the United States of America. General Motors manufactures autos and trucks in other 30 states around the universe. Among its trade name merchandises are Cadillac. Buick. Chevrolet. GMC. GM Daewoo. Hummer. Holden. Opel. Saab. Pontiac. Vauxhall. and Saturn. Besides these trade names that are owned by the car manufacturer. GMC besides operates joint ventures in China and Japan.

That is. Shanghai GM and SAIC-GM-Wuling Automobile severally. From its Website. General Motors Corporation is among the taking American employer with 204 000 employees distributed throughout its planetary markets. The employees include production applied scientists. fiscal hearers. sellers. and research workers among others. Before restructuring and retrenching that took topographic point in 2008 following a rough planetary fiscal crisis that resulted into a loss of $ 37. 3billion by the car manufacturer. General motors corporation was the prima American employer with 284 000 employees ( GMC. 2008 ) .

Because of its big web of planetary presence in 31 states. General Motors human resource direction patterns entail international patterns that are designed in conformity to the international operation demands and the organisational civilization designed to cut down operational costs. Majority employees of the corporation’s subordinates in the 31 states are drawn from the domestic pool of local labor markets and merely a few exi


les are drawn from USA as back office directors due to their broad cognition of its organisation civilization ( Cappelli. 1999 ) . The Board of managers which draws from the organization’s international market presence is charged with the duties of doing major determinations critical to the company’s operation. Harmonizing to Gustin ( 2008 ) . General Motors Corporation spent up to $ 103 million in settling health care insurance benefits of its retired employees in 2007.

From this information. it is apparent that the American car manufacturer provides life insurance covers for its employees upon retirement. However. following restructurung. these benefits were stripped away and merely a few employees still bask them today. From January 1. 2010. pension strategy of retired hourly employees of General Motors Corporation was transferred to United Autoworkers ; a 3rd party insurance houses and all lasting employees who were hired after january 1. 1993 nolonger receive wellness attention insirance benefit upon retirement ( GMC. 2008 ) .

The entry wage of the planetary car manufacturer is dictated by the labour Torahs of each market of operation and therefore varied with the United States of America being the highest irrespective by occupation classs ( Main et al. . 2007 ) . The organisation has invested in a Human Resource Management system that allows close interraction of its planetary employees through engineering such as e-mailing and enterprise resource Management ( Azrul. 2010 ) . Marketing scheme entails presentations by field sellers to the organization’s big distributers and on-line follow ups.

Reccommended HRM patterns for GMC

From the above background analysis of Genera

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Motors corporation. it is clear that the organisation requires international Human Resource Management patterns that will incorporate the cultural diverseness of its employees. The ruinous impact of the 2008 fiscal ciris that resulted into monolithic restructuring and retrenching of its human resources besides underscores the organization’s hapless human resource planning. The undermentioned recommendations are prescribed for the car manufacturer on the footing of figure 1 below.

The first recommendation. is Re-designing the concern scheme to aim the bottom line of the market. Harmonizing to Azrul ( 2010 ) . one of the chief grounds for the $ 37. 4 billion loss incured by the American car manufacturer is external market forces from rivals like Honda and Hyundai that were bring forthing far cheaper vehicles with high efficient engines and low fuel ingestion rates as compared to Genereal Motors’ trade names. In the heat of planetary fiscal crisis. the market shifted to ingestion of cheaper and less fuel consumers produced by the rivals ensuing in immense losingss by the General Motors Corporation.

The new concern scheme should imply planing autos and trucks with high eficent engines and electric autos that can last an rush in oil monetary values. This will affect an investing in fabricating engineerings that ensures high quality at decreased costs such as electric engines that uses bateries. This will give the Amecan taking car manufacturer a competitve advantage against the stiffening market competition.

The 2nd recommendation is outsourcing of labor from China and Japan. Many Corporations prefer to fabricate their merchandises from China because of the handiness of a comparatively inexpensive labor force when compared to western opposite numbers. General Motors corporation can either outsource its human resoure from China or set about most of its production from its Nipponese and Chinese Subordinates. The labour Torahs in the two states are comparatively flexible and firendly than in the United States of America. This will assist the American Automator cut down immense operational costs incured in run intoing the large paysheet of over 200. 000 employees.

The 3rd recommendation is integrating of employees’ preparation in high engagement work patterns. Harmonizing to Konrad ( 2006 ) . prosecuting employees of an organisation in occupation specific developing improves their productiveness by increasing their job-related accomplishments. cut downing leaning of perpetrating dearly-won mistakes. and increasing their occupation assurance. Training of General Motors’ employees on their occupation specifications will better their productiveness. Ofshore preparations in China and Japan are recommended.

This will let the corporation’s fabricating applied scientists to larn new efficient production engineerings of Japan and China in doing cheaper and extremely effiecient autos. Motivational inducements such as squad edifice Sessionss. deputation of responsibilities. self-managed leading manners. and pecuniary wagess will hike their committedness to the organisation. The combined consequence of preparation and motive will necesitate restructuring of a wage axial rotation while leveraging on improved productiveness of extremely productive employees.

The 4th recommendation is encompassing engineering in Human Resource Management system to heighten planetary cordination of its concern. Harmonizing to Dreher and Dougherty ( 2002 ) . the usage of engineering such as centralized Enterprise Resource Management system to co-ordinate human resource activities of General Motors will

heighten speedy sharing of thoughts and audience among the planetary employees of the company without barriers. This will let the organisation to transport out its selling schemes expeditiously and efficaciously without restriction by geographical distances. Effective Human Resource Management through streamlined sofware-based systems enhances fast communicating and online preparation which gives an organisation a higher competitory advantage.

The 5th recommendation is integrating of societal benefits such as pension and wellness attention strategies in the wages system. From the backround information above. it is apparent that General Motors Corporation with-held societal benefits for employees who were hired after January 1. 1993 and transferred the staying 1s to 3rd pary insirance houses. The American car manufacturer besides stripped healthcare benefits for retired employees beyond 65 old ages. Acording to Konrad ( 2006 ) . societal wagess like wellness attention insurance strategies make employees experience more valued by their organisations than pecuniary wagess in footings of fillips and salary increases. Besides pension strategies improve employees’ committedness to their employer because of future warrants. This reduces employees’ turnover which is indispensable in retaining critical human resources for continuity of operation of General Motors. High staff keeping improves an organization’s competitory advantage in a complex market of operational competition.

The 6th recommendation is the execution of employee productiveness direction and supervising systems such as Balanced Score Card ( BSC ) and High Performance Work System ( HPWS ) ( Rouse. 2000 ) . The latter system refers jointly to open systems. autonomouas squads and teamworks. and performance-based wage ( Azrul. 2010 ) . The execution of the two Human Resource Management systems will better organisational public presentation by supplying existent clip employees’ information storage database from which future managerial determinations. and wagess will be based.

Harmonizing to Konrad ( 2006 ) . employees of an organisation are more productive when they are cognizant that their public presentation is recorded for reappraisal in finding their hereafter wagess. Effective execution of the Human Resource Management systems will assist General Motors Corporation in categorizing employees harmonizing to their productiveness rates. This information is of import in finding the relevancy of occupation preparation and nonsubjective restructuring in the event of a crisis like that which befell it in 2008. In this instance. merely high productive employees will be retained.

The 7th recommendation is the execution of an integrative pay/ wages system to inculde performance-contingency wage strategy. skill-based wage. and seniority-based wage strategy. Harmonizing to performance-contingency wage strategy. the employees’ wages will be based on the public presentation of their on the job squads. This will assist the car manufacturer in making effectual self-managed and motivated squads. Skill-based wage will guarantee that employees’ wage strategies are based on their occupation accomplishments.

For case. production applied scientists will be given high wage than sellers because of their proficient accomplishments required by the organisation. Seniority-based wage strategy demands that those employees who have stayed longer in the organisation will acquire a higher wage than new comers because of their cumulative salary increements along their bearer way. Seniority-based wage strategy promotes staff keeping even when the entry wage is comparatively lower than the market rates because employees know

that there is a room for growing.

In general. General Motors Corporation should guarantee entire conformity with the labor markets and legal environments of their several states of operations before execution of the proposed recommendations. For case. the employment Torahs sing hourly rewards. minimal pay policy. employment chances. labour ordinances. and safety regulations in China are different from those of the United States of America. Therefore it is imperative that the American car manufacturer see their deductions in puting the minimal entry pay in each state of operation.


In decision. General Motors Corporation can prolong its competitory scheme as a taking car manufacturer by encompassing the above prescribed Human Resource Mangement system that integrates staff preparation on occupation related accomplishments. outsourcing. societal wages strategy. engineering. and performance-contingency wage strategy among others as strategic competiencies in its operation. The execution of Balanced Score Card and HPWS is critical in bettering the productiveness of the organization’s employees. The proposed system will heighten high staff keeping. high staff productiveness. and nonsubjective eventuality planning in times of planetary crises like the 2008 planetary fiscal crisis that lead to monolithic retrenchment by the car manufacturer.


Azrul. A. ( 2010 ) . Human Resource Management & A ; General Motors. Monash University Publication. p. 1-13. From: hypertext transfer protocol: //www. scribd. com/doc/14812855/Human-Resource-Management-General-Motors

Main. B. G. . Jackson. C. . Pymm. J. . & A ; Wright. V. ( 2007 ) . GMC: The Remuneration Committee and Strategic Human Resource Management. University of Edinburgh publications. p. 1-49.

Cappelli. P. ( 1999 ) . Employment Practices and Business Strategy. Oxfford. electronic warfare York: Oxford University Press.

General Motors Corporation. ( 2008 ) . Restructuring Plan for Long-run Viability: Submitted to Senate Banking Committee & amp ; House of Representatives Financial Services Committee. Detroit: General Motors Corporation.

Rouse. D. ( 2000 ) . Manufacturing Sdvantage: Why High Performance Work Systems Pay off. Journal of Team Performance Management. vol 96 ( 5 ) . p. 1420.

Dreher. G. . & A ; Dougherty. T. ( 2002 ) . Human resource scheme: A behavioural position for the general director. Boston: McGraw-Hill/Irwin.

Gustin. L. R. ( 2008 ) . Billy Durant: Godhead of General Motors. Ann Arbor. Michigan: University of Michigan Press.

Konrad. A. M. ( 2006 ) . Prosecuting Employees Through High-Involvement Work Practices. IVEY Business Journal. n. p. From: