Human resources management examining general motors Essay Example

value chain and become a customer-focused business, my recommendation for General Motors is to utilize the internet and other advanced information systems technology. This involves not just offering vehicles, but also providing electronic services to customers.

Mission Statement

General Motors' mission statement declares that "GM is a multinational corporation dedicated to socially responsible operations worldwide. Our objective is to offer high-quality products and services that deliver exceptional value to our customers. Furthermore, we strive for our employees and business partners to share in our achievements while generating consistent superior returns for our stockholders." We assessed this mission statement utilizing Drucker's five questions:

• What is our concern?
• Who is the client?
• What is the value to the client?
• What will our concern be?
• What should our concern be?

The questions above were identified as areas of concern that needed to be addressed in General Motors' mission statement. The current statement does not fully acknowledge GM's role as a motor vehicle manufacturer or consider the Global Sullivan Principle. It also fails to mention GM's commitment to providing products and services in 200 different countries. Our recommended mission statement for General Motors should emphasize that GM is an international manufacturer of motor vehicles engaged in socially responsible operations worldwide, committed to excellence in all aspects of our business. Following the Global Sullivan Principles, GM aims to deliver high-quality products and services that provide superior value to customers in 200 different countries. We prioritize the success of our employees and business partners while striving for sustained superior returns for stakeholders.

Key Business Procedures

A key business procedure refers to executing a sequence of activities that collaborate in producing a well-defined range of products and services, resulting in achieving a

measurable business outcome.

They also represent individual ways in which organizations coordinate work, information, and knowledge, as well as the ways in which management chooses to organize work.

Integration between Business Process and Information Systems

While each organization has its own set of business processes, many other business processes are cross-functional, surpassing the boundaries between sales, marketing, manufacturing, research and development. These cross-functional processes cut across the traditional organizational structure, grouping employees from different functional areas to complete a piece of work. Information systems can help organizations achieve significant efficiencies by automating parts of these processes or by assisting organizations in reviewing and streamlining these processes. By integrating these processes, organizations can become more focused on efficient resource management and customer services.Suggestions and recommendations of crucial concern procedures include:
- Functional Area
- Business Procedure
- Fabrication and Production
- Assembling the merchandise, look intoing for quality, bring forthing measures of stuffs
- Gross saless and Selling
- Identifying clients, doing clients cognizant of the merchandise, selling the merchandise
- Finance and Accounting
- Paying creditors, making fiscal statements, pull offing hard currency histories
- Human Resources
- Hiring employees, measuring employees ' occupation public presentation, inscribing employees in benefits program

External Environment factors have contributed to the current state of affairs of General Motors.

Firstly, the economic progress of the United States is hindered by their overly optimistic sales projections for 2008. GM had expected to sell more than 16 million vehicles, including trucks and coaches, this year (Taylor III, 2008).

Secondly, GM faces fierce competition from global rivals like Honda, Nissan, and Hyundai. These competitors offer better fuel efficiency, stylish designs, and lower prices compared to GM's brands.

Thirdly, the rising fuel prices in the market have

discouraged consumers from purchasing vehicles and encouraged them to use public transportation or opt for smaller vehicles. Currently reaching USD 120 per barrel.

In the United States, consumers are looking to replace their less fuel-efficient vehicles with smaller ones, as indicated by various trends, according to David Tompkins, executive manager of industry solutions for Edmunds.com, parent of Auto Observer (Buss 2008) (refer appendix 2).

Strategic Human Resource Management Theory

Balance Score Card

Balance Score Card is an indicator used to measure the financial and non-financial state of affairs at General Motors. It consists of four parts: financial position, internal business position, customer's position, and learning and growth position. The Balance Score Card is similar to a car's dashboard, providing real-time information such as fuel level, speed, distance traveled, and any faulty systems.

It is stated by Pangakar ; Kirkwood (2007) that the balance scorecard can aid companies in making essential changes to reach their business goals. The balance scorecard allows companies to gain a more thorough understanding of their operations and improve their alignment with long- and short-term strategic objectives (Punniyamoorthy ; Murali, 2008). The substantial loss of USD38.7 billion will impact GM's internal business processes, customers, and growth. This significant loss was primarily caused by deferred tax charges and a decrease in sales.

According to Bunkley N. (2008), General Motors is experiencing financial difficulties with a decrease in stock value of approximately 5% or USD1.67, bringing it down to USD34.48. Consequently, the company has chosen to lay off multiple employees as a measure to minimize these losses. This downsizing will impact their internal business activities and could potentially result in customer dissatisfaction.

The usual delivery time for cars at General Motors

is one week. However, if there are layoffs, the delivery time increases to two weeks, which causes dissatisfaction among customers who have to wait an extra week for their car. This lack of resources impairs General Motors' competitiveness in the volatile market and results in a decrease in sales. To successfully achieve their balanced scorecard goals in the future, General Motors must promptly address this external environmental issue.

They need to improve their internal processes and strategy for acquiring and expanding in order to overcome their competitive issue. General Motors must develop new designs and engineering to expand their product line. They must invest in research and development in order to create superior vehicles compared to their rivals. How can they achieve this? One way is by acquiring technology from their competitors or from a similar industry. For example, in 1996, Proton's acquisition of Lotus made them competitive at that time.

When this occurs, employees will need to be trained in order to enhance their knowledge. In some cases, workers will be sent abroad for specialized training in technology. This will result in increased efficiency and productivity at General Motors. Similar to a well-functioning machine, every department in the organization performs optimally when they all work towards a shared goal. All four positions in the balanced scorecard work together through their important objectives, measures, and initiatives.

To ensure that General Motors can generate enough income to compensate for the significant amount of losses, they need to increase productivity and spend more on research and development, among other things. In General Motor's case, the financial aspect is the main strategy for the other three aspects. The learning aspect can

collaborate with the sales department to provide training for sales staff or develop new and efficient production equipment. To improve on the customer scorecard, they can conduct research by seeking feedback from existing customers on how to enhance customer relationships. Customer retention is an important factor in boosting sales, as it leads to repeat purchases, positive word of mouth, and reduces the cost of acquiring new customers.

Balance Score Card will ensure human capital development, improving employee satisfaction and increasing employee motivation (Kaplan & Norton, 1992) in General Motors.

High Performance Work System

High performance work system (HPWS) is also another method to explain the situation in General Motors. Autonomous work teams, open systems and performance-based pay are collectively known as high-performance work systems (Rouse, 2000). HPWS have also been referred to as high engagement work systems, flexible work systems and high commitment work systems (Aghazadeh & Seyedian, 2004). In other words, they are simply work practices that can be intentionally introduced in order to improve organizational performance. The main focus of HPWS is organizing work so that employees participate in decisions that affect the everyday operations of an organization. There are three possible factors that can affect high performance work system in General Motors; retrenchment of workers, technology used and layout design.

The success of an organization is highly dependent on its employees. If General Motors were to downsize, it would not only face the risk of losing skilled workers but also its competitive advantage. In order to thrive in a rapidly changing environment, a company must rely on the innovative thinking, problem-solving abilities, and collaborative efforts of its workforce. It is crucial for these individuals to have

the freedom to make decisions regarding how they can best accomplish their tasks. By sharing their knowledge and expertise, they contribute to the establishment of a high-performance work system. For example, one of General Motors' engineers is presently engaged in the development of a fuel-efficient engine.

Engineer A may require assistance from Engineer B, but when GM decided to lay off employees, Engineer A will face difficulty in engine development. Employee performance can be improved through team plants. According to a survey by Thompson, Baughan, and Motwani (1998), companies like General Electric, Proctor & Gamble, and Xerox Corporation experienced significant productivity gains of up to 250% and doubled their profits. The use of technology is another characteristic of a High Performance Work System. All managers in every department at General Motors should be able to identify the technology used in their organization.

The Human Resource Information System (HRIS) is used to store information about workers, which assists managers in determining employee performance. Utilizing technology without human involvement is also pointless. In General Motors, directors must assess whether qualified workers can operate the tools. Additionally, designing the layout of production plants and offices is crucial to enhance worker performance and productivity. HR directors are responsible for meticulous job planning.

According to Aghazadeh and Seyedian (2004), the layout of General Motors plays a crucial role in ensuring success. It effectively uses space, people, and equipment, improves the flow of information and materials, boosts employee morale, and promotes flexibility. To achieve an improved and sustainable working environment, directors at General Motors should propose changes to the current layout. This will help General Motors recover from its significant financial losses and avoid

employee layoffs. Although implementing High-Performance Work Systems (HPWS) may be expensive, uncertain in terms of success, and time-consuming; it can ultimately benefit General Motors in the long run.
Additionally, it is recommended that Human Resource activities focus on employee training and development programs to enhance productivity. Furthermore, employees could undergo offshore training in Japan to learn various methods for producing better cars.

Managers must conduct research and human resource planning to find efficient methods for completing a particular project. General Motors needs to identify a partner to establish a strategic alliance, aiming to recover from substantial financial losses. This alliance offers an opportunity for both companies to exchange technological advancements and trade secrets. Develop a program that assists laid-off workers in securing new employment, eliminating the need for additional expenses on severance packages. Consider outsourcing tasks to countries like China or India, where inexpensive labor can aid in financial recovery.

Create a wage program where directors reward employees based on their ability to work in a group. Conduct regular talks with all employees every 3 months to explain the company's vision, strategy, and goals. This will foster a sense of belonging and potentially encourage employees to go above and beyond for the company.

As for the Rival Analysis, the sheer size and market share of General Motors (GM) make it unlikely for new entrants to pose a threat. However, GM's vertical integration does not incentivize purchases from suppliers, causing them to lose out on price bargaining. On the other hand, competitors such as Ford, DaimlerChrysler, and Japanese manufacturers have better styling and quality, a factor GM should consider to maintain its competitive edge. Additionally, the perceived high cost of

GM motor vehicles has led buyers to prefer purchasing sport utility vehicles and pickups from other manufacturers. Despite these challenges, GM benefits from a diverse product line and effective pricing and functions.

In terms of Information Systems, implementing them throughout every department in the organization can lead to significant efficiencies by automating and streamlining various aspects of the business. We recommend the use of specific information systems within General Motors:

- Human Resource Information Systems: These systems are designed to maintain employee records, track their skills, monitor job performance, and support planning for compensation and career development.The following outlines the various aspects of the degree in relation to operational, employee records, cognition, career paths, management, compensation analysis, strategic human resources planning, and finance and accounting systems. The degree encompasses the following:

Degree

• Operational
• Employee Records
• Track employee preparation, accomplishments and public presentation assessment
• Cognition
• Career Path
• Designs calling waies for employees
• Management
• Compensation Analysis
• Proctors the scope and distribution of employees rewards, wages &A ;benefits
• Strategic
• Human Resources Planing
• Plans the long-run labour force demands of the organisation

Finance and Accounting Systems

These systems are responsible for keeping track of the company's financial assets and fund flows.

Degree

• Operational
• Histories Receivable
• Path outstanding debts
• Cognition
• Portfolio Analysis
• Designs portfolios investing
• Management
• Budgeting
• Prepares short-run budgets
• Strategic
• Net income Planning
• Plans long-run net incomes

Gross sales and Marketing Systems

These systems assist the company in identifying customers and their needs, developing products or services that meet those needs, promoting and selling them, and providing ongoing customer support.

Degree

• Operational
• Order processing
• Enters, processes and tracks orders
• Cognition
• Market Analysis
• Identifies customers and markets using data on demographics, markets, consumer behavior and trends
• Management
• Pricing Analysis
• Determines prices for products and services
• Strategic
• Sales and Forecasting
• Prepares 3-5 year sales forecast

Fabrication and Production Systems

These systems are responsible for planning, developing, producing products and services, and controlling the flow of production.

Degree

• Operational: Controls the actions of machines and equipment
• Cognition: Designs new merchandises utilizing the computing machine
• Management: Decides when and how many merchandises should be produced
• Strategic: Prepares and decides where to turn up new production installations

In add-on to the information systems mentioned here above, we besides recommend the undermentioned office mechanization systems:

• E-mail System: Improve GM's internal and external communicating, making an effectual and efficient service
• Word Processing System: Office system engineering that facilitates the creative activity of paperss through computerized text redaction, data format, hive awaying and printing
• Document Imaging System: System that converts paperss and images into digital signifier so that they can be stored and accessed easy by the computing machine
• Timesheet System: Enables employees to make full in the timesheet signifiers online so that direction can O.K. and track the timesheet online.

Decision

Whilst Ford could benefit from shutting down more

factories and focusing on a smaller portion of the U.S. market, this strategy would not be favorable for GM. If GM were to produce and sell fewer vehicles, it would result in less income to cover their significant pension and healthcare costs. Therefore, GM needs to maintain a steady cash flow and focus on reducing the number of retired individuals while also making improvements in quality, efficiency, design, and brand appeal. Despite GM's efforts to decrease the time it takes to produce a vehicle from an average of 32 hours in 1998 to 24 hours in 2003, Japanese competitors still outperform them in terms of introducing new models to the market.

Honda's new vehicle development rhythm is currently 14 months, but the company aims to shorten it to 12 months. GM should view this as an opportunity to improve its own development pace and potentially surpass its competitors. These suggestions are intended to help GM maintain its market share, but their effectiveness can only be fully understood once they are implemented and the results are carefully analyzed for potential adjustments.