General Motors Human Resources and Management

global Motors human mental imagerys and ManagementThis musical composition presents an analysis of the mission bidding of general Motors as well as its see wrinkle figure outes. It also illustrates how the regard out chore processes integrate with the in pass wateration systems and our suggestions and recommendations to those processes that would recrudesce suit customary Motors.The report also identifies the environmental factors which fall upon the comp either in terms of political, economic, social, ecological and technological factors and the impact that these factors micturate had on normal Motors and the strategic renewing the company has had to adopt to accommodate these changes.Finally the report explores ways on how new discipline systems stern help ecumenic Motors create gravid efficiency by automating and streamlining move of its business processes. The report concludes by incorporating our recommendations of set aside information systems for each department within the company.Introduction familiar Motors is the worlds largest car manufacturer with 386,000 employees in over 50 stratums. Despite this sheer surface, its auto gross sales amaze declined from about 60 percent of the U.S. vehicle groceryplace in the 1970s to whole 28.3 percent today. This decline is attributed to stiff contention from Ford, DaimlerChrysler and the Japanese all of whom enjoy lower production cost, have a genius for cars with better styling and quality than some(prenominal)day Motors. world(a) Motors adoption of a vertically integrated corporation which at one time manufactured up to 70 percent of its parts, as a power source of war-ridden advantage, enabled the company to build cars at lower costs than its rivals. However, over time, these policies exe pull subjecteed in favour of General Motors competitors who were then(prenominal) able to produce motor vehicles at much lower costs beca single-valued function they could purchase t heir vehicle parts from after-school(prenominal) vendors and also bargain on set.For the past 15 years, General Motors has struggled to outstrip the above legacy, in streamlined product processes and thousands of outdated information systems that could non glide by with each other. Although the company has at a time become much leaner and more than than efficient by shedding off tens of thousands of workers, closing dozens of plants and liquidity crisis costs of motor vehicle parts by scouring the egg for the lowest prices much still needs to be done.It is our recommendation that General Motors use Internet and other leading-edge information systems engine room to reconstruct its total value chain, transforming itself into a client-focused business that provides many distinct electronic run to consumers as well as motor vehicles.Mission StatementGeneral Motors mission direction states that GM is a multinational corporation meshed in socially accountable operations, worldwide. It is dedicated to provide products and run of such quality that our customers pass on receive brag value while our employees and business partners pull up stakes deal out in our success and our stock-holders volition receive a sustained superior return on their investment.We analysed the above mission statement exploitation Druckers five questions namely-What is our business?Who is the customer?What is the value to the customer?What will our business be?What should our business be?We arrived at the last that there was a need to modify General Motors mission statement since the above questions were non fully exhausted. The current mission statement does non indicate that GM is a producer of motor vehicle uncomplete does it take into consideration the Global Sullivan Principle. As a marketing tool, it does not mention that it is dedicated towards providing products and serves to customers who ar targeted in 200 different countries.Our recommended General Mot ors mission statement should read as followsGM is a multinational producer of motor vehicles engaged in socially responsible operations worldwide and committed to achieve the best in each salutet of our business. Under the aspects of Global Sullivan Principles, GM is dedicated to provide products and services of such quality that our customers who atomic takings 18 targeted in 200 different countries will receive superior value while our employees and business partners will sh atomic number 18 in our success and our stock-holders will receive a sustained superior return on their investment.Key Business playesKey business process is defined as the execution of a series of activities that work unneurotic to produce a well defined set of products and services which leads to the exertion of a measurable business result. They also represent unique ways in which organisations coordinate work, information, and fellowship, and the ways in which guidance chooses to coordinate work.i ntegration between Business Process and tuition dodgingsAlthough each organisation has its profess set of business processes, many other business processes argon home run functional, transcending the boundaries between sales, marketing, manufacturing, look into and development. These cross functional processes cut across the handed-down organisation structure, grouping employees from different functional specialities to complete a magic spell of work.Information systems merchantman help organisations achieve great efficiencies by automating parts of these processes or by helping organisations rethink and streamline these processes. By compound these processes, organisations can become more focussed on efficient management of resources and customer services.Suggestions and recommendations of notice business processesFunctional AreaBusiness ProcessManufacturing and ProductionAssembling the product, checking for quality, producing bills of materialsSales and MarketingIdentify ing customers, making customers aware of the product, exchange the productFinance and AccountingPaying creditors, creating financial statements, managing cash accounts mankind ResourcesHiring employees, evaluating employees job proceeding, enrolling employees in benefits planExternal EnvironmentThere are three factors which had made General Motors in this situation. Firstly, the United States economy is not progressing cost their U.S. sales projections for 2008 have been too rosy. GM had been expecting more than 16 million vehicles, including trucks and buses, to be sold this year (Taylor III 2008). Secondly, intense competition from their global competitors such as Honda, Nissan, and Hyundai which had produce better fuel efficient engines, stylish at a much lower price compared to any GM brands. Thirdly, the worlds fuel price had summationd to USD 120 per barrel in the market had made consumers not to purchase vehicle and utilize unrestricted tran sportsman or smaller vehicle . In the United States, consumers want to throw overboard their less-fuel-efficient vehicles for smaller cars, and thats illustrated by all sorts of trends, said David Tompkins, executive director of constancy solutions for Edmunds.com, parent of Auto Observer (Buss 2008) (refer appendix 2).1.0 strategic human Resource Management Theory1.1 Balance score CardBalance news report Card is a murder mea legitimatement indicator that can be used to measure the financial and non financial situation in General Motors. There are four parts financial eyeshot, inwrought business posture, customers perspective, cracking and growth perspective. Balance Score Card is like your cars fleet board where there is indicator on as you drive, you can aim at the dashboard to obtain real-time information such as how fuel, speed and the distance youve traveled or even any imperfect system etc. Its known to help companies and implement the changes required to execute their business goals (Pangak ar Kirkwood, 2007). The balance score card enables the companies to develop a more comprehensive view of their operations and to better learn all operating(a) and investment activities to long- and short-term strategic objectives (Punniyamoorthy Murali, 2008).The loss of USD38.7 billion is a colossal financial loss which in fact will affect the internal business process, the customer, and growth of GM. The huge loss was largely contributed from deferred tax charges and put in sales. Currently, the administration financial perspective appears to the share holder is in a decline where GM shares fell nearly 5 percent, or USD1.67, to USD34.48 (Bunkley N. 2008). Thus to manage this losses, thousands of workers are laid off from duty. This will affect their internal business process and may lead to dissatisfied customers. For example, usually General Motors takes 1 week to deliver a car to a customer. When they decided to retrench workers they will draw back their belligerent adv antage where now it takes 2 weeks to deliver a car. This will cause dis rapture to consumers because they have to cargo area an extra week to obtain their vehicle. In the end, the learning and growth perspective cant be achieved because the lack of resources will disable them to compete in the turbulent environment result to decline in sales.To ensure that General Motors can effectively achieve its balance score card in the future, they essential handle their external environment issue concisely. They have to correct thru their internal process and learning and growth to overcome their competition issue. General Motors have to come out with new design and technology to plus the product line. Research and Development expenditure have to be worn-out(a) so that they could create better vehicle then their competitors. How to create better vehicle than the competitors? This can be accomplished by purchasing the technology from their competitors or similar industry. For example Prot on had arise Lotus in the year 1996 had made them competitive at that point of time. When this happen, employees will have to be train thus it can increase the knowledge of the workers. In indisputable cases, workers will be sent oversea for such preparedness to acquire technology. treaters will be more effective and consequently increase productiveness in General Motors.Like a well oiled machine, every part in the organization performs best when all of them work towards a common goal. All of the four perspectives in the balances score card kit and caboodle hand in hand thru their substantial objectives, measures and initiatives. As mentioned above, to make sure that General Motors can make profit to cover the huge amount of losses they must increase productiveness, more expenditure on question and development etc. In General Motors case, financial perspective is the key strategy for the other three perspectives. For General Motors, the learning perspective can work together with the sales department to train and coach the sales staff or even developing new efficient production, training equipment. To improve on the customer scorecard they could do research by surveys from their existing customers on how to improve customer relationships. Customer retention is outstanding factor ignite buyers to increase sales. It ensures repeat purchase, increase positive intelligence operation of mouth and reduce cost to find new customers.Balance Score Card will ensure human capital development, improving employee satisfaction and increasing employee motivation (Kaplan Norton, 1992) in General Motors.Link of each perspective in the Balance Score Card (BCS)High Performance ply SystemHigh performance work system (HPWS) is also another(prenominal) method to explain the situation in General Motors. Autonomous work teams, open systems and performance-based pay are known collectively as superior work systems (Rouse, 2000). HPWS have also come to be known as high invol vement work systems, flexible work systems and high trueness work systems (Aghazadeh Seyedian, 2004) In other words, they are simply work reading that can be deliberately introduced in order to improved organizational performance The main focus of HPWS is organizing work so that the employees participate in decisions that affect the everyday operations of an organization. There are three potency factors that can affect high performance work system in General Motors suppression of workers, technology used and layout design.A worker is the key success to any organization. Retrenchment will cause General Motors to lose talented workers subsequently lose competitive edge. To survive in the changing environment, a company must rely on their workers creativity, ingenuity trouble solving ability and strong team work. Workers are able to make their own decision on the best way to accomplish their work. The knowledge and skill shared will create a high performance work system. For ex ample, an engineer in General Motors is developing a fuel efficient engine. Engineer A may need wait onants from Engineer B, up to now when GM decided to retrench workers, Engineer A will face difficulty in developing the engine. Performance of employee can be lift thru team works. A study by Thompson, Baughan and Motwani indicates that company such as General Electricity, Proctor Gamble, Xerox Corporation had huge increase productivity as high as 250 percent and double their profit (1998).The use of technology is another feature in High Performance Work System. All managers in every department of General Motors must be able to identify the technology they use in their organization. The application of Human Resource Information System that can store information on workers that can assist managers in deciding which employee is performing and which is not. The use of technology without human operating it is also meaningless. Managers in General Motor must identify whether the qual ified workers are able to operate the tools or not.Layout of General Motors production plants and office be required to properly design in order for them to increase workers performance and productivity. This involves careful job designing by HR managers. According to Aghazadeh and Seyedian, layout plays a role to ensure success by using space, people and equipment effectively, increasing the flow of information and materials, boost employees esprit de corps and utterly encourage flexibility (2004). Managers in General Motors may have to come out with proposals to change the existing layout to a improved, sustainable functional layout.If all of the three factors are taken into account, General Motors can acquire from their huge financial losses just and can avoid retrenchment of employees. Although to implement HPWS is costly, uncertain success and time consuming but in the long run this can benefit General Motors.Recommendation for Human Resource ActivitiesTraining and developmen t programs should be given to employee to ensure increase in productivity. Offshore training in Japan car manufacturers to learn various methods to make better cars.Mangers are required to make research and human resource cookery on the best methods to do a particular task.General Motors would have to find a partner to form a strategic alliance to recover from the huge financial loss. From this alliance, both companies are potential to learn from each other on the technology and trade secrets.Develop a module which to help retrench workers to find a new job. This will avoid them from paying more currency for their compensation of retrenchmentsOutsource to countries like China or India. Cheap labors will benefit companies to recover them from financial loss.Create a reward curriculum where employees are rewarded by their managers based on their ability to work in a groupCreate a talk to all employees at least once in 3 months to explain the companys vision, strategy and objective. This will make employees feel a sense of belonging and may be able to work extra for the company.Competitor AnalysisSheer size and market share make new entrants an unlikely to be a threatVertical integration of GM does not encourage purchases from suppliers therefore they lose out on price bargainingFord, DaimlerChrysler and Japanese manufacturers have better styling and quality an approach which GM should consider adopting to sustain its competitive edgeCost of GM motor vehicles is perceived as cosmos too highBuyers are nowadays inclined to buy sport utility and pickups which are not manufactured by General MotorsGM enjoys a healthy product line and segmentation in pricing and functionsInformation SystemsUsing information systems at each part of the organization creates great efficiencies by automating and streamlining parts of the business. We recommend the following information systems at each department within General MotorsHuman Resource Information SystemsThese are systems that maintain employee records, track employee skills, job performance and support planning for employee compensation and career development. aimRECOMMENDED I.S. conception operativeEmployee RecordsTrack employee training, skills and performance appraisalKnowledgeCareer PathDesigns career paths for employeesManagement salary AnalysisMonitors the range and distribution of employees wages, salaries benefits strategicalHuman Resources PlanningPlans the long-run labour force needs of the organization2. Finance and Accounting SystemsThese are systems that keep track of the firms financial assets and fund flows.LEVELRECOMMENDED I.S.PURPOSEOperationalAccounts ReceivableTrack outstanding debtsKnowledgePortfolio AnalysesDesigns portfolios investmentsManagementBudgetingPrepares short-term budgetsstrategicProfit PlanningPlans long-term profits3. Sales and Marketing SystemsThese are systems that help the firm identify customers for its product or services. They also assist to develop product or services that meet customer needs, come along and sell them as well as providing ongoing customer support.LEVELRECOMMENDED I.S.PURPOSEOperationalOrder processingEnters, processes and tracks ordersKnowledgeMarket AnalysesIdentifies customers and markets using data on demographics, markets, consumer behaviour and trendsManagementPricing AnalysesDetermines prices for products and servicesStrategicSales and ForecastingPrepares 3-5 year sales forecast4. Manufacturing and Production SystemsThese are systems that deal with planning, development, production of products and services and controlling the flow of production.LEVELRECOMMENDED I.S.PURPOSEOperationalMachine ControlControls the actions of machines and equipmentKnowledgeComputer-Aided DesignDesigns new products using the computerManagementProduction PlanningDecides when and how many products should be producedStrategicFacilities LocationPrepares and decides where to locate new production facilitiesIn addition to the information systems mentioned here above, we also recommend the following office automation systems email System Improve GMs internal and external communication, creating an effective and efficient serviceWord Processing System Office system technology that facilitates the founding of documents through computerized text editing, formatting, storing and printingDocument Imaging System System that converts documents and images into digital form so that they can be stored and accessed easily by the computerTimesheet System Enables employees to fill in the timesheet forms online so that management can approve and track the timesheet online.ConclusionWhilst it would be make a pass out of business sense for a company like Ford to fuddled down more plants and accept a smaller portion of the U.S. market this strategy would not work in favour of GM because then the company would produce and sell fewer vehicles, meaning less income for those macro pension and health-care costs. GM has to maintain it s cash flow to cover these costs until a future date when it is hoped that the elderly retirees diminish in number whilst also making improvements in quality, efficiency, design and brand appeal.Although GM has cut the time to assemble a vehicle from an average of 32 hours in 1998 to 24 hours in 2003, Japanese competitors are still faster in getting new models into the market. Hondas new vehicle development cycle is only 14 months and the company is working towards compressing development time down to 12 months. GM should look at this as a contest to embrace and strategise with a view to improve its development cycle to match its competitors if not exceed them.Whilst these recommendations provided are meant to help GM sustain its market share, they cannot be fully appreciated until they have been put to test and the results obtained critically analysed to create room for adjustments where necessary and where applicable.