The Management of Change of General Motors (GM) and Dell Essay

The Management of Change of General Motors (GM) and Dell - Essay Example This essay discusses that the organizational change is a constant procedure of remaking the ideas and approach of the organization by shifting the tactical routes and operations of the organization. This change assists the organization to enhance its potential with the greater monetary returns and its plan to meet the changing conditions and requirement of the clients. The main element that the organizations should look into before making any changes is to decide the future goals and objectives of the business and to see that how the resources should be implemented in order to make the change successful without the resistance of the employees at all the levels of the organization structure. The adjustment for the changing goals and the customer demand has become a big challenge for the organizations to meet the global competition. This job has become more difficult and complicated for the organization because they are not sure that their employees can handle and cope up with the chan ge or not. In the sector of profitability, the growth of global market and shift in political situations has made a way for the new markets of products and services that is never seen before in the corporate sector. In response to this changing pace, the organizations are adopting simple and reactive structure in which the culture is such that it empowers the employees and teamwork is the main driving force. Because of this changing environment, the employees expect that they will be involved in the decision regarding the organizational change. ... t position and share of the company falls due to change in demand of the customers and increase of competition from the car manufacturers of Japan (GM, 2012). Reason for Change: Previously, the company made many efforts to overcome the decline of sales, bad brand image, declining market share and some other reasons but most of those changes effort were failed due to communication gap between the top management and the employee’s and also because of the poor management. In 2009, the company was in extreme financial crises and the US Government would impose bankruptcy if the company will not be able to pay its debt. The new CEO fritz Henderson focus was to restructure the company within 2 months in order to save the company from bankruptcy. The company granted the financial and time aid from the US Government in order to exist as a company and payoff all the debts. The global recession made the company in financial crises and the management failed to overcome that pressure (Ande rsen, 2011). The basic reason for change is to improve the competitiveness of the company by cutting down the number of employees working and to decrease the other brands that General Motors owned. In addition, the company wants to change its overall structure by making it less bureaucratic and cut off the layers of management that is unnecessary for the company. This way the company assumes to save money and to the decision-making speed will also increase. The second point that the company decided was to change the culture of the company that would help to improve the market focus. This meant that the company would build the cars that are according to the requirement of the customers. This will help the company to see a definite path and help to come out of the financial crises that it was