With regard to the change management approach generally implemented in the case of General Motors, it was observed that the generally implemented change management strategies by General Motors are ones that are based on the development and implementation of leadership. General Motors generally chooses to engage senior management that can assist in the redevelopment of an organization and can play a role in the establishment of the manner in which the organization can increase its productivity levels.
The financial crises affected General Motors in a manner such that the value of General Motors shares fell by almost a quarter and General Motors was forced to shut down construction and development on new models. Initially, over 1500 job cuts were made and the layoffs spanned a total of three factories. The plant in Michigan was shut down completely. Celebrity endorsements were cancelled and more layoffs followed in the thousands. By December 2008, General Motors had suspended construction on multiple factories that were being setup and awaited a bailout. The decline in General Motors shares was even worse than the decline experienced in shares by Ford. In response to the financial crisis, General Motors began by announcing the suspension of benefits of employees on strike and taking measures to cut down marketing costs. Advertisements were cancelled and General Motors had to put a halt to employee stock purchases in light of the extremely low level of the common stock.
As sales began to fall General Motors began to generate reports to evaluate its position in light of a possible bankruptcy filing in the future. In response to the financial crisis General Motors appears to have chosen to adopt a change management strategy in response to this financial crisis that aims to restructure General Motors’s entire method of operation. With support from bailout plans, General Motors is hoping that it will be able to redevelop itself to an extent where it can bring itself to its feet once more. However, the primary change management strategy appears to be an amalgamation of external aid and extensive reductions in expenditure. While General Motors’s responses to the recession are ones that were considered by many to be rash and highly unexpected, it is clear from the damage caused to damage as a result of the recession that it had no other option but to engage in these measures.
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