Essay: Organizational Change in the Automobile Industry

Essay: Organizational Change in the Automobile Industry

Sample Essay

The management of these large and complex organizations is definitely a tough process and different expertise is required to manage the stakeholders of the organization. That is the reason why organizations that are in this industry emphasize a lot on effective managerial and change management principles. These change management principles like other industries are applicable in this industry too and they are usually applied when havoc occurs. The change in the automobile has actually started since the early 1980’s and at that time this change was actually regarded as the survival strategy (Shimokawa 1994). However, there are certain problems associated with the US automobile market and this actually resulted in stock price declines, profit estimation slashing and laying off of employees. This havoc requires a change in the top management and a need was aroused to revamp the entire automobile industry.

The change management actually occurred in all the major companies like Ford, DaimlerChrysler and General Motors. However, the strategists still believe that hefty amount of change is required in the entire automobile industry. The aftermaths of economic downturn are wide and varied with Ford Motor Company actually laying of more than 14,500 employees and analysts believe that this figure might actually rose to 100,000 in total (Shimokawa 1994). Therefore, all the companies in the period of economic downsizing are actually lying off their employees just because of the fact that they are unable to meet the expenses. Change management strategies must be implemented in every organization especially in the automobile industry because these strategies are essential in both the short and the long run.

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