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International School of Management Studies

Pune – Maharashtra - India

Strategic Change Management

LEARNING OUTCOME 3 & 4

Mr. Saumodeb Das

(MBA INTERNATIONAL)

Statement of Authenticity

I certify that the work submitted in regard to this assignment is my own and wherever the works of others have been
used to support my work, the credit has been duly acknowledged.

Student Email: saumodeb.isms@gmail.com Date: 08/04/2021


Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

TABLE OF CONTENTS

Serial No Particulars Page no

1 Executive Summary 03

2 Task 1 04-07

3 Task 2 08-11

4 Conclusion 11

5 Bibliography 12

Page 2 of 19
Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

Executive summary

This is a case-study based assignment and this is a case study about GENERAL MOTORS Company. This assignment helps
us to understand about the company and their stakeholders and their change system. The collapse of the General Motors
empire, resistance to new transition, a leadership change, and the new and improved General Motors will all be discussed
in this article. Its bankruptcy and government bailout in mid-2009 will be briefly mentioned in this article. The present
state of GM and the possibility of its acquisition by the US government will be discussed. It also examines the assessment
of processes for stakeholders to be involved in change planning. It also explains the creation of strategy to manage
resistance to change. The required steps to track the changes and establish suitable models of change are also addressed

Page 3 of 19
Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

Task 1

Develop systems to involve stakeholders in planning change in organization and method to evaluate the system
(AC: 3.1; 3.3)

Stakeholder: A stakeholder is someone interested in and who may have an impact on or be affected by a business. The
principal stakeholders of a business are investors, staff, customers and suppliers. However, the concept has extended to
include societies, governments and business organizations as corporate social responsibility is gaining traction.

Brief about General Motors: General Motors was born in 1908 and located in Flint, Michigan. It now has its headquarters
in Detroit. The company is currently headed by CEO Mary T. Barra. General Motors is a popular car manufacturer. GM
owns several automotive brands, Chevrolet, Buick, GMC, Cadillac and others. They were faced with several problems
during their trip, and after bankruptcy we could see corporate restructuring in General Motors. They quickly embraced
the move. In this case I will discuss the developments in General Motors and how they embraced the transition, as well as
their stakeholders.

Systems to involve stakeholders in planning change in an organization:

Many processes are designed to ensure that the changes are taken into account by all stakeholders. Among the most
common but easiest processes is to address the stakeholders in depth and not to approach them with implicit
assumptions about the organization. The goal should be to communicate it in ways that should have a beneficial effect on
the parties concerned, so that it seems to be an interesting proposition for the parties involved. The change facilitator
must communicate it. This is necessary that to develop systems to involve stakeholders in planning change in
organization. Many states have developed action strategies and enlisted the involvement of stakeholders in the change-
planning process. And where stakeholders have been interested, those proposals have been active in gaining their
support.
It has been shown that the best interests of the organization, including stakeholders, are often identified. They
accommodate the words by ensuring that everybody knows the latest change and improves it to modify the change
process properly. The strategy and innovative methods are implemented correctly, leading to an effective and efficient
working atmosphere.

Picture Source- https://www.reiq.com/articles/securing-your-stakeholders/


Page 4 of 19
Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

The process to involve stakeholders in the change management:

Formulate an interaction strategy: to ensure that the information is transmitted across a range of platforms and methods
in order to achieve the highest stakeholder community. This is much more realistic, if a robust interaction plan is
introduced early, that the management team can frequently communicate to stakeholders.
Improve a shared platform to implemented the change: These can be done by talking according to the early
establishment of the change program. To show that the initiative is respected, providing information about who, where,
where, how and why the improvement program has been implemented. Focus on the benefits of the transition initiative,
not only from the organization's viewpoint but also from any stakeholder's point of view.
During the implementation stage of the change program, regularly interviewees: Interact directly with interested
parties and carry out research on their outlook. Concentrate on expressing problems that can address or rather ensure
that the changing program can help them in efficiently doing their work.
Working Group of Employee Stakeholders for strengthening: this is an appropriate way for the involvement of a wide
number of stakeholders in helping to develop a vision for the company in its entirety always. It will also help to create a
link with the rest of the organization, exchange input on the project and provide feedback from stakeholders which will
help the project team to finalize the change plan positively.
Find out proponents and opponents of the Reform Program: This is practicable when stakeholders and the facilitator
actively participate across a variety of channels such as focus groups, polls, community meetings and one-on-one
sessions. Explore more deeply if opponents go into the picture. Opponents also have valuable awareness of the initiative
to help change managers achieve the effectiveness of the change program.

Methods to evaluate the system implemented:

Systems that include stakeholders in the preparation of transition produce meaningful results. In order to find a realistic
solution to the problem at hand, the stakeholders set goals and then follow them in order of choice. To put it another
way, they synthesis the problem area into a set of straightforward objectives. For example, it leads to more practical and
efficient strategies and plans, as well as better execution. The constructive engagement inside a system that is entirely
accurate will overcome surprises, obstacles and problems. In comparison, the first contact happens in a reactive situation
to address a problem or crisis. In the context of the risks and impacts that the program and its various projects are likely
to produce, the stakeholder involvement strategies for program should be scaled. There is no one-size-fits-all solution
when it comes to interaction. Participation of the stakeholders must be monitored and directed by a clearly specified
plan, like any other program operation. Clear goals and timetable, budget and people responsible must be established.

Participatory projects of stakeholders that operate are characterized by the following:

Structured and clear information Revealing - real reality, early documentation, knowledge of timing risks, ready-to-read
details, respect for privacy and interaction-friendly information.

Early and ongoing consultations of stakeholders are based on a well-developed and debated program, a defined goal for
consultation, any consultation requirements, stakeholders concerned, concerns prioritized and methods and techniques
carefully selected for involvement.

Clearly identified individuals who are accountable at both the program and project levels.

Page 5 of 19
Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

Develop a change management strategy that will help General Motors to gain commitment from their
stakeholders (AC: 3.2)

Change management strategy: The strategy for changing the management is described as how a company usually
addresses change. It is a process aimed at minimizing all the negative effects caused by shifting events while capitalizing
on the transition.

Steps for a successful change management strategy:

Set up an engagement plan: The interaction strategy ensures that General Motors and its stakeholders are aware and
recognize why the business has changed. It also ensures that stakeholders are aligned with the anticipated return and
advantages of the change program and its start-up, growth, challenges, achievements, successes and perceived
benefits.

Implement a partnership strategy: General Motors outlines in the sponsorship plan how to make the transition
happen to the supporter and to help him do so. This is vital to growth because, without a strategy, the change is based
on the desire or urge of the supporter to embrace it. With a plan in order to ensure that the supporter communicates
effectively and encourages progress, adequate protocol should be followed.

Develop a plan for stakeholder engagement: A stakeholder engagement strategy would recognize General Motors,
including people or groups affected by the change and others who will positively impact the overall success of the
change. For user acceptance, stakeholder participation is also important. Stakeholders participating in the process of
changing are the people who are ready to do so. This strength provides a basis for acceptance of users and advantages
that General Motors require.

Implement a learning and development plan: the learning and development strategy recognizes the experience,
competencies and competencies involved in implementing the transition effectively. These factors determine what
kind of learning and growth program General Motors wants to undertake. Any steps of change may require
comprehensive learning and development to successfully enforce the change for stakeholders, while others may
involve minimal learning and development.

Create a measurement strategy and value recognition: Priorities based on the objectives and potential advantages of
the transition are part of this approach. It must be concrete and precise. This part of the measurement strategy
ensures that everybody knows what is and what is not successful at General Motors. It also evaluates the viability of
implementing the change management strategy. If something does not work, this allows the correction of policies and
improves the procedure for better results. The process may include stakeholder surveys, focus groups and other input
mechanisms to ensure that the change management plan fulfils its targets.

Building a sustainable plan: The strategy for sustainability is key to minimizing the drop-offs in nearby users. GM is in
danger of returning customers to their old habits or risking the benefits of change if there is not a plan to keep the
change going. This is particularly dangerous if funding and services are reduced. When funding is cut, program such as
constructive communication and training are normal to be cut, but they are essential to make a final improvement.
When funds are reduced, keep up to date and see if they change.

Page 6 of 19
Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

Create a strategy for managing resistance to change in General Motors (AC: 3.4)

Resistance is a phenomenon that affects the change process by delaying or slowing its start, obstructing or hindering its
execution, and driving up costs. Resistance to change is described as a "tri-dimensional attitude toward change, which
includes effective and behavioural components," and it must be overcome or removed. In the literature on change
management, resistance to change is a common theme. Resistance to change causes it to be delayed; it is seen as
"collateral damage" to change efforts. Intentional delays in work, resigning, going on strike, sabotaging an organization's
property, and wreaking havoc are all examples of resistance. Fear of the unknown, confusion of the need for change and
its ramifications, and a low tolerance for change are all reasons why workers resist change. People, according to Dent and
Goldberg, resist change because they fear losing their rank, pay, or comfort.

Strategy for managing resistance to change at General Motors:

Take the first opportunity to successfully handle change: Implementing changes is much more than a way to tackle the
oppositions as they occur. It serves as a motivational resource and involves workers in a transformation. General Motors
should use a structured management plan for transition from the start of the project. They should mobilise the support of
senior managers as active and identifiable transition supporters and even middle managers and heads of management as
agents of change. Management should communicate the need for change as well as the impact on staff and the
incentives for employees.

Design of the change: Change must be built to accommodate flexibility and to graduate as far as possible. This
encourages people to complete current tasks and learn new conduct. Allow employees to redefine their roles when
changes are introduced. When they are needed, they need to share details and be honest. They should concentrate on
the delivery of education for learners who are focused on basic qualifications rather than on processes such as
conferences, interactions, team training, personality and coaching.

Anticipate resistance to change: Anticipate change resistance: Prior to the start of the change programme, major factors
of resistance should be prioritised in order to plan for resistance. Employees who are extremely invested in the current
way of working, those responsible for the existing way of working to be replaced, and employees who perceive undue
pressure as a result of the transition are all potential sources of resistance at General Motors. People with a lot of
experience and who are well-liked at their current jobs can also be resistant to change.

Identify the root cause of resistance: In General Motors there are several indicators that employees are resisting reform.
They can whine more than normal, skip important meetings, or flatly refuse to take part in new initiatives. It's critical to
identify when employee resistance is becoming a problem for organisational behaviour, but it's much more critical to
consider why they're resisting in the first place. The following are the most common causes of resistance:

a lack about understanding of why improvements are being made

Fear about how work responsibilities will change as a result of change

Attempts at reform that have failed in the past

Managerial dedication and support are not evident.

Fear of losing one's career.

General Motors will better determine how to solve change resistance by determining why workers are resisting it in the
first place. Greater communication and discussion groups can help promote more positive organisational action if a lack
of knowledge or fear is the issue.

Page 7 of 19
Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

TASK 2

Develop appropriate Model of Change for General Motors (AC: 4.1)


In General Motors, Kotter's 8-step change model – 

Kotter proposes an organizational development model in which stakeholders are empowered to take charge of their own
change. This model will be used to show how General Motors will implement change with the help of its stakeholders.

Step 1: Create Urgency –


For change to occur, the whole company must recognize the need for change and commit to making it happen. Managers
will use this information to paint a bleak picture of the future if current trends persist. Explain to the shareholders how
the company's ability to leverage its capital has improved. Stakeholder feedback should be solicited, and their suggestions
should be considered as part of the change process.
For General Motors, painting a grim picture is not very easy, as liquidation is a next step in bankruptcy. The decrease in
the company's output has long been a problem. GM citizens are also ready for change and management is supported by
stakeholders. Discussions are now needed to integrate stakeholders' thoughts and wills in the process of transformation.

Step 2: Coalitions –
This is where leadership emerges; stakeholders should take responsibility for the communities. The main leadership
needs to be identified and committed to change in the organization. This is important if the leadership is to believe in the
transition.
They have to find representatives for General Motors to bring about transition. The people who support GM to develop
and embrace the processes that are changed need to be recognized if they want some kind of strategy change.

Step 3: Vision for Change –


There are several ideas that float as the process of transformation begins. If you want to shape a vision, all these ideals
must be linked. This vision must be straightforward and understandable. The vision gives people guidance and the
meaning of change is understood. To be successful, the key concept behind the change has to be known. Prepare a
rundown of the company's potential efforts for this reason. The citizens help to fund the company knowing about the
future.
The mission statement is very explicit in the case of General Motors. G.M. is a global company engaged globally in socially
responsible business. It is committed to offering premium goods and services to our customers, while sharing our
successes with our employees and business partners, and our holders enjoy a sustainable superior return on investment.
But General Motors could not deliver, sadly. General Motors' vision must be successfully articulated within the company.
The mission statement of General Motors must be accepted by any stakeholder.

Step 4: Communicate the vision –


The goal of transformation must be known to everyone in the company. The company's previous model would resist the
new approach. The New Mission declaration should resolve the opposition and unite the company in one way. This
requires management to discuss all people's questions and problems. Divide the vision into smaller targets and link
individual output to achieve these targets.
In General Motors, management should communicate the change process within the business. It is easier to
communicate back a process of transition that comes from the stakeholder feedback.
Step 5: Remove obstacles-
There will always be opposition during the phase of transition. The Management aims to minimize this resistance and to
allow stakeholders to express their views on a shared forum. As the transition process progresses, continuous controls
should be made on any obstacles to change.
The internal management in General Motors has not been able to improve the company. GM change can be brought on
from outside; a change agent could help GM overcome barriers to change. A good way to improve is to give people who
accept the change.
Step 6: Create short term objectives-
People need to realize that it works in order to adapt to work. The key goal can be divided into clearer targets for this
management. The management should evaluate the short-term goals thoroughly, making them realistic and motivating.
The workers should be praised for achieving all goals.

Page 8 of 19
Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

In General Motors, management must improve its long-term goals and break them into short-term goals. The
management should convince stakeholders that they can better change the company. The government is the main player
in GM. In order to bail out the firm, the government must know that GM can stand on its feet.
Step 7: Build on the change –
When and until the philosophy of transformation has instilled itself in the organization, the change is not completed.
Changes are failing in many organizations because the modified procedures are not completely implemented. The
procedures that have changed should be part of the organization's existence. The organization's people need to draw on
improved processes and succeed more.
General Motors' management should not avoid making it believe the government deserves a renovation, but should try
to improve on changing processes.
Step-8: Change in corporate culture-
The hardest thing to do to change the organization is to change the organization's culture. Many of the fusions of
businesses have failed in history because the culture of firms cannot combine. It is a very long and difficult process to
change the culture of the business.
General engines must change the atmosphere of an unattractive industry and incorporate a new method for succeeding
in it. At this stage General Motor's staff are not motivated; the management must return their confidence in the staff.

Page 9 of 19
Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

Plan to implement the Model for Change in General Motors (AC: 4.2)
Kotter's 8-step change model was used for the introduction of change at General Motors. For the implementation of the
change model, the following plan is used. The following approach must be pursued in order to incorporate a model for
change: -
Be prepared for change: It is mandatory to receive the support of key policy makers and advocates of change within the
organization. They should be given enough information to make the necessary changes and evaluate the data necessary
to persuade GM to make changes and the long-term consequences of this shift. Employees must be properly trained and
empowered to introduce the new change in the organization. Furthermore, try to find new ways to make the transition
easier. This creates a philosophy of continuous improvement.
Discuss the change with employees: A proposed strategy for change should be formulated with a clear time frame in
order to ensure that the Change Plan is enforced. The Change Plan must be agreed and approved by all relevant
management. This is the most important stage in the process of transformation. The essential prerequisite of clearly
identifying what will change, how it is changed and when it will change will be greatly beneficial for employees and other
stakeholders. You should set the framework and talk with others about the business reasons for the transition. In this
case, interaction would be key.
Recognize the deterioration: Those factors are expected to remain when a new reform is introduced. This instigates fear
and resistance in everybody's minds. It is a crucial move towards long-term involvement to support individuals through
recognition of the lack of existing working methods. Promoting importance leads to a better working climate.
Carry out this action: Identify key influencers who are committed to change and make them the precursors of change.
This could help to set the stage for the new transition. The transition mechanism needs to be assessed and organized.
Change obstacles should be removed. Change obstacles.
Develop a plan: Develop a strategy for how the change is implemented, what happens if it fails and how progress is
assessed. Exactly what, who, and when the change is going to take place. Performance management is essential to ensure
a smooth change process.
Presentation and follow-up: Once the change is introduced, changes and improvements are made. Employee
engagement to make the transition happen should be made. This helps GM staff to remove barriers and sustain change in
the new culture of the business. The new change process must be documented by the employee's feedback.

Page 10 of 19
Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

Develop appropriate measures to monitor the progress of the implementation of the Model of Change in General
Motors (AC: 4.3)
It was recognized that management can effectively and objectively quantify strategic and functional improvements and
make these objectives clear to workers in the implementation of necessary changes.
In response, General Motors may use a series of quality parameters to monitor the scope of changes to plans. To
illustrate these acts, the following statements may be used.
Monitoring measures for implementing the transition model:
Arrange standard changes for the introduction of the change program: Monitoring the introduction of the reform should
be performed in order to regularly inform General Motors' top management. If there is any issue, immediate measures
can be taken.

Design of a control point system to record the progress of each stage of the proposal for change: There should be a
control point system where the changing program record can be saved at each level. It allows General Motors to assess
the actual results with the expected results and further steps should therefore be taken with extreme care.

In the course of the corporate strategy, implement routine changes to various organizational activities: Constant
changes that should be introduced under corporate strategy should be undertaken based on the results obtained from
the routine monitoring of the change process in the organization. This improves employee efficiency as well as the entire
business. The method of evaluating the measurements and outcomes of local performance should be transparent and
public available. The results of each participating program, as employers, staff and job seekers all need to know which
program is successful, should also be available for review. In addition, the extent to which public funding is used to
support the town should be told to taxpayers.

Establishing a culture of change in a business: it is necessary to fully remove the idea of resistance to change from the
company and introduce an environment of change. It allows continuity in work and helps the business to achieve the
highest heights in the future by upgrading it in tandem with its external world.

CONCLUSION
The process of transition is very lengthy, it takes years for change process to become part of the society. The
management of the company needs to be very careful and need to priorities their goals.
People must consider change at General Motors, and once the new systems are in place, they must be evaluated and
reevaluated on a regular basis. The US market has become very saturated, limiting companies' ability to expand as quickly
as they would like. Companies must use their capital as efficiently as possible in order to survive.

Page 11 of 19
Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

(ukessays, 2018) (Information Technology, 2015) (Sundus Tanweer Khan, 2017) (prosci, 2015) (mindtools, 2017) (Afande, 2015)
(University, 2017)

Bibliography
Afande, D. F. O., 2015. core.ac.uk. [Online]
Available at: https://core.ac.uk/download/pdf/234695222.pdf
[Accessed 7 April 2021].
Information Technology, 2015. ukessays. [Online]
Available at: https://www.ukessays.com/essays/information-technology/developing-systems-to-involve-stakeholder-planning-
business-essay.php
[Accessed 7 April 2021].
mindtools, 2017. mindtools. [Online]
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[Accessed 7 April 2021].
prosci, 2015. prosci. [Online]
Available at: https://www.prosci.com/resources/articles/tips-for-managing-resistance-to-change
[Accessed 7 April 2021].
Sundus Tanweer Khan, S. S. R. G., 2017. indusedu. [Online]
Available at: http://indusedu.org/pdfs/IJRMEC/IJRMEC_1039_80310.pdf
[Accessed 7 April 2021].
ukessays, 2018. ukessays. [Online]
Available at: https://www.ukessays.com/essays/information-technology/developing-systems-to-involve-stakeholder-planning-
business-essay.php
[Accessed 7 April 2021].
University, D., 2017. futurelearn. [Online]
Available at: https://www.futurelearn.com/info/courses/leading-and-managing-change/0/steps/32213
[Accessed 7 April 2021].
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Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

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International School of Management Studies, Pune – Maharashtra - India

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Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

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International School of Management Studies, Pune – Maharashtra - India

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International School of Management Studies, Pune – Maharashtra - India

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Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

Conclusion

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Extended Diploma in Strategic Management & Leadership
International School of Management Studies, Pune – Maharashtra - India

Bibliography

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