Choose one organization from your research that has recently responded to major change, or is currently responding to change. Write a paper (1,250-1,500 words) discussing how well the organization
Choose one organization from your research that has recently responded to major change, or is currently responding to change. Write a paper (1,250-1,500 words) discussing how well the organization is responding to the change dynamics. Include the following:
1. Describe the organization and the change to which it is responding.
2. Discuss the degree to which the change has been disruptive and how the organization has responded to the dynamics created by this change.
3. Evaluate the strategies the organization used in its change plan and determine the level of success the organization experienced with the strategies.
4. Determine the effect the change had on stakeholders, and to what degree stakeholders have resisted. Assess how well stakeholder resistance was addressed.
5. Evaluate the overall implications the change had on interdepartmental collaboration.
6. In your opinion, how well did the leaders of the organization respond and prepare for the change? What worked and what did not work with the strategies they implemented?
7. What modifications would you suggest the leaders of the organization make in order to better address the change dynamics? What additional strategies would you recommend to assist the organization through this change?
Expert Answer and Explanation
GM’s Response to Change
Organizations focus on performing, and even when change occurs, these organizations have to adapt to these changes so that that they can manage to realize performance objectives. Change may occur in response to various triggers including the advancement of the technology, increased government control on business activities, and environmental issues. The internet has brought with it several opportunities, and currently, people can remotely sale their products, and while some businesses feel the benefits of these technologies, others seem to see them as threats to their operations (Yeoh, 2017).
The Motor vehicle industry is feeling the effect of technological disruptions, and this explains the reason why some of the major players in the industry are shifting to the digitization of the motor vehicles. General Motors (GM) is among the firms feeling this disruption, and it is imperative to examine degree and implications of this change, and further explore the change response measures the organization’s leadership took.
The Organization’s Description
GM ranks as one of the major players in the motor vehicle manufacturing sector, and is among the best performing firms in the United States (U.S.). The firm began operating in 1908 in Miami, does not only make automobiles, but it designs and sales vehicles and vehicles’ spare parts. Besides, the organization runs a program dubbed GM Financial Company, Inc. in which it offers financial services, and this is one of the different ways in which the firm diversifies its operations.
Currently, the company produces green energy, and this is part of the GM’s goal to fully rely on the clean energy for its electricity. However, the fourth industrial revolution is putting pressure on the company to produce digitized cars as part of the shift towards driverless and interconnected cars (CNN Business, 2020). Recently, the company committed to investing $3 billion in the production of the driverless electric-powered trucks, and this is part of the strategy the company responds to the changing technological space.
The Degree of Disruption of the Change
The fourth industrial revolution is increasing the digitization of the production processes and the service delivery systems, and currently, the world is shifting towards the interconnection of the devices. The cloud computing technology is contributing to this revolution given that it provides the platform for remote connectivity of the devices so that these devices and computer systems communicate over a single platform.
The use of the artificial intelligence to drive industrial operations is becoming the new norm, and the emphasis on the shift towards smart cities is growing. Driving and communicating in these cities will require the change in the type of transport systems (Alessandra, Scarpato, & Brilli, 2018). GM will need to scale up the production of the autonomous vehicles so that it would compete effectively within the changing global care market.
This means that the degree of disruption of the GM activities by the emerging digital technologies is considerably high, and the firm will need to adapt to this change for it to retain its position as a global player in the motor vehicle manufacturing business.
GM is making efforts to adapt to the disruption stemming from the advanced digitization space. The firm is working on the production of the autonomous vehicles as part of the measures of moving towards the production of the self-driven cars. Already, the GM has a prototypes of trucks which it recently tested, and are working well.
The Chevy’s Electric Pickup is one of these prototypes, and the firm expects to unveil it by the team it within a span of five years. The GM’s response to the contemporary industrial revolution is also noticeable in the design of the vehicles which one can remotely lock and unlock, and which come with advanced and biometric-enabled security capabilities.
The Change Plan Strategies
The GM, while responding to the change, used a strategic plan. Based on this plan, the organization recruited experts in Information and Technology (IT) systems to come up with the design, and participate in developing the prototypes of the new autonomous vehicles which embed systems that support cloud computing. GM also allocated resources for this purpose, and it set aside $3 billion investment to help with the production of the autonomous trucks.
The GM has a culture of involving employees in making decisions on matters pertaining to the design and development of the new products. Consequently, the firm used these employees to share their views on the models of the vehicles which the firm would need to recreate (Lari, Douma, & Onyiah, 2015). As it is the tradition with the GM, the firm run tests after developing the first autonomous truck, and based on the preliminary results, the new vehicle passed the security test, and it can cover miles without the need for a driver.
The Implications of the Change to Stakeholders
The GM’s plan to migrate towards driverless vehicles continues to attract mixed reactions among the company’s stakeholders. The GM’s employees hope to see the company maintain a positive trajectory in the improvement of the GM’s production capacity, and they are willing to keep their jobs. As part of the stakeholders with interest in seeing the company flourish, the GM’s employees support the company’s move to the manufacture of the self-drive cars.
Besides employees, the U.S.’S government supports the GM’s efforts to develop driverless vehicles considering that the government is a major investor in research in automation. Also, the government supports this project because GM is a major employer, and the company generates revenue for the U.S. This explains the reason why it continues to receive overwhelming support from the government.
However, there is the question of the security of these autonomous vehicles (Nordhoff et al., 2018). Still, the security of truck driver jobs is a concern. While the GM is using advanced security features to manage the concerns around the safety of the trucks, the company has provided no assurance that these new autonomous vehicles will cause job loss.
Implications of the Change on Interdepartmental Collaboration
Change of any form requires the collaboration of the teams across various departments. During the implementation of a project in which it sought to develop a driverless care, the GM used resources and finances to meet this objective. For this reason, the risk manager and the finance manager collaborated in identifying the risks and financial costs of linked to developing the prototype.
The IT department also contributed to the development of the vehicle, and the same applies to the welders, designers and the mechanics. By coming to together, these departmental units managed to work in collaboration to develop the self-guided truck (Vannithamby, 2019).
How Well the Leaders Responded to the Change and Prepared for the Same
The GM operates in hierarchy, and in most instances, the information flows vertically, and even with this form of organizational setup, the leadership responded appropriately to the change. The GM, under Mary T. Barra, has made efforts to position the company as a global leader in making of automobiles.
When the firm led by the leadership announced that it would began producing autonomous vehicles by 2025, it already had a laid down plan on how it would realize this objective. This is partly the reason why the company successfully managed to create a truck that can drive itself. However, the leadership did not involve the public to discuss the prospects of people, especially truck drivers losing jobs (Nagesh & Ramsey, 2016).
The Modifications the Leaders have to make
The GM’s leadership would need to make certain modifications so that it would respond effectively to the change dynamics. There is need for the company to fully involve stakeholders so that the leadership would have a pool of views on what it ought to do to resolve the issues around the job loss. One of the options available to the GM’s leadership is investing in training and hiring of those who lose their jobs because of the driverless vehicles. This can help solve the issues related to the job losses because of the new changes in the GM’s production approach.
In conclusion, the GM is responding to the disruptions emanating from the fourth industrial revolution, and this response is noticeable in the firm’s efforts to come up with a truck that is not only autonomous but which runs on green energy as well. The technological space is changing faster, and this is disrupting the GM’s operations. The GM, however, has undertaken the initiative to build and produce driverless vehicles that integrate artificial intelligence.
Alessandra, P., Scarpato, N., & Brilli, M. (2018). Industry 4.0 Revolution in Autonomous and Connected Vehicle. A Non-Conventional Approach to Manage Big Data. Journal of Theoretical and Applied Information Technology, 96. Retrieved from https://www.researchgate.net/publication/321243942_Industry_40_Revolution_in_Autonomous_and_Connected_Vehicle_A_non-conventional_approach_to_manage_Big_Data.
CNN Business. (2020). General Motors Co. Retrieved from https://money.cnn.com/quote/profile/profile.html?symb=GM.
Lari, A., Douma, F., & Onyiah, I. (2015). Self-Driving Vehicles and Policy Implications: Current Status of Autonomous Vehicle Development and Minnesota Policy Implications. Minnesota Journal of Law, Science & Technology, 16 (2), 734-769. Retrieved from https://scholarship.law.umn.edu/cgi/viewcontent.cgi?article=1015&context=mjlst.
Nagesh, G., & Ramsey, M. (2016). GM Gives its Self-Driving Effort a Push. The Wall Street Journal. Retrieved from https://www.wsj.com/articles/gm-to-acquire-autonomous-vehicle-technology-developer-1457704950.
Nordhoff, S., Winter, J., Kyriakidis, M., Arem, B.V., Happee, R. (2018). Acceptance of Driverless Vehicles: Results from a Large Cross-National Questionnaire. Journal of Advanced Transportation, 22. Doi: https://doi.org/10.1155/2018/5382192.
Schafer, M. (2018). The Fourth Industrial Revolution: How the EU can lead it. European View, 17 (1), 5-12. Doi: https://doi.org/10.1177/1781685818762890.
Vannithamby, . (2019). 5g Verticals: Customizing Applications, Technologies and Deployment Techniques. Place of Publication Not Identified: John Wiley.
Yeoh, P. (2017). The Fourth Industrial Revolution: Technological Impact and Privacy and Data Security Issues. Business Law Review, 38 (1), 9-13. Retrieved from https://kluwerlawonline.com/journalarticle/Business%20Law%20Review/38.1/18540.
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