Diagnosing Change of Ford and Gm

Topics: General Motors, Automotive industry, Ford Motor Company Pages: 5 (1341 words) Published: June 2, 2013
Diagnosing Change of Ford and GM
HRM587: Managing Organizational Change
For: Prof. Michelle K. Preiksaitis
By: Stephen J. Krivda
Keller Graduate School of Management
of DeVry University Online

Diagnosing Change of Ford and GM
Diagnostic Model
The diagnostic model I have chosen is the Congruence Model for both companies. The congruence model as defined by Anderson (n.d.) is a type of change management process which will examine the performance of a given company/organization as it operates as a system. This means that the company/organization will be broken down into separate elements and congruence will examine each of the elements to improve both the organization and its parts as cited by Anderson (n.d.). This model examines the following elements: information processing, mission statement, production, and outside influences. Information processing is how a company processes information from both external and internal sources and or input. This is also how the company receives its information, determines how the company chooses what information is important and what is not important to the change, and how the company will react to the given information and how it will communicate change. Mission statement is how the vision which drives the decision-making and how this statement interacts with the other organizations. The congruence model will look at the mission statement as see how it projects the vision to those outside of the company. In production this model examines products and services; it evaluates the quality of the product and from this point works backward through the manufacturing and quality control processes to find ways to improve on the final product/service. Outside influences this model will look at how the company will use outside influences in identifying opportunities and develops a company policy. As cited by Nadler and Tushman (1980) the congruence model is based on how the elements all fit together. This model also places emphasis on what Nadler and Tushman (1980) calls the transformation process. Nadler and Tushman (1980) continues to say that the model must deal with inputs which a company must work with, the outputs/products/services it will produce, the major components of the transformation process in the change, and how these components interact with each other. I think this process and or model fits well with Ford as this company is making a transformation. The biggest transformation is bringing teamwork into a workplace that had little thought of working as a team. The strengths of this model are that it identifies problems, assesses the congruence, and identifies actions and steps on how to remove or reduce the problem. The weakness of this model would be a breakdown in communication of the team and forming an incomplete analysis of the collected data. The cost of implementing this model can be an expensive process. From what I have found so far about both companies is that both have nearly completed the final stage of their (Ford and GM) transformation. The companies are becoming profitable and in the case of GM they are profitable and have started to repay the TARP monies borrowed. The two companies are heading in the direction they have set out to accomplish in their transformation. Keegan (n.d.) mentions that in 2008 Ford established a business plan that uses the phrase of “ONE FORD” and this plan calls for them to sell their product more globally as to just selling only in the local markets. Even though Ford escaped bankruptcy and restructuring as GM or Chrysler in 2009, they still faced the need to change its business model to stay solvent and meet the changing needs of the consumer as mentioned by Keegan (n.d.). Ford identified one thing from their business plan the U.S. Senate viewed was the need to streamline its operations by bringing all of its businesses from around the globe together under one roof. Information taken from the GM website...

References: General Motors Company (2012). The GM Business Model. Retrieved from
http://www.gmannualreport.com/gm-business-model.html
General Motors Company (2012). Lower Our Risk Profile. Retrieved from
http://www.gmannualreport.com/lower-risk-profile.html
Nadler, D.A., Tushman, M.L., Hatvany, N.G. (1980). Managing Organizations
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