Qusetion#01: Discuss Lewins model and Kotters model for change with reference to GE

Motors?

Answer: First of all we have to discuss why is change management is so important and why do
different organizations opted for this. When an organization believes that they are not doing
good based upon their management, administration, proper utilization of available man power,
their policies, organizational culture, disproving of organizational contents from their own
workers, disapproval of organizational context by their workers, the structure of organization, the
quality of products degraded. This is a list of possible reasons why an organization opted for
change management and they felt like its time for a modification or improvement in their
organization. So they decided to take a step towards the revival of their prestigious organization
and get help from specialists about the revival process which basically based upon change
management.

Change management basically is a set of tools used to revive the destroyed name of an
Organization through changing the basic functioning of that particular Organization.

If an Organization is going through some difficult time and they have opted for the change
management, there are some approaches that should be followed to successfully revive your past
value. There are four approaches that are generally used for change management:

1. Lewins Classic three step model.

2. Kotters eight step plan.
3. Action research.
4. Organizational development.

Let’s take an example of General Motors which is world famous automobile manufacturer but
due to some circumstances they are gone bankrupted in 2009 and after successfully
implementation of various changing management theories now they are back on track. After
company gone bankrupted they have decided to use change management techniques and they
focused on to bring changes that helps them to rebuild or restore their lost legacy. The areas
where they generally focuses to change are structural change, their costing change, change in
their processes and cultural change. These changes are well described in Lewins and Kotters
change management plans and both have similar steps mentioned as the General Motors did to
revive.

According to the Lewins Classic Model:

1. The changing that helps to rebuild the lost confidence in the organization and that
overcome the pressure of individual resistance and group conformity.
2. A changing process is needed to transform the organization to deliver according to the
desired state.
3. This new changing process must be stable and permanent. No intervention can be
performed further on this changing process.

According to Kotters eight step plan:

1. Understanding of why we need a change in our organization.

2. Enough amount of power must be provided to bring about the change.

3. For successful implementation we needed a new vision to bring about the change and to
direct this change in right direct direction.

4. All the organizational members have adequate knowledge and understanding about this
new vision.

5. Empowering the organizational members to act on the vision.

6. Create an adequate plan about the new vision and small reward program to inspire
members to work hard to achieve the desired goals.

7. Its necessary to continuously improve and made proper adjustments that are required.

8. Reinforce the change by demonstrating the relationship between new behaviors.

Question#02: What are the two strategies adopted by GE Motors in order to bring change and
gain market share?

Answer: When General Motors opted for the change management; they have diagnose the
problems, which are major contributors towards the bankruptcy they have faced and they find
out the two main problems they have to take care of.
The two main strategies opted by General Motors to get rid of problems they are facing are Cost
Cutting and Cultural Change.

General Motors are well aware of the reason behind their crisis and they decided to eliminate that
reason from its roots. The corporate made some remarkable blunders by only considering the
profit levels instead of their brand value and in addition they cut pay of their staff which also
proves to be a downside for their organization. The General Motors decided to

The first steps that was taken by the General Motors is concerning cut, thleveorate has reduced
its vrootsof some brands to keep up the profit level, by keeping the opposite company value.
Equally the corporate additionally cut pay of staff that was the foremost downside to company.
The corporate has achieved the target of cut up to fifteen billion in recent year.

The General Motors additionally modified the culture of the corporate, automotive product
board, and automotive strategy up to eight men board deciding team that were accountable to
report on to corporate executive. The most objective of such modification is to hurry up the day
to day higher process.

The results of cut of looks from its employment figure of 98 to 2009, it absolutely was reduced
from 226000 to 101000 employees, and currently the corporate is concentrating on sale instead
of to any stop, and additionally the corporate is deciding to cut back the worked force of the
industrial plant from 6oooo to 4oooo. And it'll actually result in price saving to the corporate.

The General Motors had additionally achieved sensible result from cultural amendment, and
therefore the staff currently turning into privy to the responsibility and responsibility, similarly
because the company additionally authorized the staff to convey higher productivity.

As we've got mentioned higher than that the final motor adopted two main ways for amendment
management, recently one was cut strategy for amendment management and alternative was
cultural amendment management strategy, the corporate adopted 2 alternative amendment ways
however these square measure the foremost recent, by developing such ways the corporate has
achieved its market shares in north America once more, because the company was vulnerable by
the rising of competitors within the automakers business however the corporate set to bring
changes and currently the corporate once more in higher position and he once more maintained
the whole of core merchandise, beside of those the corporate additionally achieved the value
edges by implementing these amendment ways within the company.

General Motors have successfully retained their lost value through the application of change
management and they have applied all the steps of Lewins model and Kotters model of change.
Through these models they have diagnosed their major problems and they have chosen two
strategies to get away from these major problems.

This is quite a remarkable story for all the organizations out there to rebuild their lost value
through change management. As General Motors today is more popular than ever despite their
bankruptcy in 2009, they have worked hard and diagnose their problems and solved them in an
effective way.