By following a successful strategy, General Motors has become more flexible to its employees, suppliers and dealers and has steadily begun to gain its market share. Apart from these strategies, based on PEST Analysis (Refer Appendix 5), in order to maintain its profitability in the world market, it should use a defensive strategy. But this does not means a passive strategy, because a well managed defensive struggle is offensive, trying to hold its dominant position in the market.
The better way to follow this strategy is using alliances and joint ventures, that provides new abilities and knowledge (some examples are: GM with Isuzu, Suzuki, Daewoo, Toyota; when GM wanted to learn quickly how to produce small cars). Increasing importance of Strategic Human Resource Management in General Motors, for creating competitive advantage was given. This approach led to a best fit within and outside the company. The HR Strategy followed by GM had a huge welcome among the employees and executives.
My reflection towards this module On careful analysis of the article that I have put forward, the importance of strategic human resource development has been discussed. As you have already seen how General Motors, a company that needed to change its declining market share adopted the 3Ts(HR Strategy). If the argument is on the issue of success on implementation of strategic HRM, it is quite clear with the effects of this principle, General Motors is having a face-lift. Instead of General Motors Focusing on its production, quality, marketing strategy and its suppliers, they have come to a conclusion on implementing SHRM. As they have realized, it is their employees who needed to change their outlook. By systematically bringing in a change through SHRM, I believe that General Motors that was headed for loosing more of their market share has begun to gain its once lost ground.
This principle of SHRM has worked for General Motors. But we cannot conclude that this is the universal law. I have come to understand that SHRM has to be customized based on the organisation as it could turnaround a company’s profitability. It could also lead to a confusion resulting in total chaos. So I would like to say that a careful study and understanding of the company’s culture, structure and attitude of employees have to be taken in each and every case, so that SHRM provides a best fit.
Strategic HRM has got a direct or indirect relationship with most of the modules that I have studied. HR is the backbone of any organisation, Each module is linked in someway and cannot be a part without the relationship with HR. Strategic HR is a technical role played to rescue and set a right a disfunctioning or malfunctioning part of the organisation by taking up a strategic leadership role. I find to my personal thinking, organisational behavior module have a close relationship as this involves people, their responsibilities in organisation linked with change.
In large multinational companies, which are following their own pattern, structure, and hierarchy; in time will face a very similar problem and as strategic HRM is being implemented, I feel their importance is relevant to keep an organisation steady in an ever-changing environment. More studies have to be carried out in order to facilitate the strategic HRM in all Organisations and universities, as it is more of a necessity than just a future requirement. Every organisation has to prepare to have its own SHRM with expert handling capabilities. As a student studying SHRM, one must be able to analyse where it can be implemented by having a thorough understanding of the organisation with respect to its culture and its structure. Thereby I would like to conclude that SHRM will play an important role in the near future, be it in a multinational company or even running a government.