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Running Head: ORGANIZATIONAL CULTURE amp. SCHEIN’S THEORY Organizational Culture amp. Schein’s Theory Memo to HR Manager-GM [Pick the From: Student’s NameTo: Human Resource Manager Sent: Day, Date amp. TimeSubject: The Need for Inevitable ChangeWith the rapid changes in our operating environment and technological advancements, a need for change is felt all across the organization. Unfortunately, our strategies so far have not changed our perception of a company that is stuck with its traditional approach, still resisting change. The recent sales figures are encouraging but the development and growth is inadequate to recover the losses that have incurred earlier. A thorough analysis of literature available on the subject matter and the market intelligence indicated that the workforce of GM is driven by its ideology and culture while GM’s culture itself is flawed. it resists change and shuns adaptation. This is the reason why measures taken by management and employees are often too late or inadequate. For example, in 2006, Jerry York, a GM board member had urged the automaker to unload Saab and Hummer but the idea met resistance and ended in ultimate losses (Krolicki, 2009). Now, one of these concerns is near bankruptcy whereas the other one is supervised by court. Out of resistance, the current culture of GM is less tolerant to differences, portrays less appetite for risk taking and exploiting the opportunities in hand, and appears to be narrow-minded to the social concerns that are emerging everyday and endangering its stability and existence in future e.g. increasing labor cost with excessive payload of surplus labor, and also the lack of attention paid to environmental issues. Due credit must be given to our predecessors but with the changes in absolutely every segment of our lives, GM must prepare itself first for the present and then for the future by first letting go of its same bureaucratic culture which is a souvenir from baby bombers. GM is trying hard to compete with the companies that value the importance of cultural diversity, innovation and technology along with appropriate leadership. It has acted like a shelter for many managers who were afraid of getting out of their comfort zone and face the current challenges (Krisher, 2012). Instead our culture has provoked them to use the chain of command principal, as an excuse for lack of performance and innovation. Considering the last near bankruptcy experience, GM culture has to change.In the light of past experiences, I would recommend that GM needs to evaluate the need for change and incorporate all necessary amendments not only in its operations and processes but in the overall organizational culture with a special emphasis to our most valued assets, our human resources. According to Schein (in Nellen, 1997), Organizational culture is defined by the artifacts (reflected through oral and written communication), espoused values (which will be demonstrated by the management and then will be adopted by the workforce), and the integration process of these values into overall organizational climate. Schien (1988) further emphasizes the importance of organization’s adaptation to environment’s requirements since they are dynamic entities always interacting with the environmental forces. GM needs to transform itself into a learning organization showing transformation and adaptation to market requirements of the 21st century instead of an entity bearing a fixed culture (O’Keeffe, 2002). Here, the human resource department must influence the management to give necessary autonomy to the departmental heads to take risks along with the increased accountability. Policies and procedures must ensure that the legacy of change passes on i.e. the departmental heads design teams comprising of potential talent by bridging cultural boundaries, defining goals and strategies to achieve them along with encouraging participation and involvement (Hatch, 1993). People will do what will be taught to them by their leaders. And if a change needs to be incorporated with GM’s culture, it has to begin with the actions and words of its leaders (Schein, 1985). Factors like power distribution, rewards and punishments also form a major part of organizational culture and increase the level of accountability (Kleinbaum, 2009). Also, the reward structure must demonstrate appreciation for passion and commitment instead of viewing it as a threat to organization’s stability. It is important that this check and balance mechanism reflects uniformity and fairness instead of bureaucracy. In order to gain the support and confidence of the workforce, it is of immense significance t that the integrity of this new model is made known to them. Our mission statement, philosophy, even workplace and marketing material such as flyers, brochures etc. needs to portray that GM is changing. its learning and evolving. As an employee of General Motors, I feel necessary to add that we all are responsible for GM’s current condition and, therefore we all are under obligation to get it back on track. GM has always been gigantic but this has pushed us back. It is now time to take action and make this glorious organization the best place to work with a hope that innovation will come through. In the light of these recommendations, I would request you to share appropriate policy structure which would reflect innovation and value for passion and contribution. Where GM’s management has undertaken the responsibility of getting it out of trouble, we all need to play our role here. Best RegardsStudent’s Name ReferencesHatch, M.J. (1993), The dynamics of organizational culture, The Academy of Management Review, 18(4): pp. 657-693.Krolicki, K. (2009), GM culture: a problem that cash cant fix?, Retrieved 10 November, 2012 from, T. (2012), GM CEO says old culture still hinders change, Retrieved 10 November, 2012 from–finance.htmlKleinbaum, R. (2009), Retooling GM’s culture, , Retrieved 10 November, 2012 from, T. (1997), Organizational culture amp. leadership by Edgar H Schein, Retrieved 10 November, 2012 from’Keeffe, T. (2002). Organizational learning: a new perspective. Journal of European Industrial Training, 26 (2), pp. 130-141.Schein, E. H. (1985). Organizational culture and leadership. San Francisco: Jossey-Bass.Schein, E.H. (1988), Organizational Psychology (3rd Edition), Prentice Hall: Englewood Cliffs.