Human Resource Management Role in Business Transformation

Abstract

The role of human resource management (HRM) in downsizing and rightsizing during the turnaround process in ensuring business success cannot be overemphasized. This paper discusses the role of human resource management in business transformation, focusing on the case of General Motors. It argues that the HRM is one of the core elements as well as models of a business, and has been instrumental in transforming General Motors’ business. Drawing from observations and oral responses of the thirty selected oral informants interviewed about General Motors’ business operations and successes, the study reports that shifting focus from operations and strategy to employees and engaging them in redefining the company mission, identifying their role in achieving the mission, and measuring their performance against the organization’s vision is essential in redesigning and reengineering the business to success, which amount to business transformation. The paper concludes that involving the employees in defining the company’s purpose increases employee engagement and makes employees identify with the organization. It recommends that General Motors, as well as other business organizations, should focus reasonable attention and resources on HRM, organizational training and establish a culture of ethics and accountability so as to attain maximal success and compete more favorably with their competitors.