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Essay / Management Analysis of General Motors Co.
Decisions always have direct impacts on different departments in management practice. Managers always affect the productivity and contribution that different departments make to a company with the management decisions they choose to incorporate into their management strategies. It is worth noting the effects that management decisions have on the human resources department. The human resources department includes all employees of a company, hence the conclusion that it is the most important department of all that a company has. The current paper summarizes an article regarding General Motors Co. (GM), America's largest automobile manufacturer, and how some of its management decisions have affected the human resources department. The summary is followed by an analysis of how the identified decision affected the operations and productivity of the human resources department. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”?Get the original essayThe article reviewed here is published on the Bloomberg website and reports on some of the GM CEO's ventures regarding managing its enormous financial resources (Welch & Green, 2015). General Motors CEO Mary Barra is reportedly in her second year at the helm of the largest automaker in the United States. It is reported that during her early years on the job, she faced controversies regarding fatally defective ignition switches in engines manufactured by GM. However, during her second year, she will have to deal with the United Auto Workers (UAW) union, which is campaigning for improved working conditions for all its members. The UAW is made up of all workers working in auto manufacturing companies and according to the article's reports; its veteran members have not had a pay raise since 2007. As can be inferred from the article, the UAW and GM are heading toward contract negotiations. The discussions will mainly focus on payments from the workers' union. UAW President Dennis Williams plans to push for higher wages for entry-level auto workers who would currently be paid a maximum of $19 an hour. Veteran union members were also promised a pay rise, with President Williams promising to fight for the increase in their pay, which currently stands at $28 an hour, a figure that has not changed for almost nine years now. President Williams appears to be pushing for a workers' strike if GM does not agree to give in to the UAW's demands. This leaves GM CEO Mary Barra in a precarious situation given the nature of the conditions that the UAW's demands impose on GM's productivity. GM is believed to be engaged in other spending matters. For example, as the article illustrates, GM promised shareholders up to $5 billion in dividends and $5 billion in buybacks. Maryann Keller, an independent automotive consultant, summarizes that because of these promises, GM has no choice but to give in to the UAW's demands. UAW members aim to prosper if their demands are accepted by GM management and, as Cindy Estrada, UAW vice president for GM relations, says, there will be strong investments in products and a healthy and well-positioned company. While the UAW continues its demands, GM's position on the issue of its UAW worker members is unclear. However, GM's CEO must clear things up in time to be sure that productivity.