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Human resources

By the end of 2019, General Motors will be encountering a devastating closure announcement towards their company causing more than 5″,000 jobs at loss including the main GM plant located in Oshawa which will suffer 300 jobs losses (Pazzano, J. (2018, December 06). Oshawa GM plant closure to cost Durham more than 5″,000 jobs: Union president.). Stated by The Global News, this successful corporation recognizes Canada as an important market, but it is figured to be difficult for General Motors to stay in its matured state of position. This is going to create a very negative impact not only towards the company’s financial loss but towards the many workers including dealerships that work for the company as well as the impact towards their Human Resource Management. With the closure of one of the biggest plants, General Motors strategic plan is to expand its company in the future for electric cars. Factors that caused a great amount of loss in the GM company and the impact towards their Human Resource Management are the effects on the local economy, the unbalanced work life of former employees, the lack of job security, miscommunications in the recruiting process, as well as the downsizing affects. As an HR general’s main objective is to manage hiring and staffing, which is stated by the Ryerson library of journals called “Prescriptive analytics for human resource planning in the professional services industry”, there are many other main challenges the HR team faces such as staffing decisions that can be made under uncertainty, management changes, as well as managing retention plans when a plant considers itself to shut down. One of the key aspects in the closure of a plant, specifically GM, are the effects on the local economy and how to manage the lives of workers of where they can head off to next, or what packages can be offered by the HR team to help continue their career. What retention plans do are usually prepare employees with the choices they are offered usually to all individuals. Given the information by a former workforce leader that had dealt with similar issues from this article, not all workers have the same amount of experience working with a company or accept the offers, but tend to either stay with the company plan or leave (Site Shutdown One HR Leader Tells Her Story. (2018, July 10)). In the closing process of General Motors, many workers are now unable to hold their basic living standards because some employees had relied on their current positions to help them live an adequate financial life such as Shivani Maharaj, who put her townhouse on sale because of the announcement of the Oshawa plant closure. Workers have informed the company that they are worried it would be difficult for their houses to sell as well as finding a more fitting position to work in another region (Pazzano, J. (2018, December 06). Oshawa GM plant closure to cost Durham more than 5″,000 jobs: Union president.). Maintaining a quality work-life balance becomes difficult towards employees when shutting down many operating units and having to downsize the business to get back to its level. How HR can help resolve the issue for current employees is to develop a module to help retrench workers find a new job. This will avoid them from paying more money for their compensation for retrenchments. As the human capital of this specific organization is considered to be very strong, stated by Global News, many of their bonds might break apart and loose employee benefits slowing the corporation down in becoming successful. (Dessler Gary, et al., (1942) Human Resource Management in Perspective: Human Capital (p.2)). With the sequential chains all closing one by one, from the GM plants closing in Canada, many plants in parts of America such as Michigan, Ohio, and Maryland also have the intention of terminating their GM productions. The tragic loss of General Motors is also creating a huge impact on engineering students who had planned to set their standards on applying to GM once they graduate and hope to become part of the General Motors company (Pazzano, J. (2018, November 27). Oshawa GM plant closure a ‘disappointment’ for engineering students). This creates a harder decision for the community of Oshawa students to focus on their future career placements. As GM is considering closing the Oshawa plant and some others in America, the human resources team is mainly helping employees to relocate to find a career in the same field even if there may be some minor changes in the economy. Complete closures would be harder for all or most employees and can be very costly. However, in this situation, General motors is partially closing, and the human resources have thought out to pay termination and severance packages to their employees. As not all accept the package, disagree and leave the company, other employees that do stay have the ability to go to communication meetings and ask questions they might be concerned about for benefit -related issues, how to prepare for the next steps or to just air out their frustration. (Dessler Gary, et al., (1942) Human Resource Management in Perspective: severance packages, (p.124)). By formulating employee communication meetings, employees can keep in touch and express any fears or problems and break down any barriers between workers and management. As many employees, specifically in the region of Oshawa can’t control much of the lead GM is taking, there are other opportunities for workers from the hand of HR. If workers are not planning on retiring, the HR team aids employees to either reenter the market, relocate to work for the same company or retrain for a similar motor company (Gordus, J.P. (1984)). On top of that, another issue the HR team has been through is the number of workers uninformed about what the future of GM might have looked like. By reading an article on how employees want more feedback, at least 65% of workers get disappointed when they realize they get stuck into the situation of losing their job when they are not informed about the company’s background and how their standings might look like in the future. (Lipman, V. (2016, August 09). 65% Of Employees Want More Feedback: So Why Don’t They Get It?). This included General Motors’ lack of feedback. Without having consistent HR engagements with workers, many new employees looking for hiring positions or newly hired employees should be informed on how to prevent the risks of getting trained for a job that might not be relevant or might not exist in the future. With that information, much employment losses would have decreased as well as workers would be ready to hear about that news in the future creating a less shock for them. With that being said, it would help students that were considering applying at the Oshawa location and reconsider another auto industry in a close area. During the process of recruiting employees in a company to maintain a quality workforce, requires good communication between an employee and a manager as well as a selection process. This process involves identifying job openings, specify job requirements, select methods of recruitment, and generate a pool of qualified applicants. (Dessler Gary, et al., (1942) Human Resource Management in Perspective: human capital (p.132)). If the selection process or the procedure is not well examined, ignored, or not well- informed to employees, workers will not be aware of the procedures of this company or ignore the information about the labor-market creating bad results in the hiring process. This can create miscommunications if the information is not clearly bought up to the future employees when working because plants continue to shut down and workers continue to suffer permanent job loss because of foreign competition, technological change, and industrial restructuring (Sua, C., & Yangb, T.M., (2015) Total Quality Management: Hoshin Kanri planning process in human resource management: recruitment in a high-tech firm, p.145). This specific case demonstrates the effect of GM going through industrial reconstructing which unfortunately the HR team is not control of and can do very little to support workers. A journal written by Michael Butler, Mike Sweeney, and David Crundwell in the Ryerson library states that during the process of a plant closure, the management and staff go through 5 stages of downsizing. These steps are to help reduce the amount of burden and damaging consequences for the number of job losses in the community. General Motors had to face the large groups of public riots against their plans but were able to manage in investing in some of the employees. The five stages include managing corporate brand name, communications, closure, investment in employees, and continuity of operations. When looking through each of their descriptions, four stages are mainly strategized for sustaining employee morale when downsizing (Michael, Mike, and David (2009, March 19) Facility closure management: the case of Vauxhall Motors Luton (p.679)). As stage four talks about managing investment in employees, it describes what HR can do to help resolve and minimize issues by training the workers that decide to accept the program package and retrain them for new responsibilities if recruiting to another plant. General Motors took these actions towards their workers by stating that they will work with Durham college, the University of Ontario Institute of Technology “to train and transition these workers into new careers in the region” (Pazzano, J. (2018, December 06). Oshawa GM plant closure to cost Durham more than 5″,000 jobs: Union president.). As the issues of downsizing, miscommunication, and unbalanced work-life occur in this vast corporation, many steps can be taken for HR to resolve these issues as stated in the report. The Global news article has affected many stakeholders that include the business, employees, graduate students, as well as the public economy. Strategies HR can improve to help these many stakeholders for the plant closures are getting the workforce to be prepared for what can come up, formulate an effective employee communication process, and provide benefit packages to help workers stabilize their work-life balance when retraining, relocating, or reentering the market. Human Resource managers must act quickly and effectively to overcome this issue in General Motors even if many workers may be going through tough times, but the overall economy may end up better off in the long run.

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