Human Resources Management In Small and Medium Enterprises Essay Example for Free

Human Resources Management In Small and Medium Enterprises Essay Introduction Competitive advantage to a firm accrues from the judicious employment of three basic types of resources, namely Physical Capital Resources, such as Finances, Plant and Equipment Organizational Capital Resources – Structure and systems in the organization Human Capital Resources, which include the skills, competencies, experience and intelligence of employees.[1] Human resources are among the most important resources that an organisation utilises and hence its importance to any organisation can be easily understood. Small-to-Medium Enterprises (SMEs) are no exception to this rule, although this aspect is frequently lost sight of. This paper examines the role and importance of Human Resources in SMEs, and compares SMEs from two different cultural backgrounds – Taiwan and the UK. Role of Human Resources in SMEs The study of human resources management in SMEs needs to be strongly encouraged. CEO/founders in SMEs view human resource management decisions as very important to the growth of their enterprises[2]   A study into the perception of important HR issues in small organizations showed that top six issues were wage rates, availability of quality workers, government regulation, training, benefits, and job security[3] The role of Human Resources in SMEs is to contribute meaningfully to organisational objectives in a flexible and demanding environment. Lack of strategic employee management is widely accepted as characteristic of small enterprises. Decision-making has been perceived to be of relatively short-term nature compared to larger organisations, making small enterprises more flexible and less conflict-prone. At the same time, this also means that the advantages of long-term planning such as greater efficiency and effectiveness are lost. On the human resources front, this means that such organisations tend to have reduced capability to attract, retain and motivate the best human resources. This becomes important in view of the fact that out of thousands of small businesses that are established every year, only a few manage to survive in the long-term. While long-term planning and HR strategy are not the only reasons for this, they are among the important reasons. Hence an examination of the HR function as a strategic part of business, and its relevance to long-term planning, is in order. In addition, the role of recruitment and selection, training, and performance management, are also relevant to any discussion on the role of human resources. Planning and Human Resources Management Strategic planning for the organisation needs to be linked to individual goals. In turn, this means that the job design should take into account the long-term objectives of the organisation. â€Å"A framework for strategic management incorporating HRM involves developing a mission statement that answers questions of what businesses the organisation is in; determining goals that are general and long term; and establishing objectives that are short term and measurable. It should also encompass a complete SWOT analysis that incorporates HRM as a functional unit of analysis.†[4] One of the essential requirements of Human Resources Planning is proper job design. Human resources planning involves the matching of the knowledge and skills that are likely to be required in future with those that it has or will have. Human Resources Planning will help the organisation to estimate critical resource requirements, plan training and development needs, and link individual goals to organizational objectives. Job design involves specifying the characteristics of the job and the requirements such as skills for performing these jobs. Job design will thus provide the framework for a host of HR planning activities that can be linked to organizational objectives.[5] Recruitment and Selection Once the plans of the organization are clear the next important issue that any organisation needs to address is to get the right staff to implement the plans. â€Å"Surveys indicate that about 25 per cent of small businesses view the lack of qualified workers as a threat to their expansion and very survival.†[6] The problem assumes particular importance in the case of small enterprises because they almost always have a problem in attracting and retaining the best talent. This is partly due to the fact that they are unable to compete with larger firms for quality staff, because it is impossible for them to match the rewards and prestige that come along with positions in larger firms. Additionally, smaller firms have a reputation for being oriented towards a ‘hire and fire’ culture. Training Once the plans are clear, and the recruitment of the right people has been completed, it becomes necessary to motivate the staff, as well as to enable them to perform their tasks efficiently. This requires periodic training of the employees. Training is important in the case of small enterprises because they are more prone to changing environments and higher attrition rates. This makes it necessary for people to be more flexible, and to be trained in all aspects of the business. While the need for training of staff is thus greater in the case of a small enterprise, it is also accompanied by greater constraints that make it more difficult for these organisations to implement training programmes. Small organisations face two constraints in t his respect: Their budget for training may be more limited, and they may lack the necessary resources to carry out such training It is more difficult for small enterprises to spare their people for training programmes. In spite of the above limitations, however, small enterprises need to concentrate more on training, as it is an investment that needs to be done. â€Å"It has been suggested that top performing companies are distinguished by their higher spending on training and development.†[7] Performance Management Performance Management â€Å"includes work and job design, reward structures, the selection of people for work, the training of these employees, assessment of work performance and policies associated with rewarding and improving performance.†[8] Performance Appraisals are an important part of Performance Management and are useful in improving performance, assist HR planning, and identify development needs and potential for promotion. Small businesses, in general, lack a formal performance appraisal system. The disadvantages of not using structured and formal appraisal systems are that appraisals, and the consequent rewards, are often subjective, and may promote greater dissatisfaction. Consequently, appraisal systems and Performance Management play an important role in determining the alignment of HR planning with organisational goals, and ensuring that a proper climate is available for the achievement of the objectives. â€Å"In developing formal performance appraisal systems, small businesses not only are able to ensure that performance management may become strategically aligned with organisational goals, but also increase accountability, decrease under-utilisation of human resources, address concerns of productivity, and decrease employees’ concerns about fairness and accuracy.†[9] In addition, the salaries and rewards that are offered as part of the employment and the management of diversity within the workforce are important considerations for any organisation. These have a greater significance in the case of small organisations. As can be seen from the above, the role of Human Resources management in small organisations is an important one that needs to be well understood and implemented with care. One interesting extension to the role of HR management in small to medium industries is the use of Balanced Score Cards, which are normally viewed as the exclusive tool of large industries. The Balanced Score Cards approach shifts the focus to long-term growth, and includes measures of operational efficiency, customer satisfaction and employee related measures. The Balanced Score Card method thus includes a part of HR Management to assess the overall performance of the organisation. In a case study that included three SME organisations, Gumbus and Lussier present some interesting conclusions that have significance for the HR function in SME companies. The cases also serve to highlight the importance of HR in SME companies and the link between performance and HR. One of the three companies cited in the case is Futura Industries, an international company based in Clearfield, UT with 230 employees. It has over 50 years of experience in aluminium extrusion, finishing, fabrication, machining and design. The company believes that the two competitive weapons that put them ahead of competition are â€Å"their ability to hire and retain the best people and their devotion to the customer.† Futura’s President, Susan Johnson’s belief that committed and loyal employees make the difference has led the company into using the Balanced Score Card method. In the words of Ms. Johnson, the company â€Å"had all the financial metrics, lots of customer measures, and got ISO accredited three years ago †¦ but it is our employees that differentiate us from all other extrusion companies.[10] A Comparison of SMEs in the UK and Taiwan A study by Lin found that successful SMEs in Taiwan place greater emphasis on soft skills and attitudes rather than on hard skills. He infers that SMEs in Taiwan seemed to have a better grasp of its human resources.   â€Å"Whenever SMEs modernize equipment, alter production processes, revise compensation policies, and engage in other reorganisation activities, they take pains to handle employees responses and feelings with special care and invest heavily in skills development.â€Å"[11] According to Hu, the Human resource scenario in Taiwan is characterised by abundance of entrepreneurs and availability of high quality professionals. Hu traces this to the importance laid on education by Chinese, and the large-scale injection of high quality human resource into the island in the aftermath of the retreat into, and subsequent withdrawal from, Taiwan of the KMT government. In addition, the Taiwanese population has inherited from its ancestors the qualities of â€Å"hard working, brotherhood, strong family ties, competition, and similar attributes that form the basis for strong family businesses.†[12] According to McKenna Beech, the following values characterise the Asian HR scene[13]: Politeness and courtesy Emphasis on personal relationship Not losing face Harmony- avoidance of open conflict Predominance of group interests over individual interests Discipline and respect for authority and for elders Normative, rather than externally imposed control Trust and mutual help in business relationships Centralisation and authoritarianism As against the above, the HR scenario in Europe is characterised by the following features[14]: Pluralism as against unitarism Collectivism and social orientation instead of individualism, with the emphasis being on national, rather than individual, interests Legal framework: firing is more difficult Social Partnership: Employment security, protection of workers’ rights, and representation of workforce through trade unions. Social Responsibility: Concern for environment and other social obligations Tolerance for diversity Recognition of complexity and ambiguity. The characteristics enumerated under Asian values represent the Taiwanese scene, and the scenario in Europe is representative of the UK. From the above, it can be seen that the SMEs in Taiwan are formed with reliance on individual assistance, based on respect for authority, with trust and mutual relationships as the supporting factor. In the UK, and other European countries, it is the legal framework that gives the necessary assurance and support to the business rather than trust. In Taiwan authority is enforced, and followed, because it is natural to the culture. In the UK, the legal aspects are augmented by collective bargaining with a recognized trade union to achieve this purpose. Taiwanese take great care to handle employees’ feelings appropriately whenever major decisions need to be taken. This is replaced by collective bargaining and more formal communication in the UK. SMEs predominate in Taiwan, whereas larger firms represent the more prevalent form of business in the UK. SMEs constituted 99.43 percent of Taiwans total manufacturing firms in 1954, the highest level ever recorded; 95.26 percent in 1976, the lowest; and 98.07 percent in 1996. Among them, the smallest firms, employing fewer than 10 persons, accounted for 90 percent of all firms in the manufacturing sector in the 1950s.[15] On the other hand, SMEs generate roughly one quarter of the GDP of the UK. The generation of employment by SMEs varies from sector to sector, the highest being in the construction sector with 84% of the employment being generated by this sector. The SME sector, which was declining up to 1970, picked up momentum thereafter, and showed a rising trend till 1994. Since 1994, the number has remained constant.[16] As can be seen from these figures, the SME sector is less dominant in the UK than in Taiwan. Why Human Resources are important in firms The resource-based view of organisations explains variations in firm performance by variations in firms human resources and capabilities[17] Firms can gain competitive advantage by generating specific knowledge and skills that are difficult to imitate. This can be achieved through human capital development. The importance of Human Resource Development in small firms is thus self-evident – they help the firms to succeed by being competitive. In a study of more than 100 small enterprises in two towns from Germany, Rauch et al found that â€Å"human resources are essentially important and an optimal utilization of skills and knowledge increases small business growth.† [18] In order to harness this important resource and ensure it gives the best returns, an organisation needs to select its employees with care. It is expected that as firms grow, the skills and abilities required to perform various functions and activities no longer would be available from the familiar and informal recruitment sources preferred by the owner-manager[19] Apart from recruitment, other functions such as Training and Development, Performance Appraisal, and formal procedures and documentation help the organisation in improving efficiency. According to Kotey and Slade, â€Å"Benefits of formal HRM practices include meeting legal requirements, maintaining records in support of decisions in the event of litigation, treating employees fairly, and increasing efficiency.† [20] A study by Kotey and Slade involving more than 1300 small firms in Australia showed that as firms grow they tend to introduce formal HR practices and procedures. In the words of the authors, â€Å"While the analyses show that a significant percentage of SMEs implement formal HRM practices with growth, HRM remains informal in the majority of firms, particularly in small firms. It could be that implementation of formal HR structures and procedures necessary to support growth differentiates successful from unsuccessful SMEs.†[21] In a small organisation, people need to be more flexible and undertake a greater variety of jobs. This needs both motivation and skills. In turn, many employees may get better exposure and greater opportunities to learn and shoulder higher responsibilities in a small firm. All of these underline the importance of Human Resources Management in organisations, particularly small firms. The HRM model is â€Å"composed of policies that promote mutual goals, influence, respect, rewards and responsibility between employees in the organisation.†[22] These policies are promoted by practices such as team working, aligning performance objectives with organisational goals, and a flat organisation structure, all of which can be achieved only through a proper Human Resources Management in the organisation. Survey Research findings have confirmed the theoretical position with the conclusion that good HR systems is a source of competitive advantage. One study has shown that higher performance in a number of areas is correlated to good HR systems and practices. Companies that had significantly higher ratings on their HR practices also reported better market value, higher accounting profits, higher growth rates, better sales per employee, and lower employee turnover. Another study has found that newly started companies had a better survival rate if they had good HR practices. The probability of survival was found to vary by as much as 42% between the firms with the best HR practices and rewards, and those with the worst. Yet another study found that performance of the organisation was strongly linked with practices such as acquisition and development of skilled people, better job design, better autonomy, and positive employee attitude. All these studies clearly show that good HR could positively impact organisational performance practices, highlighting the importance of Human Resources in an organisation. Apart from improving performance good HR practices result in lower costs, while poor practices increase the costs to the organization. One of the contributing factors for this is the cost of employee turnover. â€Å"Interviewing and training recruits has significant out-of-pocket costs for the employer.† Replacing an employee involves expenses for Separation, Replacement, and Training. [23] Employee turnover costs can be divided into three major elements: Separation costs: These are the costs that are directly incurred when an employee leaves the firm, and include such costs as exit interviews, administrative and paperwork costs, disbursement of separation benefits, and revenues lost due to shortage of staff. Replacement Costs: These represent the cost of replacing the employee who has left and include the costs of advertising, sourcing, interviewing and selection. Training Costs: These are the costs that the company incurs for training and induction of a new employee. Apart from the actual expenditure on these activities, the costs of loss of efficiency in the initial stages, and the time lost during the training period should also be considered. Thus employee turnover could represent a fairly high cost to the organisation. Employee turnover can be classified into avoidable and unavoidable turnover. Most of the avoidable turnover results from lack of proper HR initiatives.[24] How Good/Bad employees affect the firm â€Å"A good employee is possibly the most valuable asset a small firm or SME can possess; a bad one could ruin the enterprise.†[25] Any firm, and more importantly a small firm, can ill afford to have people who do not perform. Robert Townsend, a noted Management expert was once asked the secret behind his ability to take over loss making firms, and changing them into profitable ones. The reply that he gave will be of interest to anyone asking how good or bad employees make or mar the firm. Mr. Townsend identified three factors that contributed to his success: Releasing the potential of employees so that they could perform at much higher levels by the practice of appropriate management styles Identifying people within the organisation who were blocking progress and preventing others from performing, and either changing their ways, or dismissing them Identifying people who had the ability and drive to take the company to greater heights, and promoting them. It can be seen that this highly successful Management practitioner reduced success to three simple rules, namely, eliminating deadwood, promoting and encouraging those with potential and creating the right climate in the company. This clearly shows that apart from creating the right environment, the most important requirement for success is the quality of people. Good people could transform a loss making company into a profitable one.[26] â€Å"Whether a firm is small or large, its only as good as its staff.†[27] This can be easily understood because the employees of the organisation make the vital difference between good and poor performance in every area. Apart from the demonstrated effect that this has on the firm’s performance, which has been cited earlier, this also stands to reason. A company depends on coordinated working by its employees towards a common goal to achieve its objectives. In order to meet these objectives, the organisation has to do what it does well. In other words, the competence of its employees should be good if it wants to achieve results. Secondly, the soft skills of the employees are important to achieve internal teamwork as well as to nurture customers with excellent performance and service. Thirdly, the employees of the company need to work efficiently if it is to have a healthy bottom line. All these objectives can be achieved only with good employees who know their job and possess the necessary hard skills, have the necessary soft skills, and are committed to the company’s success. In other words, a company needs good employees who have the right levels of knowledge, skills and attitudes. Conclusion Human Resources Management in Small-to-medium industries has been gaining a lot of attention lately. There is increased awareness among many of the SME entrepreneurs themselves about the importance of good HR practices and policies. It has been shown that organisations having formal Human Resources practices grow faster, and are more profitable, than those that do not do so. A comparison between SMEs in two countries, namely Taiwan and the UK, shows that the SME sector is more predominant in Taiwan, which is characterized by a culture that lays greater emphasis on group working, respect for authority, and mutual trust. This is contrasted by the UK situation where the SME sector is les pervasive, and the HR climate is characterised by formal and legal supports, collectivism, and social responsibility. Although the two situations are quite different from each other, the importance of formal HR systems in the SME segment is being recognised in both cases, and seem to affect performance positively, irrespective of the background. Works Cited A Causal Analysis. Entrepreneurship: Theory and Practice, 29(6): 2005: 681+. Bennett, Roger. Small Business Survival: Strategies for Delivering Growth and Staying Profitable: Second Edition. London, Financial Times Management, 1998. Burns, Paul. Entrepreneurship and Small Business. New York, Palgrave, 2001. Griffith, Roger W and Hom, Peter W. Retaining Valued Employees. London, Sage Publications, 2001. Gumbus, Andra, and Robert N. Lussier. Entrepreneurs Use a Balanced Scorecard to Translate Strategy into Performance Measures. Journal of Small Business Management 44(3): 2006: 407+. Heneman, Robert L., Judith W. Tansky, and S. Michael Camp. Human Resource Management Practices in Small and Medium-Sized Enterprises: Unanswered Questions and Future Research Perspectives. Entrepreneurship: Theory and Practice, 25 (1): 2000: 11. Holbeche, Linda. Aligning Human Resources and Business Strategy. Oxford, Butterworth-Heinemann, 2001. HRD in Small Organizations, Edited by Graham Beaver Jim Stewart. New York, Routledge, 2004. Hu, Ming-Wen. Many Small Antelopes Make a Dragon. Futures 35(4): 2003: 379+. Kotey, Bernice, and Peter Slade. Formal Human Resource Management Practices in Small Growing Firms. Journal of Small Business Management, 43 (1): 2005: 16+. Lin, Carol Yeh-Yun. Success Factors of Small- and Medium-Sized Enterprises in Taiwan: An Analysis of Cases. Journal of Small Business Management, 36(4): (1998): 43. McKenna, Eugene and Beech, Nic. Human Resource Management, A Concise Analysis. Essex, Pearson Education Limited, 2002 Megginson, David, Banfield, Paul, and Joy-Mathews, Jennifer. Human Resource Development. Kogan Page India Pvt. Ltd., New Delhi, 2001. Rauch, A., Frese, M., Utsch, A. Effects of Human Capital and Long-Term Human Resources Development and Utilization on Employment Growth of Small-Scale Businesses: Satava, David. The A to Z of Keeping Staff: Few Firm Employees Leave without a Good Reason-Heres How Not to Give Them One. Journal of Accountancy 195 (4): 2003: 67+. [1] L. Holbeche, Aligning Human Resources and Business Strategy, Oxford, Butterworth-Heinemann, 2001, pp.10-11. [2] R.L. Heneman, T.W. Judith and S. M. Camp. Human Resource Management Practices in Small and Medium-Sized Enterprises: Unanswered Questions and Future Research Perspectives. Entrepreneurship: Theory and Practice 25(1): (2000): p. 11 [3] HRD in Small Organizations, Edited by Graham Beaver Jim Stewart, New York, Routledge, 2004, p. 81. [4] Ibid, p81 [5] Ibid [6] ibid, p82 [7] ibid, p 85 [8] ibid, p 89 [9] ibid, p 89 [10] A. Gumbus and R. N. Lussier. Entrepreneurs Use a Balanced Scorecard to Translate Strategy into Performance Measures, Journal of Small Business Management, 44(3): 2006: p.407. [11]C.Y. Lin. Success Factors of Small- and Medium-Sized Enterprises in Taiwan: An Analysis of Cases. Journal of Small Business Management, 36(4): (1998): p. 43. [12] M. Hu. Many Small Antelopes Make a Dragon, Futures, 35(4): 2003: p. 379. [13] E.McKenna and N. Beech. Human Resource Management, A Concise Analysis. Essex, Pearson Education Limited, 2002, pp.4-5. [14] ibid [15] M. Hu. P. 379. [16]   P.Burns. Entrepreneurship and Small Business. New York, Palgrave, 2001, p12. [17] A. Rauch, M. Frese A. Utsch. Effects of Human Capital and Long-Term Human Resources Development and Utilization on Employment Growth of Small-Scale Businesses: A Causal Analysis. Entrepreneurship: Theory and Practice, 29(6): 2005: p681. [18] ibid [19] B.Kotey and P. Slade. Formal Human Resource Management Practices in Small Growing Firms. Journal of Small Business Management, 43(1): (2005): p.16. [20] ibid [21] ibid [22] E. McKenna and N. Beech, p34-35 [23] D. Satava. The A to Z of Keeping Staff: Few Firm Employees Leave without a Good Reason-Heres How Not to Give Them One, Journal of Accountancy, 195(4 ): 2003: p. 67. [24] R. W. Griffith and P. W. Hom. Retaining Valued Employees, London, Sage Publications, 2001, p10 [25] R. Bennett. Small Business Survival: Strategies for Delivering Growth and Staying Profitable: Second Edition, London, Financial Times Management, 1998. [26] D. Megginson, P. Banfield and J. Joy-Mathews. Human Resource Development. Kogan Page India Pvt. Ltd., New Delhi, 2001, p. 82. [27] Satava, David. The A to Z of Keeping Staff: Few Firm Employees Leave without a Good Reason-Heres How Not to Give Them One. Journal of Accountancy 195.4 (2003): 67+.

Confederation vs. Federation The need for change :: essays research papers

The US government transformed itself from a very weak government to a strong central government from 1776 to 1876. The maitenance and creation of order was deeply needed in america at this time. Due to the US Constitution, The Articles of Confederation, and the Bill of Rights America went through so much needed changes. Around 1776 America wanted a weak government because they had such a fear of monoarchy. When the trasformation of the new strong central government began many more problems occured and even contributed to the Civil War. The first attempt for a new government was in 1781 when the Articles of Confederation was formed. The Articles of Confederation was like a contract that bounded the 13 colonies together which gave each individual state power over its own decisions. Some conflicts arose from this. So, the next step was the creation of the US Constitution. The Constituion was a set of laws that defined the powers of the government. This fell through when there was nothing mentioned about slavery. Many, many conflicts arose from the states slavery issue. After much thought it was deceided to come up with a comprimise. "For every free state there will be a slave state". This seemed to work until Lincoln was elected in 1860 and then slavery was abolished. This played a key role in the beginning of the civel war where 600,000 people lost there lives. This is a great example of why the Constitution had failed. So the 13 amendment was formed and slavery was officially abolished. Now around 1865 America was in great need for some reconstruction. With the states having their local powers revoked they did not want to lose their right to life, liberty and the persuit of happiness. With the new central government in control new federal supremacy was formed and initiated new checks and balances to ensure the government was running properly.

General Motors Essay

A car for every purse and purpose† – Alfred P Sloan Jr, Former President & CEO General Motors. General Motors, one of the world’s largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 205,000 people in every major region of the world and does business in some 157 countries. GM and its strategic partners produce cars and trucks in 31 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Jiefang, Opel, Vauxhall and Wuling. GM’s largest national market is the United States, followed by China, Brazil, Germany, the United Kingdom, Canada, and Italy. Company History: General Motors was founded on Wednesday, September 16, 1908, in Flint, Michigan, as a holding company for Buick by William C. Durant. Durant started acquiring many companies like Oldsmobile, Cadillac, Cartercar, Elmore, Ewing, Pontiac etc. Durant lost control of GM in 1910 to a bankers trust, due to the large amount of debt (around $1 million) taken on in its acquisitions. Durant left the firm and co-founded the Chevrolet Motor Company in 1911 with Louis Chevrolet. After a brilliant stock buy back campaign, he returned to head GM in 1916. GM surpassed Ford Motor Company in sales in the late 1920s thanks to the leadership of Alfred P. Sloan. Sloan was inventing new ways of managing a complex worldwide organization, while paying special attention to consumer demands. Car buyers no longer wanted the cheapest and most basic model; they wanted style, power, and prestige, which GM offered them. During the 1920s and 1930s, General Motors assumed control of the Yellow Coach bus company, and helped create Greyhound bus lines. They replaced intercity train transport with buses. GM needs a sense of urgency regarding revising a strategic plan that incorporates the next generation of vehicles. In today’s global economy and highly competitive auto industry GM has no time to procrastinate. As stated, GM has just too much at risk in not becoming an industry leader in alternative fuel technology. Fuel-economy legislation is sparking the race. This is a critical time in auto industry with many threats, but opportunities as well. The next several years will redefine GM. Vision Statement The GM vision is as follows: GM’s vision is to be the world leader in transportation products and related services. GM will earn our customers’ enthusiasm through continuous improvement driven by the integrity, teamwork, and innovation of GM people. The proposed new vision for GM is as follows: For GM to become the automotive industry leader in alternative fueled vehicles and providing superior quality products that global consumers call to mind when they think of quality and innovation. My vision for GM is to be the industry leader in innovation, and where all other industry competition strives to imitate. Mission Statement The current GM mission statements are as follows: Drive improvements in market share, revenue, brands, people, responsiveness, and cost effectiveness through the implementation of global common metrics and best practice sharing. The new proposed mission statement will be as follows: GM will become an industry leader, not a follower. To regain lost market share that was lost to foreign competition, and once again be the auto industry leader in sales and market share in today’s global market. Values Statement The auto industry just like the global economy is going through tremendous change, due to rising fuel prices, and environmental worries, such as global warming. GM must use these threats as opportunities, and take advantage of changing consumer buying habits. GM needs to change consumer perception of the company, from a dull, poor quality, vehicles to innovative, quality, and environmentally friendly company. To do this GM must portray an image that states that GM values what the consumer wants and what the environment needs. Listen to what consumers are saying directly and indirectly about GM’s current products, and create innovative, green, vehicles that turn consumers into customers. At the same time provide GM stakeholders pride and financial incentives to remain with GM. Environmental Analysis GM and the entire auto industry are currently challenged with the perfect storm. The auto industry is being hit by a weak US and global economy, rising fuel prices, and social and political environmental concerns and issues. In order to overcome these potential threat, GM should consider mass producing a range of alternative fueled vehicles, i. e. fuel cell, electric, and hybrid. SWOT Analysis Strengths 1. Large Market Share Although GM’s market share in the US has dropped it is still very much competitive at 26 percent. They also have an increasing share in the Chinese market. With the right decisions there is no reason for GM to not become the automotive leader it once was. . Global Experience As explained above even with GM’s recent decline they still have the market share and the experience to bounce back. They have been a worldwide company for nearly a century now and have established themselves as the global leader for most of them. If you recall I mentioned above that a current opportunity for GM is to expand globally and as we can see they a lready have the experience to do so. It is just a matter of the correct planning and proper implementation of those plans that will decided whether or not GM’s goals are achieved. 3. Variety of Brand Names GM as I mentioned has been the automotive leader for the majority of the last century. A large reason for that is the wide variety of quality brand names that appeal to all target markets. The current GM brands include: Chevrolet, GMC, Cadillac, Buick, Pontiac, Saturn, Hummer, Saab, Daewoo, Opel, and Holden. 4. GMAC Customer Financing Program Since its establishment in 1919 it has proven to be GM’s most reliable source of revenue. 5. OnStar Satellite Technology Developed in 1996 OnStar currently has over 3 million subscribers and is standard on all GM vehicles. This technology allows the vehicles to be tracked in the event of an emergency or theft. It also allows the driver and or passengers the ability to communicate with OnStar personnel at the click of a button. Weaknesses 1. Behind on Alternative Energy Movement This is GM’s biggest weakness. The alternative energy/hybrid trend has begun to take place in the automotive industry and GM has been one step behind the competition in terms of alternative energy vehicles. This has led to many problems including loss of market share and a decrease in company profit. In order for any automotive company to be successful from this point forward they must be Hybrid friendly and fuel efficient. 2. Poor Organizational Structure As we can see in exhibit 1 of the case GM’s organizational structure seems to be too vertically integrated. This causes a lack of communication between employees from top to bottom and may have played a part in GM falling behind on the alternative energy movement. 3. Stagnant Profitability Looking at GM’s profit we see that they are certainly struggling with respect to the size of their company. Their profit margin was about 1. 5% and the ROE has dramatically decreased over the recent years dropping to 10% in 2004. This is a situation that shareholders will not be pleased with. 4. Overly Dependent on US market GM has become too dependent on the US market and must take advantage of the opportunity to expand globally. The competition is becoming too strong to focus on just one country. 5. Overly Dependent on General Motors Acceptance Corporation(GMAC) Financing GM has become too dependent on its financing program. Granted it is a great strength for GM, however they once again cannot rely solely on financing in order to turn profit, especially if they want to compete with Honda and Toyota who are rapidly growing. 6. Poor Credit Status GM’s credit status has like everything else has been steadily declining. Their current ratio is just barely above 1 and their acid test is even lower. Although, I don’t see them getting denied based on their credit at this point, the seriousness of the matter is certainly apparent. Opportunities 1. Alternative Energy movement It is obvious that GM was behind its competition with regards to the research and development of hybrid vehicles. However hybrid technology is still very much new giving GM the opportunity to once again become the automotive industry’s leader in innovation and technology. 2. Continuing to Expand Globally. Recently GM saw an increase in the Chinese automotive market, which proves their needs to be more emphasis put on foreign markets. If GM can infiltrate these markets and successfully grow along with their continuing focus on the US market they will be headed in a positive direction. . Low Interest Rates With the right marketing strategy the low interest rates have the potential to generate an immediate increase in sales. 4. Develop New Vehicle Styles and Models This is an opportunity that will never be satisfied, meaning that GM should always be attempting to develop the automotive world’s most popular vehicles, and as we know, what is in today will be out tomorrow. Th reats 1. Rising Fuel Prices With GM being a large producer in both trucks and SUV’s, sales have drastically decreased due to the lack of fuel efficiency. The rise in fuel prices has played a significant role in creating the opportunity for development of both hybrid and more fuel efficient vehicles. As you will find with most threats, an equal opportunity will usually emerge as is the case here with GM’s opportunity mentioned above. 2. Growth of Competitors GM no longer has the luxury of being the known leader in the automotive industry and faces the reality that they are in serious trouble. As I mentioned earlier Toyota took the first step in the direction of hybrid echnology and has since drastically grown and become the questionable automotive frontrunner to start the 21st century. 3. Pension Payouts. Part of this threat is their own doing and the other is simply unavoidable. GM is responsible for providing generous pension benefits to its employees, which at the time seemed like a great idea, however they are now experiencing problems as more and more people begin to collect. 4. Increased Health Care Costs GM, like many lar ge companies with quality employee health care benefits, is experiencing a large financial hit that only gets worse as time continues. . Rising Supply Costs, i. e. Steel Once again this threat affects the entire automotive industry and forces each company to cut manufacturing and production costs as much as possible, without taking away from the quality of the product. Core Competence The core competence of General Motors is innovation. This is the driving force behind its $190 above turnover. General Motors has been utilizing innovation in service ad technology to secure itself a dominant position in the automobile industry, since 1908. In 1911, it conceptualized, engineered and commercialized the self-starter engine for the first time. Then in 1926, its product Cadillac was the pioneer in devising a nationwide service strategy. In 1996 General Motors introduced OnStar satellite technology which allows equipped vehicles to be tracked in case of an emergency or theft and allows the passengers to communicate with OnStar personnel. Other new car concepts include minicars such as Chevy Aveo. However in the case of hybrid vehicles, General Motors was unable to keep up to the pace of the market demand.

Statues and Sculpture An Art Form that Depicts Human History

Art Stands Tall for Human Values In 2008 a group of archaeologist unearthed what could now be the world’s oldest statue. This larger than life statuette stands at whopping 2  ½ inches tall with an estimated carving date from 35,000 to 40,000 years ago from a mammoth tusk. The form of the statuette is that of female figure missing her head and feet with a primary focus on reproductive organs. Due to the pornographic nature of the statue archaeologist believe that the statue’s purpose and function is to represent longevity and fertility. No matter if you believe man crawled from primordial ooze or if a being of higher authority created man, humans have continued to express emotion, experiences and values through the artistic expression†¦show more content†¦Starting in 1870, artist August Bartholdi made a trip to the United States to search out a place to erect the statue and begin the initial design. The form of the statue is actually created from two sepa rate forms. The first form used to create the statue is that of a neoclassical sculpture of the Roman goddess Libertas who represented freedom and democracy. The second form used in the statue is that of the fictional female character, Columbia who many at the time believe carried the embodiment of America. The main function of the statue is to represent individual liberty and freedom from slavery. Liberty has always been a highly held value in the United States so it would be important that the function of this statue represented that value. The statue’s function of freedom and liberty is carried throughout the sculpture. You will find the date of the independence placed upon the tablet she carries. At her feet lay broken shackles from slavery. Upon her crown are seven rays that represent freedom to all the seven continent’s citizens who come to this country seeking freedom. Her right arm is raised in the air above her head carrying a torch that light’s t he way to that freedom. Her outer skin is covered in thin copper sheets that over time patina giving the statue her green hue. Some may not know as well that the statue’s internal structure is just as famous as her outer appearance. TheShow MoreRelatedComparing The Statue Of Gudea802 Words   |  4 Pageseye-catching sculptures, and stunning statues, each having an individual story to tell. Thousands of them have been created however, only a small number of them are actually extraordinary and picture-worthy. This paper will compare and contrast two of those picture-worthy sculptures. Furthermore, I will examine the aspects of each of these sculptures. I will compare and contrast what each of them represents, the differences in texture, their size and their tone. Representation The two sculptures presentedRead MorePeriods of Greek Art682 Words   |  3 Pages Greek art has changed throughout the years, yet some basic forms have remained. Time, technique, as well as historical events have helped shape the way art has evolved since 600 B.C. Three important periods in Greek art are the Archaic, Classical, and Hellenistic periods. We will discuss how art has changed throughout these periods, what influences led to change, as well as why it changed. We will also discuss what has remained constant through these periods. Since people’s perceptions and tasteRead MoreMen Sculptures From Ancient Art867 Words   |  4 PagesMen sculptures from Ancient Art The mini exhibition will center on ancient art found in the Rome and Greece, and will mainly focus on male sculptures from that area. History dates that the civilization of man began in the Rome hence their advancement of art is especially important as well. The rulers of the time appreciated the art built regardless of its structure. The artist was strict on the appearance and representation of the sculpture. Their attention to detail makes them unique and interestingRead MoreAnnotated Bibliography Of Venus De Milo Of Aphrodite1628 Words   |  7 Pagesof the statue/sculpture of Venus de Milo of Aphrodite from Melos. Three perspectives are presented in the article firstly on how the statue was discovered and the speculations made by the experts and other artists about the sculpture and the other structures unearthed with or near the sculpture. Another perspective presented by Kousser is how the sculpture does not necessarily epitomize female beauty, but it represents Hellenistic classical art. The author highlights how the sculpture was actuallyRead MoreThe Classical And Hellenistic Period1098 Words   |  5 PagesGreek sculpture is known for its beauty and attention to detail. Two of the most prominent eras in Greek sculpture are the Classical and Hellenistic periods. The Classical period took place from 500-323 BC. It is the period between Persian wars and ends with the death of Alexander the Great (History). Classical sculptures are known for being less detailed more stagnant. The Hellenistic period begins when the Classical period ends, in 323 BC. This period ends in 31 BC â€Å"with the conquest of the lastRead MoreI Walked Up The Massive Stone Steps1067 Words   |  5 PagesPark and emerged to see an immense temple of art standing before me. As I walked up the massive stone steps, to the Metropolitan Museum of Art, I was overwhelmed by how enormous the building was and how small I was in comparison. I was overcome with a sense that I was about to witness something much larger than myself. Once I walked inside, I stared up to the large vaulted ceilings and to the long corridors full of masses of people admiring the history in front of their eyes. There is an all-encompassingRead MoreThe Period Of Greek Art866 Words   |  4 PagesMidterm Throughout the times in Greek art, Archaic, Classical and Hellenistic periods have changed overtime from the sculptures in the form, style, and symmetry. The Archaic period lasted from 700 to 500 BCE and the sculptures haven’t yet mastered in sculpting showing realism. Their style of sculpting was similar to the Egyptians in the way that they made the bodies of the sculptures rigid with both arms on their sides and with a foot stepped forward (Greek Archaic Art). By the end of the Archaic periodRead MoreEssay on Renaissance vs Neoclassicism1295 Words   |  6 Pagesthings? Neoclassicism and the Renaissance are two major periods in the history of art during which different forms of art including architecture, painting, music and visual arts, significantly advanced. It was during these periods, different artists became very famous as a result of the masterpieces reflecting how the ideologies and artistic philosophies advanced during that time. This essay compares and contrasts these two art periods with respect to the major works created by respected artists ofRead MoreEssay on The Human Body in Ancient Greek Sculptures1015 Wor ds   |  5 PagesThe Human Body in Ancient Greek Sculptures The primary focus of ancient Greek sculptures was that of the human body. Almost all Greek sculptures are of nude subjects. As the first society to focus on nude subjects, Greek sculptors attempted to depict man in what they believed was the image of the gods and so would come to celebrate the body by striving for verisimilitude or true – likeness (realism and naturalism!).(Riffert) Not only did the Greeks celebrate the human form in their art but alsoRead MoreModern Art : Ancient Art1555 Words   |  7 PagesAncient Art The history of the building techniques is the human’s journey to search for exclusivity and excellence. To achieve this goal, ancient civilizations made their own style of building temples, walls, sculptures, and many other antiquities to represent their identity. However, many circumstances influenced the types of building they can construct. For example, the customs, religion, the climate, and the nature of the land. Throughout this paper, ancient antiquities, all are three dimensional