This document discusses GE's transformational change of offshoring production and human resource support roles to reduce costs. Offshoring relocated parts of the business to other countries. This change was initiated to remain competitive amid rising US production and HR compliance costs. It has been well received due to increased revenue and compensation for laid-off workers. The change is considered transformational because it required sacrificing the current labor force and business model. Management's role is communicating the vision and maintaining competitive strategies. Kotter's 8-step model would be best to implement the top-down change.

1. RUNNINGHEADER:CHANGEMANAGEMENTPLAN 1
Transformational Change 5
HRMT440-1404B-01
Quesadra Dynell Goodrum
Individual Project 1
Colorado Technical University
Instructor: Ericka Smith
11/15/2014
Table of Contents
Abstract 3
Introduction 4
What is offshoring? 4
How were the stakeholders affected? 4
What initiated the change? 4
How well has it been received or accepted, and why? 4
Drivers causing this transformational change 4
Why this is considered a transformational change? 4
Why can the firm not just keep doing what it has been doing? 5
Management’s role in the transformational change 5
Are there easier alternatives to accomplish the goal of
remaining competitive? 5
Theories of Change Management 6
Kotter- 6
Lewin – 6
Action research 7
Best Practices for ensuring the implementation of an
organizational change 7
References 8

2. Abstract
During the course of this paper I will be discussing my
transformational change management plan. We will be covering
the topic of offshoring, how the stakeholders are affected, and
what caused the change. We will also be discussing drivers and
what are drivers are and how they initiated the cause for change
and why it is needed. We will cover possible alternatives to
offshoring and their ability to keep the organization
competitive. During the course of this paper we will touch base
on theories of change management the pros and cons of each as
well as how to properly implement them. We will cover a
communication plan and in conclusion an implementation plan.
Introduction
General Electrics to as GE you see their products
everywhere. You can find one of their products in every home.
Weather it is a light bulb, stove, refrigerator, microwave,
dishwasher, washer, dryer, light fixture, and more. Yes, it is a
fact there products are highly regarded and well known. Even
though they are a famous and well known they are still
considered to be a midsized company (General Electric, 2014).
This well-known midsized company has begun to off shore most
of it production and human resource support. Yet during this
transformational change G&E revenue has spiked by a
whopping 41% (General Electric, 2014).What is offshoring?
There are some similarities between out sourcing and
offshoring however they remain to be two different things. We
are more focused on offshoring and what it means verses what
all it entails for the company going through it and the
transformational changes seen by its cause. Offshoring is what
happens when a company relocates its entire business of a part
of its business from one country to the next. Typically it is

3. consider offshoring when the company moves its operational
process such as production and manufacturing and or support
process such as human resources and or accounting outside it
country of origin and or home country. This is done by means of
internal or external outsourcing delivery models. How were the
stakeholders affected?
Due to the decrease in the amount that is being spent on a
human resource support sector and production revenue has
increased. Due the increase in revenue do to offshoring the
Human resource support center that return on investment seen
by the shareholders have increased. So they have indeed
benefited from the decision to offshore. The economic logic is
to reduce costs, sometimes called labor arbitrage, to improve
corporate profitability.
What initiated the change?
In order to maintain its competitive advantage in the industry
the change must be made. Current methods are impeding the
organizations ability to succeed. What’s ideal for business is no
always the case when dealing with real world situations. By
implementing the necessary changes now it will allow the
company to focus on growing the business which will increase
revenue. This will allow the company to further develop the
human capital inside the company. Rather that expending all its
time and energy into the ever growing complexities brought on
by human resource management and compliance. High United
States cost in productions costs the company to not only
offshore their Human resource support services but their
production as well.How well has it been received or accepted,
and why?
Currently GE is booming in its offshoring process.
Revenue has increased by 41% in the last year. While is labor
pool in the United States I shrinking slowly but surely. The
labor pools in its offshore locations are rising steadily. For GE
it has been a relatively smooth and glitch free process. This is
due to the fact that GE has made sure that the laid off labor pool
has been efficiently compensated and has assisted in relocating

4. them into other position inside the United States labor work
force (Offshore staff, 2014). Those that were willing to relocate
to an offshore location keep their jobs and relocated.Drivers
causing this transformational changeWhy this is considered a
transformational change?
Due to the heavy burden of Human resource compliance and the
high costs of production the company has decided to go with
offshoring as a way to implement relief. It is considered a
transformational change because the company must sacrifice its
current labor force and way of doing things to regain its
competitive advantage in the industry. Thus the driver that is
ushering in this transformational change is the ever growing
complexities of the United States regulations on Human
Resource management and compliance. Keeping up with this
ever changing field in business can become quit costly and in
results impede a company’s ability to be both productive and
successful. The sheer cost is the deal breaker it is cheaper to
offshore human Resource support than it is to outsource it. This
is also the case when it comes to production.Why can the firm
not just keep doing what it has been doing?
The organization cannot continue to practice business as usual
and expect to remain competitive. Human resource compliance
and the burden in which it causes will only grow more difficult
in time. They need to in essence relieve the pressure being
caused by human resource compliance. Navigating through this
ever changing environment has proven too be expensive and
complex on various degrees and levels (Editorial Board
Anastasia C.B., 2014). Production and labor costs are increasing
as well making it harder to maintain its competitive advantage
making it even more necessary to offshore and increase business
revenue and production. In making and implementing the
necessary changes it will give the company a competitive
advantage. Management’s role in the transformational change
Management’s role in this transformational change is to develop
and communicate the desired vision concerning their most
pressing business concerns. The secondary concern’s during the

5. change is to keep the desired key competitive strategies and
confidence levels in regards to its labor force in human
resources and production as wel (PRN Newswire, 2011)l.Are
there easier alternatives to accomplish the goal of remaining
competitive?
The given chosen strategies have been crucial in maintaining a
given the company a competitive edge by lowering the cost in
dealing with human resource compliance strategies as well as
lowering the cost of production. The organization has found that
these chosen practices have yielded the best results in helping
them remain competitive in the market (PRN Newswire, 2011).
Theories of Change ManagementKotter-
John Kotter is the developer of an 8 step model for leading
change. He was a leading pioneer in models for organizational
change. The model in theory that he developed was linear in
nature. The top strength of this model is that it provides clear
steps for ushering in change. The greatest weakness of this
model is its linearity nature. The 8 steps in this model in order
are: Establish urgency, Build the lead team, Make a Clear
vision, Effectively communicate the vision, Empowering
Action, Make change stick, Don’t let up, and secure short term
wins. Kotter’s model is good to use for any top down change
that needs to be implemented.Lewin –
Kurt Lewin was another pioneer in the field when it came to
looking at how individuals perform in a group. His theory’s
focal point was on the dynamics of the (Lewin, Field theory in
social science; selected theoretical papers, 1951). He also
looked at the qualities in the make of the system in which the
individuals would perform in front of. This would help in the
establishment of parameters in regards into the way in which
groups and force teams would be studied. During the course of
his research he found that all groups were interdependent among
the members of the group.
This application existed regardless to the size of the group,
structure, and goals. Groups come about because members are
fated simply put all in the same boat sink or swim.

6. Interdependence in groups is inevitable (Lewin, Resolving
social conflict; selected papers on group dynamics, 1948). This
is due to the fact that it is necessary to cooperate with others in
order to get something done. The advantage of the model is that
it outlines group dynamics and cohesion. The disadvantage of
the model is fulfilling the individual needs of its members at the
same time.Action research
Action research is centered on a problem or a client and is
action oriented as well. It involves the client in an active
learning diagnostic setting. It is used as a problem finding and
solving process. The data is not just simply collected ad
returned in a written format of a report. Instead sessions are had
in which the change agent and client dually collaborate and
decide upon which problems to target and how the problems are
ranked (Kondalkar, 2010). Together they decide upon devise
methods to utilize in identification of the root issue and thus
developing realistic plans for coping with them.
The pro of action research is that it can be used as an
educational study to figure out the major problems the cause
and effects of the problem and what is the best way of coping.
The con to action research is that it is the change agent and the
client who are weighing between problems, causes, and actions
deeming which are most and least important (Kondalkar,
2010).Best Practices for ensuring the implementation of an
organizational change
You have to know ultimately what model is the best fit for
your company as well as your employees. You want to choose a
model that well ushering in a smooth flow to the required
transformational change. In considering GE change the best
model of the three given I would have to choose John Kotter 8
steps. He decision to outsource was a top down decision so I
believe it is the best was to process the transformational change.
Using the step provided in John Kotter’s model.

7. References
Editorial Board Anastasia C.B. (2014). Organizational Behavior
12th ed. Words of Wisdom LLC.
Kondalkar, V. (2010). Organization Effectiveness and Change
Management. New Delhi: PHI Learning Pvt. Ltd.
Lewin, K. (1948). Resolving social conflict; selected papers on
group dynamics. New York: Harper Row.
Lewin, K. (1951). Field theory in social science; selected
theoretical papers. New York: Harper Row.
PRN Newswire. (2011). ADP Study Regulations. New Jersey:
PR Newswire US.