Skip to main content
  • Foundation
  • Executive network
  • CEO Circle
  • SHRM Business
  • Linkage Logo
  • Store
  • Sign In
  • Account
    • My Account
    • Logout
    • Global
    • India
    • MENA
SHRM
About
Book a Speaker
Join Today
Renew
Rejoin Now
Renew
  • Membership
  • Certification
    Certification

    Smiling asian student studying in library with laptop books doing online research for coursework, making notes for essay homework assignment, online education e-learning concept
    Get Certified!

    Be recognized as an HR leader with your SHRM-CP or SHRM-SCP credential.

    • How to Get Certified

      Demonstrate your ability to apply HR principles to real-life situations. No other HR certification compares.

      • How to Get Certified
      • Eligibility Criteria
      • Exam Details and Fees
      • SHRM-CP
      • SHRM-SCP
      • Which Certification is Best for Me
      • Certification FAQs
    • Prepare for the Exam

      Give yourself the best chance to pass your SHRM certification exam.

      • Exam Preparation
      • SHRM BASK
      • SHRM Learning System
      • Instructor-Led Learning
      • Self-Study
      • Study Aids & Add-ons
    • Recertification

      Recertify your SHRM Credentials before your end date!

      • Specialty Credentials
      • Qualifications
  • Topics & Tools
    Topics & Tools

    Stay up to date with workplace news and leverage our vast library of resources to streamline day-to-day HR tasks.

    The white house in washington, dc.
    Executive Order Impact Zone

    Do not abandon, but evaluate and evolve. It is about legal, equal opportunity for all.

    • News & Trends

      Follow breaking news and emerging workplace trends.

      Legal & Compliance

      Stay informed on workplace legal updates and their impacts.

      From the Workplace

      Explore diverse perspectives from your peers on today's workplaces.

      Flagships

      Get curated collections of podcasts, videos, articles, and more produced by SHRM.

    • HR Topics
      • AI in the Workplace
      • Civility at Work
      • Compensation & Benefits
      • Inclusion & Diversity
      • Talent Acquisition
      • Workplace Technology
      • Workplace Violence Prevention
      SEE ALL
      SHRM Research
    • Tools & Samples

      Access member resources and tools to streamline HR tasks.

      • Forms & Checklists
      • How-To Guides
      • Interactive Tools
      • Job Descriptions
      • Policies
      • Toolkits
      SEE ALL
      Ask an Advisor
  • Events & Education
    Events & Education

    SHRM25 in San Diego, June 29 - July 2, 2025
    Join us for SHRM25 in San Diego

    Register for the World’s Largest HR Conference being held on June 29 - July 2, 2025

    • Events
      • SHRM25
      • The AI+HI Project 2025
      • INCLUSION 2025
      • Talent 2026
      • Linkage Institute 2025
      SEE ALL
      Webinars
    • Educational Programs

      Designed and delivered by HR experts to empower you with the knowledge and tools you need to drive lasting change in the workplace.

      Specialty Credentials

      Demonstrate targeted competence and enhance credibility among peers and employers.

      Qualifications

      Gain a deeper understanding and develop critical skills.

    • Team Training & Development

      Customized training programs unique to your organization’s needs.

  • Business Solutions
  • Advocacy
    Advocacy

    Make your voice heard on public policy issues impacting the workplace.

    Advocacy
    SHRM's President & CEO testifies to Congress on "The State of American Education"
    • Policy Areas
      • Workforce Development
      • Workplace Inclusion
      • Workplace Flexibility & Leave
      • Workplace Governance
      • Workplace Health Care
      • Workplace Immigration
      State Affairs

      SHRM advances policy solutions in state legislatures nationwide.

      Global Policy

      SHRM is the go-to for global HR leaders and businesses on workplace matters.

    • Advocacy Team (A-Team)

      SHRM’s A-Team is a key member benefit, giving you the tools, insights, and opportunities to shape workplace policy and drive real impact.

      Take Action

      Urge lawmakers to support policies that create lasting, positive change.

      Advocacy & Legislative Resources

      Access SHRM’s curated policy materials and content.

    • SHRM-Led Coalitions
      • Generation Cares
      • The Section 127 Coalition
      • Learn More & Partner with SHRM Government Affairs
  • Community
    Community

    Woman raising hand in group
    Find a SHRM Chapter

    Easily find a local professional or student chapter in your area.

    • Chapters

      Find local connections from over 607 chapters and state councils and create your personalized HR network.

      SHRM Connect

      Post polls, get crowdsourced answers to your questions and network with other HR professionals online.

      SHRM Northern California

      Join SHRM members in the greater San Francisco Bay area for local events and networking.

    • Membership Councils

      Learn about SHRM's five regional councils and the Membership Advisory Council (MAC).

      • Membership Advisory Council
      • Regional Councils
    • Volunteers

      Learn about volunteer opportunities with SHRM.

      • Volunteer Leader Resource Center
Close
  • Membership
  • Certification
    back
    Certification
    Smiling asian student studying in library with laptop books doing online research for coursework, making notes for essay homework assignment, online education e-learning concept
    Get Certified!

    Be recognized as an HR leader with your SHRM-CP or SHRM-SCP credential.

    • How to Get Certified

      Demonstrate your ability to apply HR principles to real-life situations. No other HR certification compares.

      • How to Get Certified
      • Eligibility Criteria
      • Exam Details and Fees
      • SHRM-CP
      • SHRM-SCP
      • Which Certification is Best for Me
      • Certification FAQs
    • Prepare for the Exam

      Give yourself the best chance to pass your SHRM certification exam.

      • Exam Preparation
      • SHRM BASK
      • SHRM Learning System
      • Instructor-Led Learning
      • Self-Study
      • Study Aids & Add-ons
    • Recertification

      Recertify your SHRM Credentials before your end date!

      • Specialty Credentials
      • Qualifications
  • Topics & Tools
    back
    Topics & Tools

    Stay up to date with workplace news and leverage our vast library of resources to streamline day-to-day HR tasks.

    The white house in washington, dc.
    Executive Order Impact Zone

    Do not abandon, but evaluate and evolve. It is about legal, equal opportunity for all.

    • News & Trends

      Follow breaking news and emerging workplace trends.

      Legal & Compliance

      Stay informed on workplace legal updates and their impacts.

      From the Workplace

      Explore diverse perspectives from your peers on today's workplaces.

      Flagships

      Get curated collections of podcasts, videos, articles, and more produced by SHRM.

    • HR Topics
      • AI in the Workplace
      • Civility at Work
      • Compensation & Benefits
      • Inclusion & Diversity
      • Talent Acquisition
      • Workplace Technology
      • Workplace Violence Prevention
      SEE ALL
      SHRM Research
    • Tools & Samples

      Access member resources and tools to streamline HR tasks.

      • Forms & Checklists
      • How-To Guides
      • Interactive Tools
      • Job Descriptions
      • Policies
      • Toolkits
      SEE ALL
      Ask an Advisor
  • Events & Education
    back
    Events & Education
    SHRM25 in San Diego, June 29 - July 2, 2025
    Join us for SHRM25 in San Diego

    Register for the World’s Largest HR Conference being held on June 29 - July 2, 2025

    • Events
      • SHRM25
      • The AI+HI Project 2025
      • INCLUSION 2025
      • Talent 2026
      • Linkage Institute 2025
      SEE ALL
      Webinars
    • Educational Programs

      Designed and delivered by HR experts to empower you with the knowledge and tools you need to drive lasting change in the workplace.

      Specialty Credentials

      Demonstrate targeted competence and enhance credibility among peers and employers.

      Qualifications

      Gain a deeper understanding and develop critical skills.

    • Team Training & Development

      Customized training programs unique to your organization’s needs.

  • Business Solutions
  • Advocacy
    back
    Advocacy

    Make your voice heard on public policy issues impacting the workplace.

    Advocacy
    SHRM's President & CEO testifies to Congress on "The State of American Education"
    • Policy Areas
      • Workforce Development
      • Workplace Inclusion
      • Workplace Flexibility & Leave
      • Workplace Governance
      • Workplace Health Care
      • Workplace Immigration
      State Affairs

      SHRM advances policy solutions in state legislatures nationwide.

      Global Policy

      SHRM is the go-to for global HR leaders and businesses on workplace matters.

    • Advocacy Team (A-Team)

      SHRM’s A-Team is a key member benefit, giving you the tools, insights, and opportunities to shape workplace policy and drive real impact.

      Take Action

      Urge lawmakers to support policies that create lasting, positive change.

      Advocacy & Legislative Resources

      Access SHRM’s curated policy materials and content.

    • SHRM-Led Coalitions
      • Generation Cares
      • The Section 127 Coalition
      • Learn More & Partner with SHRM Government Affairs
  • Community
    back
    Community
    Woman raising hand in group
    Find a SHRM Chapter

    Easily find a local professional or student chapter in your area.

    • Chapters

      Find local connections from over 607 chapters and state councils and create your personalized HR network.

      SHRM Connect

      Post polls, get crowdsourced answers to your questions and network with other HR professionals online.

      SHRM Northern California

      Join SHRM members in the greater San Francisco Bay area for local events and networking.

    • Membership Councils

      Learn about SHRM's five regional councils and the Membership Advisory Council (MAC).

      • Membership Advisory Council
      • Regional Councils
    • Volunteers

      Learn about volunteer opportunities with SHRM.

      • Volunteer Leader Resource Center
Join Today
Renew
Rejoin Now
Renew
  • Store
    • Global
    • India
    • MENA
  • About
  • Book a Speaker
  • Foundation
  • Executive network
  • CEO Circle
  • SHRM Business
  • Linkage Logo
SHRM
Sign In
  • Account
    • My Account
    • Logout
Close

  1. Topics & Tools
  2. Workplace News & Trends
  3. HR Magazine
  4. Strategic HR: GM Drives HR to the Next Level
Share
  • Linked In
  • Facebook
  • Twitter
  • Email

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Vivamus convallis sem tellus, vitae egestas felis vestibule ut.


Error message details.

Copy button
Reuse Permissions

Request permission to republish or redistribute SHRM content and materials.


Learn More
Feature

Strategic HR: GM Drives HR to the Next Level

GM undergoes a transformation, and HR helps to steer the changes.

March 1, 2002 | Bill Leonard


HR Magazine, March 2002 Most people may be surprised to find out that the nearly century-old General Motors Corp. has become something of a leader in innovative HR practices. Over the past two years, the world’s largest automobile manufacturer has completely reshaped the way HR operates within the company, and GM officials like to say that the corporate HR function is changing from a tactical to a strategic role. Indeed, one of the world’s largest and most complex corporations understands that it cannot become a truly global corporation without strategic support from HR.

To this end, GM CEO Rick Wagoner appointed the head of HR, Kathleen S. Barclay to the company’s overall strategy board. He also gave her the authority to reshape the HR department. Barclay accomplished this through a strategy she calls the 3Ts: technology, talent and transformation.

A Climate for Change

While many businesses flourished during the boom years of the 1990s, GM, like other U.S.-based automakers, struggled to maintain the status quo. During those years, GM’s market share continued to shrink as a steady stream of consumers bought cars from its Japanese, German and Korean competitors.

When Wagoner took over as president and chief operating officer of GM in 1998, he knew the company had to change its approach to manufacturing and selling cars or it would continue a downward spiral and eventually lose its place as the world’s pre-eminent automaker. Wagoner set into motion an effort to reorganize and rebuild GM from the inside out. One of Wagoner’s primary objectives was to refocus and revamp the company’s HR department.

“In my mind, HR is paramount to our reorganization effort. If we are to hire, train and keep the best workforce possible, then we must have the best and most up-to-date HR practices possible,” Wagoner says. “While the change in HR is just one element of making GM a more globally focused and competitive company, it is a key element.”

One of the first things Wagoner did as president was to organize a senior executive management committee, which he named the Automotive Strategies Board. The newly formed board includes the top-level executives at GM such as the chief financial officer, the chief information officer and the vice president of communications.

Wagoner, who had promoted Barclay to the position of vice president of global human resources for GM, named her to the strategies board. The move to place the head of HR on a top-level management team is something new within the organizational chart at GM. Essentially, Barclay now is considered the chief human resource officer at GM, and she reports directly to Wagoner.

Wagoner says it is crucial that GM’s head of HR be a member of the top management team and says the board now actively seeks Barclay’s input and opinions at its monthly meetings.

“Katy is a great asset to our organization, and I seek her counsel and perspective constantly,” says Wagoner. “She has demonstrated a tremendous capacity to think and act strategically, which is essential to our HR function and what we want to achieve in making GM a globally competitive business.”

Wagoner, who assumed the CEO position two years ago, is a relatively young chief executive at age 49. He has received some high marks from business analysts and the media for the changes at GM. Many have praised his fresh and energetic approach, which has helped GM maintain and actually show market share gains in a slumping economy and competitive global marketplace.

“Rick Wagoner is doing a wonderful job at GM, and he is taking the correct approach in involving and placing HR into a leadership role in the reorganization process,” says David Ulrich, a management professor at the University of Michigan in Ann Arbor. “I believe he is doing all the right things to help turn GM around. I think they have turned a corner here and are positioning themselves well for the future.”

Some observers, however, don’t quite share Ulrich’s optimistic outlook and say that GM faces some serious obstacles to becoming the globally cohesive company of Wagoner’s vision.

“GM has always been a very siloed corporation with all of its different divisions really operating like separate companies. There have been numerous reorganization efforts at GM, and most have not fared well, because of the turf battles and independent nature of GM’s divisions,” says Jay Conger, a management professor at the London School of Economics and a research associate with the Los Angeles-based Center for Effective Organizations at the University of Southern California.

Conger does admit, however, that GM appears to be taking a different approach. He says that focusing on HR and making it a key element in the reorganization effort is the right thing to do and is something that GM has never really attempted before. He also adds that reorganization on such a massive level and within an organization the size of GM will take several years to take root.

Ralph J. Szygenda, group vice president and chief information officer for GM, takes a similar cautious view. “HR has helped to keep us focused on what our ultimate goal is,” he says. “Katy is really good at what she does and has been very persistent in keeping us focused and informed about the progress and changes that are happening throughout the company.

“But HR is definitely still in a transformation and can’t declare victory yet,” he adds. “GM is a much better company than we were five years ago, but there is still a lot more room for improvement.”

One real challenge has been to get GM’s management team to completely buy into the strategic role for HR. Szygenda and Barclay say it was fairly easy to get the support of senior management because of the support of Wagoner and the creation of the Automotive Strategies Board.

Middle management, however, has been a different story, according to Szygenda, and has been more resistant to change. But, the effort is under way, and senior-level executives are well aware that it is “an evolution not a revolution” and therefore will take some time. The key to making the evolution work, both Barclay and Wagoner say, is to find the points of resistance and to try to make them understand the need for change. And if they continue to resist then personnel changes should be considered.

“We don’t want anyone to lose their jobs, so if there’s a problem then we will assess the individual’s situation and see if we can find a better fit for them within GM,” Barclay says.

HR Strategy: 3Ts

Nowhere was the “siloed syndrome” at GM more evident than within the corporate HR function. Five years ago, if you visited 50 different GM facilities, you would have seen HR administered in 50 different ways. Each GM plant had its own HR department, and these departments operated, for the most part, independently. To say GM’s HR function lacked cohesion would probably be an understatement, according to Barclay and other members of GM’s HR staff.

Wagoner handed Barclay the task of tearing down the walls and building a strong global network of HR professionals within GM. She says it was a daunting challenge, but one that she had been preparing for her whole career. Barclay began working for GM in 1978 but left in 1981 to pursue another opportunity. She returned to GM in 1985 and has remained ever since. Barclay believes her intimate knowledge and experience at all levels of the HR function within GM made her especially suited for the job of totally reshaping the way her department operated.

The first “T” in Barclay’s “3Ts,” or technology, is what GM focused on for the first part of this reorganization. This emphasis on technology has helped HR to develop and retain talent, which is the second “T.” The last part focuses on the transformation—or the third “T”—within GM. For the first time, the HR department has a consistent platform and set of goals with which to work. And many HR professionals within GM are seeing the effects of making their jobs more strategic and globally focused.

Technology

GM’s use of technology to completely revamp its HR processes has become a model that other organizations of all sizes are now following. GM has focused its efforts on creating an effective and totally accessible corporate intranet. The company placed most of its HR-related activities online and last year transformed its four-year-old intranet site into an HR portal.

“The portal is helping us to achieve our goals of developing a web-savvy workforce, of improving our ability to communicate and collaborate with one another,” Barclay says. “The employee service center does this by cutting out HR as the middleman and allowing employees to directly modify their HR-related information. It really is freeing up our time to do more substantive work and really get involved with the planning and strategic aspects of our business.” (For a case study on GM’s e-HR experience, see “Taking the E-HR Plunge” in the September 2001 issue of HR Magazine.)

Talent

In 1997, the company founded GM University, which is one of the largest corporate educational programs in the world. The university currently has 15 functional colleges charged with developing curricula tailored to the professional needs and challenges facing GM employees.

Most of the classes within GMU are lecture-based and in a traditional classroom format. But over the past couple of years, the focus has been to move most of the training courses online. In April of last year, GM launched the first training program offered completely on the corporate intranet. The course is called “HR Skills for Success,” and its launch demonstrates GM’s dedication to improving the opportunities of its 3,000-plus HR professionals.

The new online course is required training for HR professionals who work at GM. The course is divided into three phases with the first phase being mandatory for the HR staff. The other phases are provided to HR professionals who want to increase their management skills.

According to Donnee Ramelli, president of GMU, the key element to the initial phase of the course is a new root map system. The root map is essentially a brand-new organizational guide to show HR professionals how their job duties have changed and how work is now performed within GM.

“A lot of hard work went into developing these new root maps, and really they are providing the basis for everything we are trying to teach in this course,” Ramelli says. “It truly is a new and radically different way for HR to work within the company, and understanding the root maps is crucial to a clear comprehension of how to perform as an HR professional within GM.”

Transformation

As the changes in HR begin to take hold, HR professionals throughout GM say that the focus of their jobs definitely has changed over the past two years. Helen Elliott, GM’s manager for human resource development for Europe, says that for the first time the company now has standard training programs that are used in every country and each GM facility. Elliott, who is based in the United Kingdom, says prior to the change, GM’s training programs varied widely from plant to plant and from country to country.

“It was quite confusing and hard to keep track of. The new system is much easier to work within. While it might vary some because countries like Germany and France do have different types of labor and workplace laws, the new system means everyone is really on the same page,” she says. “And it has helped to improve the communications and interaction within the corporation and that’s a welcome change.”

Another difference Elliott sees is that communication with GM’s headquarters in Detroit has opened up and now flows both ways across the Atlantic.

“Before the transition began, Detroit would just tell us what they wanted us to do and there was no real discussion about it. Now they actively ask us for suggestions and seek our input. It definitely has been very empowering,” Elliott says.

Norbert Kuepper, director of HR at Opel, a German-based GM subsidiary, agrees with Elliott. Both Kuepper and Waldemar Kleinert, an HR representative for Opel, say the recent changes have been nothing short of miraculous.

“For years, Opel has been treated really as a separate company from GM,” Kuepper says. “But the communications channels have opened up recently, and it’s definitely changed our attitude, and we now feel more a part of a global team.”

“Both Norbert and I have been here for many years, and this really is the most exciting and positive change we have ever seen in the company,” Kleinert says. “We are participating in meetings and are asked for our perspective on some very important issues and projects. Now, we are just two old HR guys from Germany with the opportunity to work on a strategic level that we’ve never experienced before.

“It’s a new way to think and work, and it’s something we’ve both enjoyed being part of.”

Bill Leonard is senior writer for HR Magazine.


Artificial Intelligence in the Workplace

​An organization run by AI is not a futuristic concept. Such technology is already a part of many workplaces and will continue to shape the labor market and HR. Here's how employers and employees can successfully manage generative AI and other AI-powered systems.



Related Content

Kelly Dobbs Bunting speaks onstage at SHRM24
(opens in a new tab)
News
Why AI+HI Is Essential to Compliance

HR must always include human intelligence and oversight of AI in decision-making in hiring and firing, a legal expert said at SHRM24. She added that HR can ensure compliance by meeting the strictest AI standards, which will be in Colorado’s upcoming AI law.

(opens in a new tab)
News
A 4-Day Workweek? AI-Fueled Efficiencies Could Make It Happen

The proliferation of artificial intelligence in the workplace, and the ensuing expected increase in productivity and efficiency, could help usher in the four-day workweek, some experts predict.

(opens in a new tab)
News
How One Company Uses Digital Tools to Boost Employee Well-Being

Learn how Marsh McLennan successfully boosts staff well-being with digital tools, improving productivity and work satisfaction for more than 20,000 employees.

HR Daily Newsletter

Stay up to date with the latest HR news, trends, and expert advice each business day.

Success title

Success caption

Manage Subscriptions
  • About SHRM
  • Careers at SHRM
  • Press Room
  • Contact SHRM India
  • Book a SHRM Executive Speaker
  • Advertise with Us
  • Copyright & Permissions
  • Post a Job
  • Find an HR Job
Contact Us

SHRM India Corporate Information
Email: shrmindia@shrm.org
Phone: (1)800.103.2198
WhatsApp: +919810503727

Follow Us
  • LinkedIn
  • Facebook
  • Twitter
  • Instagram
  • YouTube
  • SHRM Newsletters
  • Ask An Advisor

© 2025 SHRM. All Rights Reserved

SHRM provides content as a service to its readers and members. It does not offer legal advice, and cannot guarantee the accuracy or suitability of its content for a particular purpose. Disclaimer


  1. Privacy Policy

  2. Terms of Use

  3. Accessibility

Join SHRM for Exclusive Access to Member Content

SHRM Members enjoy unlimited access to articles and exclusive member resources.

Already a member?
Free Article
Limit Reached

Get unlimited access to articles and member-exclusive resources.

You've reached the limit of 1 free article this month. Join to access unlimited articles and member-only resources.

Already a member?
Free Article
Exclusive Executive-Level Content

This content is for the SHRM Executive Network and Executive Content Subscription members only.

You've reached the limit of 1 free article this month. Join the Executive Network and enjoy unlimited content.

Already a member?
Free Article
Exclusive Executive-Level Content

This content is for the SHRM Executive Network and Executive Content Subscription members only.

You've reached the limit of 1 free article this month. Join and enjoy unlimited access to SHRM Executive Network Content.

Already a member?
Unlock Your Career with SHRM Membership

Please enjoy this free resource! Join SHRM for unlimited access to exclusive articles and tools.

Already a member?

Your membership is almost expired! Renew today for unlimited access to member content.

Renew now

Your membership has expired. Renew today for unlimited access to member content.

Renew Now

Your Executive Network membership is nearing its expiration. Renew now to maintain access.

Renew Now

Your membership has expired. Renew your Executive Network benefits today.

Renew Now