ORGANIZATIONAL CHANGE
INITIATIVE
Institution
Name
Tutor
Date
Introduction
In
the contemporary business world, any implementation of change if not properly
handled can burden the human resource’s ability to create efficiently and
maintain a competitive advantage. The success of a change initiative depends on
the skills, knowledge and abilities of the professionals in the human resource
management of the company (Abrahamson, 2010) . It is upon the
department to roll out change when it is needed and when to acquire workforce
required to effect the plans. The business world is fast changing and the
tactics used are advancing. Therefore, every company has no choice but to cope
up with the dynamic progress.
In
2011 Atlassian, an Australian based software company decided to overhaul its
performance management system that has existed ever since (Luijke, 2015) . The company used a
rating-based bi-annual performance review system that failed to yield the
expected results hence the company had to adopt a different approach. The
review was infrequent, and it caused fear in most of the workers, in addition
the rating that one had which was on a scale of out of five determined the
amount of bonus they were paid. Therefore, much attention was centered on
whether one had four or five rating to determine the amount they could get hence
failing to address its purpose. The company resorted to a different rating
system that was more continuous and less numeric. The new model involved
managers discussing the monthly performance one on one on an already set out
date with the employees. This paper is going to discuss the vital steps of
change initiative required to succeed in a company while using Atlassian’s
experience.
Steps involved
The primary steps involved in the
change initiative requires Assessment, Preparation, Execution,
and
Sustaining (Pasmore, 2011) . These steps are
discussed in detail below.
1.
Assessment
The
management must first take the initiative to examine whether the organization
and its employees are ready for the changes yet to be outlined. It helps the
company to determine the timing of the program, the duration it may need, the
speed to involve in enacting it, and to evaluate whether the employees have the
skills and abilities to handle the changes (Pasmore, 2011) . These are the
factor that are considered to be the hard issues that failure to look into, the
company may end up not achieving its goals.
a. Timing
Timing forms a basis for the implementation of the
initiative. The common sources that require timing issues are open enrollment, annual
training, companywide audits and continuous improvement, etc. (Grace, 2012) . Each of these
situations directly affects the transition process by directing additional
strain on the company’s resource and its workforce. Any additional pressure on
the employees may hinder the progress of the change initiative yet they form a vital
part of this process. Therefore, the human resource must evaluate if the company
can execute the additional alterations in operation or if the timing is not
effective to prompt a modification.
b. Speed
How fast a change needs to take place becomes
another critical factor for any change to happen in a company. The company must
consider the competitors in case the change will lead to bringing in a new
product into the market hence the quicker they move, the better to conquer the
market. On the other hand, a company that is focusing on changing a cultural
habit in the company will need to take more time for the employee to
familiarize with the new procedures (Pasmore, 2011) . The human resource
must take a critical limit the number of parties involved in the process, because
a bigger number may slow down the process due to mobilizing difficulties.
Another important factor that the management must look out for is a possible
resistance from the workforce, therefore, it requires that the involved parties
handle the process with due care.
The Atlassian Company had to do a thorough research
to determine the factors that were good in the previous approach but did not get
any. Therefore, they initiated the new procedure immediately after getting the
findings from the research on the company. It was an urgent initiative since
the rating system had produced unexpected result twice in a year with most
workers being demotivated.
c. Training
A research report on change managing carried out in
2007 indicated that 44% of the respondents believed that the insufficient time
dedicated to training the employees on the impending changes hinders its
success (Grace, 2012) . An inadequacy in
preparation of the workforce towards the prospective change is a critical matter,
and it is an issue that the human resource must address before embarking on
actualizing a change in a company. The questions surrounding the training of
the employees could be the finances required, the capabilities of the staff i.e.
the skills, abilities and knowledge and lastly the duration needed to equip sufficiently
the workers with the knowledge. It could be important to address these critical
issues and delay the execution of process for a given time other than
implementing a change that may fail in the process.
Having done a detailed research on how best they
could handle their planned change the Atlassian noted the importance of
training. The managers who would thereafter be given the roles to engage and
discuss the performance of their team members one on one were taken under a
coaching conversation training. Many had little or no knowledge of the same; therefore,
the company involved the services of an executive coach who trained the manager
how to have a good coaching.
2. Preparation
After
the company going through the assessment stage, the information collected will
determine whether the company can carry on with the initiative. The preparation
stage involves the company settling to implement the process by outsourcing for
all that was recommended during the assessment phase.
a.
Creating
a Strong Leadership Voice and a Vision for Change
The
managing body must clearly outline the vision for the whole change process. It
should specify the significant parties to be engaged in the process, which also
includes highlighting who, where, why, what, and how of the change initiative (Northouse,
2009) .
If the management is building a persuasive vision for the change, it has to be
linked with the prevailing company’s identity and its core values. The management should also look for a means to
ensure that the description of what the change and its future are likely to be
so that the vision can be more compelling to the staff.
The
employees get inspired to embrace change more when they witness commitment from
the management. Therefore, the leadership should build much on the visions of
the change to receive acceptance from the employee population. It also requires
a total involvement at all time without reluctance, since any sense of that
would make the employees perceive that the change is not that significant and it
could lead to a possible failure of the whole procedure.
The Atlassian
case presented a challenge whereby people were accustomed to the traditional
level of evaluation which involved the numbers, and this could make them up
their game in case results were not impressive. But the new method brought in a
new dimension that treated everyone equally with bonuses being paid equally to
the whole staff contrary to the initial best performers. The change made the
whole staff felt that each one’s efforts were appreciated in the company hence
added zeal in the progress of the change initiative.
b. Unfreezing
Unfreezing is the act of trying to change the conventional
view of the employees about the state of the company (Smith, 2012) . It is crucial
especially in firms that are at a satisfactory level of performance since most
employees often don’t feel the need for change. Unfreezing is attained by
pointing out the existing gaps in the current model or denoting the growth
opportunities that the company could achieve if the outlined changes are actualized.
These tactics paint a different picture of the present situation on the
employees’ mind and ultimately alters their perception.
Physiological
disconfirmation is the act of focusing on the opportunities or gaps that exists
with the purpose of bringing the workforce to the point where it can notice the
benefits of changes and why the company needs it.
c.
Avoiding
Resistance and Communication Strategies
The
human resource has the mandate to ensure that during the whole process
resistance from the employees is avoided as much as possible (Pasmore,
2011) .
It could be occasioned by a breakdown in communication and, therefore, a proper
formula must be worked out by the management to avoid such from happening. In the
Atlassian situation the managers were few against the number of employees to handle,
it prompted the company to form smaller groups with new team leads so as to achieve
the desired goals.
d.
Comprehensive
Communication Plan:
To
realize the objectives of the change initiative, the company must ensure that
it sets a comprehensive communication plan that includes detailed information on
clear deadlines, challenges, dates, etc. It will help the company avoid
employees building up issues for themselves which may disadvantage the whole process.
By being in a position to answer the questions that may be raised or concerns
and identifying possible resistance. Therefore, the company can have confidence
in rolling out its change of plan knowing that the employees understand each
part of it precisely.
e.
Picking
the Right Messenger
The
human resource manager bears the task of identifying a messenger who may be
able to relay the change to be implemented, and the workers adhere. The process
often seems to be hectic as revealed by some researches done, that the
influence a person has over employees may make them accept his message or
reject. More often the message has always been passed through the CEO that
research shows not to be a good idea since most employs tend to exercise partiality
against the top leaders. Therefore, the human resource must be cautious of the
person selected to pass the information to be embraced fully.
f. Give Them Voice
The company must demonstrate its confidence and
value in its employees so that they may feel valued as part of the company.
Many firms while carrying out change fails to listen to the employees’ opinions
and end up failing since the workers may have reasons that are not addressed. Therefore,
it is vital that the company should take the views of the employees about the
process and weigh out how they can help in the success of the process both in
the long and short term.
3. Execution
Implementation stage of the change initiative
is considered demanding and stressful for both the leadership and the workers.
It requires a more systematic and structured approach due to its critical
nature. The human resource must focus on building employees trust in the change
and welcome the employees’ contribution to the process to boost their desire
towards seeing the success of the initiative. The stage may require repetition
of the activities already performed in the assessment and planning stages.
These include continuous training, encourage input, minimize resistance and
ensure effective communication while stressing on the visions of the change. To
have a successful execution stage, the leadership must consider the following areas,
equity theory, expectancy theory, correcting direction and creating small wins.
a.
Expectancy
Theory
The
expectancy theory is a crucial motivation strategy that organization must conceive
during the change (Northouse, 2009) . It makes the whole employee
body involved in the change initiative to feel that the projected plan is
achievable and the outlined plans if properly executed can be beneficial to the
company. It forms an essential value in the change process since in case employees
fail to recognize the value of the change then they will likely not be willing
to apply the required effort for the changes to succeed. The change effected by
the Atlassian Company has seen a significant success because of the execution
method used. Despite the employees failing to realize the need for change at
first, they do appreciate it and are giving positive reviews of the company.
b. Equity theory
Most
change initiatives tend to contain incentives or rewards for the employees. The
rewards may at times favor only a particular group of the workforce while
sidelining others, this can frustrate the employees to the extent that they may
disengage from the change process. It is, therefore, important that a change
initiative be involving, just like the Atlassian’s case where the bonuses were
now given to employees equally which motivated the workforce.
4. Sustaining
Sustainability
is ensuring that the company does not get back to its initial ways but sticking
to the new changes brought by the initiative. The human resource must guarantee
the establishment of support to the group that is championing the changes in
the company. If the leading pact that are helping in bringing the change burns
out, then it is highly likely that the employees may lose focus and a
possibility of failure. The support system plays a vital role in the system by
offering an avenue to exchange ideas with other agents involved and understanding
the challenges which each one faces.
Institutionalizing
is the process of initiating, managing and executing any change initiative or
the appropriate duration. It involves the actions that surround establishing
the changes that are effective for sustainability. The process should happen when
the company identifies the change that can result in higher levels of
competitive advantage.
a.
How
to Sustain/ Institutionalize Change
Once the change initiative is productive and makes
competitive advantage, what follows is the means through which it can be institutionalized
for the stipulated duration (Grace, 2012) . The steps involved
in the planning and implementing stages. The important once being appropriate
incentive allocation to encourage motivation, training, reducing resistance,
gaining a high level of commitment, and communication. The human resource
should continually remind the employees and those involved in the change initiative
what it exactly require since some are prone to forget and retract to old habits. This also plays a bigger role in making the
change initiative focused as part of the company model. The company should also
encourage a culture that is involves, adapts, open to change and dynamic.
Conclusion
Change
initiative is a vital process of the company, every company should ensure that
it adapts to the prevailing changing markets dynamics. For a company to succeed
in change initiative, it is necessary for the human resource management
professional to master a stability process that will ensure their work is
limited to working in a changing environment. The professionals should have a
clear direction on how to enact the change process in the long and short term
so as to enhance the business competitiveness advantage. For all these to
materialize the human resource needs to be useful in evaluating the
organization and its preparedness for change, set the avenue to actualize
change, accelerate its implementation and monitor its advancement, assist in
sustaining the momentum and know the appropriate time to institutionalize the changes
in the company.
Reference
Abrahamson, E. (2010). Change without pain: how managers
can overcome initiative overload, organizational chaos, and employee burnout.
Boston: Harvard Business School Press.
Grace, K. (2012). Effective professional development what
the research says. Edmonton, Alta.: Alberta Education.
Luijke, J. (2015, September 4). Atlassian's Big Experiment
with Performance Reviews. Retrieved from Management innovation exchange:
http://www.managementexchange.com/story/atlassians-big-experiment-performance-reviews
Northouse, P. (2009). Introduction to leadership: concepts
and practice. Los Angeles: Sage Publications.
Pasmore, W. (2011). Research in organizational change and
development. Amsterdam: Elsevier JAI.
Smith, R. (2012). The effective change manager's handbook:
essential guidance to the change management body of knowledge. New York:
Prenice Hall.
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