Management of Change
What is Change Management ?
Change management is defined
as a systematic activity to prepare an organization for ongoing environmental
changes in a business and operation context (Ahn, Thiagarajan,
& Ramasubramanian, n.d.).
To identify the need for change requires a thorough understanding of the
current state of the operating environment of the organization and a clear
picture of how things could be efficient (Rissanen, 2016).
According to Achieveit’s (2018) article, change management is simply defined as
an approach to prepare someone or group of people or organizations to a desired
future state.
According to Rouse (2014), change
management is about dealing with transformation of business goals, processes and technologies.
John Kotter’s 8 Step Change Model
One of the models created
by Professor John Kotter in 1996 is
Kotter’s 8 Step Change Model. The
model is used at strategic level of a business organization to change its
vision and transforming the organization subsequently. Kotter identified that
highly successful organizations know how to overcome obstacles that reject
anything new. According to his theory, the
central challenge in successful change is changing people’s behavior and not
strategy, systems or culture. There are 8 steps in the model as stated below:
Step 1: Increase Urgency
Most successful organizations begin their significant change by creating sense
of urgency. This is to realize the
benefit of change and encourage people to assist with the change.
Step 2: Build the Guiding Team
When urgency is created, powerful coalition of people with credibility, skills
are required to empower the change.
Step 3: Create a Vision
Then, a comprehensive plan should be created consisting of a vision and strategies to accelerate the
change. The vision should be able to convey a clear picture of what the future of
the adopted change.
Step 4: Communication for Buy-In
Next, communicating the vision to help people
know that changes are forthcoming. Communication should be done in a simple and
understandable manner.
Step 5: Enable Action
Empowerment encourages and
inspires people to adapt
change. This will help in gaining
support from others and inspire to focus on vision by removing barriers
that obstruct the change.
Step 6: Create Short Term Win
Short-term win is necessary to prevent the loss of momentum and to keep the
organization engaged in the change
activities. The success should be related to the change effort and must be
visible throughout the organizations.
Step 7: Do Not Let Up
The team should stay persistent to keep
the urgency level high enough to implement change. New goals need to be developed to maintain
the continued growth of change in organizations
Step 8: Make It Stick
Fostering change and make required changes
to focus on making the changes more permanent
How change management impact on employee attrition in
Hospitality Industry
Change and Job Satisfaction
Job satisfaction is "an
emotional state resulting from the evaluation or appraisal of one's job experiences. Job satisfaction is a
function of the perceived relationship between what employees want from his job
and what this employee perceives it as offering, there is a relationship between
job satisfaction and organizational commitment and a relationship between job satisfaction
and performance. Employees with higher job
satisfaction absent less. Organizations want to measure their employees'
satisfaction; the organization may need to create its own scales to measure employees'
job satisfaction.
Change and Performance
Performance refers to the degree
of accomplishment of the tasks that make up an employee's job. It reflects how well an employee is fulfilling
the requirements of a job. Performance is measured in terms of results.
Strategic change management can be a challenging task that requires careful
performance measurement before, during and after the process of change. The performance
measurement system allows the preliminary definition of financial and
non-financial measures to lead design and implementation of strategic changes.
This multidimensional performance measurement
system can improve the organization's ability to adapt and survive.
Change and Equal Opportunities
Equal employment
opportunity refers to the management's
attempt to ensure
that all persons have an equal
chance for employment, regardless of race, color, religion, sex, or
national origin. Equity theory subtracts
that employees respond to an inequitable employment relationship in terms of job
dissatisfaction, non-compliance or exit. The workers are deeply influenced by an
employer's consistency and sensitivity in dealing with issues of fairness,
justice and equality.
Change and the Relations between Employees
Many change management
interferences are based on the belief that communicating with employees about
change will promote cooperation and reduce resistance to change, while also
minimizing worry and uncertainty about change.
The social exchange perspective, the justice view perspective, the
industrial relations perspective, the legal perspective and the economic
perspective are five perspectives on the employment relationship and the way in
which trust is built. Positive actions directed at employees by the
organization and/or its representatives contribute to the establishment of high
quality exchange relationships, which based on employees trusting that the other
parties will meet their obligations in the long run. Because human resources
are the primary asset of these firms, personal and social relations become of
decisive importance.
Change and Employees' Loyalty
Loyalty is a complex construct. Loyalty is referring to an
employee’s level of attachment to the organization. Sometimes number of employees
despite of felling job insecurity they may also respond by staying loyal to the
organization, but it must be known that there is experiential consensus which
suggested that loyalty is negatively affected by change and uncertainty.
Changing management in hotels clearly effect on staff attrition. Above points
are explained how change management impact on employee. Change management
process activities influence significantly on employees' satisfaction, the
relations between employees, employees' loyalty, and employees' performance.
The psychological impact of change on employees is effective. So, some employees
preferred retirement rather than dealing with this new change. Uncertain,
ambiguous, or uncontrollable situations lead to decreases in job satisfaction.
Moreover, Employees with higher job satisfaction absent less. So, job
satisfaction is important indicator for employees' adjustment to organizational
change. Changes are negatively associated with job satisfaction and positively
related to intentions to leave an organization. As explained above having
strategic change management process will eventually lead to a reduction in
staff attrition in businesses.
References
Ahmed, M., Elias, A. N. & Toni, R. D. (2013) Impact of changing management
on hotels' employees.
Impact of changing management on hotels'
employees, pp.1-14 [Online]. Available at https://www.researchgate.net/publication/261361501_Impact_of_Changing_Management_on_Hotels'_Employees
. Accessed on 01st June 2021.
Hee, O. C. & Shanmugam, N. (2019) A review of human resource change management strategies in the digital era. International Journal of Academic Research in Business & Social Sciences, 9(3), pp. 521 – 531 [Online]. Available at https://www.researchgate.net/publication/333031001_A_Review_of_Human_Resource_Change_Management_Strategies_in_the_Digital_Era . Accessed on 01st June 2021.
There are, yet, some negatives to the change management process. In fact, this has to do with poor and improper procedures. Moreover, if the amount of resistance from the staff is not effectively treated throughout the process, it can derail and damage any task.
ReplyDeleteIf leaders did not learn the culture of the company, the gossip mill from other market leaders could circulate inaccurate or interfering with information about the transformation. Also, stakeholders and consumers need to held informed and brought in about the upcoming change.
If leaders fail to do so, customers could resist the adjustment. Moreover, they may choose to move through another organization.
A bad adjustment management schedule can be negative effect to any business. Change supervision is just managing the switch. And, with no plan to handle every step of the modification like before, during and after, the approach could fail at any time. In fact, it could bring down the whole company.
Although change is dangerous, the benefit is still outweighing the actual pitfalls. Change allows institutions to progress and stay on top with their industry within the uncertain industry world.
True there is a risk in change management process. However, with globalization there are certain things need to be changed according to the customer requirement and also in order to gain a competitive advantage in the industry. In my opinion though there is a resistance from staff to change, organization should implement new change management processes with a backup plan. Otherwise there won’t be any progress in the organization. That’s why HR department should implement strategies in line the organizational goals.
DeleteSuccessful change starts with individuals, and failure often occurs because of human nature and reluctance to change. Employees may also lack the specific behavioral traits needed to adapt easily to changing circumstances, which could decrease employee engagement and effectiveness and put organizational productivity at risk. How organizations treat workers during a change initiative determines how successful the change—and the organization—will be.
ReplyDeleteSuccessful change management must be well-planned, well-timed and well-integrated. Other critical success factors include a structured, proactive approach that encompasses communication, a road map for the sponsors of the change, training programs that go along with the overall project and a plan for dealing with resistance. Change leaders need to be active and visible in sponsoring the change, not only at the beginning but also throughout the process. Turning their attention to something else can send employees the wrong message—that leaders are no longer interested. That's why HR department so important, they must have a well plan strategy for effective communication with employees.
Thank you Madushani for the valuable feedback. I agree the point that Successful change management must be well-planned, well-timed and well-integrated. Sometimes employees are reluctant change because they are comfortable with the current working environment. As you mentioned, communication plays a vital role in change management process. That's why HR should come up with a strategic plan to get engaged employees to adopt the new environment.
DeleteWhen Organizations are going into change management to get effectiveness it's hard to change some employees. for that HRM should use strategies to prevent that situation and get quick effectiveness.
ReplyDeleteExactly when few employees are reluctant to change, HR should use a strategy to get involve all the employees accordingly to the new environment.
DeleteChange managment is the most important thing is to surview in the business field abd also its related to us if we change only we can susess and when the evoulation process strong one only will be retain.
ReplyDeleteThere are 3 levels of change managment in the orgnizations
1.Individual Change Management
2.Organizational/Initiative Change Management
3.Enterprise Change Management Capability
Appreciated your feedback. Due to the globalization, all the industries in the world change constantly. In order to gain a competitive advantage within the industry, organizations should implement changes accordingly even though the employees are not willing to change. Hence HR team has a responsibility to provide proper awareness programs about changing the environment. Also by providing learning & development programs will help to acquire new skills to adopt to the change.
DeleteIn any industry it will be difficult to make a successful change at once as most of the employees are reluctant to change. the main reason is that they are under their comfort zone in the existing working environment. Satisfying each and every employee would not be possible but up some extent it can be done through incorporating and grabbing employee ideas when managing the change.
ReplyDeleteIf I took my industry (Banking) in to consideration , over last decades several changes had been took place, one key thing is digitalization. Even the senior employees who was not that much digital savvy had to adopt to the change. So it is important to change the organizational culture while keeping job satisfaction of the employees.