Managing Organizational Change

The rate of major organizational change has accelerated dramatically in this decade. Global research and advisory company Gartner reports that the average organization has undergone five enterprise changes in the past three years and 73% of organizations expect more change initiatives in the next few years.1

As change initiatives have become more frequent and widespread, the importance of managing individuals through change has gained credence. Major changes can affect organizations across all levels. Many corporate leaders have concluded that failing to manage employees through change can be costly: Employees who are dissatisfied with or upset by change are generally less productive.

An employer that is serious about change management should develop a communication plan, a road map for change sponsors, integrated training programs and a plan for dealing with resistance. Having the right leadership and buy-in from the executive team is critical to unifying the organization behind a common strategic direction.

Another key is making sure all managers are equipped to coach their direct reports toward commitment. One-on-one conversations help individual team members analyse how the change will affect them, determine their level of commitment and choose how they will act.

Unfortunately, many managers are not adept at change management. The lack of change management skills among managers can make change initiatives difficult to achieve. A Towers Watson Change and Communication ROI Survey found that 87 percent of employers train managers on effective change management; however, only one-quarter of those employers found the training to be effective.2 To increase managers' skills, HR should provide training that is tailored to the specific change initiative and the competencies necessary to lead successful change.

Organizations can have a clear vision for changes and a technically and structurally sound foundation for making changes, but the initiatives can still flounder due to obstacles that arise. Employee resistance and communication breakdown are common obstacles faced during major organizational change.

Successful change starts with individuals, and failure often occurs because of human nature and reluctance to change. Employees may also lack the specific behavioural 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 changeand the organizationwill be.

Sometimes decisions about major organizational changes are made at the top management level and then trickle down to employees. As a result, why and how the

company is changing may be unclear. According to a Robert Half Management Resources survey, poor communication commonly hinders organizational change- management efforts, with 65 percent of managers surveyed indicating that clear and frequent communication is the most important aspect when leading through change.

To avoid this problem, HR should be involved in change planning early to help motivate employees to participate. Effective communication promotes awareness and understanding of why the changes are necessary. Employers should communicate change-related information to employees in multiple forms (e.g., e-mails, meetings, training sessions and press releases) and from multiple sources (e.g., executive management, HR and other departments).

Executive leaders and HR professionals must be great communicators during change. They should roll out a clear, universal, consistent message to everyone in the organization at the same time, even across multiple sites and locations. Managers should then meet both with their teams and one on one with each team member.

Leaders should explain the change and why it is needed, be truthful about its benefits and challenges, listen and respond to employees' reactions and implications, and then ask for and work to achieve individuals' commitment.

Successful 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 messagethat leaders are no longer interested.

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Question 1 (a) Examine 5 challenges for organisation change based on case study. (40 marks)

(b) Discuss and elaborate the Three steps firms can implement Organisational Change. (20 marks)