| It Seemed Like a Good Idea at the Time | Case study | | | UNIT: MBS 525 MANAGING, EVALUATING AND DEVELOPING HUMAN RESOURCES |
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TABLE OF CONTENTS PAGE
EXECUTIVE SUMMARY 2 1. INTRODUCTION 2 2. PROBLEM IDENTIFICATION AND ANALYSIS 3 3.1. A change in business strategy 3.2. A poorly constructed and aligned Performance Management System 3.3. Lack of a knowledge management system
3. STATEMENT OF MAJOR PROBLEMS
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They also failed in their strategic thinking towards the vision of a leading retailer for “all things outdoors” by not aligning business goals to the culture, human resource practices nor the needs of employees or the target market. 3.2. A poorly constructed and aligned Performance Management System (PMS)
PMS is a key tool in organizational change (Graetz et al. 2010, pp. 192). TGO had a successful PMS, evidenced by strong sales, highly motivated employees and an employer of choice. The newly introduced sales target focus, along with less incentives and the revoking of other benefits can be perceived as an unfair process with company lacking organizational justice. Not surprisingly, most of the TGO employees left the company creating large learning gaps for existing Templeton employees who replaced them in a rotational basis.
Acceptance of changes to the PMS is only possible if employees understand the need for it, participate in its development, are aware of how it will affect them, are trained in its use and it matches their culture (Graetz et al. 2010, pp.193). However, none of these factors were considered prior to executing the change.
3.3. Lack of a integrative knowledge management system (KMS)
Knowledge is an important source of competitive advantage, with studies showing that managing
Basic Underlying Assumptions are the beliefs that employees have about the everyday operation of a company. Chrysler’s employees began to believe that sales, market shares, and the awards were the most important aspect of their company; simply because that was what management kept pushing on them, probably in sales meetings (Kreitner & Kinicki, 2013). Their employees were so driven to get the quota to become sales person of the month and get a plaque with their name on it, and hung on the wall so everyone could see; that they got blind sided of what was really important (Kreitner & Kinicki, 2013). By striving to get this behavior down right, it is hard to begin to change back into what it was supposed to be or something new altogether because it has become a part of these employees belief of how things are to operate (Kinicki, 2013, slide 14).
Implementing change in an organization is complicated. It is important that a manager understands their role and responsibilities for which could very well be the success or failure of an organization. A manager should know how to handle staff resistance, and the areas that require change. There are processes that help management with assisting their staff members with adjusting to change and concentrate on the areas of importance. This process includes planning, assessment, implementation, and evaluation. The difference between a failed organization and a successful manager is when the manager has the ability to implement change with little disruption to
As the world changes, many organization may create changes to their company structure in order to remain successful and look good amongst shareholders. These organizational changes may be beneficial for the company overall. However, it may affect the remaining employee’s morale. Some organizations changes such as layoffs, reduce work hours, a stagnate in benefits increases and rewards may result in management trying to figure out a way to motivate and gain employees trust and loyalty.
Over the next 12 months the company has set-up strategies to help make the transition to a new management and communication system more smoothly for employees. First step will be set deadlines for the change. The next step will be companywide trainings on the new system by experts. The last step is to have an evaluation period for employees regarding the changes to allow for communication between managers and employees.
Fairest, J. (2014). Leading employees through major organizational change. Ivey Business Journal Online, , 1. Retrieved from http://search.proquest.com/docview/1556018438?accountid=12085
Large scale change is not a simple matter, the complexity and many moving parts can be distilled down into a couple models, however pulling off a successful transformation is extremely challenging. Unfortunately, the odds are not good for change. Research by John Kotter revealed that only thirty percent of change programs succeed. The main reasons for the failures are not related to resources or budgets, but behavior and more specifically, employee resistance and management behaviors that do not support the intended changes. These are the two leading causes that result in seventy percent of failures. Kotter first reported on this dismal success rate back in 1995, and quite honestly, there has been little progress at advancing the success of
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Change and how to implement the changes are main topics in meetings. The leadership team at MHSW believe that “involving the staff members
This paper will focus on a change initiative for Wal-Mart. Next, this paper will analyze how this change will impact the people, products, and processes. Then this paper will focus on the people portion, and provide recommendations to position this change initiative in a manner that results in high performance. Finally this paper will conclude with a summary of how the recommended approach to the change initiative will result in organizational excellence.
Poor organisation structure as the strategy is not a top down approach and does not focus on the critical success factors of the organisation.
In order to accept the change and contribute to making the change successful, people need to understand how the changes will benefit them. Not everyone will fall in line just because the change is necessary and will benefit the company. This is a common assumption and pitfall that should be avoided.
senior managers can deal with resistance to change, downsizing and casualisation of non-core employees. Kotter & Schlesinger (1979), as cited in Wood et al., (2006:504), argues that there are six ways to deal with resistance to change namely education and communication, participation and involvement, support and facilitation, negotiation and agreement, manipulation and cooptation and explicit coercion. Drug Inc. top managers have decided to downsize and casualise its non-core workforce to reduce labour costs and introduce internet selling as part of its operations. However, these changes can impact on employees and may lead to a decrease in job satisfaction, absenteeism, morale, uncertain and fear of future employment. Therefore the Drug Inc. managers implement its changes by implementing a strategic planned change management approach that deals with resistance to change processes. Makawatsukul & Kleiner (2003), argues that the key advantages of managers and change agents being actively involved in managing change is that they are able to inform employees about the impending change being planned with open and honest communication, and by expressing the reason for downsizing. In stage 2 the remaining employees should be involved in redesigning and improving their job roles and responsibilities. In stage 3 Drug Inc. generous remuneration offers should be made to the survivors of the downsizing
The lack of training provided means that there are other managers in the store who know more about certain aspects of the business than the TSM. This, along with the change management approach, has caused a discreet level of hostility on the shop floor – the TSM has been very autocratic in their management style. I acknowledge that there are many elements which contribute toward change management but have identified the following that were highlighted during this event: leadership, training, communication, preparedness for change and resistance to change.
Communication and its effects on employee’s perceptions towards organizational changes have been extensively studied. Communication, if poorly managed, can lead to negative consequences including employee’s frustration, uncertainty, change contempt (Frahm & Brown (2007), Bordia, Hunt, & Paulsen (2004)), psychological strain, low job satisfaction, and increase in turnover intention (Bordia, Hunt, & Paulsen (2004)). If effectively managed, communication can result in multiple positive effects such as employee’s positive perception towards change process, change acceptance (Frahm & Brown (2007)), perception of justice within the organization (Nese (2014)), and change-based momentum (Jansen (2004)). In this paper, I would like to explore how two communication approaches – programmatic and participatory - can be used to improve employee’s positive perceptions towards organizational changes. The paper is divided into three sections. It starts with a summary of employee’s perceptions towards organizational changes. The effects of communication on employee’s perceptions towards organizational changes will follow. The last section is a comparison of the strengths and weaknesses of programmatic and participatory approaches through the analysis of empirical studies.
Change was the main issue of this case. TMS was expected to change from a centralized company to a decentralized company. They wanted their GM’s to be more responsible for what was happening in their divisions, not only their successes, but their failures to. The GM’s were to take over the finance, human resources, marketing, and port-of-entry operations. TMC felt that this would make them look at long-term goals,