HR Changes for Liveco - Assignment Example

Name: Student number: Module title: Managing Change; HRM Approach Module code: BHRM605 Title of assignment: HR Changes for Liveco, Due date of assignment: Name of tutor: James Knight EMAIL TO LIVECO’S CEO, MICHIKO TAKO Email to: Michiko Tako Subject: Change problems facing the Human Resource and Information Management Departments and its impact on Liveco’s Company. Following the current changes being undertaken at the Liveco organization, I want to bring to your attention the challenges that the organization has had to go through. Basing on the strategy and structure theory forwarded by Alfred Chandler’s management theory, it is worth noting that changes in strategy are often preceded by a transformation in structure. These structural changes affect both the organization as well as the employees. The current problems facing the organization have emerged from the need for restructuring of the organization in terms of functionality as a way of saving on costs and encouraging productive use of resources. The main resources targeted were human resource, time resources and costs incurred in paying for building; building costs. This means that the organization intended to close down two buildings and encourage homeworking as well as booking hot desks in a bid to apply the formation of a virtual office. Additionally, the organization went ahead to integrate the information management department with the human resource department which led to a conflict of interest. Each department failed to define its power in the departmental merger whereas the management was too slow on defining respective duties for the merged departmental heads. Worse still, the IM department overshadowed the HR department and embraced a faster change of strategies without consulting with the employees. This created another collision between the employees who found the new strategies oppressive and subjective. The communication channel was also inconsiderate since the employees were left pending on the immediate changes that would soon take over the work place. The working hours were redefined to a fixed schedule of standard working day as 8.30-6.30 with no early or late workers, no flextime or hours in lieu of time off. Coffee breaks and lunch hours were defined to a fixed hour rate with restrictions on eating at the desks. Therefore miscommunication has led to employees resigning and others have been absorbed by competitors. The remaining employees have become resentful and this has affected their performance negatively. This calls for quick recovery measures. REPORT ON HUMAN RESOURCE CHANGES FOR LIVECO COMPANY INTRODUCTION Change is anything that causes alteration in the way things have been traditionally designed to function. It varies from changes in structure, strategies and organization or human resource. This report is basically focused on studying the application of change theories and models into the immediate contest of the circumstances faced at Liveco Company. The C.E.O who is Mr. Michiko Tako is concerned about the way the organization has been performing lately despite the strategic change in policies. Even though the change was intended to save on production costs and motivate the employees through introduction of a reward scheme, it becomes apparent that the new strategies are not designed properly and they are communicated so fast that the employees find them suffocating (Vesa, 29). The circumstances faced by Liveco thus stimulates an endearing need to research into various change models and factors that might have led to a collapse in the implementation process. Apparently, Isolda is an experienced change consultant who has worked for eight years and she is needed to address the problems facing Liveco. Among the problems that were shared through a digital shared teleconferencing system was the need for change in the way Liveco operated. Citing to the fact that the company had the aim of cutting down on building costs, it incorporates the use of a virtual team whereby the organization had to psychologically prepare employees for the closure of two buildings and encourage the workers to embrace homeworking and booking of hot desk spaces. This was to be followed by a comprehensive reward scheme where employees would be motivated into accepting change. Another problem faced by Liveco emanates from the changes undertaken by the merger of the Information Management department together with the Human Resource department which in addition to encouraging conflict of interest, there is conflict of functions which lead to domination of one department. Concurrently, the IM department led by Danny Grant overshadows the HR department and goes ahead with inconsiderate and speedy implementation of the change without involving the employees. The information is harshly passed on to them through emails which creates tension among employees who are alarmed over the security of their jobs. The third problem emanates from the change in attitude and resentfulness which ensues after the traditional work culture is eroded away. The employees are not at ease seeing they transform into a new work culture which they find bullish and oppressive. The new work culture emphasizes on fixed work schedule ranging from 8.30 am to 6.30 pm. Formerly there was no online accountability logs and employees could work tasks basing on the project deadlines and not a fixed work timetable that even prohibits employees from eating at their desks. The old work culture laid more emphasis on the need for team work but the new culture had introduced individualism and personal accountability which demotivated the employees into even performing worse than it was expected (U.S. Bureau of Labor Statistics, 91). LITERATURE REVIEW Many psychologists have made articles, journal and research on psychology. Generally, change is among the most discussed topics at the work places and employers are even more afraid of change than employees. if change could be avoided then no CEO would want to embrace change but the problem comes with the realization that change is dynamic. It is unavoidable and given the possibility of increased profitability and efficiency associated with some structural and strategic changes, C.E.O’s and managers are forced to consistently work on changing the organization (Ramaswam, 17). The change implementation process is the trickiest aspect of the change process because it needs consistent communication and consultation. Basically Isolda is charged with the noble responsibility of managing change at Liveco. With reference to the case study on Liveco, it is evident that the change structure is lacking in several aspects. The most lacking components of change is a failing communication network and the sudden introduction of a new organizational culture which is a complete overhaul of the traditional work culture. Even though the organization might have a profit maximization strategy but the employees are made to strain at the expense of their own benefit. To better understand why there is need for structural change before strategic change, there is need to understand Alfred Chandler’s management theory (O’Brien, 16). The theory emphasizes on the need for restructuring of the organization has to be connected with advancement in technologies and market demand (Robert & James & Michela, 66). This implies that there must be a force behind the need for change. Liveco is interested in managing the costly expenditures spent on rental building hence advances towards incorporating home workers. The structure motivated the description of a corporate strategy which was aided by formulation of long term goals, mission and objectives. The main course of action for change as described by Chandler’s management theory involves strategic allocation of resources which led him into describing structure as an organizational design which guides the administration of these strategies (Merkle, 9). Liveco’s problems emanate from changes in organizational strategies which fails to consider relevant administrative changes that comes with the refashioned structure. Secondly there is the Elizabeth Kubler Ross Change theory which defines the five stages involved in change (Jonathan, 41). The stages might not be consistent from one person or organization to another but they follow a specific pattern that is relevant in facilitating the understanding of change. The stages consider the reactions of people involved and understanding them would be applicable in analyzing Liveco’s Company current scenario. Understanding denial, anger, bargaining, depression and acceptance would have been useful in convincing the employees that the organization needs to go through change. The change in psychology could then induce the employees into a coping process and those who would have found the process unbearable made to quit or transferred to a department where they would be comfortable working in (Martin & Ronan, 3). The employees who would be uncomfortable with the new culture could be slowly oriented into the new culture to reduce the instances of self-denial, bargaining, depression and motivate them into accepting the new organizational work policies (Robin & Zhang Yi& Almaz & Chak, 91). For instance, Kit Joseph who was the best manager at Liveco would have been encouraged to remain at the organization with the promise of a better reward and offs during the weekend to attend to his family needs. This could have been done better by giving the HR department more charge over the IM department which does not believe in negotiations or negotiated communication. METHOD There are several models that could have used to effect change at the company. The most suitable change model applicable to the current situation of Liveco is the congruent model which attempts to improve the performance of an organization by striking a balance between people, structure, culture and tasks. These four elements are very vital and if they are managed with a lot of appropriation and aligned into an appropriate congruent, then they bear the greatest performance (Soumendu & Arup, 41). The congruence model could be effective in helping organizations avoid pitfalls arising from bureaucracy, resistance to change, lowered efficiency and slipping work quality. The congruence model offers a systematic connection between the root elements which enable an organization to perform exemplary (David, 15). The elements are interconnected as illustrated in figure I below. Figure I: The four elements that make up the congruence model and how they relate to strategy and performance RESULTS/ FINDINGS Conducting a critical analysis of the case faced by Isolda reveals that the organization failed in implementing change. Kubler Ross noted that change is a continuous process that must be planned for in advance. The planning involves doing each and every activity at an appropriate time. Therefore Liveco failed in both timing and communicating change. The congruence model was also not applied in relating the elements of people, their job description (work), the organizational structure and culture (John, 11). DISCUSSION/ ANALYSIS Chandler’s management theory was applied properly because the organization changed its structure in terms of shrinking departments. This was done by merging two departments that perform relatively similar duties but the mistake is that the duties of the emergent department were not specified forehand which leads to problems. Most of the problems faced by Liveco emanate from this merger whereby the communication process is blurred. In case there was a proper communication channel between the administration and the employees, the transition in strategies could have been streamlined (Hans, 32). By applying the Kubler Ross change theory, the management could have communicated with the employees on the need for change, the benefits that would be accrued from the change both at a personal and organizational level (Wright, 12). For instance the organization could have gained from saving costs on renting buildings and time wastage while the employees would have gained through the reward scheme hence there would be less resistance, grief, bargaining, anger whereas there would have been ready acceptance of the new policies. The congruence model defines a process that integrates all the aspects right from managing change as stated in the Chandler’s management theory as well as the theory forwarded by Kubler Ross. The end result could have been an interactive session between the four elements which would lead to a good fit between strategy and performance. The management could have considered working on the need for a transformational system where the employees would be slowly induced into a new organizational culture. This would have motivated them into accepting change and the organization would have gone through a steady and smooth transition process (Conaty & Ram, 7) CONCLUSION AND RECOMMENDATIONS The focus of this report is to highlight on the main points that bring about change and how best the changes can be implemented without interfering with the overall performance of the organization. From reading the case study, we realize that the benefits accrued from change can be positive or negative depending on the way the organization goes about the change process. Basing on the two theories and the congruence model, the organization had a better way of managing change but due to challenges in communication, it ended up losing out its best staff to competitors who were speculating for such opportunities. 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