Change Management Improving Training and Development - Case Study Example

CHANGE MANAGEMENT IMPROVING TRAINING & DEVELOPMENT TABLE OF CONTENTS Page 3 2 Diagnosis 4 3 Need for Change 5 4 Criteria for Change 5 4.1 Motivation 5 4.2 Creating a Vision 6 4.3 Developing Political Support 6 4.4 Managing Transition 7 4.5 Sustaining Momentum 7 5 Organisational Leadership 8 6 Human Relation Management 9 7 Recommendations 10 8 Bibliography 11 1 Abstract A diagnosis has been made of the situation at CF&F where there is a crisis due to high scale changes in both the top and middle management set-up. This has caused disruption and dissatisfaction both at the supervisory and worker levels. Strategic changes are necessary for retaining competitive advantage and as a consequence change management policies need to be adopted for effective administration. The theories and policies of change management and human relationship management have been explained to this end and recommendations have been made for the management. 2 Diagnosis CF&F has been undertaking a revamp of its entire management set-up to bring back its competitive advantage in the market place. It has changed the top and middle managers by inducting experienced talent from the industry. Internal promotions have been stopped and, even at supervisory level, fresh engineering graduates have been recruited to boost production and lower costs. As a result of these changes the Frontline Supervisors and the regular hourly wage workers are feeling unsecured about their future. The supervisors’ grouse is that the middle management is not interested in decision making and this leaves them vulnerable to the indifference shown by middle managers in their technical and managerial functions. As a result they take no active part in training workers which impedes their promotions and subjects them to fear of loss of job due to incompetence. Tradition requires organisations to respond to the external environment by bringing changes (Thornhill et al, 2000). But environmental change now occour with greater frequency and organisations have to learn to live with almost constant changes (Kanter et al 1992; Nutt 2001) and both external and internal factors are triggering these changes (Senior 2002). It is true that these changes are often significantly shock provoking in internal management (Ivancevich and Matteson 2002). Several internal factors are also critical to driving organisational change. Ivancevich and Matteson (2002) maintain that human resource issues and process considerations are the most common forces for change within the organisation. 3 The Need for Change Environments have a great impact on companies. In the face of increased pressure, competition, and a continually challenging business environment the decision for new strategies is not really a choice but an essential requirement for retaining competitive advantage. The ingredients of change are coordination, commitment and competencies. Coordination is the key to improving the organization. Commitment is the key to concerted effort to achieve the vision that magnifies the desired improvement. Competencies are the skills that are required to bring about the change 4 Criteria for Change However a change can be meaningful only if it is planned according to the needs but is also based on the following sound principles. (Cummings T.G. & Worley, C.G. 1997). 4.1 Motivation Topmost in handling change is to motivate the people to achieve the purpose of the change. This means highlighting the splendid future and contrasting it with the appalling past. However it has to be conveyed positively with rewards accompanying results. Effective communication will be required to generate support and participation at all levels. Teamwork and togetherness is the core issue here. Some amount of pressure is to be built up for this to show the benefits of change. To bring about active involvements in the procedure the employees have to be given a vision of the future. 4.2 Creating a Vision The idea is to create synergies for higher productivity and more concentrated efforts by cutting inefficiencies in order to develop competencies. The vision requires standing up for fair practices with genuine efforts backed by world class products and to inform the customers that they could depend upon products that measured up to the best standards in the world. The objectives are the values the vision creates and the value features are the consistent commitment to quality and service to be provided to the customers. 4.3 Developing Political Support For the change to be effective and for the realization of the company vision it is imperative that all the stakeholders support the various steps all along the way. The attempts have to be genuine and in common interest for benefits all round. The primary requirement is to have the knowledge of all sources of power in the company and to harness them and motivate them to work for a common goal. The ideal is to get them to agree on and obtain a consensus to avoid sudden conflicts of interest midway between any initiatives. The personalities involved are diverse which means that they have to be handled individually according to the status and mental make-up of individuals, but they have to be brought around to common and mutual understanding and respect. It is often possible by straight talk and sincerity is the best method; but often the goals are to be achieved through use of social networks or by adopting certain circumventions. Whatever the methods that may be employed, this aspect needs a constant and effective open communication channel to overcome any roadblock during the transition period. 4.4 Managing Transition In continuation of the change policies the change manager needs to plan activities that will involve the stakeholders to see through the transition period. These activities have to be practical and oriented towards achieving the targets as set out in the vision statements and need to be understood with clarity by the stakeholders performing them. The must know and feel that this is their vital and positive contribution that will result in realizations of larger goals. The activities have to be planned carefully and there should be a commitment by both the planner and the stakeholder to plan and perform respectively. Planning also entails dividing the tasks to teams and individuals towards a common objective to give the exercise a momentum that increases as the change process evolves. 4.5 Sustaining Momentum In order to finally achieve the targets momentum of change efforts need to be sustained and it is the management’s job to provide the financial, human and technological supports to keep it going. These are vital inputs that enable the teams and individual to rise up to the occasion, perform and deliver. Often emotional and psychological supports are also required to maintain or increase the morale and timely appreciations or rewards go a long way to motivate people. On the way people develop new skills and reach higher competency levels and both should be recognised early and suitably compensated. This will bring a radical change in the behaviour of the people and when this happens, finally the change can be considered to have been achieved. 5 Organisational Leadership There are some typical leadership behaviour patterns that are very critical to change programs. Jerry Porras and Susan Hoffer (1986) opine that open communication meaning sharing of intentions, listening and collaborating through making team decisions were most relevant for success in organizational development efforts. Similar conclusion was drawn by Teresa Covin and Ralph Kilmann (1990) when they surveyed several individuals. They noted two more traits of leaders. One, that they demonstrated discernible and unfailing support for the change programs, and secondly, they related the change to business needs. This calls for building of teams towards the effort and communicating the expected results in terms of profits, productivity, quality, performance, quality of work life etc. There are some problems too. The two biggest causes of failure are the spreading of rumours or circulation of wrong information. Mostly the sources of these are the outsiders and are a result of communication failure on part of the management. This has been highlighted by Larry Smeltzer (1991) who goes on to say that the worst kind of communication is a lean one which uses a memo as the means of conveying instruction or information. This is too cold and impersonal. They emphasize the importance of face-to-face meetings, the personal touch being vital and convincing. Every organization is beset with internal politics. It is common to find power groupings that aim at self development for individuals or groups of people. These are vested interests and can be detrimental to any change effort. It is suggested by Anthony Cobb (1986) that, in an organizational change effort, the investigation of its political centres must be carried out at three levels: individual, coalition, and network. People who hold powerful positions and have developed reputations for power, possibly through their influence reflected in important decisions need to be identified. This is the individual level. Power groups or coalitions are to be identified by the influence the group exerts over certain areas and the decisive role their opinions play in the final outcomes. These groups or coalitions are formed over a period of time and exercise great influence over key areas or resources of the organization. They have to be brought on board for the change program. Often, a whole group of people or team needs to be removed from the scene in change management process or they will block the change. At the macro level management needs to find out the network that functions within the organization. These networks can be between individuals, between coalitions and between individuals and coalitions. The network cannot be eliminated but it is to be converted to become positive towards change. 6 Human Relation Management Negative or Positive attitude of the management is explained by Douglas McGregor (1960) in his theory X and theory Y. According to him a negative attitude of the management, theory X, presupposes that workers are lazy, passive, without ambition, willing to be led and resist change. Hence management is through control, coercion, threats and punishment. This results in low productivity, antagonism, unionism and subtle sabotage. In contrast positive management, theory Y, believes that people are motivated, active and interested, ambitious, prefer to lead and are interested in change. Hence management is through open systems, communications, self-managing teams and peer controlled pay systems. The result is high productivity, bonhomie and care for the organization. 7 Recommendations There is an atmosphere of uncertainty and apprehension at CF&F today. This will negate the very efforts that have been made by the owners by bringing in fresh and experienced people in middle and top management. The need of the hour is for the top management to decide of firm and practical change policies, develop a vision, share it with the stakeholders and plan an implementation that is based on cooperation from all departments. Teams must me organised with specific tasks, goals must be set and when achieved should be rewarded both intrinsically and extrinsically. Training should be provided and if required even outside consultants should be used to push this programme. A dynamic leadership is essential for a successful change and this leadership should be available at both the top and supervisory level and must be having good communication qualities. Changes cannot be brought about by coercion; they need willingness which comes about by developing the feeling of belonging. This must be nurtured following the theory Y of McGregor. It is therefore recommended that for the smooth functioning of CF&F the management, especially the leaders should take cognisance of the above suggestions without delay. 8 Bibligraphy Cobb, A.T.,"Political Diagnosis: Applications in Organizational Development," Academy of Management Review, 11 (1986): 482-496. Covin T.J.and Kilmann, R.H. "Participant Perceptions of Positive and Negative Influences on Large-Scale Change," Group and Organization Studies, 15 (1990): 233-248. Cummings T.G. & Worley, C.G. (1997), Organisation Development and Change, 6th Ed., South Western, Ohio Ivancevich, J.M., Matteson, M.T. (2002), Organizational Behavior and Management, McGraw-Hill, Boston, MA, . Kanter, R.M., Stein, B.A., Jick, T.D. (1992), The Challenge of Organizational Change: How Companies Experience It and Leaders Guide It, Free Press, New York, NY, Nutt, P.C. (2001), "De-development as a way to change contemporary organizations", in Woodman, R.W., Pasmore, W.A. (Eds),Research in Organizational Change and Development, Elsevier, Oxford, pp.81-115. McGregor, D. (1960). The human side of organization. New York: McGraw Hill Porras J.I. and Hoffer, S.J.,"Common Behavior Changes in Successful Organization Development Efforts," Journal of Applied Behavioral Science, 22 (1986): 477-494. Senior, B. (2002), Organisational Change, Prentice-Hall/Financial Times, London, Smeltzer, L.R.,"An Analysis of Strategies for Announcing Organization-Wide Change," Group and Organization Studies, 16(1991): 5-24. Thornhill, A., Lewis, P., Millmore, M., Saunders, M. (2000), Managing Change, Pearson, london, Read More