The Human Resource Department of Babcock - Research Paper Example

Case Study Assignment about Babcock Executive Summary Babcock is one of the most effective engineering support services companies in the United Kingdom. It aims to expand its functioning in different countries and hence organisational change is required. The key issue faced by the company regarding the change is the difference in the attitude of the people regarding the acceptance of change. The difference in the perception of the people due to the cultural change was another issue faced by Babcock. It was ascertained that the change is resisted due to the fear of loos of job and freedom. A literature review was conducted to get a proper analysis regarding the subject. From the analysis and findings, it is noticed that organisation faces an issue regarding change. The change can bring both positive and negative implications if not implemented properly by communicating the reasons for change to the employees. Change is inevitable and so for the long-term survival of the business it is significant for the employees to accept change as this will help in getting more talent with different perceptions. To uphold the change and to motivate the management and employees, it is important to educate them regarding the positive aspects. Moreover, the human resource department of the organisation plays a vital role as it not only motivates but also aids in retaining talent. Table of Contents Executive Summary 2 1. Introduction 4 1.1 Definition of Change 4 1.2 Background to Babcock 4 1.3. Problem Statement 5 1.4 Scope of the Report 5 2. Literature Review 5 2.1 General Literature Relating To Change & Its Historical Roots 5 2.2 Specific Literature Relating To Identified Areas 7 3. Method 8 4. Results and Findings 10 5. Analysis 11 5.1 Relate Findings to the Models Identified In the Methodology 11 5.2 Relate Your Findings to the Literature 11 5.3 Differences between Theory and Practice 11 5.4 What Might Be the Impediments to Implementing the Ideas 12 6. Conclusion 12 7. Recommendations 13 References 14 1. Introduction 1.1 Definition of Change According to Project Management Institute, “change management is a comprehensive, cyclic, and structured approach for transitioning individuals, groups, and organisation from a current state to a future state with intended business benefits” (Project Management Institute, 2013).The dimension of change in corporate is an important constituent to accelerate business performance in the rapidly altering business environment. Change is important for the sustainability in the competitive environment (Todnem, 2005). 1.2 Background to Babcock Babcock is one of the foremost ‘engineering support services’ establishments in the United Kingdom. Babcock has strong reputation due to its ultra-reliable delivery over the decades. Defence, telecommunication and education sectors are the areas wherein the company provides engineering supports which help in building the brand image. The company had generated revenue of £3.2bn in the year 2013which was possible as it is trusted to deliver by the partners. Babcock has three core competencies such as managing the infrastructure along with assets, delivering the programs as well as projects and incorporating the engineering proficiency. Moreover, the organisation operates within the UK and overseas with 26,000 skilled knowledgeable employees to deliver excellent services (Babcock International Group Plc, 2014). 1.3. Problem Statement Babcock has expertise in the field of engineering and hence aims to expand its business in the overseas domain. The key problem faced by the company in the present scenario is the issue related with diversified culture of the employees in the organisation. The difference in the perception of the employees is one of the major issues faced by Babcock. The resistance of the employees to change, communication and issues with the leadership skill are the various challenges faced by the company. 1.4 Scope of the Report The aim of the report is to deal with the issues faced by the company. The other aim is to undergo a secondary research in order to identify various aspects involved with the issues faced by the company with proper findings along with recommendations. 2. Literature Review 2.1 General Literature Relating To Change & Its Historical Roots According to Kuipers & et. al. (2010), change is a continuous process which is important to meet the altering needs of the customers for the long-term sustainability of the organisation. It is an ever-altering need of the organisation at every possible level such as the operations, human resource or at a strategic level. In order to bring the changes in the organisation, it is important to have an influential perspective through the use of the “Planned Approach” as stated by Lewin (1952; Barnard & Stoll 2010). The theory is of significance as it states the process of change involves three stages. The first stage is “unfreezing the current behaviour”, then “moving to the next new behaviour” and “finally refreezing the new behaviour”. Furthermore, in the view of Project Management Institute (2013), change is successful when the managers have an in-depth knowledge about the working of the organisation along with its strengths, structure and its strategies. The expertise of the manager regarding the change helps in mitigating change resistance. Azzone & Palermo (2011) postulated that change in itself is not static and hence to gain competitive edge from the change in the organisation, it is important to evaluate various policies such as the human resource policies to mitigate the issues with regard to transformation. Change at times leads to a negative set of outcomes, instead of enhancing the performance of the employees it might lead to an environment which is stressful as delineated by Pick & et. al. (2013). This might affect the Human Resource Management (HRM) directives and its allied policies regarding the retention of the employees. In keeping with the view of Kickert (2010), change lays an impact on the structure of the organisation as it affects the working environment and the employee behaviour. The dimension of organisational change is interrelated with the organisational strategies. Due to the change in the management, the need for skilled employees and managers is increasing to monitor the workforce and innovation (Tidd & et. al., 2011). It is noticed that Cameron & Green (2012) are of the view that restructuring the organisation is of importance for the process of expansion of the business to be smooth and comfortable in various areas. 2.2 Specific Literature Relating To Identified Areas In the view of Janicijevic (2012), organisational change initiative needs to match with the culture of the organisation and the strategy in order to increase the efficiency of the employees. Change brings diversified employees in an organisation of different cultures which creates a positive impact on the organisation. Cultural differences would help to implement various strategies, models and leadership styles for enhancement of the efficiency. Mannion & et. al. (2010), have provided an overview on the significance of culture difference initiated due to the change in the management. Difference in cultural workforce would assist in delivering quality and high performance by the employees and assist in sustaining the business with innovation. Furthermore, organisational change faces resistance from the employees and the management as it alters the process followed by the administration of the organisation for years. It is viewed that even if the transition is smooth, resistance is often faced as the employee fears the loss of their jobs and expect variation in the attitude of the management due to change as referred by Yılmaz & Kilicoglu (2013).Organisational change is treated differently by people, few view it as a factor for success and few state it as a negative element. Resistance is of various types, as noted by Lunenburg (2010), organisational change at times gives rise to blind resistance, ideological resistance along with political resistance from the place of change. According to Boohene & Williams (2012), organisational change is implemented to bring positivity in the environment and to adapt to the volatile environment. The emergence of resistance is due to various factors such as habit, inconvenience or fear of loss of freedom, lack of knowledge and the fear of unknown (Lunenburg, 2010). Tidd & et. al. (2011) are of the view that to avoid the cultural differences and resistance due to the change the employees need to be well-educated and communicated about the positive aspects that change brings in to the organisation (Tidd & et. al., 2011). 3. Method Babcock as an organisation aims to be one of the leading engineering support providers not only in the UK but also in the overseas markets as well. In order to expand the business, change is required in the organisation for ensuring long-term sustainability and value for the stakeholders. Before making the changes in the organisation, a diagnostic model is implemented by Babcock to analyse the alterations required to meet the objective of the business. Correspondingly, The McKinsey 7- S framework model has been considered which has seven interdependent factors i.e. Strategy, Structure and System which are 3 hard “S” along with “shared values”, “skills”, “style” and “staff” which are the other 4 soft “S” (Tompeters, 2011). The model acts as a checklist to the organisation’s present planning criteria. Strategy reflects the expansion of the business with the help of the expertise it has for competing against its competitors by providing innovation and change. Structure helps to evaluate the communication structure followed by the company. In Babcock, the hierarchical communication structure is followed which is a top-down method. This needs a change as the employees are not able to provide their opinion regarding the plans. System factors are useful in determining the present performance system. Babcock takes into consideration performance across a broad range of industries to evaluate the employee appraisals. This motivates the employees to perform better. Moreover, Babcock hosts an internal system focus to have excellent practices, by analysing the external environment for improving current working activities. These systems have operated well in the UK with low turnover of staff, high commitment and performance working teams. The company has a shared value wherein work is given importance as the company is proud of its deliverance. The cultural differences in the organisation would be high if it is expanded as Babcock follows military origin. Moreover, the model states that the leadership style follows hierarchy and the staffs resist the change due to lack of the knowledge. Babcock has high skills as they have expertise in the field of engineering with 26000 employees. Thus, the model has helped in identifying the 7-S of the business. In order to resolve the issues, John Kotter’s Change Model is required to be followed by Babcock. The change model has eight different steps. The first phase is to create the need for urgency among the people of Babcock so that they get motivated to undergo the change for the betterment in the individual as well as organisational aspect. In the second phase, a collision is needed to be formed to convince the employees regarding the necessity of change. The next stage states the development of the clear vision which in case of Babcock is expansion in the overseas. In keeping with the fourth step, sharing of the vision with the stakeholders of Babcock will help in avoiding the resistance and the fear of external forces. Moreover, the fifth step is to empower people to clear the obstacles, which can be done by motivating the employees and making them understand the importance for change. The other steps such as anchor the change, consolidating and secure short-term wins help in incorporating the change. This can be done by making the employees understand the importance that the diverse culture would bring and the success change can bring. As people prefer innovation which is possible by bringing change (Naughtin, n.d.). 4. Results and Findings From the above scenario, it is observed that Babcock, one of the leading companies in engineering support services is undergoing organisational change wherein the company is facing issues related to the cultural differences. It has been observed that any organisational change is resisted by the employees as they become insecure regarding the change. This is due to a lack of communication as in the case of Babcock. The observance of top-down communication within the organisational dimension made the employees worry regarding the facts about change management. It is viewed that expansion brings cultural differences as different people have dissimilar views. This is beneficial if taken into account in a positive manner. The diversification caused due to the change may also lead to a negative impact due to the differences in perception among the people of the countries. Moreover, it becomes difficult for the business to follow the core values of the company due to the differences in the culture of the organisations in the country and the people. Conversely, change is important for the sustainability of the business as it brings innovation due to the various opinions and talents. The recruitment process is important as with the incorporation of a better recruitment policy, enhanced productivity and sustainability of the organisation can be attained. Hence, HR plays a vital role in motivating and exercising the changes. 5. Analysis 5.1 Relate Findings to the Models Identified In the Methodology In accordance with the findings, it is observed that change is essential for the long-term success of an organisation. Cultural differences can be effective if proper talent is retained by the HR. The change model states that it is important to motivate the employee to bring changes by communicating the plans of the management. The resistance by the employees is due to the fear which is to be eradicated by motivating and communicating the positive aspects of change. 5.2 Relate Your Findings to the Literature It is observed from the findings that cultural differences are caused due to the fear of insecurity of loss of job and due to the differences in the perception as reflected by Janicijevic (2012). Furthermore, the findings reveal that the resistance is of various kinds which are due to a lack of proper information from the management. The gap amid the people, culture and the structure of the organisation allows people to resist the change (Yılmaz & Kilicoglu, 2013). Additionally, it is viewed that employees would gain from the change as it will help them in accumulating more knowledge and skill along with ascertaining the growth of the company i.e. Babcock. 5.3 Differences between Theory and Practice The Lewin’s model reflected in the review has no applicability in the current business of Babcock. The steps involved in the theory are not practically implemented in the business to mitigate the issues faced by the employees regarding the change in the organisation. It has been observed that there is differences in the theory and practice as witnessed in order to bring changes in Babcock and derive growth as a leading engineering support service provider. The Change Model implemented is the Kotters Change Model in Babcock. 5.4 What Might Be the Impediments to Implementing the Ideas The obstructions that might be faced while implementing the ideas can be a lack of support or interest from the employees regarding the change and improvement. A lack of flexibility and fear of coming out of the comfort zone might lead to obstructions while implementing the change model for the growth and betterment. The ‘threat to power’ from the unknown source can be a reason of obstruction (Barnard & Stoll 2010). 6. Conclusion Organisational change is important for the success of the business. It is observed that people resist change due to cultural differences and owing to the fear of losing their job. It is observed that by motivating the employees and by educating them, the transition can be smooth and successful. The prime strategy of Babcock is to expand its business and thus the change in the organisation is important for its sustainability in the overseas countries. The change is implemented by motivating the employees and communicating the positive sides that the change can bring in the individual as well as organisational success. 7. Recommendations Who to Execute Steps to Execution Timings for Rollout Notional Costing Intended Benefits Management and Employees Education and communication Participation and involvement Negotiation and agreement 2 months Moderate costing Long-term sustainability of the business in various regions. Personal growth of the employees by gathering more knowledge and skills which will help to increase efficiency. References Azzone, G. & Palermo, T., 2011. Adopting Performance Appraisal and Reward Systems a Qualitative Analysis of Public Sector Organisational Change. Journal of Organizational Change Management, Vol. 24 No. 1, pp. 90-11. Barnard, M. & Stoll, N., 2010. Organisational Change Management: A Rapid Literature Review. National Centre For Social Research, pp. 1-10. Babcock International Group Plc, 2014. About Us. Babcock. [Online] Available at: http://www.babcockinternational.com/about-us/ [Accessed on February 27, 2014]. Boohene, R. & Williams, A.A., 2012. Resistance To Organisational Change: A Case Study Of Oti Yeboah Complex Limited. International Business And Management, Vol. 4, No. 1, 2012, pp. 135-145. Cameron, E. & Green, M., 2012. Making Sense of Change Management. Kogan Page, pp. 1-372. Janicijevic, N., 2012. The Influence of Organizational Culture on Organizational Preferences towards the Choice of Organizational Change Strategy. Economic Annals, Volume LVII, No. 193, pp. 25-51. Kuipers, B.S. & et. al., 2010. The Management of Change in Public Organisations: A Literature Review. Public Administration, pp. 1-45. Kickert, W. J. M., 2010. Managing Emergent and Complex Change. The Case of Dutch Agencification. International Review of Administrative Sciences, Vol. 76, No. 3, pp. 489-515. Lunenburg, F.C., 2010. Forces For and Resistance to Organizational Change. National Forum of Educational Administration and Supervision Journal Vol. 27, No. 4, pp. 1-10. Mannion, R. & et. al., 2010. Changing Management Cultures and Organisational Performance in the NHS (OC2). Queens Printer and Controller of HMSO, pp. 2-6. Naughtin, P., No Date. Leading Change by John P. Kotter. Docs. [Online] Available at: http://www.metricationmatters.com/docs/LeadingChangeKotter.pdf [Accessed on February 27, 2014]. Project Management Institute, 2013. Managing Change In Organisations: A Practice Guide. Project Management Institute, pp. 1-127. Pick, D. & et.al., 2013. Special Issue Proposal on ‘Organizational Change and Public Sector Work. Journal of Organizational Change Management, pp. 1-3. Tidd, J. & et.al., 2011. Managing Innovation: Integrating Technological, Market And Organizational Change. Innovation, pp. 197-238. Todnem, R., 2005. Organisational Change Management: A Critical Review. Journal of Change Management, Vol. 5, No. 4, pp. 369 –380. Tompeters, 2011. A Brief History of the 7-S ("McKinsey 7-S") Model. Docs. [Online] Available at: http://www.tompeters.com/docs/7SHistory.pdf [Accessed on February 27, 2014]. Yılmaz, D. & Kilicoglu, G., 2013. Resistance to change and ways of reducing resistance in educational organizations. European Journal of Research on Education, Vol.1, No.1, pp. 14-21. Read More