Change Management - Coordination among Employees and Managers, Regular Feedback, Employee Retention - Case Study Example

Work & Employment Executive summary Human resource forms one of the most important intangible assets of any organisation. They are also essential forthe organisation’s sustainable growth and development. As a result, it is extremely necessary to recruit and retain right employees in an organisation. The current study has analysed contemporary recruitment and retention challenges faced by contemporary HR managers. Traditional recruitment strategies such as, formal interviews, are increasingly becoming obsolete and managers are supplementing their recruitment strategies with modern day techniques such as, lie-detectors and psychometric tests. Social media as well as employee referrals are becoming important channels for finding and recruiting right candidates. The study also focussed on key communication challenges encountered by managers and employees. Employees from different generations exhibit contrasting perceptions regarding work and managers find it extremely difficult to communicate their messages through one single channel. The study has described change management process and has recommended strategies such as, proper coordination among employees and managers, more leaders at the ground level and regular feedback and consultation from stakeholders for implementing a smooth transition. Finally, effective employee retention strategies have been discussed. Contents Establishing an effective recruitment process 4 Key communication challenges between employees and management 7 Change management 8 Recommendations for smooth transitions during a change process 9 Employee Retention 10 Reference List 14 Establishing an effective recruitment process Recruitment forms a core part of the central activities underlying human resource management namely, acquisition, development and reward of workers. This often forms an essential part of the work of human resource managers or designated specialists within organizations. As per Mullins’ description (2010, p 485), ‘If the HRM function is to remain effective, there must be consistently good levels of teamwork, plus ongoing co-operation and consultation between line managers and the HR manager.’ While recruiting candidates for the position of sales head or country head-sales, it is critical for HR manager to understand the soft skills and competencies, apart from required qualifications and experiences. Alignment with line managers of respective departments ensures that HR managers have proper information about latest changes in specific departments such as, marketing and IT and that subsequently candidates with appropriate knowledge and skills are hired. In order to establish an effective recruitment process, it is essential to identify whether or not there is a vacancy to be filled. HR managers should undertake a more questioning as well as strategic approach while filling a vacant position. For instance, before filling up vacancies that are created because of employees leaving, HR managers should first review the position itself and study its shortcomings or any alternatives so as to make the job more attractive and satisfactory. For instance, if employees are leaving jobs due to stress and overload of work, HR managers can make strategic changes such as, transforming the work on a job share, flexi-time or part-time basis. Otherwise, managers can also consider automation of the job description and lowering overall job load as well as time (Lewis, 2000). The second important stage in an effective recruitment involves attracting right candidates. In case of specialised or senior posts, it is best to hire a good recruitment agency as this will be more efficient and cost effective compared to major advertising. However, in case of mass recruitment, such as, hiring sales executives nationwide or acquiring talents from diverse background; mass advertising channels such as, newspapers, job magazines or online job portals, will be most appropriate. Different organisations have separate policies for recruitment. For instance, majority of government firms prefer mass advertising for ensuring equal opportunities for all. HR managers should, therefore, tactfully review and consider most effective recruitment methods such as, job specifications based on competencies and overall objective of the job. Marketing vacancies involving decision making should be reviewed on the basis of competencies; whereas, more traditional jobs such as, finance or IT, can follow formal specifications and job descriptions. Finally, below are few advertising channels, which are frequently used for effective recruitment. Internet recruitment Rapid advancement in technology has transformed internet into one of the major recruitment medium among recruitment agencies as well as employers. According to global estimates, the business of online recruitment had reached 3.8 billion Euros in 2005 (Pilbeam and Corbridge, 2006). It is the most preferred medium for recruiting technical and IT professionals, graduates as well as middle managers. Choices are extensive in this channel; attracting applicants directly to the company’s website, setting personal recruitment website or positing requirements in specialised sites (Hopkins and Markham, 2003). Employee referral Employee referrals, though an old process, has been deemed as a significant transformation in the past few decades. Benefits of this process include reduced costs of recruitments and ensuring that applicants are exposed to a more realistic idea about the job. This is also a positive sign that candidates are willingly trying to work in an organisation (Purcell, et al., 2003). Social Media According to a survey, more than 80 percent corporate HR professionals are willing or intending to use social media sites for recruiting and selecting candidates. While LinkedIn is the top choice, Facebook and Twitter are also becoming viable channels for recruitment (Forbes, 2013b). An effective recruitment strategy may include following or researching potential candidates on these social media sites, especially while recruiting experienced or high profile candidates. The next stage of an effective recruitment process is selecting the right candidates. It is a long, stretched process involving sophisticated selection methods. Traditional methods rely on single information sources or channels, which are increasingly becoming obsolete and insignificant. Selecting right candidates starts from the filtering process itself. Nonetheless, recruiters should look into factors such as, co-curricular activities, long-term goals as well as interest and hobbies as these attributes are mostly ignored. Some of effective interview techniques include structured interviews, behavioural interviews, situational interviews and test of competency and psychometric tests. In order to make the interview process more fruitful, recruits can also apply techniques such as, lie detectors, behavioural assessment and team building exercises. These interviews and tests should always be supervised or conducted by trained HR professionals. Giving candidates opportunities to question can also be helpful for recruiters for assessing them. Key communication challenges between employees and management Managers in the present business environments are increasingly facing challenges in terms of handling their employees. With the increasing diversity in workplace, there is also a growing difference in general work force. Issues are arising because of contrasting mindsets as well as styles of communication among workers from different eras. Baby boomers are the oldest working generation (1946-1964); they are competitive, strictly disciplined and give importance to rules and policies. Next generation workers are called Gen X (1965-1977); they are sceptical as well as independent-minded. Those born from 1978 onwards are known as Millennials or Gen Y; they like technology, feedback and teamwork (Forbes, 2013c). It is very clear from the above differences that friction generated presently is much greater compared to few decades back. In particular, new age managers face stiff difficulties while dealing with older employees. For example, a particular survey on employees from different generation and backgrounds revealed that miscommunication was more among senior employees as they fail to understand the designated tasks or projects (Forbes, 2013a). Another statistics from the survey revealed that communication and interaction was least preferred among Gen X, which is why managers from Gen Y or Z misconstrue them as rude or disrespectful, aggravating the situations. In these situations, it becomes extremely difficult for managers to interact or communicate with the workers and HR managers need to develop separate tactics for each generation. Miscommunication between employees and managers often results in attrition, disgruntled employees or even legal headaches. According to the theory of administrative management, organisations following pre-defined policies and planning produce better results. However, in the current business environment that is dominated by Gen Y, rules and policies are regarded as interruptive and disengaging. Even so, bureaucratic theory, as described by Max Weber, suggested that authority and an autocratic environment are best approaches for effective management within organisations (Weber, 1992). Organisations following this work culture face communication challenge with their Gen X and Y workers as the latter are more independent and creative in their work approach. Cultural diversity has witnessed a significant increase in the last few decades. As a result, gap between employee perception and management objectives has widened. This has led to a rise in misunderstanding among employees and management. For example, employees from one country working in a subsidiary or branch in another country can face issues while communicating with their employees. Change management Although the objective behind changes is usually overall improvement of organisations, majority of the present literature suggests that these changes are relatively disturbing and de-motivating for employees. For example, a new acquisition or joint venture strategy might be profitable for the organisation; but, employees in that case go through difficult situations such as, retrenchments, increase in work load, adjustments, uncertain roles and job responsibilities, increase in control and rules as well as failure in the new work environment. Even strategies such as, rewards or promotions, in these situations can cause considerable distress among employees. Various other studies have identified that employees are concerned about the leaders and their behaviours during changes in organisations. The behaviour of leaders is important for establishing stability and improving employee morale. Positive leadership behaviour is also found to enhance commitment of employees towards the change process (Covin and Kilmann, 1990). In any change management process, the major impact is on employees. As a result, biggest resistance during change management also emerges from the employees. Recommendations for smooth transitions during a change process Organisational change or transactions can take place in various forms. It can be mergers or acquisitions or joint venture with other organisations. It can also signify integration of new software in the organisation. Other change processes might include down-sizing or mass recruitment. In all of these processes, impact on humans is the most as they are the ones making the change as well as influenced by it. As a result, each individual/employee is significant for overall productivity of an organisation. Few of the effective recommendations for a smooth change process are as follows; 1. Management should be clear of the organisational design and subsequent changes, which are supposedly to be undertaken. The vision should be shared with each level within the organisation. 2. Managers should ensure that all employees and associated representatives as well as stakeholders are informed about the change and progress. It is also helpful to communicate various pressures that might be faced and strategies to overcome them. 3. In case of retrenchment, organisational should ensure that negative publicly is minimised. For this, organisations should secure that redundant employees are properly benefitted. 4. Smooth change process can only take place when employees and managers are aware of their present and future roles. So, it is important to define specific roles to managers and leaders. For instance, there are leaders who initiate the change process and identify primary requirements, managers who coordinate the process of transition, managers who are consistently monitoring the process and leaders who are responsible for successful transition of the change process. 5. Undergoing organisational change is a difficult process, especially for employees and ground level staff. As a result, it is important to motivate and acknowledge them regularly. This can be done by immediate managers and leaders overseeing the change management process. 6. Timely consultation and informal meetings with employees and associated representatives (such as, groups involved in employee liaison and trade unions) will help in seeing important views and feedback regarding the change process. This will also assure that employees are updated about changes occurring during the transition. On the other hand, management will receive important information such as, employee perspectives about the change. Employee Retention Employee turnover is a constant phenomenon. Candidates join organisations, work and then quit for better opportunities. Hence, managers easily consider turnover as a business cost. It is critical to understand the real reason behind an employee leaving a job. Some of the reasons are unchangeable such as, better offers, further education, marriage and children, transfer of spouses or unavoidable circumstances. However, most of the times employees quit jobs because of reasons which are under employer’s control. The internal organisational culture and employee treatment are few of the important elements, which influences the perception of employees (Kiger, 2007). According to a global survey, majority of employees quit their job because of their immediate supervisors. Line managers and bosses can be inspiration or discouragement for their employees. After a point, an employee’s primary needs are more than money; these include overall employee treatment and value and most of these depend on the line manager’s attitude (Forbes, 2013a). According to a Global survey conducted by CEB, five elements that employees seek out in new jobs are (Forbes, 2013b); 1. Stability 2. Compensation 3. Respect 4. Health Benefits 5. Work-Life Balance Thus, it is clear that factors such as, respect and stability as well as work-life balance form important and influential while working in an organization. An employee joins an organization with above expectations. However, when their expectations are not met, they are inclined to leave the organization (Forbes, 2013b). Managers can include various strategic steps in order to overcome the above issues and reduce employee attrition; 1. Defined compensation and benefit plans: Organizations are increasingly omitting crucial elements such as pension, fringe benefits and flexible insurance policies from the compensation plan of employees, majorly due to still HR budgets and competitive environment. However, this leaves a deep negative perception among employees which further reduced loyalty and motivation towards the job. In organizations where compensation policies are extremely rigid, people are always looking for better opportunities. To manage the above situation and improve employee retention and loyalty, managers can opt for flexible compensation policies. For example, asking for recommendations from the employee itself in areas such as, fringe benefits, incentives and bonuses and insurance policies. Other personalised health benefits plans may include combined insurance policies for employees and their families. This personalization will not only benefit the employees, but will also ensure that they remain dedicated. 2. Flexible work timings: Maintaining a work life balance is one of the top requirements for employees. It has been observed that difficulties at home can result in reduced work productivity, increase in stress during work; this ultimately leads to workers leaving their job. A flexible work schedule not only ensures that employees are not over-worked, but also helped them to be present during important personal commitments. This helps in strengthening their relationship with facilities which in turn is reflected in better performance and higher productivity (Forbes, 2013b). 3. Improving relationship with immediate managers: As mentioned earlier, one of the major reasons behind employees leaving job is because of their bosses. Constant abuses, too much control and rigid disciplines make life difficult for employees. Also, public humiliation is the biggest blow to employee’s self respect, after which employees are almost prepared to leave. In order to solve this, organizations should first evaluate the behaviour and leadership tactics followed by the line managers and immediate bosses. It is fruitful to transfer those line managers or bosses who are not liked by majority of their subordinates. In addition, organization can conduct regular formal and informal meeting between employees and their immediate managers in presence of the higher management. 4. Career growth opportunities: Another major reason for employees leaving job is lack of growth opportunities and a dead end job. Once the work become too predictable with limited learning opportunities, employees looses motivation and subsequently zeal to work. In order to avoid attrition because of the above factor, managers should conduct training and development programs at regular intervals (Forbes, 2013b). Promotions and increase in compensation are effective ways of inducing motivation and dedicated towards work. Also, HR managers can help employees by defining a strategic career path. Reference List Covin, T. J. and Kilmann, R. H., 1990. Participant perceptions of positive and negative influences on large-scale change. Group & Organization Studies, 15(2), pp. 233-248. Forbes, 2013a. Six Reasons Your Best Employees Quit You. [online] Available at: < http://www.forbes.com/sites/louisefron/2013/06/24/six-reasons-your-best-employees-quit-you/> [Accessed 2 April 2014]. Forbes, 2013b. The Top Five Reasons Employees Will Quit In 2013. [online] Available at: [Accessed 2 April 2014]. Forbes, 2013c. Gen X Is From Mars, Gen Y Is From Venus: A Primer On How To Motivate A Millennial. [online] Available at: http://www.forbes.com/sites/robasghar/2014/01/14/gen-x-is-from-mars-gen-y-is-from-venus-a-primer-on-how-to-motivate-a-millennial/ [Accessed 2 April 2014]. Hopkins, B. and Markham, J., 2003. E-HR: using intranets to improve the effectiveness of your people. Gower Publishing, Ltd. Kiger, P. J., 2007. Burnishing your employment brand. Workforce Management, 86(18), pp. 39-45. Lewis, L. K., 2000. Blindsided by that one" and "I saw that one coming": The relative anticipation and occurrence of communication problems and other problems in implementer hindsight. Journal of Applied Communication Research, 28(1), pp. 44-67. Mullins, L.J., 2010. Management and Organizational Behavior. Unknown Pilbeam, S. and Corbridge, M., 2006. People Resourcing. Contemporary HRM in Practice. London: Prentice Hall. Purcell, J., Kinnie, S., Hutchinson, S., Rayton, S. and Swart, J., 2003. Understanding the People and Performance Link: Unlocking the Black Box. CIPD: London. Weber, M., 1992. Bureaucracy. California: Wadsworth Publishing. Read More