Change and Implications for Empowerment: Zarief - Case Study Example

Change and Implications for Empowerment Introduction Organizations in today’s world operate in a dynamic environment that is driven by the globalization of economies, increased technology innovations and consumer demands. The changing demographics of the markets are responsible for large scale adaptations in product design, delivery and business processes. This has led to the growth of market competition and increased consumer expectations in terms of quality and attributes of the goods or services provided. Organizations are forced to adopt change their strategic management policies in the light of rapid changes impacting the market and business environment. This leads to major strategic reorientations that relate to market, products, services, organizational structure, and human resources. The paper provides a report on change management and associated impact on organizational structure and employee empowerment that helped in the change process. Zarief.com is a website design and development company located in Riyadh. The services provided by the company include website development, graphics design, SEO consultancy and multimedia based application solutions to its clients (Zarief.com, 2009). Recently the company management decided to move into outsourcing market and this decision was followed by major changes within the organization. The paper provides the change management plan implemented by the firm and its impact on organizational structure and employee roles. Changes implemented at Zarief.com The emergence and growth of the IT industry is a consequence of rapidly advancing technology and outsourcing of work processes is one of its offshoots. Organizations are rapidly adopting the concept of transferring work processes to external parties in pursuit of low cost of operations and efficient handling of resources.The outsourcing industry in the Middle East region reports a compound annual growth rate of 16 percent in the year 2005 with a total market share of $91 million (Marson et al., 2008). Entering this market segment implied lot of changes in the structural level of the organization and the management decided to draw a change management plan into ensure smooth transition. The company decided to recruit some professionals having expertise in the field to guide the setting up of the new outsourcing division. The existing operations would continue to function as usual; however, the management decided to implement some changes in the organizational structure to facilitate enhanced knowledge and expanded scope of application within the departments. The major challenges identified by the managers in implementing changes within the organization included changing employee mindsets and attitude, corporate cultures, lack of transparency in communication of vital information, lack of motivation in concerned employees, technology resources and changes in the operational systems. The implementation of a flat organization structure was one of the biggest challenges faced by the management. Organizational design is to a large extent guided by the flow of information across various levels and departments. The reduction in hierarchy levels led to resistant attitude among managers who felt their authority and power will be taken away. The management decided to conduct a training workshop for these managers and explain the impact of the change in organization structure on business development and growth opportunities. Once the communication flow, managerial reporting lines and responsibilities were explained the resistance to change was overcome successfully. The organization adopted a new structure where there is increased transparency and information is shared more openly across departments and work processes. The organization is structured in such a manner that shifts the focus of decision making from vertical to more horizontal lines – this implies that the employees at the forefront actually involved in the job process are better equipped to judge the work processes and decide on how the contingencies can be met. Responsibility for the success of the organization is shared by all the employees. The change management plan drawn by the managers at Zarief.com was based on the concept of selling the change program to the employees. Convincing the workforce of the change objectives and its impact on the organizational productivity and performance is vital in gaining their acceptance. The vision and objective behind this change has to be shared by everyone concerned with the change process. The change objectives included providing the employees with information on the management decisions, expected impact on the organization, defined changes in the work process, how the management is going to implement the changes and the change outcome. The management identified a few key members from the operational team as change leaders who played an important role in communicating these strategies to the employees. The change leaders communicated this information to the employees through emails followed by team meetings to resolve doubts and queries. The managers then discussed the specific work changes that will take place in next few months and how the management is going to take care of the issues such as skills development, employee training, personnel growth and development and organizational structure. The change management plan focused on re-structuring the organizational hierarchy system and organization culture to adapt to changing business needs and requirements. One of the primary focus of the company in its effort to be recognized as a truly global service provider in the outsourcing business was focused on changing its organizational structure to a more horizontal form of hierarchy. This will enable de-centralization of decision making power within the organization and managers can be provided with increased responsibility and accountability towards their teams and departments. A flat organization structure promotes transparency in communications and leadership initiatives. An organization is shaped by the culture that predominates in work environment, employee behaviour and managerial attitude. However, in face of rapidly changing business requirements and market trends organizations are now implementing fresh strategies that improve the work environment and organizational culture to promote higher level of motivation and employee productivity. The organization needs to develop employee development programs that can be used to improve employee morale, boost leadership qualities and encourage active participation in teams. This will assist in enhancing employee performance and raise the quality of work delivered. The proposed changes included implementing personal development programs for employees, performance appraisal system and one to one feedback sessions that will relate to improved understanding of employee performance and individual goals. Employee training forms another critical aspect of creating awareness on the proposed changes, its benefits, impacts and procedures involved. The employees will undergo training and development workshop to familiarize them with the outsourcing work processes, technology adopted, and quality guidelines. The organization needs to focus on developing core competencies and skills among the workforce to realize the full benefits of the change program. A vital aspect of core competency development within the organizations relates to training and development of employees and effective implementation of knowledge management systems. The training workshops designed for the change management program was effective in coaching the employees on vital information related to the outsourcing industry and this helped in overcoming employee mindset barriers to the change process. The employees were interested in gaining the required skills to benefit from the increased opportunities available in this sector. The other initiatives that were introduced by the management included feedback and appraisal programs for the employees. The personal development plans introduced by the management for the employees was a good move by the management and employees were motivated to develop their career growth plan within the organization. The line managers help the employees fill the personal development plan forms and based on the employee capabilities and limitations an action plan for individual development is drawn. The action plan suggests suitable workshops and training programs that the employee can attend to overcome his weaknesses. A specific time frame is provided for the development action plan after which the PDP is assessed and evaluated by the line manager to determine if the learning objectives were met. Based on these evaluations the employee’s future roles and responsibilities are re-defined. The appraisal process can be very effective in identifying individual targets and review performance standards. Appraisals assist the line managers in communicating process targets, specifying quality expectations and assessing individual performance based on the performance evaluation metrics. Moreover, appraisals can help in fostering better relations between the employees and their managers. The appraisals are conducted every two months by the respective line managers on a one to one basis. The process helps the employees communicate their problems and issues faced on the work floor and enable the line managers to identify potential show stoppers. Knowledge gap within the organization Organizational structure assumes new forms in the face of changing market and economic conditions within which they operate. The markets are abundant with job opportunities and under such conditions the employers face a challenging task in retaining their key employees. The human resource management strategies revolve around increasing job satisfaction through effective tools like promoting leadership, appraisals, personal development plans, rewards and recognition and financial incentives. Hence the organizational structure should facilitate the achievement of business goals and at the same time focus on innovation, cost minimization, and employee satisfaction. The company implemented employee empowerment practices through increased employee participation in the managerial decision making process. The concepts used to implement changes were strong; however, the management found a barrier to effective employee empowerment practice. The employees lacked the adequate knowledge related to outsourcing industry and policies to engage in effective decision making process. The knowledge gap identified was the primary obstacle felt by the senior managers. The non hierarchical organizational structure promotes responsibilities and motivates the employees to put in their best at work resulting in high performing organizations. However, such work culture demands strong commitment and high level of energy from the employees. Potterfield (1999) states that empowerment can be effective only when the organization provides the four essential ingredients to its staff and that includes – information about the organization’s performance, rewards based on organization’s performance, knowledge that enables the workforce to contribute to organization’s performance, and power to make decisions that influence organizational performance. Employee training and development initiatives assume a significant role in empowering individuals within the organization. Strategies to bridge the knowledge gap Many organizations and managers believe that training is the cure to all kinds of problems and challenges faced on the work floor. This is mostly accountable to the fact that training employees induces a positive change in employee behavior at work. “Yet most of these programs fall short of creating an actual linkage into the daily practices within the organization” (Sun, 2007). Current training needs are largely influenced by the globalization process that has triggered widespread changes in the economic environment and market conditions in which businesses operate. Organizations need people who are dynamic and are capable of molding themselves to meet changing market demands and enable the organization in meeting increased competition and capitalize on new business opportunities. However, it is important that corporate training programs are linked to strategic goals and objectives of the company. The business leaders should take the responsibility of creating a workforce that is well equipped to support the organizations’ growth strategies and meet the challenges of working in a global environment (Tong, 2008). The company plans to adopt both formal and informal modes of training and development practice to teach new skills to the workforce. Formal training demands for the company workforce are met through classroom training, presentations, e-learning applications. Technology and innovative use of technology to deliver training to the employees are increasingly being used by employers owing to their greater effectiveness. However, informal training constitutes job rotation, cross-functional working, mentoring, good line manager, and providing challenging work conditions. Formal and informal training experiences that include on the job experience, coaching, mentoring, management development and basic skills training can have deep impact on employees’ development. The level of training provided to employees is based on existing human resource management practices. The extent of mobility between various teams and work processes requires transfer of skills and knowledge to enable effective utilization of existing staff. One of the distinctive efforts made by the company in this direction is introducing a training program on improving communication skills. All the employees have to go through this training workshop that will be conducted in the classroom environment. Employees will be provided details on how communication can improve performance, boost employee confidence and earn added incentives at work. The workshop will also have simulated conversations and scenarios that deal with specific issues and challenges faced at work and how these can be effectively resolved through communication of messages and ideas. The employees will find it easier to practice the concepts and processes learned during the workshops. Communication will be much more improved and this should reflect in increased self-confidence among employees and their ability to resolve difficult situations. Recommended managerial practice Employee empowerment is a new trend that has made its way into human resource management practices in the corporate world. Employee empowerment has different interpretations and applications in different organizations. Some organizations provide its employees with the scope to enhance and enrich their work profiles by undertaking additional responsibilities. There are other organizations that encourage its employees to learn new skills and enrich their work experience by actively participating in managerial decisions and handling operations in their own way. Duke Okes and Russell T. Westcott observe in their article “Employee Empowerment and Involvement” (2001) that employee empowerment implies giving up “power traditionally held by management, which means managers must take on new roles, knowledge, and responsibilities.” This process requires significant amount of time and effort to build trust, confidence and evaluate individual capacities in the given work environment. Traditional organizations adopted the age-old management practice of providing specific directions to their employees with managers giving explicit instructions on how to do their jobs to meet the organizational goals and objectives. “In traditional organizations, directing involves giving assignments, explaining routines, clarifying policies, and providing feedback on performance” (Nickels, 2008). Most organizations adopt this management style. However, changing business environment and increasing complexity in the operating market environment has forced organizations to revamp their management styles and practice to more flexible and friendlier approach that encourages active participation of employees in managerial decision making process. Leadership styles within organizations pursue a more humane approach than it used to few decades ago. Autocratic style of leadership is being replaced by participative and free rein leadership styles that promote increased individual participation in managing the whole show. Nickels in his book Understanding Business concludes that various researches conducted have found that employee participation in decisions is highly effective in increasing performance and productivity besides increasing individual job satisfaction. “Many progressive organizations are highly successful at using democratic style of leadership that values traits such as flexibility, good listening skills, and empathy” (Nickels, 2008). Organization structure is perceived to be a key element in determining type of managerial strategies and problem solving mechanism adopted by businesses. Ian Palmer and Cynthia Hardy argue in their work “Thinking about Management” (2000) that employee involvement programs rely on flat organization structure having little hierarchy. One of the tasks of managers is to devise strategies that enable the employees to achieve the organizational goals through appropriate training and development programs and implementation of knowledge management systems. Employee training and development programs have a positive influence on organizational performance and productivity. It helps in developing required skills and motivates employees to deliver their best. The positive reinforcement is attributed to the general feeling that the organization cares about their employees. The company will implement intensive training and development program for their employees. A team of experts will be responsible for assimilating training information and content management. The training provided to the employees will be of two types – Soft skills training that focuses on leadership, team work, effective communication building strategies, and motivation. Process specific training that focuses on process requirements, innovative approach to achieving work targets and resource planning during work execution. Additionally the training programs will be targeted towards specific employee groups who are interested in career planning and growing within the company. Some of the soft skills training programs will make use of the Intranet and online learning groups to make effective use of time and resources for the employees. The e-learning modules can be taken from anywhere through the use of company Intranet. The employees on induction into the company will go through a week long induction program that will familiarize the new recruits with company policies and procedures, expected behaviour and work environment supported by the organization. Communication skills within the organization include written communication, verbal, listening, visual, and presentation skills. The company will attend to the development of effective communication skills among the employees and for this purpose various training and development workshops will be introduced. Besides training workshops the company will encourage frequent team meets, group activities, one to one sessions with the line manager, presentations, staff feedback survey and management interaction sessions to promote transparency and encourage flow of information uniformly through the various departments and levels within the organization. In addition to the above discussed strategies Zarief.com should also promote a participative leadership approach to improve employee performance and productivity. “Experts feel that sharing information and data with the employees alone cannot reduce anxieties; employees must have confidence in their leaders and they must feel safe under their leadership as well as get the assurance that the leaders will guide them towards the right direction” (Nair, 2009). Listening to the doubts of the workforce and observing their reactions is vital in gaining an understanding of their reaction and opinion related to the change process. Employee involvement and participation is a useful strategy in ensuring the successful implementation and adaptation of the workforce to the new program. The advantage it offers is the valuable practical insight and opinion provided by the people who are directly concerned with the practical aspects of the operations. The process of change management and the strategies adopted for the purpose of effective implementation of these changes within the organization is an indicator of the organizational ability to handle and crisis and emergent situations. “Organizational success has become directly attributable to its ability to handle and sustain strategic change” (Wilson, 2000). Effective implementation and handling of the change management process can help any business in transforming the operational procedures, outlook and approach that leads to more effective and efficient means of delivering goods and services. It also helps the business in gaining competitive market advantage. Any changes to the current and existing work procedures are met with stiff resistance from the people involved. Managing and implementing changes in an organization is a complex task that requires an able leadership that has the capacity to visualize and identify possible barriers or resistance to the planned changes. The leaders implementing the changes need to fully understand the objectives behind the change process, how it can affect various departments within the organization and the necessary steps that can be taken to assemble the staff to promote the change. References: 1. Wilson, David C. 2000. A strategy of change – concepts and controversies in the management of change. Thomson Learning. 2. Nair, Priya C. 2009. Leading the Way. Accessed on November 15th 2009 from www.timesascent.in 3. Nickels, William G. 2008. Understanding Business. Chapter 7: Management, Leadership, and Employee Empowerment. McGraw Hill Higher Education. 8th edition 4. Palmer, Ian and Hardy, Cynthia. 2000. Thinking about Management: implications of organizational debates for practice. Sage Publishing. Pages 11-34. 5. Okes, Duke and Westcott, Russell T. 2001. Certified quality manager handbook. Second edition. Pages 29-30. 6. Sun, Ted. 2007. Survival Tactics: the top 11 behaviours of successful entrepreneurs. 1st Edition. Greenwood Publishing Group 2007. 7. Tong, Dominic. 2008. Adapting Hong Kong’s workforce to meet the global challenge. Accessed on November 15th 2009 from http://www.ibm.com/news/hk/en/2008/07/01/p323016v95884e42.html 8. Potterfield, Thomas A. 1999. The business of employee empowerment: democracy and ideology in the workplace. Greenwood Publishing Group. Pages 49-59. 9. Zarief.com. 2009. Company profile. http://www.zarief.com 10. Marson, Tony & Blodgett, Mindy. 2008. Can Middle Eastern countries fulfill the “Eastern” promise? Accessed on November 15th 2009 from http://www.mcit.gov.eg/General/Yankee_Group_Report-July08200810718742.pdf 11. Carter, Louis., Ulrich, David., Goldsmith, Marshall. 2005. Best Practices in leadership development and organizational change. Pfeiffer publication. Read More