Managing Change and LeaderShip - Term Paper Example

 «Managing Change and LeaderShip» Executive Summary This project makes an assessment of the present condition of SACC and recommends suitable measures in order to uplift the performance of the human resource department of the organisation. Such modifications call for immediate attention as because this popular theatre and the pulse of the social and cultural life of Salchester, has fallen into difficult times. The project recommends a suitable action plan that will attempt to revive the organisation from its dismal condition. The primary purpose of this project is to establish a well organised human resource department, the conspicuous absence of which is seen as the root cause of the maladministration. A proper recruitment and selection system has been framed for the organisation to follow. A policy of internal marketing has been suggested to make it more attractive both for its customers and employees. In this regard, special emphasis is given to the interrelationship and interdependence among departments as a measure of improving the communication process. A favourable employee and supervisor relationship has also been recommended in this context. This project also outlines some of the measures Calvin needs to undertake to combat resistance from certain employees. A well chalked out plan in favour of all the employees is required. The decisions taken by the organisation thereby should not be biased. It also proposes action steps to be taken by the human resource department for promoting employer brand. In order to involve the employees in the activities of the organisation, a strategy has been recommended in the concluding section. Table of Contents «Managing Change and LeaderShip» 1 Executive Summary 1 Table of Contents 2 Introduction 4 Action Plan that will enable Calvin to steer the Organisation through the changes it clearly has to make 4 The Process of creating and promoting an Employer Brand by utilising the established Performance Management System (PMS), and new Leadership Development Program (LDP) 8 Outline of an approach that will enable Calvin to introduce processes that will ensure the involvement of all parties at the Salchester Arts and Cultural Centre (SACC) 11 Conclusion 12 References 14 Bibliography 16 Introduction This project aims to recommend solutions to the arising problems in the functioning of SACC (Salchester Arts and Cultural Center), the brainchild of Bernard. Before making any strategy, it is important to analyse the situation correctly and critically. This organisation was a popular destination among the connoisseurs in Salchester and was considered to be the most important attraction in town. In addition to it, it provided employment to many. Despite such accolades, this organisation experienced a reversal of fortunes, when Bernard was compelled to retire on grounds of ill health. A number of criticisms were filed against the activities of this organisation soon after. Though it uplifted the general profile of the town, it was accused of ignoring other important social issues as meeting the needs of school students. It was said that Christmas plays, summer plays and pantomimes were not given enough attention which adversely affected the actors. The appointment of Calvin Spacey, in place of Bernard, as the Artistic and Managing Director of SACC proved to be the proverbial nail in the coffin. A number of problems erupted as a consequence of this change. This project brings into view the problems faced by the employees along with the employer as a result of the different HRM issues that propped out due to changed leadership. Action Plan that will enable Calvin to steer the Organisation through the changes it clearly has to make Calvin was highly esteemed for his work as the Director of a large and performing Arts Centre in Chicago. His creative approach towards the world of arts and production had earned him reputation as a man of taste. The first and foremost step in this plan should be to use his connections for the betterment of the theatre. He must implement his networking skill for maintaining connections with his past relations. In the modern world, connections is said to have a direct correlation with business. His connectivity would help improve the attractiveness of the theatre and bring in people from the Sates (Roza, p.8). Having done this, Calvin’s next step would be to focus on the human resource development of the organisation. The human resource department operating in the organisation then was rather small. It was run by the Chief Personal Officer who was assisted by two full-time and two part-time assistants. It failed to keep pace with the rapid growth of the organisation. Functioning of the department was also inefficient, with Bernard having to take care of most of the human resource functions like recruitment, selections and payment decisions. The Advisory Board considered this approach as being unprofessional and unsystematic. The once employer of choice gradually lost its popularity. Qualified people were turning down offers to work with this organisation even at high profiles. To make the matter worse, there were no specific employment policy and personal development policy in any of the finance, marketing or catering department of SACC. Such shortcomings on the part of an organisation of this stature called for a massive change in organisational structure. Thus, it became important to chalk out an employment and development policy in each department under the supervision of respective individuals. Planned deployment of human resource and suitable assignment of activities is necessary for the success of any organisation. It helps to achieve “high performance work systems” (Harris, Brewster and Sparrow, p.56) as first introduced in the US. It is characterised by a proper and careful system of recruitment, selection and training. This, coupled with a proper information system is expected to usher in the desired results. Calvin must also concentrate on forming a suitable job design for the employees. He must also ensure that a proper system of appraisal is implemented and practiced, and a system of monitoring attitudes is present. A sound compensation system, promotion scheme are also required for ensuring that the employees are recognised and financially rewarded. He must also ensure that employees are rewarded according to their performance, which would motivate them to work better. Implementation of a proper grievance handling procedure is of paramount importance as it would help to address the problems faced by employees and to resolve them (Harris, Brewster and Sparrow, p.56). Another area which requires immediate attention is the absence of cooperation between the administrative members of the centre of SACC, and the marketing department. Efficiency of the marketing department gets reflected in various levels of the organisation. The marketing department also has a close relationship with the human resource department. In this context, the concept of ‘internal marketing’ is of huge significance (Meek, et al, p. 89). This is a relatively new concept that has gained huge acceptance. Organisations have started realising that the most important asset is their employees. Getting one’s own employees to act as its brand ambassadors will be an innovative initiative on the part of Calvin. Calvin can use the employees of SACC to regain the brand image of the organisation. They can be used as internal marketers of the organisation. This would help to regain the lost attractiveness of the theatre. The best way of implementing this procedure is to employ the members of the theatre group as employees of the organisation. It is seen that Calvin has already been implementing this strategy. It is seen that many companies, despite implementing the most efficient customers’ satisfaction strategies and building external brands, have failed in comparison to those which have focussed more on internal marketing (Meek, et al, p. 89). Absence of a comprehensive leadership program was posing a problem for the organisation as it was not able to use its administrative staff for leading the projects. Also a leader was required to formulate a proper vision and mission statement for the company and to lead the employees towards achieving them. Since, theatre is characterised by diversified responsibilities, the need for a leader is all the more intense as somebody is needed to focus the resources towards a common goal. SACC was marked by unorganised and scattered work activities. This phenomenon led to the wastage of efforts, money and gave birth to redundancy, which consequently lowered the productivity. Calvin’s ambition was to take the theatre to the level of international stature and competence with the help of a well endowed leader, who can guide the employees on the right track and help them to work towards the company’s mission and objectives. This calls for a revised human resource structure, well defined activities, a clear statement of the company’s mission and vision, internal marketing and implementing a proper system of compensation and reward. It is also important for Calvin to instigate a sense of competency among his employees. A sense of accountability should be introduced in the employees of the organisation to make it internally competitive. The employer should also be concerned with the employees’ future prospects. The Process of creating and promoting an Employer Brand by utilising the established Performance Management System (PMS), and new Leadership Development Program (LDP) Implementing a performance management system is the key to efficient functioning of the human resource department in today’s organisations. Before implementing a performance system it is important to know the different ways of doing it. It is a process of management which is designed to ensure that the employees are working in a manner that contributes towards achieving the missions of the organisation. It has three phases. Firstly, expectations for the employee performance are to be set. The next step is to maintain a constant communication between the employee and his supervisor so that both their efforts can be directed towards the common goal. Finally, the performance of the employee has to be measured and then compared with the expected results (OSP, 2007, p.1). It has been universally accepted that “having a good reputation as an employer and a highly committed workforce can deliver significant competitive advantage” (People Business, p.2). Here the concept of internal marketing comes into play. It is very important to build up employee brand. A new leadership approach taken in favour of internal marketing can help develop the brand image of SACC. It helps to recruit and retain talent. The HR department plays a key role in building the employer brand of the organisation. Figure 1: How Employees Can Promote Organisation's Reputation and the Employer Brand (Source: SHRM, n.d.) The main responsibility of the performance management system of the HR department in SACC would be to inculcate and create trust among the employees regarding the top management. The employer brand adds to the organisation’s reputation which further helps to attract customers and employee. It gives an impression of being the employer of choice. Creating the employer brand would be essential for organisational success. Success of the organisation is greatly dependant on the degree of trust of the employees. The key activity of the performance management system is to increase the trust of these employees. Employees having greater trust in the management generally tend to perform better. In this context, leadership development plays a significant role. The leader acts as a middleman in communicating the policies and procedures with the employees. The main function of the leader is to the bridge the gap between the senior level management and the employees. He also initiates the process of collaboration across various levels of the organisation. He handles complexity that may arise during the course of work. He imparts resilience to others and also himself. He leverages the experiences that he has gained through past performances and functions (CCL, n.d.). Employer brand does not require using too many marketing tools and techniques, nor does it require the use of too much marketing jargons. It is more relevant to the employees than the customers. The human resource management should not focus on utopian visions and goals and rather focus on what is already available and holds truth in reality. The management should also focus on external communication. This would include both consumer advertising and recruitment. External communication sends messages towards employees about what kind of an organisation it is and claims to be. It should be ensured that promises made by employees are credible when it is extended towards the customers or the new recruits. The management should also ensure that they do not use employer branding as a campaign. This is because it would not be able to survive in the market and would have a very short term impact. At the same time, the process would not be considered fruitful, if the employer puts a lot of effort on a big launch and is not able to follow it up later. Another function of the human resource management would be to “recognise that from the employee’s perspective, all your internal communication has the potential to reinforce or undermine how people feel about the company” (People Business, p.12). The department will fail to build credibility and trust in its employer brand if it is not able to deliver the same level of consistency across all of its communications. People are likely to pay more attention to what is being done than what is being said. Therefore, the management should look for ways to convert its intention into tangible activities. This should also be extended to the managers who feel that they were being exempted from the process of building brand values. This is how the HR department helps in creating and maintaining brand value of the organisation. Outline of an approach that will enable Calvin to introduce processes that will ensure the involvement of all parties at the Salchester Arts and Cultural Centre (SACC) Calvin realised that his ambitions to take SACC towards its goals would not be successful without his employee’s participation. “Employee Participation is generally defined as the process in which influence is shared among individuals who are otherwise hierarchically unequal” (Bhatti & Qureshi, 2007. p.3). It is suggested that Calvin should develop a plan that encourages participation of his employees towards the activities of the theatre. It is argued, that it should be the responsibility of the management to make their employees feel that their active participation is called for and that their consultation is required. This would not only satisfy their ego, but also increase their cooperation towards the management. Another way of increasing productivity in SACC is to frame shared goals for managers and employees. Calvin should allow his workers to participate in such activities as developing mission statements, establishing procedures and policies, determining perks. This would inculcate a sense of cooperation and unity in the organisation, improve communication, enhance the employee’s satisfaction level and boost their morale. Earlier studies have showed that employee participation has a direct correlation with the employee’s performance, his level of satisfaction and productivity. This coupled with the practice of sharing profit among employees, is expected to improve the productivity of the organisation (Bhatti & Qureshi, 2007. p.3). Schemes offering the largest financial involvement have shown the highest effects on productivity (Perotin & Robinson, 2002. p.3). Calvin’s efforts to involve employees would also help to introduce transparency in the organisation. It would also help the employees to know the functioning of the organisation and remove any doubt pertaining to the organisational operations. Such steps will improve the productivity of the organisation. This improvement in productivity would directly increase the demand for workers. Productivity is said to have a direct relationship with employment. Productivity induces employment. Since Calvin was experiencing high attrition rate, this strategy will provide the much needed relief. Though apprehensions abound that such strategy will face resistance from the not so productive employees, the organisation should ignore it because this is a now or never state for the company. Rather, Calvin should introduce a competitive work environment to make the organisation competent in the international market. However, such initiatives are not immune to resistance. There is a limit to the amount of change an employee can happily absorb (Change Management Learning Centre, p.1). Employees might also feel that this change would make them work more while they get the same pay. If such case, Calvin must also design a revised pay structure assisted by his new human resource department. Change is also accompanied with the fear of reversal of roles and responsibilities on the part of the stakeholders. That is why it is important to design the job roles and responsibilities for the employees both for the junior as well as the management levels (People & Performance Solutions, p.1). Also, every change should be communicated with the employees in advance and a feedback should necessarily be taken in this regard. Conclusion The above analyses have revealed that a complete revision of the existing human resource development system would be required to make the organisation competent in the international market. SACC was found to be going through a state of turmoil resulting from the change in administration and leadership. Moreover, it takes a lot of effort to bring an organisation back to its state of competitive power and economic stability, which is on the verge of losing its attractiveness to its customers and also its employees. This calls for a change management policy to be implemented immediately in the organisation. Initiatives on the part of the management and an aggressive policy taken by the human resource department of SACC would reap the desired result if only they are implemented properly. However, it is a known fact that change is not accepted uniformly by all members of an organisation. Some accepts them willingly while some do not. This can be controlled by maintaining an unbiased approach towards all employees. It must also design measures to encounter resistance from them. It needs to be ensured that, even if a decision is harsh, it should be harsh on each employee and not on a select few. Most importantly, any decision taken for improving the performance of the company should not be at the cost of the employees benefit. In conclusion it can be said that a proper performance management system, accompanied with a well designed leadership development policy will help SACC to regain its long glory. References Bhatti, K. K. & Qureshi, T. M. 2007. Impact Of Employee Participation On Job Satisfaction, Employee Commitment And Employee Productivity. International Review of Business Research Papers. [Pdf]. Available at: http://www.bizresearchpapers.com/Bhatti.pdf [Accessed on August 14, 2010]. Change Management Learning Centre. 2005. Top Five Reasons employees resist change. [Pdf]. Available at: http://www.change-management.com/Top-5-reasons-employees-resist%20v9.pdf [Accessed on August 14, 2010]. Centre for Creative Leadership. No Date. Leadership Development Programme. [Online]. Available at: http://www.ccl.org/leadership/programs/LDPOverview.aspx [Accessed on August 14, 2010]. Harris, H, Brewster C. & Sparrow, C. 2003. International human resource management. CIPD Publishing. Meek, H., Meek, R., Palmer, R. And Parkinson, L. 2007. Managing marketing performance 2007-2008. Butterworth-Heinemann. OSP. 2007. Performance Management. State Personnel Manual. [Online]. Available at: http://www.osp.state.nc.us/manuals/manual99/pms.pdf [Accessed on August 12, 2010]. People & Performance Solutions. No Date. Overcoming Employees Resistance to Change. [Pdf]. Available at: http://www.peopleperformancesolutions.com/documents/OvercomingEmployeesResistancetochange.pdf [Accessed on August 12, 2010]. People Business. 2007. Employer Brand Leadership. [Pdf]. Available at: http://www.pib.co.uk/dms/uploaded_files//downloads/Employer%20Brand%20Roadmap.pdf [Accessed on August 14, 2010]. Perotin, V. & Robinson, A. December 2002. Effects on Productivity. Employee Participation in Profit and Ownership: A Review of the Issues and Evidence. [Pdf]. Available at: http://www.efesonline.org/LIBRARY/Employee%20Participation%20in%20Profit%20and%20Ownership%20P%E9rotin%2003.pdf [Accessed on August 12, 2010]. Roza, G. 2008. Great Networking Skills. The Rosen Publishing Group. SHRM. No Date. Employer Brand and Employee Trust in a Turbulent Economy. [Online]. Available at: http://www.shrmindia.org/employer-brand-and-employee-trust-turbulent-economy [Accessed on August 12, 2010]. Bibliography Anstey, M. 1997. Employee participation and workplace forums. Juta and Company Ltd. Bacal, R. 1999. Performance management. McGraw-Hill Professional. Cheney, G. 2002. Values at work: employee participation meets market pressure at Mondragón, Volume 1999. Cornell University Press. Ciantis, C. D. 1995. Using an Art Technique to Facilitate Leadership Development. Center for Creative Leadership. Mayson, B. & Hyman, J. 1995. 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