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Organizational Change and Human Resource Mannagement Interventions
Organizational Change and Human Resource Mannagement Interventions
Organizational Change and Human Resource Mannagement Interventions
Abstract
The objective of this paper was to study the relationship between human resource management
interventionist strategies and organizational change; and flexibility that can make employees more
adaptive and receptive to changes. Out of one hundred and sixty copies of questionnaire
administered, one hundred and twenty three (123) were collected and analyzed. Structural Equation
Modelling (SEM), a hypothesized relationship was tested using Amos 18 that allows test of complex
relationships between variables. Our model shows that relationship exists among human resource
management interventionist strategies and was consistent with organizational change in the studied
industry. However, the study can be extended to other industries, for example manufacturing industry
as well as industry within the merger and acquisition of companies.
DOI: 10.5937/sjm8-3712
2 A.A. Adeniji / SJM 8 (2) (2013) XX - XX
that banking industry are more responsive to this study views transformational
environmental factors and instilling organizational change regarding the recent
customer service cum commercially focused past acquisition of Intercontinental Bank by
ethos are characteristics of new approaches Access Bank Plc (Nigeria). This
to the banking sector of the Nigeria fundamental change tends to affect the
economy. With rapid changes in emphasis, organizational culture and its operations that
the banking sector is now examining its call for reengineering of processes,
internal structure and reviewing the roles and structures, roles and even underlying
responsibilities of employees and managers assumptions.
so as to deliver the top quality services
demanded by the stakeholders.
More than decades ago, mergers and 2. ACCESS BANK PLC
acquisitions in the banking industry have
become the dominant mode of growth The transformation of Access Bank Plc as
(Arquilera & Dencker, 2004). Human a small Nigerian Bank into an African
resource management has the potential to financial institution has made it to be listed
play important role in mergers and as one of the top 10 largest banks in Nigeria
acquisition integration by reinforcing the in terms of asset base. Access Bank was
new human resource management system issued a banking license in December, 1988
and corporate culture and providing and was incorporated as a privately owned
leadership and communication to reduce commercial bank in February, 1989. After
turnover. the commencement of operation, in March
When an organization is undergoing 1998 to be precised, Access Bank became a
change, what role does human resource Public Limited Liability Company; and
plays? Organizational changes are driven top listed on the Nigeria Stock Exchange same
down and initiated largely due to strategic year. In the year 2001, Access Bank obtained
business goals which the company needs to a Universal Banking License from the
achieve. The human resource function is to Central Bank of Nigeria, which made it
anchor the change management process and possible for the bank to operate in over 310
facilitate the transformation across all teams branches and service outlets located in major
and work dimensions. Each change throws cities and towns across Nigeria, Sub Saharan
up unique challenges and the details which Africa and the United Kingdom.In the year
need to be addressed are diverse in each 2012, Access Bank is said to be one of the
instance. The aim of this paper is to explore Africa’s most successful banks, and was
how human resource management could play ranked amongst Africa’s top
effective role in increasing individual and 20 banks by total assets
organizational effectiveness during (http://www.accessbankplc.com/pages/Page.
organizational change by implementing aspx?Value=3&ln=Gy7UlI4cSJE94Wa2qud
progressive human resource processes. The bFQ%3d%3d).
term “Organizational Change” connotes However, in 2009 the storm of global
significant change in the organization, which financial crisis affected the Nigerian banking
could either be reorganization; adding; or industry, which resulted into some banks
removing new product/service. However, merged and some acquired. In the year 2012,
A.A. Adeniji / SJM 8 (2) (2013) XX - XX 3
the Group Managing Director/Chief organizational changes in an attempt to adapt
Executive Officer, Access Bank Plc and respond to the changing economic
announced the completion of its acquisition conditions, technological innovations,
of Intercontinental Bank, and stated that the customer and client expectations and a
transaction is significant in the Nigerian shifting workforce. It was estimated that
banking industry, because it preserves 56% of organizations are undergoing three or
hundreds of Nigerian jobs and protects the more complex changes at one time or
savings of millions of Nigerian citizens. another (Barell et al., 2007).
Organizations also, are changing the way
they implement and manage change. Change
management in organizations are now
3. THEORETICAL FRAMEWORK shifted from being the responsibility of an
internal or external change agent dedicated
3.1. Overview of Change Management to its implementation and management to
increasingly being identified as a core
Organizational change is seen as a competency for most organizational leaders
necessary concept for organizations to (Doyle, 2002). The human resource function
compete in the ever changing and in increasingly seen as one of the key
competitive business environment. The rapid functions in thedevelopment and
development of information and implementation of strategic responses to
communication technology have prompted increasing competitive pressure as both
many organizations to actively seek for new public and private organizations are forced to
ways, ideas and creative solutions in adapt to domestic and international
improving their current product, process, competition, technological advancements,
system and technology which is referred to slower growth and declining markets
as organizational change, and it had been (Buyens & DeVos, 2001). Such strategic
accepted widely that effective and efficient responses involve effective communication
human management resource practices are of the importance of human resource across
important in extracting positive work the organization and a reconsideration of the
behaviours among employees which role of line managers in human resource
invariably will lead to organization change delivery. As such, the skills required to lead,
(Tan & Nasurdin, 2010). No one would manage and implement change are being
dispute that every organization has incorporated into the existing expectations,
experienced change. Yet despite roles and responsibilities of human resource
organization’s familiarity with change, manager and other employees, (Doyle,
success in implementation is relatively rare. 2002).
It was estimated that 70% of organizational Therefore, it is not surprising that in an
change initiatives fail completely (Bear & environment where the magnitude of change,
Nohria, 2000). Among those deemed its complexity and its frequency are
successful, 75% of them fail to achieve their increasing, the human resource persons and
intended result (Nikolaou et al., 2007). leaders have begun to focus their attention on
Despite these low success rates, the adoption of change management best
organizations still continue with the practices.
4 A.A. Adeniji / SJM 8 (2) (2013) XX - XX
more successful, for instance, expanding the effective and efficient use of human talent
number of customers served or duplicating a for achieving goals of organization (Mathis
successful product or service. & Jackson, 2002). The concept of human
Worthy of mention again is the fact that resource management goes beyond
organizational change ranges from problem employment relations or industrial relations.
identification to consultation with behavioralIt includes employees identifying the
science to data gathering and preliminary interests and goals of the organization, and
diagnosis to communicating the vision down be aligned and committed in achieving these
to removing obstacles, creating short term goals. It involves employees adapting
wins and building on the change to anchor willingly to change within the organizational
the changes in corporate culture. structure without any strife or prejudice.
Not only that the acceptance of change The concept emphasizes that high level
and joining the actual process of change performance attainment of organization
starts from within the people themselves. It is
depends on the quality of members of staff
possible to learn how to cope with change and management of such organization cum
and the likelihood of success is relatively matching of human resource strategies to the
greater if people realize the need for needs of the business strategy.Furthermore,
flexibility and have the ability to act fast. human resource management includes:
Nothing changes for the better until people - Encourage the commitment of
have a positive attitude. Thus, in any processemployees to increase their performance and
of change, it is essential to know what is also be loyal to the organization as a whole;
going on in people’s minds and what - Emphasis on the quality of
emotions they are going through. Successful employees engaged in organizations goes a
management of change is based on taking long way in producing quality goods and
action according to uniform principles i.e. services, which is of great benefit both to the
everyone involved moves in the same customers and the organization;
direction. Internal communication can assist - Ensuring flexibility plays an
members of the organization at all levels important part in the way employees are
with setting up a uniform plan of organized, this makes them to be adaptive
communication and the ability to monitor the and receptive to all forms of changes in all
process from distance. The different phases aspects of their jobs such as work hours;
of change (i.e. from problem identification toworking methods and;
anchoring the changes in corporate culture) - Integrating organizational goals into
require different approaches and emphasis. If strategic planning in order to make these
the people involved in the process of change policies cut across ranks and files of
are able to contribute to the process, they will
organization and ensuring that they are
accept the new situation more easily. gladly accepted and implemented on daily
routine by line managers.
3.2. What about human resource Thus, managing the human resource has
management? become one of the critical success factors in
organizations. Both the existence of proper
The term refers to design and applications personnel and the ways people are managed
of formal system in an organization to ensure are the basis for achieving the competitive
A.A. Adeniji / SJM 8 (2) (2013) XX - XX 7
advantage. In this study, authors analyze the Minbaeva, (2005) viewed the human
role and practices of human resource resource management practices as a set of
personnel in successful change management. practices used by organization to manage
For instance, when firms develop and human resources through facilitating the
introduce new processes and new development of competencies that are firm,
administrative practices, they will require specific, produce complex social relations
dynamic and creative employees who are and generate organization knowledge to
flexible, risk takers, tolerant of uncertainty sustain competitive advantage. Human
and ambiguity and been able to contribute to resource management practices can generate
producing quality goods and services which increased knowledge, motivation, synergy
will benefit both the customers and the and commitment of a firm’s employees,
organization. Essentially, human capital is resulting in a source of sustained competitive
one of the four types of assets managed in advantage for the firm (Hilsop, 2003). As a
organizations (Adeniji & Osibanjo, 2012); multidisciplinary practice that has evolved as
other assets include physical assets; financial a result of scholarly research, organizational
asset; and intangible assets. These assets are change management should begin with a
essential and vital at varying degrees in the systematic diagnosis of the current situation
operations of any organization; however, in order to determine both the need for
human assets operate at the pivot of the change and the capability to change. The
operations. objectives, content and process of change
should all be specified as part of a change
3.3. HRM Interventionist Strategies in management plan.
Change Management Change management processes may
include creative marketing to enable
As the world is becoming more and more communication between change audiences,
competitive, volatile than we could ever but also deep social understanding about
imagined, organizations either leadership’s styles and group dynamics. As a
manufacturing or service based are seeking viable track on transformation projects,
to gain competitive advantage and turning to organizational change management aligns
more innovative change sources through groups’ expectations, communicates,
human resource management interventionist integrates teams and manages people
strategies. These strategies have been training. It makes use of performance
defined as systems that attract, develop, metrics such as, financial results, operational
motivate and retain employees to ensure the efficiency, leadership commitment,
effective implementation of necessary communication effectiveness, and the
changes and the survival of the organization perceived need for change to design
and the members. These interventionist appropriate strategies, in order to avoid
strategies are also referred to as set of change failures or solve troubled change
internally consistent policies and practices projects.
designed and implemented to ensure that a All change involves the adoption of new
firm’s human capital contribute to the behaviours that need to be accepted and
achievement of its business objectives enforced. It should be noted that where quick
(Delery & Doty, 1996). In the same vein, radical change is required for organizational
8 A.A. Adeniji / SJM 8 (2) (2013) XX - XX