MANAGEMENT OF CHANGE

INTRODUCTION:

 Change is a process that can be enabled, not managed

 The change process must be linked to business and performance goals

 Building capacity to change is a strategic imperative

 Building capacity for change is an evolutionary process

Principles of Change

 Effective change processes require a systemic view of the organization

 The change process involves both organizational and personal transitions

 Behavioral change is a function of perceived need and occurs at the emotional, not the
intellectual level

 Resistance to change is predictable reaction to an emotional process and depends on a

person’s perception of a change situation

 A handful of change enablement best practices account for the success of most change
processes

 Change strategies are situational

Change management:

Change management is an approach to transitioning individuals, teams, and organizations to a

desired future state. In a project management context, change management may refer to a project
management process wherein changes to the scope of a project are formally introduced and
approved.

Management is the attainment of organizational goals effectively and efficiently through:

• Planning,
• Organizing,
• Leading, and
• Controlling organizational resources.
History

1960s

Everett Rogers wrote the book Diffusion of Innovations in 1962. There would be five editions of
the book through 2003, during which time the statistical analysis of how people adopt new ideas
and technology would be documented over 5000 times. The scientific study of hybrid corn seed
adoption led to the commonly known groupings of types of people: Innovators, Early Adopters,
Early Majority, Late Majority and Laggards.

1980s

McKinsey consultant Julien Phillips first published a change management model in 1982 in the
journal Human Resource Management, though it took a decade for his change management peers
to catch up with him

Robert Marshak credits the big 6 accounting firms and management consulting firms with
creating the change management industry when they branded their reengineering services groups
as change management services in the late 1980s.

1990s

In 1994, Daryl Conner founded Conner Partners and in 1993, he wrote the book, Managing at
the Speed of Change. Conner penned the analogy "burning platform" based on the 1988 Piper off
shore oil rig fire (North Sea off the coast of Scotland). Conner Partners influenced the large
Management Consulting firms over the 80s and 90s as firms needed to understand the human
performance and adoption techniques to help ensure technology innovations were absorbed and
adopted as best as possible.

2000s

Linda Ackerman Anderson states in Beyond Change Management that in the late 1980s and early
1990s, top leaders, growing dissatisfied with the failures of creating and implementing changes
in a top-down fashion, created the role of the change leader to take responsibility for the human
side of the change. ]The first "State of the Change Management Industry" report in the
Consultants News was published in February 1995.

2010s

In 2010, based on her book "RIMER Managing Successful Change", Christina Dean, Managing
Director of Uniforte Pty Ltd, established Change Management as a formal vocation in Australia
by writing the Australian National Competency Standards in Organizational and Community
Change Management, which led to the developed of the first Australian Diploma of
Organizational Change Management, and which is an internationally recognized qualification.
Approach

Organizational change is a structured approach in an organization for ensuring that changes are
smoothly and successfully implemented to achieve lasting benefits.

Reasons for change

Globalization and the constant innovation of technology result in a constantly evolving business
environment. Phenomena such as social media and mobile adaptability have revolutionized
business and the effect of this is an ever increasing need for change, and therefore changes
management. The growth in technology also has a secondary effect of increasing the availability
and therefore accountability of knowledge. Easily accessible information has resulted in
unprecedented scrutiny from stockholders and the media and pressure on management.

With the business environment experiencing so much change, organizations must then learn to
become comfortable with change as well. Therefore, the ability to manage and adapt to
organizational change is an essential ability required in the workplace today. Yet, major and
rapid organizational change is profoundly difficult because the structure, culture, and routines of
organizations often reflect a persistent and difficult-to-remove "imprint" of past periods, which
are resistant to radical change even as the current environment of the organization changes
rapidly.

Due to the growth of technology, modern organizational change is largely motivated by exterior
innovations rather than internal moves. When these developments occur, the organizations that
adapt quickest create a competitive advantage for themselves, while the companies that refuse to
change get left behind. This can result in drastic profit and/or market share losses.

Organizational change directly affects all departments from the entry level employee to senior
management. The entire company must learn how to handle changes to the organization.

Choosing what changes to implement

When determining which of the latest techniques or innovations to adopt, there are four major
factors to be considered:

1. Levels, goals, and strategies

2. Measurement system
3. Sequence of steps
4. Implementation and organizational change

Managing the change process

Regardless of the many types of organizational change, the critical aspect is a company’s ability
to win the buy-in of their organization’s employees on the change. Effectively managing
organizational change is a four-step process:
 1. Recognizing the changes in the broader business environment
2. Developing the necessary adjustments for their company’s needs
3. Training their employees on the appropriate changes
4. Winning the support of the employees with the persuasiveness of the appropriate
adjustments

The role of paradigms and perspectives:

This talk will be a surprise to most of you. You probably expect a talk about knowledge
management – and the object of the talk is indeed knowledge management, but what I will
mainly doing is talking about communications and the right to communicate. In the process of
my talk you will hopefully agree that communications is in the center of knowledge
management.

The right to communicate seems the most obvious thing in the world, in particular in a world
where information and communication technologies are the driving force in all domains of
modern society.

The right to communicate seems a basic right, a natural right, so fundamental that the founders of
the Universal Declaration of Humans Rights and most other Covenants, Conventions, Charters
etc. did not feel compelled to mention it explicitly or to enshrine it in the canon of universal
rights and values.

The right to communicate can even be considered a distinctive characteristic of the human race.
But amazingly enough the right to communicate is one of the most controversial topics of
international debate in the last 50 years. How can it be that a fundamental, universal and obvious
right can be the object of controversial interpretations, can be the focus of such heterogeneous,
opposing interests, with the consequence, for example, that the USA government felt obliged to
terminate its membership in the UNESCO some 25 years ago as a consequence of the debate
about the New World Information and Communication Order (NWICO). Communications, this
was the message of the early NWICO debate and is a major theme in the current preparatory
process for the World Summit on the Information Society, is a highly controversial and political
topic.

The subtitle of my talk is “Framework for the Collaborative Production and Exchange of
Knowledge”. This can be related to what I am going to call a paradigm shift in the understanding
of knowledge management. And this puts knowledge management in the broader context of
communication.

Knowledge management is generally understood as a means of having better control over the
production and usage of explicit and implicit knowledge in organizations of any kind, preferably
commercial businesses, but also public administrations. To put the objectives of traditional
knowledge management in a nutshell: to know what an organization in principle knows and to
make that knowledge available to the right people at the right time
Management Perspectives over Time:

Classical Perspective:

• Emphasized a rational, scientific approach to the study of management.

• Sought to make organizations efficient.

• Manager’s role is to maintain stability and efficiency.

• Theories of Scientific Management, administrative principles, and bureaucratic

organizations.

Humanistic Perspective:

• Emphasized understanding human behavior.

• Dealt with needs & attitudes in the workplace.

• Truly effective control comes from within the individual worker rather than authoritarian
control.

• Hawthorne Studies brought Humanistic Perspective to forefront.

One thing depends on other things, and for organizations to be effective, there must be a
“goodness of fit” between their structure and the conditions in their external environment.

When investigating change it is important to understand the context within which the current
situation is operating. The context shapes and gives meaning to many things, and can explain, for
example, why people may appear to behaving dysfunctional.

External context

The external context that affects the organization provides the forces to which the business must
react and are common root causes of the need for change.

PESTLE forces

The broader business climate includes the external sea in which the business and its competitors
must swim and provides the ultimate playing ground. PESTLE (aka. PEST, STEP, SLEEP, etc.)
stands for Political, Economic, Social, Technological, Legal and Environmental factors. Each of
these may lead to the need for change, for example declining economic conditions or new
legislation.

Market forces
Within the chosen markets, forces as price pressures, competitive shifts, customer demands and
so on may be creating business tensions. These may act to push the business in different
directions, such as when the middle market becomes unprofitable and there are choices such as
to chase fat up-market profits or to eke out slim margins in volume business.
Internal context

As well as the external context, there are many contextual factors within organizations that can
lead to the need for change.

Driving objectives

Out of the external forces and internal ambitions, business leaders identify the key purposes and
objectives that they want to achieve and hence achieve success in the organization. When these
change or when the organization is not on track to achieve them, then there is clear reason for
change.

Driving objectives come in many forms, including visions, mission statements, values and more
specific objectives that come out of these. Specific objectives typically include the need to
produce and sell named products, within given quality parameters, on time and within budget.

Organizational alignment

An aligned organization has its processes, technology, reporting structures and individual
objectives all aligned with one another. Any lack of alignment is effectively waste, as it
contributes only to non-achievement of objectives.

Alignment may be identified through a comprehensive Structural Analysis, followed by

assessment of how well those structures work in combination to achieve objectives.

Organizational capability

As well as alignment, an organization needs its people to be able to complete work given to
them. This is often assumed to be largely about motivation and skill but, although these may be
factors, they are often not as significant as initially assumed.

A common culprit is process design. Processes have capabilities just as people, and the saying
that 'you can't make a silk purse out of sow's ear' is equally true. If you ask a process to do
something outside of its capability, then it will fail. Similarly, technology has its limits, despite
sometimes inflated promises.
UNIT II

Organizational Design and Change:

Organizational Design: There is no best structure available anywhere. There are no good or bad
structures. There are only structures that match or do not match with the requirements of a
strategy”

The purpose of the organizational design is to create the right structure that fits the requirements
of the strategy to be implemented. Organizational change is meant to modify existing structures
that have gone wrong over a period of time and no longer fit the requirements of the strategy
being implemented.

Dimensions
Structural Dimensions
“describe the internal characteristics of an organization”

ContextualDimensions“describestheorganizationalsettingthatinfluenceandshapesthestructuraldim
ensions”
Sub-dimensions of Structural Dimension Formalization is the amount of written documentation,
including procedures, job descriptions, regulations and policy manuals.

Specialization is the degree to which organizational tasks are subdivided into separate jobs.
Hierarchy of authority describes who reports to whom and the span of control for each manager.
Span of control is the number of subordinates reporting to superior.

Centralization is the extent to which decision-making is done by the top management.

Decentralization is the extent to which authority to make decision is delegated to lower levels of
management.

Professionalism is the level of formal education and training of employees.

Personnel Ratios refer to deployment of people to various functions and departments. There
could be administrative ratio, clerical ratio or ratio of indirect to direct labor employees.

Sub-dimensions of Contextual Dimension

Environment

Goals and Strategy

Culture Technology

Size
Steps to development of an organizational design

Identification of key activities necessary to be performed for the achievement of objectives and
realization of mission through the formulated strategy. Grouping of activities that are similar in
nature and need a common set of skills to be performed. Choice of structure that could
accommodate the different group activities. Creation of departments, divisions, etc. to which the
group of activities could be assigned. Establishing interrelationship between different
departments for the purpose coordination and communication.

Levels of Strategic change:

Strategic

 Values and principles

 Mission, vision and goals

Operational

 Strategic plan

 Objectives

Tactical

 Actions

 Measure

 Day to day work

All Leaders and Managers, regardless of what level they work at, should apply Strategic
Thinking every day.  When you think strategically, everything you do starts to change.  This
means that you are always considering all three levels every day and with every decision.

Strategic Thinkers ground themselves in the values, principles, mission, and vision of the
organization–regardless if they came up with them or not.  They are constantly evaluating every
decision to ensure it fits within the values and principles, is it part of the mission of what they
should be doing, and does it move the organization toward the vision.

Strategic Thinkers understand that nothing–I repeat NOTHING–happens at the Strategic-level

outside of creating direction.  Things do not get done at the Strategic-level and if they think they
will, they’re simply fooling themselves.  If you are waiting for something “strategic” to happen,
then you’re going to wait a long time.  Things happen at the Tactical-level.

Strategic Thinkers ensure that their programs are aligned to the strategy of the organization. 
Programs are long-term and very lasting, thus they should be 100% aligned with the mission. 
Programs do not support the vision–I know that may surprise you, but they don’t.  Strategic
Objectives, which are aligned to Strategic Goals, take the form of Projects.  Operational Projects,
which are temporary in nature, should be primarily designed to evolve Operational Programs to
move the organization toward its vision.

Projects are not always 100% aligned to the mission and vision of the organization, but for the
most part they should be.  Occasionally, you might have to do something that simply doesn’t
move the strategic needle.

Strategic Thinkers know that this means that Programs are mission-focused and Projects are
vision-focused.  Thus, Strategic Thinkers don’t live in Strategy Land pushing down new idea
after new idea.  They ensure the programs running in the organization support the mission
100%.  They also ensure organizational Projects are designed to move the organization’s
Programs toward the vision.  If something isn’t supporting the strategic plan of the organization,
it must be questioned.

At the Tactical-level, Strategic Thinkers know this is where the real work gets done.  However,
there are two types of tactical work–Program and Project.  Understanding this helps those who
operate at the Tactical-level connect to the mission.  Also, understanding this helps those that
operate at the Operational-level better focus on how their day-to-day actions affect the bigger
picture and thus relieves a lot of stress and frustration.

The act of strategic planning is a tactical activity that should operate within an operational
program–in other words, organizational strategic thinking is a strategic program that should
always exist.  The problem is that it seldom does.

If you work at the day-to-day Tactical-level, your actions exist within a Program and sometimes
they support a Project designed to evolve a Program.  Just thinking this way fully aligns what
you do every day to the strategy.  If what you’re doing every day doesn’t support this, ask
yourself why.

Group, Team and Individual Level Change:

Changes can happen and/or impact, within an organization, on four different levels (see graphic
below.)  There can be one or several levels affected by a Change. It is important to understand
the levels change impacts, as they are the base for appropriate measures and interventions.

Individual or team changes (levels 1 and 2) are changes within the system (organization),
changes on level 3 (organization) are changing the system itself, while changes on level 4
(relevant context and environment) impact the wider system an organization is operating in. (for
example the segment, market or industry)
  Changes at a higher level always affect the lower levels.
 Changes at a lower level can but do not have to affect the higher levels.
 Interventions at all effected levels can but must not be appropriate (it needs to be
decided)

Individual Level

At the end, every changes no mater on which level always impact the individuals. [EG. global
warming; a bankruptcy of a company; a new IT system, a new team set-up, a new job etc.]
Change usually is seen as a threat and therefore leads to fear and resistance. The Resistance of an
individual towards a change depends on two factors:
1. Does someone feel affected by the change? No | Yes go to 2nd
2. If yes, is it perceived positive or as negative [a threat/a loss] ==> Fear / Resistance? Often
there is a big discrepancy between the felt impact and the real impact on a person.

Group / Team Level

Changes often affect groups or teams, this can happen from the outside or from the inside. They
have to adapt to new situations, processes, systems and tasks. They are set up, composed newly
or ceased; they are transferred to somewhere else … Severe changes inevitably create dynamics
in the team/ group which are likely to affect it’s communication, interaction and cooperation in
the inn & outside. How to support groups and teams appropriately before during and after the
changes is the matter here. If groups / teams need to change, then individuals need to change too.

Organizational Level

Sometimes entire parts of or even the entire organizations need to change. These are normally
the severest changes that can happen. [E.G. impact of Carve out on Organization: massive
organizational insecurity, Alienation although still part of the old organization, insider/ outsider
question, cut interfaces / processes, new systems and procedures...] If the organization changes,
teams / groups need to change and therefore individuals. How to support the organization and the
relevant groups / teams appropriately during the changes is the matter here. As numerous
interventions on different levels need to be orchestrated the use of Change Architectures
becomes a necessity. This kind of organizational change usually goes along with changes in
attitude or culture and is both, complex and long term.

Organizational structure and culture

Organizational structure

The typically hierarchical arrangement of lines of authority, communications, rights and duties of
an organization. Organizational structure determines how the roles, power and responsibilities
are assigned, controlled, and coordinated, and how information flows between the different
management. A structure depends on the organization's objectives and strategy. In a centralized
structure, the top layer of management has most of the decision making power and has tight
control over departments and divisions. In a decentralized structure, the decision making power
is distributed and the departments and divisions may have different degrees of independence. A
company such as Proctor & Gamble that sells multiple products may organize their structure so
that groups are divided according to each product and depending on geographical area as well.

An organizational chart illustrates the organizational structure.

Organizational culture

The values and behaviors that contribute to the unique social and psychological environment of
an organization.

Organizational culture includes an organization's expectations, experiences, philosophy, and

values that hold it together, and is expressed in its self-image, inner workings, interactions with
the outside world, and future expectations. It is based on shared attitudes, beliefs, customs, and
written and unwritten rules that have been developed over time and are considered valid. Also
called corporate culture, it's shown in

(1) the ways the organization conducts its business, treats its employees, customers, and the
wider community,
(2) the extent to which freedom is allowed in decision making, developing new ideas, and
personal expression,
(3) how power and information flow through its hierarchy, and
(4) how committed employees are towards collective objectives.

It affects the organization's productivity and performance, and provides guidelines on customer
care and service, product quality and safety, attendance and punctuality, and concern for the
environment. It also extends to production-methods, marketing and advertising practices, and to
new product creation. Organizational culture is unique for every organization and one of the
hardest things to change.

Organization Culture and Change Management

Organization Culture
A system of shared values, assumptions, beliefs, and norms that unite the members of an
organization.
Reflects employees’ views about “the way things are done around here.”
The culture specific to each firm affects how employees feel and act and the type of employee
hired and retained by the company.

In order to survive, organizations and their cultures must continuously evolve and change.
Conditions prompting change
 o Economic crises
o Changes in laws or regulations
o Social developments
o Global competition
o Demographic trends
o Explosive technological changes

“Cultures change when an organization discovers, invents or develops solutions to problems it

faces.”
Managing Organizational Change
Organization culture can facilitate or inhibit change in an organization.
A firm attempts to change organizational culture because the current culture hinders the
attainment of corporate goals.
Environmental and internal forces can stimulate the need for organization change.

Environmental Forces
- Put pressure on how a firm conducts its business and its relationships with customers, suppliers,
and employees.
- Environmental forces include:
- Technology
- Market forces
- Political and regulatory forces
- Social trends

Three important issues in an Organization’s Culture

> Ethics
> Diversity of employees
> Leadership behavior
UNIT III
The role of leadership in change management

Effective leaders:

z Challenge the process; they are innovators

z Inspire a shared vision; they focus on goals

z Enable others to act; they are team builders

z Model the way; they walk the talk

z Encourage the heart with visible signs of support; they are advocates for their teams

Leadership versus Management

Leaders:

z Innovate

z Ask what and why

z Do the right thing

z Are not afraid to engage conflict and work through it to accomplish change

z Initiate transformations, endings, transitions, new beginnings

Managers:

z Implement

z Ask how and when

z Do things right

z View conflict as counter-productive and prefer cooperation to accomplish procedures

z Maintain order, consistency, harmony

Change communications

• Role of communications during change

• Audience segmentation

• Which channels to use

 • The role of the leader

• Communication needs during change

• Tips for successful change

• Potential pitfalls

• Group discussion

Role of communications

• Explain why change is happening:

• Ensure people understand the rationale for change

• Talk about the benefits / consequences

• Emphasise what’s not changing

• Show people where they are going:

• Map out the process of change

• Identify and recognise key milestones; celebrate success

• Show people how they will get there:

• Break it down into clear, simple steps

• Give practical examples

• Be directional

Planning your communication

• Establish a clear vision and objectives

• Divide the project into phases

• Confirm key milestones for each phase

• Identify your target audiences

• Select your channels

• Select your spokesperson/people

• Determine resources and timetable

RESISTANCE TO CHANGE

o Why Resistance to Change???

- Fear of the unknown.
- Lack of good information.
- Fear for loss of security.
- No reason to change.
- Fear for loss of power.
- Lack of resources.

o Factors Effecting Change

- Advocates of Change
- Degree of Change
- Time Frame
- Impact on Culture
- Evaluation of Change
o Overcoming Resistance To Change
- Education & Communication
- Advantage:
Creates willingness to help with the change
- Disadvantage:
Can be time consuming.

Organizational Learning, Organizational Culture, Change Organizational

Politics

The nature of organizational structure greatly influences its change when it decides to bring
change in its structure and practices. It should distribute its knowledge and communicate
properly among its member. By keeping in view that there is consistency in change, organization
can survive? Because of the uniqueness of organizational practices and setup it is difficult to
administer the change in skills and knowledge of members that are beneficial for the
organization

Socialization and motivational aspects of employees bring significant change in organizational

culture. Mechanistic and organic culture have important role to play in organizational culture.
The level of efficiency and effectiveness and performance of individuals depend on the norms
and values of organization. Organizational performance and profit would be enhanced by
promoting the leadership competencies and culture of the organizational members so that the
organization is able to get the full response from its members. Organizational culture is greatly
influenced by adhocracy culture that promotes innovation. The success of the organization relies
on effective management of its leader
 As organizational politics is a search of self interest of individuals, some of the selfish
organizational members primarily promote self interest even at the expense of the organizational
objectives but pretended as if their activities are in the direction of greater organizational goal.
When an organization engaged in the development of new product it sometime do not consider
the element of political unfairness. Contents of job and level of hierarchy also decide about the
politics of the organization.
Organizational learning is influenced by the culture, changing physiological contract and power
differential between groups and leadership. All human resource management activities largely
reflect the organizational learning which has positive relationship with organization
performance.

Three important issues in an Organization’s Culture

> Ethics
> Diversity of employees
> Leadership behavior

Changing Organizational Culture

Top leaders can set the tone for a culture and for culture change.

Involve the keepers and holders of the culture.

Build on what all organizational members share.
Teach new members how to behave.
Leaders who strive for high-quality products and services understand

Implementing Organizational Change

Top-down Change
Change Agents
Bottom-up Change

Targets for Change

Individuals
Groups
The Organization
The Environment

Individual Targets
Changes in this area are triggered by new staffing strategies or by an effort to enhance workforce
diversity.
The number and skills of the human resource component.
Improving levels of employee motivation and performance.

Group Targets
Involves changes in the nature of the relationship between managers and subordinates or the
relationships within work groups.
Organizational Targets
Changes in any of the following areas:
Basic goals and strategies of the organization
Products, quality, or services offered
Organizational structure
The composition of work units
Organizational processes such as reward, communication, or information processing system

The culture

 Environmental Targets
Involves changing sectors of an organization’s environment
For example, changes in products or services offered may require new technology or a new
distribution system.

 Change agents should take the following steps to obtain a successful change outcome
Establish a sense of urgency.
Form a powerful coalition of supporters of change.
Create a vision of change.
Communicate the vision of change.
Empower others to act on the vision.
Plan and create short-term wins.
Consolidate improvements and produce still more change.
Institutionalize new approaches.

UNIT IV

HR and MANAGING CHANGE:

Recruitment & Selection:

• Defining the vacancy (the job or role to be filled)

• Identifying relevant personal attributes correlated with effectiveness (person

specification)

• Searching for and attracting relevant applicants

Selection

• Assessing candidates

• Narrowing down the field

 • Making the final decision

Internal recruitment: meets manpower requirements from the existing stock of employees, except
at the lowest level.

• Internal recruitment may be vehicle for establishing ‘cultural fit’, morale, and
commitment, reinforced by socialisation

External recruitment: meets manpower requirements by recruiting from outside

• May be used as a symbol that ‘times are changing’

Recruitment & Selection flowing down from Corporate Strategy

• Here the objective of recruitment & section would be to recruit people who will enhance
the org.’s capacity to deliver its corporate strategy.

• E.g. for an INNOVATION corp. strategy, the company would seek to recruit people
with:

– highly innovative behaviour

– preference/ability for co-operative behaviour

– relatively high risk taking

– tolerant of uncertainty

– moderate concern for quality of output

– balanced orientation toward process and results

– longer-term focus

• For a QUALITY ENHANCEMENT or COST REDUCTION corp. strategies, the patterns

would be different

Employee Behaviour Continua Relevant to Corporate Strategy

• Innovation (lo to hi)

• Self-autonomy (lo to hi, etc.)

• Risk taking

• Adaptability to change

• Comfort with certainty

 • Concern for quality

• Concern for quantity

• Concern for outcomes Responsibility preference (avoids vs. seeks)

• Job/org involvement

• Skill base (broad-narrow)

• Time focus (long/short term)

. Recruitment & Selection flowing down from Organisational Structure

Behaviours required in managers in Organic Organisations:

• networking

• team building

• information retrieval

• innovative problem solving

• Mgt competencies required in Organic organisations

• info search

• concept formation

• conceptual flexibility

• interpersonal search

• managing interaction

• developmental orientation

• self confidence

• proactively

• achievement orientation

• (These may be needed by non-managers too)

Performance management and reward management

o Promotes two-way communication and participation

 o Provides a mechanism for determining and establishing goals critical to the organization

o Focuses on desired results and the processes to achieve them

o Emphasizes individual contribution to success and establishes rewards for superior

performance

o Helps identify employee development needs

o Promotes individual and organizational success

Reward management

Reward management is concerned with the formulation and implementation of strategies and
policies that aim to reward people fairly, equitably and consistently in accordance with their
value to the organization

Reward management consists of analysing and controlling employee remuneration,

compensation and all of the other benefits for the employees. Reward management aims to create
and efficiently operate a reward structure for an organization. Reward structure usually consists
of pay policy and practices, salary and payroll administration, total reward, minimum wage,
executive pay and team reward

Supporting the performance and reward philosophy

The Performance and Reward Program is critical to supporting the System’s philosophy, while
providing a collaborative and accountable process that integrates individual success and the
Performance and Outcomes Plan of the organization.

Technological change
It is critical, especially during tough economic times, to ensure technology projects within your
organization are completed on time and within budget. But often, a significant piece of the
project is overlooked in the rush to meet these goals. That missing piece is the people -- those
individuals affected by the technology that is being implemented

It's important not to forget that your organization is made up of people and, therefore,
consideration for the effects of the technology change on these people is important to the success
of the project.

Research has shown that individuals can have a profound impact on the success or failure of a
project within organizations. How much individuals are on board with the project, how much
training they've had, and how much people know about a technology change can make or break a
project. Therefore, it's critical to mitigate the impact of the technological change proactively by
using all of the following methods2:

 Leadership. Getting executive level support for the technological change is critical. It's
important to involve leadership and have them openly support the change from the very
beginning and throughout the entire project. Pull them in, when needed, throughout the
project to reinforce their support.
 Communication. You can never communicate enough about the change. Share
information with all stakeholders. It's important to communicate -- and even over
communicate. Creating a communications plan can help the process. Develop a schedule
of the types of communication that will occur (conference calls, meetings, e-mail updates
about the project, etc.) and whom will be involved in those communications and
disseminate that information to all stakeholders.
 End-user involvement – Involve those affected by the technological change or those
who utilize the old and new technologies. These people need to be actively involved in
the project from the very beginning to the end.
 Training & Education. It is not only important to provide training on the new system
and to develop a training plan, but it's also important to educate staff within the
organization about the change. People need to understand why the change is occurring
and how it will affect their jobs.

The impact of technological change on organization management

Technological change will have an impact on all organizations. There will be a need for new
types of managerial, diplomatic, and social skills and a concomitant need for a new type of
decision making process that will not be accommodated by existing organizational structures.

Three particular aspects of the organizational environment will be affected by technological

change: the amount of market competition and uncertainty will increase; there will be
requirements for more diversity and higher quality in the organization's products or services; and
external politics and legislative reform will increase in complexity. Each of these changes will
provoke responses from the organization in its structure and relationships with employees and
customers.

The net result of technological change for all organizations is a greater requirement for strategic
planning. All of us must continually ask the question "What do we have to do now to attain our
objective tomorrow?" Through this process we can anticipate changes, including those brought
about by technology, evaluate the various alternatives available to us to cope with those changes,
and be prepared for the future as it arrives.
UNIT V

Employee relations strategy:

Employee relations strategies define the intensions of the organization about what needs to be
done and what needs to be changed in the ways in which the organization manages its relationship
with employees and their trade unions.

Concerns of employee relations strategy

Employee relations strategy will be concerned with how to:

Build stable and cooperative relationships with employees that minimize conflict
 Achieve commitment through employee involvement and communications processes
Develop mutuality

Approaches to employee relations

o Adversarial

o Traditional

o Partnership

o Power sharing

The HRM approach to employee relations

• A drive for commitment

• An emphasis on mutuality
• The organization of complementary forms of communication
• A shift from collective bargaining to individual contracts
• The use of employee involvement techniques such as quality circles or improvement
groups
• Continuous pressure on quality ±total quality management
• Increased flexibility in working arrangements, including multi-skilling, to provide for the more
effective use of human resources, sometimes accompanied by an agreement to provide secure
employment for the 'core' workers
• Emphasis on teamwork
• Harmonization of terms and conditions for all employees
Formulating strategies

Partnership agreements

Key values:
1. Mutual trust and respect
2. A joint vision for the future and the means to achieve it
3. Continuous exchange of information
4. Recognition of the central role of collective bargaining
5. Devolved decision-making

Managing change through employee involvement

• Downward communication

• Problem-solving involvement and upward communication

• Consultation

• Involvement through structural changes at job and work organization levels

• Financial involvement

• Managerial style and leadership

Managing Downsizing in Organizational Change:

In the course of organizational restructuring, managers are frequently required to discuss such
sensitive issues as voluntary early retirement, job redeployment or other changes that directly
impact on the person’s employment circumstances. These conversations can be quite challenging
for managers, especially those who have not previously experienced this type of task.
Understanding why the conversations are ‘difficult’ and learning how to manage them
effectively is a key skill for any manager wishing to advance their skills and career.

A five stage model which can act as a road map for planning downsizing and
reviewing its implementation.

1. Retention of corporate reputation

When a company makes an announcement to close or to downsize its operations, the

consequences of such a decision upon the local community and the customer and supplier bases
are profound. It is, therefore, essential that the reasons for making such a decision are clearly
communicated by the company to the affected people and groups before rumor and innuendo
increase the barriers of acceptance of the need for such a decision. Closure or downsizing is a
balancing act; managers must protect the reputation and the legacy of the organization and they
must also consider the impact of the decision upon those customers served by the facility to be
closed or downsized and those people who are employed within it.

2. Manage communications

This consists of informing two types of interested parties, those who are external to the
organization and those who are employees of the firm. External communications consist of
accurate and timely information about what capacity management decisions have been made and
the reasons for those decisions. Internal communication aims to keep employees informed fully
about the planned changes to be made to the number of people employed by the firm and why
the organization is downsizing. In addition, it is essential to inform employees why the plant to
be closed or downsized has been chosen for such types of organizational change. In my
experience many organizations are not very good at managing the total communication process,
often the reasons for downsizing or facility closure are not clearly communicated to the
employees affected which stimulates a higher level of resistance to change.

3. Manage the actual closure

This stage is essentially an important project management activity. It is very much a key
operational task; it will involve setting the vision for the closure or downsizing, planning its
timing and the run-down of operations, determining the reduction of employee numbers and the
company’s separation policy and clarifying and informing employees of their role in the
immediate future. It involves creating and maintaining a clear vision of the capacity reduction
process and the preparation of a sound operational plan for everybody to understand their part in
the closure process or their future contribution to business operations following downsizing.

4. Manage investment in employees

This stage is where attention to employee aspects of closure or downsizing will have the greatest
impact. If you don’t understand the emotional impact upon employees of a downsizing or closure
decision, it can prove to be both a difficult and a very costly process to implement. Counseling
and training people for displacement and determining the appropriate separation packages will
take time and effort. The survivors of such decisions should also be offered such counseling or
mentoring to ensure the rebuilding of their commitment to the company and their motivation to
continue as one of its employees.

5. Manage continuity of operations

This involves the creation of a multi-functional leadership team. It requires the involvement of
both Trade Union representatives and employees (or employee representatives). During the run
down of operations to closure, some employees may require to be trained to substitute for those
leaving prior to closure. Therefore, their development to fill early leavers’ roles within the
business will need to be anticipated and managed. Downsizing creates opportunities to identify,
train and develop capable employees to fulfill more responsible roles within the firm. Their
selection and mentoring creates additional challenges for middle management who will be
already stretched by managing the implementation of the downsizing or the closure process.
Evaluation and promotion change

 Performance evaluation report is not directly linked with compensation. But it is somehow
linked indirectly

• An officer is given different indirect benefits.

• Punishment if poor performance is evaluated, no detention is given to the officer.

• He is transferred to some other unit or fired from the job, if two consecutive negative appraisals
are reported.

 Performance Evaluation and Transfer and Promotion Decisions with Performance Evaluation
is very important for transfer or promotion decisions. Performance Evaluation and Transfer
Decisions

• If the result of an officer’s performance evaluation is below the prescribed standards in this
case he is transferred to some other unit

Two consecutive poor evaluation result in termination form the job Performance Evaluation and
Promotion Decision.

 Officer’s Evaluating Report is majorly important for promotional decisions of an officer

 On bad performance reported an officer is not recommended for the promotion
 On Good evaluation reported an officer is recommended for promotion by the senior
reporting officer and then the officer under goes in a procedure for the promotion.