Question 2
Select an organisation that you are familiar with and provide a convincing argument on how you can manage change to bring about a distinct improvement to that organisation’s ability to be more strategically responsive.
PNS is a major superstore operating in Hong Kong. While it was able to successfully establish itself in the country’s retail industry, certain internal and external pressures had begun to affect the company’s overall performance. The growing competition in the industry, the inefficiency of the staff as well as the changing demands of the customers are some of the major issues being encountered by PNS. In order to address these, the organization developed specific objectives to bring about changes in its operations. Below are the components of the company’s change management project:
- To create a better shopping experience by greeting customers
- To develop a staff who are highly initiative and willing to help out the consumers
- To conduct specialist trainings to enhance the knowledge of the staff regarding store management and customer relations
- To implement efforts towards employee empowerment
- To reorganize staff structure for more effective work distribution
- To promote effective communication and team-building among company personnel
- To employ appropriate performance standards to evaluate the progress of implemented business plans or changes
A main component of this plan was the conduction of various trainings for the staff. The trainings focused on developing the employees’ communication, leadership and team-building skills. During the process, participants went through workshops that involve seminars, classroom discussions and actual demonstrations. These programs allowed the staff to learn more about the company’s operations, the expectations of the company from them as well as their work responsibilities. The trainings taught the staff participants the different means of dealing with customers, colleagues and other work situations that they could encounter.
The techniques for efficient customer relations and service provision were also part of the program. In addition, the program also helped the employees to get a clear vision on how exactly they could contribute to the company’s change management plans and future progress. The trainings also gave the participants the chance to comprehend how the change management project will be beneficial for them and the company.
In order to improve the coordination between the staff from various store departments, the training programs involved sessions participated by employees assigned in different store sections. This helped in making the participants understand more of each department’s responsibilities and operations. This has also been a means for the company to acquaint staff members with their colleagues. To facilitate the establishment of better work relations between these staff members, team-building activities were conducted. Games and presentations were included in the activity to make it entertaining and less formal.
In addition to training programs, the company also carried out modifications on its existing policies and standard operations. Specifically, stricter observance of store policies had been enforced. For example, in order to ensure that all employees are complying with uniform policies of the store, a daily shift inspection is done by the managers. In addition, managers are required to make regular store rounds to check on the employees assigned on their respective posts.
Naturally, certain sanctions are done to those who fail to follow the set policies. This new practice will help in instilling among the employees the significance of following company regulations. This will also increase the level of discipline among the staff. Problem areas in the store (e.g. blocked store aisles or passages, unavailable product stocks in the store shelves) can be addressed immediately. Moreover, increasing the visibility of the manager in the store can help in bringing the management and subordinate staff together.
Means of empowering the employees of the company had also been carried out in the process. One of the major developments in this change component is the training of selected managers in order for them to participate and contribute in other major activities of the company. This training program is designed to enhance the leadership potential, analytical skills and decision-making capabilities of the participants. Adding a new edge in their work responsibilities is a way of the company to motivate its store managers.
A clearer career ladder for both management and subordinate employees has also been developed. This has been developed especially to optimize the potentials and skills of each organizational member. Opportunities for promotion, salary increases and incentives are also provided for the staff. Regular company gatherings are also to be conducted to recognize employees who have contributed greatly to the company’s development. Furthermore, store managers have also been trained on how to constantly motivate their staff.
The changes introduced by the company had naturally caused a number of effects on the employees. This section will then identify how the change management project of PNS has impacted me and the staff. In particular, the developments and problems that were observed after the change project will be identified. Relevant theories that could further explain the project’s turn out will also be integrated in the discussion.
Impact on the Company
Significant developments were obtained by the company through its introduction of change. Its ability to develop effective developmental strategies for instance, had been developed. Through the initiation of change, the company management was able to develop a change project that directly addresses its main issues. By developing an appropriate plan, PNS was able to gradually achieve its objectives. This development is important as this allows the company to apply cost-effective projects. The value of this development had been stressed by the contingency theory. Basically, the contingency theory stresses that there is no single way on how one can manage different organizations.
The main message relayed by the contingency theory is that organizational leaders cannot apply a single and perfect management approach to any working environment. This means that a general and overall effective management system is neither existing nor is it possible to develop one. This is mainly because each company is subjected to distinct internal and external factors that it must overcome.
In order to overcome these challenging factors, an organization must then create an individualized style of management. The principles of the contingency theory support this general management concept. One, which has already been cited, is that there is no such thing as a universal means of management. Aside from this, an organization’s way of management must be adaptable to its subsystems. Most importantly, the contingency theory supports the concept that the success of the organizational system is largely dependent on it proper design based on the main activity of the organization and its type of workforce.
The change allowed the retail company to apply the concepts indicated in the contingency theory. In turn, this enabled the company to increase its competitiveness. Considering that the company is being threatened by the presence of several competitors and new business entrants, the change made it possible for PNS to maintain the business and integrate essential improvements. These include the development of highly-skilled employees, acquisition of better customer relations and enhancement overall store operations. In addition to this, the modifications in the company made its management sector more aware of the different pressures affecting the business. Another important development in the company brought about by change is that it made the company more adaptable, resourceful and creative. In terms of human relations, designing a change project that is directed for the customers and employees made the company more people-oriented, which is an important feature in today’s business sector. As people serve as the main support of the company, learning how to give them due value is an important factor for PNS’s progress in the future.
3.2 Impact on People
The introduction of change at PNS has resulted to several effects on its personnel. Although the change project was intended to improve the company’s operations, negative issues had also been observed. For instance, the initiation of change in the company has been difficult at first due to the resistance of some employees. The employees believe that change in the company will only take valuable resources such as funds, time and energy. They also believe that changing their work routines will only lead to work disruption. This in turn affected the training programs conducted during the change implementation phase as some employees would refrain to participate in the said programs.
This effect of change had been cited in (1951) theory of change. In this theory, noted that managers should be aware of the two types of resistance forces that can result from change. These forces are derived from customs or social habit and the other is from inner change resistance. The root of change resistance is brought about by the interplay between the group and its individual members. As most group members would want to maintain behavioral norms of the group, the individual resistance from each member would increase. This is the same in organizational application. Some PNS staff would want to maintain their usual work routines and practices; these employees’ resistance influences others, thus, the issue worsens.
Resistance to change is indeed a typical occurrence in organizations; previous applications of change in other organizations have resulted to similar effects. In a research done by (1999), the authors cited a multinational corporation that had enforced the belief system approach to every level of the company. In order to carry out this change, the company would have to downsize its employees. In addition, as the company is operating as a profit centre and competing against outside suppliers for internal customers, it had to rethink its entire operation and change the processes it had used for providing HR services, such as recruitment, selection and evaluation, training and development, and personnel record keeping. With this wide array of changes, the company management encountered a number of problems with their employees when they were implemented. For instance, the impact of downsizing had not only caused organization upheavals but stimulated strong emotions from the employees. Furthermore, not all employees in the organization were supportive of the belief system approach. Some, in fact, reacted with hostility towards the different change projects developed by the organization.
The company however, did not leave the problem unaddressed. The management encouraged its staff to participate in its training sessions, one-on-one sessions, team meetings, and follow-up sessions. Once the one-on-one sessions got underway, positive word-of-mouth quickly began to change employee attitudes. When people heard about the effectiveness of the belief approach in solving various organizational problems - and how good their co-workers felt after their one-on-one sessions - they became less apprehensive about participating and even began to look forward to meeting with their managers. In the six months after the belief system was introduced, the Vice President of Human Resources noticed a marked improvement in both organizational morale and performance. Team effectiveness also improved significantly. The manner to which managers deal with each other and handle conflicts also improved (1999).
PNS realized that its planned changes for the company will encounter resistance from some employees. Thus, the company also developed some measures to address this issue. For example, in order to reduce the level of resistance from the employees, the company relayed and discussed the change plan in advance. By avoiding surprises, employees are given the time to prepare and adjust themselves for the upcoming changes. Official meetings with the managers and employee representatives were conducted on a regular basis. The purpose of these meetings was to inform the managers and employees how change will be done in the company operations and how these will affect the organization. By means of giving out official information, rumors and assumptions were removed. Moreover, meeting with the company personnel is a good means of ensuring their participation and support for the project.
During the discussion of the company’s planned changes with the employees, PNS also ensure some important matters. For example, the company ensured that the support of the top management towards the plan is observed and emphasized. This was done as managers set the stage for change by showing a positive attitude towards it. This helped in boosting the confidence of the personnel towards the project plan. The discussion of the plan was also kept simple and comprehensive in order for the general audience to understand the project well and actively ask relevant questions. In addition, rather than stress total change to the employees, the company made sure that conventional ideals and values are still incorporated in the plans. Furthermore, the sentiments and feelings of the employees are accommodated during the said meetings. Valid objections are also acknowledged in order to relieve their fears and apprehensions towards the project.
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