MODULE A: MANAGEMENT OF TRANSFORMATION
Today’s article is on the discussion of how the change is managed or the management of transformation from HRM Syllabus 2023.
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So, let us discuss – one of the important topic of HRM i.e. Change Management & MANAGEMENT OF TRANSFORMATION
To understand management of transformation, we first need to understand change management i.e. the fact that the business environment of the 21st century is characterized by rapid changes caused by technological, economic, political and social changes.
It goes without saying that “he who refuses change is the architect of decline, and the only human institution that refuses progress is the graveyard.”
So, unless change is actively embraced, organizations are at risk of becoming obsolete in the 21st century.
But resisting change is as basic as human nature, so change managers must adopt an inclusive approach that takes into account personality clashes and ego battles. Some Approaches include:
- a combination of coercive tactics and coordination instead of competition and co-option,
- Organizations, therefore, must and should embrace change.
THE NEED FOR CHANGE MANAGEMENT (in detail):
Change management is a complex process and requires serious attention and involvement from leadership and people at all levels to achieve meaningful or progressive transformation across multiple levels.
- To stay ahead in the competitive race and gain a winning edge, organizations have focused on expanding business globally, achieving excellence in processes and operations, innovating in technology, and identifying the right talent.
- Change is inevitable and can only be managed, otherwise the organization may perish.
- In the era of globalization, organizations operate across cultural boundaries with large investments in human capital and physical resources, placing maximum emphasis on technological change and innovative practices to gain a leadership advantage.
- To survive the fierce competition through (Business alliances) the transfer of people, technology, processes and leadership & to successfully manage this transition and turn the threats of change into opportunities, organizations must be flexible and open to change management.
- A well-defined change management process can help mitigate people-related risks. If this aspect is ignored, it could lead to an increase in overall costs, a decrease in employee productivity and motivation, and an increase in absenteeism and employee burnout.
- Planned change, if effectively implemented, can be beneficial in terms of cost control, risk minimization, stress and anxiety reduction through uncertainty control. It helps in setting new milestones, setting goals, defining priorities and determining constraints to achieve excellence in new initiatives.
- An effective change management process helps organizations understand the changing needs of customers and meet their demands and expectations much better because the requirements are well defined.
- Effective change management is the key to realizing operational efficiency because it leads to holistic results and enables the achievement of results by defining excellent benchmarks and moving towards them to realize the set benchmarks.
- It helps create an integrated framework for achieving development goals with full involvement of people in the end-to-end stages of the change management cycle.
And the success of the change management process largely depends on effective planning, setting goals, communicating the goals to the people involved, and establishing the required framework for achieving the expected goals or outcomes.
WHAT IS TRANSFORMAL CHANGE?
According to Macredi and Sandom, 1999, the ability to successfully manage change has become a vital asset in the current scenario for an organization to remain competitive in an unstable environment.
Transformational change means changes in certain areas that are caused by interaction with environmental factors and create the need for new behavior or changes in the behavior of the organization’s employees.
- Jick and Peiperl – transformation is referred to as organizational reorientation.
- Cummings and Worley and Grobler viewed transformational changes as paradigm modifications at both individual and organizational levels.
Transformational leaders play a key role in organizational transformation and help respond to external forces by proactively assessing external challenges and developing and implementing strategic interventions accordingly.
Below are the different factors that build up the structure of Transformational change:
- External Environment: Represents the external factors or situations that affect the performance of the organization, such as the global economy, political/government factors, and legislation.
- Mission and Strategy: Mission is an organization’s reason for existence and strategy is a road map of action and how the organization achieves its goals/purpose over a period of time. A written mission statement guides employees in their pursuit of organizational excellence.
- Leadership: Leaders provide direction and guidance to employees to behave and perform as expected.
- Organizational Culture: Organizational culture influences employee behavior and the way employees do things.
- Structure: Structure describes the hierarchical pattern in an organization, levels of responsibility and arrangement of functions, decision-making authority, communication patterns and relationships to ensure effective implementation of organizational strategy and achievement of objectives.
There are 10 prerequisites for transformational change:
- Ensuring top management commitment to change that should even be visible to all members of the organization.
- Developing a written mission statement and futuristic vision/direction for the organization that can provide guidance on goals, policies, and values.
- Building shared awareness and changes in employees’ perception of the need for change.
- Selection of a team of key managers and opinion leaders who will play a key role in gaining employee commitment to change and in spreading the change throughout the organization.
- Creating acceptance of the overall change process and the entire transformation process.
- Developing an understanding that resistance to change is inevitable and needs to be managed effectively.
- Educating and training participants on the necessary competencies needed to effectively overcome resistance to change and gain their commitment.
- Take steps to avoid blame or any kind of negative behavior that may create any kind of resistance to change.
- Using appropriate resources to facilitate this entire process of transformation or change.
- Maintaining open channels of communication regarding key processes, failures, challenges and lessons learned from new initiatives.
In summary, transformational change has been described from different perspectives.
At once, transformational change refers to:
- changing the structure, culture and key processes of an organization
- and transformational change requires changes in employees’ attitudes, beliefs and values
- and it involves redefining the organization’s overall strategy, gaining employee commitment to the transformation process, and reorienting the culture of the entire organization.
- And transformational change is a time-consuming process and requires comprehensive coordination and complete management support for effective results
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