Hi-Tech Electronics Pvt. Ltd. is a multinational firm based in America that was founded by the Parker family in 1978. The company manufactures and sells a number of consumer electronic products, such as Personal Computers, LED TVs, cameras, smartphones, storage devices, laptops, etc. and has been doing a good business since its foundation. The company started its international expansion in the early 1990s and as of today, it has its operations running in 3 countries while its products are being sold throughout the world. The company has a workforce of around 1,700 employees who work in a streamlined organisational structure that comprises of different departments. The operational departments of the company are manufacturing and production, finance, human resource management and marketing and sales.
The company has been experiencing a number of issues in the past few months in relation to the way in which it sends and receives information amongst various departments. The result of these issues has been a 0.4% fall in the sales of the company within 2 months because of loss of productivity and efficiency. After a number of meetings with the senior level managers and the board of directors, it was identified that the company requires a full-fledged ERP business suite, which will be specially designed to cater to the operational needs of the company, to align the operations of all its departments and to make the process of sharing and receiving information and data more effective.
At present, the company uses traditional methods of establishing communication between different departments. Most of the information and date between various departments is shared by the managers using written or printed documents, e-mails, etc. but shifting to ERP business suite will be a huge transformation as all the process of sharing information would become automated. Therefore, the company has decided to place an order for an ERP business suite as soon as possible and start designing a change program that would engage all the stakeholders and convince them to make a transformation from their previous work practices to a better way of working.
Under this section of the report, we will discuss three most talked about models of change management, which have been developed by pioneers of the subject. These models are – Kurt Lewin’s 3 stage model, Kotter’s change management theory and the ADKAR model.
Kurt Lewin, one of the pioneers in the subject of change management, developed a three stage model that includes three steps towards implementing a change i.e. unfreezing, changing and refreezing. The model developed by Kurt Lewin is widely used by business organisations in the present day world because of its simplicity and practicality (Burnes, 2004). The model is based on Lewin’s perception that for a change to be implemented, there is a need to create an urgency, then move towards the change and finally, solidify or reinforce the new behaviour amongst the employees (Burke, 2017). Let us now discuss Kurt Lewin’s 3 stage model in detail:
Unfreeze à according to Kurt Lewin, in order to implement a change in the workplace, it is important for the managers to create an awareness amongst the employees that a change is required for the organisation to become more effective and productive. As it is a natural tendency of human beings to resist changes, it is important that they perceive a change as an urgency and are aware about the way in which the change program is going to help them and their company (Hussain, et al., 2016).
Changing à this is the second stage in which the actual change takes place and the things begin to move. Once an urgency has been established in the workplace, the next step is to implement the change and make it real. It is in this stage that the employees have to change and develop fear of the unknown in their minds. Therefore, it is important for managers to be prepared to deal with resistance to the change program and ensure communication and ample support to the employees (Burnes & Bargal, 2017). In this stage, to increase the chances of success, the managers should continuously remind the employees about the way in which the change will be beneficial for them as well as for the company.
Refreezing à this is the final stage in the model suggest be Lewin and is the most important stage in a change program. He suggests that once the changes are accepted by the employees and the managers can feel a change in their behaviour, the changes achieved should be reinforced into the organisation by rewarding and appreciating the employees (Cummings, et al., 2016). This will help in reinforcing the right behaviour in the mind of the employees so that the changes achieved are not lost.
John Kotter, another famous pioneer in the subject of change management, developed a change management theory that consists of 8 steps and is commonly known as Kotter’s 8 step change model. A detailed account of Kotter’s change model is given below:
Also known as Prosci ADKAR Model, this model of change management is a goal-oriented model that can help in guiding individuals as well as an entire organisation towards a change program. The model was developed by Prosci founder Jeff Hiatt. In this model, ADKAR is an acronym that represents awareness, desire, knowledge, ability and reinforcement (Hiatt, 2006). Applying this model in organisations allows human resource managers to focus on activities that can motivate individuals to accept a change and achieve organisational results by building on the achievements.
Awareness à this is the first stage of the model in which human resource managers are suggested to create an awareness in the organisation about the change program and the reasons for its requirement. In absence of awareness, the likeliness of the employees perceiving it as a waste of time and resources increases and the change programs become more likely to fail (Lewis, 2012).
Desire à if there is a lack of desire amongst the employees to accept the change, it can become difficult to implement the change. Therefore, it is important for managers to indulge in one-on-one conversations with the employees and convince them to accept the changes rather than resisting the change program.
Knowledge à once the employees demonstrate a desire to change, the managers need to ensure that they possess the desired knowledge to effectively change from one stage to another. It is in this stage that the employees should be trained or developed to be able to accept the changes and implement them in the workplace (Hiatt, 2008).
Ability à once the employees attain the knowledge to accept and implement the change, it is important to check if they can put their knowledge into practice. Therefore, for the employees to put their knowledge into practice, it is important that they are made to perform tasks in a controlled environment where they can test their knowledge and can ask questions in case they make a mistake (Parker, et al., n.d.).
Reinforcement à like all other change models, this model also emphasises on the need to reinforce the change in behaviour that the employees have been able to achieve. Therefore, reinforcing the changes in behaviour of the employees should be rewarded and appreciated so that they stick in their minds and are not lost (Bareil, 2013).
The change models discussed above might sound too old to be applicable in the present economic conditions but there have been a large number of companies that have achieved success by implementing these models throughout their organisations and by successfully implementing transformations. Some example, where business organisations have used these models in the present economic conditions to implement workplace changes, are discussed below:
Continental Airlines is an American based airline company that was founded in 1934 and has its headquarters in Texas. The company has a number of ownership interests and partnership contracts with other major carriers. The company has gone through a very bad phase in the past decades as it filed for bankruptcy twice in the United States. Even after a number of mergers and acquisitions, the airline company was unable to establish itself and was in a pretty bad shape (Brenneman, 1998). It was only in 1994 that Bethune took over the company and immediately started to unfreeze the situation in the company, in order to break the failing system. He shifted the focus of the company from cost cutting to offering quality products and services to the customers. It was in this stage that he offered rewards for company improvement. Under this reward system, he announced that the staff members of the company would get a reward of $65 each if the airline company would be identified as one of the top 5 companies by the US Department of Transportation, which brought cohesiveness in the company and they started to succeed together. Bethune promoted open communication throughout the organisation and was always honest with his workforce while the change program was being implemented. Once the staff was able to bring in changes in their work patterns, he started refreezing the changes and Continental airlines became one of the most successful companies as a result of Kurt Lewin’s Change Strategy (Tobin, 2009).
Strategic interventions techniques in an organisation, with respect to change management, are a set of techniques or planned interventions that the management of an organisation implements to bring about some desired changes in the processes, operations, individuals, teams, departments or the organisation on the whole, which ultimately leads to the development of an organisation (Uwah, et al., 2009). The strategic interventions used by a business organisation can vary depending upon the nature of change, size of change and also on the industry in which a company operates. In the business world, just like one size does not fit everyone, a single organisational intervention cannot fit every organisation. Some important strategic intervention techniques, that can be used during change management by business organisations, are discussed below:
The current micro and macro environment conditions are changing at such a rapid pace that they are constantly forcing business organisations to implement changes in order to cope up with them. Environmental factors, such as technological, economic, social, legal and political, etc. are changing in real time and are having a serious impact on business organisations. Due to the spread of globalisation, it was already very difficult for business organisations to keep up with the global market competition but the changing market trends are increasing the difficulties for business organisations and making it difficult for them to ensure long term market survival (Waddell, et al., 2016). Introducing changes in operations, processes, structures, operations, etc. has become important for business organisations as it helps them in developing their workforce as well as evolve in the market.
For this report, we have taken up the case of Hi-Tech Electronics, which is an American based multinational company that has been experiencing certain problems with its efficiency and productivity. Of late, the management of the company has realised that the communication system that is used to share information and data amongst different departments of the company is ineffective and is causing delays in several operations of the company (Ivanaj, et al., 2015). The present market conditions are forcing business organisations to streamline all their operations and become perfect in whatever they do. In such a scenario, the failure of Hi-Tech Electronics to effectively share information and data amongst various departments is decreasing the overall efficiency of the company. For becoming more effective in all its operations, it is important that the management of the company is able to share its marketing details and information with its human resources, sales and marketing department, production department, finance department etc. so that they can plan their future course of actions in accordance with the market situation. For example, if the marketing and sales team realises that the sales of their products is going to rise in the festival season and they will have to increase the production of certain products because of a higher demand, it will have to communicate important information and data to the production team and implement strategies to increase production as soon as possible. The failure of the sales department to communicate this piece of information can make it difficult for the company to meet the consumer demands during festival season, which would obviously be a huge loss for the company (Morris, 2013). Therefore, to improve the situation, the management of the company has decided to implement a change program in which, it would acquire an ERP business suite that would be used by different departments of the organisation to access information and data related to various operations.
in the present economic conditions, there are a number of internal and external factors that can trigger an urgency in business organisations to undergo minor as well as major changes. These factors not only force an organisation to change but can also have an impact on its market position, its long term strategies, goals and objectives. The factors that are driving the need for implementing a change at Hi-Tech electronics have been divided into two categories, i.e. internal and external factors. A detailed discussion on these factors is given below:
Internal factors: Internal factors are those factors that are related to the organisation itself. These changes are in the direct control of an organisation and can be related to restructuring, change in leadership, etc. The internal factors that are driving the change in Hi-Tech Electronics are given below:
Procedures àprocedures in an organisation are a set of standard processes and systems that are designed in a way to minimise wastage of work and ensure higher efficiency by utilising all resources in the best possible manner (Tang, 2016). In Hi-Tech Electronics, a lot of efforts of the human resources are being wasted because of inability of different departments to get their hands on important data and information, which makes most of the procedures inefficient. As a result, the need to make the procedures more efficient are driving the need for a change in the organisation.
External factors: External factors are those factors that are not in the direct control of a company and the ones that occur on the outside of an organisation’s framework. The external factors that are forcing the company to implement major workplace changes are discussed below:
Technological àthe global market scenario is changing at a very fast pace and technology is evolving at an unbelievable rate. Technological innovations are one of the major factors that are forcing business organisations to undergo real time changes. In the business world, most of the multinational organisations already have acquired software solutions that are helping them to streamline their operations and utilise their resources in the best possible manner (Rutter, 2017). Relying upon traditional solutions to establish communication between different departments and to share information and data within an organisation can take up a lot of time and can introduce inefficiencies in the system. As a result, adopting new technological solutions has become a need of the hour and is forcing the company to implement a change in its workplace.
Some business organisations have a tendency to resist workplace changes and ignore these factors when they drive a need for them to introduce major workplace changes. One of the prime reasons behind such an ignorance is the fear related to change programs in the minds of human resource managers. In most of the organisations, the workforce demonstrates high resistance to workplace changes and failure of a change program in such workplaces can be very damaging to the overall productivity. No matter how useless these factors or a change program might sound, but the impact that they can have on an organisation, if ignored, can be detrimental to its market position in the long run (Struijs, 2012). There are a large number of organisations that have lost their entire market share because of their inability to respond to certain internal and external factors that were driving a need for them to change. Some serious implications of not responding to strategic changes in business organisations are discussed below:
Financial implicationsà finances are the backbone of a business organisation and without financial resources, it would become impossible to run any business in this world. One of the prime objectives of running a business is to achieve profitability and a failure to respond to forces that drive organisational change can have a huge impact on the financial resources of a company (Ashish, 2011). In case of Hi-Tech Electronics, it can be seen that the failure of the company to use technology and streamline its operations is causing a delay in its manufacturing process and is making the organisation unable to meet the market demand of the customers. Fluctuations in manufacturing patterns would not only increase the cost of the products but will also increase the overall, which will decrease the profitability of the company. Further, the failure of the company to streamline its operations will also have an impact on its sales, which will reduce because of improper supply and production. Therefore, failure of the company to respond to the change program will have some serious financial consequences.
Human resourcesà the inability of a company to respond to change programs can also have an impact on its human resources. To ensure better productivity and efficiency in the workplace, it is important that the workforce of a company is engaged in their jobs and demonstrates high job satisfaction levels. In case there are inefficiencies in the system of a business organisation, it can become difficult to keep the employees engaged and properly utilise their skills and knowledge (Belcher, n.d.). As a result, there is a lot of wastage of talent, skills, knowledge and in certain cases, there is duplication of efforts, which demotivates the employees. Such workplace conditions can become a reason for job dissatisfaction and frustration amongst the employees as it limits their growth opportunities, which might lead to absenteeism and an increase in employee turnover rates.
Technological implicationsà not being able to respond to technological changes can make it difficult for a business organisations to offer higher quality products to their customers (Livingsta, 2017). For example, if Hi-Tech uses technological solutions to streamline its business operations, it would be able to react to the market situation in a better way, make changes to its products and services in real time, make research and development more effective, which would ultimately increase the quality of its products.
Change programs are considered to be nightmare by most of the contemporary human resource managers because of their inability to deal with the resistance to change programs that is offered by the stakeholders in their business. Therefore, it is important to involve stakeholders in a change program, if it has to be successfully implemented in a workplace. Certain strategies that can be used to involve stakeholders in a change program are:
Communicate à this is one of the most essential strategy that can be used to involve stakeholders in a change program. Using open communication channels and being honest can help in winning the trust of the stakeholders and ensuring successful implementation of a change program (Colwell, 2012).
Consult à consulting the change program with the stakeholders can keep them engaged and eliminate fear from their minds.
Collaborate à human resource managers can ask stakeholders to collaborate their thoughts and help in the designing of a change program, which ensures their involvement as well as engagement in the change program (Dudovskiy, 2012).
Co-create à under this strategy, human resource managers can work hand-in-hand with the stakeholders to execute, test and sustain change programs, which would make the stakeholders feel that they are an important part of the change program and keep them involved (Abudi, 2015).
Having a well-planned change management strategy with the stakeholders can exponentially increase the chances of success. One of the best strategies is the power/interest grid:
Under this model, stakeholders with high power and high interest should be closely managed. Stakeholders with high power but low interest should be kept satisfied by the management. Stakeholders with low power but high level of interest in the business should be continuously informed about the change program whereas the stakeholders with low power and low interest should be continuously monitored by using minimum resources (Dudovskiy, 2012).
The proposed system of involving the stakeholders in the change program is one of the most effective and cost productive strategy. The system can help human resources in categorizing different stakeholder groups into different categories and manage their interests using different methods and resources. Using this strategy, stakeholders that have a higher tendency to resist changes can be managed differently than the ones who have a lower tendency to resist workplace changes. Such a technique would not just prevent a company from wasting its time and other important resources, but would also ensure that the root causes of resistance are identified and dealt with before hand.
it has been often said that change programs are not the main problem, but resistance to change is. Certain strategies that the management of Hi-Tech Electronics can use to deal with resistance to change are given below:
Keep the stakeholders engaged à it is important for the company to keep the stakeholder engaged in the change program so that they feel that they are a part of it and it is being implemented for the betterment of the entire organisation (Maltz, 2008)
Communication à communication is the key to deal with resistance to change. Effective communication not only helps in keeping the stakeholder involved and engaged but can also help business organisations in ensuring that the employees do not develop a fear in their minds and avoiding rumours from spreading in the workplace.
Feedback à getting feedbacks from the stakeholders can help in improving the change program and ensuring that their issues are dealt with within the shortest possible time, which would make them less likely to resist workplace changes (Agboola & Salawu, 2010).
Staypositive à the attitude of the change agents and leaders of the workplace can have a huge impact on the workforce and they need to spread positivity in order to deal with resistance to change (Fernandez, et al., 2012).
Hi-Tech Electronics needs to implement the desired changes in its workplace as soon as possible as a delay in the process could have an impact on its market position. To increase the chances of success of its change program, the management can choose from a number of change management models, some of which have also been discussed in the above sections. Some of the models that can be best suitable for the company in the present scenario are the Change model developed by Kurt Lewin, Kotter’s 8 step change model, ADKAR model, The PES Model, etc.
Selecting a change management model from so many models available can depend on the choice of the human resource managers but the Kurt Lewin’s 3 Stage Model, can prove to be the best model of change management for the company.
The three stages for implementing a change would provide a good framework for the human resource managers at Hi-Tech Electronics to plan, implement and sustain a change in the workplace. The implementation plan for the change program is discussed below:
Unfreeze à in this stage, the managers at Hi-Tech Electronics will have to create an urgency in the organisation by sharing important facts, data and information with various departments, employees and the rest of the stakeholders. The managers will have to gather a lot of information and data that would be able to justify their decision of implementing a change in the workplace. They will also have to communicate the ways in which their operations can be made more effective, which would ultimately be beneficial for everyone in the company.
Moving/Changing à this is the second stage where the managers would actually have to implement a change. It is in this stage that the managers will tie up with software companies to acquire an ERP business suite that would be tailored to manage the operations of Hi-Tech Electronics. The software and the required infrastructure will be bought to the company in this stage and the managers would also have to implement training and development programs that would help the employees in understanding the working of ERP business suites. Training and development programs will help the employees in learning skills and competencies that would be required to operate ERP business suites to share, retrieve and store information related to their operations and also ensure safety of data at the same time. Training and development programs will help in keeping the employees involved and engaged and also in minimising resistance to change.
Freezing/sustain à this will be the last step in the change management program where the human resource managers of the company will have to monitor the progress that the employees would have achieved and re-enforcing the changes in the roots of the organisation. In this stage, it will also be important for human resource managers to reward and appreciate the employees for the efforts that they would have put in for making the change program successful, which will help the management in sustaining the changes in the future.
Measuring the progress of a change program is one of the most essential elements that ensures successful implementation of a change program. It is important for the management at Hi-Tech Electronics to monitor the progress of its change program regularly and continuously because it is a major change that would have a huge impact on all operations and processes. Some strategies that can be used to monitor the progress are discussed below:
Feedback à receiving continuous feedback from the employees and other stakeholders can help human resource managers in checking if the change program is going in the right direction and if a progress is being made.
Monitoring employee behaviour à one of the best ways to track progress of a change program is to monitor the changes that the employees demonstrate in their behaviour. A positive change in the attitude, habits or working of the employees is a sign of a positive progress.
Key performance indicators à one of the prime reasons behind the implementation of a change program is to achieve an improvement in the performance levels of an organisation. Human resource managers can use key performance indicators, specific to their industry and operations, to measure the changes that have been achieved in performance standards as a result of the change program. An improvement in the performance indicators will be a symbol for positive progress for the company.
Such strategies are widely used in the business world to track the progress of change programs and can be effectively used by Hi-Tech Electronics as well.
Conclusions
The report has provided a detail depth into the subject of organisational change management by discussing some of the best change management models and strategies. The report has also provided a detailed information on the resource implications that can occur if an organisation fails to implement workplace changes when internal and external factors drive a need for it to change.
Overall, relying on all the information discussed above, Hi-Tech Electronics will be able to understand the importance of implementing timely workplace changes and would also be able to choose a strategy that would enable it to successfully implement a change in the workplace. Further, Hi-Tech Technologies can also use the given information to involve its stakeholders in the change program and keep them engaged to achieve better results.
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