Management of change
Section 3
One contemporary theoretical approach to the management of change, including strength and weaknesses
The theoretical approach that General Motors Company must follow in the management of change is the McKinsey 7S model for improved safety-
McKinsey 7 S Model is one of the models that are still in a trend where other models came in and vanished.
The 7 Stages
Strategy- Strategy is a plan that is done to tackle the competition, meanwhile achieving the goals. This is the first step of change according to the model framework.
Structure- the structure is the main attribute for this framework that is mainly related to the ways an organization’s divison or framework that they follow.
System- For a task to get completed and the way the daily activities are performed is what is known as the system stage.
Shared Values- Shared values are the main values or the core values in an organization, depending on which it runs or works.
Style- the way in which the leadership is performed, and the changes are brought about is known as Style.
Staff- Staff refers to the working force or the working capabilities of the employees.
Skills- the competencies and skill capabilities that the employees have in an organization like General Motors.
Strengths
It offers the methods to know the General Motors organization and also about its work
The McKinsey 7S model integrates both the practical and emotional aspects of change. This is something which helps the employees to make ways in order to enable the employees to cope up with the transitional easily.
The model considers all of the stages equally important and worth considering. Hence it does not leave out any aspect.
This model is also capable of offering a directional factor in organizational change.
Weakness
As in this model, all the stages are interdependent and interrelated with one another; hence failing of a stage in the model could lead to the disruption of the whole model. This are the major drawbacks of the model.
The model is complex in comparison to other models, and differences are not focused.
The companies that have applied the model have failed numerous times in many cases.
The contemporary theoretical approach that Bharat Petroleum in the management of change is Kotter’s change management model.
Kotter’s change management model is one of the most used and most popular models in the world. The model is basically divided into eight stages, where each of the factors is dependent on the main principles that are linked with the response of the people to change.
Stages
Increase urgency- this step is comprised of creating a sense of urgency within the employees ao that they are motivated to reach the goal in time.
Get the vision right- this step about taking the right step in vision but focusing not only on strategy but also on creativity, objectives, and emotional connection.
Build a team- Bharat petroleum has always associated with taking the right candidates in the team by recruitment on the basis of knowledge, skills, and commitment.
Communication-Communication is identified as one of the main criteria for communicating the concept of change to people.
Do not give up- persistence is essential for success, and it is necessary not to keep up when the process of change is still going, no matter how difficult the situation is.
Get things moving- in order to keep all things moving in the right direction, or may require the support and implementation of the feedback received constructively.
Focusing o short term goals- Dividing the large objectives into smaller goals when it can be achieved is an excellent way of completing tasks without taking to much of pressure.
Incorporate Change- Not only incorporating the change is necessary, but along with that reinforcing it and making it an ardent part of the organizational culture is equally important.
Strength
The Kotter’s change management model is an easy model and thus can be followed step by step and incorporated into the system of Bharat Petroleum.
This model promotes the idea of accepting the change and preparing for it.
Weakness
As the model is a step by step model; hence no step can be missed to reach the goal.
The whole process of the model can seem to be time-consuming.
The potential impacts of change upon people of different levels in organizations like General Motor or Bharat petroleum organization is somewhat similar and are as follows.
The organizations follow the Organizational Change Model to explain why and how do the employees get affected by the changes in the organization.
Shock- this is the most common phrase that is experienced by mostly all employees, starting from managers to subordinated to non-working staffs in the majority of the cases.
Denial- after the shock stage, the next phrase that is seen among the employees is the denial stage. This is the stage that is heard more than seen as in the first stage.
Reject- After both the consecutive stage of shock and denial, an employee then usually makes a conscious or non-conscious decision about the changes that are going to occur would be bad.
Tolerate with resistance- Among them the people mostly the junior employees who accept to stay but does not accept the change wholeheartedly, they shift to a model known as tolerance with resistance
Tolerance- when the higher management, especially the mangers, gets subjected to managerial changes by involving and accepting the aspects of change. Then there are also possibilities that the junior employees start to understand the strategic requirements for the change. Involvement can be initiated by asking the opinion or suggestion from the team for the organization.
Embrace- hence when an employee started to understand the change and understand the requirement of strategic development in the organization, the feeling for the growth of the organization may grow. While there are few people mostly the higher-level employees like managers and executives as they are more aware of the present condition of their organization hence understand the requirement of change thus may not require to move through the all five preparatory stages.
How and why HRM strategy aligns with organizational strategy?
In recent literature, it is seen how the human resource strategies and management have moved from its old traditional approaches to a more strategic role. Though there are certain gaps in the literature that are required to be addressed. There are mainly two types of strategies in organizations that can be distinguished in the literature they are cost-based strategy, and the other one is innovation-based strategy. This typology can also be made in the most famous model known as Porter’s organizational strategies of cost leadership or prospector strategy or defender strategy. Thus by linking the human aspects of an organization with that of an organizational strategy, the HR department would enable further the development of necessary skills and capabilities of the workers for the sources of viable competitive advantage and thus resulting in a positive outcome of the result. The functions of HR has not only be playing a part in the methods of organizational strategy formulation but also in providing its help in content and effective implementations. Thus when followed the theory of HR systems, we can make the bundles of the organizational strategies and roles related to HR for the advantage of organizational performance. As the business environment of today is increasing effectively with diverse, dynamic changes. The organizations that have an innovation-based strategy model they can learn and develop the organizational strategies and thus are able to respond quickly and keeps up with the fast-changing pace of the world. An essential factor in facilitating the innovativeness in the organizational capability is to improve the human capital accordingly. Thus the Hr professionals play a vital role in dealing with changes which in return are required for performance improvement. Therefore to have the capability to grab the opportunities that come along the way so facilitate change and innovate, which is significant to develop a sustainable competitive advantage. Thus this type of competences is known to be present in the HR strategic roles. These Strategies soles are focused on the future, involved in decision making, helps in improvement in HR integrated strategies and change, and finally, the overall change in the organizational system.
Academic concepts of “bundles of HR policies and Practices “
The article by Alejandro Bello Pintado explains the extent to which the practices of the HRM policies and bundles, along with the interaction among these groups, can have a powerful effect on the organizational outcomes. Thus by using a different innovative data set for the survey, he represented a whole representative sample of a manufacturing organization. Therefore many hypotheses in the link between the interaction ability, opportunity, motivation, and bundles of the practices of HRM policies are tested. Thus by an analysis, more than 150 manufacturing brands, including General Motors and Bharat Petroleum has partially highlighted the existence of hierarchy among the bundles. Thus by being the bundles of inspiration enhancement have helped HRM practices the most significant ro clarification in the manufacturing enhancement outcomes. Therefore based on the opportunities of bundle practices, the synergistic conversation in both the capability and opportunity of HRM bundle practices is observed to address different measures of performance. If a transformation like that happens, the HR functions may not be able to demonstrate the values related to strategies in an organization and deliver it to the performance of the organization. Though certain empirical studies have shown that the professionals of HR are mainly focus on the practices that are going on through traditions. At the same time, there are different studies that have also shown how the strategic HR roles can be continued simultaneously with the organizational HR role. Though there is a never-ending debate on explanation, existence, the importance of the roles of the HR professionals, but there is not much of the impact is being known on organizational strategies or performance outcomes.
The three best HR practices to help the managers and employees to improve the individual, team, and organizational performance.
Providing security to the employees working in the organization
The first practice in the HRM department should be employment security. Having an organization that provides its employees with a security factor for himself and for the family is a reason why most of the people come to work. There can be both a formal or an informal contract between an employee and his boss. Employment security thus enables an employee to go back home after work and spend quality time with the facility with no tension of the future. Therefore the essence of security is essential.
Selecting the right people
The second best practice in the HRM is to bring in the candidates who can provide certain values to the organization. An organization can not just hire anyone; they want people who can fit into their job. Companies look for hiring the most talented and skilled people as they tend to offer certain values to the job of the organization. Researchers have shown that there is a difference between the performance of an average person than that of a highly skilled person, and the difference can be as high as 400%. This is right for different industries as well as job types, including research industries, athletes, and entertainers. The characteristics that are looked for in the candidates are mostly
Ability
Trainability
Commitment
Self-management and effective team
Teamwork is very essential for achieving any goal. Thus a high-performance team is of utmost necessity when achieving a success for a company. Teams usually are capable of bringing success to the company because though it is comprised of individuals of different thinking. Still, they all work together to achieve a particular goal for the organization. Here the different ideas are generated to achieve the common goal. Thus the senses, when processed and combined together, results in the best possible candidate selection.