There are many different elements that go into designing a large-scale organizational transformation. For the purposes of this exercise and through the eyes of a consultant, there are four areas that need to be explored in relation to this organizational transformation. These areas are human resources, organizational structure, leadership and trust, and performance measures. How these variables are implemented in the change process could prove successful for an organization and help the overall structure of the organization grow. Also, a lack of attention to detail can result in a mistake and cause a change process to fail.
Human Resources Policy
Human resources, in this writer’s opinion, are the glue that holds an organization together. Human resources help enforce and create policies. In addition, they act as the first line when something goes wrong or when a new benefit is introduced or if there is a change in the industry. They then help as change agents when organizational transformation is taking place. Braun (2013) describes human resources as a more strategic partner than the old paradigm of paper vendors. In addition, human resources have taken on a higher calling where they assist with all organizational functions, assist in formulating strategies, developing long-term goals, and formulating plans to help develop competitive advantage in the marketplace. As a consultant and working with human resources, the goal is to understand change. According to Appelbaum, Berke, Taylor, and Vazquez (2008), change is considered a dynamic process and can be assessed in terms of the scale of the change and the method to be used. Human resources and organization leaders need to consider how this large-scale transformation is going to affect the policies that are in place. For example, will the reward system be changed from a standard evaluation to a more complex performance management system?
The organization your writer refers to is currently undergoing a large-scale transformation. The rewards system and compensation plan were severely leveraged and any salary increases were halted for the last three fiscal years. Additionally, many programs and benefits were also cut to reduce the cost to the organization. These changes in policy were a necessary evil to help bring back the structure of the organization. This change in organization engagement policy caused a lot of issues with employees and it was difficult to retain top talent, but now the storm has weathered and organizations policies and benefits are returning to normal as they are implemented new initiatives.
Organizational structure
Understanding how an organization is structured is a key objective for a consultancy that is assisting with organizational transformation. The consultant must understand whether the organization is transformational, top-down, transactional, growth, mature, global, and local, to name a few. Appelbaum et al. (2008) describe transformational change as a form of corporate change and can be characterized as a developmental process and is a form of revolutionary change that can be described as a complete reengineering of the corporate structure. As a consultant, it is important to understand the goals of the organization, but also to provide solutions, and with transformational change comes the need for transformational leadership. Transformational leadership helps with status quo and organizational performance by empowering your employees to do more and lead by example. Wischnevsky and Damanpour (2006) explored organizational transformation and stated that organizational transformation is a transition between organizational states that exhibit structure and strategy. In an effort to help with the reengineering of the organizational structure, leaders will be encouraged to redefine the strategy, redesign the mission statement, and potentially rebrand with a new logo that will differentiate the organization from the old and open the door to the new era of growth and possibilities.
Within the organization referenced in this exercise; transformational leadership is one of their main goals and a culture they are trying to establish. Unfortunately, they lack the follow-up and organizational learning to continue the culture change process internally. Due to the high turnover in leadership positions, it is very difficult to develop a culture that is ingrained in the memory of the organization.
leadership communications
Organizational transformation cannot begin unless all the necessary stakeholders are on board and understand the new mission. Without proper and ongoing communication between leaders/managers and their direct reports, the organization will encounter resistance to change. The purpose of leadership communication is to bring stakeholders closer to the organization and give them a sense of belonging and purpose. Brauns (2013) gives examples of what organizational transformation from performance management to rewards should look like. Keep employee interest in mind and keep employees engaged during change. For example, the implemented reward system must express the values of the organization and must send the correct message from the organizational perspective. If employees don’t understand the value of rewards or benefits, resistance to change will arise. Furthermore, performance management needs to be addressed and according to Brauns (2013) it consists of the three C’s, consistency, coordination and control. If leadership can communicate with and gain the trust of their organization and followers, this will make large-scale transformation more achievable. Without trust, employee resistance will hamper any effect of change.
The organization that is referenced for the exercise has not done a very good job with this area of change. There seems to be little care for job descriptions or rewards during the rebuilding process. Although there are different attempts to bring about transformational change and provide glimpses of transformational leadership, they just don’t have the follow through to continue and make the difference that is needed. Often times, leadership communications are scrambled or vague, which can cause frustration among employees. Constant and frequent communication about the progress of the change process would be recommended. With the addition of several key leaders in the last six months, internal stability is in the near future.
Performance measurement
Performance measures are necessary to make sure that the organization meets its goals on a large scale, but also that its employees meet internal goals. Chen, Yang and Jiun (2006) investigated a performance management system called Balances Scorecard or BSC. BSC enables companies to transform their overall strategy and provide effective management and leadership. This is accomplished by addressing four perspective areas. These perspective areas are financial, customer, internal, and learning.
Throughout this exercise, internal learning, customer learning, and learning have been addressed as major components of organizational transformation. Although the financial perspective is not addressed by name, it is implicit to have a balanced organization and to achieve this balance through a great transformation.
At the company referenced, they have their own performance management system, although it appears to be very geared towards internal measurement and goals which this writer feels are very loose and generic. Also, without a reward system, a performance management system seems mute. It is the writers’ recommendation that a small incentive be attached to the performance measurement; otherwise, the result is black or white; either you meet the requirements and keep your job or you get fired. To maintain a productive workforce during large-scale transformational change, leadership is tasked with keeping organizational commitment high and providing excellent communication. Without this guidance from the leaders and according to Appelbaum et al. (2008) the input of employees, which is considered a critical factor, it will be difficult to achieve large-scale transformational change.
conclusion
Organizations need to change to stay competitive in the market. The way they learn and use the knowledge they have gained will give them a competitive advantage over the competition. When completing a large-scale change, the organization must pay attention to human resource policies, leadership communication, organizational structure, and performance management systems. All of these areas play an important role in shaping a successful transformation.
References
Appelbaum, Steven H,PhD., SPHR, Berke, J., MBA, Taylor, J., MBA, and Vazquez, JA, MBA (2008). The role of leadership during large-scale organizational transitions: Lessons from six empirical studies. Journal of the American Academy of Business, Cambridge, 13(1), 16-24.
Brauns, M. (2013). Align strategic human resource management with human resources, performance, and reward. The International Business & Economics Research Journal (online), 12(11), 1405-n/a.
Chen, S., Ching-Chow, Y., and Jiun-Yan Shiau. (2006). The application of the balanced scorecard in the evaluation of the performance of higher education. TQM Magazine, 18(2), 190-205.
Wischnevsky, J. D. and Damanpour, F. (2006). Organizational transformation and performance: An examination from three perspectives. Journal of Management Issues, 18(1), 104-128.9.
