Leading Organisational Change Changes At Term Paper

Length: 9 pages Sources: 2 Subject: Business - Management Type: Term Paper Paper: #76577435 Related Topics: Pay For Performance, Budget Cuts, Industrial Relations, Team Building
Excerpt from Term Paper :

All these will lead to organizational development which has been defined by Bartol and his colleagues as "a change management tool capable of being utilized with an innovative implementation." According to professor Waddell it focuses on "building an organization's ability to assess current functioning and to achieve goals, being 'process-oriented not outcome oriented', and on improving the total system."

The first thing on Icandobeta's order of business is to gain the trust and respect of the employees of Little-bit, now that they have been disappointed by the former leader. He has to prove to them that he has been because he is indeed the best man for the job. He is better prepared, from an educational point-of-view and has more experience of this level. He has to go about doing this by being in contact with the key figures of the employees, their representatives and the ones amongst them that have the most influence over them and whose opinions they value most.

Moreover, another approach is implementing a new strategy of communication within the organization which would lead to an open working environment where everybody that has something to say is heard and the management takes account of what he is saying. Communication leads to openness and inevitably to trust, because if one knows everything there is no reason to suspect any foul play.

The strategy consists of creating information channels that are not only vertical, from the management, to the employees, or from the strategists to the ones executing, but also horizontal. Moreover, the information channels will not have only one way, communication functioning back and forth, i.e. from the management to the employees and from the employees to the management.

All the employees will participate at regular meetings with the heads of their department and, thus, be regularly informed of the changes to be implemented and the results of the implementation. They need to understand very well why these changes are necessary and what would happen if they are not implemented. The employees need to participate proactively at the change and at the implementation of the new organizational objectives and principles.

Employees need to be encouraged to express their views, offer opinions and any creative ideas they might have regarding their work and the management of the company. Training sessions will be organized and they will address the areas where change is implemented in the company. For example, if a new technology is acquired or developed and the company starts using it, the employees will benefit from extensive training in that area. Moreover, they will take part in seminars regarding the human resources policy, its implementation and communication in order to be able to use effectively the newly created information systems.

In order for the whole organization to be able to build up trust, external training sessions will be organized in the form of parties and trips with team-building activities. One or several team-building trainers will be brought in for the job. The team-building sessions will involve the top management together with employees from different levels. In this way the employees will be able to form both professional and personal bonds with the managers and grow to respect and value them and their work. This will also address the leadership perspective, because through common knowledge a better collaboration will be initiated.

A new evaluation system will be implemented in the company. This is urgently needed because of the recent changes in personnel and the budget cuts that will be implemented in order to decrease production costs. The evaluation will be made by the manager of that particular division, the direct supervisor of the person being evaluated, co-workers and, in case of the positions of responsibility, by the subordinates. This process will be a regular one regardless of whether or not the company is undergoing, at that particular point in time, a restructuring process or not.

Therefore, each employee will be evaluated as to determine his strengths, weaknesses and results in the current position. If a person has a very good background and great skills,...


This process will lead to the proper persons in the right positions with the best results. As a matter of principle, the company should not be seeking to lay people off, just to improve their results. If the case might be that a person is completely not in accordance with the company's standards and set of values he or she will indeed be subject to the staff cut off.

Furthermore, performance will be improved by the implementation of performance related pay systems. Performance related pay refers to the pecuniary side of the motivation a certain employee gets from the company, it links the rewards of the employees and of teams within the organization to the performance they actually achieve and to the value they bring to the company. In order to receive such incentive an employee has to prove to be very good, by a certain standard, or above average when considering all the others. This is a very strong and effective way to motivate the organization's employees and to implement an overall organizational vision. "The vision is used to motivate and from this motivation a level of transformation is reached. The transformation may be a transitory step on the way to accomplishing a total vision." transparent and well chose system will encourage teamwork and fairness since the individuals will realize that they work better together than alone. This will add to the overall productivity and create an increase in profits.

Little-bit needs to introduce a performance related pay system in order to resolve its human resources issues and involve the employees in the new goals of the organization: innovation, communication, diverse, flexible and highly skilled workforce, high customer satisfaction and research and development. Employees will be motivated by linking their pay to the achievement of certain targets. Work will stop being something you can't wait to finish so you can go home and have fun. Work will become a crucial way to achieve their goals. Also, the goals of Little-bit have to pass on and become the goals of its employees.

The most deserving employee in the individual assessment and the individual performance related pay system that will be implemented within Little-bit is the one that fulfills all the following criteria cumulatively: plays a critical role in the life of the organization and constitutes a role model and a mentor for other employees, makes a distinctive contribution in the raising of the performance of the undertaking, contributes in an efficient way to the work of his team, being able to share and bring value, and is in a continuous stage of professional development, sharing his newly acquired skills with his colleagues. This is, in brief, the portrait of the ideal employee that Little-bit badly needs and at which we are aiming for by the implementation of the new human resources politics and strategy in the company.

A competence-based system of employee evaluation will be introduced within Little-bit. This refers to the fact that the company will pay for courses and trainings for the employees that want and need to develop. These will be done both at the initiative of the employees and of the management of the organization itself. The courses or trainings have to be relevant for the organization and at some level to the position of the person within Little-bit.

In order to prevent disloyalty, i.e. employees leaving the company after a lot of training has been invested in them, special training agreements will be concluded with the employees benefiting from classes providing that they can not leave by their own will the organization for a period of time after benefiting from a course without covering its costs. The development of new skills and abilities will be highly encouraged within the organization as well.

Although, all the hereinabove solutions to the problems of Little-bit might seem costly and time consuming there are ways to make them work. Training could consist of training on the job, or during the office hours. For example, the employees could reserve their last hour of the working schedule for the training. Therefore, they will not have to come in their free time to work and they will be more willing to learn and be active during the sessions. Costs could be avoided by providing internal training in most of the areas.


Change is a most difficult process and…

Sources Used in Documents:


Dowling, G. And Richardson, R, June 1997, Evaluating performance pay for managers in the National Health Service; International Journal of Human Resource Management, Volume 8, No. 3

Marsden and Richardson (1994) 'Performing for Pay? The effect of 'merit pay' on motivation in a public service', British Journal of Industrial Relations, vol.32 no.2, June, pp.243-62

Dowling and Richardson (1997) 'Evaluating Performance-Related Pay for Managers in the NHS' International Journal of HRM, vol 8, no. 3, pp 348-66.

Kruse, D.L. (1992). 'Profit-sharing and Productivity: Microeconomic Evidence from the United States' Economic Journal, 102: 24-36.
American Society for Information Science and Technology, the State University of New Jersey, [Online], Available at http://www.scils.rutgers.edu/~clairemc/Lrnorg2.htm
Background, Learning Organizations, School of Engineering and Electronics, the University of Edinburgh, [Online] Available at http://www.see.ed.ac.uk/~gerard/MENG/MEAB/learning_organisation/background.html
Frauenheim, Ed, Firms Walk Fine Line With 'High-Potential' Programs, Available at http://www.workforce.com/section/11/feature/24/54/84/index.html
Pearce, Lionel, New Government, Digital Government: Managing the Transformation, Available online at http://www.agimo.gov.au/__data/assets/file/33191/AGIMO-FC-no20.pdf
Bartol and collegues (2001) in Pearce, Lionel, New Government, Digital Government: Managing the Transformation, Available online at http://www.agimo.gov.au/__data/assets/file/33191/AGIMO-FC-no20.pdf
Waddell et al. 2004, p. 3 in Pearce, Lionel, New Government, Digital Government: Managing the Transformation, Available online at http://www.agimo.gov.au/__data/assets/file/33191/AGIMO-FC-no20.pdf
On the benefit of information channels: Davenport 1993; Hammer & Champy 1993; Waddell et al. 2004 Pearce, Lionel, New Government, Digital Government: Managing the Transformation, Available online at http://www.agimo.gov.au/__data/assets/file/33191/AGIMO-FC-no20.pdf
Benjamin & Levinson in Pearce, Lionel, New Government, Digital Government: Managing the Transformation, Available online at http://www.agimo.gov.au/__data/assets/file/33191/AGIMO-FC-no20.pdf

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