The Role of HRM in Change Management - Essay Example

? ‘The Role of HRM in Change Management” “Role of HRM in Change Management” Human resource management is loosely defined as the management of an organizations human assets or their workforce. The human element is what provides the competitive edge to organizations in turbulent economic conditions and under cut throat competition, the HR department is responsible for recruiting and selecting the right kind of people for the organization and then providing training for assimilating new employees into the work culture and for preparing older workers with modern best practices. The functions of HRM also include acting as a liaison between the organization and any representative bodies of the workers and making decisions regarding work rewards- salaries, wages, bonuses etc. Through all the different functions and objectives, HRM is used to create an informed, satisfied and involved workforce which can collaborate effectively and efficiently to achieve the organizational goals. A ‘hard’ definition of HRM can also be derived that is it helps to maximize the economic benefit an organization gets from its human assets (Wilkinson, 2000). Currently one of the biggest challenges organizations are facing relate to a rapidly changing environment where global, technological and economic factors make it necessary to make decisions under uncertain conditions and adapt quickly in order to survive or maintain their competitive edge. Flexible organizations with a knowledgeable workforce are at an advantage in these conditions as any change initiated within an organization can only prove beneficial if it is widely accepted by the workforce. These changes may be technological in nature or allow for the modification of organization structure or the management, acquisitions, mergers, and other operational changes are increasing in trend. However, a survey done in 2010 indicated that for most corporations the changes made did not bring the desired results, with 62% measure somewhat successful and 24% having no change at all. (APQC, 2010) The reasons for the failure of these measures, is usually the inability of the top management to actively involve HR in the change management process. Employees who are not given complete information or training regarding the changing measures are often skeptical and hostile towards them as they may perceive them as threat to their position, daily routine, status in the organization or overall job security. These employees may be so resistance to change that they will not be able to adapt to the new conditions and even be outwardly hostile. For employees who don’t have a hostile attitude towards the change and disruption they may still have no receptivity towards it; without enthusiasm to embrace the new measures it is possible that the optimum level of benefits may never be utilized. The survey done indicates that employees who don’t understand the reasons behind the change and are still forced to adhere to the new rules and practices face a decline in engagement level of upto 71% with over a 43% increase in unwanted turnovers, which could lead to a prominent loss of productivity after the change is implemented. HRM practices can effectively work on transforming the negative attitudes of the employees. To support the change management there are two avenues for HR to take, firstly they can work on removing the hostility from the employees by assuring them that their fears and skepticism are unfounded by increasing their knowledge about the change being initiated through seminars, programs and training. “HR Professionals have to lead the change programme through a systematic drive of providing education, communication, facilitation and support to the employees, so that we may secure the involvement, participation and commitment of the complete workforce” (Lal, 2001) Lal, J. (2001). Managing Change through HR, Presidential Address. Delhi Business Review A well informed workforce will be more willing to admit why the change is necessary and management should make every effort to ensure that the implementation process is transparent and all kinds of data and information is available for employees in the organization. Once the inevitable need for change is clear and the personal threats are removed, it will be easier for the employees to work with the management to make the changes work. Involved employees also have sense of empowerment and belonging which increases their motivation and as they will see the changes as something they agreed to and gave opinion about as opposite to something which was forced on them they will be more receptive and open to the measures. Secondly, the HRM has to work towards for the long term cultivation of an organizational culture which is flexible, open to change and can adapt quickly. This process will have to involve all the HRM functions like recruitment, selection, training and designing reward packages. They have to bring in people who have experience with change and who can influence the exiting culture; further training and communication can slowly direct the attitudes of the existing workforce about the accepting and expecting change in their professional lives. They reward and punishment system of the organization can also be slowly modified to support the change management practices and requirements- a more flexible work scale tied to performance under disturbance can perhaps be a better motivator for employees. By providing tools to better handle stress and confusions caused by rapid change, HR can act as a supporting hand for the employees and help them to align their personal goals with those of the organization. No one likes change, especially when one of the effects of the change may be a direct threat to their livelihood. The biggest mistake made by organizations is that they often fail to understand that their workforce is made up of complex humans with different needs and emotions and any kind of disturbance in their routine has to be fully explained to them before they will accept it. HR can act as facilitators of change by providing employees with the kind of information and support they require to completely understand the change and how it affects them, it can also provide an assurance of security in face of turbulent times. While forcing change can end in some mediocre results, involving employees and having them work actively to embrace the change and utilize it effectively can bring extraordinary success for the measures and this is not possible without involving HRM in the process. References  Ivancevich, J. M. (2011). Human Resources Management, 12th ed. McGraw-Hill/Irwin. Lal, J. (2001). Managing Change through HR, Presidential Address. Delhi Business Review – Vol. 2, No. 2, July - December 2001. Retrieved from: http://www.delhibusinessreview.org/v_2n2/dbrv2n2b.pdf Andreescu, F. (2003). The HR function and the change management process: new templates and possible lessons from Britain’s national mapping agency. A paper prepared for the Fourth Conference on HRD Research and Practice across Europe 2003, May 23-24, 2003, Toulouse. APQC. (2010). HR’s Role in Change Management. Results from APQC’s 2010 Quick Poll, retrieved from: http://www.apqc.org/knowledge-base/download/223482/a:1:%7Bi:1;s:1:%222%22;%7D/inline.pdf?destination=node/223 482 Wilkinson, F (2000). Human Resource Management and business practices and strategies in small and medium sized businesses. Working paper No.184, ESRC center for Business Research, University of Cambridge. Read More