It was once said that the only constant is change, and this statement holds true. Change can manifest in various forms, whether significant or subtle, but it remains a constant element. Organizations may initiate change voluntarily or in response to external factors, known respectively as internal and external drivers.
Internal decisions and outcomes are controlled by the company, while external drivers are beyond the company’s control. The impact of change can have significant effects on both the company and its employees. Assisting employees in managing this change is a major challenge for companies. Any kind of organizational change can affect employees differently. Some may view the changes positively and embrace them enthusiastically, but most will struggle with change and respond negatively.
These can vary from confusion, conflict, stress, fear of losing their job, lack of titivation, declined self-confidence and loss of trust between the employee and company.
Need for change Internal Factors As stated previously, there are many reasons for change within a company and V. Group has recently decided to rebound the whole international company as well as globally restructure within the company too.
The main internal driver for this was global influence as V. Group felt this would be an opportunity to help global partnerships recognize how vast and diverse V.
Each subsidiary company under the V. Group umbrella previously had its own individual logo. However, customers were not aware that these companies were part of the same group. To address this issue and ensure global recognition of their brand, the group decided to unify the logos. This decision was also driven by internal factors such as the need for consistent processes, systems, IT, and communication across the entire company. Additionally, with multiple offices worldwide, bringing the company closer together as one and ensuring unity was another important reason for the restructuring.
They noticed inconsistencies in their processes and procedures within the group. To establish a consistent and strong approach for the future, they have assigned HER Consultants to four different regions globally. This would make the consultants more accessible to the existing HER local representatives and they would ensure that the local reps consistently adhere to V. Group’s procedures. In addition to internal factors, external drivers can also influence a company, over which the business has no control.
One external driver for V. Group is the technological factor, as they need to ensure that their customers and potential clients are informed about their services. Social media and the company’s website are considered the most effective channels to achieve this. Additionally, changes in the economy can also affect V. Group. As they have employees worldwide, economic downturns may lead them to reassess their workforce by evaluating the necessity of skilled and non-skilled employees.
The company and its operations can be influenced by environmental factors. Changes in climate can have an impact on the ships we handle for clients, potentially affecting our ability to manage and maintain them as promised. This could harm our relationship with clients if weather conditions prevent us from fulfilling our obligations. Various effects can arise from changes, as there are multiple reasons for this in businesses.
One change can be an organizational re-structure, which may involve redundancies or promotions for existing employees. This change can impact all levels of the company. Another change could be updating working policies and procedures that currently do not reflect the company well, potentially damaging its reputation. Additionally, mergers and takeovers can create uncertainty, erode trust, and lead experienced staff to leave the company. Communication is a key factor in any change process, ensuring support from line managers and employees. It is important to communicate in a way that makes employees feel positive, adapting the style depending on the audience and their position in the change process. What suits senior management may not be suitable for administrators or cleaners.
Effective communication plays a significant role in achieving desired outcomes, maintaining control, and preventing employee resistance to change. Conversely, a lack of communication can result in frustration and erode trust among employees. Additionally, it is vital to promote the change positively and provide a clear direction for the organization. This involves researching and identifying potential future threats or obstacles and effectively communicating them to employees to gain their support.
Manifestation is another important factor to consider when undergoing a change process. It involves ensuring that adequate resources are available beforehand. Addressing issues like limited space, providing training for new IT systems, or retraining existing employees may be necessary. Training not only helps with manifestation but also increases employee motivation and enhances their sense of value within the company. Different perceptions of change have led to the development of various models and theories on how to effectively manage it.
In 1985, Bullock and Batten developed a framework that outlined the approach for each phase. The framework included three main phases: Exploration Phase, Planning Phase, and Action Phase. When V. Group underwent their restructuring process, they followed a similar approach and adhered to these phases. Initially, they conducted a comprehensive review and verification process to identify the required changes, assess the affected parties, and determine specific details. During this step, the executives at V. Group extensively deliberated the necessity of this change and evaluated its long-term benefits for the company.
Once the initial agreement was reached, the team proceeded to determine the necessary actions and their subsequent consequences. This phase spanned several months during which senior management members held planning meetings to discuss various matters and propose ideas. The outcome of these meetings would then be presented to the executive board upon their completion. In the final step of the action phase, each manager held local meetings with their respective teams to inform them about and present the new structure. Following this, V was reviewed.
In terms of the group’s approach, it could have been handled differently to facilitate a smoother transition. Firstly, the executive board gathered to discuss the change. However, in addition to this, they could have arranged meetings with senior management to gain a different perspective and avoid negative reactions such as fear and lack of trust. This would have also helped in fostering inclusivity. In the subsequent stage, upper-level management should have kept other senior members informed about the progress.
It is important to note that not all senior management members at V. Group were able to participate. However, it would have improved communication if other selected members were regularly updated. When introducing the final phase, presenting locally was the preferred method. Nevertheless, gathering feedback and reviews from employees could have made them feel included, even at this late stage. In terms of behavioral responses, fear is a common reaction when uncertainty arises within an organization.
This may be simply true of the unknown as employees are accustomed to working in a certain manner and fear what is unfamiliar. Another factor contributing to lower employee morale could be a lack of communication from management or a lack of support from their direct supervisor. Additionally, the concept of the Psychological Contract can have negative consequences. Many employees operate under an unwritten expectation of mutual respect, often going above and beyond their responsibilities without compensation. However, if this arrangement has a negative impact, these employees may choose not to continue working in this manner since they are not being compensated for their efforts.
HER can support employees at all levels during change in various ways. Firstly, within V. Group, HER helps employees by offering coaching sessions for those seeking new employment. Secondly, HER acts as an advisor and provides guidance to line managers and employees in need. Thirdly, HER offers support through active listening, counseling, and supporting line managers. Lastly, HER provides administrative support behind the scenes, which includes tasks such as providing references for new employers and ensuring the accuracy and currency of employees’ details.
