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Change management is a field of management that deals with guiding an organisation out of a change scenario profitably and sustainably. The following are two popular change management models derived by management experts
Lewin’s Change Management Model
Lewin’s model has been developed by Kurt Lewin and has been widely popularised since then due to their simple approach towards the massive complexity of change management. It breaks down the entire system into a series of more manageable chunks or segments. The three stages of the Lewin Model are
Unfreezing:
This process deals with beginning the actual process of change in a series of chronological steps. The primary of this being identifying the necessity for the business to change and the problems it hopes to mediate after coming through a successful change management situation. This element also includes extending these thoughts to the employees of the organisation and properly communicating to them the objectives behind the change management (Tanner, 2019). Their opinions, feedback, and grievances should also be addressed. The various actions that the company partakes in during this change management scenario can be classified as
- Determining What Needs to Change: This process includes surveying and scrutinising the current business processes in an effort to understand what is going wrong and what can be done better.
- Ensuring support from the top Management: Change management causes massive ripples across the organisational hierarchy, and thus before it is adopted, proper permissions need to be secured (Tanner, 2019). These usually do not rely solely on management but on several other stakeholders like institutional investors and shareholders.
- Creating the Need to Change: To ensure that all parts of the organisation are equally affected by this change, a proper communication channel needs to be developed to carry the point across to all other members in an organisation to ensure maximum effectiveness.
Changing:
Once the business has decided to unfreeze from its past rigid mode of operations, it becomes time to implement the actual process of change. However, it should be noted that even change management policies with detailed blueprints do not always result favourably. Therefore a possible web of scenarios should be developed by the experts at the company so that the process can be constantly monitored and rectified should the need arise. Two of the primary drivers in the case of change management are the flow of information from the top to the bottom and vice versa, and leadership (Sharma, 2019). A combination of these two factors is essential in creating a good change at institutional levels. The actions taken by the company during the change phase can be
- Communicating widely and clearly: The Company should take care to communicate the process, needs, and constant updates on change for the benefit of all those affected. This will help in curbing miscommunications, fears, and rumours.
- Promoting Proper Action: The organisation should promote taking a proactive approach to their employees (Sharma, 2019). There are many small instances and errors which may crop up, and they are easier to mediate if more hands are on board.
- Involve all Parties: To ensure that the change is not sectorial or biased, the organisation should include all concerned parties irrespective of organisational hierarchies.
Refreezing:
This final step aims to ensure the success of the changes that have been implemented by properly integrating them into the normal business processes. The end goal is for the people of the organisation to view this changed scenario as the new normal and wholeheartedly embrace the new challenges that come with it. Without proper guidance to carrying forward the change, the employees may revert back to the old status quo or dominant habits. The actions available to the organisation in this case are
- Trying to cope up in the changed scenario with the organisational culture. This identifies change supports and points out barriers to change.
- Establishing a proper leadership role at the helm to motivate and win over the employees (Sharma, 2019).
- Setting up a proper two-way feedback communication channel to ensure that even the smallest grievances reach the proper authorities.
- Offer necessary training and support to employees who may require a boost.
Kotter’s 8 Stage Model
This model culminated in over four decades of work conducted by Dr Kotter to propagate change in the business sustainably. The steps are
- Creating a Sense of Urgency: Help all other parties like employees, workers, and others to see the need for a change in the current proceedings of the business.
- Building a Guiding Coalition: This consists of finding individuals amongst top-level managers and operational employees and building a support system for the change management process to come. This can be compared to a volunteer army that will guide the business throughout the process of communicating and coordinating whenever necessary.
- Form a Strategic Vision: This vision needs to clarify how exactly the future will be a brighter scenario than the present.
- Enlist a Volunteer Army: Large-scale sustainable change can only be brought about when a cause has a dedicated fan following and popularity amongst the masses. Therefore a team of motivated individuals needs to be developed under a common banner and unified objectives (Gallup, 2020).
- Enabling Action and Removal of Barriers: Removing redundancies and barriers like obsolete positions, hierarchies, and inefficient processes are all necessary actions in order to drive change.
- Generating short-term wins: This step acts as a motivation booster for all parties involved as the benefits of change are starting to make themselves felt.
- Sustain Acceleration: Now that the ball is rolling and things are going as per plan, the business should accelerate the pace of the change. This is done to maintain the aura of uncertainty and growth while the business moves along the process (Kotter, 2017).
- Institute Change: This final step deals with implementing the changed processes into the daily mode of operations of the business. The new methods and behaviours should be celebrated and properly connected to the old ones to ensure that the humans of the firm do not migrate back to the old ways.
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The HR functions of most companies are directed towards taking good care of the employees and, thus, in turn, achieving the organisational goals and objectives. In this endeavour, HR always focuses on bringing out the best version of the people that work for them, but certain metrics can only measure proper business performance. HR department tracks the performance of all or select employees through these parameters and, in turn, reports them to the proper authorities of the company (Mahalingam, 2018). The following are two different methods the HR department can evidence their contributions to the success of the organisation.
Balance Scorecard
There is a specific type of balanced scorecard that has been developed to aid in the field of human resources management. The HR balanced Scorecard is similar to the original in the sense that both of these possess objectives, measures, initiatives, and actions as the basic framework (Jackson, 2018). They also highlight four perspectives in order to generate a better and more holistic view. The elements of an HR balance scorecard and their importance in spelling the success of HR are as follows
- Customer Perspective: Human resources usually deal with two varieties of customers in their scorecard: Business Partners or Units and Employees of the Company. The business partner customers to HR focus on their efficiency in managing a well-motivated workforce, making proper hires, and retaining the right talent. On the other hand, the employees look to the HR department to support them and safeguard themselves against the company.
- Financial Perspective: This perspective is concerned with judging how the investments made into the human resources department have developed tangible rewards. This is a direct appraisal of the efficacy of the HR department. Success or failure is ascertained by mapping the ROI of investing in training for employees and ways to improve the current workforce. This is an important element that evidences HR contribution.
- Internal Perspective: This is a key area where massive data evidence HR’s contribution to the company. Elements like the Hiring Process, Work Culture, Quality of Service, and training measures find a place in this segment. These are directly attributable to HR success.
- Learning and Growth Perspective: This is an important factor that may seem like learning and growth opportunities for the entire organisation (Kenjo, 2020). However, in reality, this segment connects to solely the HR department and how they can function better in the future organisation.
KPI’s
KPI or Key Performance Indicators in HR is a measurable value that tracks the performance of the human resources department of a company against their pre-determined goals and objectives (Duke, 2019). In order to move forward and constantly keep improving, like any other sector, and HR department must also measure their past performance and plan ahead for the future (Jochem, 2020). The following are some of the major KPIs for the HR department
- Absenteeism Rate
- Overtime Hours
- Training Costs
- Cost per Hire
- Time to Fill
- Talent Turnover Rate
- Female to Male Ratio
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