CHANGE MANAGEMENT AND HR STRATEGIES

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WEEK 9 SHRM
CHANGE MANAGEMENT AND HR STRATEGIES
LO3
EVALUATE HOW APPROPRIATE CHANGE MANAGEMENT MODELS SUPPORT HR STRATEGY
BY THE END OF THE DAY YOU WILL UNDERSTAND
• The relevance of the psychological contract in relation to managing change
• The use of Nudge theory to support organisational change and behaviour
• HR strategy: How does change management support and influence HR strategy? HR
workforce planning, recruitment processes, managing employee motivation and
performance management
PSYCHOLOGICAL CONTRACT
• The Psychological Contract has been of increasing interest for HR departments as it
can be used to measure factors impacting behavior in the workplace. This contract can
be used as a powerful instrument for driving behavior and business performance.
HOW SHOULD EMPLOYERS MANAGE PSYCHOLOGICAL
CONTRACTS?
• To manage the psychological contract effectively, regardless of the expectations of an
individual worker, employers should be transparent about what they offer, and consult
with the current and future workforce on the employee value proposition.
WHAT IS AN
INDIVIDUAL
PSYCHOLOGICAL
CONTRACT?
• Individual psychological contracts allow the
employee to see their value and role within the
business. It also helps both sides avoid creating
unrealistic expectations of one another. And it
allows for “amending” the terms of the contract
if needed, which is done through regular
communication.
CONTRACT
DIVERSITY
• The benefit of a psychological contract versus a more
codified contract is that it’s individually focused. Every
different.
• Don’t underestimate the impact of diversity. This can make a
huge impact on both the employee and the employer.
• Individual psychological contracts allow the employee to see
their value and role within the business. It also helps both
sides avoid creating unrealistic expectations of one
another. And it allows for “amending” the terms of the
contract if needed, which is done through regular
communication.
psychological contract is different because each employee is
EXPLORING THE
PSYCHOLOGICAL
CONTRACT
• As previously stated, what makes up the “contract” can
vary with the unique needs and aspirations of each
employee, but that does not imply an organization should
seek to satisfy each employee’s unspoken expectations.
• It is, however, an area where an organization can leverage
the employee-manager relationship by equipping and
encouraging managers to discuss and address
psychological contract expectations with employees.
Managers can help employees explore and, if necessary,
modify their expectations, offsetting negative reactions
when unrealistic expectations are not met.
• Such manager-employee discussions can be used to “re-recruit” top talent. HR can help
managers by providing suggested questions to guide the discussion. These questions
might include:
• What attracted you to this organization?
• Do you still feel the same way? Why or why not?
• Do you feel like you are doing your best work? Why or why not?
• Where do you see yourself in five years?
• How can we help you get there?
• By initiating the one-on-one conversation and listening uncritically, managers demonstrate
that they care, thereby improving communications and strengthening the manageremployee relationship.
CONTRACTS GONE WRONG
• Earlier in this article, the term “breach” was used. A breach is the result of a psychological
contract gone wrong. A breach occurs when one party perceives the other as failing to fulfill
promises. Those include:
• Pay – promised increases were not fulfilled
• Promotion – a promised promotion doesn’t happen in the expected timeframe
• Type of work – important responsibilities of the employee were misrepresented
• Training – Employee doesn’t receive the promised training
• Feedback – Promised performance reviews were inadequate or absent
WHAT HAPPENS WHEN BREACH OCCURS?
• Typically, employers will see negative emotions from the
employee such as anger, betrayal, or sadness. Also, the
relationship between the two suffers because there is a
lack of trust and respect. Commitment on the part of
the employee is reduced. There is less job
satisfaction. There may also be a withdrawal of
behavior. For instance, the employee is less willing to
work hard, to share ideas, and to be a good work
citizen.
SHARE YOUR
EXPERIENCE
WHAT BENEFITS DO YOU THINK PSYCHOLOGICAL CONTRACTS COULD BRING TO YOUR
ORGANISATION ?
NUDGE THEORY
• Nudge theory is a flexible and modern change-management concept for understanding of
how people think, make decisions, and behave; helping people improve their thinking and
decisions; managing change of all sorts and; identifying and modifying existing unhelpful
influences on people.
HOW NUDGES INFLUENCE BEHAVIOUR
CHANGE?
• The aggregate influence of co-oriented nudges, channeling behaviors towards a desired
destination, can tilt the playing field so that innovation and change feel natural instead of
forced. It is sometimes proposed that organizations should create a
specialized nudge unit.
BEHAVIOURAL NUDGE THEORY:
• A tool to improve safety behaviour 1 Introduction. Nudge theory is often described as a
multidisciplinary approach to the applied science of human behaviour. 2 Complex humans.
Answering the above question involves some understanding of both cognitive psychology
and social psychology, and how a complex mix of thought processes, biases, influences,
attributions, personality type and … 3 Subconscious “choices”. As well as being ubiquitous
and keeping a consistent presence in the context of the “rules” of shapes and colours we
learn throughout life, nudges can be cost-effective … More items
• Any behaviour change in your business needs to start by clearly establishing what
behaviour you want to change. However, we know that getting people to adopt new
behaviours takes a lot more than just telling them to do so.
• Nudge one: provide a reason to change
• Nudge two: plant alternative behaviours
• Nudge three: provide opportunities to practice new behaviours
• Nudge four: give regular feedback
SO WHAT ARE YOU WAITING FOR?
• To drive real behaviour change, we need to provide people with ‘nudges’ that push them
towards adopting and exhibiting the new behaviour in the long-term.
• Establish the behaviour you want to change
• Give people a reason to change
• Plant alternative behaviours
• Encourage people to practice new behaviours
• Support adoption of new behaviours with regular feedback
ACTIVITY 2 : LETS
TEST YOUR
UNDERSTANDING
• What is HR workforce planning?
• What is the best recruitment process used in your
organization ?
• What techniques could you apply to managing
employee motivation
• What performance is managed and monitored in your
organization ?
HR STRATEGY AND CHANGE
• Overcoming resistance
• Engaging employees
• Implementing change in phases
• Communicating change
NEEDED: A SYSTEMIC, PROACTIVE APPROACH
• If change is not implemented correctly, the results can range from inconvenient to
disastrous, such as inefficiencies, duplicated efforts, and lost business opportunities.
• Companies that are able to manage change effectively can gain distinct advantages over
their competition that can lead to even greater success. When done right, change
management can alleviate uncertainty among employees about how the change might
impact them, reduce the potential for a negative impact on productivity, and engage or
re-engage the company’s workforce.
• Companies who want to successfully lead employees through adoption of an
organizational change must follow a systematic, proactive approach that incorporates
four primary steps: overcoming resistance, engaging employees, implementing change in
phases and communicating the change.
OVERCOMING RESISTANCE
• Although employee resistance is a natural reaction to widespread organizational changes, you can
overcome that resistance by focusing on several key strategies:
• Clearly and consistently communicate about the change well in advance of its implementation.
• Help employees better understand the need for the change and the rationale behind the
decisions, as well as the ways the change may affect them.
• Ensure that your change management team includes change champions who can help spread
positive messages about the change, as well as take the temperature of employee reactions to the
change.
• Provide strong support for the changing environment, such as ensuring that managers are
provided with the training and information they need to answer employee questions.
ENGAGING EMPLOYEES
• Employees who are engaged in the change are more likely to put in the effort necessary to help
implement the change and ensure a positive outcome for the organization. Help create high levels of
employee engagement during your change process by:
• Developing a team approach that includes employees’ perspectives from a variety of departments
and levels.
• Assigning and clarifying roles and responsibilities.
• Increasing your focus on the workers who are affected most by the change.
• Including resistance leaders in the change process to help overcome pushback from other
employees.
• Understanding and taking into account the different motivational factors for each employee.
IMPLEMENTING CHANGE IN PHASES
• For companies planning a major change initiative, taking a phased approach can help ensure
that the transition to a new system or process is as smooth and seamless as possible.
Leading change management recommends three phases:
• Prepare for change – By taking steps such as defining your change management strategy,
developing your change management team, and outlining key roles.
• Manage the change – By creating and executing change management plans that include
communications, operations and resistance management.
• Reinforce the change – By collecting and analyzing feedback and then implementing
corrective actions where needed.
COMMUNICATING CHANGE
• Failing to tell employees in advance about organizational changes can increase employee
misconduct by 42 percent. An integral part of every stage of the change management
process, communication must be a two-way street in order to ensure the success of the
organizational change.
• Think quality over quantity when it comes to communicating with employees, and
consider these communication strategies for successful implementation:
HOW DOES HR PLAY A VITAL ROLE IN
CHANGE MANAGEMENT?
• The role of HR in Change Management Process Conducting change, or in other
words: transformation, is the fact for an organisation to make its processes evolve to gain
in competitiveness. Obviously, the larger the organisation, the more challenging the task
is. And who’d be better placed than HR to uptake the role of walking change agent?
WHAT IS A SUCCESSFUL CHANGE
MANAGEMENT?
• Successful change management requires a large commitment from executives and senior
managers, whether the change is occurring in a department or in a complete
organization. Leadership from the senior team is the most significant factor in helping
employees to buy into and support needed changes.
• Pre-and post-surveys allow for feedback both before and after the change has been implemented,
which can enhance the overall process.
• Engage resistors in one-on-one sessions prior to the solution’s implementation to allow them to
provide their input.
• Be clear, consistent and explicit, especially when it comes to timeline and responsibilities.
• Use both formal and informal communication approaches, including email, intranet, in-person
meetings, signage and voice mails.
• Offer opportunities for employees to provide feedback into the process, and then be sure to use
the input to inform the plan.
• Gather employees to explore worst-case scenarios and then develop strategies to address them.
REFLECTION
What did we
learn today ?
Any question ?
• Thank you and enjoy your week

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