Key variables to design a large-scale organizational transformation

There are many different elements that go into designing a large-scale organizational transformation. For the purposes of this exercise and through the eyes of a consultant, there are four areas that need to be explored in relation to this organizational transformation. These areas are human resources, organizational structure, leadership and trust, and performance measures. The way in which these variables are implemented in the change process could prove successful for an organization and help the overall structure of the organization to grow. Also, a lack of attention to detail can result in a mistake and cause a change process to fail.

Human Resources Policy

Human resources, in this writer’s opinion, are the glue that holds an organization together. Human resources help enforce and create policy. In addition, they act as the first line when something goes wrong or when a new benefit is introduced or if there is a change in the industry. Then, they help as change agents when an organizational transformation is taking place. Braun (2013) describes human resources as a more strategic partner than the old paradigm of paper vendors. In addition, human resources have acquired a higher calling in which they assist with all organizational functions, assist in formulating strategy, developing long-term goals, and formulating plans to help develop a competitive advantage in the marketplace. As a consultant and working with human resources, the goal is to understand change. According to Appelbaum, Berke, Taylor and Vazquez (2008), change is considered a dynamic process and can be assessed in terms of the scale of the change and the method to be used. Human resources and organizational leaders need to consider how this large-scale transformation is going to affect the policies that are in place. For example, will the reward system be changed from a standard evaluation to a more complex performance management system?

The organization your writer is referring to is currently undergoing a large-scale transformation. The reward system and compensation plan has been severely leveraged and any salary increases have been halted for the last three fiscal years. In addition, many programs and benefits were also cut to reduce the cost to the organization. These policy changes were a necessary evil in helping to recover the structure of the organization. This change in the organization’s engagement policy caused many problems with employees and it was difficult to retain top talent, but now the storm has weathered and the organizations’ policies and benefits are returning to normal as they are implemented. new initiatives.

Organizational structure

Understanding how an organization is structured is a key objective for a consultancy that is helping with organizational transformation. The consultant must understand if the organization is transformational, top-down, transactional, growth, mature, global, and local, to name a few. Appelbaum et al. (2008) describe transformational change as a form of corporate change and can be characterized as a developmental process and is a form of revolutionary change that can be described as a complete reengineering of the corporate structure. As a consultant, it is important to understand the objectives of the organization, but also to provide solutions, and with transformational change comes the need for transformational leadership. Transformational leadership helps with the status quo and organizational performance by empowering your employees to do more and lead by example. Wischnevsky and Damanpour (2006) explored organizational transformation and stated that organizational transformation is a transition between organizational states that present structure and strategy. In an effort to help with the reengineering of the organizational structure, leaders will be encouraged to redefine strategy, redesign the mission statement, and potentially rebrand with a new logo that differentiates the organization from the old and opens the door to the new era of growth and possibilities.

Within the organization referred to in this exercise; transformational leadership is one of their main goals and a culture they are trying to establish. Unfortunately, they lack follow-up and organizational learning to continue the culture change process internally. Due to the high turnover in leadership positions, it is very difficult to develop a culture that remains ingrained in the memory of the organization.

leadership communications

Organizational transformation cannot begin unless all the necessary stakeholders are on board and understand the new mission. Without proper and ongoing communication between leaders/managers and their direct reports, the organization will encounter resistance to change. The purpose of leadership communication is to bring stakeholders closer to the organization and give them a sense of ownership and purpose. Brauns (2013) gives examples of how organizational transformation from performance management to rewards should look like, take into account the interest of employees and keeping employees engaged during change should be the goal. For example, the implemented reward system must express the values ​​of the organization and must send the right message from the organizational perspective. If employees do not understand the value of rewards or benefits, resistance to change will arise. Furthermore, performance management needs to be addressed and according to Brauns (2013), it consists of the three Cs, consistency, coordination and control. If leadership can communicate and gain the trust of their organization and followers, this will make large-scale transformation more achievable. Without trust, employee resistance will hamper any effect of change.

The organization that is the reference for the exercise has not done a very good job with this area of ​​change. There seems to be little care given to job descriptions or rewards during the rebuilding process. Although there are different attempts to bring about transformational change and provide glimpses of transformational leadership, they just don’t have the follow-through to continue and make the difference that is needed. Many times, leadership communications are encrypted or vague, which can cause frustration among employees. It would be advisable to give constant and frequent communication on the progress of the change process. With the addition of several key leaders in the last six months, internal stability is in the near future.

Performance measurement

Performance measures are necessary to make sure that the organization meets its large-scale goals, but also that its employees meet internal goals. Chen, Yang, and Jiun (2006) investigated a performance management system called Balance Sheet Scorecard or BSC. BSC enables companies to transform their overall strategy and provide effective management and leadership. This is accomplished by addressing four perspective areas. These perspective areas are financial, customer, internal, and learning.

Throughout this exercise, internal learning, customer learning, and apprenticeship have been addressed as major components of organizational transformation. Although the financial perspective is not addressed by name, it is implied to have a balanced organization and to achieve this balance through a major transformation.

At the company being referenced, they have their own performance management system, although it seems to be very internal measurement and target oriented where this writer feels they are very vague and generic. Also, without a reward system, a performance management system seems mute. It is the writers’ recommendation that a small incentive be attached to the performance measurement; otherwise, the result is black or white; You either meet the requirements and keep your job or you get fired. To maintain a productive workforce during large-scale transformational change, leadership is tasked with keeping organizational commitment high and providing excellent communication. Without this guidance from the leaders and according to Appelbaum et al. (2008) the input of employees, which is considered a critical factor, it will be difficult to achieve transformational change on a large scale.

Conclusion

Organizations need to change to remain competitive in the marketplace. The way they learn and use the knowledge they have gained will give them a competitive advantage over the competition. When completing a large-scale change, the organization must pay attention to human resource policies, leadership communication, organizational structure, and performance management systems. All of these areas play an important role in shaping a successful transformation.

References

Appelbaum, Steven H, PhD., SPHR, Berke, J., MBA, Taylor, J., MBA, & Vazquez, JA, MBA (2008). The role of leadership during large-scale organizational transitions: Lessons from six empirical studies. Journal of the American Academy of Business, Cambridge, 13(1), 16-24.

Brauns, M. (2013). Align strategic human resource management with human resources, performance, and reward. The International Business & Economics Research Journal (online), 12(11), 1405-n/a.

Chen, S., Ching-Chow, Y., and Jiun-Yan Shiau. (2006). The application of the balanced scorecard in the performance evaluation of higher education. TQM Magazine, 18(2), 190-205.

Wischnevsky, JD and Damanpour, F. (2006). Organizational transformation and performance: An examination of three perspectives. Management Issues Journal, 18(1), 104-128.9.