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. How these variables are implemented in the change process could prove successful for an organization and help the overall structure of the organization grow. Also, inattention to detail can turn out to be a mistake and cause the change process to fail.

Human Resources Policy

Human resources, in the opinion of this writer, are the glue that holds the organization together. Human resources help enforce and create policies. In addition, they act as the front line when something goes wrong or when a new benefit is introduced or if there is a change in the industry. They then help as agents of change when organizational transformation is taking place. Braun (2013) describes human resources as a strategic partner rather than the old paradigm of paper pushers. Additionally, human resources have assumed a higher calling in that they assist with all organizational functions, assist in strategy formulation, develop long-term goals, and formulate 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 seen as a dynamic process and can be valued in terms of the scale of a change and what method will be involved. Human resources and organization leaders need to consider how this large-scale transformation will affect current policies. For example, will the reward system be changed from a standard evaluation to a more complex performance management system?

The organization your writer refers to is undergoing a large-scale transformation. The reward system and compensation plan were severely leveraged and any salary increases have been on hold for the past 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 to help bring structure back to the organization. This change in organizational policy caused many employee engagement issues and it was difficult to retain top talent, but currently the storm has been weathered and organizations’ policies and benefits are returning to normal as new initiatives are implemented. .

Organizational structure

Understanding how an organization is structured is a key objective for a consultation 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 it can be characterized as a development process and it 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 assist with the reengineering of the organizational structure, leaders will be encouraged to redefine the strategy, redevelop the mission statement, and potentially rebrand with a new logo that distinguishes the organization from the previous one 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 that they are trying to establish. Unfortunately, they lack the follow-up and organizational learning to continue the culture change process internally. Due to the high turnover in leadership positions, developing a culture that will be ingrained in organizational memory is very difficult.

Leadership communication

Organizational transformation cannot begin unless all the necessary stakeholders are on board and understand the new mission. Without adequate and continuous 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 belonging and purpose. Brauns (2013) gives examples of what organizational transformation from performance management to rewards should look like, keeping employee interest in mind and keeping employees engaged during change should be the goal. For example, the reward system that exists must express the values ​​of the organization and must send the right message from the organization’s perspective. If employees do not understand the value of rewards or benefits, resistance to change will arise. In addition, performance management must be addressed and, according to Brauns (2013), consists of the three Cs, coherence, coordination and control. If leadership can communicate and gain the trust of its organization and followers, this will make large-scale transformation more achievable. Without trust, employee resistance will hamper any changeover effect.

The organization that is the reference for the exercise has not done a very good job in this area of ​​change. There seems to be little attention 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 go on and make the difference that is needed. Leadership communications are often confusing and / or vague, which can cause frustration for employees. Consistent communication and frequent communication on the progress of the change process would be recommended. With the addition of several key leaders in the last six months, stability from within is in the near future.

Performance measure

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

Throughout this exercise, internal learning, customer and learning have been addressed as main components of organizational transformation. Although the financial perspective is not addressed by name, it implies having a balanced organization and achieving this balance through a great transformation.

In the referenced company, they do have their own performance management system, although it seems to be very geared towards internal measures and goals that this writer feels are very nonspecific and generic. Also, without a reward system, a performance management system seems dumb. It is the writers’ recommendation that a small incentive be attached to performance measurement; otherwise the result will be black or white; Either you qualify and keep your job or you get fired. To maintain a productive workforce during large-scale transformational change, leadership is tasked with keeping organizational engagement high and providing excellent communication. Without this guidance from the leaders and according to Appelbaum et al. (2008) employee input, considered a critical factor, large-scale transformational change will be difficult to achieve.

Conclution

Organizations must change to remain competitive in the marketplace. The way they learn and use the knowledge they have acquired will undoubtedly 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 and Vázquez, 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 evaluation of the performance of higher education. TQM Magazine, 18 (2), 190-205.

Wischnevsky, JD and Damanpour, F. (2006). Organizational Transformation and Performance: A Three-Perspective Examination. Management Issues Magazine, 18 (1), 104-128.9.