Tag: PERFORMANCE MANAGEMENT

Change management is defined as the methods and manners in which a company describes and implements change within both its internal and external processes. This includes preparing and supporting employees, establishing the necessary steps for change, and monitoring pre- and post-change activities to ensure successful implementation.

Significant organizational change can be challenging. It often requires many levels of cooperation and may involve different independent entities within an organization. Developing a structured approach to change is critical to help ensure a beneficial transition while mitigating disruption.

Changes usually fail for human reasons: the promoters of the change did not attend to the healthy, real and predictable reactions of normal people to disturbance of their routines. Effective communication is one of the most important success factors for effective change management. All involved individuals must understand the progress through the various stages and see results as the change cascades.

Change Management Need

Change management is a complex process and requires serious attention as well as involvement from the management and people from all levels, in order to achieve a meaningful or a progressive transformation across various levels. For being ahead in the competitive race and gaining a winning edge, organizations have been focusing on expansion of business worldwide, achieving excellence in processes and operations, implementing innovations in technology and identifying/developing the right talent. The fast changes which have taken place and the way in which this has affected the strategies, people, policies and processes in an organization, it has become all the more imperative that organizations clearly establish a well-defined change management framework for realizing the strategic objectives. Change is inevitable and it can only be managed, failing which the organizations may cease to exist.

In the era of globalization, organizations function across the cultural boundaries with large investments in human capital as well as physical resources, give utmost importance to technological change and innovative practices for a leadership advantage. Business alliances like mergers, acquisitions, diversifications, takeovers and various other collaborative ventures have become the most preferred strategic best practices for the organizations to survive the fierce forces of competition, through transfer of people, technology, processes and leadership. For successfully handling this transition and converting the threats of change into opportunities, organizations must be flexible and open for Change Management.

By improving the readiness for change, organizations can strengthen their adaptability mechanisms and build their internal competencies for facing future uncertainties or many such multiple change auguring situations. An organization’s readiness for change management influences organizational strategies and policy related decisions, as it involves a comprehensive, well planned approach and implementation of systemic interventions which would have an overall influence on the system, processes, people as well as the organizational structure as a whole.

Innovations in technology and research advancements, have created opportunities for working virtually across any part of the globe; changes in the organizational structure and hierarchy; changes in the human resource policies and regulations, has resulted in organizational reengineering and change in the style of working of employees.

For meeting the growing demands of ever changing business operations, more dynamic and flexible organizations have endorsed new methods of working like flexi work hours, work from home, freelancing opportunities, virtual method of working, business operation outsourcing and project driven operations, etc. which provide ample opportunities to the workmen to work as per their convenience and flexibility.

Organizations change for responding to the fluctuations or volatility in the business environment. Any change in order to have successful outcomes must involve comprehensive planning, focused approach and involvement of the key stakeholders in the entire process.

For any organization, people play a very vital role in driving business excellence as they are the most valuable assets. Hence, a change in the method of handling a job role, implementation of facilitating interventions and training people about the new practices or techniques, can result in impressive results in terms of the return on investment (ROI). How organizations manage change or respond to the business transitions largely depend upon the adaptability of people or readiness of the people in understanding the changes in the process and method of handling a job. Change management process may directly affect the human resource strategies of an organization depending upon the goals or strategies of an organization.

A well-defined change management process can help in mitigating risks related with the people side. If this aspect is ignored, it might result in increase in the overall costs, decline in productivity as well as employee motivation and increase in the absenteeism level and employee attrition. Hence, it improves the overall preparedness of the management and the decision-making authorities in understanding the need for managing change, the key processes involved in it and in understanding the operational technicalities connected with it.

Planned change if effectively implemented can be beneficial in terms of controlling costs, minimizing risks, reducing the stress and anxiety by controlling uncertainties. It helps in setting up new milestones, establishing objectives, defining priorities and identifying the limitations for driving excellence in new initiatives.

Effective Change management process help organizations in understanding the changing customer needs, meeting their demands and expectations much better since the requirements are well defined. If implemented with proper planning, change management does not affect the day to day functioning of an organization, rather it functions concurrently. Instead it creates a scope for establishing best practices, defining the operational framework and regulations for the people, processes and system. It engages people in the entire process and motivates them to work towards realization of a common goal or objective and deliver excellence in performance through collaborative efforts and involvement in the process as a whole. Research in this direction proves the fact that organizations which have an established change management process are more likely to excel in meeting the business goals or achieve excellence in their project outcomes.

Effective change management is the key to realization of operational effectiveness, plays a key role in creating an optimism in the organizational environment as it has holistic outcomes and enables achievement of outcomes by defining superior benchmarks and working towards it for realization of the set benchmarks.

Organizational change affect the leadership thinking style and may optimize the benefits by establishing the systems and processes in place, establishing an integrated framework for achieving the developmental goals with the complete involvement of people in the end to end stages of change management cycle.

Kotter’s change management theory

Kotter’s change management theory is one of the most popular and adopted ones in the world. This theory has been devised by John P. Kotter, who is a Harvard Business School Professor and author of several books based on change management. This change management theory of his is divided into eight stages where each one of them focuses on a key principle that is associated with the response of people to change.

Stages

• Increase urgency: This step involves creating a sense of urgency among the people so as to motivate them to move forward towards objectives.
• Build the team: This step of Kotter’s change management theory is associated with getting the right people on the team by selecting a mix of skills, knowledge and commitment.
• Get the vision correct: This stage is related to creating the correct vision by taking into account, not the just strategy but also creativity, emotional connect and objectives.
• Communicate: Communication with people regarding change and its need is also an important part of the change management theory by Kotter.
• Get things moving: In order to get things moving or empower action, one needs to get support, remove the roadblocks and implement feedback in a constructive way.
• Focus on short term goals: Focusing on short term goals and dividing the ultimate goal into small and achievable parts is a good way to achieve success without too much pressure.
• Don’t give up: Persistence is the key to success, and it is important not to give up while the process of change management is going on, no matter how tough things may seem.
• Incorporate change: Besides managing change effectively, it is also important to reinforce it and make it a part of the workplace culture.

Benefits of this model

• This is a step-by-step model that is easy to follow and incorporate.
• The main idea behind it is to accept the change and prepare for it rather than changing itself.

Nudge Theory

Nudge Theory or Nudge is a concept that finds use in behavioral science, economics, and political theory but can be applied to change management in organizations and businesses as well. This theory is mainly credited to Cass R. Sunstein and Richard H. Thaler. Nudging someone or encouraging and inspiring them to change is the basic essence of this theory. Nudge theory is not only helpful in exploring and understanding existing influences but also explaining them to either eliminate them or change them to an extent where positives may begin to be derived.

It is important to note that there are many unhelpful ‘nudges’ around which can either be deliberate or may just be accidental. What this theory mainly seeks is to work upon the management as well as the understanding of the many influences on human behavior that lead to the changing people. It focuses on the design of choices which is responsible for directing our preferences and influencing the choices that we make. What this theory says is that choices must be designed in such a way that it can be aligned with the way people think and decide.

As compared to other theories, Nudge Theory is more sophisticated in its approach and is radically different from other ways of transitioning. This theory eliminates traditional change methods like punishment enforcement and direct instructions. One of the main benefits of this theory is that it takes into account the difference in feelings, opinions, and knowledge of people and also considers the reality of the situation as well as the characteristics of human nature and behavior. It thus minimizes resistance from employees of a company and is very well applied in several industries.

Bridges’ Transition Model

Bridges‘ transition model was developed by William Bridges who is a change consultant, and this theory came into the eye of the public after it was published in the book “Managing transitions”. The specialty of this model or theory is that it concentrates and focusses upon transition and not change as such. The difference between transition and change may be subtle, but it is important to understand it. Where transition on one hand is internal, change on the other is something that happens to people, even when they don’t realize it. Transition is something that happens to people when they are going through the change. Change can be instant, transition may take time.

The model focuses on three main stages that are given as follows:

• The Neutral Zone: This is the stage of uncertainty, impatience, and confusion. This stage can be considered as the bridge between the old and the new when people are still attached to the old but trying to adapt to the new. This stage is associated with low morale and reduced productivity, and one may experience anxiety and skepticism as well when going through this stage. But despite this, the neutral zone may also include innovation, renewal and a burst of creativity.
• Ending, Losing, and Letting Go: When people are first introduced to change, they may enter this first stage that is marked with resistance and emotional discomfort. Some of the emotions experienced at this stage include fear, resentment, anger, denial, sadness, frustration and most of all-disorientation. One has to realize that he/she is coming near to a certain end so as to accept new beginnings.
• The New Beginning: When the neutral phase is passed through support and guidance, the stage of acceptance and energy enters the picture. At this level, people begin to embrace the change and understand its importance. They are beginning to build the skills needed to reach the new goals and may start to experience benefits of the change already. It is associated with high levels of energy, new commitment and a zest to learn.

Kübler-Ross Five Stage Model

The Kübler-Ross five stage model was developed by Elisabeth Kübler-Ross after she pursued her research on the dying and death. This model is also thus known as the Grief Model as it talks about the various emotional states and stages a person goes through when he/she discovers that he/she may be nearing their end. The model can also be applied to other life situations such as loss of job, changes in work and other less serious health conditions. The model helps to understand and deal with personal trauma and has been widely accepted worldwide. The following are the various stages that are associated with the Kübler-Ross model:

Anger: When the news actually gets absorbed, then the first reaction is usually that of anger. The denial converts into anger when one realizes that the change will actually affect them and is for real. One starts looking for someone to blame during this stage. For different people, there can be different ways of directing anger.

Denial: Denial is the first stage of the model and is a stage when one is unable to accept the news. It is like a buffer or defense that a person tends to create due to the inability to absorb the news. One may experience shock as well as a sense of numbness during this stage and this happens because every person shows resistance towards change and may not want to believe what is happening.

Bargaining: The next step or stage involves bargaining so as to avail the best possible solution out of the situation or circumstance. Bargaining is a way for people to avoid ending up with the worst-case scenario and is a natural reaction to avoid the extreme change.

Depression: When one realizes that bargaining isn’t working, he/she may end up getting depressed and may lose all faith. This is the phase when one is not bothered by anything and moves into a sad and hopeless state of mind. There are many ways to observe or identify depression and some of them include low energy, non-commitment, low motivation and lack of any kind of excitement or happiness.

Acceptance: When one realizes that there is no point in being depressed or fighting change, he/she may finally accept what is happening and may begin to resign to it. There are different ways in people handle this stage. While some may begin to explore the options left with them to make the most of the situation, others may just feel that no option is left for them and may just resign to destiny.

Competence Based Management is comparatively a modern method to find on the means by which firms achieve excellent performance and also more important sustain that good performance. The significance of this method lies in the fact that it can provide a theoretical explanation about the way in which firms will be able attain and also sustain competitive advantage. This management approach provides the theoretical approach that can explain this method in a methodical and ordered manner.

In this method it is important to give stress to the competence of an organization rather than the environment in which it functions. So it is rather a method that looks inward into the organization. Therefore, this theory will be useful to understand the abilities of an organization that help it to achieve competitive advantage. It is considered to be based on four pillars namely dynamic, systemic, cognitive and holistic aspects of competences of the organization. Fundamentally competence should include these four natures of the organization to attain competitive advantage.

For every position, employees require specific competencies; qualities they need in order to perform their work well. In most cases, they are already in possession of these qualities.

At the same time, there are also many possibilities for developing various competencies. This is exactly what competency management is all about. When developing their competencies further, employees will be able to perform their tasks even better.

This will ultimately benefit the company. Many companies engage in competency management because it allows them to align business objectives with the knowledge, skills, and professional attitude of their employees. If it is clear what competencies are required, companies may adjust their recruitment policy accordingly.

Steps:

1. Description of General Core Competencies

By first determining which core competencies are important, the organisation can create a general portfolio of the people it’s looking for. What is the company’s core business, how does it distinguish itself from competitors, and how does the company aim to profile itself to the outside world?

This step is at the strategical level, and revolves around the question of which core competencies are required to remain successful in the coming years.

For instance, an airline company will place great importance on competencies such as customer focus, service-oriented, solution-oriented, and communication. These are the competencies required of employees in every department and within all business units.

2. Development of Competency Profiles

Once the core competencies are clear, one can start determining the competencies of the individual employee. Naturally, these must be derived from the core competencies.

Each department requires specific knowledge, skills and professional attitudes. In the same airline company, technical and analytical insight will be important among the technical staff, whereas stress-resistance will be considered one of the core competencies for the cabin crew.

If job-oriented competencies are not yet clear, it may help to establish profiles on the basis of interviews with managers and employees.

Moreover, the established competency profiles may be added to the job descriptions. A complete list of competencies may also be included in a competency handbook as a useful way to contribute to competency management.

3. Making Competencies Measurable

Once it is clear which competencies apply to the various positions within an organisation, it is recommended to make these competencies measurable. Competencies may be linked to result areas and performance indicators.

This will take place at department level (tactical level), and it is the task of managers to clearly communicate this to their employees. By indicating in advance what is required of employees and how individual competencies are measured, everyone will know what is required of them.

This is made even clearer on the basis of SMART objectives; what are the Specific expectations, how is it Measurable, is it Acceptable and Realistic, and what is the Time frame?

For example, based on the number of complaints handled, this approach allows the airline company to evaluate how customer-oriented an employee has been in handling complaints during the past year.

4. Create Support

Regular employees will not necessarily like it if only management and middle management are in charge of determining the competency profiles. They’ll get the impression that all the decisions are made for them.

By involving employees in drawing up the competency profiles, they will be more inclined to take these competencies to a higher level. Competency management will only be successful by creating support among employees.

In addition, employees must understand its usefulness. In the event of any resistance, it is the task of management to conduct individual conversations with employees.

5. Implementation Competency Management

Ultimately, all competencies must be integrated into the human resources policy. The implementation of competency management is only a fact once it has become part of the corporate culture.

At the operational level, the competencies will then form the basis of both the selection process and development process of current staff. Competency profiles are implemented and used during assessment, performance, and personal development interviews, as well as during general job interviews.

Features

• Pinpointing triggers for each role.
• Identifying the key success factors.
• Laying direction for superior performance.
• Serving means for communicating performance expectations.
• Ensuring that the employees obtain greater transparency about their roles.
• Providing opportunities for development.
• Setting defined expectations from employees.
• Creating a more empowered workforce.
• Employing the workforce effectively.

Objectives

Objectives set out both the general and definite intents of the organization. Strategy is thus formed by the objectives. Over all objectives identify the following:

• The intention of the organization
• Long and short-term aspirations and ambitions of the organization
• The decision-making structure of the organization
• The foreseen results of its plans and actions.

The main determinants of the objectives of an organization are:

• The characteristics of its business activities
• The available resources
• The organizational culture
• The stakeholders and the influence they exert
• The operational environment

Talent management software is technology that human resource management professionals use to manage employees as a competitive advantage. Talent management can refer to a standalone application from a niche vendor that specifically addresses one part of the process, such as a learning management system. Or the HR technology can be an integrated suite of software applications aimed at the entire employee lifecycle.

In the latter sense, talent management software is often referred to as a talent management system and automates certain processes from the time potential employees apply to when they are hired until they retire. Talent management systems typically contain applications that fall into the broad functional areas, referred to as pillars. In recent years, cloud-based talent management software has become the prevailing norm.

Pillars of talent management

Traditionally, there were four pillars or modules of talent management applications, but in recent years, a number of experts and vendors refer to five pillars of talent management. Regardless of the number and names, talent management systems include applications that fall into one of these following broad functional areas. The names and number of pillars change depending on the talent management systems vendor, but the concepts remain the same:

• Recruitment and onboarding
• Learning and development
• Performance management
• Compensation management
• Succession planning

Talent Management System is designed to keep track of talent within an organization. Talent is classified as valuable members of personnel and prospective employment candidates who have applied for open positions. If you plan on working the expanding field of TMS, you will need to learn how to navigate through a TMS system and how to utilize the system as you scope out, qualify and hire talent. The best TMS used today by mid-sized and large corporations will keep track of data at many different points in the employee life cycle. The data that the system compiles can then be used for strategic professionals for several different purposes that benefit the organization.

Data can be used by professionals who work in the Human Resources department in a number of different ways. You have to consider how organizing company data and running specific reports can help you do your job in HR before you reject the efficiency of any type of program. If you work in HRM, you can integrate your TMS system and your application tracking system so that you can easily sift through applications and organize them. This helps you efficiently identify quality applicants or place others on a wait list for future job postings.

Another benefit of a quality TMS system is that other departmental managers can enter data and rate an employee’s progress. This helps HR assess the employee’s performance to see if they are candidates for a raise or a promotion. By having this system in place, you can retain those who are an asset and discipline those who have not been committed to their job. If there is room for improvement, managers and HR professionals can provide their employees with training materials so that employees can further their skills. By keeping track of the talent in these software systems, only the best applicants are chosen and only the best employees are retained. This eliminates costs and reduces the time it takes to manage human capital.

Assessing an organization’s human capital to ensure that everyone has the right skills is very important. By using a TMS, organizations can eliminate hindering talent gaps that might exist to create a skilled workforce. Today, HR is all about strategy. Using specific metrics and data to assess the quality of the workforce is extremely important for recruitment, training and even incentive purposes. By working as a team, HR managers, supervisors and departmental managers can all work together to make better organizational talent decisions. With answers to the question, “What is a Talent Management System?,” you can build your understanding and show employers why you are a good candidate.

In adverse economic conditions, many companies feel the need to cut expenses. This should be the ideal environment to execute a talent management system as a means of optimizing the performance of each employee and the organization. Selection offers are large return on investments. Job analysis and assessment validation help enhance the predictive power of selection tools. Data points such as cost-per-placement or average time to recruit are critical in predictive analytics for talent management. These evaluation methods use historical data to provide insight. However, within many companies the concept of human capital management has just begun to develop. With more companies in the process of deepening their global footprints, more questions have been asked about new strategies and products, but very few on the kind of leadership structure that will bring them success in their globalization process. “In fact, only 5 percent of organizations say they have a clear talent management strategy and operational programs in place today.” The impact of globalization on talent management practices is specifically covered in several recent books.

Today, the staffing companies in India have realised the potential to correct Talent Management Strategies. The burning issue with many companies is that they spend a lot of time developing their talent but spend very little to retain and develop them. A glowing example of a successful talent management strategy is third party payroll. Talent management is also sometimes known as HCM (Human Capital Management) and HRIS (Human Resource Information System). Contractual staffing will have a significant role to play in the talent management system of the future.

Distinctly called human capital management, employee relationship management and workforce management, among others, talent management is not a new concept, but one that in the past corporations haven’t been set to finalize. India Talent Management has become one of the most important buzzwords in Corporate HR and Training today. Right talent is the greatest asset for any enterprise and one of the essential roles of HR is to make sure that the employees with the right skills stick with the company for long enough. The issue with many companies today is that their organizations put tremendous effort into attracting employees to their company, but spend little time into retaining and developing talent.

Employees who had high performance and high qualification scores were classified as “stars” and constituted the talent pool. Employees in other segments needed performance development, qualification development, or both.

Defining Strategic priorities: For any business strategy, the starting point is always the business’s strategy. Strategic priorities are vital in selecting the focus areas of HR. They answer questions like should we value more sales or marketing. Are we focusing more on enlarging the customer base or on deepening our customer relationship? Is third party payroll a viable option? Are we working in a project-based manner, or are we an operational partner for our clients? Indeed, the answers to these questions will impact the skills you are looking for in the new employees, and the staffing companies in India realize that.

Workflows: A number of workflows can be redesigned based on talent management practices. For example, you can support the digital transformation that the organization is going through by adding digital skills to your company’s pre-selection assessment.

Software Systems: Software plays an essential role in executing a talent management strategy, and in the future, it will play a significant role, especially in third party payroll.

Training: Training will be another central focus area, especially in this digital age, where company-wide transformations are common.

Money is not enough

Money attracts but it does not retain. The job-hopping frenzy in the Indian workforce, particularly among ambitious, talented millenials is enough to prove that point. A recent Mercer survey backs it up: 54% of Indians are seriously considering leaving their current employer, and in the 16-24 year age bracket, that increases to 66%. Yes, two-thirds of your call center could potentially be gone by the end of the year. Some will no doubt be chasing a hike in salary, but as is the case elsewhere, when it comes to knowledge workers, more knowledge is also what they are after.

Talent management in India should be seen for what it is: a risk management strategy against the business impact of having inadequate or insufficient human resources to fulfill organizational objectives. If that is the case, both local Indian companies and multinationals operating in India have much work to do.