Organizations function by ensuring demand for great efficiency compliments firms’ value for money through accountability. The banking industry comprises of various firms competing to gain and sustain a competitive advantage. As a result, they re-evaluate how banking services ought to be resourced, packaged, and delivered efficiently and effectively. Technologies have been expanding and advancing due to modernization and globalization. This has led organizations to identify measures that can achieve and enhance organizational goals and objectives. For example, firms within the banking industry have to implement new managerial practices marking proliferation of targets. Consequently, they are able to meet consumer and stakeholders’ needs and expectations while upholding compliance and measurement regulatory standards. This ensures firms within the banking industry are responsive towards environmental factors enhancing customer service and commercial success levels (Anthonia, Adewale, & Joachim, 2013).
Human resource management therefore refers to practices formally formulated and implemented in an organization to achieve industrial revolution. Conversely, organizational change refers to the processes undertaken by organization in order to identify and analyze activities necessary in transforming and developing a firm. Organizational changes therefore ensure firms achieve adaptation across various industrial settings or business environments. Consequently, they are able achieve employees, consumers, suppliers, shareholders, and competitors needs, wants, and expectations. Organizational changes can be social, economic, political, and technological in nature as they have to ensure the firm’s mutation achieves a competitive advantage. This guarantees needs representing clients, stakeholders, partners, and joint ventures are fulfilled (Eugenia, & Adrian, 2011).
According to Eugenia and Adrian, companies engage in diverse activities necessary to achieve change through organizational mutation, transformation, development, and adaptation processes. Organizational change commences with analysis of the business settings and environment. Thus, elements constituting the business environment such as consumers, shareholders, suppliers, technicians, employees, and competitors have to undergo rapid evolution in alliance to organizational social, economic, political, and technologic needs and trends. These forms of organizational changes have transformed and evolved business relations. For example, some suppliers have transformed to firm partners, partners to joint ventures, employees to clients, clients to competitors, and/or competitors to suppliers (Eugenia, & Adrian, 2011).
The adaptation process during organizational change however has to be rationalized. This ensures organizational resources are utilized effectively and efficiently. Consequently, an advantageous strategy is chosen to ensure natural economic, social, political, and technological parameters guarantee organizational change, adaptation, survival, and success through a gradual life cycle. Organizational change occurring gradually according to the firm’s life cycle should therefore take the following phases. Foremost, the organization should give birth to an appropriate structure through the entrepreneurial form. The second or adolescence stage involves specialization phase. This phase involves development of functional and bureaucratic structures. The last stage is referred to as either the maturity or diversification phase. During this phase, organizations are expected to allow geographical profiles to reach expansion through generic transformational processes leading to a matrix and multidivisional structural growth. Ultimately, the phases ensure an organizational achieves adaptation and growth in order to sustain social dynamics through imitation and selection forms (Eugenia, & Adrian, 2011).
Organizational changes also occur to embrace the needs of the firm’s operations. To fulfill this, specialized researches should be conducted. For example, researches allied to industrial psychological and sociological surveys, scientific managerial practices, and managerial consultancy as well as technical studies should be implemented. They ensure the organization grows while acknowledging innovation and empirical management practices are vital towards the firm’s success. Essentially, organizational change relies on acceptance, fear of the unknown and external factors that can be either favorable or unfavorable to form the organizational communication process (Eugenia, & Adrian, 2011).
Effects of Organizational Change
Organizational change fosters innovation crucial in development and empirical management of resources. Organizational change is therefore vital as eliminates or reduces levels of fear and anxiety among parties relying on innovation to record and sustain positive organizational transformations. Organizational change also paves way for fresh ideas to be identified by hiring new, skilled, qualified, and skilled human resources. As a result, human resources are able to utilize impulses to stimulate, coordinate, monitor, and forecast the organization while accepting, managing, and embracing changes and transformations. In order for organizational change to occur, leaders have to understand environmental pressures. This is vital as problems can be pre-determined and resolved before they can cause conflicts or crises in the business environment. More importantly, organizational goals are reviewed to ensure financial and human resources are being utilized effectively to achieve the intended objectives within the estimated time limit. This reduces wastage of resources as managerial procedures are highly implemented during an organizational change to ensure the firm’s objectives are enhanced and achieved. Consequently, levels of competencies increase. As a result, standards and practices undertaken at the business environment are enhanced. This leads to increase in productivity levels and qualities. As a result, an organization is able to meet and fulfill its obligations towards consumers, partners, and stakeholders effectively and efficiently without being overwhelmed (Zehra, 2014).
Organizational change is also beneficial as it provides proof that the business environment is surviving, thriving, and continuing to seek success. As a result, organizational leaders are obliged to develop and adapt competencies on individual, group, and organizational levels for economic, social, technological, and political growth. Consequently, an organizational culture promoting the need to meet the firms’ objectives as well as clients’ needs, wants, and expectations is developed and maintained. This attributes to an organization recording culture success acknowledging and sustaining a learning process achieving a competitive advantage across the industry. Organizational change also identifies new opportunities with the potential to grow the business environment. Some opportunities can be limited. They can however be seized as long as processes during organizational change put effort in evaluating market and industrial relations for maximum satisfaction to be achieved. Lastly, organizational change determines how the firm is performing in order to identify measures, practices, and industrial relations to be ignored or utilized for maximum competitive advantages (Cristina, Cristina, & Sofia, 2011).
Human Resource Development
Organizations undergo changes gradually as they grow and expand. As a result, the human resource department should play vital roles ensuring organizational changes are top driven and initiated by strategic business goals needed to achieve the firm’s goals and objectives. The human resource should therefore anchor changes in managerial processes. Consequently, it should facilitate organizational transformations with regards to work and team dimensions. This will ensure diverse changes providing unique challenges are addressed effectively and efficiently. For example, human resource should increase human capital in order to enhance organizational effectiveness during the transformational process for progressive change to occur. For example, an organizational change may involve either addition or removal of products and services. As a result, human resource should ensure the existing organizational culture, functions, and operations support re-engineering of structures, processes, roles, and underlying assumptions are not adversely affected. Consequently, organizational changes can be reflected in development and results retrieval procedures by human resource recruiting, selecting, training, specializing, replacing, and moving personnel, skills, and staffs (Cristina, Cristina, & Sofia, 2011).
More so, human resource should create enhanced structures and cohesive teams that can promote organizational systems to achieve multinational adaptable structures. The human resource should also resolve and manage conflicts in an organization. This does not induce inefficient internal and external competition allowing proper organizational preparation plans to be implemented in order to achieve organizational and inter-organizational changes. Ultimately, human resource undertakes the central role of ensuring channels, factors, and agents of organizational change are effective and efficient. For example, human resource has to ensure employees at the firm act as instruments of production. This involves providing staffs with skills and discipline to perform organizational operations and functions excellently. Regular training sessions can therefore be planned in order to provide employees with professional and personal skills to enhance work capacities, productivity levels, and profits. This will encourage and motivate the labor force and manpower to achieve organizational goals, mission, and vision (Sandra, 1999).
Effects of Human Resource Development
According to the family planning management development technical unit, human resource departments play the critical role of creating and sustaining high performance and quality rates. Organizational operations and functions depend on how employees manage decentralization, partnerships, expansion, downsizing, and sustainability. Human resource departments should therefore provide technical help and support by designing instruments offering human capital with skills to assess their capacities. Consequently, employees can develop strategies improving human resource developments to enhance the departments’ efficiencies. As a result, the following human resource development benefits can be achieved. Foremost, human resource development attributes to systematic planning in order to support firms’ goals, objections, vision, and mission. Human resource developments enhance capacities to be achieved in order to meet and fulfill organizational goals and objectives. Organizational leaders ought to define employees’ responsibilities and work expectations. As a result, they are able to develop a link between organizational and employee missions. This motivates and encourages employees to work hard and smart to achieve organizational goals in order to achieve individual objectives often allied to career development. Human resource development creates greater equity between compensation and responsibility levels. As a result, organizational leaders can ensure the available resources are being utilized to strengthen areas generating positive organizational changes. This is despite a firm owning limited resources as it has to develop strategic improvement action plans that are affordable, accessible, and effective (FPMDU, 1998).
Human resource development is also vital as it defines levels of supervision and managerial support. Thus, it ensures the labor force team is accountable while applying high performance standards to provide quality outcomes. Consequently, management can ensure skilled and experienced staffs are tasked in designing solutions to address crises, problems, and conflicts in the firm. Human resource development should therefore ensure an organization has sufficient and applicable resources as well as equipment supporting organizational changes as well as managerial decisions and policies for transformations. Consequently, human resource development leads to cost savings due to improved productivity and efficiencies. Human resource development is therefore vital as it has an increased ability to manage changes (Sandra, 1999).
According to Anthonia, Adewale, and Joachim, organizational change is necessary as it enables firms to compete across the ever changing and competitive business environments. Information, communication, and technological developments have encouraged organizations to pursue new and advanced strategies, ideas, and solutions that can creatively improve current products, services, systems, processes, and technologies. Effective and efficient human resource however is vital as it has to ensure positive work behaviors among labor force providers lead to organizational change. Thus, some organizations can either record failed organizational change initiatives or unintended results. Low success rates however should not deter a firm from pursuing organizational change in order to adapt and adopt towards the changing social, economic, technological, and political parameters. More so, innovations, advanced technologies, and consumer needs as well as stakeholders can embrace organizational change. Human resource ensures an organization is an agent ensuring internal and external responsibilities are managed for core competencies to implement organizational leaders’ efforts to transform the firm. As a result, effective communication is vital as organizational leaders have to guide, direct, manage, formulate and implement strategic responses enhancing competitive pressure across private and public firms to sustain international and domestic advancements, markets, and competition levels. Thus, organizational leaders have to incorporate new and pre-existing responsibilities, roles, and expectations (Anthonia, Adewale, & Joachim, 2013).
Some business environments can pose challenges against organizational change. Their complexities and frequencies can increase in equal magnitude human resource deploys labor force including employees and leaders in order to focus on adopting the best organizational change practices. The change management approach should therefore be adopted in order to either shift or transform people, groups, and organizations from the existing state to a desired successful future. Change management approach is therefore an organizational procedure that ought to assist change while ensuring joint ventures, partners, and stakeholders embrace changes in the business environment. This approach advocates for management of change processes while ensuring human issues at local levels are addressed and resolved. For example, most organizations focus on competitive landscapes, organizational learning, and strategic leadership. As a result, they neglect areas requiring conceptualization of change based on employees’ ideas, opinions, and viewpoints. This has encouraged organizational change to be a pervasive phenomenon across human service and business organizations due to issues such as globalization, neo-liberalism, and political shifts. As a result, employee resistance towards organizational change proves challenging when implementing transformational dynamics. Cooperation from employees is therefore vital as it determines the success or failure of an organizational change process. Thus, resistance is a huge barrier hindering successful implementation of organizational changes as it perceives transformations as automatic and expected (Anthonia, Adewale, & Joachim, 2013).
Organizational managers should therefore plan for resistance in order to implement organizational changes effectively and efficiently. Employees with individual tendencies to either resist or avoid change feel organizational transformations are deliberately undertaken to change how a firm’s formal system, structure, processes, markets, products, and services function. They believe the changes are not beneficial to employees as they only focus on organizational needs, goals, and objectives. Organizational leaders should therefore ensure organizational changes positively impact employees. Consequently, employees will adapt and adopt the changes. As a result, they should analyze organizational changes into content or contextual research, type, and structure, as well as criterion and process researches (Anthonia, Adewale, & Joachim, 2013).
Structure and process researches are similar to content or contextual researches. Types of organizational changes are diverse. They include changing organization’s mission, strategies, operations, technologies, and personnel attitudes and behaviors. Readiness factors during organizational change are bridges between identification of firm needs and activities to be implemented. The most crucial factor is therefore leadership as it ensures organizational culture supports positive transformations to occur effectively and efficiently. More so, leaders are able to differentiate among behavioral, consultation and problem identification organizational changes. This enable organizational leaders to gather preliminary data and diagnostic results before communicating the firm’s mission, vision, and goals in order to remove obstacles for short and long term successes. Consequently, a corporate culture allowing organizational change to occur is built (Anthonia, Adewale, & Joachim, 2013).
The theoretical framework of human resource management refers to the process of designing and applying formal systems in a firm for effective and efficient utilization of resources and goals to occur. Foremost, human resource ought to employ staffs with skills and qualifications they can utilize to achieve organizational goals and objectives. Secondly, the organization should establish industrial relations. This will ensure the firm’s interests and goals are aligned and committed to achieve a competitive advantage in the industry. Consequently, employees will adapt towards organizational changes enthusiastically as they do not face either prejudice or strife. Thus, high performing employees can attain organizational goals and objectives as their human resources match organizational needs and business strategies (Anthonia, Adewale, & Joachim, 2013).
Human resource should therefore achieve the following goals. Employees should be encouraged to enhance their commitment levels towards increasing performances which leads to organizational loyalty. Human resource should also pay emphasis towards employees’ output qualities. Goods and services should be of high quality in order to meet and fulfill consumer needs, wants, and expectations which is the main organizational goal and objective to be achieved. Organizational goals and strategies should be integrated into the firm’s plans. This ensures organizational policies cutting across industries and markets are implemented and accepted on a daily routine basis by line managers. Human resource is therefore a critical factor determining the success or failure of organizational change. It should ensure proper personnel are managed to achieve competitive advantage on behalf of the organization across industrial levels (Zehra, 2014).
Perspectives on Organizational Change for Human Resource Development
Change is construct that is familiar, seldom, and explicitly defined. Organizational change involves transforming patterns, beliefs, actions, and attitudes on an individual and organizational level among human capital and resources. Human resource should therefore encourage people to behave in a manner through which they can feel and belief in diverse interventions aimed at changing the organization. The first perspective is therefore allied to the fact that organizational change is a cyclical process through which human resource departments learn. They are able to create knowledge, disseminate and implement the newly acquired information in order institutionalize what has been learned to make routine organizational changes. Organizational change therefore acknowledges transformations occur through a learning process while establishing fundamental relations constructing and developing human resource (Nada, Katarina, & Kristijan, 2012).
Diverse organizations do not focus on development of strategies. Thus, they lack a planned manner or formal competences to determine the time frame to develop and implement organizational changes. As a result, formal human resource training courses and learning interventions should be planned to ensure they are flexible and adaptable. Consequently, they should be efficient and efficient in order to respond to crises occurring during organizational change. For example, a banking organization should embrace total quality management as solution to enhance performance incase organizational change interferes with productivity. This involves ensuring outputs such as production processes and the quality of products and services are paid central importance during formulation of public management strategies. As a result, training and management of organizational resources should involve a planned strategy supporting restructuring of the firm. Consequently, real human resources should be designed to formulate policies ensuring employees being hired are trained to produce quality and improved products and services (Zehra, 2014).
The perspective of power is based on the notion that, organizational leaders should strategize central levels of a firm’s objectives, roles, and directions. This will ensure incentives within the firm are deployed to manage competition for positive results to be acquired. Organizational leaders should also be responsible in order to provide human resources with freedom of choice. For example, consumers should be provided with freedom of choice. Conversely, employees should be provided with freedom of choosing working conditions in order to sustain healthy internal competition while producing high quality outputs. Ultimately, organizational leaders should have the power to control employees, firms, and communities’ capacities. Consequently, an organizational culture embracing habitual changes coupled with attitude and relational transformations (Cristina, Cristina, & Sofia, 2011).
Effects and Roles of Organizational Change and human resource development
Organizational change and human resource development are important factors sustaining a firm’s strategies, culture, structures, and leadership goals to achieve and sustain a competitive advantage. Human capital however is a vital resource and factor to focus on to either avoid or resolve crises during organizational changes. Human resource should ensure human capital support decision making procedures undertaken by organizational leaders giving legitimacy towards organizational transformations and strategic developments. Situations, events, and conflicts arising during organizational change should therefore be addressed professionally by organizational leaders relying on solidarity to address, resolve, and overcome them through maximum efforts. Organizations should be led by leaders stimulating the firm’s culture, attitude, and climate to adapt and adopt change. For example, if an organizational transformation threatens a leadership style or weakens solidarity efforts, the leaders at the firm should reduce stress levels arising from such a situation or event. Consequently, they should utilize available resources towards eliminating current and future sources of either internal or external conflicts while managing and maintaining healthy competition. Ultimately, leaders should ensure organizational changes utilize available resources to promote lifelong learning experiences aligned to crises resolutions to maintain organization’s core values (Nada, Katarina, & Kristijan, 2012).
Job descriptions are developed through organizational change. Identifying and describing unique organizational roles and responsibilities across various departments in a firm require understanding. Thus, human resource developments should ensure the nature of the organizational roles and responsibilities is determined. Consequently, skilled and competent personnel will be required to undertake the new roles and responsibilities. Conversely, human resource developments have to ensure organizational changes do not interfere with the smooth functions and operations of the firm. Job interviews, training sessions, and performance appraisal assessments should be conducted. They will ensure human resources and capital are being utilized efficiently and effectively to achieve organization’s primary and secondary responsibilities (Nada, Katarina, & Kristijan, 2012).
It is evident organizational changes can lead employees to fear, feel intimidated, or obliged to embrace and adopt transformations. The human resource development role is therefore ensuring labor workforce teamwork does not fear or resist organizational changes. For example, small business entrepreneurs should not fear partnering with large and multinational firms as employees may feel their job opportunities may be at risk of being dissolved. Instead, the human resource manager at the small scale business venture should undertake the public relations role of educating the apprehensive employees on the diverse benefits of partnering with a multinational organization. Consequently, employees can develop new and innovative ways of ensuring the new arrangement at the firm benefits the firm as well as human personnel or the labor workforce team. Thus, fear against organizational change should be eliminated by affirming to persons providing labor that, their job positions are neither at jeopardy nor uncertain after formation of a partnership or joint venture. Thus, effective communication is the key factor ensuring effects and roles of organizational change and human resource developments are clear, effective and efficient (Cristina, Cristina, & Sofia, 2011).
Organizational change occurs amidst complex and large issues as they have to be addressed, eliminated, and/or resolved. This ensures organizations transform based on the need to resist change, avoid or reduce competitive struggles, and seize both domestic and international markets. Organizational change is however facilitated and supported through human resource development. Organizational changes can either be positive or negative. Human resource developments should therefore lower risks, resolve issues, and eliminate possible conflicts or restrictions likely to hinder organizational change. Consequently, the firm will be prepared to adapt, adopt, and embrace implemented structural and systematic changes for positive transformations to be achieved. Human resources however should understand both multiple and complex transformations on individual, group, and organizational levels. As a result, appropriate measures, strategies, practices, and standards improving organizational preparation for change should be identified through theoretical, scientific, and technological researches. The research findings should be applied in ensuring human resource developments promotes creativity, innovation, openness, and more importantly entrepreneurship.
Anthonia, A., Adewale, O., & Joachim, A. (2013). Organizational Change and Human Resource Management Interventions. Department of Business Management, College of Development Studies.
Cristina, M., Cristina, A., & Sofia, E. (2011). The Strategic Role of Human Resources Development in the Management of Organizational Crisis. Economia Seria Management, 14(1), 207-222.
Eugenia, C. S., & Adrian, S. (2011). Human Resource Development for Organizational Change. Romania, Clug Napoca University.
Family Planning Management Development Technical Unit (FPMDU). (1998). Human Resource Development (HRD) Assessment Instrument for Non-Governmental Organizations (NGOS) and Public Sector Health Organizations. Management Sciences for Health.
Nada, T., Katarina, B., & Kristijan, B. (2012). The Relationship between Human Resource Development System and Job Satisfaction. International School for Social and Business Studies.
Sandra, M. B. (1999). The Value of Human Resource Development to an Organization; Providing Technical Assistance to Small Manufacturing Companies. Virginia Polytechnic Institute and State University
Zehra, A. B. (2014). Human Resource Management and Its Importance for Today’s Organizations. International Journal of Education and Social Science, 1(2), 85-95.
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