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International HR Conference 2013Institute for Technology & Management

Kharghar, Navi Mumbai– 410210

Conference Theme: “To Build a Resilient Workforce beyond Boundaries”

Paper Title: HR as change agent for organizational excellence- A literature based secondary data

study

by-Monika Sinha, PGDM-HR 2013-15

-V. Swathi, PGDM-HR 2013-15-Mr. Vijay Karvande, Manager – Course Coordination

- B. V. R. Murty, Deputy Director, ITM- KhargharMonika Sinha,ITM- Navi Mumbai25&26 Institutional Area, Sec 4,Kharghar, Navi Mumbai- 410 210Monika.s@itm.edu

V. Swathi,ITM- Navi Mumbai25&26 Institutional Area, Sec 4,Kharghar, Navi Mumbai- 410 210v.swathi@itm.edu

Vijay Karvande,ITM- Navi Mumbai25&26 Institutional Area, Sec 4,Kharghar, Navi Mumbai- 410 210Vijays@itm.edu

B.V.R. Murty,ITM- Navi Mumbai25&26 Institutional Area, Sec 4,Kharghar, Navi Mumbai- 410 210murtybvr@itm.edu

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Abstract: The purpose of this research paper is to identify why Human Resources (HR) is a change agent in any organization to drive organizational excellence. HR practitioners, as change agents, are responsible for easing the impact of changes in their organization and to empower employees against the consequences of these inevitable changes. Sometimes, the change helps to produce a significant increase in performance excellence and the company can boost sales and production without major additional cost. Several vital competencies that are reviewed in this paper include how HR practitioners are path creators amongst the path breakers of organizational culture, by being change drivers and business focused. HR practitioners who are unable to function as change agents will inevitably create a barrier against their becoming a well-integrated strategic partner. Therefore, the role of change agent also mediates the relationship between certain HR competencies and organizational performance. This involves monitoring employee engagement and keeping levels high, developing strategies to retain top performers, and continuing to provide value-added services to employees.

Key wordsChange agent, organisational excellence, empower, culture, strategic partner, competencies

“Without changing our pattern of thoughts, we will not be able to

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solve the problems we created with our current patterns of thoughts’’ -Albert Einstein

What is change?

Change is to transform or convert from the original form to a form which is different.

Change happens. It is in the technology that makes our cell phones, Internet devices and our seemingly new products out of date. It is in the demographics of the diverse workforce as baby boomers learn to work aside Millennial. It is in changing global economic cycles with simultaneous growth in some markets and recession in others. It surrounds us.

In organizations, Change matters. An executive recently said that a business that took 50 years to build could be lost in two if it does not change. As a distinct organizational capability, change goes by many names: agility, cycle time, flexibility, responsiveness and transformation. Organizations that change respond to external demands, create higher intangible market value, implement strategies, plan for the future and create excitement among employees. Instead of winning through innovation, customer service and globalization, leaders demand fast innovation, rapid customer service and swift globalization. Change could also be defined as everything from re-engineering, right sizing, restructuring to cultural change, and companies have many proven and valid reasons of why they are willing to spend a huge deal of effort (money, time, resource etc.) on such investments. One of those reasons is to ensure that they are improving their competitiveness on the market. Or as Vincent Barabba, a retired General Manager of General Motors Corporate Strategy and Knowledge Development explained it: “We recently joined, as a founding member, the “Internet Home Alliance”, one might respond, “What is GM doing in an Internet Home Alliance?” The idea behind is to take customers needs into the consideration with questions such as: “When I'm in my vehicle, wouldn't I like to know what's going on in my home?” If the alarm goes off in my home, then I want to know about it just as soon as my neighbours do, no matter where I am. From that perspective, our management has had to rethink the boundaries of the General Motors enterprise”. What Barabba describes is a way of adapting in order to ensure the existence of General Motors for a long time ahead.

Change does not happen overnight and most people know that. To have sustainable change that is meaningful to people, it is something that they will have to embrace and see importance.

Most people need to experience the need for change before they really understand that. With that being said, many can get frustrated that change does not happen fast enough and they tend to push people further away from the vision, than closer. Every step forward is a step closer to a goal; change agents just help to make sure that people are moving ahead.

Who are change agents?

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Change agents are the people who act as catalysts for the change.

A change agent can be defined as a person responsible for organizing and coordinating the overall change effort. A change agent can either be internal change agents, who are most frequently a sub-set of organizational leaders, or an external change agent, who are most likely to be consultants or managers brought in to invoke change.

The role of a change agent is to bring about change in his/her area in the organization or business. A change agent does not have to be the person in authority, but they do, however, have to have a clear vision and be able to communicate clearly with others. Where people can be frustrated is, if they feel that someone is all over the place on what they see as important and tend to change their vision often. This will scare others away as they are not sure when they are on a sinking ship and to start looking for ways out. Frequently, Change agents are involved in helping a team implement new organizational systems to achieve a higher degree of output. The result expected of a change agent is to enable people to do more and find a better perspective on life. So although a change agent can trigger growth in an organization, the culture in which they exist or are brought into has a huge bearing on their success. If a school embodies itself as a true learning organization, change will happen much quicker. What is important to note is that being a “charismatic leader” is not something that is essential.

For example, was Steve Jobs a change agent, or a charismatic leader? Apple is not doing as well since he has passed away and their innovation has seemed to slow down. Steve Jobs was known for being notoriously tough to deal with and the trust that is essential to building a strong culture was probably lacking to some degree. We believe that change agents will help to create more leaders, not more followers.

Researches show that the most significant characteristics that conform to the ideal view of change agents are:• A person of great analytical skills coupled with good listening skills• A person with great mediator skills who is also an excellent architect• A person with good teacher skills in whom there is a wise coach as well• A person who has a good understanding of the goals to strive for by being persuasive and arriving at a consensus• A person who has a good understanding of the methods and the communications styles to use in a given phase of organizational development• A person who has a clear understanding of his roles in organizational development• A person who has a clear understanding of the goal of the change process• A person who has a clear understanding of what his activities should be in each phase of organizational development• A person who has a clear understanding of the theoretical tools useful for promoting innovation and creativity• A person who has a clear understanding of who the stakeholders to communicate with are or how it should be performed

Now having detailed change and change agents, what does organisational excellence mean to any employee?

Excellence is to have excelled in that industry by being a benchmark for every other bud

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whose turn now is to bloom into a flower.Does achieving organisational excellence involve only gaining overwhelming profits, or to excel in being a model organisation as well?

Explanation follows,

Organisational Excellence

“Organisation Excellence is delivering sustained superior performance that meets and where possible exceeds the expectations of stakeholders”

The drastic change in the business scenario calls for a speedy transformation of mission, vision, core values, core competence, management style, policy framework, management system, structures & process, renewal mechanism etc. of organization. Any change program would revolve around people - changing their mind set, behaviour and motivational level.

An Excellent Organisation, by definition, is one that has successfully worked out its integrated portfolio of needs, results, work and competence. First it has identified the needs of its three main stakeholders: Customers, Employees and Shareholders. Next, it has translated these needs into objectives or results to be achieved that will satisfy these needs. As its third step, the organisation has articulated the work that has to be done to achieve these results.

Someone or a group provides Visionary Leadership. There is a group of Committed and Competent Management Leaders equipped with the necessary competencies. The organisation’s management spends much time and energy to build a strong Organisational Culture. Finally, the organization has to put in place a system of identifying and developing core competencies needed to carry out the work, including leadership succession development plans.

Not always a desired visionary set by the A Team in an organisation is welcomed with open arms and minds. There are different aspects in looking at a phase. To be persuasive and accepting diversities and arriving at a consensus in leading a change is how a solution is obtained.

Following are the common hiccups faced in any organisation.

Barriers to Organizational Excellence

The need for rapid change is a fact of life in today's business environment. While there may be few companies whose leaders are committed to a belief that it is good for everyone to "change things up" from time to time, most change is undertaken to accomplish key strategic goals. No matter how necessary change seems to upper management, many barriers must be broken down if a planned strategic change is to be implemented successfully. The key to successful change is in the planning and the implementation. The three greatest barriers to

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organizational excellence are most often the following.

1. Inadequate Culture-shift Planning. Most companies are good at planning changes in reporting structure, work area placement, job responsibilities, and administrative structure. Organizational charts are commonly revised again and again. Timelines are established, benchmarks are set, transition teams are appointed, etc. Failure to foresee and plan for resultant cultural change, however, is also common. When the planning team is too narrowly defined or too focused on objective analysis and critical thinking, it becomes too easy to lose sight of the fact that the planned change will affect people. Even at work, people make many decisions on the basis of feelings and intuition. When the feelings of employees are overlooked, the result is often deep resentment because some unrecognized taboo or tradition has not been duly respected.

2. Lack of Employee Involvement. People have an inherent fear of change. In most strategic organizational change, at least some employees will be asked to assume different responsibilities or focus on different aspects of their knowledge or skill. The greater the change a person is asked to make, the more pervasive that person's fear will be. There will be fear of change. More important, however, there will be fear of failure in the new role. Involving employees as soon as possible in the change effort, letting them create as much of the change as is possible and practical is key to a successful change effort. As employees understand the reasons for the change and have an opportunity to "try the change on for size" they more readily accept and support the change.

3. Flawed Communication Strategies. Ideal communication strategies in situations of significant organizational change must attend to the message, the method of delivery, the timing, and the importance of information shared with various parts of the organization. Many leaders believe that if they tell people what they (the leaders) feel they need to know about the change, then everyone will be on board and ready to move forward. In reality, people need to understand why the change is being made, but more importantly, how the change is likely to affect them. A big picture announcement from the CEO does little to help people understand and accept change. People want to hear about change from their direct supervisor. A strategy of engaging direct supervision and allowing them to manage the communication process is the key to a successful change communication plan. By planning and dealing with these three areas thoroughly, carefully, and sensitively, people will be most likely to get on board and help implement the change and adapt to drive organizational excellence far more readily and supportively.Handling the Change Change management is commonly defined as both a) the set of skills and aptitudes an individual needs to successfully initiate and implement change, and b) the applications of tools for change (e.g. training, communication, process re-design, etc.) in adding value to an organization.

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“The Change Problem” is discussed by Fred Nickols in his research article Change Management 101. He mentions changes as a “what” problem and changes as a “how” problem to find out the ends of a problem. Nickols’ writes that, “it is often a person who is not responsible for results, who typically ask the questions; perhaps that is why people don’t see the point of change”. A. J Schuler lists the top ten reasons of why people are change resistant, some of which we will see are described as problems in other literature. An example of this is “The risk of change is seen as greater than the risk of standing still”, so is “People have no role models for the new activity” and “People genuinely believe that the proposed change is a bad idea”. When change agents reach the point where they need to understand the actions of people in the organization they need to have an understanding of their psychology.

For instance Abraham H. Maslow’s Human Motivation and Fredrickson’s Positive Psychology dwell upon just that and provide psychological explanations to resistance of change. These changes all have the same effect when they’re announced: they create fear! Why? Because: “change is good, except when it applies to me!” People don’t like to go out of their comfort zones, to be rushed. And even if the change could be synonymous with hope and joy for some, most often, the majority will dread it. In the face of the unknown, fear manifests as resistance, an unconscious emotional reaction usually related to our defence mechanisms.

Let’s take a specific example. In a highly technical enterprise, management decides to focus on behavioural skills (in recruitment, evaluations and promotions) to try to eradicate abusive behaviour by some of the managers and staff members who capitalize on their technical expertise to come out on top. Such an announcement will generate resistance, particularly among those who have established their credibility through technical prowess. These heavyweights usually hold key positions and are therefore “untouchable.” It’s normal that some of them will be opposed to this new concept. We’re proceeding, then, faced with negative attitudes from people who are resistant and protesting loudly. They can have a negative impact on others who were neutral towards the announced change. As in a mutiny, there are opposition leaders who must be “dealt with” quickly and efficiently.

Human Resources- The Current Scenario

Human resources are a set of individuals who make up the workforce of an organization, business sector, or economy. "Human capital" is sometimes used synonymously with human resources, although human capital typically refers to a more narrow view (i.e., the knowledge the individuals embody and can contribute to an organization). Likewise, other terms sometimes used include "manpower", "talent", "labour", or simply "people".

The professional discipline and business function that oversees an organization's human resources is called human resource management (HRM, or simply

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HR).The field of Human Resource Management (HRM) focuses on achieving corporate strategy through the effective management of people in organizations. It examines the link between people, satisfaction, and productivity. Effective HRM results in a higher quality of work life, higher productivity, and an improved readiness for change. The role of the human resources manager within a corporate environment has been undergoing rapid change. In the past, personnel managers served primarily as administrators, policing and maintaining the organizational status quo. However, the role of the modern human resources manager has become more ambiguous, shifting in the direction of business partner, employee champion and change catalyst, and focused on strategic leveraging of human capital.

Strategically applying/utilizing the various disciplines within human resources in order to cause organizational change and add value is often referred to as “change management.” HR professionals are increasingly being asked now than before, to develop personal skills and attitudes for implementing change as well as a technical understanding of how to apply the tools for change.

In the past, HR management positions were primarily held by people with master level degrees in organizational design, human resources management, organizational psychology, etc. However, with the shift of attitude toward people in organizations, it has become very important for HR managers to have a strong business background, as well as clear strategic and financial experience.

Roles and Responsibility of HR

The core roles of human resources professional are grouped into four broad roles: a strategic partner to the organization, an administrative expert, a change agent, and an employee champion.

Strategic Partner

As a strategic partner, the HR professional must be able to partner with the organization in developing plans that will align the firm's human resources with its long term corporate goals and vision. He or she should be able to contribute to business strategy development by aligning HR jobs with strategic goals, and provide tools and create an enabling environment to actualize these goals. The HR professional should be able to analyze work processes and recommend improvements where necessary. He or she should develop policies that will benefit the firm, management, and employees alike.

Administrative Expert

As an administrative expert, the HR professional is expected to carry out administrative duties like providing the tools needed for the organization to operate successfully. He or she should be able to manage the overall labour costs in the organization and plan for administrative budgets. As an administrative expert, the HR person should be an information manager, and should be able to

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discover new and evolving trends that will be beneficial to the company. The HR professional should be able to manage HR budgets (recruitment, selection, training and development, etc), and should be a good negotiator in times of salary decisions.

Change Agent

As a change agent, the HR professional should be able to find new ways of doing things that can move the company forward. He or she should be able to convince management of the need for the change and address employees about changes. He or she should coordinate and facilitate the change process, and provide the tools and structures needed during the change period. As an expert, he or she should be able to create a new organizational change without disrupting the firm's business.

Employee Champion

As an employee champion, the HR professional should be able to manage the staff selection, recruitment, training, development, career planning, performance management, succession planning, and retention exercises. He or she is responsible for determining the firm's long-term human resources needs, assessing current resources, and determining areas where change is needed. He or she should determine whether human resources needs can be sourced internally or externally. The HR professional is to conduct training needs assessments and determine the type of training that will benefit the staff and organization. The HR professional manages and carries out career management in a way that aligns the employees’ dreams with the organization's requirements.

The HR expert is also expected to carry out performance appraisal exercises to determine staff performances in their present responsibilities; he or she determines those that will be rewarded, promoted, demoted, and recognized. As an employee champion, he or she should be involved in handling grievances and disciplinary issues in the firm. The HR professional is to handle all employee related matters like leave issues, medicals, pension matters, housing, and general welfare issues.

Hr as change agents

HR strategy can play an important role in helping organizations achieve change. HR has always been central to organizations, to-day it has taken on an even more central role in building a firm's competitive advantage. Success increasingly depends on "people- embodied know-how". Thus, includes the knowledge, skills, and abilities imbedded in an organization's member. In fact, the key to a firm's

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success is based on establishing a set of core competencies - integrated knowledge sets within an organization that distinguishes it from its competitors and deliver values to customers. Globalised economy has resulted in new business concerns, where future and success depends on how well change is managed. The dynamic of change becomes one of the central facets of any business where the role, function and process of HR must be redefined in the context of change. HR Strategies and practices explain how to manage the transition smoothly, rapidly and successfully and make the organization competitive always. Competitiveness is the best parameter which determines the survival of enterprises and organizational excellence in this scenario.

In absence of organizational change management, organization as a whole may find mere sustenance of existence difficult. Change in organisations covers a vast field of business activity, generally aimed at improving performance and productivity through growth, innovation and skills development; through shifts in assets, resources or market shares, or a combination of more changes. HR managers can look to bring about change in the organizational structure by Lewin’s three steps of organizational change: unfreeze, change, and refreeze. Unfreezing is related to creating willingness and motivation for change through anticipating the future and analyzing the possibilities of change, change means seeing things differently and acting to move toward a more desired state, and refreezing establishes new ways to affirm the change and secure the new desired structure.

For any organization looking to bring about culture of change, Human Resources Department is best placed to bring in employee management, engagement, motivation and commitment. Hence, HR managers have the strategic ability to be the change agent for successful organizations by incorporating change in its own functioning, developing change leaders in organization, anticipating resistance, planning accordingly to develop sustainable change culture and bringing in change in organizational structure.

Why HR as a Change Agent?

HR professionals help turn what we know into what we do by bringing the discipline of a change checklist to any project or initiative. Pilots, surgeons, merger specialists and fast-food restaurant managers find that the discipline of a checklist increases performance. An HR professional may regularly perform change audits by making sure that the key elements of successful change are diagnosed and implemented in a disciplined way.

When HR professionals are change agents within an organization, they can diagnose what investments should be made to make change happen. In many cases, this diagnostic can identify where not to invest change resources, since that one particular discipline is already sufficient for change, while other

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disciplines are in short supply.

In one case, the first three dimensions (leadership, need and vision) scored high, but decision protocols and institutionalizing the change scored low. This team did not need to spend more time on discussing why the change should occur or what the outcome of the change was, but on how to make it happen. In another case, leaders scored high on the change disciplines, but employees did not. HR professionals who do a change checklist should make sure that knowledge about change is turned into action that delivers change.

In organizations, HR professionals help make change a way of life by seeing that it becomes assimilated into how work is done. Change is not something that happens in a workshop, team meeting or process review, but occurs naturally and continuously during all work activities.

Creating a mind-set of change means that HR professionals model and encourage leaders to constantly learn, unlearn, improve and accept the inevitability of change.

A pattern means that a new culture is created. We have found that organizations are more likely to change their culture when they begin the culture discussion by focusing on customers outside the company and what the company wants to be known for by their best customers. The changes employees and organizations make inside can and should be clearly and directly linked to the expectations of customers. Change is not an idle hazing meant to distract employees, but a means of serving customers. When inside change links to external expectations, HR programs (staffing, training, compensation, communication) and leader behaviours occur because they deliver value to the marketplace. HR professionals who ensure that internal changes are linked to external expectations see change less as an event and more as a pattern or culture.

In our research on competencies for successful HR professionals as change agents, the ability to manage change and be a cultural steward/hostess were among the most critical differentiators for an effective HR professional. Change happens and it matters.

Personal views:

Of all the departments in an organisation, the only department that does not generate profits directly to the company, yet plays with figures of the men who bring in the money to the company is the HR department. In an organisation, the silent witness, the strong supporter, serious consultants, sure backbone, sensory organs, smiling faces, stylish work desks are owned by the HR personnel. To believe, to drive, to challenge, to update, to upgrade, to recruit, to restructure, to train, to storm brain, an HR personnel is behind and in the front stage. Feeling of having earned extraordinary profits to the company is realised when that extra kitty from Santa is banked in the employee’s basket. Having to promote and appreciate, to explain and motivate, a parent who is running alongside kids to make both ends meet, an HR professional, if not them, who else would fit right

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in being a change agent to drive organisational excellence?

When the men go street smart during the day, HR professionals go mind smart in watching the employee’s behaviour round the clock. Having to align each being with the culture, to keep up the feeling of oneness with each one of them, to own the brand and be ambassadors to eyes that watch the markets, make HR professional’s days’ a lane to cherish.

An HR professional who acts as a change agent would play a key role in improv-ing work processes and in designing and implementing working conditions of the future. Their work goes far beyond transactional and administrative tasks – They are the agents of transformation and change, they are trusted partners of teams and design the company of tomorrow together with functional leaders and em-ployees. Thus in this literature, we have externally recognized HR as market leaders, the ultimate Change Agents.

HR is a great place to learn and work for people passionate about enabling the business performance. They people who want to make the difference by applying business knowledge to design a framework that enables businesses, organizations and people to be at their very best and to bring purpose to life.

Recommendations:

Being the Change Agent, HR shares the responsibility for strategizing and plan-ning the change management program. They should be the one who would spread a positive message about the coming change. They should be the ones to clear all doubts of the employees. They should answer the questions like why change is happening, what are the risks of not changing, why change is happening now, etc. They should also in-form employees about the personal impacts of the change - how will this change impact their day-to-day work, how will it impact their group. But the real scen-ario is quite different. Employees do not want to hear from HR, or a communica-tions specialist, or the project leader or the change management consultant. They want to hear from someone at the top and the person they report to. So, the re-sponsibility of HR is to enable themselves as the preferred senders to deliver these messages. They can segment the audience, create talking points, build presentations and even schedule communication events, but the messages should be delivered by the Main Change Agent.

The primary task of HR as change agent in this environment is to:

assess the organization's change readiness

develop a change management strategy

identify and prepare the change management resources

assess and prepare executive sponsors

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create and manage the change management plans

audit compliance and design methods to reinforce the change in the organi-zation including activities to celebrate success

Thus these vital competencies are necessary for an HR professional. They should not only be the change drivers, motivators and messengers but also they should be business focused, so as to be a well integrated strategic partner in building the organizational excellence.

The Requisite abilities would be that they should keep the employees engaged by keeping energy levels high, develop strategies to retain top performers, and con-tinue to provide value-added services to employees such that diagnose problems coming between the transition of transformation.

“HR should be the change designer, Change Facilitator, Change Demonstrator, Change Architect and Change Champion in his own way.”

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