We buy companies to get excellent people’ - Mark Zuckerberg (2010)
Any leader may be faced with developing strategies to respond to organisational change, or he or she may have the opportunity to promote and lead an organisational change initiative.
Some types of significant structural change, such as those brought on by restructuring, mergers, and acquisitions, or downsizing, hold both challenges and opportunities. ‘We buy companies to get excellent people’ said Mark Zuckerberg in 2010 to sum up Facebook’s acquisition strategy (Goldberg & Lobb, 2012, p.2).
Organisational growth, talent management and business performance can all be enhanced through change initiatives and can present a real opportunity for HR to add value; at the same time, not all staff may experience these changes as positive.
For this Assignment, you will examine the role of the HR professional in planning for and managing change.
Read the Required Learning Resources.
Think of an organization in which you’ve worked (Royal bank of Canada only), or which you know well, which has gone through a significant structural or other type of organisational change. Consider what the implications of these changes were, or might have been, for the HR leader(s) of the organization.
Complete the following:
Analyze the role of the HR leader(s) in the organizational change example you chose. In your analysis, connect concepts from your readings about organizational change and HRM to your experiences and observations.
In formulating your assignment, consider the following questions:
What did the HR leader(s) do to lead and/or manage the organisational change?
How do the HRM approaches used to address the change reflect theories, models or other thinking about the role of HRM in organisational change from your readings? How do they diverge from ideas evident in your readings?
The report aims at providing an insight into leading and managing organizational change in Royal Bank of Canada (rbc.com 2018). The bank brings about an organizational change for better talent management, organizational growth and the business performance thereby providing a real opportunity for the Human Resource (HR) professionals for adding value. The report discusses the role of the HR managers in leading and managing organizational change. The report also provides an insight into the theories and model of HRM that helps in reflecting the change.
Role of HR in Leading and Managing Organizational Change
The role of HR in managing and leading organizational change is as follows (Battilana and Casciaro 2012):
Role of the Watchdog:
The human resource department plays a key role in the re-thinking of the organizational design for bringing about a change and facilitating implementation of the newer process. In doing this, the HR not only guarantees the cultural integrity but also makes sure that the process is harmonious and coherent.
Establishing Change Agenda:
The human resource not only recommends a calendar but also defines milestones in reaching both the employees and the organization through time. Business transformation is a time consuming factor and results in costly failure when rushed. The HR plays an integral role in implementing the changes slowly so that the employees adhere to it.
- In Anticipation of the Emotional Roadblocks: Change is not an easy task so it is vital for anticipating the negative reaction of the manager and the employees as far as possible in order to ensure that they adhere to the change process.
- In Training Managers: The HR ensures training and accompanies the managers in becoming better change agents. The HR professionals provide them with a purpose and meaning for engaging in business transformation.
- In Proposing the Adapted Solutions: HR proposes enough solutions to each of the situations of change taking place with the organization.
Approaches of HRM for Addressing Change that Reflects Theories and Models of HRM
Ethical Approach: The ethical approach of HRM makes the HR professionals acquainted with certain norm and the staff qualities through orientation, induction and various problems in the Royal Bank of Canada (Boxall and Purcell 2011). This approach designates the normative theory of the HRM thereby implying a self-guided force within the operation. Divergence in such ideas is possible when implementation of work ethics, manners and behavioral qualities do not contribute in managing the human resource in Royal Bank of Canada.
Stakeholder Approach: Stakeholders of Royal Bank of Canada represents the organizations and the people possessing the legitimate interest with obligation in various activities and functions be it the employees, authorities, well wishers, shareholders, customers and the outside contributors like the suppliers and donors. The ideology of the approach represented the collaborative theory of the HRM. Divergence is only possible if the shareholders and customers are not considered as the stakeholders of the organization.
Contingency Theory: According to Armstrong (2006), the way the Royal Bank of Canada manages the human resource and adapts to the recurrent changes and trends in economic, social and political situations along with emerging technologies relates to the contingency theory. The theory is about the need for achieving the best between organizational want, performance and the way it is structured. Divergence is only possible when the organization is unable to adapt to the changes.
On a concluding note it can said that transformation or conduction of change of an organization like Royal Bank of Canada is necessary for undertaking process evolve thereby helping in gaining competitive advantage.
Armstrong, M. 2006. A handbook of human resource management practice; Human resource strategy and the dynamics of industry-based competition’ 3rd ed. London: Kogan Page, pp.337-358.
Battilana, J. and Casciaro, T. 2012. Change agents, networks, and institutions: a contingency theory of organizational change. Academy of Management Journal, 55(2), pp.381-398.
Boxall, P. and Purcell, J. 2011. Human resource strategy and the dynamics of industry-based competition. 3rd ed. London: Palgrave, pp.257-280.
Lengnick-Hall, C., Beck, T. and Lengnick-Hall, M. (2011). Developing a capacity for organisational resilience through strategic human resource management’. Human Resource Management Review, 21(3), pp.243-255.
rbc.com 2018. [online] Available at: https://www.rbc.com/about-rbc.html [Accessed 8 Dec. 2018].