Organizations’ processes, programs, systems, operations, and projects are subject to change to improve the overall business performance. However, business leaders are obliged to formulate and implement change that beneficial to their enterprises. It is indispensable for them to embrace appropriate change management tools to avoid compromising organizational goals and objectives. Besides, entities are guided by particular goals and objectives which have to be attained in the short and long-run. Change and change and change management is a process that should be carefully planned, organized, and executed (Harrington, 2006). It entails the use of effective communication channels, incorporation of all layers of an organization, proper budgeting, and understanding of organization culture, and commitments. For this reason, it is necessary for change leaders to comprehend various theories and principles guiding change and change management processes for a successful transition. I would like to implement a change in Saudi investment bank relating to its human resource management practices as they are associated with business success. Additionally, human resource management practices affect all the stakeholders of the bank, including customers, executives, and all workers. Appropriate change and change management principles will help me to execute the change in Saudi Investment Bank.
Description of the change
In the next 12 months, I would like to change the bank’s human resource management practices which play an integral role in any business venture. Human resource practices relate to areas of hiring and retaining of employees and compensation and reward systems. It is worth mentioning that organizations have different compensation and rewards systems and hiring and retention procedures. What is more, workers react differently to such practices depending on their interests and those of their organizations. Saudi Investments Bank has been devoted to providing its employees with favorable working environments. Besides, workers are entitled to certain benefits, including health ones and certain paid and unpaid leaves. It is necessary understanding that most workers in the contemporary world have become aware of organization’s compensation and reward systems. As a result, they target bodies that have better human resource management practices. Studies indicate that poor human resource practices can jeopardize organizational success as they can lead to high employee turnover which is detrimental to business. Therefore, organizations should not underestimate such practices. Saudi Investment Bank cannot be exempted from the issues of employee dissatisfaction concerning compensation and reward systems and hiring and retention of workers. From that point of view, I feel that it is imperative to change its human resource management practices for a better future of the body.
Furthermore, the change will affect various stakeholders in the organization in all its layers. Besides, it involves altering workers wages, salaries, hiring procedures, and the overall budget of the organization and this touches all stakeholders. Saudi Investment Bank has been focusing on recruiting and retaining workers who come from Saudi Arabia. The same individuals are the ones who mostly fit in Islamic traditions. From a business perspective, it is imperative for organizations to have diversified workforces as that improves their performance. Therefore, I will implement policies that will produce a diversified workforce for the organization. Experts from other countries who are talented with financial knowledge and skills will be included in its workforce, irrespective of the regions cultural background. Furthermore, more women will be allowed to hold higher job positions which are currently male dominated. Most importantly, a performance-related pay system will be adopted to create a competitive work environment and enhance the overall performance of the Bank. It is crucial mentioning that most companies in today’s world are embracing performance-related pay as it connected to more benefits as compared to other reward and compensation plans. What is more, employees who have worked for the bank for more than five years will be entitled to specific benefits which will include, health insurance plans and paid leaves among others. Those who have worked for less than five years will not enjoy the benefits in full.
The change will help the organization to enhance its performance and effectively allocate its resources. For instance, it will encourage workers to put more efforts in their areas of expertise to enjoy certain benefits. Moreover, it will aid the bank in hiring and retaining talented and experienced employees regardless of their race, ethnicity, religion, traditions, gender, and nationality among other disparities. Principally, it will drive the institution to greater success.
Principles and theories of the change management approach
A change in an organization needs to be successfully and powerfully implemented through appropriate strategies and procedures. Various scholars have come up with a variety of models on how change can be implemented. Additionally, organizations embrace different ways of executing changes. Change and change management entails certain principles, theories, and, models, including the ones coined by John Kotter, a professor at Harvard Business School. Principally, it is fundamental for organizations to utilize right procedures for successful changes. The change I will implement will employ various concepts, mostly which were developed by John Kotter.
Before, implementing a change, it is important to set goals and objectives which reflect the mission and vision of an organization. Besides, they help change leaders to make appropriate decisions relating their intended transformations (Burnes, 2009). All stakeholders affected need to know why a change is needed (Jones, Aguirre, Calderone, 2004). For instance, the stakeholders of Saudi Investment Bank will have to be enlightened that the change will enhance the overall performance of the organization in various ways. It will help the body top hire and retain the most talented individuals, and that will enhance its productivity. Additionally, workers will be motivated to put more efforts in their jobs through a competitive working environment as performance-related pay will be incorporated into their organization.
Furthermore, according to Kotter’s model, it is essential for change leaders to form powerful coalitions or active teams which are dedicated to accomplishing the change. From that perspective, change leaders need to understand their employees concerning their competency in different areas that will be affected by transformations (Dawson, 2003). The process also involves identifying individuals who support the transition through working together to achieve common goals and objectives. The same involves creating urgency on the need for a change. Hence, the selected key leaders have to show others their commitment and appreciation for the change. Kotter indicates that around 75 percent of an organization has to support a transformation for it to be successful. For that reason, leaders have to convince their subordinates and other stakeholders to accept the change. Nonetheless, a successful change process cannot be achieved without teamwork and consensus regarding various issues affecting it. Creating a strong team is associated with successful change implementation process.
Moreover, it is imperative to communicate the vision of the change through proper communication channels. For a change to be accepted by many, it needs to be at their fingertips of the parties to be affected. Therefore, those responsible for the execution of a change are required to regularly inform all stakeholders about their anticipated plans. It is also crucial for them to address people opinions which will be raised during the process (Paton & McCalman, 2008). Besides, some will not be contented by the decisions made relating to the changes. Special meetings, memos, emails, newsletters, conferences, and social media platforms can be used to maintain contact with all parties involved and convince them to embrace changes.
What is more, it is important for change leaders to remove obstacles that hinder successful transition Harris et al, 2007). For instance, leaders need to identify individuals who resist changes and help them to realize their importance. Moreover, individuals should be motivated through rewards to encourage them accept and adjust to changes. Therefore, leaders should know that their main objective to deliver the change efficiently without compromising organization goals and objectives (Anderson & Ackerman-Anderson, 2010). They have to understand organizational structure, reward and compensation systems, job descriptions, and organizational culture among other issues to accomplish their mission. Most importantly, they need to be prepared for the worst as a change can be rejected if proper procedures are not in place regardless of its benefits (Van & Van Dick, 2009). Organizations can fail to deliver a change for underestimating crucial consideration regarding change and change management.
It is vital to build on the change and align it to corporate cultures. The values to be embraced have to reflect the vision of a change. In this view, all leaders in an organization should continue supporting the change which should be seen in the operations affected.
Change and change management can be a complicated process if appropriate tools are not utilized. Therefore, organizations must be conversant with every step they undertake throughout a transformation plan towards successful transformation (Spector, 2013). Change management requires individuals who are enthusiastic that they will attain their goals and objectives. From that perspective, I believe that my choice of strategies and implementation processes will significantly enhance the performance of the bank.
From a business perspective, organizations cannot succeed without goals and objectives. For that reason, I see the need for them concerning Saudi Investment Bank’s human resource management practices. The targets will be a driving force towards making appropriate decisions that do not compromise the organization’s vision and mission. Additionally, according to By (2005), change leaders who come up with smart goals are more likely to successfully transit their organizations as compared to those without them. The will efficiently focus on the main agendas. Furthermore, organizations cannot achieve their goals and objectives relating to changes without powerful teams that will execute different tasks. Besides, change and change management is not an individual task as it requires collective efforts (Reiß, 2012). Change leaders who try to implement as an individual ends up making mistakes that hinder effective transition. Therefore, I will identify key players in the organization who will help me transform the business. The individuals to be chosen will have to be devoted towards a smooth transition. When employees work together as a team, they are more likely to accomplish their goals (Self &Schraeder, 2009). It is worth noting that people are talented differently, thus working as teams help them to make sound decisions regarding issues that affect them and their companies.
Furthermore, the power of well-organized communication cannot be underrated in implementing a change in an organization. Information needs to flow from top management levels to bottom ones to ensure that all stakeholders are acquainted with a change at hand (Finch, 2011). Additionally, they need to be swayed to embrace it without unnecessary resistance. Change leaders, at the top management, need to lead by example to show other workers that a particular change is worthy and they are dedicated to accomplishing it (Cameron & Green, 2012). Most importantly, ensuring that my policies comply with legal regulation will support a smooth transition process (Goksoy, 2016). Besides, countries have rules and regulations that govern employment contracts. Moreover, altering the bank’s compensation and reward, and recruitment programs is a sensitive matter that can result in legal complaints. For that reason, employees will be educated about the new system and the benefits that will accrue from it. Within the span of 12 months, the plans will be incorporated into the bank’s systems. Regularly assessment and evaluation will help me and other stakeholders to determine whether the change will be worth or not.
I used such a procedure as it employs the principles of change and change management. Moreover, most organizations utilize Kotter as it understandable, simple, easy to implement. I also want all stakeholders involved in the transition process to comprehend how it will be conducted. Adopting obscure procedure can make the whole process seem impossible. The process at hand will produce positive results as has followed appropriate change and change management procedures
Organizations keep on changing their operations, programs, products, and projects among others towards enhancing performance. Therefore, right tools such as Kotter’s model can be utilized to effect a transformation. Saudi Investment Bank needs to change its human resource management practices in the future to better serve its stakeholders. Setting smart goals and objectives, effective communication, good leaders, and legal compliance are some of the factors that drive change implementation. All layers of an organization need to be included in a transition process for it to be successful. All in all, by following the correct principles and procedure of change and change management, I believe that I will successfully implement the change required in the bank.
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