Factors Which Can Lead To Failure Of A Successful Implementation Of The New HCM And Change Management System.. 5
PESTEL Analysis Of Environmental Factors Which Can Affect The Implementation. 6
SWOT Analysis. 8
Factors Which Can Lead To Successful Change In An Organization. 8
Models To Effective Organization Change. 9
MAIN RESEARCH.. 13
CONCLUSION.. 17
RECOMMENDATIONS. 18
REFERENCES. 20
LIST OF APPENDICES. 22
List of Abbreviations
HCM- Human Capital Management
HR – Human Resources
HRS GmbH - Hotel Reservation Service GmbH
Introduction
Companies keep transforming to the trends the world creates on a daily basis. Technological advancement is number one priority in every organization. This helps in time management on things which could have been otherwise done manually, orderly arrangement and systematic way of working and marching the quality organizations standards. Proper coordination is essential as it will bring all the interested parties together and make them aware of the new progress (Fotis and Gregoris 2006, p.51). Coordination starts at the highest level of an organization to the lowest level. When a new directive is to be enforced, communication is essential, and all the employees should be involved (Landsbergis, Cahill and Schnall 1999, p.108). They will feel motivated when they are incorporated in the new directives, and this will later transform into positive results. The changes to be made should occur in a gradual manner starting with the briefing of managers then the information can flow to the juniors (Mulcaster 2009, p.68) When the managers fail to show some leadership and managerial abilities on the implementation of new strategies, the employees lose trust and faith in them. When these happen, the company starts operating on shaky ground as most employees will not be happy with their work (Baum 1996, p.77). When the employees raise critical issues regarding some rules, and their superiors do not look at on them, they feel that their input is not necessary (Davis, Eisenhardt and Bingham 2009, p.413). There should be good relationships and partnerships in the organization. Companies that lack good integration techniques often suffer severely as the productivity will be low mistrusted among colleagues and long-term communication breakdown (Laudon and Laudon 2009, p.164).
Hotel Reservation Service (HRS Group) which deals with online booking for hotel rooms and other accommodations and holiday activities has been using the HCM system to ensure the service delivery is carried out smoothly (HRS Jobs 2018). However, this has proven inefficient and unreliable as it is not secure and does not provide accurate results. Due to the complexity of the work required, there is need to incorporate a more reliable method as the industry competes with other sectors which offer the same services across the world.
HRS Group Company
HRS Group is an abbreviation for Hotel Reservation Service Group. It provides for online booking of hotels, apartments for travellers and the business group. The main office is based in Cologne, Germany and it was founded in 1972 (HRS Jobs 2018). It has gone a great transformation and is now the leading hotel expert with a large number of hotels and holiday places around the entire world. It operates on three primary centres which include offering destination solutions for rental vacation homes, providing hotel solutions for many companies such as Google and it also offers booking services to end consumers for holiday rooms (HRS Jobs 2018).
Problem Statement
Since the HR department at the HRS Group is charged with the responsibility of making the necessary changes, it is forced with a task of convincing the employees on the need for a new system. The implementations have some risks associated with it since some employees always want to stick to the usual old method of doing things (Dobbin and Sutton 1998, p.396). Changes often bring different reactions which sometimes affect a business in a negative way (Baum and Oliver 1994, p.57). The possibility of the failure to implement the project has been seen as most employees complain of not being informed and not being trained on the new systems. The change management stands to lower the productivity due to the unhappy employees. The adoption of the new management is to enforce the new HCM software since the failure of the previous administrators in ensuring the HCM software works. Management will ensure the success of the new program and investigate the possible effects on the employees (Frank 1997, p.409). The functionalities of the new technology, the new management, and human factors are all essential factors in ensuring the project is a success (Casile and Davis-Blake 2002, p.180). The employee's input and concerns must be addressed before the implementation process begins (Dacin, Ventesca and Beal 1999, p.317).
Project Aim
This study seeks to address the concerns raised by employees relating to the new HCM system implementation. This will be carried out in interviews, one on one meeting with individual employees, monitoring their morale at work, organizing training for them and convincing them on the need for a new HCM software and change of management. It also seeks to find out other mechanisms which can be used by the organization to ensure better service delivery. It will also reveal the attitude of the employees towards the new system, and they will freely give their views. The research should be able to address the challenges associated with the new software and management change. After carrying out the investigations on the implications of the new system, it will provide recommendations which can be followed to address the menace. The successful implementation of the system will depend on the actions taken on the recommendations provided by the statistics of the research. The desired results will be achieved through interviews with the aggrieved parties, one to one conversation with the employees, questionnaires and group discussions with the members. This will ensure that the challenges associated with its implementation are addressed within a good timeframe other than implanting the project then it fails within a short time.
Research Approach
The problems raised above can be solved by finding the solutions to some of the essential pressing issues. There should be an investigation on the effects of the new system on the output of the employees, how long the transition should take, what special skills and dedication the new management should have to ensure the new HCM software works efficiently, what the end users must do to suit in the new system.
Research Questions
What are the key employee concerns to the implementation of the new HCM and change management system?
The following questions will be considered.
1. Which factors can lead to failure of a successful implementation of the new HCM and change management system?
2. What factors can cause positive changes in the organization?
3. Which models are useful in establishing the required changes within the organization?
Theoretical Framework
Which factors can lead to failure of a successful implementation of the new HCM system?
This research question helps to identify the current factors at HRS which makes it difficult to develop a proper change management system that can improve the firm’s performance. The focus is on the following factors:
a. Internal factors: Communication, outdated systems, employees dissatisfaction, and unsupportive environment.
b. Business environment (PESTEL analysis)
c. SWOT analysis
The tourism industry is a very engaged business set up which requires fast transition which will not affect much of its operations. The changes can affect it either positively or negatively. Many factors should be put into consideration when dealing with the change of management and new system incorporation (Sherer and Lee 2002, p.102). Some of the factors which can lead to the failure of the new system include; communication, lack of engagement, failure to pay attention to the grievances of the employees and failure to recognize the efforts of employees.
Poor Communication
This is the crucial part in every industry where all the directives have to be given by the supervisors and managers (Mulcaster 2009, p. 65). Communication should flow in the most organized way either through memos, emails, letters, mobile texts, and calls. Once there is no communication, the employees may lose focus and fail to take action on the urgent needs of the organization. The HR should engage everyone in implementation to harmonize any problem from the end users. The HRS management can enhance sharing of information with the employees during the implementation period through proper communication channels.
Environment for Expression
Employees perform best in a safe environment for work. When their interests are being put into consideration, they get motivated and ensure more productivity. A good employer should be able to address the needs of their employees since they contribute to the overall growth of the organization (DiMaggio 1986, p.355). They need to feel that the new management will take their interests at heart and enable them to grow as well. In this regard, RHS always focuses on creating a healthy environment, a factor that minimizes chances of the project failing.
Poor Management
When the executive fails to show their leadership roles, the productivity level will fall. According to Landsbergis, Cahill and Schnall (1999, p.133), tough decisions should always be made after much consultation to ensure everyone is comfortable with the new systems. The employees should be coughed and trained to make them realize their full potential. The workers who also feel their efforts aren’t being noticed often start to underperform. However, the good management and supportive leadership at HRS will ensure that all changes are implemented as per expectations of stakeholders.
Out-dated Systems
As noted by Baum (1996, p. 85), organizations should always focus on improving their operating systems to bring new ideas on board. The employees sometimes get bored by using the manual systems while they see different technologies being used in other places. Much time will be saved when up-to-date systems are put in place. There should be streamlined and automated processes to ensure there is much output. Therefore, HRS needs to upgrade its systems, especially the IT and communication infrastructure, which is currently not fit for implementing the changes.
Employee Dissatisfaction
When an employee is dissatisfied, there will generally be less production eventually. An employee should be satisfied first by giving them room for expressing themselves. A highly motivated person will prioritize the job given and complete it within the set target. Factors attributing to employee dissatisfaction which the organization should solve immediately include failure to involve all members in making decisions.
Other external factors which may affect the implementation process can be analysed using the PESTEL. PESTEL looks into the political, economic, socio-cultural and technological changes in the line of the industry. This tool can be used to foresee the possible future effects. Because a tourism sector can be affected by the nation’s mood, these factors must be adhered to.
PESTEL Analysis of Environmental Factors which Can Affect the Implementation
Some changes in the tourism business environment lead to profitable opportunities for the organization while some adversely affect the business environment. Some of these external factors are discussed in the PESTEL analysis below:
Political Factors
Politics affects the tourism industry directly. When the nation is subjected to the politicking mood, more visitors get scared hence take their holiday trips elsewhere. The political class can also decide to impose laws which may discourage tourism. In this case, HRS experiences a healthy political environment due to a high level of political stability. However, the growth of political stability makes it difficult for the business to penetrate into most of the markets.
Economic Factors
The sector contributes highly to the growth of a nation. The tourism industry is one of the most contributing factors to the economic growth. HRS is a leading firm; it can easily gain economies of scale, a key competitive advantage towards obtaining adequate capital for implementing the changes. However, with a poor economy, the company might experience a poor performance that could make it difficult to implement the project.
Socio-Cultural Factors
The industry provides its employees with a good oversight on how to interact and appreciate different cultures they come across when in the line of duty. Positive intercultural relationships could promote diversity in the workplace or among the company’s stakeholders (Davis, Eisenhardt and Bingham 2009, p. 420). As a result, they would support the implementation of the new changes. Currently, socio-cultural factors do not have a negative impact on the performance of HRS. The company can use this advantage to make the changes and use the new system to
Technology
Huge advancement has been made in this sector which has enabled the industry to grow well. Automation of the equipment makes the work easier and enjoyable as various operations and records are systematically. Every organization has to accept the technological change for better operations. HRS’ key threat is new technologies, which are sometimes challenging to install. Therefore, the company should monitor emerging technologies and identify the best measures for applying them when implementing the changes.
Environmental Factors
Climate change plays a significant role in the tourism industry. The environment must be friendly and sustainable for the activity. It should be in a secure environment where the employees and tourists’ health are not at risk. HRS could be easily affected by environmental changes, especially during winter since most customers could choose to shift to warmer regions. As a strategy, the firm should invest in all markets to cushion itself from uncertainties associated with climate change.
Legal Procedures
For the industry to operate, the necessary registration procedures have to be met. The industry must operate within the set laws by the government bodies. The employees are also supposed to adhere to the work ethics.
SWOT Analysis
SWOT investigats the strengths, weaknesses, opportunities, and threats to the business. The strengths are based on facts in that tourists always travel the world and the services will be needed. The weaknesses associated with the organization are also considered as tourists are always affected by the country’s instability. Opportunities involve the different age bracket and evaluate the possibilities of a different age group such as the aging to be the most travelers. Threats like terrorism and political unrests affect the business adversely as tourists ignore the unstable areas.
These factors can affect the tourism sector negatively or positively. They should be put into consideration whenever a new policy is to be put in place. However, some are factors which can easily be addressed and the normal operations of the business enabled.
Question 2: What factors can cause positive changes in the organization?
This question provides information on how positive changes can occur within the organization and the required conditions or supportive factors.
Training of the End Users
The employees who will be the end users of the new technology to be introduced must undergo training to be able to use the system smoothly. They should be alerted to any new changes within an organization, and their feedback is taken seriously. Whenever they raise issues either with the new system or with the new management, then there should be serious consultations and a new way out sort to address the challenge.
Communication
Since this is the only way in which an organization is run, efficient ways of reaching everyone with the information is needed. The ideas of everyone should be sought before decisions are made to ensure everyone is happy when the changes are affected. This is a challenge which can be addressed by the formation of a portal where all the employees can get all the information.
Question 3: Which models are effective in establishing the required changes within the organization?
This question provides knowledge on different models organizations in the hospitality industry can use to induce changes. Most service providers encounter similar challenges to HRS, hence answering this question will result into the acquisition of relevant data which can help the companies.
a. Lewin’s Change Management Model
b. Kotter’s Change Model
Lewin’s Change Management Model
The model offers some change management solutions, which can make the transition successful. It operates on unfreezing, changing and refreezing (Cummings and Worley 2014, p. 22). This addresses the challenges experienced by the employees who refuse change in an organization.
Unfreezing
This situation occurs happens when the employees start opposing the changes to be effected in an organization due to the fear of the unknown. They start fearing that the changes will render them jobless as some of them may be laid off, or the technology may replace their efforts. According to Cummings and Worley (2014, p. 22), fear often leads to resistance even when the change is for a good plan. This resistance can be removed through communication with everyone and explaining to them why the change is necessary and the long-term benefits, training employees and inclusive decision making.
Changing
After the training, the change is to be affected here as there will be highly motivated employees who feel they are part of the plan and are eager to start using the new process (Cummings and Worley 2014, p. 23).
Refreezing
The necessary changes are to be fully implemented here after monitoring the behavior of the trained individuals and how they adapt to the new system (Cummings and Worley 2014, p. 24). The information can be obtained from the feedbacks or observations on how the business is running.
Kotter’s Change Model
This model addresses the challenges experienced by the employees who refuse change in an organization. This change model was adopted to address eight key issues that lead to unsuccessful organizational change (Pollack and Pollack 2015, p. 51). The top senior individuals carry the responsibility that may lead the organization through a change. The eight steps in managing a change in an organization are;
Establishing a sense of urgency for change
The managers and the supervisors should explain the significance of the change they want to impose and its benefits (Pollack and Pollack 2015, p. 53). People will follow the advice and directive given to them provided they have seen the need for it.
Creating the guiding coalition
All employees from all departments should be assembled and told the developments leading to the change (Pollack and Pollack 2015, p. 54). A good change should occur with the knowledge of all employees regardless of your working station. Should only an individual of a department be informed and charged with the responsibility for change, the process may collapse before completion.
Establishment of a clear vision and a guiding strategy
Before making any important decision, a clear strategy should be put in place to ensure that everybody knows why the decisions are made at that particular time and the problems associated with the old method being abandoned. The stage is meant to give the employees a clear sight of the future with the new system in place (Pollack and Pollack 2015, p. 54).
Communication of the change vision
The new system’s benefits should be continuously shared with those affected and are still resistant to change. The change enforcers should be in a position to listen to the grievances raised by the affected parties and accept the feedback given by the employees regarding the change.
Empower broad-based action
The executive should evaluate the mechanisms put in place to ensure the new changes are affected (Pollack and Pollack 2015, p. 57). They should look into the possible setbacks to the plan and remove the obstacles at an early stage.
Create short-term wins
There should be some encouragement gifts and prizes awarded to hardworking employees to ensure that they remain motivated in their work. This should happen periodically to keep the employees happy and embrace the change.
Consolidate the gains and produce more change
The productivity of the workers should be investigated and use the result to foster desired change when the employees are still happy to embrace change.
Anchor new approaches in the culture
A culture of rewarding the hardworking members should be instilled (Pollack and Pollack 2015, p. 57). The new team should be able to perform better than the current team, and the culture should be practiced over time as it will make employees more hardworking.
Both the two models highlight the need to reduce resistance in an organization by the employees and the importance of communication and training before incorporating new fresh ideas. The management of an organization still bears the responsibility of ensuring the changes are effected in an appropriate manner and time. The strategy for enforcing the new changes should also be put, and future benefits explained to all the employees (Van de Ven and Garud 1989, p.195). Creating awareness to the employees and explaining the need for the change are the two main factors that a successful transitional change should put in place.
Main Research
The main research area was centred on the effects the new system on employees and the challenges it was associated with. From the research, it was found out that the employees were not consulted before the decisions about the management change were reached. They also felt not incorporated in the new system since they lacked the necessary basic skills to use the new HCM software. This greatly lowered their morale at work, and a new way to address the challenge had to be reached before the fall out within the organization. There were a series of interviews and meetings with the employees to look into possible solutions. The employees acknowledged the need for technological advancement but complained about miscommunication from their supervisors. The old HCM software that they were using had many challenges which affected their work as well. Once the new system was put in place, there would be more training and workshops and internet videos on the new software.
Some of the factors which led to resistance to change by the employees were highlighted and solutions sought. The factors included the following.
Misunderstanding on the Need for Change:
The employees did not have clear information on why the need was necessary hence they began to develop resistance. Some employees also wanted to stick to their usual way of doing things as they were afraid of learning new things. This was solved by agreement with the board to provide useful training (Rao, 2015).
Fear of the possible outcomes of the changes
Some employees always fear the unknown as they are not sure the responsibilities which may come with the changes including some layoffs when the system can work with a small group of people (Rao, 2015).
Too much attached to the old way
People always feel comfortable doing the things they have learned over time and perfected. When a new change is being introduced, they become afraid of losing their experience and starting to learn new things again.
Lack of trust for the new system
They often do not trust the new management coming on board due to the previous problems they have incurred due to similar changes.
Fear of being branded incompetent due to lack of knowledge on the use of the new system
The people who feel to lack the needed skills coming with the changes often resist the change as the system may no longer need their services (Rao, 2015).
Not being consulted
When the employee's input has not been sought, they tend to resist the changes since they don't feel part of the new plan (Rao, 2015). A good plan should bring everyone’s ideas before implementing it to accommodate everybody.
Fear of losing the job
The employees felt that the new systems might render some of them jobless as they don't get to know the aftermath of the implementation of the new system in place.
Poor flow of communication with the organization
When there is a communication breakdown in an organization, there will be resistance to processes brought on board by management (Rao, 2015). Good communication should be ensured to realize the necessary changes.
Routines change
People get bored when there is a new routine being introduced yet there is a common way they have are familiar with doing things. With much information to the workers, they always agree to the new system when their interests are put into consideration.
Lose of benefits and rewards
Employees often feel that changes always come with consequences and they fear the loss of some of the rewards they are used to receiving in their usual workstations.
Analysis of Questionnaires
From the questionnaires, all participants stated that the new system was very important for them. The participants then indicated that the materials they prefer to use when implementing the new system are a personal introduction, manuals, and face-to-face meetings. Then, they would like to acquire more information on the system through training videos and regular workshops and training. On preparation for success factors, the respondents noted that they would like to take 1-5 days before the system goes live. When asked on how to succeed with implementation of success factors at HRS, respondents indicated that they prefer to use system guides. Next, all aspects of success factors were very important to the participants. The challenges expected when using the new system are difficulties in taking care of new issues that may arise following the changes. Also, bad experience from previous organizational transformation could make it difficult to adapt to the new system. Then, majority of the respondents noted that HR Recruiting department had the mandate to implement all the success factors. Finally, the participants believed that the participants would take few weeks to adopt a new way of working following implementation of the changes.
Following these factors, the management agreed on that there will be more training for the employees hence all of them will be able to use the new system. Clear communication was made regarding the necessity of change and why was beneficial to the industry and the employees as well. The factors which led to the change of management included laxity of the previous management to steer the industry to the set vision and ensure profits, embezzlement of funds bestowed upon them to ensure day to day running of the activities, mistreatment of their juniors and the stagnation of the industry.
Conclusion
Poor communication is one of the factors which can lead to a failure in implementing a change in an organization. Communication ensures all the functions of the organization operate on the set rules and guidelines. The major factors that were contributing to the resistance to change by the employees majorly feared of the unknown due to fear of the job loss with the new system and management. This was tackled by assuring them that the new management was to ensure the new software to be used was successful as the previous implementers of the old system never ensured that it achieved the set targets. The resisters were engaged one by one, and their complaints looked into. The employees through training got the assurance that the new HCM system to be used was easy to use and not complex as they had imagined before. They agreed to be given much time to adopt the new software and see the possible benefits related to it. The new management was also introduced to the employees, and they got the opportunity to interact with them at a personal level. They were promised to continue enjoying their normal services, and their jobs were not at risk. This highly motivated the employees and they promised to double their efforts and realize the needed changes which would lead to the eventual growth of the industry.
Recommendations
After the implementation of the necessary changes in the organization, a few considerations had to be put in place. These included;
Frequent training and workshops regarding the new changes for the employees to be updated and feel part of the new system.
Communication between the managers and the employees should be enhanced as more communication avenues should be sought to ensure smooth flow of communication
The feedback from the employees should be taken seriously and actions taken on them since they are the end users of the new programs.
Those employees who are still opposed to the implementation plan are too engaged in a one on one conversation where they will freely share their ideas and why they are opposing the changes.
Provide a clear framework for the changes being imposed and the advantages over the old system. This should be able to motivate the employees when they finally find a system that will fasten their work other than threatening their duties.
Both formal and informal forms of communication should be deployed in the areas they prove effective. This includes group meetings, in-person meetings, calls, skype, memos, emails and phone messages.
The employees should be provided with an opportunity to give feedback on any difficulties they find with the new system. The feedback should be addressed to ensure ease when using the systems.
Seek professional advice from the industries which have managed to use the new system and be familiar with the challenges you are likely to experience. This will enable you t look for solutions before you are faced with the problem.
Gather information from the employees on the better ways of managing the new system and where they feel the changes should be affected. This will enable them freely express their interests which will be beneficial to the organization.
The HR should provide the employees with questionnaires on the necessary changes which may be needed in an organization.
There should be effective communication by the HR team as they create awareness to all the employees within the organization.
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