Profit from Change - Organizational Behaviour.

Troughs and crests are a part of the economic cycle, however sitting pretty on them is not easy...

Key learnings:

• Change is inevitable. The process begins with denial and hence when one indulges in denial , it is a hint of the impending change
• A successful change process is one that culminates in commitment from those subjected to change
  

The economic gloom has blanketed the global corporate landscape in totality. Pessimism and dejection dominate the corporate sentiment. The worker population is feeling more insecure than ever and is unwilling to see the positive side of the slump. Despite all the doom and gloom, corporate psychologists believe that there is a reason to cheer. While the sudden slump has caught people off guard, it has also ushered a new and fresher economic inning. The change, as is being said has arrived. And therefore the reaction of people is justified as change in any form first meets resistance.

The resistance one is witnessing is justified as things that people took for granted till very recently have become luxuries. Ever -increasing share prices, steady economy, better pay, and better benefits were the most obvious incentives for the worker population. However, benefits have been slashed suddenly, pay hikes have become a distant dream and job security has taken a beating. With the scenario not looking too promising, the worker population is becoming increasingly jittery and desperate. However, on the flipside is a reassurance that the scenario is better than what one has seen in the past . Jobs are intact. Careers may not flourish but survival is not an issue and things may not be down for long.

Despite the reassurance, there is no running away from the fact that change is extremely draining , especially emotionally. People feel threatened when they are forced to move out of comfort zones. Unwanted or forced change therefore results in certain definite behavioural patterns. People begin to behave in a certain given manner that reflects unwillingness to change. According to social psychologists change, especially forced change goes through four stages before it sets in the new system Each of these stages reflects a certain behavioural pattern that is found in people subjected to the change.

Process of change

Stage1-Refutation The first stage in the change process is that of refutation or denial. People subjected to change do not oppose the change but merely deny the need for it. For instance, when recession arrived leaders across the globe lived in the denial mode for some time. They refrained from declaring its arrival. They termed the slump as "just another phase" in the economic cycle and waited for the crisis to pass. However, the realisation dawned when the consequences began to have a snowball effect. It was declared that recession had in fact arrived.Thus, in case of an impending change, one must:

• Research data and information available and see for themselves if the change is real
• Break out of the comfort zone and seek solutions. Sitting and hoping for things to fall in place would not help much
  

Stage2-Resistance After overcoming denial, people find themselves resisting change. The resistance is not directed at the new ways of doing things.It however emerges from the fear of moving out of the established zone of comfort. Thus , to overcome resistance people should:

• Fragment change.
• Takinging small steps towards accepting change works well for people who fear venturing into uncharted territories
• Work with a positive frame of mind. Understand that if the change is coming from the leadership then it is well-thought of and sure to enhance performance in the long-term
  

Stage3-Self-experimentation The third stage of the change process underscores the act of exploration and self-experimentation by individuals subjected to change. This is a stage when people begin to choose parts of change that they believe could give them instant results. When people indulge in self-exploration , it is a sign of partial acceptance of change. They are perceived to be giving change "a chance" to prove itself, but on their terms. Thus, experimentation with components of change is a good sign for change leaders. To encourage exploration of new change , leaders should:

• Reward people who experiment with the components of change
• Encourage people to offer constructive criticism in the context of change
  

Stage 4-Commitment to change This stage spells success for the new change. At this stage change becomes an integral part of everyday life. People begin to see the new way as the only way of doing things. The old way is dumped and forgotten. However, at this stage leaders must guard against employees getting too complacent with change. They should push them continuously to experiment with newer and better ways of doing things.Brooding over change only lands one in a lose-lose scenario. The better way therefore, is to take change in the right spirit and profit from it!

Reference: TheManageMentor

Recruitment & Retention- Behavioural Interviews

Recruiting is a crucial task for any Human Resource department. Especially for the senior management positions, unless an appropriate succession planning is implemented, HR will need to screen a number of prospective candidates before short-listing the appropriate ones. Understanding a candidate's attitude and behaviour is very important, as it determines his approach to the organisation.

An interview is the only means of investigating and finding valuable information about a candidate. No other process of assessment can give a better insight than the interview process. An effective interview is a process of understanding the unspoken and requires the skill of deciphering verbal signs of deception to gain vital information. The best method of gaining information is when the prospect is unaware of the process, since the scope of tampering is minimal here.

A structured and methodical interview helps uncover the known and - obvious aspects of a prospect's personality. To gain deeper insight into the unknown and understand the candidate completely, HR relies on behavioural interviews.

Behavioural interviewing is a technique that uses a structured set of questions aimed and designed to determine a candidate's attitude. This interview technique is based on the paradigm that, when a person makes a conscious effort to act against his natural instinct to respond to the situation, an increased tension and anxiety is displayed. As connecting situations are posed, he loses control due to increased anxiety and fails to keep track of his answers, thus bringing out his true behaviour. More importantly the interviewer understands the body language of the candidate. Such a technique is particularly useful to determine if a candidate is editing information or fabricating responses. This technique of interviewing is generally applied while selecting candidates for crucial management positions in the organisation.

Ref: TheManageMentor

Looking Beyond ROI!

Organisations are increasingly investing in automating HR applications and employee self-service tools. These result in improved services and cost reduction. Organisations, now, recognise the benefits of business value for long-term.

HR departments have been focussing on saving costs on people and paper. With changing times, perspectives too have changed. Today, HR experts and practitioners believe that modern Human Resource Management systems (HRMS) have successfully reduced HR staff and improved their operational efficiency. Now, the focus is on better productivity and added business value.

Course of action

Automation of processes does not necessarily imply reduction in staff. It gives HR the scope to play a strategic role in business. HR now utilises tools that result in effective time management. To ensure a ‘positive business impact’ of investing in HR systems, its business plan should be based on

• What it is expected to achieve?
• Outcomes and efforts that would be recognised and rewarded by the organisation
• What employees must achieve to deliver these outcomes?
  

Business outcomes decide the use of technology to redesign processes.

Greater value addition

In most organisations HR doesn’t share the HRMS data with other departments. This is in order to maintain its confidentiality and control. Sharing the data can add great value to the business. It saves time and money. Hence, organisations must invest in such systems.

HRMS is the strategic approach to ROI (return on investment) that balances investments with returns expected. It reduces the risks involved. Thus helping HR gain greater credibility.

Ref: TheManageMentor.

Trust follows Communication

In the backdrop of corporate scandals regarding issues like greed, bankruptcy, dishonesty and ethical violations, employee trust in senior management is deteriorating. Plummeting trust signals impending disastrous corporate performance.

Addressing the issue
Trust is not necessarily a matter of what is legal or illegal. It is more a matter of how countless management decisions affect employees over a time.

HR’s role
HR’s efficiency is a key predictor of employee trust. Though the HR’s relationship is direct, it alone cannot build employee trust. Management ‘s backing is critical. HR focuses on two primary trust drivers: Communication and managing change.

HR at work

An efficient HR functioning is associated with high levels of trust and facilitates an organisational culture that infuses faith, loyalty, and confidence among employees.

Tips for HR:

Out in the open: Explain to employees the rationale for major decisions and the company’s performance.

Convey the advantage: Companies conveying the advantages, through issue of “total award statement” (that communicates an employee’s total value of compensation), enhances the degree of trust.

Employee inputs drive change: Employee attitude significantly influences the trust levels in an organisation. Eliciting employee input greatly improves an organisation’s work climate.

Sighting Business goals and roles: Employees of high trust organisations are provided a clear picture of organisation’s goals and their role towards achieving it.

Accountability: Organisations having high levels of trust not only reward high performers but also hold poor performers accountable.

An effective and efficient HR department ensures that employees have high levels of trust and ensure that the organisation maintains the credibility it possesses through communication, consistency, follow-through, respect and internal customer service.

Ref: TheManageMentor

Hidden store - HR practices

Managing Human Resources successfully is the toughest challenge organisations encounter. HR encompasses a sum total of human intelligence, skills, talents and knowledge. Organisations rely on these resources of employees for their prosperity and success.

Out of the door

Organisations often perceive employees as cost investments rather than a knowledge investment. However, employees invest their intelligence and skills in the organisation and if any of their expectations are not fulfilled, they decide to leave for a better place. The reasons for an exit could be low compensation, domestic problems or change in goals.

Research reveals that knowledge workers generally quit because of the organisation's inability to leverage employees' talents.

Saviour

The exit of the traits and skills of employees is a major concern of organisations. It creates a work gap. To fill-in this gap, organisations need employees with the same skill sets. 'Knowledge Management' comes to organisations' rescue here.

"Knowledge Management embodies organisational processes that seek synergistic combination of data and information processing capacity of information technologies, and the creative and innovative capacity of human beings ," said Yogesh Malhotra, CKO, Brint institute for Knowledge Management.

Hewlett Packard Laboratories has developed an employee directory of internal experts called Connex. It helps in locating subject experts.

Knowledge Management enables organisations to impart the required knowledge to the new recruits or the successors of the exiting employees. It facilitates the enhancement of capabilities and creativity of employees.

Fusion -New perspective

Exit interviews and Knowledge Management

Conventionally, HR used exit interviews as tools to strategise employee retention, ascertain job satisfaction and design reward strategies. Questionnaires reveal the reasons for leaving, comments on the work culture, job responsibilities and remarks of the employee. The information extracted is only about the organisation. But exit interviews may be used for 'determining the knowledge necessary for performing various tasks'.

The municipal authority of the city of Toronto for instance, employed an intern to develop its database. He developed it for forwarding invoices to all domestic animal owners of the city. The intern left on completion of his job.

The governing body faced problems. The permanent employees did not know the access and execution of the programme. The capital used to develop the database became a dead investment. The loss can be attributed to the absence of an exit interview. An exit interview would have enabled sharing of the information essential for the execution of the programme.

Knowledge management and knowledge sharing avert information gaps that result from employees exiting along with their expertise and ensure continuity of work.

Knowledge capture - the essence

Exit interviews must be designed to capture work knowledge. To encapsulate employees' work knowledge, the interview must be employee and organisational specific. It must satisfy the employee and the organisation. To capture knowledge organisations require:

Objective

The organisation should first determine the objective of interview. Its primary objective should be to enhance the employees' performance. Essentially, an exit interview should concentrate and highlight, 'what, how and why' of employees' work.

"The exit interview should focus on the achievements and performance of the employee. And we try to get insights about his learning, growth, reasons for leaving etc in the interview," said Joydeep Bose, then GM, (Corporate HR), Wipro.

MphasiS, the company that designs and builds IT architecture, applications and services, is one of the few companies where exit interviews are knowledge focussed. "It helps in identifying various training needs, opportunities for supervisory skill development and improving competitiveness. Besides, they identify legal issues and provide an excellent documentation process." said Vivek Dayal, Global head, Corporate Communications.

Issues related to compensation, communication, job satisfaction, employee morale, overall work environment and comfort level with technology provided form an important part of the interview. Employees' accomplishments, approach to work and working relationship with seniors and organisation are crucial to enhancing performance.

Plan

Exit interviews ought to be planned right from the inception of the organisation. It helps in handing over responsibilities and identifies the right employee to be entrusted with the job responsibilities of the departing employee. Consequently, an efficient employee replaces the exiting employee.

Input

Employees' inputs at handing over stage before leaving the organisations are the most significant. Organisations and concerned authorities must let them concentrate on dispensing and gathering their knowledge. This is the most productive period for the organisation as the knowledge is passed on to the successors. Exiting employees must not be coerced to finish pending works.

2-D of knowledge

Working knowledge can be segregated into-explicit and implicit knowledge. Explicit knowledge is the relevant material or content that employees use for routine work. Implicit knowledge is that which is hidden in the working pattern of the employee.

The interview should elicit the employee's explicit knowledge related to work.

Explicit knowledge

The material or content used during routine work may be manually written or compiled in folders in the employee's personal computer. These folders or files should be carefully transferred to the library or some secure destination of the organisation.

Helpful notes or educational tips may be appended to this information. This imparts better understanding and eases the new employee's workload.

Implicit knowledge

For implicit knowledge, organisations need to depute successors to the exiting employees prior to their departure. Capturing such knowledge needs regular interaction between the exiting employee and his successors.

Reviewing the important jobs performed by the employee is the first step. This reflects in their work plans or job descriptions. Discussing the working style and approach towards work of exiting employee is necessary. This may reveal the additional support required for perfect execution of the job.

Knowledge sources

Employees' work circuits are crucial information pools. Employees derive work knowledge from their peers and superiors. The interview should reveal these sources and their contribution. An organisation must maintain these learning relationships.

Model: questionnaire or e-mail?

Exit interviews are most effective when conducted face to face. Pre-formatted questionnaires are impersonal, exasperating and unproductive. In-person interviews help in understanding the mental, emotional and social concerns of the exiting employees better.

For effective and efficient interviews organisations need:

Interviewer: He is the soul of the interview. His skills determine the accomplishment of the interview's objectives. Outsourcing an interviewer is a viable option. Outsourced interviewers are trained and more objective and can understand and interpret the discussion with employees. Employees are more at ease to interact and part with their knowledge with an outsider.

Timing: For desired results interviews must be properly timed. The collection of information also should be timed. If the separation of the employee is not voluntary or employee is emotionally charged up at separation, the interview can be delayed. Postponement helps the employee settle down and brings out honest information. In regular cases exit interviews must be scheduled close to the separation date.

Atmosphere: An exit interview must be conducted in a congenial atmosphere. It must facilitate healthy interaction. This affects the employee's comfort levels and gives desired results.
Rapport: Organisations need to establish a 'parting relationship' with exiting employees. This is necessary as these employees might return, or the organisation might consider them for reemployment. Also the organisation may require the employees' services. Continuing relationships could help locate prospective recruits.

Follow-up: Follow-up has two tasks, documentation and analysis. Documentation is as important as the process. It aids and routes through the actual process of follow-up action. Analysis of the information gathered during the exit interview determines the necessary action to be taken. It gives a clear picture of on-the-job issues.
Invaluable

Employee input is in fact necessary at all stages of work. It ought not to be restricted to exit interviews only. Exit of employees cannot be anticipated. Thus, HR must encourage knowledge sharing and incorporate knowledge based exit interviews in the organisational culture and practices.

Effective exit interviews not only disclose employee related issues but also solve many business problems. They facilitate communication of employees' contributions to the organisation. Consequently, both employees and the organisation feel satisfied.

Organisations must realise the worth of their investment and the precautionary measures to be employed to retain invaluable knowledge workers and ensure profitability