Index1. Introduction 2. Steps in the process Step 1.0 Identification of Organisational Change 3. Appendices 8.0 Flow Chart Organisational Change Guidelines Organisational change is defined as change that has significant effects on the way work is performed by University staff. Organisational change may be apparent when there is a gap between how the work area is operating and how it should be operating to ensure successful future growth. 1 Organisational change may be a result of the work area identifying goals that they want to be achieving. 2 The University places high importance on ensuring that organisational change, when required, is implemented in a timely and professional manner. A key reference in the University’s Operational Priorities Plan identifies the following operational objective: “to retain the best-quality staff”. This objective is the one of the goals of an effective organisational change process. The University considers that where organisational change is implemented correctly the benefits include:
It is imperative that the work area understands that organisational change is about allowing employees to influence the decision maker through a consultative process. These guidelines aim to assist and guide work areas in the implementation of organisational change. The followings steps have been developed to assist in the implementation of organisational change to ensure long-term benefits to the relevant work area, while at the same time minimising any negative impact on employees. These guidelines are not definitive as it is recognised that organisational change has unique characteristics and requirements for the future which can be different for each work area. For the purposes of these guidelines the term ‘work area’ refers to a Faculty, School, Centre, Department of administrative section within the University. It is University policy that the work area contacts Employee Relations and Management Services in Human Resources when considering organisational change. This ensures that the officer who provides the relevant assistance is available throughout the whole process. Employees may seek employee representation during the process. An employee representative means a person nominated by an employee to provide support and/or to make representations to the University on their behalf, and who is not currently a practising solicitor or barrister. These guidelines are offered as a guide only and they are the preferred process for managing organisational change. The University reserves its right to implement change outside of this process where required or deemed appropriate.
Step 1.0 Identification of Organisational Change
The work area may recognise that organisational change may need to take place, at which time the work area needs to notify ERMS. The work area needs to commence discussions with the employees at this preliminary stage for any organisational change identified, seeking the employees thoughts. Indicators for organisational change may include, but are not limited to, a drop in student demand for taking course/unit, shortfall in skills and/or resources, uncompleted goals, labour costs, budget, technological, economical, new structure and globalisation. 3
Step 2.0 Determination of Significant Effects
Once organisational change is identified the work area needs to determine whether the change will have significant effects on employees. Significant effects may be defined as organisational change that is likely to affect existing practices, working conditions or employment prospects of University employees. ‘Significant effects’ may include, but is not limited to, the following:
Some changes in the nature of work may not fall into the definition of significant effect. Where Staff Collective Agreements (CAs) have provision for alterations to an employee’s contract of employment, the alterations shall not be deemed to have significant effects. An example of this may be a temporary change in the working hours that an employee is required to work. Where employees are in agreement that the changes do not have significant effects it may be possible to move to the implementation stage.
It is important that when a work area identifies what the likely significant effects will be, that the effects are documented to ensure the work area has a record. Documentation may include written notes, electronic documents, plans and drawings. All documentation should be kept in confidential University files and the necessary accessibility/security allocated to the relevant people.
Step 3.0 Documentation
The work area is responsible for developing a document that summarises the details of the proposed organisational change. The organisational change proposal document should include the following:
Step 4.0 First Meeting with the Employees
The work area needs to call a meeting with employees likely to be affected by the proposed change. Depending on the nature of the proposed change it may be necessary to invite all employees within the relevant work area. The employees are entitled to invite their employee representatives to attend the meeting and any future meetings. This meeting should be held at the earliest possible time after recognising a need for change. This meeting is important as it emphasises participation and communication and assists in minimising employees’ uncertainty. The purpose of this meeting is to outline the extent and nature of the proposed change, reasons for the change, the aim of the change and the proposed timeframe. Employees attending the meeting should receive a copy of the document developed by the work area in step 3.
During the first meeting, the work area needs to advise the employees that the information provided is only a proposal for possible organisational change and it is not definite. Where positions are identified in the proposal as surplus to requirements, employees in those positions should be assured that this does not necessarily mean that they themselves will be declared redundant as a result of implementing the proposed change. The employees need to be advised that this is their opportunity to listen to the organisational change proposal which they can take away and respond to. The employees also need to be advised that after they have considered the proposal they will have the opportunity to influence the decision maker with their suggestions and recommendations. If they choose, employees can ask questions, make comments and suggestions throughout this meeting, however, they are not required to.
In the first meeting, informing employees of the proposed changes and providing opportunities for them to participate in the change process are positive steps to alleviate some of the potentially negative reactions to change. In the meeting, employees should be encouraged to participate as this will give them a sense of ownership and involvement regarding the proposal to implement change. Participation reduces the fear of the unknown and leads to commitment. 5
After the first meeting, the work area needs to provide employees with adequate time to respond to the organisational change proposal. The amount of time needed should be discussed and agreed to in the meeting. Another meeting time should also be determined. If employees so choose, they can respond either verbally or in writing to the proposed change prior to the next scheduled meeting. This allows the work area to consider and understand the employees’ responses prior to the second meeting. The employees need to be encouraged to respond in a way with which they feel comfortable throughout the whole process. The work area should understand that the timeframe can vary; the employees may be apprehensive and may require more time to think and respond to the proposed change. In these circumstances the work area should be flexible and accommodating as much as practicable having regard for any operational capacities.
Step 5.0 Second Meeting with the Employees
The work area needs to make a time to hold the second meeting with employees to discuss their feedback on the proposed organisational change. During the second meeting the employees need to be given the opportunity to express their views and/or concerns on the proposed changes. The work area needs to discuss any responses received from the employees during this meeting. Where the employees’ concerns can not be satisfactorily addressed during the second meeting, further meetings may need to be scheduled.
It is important for the work area to actively listen to and consider the employees’ feedback as it is critical to performance improvement, innovation and the acceptance of change. 6 Giving due consideration to the employees feedback guarantees that the work area is ensuring procedural fairness and also allows the work area to make a better informed final decision. 7
The work area in the second meeting needs to advise the employees that they welcome all feedback and will take it into consideration. Prior to concluding the second meeting, the work area should be able to set a tentative date by which they hope to make their final decision. The work area needs to explain that they will review their initial proposal for change in line with the employees’ feedback and will on this basis make a decision which will be advised to employee/s on an agreed date. The final decision needs to be announced in a scheduled meeting with the affected employees. Where appropriate, the work area needs to pursue discussions with individuals affected in order to either reach agreement or to mitigate the effects.
Step 6.0 Making a Decision
This is now the time for the work area to review their initial change proposal, keeping in mind the feedback received from the employees. The work area may find that based on the feedback received from the employees that their initial change proposal is not necessary, requires further developing or amendment. The work area may however decide to implement their initial change proposal.
Once a final decision has been made the work area is to advise employees of their final decision in writing and in a third meeting if necessary.
Step 7.0 Third Meeting with the Employees
If the work area decides to implement the proposed organisational change a third meeting is recommended. Similar to the meetings outlined in steps 4 & 5, the work area needs to advise employees that organisational change will be implemented. The work area must also advise the employees affected of the following:
The above information needs to be put in writing and given to employees so that they have a written record of the change. The work area needs to ensure that it provides the employees with accurate information which minimises surprises. The fear of the unknown is a major cause of employee resistance and a contributing factor to the break down of trust. 8 Deal with the bad news as well as the good. Often only the good news is communicated, but the bad news is equally as important as it allows the employees to know where they stand and assists in maintaining trust. 9
When the work area decides to implement organisational change there may be several outcomes. Some of these outcomes may include:
It is important that the work area advises employees of the above outcome relevant to them as a result of implementing the change. In the third meeting, the work area should advise employees both verbally and in writing of the outcome. Employees will have many questions about the outcome and effect on themselves and their position. These questions are best answered by an ERMS Officer; the work area should advise employees to contact them at any time. Foot notes 1 Stone, R.J, 2005, Human Resource Management, 5th Ed. John Wiley & Sons, Queensland. p589.
8.0 Flow Chart Steps
Examples:
9.0 Organisational Change Checklist
References Department Premier and Cabinet, Public Sector Management Division 2003, A Guide to Organisational Change Management, p3 Selden, B. 2006 Communicating Change, HR Monthly, May 2006, p34 Stewart D & Furlan N 2004 Managing Workplace Change, Human Resources, Issue 61, July, pp10-11
Stone, R.J, 2005, Human Resource Management, 5th Ed. John Wiley & Sons, Queensland. p589.
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