Abstract
Every organization is bound to undergo change in the course of its existence. Integrating these changes effectively ensures the smooth implementation of change. The insurance firm in this case has not prepared its workforce properly for the ongoing changes. Failure to engage workers in the change process has resulted in high staff turnover. Workers are not identifying with the new management in place, with majority of the workers feeling disillusioned due to the new rules and practices that have been put in place by the new management.
It is advisable for the insurance company to consider engaging workers in the change process. A solid team will be created if workers are allowed to contribute in the change process by giving their views. The change process should also be left in the hands of an able team to provide guidance. All stakeholders must be involved in decision making in the insurance company.
Change Management Case Study: The Rubber Chicken
Facts
The insurance company is undergoing restructuring whereby it is phasing out some of its traditional systems and operations and adopting new ones. The new changes being implemented, however, are being done without prior efforts to prepare the workers. The insurance firm has overlooked the basic principles of change management. These principles include thoughtful planning, involvement and consultation with the people going to be affected by the changes, as well as sensitive implementation.
Workers are not conversant with the new management at their place of work. A majority of them are getting disillusioned because the new management has come up with new rules and practices. For women workers, the changes in management are portending more challenges because the manager seems to lack any skills in managing women.
He is managing two districts now, but his original district does not have any women workers. This is raising concerns among the female workers because unlike their former district manager, the new officer in charge is not ready to listen to his workers and discuss issues in order to reach a conclusive solution.
The new manager has a tendency of dismissing his subordinates. According to the manager, it is acceptable to break ethical standards for as long as the company is doing business and making money. The manager goes ahead to mock his subordinates’ nationality by making fun of the Chinese and their lack of understanding of the English language. The company ends up losing its sales representatives to other rival companies, with all the women representatives quitting the company.
Range of Problems
Lack of consultation with workers
The management has decided to implement changes due to the manner in which the firm is being run. However, there has been no effort to involve the workers in the changes being implemented (Bolcas & Badea, 2010). This is a problem to the firm because the workers are interpreting the new changes to mean the firm is forcing them to change, rather than seeking to involve them both through consultations with the workers and through involvement.
The management is adamant that there are changes in the industry and that the workers have no choice other than accept to implement the changes as well. There is no effort being made to prepare the workers for the imminent change. It is prudent to include the workers as part of the new plans because they will be involved directly in executing the new roles that shall be established.
Inadequate management
The company is intending to cut down on its cost of operations as it goes on with its plans to implement changes. Part of the cost-cutting plans has involved using one manager to man two different districts, as opposed to the previous arrangement where each district was under one manager.
This is resulting in poor control, planning, directing, and coordination of roles within the districts (Karp & Helgø, 2009). More workers are feeling disillusioned by this new set up and have to take more time than usual in order to get appointments with their immediate supervisors.
The little understanding between the workers and their manager also heightens the inadequate management (Karp & Helgø, 2009). While the workers were used to their former manager and had formed close working-relations that enhanced productivity, the same cannot be said of the new manager and his subordinates.
The female workers feel that he has no skills to handle them properly, and particularly point at the lack of female sales representatives in his original team as an indicator that the new manager will not succeed in handling them.
High turnover rates
The firm is increasingly losing its workforce mainly to rival firms, with a few other individuals opting to go back to school to further their education. The high turnover rate is being caused by disappointments among the workers over their new working environment. Workers feel they no longer have the same motivation that they used to have before the implementation of the new changes began. They no longer feel challenged to commit themselves and work for their own good and that of their company (Linhartová, 2012).
This is a big problem because as the workers leave for other insurance companies, they take away the experience and expertise that they have build in this company for a long time. They also leave with secrets about the company that they will use against their former employer as they begin working for other insurance companies. In other words, the firm may not manage to put up with the competition that their rivals will give them as they acquire these former employees.
Analysis
After the greetings, the sales representative indicates to her manager that something is bothering her, which relates to the internal happenings at the firm. The manager does not show any concern to try and understand what the matter could be and probably work it out.
Instead, he informs the worker that there are ongoing changes in the industry that she will have to contend with whether she likes it or not. This shows lack of problem solving skills on the part of the manager. He does not know how to handle arising issues in the organization and, therefore, opts to put off his subordinate.
The manager rubbishes the feelings of the sales representative concerning her being disillusioned and the fact that she was thinking about taking some time off. Instead of the manager showing interest to help the worker by offering to solve her problem, he informs her about the industry’s brightening prospect. He also points out the situation of a different colleague, Mick, whom he quickly reminds the sales representative that he is performing well.
Attempts by the worker to inform her manager about the unethical practice that Mick has been involving himself in do not seem to bother the manager. He asserts that what is more important is to ensure the company was doing business without necessarily considering the aspect of ethics. This is a poor manager because he needs to be the role model to his subordinates, but he chooses not become one.
The manager also talks down and belittles the sales representative through the discussion. Firstly, he argues whether the worker’s decision to seek some time off is genuinely raised by the sales representative or she is being pushed by her husband.
Through his action, the manager seems to suggest that women generally lack the ability to make conclusive decisions about themselves, unless when they are pushed to make such decisions by other forces. This is wrong for a manager because it demotivates the worker rather than giving her the encouragement that she needs.
The manager also shows lack of management skills when he brings up the discussions about China and her people. He asserts that Chinese are generally difficult to deal with and that they are particularly poor in speaking and understanding English. Given that the worker is a Chinese, the manager was indirectly referring to her when he said that people from China are difficult to understand issues. This is poor management because it shows lack of respect for subordinates.
The manager is not ready to listen to any idea that conflicts with his, thus he considers any such worker as being dumb. Management must uphold respect for all because subordinates are human beings and they are entitled to their own independent views. Instead of castigating them in bad light, the right procedure should be to seek ways of winning back their support and commitment towards achieving the organizational objectives.
Range of Solutions
The insurance firm must consider all the important approaches and steps in order to change the situation currently facing it. Firstly, it must work towards increasing urgency in the change management and implementation. Workers must be inspired to move through making real and relevant objectives.
The guiding team must be built to lead the change management and its consequent implementation. The composition of the guiding team should involve people with the correct emotional commitment and the right mix of skills. This should mainly include the managers and supervisors who will directly be in charge of the workers as they execute their roles.
Formulating the right vision that will act as the guiding visualization in implementing the changes is another solution. The guiding team should be left to work out this and establish the strategy that will be used to achieve the vision. In addition, the team should focus on other important aspects such as emotions and creativity. These are critical in driving service and efficiency (Peccei, Giangreco & Sebastiano, 2011).
Communication must be integrated as a critical aspect of the strategy. The main idea is to involve people across board and communicate to them what the essentials of the change program and its implementation are. The communication should be used as a means of responding to the needs of the people (Reid & Hickman, 2002).
The organization must empower action by ensuring that it eliminates all existing obstacles while enabling constructive feedback from all the involved quarters. Support from leaders needs to be solicited all the time to determine whether the whole change program and implementation is being maintained appropriately (Scott, 2007). Progress and achievements should be recognized and rewarded in order to motivate the participants continuously.
Recommendations
The company should involve its workers as part of the important stakeholders in its change management program. The suggestions and views of workers must be considered and where possible integrated in the program to enhance its effectiveness.
This will make the workers to feel as though they are part of the organization, thus driving their motivation and zeal to perform even better. A team should be formulated by the management mainly comprising of managers and supervisors, whose main responsibility should be to guide the whole change management process and coordinate the related activities.
In picking the team, skills should be given priority to avoid selecting managers with the wrong attitude and commitment towards the new changes. This will ensure that the individuals who are guiding the process have the right outlook of the process. The team members should be able to handle workers and give them the right support, while making efforts to ensure that the whole program ends up being a success.
Any decisions, actions, and plans must constantly be communicated to the stakeholders. Workers must know what the organization is undergoing and the plans that are being scheduled for implementation. All the managers should equally be briefed about the same so that the whole change program can encompass their contributions. This is critical because none of the stakeholders should look at the whole program as something being forced down on them without their sanctioning.
Conclusion
All organizations undergo changes at some point in their existence. These changes must be integrated carefully during their implementation in order to ensure that the organization succeeds in achieving its end objectives.
Although the insurance firm has determined the need to change its system and implement a new strategy of operation, it has failed to put the right preparations and control in place. The management does not involve workers in the plan, while the new district manager lacks the right skills to handle his subordinates as part of the implementation. Workers are disillusioned and quit the firm for rival insurance companies following the management’s failure to consider their concerns and apply professionalism in handling the change.
References
Bolcas, C. C., & Badea, F. F. (2010). Managerial change inside organisations. Bulletin of the Transilvania University of Brasov. Series V: Economic Sciences, 3109-3116.
Karp, T., & Helgø, T. (2009). Reality revisited: leading people in chaotic change. Journal of Management Development, 28(2), 81-93
Linhartová, L. (2011). Organisational perception of employee turnover. Scientific Papers of the University of Pardubice. Series D, Faculty of Economics & Administration, 16(22), 121-133
Peccei, R., Giangreco, A., & Sebastiano, A. (2011). The role of organisational commitment in the analysis of resistance to change. Personnel Review, 40(2), 185-204
Reid, B., & Hickman, P. (2002). Are housing organisations becoming learning organisations? Some lessons from the management of tenant participation. Housing Studies, 17(6), 895-918