CRITICAL THINKING REPORT
"Understanding the Impact of Organizational Change on Human Resources: The Roles, Processes and Challenges."
Given the accelerating rate of global-scale change, organizational change and development have become more critical to organization success and ultimate survival. This report includes comprehensive discussion on the impact of organizational change on human resources. The discussion involves the roles of human resources when formulating and implementing the various approaches during change processes as well as the challenges faced by organizations for continual change. The changes proposed in this report are mainly focus on enhancing people's commitment, motivation and inspiration due to the fact that the success of change more than ever depends on the people in organizations.
In a dynamic business environment, change is inevitable. Changing consumer lifestyles, technological breakthroughs, economic fluctuations, and high level of competition all act on the organizations to cause it to change. In order to survive in today's corporate world, organizations must have the capacity to adapt to changing condition. Thus, organizational change has become widespread in current global business environment. The purpose of this report is to illustrate the impact of organizational change on human resources. The discussion involves the HR function, various approaches to change and the challenges for effective change.
Organizational Change and Development
According to Brown and Harvey (2006, 3), organizational development comprises the long-range effort to improve an organization's ability to cope with change and its problem-solving and renewal processes through effective and collaborative management of organization culture. Organizational change develops the potential of individual members and achieves corporate excellence by integrating the desires of individuals with organizational goals.
Furthermore, organizational change stresses learning as a characteristic of an adaptive organization the ability to sense changes in signals from both internal and external environment and adapt accordingly. Organizations incorporate continuous learning into its renewal process to keep pace with changing industry conditions. Albert (2006, 17) and Karp (2004, 350) state that organizations can create a key source of competitive advantage by developing its capability to learn and change faster than its competitors. The scarcest resource in many organizations today is not financial capital but innovation from human talent. Thus, the ability to compete and excel in the global economy goes beyond commercial trading and flows of capital and investment. Given the accelerating rate of global-scale change, learning and adaptation have become increasingly critical to organization success and ultimate survival. The Roles of Human Resources
Organizational change attempts to increase productivity and effectiveness through invigorated employees who are able to develop creativity, imagination, and, above all, innovation. Managing change effectively can be a tough and complex challenge. Organizational change management requires leadership to function properly. Kotter (1995, 98) has acknowledged the formation of a guiding coalition as an important learning point from unsuccessful change initiatives. A recommended approach by Brown and Harvey (2006, 99) is a team consists of an external practitioner working directly with an internal practitioner to initiate and facilitate organizational change. The collaborative relationship between both practitioners provides an integration of abilities, skills, and resources. The external practitioners from outside the organization bring expertise, objectivity, and new insights to organization problems. In contrast, the internal practitioners often operate out of the human resources area. Lawler and Mohrman (2003) stress the significant role...
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