1. Running Head: Advanced OD Skills: Organization Interventions 1
OB475-1402B-01 Advanced OD Skills: Organization Interventions
Professor: Dr. Deborah Wheeler
Phase 5 Individual Project
By
LaTasha Hayes
Colorado Technical University
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Transformational Change in Organizations
Upon completion of my current degree program, I will begin a Master of Business
Administration with a specialization in Human Resources. Following, I may also pursue a PhD
in Human Resources Management with a focus on recruitment or training. This educational path
will allow me to have a successful career as a Human Resources Specialist. For the hypothetical
task of assisting a new employer with transformational change within his organization, I will
develop a plan for accomplishing this goal by analyzing how effective existing employees are,
and if necessary, replacing some employees with new hires who will fit into the goal of creating
transformational change within the organization. In order to do this, I will need to consider the
current state of the organization, as well as how this state will affect the organization in the
future if changes are not made. This will help determine precisely what changes need to be made
to better ensure future success as a productive and satisfactory workplace.
Stage 1: Employee Selection
Part of the transformational change process within an organization includes
selecting new employees who will fit into the plan for change. The company’s previous process
for selecting new employees may not have been effective in addressing the need for continued
success of the organization. Therefore, the employee selection process may need to be revisited
and adjusted to recruit candidates for employment who will complement the transformational
change plan. To do this, a meeting will be scheduled with the human resources department to
discuss current practices and methods used in the hiring process. It can then be determined if
certain methods are useful or will be detrimental to the transformational change process. New
practices and methods will then need to be developed and implemented.
Employee Selection Techniques
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There are a variety of employee selection techniques used by organizations during the
hiring process. Some of the most commonly used techniques include resume screening,
personality screening, interest screening, integrity and character screening, drug screening, and
psychological screening (Career Education Corporation, 2010). These techniques are used to
help companies determine which individuals will be the best fit for positions within an
organization. Typically, these techniques are useful, but on occasion, a specific technique may
not accurately determine the right individual to hire for a position. Companies may need to
examine which techniques work best for determining if an individual has the necessary traits,
qualities, or skills for a position and which do not.
For the purpose of implementing the transformational change plan for XYZ, Inc., new
employees will be considered to fill positions that will be needed in the change process. These
individuals will need to possess traits and skills essential to the purpose of accomplishing the
transformational change goals for the company. In order to determine which candidates will
support the company’s mission, the techniques that will be used to select new employees will be
resume screening, as well as personality screening. These two screening methods used together
will likely work best in developing a clear understanding of an individual’s qualifications, and
relativity to the transformational change needs of the organization. Resume screening provides
initial details regarding a candidates work history, education, skills, and any experience related to
the position (Career Education Corporation, 2010). The personality screening provides a more
in-depth analysis of an individual’s personality as opposed to just a face-to-face interview, where
candidates may appear charming (Weiss, 2007).
Use, Value, and Validity
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The use of resume and personality screening is common among employers. Using
screening tools such as resume screening and personality testing may help employers save
money during the hiring process. Companies suffer direct costs from behaviors such as
workplace theft, and indirect costs from issues like drug use, which may cause absenteeism and
sickness (Stabile, 2002). Stabile reports that “…the average cost of replacing a bad hire is 1.5
times the worker’s salary and benefits, meaning that it can cost $45,000 to replace someone
making $30,000 in salary and benefits” (2002). These are behaviors that could possibly be
foreseen through use of tools like personality testing and pre-employment drug testing. Though
resume screening and personality screening through testing are great tools for screening the type
of employees desired for a position, they are not foolproof systems. Candidates may lie,
embellish, or withhold information on resumes to make themselves appear more qualified than
they actually are. Candidates may also attempt to answer questions in a way that they believe the
employer wants them to, instead of being completely honest on a personality test, although
testers are able to determine this when scoring. Although these factors may affect the validity of
both methods for screening candidates for employment, they are still useful in selecting the type
of employees desired for the vision of a company.
Employee Evaluations
Employee evaluations can be an important tool used by employers to assess the level of
knowledge and skill of employees. Assessing an employee can help an employer to determine if
the employee is progressing as expected in the current role or position in which the employee is
working, or if additional training or resources may be needed if the employee is not progressing.
An evaluation may also help an employer determine if an employee is just not the right fit for a
certain position, which may lead to making a decision to see if the employee fits better in a
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different position, or termination in many cases. There are a variety of methods that are used to
evaluate employees including trait-focused evaluations, behavioral evaluations, self-assessments,
psychological evaluations, and the most common- supervisor evaluations (Career Education
Corporation, 2010). Some companies may also use a 360 evaluation, in which an employee is
evaluated by supervisors, peers, and in some cases, customers (Career Education Corporation,
2010).
Personal Employee Evaluation Experience
With my previous job working as a school bus driver for Wake County Public School
System, employee evaluations were given using a five item four-point scale supervisor
evaluation. A rating of 1 indicated that the driver was not making any sufficient progress, and a
rating of 4 indicated mastery of job skills and knowledge. I was always rated with a 3 for each
category, which was considered standard for the majority of drivers. This evaluation was
completed by the Operations Manager for each transportation district office. Determination of
scoring was based on observations made by both the driver’s team leader as well as the
Operations Manager. Employees were evaluated after the first ninety days of employment, then
every ninety days after, equating to about three evaluations each school calendar year.
Evaluation Accuracy
I believe my evaluations were fair for the most part. However, because there were so
many drivers, and everyone seemed to receive “average” ratings across the board, there is a
possibility that rating errors such as central tendency may have affected evaluation ratings.
Having a central tendency when rating employees may occur because, it can be difficult to
remember specific details about each employee’s performance in large organizations. This issue
can be solved by having team leaders and Operations Managers make note of commendable and
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unacceptable behaviors or performance using an employee performance diary (Fugate & Kinicki,
2012, pg. 88).
Importance of Effective Evaluations
An effective employee evaluation can help to identify positions and employees within the
company that are either unnecessary, or essential, to transformational change for the company.
Evaluating an employee provides information regarding whether that employee will be an asset
or a liability in the transformational change plan. According to an article written by Chris Jacobs,
Business Advisory Services Director for Grant Thornton LLP, information obtained through
employee evaluations may be used to help reinforce organizational change through “ongoing
training, modified performance expectations, and continuous improvement programs” (2014).
Jacobs continues, suggesting that in order for each employee involved in organizational change
to be successful, leaders need to acknowledge an employee’s “current state and the specific tasks
that will change and any challenges in performing new tasks” (2014).
Application of Employee Evaluations
Employee evaluations will play a key role in the transformational change process. In
order to implement the transformational change plan within the organization, it will be necessary
to conduct a review of evaluations to determine which employees will be remaining employed
with the company, and which will be terminated due to the concern that further employment may
deter the ability for the company to undergo transformational change. Working together with
management, the evaluations will be reviewed, and decisions will be made regarding outcomes
of the review. As plans for change continue, these evaluations will play a determining factor that
will provide an analysis of the company’s ability or actual need for change. For future purposes,
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evaluating employees will continue to be a key component of any transformational change plan
implemented by the organization.
Culture Considerations
Organizations develop a culture over time, which means that its employees share a
symbolic communication in relation to skills, knowledge, attitudes, values, and motives (Texas
A&M University, n.d.). Because HR selects employees who fit the needs of an organization, and
helps them to adapt the practices, expected behaviors, and values of that organization,
organizational culture should be considered when recruiting. Differences in age should also be a
factor to consider when developing a transformational change plan. Older employees who have
been with the company over a number of years may be resistant to any changes made within the
organization. In order to address this issue, leaders should maintain regular communication about
the change, as well as allow an opportunity for employees to be involved throughout the process.
Leadership Changes
In order to create a transformational change within XYZ, Inc., it may be necessary to
develop or replace current leadership. Transformational leaders have certain traits that are
needed in creating change within an organization. These include such traits as drive, honesty,
motivation, cognitive abilities, emotional intelligence, and business knowledge. These may be
traits that come natural to the leader, or perhaps may need to be developed. When developing
leaders, consideration should be given regarding the type of situations the leader will be in. This
is referred to as Situational Leadership theory. Leaders need to know their leadership style, and
the skills and motivation of employees. Situational Leadership styles include directing, which is
when leaders take control and direct all activities; coaching, which is when leaders have to help
develop the skills of motivated employees; supporting, which is when leaders have to encourage
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more motivation in skilled employees; and delegating, which is when leaders work with
employees who have both high skill and high motivation (Career Education Corporation, 2010).
Transformational Change Timeline
In order to facilitate the changes being made within the organization, a timeline should be
set, with certain short-term and long-term goals being made along the way. Psychologist Edwin
Lock’s goal-setting theory of motivation suggests that individuals perform functions with more
motivation when provided with goals. According to Locke’s theory, workplace goals that are
difficult lead to higher employee performance. Locke’s theory also suggests that employees
perform better when regular feedback is given while pursuing specific, difficult goals (Career
Education Corporation, 2010). The goal for the transformational change plan for XYZ, Inc. is to
have the plan fully implemented within two business quarters. Although, this timeframe may
seem difficult to accomplish, if employees are kept informed and involved in the process, this
goal can be attained successfully.
Corporate Examples of Transformational Change
When starting out on the journey to incorporate transformational changes within an
organization, it can be helpful to look to examples of other organizations that have made
transformational changes. One of these examples is that of the McDonalds franchise, as
organizational leaders sought to improve the customer experience, which in turn improved stock
performance. Company executives hired designer Denis Weil to transform the image of the
company, in an effort to upgrade from its well-known kid-like atmosphere. Weil incorporated
more mature and refined features to restaurant design like “hardwood floors, sleek white tables, a
wooden-slat ceiling, and tranquil lighting from a low-hanging ceiling lamp” (Paynter, 2010).
This change was part of McDonald’s “Plan to Win” campaign which placed a focus on menu
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innovation, store renovation, and upgrading the customer ordering experience in order to
successfully increase in overall organizational size and stock performance Paynter, 2010). The
efforts used in creating transformational change for McDonald’s as franchise are similar to those
made by XYZ, Inc. in that both organizations saw the importance of recruiting expertise external
from the company.
Another example of transformational change is seen through Toyota Financial Service’s
change in the services they offered customers. As opposed to simply providing auto loans to
Toyota and Lexus buyers, the company proposed to also incorporate “credit cards, mortgages,
and loans to Toyota customers and dealers” (Borst, 2008). This plan would require hiring new
employees with specific knowledge and skill sets. The greatest obstacle faced by CEO George
Borst was creating a sense of urgency regarding the plan in order to propel it into effect. Borst
knew that in order to be successful with this change, he would have to help employees to
understand how it affected them, and how they were an essential part of making the change
successful. He set a goal to reach $1 billion in assets by 2006. This change plan is similar to the
transformational change plan proposed by XYZ, Inc. because, just as Borst understood that it
would be essential to recruit new employees with the needed set of skills and knowledge to
accomplish the goal he had for change within TFS, so it is necessary to seek new employees who
will be assets in accomplishing transformational change for XYZ, Inc.
Conclusion
From studying about transformational change, I have learned that the most successful
outcomes are those that involve the company as a whole. Leaders within an organization have to
learn to embrace that in order to accomplish transformational change, they must be sure to
include their employees, providing clear understanding of the importance of employees’ roles. I
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have also learned that transformational change requires a certain set of leadership traits and
qualities within an individual to maximize effectiveness. These traits do not necessarily have to
be natural genetic traits, but can be developed through training and the learning process.
Transformational change does not have to be a daunting task, as long as there is a solid plan in
place, and that plan is successfully communicated.
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References
Borst, G. (2008, February 14). Toyota Tackles an Audacious Goal: How to lead an organization
through transformational change. Gallup Management Journal Online. pp. 1-5.
Career Education Corporation (2010). Motivating through the change. Retrieved from
https://campus.ctuonline.edu/courses/OB475/p4/hub1/hub.html
Paynter, B. (2010). Super Style Me. Fast Company, (149), 104-112.
Stabile, S. (2002). The use of personality tests as a hiring tool: Is the benefit worth the cost?
University of Pennsylvania Journal of Labor and Employment Law, 4(2).
Texas A&M University (n.d.). Culture. Retrieved from
http://www.tamu.edu/faculty/choudhury/culture.html
Weiss, T. (2007). Surviving the personality test. Retrieved from
http://www.forbes.com/2007/02/21/personality-tests-interviewing-leadership-
careers_cx_tw_0222bizbasics.html