All you need to know about Implementing and Managing Change - "The People Factor"

All you need
to know
about…
Human Resources, Labour Relations and Payroll Specialists
Implementing and Managing Change
“The People Factor”

May 2014 "People Management Simplified" 2
Definition and Purpose of Change
Definition:
Change is defined as the process of
making something different, i.e.
removing the status quo.
Purpose:
The purpose of change is to
enable an organisation to satisfy
its needs in a more effective and
efficient manner.

Why Organisations change - 1
 Crisis:
A major crisis such as the destruction of
the World Trade Towers is a dramatic
example of an international crisis that
caused countless organisations, and even
industries such as airlines and travel, to
change radically.
Organisations change for a number of different reasons, which may either
be proactive or reactive.
These reasons include:
The recent financial crisis resulted in major changes in the financial
services sector, but also had serious repercussions on unrelated
organisations throughout the world.

 Mergers & Acquisitions:
Mergers and acquisitions create change
externally, as well as within the
organisations that merge, particularly
where products, processes, policies and
procedures are standardised and
duplication eliminated.
 Planned Abandonment:
Changes result from abandoning declining
products, markets, or subsidiaries, and
allocating resources to innovation and new
opportunities.

 Identification of Opportunities:
Opportunities are identified in the
market place that the organisation
needs to pursue in order to gain or
maintain its competitive advantage.
 New Technology:
Implementation of new technology and more
efficient and economical methods to perform
work and reduce waste.
 Current Best Practice:
Organisations need to ensure that their
processes, methods and practices are
aligned with current best practice

June 2014 "People Management Simplified" 6
 Performance Gaps:
The organisation's goals and objectives are not
being met or other organisational needs are not
being satisfied.
Changes are required to close these gaps.
 Reaction to Internal and External pressure:
Internally, management, employees and their
trade unions often exert pressure for change.
External pressures come from many areas,
including customers, suppliers, competition,
changing legislation and government
regulations, shareholders, and financial
markets.

June 2014 "People Management Simplified" 7
 Change for the Sake of Change:
For example, an organisation may appoint a new
CEO, who, in order to prove to the board that he
is doing something, will make changes just for
their own sake.
 Sounds Good:
Organisations may make changes that other
organisations are making because they sound
good.

What Organisations can change - 1
 Mission, Vision, & Strategy:
Organisations should regularly ask themselves,
"What is our business and what should it be?",
and, “Have our strategies and plans achieved to
date what they set out to achieve?”
Answers to these questions can lead to changes
in the organisation's mission, vision, and
competitive strategy.
Changes fall into the following broad areas.
It is possible that changes in one of these areas will impact on another
area.
For example, changing technology may require changes in the human-
behavioral area.

 Technology:
Organisations can change their technology in
order to increase efficiency, reduce costs, and
eliminate waste.
 Task-Job Design:
The way work is performed can be changed
with new procedures and methods for
performing work.
 Human-Behavioral Changes:
Training can be provided to managers and
employees to provide new knowledge, skills, and
behaviours, or employees can be replaced or
downsized.

 Organisational Structure:
Organisations can change where decisions
are made, (centralised or de-centralised), or
the way they are structured in order to be
more responsive to their external
environment.
 Organisational Culture:
Organisations can attempt to change their
culture, including management and
leadership styles, values and beliefs.

Change Process - 1
Step 1 - Clearly identify the need for change.
 Identify the reasons why the existing systems/processes were
established.
 What was the need that had to be satisfied?
 What were the desired outcomes at the time?
 Were the desired outcomes achieved?
 Has the need changed?
 What necessitates the planned change?
 Define the desired outcome clearly, i.e. WHAT must be achieved.
Without a vision, (perception of the future), change efforts
dissolve into a list of costly, time-consuming, incompatible and
confusing projects going in different directions, or nowhere at
all!
 Identify the benefits of the change.
 Be convinced that change is necessary - Don’t fix it if it isn’t broken!

Change Process - 2
Step 2 - Analyse the existing scenario.
 Evaluate existing scenario.
 Determine objectively what actually exists – both
good and bad.
 Do swot analysis on system/process.
 Document for reference later.
Step 3 - Consider negative factors
 Disruption.
 Reduced efficiencies and productivity.
 Staff morale.
 Will the change add sufficient real value to the
organisation to offset the negative factors?

Change Process - 3
 Is the change confined to only the section
of the business where the change takes
place?
 Is anyone else going to be negatively
affected by the change?
 If so, how will this be overcome?
Step 4 - Establish the affects the change will have on other sections
of the organisation
Step 5 - Establish and evaluate alternatives
 What alternatives are available?
 Gather information and brainstorm to
establish most suitable option.

Step 6 - Develop a tentative but detailed plan
The plan must be “SMART” - (specific, measurable, achievable, realistic,
and time bound).
Change Process - 4
 Define each task or element of the
change.
 Arrange the elements in sequence or
parallel relationships for
implementation.
 Construct a timetable.
 Draw up a budget for the plan.
 Associate responsibilities.
 Provide contingencies (critical path
scheduling).
 Determine additional resource requirements.
 Determine utilisation of staff in planning and
implementation.

Step 7 - Evaluate the plan.
Change Process - 5
 Do swot analysis.
 Formulate strategies to exploit strengths and opportunities, and
overcome threats and weaknesses.
 What is the likelihood of success?
 Is it practical?
 Is it ethical?
 Is it cost effective?
 Is it not just speculation or wishful thinking?
 What are the risks?
 Are you using proven methodology?

Step 8 – Ascertain the potential of outcome.
Change Process - 6
 Compare swot “factors” of existing scenario vs. new scenario.
 Have the areas of concern, (the need for the change), been addressed?
 Does the change result in sufficient improvement?
 Define the benefits and advantages.
 Measure the benefits against the “costs” of the change.
 Will the desired outcome be achieved?
 How will we know that the outcome has been achieved?
 How much of this change can we achieve ourselves, and what parts of
the change do we need help with?

Step 9 - Analyse the change in terms of the present and the future.
Change Process - 7
Step 10 - Obtain preliminary approval
 Visualise the change implemented.
 Ask what would happen if you did nothing.
 Does the envisaged change make a worthwhile
contribution?
 Present the plan to board/executive for
preliminary approval.

Step 11 - Introduce the plan to stakeholders
Change Process - 8
 It is essential to involve all stakeholders that will be either directly or
indirectly affected by the change – both internal and external.
 Afford employees at all levels of the organisation the opportunity to
participate.
 Encourage comments and suggestions.
 Listen to their concerns and suggestions.
 Modify the plan if required.
Email and written communications are extremely
weak at conveying and developing
understanding and gaining commitment.
Use face-to-face communication at all levels of
the organisation, albeit in workshops if more
practical.

Step 12 - Establish implementation plan
Change Process - 9
 Documentation.
 Resources required.
 Responsibilities.
 Time frames.
If you think that you need to make a
change quickly, probe the reasons - is
the urgency real?
Will the effects of agreeing to a more sensible time-frame really
be more disastrous than possibly presiding over a disastrous
change?
 Measures and milestones.
 Communication.

Step 14 - Implementation
Change Process - 10
 Implement the change in accordance with the
plan.
Step 13 - Gain final approval
 Present the final plan to board/executive.
 Obtain approval for implementation.
 Ensure required resources are made available.

Change Process - 11
 Regularly measure the progress made against the milestones to ensure
that the plan achieves the desired outcomes.
 Fine-tune the plan and take corrective action as required.
Step 15 - Controlling the process

Resistance to change - 1
The “People Factor” - 1
Understanding the most common reasons people object to change gives
you the opportunity to plan your strategy to address these factors, and,
whilst it is not possible to identify all sources of resistance, expecting that
there will be resistance and being prepared to manage it, is necessary.
It’s far better to anticipate objections than to spend your time putting out
fires, and knowing how to overcome resistance is a vital part of any change
management plan.
Expecting resistance to change and
planning for it from the start of
your change management program will
allow you to effectively manage
objections.

Resistance to change - 2
Recognising behaviors that indicate possible resistance will raise
awareness of the need to address the concerns.
All sources of resistance and people’s emotions need to be acknowledged.

Classic psychological reactions to change

Typical reasons for resistance to change - 1
 Misunderstanding about
the need for change, or
when the reason for
change is unclear
If employees do not
understand the need for
change you can expect
resistance, especially from
those who strongly believe
the current way of doing
things works well.

 Poor communication
This is probably the most likely cause when
change initiatives fail or are problematic.
When it comes to change management there’s
no such thing as too much communication!
 Not being consulted or involved
If employees are allowed to be part of the
change there is less resistance.
People like to know what’s going on,
especially if their jobs may be affected.
Informed employees tend to have higher
levels of job satisfaction than uninformed
employees

 Fear of the unknown
Fear of the unknown is one of the most common reasons for
resistance. People will only confront the unknown if they genuinely
believe that the risks of the status quo are greater than those of
changing.
 Benefits and rewards
Benefits and rewards for making the change are not
seen as adequate for the trouble involved.
 Lack of competence
Change usually necessitates changes in
knowledge, skills and workload, and some
employees lack confidence that they will be able to
cope with the new requirements.

 Change in the status quo
Resistance can also stem from perceptions of
the change that people hold.
Self preservation – How does it effect me now
and in the future?
For example, people who feel they’ll be worse off at the end of the
change are unlikely to give it their full support. Similarly, if people
believe the change favours another group/department/person there
may be anger and resentment.
 Conflicts of Ethics and Values
When you ask employees to do things that
they believe are unethical or inconsistent
with their values, you can expect
resistance.

 Changes to routines
When we talk about comfort zones we’re really
referring to routines.
We love them - they make us feel secure - so
there is bound to be resistance whenever change
requires us to do things differently.
 Connected to the old way
When you ask employees to do things in a
new way, even when that new way seems
rational to you, you will be setting yourself
up against the emotional connections to
those who taught your audience the old
way.

 Temporary fad
When employees believe that the change is a
temporary fad, or knee-jerk action, they will not
support the initiative.
 Low trust
When employees don’t believe that they, or the
organisation, can competently manage the
change, or that those responsible for the change
can’t be trusted, there is likely to be resistance

 Exhaustion/Saturation
Don’t mistake compliance for acceptance.
People who are overwhelmed by continuous
change resign themselves to it and go along with
the flow.
You have them in body, but you do not have their
hearts.
Motivation is low.

Consider how staff fears might be addressed
 Role reversals - establish emotional state of persons affected – anxiety,
stress, anger etc.
 Accurate and direct communication is essential.
 Ensure clear understanding.
 Dispel their fears.
 Identify their roles in the process.
 Try to turn objections into advantages.
 Sell the benefits.
 Identify challenges, risks and areas of concern, and state how they will
be addressed - Instil confidence.
 Show enthusiasm and confidence.
 Report back regularly on progress – highlight successes.

Selling the change
 People will change when they see and understand the need for change.
 People will change when they know how to change, and are confident
that they will cope with the change.
 People will change when they are actively involved in the change
process.
 People will resist surprises.
 People will change when they are secure in changing.
 People will resist being treated as “things”.
 People do not change on the basis of knowledge alone – attitudes,
feelings and status are important.
 People change some attitudes slowly.

Questions that can increase engagement when leading change
 What do you think about this change?
 Do you know why the changes are taking place?
 Do you think this change is for good?
 Do you think this change is needed?
 Would you change anything about this change?
 What is your experience with past changes of this type?
 If you could tell the CEO one thing about this upcoming change, what
would it be?
 What do you see your role as in this change?
 What are you working on and how will you be impacted by this change?
 What are you already doing that supports the change?
 What areas do you feel will be a challenge for you to adjust?
 What would help you most during these changes?

Newton’s three laws of motion
 The first law says that any object will remain in uniform motion until compelled to change
by an external force.
An employee will continue thinking and behaving consistently, for good or bad, until an
external force triggers a want for change.
 The second law says that the degree of change in the momentum of any object depends
on the force applied to the object. The force must be greater than the inertia defined in the
first law.
Employees need to be convinced that the change is needed and more beneficial than the
status quo in order to actively and collectively provide the momentum.
 The third law says that every action evokes an equal and opposite reaction.
The key is to find ways to measure and manage the results stemming from the action.
Closing thoughts - 1

Closing thoughts - 2

Conclusion
We hope that you found the information set out in this presentation
useful and that it will assist you to successfully manage change in
your organisation.
Please note that a downloadable copy of this Slideshow is available
to purchase from our website. Click here to learn more!
PAY MATTERS is able to assist you manage change in your
organisation, and we look forward to the opportunity to do so.
Continue viewing the slideshow to learn more about us,
or visit our website
http://www.paym.co.za
Alternatively
Submit your enquiry by e-mail, and we will contact you
info@paym.co.za
or
Call George : Mobile 082 572 0644 - Landline 041 452 3702

Who is Pay Matters?
PAY MATTERS is a Human Resources Solutions provider located in Port
Elizabeth, South Africa, that offers a comprehensive range of affordable,
high quality, legally compliant, and reliable shared Human Resources,
Labour Relations, and Payroll solutions to Corporate, SMME and Domestic
employers within the Nelson Mandela Bay Metropole area, (Port Elizabeth,
Uitenhage and Despatch), and surrounds.

PAY MATTERS’ Shared Services
Allow us to assist you to administer your Human Resources, Labour
Relations and Payroll while you focus on your core activities.
Enjoy the many benefits of having a professional Human Resources
Department working for you at an affordable cost!
We are confident that, due to our expertise, 39 years of demonstrated on-the-job
experience, flexible range of services, and our method of conducting business, we
can add value to most employers, and look forward to providing a tailor-made
solution for you.
We believe that by entrusting your business to PAY MATTERS you can rest
assured that the services we provide will be legally compliant, and that your
employees will be paid correctly and timeously each payday, while your assets and
business interests will be protected.

Our services include a selection of Human Resources, Labour Relations, Payroll
and other supplementary services, that are offered either independently or in
combinations to allow flexibility, and eliminate unnecessary costs.
Furthermore, in each of these categories, PAY MATTERS offers three levels of
service, being Primary, Enhanced and Premium.
This additional flexibility allows PAY MATTERS to provide an employer with a tailor
made package designed specifically to satisfy their needs.
Our integrated systems and processes are designed to maximise individual
contribution and thereby enhance business performance.
Our method of people management is proactive rather than reactive, thus ensuring
employee satisfaction, and resulting in stability and harmony in the workplace.
What services does PAY MATTERS offer?

Recurring monthly services - 1
Human Resources and Labour Relations
Service Level
Service Type Standard Enhanced Premium Optional
Employment Contracts   
Remuneration Package Structuring   
Job Descriptions   
Job Evaluation   
Workplace Rules   
Misconduct Management   
Poor Work Performance Management   
Medical Incapacity Management   
Grievance Management   
Performance Management    
Employment Equity Reports 
Ad-hoc reports 
Employee Satisfaction Surveys 
Retrenchments  
Market Surveys 
Facilitation/ Mediation  
User Manual    
Telephonic Support   
Newsletter   

Payroll
Service Level
Service Type Standard Enhanced Premium Optional
Data Capture   
Processing   
Standard Reports   
Statutory Administration   
Leave Administration  
Sick Leave Administration  
Absence Administration  
3rd Party Administration  
G/L Interface   
EFT Net Pay 
EFT Statutory Deductions/Levies 
EFT 3rd Party Deductions 
Ad-hoc reports 
Hand Delivery of Documents 
Time & Attendance 
Systems & Process Audits/Reviews 
User Manual    
Telephonic Support   
Newsletter   
Recurring monthly services - 2

• Strategic Planning • Due diligence/process audits
• Organisational Structuring • Workforce Planning
• Development/Review of Policies &
Procedures
• Development/Review of Workplace
Rules (Code of Conduct)
• Development/Review of Job
Descriptions
• Development/Review of Job
Grading structure
• Performance Management • Absence Management
• Skills Audits/Gap Analysis • Skills Development Plans
• Employment Equity Plans/Reports • Employee Satisfaction Surveys
• Remuneration package structuring • Incentive Reward Systems
• Market Surveys/Benchmarking • Wage negotiations
• Facilitation/Mediation
• Chairing of Disciplinary/Appeal
Hearings
We also specialise in:

 Provide access to specialist skills and knowledge that improves the
overall efficiency of the organisation;
 Provide premium services at an affordable cost;
 Provide the option of a "one-stop" solution to satisfy most Personnel
Management requirements;
 Enhance business performance by as much as 30 - 40%;
 Protect an employer’s interests and minimise their risk exposure
by ensuring efficient controls and legal compliance;
 Relieve an employer from the administrative burden associated
with human resource management;
 Promote harmony and stability in the workplace; and
 Protect employee interests by ensuring that they are managed fairly
and correctly, and that they are paid accurately and timeously.
PAY MATTERS’ services are designed to:

Last but not least

Thank you for your time
We look forward to being of service to you!
Managing Change
Human Resources Specialists

All you need to know about Implementing and Managing Change - "The People Factor"

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