HR Change management ’s impact on the Bank’s wider productivity

Dec 10, 2017 | 0 comments

Dec 10, 2017 | Miscellaneous | 0 comments

 CAVEHILL SCHOOL OF BUSINESS – UWI

EMBA PROGRAM – GEMA6102 LEADING ORGANISATIONS THROUGH PEOPLE

HR Change management’s impact on the Bank’s wider productivity.

TABLE OF CONTENTS

 

Executive Summary…………………………………………………...       Page 3

Introduction and Background………………………………………        Page 4

Problem Statement…………………………………………………….       Page 5

Literature Review……………………………………………………….       Page 6

Research Methodology………………………………………………        Page 7

Data Collection………………………………………………………….       Page 8

Presentation and Findings………………………………………..          Page 9

Analysis of Findings……………………………………………………       Page 10-11

Recommendation and Implementation………………………..         Page 12 – 14

Conclusion……………………………………………………………….        Page 15

Bibliography………………………………………………………………       Page 16

Appendixes……………………………………………………………….       Page 17-24

 

 

 

 

 

 

 

 

Executive Summary

The study examined the HR change management impact on a Bank’s wider productivity. Belize Bank was used as centre for the study. The literature review examined different studies on the change management and change management in the HR department in different organizations that contributed to their wider productivity. The study used survey method where 382 staff member were surveyed. A total of 280 questionnaires were completed which represented a total of 73.29% – a good sample representation. However, 112 respondents duly filled the forms which were used in data analysis. Generally, from the findings, it is evident the HR department is confident, understands their roles, cooperate well with the employees, motivates them, are approachable, meets employees expectations, are supportive, are trustworthy, professionals, responsive, fair and unbiased, recognizes contribution of employees and communicates well their issues. The recommendations of the study include enacting mechanism of the HR department interacting with the employees, responding to their suggestions and complaints, elaborate their roles, periodically train their staffs for better productivity and better services and make  description of every job.

INTRODUCTION AND BACKGROUND

The Belize Bank Limited is the oldest continuous Banking operation in Belize. The Bank of British Honduras was incorporated in December 1902 and opened its door for business in 1903. The Royal Bank of Canada purchased its operations in 1912 and that began the second era which lasted until 1987 when it again bought out by local investors in April of 1987-commening the third era of Belize’s longest uninterrupted Banking operations in Belize (Belize Bank 2015).

The present Chairman has been in command since 2010 – his vision statement is for us “to become the preeminent Banking institution in the country and in the Caribbean”. His mission for the Bank is “To maximize value for individuals and businesses locally and internationally by providing quality and innovative financial services, nurturing long-lasting relationship and delivering superior customer service” (Belize Bank 2015).The Chairman has initiated the movements and changes in the group by changing not only the physical outlook of the Bank but the internal structure as well.

In the past the traditional top-down approach has been utilized, however this has led to considerable bureaucracy as all communications were passed down with little feedback and involvement from the employees in the decision making process. Over time this has promoted stagnation in the organization and miscommunication as ideas, reports and meaning were often lost through the chain of command.

Problem Statement

Despite the fact that Banks contributes to the economy of the country and are successful in central and Caribbean region, they still have some problems because of inadequate requisite human resource change management. Additionally, there is inadequate recruitment and selection procedures. According to Bartel (1999), another problem relates to lack to proper integration of practical and academic training into the Banking industry. This implies that as much as most of the human resource managers in the Banking industry may possess the requisite academic training, they lack adequate exposure to the real industry which guarantee performance.

LITERATURE REVIEW

To understand the change process, Lewin (1947) in his research made two observations. First that initiatives of change encountered strong resistance and second that even the initiatives that had overcome and the resistance and were implemented successfully were short lived, with the changed system returning to the former state in a few months. This observations made Lewin to conclude that organizations are highly resistant to change because of the human nature of the organizations such as group norms, habits and behavior, and also because of inertia of the organization. Applying the thermodynamic metaphor of unfreezing, then change, then refreezing the matter, Lewin (1947) perceived the process of change as series of discrete stages. Successful organizational change must disrupt first the equilibrium (unfreezing) before the beginning of the change initiatives, and then create a new state of equilibrium maintaining the new condition (refreezing).

Many factors contribute to an organizations success and they include manpower, equipment and capital among others. The human factor is the most significant factor since it is the people who will put resources into effective and good use. The human factor remains the most volatile and sensitive of all the factors in the production process and therefore require proper handling for enabling the other factors to be harnessed properly to the utmost industry advantage (Hamdia and Phadett, 2011). Every organization must make plans of developing its manpower so as to increase productivity. Individually, every employee have their own set of goals and desire to reach the pinnacle of the ladder of their careers, and therefore they seek for achievement and recognition at the place of work. Given the scenario, the individuals who are right must be recruited, developed and trained for the job

Human resource development, training and planning are vital factors for economic growth, and the provided scope of education to practitioners and actors in a particular industry such as banking industry must enable them meet future and current challenges.

Tan and Batra (1995) indicated that human resource development look for ways of meeting the demands for the workers who are adaptable who can acquire new skills readily and must support the continued need for knowledge since it affects the Banking sector

HR Change management

The impact of HR Change management on organization performance is very significant in the field of HRM, industrial and organizational psychology, and industrial relations (kleiner, 1990; Jones and Wright, 1992; Boudreau 1991). Recruitment procedures providing a large pool of applicants qualified with valid and reliable selection methods will have a substantial influence over the type and quality of skills new employees’ possess. Additionally, informal and formal training experiences, management development and coaching can further influence employee development. Employees who are highly skilled may not even perform well if they are not motivated well but HR Change management can affect motivation of an employee by encouraging them to work better. According to Bailey (1993), the contribution of the highly motivated or skilled workforce will be limited if programming or structuring of the jobs were done in a way that the employees do not have the opportunity of using their abilities and skills in designing better and new ways of performing their duties, and they know they work better than anyone.

HR Change management can be the significant factor for the success of many organizations. Lee and Lee (2007) observed that HR Change management   on business performance such as teamwork, training and development, HR planning, compensation/incentive, employee security and performance appraisal help improve organizations business performance including firm flexibility, product quality and employee productivity.

From the evaluation of two components of HR change management, information technology and training, Abang, May- Chiun and Maw (2009) found out that it has a direct impact on the performance of an organization. Additionally, Zaini, Nilufar and Syed (2009) also observed that team work, training and development, performance appraisal and HR planning have significant and positive influence on the performance of a business.  On their study on relationship between HR change management, job satisfaction and turnover, Hamdia and Phadett (2011) showed that HR change management are significantly and positive correlated with job satisfaction. In contrast, it is significantly and negatively correlated with turnover and the results of HR change management such as pay (job training and supervision practices) are strong predictors of productivity and turnover.  From his research, Huselid (1995) concluded that the impact of HR change management on corporate financial performance, productivity and turnover that HR change management can help in creating a source for sustained competitive advantage, particularly when they are aligned with the competitive strategy of an organization; and investments in work practices of high performance are linked to lower turnover of employee and greater corporate financial performance and productivity.

RESEARCH METHODOLOGY

Participants

Belize Bank was the location where the study was done. The Bank had a HR change management program which was undertaken from its headquarters to all its 14 branches. About 20% of the employees who were affected or involved in HR change management were selected randomly as respondents. The survey conducted with staff comprised of 382 staff members. A total of 280 questionnaires were completed which represented a total of 73.29% – a good sample representation. The breakdown of data by demographics, job classification, current position, morale and staff relations, leadership and management as well as communication and job knowledge can be found in Appendix section. These 112 respondents represented employees from all branches, front end staff, back office staff, MGMT, technical team, loans, executive and the support services. Staff representation in the study from different branches and different departments are in table 1 and 2.

 

 

Table 1: Branches representations

 

Table 2: departmental representations

Procedure

The primary data sources comprised of structured questionnaires and feedback survey. The data sources came from survey held with randomly selected employees of Belize Bank in weekly review and technical meetings. The questionnaire used in the study is in appendix 1.

Analysis

The collected data by survey were recorded manually and results presented from appendix 2 to appendix 25 to show the actual outcomes. The context of the tables and figures was structured to specific and interrelated issues provided by the respondents in relation to HR change management.

 

Presentation of Findings

Questions Strongly Disagree Disagree Neither/ Neither agree nor disagree Agree Strongly Agree
I am clear on the role of the HR department 3 10 17 67 15
The HR department is highly accessible to me 2 7 29 62 12
The HR department is meeting my expectations 2 14 48 46 2
I am pleased with the work HR department is doing 4 7 46 52 3
I trust the staff in the HR department to support me 4 8 37 49 14
I trust the staff in the HR department to act as my champion 5 10 51 36 10
The HR staff are professional and confidential 5 12 35 46 14
The HR staff meets my needs 1 10 51 45 5
My expectations of the HR department are being met 3 12 53 40 4
The HR team is responsive 0 8 30 65 9
The communication from the HR department is respectful and professional 1 4 17 69 21
The HR team takes fair and unbiased action when I have an issue 1 10 56 40 5
HR treats all staff equally and fairly 3 18 53 35 3
The HR department takes prompt action in dealing with my issues 2 9 52 44 5
Events scheduled by HR make me feel appreciated and motivate me 4 7 38 55 8
Employees are recognized by HR contributions 3 11 43 50 5
The Bank’s 5 core values are exemplified in the actions of the HR team 3 2 49 53 5
I am comfortable expressing concerns to HR 4 12 39 48 9
Important issues are communicated well and in timely manner by HR 2 7 33 64 6
The orientation and on boarding for new staff are improved by HR 4 7 45 49 7
HR implemented recommendations made in training sessions by staff 3 8 56 42 3
All staff now have job descriptions 6 21 28 49 8
HR activities and efforts motivate me 5 8 45 47 7

 

 

 

 

 

 

 

Dealing with HR department is

Answer choices Responses
A pleasure, five core values utilized and great customer service provided 66
Like the twilight zone, no response or feedback received 11
unpleasant 7
Rude and unapproachable 0
I have never contacted the department 28

 

 

Analysis of Findings

From the data obtained from the survey, it is evident that majority of the employees understands the roles of the HR department and that it is also highly accessible. Moreover, the HR department meets the expectations of majority of the employees and this has made majority of them to be pleased with their work. Similarly, the trust bestowed n HR department by the employees to support them and champion for their courses is also evident since they believe the HR staff are professionals, confident and highly responsive. The work of the HR department is at high par given that meets the needs and expectation of majority of the employees. From the data, it is also evident that the HR department understands their work, are professionals, respectful and good communicators

The analysis of the data indicates that HR change management’s impact on the wider productivity of the Bank since it has positive relationship with the employees. As noted in the literature review, human factor is the most significant factor for organizations success since it is the people who will put resources into effective and good use. The good management of the human resource is Belize Bank, could be one of the major factors that have contributed to the success of the Bank. As Hamdia and Phadett (2011) stated, the human factor remains the most volatile and sensitive of all the factors in the production process and therefore require proper handling for enabling the other factors to be harnessed properly to the utmost industry advantage. Belize Bank’s HR department has put in place plans of increasing the productivity of their human resource and this is evident from positive feedback given by the employees to the HR department.

The unbiased actions and fair treatments of employees by the HR department is also evident. Moreover, prompt actions when dealing with actions in addition to motivation of the employees and recognition of their contributions is significant. This reflects the study by Bailey (1993) that motivated employees perform maximally.

 

Recommendations and implementations

  • Design a mechanism where employees can contact the HR department either directly or indirectly
  • Come up with a way of responding to every suggestions, complaints reported to them
  • Elaborate more on their roles to the few members who do not understand their roles
  • Ensure that every expectation of employees are met by either having meetings with different employees from different departments
  • Inculcate values that could increase trust of employees to the department
  • HR department to train their staffs periodically, allow them to attend workshops, seminars and conferences to boost their confidence, professionalism and to meet the needs and expectations of the employees
  • Put in place mechanism of ensuring their fairness, unbiasness when dealing with issues concerning employees
  • Recognize every contribution of employees and put in place mechanism where employees can express their concerns such as suggestions box, forums, and email alerts for feedback.
  • Describe every job for every employee especially when recruiting

 

Conclusion

In conclusion, HR change management is instrumental in the productivity of a Bank. Belize Bank/s HR change management has been instrumental for their success and high productivity for their employees. The study investigated the relations of the HR department and the employees. Among the attributes which formed the questions for the survey questionnaire, majority of the employees indicated that HR department of Belize Bank is very confident, understands their roles, cooperate well with the employees, motivates them, are approachable, meets employees’ expectations, are supportive, are trustworthy, professionals, responsive, fair and unbiased, recognizes contribution of employees and communicates well their issues. The recommendations of the study include enacting mechanism of the HR department interacting with the employees, responding to their suggestions and complaints, elaborate their roles, periodically train their staffs for better productivity and better services and make  description of every job.

 

 

 

 

 

 

 

 

 

 

Bibliography

Abang A. M., May-Chiun L. & Maw K. L. 2009. Human Resource Practices and Organizational Performance. Incentives as Moderator. Journal of Academic Research in Economics, 1(2).

Bailey, T., 1993. Discretionary effort and the organization of work: Employee participation and work reform since Hawthrone.working paper, Columbia University, Newyork.

Belize Bank 2015. Bank History – Belize Bank. [online] Belizebank.com. Available at: http://www.belizeBank.com/about-us/Bank-history/ [Accessed 22 May 2015].

Bartel, A. P. 1999. Human resource management and performance in the banking industry. Proceeding of the Annual Meeting. 1, 3-5.

Boudreau, J.W., 1991.Utility analysis in the Human Resources management decisions. In M.D. Dunnette and L.M.Hough (Eds).Handbook of industrial and organizational Psychology (2nd ed).vol 2:621-745.palo alto.CA: Consulting psychologists press.

Hamdia M and Phadett T. 2011. Conceptual framework on the relationship between human resource management practices, job satisfaction, and turnover Journal of Economics and Behavioral Studies Vol. 2, No. 2, pp.41-49

Huselid M.A. 1995. The impact of HR Management practices on turnover, productivity and corporate financial performance. Academy of management Journal 1995, vol38; No 3,635-872.

Jones, G.R and Wright, P.M.1992. An Economic approach to conceptualizing the utility of Human Resources Management practices. In K.Rowland and G Ferris (EDs).Research in personnel and Human Management Vol 10:271-299.Greenwich (TJAI Press)

Kleiner, M.M 1990. The role of industrial relations in firm performance. In J.A.Fossum and J.Mattson (EDs).Employee and Labour relations: 4 23-43.washington.DC: BNA Press

Lee F-H. and Lee,F-Z. 2007.The relationships between HRM practices, leadership style, competitive strategy and business performance in Taiwanese steel industry, proceedings of the 13th Asia pacific management conference,Melbourne,Australia,2007,953-971

Lewin, K. 1960. Frontiers in group dynamics: concept, method and reality in social science: social equilibria and social change. Indianapolis, Ind, Bobbs-Merrill, College Division.

Tan, H.W. and Batra, G. 1995. Enterprise training in developing countries: overview of incidence, determinanats and productivity outcomes. World Bank occasional paper series, World Bank, Washington, D.C. World Bank report 1995

Zaini A., Nilufar A. and Syed S.A. 2009. The effect of Human Resources Management practices on Business performance among private companies in Malaysia, international journal of business and management,4(6),65-72

 

 

 

 

 

 

 

 

 

 

 

 

 

Appendix

Appendix 1

Appendix 2

I am clear on the role of the HR department

Appendix 3

The HR department is highly accessible to me

 

 

Appendix 4

The HR department is meeting my expectations.

 

Appendix 5

I am pleased with the work HR department is doing

Appendix 6

I trust the staff in the HR department to support me

Appendix 7

I trust the staff in the HR department to act as my champion

Appendix 8

The HR staff are professional and confidential

Appendix 9

The HR staff meets my needs

Appendix 10

My expectations of the HR department are being met

Appendix 11

The HR team is responsive

Appendix 12

The communication from the HR department is respectful and professional

Appendix 13

The HR team takes fair and unbiased action when I have an issue.

Appendix 14

HR treats all staff equally and fairly

Appendix 15

The HR department takes prompt action in dealing with my issues

Appendix 16

Events scheduled by HR make me feel appreciated and motivate me

Appendix 17

Employees are recognized by HR for contributions

Appendix 18

The Banks 5 core values are exemplified in the actions of the HR team

Appendix 19

I am comfortable expressing concerns to HR

Appendix 20

Important issues are communicated well and in a timely manner by HR

Appendix 21

The orientation and on boarding for new staff are improved by HR

Appendix 22

HR implemented recommendations made in training sessions by staff

Appendix 23

All staff now have job descriptions

Appendix 24

HR activities and efforts motivate me

Appendix 25

Dealing with HR department is