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Lecture Outline
Chapter 6: Change Management and System Implementation: Changing
Business Processes and Implementing the Human Resource Information
System
CHAPTER OBJECTIVES
After completing this chapter, you should be able to do the following:
♦ Understand the management of change through the perspectives of various change
models
INTRODUCTION TO THE MANAGEMENT OF CHANGE
● Most mangers face change management issues every day; managing change is now a
permanent part of every manager’s job.
● Effective management of change represents a critical core competence that all
Organizational Development
● Organization development (OD) is a planned system of change. Porras and Robertson
(1992) define OD as “a set of behavioral science–based theories, values, strategies, and
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needs of the various stakeholders.
What Is Change Management?
● We define change management as a systematic process of applying the knowledge, tools,
and resources needed to effect change in transforming an organization from its current
state to some future desired state as defined by its vision (Potts & LaMarsh, 2004, p. 16).
● Because what happens in an organization is driven by the attitudes and behaviors of the
The Change Management Process: Some Terminology
● Organizations are in a constant state of change, which enables them to remain
competitive in the marketplace. Some of the forces for change are external while others
are internal.
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MODELS OF THE CHANGE PROCESS
● We introduce and describe a general model of the change process and then four specific
models of organizational change that have received considerable attention in the change
Action Research Model
● The action research model can best be seen as a general perspective to use in any planned
change effort.
● Although we use the term model to describe the prescriptions of action research, it is
● The basis of the action research model is the interaction of managerial or organizational
action and research that both evaluates the action taken and provides data for future
planning of the change effort.
● A cycle in the action research model would include the following: (1) initial data
collection and gap analysis, (2) feedback of results to the HRIS project team, (3) action
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● Interpret Data About the Organization. There is much interdependence with any change
effort. As such, a model helps us in recognizing these linkages and in taking appropriate
action to remedy any problem areas (e.g., structure and strategy).
Lewin’s Change Model
● Lewin’s (1946) framework serves as a general model for understanding planned change.
● In his study of group behavior, Lewin argued that behavior was a complex interaction of
what the individual brought to the situation and the environment (or field as he called it).
We can express this relationship as B = f(P, E), where behavior is defined as a function of
the person and the environment.
● The key to understanding this approach, at the individual level, is to see change as a
profound dynamic psychological process (Schein, 1996). This psychological process
involves painful unlearning and difficult relearning as one cognitively attempts to
restructure one’s thoughts, perceptions, feelings, and attitudes.
● Lewin (1946) viewed these three steps as follows.
Unfreezing
o At the outset, every change project requires getting people to change their minds
and behavior regarding the old way of doing things and to embrace the new state.
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Changing/Transition
o Whereas unfreezing creates the motivation to change, the changing or transition
Refreezing
o This final step seeks to stabilize the organization at a new state of equilibrium and
Gleicher’s Change Equation Formula
● Gleicher’s change equation formula helps us assess this degree of readiness as follows
(Beckhard & Harris, 1987): C = (D × V × F) > R, where C is the change, D the
dissatisfaction with status quo, V the vision, F the first steps (feasibility), and R the
resistance to change (costs).
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Nadler’s Congruence Model
● According to David Nadler (1998), one of the key steps in understanding and managing
● There are several benefits in using the congruence model (Mercer Delta Consulting,
2003, pp. 10–12):
o If we use a computer metaphor, at its core, the model depicts both the “hardware”
and the “software” dimensions of an organization. The hardware represents the
strategy, work, and formal organization—how the firm is organized to coordinate,
● Nadler’s congruence model is an organizational performance model that is built on the
view that organizations are systems and that only if there is congruence (“fit”) between
the various organizational subsystems can we expect optimal performance. As reflected
in the model, the basic components of any organization system include the following
elements (Nadler, 1998): input, strategy, output, and operating organization.
● The transformation process of any organization is composed of four components, or
Kotter’s Eight-Stage Change Process
● Kotter’s (1996) eight-stage model was developed after studying more than 100
organizations undergoing change. The model offers a process to manage change
successfully and avoid the common pitfalls that have beset failed change programs.
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of phases, each lasting a considerable period of time, and, second, that critical mistakes in
any of the phases can have a devastating impact on the momentum of the change process.
● The first four stages focus on the practices associated with “unfreezing” the organization:
1. Establishing a greater sense of urgency
● The next three stages introduce many new practices (“change/transition”):
5. Empowering a broad base of people to take action
WHY DO SYSTEM FAILURES OCCUR?
● Increasingly, the failure to successfully implement information systems has less to do
with the hardware or software aspects of the new system and more to do with the skills of
Leadership
● Major change is almost impossible without top-leadership support.
● Lack of executive support is one of the main reasons why HRIS implementations fail.
Without this support, organizations lack the funding, approvals, and leadership necessary
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● Project managers lacking in leadership skills have also contributed to project failure (see
Chapter 6). Those individuals given the responsibility to manage the HRIS project are
often very knowledgeable in HR or IT. However, they cannot lead a major change project
effectively unless they possess strong leadership and communication skills. They must
● Higgs and Rowland (2011) identified five broad areas of leadership competency needed
in the change process:
1. Creating the case for change
2. Creating structural change
Planning
● Effective planning is essential to change management. Each successful project has a
clearly identified project scope and strategy that outline key business requirements and
project goals.
Change Management
● Change management is an ongoing challenge for HR leaders and organizations.
● A review of the research literature on change suggests that a large percentage of change
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Communication
● Effective change communication can make the difference between the success and failure
of an HRIS implementation project.
● No matter what kind of change initiative an organization’s leadership may desire, the
● Mercer Delta Consulting (2000) suggests that five key elements make up a persuasive
case for change:
1. Reason for the change
● Communication plays a vital role in the success of change programs. It is difficult to
Training
● Ongoing, effective training is essential in any change management initiative, particularly
when new technology and work processes are involved.
● This plan should include a complete assessment of the current skills and future
requirements for all who will be affected by the change. The plan must also include the
following:
o What training will be provided
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● Although some training early in the process is recommended, full training should not be
offered until just before the system will be used. One common error is providing too
detailed training too early in the learning process. If training is provided too early, users
ORGANIZATIONAL AND INDIVIDUAL ISSUES IN HRIS IMPLEMENTATION
Cultural Issues
● Successful implementation is more than putting in new technology; it often requires a
change in the organization’s culture. A wide variety of people and cultural issues play a
huge role in any change effort or transformation.
● Culture can “not only stop a change effort dead in its tracks, it can also propel it to great
heights.”
● Whenever there is an incongruity between the current culture and the goals of the change
initiative, the culture always wins (Conner, 1998, p. 207).
● The elements of change can become misaligned for many reasons, but at least two stand
out. The change leaders either don’t recognize the need to align the four dimensions, or
they do so “only perfunctorily because they don’t understand the implication of the
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Resistance to Change
● Both groups and individuals resist change. Michael Beer (1987) captured the essence of
why people resist changing old habits:
o Changes usually mean losses of power as responsibility and accountability are
shifted; losses in relationships as new patterns of interaction are demanded by
● Another barrier to organizational change related to maintaining the status quo is the
tendency for many organizations to develop a comfort level based on their current
performance.
● In addition, Kotter (1996) suggests that change initiatives can encounter challenges
because of “inwardly focused cultures, a paralyzing bureaucracy, parochial politics, low
levels of trust, lack of teamwork, arrogant attitudes, lack of leadership in middle
management, and the general fear of the unknown” (p. 20).
● Despite the fact that the new systems are being implemented to improve the efficiency
and effectiveness of the HR function, fear and resistance to the new system from HR staff
will be common and must be anticipated and addressed.
● This resistance to a technology change can take many different forms. Employees can
overtly resist the changes by refusing to make the change or use the new system. They
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o Those resisting the change often care passionately about the organization and this
passion ignites the resistance. Change leaders may be able to work with these
individuals to refine the change, harnessing their energy to redesign the portion of
the plan that could have ultimately derailed the change.
● When employees outside the HR department are affected by new technology, as is the
case with the introduction of manager or employee self-service components, resistance to
User Acceptance
● One approach to improving the odds of convincing people that the change is necessary is
to help them understand that the vision for the change is headed in the right direction.
● It’s important that people understand both emotionally and intellectually why they need
to change.
● Ultimately, acceptance of the new technology and new processes represents project
success. Although the technical challenges in implementing any system can be great, it is
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influence others negatively toward the change.
● Instituting a phased implementation plan or an initial pilot program can provide a higher
comfort level, allowing some users to “try out” the new system and to share outcomes
(hopefully positive) with the remaining users. In more complex or highly challenging
CHAPTER SUMMARY
The aim of this chapter is to deepen your understanding of change management and the
behaviors and organizational factors required for success in implementing an HRIS. To help
illuminate the challenges in this effort, this chapter defines change management and the
important role effective change management plays in the implementation of any HRIS. The
chapter introduces several change models and explains why these are important concepts for
today’s HR leaders.
It is interesting for the student to note that Lewin’s (1946) and the action research models are
quite similar since both are process models. Process models of change look for emotional,
attitudinal, and behavioral changes in employees during the implementation of change. Both
Nadler’s congruence (1998) and Kotter’s (1996) eight-stage change model are more structural
Finally, change leaders must prepare for the inevitable resistance to change and plan to gain user
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