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SAR Health Services (SARHS) is a segment of a multi-national company which is based in the country Switzerland. SARHS supplies high level diagnostic tools to the hospitals throughout Europe and also havenewlymove in Asia. The company has about 3000 employees which comprises of production team, technicians, marketing team, drivers and managers. The relation among the consumers and SARHS’s mainly focuses on high level of trust, quality products and the services offered 24 by 7. The company mainly focuses on the education of environment with the help of training the employees and induction program. The novel employees get training on sustainability (Doppelt, 2017). Also, departmental meetings are held monthly in the head office in which there is a green slot in which updates are taken concerning about environmental sustainability. The company also provides an internship which serves as a useful source of thoughts about green initiatives. In the past three years the company has made two reorganisations.
The latest shifting deals with the functional to a matrix structure shift. Due to this the managers are very confused about the authority and charge relations. Due to the increase in competition and the pressure of the budget of equipment’s, the company’s senior management are in search of the ways to decrease the cost of operation. The company has taken a decision for closing one of the sites and combine the operations at the other site. Both the sites are around 100 miles far from each other. This action is fixed within the time limit of six months. This time will be utilised to redesign the operational site. The new design will be an open plan office in which it is predicted that the energy prices will be reduced. According to the plan it is expected that the total number of production and office employees will be decreased by 5 -8% (Cameron & Green, 2019). However, the sales and technical employee’s numbers are anticipated to continue the same. This report will explain about the change management plan of SARHS, its related issues and the way to deal with them.
To incorporate a change in SARHS is a very difficult task. It includes numerous considerations from top to bottom. The decisions regarding the change must be made very carefully. It is very difficult for the employees of SARHS to adapt the changes made by the management of SARHS. The role of the leader is very important in this scenario. The leader should motivate the employees in this situation. SARHS should have a vision and mission with a valid reason before thinking and undertaking the procedure of change. The companySARHS has undertaken the change as there is a burden of the budget of equipment’s and increasing competition (Stouten, Rousseau & De Cremer, 2018). The company wishes to decrease the cost of operation. There are various critical and significant factors which are required to consider before going ahead with the change management plan. These factors if considered then the change management will be more effective. These factors include:
This is the first step of a change which should not be missed. Since, if this step is missed then the other steps will not be effective. Whenever a change effort is boarded in SARHS, it is the responsibility of the leader of SARHS for developing and delivering a motivational assessment of the future times and makes the employees follow it. The employees will adapt easily and with more commitment when they will be provided effective guidance, leadership and a vision.
The accountability for leadership plays a significant role during the change management at SARHS. The main focus for the effective change management of the company depends on the accountability of leadership (Fallatah& Syed, 2018). The meaning of accountability for leadership deals with the activities undertaken. The employees will obligate to a change with their emotions not their minds. The main activities which show the promise of leadership towards change management are communication, participation, sharing the vision early and resource commitment.
Participation of Stakeholder
The main focus should be on the level of contribution every stakeholder of SARHS is providing for the change and the point up to which every stakeholder of SARHS can affect the change either positively or negatively. The focus should not be limited to understand the stakeholders of SARHS but on their participation in change. This data need to be kept securely in a stakeholder management plan. There is a requirement to deal positively with all the queries of the stakeholder of SARHS. The effective way to make the change effort a success is to understand, support and make a 2 way interaction with the stakeholders of SARHS.
Equipment’s and Abilities
There is a burden of the budget of equipment’s on the company SARHS, so it is required to consider it while making decision for change management. There is a need to increase the abilities and skills of the employees so as to adapt them with the upcoming changes. The
leaders must be aware of the tools and skills (Schoemaker, Heaton &Teece, 2018). Also, they need to be master of the tools. It is required to judge the price of the equipment’s and evaluate them. The company SARHS want to reduce the cost of operation as the competition is increasing.
The major change occurs at the behavioural level. Changing the infrastructure of the company SARHS for supporting the change is crucial to sustain the change. This can be done with the help of performance management tactics, realigning job explanations and measurement systems. There is a difference in response for the change by different employees so there is a requirement of the leader to give them support, coaching, training so that the change moves forward without disaffecting the stakeholders of SARHS (Gerbec, 2017). For a successful change the leaders must identify and strengthen neededconduct by rejoicingunimportantvictories, providing continuousopinion on the development of the change, and memorizing that everyemployee moves with the curve of changein a different manner.
Actions and Procedures
This is the last consideration for the change management of SARHS. This explains about the measurement of the performance in the business. There is a requirement of examination and realignment of the present measurement system by the leadership for giving support to the efforts of change in every area. There is a metrics which tracks the procedures whether personnelperformanceor financialperformance.
SARHS is undergoing a change in the business activities in which the company should not ignore the employee component. Since, if the employees are not willing to adapt as per the stated change or are not included in the change then the chances of failure of change are on the higher side (Sroufe, 2017). The resistance to change in the employee is because they have fear in terms of losing the job or undertaking to take extra duties for which the employee do not feel qualified or equipped for handling. It is required to utilise motivational and encouraging methods for the implementation of change. The employees of SARHS should be explained that there is no force on them for the accepting the change but it is the part and procedure of the company. The employees will feel that he is an important contributor in the company when he is made a part of the successful change.
In the company SARHS, the employee’s when heard the news of change have shown anger and there is a concern in the staff. The main concerns were from the production employees. They were worried about their travel expense. They felt that it is feeling to them like a wage cut. On the other hand, the sales employees were happy because of the idea of home based working. This will reduce their travel and hence the expense will reduce (Thakhathi, le Roux & Davis, 2019). The role of the Manager is this scenario is to motivate the employees. In this way, motivation and leadership goes side by side. This can be linked with the theory of leadership and motivation. Maslow’s theory is the best suitable theory for this circumstance.
The Maslow theory proposes that motivation is the outcome of an employee’s effort to fulfil 5 main requirements. This includes safety, self-actualization, physiological, esteem and social. These are those burdens on the employees of SARHS which generates internal pressures. These can surely have an impact on the behaviour of employees of SARHS. The employees are the one who can help the company SARHS to meet its aims. If the workplace is not having motivated employees then SARHS can be in a very risky situation. If the employees are motivated by the leaders they can lead SARHS to enhance output and permitsSARHS to attainadvanced levels of productivity. This theory is helpful in managing the people that means employees of SARHS through motivation and leadership.
This theory will help to motivate the employees of SARHS. As this theory breaks down the main human requirements it assists the employee to accomplish those needs and also encourages him to become a better employee. Physiological requirements of the employee of SARHS need to survive by attaining physical needs like food and water. The safety needs is the security which includes house and a comfortable daily routine. The needs of self-esteem deals with the confidence and the sense of accomplishment. The social needs include the desires to formulate meaningful relations(Van der Voet&Vermeeren, 2017). As soon as the employees attain these needs they feel self-actualization. It is the responsibility of the leaders of SARHS to identify their basic requirements and taking steps to fulfil them.
The theory of leadership is categorized into 4 major groups which includes trait, behavioural, power, and contingency and influence. According to the behavioural theory monocratic leaders takes the inputs from the team and makes decision. According to the contingency theory, the leadership style is selected as per the situation (Dhir, 2019). According to the trait theory, there are some similar attributes which they share and from these attributes the style of leadership is decided. Influence and power theory depends on the influence and power used by the leaders to get things done.
If leadership is not present then the employees of SARHS will be lost which results in a hectic work environment.Without motivation the employees of SARHS will not be able to perform best. It the theories of motivation and leadership will be used then it will take the employee and the company in the direction of success. This can be attained with the help of understanding the main components of basic motivation and leadership theories and applying them accordingly.
The company SARHS is facing enormous challenges during the change management. So, there is a need to provide some recommendations for making the change management procedure smooth. There are various recommendations for SARHS which can be made for the effective change management. These include:
Communication: There is a requirement of effective communicationin SARHS on a high level. It is required to convey the messages effectively so that the employees of SARHS can understand and agree on the procedure of change.The managers and leaders of SARHS should convey the employees about the factual messages and latest development. This is the efficient way for nurturing the attitude of employees of SARHS in a positive manner (Mone, London &Mone, 2018). It is required to give continuous feedback with a concurrent step-by-step interaction of all actions.
Feelings: There is a requirement to give enormous attention to the SARHS employee’s aspects and feelings. It is essential to take the SARHS employee’s feelings seriously.The novel management style incorporates emotions of the employees of SARHS. This will make the employees of SARHS feel more pleased. This will lead to more efficiency in the procedure of change management.
Knowledge: There is a requirement of high calibre in managers and leaders of SARHS and also sound management practices which can be followed by the employers of SARHS. There is a necessity for an optimum level of strategic thinking. The staff membersof SARHS should optimise their skills for managing the change procedure. The employees of SARHS must be provided with the increased knowledge of policies and the rationale for change.With the help of strong leadership of leaders of SARHS, the employees will be provided novel direction. It will motivate employees of SARHSto change their conduct and actionsconstant with the novel direction. It is required to train the employees of SARHS for overcoming the obstacles coming in the way of change. There should be a creation of an informal atmosphere of purpose, co-operation and teamwork (Hodges, 2018). This can lead the change easily. The leaders should address the fear of job losses of the employees successfully and timely as this imposes a major threat to the staff. There is a need to be influential in the job role and show a positive attitude towards the procedure of change. In this way, the job roles should be played.
Behaviour: To modify the behaviour of the employees of SARHS, there is a need for nurturing positive attitudes. With the assistance of this the aim of change management can be accomplished. The significant change happens at the social level. Changing the framework of the organization SARHS for supporting the change is essential to continue the change. This should be possible with the assistance of execution of the board strategies, realigning work clarifications and estimation frameworks. There is a distinction accordingly for the change by various employees so there is a necessity of the pioneers to give them support, instructing, preparing so the change can be pushed ahead without estranging the partners of SARHS (Clarke & Higgs, 2019). For an effective change management the pioneers must distinguish and reinforce required lead by celebrating immaterial achievements, giving continual supposition on the advancement of the change, and retaining that each employee of SARHS moves with the bend of progress in an alternate way.
Participation: It is very important to emphasize staff participation in the change procedure. This will have possible chances to facilitate effective change. With the help of staff participation the attitude of the staff of SARHS can be improved. The staff participation can give better level of understanding of the change process in terms of policies and the rationale for change. The effective participation of employee of SARHS can minimalize the opinion that change is a threat. It will give better understanding to the employees of SARHS.
Change: For the effective change management, there is a requirement of appropriate structures, vision and goal setting of SARHS. There must be an efficient purpose for the change to happen in SARHS (Splitter, Seidl, Whittington & Street, 2019). This is the overall procedure of managing the change. Also, there must be a strong leadership in the leaders of SARHS. With this, there is also a requirement to manage the social systems and monitor the staff behaviour and approaches.
There are various factors which are required to build the capability of change. These include:
Active Executive Support
Due to the change the whole hierarchy of the company SARHS is affected beginning with the top level executive to the bottom level executive. It also includes the partners and the clients. The main and active support which is required is of the leaders of SARHS. Without their contribution the change management is not at all possible.
Change management Leadership
There is a requirement of all the SARHS executives in the procedure of change but most of time all the leaders are unable to devote their time. An active SARHS leader whether external or internal should take the charge of the change management project(Hodgkinson, 2018). There is also a need to collect a group of leaders for making the change management successful. There is a requirement of strong and devoted leadership.
Clarity in Vision
There must be a clarity in future need for the change in the minds of the employees so that the whole company SARHS will be able to work in the same direction for the fulfilment of same aim.
Employee Participation and Engagement
It is very important for the employees of SARHS to participate and get engaged i n the change management procedure. For the change management process to be effective the employees of SARHS should clearly understand the need for the change.
The leaders of SARHS should have an open and honest interaction with the employees. It helps to take valuable advice from the employees(Andersen, Agerdal-Hjermind&Valentini, 2016). This will have a positive influence in the change management process.
It is required to have an accountability and evaluation of the progress of change as per the vision of the change management. This will help to measure the performance of the business.
It can be concluded that the company SAR Health Services (SARHS) in the pressure of the budget of equipment for which it wants to lower the price of operation. There a risk of competition in the market. Due to all these reasons the management has decided to incorporate a change plan. The change is related with closing a site and merging its operations into another site.There is a resistance to change in the employees of SARHS. For effective change management, there is a requirement that the leaders should motivate the employees.There is a need to explain the employees of SARHS about the need for incorporating the change since the employees are displeased with the decision. Mainly the production employees are not happy with the decision. There is also a provision for allowing work from home for the sales employees. There are various factors which should be considered before implementing the change. This report provides numerous recommendations for the change to be effective in SARHS.
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