The need of efficient management of human resource among business firms is continuously increasing and has become more critical due to integration of technology into people management. The efficient management of human resources often collides with a higher level of resistance due to employees’ habit of working in traditional culture and limitations of business firms to synchronize their business activities with innovative technologies. As an example, while switching from traditional DVD rental business model to online streaming platform Netflix went through sever challenges related to management of human capital and their competencies. The article discusses key issues related to effective management of human capital in terms of culture of inertia and lack of employee motivation and engagement. The article further addresses the solution to these problems in the light of academic material / theoretical concepts related to design and implementation of hum resource management practices.
Culture of Inertia
The overview of the current situation of the business firms struggling in change management reveals that first and foremost problem faced by them is the culture of inertia. This can be justified from the fact that majority of the employees in these firms are old enough that they are attached with the organisation from many years and these employees resist the change since they are fearful of the impact of change on their job security and job satisfaction.
In order to address the challenge of culture of inertia the change management theories can significantly serve the people management objective among business firms. In this regard, Lewin’s change management model can be identified as one of the effective models to address culture of inertia. It is a three-step process and the three processes can be identified as unfreeze, transition, and refreeze.
The first step, unfreezing, refers to the preparation of employees for change through awareness on the need for change. In order to apply this step in an effective way business firms must communicate the reasons for change clearly to the employees and address any concerns and potential resistance from the side of employees to ensure a smooth transition. The second phase refers to transition where the actual change process occurs. In order to effectively accomplish the goals in this phase the business firms need to introduce new training methods, make necessary changes to team structures, and adapt digital technologies. The success of this phase significantly relies over the adequate support and resources to staff, that enable them to adapt to the new practices. The last step in Lewin’s model is refreezing, this phase focuses on reinforcement of new behaviors and practices until and unless the become a new norm in the organisations. In order to achieve this objective, business firms should focus on embedding the changes into the organizational culture and daily routines of the employees. The recognition and reward mechanism for the employees that are contributing to embrace the changes can further make the transformation process effective and enhance motivation of employees. The popular global automobile industry Ford depicted a practical scenario Lewin’s change management model while transition of the business towards development of electric vehicles (EVs). The organization not only acquired the necessary technology for business shift but also successfully managed the human resources and their competencies through trainings, workshops and townhalls.
Employee Motivation and Engagement
The second key issue that can be identified based on the available information about the current status quo of the business organisations can be identified as lack of employee motivation and engagement. It can be observed that the most of the business firms lack leadership and there always exist some tensions between colleagues that is resulting into conflicts between them.
In order to address the challenges associated to employee motivation and engagement Maslow’s Hierarchy of Needs theory can be identified as an effective framework that helps the human resource managers to understand and enhance motivation and engagement of the employees. The recognition and fulfilment of the different levels of need outlined in the hierarchy theory, enables the firms to foster an environment that nurtures intrinsic motivation and promotes the level of engagement among employees.
In this regard, starting from the physiological needs, focus on the health, rest, and physical well-being of the employees is a key requirement. The fulfilment of these basic needs of employees enables them to focus their energy on their performance, that ultimately leads to increased motivation and engagement among them. Similarly, in case of the safety needs, provision of safe working environment, appropriate equipment, and access to medical care can significantly serve to peace of mind among employees. Research reveals that when employees feel secure, they are more likely to be completely engaged in their roles and responsibilities and invest their efforts in achievement of organisational goals. In case of the next level of the Maslow’s hierarchy of need theory in terms of need for belongingness and social connection, the organisations can focus on fostering a strong sense of companionship, teamwork, and inclusivity within the organization to create a supportive community where employees feel valued and connected. In case of esteem needs, recognizing and celebrating the achievement of the employees, providing opportunities for skill development, and offering constructive feedback that enhances their self-esteem and intrinsic motivation can be identified of set of key initiatives. Employees that feel respected are more likely to be motivated to excel and contribute actively to the success of organization. Finally, in case of self-actualization, business firms need to allow their employees to pursue personal growth, take leadership roles and establish challenging goals. The employees that get opportunities to achieve their highest potential, are more prone to higher dedication and commitment levels.
Takeaways
In the light of the Lewin’s change management model and Maslow’s hierarchy of need theory it can be suggested that the organisations should focus on following recommendations.
- Initiate personalized support and mentorship programs, and launch tailored initiatives based on individual motivations.
- Provide opportunities for skill development, recognition, and personal advancement to its employees through trainings, workshops and townhalls.
- Embed the changes into the transformed organizational culture and daily routines of the employees.
Author Bio
Mazhar Ali
The author is currently working as Deputy Manager Manufacturing Excellence at Luckyknits PVT Ltd. Pakistan. He is a postgraduate from the Department of Industrial Engineering, University of Engineering and Technology, Taxila, Pakistan where he received his bachelor’s in 2017. He is the author of a couple of journal articles along with some conference papers. His research interests include engineering management, project management, optimization techniques, and project scheduling and algorithms.