Discussion
The consultancy report is based on the case study analysis of AD Pharmaceuticals (ADP) which is a leading manufacturer and supplier of drugs in the hospitals and communities across United Kingdom. AD Pharmaceuticals (ADP) was founded by Dave Robson and Eileen Dawson in the year 1997. The company is a pioneer in its sector and has been able successful in terms of innovation and revenue. The consultancy report aims at identifying issues at AD Pharmaceuticals (ADP). During organizational analysis, the work culture and leadership of AD Pharmaceuticals (ADP) was confronted by many challenges. This required effectual transformation of culture change inside the organization which would act as a catalyst in motivating employees to adopt new values, policies, as well support the success of the company by performing better. In this regard, there is a need to implement certain organizational development models and framework for the continuous development of the organization in the long run. The report further demonstrates the application of organizational development models and framework for addressing the issues inside the organization. Furthermore, leadership and management behaviours have also been recommended which will be required for achieving the desired change management in AD Pharmaceuticals (ADP).
Organizational development includes set of interventions and processes that is aimed towards enhancing organizational capability with the help of alignment among structure, strategy, people, metrics, rewards and various managerial processes. It’s a psychology-based, various disciplines with a strong scientific foundation including culture, social sciences, innovation, creativity, learning, human resource management practices, organization behavior, change management, research analysis and design and many more aspects. It is a long-term, methodological and ongoing procedure which aims at enhancing organizational performance, effectiveness, resolving workplace challenges and issues and enhances processes through interventions. Organizational development involves many benefits like enhanced communication, continuous development, employee development, improved products and services and enhanced bottom line of the company.
Change management is a part of organizational development process. It is the foundation of company’s ability to adapt to market and industry fluctuations and successfully embrace and implement change. This enables employees to comprehend and commit to the transformation while also allowing them to operate efficiently during it.
After organizational analysis, there were some major issues and challenges identified in the organizational culture of AD Pharmaceuticals. The challenges were not only making the employees demotivated but also created a culture that was rigid, lack transparency and equality.
Some of the issues identified in AD Pharmaceuticals are as follows:
- The team members of the general team received inconsistent treatment in terms of rewards and recognition, compensation as well as training and development in comparison to Xph team. This created clash and unequal treatment among general and Xph team members.
- There was no career advancement opportunities offered to the employees. Likewise, employees of general team have to work for long hours and without extra pay for their effort. This showcased micro-managed of the team members particularly in Xph.
- ADP was once an excellent workplace, however growth, particularly for women, was not a top priority for senior management, and as a result, good people were leaving the company.
- At AD Pharmaceuticals, training and development was not given any priority. As a result, employees of general team lack competency in comparison to Xph teams. In terms of training, there was a concern with being taught content in a classroom with no e-learning, coaching, or certification, as well as no experiential learning.
- Employees of general team lacked motivation because their task was dull and boring.
- Performance management was considered a time wasting process in AD Pharmaceuticals. Employees were demotivated due to lack of proper appraisal system.
- There was lack of effective leadership because many managers like Emma followed rigid structure to make the employees work and low performing employees were considered a liability.
- Despite the more innovative work being done, there is a lot of work and stress in Marketing and ‘Xph.’
- Challenges in engagement and motivation, especially in general production and sales.
- There is pay disparity among general and Xph teams and company faced high turnover ratio.
Major Organizational Issues in AD Pharmaceuticals
The above challenges clearly demonstrate that there is the requirement of complete change in the organizational culture and processes of AD Pharmaceuticals. In this regard, change management models and framework are required to be implemented inside organization.
Organizational models and frameworks to address the issues at AD Pharmaceuticals
Kurt Lewin’s approach has had a considerable impact on organisational development, as well as advancements towards group dynamics, force field, action research, and the three-step change model. Three-step change model would be the most appropriate for AD Pharmaceuticals. Changes are inevitable; however it is a complex procedure which necessitates coordination between departments in organisations, which are frequently complex adaptive systems.
Kurt Lewin used the illustration of an ice block changing its shape to transform into a cone of ice during the unfreezing process to explain the process of organisational change.
Figure: Ice model of change by Lewin
As per the change model proposed by Lewin, it enhances the project quality and help in producing quality products and services. The model explains that are two factors in organization change, namely: restraining factors and driving factors. There are restraining forces or barriers generated by groups or individuals that resist driving forces aimed at maintaining the status quo, as well as positive forces of change that strive for positive change to take place.
Kurt Lewin model consist of three steps that would assist in effective implementation of changes in the organization in AD Pharmaceuticals. The steps are unfreezing, change and re-freeze. These three steps help in shifting the status quo and implementing desired change in the organization.
Unfreezing: This is the first and most vital step in the change management process. It comprises cultivating an understanding for transitioning from one’s status quo into a transformed situation as well as improving people’s ability and willingness to change. For example: there are many issues like diversity management, equality, leadership, pay disparity, communication and other in the organization. At this step, change agent will raise awareness about the change required by explaining them about the potential benefits of the change. Similarly, motivating employee’s to adapt to new ways of working in order to achieve better performance and results.
At this stage, effective communication is the key. For example: at AD Pharmaceuticals, human resource management have never conducted employee satisfaction survey. Change agent should conduct a survey in order to identify factors that hinder employee performance, motivation and engagement. This will further help the management develop strategies to improve work culture. Furthermore, it will also assist in gaining the needed support and participation of people in the change process.
Kurt Lewin Change Model
Actions to be taken at this stage are:
- Determining what needs to be changed: survey should be conducted
- Ensuring management support by communicating to stakeholders
- Communicating the change to the workforce with long-term vision
Change: This step is also known as transition stage. This requires intentions to embrace new ways of doing things. The employees are unfrozen at this point, and the actual modification is applied. This involves deliberate planning, transparent communication, participation and collaboration of team members in supporting the change process. Suggested changes at this phase are: development of proper performance management system, training and development, compensation management, leadership development, structure to manage work-life balance, career advancement opportunities, and diversity management at the premises.
Information flow and leadership support are vital factors at this stage. The effectiveness of any change plan is strongly contingent on employee participation. This could be achieved through involving employees in decision-making, imposing deadlines; educational training to employees, managing workflow, building corporate culture and leadership are few strategies to achieve this.
In simple terms, steps at this stage include:
- Communicating about the processes in a transparent manner.
- Promoting and empowering employees
- Enhancing participation and involvement
Freeze: This is the final stage of change process. Since, changes have been implemented in the workplace, it is very vital to stabilize them so that they could benefit the organization in the long run. This will help in making the changes stay in place and does not revert back to its previous state.
Steps that could be implemented are as follows:
- Providing training and development support
- Promoting innovative ways to sustain changes
- Creating a two-way feedback process
- Implementation of appraisals and reward system through performance management to make the employees motivated and committed.
Figure: Kurt Lewin change model
High performance work systems
HPWS is also referred as high performance work practices. This is the correct amalgamation of people, organizational structure, processes and technology in order to maximize the organizational capabilities and resources for achieving competitive edge. High performance work systems combines’ human resource processes in a manner which is effective and efficient for bringing transformation. The HPWS programme is currently seen as a competitive advantage for the company. HPWS enables employees to be more effective and for organisations to achieve higher levels of performance. HPWS is based on three aspects: employee motivation, empowerment and skills.
Figure: HPWS practices
Employee involvement is emphasised in HPWS systems, which demonstrate a desire to fostering an organisational culture based on commitment rather than control. For implementing a change in the AD Pharmaceutical’s work culture, seven practices of HPWS should be applied:
Ensure employee security: HPWS should create a culture of high trust with members of the organization in order to build commitment and promote positive behaviour. Furthermore, HR must enforce policies for employee safety and security and make them more committed towards success.
Selective hiring: Organization must be able to identify attributes and critical skills of their employees. Changes also open new positions. Careful hiring of candidates that fit the job role will help in employee retention.
High performance work systems
Decentralized decision-making: delegation of proper decision-making will make the change management process work efficiently. This will make the employees empowered in delivering excellent customer service and achieve optimal outcomes. This could be achieved through self-managing teams, accountability, transparency and extensive training.
Compensation management: There is a lack of proper pay scale in AD Pharmaceuticals which creates difference among employees. This can be done through creating a compensation system which rewards employees at all levels whenever the company is successful in encouraging employees to work together towards common goals and raises employee knowledge of their roles in success.
Training and development: COVID-19 has generated a hybrid work culture which provides benefits like flexible working. Considering the safety of employees, training and development must be conducted both through virtual and face to face mode. Providing proper training to employees will boost their confidence, skills and make them motivated towads the change process.
Reducing status barrier: There is a barrier among upper management and employees in AD Pharmaceuticals. Also, hierarchical structure that is followed is rigid and organization also faces diversity issues. Creating culture which eliminates gender inequality and rigidness will help in embracing effective change and help in building trust and commitment among workforce.
Transparency in information sharing: Rigidity at AD Pharmaceuticals restricts growth of its employees. Information like financial, strategic and performance data must be communicated in a fair and transparency manner. Information sharing and training on how to use it to achieve objectives would be beneficial in embracing change initiatives.
There are poor leadership practices at AD Pharmaceuticals that restricts performance of employees and organizations. Poor leadership has resulted in incompetent decision making in the organizations which is the main reason behind several issues faced by the organization. Sensitivity training will help the leader, managers as well as employees of AD Pharmaceuticals in raising awareness about the roles and responsibilities in the group. This will assist in bringing peace amongst managers and employees and also make the managers become a better role model for their team members in future.
The diversity issues at AD Pharmaceuticals could be resolved by sensitivity training. Managerial sensitivity training helps in the elimination of discrimination in the workplace. It makes them better leaders and prepares them for any situations of discrimination. Managerial sensitivity training demonstrates the organization’s commitment towards accountability. It builds employee trust as the company moves closer to becoming an inclusive workplace.
For instance: It exhibits managers a greater sense of empathy and knowledge. Managers, who are sensitive to impaired staff, could make better decisions on how to make them feel welcome. In the prevention of discrimination, sensitivity training is extremely beneficial. Managers are the highest-ranking members of a company. Managers can prevent violations of civil rights by being prepared for any cultural appropriation or objectionable behaviour.
Following benefits will be experienced by managers and employees by implementing sensitivity training at the workplace:
- It helps in investing in the well-being of employees. It helps in improving employee morale by making them committed towards organizational objectives. Absenteeism is also an issue at AD Pharmaceuticals. As a result, sensitivity training will reduce employee absenteeism and boost productivity.
- By removing unconscious biasness, it will assist managers in better decision making.
- It will enhance communication among management and employees. Because sensitivity training for managers is based on feedback, the business will be able to track improvement in the workplace.
- It will generate more employment opportunities for under-represented. As a result, career opportunities at the organization could be resolved.
- Employee participation in organizational processes will increase. This will make the decision making smoother and make the employees more empowered in the workplace.
This model was developed by Greiner in the year 1998. As per the model, It is anticipated that an organisation would grow and flourish throughout time. The Greiner Growth Model helps people understand why management styles, organisational structures, and coordinating processes function and also don’t function at various stages of an organization’s development. As a result of the Greiner Growth Model’s strategic policy orientation, each phase necessitates various business competencies. There are five phases of this model that could be implemented at AD Pharmaceuticals:
- Creativity stage:Every business begins with a seedling of an invention which is nurtured and expanded throughout time. It’s a truly creative stage in a company’s life as it try to implement new processes, assemble a team, map out a consumer path, and achieve that unattainable goals. This necessitates development of leadership.
- Direction stage:At this phase in a company’s life cycle, the owner/founders decide to hire management, surrendering some control over the company’s resources and direction. This is typically a phase in a company’s life when operations become significantly more formalised, departments are formed, and a corporate culture is established.
- Delegation stage:Here the main employees are provided responsibility and accountability to assist in areas of their expertise in the change process. There will be specialised staff focused on specific responsibilities at this point in a company’s life cycle.
- Coordination stage:This emphasizes on core competencies of the company. This is to make sure that every divisions work together to achieve a common goal which is organizational development. The overall business is greater than the sum of its parts, which leads to growth.
- Collaboration stage:This is the next step in the development of synchronization, whereby all areas of the company collaborate in a reliable and efficient manner. For efficiency, systems are simplified, training and development are prioritised, and all parts of the business contribute to long-term success.
Figure: Greiner model of organizational development
The leadership and management behaviours for the change management
Successful organizational transformation is the biggest challenge that contemporary organizations face today. Leaders and management play a crucial role in changing organizational process and lack of competency among them will result in detrimental effects. Leaders and management must exhibit various behaviours for making the change process a success in the long run. Some of the behaviour that could be adopted by leaders and management are:
Communication: Successful leaders must be able to communicate what, how and why of every change management process to the employees. Leaders that communicated the change’s goal and linked it to the organization’s values, as well as the benefits, help in increasing commitment and urgency. This will make the employees feel valued and help in developing trust among employees and management. This will further assist in dealing with resistance of change among employees.
Figure: Leadership skills
In order to reduce communication gap and misunderstandings, transparent and clear communication line must be developed. This could be achieved through two-way feedback process. Employees should be able to communicate with their leaders and know that they will be heard if there is a problem.
Collaboration: It is vital to bring people together to plan and implement change. Successful leaders bridge boundaries, encourage staff to leave their silos, and refuse to accept unfair competition. Employees were also included in the decision-making process from the beginning, which strengthened their commitment to change. Unsuccessful leaders and management often fail to engage employees in the change process and as a result face resistance from them.
Commitment: leaders and managers must make sure that their personal behaviour and beliefs are supportive in the change process. Change is challenging, however leaders who successfully navigated it were resilient and diligent, as well as willing to move beyond respective familiar environment. They also committed more of their personal time to the reform effort and concentrated on the larger picture. Failure to adapt to circumstances, negativity, and impatience with a lack of outcomes were all characteristics of unsuccessful leaders.
Informed decision making: Leaders and management must not be afraid in making decisions for the betterment of organization and its people. A leader must completely understand choice and then convince employees to be a part of the decision making.
Compassion: Change often generates stress and ambiguity and generates fear of failure and unknown. Leaders and managers must be able to consider employee’s stress and take better actions to explain them about the consequences of the change in a positive manner. This will help in managing stress and conflicts in the workplace. This is done through showing genuine interest in employee’s well-being and success. This further assists in motivating the workforce.
Mentoring: Managers that really can take a mentoring approach to leadership form a bond with their employees and generate an unified goal for what needs to be changed and how these objectives would be met. Such type of relationship allows you to play a more personal and active part within every person’s development, establishes a trusting relationship, and nurture an environment of on-going developments.
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