The organisation this report is based upon is NCO Europe Ltd (NCO) their European Head Office is based within Preston’s City Centre and the organisations head office is based in Pennsylvania US. NCO is part of a much larger group of companies namely Expert Global Solutions (EGS). The EGS Group is a business process outsource market leader employing in excess of 43, 000 employees in 118 contact centres around the globe currently in 14 countries, with an annual turnover exceeding $2 Billion. EGS is a recognised tier one player in both Customer Relations Management (CRM) and Accounts
Receivable Management (ARM) whose clients include 40% of the fortune 500. At the European Head Office, NCO currently employs approximately 500 employees at this site and is currently undergoing a rapid expansion program.
An explanation of why your organisation needs to change identifying at least 6 internal and external factors that drive or influence the change.
Over the last few years, businesses within the UK have needed to adapt and change to the economic challenges posed by the long lasting recession that hit the financial markets back in the 2nd quarter of 2008. A major part of the organisations income stream is from debt recovery also known as ARM. The economical downturn had a direct impact on the organisations strategic objectives as this impeded revenue collected from those who fell into arrears. The organisation implemented a change in business strategy a new department was created to solely deal with debt management companies (DMCs) and customers infinancial difficulties, as a result an increased revenue stream was created.
The increase in business has resulted in a huge expansion both in the capacity of new employees required but also it has seen the organisation needing to relocate to a newly refurbished building along with investment in newtechnologyto ensure they have both the capacity and the capability of fulfilling the client’s requirements. Change can be described as being inevitable, and those organisations who do not keep up with change may become unstable, with long-term survivability in question. There are events, or situations that occur that affect the way a business operates, either in a positive or negative way such as; Out-sourcing, Internal Reviews, Resignations, Mergers, The Recession or even Employee / Client expectations can all lead to change needing to be implemented within an organisation.
Explain how change can impact an organisation’s business
Change can impact an organisation in numerous ways such as;
I. Size – This is frequently a driving factor for a company’s structure. Smaller businesses won’t usually have a vast structure as the owner is usually responsible for all tasks. Larger organisations usually require a
more intense framework for their organisations structure.
II. Business Strategies – These can be a factor in a company’s organisational development structure. High-growth companies usually have smaller organisational structures so they can react to changes in the businessenvironmentquicker than other companies.
III. Profitability – A positive effect of companies generating operational profits is the ability for companies to expand and grow their operations. Companies often reinvest a certain amount of profits earned from current operations into new business opportunities or expanding current operations to increase business output.
Explain the main factors involved in the change process.
There are a number of factors involved in an organisations change process such as; 1. Selling the benefits of change –Identifying potential threats and develop scenarios presenting what could take place in the future. Examining opportunities that should be, or could be exploited.
2. Communication– Talk about the change vision, if people have anxieties then address these openly and honestly. Tie in the vision to all areas of the business from training to performance reviews
3. Planning the change – Ensure that all research has been completed; examine the organisational structure, job descriptions, and performance and compensation systems to ensure they are in line with the vision.
4. Analysing progress – After progress has been made analyse what went right and what needs improving. Setgoalsto build on the progress further to ensure that this is measurable this can be completed by using either a SWOT or PESTLE analysis.
A comparison between at least 3 different approaches to managing change
K, Lewin is responsible for introducing force field analysis, which examines the driving and resisting forces in any change situation. The underlying principle is that driving forces must outweigh resisting forces in any situation if change is to happen. The second is about moving to a new state through participation, involvement and internalisation. The third focuses on refreezing and stabilizing the new state of affairs by setting policy, rewarding success and establishing new standards. Driving forces – These are forces which push in a direction that causes change to occur, facilitating change as they push the person in the desired direction. Restraining forces- They are forces that counter driving forces, these hnder change as they push the person on the opposite direction. Equilibrium – This is a state of being where driving forces equal restraining forces and no change occurs. Equilibrium can be raised or lowered by changes between the driving and restraining forces.
Describe 3 behavioural responses seen when change occurs in an organisation.
Fear Of The Unknown – Change often brings with it substantial uncertainty. Employees facing a technological change, such as the introduction of a new computer system, may resist the change because it introduces uncertainty into what was once a comfortable environment. Fear Of Loss – When change is about to occur, some employees may fear losing their jobs, especially where there is a merger or takeover about to happen. Employees may be worried that their operational site will be closed down and the work relocated to another site to save costs or they may fear their roles will become redundant.
Poor Communication – Changes within an organisation start with key decision makers. It is up to them to pass along the details to team members and ensure all questions are answered before changes go into effect. Unfortunately, as news of a change spreads through the senior management, details are sometimes skewed and managers end up receiving second – hand information. Poor communication can therefore cause resistance to change.
Explain at least 3 ways that HR can support individuals during change.
At NCO the HR function is described as being a support function that assists with the operational running of the organisation. Whenever change occurs, the HR function acts as a role model for change, demonstrating the behaviours that create a climate for change which includes communicating clearly any plans for change and developing a change strategy that aids with the implementation. It is also supportive to create a shared vision for the future of change within an organisation, employees are better placed to conform if they understand the benefits of any change which is implemented and understand exactly how this will affect them in there day to day interactions whilst being within their workplace. Encouraging discussion is another way the HR function can support employees, when the change process is implemented team members may experience negative feelings towards this such as surges inanxietyor fear of the unknown.
Opening the lines of honest and open discussion can assist employees put their negative feelings or emotions aside? Employees who have had their voices heard and have had chance to ask questions surrounding the impending change are better placed to conform to change. Communication can also have a positive effect; it has the ability to instil excitement and create the acceptance once the change is fully understood and any questions posed have been answered fully and honestly.
