In today's fast-paced business environment, organisations often face periods of change or crisis that can disrupt the normal flow of operations and impact employee relations. Whether it's a merger or acquisition, restructuring, downsizing, or dealing with a global pandemic, such events can create uncertainty, fear, and anxiety among employees. As HR leaders, it is crucial to effectively manage employee relations during times of change or crisis to maintain a positive work environment, retain talent, and ensure business continuity. In this article, I will explore relevant HR theories and models that can guide HR leaders in effectively managing employee relations during these challenging times.
HR Theories and Models for Managing Employee Relations During Change or Crisis
- Lewin's Change Model: One of the most widely recognised theories in change management, Lewin's Change Model, consists of three stages: unfreeze, change, and refreeze. According to Lewin, change starts with 'unfreezing' the existing mindset or behaviors of employees where HR managers need to create awareness of the need for change and prepare employees for the change followed by implementing the 'change' where HR managers address any resistance or issues that may arise and then 'refreezing' to make the new behavior the new norm (Lewin, 1951). HR leaders can apply this model by communicating the need for change, involving employees in the process, and reinforcing the new behaviors or practices to ensure a smooth transition.
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Lewin’s three-step model for change management (Grube & Wynn, 2020) |
- High-Performance Work System (HPWS) model: During times of change or crisis, the High Performance Work System (HPWS) model can be a valuable approach to manage employee relations effectively. By maintaining a focus on employee engagement, skill development, and continuous improvement, organisations can leverage the HPWS model to enhance employee performance and resilience during challenging times. For example, selective staffing can ensure that employees with the right skills and competencies are in the right roles to adapt to changing circumstances (Huselid, 1995). Extensive training and development programs can equip employees with the necessary knowledge and skills to navigate through changes (Huselid, 1995). Performance-based compensation can motivate employees to strive for excellence, even during challenging times (Huselid, 1995). Employee involvement can foster a sense of ownership and empowerment, leading to increased commitment and dedication (Jiang et al., 2012). Information sharing can enhance communication and transparency, building trust and mitigating uncertainty during times of change or crisis (Huselid, 1995). The HPWS model emphasises the importance of aligning HR practices, such as selection, training, and performance management, with the organisation's strategy and goals (Harjinder et al., 2021). In times of change or crisis, HR managers can use the HPWS model to create a sense of stability and direction for employees by communicating the organisation's strategy, goals, and expectations.
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(Rasool & Nouman, 2013) |
- Communication Process Model: It is crucial for organisations to effectively manage employee relations using the communication process model during times of change or crisis. According to Robbins and Coulter (2012), the communication process model consists of four key components: sender, message, channel, and receiver. To begin, the sender, typically a leader or manager, must clearly articulate the reason for the change or crisis and the intended outcome, using transparent and honest communication. The message must be concise, consistent, and tailored to the needs of the employees, taking into consideration their emotions and concerns during uncertain times. The channel of communication should be carefully chosen, such as face-to-face meetings, video conferences, or written announcements, to ensure the message is effectively delivered to all employees. Finally, the receiver, the employees, should be encouraged to ask questions, provide feedback, and share their perspectives to foster a two-way communication process (Robbins & Coulter, 2012). By utilizing the communication process model, organizations can facilitate open and transparent communication, build trust, and maintain positive employee relations during times of change or crisis.
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(Adili, 2011) |
- Social Exchange Theory: Social Exchange Theory proposes that employees form relationships with their organizations based on a cost-benefit analysis, where they weigh the rewards and costs of their relationship with the organization (Blau, 2017). During times of change or crisis, employees may perceive increased costs, such as uncertainty or increased workload, which can affect their commitment and engagement. HR leaders can use this theory to understand employees' perspectives, address their concerns, and ensure that the rewards of their relationship with the organization outweigh the costs.
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(Margolis, 2017) |
- Psychological Contract Theory: The Psychological Contract refers to the unwritten expectations and obligations that employees believe they have with their employers, which can include job security, career development, and fair treatment (Rousseau, 1989). During times of change or crisis, the psychological contract may be violated, leading to decreased trust and commitment among employees. HR leaders can proactively manage the psychological contract by maintaining transparent communication, addressing concerns, and fulfilling reasonable expectations to foster a positive employee-employer relationship.
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(Kataria) |
Best Practices for Managing Employee Relations during Times of Change or Crisis
Maintain transparent communication: Clear, timely, and honest communication is crucial during times of change or crisis. HR leaders should provide regular updates to employees, address their concerns, and ensure that information is consistent across all communication channels.
Involve employees: Involving employees in the change or crisis management process can help them feel empowered and invested in the outcome. HR leaders should seek input from employees, provide opportunities for them to participate in decision-making, and recognise and reward their contributions.
Provide support: Change or crisis can create stress and anxiety among employees. HR leaders should offer support through Employee Assistance Programs (EAPs), counseling services, or other resources to help employees cope with the situation.
Be empathetic: Show empathy and understanding towards employees' emotions and concerns during times of change or crisis. HR leaders should actively listen to employees, acknowledge their feelings, and validate their experiences, and offer support and reassurance.
Foster a positive work culture: During times of change or crisis, maintaining a positive work culture is crucial. HR leaders should promote a culture of trust, transparency, and inclusivity, where employees feel safe to express their concerns and opinions without fear of retaliation. Recognising and rewarding employees for their efforts and contributions can also boost morale and engagement.
Provide training and resources: Change or crisis situations may require employees to learn new skills or adapt to new processes. HR leaders should provide adequate training and resources to help employees acquire the necessary knowledge and skills to navigate through the changes effectively. This can include workshops, online resources, and on-the-job training.
In conclusion, managing employee relations during times of change or crisis is a critical responsibility for HR leaders. By applying relevant HR theories and models, HR leaders can effectively navigate through these challenging times. Implementing best practices can help organisations successfully manage employee relations during times of change or crisis. By prioritising employee well-being, engagement, and trust, HR leaders can ensure business continuity and build a resilient and motivated workforce.
References:
Adili, J. (2011) Communication process model: an interpersonal perspective. [Blog entry] 4 March. Available at: http://managementandenglish.blogspot.com/2011/03/communication-process-model.html [Accessed o 13.04.2023].
Blau, P. (2017) Exchange and power in social life. [Online] Oxon: Routledge. Available at: https://www.taylorfrancis.com/books/mono/10.4324/9780203792643/exchange-power-social-life-peter-blau [Accessed on 12.04.2023].
Grube, M. & Wynn, M. ((2020) Managing process change and standardisation in ERP projects: an assessment of the SAP template approach. International journal on advances in intelligent systems, 13(1 & 2) pp 48-58. [Online] Available at: https://www.researchgate.net/publication/342883322_Managing_Process_Change_and_Standardisation_in_ERP_Projects_An_Assessment_of_the_SAP_Template_Approach [Accessed on 12.04.2023].
Harjinder, K. et al. (2021) Impact of high-performance work-system (HPWS) on employee-performance: a case study. Studies in business and economics, 16(20 pp 111-126. [Online] Available at: https://sciendo.com/es/article/10.2478/sbe-2021-0028 [Accessed on 11.04.2023].
Huselid, M. (1995) The impact of human resource management practices on turnover, productivity, and corporate financial performance. Academy of management journal, 38(3) pp 635–872. [Online] Available at: https://www.markhuselid.com/pdfs/articles/1995_AMJ_HPWS_Paper.pdf [Accessed on 11.04.2023].
Jiang, K. et al. (2012) How does human resource management influence organizational outcomes? A meta-analytic investigation of mediating mechanisms. Academy of management journal, 55(6) pp 1264–1294. [Online] DOI: 10.5465/amj.2011.0088 .
Kataria, P. Psychological contract trends- behavioral implications on employees working in financial sector. Transdisciplinary international journal of academic research, pp 16-22. [Online] Available at: http://tijarjournal.com/wp-content/uploads/2020/09/3rd-Chapter-Pushpa-Kataria.pdf [Accessed on 13.04.2023].
Lewin, K. & Cartwright, D. (ed.) (1951) Field theory in social science: Selected theoretical papers. [Online] New York: Harper & Brothers Publishers. Available at: https://ia802905.us.archive.org/4/items/in.ernet.dli.2015.138989/2015.138989.Field-Theory-In-Social-Science-Selected-Theoretical-Oaoers.pdf [Accessed on 12.04.2023].
Margolis, S. (2017) Putting forth extra effort: social exchange theory and engagement. [Online]. Engage.retain.prosper. Available at: https://engageretainprosper.com/social-exchange-theory-and-engagement/ [Accessed on 13.04.2023].
Rasool, B. & Nouman, M. (2013) Measuring the extent of a high performance work system: a mixed methodology approach. Pakistan journal of commerce and social sciences, 7(3) pp 628-645. [Online] Available at: http://www.jespk.net/publications/151.pdf [Accessed on 12.03.2023].
Robbins, S. & Coulter, M. (2012) Management. 11th edition. [Online] New Jersey: Pearson Education. Available at: https://cdn.website-editor.net/25dd89c80efb48d88c2c233155dfc479/files/uploaded/management-11th-edn-by-stephen-p-robbins-mary-coulter-pdf.pdf [Accessed on 13.04.2023].
Rousseau, D. (1989) Psychological and implied contracts in organizations. Employee responsibilities and rights journal, 2(2) pp 121-139. [Online] Available at: https://edisciplinas.usp.br/pluginfile.php/1769959/mod_resource/content/2/texto%2010%20-Denise%20Rousseau_Psychological%20and%20Implied%20Contracts%20in%20Organizations.pdf [Accessed on 13.04.2023].
The article provides a thorough insight into the effective management of employee relations during times of change or crisis. The article highlights several HR theories and models that HR leaders can use to manage employee relations effectively. One such theory is Lewin's Change Model, which consists of three stages: unfreeze, change, and refreeze. HR leaders can apply this model by communicating the need for change, involving employees in the process, and reinforcing the new behaviors or practices to ensure a smooth transition. (Lewin, 1951). Furthermore, the High-Performance Work System (HPWS) model can be used to maintain a focus on employee engagement, skill development, and continuous improvement during challenging times. Selective staffing, extensive training and development programs, performance-based compensation, employee involvement, and information sharing are some of the key components of this model (Huselid, 1995). Finally, the Communication Process Model can be used to effectively manage employee relations by ensuring clear communication and transparency during times of change or crisis. (Robbins and Coulter, 2012).
ReplyDeleteThank you for your comment Hassaan. I'm glad to hear that you found the article insightful in terms of effective employee relations management during times of change or crisis. Indeed, the article discusses several HR theories and models that HR leaders can utilise for this purpose, including Lewin's Change Model, the High-Performance Work System (HPWS) model, and the Communication Process Model. Lewin's Change Model can ensure a smooth transition during times of change (Lewin,1951). HPWS can help HR leaders maintain a focus on employee well-being and performance during challenging times (Huselid, 1995). Communication Process Model can be instrumental in managing employee relations during change or crisis by emphasising clear communication and transparency (Robbins & Coulter, 2012). Open and effective communication can help mitigate uncertainty, build trust, and manage potential resistance among employees.
DeleteA descriptive article.
ReplyDeleteMy question is regarding the "Lewin's Change Model".
This model assumes that all people will respond in a similar way to change, but in reality, individuals have different attitudes, values, and personalities that affect how they react to change. (https://www.calendar-uk.co.uk/faq/what-is-the-weakness-of-lewins-change-model)
What is your view on the same?
Thank you for your comment on my blog article Nadeer. I appreciate your thoughts on Lewin's Change Model. It's true that Lewin's Change Model assumes that all individuals will respond similarly to change. However, it's important to acknowledge that individuals have unique attitudes, values, and personalities that can influence their reactions to change. Research suggests that individual differences play a significant role in how people perceive and adapt to change (Cameron & Green, 2015). For example, studies have found that personality traits, such as openness to experience and emotional stability, can impact how individuals respond to change (Oreg, Vakola, & Armenakis, 2011). Additionally, an individual's prior experiences, beliefs, and cultural background can shape their perception of change (Bamford & Forrester, 2003). Therefore, it's essential to consider the unique characteristics of individuals when implementing change initiatives in organisations. While Lewin's Change Model is a widely recognised framework for understanding change, it's important to recognise that individuals have diverse attitudes, values, and personalities that can impact their responses to change. Taking into account individual differences can help organisations better understand and manage the challenges associated with change. I hope this response provides a deeper perspective on Lewin's Change Model.
DeleteThank you for sharing information Lasni . The role of the HR is to ensure that staff are adequately prepared for crises through training, effective leadership and empowerment, ensuring that security and safety initiatives are taken to protect employees in the event of a crisis and developing communication plans necessary in promoting crisis management . HR can play a dual role in change management by initiating and leading the change and by serving as a facilitator for changes that other leaders and departments initiated. The HR department performs a variety of functions associated with the communication, implementation and tracking of major changes. Crisis Management prepares the individuals to face unexpected developments and adverse conditions in the organization with courage and determination. Employees adjust well to the sudden changes in the organization. Employees can understand and analyze the causes of crisis and cope with it in the best possible way.
ReplyDeleteThank you for your thoughtful comment. You're absolutely right about the important role of HR in crisis management. Ensuring that staff is prepared for crises through training, effective leadership, and empowerment is crucial, as is taking steps to protect employees' security and safety during a crisis. Developing communication plans and serving as a facilitator for changes initiated by other leaders and departments are also key responsibilities of HR in change management. I agree that crisis management prepares individuals to face unexpected developments and adverse conditions in the organisation with courage and determination. It's important for employees to be able to understand and analyse the causes of a crisis and cope with it in the best possible way. Thank you for highlighting these important points.
DeleteInteresting article, Lasni. In your opinion, which of the theories and models which you have explored above are ideal in situations such as the COVID-19 pandemic, in terms of responding efficiently?
ReplyDeleteThanks for engaging with my article Thanuki. I think the Lewin's Change Model, Communication Process Model, and High-Performance Work System (HPWS) model can be particularly useful in responding efficiently to the COVID-19 pandemic, as they provide frameworks for addressing change, communication, and organisational performance during challenging and dynamic situations. While the Social Exchange Theory and Psychological Contract Theory are relevant in the broader context of organisational behavior and relationships, they may not be as directly applicable to responding to the immediate challenges and dynamics of the COVID-19 pandemic. However, aspects of these theories, such as maintaining trust, reciprocity, and fairness in relationships between employers and employees, can still be important considerations in managing the impact of the pandemic on the workplace.
DeleteThis insightful and educational article on managing employee relations during times of change or crisis is written for you, the reader. In order to manage employee relations during times of change or crisis, which is a crucial component of business operations, the author emphasises the importance of HR theories and models.
ReplyDeleteThank you for your thoughtful Niluka. I'm glad you found the article insightful and educational. Managing employee relations during times of change or crisis is indeed a critical aspect of effective business operations. HR theories and models can provide valuable guidance in navigating these challenging situations. By understanding and applying HR theories and models, HR professionals can effectively manage employee relations and ensure that employees feel supported during times of change or crisis. These theories and models can help HR professionals anticipate and address potential challenges, communicate effectively with employees, and implement strategies to maintain positive employee relations.
DeleteWell organized article. Psychological contract theory is a challenging concept as it could vary based on mental abilities, beliefs and approaches of individuals. If an organization can really establish such connection with its employees, it would be a great achievement. Agree?
ReplyDeleteThank you for your comment and for sharing your thoughts on psychological contract theory Rifak. You are correct that establishing a psychological contract with employees can be a challenging concept as it can vary based on individual beliefs and perceptions. However, research has shown that organisations that are successful in establishing a positive psychological contract with their employees can reap significant benefits, including increased job satisfaction, commitment, and performance (Rousseau, 1995). Furthermore, a study by Robinson and Morrison (2000) found that organisations that prioritise the fulfillment of their employees' psychological contracts are more likely to have a committed and engaged workforce. By creating a positive psychological contract, organisations can foster a sense of mutual obligation between the employer and employee, which can lead to increased motivation, loyalty, and productivity. While psychological contract theory is complex and challenging to establish, the potential benefits for organisations that can successfully implement it are significant.
DeleteThe article provides a comprehensive overview of the HR theories and models that can guide HR leaders in managing employee relations during times of change or crisis. It highlights the importance of maintaining a positive work environment, retaining talent, and ensuring business continuity during challenging times. The use of models such as Lewin's Change Model, the HPWS model, the Communication Process Model, Social Exchange Theory, and Psychological Contract Theory provides a structured approach to managing employee relations. The article also offers best practices for HR leaders to follow when dealing with change or crisis. Overall, the article provides useful insights and practical tips for HR leaders in managing employee relations during difficult times.
ReplyDeleteHowever, one limitation of the article is that it does not explore the potential negative impact of HR practices on employees during times of change or crisis. For example, selective staffing may lead to a sense of insecurity among employees, and performance-based compensation may result in increased competition and stress. It is essential to consider the potential drawbacks of HR practices to ensure that they do not negatively impact employees' well-being and mental health during challenging times.
My question to you Lasni, What are some potential negative consequences of the High-Performance Work System (HPWS) model on employees during times of change or crisis?
Thank you for your feedback on my article and for raising an important point about the potential negative impact of HR practices on employees during times of change or crisis George. It is crucial for HR leaders to consider the potential drawbacks of HR practices to ensure that they do not harm employees' well-being and mental health. Regarding your question about the potential negative consequences of the High-Performance Work System (HPWS) model on employees during times of change or crisis, there are a few. The HPWS model emphasises performance-based rewards, which can lead to increased competition and stress among employees (Appelbaum et al., 2000). This may be particularly challenging during times of change or crisis when employees may already be feeling uncertain and anxious. Additionally, the HPWS model places a strong emphasis on employee involvement and participation in decision-making, which can be time-consuming and may not be feasible during times of rapid change or crisis (Appelbaum et al., 2000). This can lead to employees feeling overwhelmed or frustrated with the process and can contribute to a sense of disengagement from the organisation. The HPWS model can also lead to increased workload and pressure on employees, particularly if they are expected to take on additional responsibilities during times of change or crisis (Bloom et al., 2010). This can contribute to burnout and may ultimately lead to decreased productivity and performance. To mitigate these potential negative consequences of the HPWS model during times of change or crisis, HR leaders can ensure that performance-based rewards are balanced with other forms of recognition and support, such as employee assistance programs or mental health resources. They can also consider streamlining decision-making processes to reduce the burden on employees and prioritise communication and transparency to help employees feel engaged and informed (Appelbaum et al., 2000). I hope this response has been helpful.
DeleteI appreciate how you have highlighted the importance of effective employee relations during periods of change and provided practical strategies for managing these relationships. Your examples and tips were easy to understand, making this a valuable resource for HR professionals.
ReplyDeleteI would like to suggest you to provide tips on how to assess the effectiveness of employee relations strategies and make improvements as necessary would be beneficial for readers. Hope to see some of those in your future blogs!
Thank you for your valuable feedback and suggestion on my article Prasadi. I am glad that you found the article useful, particularly with the practical strategies for managing employee relations during times of change. Assessing the effectiveness of employee relations strategies is indeed an essential step in improving the organisation's performance and employee engagement. I will consider your suggestions in my future articles. Thank you again for your valuable input.
DeleteI like how you stressed the significance of excellent employee interactions during times of transition and gave practical solutions for managing these connections. Your examples and recommendations were simple to grasp, making this a useful resource for HR practitioners.
ReplyDeleteThank you so much for taking the time to read my article and for sharing your positive feedback ashkar. I am glad to hear that you found the article helpful and that the examples and recommendations provided were easy to understand. Indeed, managing employee interactions during times of transition is crucial for the success of any organisation.
DeleteGreat article! Managing employee relations during times of change or crisis is critical for maintaining productivity, morale, and a positive work environment. It requires a proactive and empathetic approach, with a focus on clear communication, support, and involvement of employees in the process.
ReplyDeleteThank you for the feedback Chathura. I completely agree with you that managing employee relations during times of change or crisis is crucial for maintaining productivity, morale, and a positive work environment. As you mentioned, communication, support, and involvement of employees are essential components in this process. By providing these elements, HR professionals can help employees feel supported and valued, leading to increased engagement and ultimately contributing to the overall success of the organisation.
DeleteThe article highlights the importance of effective employee relations management during times of change or crisis to maintain a positive work environment, retain talent, and ensure business continuity. You have explored various HR theories and models that HR leaders can apply, such as Lewin's Change Model, the High-Performance Work System (HPWS) model, the Communication Process Model, Social Exchange Theory, and Psychological Contract Theory. The article also provides best practices for managing employee relations during challenging times, including maintaining transparent communication, involving employees, and providing support and resources. Overall, this article provides valuable insights for HR leaders to manage employee relations effectively during times of change or crisis, ultimately leading to a positive and productive work environment.
ReplyDeleteThank you for your comment Sarah. I agree that effective employee relations management is critical during times of change or crisis to maintain a positive work environment and ensure business continuity. I'm glad you found the exploration of various HR theories and models, such as Lewin's Change Model, the HPWS model, the Communication Process Model, Social Exchange Theory, and Psychological Contract Theory, helpful.
DeleteValuable article Lasni. As many organisations struggle to adapt, plan and deliver the changes COVID-19 has brought, the key is to evolve beyond crisis management and drive transformation. Investment in IT infrastructure has been driven by the desire to support mobile workforces and secure data and systems. However, it’s not just remote working practices that can benefit from digital transformation.
ReplyDeleteEvery business function is now under scrutiny with directives to streamline efficiencies and put robust practices in place, which will inevitably improve resilience, flexibility and employee engagement. We're seeing an incredible acceleration in the adoption of automation and AI; initiatives which help to mitigate the risks associated with people-intensive parts of a business.
The current crisis has presented people professionals with a host of opportunities for long-term change. The term Transformation Management Office (TMO) is on the increase as businesses look to manage longer-term operational change, and adopt programmes which create more agile digital businesses which are built to respond to challenges and the effects of the COVID-19 crisis.
One thing this situation has demonstrated to many is how quickly process changes can happen. New practices which may previously have taken years to embed have been implemented into practice in a matter of weeks. The shifting paradigm that digital transformation has to be a difficult and lengthy process has been shattered and organisations who keep this momentum going will find themselves coming out stronger.
Time and resources are often the two main showstoppers when looking to adopt a new system, and we're experiencing many transformation projects re-ignited with vigour, through a renewed energy and understanding of how quickly you really can make things happen.
Thank you for your valuable comments on my article Ridma. You have rightly pointed out that the COVID-19 crisis has accelerated the adoption of digital transformation in organisations, and it has presented people professionals with several opportunities for long-term change. As you mentioned, investment in IT infrastructure is crucial in supporting mobile workforces and securing data and systems. However, digital transformation is not limited to remote working practices. It can streamline efficiencies, improve resilience, flexibility, and employee engagement in all business functions. The current crisis has shattered the notion that digital transformation has to be a difficult and lengthy process. It has demonstrated how quickly process changes can happen, and organisations that keep this momentum going will emerge stronger. The term Transformation Management Office (TMO) is also gaining popularity, which will help businesses manage longer-term operational change and create more agile digital businesses that can respond to challenges and the effects of the COVID-19 crisis. You are absolutely right that time and resources are often the two main challenges when adopting new systems, but we are experiencing many transformation projects re-ignited with renewed energy and understanding of how quickly things can happen. Thank you again for your insightful comments on this topic.
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