Course Name:

Human Resource Management (MA)

Module Name:
Behaviour, Culture and Change

Assignment Title:
A-List Case Study

Word Count (excluding references):

2747
Introduction

An organisations ability to adapt to the ever-changing environment is a great competitive

advantage (CIPD, 2021; Hussain et al., 2018). The Covid-19 pandemic tested organisational

agility and although A-list adapted and thrived off of the online sales they have since

appeared to struggle with the return to normality and are now implementing a change

programme to minimise negative business outcomes. The successfulness of the change

programme can be influenced by the communication used and HR policies in place (CIPD,

2022a).

The aim of this report is to assess the impact of the proposed change programme on current

staff members in the administrative team and their potential response to it, advise on how

best to communicate with the administrative team and suggest HR Strategies that can

support the change process effectively and create a change ready culture for the future.

The impact of the changes on the administrative team

Significant strategic and operational changes are occurring at A-list including staff

reductions and restructuring roles. The impact on those being made redundant is likely to

be significant as they are losing their job, but the change is also likely to have a significant

impact on those who are staying, the ‘survivors’. The survivors may have an increased

workload and with little time to learn the required skills, this could result in stress and

reduced productivity (Halton, 2021). Other effects on the survivors include; a decrease in

trust and commitment, low morale and poor communication (Kulkarni, 2008). Mark

Hemming discusses eight personality types that can affect the change programme (Charef,

2020). The impact of the change may differ depending on the individual employees’
circumstances or personality. The firm’s owner and Team Leader should speak with each

employee to understand the impact of the change. This should allow for predictions of how

the employees may respond and potentially give the opportunity to address concerns and

reduce the effects of negative responses.

The administrative team’s potential response to the change

Predicting employees’ reactions to the change is important for the successfulness of the

change (Wang & Kebede, 2020). The Kubler Ross Change Management Framework

describes the experience of grief and can be useful when trying to understand what the

employees will experience during the change (Rosenbaum, More & Steane, 2018). Common

reactions to organisational change include; confusion, anger, stress, excitement and

disappointment (Abbas, 2021a). At A-List, motivation is low due to the pressures of covering

for vacancies, therefore, the downsizing is unlikely to be welcomed by the team potentially

leading to resistance.

Resistance

Research by Kanter (2012) indicates that resistance can be caused by a number of changes

occurring simultaneously. This is demonstrated at A-list with the downsizing and

restructuring of roles. Signs of resistance that A-List’s owner should be aware of include; low

productivity, gossip and poor communication (Abbas, 2021b). Resistance is not always

bottom up (Panorama Consulting Group, 2021), therefore, the firm’s owner should secure

buy-in from the team leader before communicating and implementing the change, as the

team leader could influence the response from the administrative team.
Employee resistance is traditionally seen as something to overcome as it can cause

negativity, slow down the change and cause conflict (Lawrence, 1969). Research indicates a

curvilinear relationship between conflict and performance, so A-List’s owner should not

automatically see conflict as something to be addressed but should instead monitor conflict

(De Dreu, 2006).

Employee resistance is a common reason given for the failure of a change programme, with

some change managers giving it as a reason to ensure they don't look bad (Ford & Ford,

2010). A-List’s owner and administrative team leader should be aware that resistance can

provide valuable information on how the change implementation can be improved.

Resistance can indicate that the change may need to be reviewed due to it not aligning with

the culture and values (CIPD, 2021). Blaming employee resistance can be counterproductive

as it can break down good professional relationships and trust (Ford & Ford, 2010).

O’Connor (1993, cited by Rusike, 2019) identified four extremes of resistance and noted

that “protestors” are overt resistors who are easiest to deal with as they vocalise their

concerns. It is important that the firm’s owner is also aware of “survivors”, “saboteurs” and

“zombies” as their resistance may be less obvious at first. People tend to feel

psychologically safe in an environment where they feel respected and comfortable to be

themselves (Whitelock, 2018). The level of resistance could be influenced by psychological

safety, for example, a saboteur in an environment with high psychological safety may be

more likely to present as a protestor.

Neuroscience and Change

Using insights about neuroscience could help the firm’s owner understand the employee’s

potential reactions (CIPD, 2014). Our brain likes predictable situations, therefore, during

change the uncertainty can be perceived as a threat and trigger the ‘fight or flight’ response

(Cherry, 2018). The reduction in staffing at A-list may cause employees to feel stressed and

uncertain about their future. In Maslow’s Hierarchy of Needs theory, safety represents the

2nd tier (Jerome, 2013), highlighting the importance of security of employment. This could

lead to employees being less cooperative due to having anxiety and narrowed focus. The

firm’s owner could reduce the effects of the ‘fight or flight’ response by being transparent,

supportive, listening and preparing the employees for the change as much as possible

(Measom, 2023).

Power and Motivation

The administrative team’s response may depend on their motivation and power to block the

change. If an employee has little power and motivation, then they are unlikely to have a

significant impact on the change. If an employee has high motivation and power then they

could have a significant impact (Senior et al., 2020). An individual’s motivation to resist

change could be influenced by whether the content or process of the change negatively

affects them (CIPD, 2021). The individual employees may not have much power but

collectively, they could cause problems. At A-list, the firm’s owner should consider the

power of the Team Leader as they could influence the employees they are line managing

(Hayes, 2022). French and Raven (1959, cited by Senior et al., 2020) identified five sources

of power. The firm’s owner is likely to have coercive, reward and legitimate power but it is

not clear whether the firm’s owner has expert and referent power.
Communicating During Change

The change communication strategy will depend on the sensitivity of the information,

reason for the change and the location and dispersal of the workforce. If there is an

employee nominated representative, then the firm’s owner should liaise with them in order

to build trust (Erb, 2011).

By conducting a stakeholder analysis, the firm’s owner can identify how the change will

affect them, how much power and influence they may have to block the change and how to

communicate with them in order to secure buy-in (Hoory & Bottorff, 2022). At A-list, a key

stakeholder group are the administrative team. The stakeholder analysis may help the firm’s

owner decide how to use persuasion and influencing skills to appeal to the administrative

teams rational and emotional centre (Rick, 2017).

The fourth step in Kotter’s change management theory (Hole, 2021) is to communicate the

vision with everyone involved in the change to get them on board and ensure they know

their role. In addition to this, O’Connor (1993 cited by Rusike, 2019) suggests a common

reason for resistance as lack of information about the change. This highlights the important

of the firm’s owner communicating positively and providing enough information for

employees to understand the need and importance of the change. Although there may be

certain information that cannot be shared due to confidentiality, it is important for the

firm’s owner to be as open and honest as possible. The ‘withhold and uphold’ method in

Clampitt et al’s model (Hayes, 2022; Clampitt, DeKoch & Cashman, 2000) refers to
maintaining secrecy and power but this could lead to people making assumptions and

spreading rumours.

Efficiency and Effectiveness of Communication

When deciding on the channel of communication, the firm’s owner should consider the

dispersal of the team. If the team are dispersed, then online channels should be used. The

firm’s owner should maintain a two-way dialogue so that employees can express their views

(Hayes, 2022). The ‘Underscore and Explore’ method in Clampitt et al’s method has the

highest effectiveness of communication in the model (Hayes, 2022; Clampitt, DeKoch &

Cashman, 2000) as it allows for 2-way communication and bottom up feedback. The weekly

team meetings should be reinstated, and the frequency could be increased to further

facilitate the 2-way dialogue.

Using emails, the firm’s owner could quickly disseminate information, but the directionality

would be 1-way. Clampitt et al’s five communication strategies imply that the ‘Spray & Pray’

method allows for a large amount of information to be transferred but has low effectiveness

(Hayes, 2022; Clampitt, DeKoch & Cashman, 2000). This should therefore not be the only

method used for the administrative team but could be used in combination with the team

meetings where feedback could be obtained.

Providing Support and Employee Voice

News of a downsize may increase performance as people try to keep their job or it could

reduce productivity due to uncertainty (Haddon, 2017) and people looking for work

elsewhere. This could result in lack of engagement in the change highlighting the
importance of the firm’s owner remaining available and encouraging employee voice. The

firm’s owner should avoid creating a climate of silence where employees do not feel safe to

share their thoughts and therefore creating a barrier to the change (Morrison & Milliken,

2000).

In Kotter and Schlesinger’s model, the first two methods for overcoming resistance to

change are education and communication and participation and involvement (Kotter and

Schlesinger, 2008). The speak up guideline in Rosabeth Moss Kanter’s Management Theory

(Martin, 2016) further supports this. For example, asking the employee’s how they would

like to be communicated with and the frequency could give a sense of ownership in how the

change is being managed.

During a downsizing, communication is important due the personal impact on employees,

the complexities of redundancies and the costs of a claim if mistakes occur (Citizen’s Advice,

2023; BrightHR, 2023). If managers focus their time and communication on helping those

being made redundant secure work elsewhere, this could lead to the ‘survivors’ not

receiving the required support to cope with the changes (Schofield, 2021). This could lead to

the ‘survivors’ leaving. The firm’s owner should ensure that all affected employees are

supported through 1 to 1s. By providing support and practicing transparency, this could

build trust and improve the psychological contract and could therefore encourage employee

voice and engagement (Gottschalk, 2013).

Content of Communications

The SPACES model by Scarlett (2019) sets out factors based on neuroscience that influence

a person’s engagement and motivation. This could be a useful model for the firm’s owner

when considering the content of the communications. The content of the communications

and the channels used will depend on the stakeholder group. A goal in the ADKAR change

management model is ensuring everyone in the organisation understands the need for

change (Angtyan, 2019). All people who work at A-list, including the salon workers, should

be made aware of the changes. As the change should not significantly impact on the salon

workers, an email summarising the changes may suffice. In contrast, the administrative

team are likely to require detailed information on the reasons for the change and how

decisions are being made so that they feel fairly treated.

By following the above, the firm’s owner should be able to increase buy-in, reduce

resistance and reduce the chances of a claim and a negative reputation that could have

knock on effects on A-list.

HR Strategies to Support Change

Human Resource (HR) strategies and policies send a powerful message to employees about

the organisational goals and the expected behaviours (CIPD, 2022a). During change, HR

policies and procedures can be used to influence behaviour. Lewin’s change management

model highlights the importance of “refreezing” the new changes (Lewin (1947) cited by

Hussain et al., 2018). As A-list does not have a HR team, the firm’s owner should work with a

HR consultant who will be able to identify barriers to the change, organise the required

training and support to embed the change (Franckeiss, 2018). Involving HR from the start of
the change will allow them to identify the possible barriers to the change and give time to

reduce these forces by organising training for example. The HR consultant could also train

line managers as how employees experience the policies is mediated by the line managers

delivery. How the HR consultant supports the change may depend on their HR management

style. Legge’s HR Innovator Model implies that there are two types of HR innovators;

conformist and deviant innovator (Legge, 1978, cited by Thill, Venegas & Groblschegg 2014).

Termination

The firm’s owner should consider alternatives to termination including redeployment

(BrightHR, 2023) to the salon’s, for example as a reception worker. At A-List, how the

redundancy process is managed could affect the successfulness of the change. The firm’s

owner could ask if there are people who would like to volunteer for redundancy. Where

possible, settlement agreements (ACAS, 2018) could be offered to those with the power and

motivation to block the change. This could reduce the force against the change.

Learning and Development (L&D)

The Kubler Ross Change Curve (Rosenbaum, More & Steane, 2018) implies that

performance and self-confidence can dip after the initial shock of the change. L&D may be

crucial in the successfulness of the change (Franckeiss, 2018) as the survivors at A-List may

require the skills of those leaving to ensure competency and rebuild their confidence. The

firm’s owner should conduct a skills gap analysis to identify the training required. In addition

to this, the Team Leader may also require training in conflict resolution and how to manage

people going through change. The firm’s owner could also identify those keen to take on

more or different responsibilities to develop skills.

Reward

Vrooms Expectancy Theory implies that effort is linked to the likeliness of reward (Vroom

(1964) cited by Van Eerde and Thierry, 1996). At A-list, as redundancies are being made due

to finances, a pay increase may not be a viable option. The firm’s owner should conduct a

survey to ask the administrative team what type of reward would motivate them. This could

help them to feel that they have a voice in the management of the change and may increase

motivation and retention (CIPD, 2022b). The firm’s owner could consider increased annual

leave, flexible working hours, reduced working hours or fun team events. If reward is based

on performance, then the firm’s owner should ensure that performance measurement is

clear and transparent as this builds trust and contributes to engagement and increased

performance (Done, 2019).

Change Ready Culture for the Future

According to the McKinsey’s 7S Framework the company’s values can influence all other

aspects of how the organisation runs (Jurevicius, 2023). The firm’s owner should ensure that

the company’s values align with A-Lists strategic goals as the values signal expectations and

influence culture (Jurevicius, 2023). When preparing for future changes, the firm’s owner

should review learnings from previous changes. Policies should have consistent ques, be in

line with the values and should be fairly implemented. Goal setting should include goals that

are consistent with business goals as this could help employees to feel a part of the

achievements and boost performance (Ryba, 2020). Continued efforts should be put in to

build a culture in which people feel psychologically safe.

Resourcing

The firm’s owner may need to introduce a freeze on recruitment but should consider the

resourcing strategy to create a change ready culture in the future (Etzkorn, 2021). The firm’s

owner could review selection criteria in line with the values and consider who and where to

recruit people from. For example, apprentices or experienced people. If financially viable,

the firm’s owner could hire a permanent HR professional to support with future changes.

Conclusion

In conclusion, the change programme at A-list could have a significant impact on those

being made redundant and the survivors. By understanding the potential responses, the

firm’s owner can adapt communications to increase employee buy-in, reduce the forces

against the change and minimise negative business outcomes. There are a number of HR

policies and procedures that can influence the successfulness of change. These should be in

line with the organisations values and goals to create a change ready culture for the future.
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