Change Impact on Human Resources at JCPenny

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Table of Contents

Organizational Change
Change Impact on Human Resources
Staffing and employee training
Performance management
Management development and talent management
Employee communication, engagement and productivity
Compensation and rewards
Conclusion
References

Organizational Change

Human resources are believed to be the most significant organizational asset, however, many businesses are yet to fully utilize its potential. Utilization of this potential or its lack is directly dependent on the overall leadership (Gareth & George, 2011).

Today, business is shifting from a culture of management to that of leadership. To fully utilize its human capital and survive stiff competition, businesses must embrace strategic leadership. Only businesses led by competent and strategic oriented persons stand a higher chance of their surviving (Vecchio, 2007).

Change Impact on Human Resources

Business success is directly dependent on its leadership (Mullins, 2010). Since HR plays a critical function in business, practices that negatively impact employees must be avoided. Leadership practices must have strategic direction. A well-developed and fully utilized workforce is a source of competitive advantage (Armstrong & Baron, 2002). Leadership impacts human resources in various ways, in particular:

Staffing and employee training

According to Dunford & Akin (2008), businesses look for strong leadership skills when staffing because employees are a source of competitive advantage. Effective leadership can greatly improve the effectiveness of training and enhance organizational knowledge (Hislop, 2009). Changes in organizational processes necessitate the need for training. Since some employees are naturally resistant to change, strong leadership is needed to implement new systems and communicate their overall benefits to employees (Clegg et al, 2011).

Performance management

Spector (2012) has observed that effective leaders use objective performance appraisal systems and implement appropriate technologies in order to improve business operations. For instance, HR practitioners today use bio-metric attendance registers and Enterprise Resource Planning (ERP) systems to manage employee data. Job changes, such as transfers, promotions and demotions can easily be effected from the same database.

Management development and talent management

Businesses are increasingly going international. Strong and effective leadership is required to make decisions on issues like restructuring, strategic partnerships and succession planning. Vecchio (2007) has emphasized the fact that international business requires effective talent management strategies to ensure long term survival of the business in its international engagements.

Employee communication, engagement and productivity

Businesses are increasingly striving to align their staffing processes with organizational strategies in order to hire only the right employees (Spector, 2012). HR practitioners must measure employee engagement and productivity. Employee engagement and motivation is done by implementing the right policies and procedures. Competent leaders equally implement appropriate technology to improve communication systems for quality decision making (Northouse, 2012).

Compensation and rewards

Successful companies seek to be market leaders in the area of compensation to attract potential employees and curb turnover (Armstrong & Baron, 2002). With the right leadership in place, HR practitioners can use Employee Self Service (ESS) systems to keep updated employee data. Such HR-IT solutions reduce the number of employees required to perform a job. This leads to cost reductions and, consequently, cost advantages to the business.

Conclusion

Leadership enhances organizational success. With changing technology, customer sophistication and globalization, todays business is very competitive (Quick & Nelson, 2013). Thus, the success of the business depends on its leadership. Strong leadership must be manifested in all the HR functions within the business.

In order for the business to be competitive, there should be a strong focus on leadership and not merely management (Spector, 2012). HR practitioners must provide leadership and develop strategies that promote efficiency and effectiveness.

References

Armstrong, M., & Baron, A. (2002). Strategic HRM: The route to improved business performance. London: CIPD.

Clegg, S., Kornberger, M., & Pitsis, T. (2011). Managing and organizations: An Introduction to Theory and Practice (3rd ed.). London: Sage.

Dunford, R., & Akin, G. (2008). Managing organizational change: A Multiple Perspectives Approach (2nd ed.). McGraw-Hill/Irwin.

Gareth, J. R., & George, J. M. (2011). Contemporary management (7th ed.). New York: McGraw-Hill/Irwin.

Hislop, D. (2009). Knowledge management in organizations: A critical introduction. Oxford: Oxford University Press

Mullins, L. J. (2010). Management and organisational behaviour. Financial Times/Prentice Hall.

Northouse, P. G. (2012). Leadership: Theory and practice (6th ed.). Sage Publications, Inc.

Quick, J. C., & Nelson, D. L. (2013). Principals of organisational behaviour: Realities and challenges (8th ed.). South Western, Cengage Learning.

Spector, B. (2012). Implementing organizational change-theory into practice (3rd ed.). Prentice Hall.

Vecchio, R. P. (2007). Leadership: Understanding the dynamics of power and influence in organizations (2nd ed.). University of Notre Dame Press.

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