Understanding the Cost of Change and HR Impact in Organizational Transformation

Hi friends,

I am working on a small report to figure out the cost of change, more specifically the factors to be included in this Cost of Change Calculation. When I am referring to change, I am looking at any large-scale organization-wide change. It could be a change in the organization's style of working (legacy system of functional silos to process-centric enterprise, ERP implementation, modernization and computerization, or outsourcing).

Such organizational change will have a significant impact on the human resources of the company. I am looking at the impact on people and the cost factors associated with them. I would like to have the thoughts of CiteHR members on this topic. I would keep adding to it too, hoping to have a fruitful discussion on this topic.

...shoOOonya...

Dear Colleagues,

Talking about the Cost of Change - this would include, but not be limited to, the following:

Personnel: In any given Change Process, those who feel it most are the people. Some would stay, some would certainly voluntarily go - hence, this is a loss when consideration is taken of training and experience gathered over the years.

Time: Change would not be effective without giving it time to materialize - the waiting time is part of the Cost of Change to the Company.

Technology Adaptation: Apart from time, the process of learning a new technology or procedure and allowing people to make their mistakes before they catch up is another kind of cost to the Company. Consideration must be given to the fact that during induction/exposure to new machines, these could be damaged.

Loyalty/Emotive: There could be misgivings on the part of Management, thinking they have made the right decision in the process of Change. For instance, an Accountant is moved to Facility Management and probably does not really want that movement. At that point, he starts having a "job" as against a career - the Company has lost within.

Thanks.

Change is permanent in this world. I would like to provide some information about the ongoing changes in the field of technology. The world is progressing rapidly, and technology is streamlining processes and saving time.

When it comes to technology, there is a quote that states, "In six months, technology doubles or the price reduces by half." Therefore, when organizations venture into new technologies to reduce costs, employees may feel apprehensive about the unknown changes in technology.

Proper training and communication can help manage such changes, leading to organizational development.

With regards,
Jayavel.K

Only training and communication no longer serve the purpose of introducing new technology. No new thing will be successful unless it is accepted by the people there. Whatever new is introduced, employees should be made to participate. This power of decision-making helps in giving them a sense of achievement and belongingness.

No doubt that training and communication are very important, but what if people are getting training and at the same time, they are looking for another job. So, it is better to take everyone along :)