Human Resource Strategy During Reorganization

Possible Effects on Employees

The news concerning possible reorganization can be regarded as a factor affecting employees’ morale and commitment. It will also have a considerable impact on the staff’s trust. Employees will be unsure as to their prospects in the organization. They will lose trust in the top management as well as their direct supervisors. More so, the relationships within the departments and the overall working environment will be negatively affected.

Employees will see each other as potential rivals, and the collaboration will deteriorate. Teerikangas and Very (2012) claim that the motivation in such working settings will be very low, which will also influence the employees’ performance. The lack of commitment and poor performance will also have adverse effects on the working environment (Gaertner & Nollen, 2012). Employees will not focus on their responsibilities but will search for new jobs as they will suspect that their top managers and supervisors will fire them anyway.

Key Issues for the HR Department and the HR Strategy

The announcement of the possible intervention should be followed by the implementation of effective knowledge management strategies (Jasimuddin, 2012). HR specialists should come up with a plan on raising awareness on the potential reorganization. It is important to assure employees that the reorganization will not happen anytime soon, but the staff should be assured that they will have the information if the changes occur. It is important to pay specific attention to the key staff and key talents (Mathis, Jackson, Valentine, and Meglich, 2016).

The employees can be informed through memos and brief announcements during regular meetings. However, it can also be beneficial to have face-to-face discussions with the key staff. Supervisors should make sure that the key talents’ commitment has not changed. If some changes took place, supervisors should discuss existing issues with employees and assure them that they will continue working. It is essential to monitor this aspect and react to any changes accordingly. Employees should always be informed as rumor will result in a significant turnover.

Key Performance Indicators

According to Kaplan and Norton (2015), a Balanced Scorecard is one of the most effective strategies that can be instrumental in the development of a proper working environment and staff morale. At turbulent times, it is especially important to develop proper KPIs to make sure that the goals set are achievable and consistent with the organizational goals and culture. It is necessary to note that HR specialists should concentrate on key performers and talents. It is vital to make sure that key employees are still committed to the company.

Iveta (2012) states that lagging and leading KPIs should be utilized. Thus, the lagging KPIs should include job rotation, motivation rate, turnover rate (with a focus on key performers), training course participation, leadership index, and communication efficiency. As for leading KPIs, they should involve qualification index, career coaching strategies participation rate, leadership index, and average salary in the organization.

These KPIs will enable the HR specialist to assess the staff’s morale and commitment. They will also be instrumental in developing various strategies aimed at increasing the motivation and performance of employees. HR specialists should pay specific attention to leadership as it can contribute to the development of the proper working environment. Supervisors and team leaders should have the necessary skills (knowledge and commitment) to answer all questions that can be put.

Reference List

Gaertner, K.N., & Nollen, S.D. (2012). Weak links and strong links: Employee commitment and performance. In R.J. Niehaus & K.F. Price (Eds.), Human resources strategies for organizations in transition (pp. 199-215). New York, NY: Springer Science & Business Media.

Iveta, C. (2012). Human resources key performance indicators. Journal of Competitiveness, 4(1), 117-128.

Jasimuddin, S.M. (2012). Knowledge management in merger and acquisitions. In D. Faulkner, S. Teerikangas, & R.J. Joseph (Eds.), The handbook of mergers and acquisitions (pp. 454-473). Oxford, UK: Oxford University Press.

Kaplan, R., & Norton, D.P. (2015). Balanced scoreboard success: The Kaplan-Norton collection. New York, NY: Harvard Business Review Press.

Mathis, R.L., Jackson, J.H., Valentine, S.R., & Meglich, P. (2016). Human resource management. Boston, MA: Cengage Learning.

Teerikangas, S., & Very, P. (2012). Culture in mergers and acquisitions: A critical synthesis and steps forward. In D. Faulkner, S. Teerikangas, & R.J. Joseph (Eds.), The handbook of mergers and acquisitions (pp. 392-430). Oxford, UK: Oxford University Press.