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  • Change Management and Conflict Resolution

    Posted by Asia Metropolitan University on February 8, 2021 at 1:42 pm

    Scenario

     

    As the lead consultant for Workplace Solutions Consulting, you are the one to deliver recommendations for organizational change to the management of Informational Systems. Some of the ideas involve centralizing some duplicated administration functions in regional locations and others involve de-centralizing product departments to break down silo walls across locations. You collected significant data in order to conduct the best analysis. The bottom line: although all of these changes are for the better for organization, they will be quite disruptive to the personnel at IS.

     

    Forum Question

     

    You used the data you collected in order to arrive at the most-informed decisions possible regarding changes to the organization. What steps would you follow and what information would you collect to ensure sound data-driven decisions? Describe how you would implement the following:

    The centralization of Finance and HR (no jobs lost, but increased specialization and responsibility).

    The de-centralization of the heretofore separate product departments (break up of existing teams, reforming new teams, and new reporting relationships).

    NURHIDAYATI BINTI ABDUL JALIL replied 2 months, 1 week ago 18 Members · 20 Replies
  • 20 Replies
  • Qairul Muzzammil Kamaruzaman

    Member
    October 31, 2021 at 5:27 pm

    To consult Informational Systems in implementing the organizational change, I would follow steps in Kotter’s Change Management Theory, and for this, I would require supporting data on work load of Finance and HR, their overhead cost and efficiency. To confirm this, I would also do an interview/questionnaire depending on the size to get a balanced view from both side. To implement this, I will get the management specifically and whole company in general to agree with this exercise by creating urgency top down from board meeting and cascaded to town hall sessions.

    In order this exercise can be initiated, I will get a team consist of top and middle management as well as regional key players to be set up as steering committee and assist the process.

    Our proposal is to centralize the roles and functions of Finance and HR, and at the same time keeping the same headcount, by shifting their roles and responsibilities thru rebranding them as Finance and HR Business partners, working closer with delivery organizations.

    Another part of our proposal is to realign product departments by restructuring these teams based on regions for a smoother governance, compared to current customer segmentation.

    Together with the steering committee we come up with a proposal for the change and get the management approval, then we will make clear the plan throughout the company.

    There will be some challenges from regional as well as central throughout this exercise, further short sessions with the concerned employees to get them onboard and understand the bigger picture will be the additional task for the steering committee. Potentially challenging situations and persons will be identified in the earlier part of the journey, based on gathered data as well as questionnaires/interviews.

    We will set a feasible short and medium target for the whole company strive to achieve and celebrate these wins to increase the moral boost. These shirt and medium targets can also be used as the tool to help guide the change momentum throughout the company.

    Finally we will set these changes as the corporate culture via direct, open and conclusive communication throughout the company, starting from the management and pass back the steering to the IS Management Board.

  • Lai Foong Sern

    Member
    November 4, 2021 at 7:05 pm

    Change is challenging and rarely to be welcomed by everyone as a person need to come out from his/her comfort zone and spend time, as well as effort to adapt new things. However, change is inevitable for a company to succeed and grow. As a lead consultant who is going to implement change in management and to make sure the whole process of change can be carried out successfully, a strategic and effective change management model must be carefully chosen.

    Among the available change management models, I will use Kotter’s change management theory for this change. The main reason is Kotter’s theory focused primarily on the people involved in the change process and widely used in the world. If everyone is being listened, well-addressed and supportive, this will highly increase the chances for a successful change that will benefit the organization.
    Kotter’s theory is divided into below 8 steps and each step will be applied in sequence to carry out this change in the organization:

    1. Increase urgency
    Firstly, a meeting with high management level must be conducted to discuss the issue to be addressed, solution and benefits of this change to centralize and decentralize product departments. Once got approval and support from them, this change direction must be conveyed to all employees by explaining the purpose of this change to motivate them. Survey/questionnaire will be distributed to all employees to ensure everyone is involved and listened. Employees will start to be panic with this change hence organization will assure employees there will be no job lost.

    2. Build the team
    It is important to build a specialist team with mixed knowledge and skill to run this change management. For example, members with IT skill is needed to distribute, collect and tabulate survey result. Members with marketing skill to continue create urgency and awareness for this change.

    3. Get the vision correct
    Vision must be clearly defined and cascaded to all levels within organization. All employees must know that organization want to accomplish this change by centralize and decentralize product departments.

    4. Communicate
    Centralize and decentralize product departments will take place here to form new teams. Prior to forming new teams, impacted departments Finance and HR and others must be well-informed with their new roles with increased specialization and responsibility. This is to minimize everyone confusion after forming new teams. If communication is well-established, all employees will be more confidents on their new roles and also this change.

    5. Get things moving
    There must be some issues and obstacles faced by the newly formed teams so need to understand their issues and address them. This is the critical time and everyone and every process must be monitored closely to ensure daily business-as-usual process and organization can run smoothly.

    6. Focus on short term goals
    Break long term goals into short term goals for newly formed teams as this will create a sense of accomplishment to motivate employees once they completed short term goals. Furthermore, this can make sure newly formed teams are consistently taking steps toward the long term goals.

    7. Don’t give up
    At this point of time after went through long and hard processes, most of the people will be exhausted and discouraged, organization can celebrate with employees for every short term goals achieved to cheers and motivate employees. For instance, organization can plan for company dinner and give free gift.

    8. Incorporate change
    Lastly, the organization management has been changed successfully. Newly formed teams still must be continuously monitored to ensure that they are adapting the new change management.

  • Nur Aina Azizan

    Member
    November 12, 2021 at 12:11 am

    The best model to be use for this change of the management is McKinsey model. This model integrates both the emotional as well as the practical components of change that is something important to create ways enable employee deal with transition easily.

    Centralization of Finance & HR would be better that can provide strategic business advantages to the organization. HR is the department which involve in payroll management, staff recruitment, provide training etc. While Finance department is focusing on budgeting and maximing profit. Therefore, by centralizing these two departments, they can work towards common goal on getting higher workforce performance and profitability. HR need to consider the cost and benefits of onboarding staff and so does finance. With this centralisation, is it easier for finance to allocate funds towards company policy when kept in in HR database. There are few information need on the centralisation which is the employee data, budget and allocation fund , system to be used , benefit administrations , employee life cycle management and etc.

    The strategy of de-centralization of product department will create the flexibility . It will continue efficient operations and top management can focusing on major decisions. This decentralization can facilitate the process of expansion. For example, on the production if there located in different demographic area, it will allow the other unit to operate independently and focusing on specific need of that particular area.

  • Bachevinder Singh A/L Param Singh @ Bob

    Member
    November 12, 2021 at 12:18 am

    In the scenario given, as a Lead Consultant a proper change management should be chosen. To implement the organizational change, I would recommend Kotter’s Eight steps model for leading change (Kotter’s change management theory).

    Kotter’s divided his change management theory into 8 steps. First, we need to create the climate for change whereby we need to create sense of urgency, form a powerful guiding team, and create a vision for change. Assess any threats that may be arise in near or future and why change is required. Create a sense of urgency environment by seeking support from stakeholders, customers, and managers by explaining to them on all the potential threats that may be arise. This can be done by explaining to them the reason why these changes must take place. Survey/Questionnaires will be distributed to all employees so that they are aware on the changes. We also need to build up a team with leaders of various skills and departments that consists of all level of management from different department. This is the team that will implement the change and on the same time create a vision and the vision of the changes should be explained to all levels of employee in the organization so that they are aware on what the organization want to achieve in this change and how things should be in the future.

    Next stage will be engaging and enabling the organization. Under this circumstances, we need to communicate the vision for change with everyone who involve in this change management (include employee) so that they know what their role in the change management is. Here, the Finance and HR team need to understand the centralization of that both department as there will be not any job loss but increased specialization and responsibility but only involve breaks up of existing teams, reform new teams and also new reporting manager. This step is very important as some of the employee with get the vision wrong, thus those members in the change management team should explain and motivate the employee effectively and highlight why the changes are necessary for the organization. We also need to remove obstacles whereby all the obstacles should be monitored closely. Identify all those resistant to change and work against those resistant. Rewards and recognition also can be given for those who supports the change management to achieve the organization vision. Next, create short terms wins are important as we need to identify the short-term goals that are not very costly and do not require any approval from anyone who are not satisfied with the change management. This will provide proof to the employee that all their efforts are working which they will feel satisfied.

    The final stage is implementing and sustaining for change. Here includes build on the changes and apply the changes in corporate culture. All the changes that have been implemented need to be analyzed so that it can be improved from time to time. Once it has been analyzed, then we can start to implement the changes into the company culture. The changes need to be announced officially to all level in the organization. The strategy of de-centralization of product department will create the flexibility. This centralization of Finance and HR will bring benefit to both employers and employee.

  • Pub Hon Low

    Member
    November 14, 2021 at 5:13 pm

    I would chose to implement the mix of both matrix, which is a shared centralized HR department combined with other relatively independent localized HR functions. It will helps to re-form the new team and also minimize the impact of the changes.

    The steps that I would used is by Kotter’s Change Management Theory.

    The data and information needed will be listed as following:

    1. Current HR structure and organization staff size

    2. Percentage of HR staff in supervisory role

    3. Average annual turnover rate of the organization

    Steps:

    1. Create urgency – identify the threat, get support from the management as well as the other stakeholders.

    2. For a powerful coalition – form a suitable team, identify a leader to lead for the change.

    3. Create a vision for change – determine value and create a strategy to implement the vision.

    4. Communicate the vision – cascade the information to the members and act as a role model for the change.

    5. Remove obstacles – remove barriers by helping people who are resisting and reward those who are making the change happen

    6. Create short-term wins – divide goal into short-term projects

    7. Build on the change – analyzing for improvement, use “kaizen” idea for continours improvement.

    8. Anchor the changes in corporate culture – make the change become part of the core of the organization culture.

  • Lik Wai Toh

    Member
    November 14, 2021 at 8:14 pm

    The current trend is to build a shared service center and centralize Finance and HR into the regional functions. Create a Finance and HR shared service model, connecting subject matter expertise, automation, decision support, and interactive solutions. The main focus should be on strategic business outcomes and empowering people to drive best practices. It supports a CFO to remain ahead of the competition by bringing down cost and operational inefficiencies. The project consultant would take the following steps to ensure the change of de-centralization to centralization is efficient and effective.

    First – understand the current roles and functions currently held responsible under different departments in the organization.

    Second – consolidate the tasks from all the departments and analyze whether any redundancy. This process is essential because it can reduce repeating tasks.

    Third – planning the headcounts to be hired in the shared service center.

    Fourth – prepare the process documentation handbook for each function.

    Lastly – provide routine training to upskill the employee to match the HQ requirement.

    After the above change, the organizational structure will be more precise because the standard key functionalities are under one umbrella, including sales analysis, forecast, and employee training.

  • Maizatulziah Modin

    Member
    November 15, 2021 at 10:53 am

    There are two main concerns that I could understand from the situation given. (1) The change shall not impact the employee, which means no job losses. (2) Form a new department from the existing team.

    Based on the two concerns above, I could say that the best model to be implemented is ADKAR Model.

    Let’s see the process model that can help to justify the decision-making.

    1. Current – the existing structure of the company

    As a lead, I should thoroughly look at all the possible needs and requirements of change. Then, to bring the necessary needs (i.e employee feedback) to be part of the change.
    In this case, there are two requirements, to centralize Finance and HR due to reduce duplication job function and to decentralize the existing team.

    Both activities refer to Awareness and Desire (A and D)

    2. Transition – to prepare and perform transitions to the new structure
    In this case, to retain existing workers and avoid job loss, the appropriate training or re-skill shall be conducted to help existing workers cope with the new role and organization structure.

    This phase is to look at those possibilities to drive the change and ensure that employees participate and understand. It is also to incorporate the change regularly.

    All activities refer to Knowledge and Ability (K and A)

    3. Future – the new department, role, and structure

    In this case, the new team has formed while Finance and HR merged.
    Once the transition happens, it is to keep the new changes and policy reinforced and implemented. It shall continue to support employees and organizations (i.e training, upskill) to ensure no one is left behind, to cope and adapt to the new structure.

    The activity refers to Reinforcement (R)

    Those processes stated above which are referred to as ADKAR can help to decide and go through the change management process with minimum risk (employee lost job, employee skill).

  • Ida Farisha Binti Meor Alim Shah Shah

    Member
    November 17, 2021 at 3:23 pm

    Dear Sir/Madam,

    I am Ida, the lead consultant from WSC. After spending some time going through your company structure in all of your locations and understanding the functions and capabilities of each business unit, I notice you could benefit from reorganization specifically to your Finance, HR and Product departments. But first let me tell you the data that I have gathered to draw the conclusion.

    1. Assessment on individual competencies
    2. Assessment on individual job scope
    3. Your company mission, vision and core values
    4. Overlaps job functions
    5. Burning issues within the teams

    For HR and Finance department, instead of these 2 teams working in separate silos, it is better we centralized the team. HR team will benefit from knowing the financial aspect of running the business i.e budgeting, profitability, reading and understanding financial statements. Hence going forward, HR team will have better understanding of the business, how the business earns money and have meaningful conversation about company’s financial profile to potential clients or employees.

    As for Finance team, with the knowledge on labor laws, employees benefit, compensation, training, rewards, recognition and workforce planning, only then Finance team will understand the importance of human capital investment and able to work proactively in proposing win-win situations to both company and employees.

    What is considered as expenses in finance might be considered as an investment by HR. Therefore this overlap in functions will be fruitful for both teams and organization.

    For product department, we proposed to decentralize the team forming few smaller teams to create more visibility on each product developments and assigned new manager to each team. So each team members and projects will receive more attention from the managers and quicker decisions can be made.

    To implement such a big change, we will use Kotter’s Change Management Theory. Whereby we proposed the following steps:

    1. Careful Planning
    – Timeline of when and How this changes will take place.

    – Lay out each team’s milestone achievements and timeframe to achieve them

    – Documentations on current state and organization’s future plans

    – List of new or changed in responsibilities

    – Trainings

    – Discuss any potential concern that might be raised by employees ie salary and working hours, laid offs..

    2. Host a townhall for both teams and present the plan with Q&A session at the end

    3. Ensure the employees the company is not letting go of any employees. It is just cross functional collaborations to increase specialization and responsibility

    4. Lastly, assign a personnel from each team to champion this changes. He/She will help in managing the change and milestones, remove any roadblocks, keep the team’s spirit up and provide necessary support to the team.

    So are you ready to make some big changes?

  • Leonard Robinson Chin

    Member
    November 21, 2021 at 5:04 pm

    In any organizational change, it is a best practice that decision can only be made on visible data. This is to promote a transparent organization which is a main contributing factor for employees to work in a collaborative mode. As the scenario given above an extensive change in the organization, a thorough selection of data to support the decisions to be taken is needed. To support the decision, both qualitative as well as quantitative data should be gathered which can compromise of the following:

    1. List of current activities and their deliverables including man hours needed to complete the activities from each employee. This can give a clear indication of the activities that done by the employees as well as the efforts needed and can be used as a basis to streamline the activities and remove activities that do not focus on value when crafting out the new organization structure.

    2. Career development plans for each employee should also be looked at to gauge the career aspirations of the employees. If it does not exist, the managers should work with their employees to complete one. This careen development plans will assist in determining and alignment of future work assignment and upskilling needed for the employees against the new organization structure. This will greatly assist in staff retention and employees accepting the changes and ensuring that the organizational change is successful.

    3. Staff feedback is also via avenues such as employee satisfaction surveys to gauge what the employees is happy and not happy with. Areas which they are happy with should be leverage upon when crafting the new organization structure and areas of dissatisfaction improved upon. This re-organization activity can be a golden opportunity to improve staff satisfaction, retention and ultimately improve performance.

    In order to maximize success of the organizational change that is intended. The Kotter’s 8 step approach can be used. Here is a summary of the 8 steps and the activities that could be done to support this organization change that we have:

    1. Create a sense of urgency
    The reasons of the organization changes must be clearly and openly communicated to the employees for them to understand why the change is critical and what are the re-percussion if this change is not done.

    2. Build a guiding coalition
    To ensure a smooth roll out of this organization change a steering committee made up of presentative from all levels of the organization involved is needed. These members can be change agents to promote the organizational change and be SPOCs to assist in disseminating information and gathering feedback from their teams.

    3. Form a strategic vision and initiatives
    A clear vision and mission statement needs to be formulate and cascade down to each team for this organizational change.

    4. Communicate for Buy-In
    Promotion of the vision and mission of the change is also important via the use of collaterals such as button badges or posters on the walls. Behaviors that demonstrate adoption of this new ways be rewarded through incentive programs.

    5. Empower Action
    Assist to remove barriers and roadblocks that would prevent the organization change being successful. If upskill or reskilling is required, then such programs should involve everyone that is impacted by the organization change.

    6. Create Short Term Wins
    Quick wins are best way to get people’s buy-in. Such low hanging fruits can use to quickly demonstrate value about the organizational change. If people can see for themselves the benefits of the change, it would be easier for them to want to participate and adopt it. Instead of a big bang approach to this organizational change, smallest parts can be implement first so employees can see the benefits such as the use of automation which can save their time.

    7. Don’t Let Up
    Once you have gain the buy-in from step 6, move forward with large parts of the initiative. With the support, this step should be easier especially is the initiative is large.

    8. Make Change Stick
    The new organization structure and its way of working should be a regular way and the old way should be forgotten. The change should be institutionalized and made the official way moving forward.

    • Pub Hon Low

      Member
      December 18, 2021 at 8:32 am

      Collecting the feedback from the employees is crucial for the company to discover the room of improvement on the management. It may help to improve the company’s strategy on the hiring and training policy as well.

    • Siti Zaidah Binti Abdullah

      Member
      January 15, 2022 at 11:56 pm

      Good insight Leonard. You simplify it well. It is clear and concise.

  • Yaamini Renganathan

    Member
    November 22, 2021 at 8:46 pm

    The process of centralization refers to the concentration of planning and decision-making processes inside an organization to a single leader or location. In a centralized organization, the head office retains decision-making authority, while all subsidiary offices receive orders from the main office. The head office houses the executives and specialists who make key decisions.

    Based on the scenario provided, as a lead consultant, I would implement Kotter’s 8 Step Change Model.
    This model demonstrates dynamic, action-based transformational strategies to stimulate growth.
    HR and finance should be centralized so that the corporation can get strategic commercial advantages. HR is the department in charge of payroll, employee recruiting, and training, among other things. While the Finance section focuses on budgeting and profit maximization. As a result, by bringing these two divisions together, they will be able to collaborate toward a common goal of improving staff performance and profitability. HR and finance both need to think about the costs and advantages of onboarding new employees. When funds are held in the HR database, it is easier for finance to allocate funds to business policy because of this centralization. The centralization, which is the essence, requires only a small amount of information.

    Below are the real benefits of centralization:

    • Establish a sense of urgency

    • Create a guiding coalition

    • Develop a vision and strategy

    • Involve everyone and enlist a volunteer army

    • Removing and reducing barriers

    • Generating and focusing on short-term wins

    • Keeping the momentum going

    • Anchoring new approaches in the culture

  • Stefanie Ng

    Member
    December 26, 2021 at 2:24 pm

    Information to collect for sound data driven decisions could be various sources such as:

    1) Employee opinion surveys, cost benefit analysis done on existing department

    2) Feedback gathered from customers, channel partners, suppliers, and investors

    3) Comparison of Cost benefit analysis of existing team structures vs. proposed structure (Site location analysis etc.)

    4) External consultants data from other similar companies

    5) Engage IT vendor/provider on new infrastructure and technology issues

    6) Assess risk and impact to business

    Implementation: The centralization of Finance and HR (no jobs lost, but increased specialization and responsibility).

    • Key objectives: standardisation, consolidation,reengineering and automation.

    • Educate employees on the benefits of centralization: Centralization brings down support function costs (e.g. IT, finance, HR) and ‘Back office’ perception, Improvement of standardized systems due to converged site, Reduction of duplicate work across sites, sharing best practices, Skills specialization & wider responsibilities

    • Engage stakeholders, clearly communicate on changes to work scope, provide relevant training

    • Leaders to encourage enlarged team to work towards common enlarged team’s goals

    Implementation: The de-centralization of the heretofore separate product departments (break up of existing teams, reforming new teams, and new reporting relationships).

    • Lay out and communicate new organizational chart (ie; new departments, new leaders, new teams) and provide time for teams to familiarize amongst themselves

    • Ensure all are aware of transition plans, new team structures, deliverables, performance targets

    • Organize planning of knowledge transfer (work shadowing, and post-transfer role support)

    • Now that teams are separated, encourage knowledge sharing between all teams on a monthly basis to share best practices (eg; cross department team building activities)

  • Kubendren Kathiravaloo

    Member
    January 1, 2022 at 2:57 pm

    What steps would you follow and what information would you collect to ensure sound data-driven decisions?

    The data that will be collected is the information of the structural variables of the organization and the cultural variables of the organization.

    Structural Variables are organization structure, abundant resources, work, and non-work support. Organizational structure is the study of the current hierarchy of authority, division of Labour, span of control, functional structure, divisional structure, matrix structure, team-based structure, network structure, roles and responsible of the staff. From here, we able to identify the abundant resources and design strategic organization structure which reduce cost, increase domestic and international competition.

    Cultural variables also need to be study how the resources able to adapt to culture and work as team to support the operations.

    Describe how you would implement the following?

    The implementation of the Change should under go based on Change Management and Innovation Process. A System Model of Change can be used to change the process within the organization(Steward,2006).The model consist of 4 steps which is Input, Strategic Plans, Target Element of Change and Outputs.

    Input

    It study the current organization structure and identify the areas that can be improved. From these scenario, we have identify that centralization of Finance and HR should be centralized and de-centralization for certain team for benefit and efficiency of the organization. The feasibility study is made on the impact, risk, time taken to achieve, approval from higher management, the expected outcome and company growth after implementation. A change leader will be assigned to take responsible on change within the organization and to do these feasibility study. The Change leader will have good relation to all the staff involve and help the realize they need to have change in existing behaviors as the current process is not effective.

    Strategic Plan

    Plan the new organization structure that need to be implemented. It includes the plan on new process, job designed, new roles and responsibility, career plan, technology update, knowledge transfers and others. At these stage, all the target people should be communicate with the change and feedback from them is accepted and review. The plan should be win-win situation between the staff and organization. It should carried out smoothly without effect any interruption to current operation to avoid business lost. The Change Leader plan the implementation stages by prioritized changes task and people.

    Target element of Change

    The new policy, procedures, structure and compensation has been approved and new policy been communicated to all the employers in company. The physical work environment has re-organize to support the current centralization and de-centralization of the team. The Change Leader need to make sure the new changes has been implemented based on the plan and it has been stabilize.

    Output

    The output is review to measure the success of these transformation. It is measure through staff satisfaction, increase in productivity, knowledge management, organization performance.


    References:

    Zainal Ariffin Ahmad, Lilis Surienty Abd Talib, Azura Abdullah Effendi, Junaimah Jauhar, Tanuja Sharma
    Oxford University Press, 14 May 2009 – Organizational behavior

  • Mahalakshmi Pavithra A/P Sukumaran

    Member
    January 5, 2022 at 1:56 am

    Organizational transformation is the process of changing essential aspects of a business organisation. The actions taken to prepare the organisation for upcoming changes are:

    1- Describing change and aligning it with the organization’s goals. It is critical to ensure that the change would help the business organisation accomplish its objectives.

    2- Identifying the organization’s impact of the change. It identifies the most vulnerable to the change and aids in assessing and embracing change within an organisation.

    3- Creating a communication strategy and identifying the most efficient ways of communication

    4- Provide proper training to managers and staff to help them prepare for and cope with organisational changes, such as mentoring or job coaching.

    5- Creating a support framework to help employees cope with emotions and transition

    6- Controlling and monitoring organisational transformation

  • Hareeraja Thechina Murthy

    Member
    January 6, 2022 at 10:46 am

    First foremost, I have to understand the redundancy impact (Time and Cost). Therefore, I need information for HR such as workflow data, salary scale, benefit and compensation, data sharing method, data storage, reporting method and cost and time impact from each location and for Finance, how the collection flow works, how the payment flow works, filing method and potential money leakage from each location. If in HR, it is found that there is differences in salary scale, benefit, and compensation, there is no or inadequate data sharing of candidates and other HR related matters which causing double work and cost for single process including workflow or the cash flow is not showing smooth flow and many queries made during audit due to frequent suspends account or data maintenance, then we can conclude centralization is the best solution.
    For the implementation for centralization of Finance and HR, I shall be using ADKAR model. Firstly, we shall use ensure all the people involved from top to bottom understand the need for the changes (Awareness). Secondly, bring out the desire for the change and encourage all to participate in the change (Desire). Thirdly, ensure proper knowledge is given to everyone about the changes and the benefit (Knowledge). Fourthly, we must understand the ability of the people around us and the finance we allocate/has (Ability). Fifth is to ensure the implementation process and reinforce later (Reinforcement).

    HR – The centralization shall begin with the recruitment process, where the requisition of manpower is given by the branches and processed by the main centralized HR department. If the branch has some candidate list, branches can share the details with the central HR Department. This is because the centralized HR department able to regularize and standardize the salary scale, benefit, and compensation. Also, for centralization, we definitely need to establish a centralized system, such as ERP or SAP. By having this kind of system in place, we are able to centralize payroll, performance management, training need analysis, career development and centralized potential candidates with resumes. Having such centralized system, branch HR staff can focus on payroll and staff or workers affairs only. Also, the number of staff can be lowered, and other redundant staff shall be relocate to the centralized office. By doing this, the job will not be lost. The recruitment process is faster and HR governance shall be upheld.

    Finance – The centralization shall begin with dividing the roles and responsibilities and set the limit of payments. For example branches are able to release payments below RM10,000.00 and any other payment from RM10,001.00 onwards, only the centralized finance department is able to do it. Another example is, any asset purchases below RM5,000.00 are allowed at branch level, and above RM5,000.00 shall be through the centralized finance department. Again, for this, we shall recommend a centralized accounting system throughout all branches. This kind of centralization will allow management to analyze cash flow, able to see profit and lost of overall business with just one click. If this system is in place, the manpower required at the branch shall be very low, merely data entry works, and other staffs shall be transferred to the centralized finance department. In fact, finance has many sub-departments which these staffs can be utilized.

  • Arivalagan Mathyvanan

    Member
    January 8, 2022 at 1:09 am

    In my opinion, one of the best way to overcome this situation would be to implement the McKinsey 7S model as the model is being commonly used as strategic planning tools.

    The model recognizes 7 of these elements and considers them to be interlinked, therefore it’s difficult to make significant progress in one area without making progress in other areas as well. Accordingly, to be successful, the organization should ensure that all these elements are aligned and reinforced.

    Strategy: Plan the goals of Finance and HR for building and maintaining a competitive advantage over its competitors.

    Structure: Finance and HR organization structure dynamics (how departments and teams are structured, including who reports to whom).

    Systems: The daily activities and procedures that staff use to get the job done in Finance & HR.

    Shared Values: They were called “superordinate goals” when the model was first developed.

    Style: Leadership style in Finance & HR

    Staff: Employees and their general capabilities in Finance & HR departments

    Skills: The actual skills and competencies of the organization’s employees n Finance & HR departments.

    Once the information has been gathered, then the below continuous process will need to take place by the leaders of the department and relevant parties.

    Step 1. Identify the areas that are not effectively aligned

    Step 2. Determine the optimal organization design

    Step 3. Decide where and what changes should be made

    Step 4. Make the necessary changes

    Step 5. Continuously review the 7s

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