What is change?

In the organizational context, change can happened internally as well as externally.

Internal changes are deal with people factors, organization structure, and strategies.
Whereas external changes are new regulation imposed by government, intense
competition, and environment factor such as change of climate which may affect
agriculture industry [ CITATION Typ16 \l 2052 ]. According to Team (2017) generally
firms like IKEA and CAPCO are always dealing with 5 types of organizational change.

Organization-wide change. This type of change covered a huge scale of transformation

which impact company’s overall structure. The example of changes are restructuring of
firm hierarchy, and resizing. These changes would impact the firm culture which
ultimately affects the people behavior in the firms. The change is usually long term and
well planned else high dispute will happen.

Transformational change. This kind of change has the association between external
factor and internal factor. The company must always be aware of the changing business
environment such as social change, technology change, and consumer favorite trends.
The mentioned changes will affect firms’ underlying strategies, influent their way of
working, says small and medium size firms starts to use digital accounting system
software rather than traditional bookkeeping due to the influence of technology savvy
environment. However, for digital companies who always dealing with rapid technology
changes has become their culture norm because the change is too normal to be happened.

Personnel change. This happened when a firm is conducting a mass layoff and or hiring
which might affect the company culture shift. When the firm is having a mass hiring, for
instant setting up new branch or department, new employee role will be defined and in
case the firm do not well managed on job task assignment, inefficiency and chaos is
going to be happened. In contrast, layoff can happened for few reasons such as financial
difficulty, and government regulations. The remained employee would subject to morale
problem due to the insecurity feeling toward the job.

Unplanned change. Unplanned change is happened is beyond company expectation such

as natural disaster, government regulation, and economic risk. This unforeseen incidents
are usually expensive and force the firm to have a quick response within a limited time.
Internally unplanned change could be happened on company’s demographic composition
(lack of social equality).

Remedial change. Remedial change is carried out to response to negative issue therefore
its act as a corrective action to business problem. For example, a firm’s business activity
has resulted environmental pollution, and this pollution is necessary to be cleaned for the
welfare and safety of the society, business would then invest in the financing of remedial
action.

Organizational change management

Change is constantly happen within the organization and organization is forced to

response to the fast-moving external business environment, technology advancement, and
global economy.

People is the most important asset of the company. Fact showing that 70% of the change
plan failed is caused by negative attitude of employees and unproductive management.
Expenses on losing employees is high due to the recruitment cost and time for them to
adapt to new working place as well as the time for catching up to the standard. Therefore,
organization change management is crucial in supporting people to adapt to change.

Impact of change

Human is the most difficult aspect in dealing with change event unlike technology
change, buying a new equipment and machine need only money and therefore easy.
People factor is different as many people are resistance to change due to the fear to
uncertainty. Every strategy or plan must be operate by human, if the key person cannot
tolerant with change, it will affect the overall operation. The influences therefore can be
in 2 direction, organization affect people and people affect organization development.
Commitment to change is one of the success key in the overall change management
system[ CITATION Oni17 \l 2052 ].

Resistance to change. People attitude to change can be so different from resist passively
to undermine the change aggressively, to embrace it sincerely. Main reason people are
oppose to change is when they believe the change will result unfavorable situation to
them or lessen their current or expected benefit, this believe happened due to lacking of
trust between employee and organization (conflict of interest). Thereupon the approach
used by HRD in helping people in confronting to change is not necessary effectively
work[ CITATION Tan18 \l 2052 ].

Dealing with resistance. Enemali (2010) suggested that managers need to be trained in
diagnosing reason of resistance to change and chose the appropriate approach to
overcome it. However, not much managers can change their attitude rapidly in
accordance to change event. Despite they understand the need to be changed but
emotionally cannot make the transition[ CITATION Dru64 \l 2052 ]). Continuous
training and education can help to achieve this objective.

Human Resource Management and Development implications. Promote a divers

work place to make company ready to go globally, diversity included multi-talented
workforce, and multi-ethnic. A good employee placement can form a competitive
advantage whereby placing the employee at his most suitable position that suit his/her
qualified background. After certain period (1 to 2 years) role must be rotated in order for
the employees to see how their performance affect other part in the whole process.
Besides, job rotation can enrich their experience as well as helping them to discover their
hidden competency in various area which could be useful in contributing to the firm
ultimately. Involving employees from different background and job rotation train them in
accepting change in daily task and cultivate of the habit continuous learning [ CITATION
Oni17 \l 2052 ].

HRM as change agents. HRM has to continuously update their knowledge and be aware
of the latest news and trends in technology, politics, economic, and etc or HRM will lose
their usefulness to interface with a changing world. As HRM is the facilitator of training
to employees, failure in spotting the need to equip employee with the latest skill and
knowledge will cause the inability of employees to produce products and services
demanded by customers. As a change agent, HRM act as inventor, innovator,
investigator, and entrepreneurs[ CITATION Muc15 \l 2052 ].