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Need assistance in developing a four to five page paper on the impact of change on the human capital. You need to select a change initiative (one in your own company or one discussed in the popular media). Analyze how a change initiative was handled (from the human side of change).
a. What concepts from the change theories were used?
b. How was resistance addressed?
c. What leadership styles were used?
d. How effective was the company or leader at managing the human side of the change initiative?
e. What were the overall results? Did the company lose unavoidable productivity, money or people during the change?
Your recommendations - should this type of change initiative happen again, what you would recommend the company do to effectively manage the human side of change in the future.

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OTA 105878/Xenia Jones

About Human Capital & Change Theories

When companies hire, they look towards increasing their human capital. To be hired for certain positions and roles, individuals seeking employment must 'tick' certain boxes in the required skill set, competencies, knowledge, experience and personality attributes to perform labour and services that are of economic value to a company. An IT expert's skill set for example is of economic value just as his experience and knowledge is, helping the company achieve its goals, tasks and targets by doing so. All members of a company, a business, an organization and a firm is its human capital hence by investing in increasing membership skill set, education and experience, the organization stands to benefit. Previously, the human capital is labelled as the workforce but classical economic theorist Adam Smith refers to the workforce as one of the 4 indispensible fixed capital that allows for revenue or profit to be made despite of leadership or ownership change. The 4 are as follows - 1. Machines, equipment and instruments of the trade; 2. Buildings or geographic location of the trade; 3. Improvements on the site and 4. The human talent that makes the trade possible. The term Human Capital did not surface however till 1954 when economist A.W. Lewis introduced the term in his paper the "Economic Development with Unlimited Supplies of Labour." The current attributed meaning though surfaced much later on in the works of economists Jacob Mincer and Gary Becker. Becker's 1964 book, the 'Human Capital' standardised the idea of human capital as a means to production in that increased skill set of the workforce adds to the output. Unlike other capital though it is not transferable but only substitutable as human beings are subject to the social condition. The economic theory of modern growth pins development on human capital based on the conditions, for example, of the amazing growth and development human talent has created via technological advancement. We now live in a digital world made possible by human talent making the most skilled and talented in competitive industries the most sought after (today for example, its IT, medicine, science, entertainment, banking and engineering).

Change is a reality in the social world. In terms of organizational integrity, change happens because society is dynamic. In fact, if there is a constant in the social world, it is that change always occurs. Organizations are social structures, social groups and social institutions. It does not matter whether they are secondary, primary or referential in nature, whether they are big or small. They are made up of social agents affecting the entire structure just as the culture that continues to develop and change within the organization is affecting them. Plus, there are other factors that can affect their organization not only within but without - the environment, the social situation, new trends, market demand, etc. Change can be viewed or seen through various phases and there are theories that seek to explain why, how, to whom and what makes change happen. One of these is Kurt Lewin's 3-step change model. For Lewin, behaviour is a dynamic balance of forces, increase or decrease elements in this balance and one affects behavioural outcome. The first step is unfreezing the current model, the equilibrium or status qou. By doing so individual resistance to new ideas and group conformity is addressed. The second step is ...

Solution Summary

The solution is an extensive 2,359 word essay that discusses the human side of 'change application' on human capital. Organizational change and change theories are discussed and explained in relation to human capital and organizational efficiency. A sample change effort event is discussed to show this. Word version of the solution is attached for easy printing. References, both web and print are listed.

See Also This Related BrainMass Solution

Theories and Changes in the Health Field

I need help with the attached to add toward changes in the health field that would apply towards each of the 3 theories. I have those theories and instructions in the attachment.

The name of each theoretical model is listed below. I just need help with a description of the type of change situation in the health field where each theoretical model best applies. I need at least a paragraph or two for each change model for each theory.

Goal Setting Theory- Gary Latham and Edwin Locke (1983).
Setting the goal-
Should have two main characteristics which are
1. The goals should be specific and measurable.
2. The goal should be challenging yet attainable.
Determining goals for an employee
1. Use time and motion studies to set appropriate goal levels.
2. Setting future goal levels based on past performance levels.
3. Allow employee to jointly set goal.
4. Determining goals by external forces.
5. Determine long-term goals as determined by organizations Board of Trustees.
Obtaining the goals.
1. Managers need to make sure that employees remain committed to goals.
2. Appropriate pay and incentives.
3. Reinforcement to receive satisfaction for reaching goals.
4. Reinforcement acceptance for future goals.
Resisting goals
1. Perception of themselves not being able to obtain goals.
2. Need for training.
3. No relationship between personal benefits and goals.
Providing Support Elements.
1. Adequate resources provided
2. Company policies and procedures must not create barriers.
3. Employees must trust managers that are supportive.
4. Action plan must be provided with agreed upon goals.
5. Employee must have access to the status of their goals.
Expectancy Theory-Victor Vroom (1964)
For managers the Expectancy Theory is very useful as it helps to understand a worker's behavior and why they would lack in motivation.
VIE Theory
Valence- Strength of an individual's want, need, or dislike, for a particular outcome.
Instrumentality- An individual's perception that his or her performance is related to other outcomes, which are either negative or positive.
Expectancy- Individual's perception that their effort will positively influence their performance.
Newsom (1990) summary of Expectancy Theory
The Nine C's
1. Challenge- How hard the employee has to work for a job well done.
2. Criteria- Making sure to communicate to the employee the difference between good and bad performance.
3. Compensation-Does the outcomes associated with good performance reward the employee?
4. Capability-Employees' ability to perform well.
5. Confidence- Does the employee believe they can perform well enough?
6. Credibility- Does the employee have the confidence in the managers to deliver what is promised?
7. Consistency- Other employees receive similar outcomes for good performance and others receive less for bad performance.
8. Cost- The cost of employee's time and effort to perform well.
9. Communication- Does management communicate well enough to work with the other C's?
Maslow's Hierarchy of Needs-Maslow (1954)
According to Maslow, humans have five needs and are driven to fulfill those needs.
1. Physiological- hunger /thirst.
2. Safety- security
3. Love and Belonging
4. Self-esteem
5. Self actualization
Maslow states how to satisfy these basic needs in employees:
1. Physiological is adequate salary and working conditions.
2. Safety needs would be in job security, security for the future such as retirement, medical plans, and a safe working environment.
3. Love and belonging (affiliation needs)- positive interactions with co-workers and managers.
4. Self-Esteem needs- Recognition, promotions, decision making.
5. Self-Actualization-Self fulfillment from job, autonomy, ability to create and demonstrate innovation in challenging tasks.

Provide a description of the type of change situation in the health field where each theoretical model best applies.

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