Leading the Change Process - Parco

Scope

The scope of the report is the process of promotions that is inherent in the organization, so the report will encompass every aspect of promotion in detail and will propose a change in the existing system of promoting employees. It will look into the culture of the organization and how this will affect the change process. It will also consider the issues that will arise during the transition.

Purpose

• To create a change model for employee promotions at PARCO
• To develop an appraisal program to have a record of each employee’s performance

The purpose of this report is to come up with the most suitable change model for PARCO that makes the process of promotion smooth, timely and fair based on factors dealing with the employee performance appraisal, their training history, years of service and feedback etc. This will help the company have a structured and a justified promotion system that incorporates various aspects instead of just focusing on the number of years served.

The report will also encompass the possible reactions to this change model and how readily or how challengingly the company is able to adhere to the proposed change.

Research Questions

• Should promotions be solely based on the experience of employees?
• How is the motivation and performance of employees affected when mostly their experience in the organization determines their promotion?

Problem Identification

We observed that the company’s promotion policy is mainly based on the number of years served by the employee. For example the promotion from the position of Senior Management Executive to Chief for one of the employees, in the HR Department, was done after 10 years of his dedicated and outstanding performance.

The promotion should also be linked with factors that affect the individual’s as well as the organization’s growth such as training and performance appraisals. Keeping in mind the culture of the organization, we will formulate a well-balanced promotion system for the employees.

Justification Statement

Business practices are continuously changing around the world. The processes through which organizations are managed are evolving. Companies are moving towards fast track career progress for employees with exceptional performance.

However at PARCO, the promotion is not based on exceptional performance, rather mainly on the years of service. To retain the employees and ensure maximum performance, PARCO needs to cope up with this change and redesign its promotion system. If it doesn’t change the process, then there is a high probability of it losing its employees to its competitor firms in this industry.

Literature Review

One research says that Japan has for years had the “seniority based” promotion system in its organizations. If employees have similar educational backgrounds, their careers would start at an identical salary. When the employees are in their 30s age, only then they are promoted at an equal speed.

Once they reach their mid-thirties, then they start competing for promotion ranks in the organization. The major criteria for the promotions in organizations in Japan are the no. of years of continuous employment. As per the primary skill-grading system, the merit does not play a major role as related to job performance or output, but is rather defined by communication and problem solving skills and other qualifications. Employees are hence not rewarded for achieving a big objective. They are also not in respect of evaluation of employee’s performance. Rather, regular appraisals based on skills other than performance assess the employees’ potential ability, based on loyalty, soft skills and the ability to cooperate well with others. Time is compelling the Japanese to change its criteria for promotion and reward employees for their performance. (Conrad, 2009)