Studying Organizational Change in Terms PDF

University of Brighton
Studying organizational change in terms of

type, diagnosis, process and intervention
Case study The UK recruitment industry
Ammar Fathi Ammar Hmid

10-30-2016
Contents
1.0 Introduction ........................................................................................................................ 3
1.1 Background .................................................................................................................................... 3
1.2 Aims and objectives .................................................................................................................. 6
2.0 Literature review............................................................................................................... 8
2.1 Change of change management .......................................................................................... 8
2.2 Typology of change .................................................................................................................... 9
2.3 Recognizing the need for change .................................................................................... 10
2.4 Structured change models ................................................................................................. 13
2.5 Change agents and change recipients .......................................................................... 17
3. Research design and methodology ............................................................................. 19
3.1 Primary data collection ....................................................................................................... 19
3.2 Primary data allocation ....................................................................................................... 20
3.3 Secondary data collection................................................................................................... 21
3.4 Secondary data allocation .................................................................................................. 22
4. Methodology and structure ........................................................................................... 23
4.1 Secondary findings ................................................................................................................. 23
4.2 Primary findings ...................................................................................................................... 27
4.3 Findings analysis and integration ................................................................................. 30
4.3.1 Industry life cycle and change types ......................................................................... 30
4.3.2 Transformational change and internal diagnosis ....................................... 33
4.3.4 Change agency and proactive change ................................................................. 34
4.3.5. D.I.C.E framework and change resistance ....................................................... 35
4.3.6. D.I.C.E framework and fine tuning....................................................................... 35
5. Conclusions and recommendations ........................................................................... 37
5.1. Conclusions about change management................................................................... 37
5.2. Conclusions about change management in the recruitment industry .... 38
5.3. Recommendations of further studies ......................................................................... 39
5.4. Research limitations............................................................................................................. 39
6.0 References......................................................................................................................... 40
7.0 Appendices........................................................................................................................ 48
7.1 Interview questions ............................................................................................................... 48
7.2 Interview answers .................................................................................................................. 50
Adecco .................................................................................................................................................... 50
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Back-2-Front ...................................................................................................................................... 50
Benchmark Recruit ........................................................................................................................ 51
Best Connection ................................................................................................................................ 52
Evans Hart............................................................................................................................................ 52
First Recruitment Company ...................................................................................................... 53
Kelly Services ..................................................................................................................................... 53
Katie Bard ............................................................................................................................................ 54
London Sales Recruitment ......................................................................................................... 55
Linear Recruitment ........................................................................................................................ 55
Modern Business Support .......................................................................................................... 56
Nonstop Recruitment .................................................................................................................... 56
Pure Staff .............................................................................................................................................. 57
Randstad ............................................................................................................................................... 58
Reed Recruitment ........................................................................................................................... 58
React Recruitment .......................................................................................................................... 59
Robert Half .......................................................................................................................................... 59
Robert Half .......................................................................................................................................... 60
Stelfox ..................................................................................................................................................... 61
Supreme Recruitment ................................................................................................................... 61
The Best Connection ...................................................................................................................... 62
7.3 Findings ......................................................................................................................................... 63
Figure 1.0 ............................................................................................................................................... 63
Figure 1.2 ............................................................................................................................................... 64
Figure 1.3 ............................................................................................................................................... 64
Figure 1.4 ............................................................................................................................................... 65
Figure 1.5 ............................................................................................................................................... 66
Figure 1.7 ............................................................................................................................................... 67
Figure 1.8 ............................................................................................................................................... 67
Figure 1.9 ............................................................................................................................................... 68
8.0 Reflective report ...................................................................................................................... 69
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1.0 Introduction
1.1 Background
The main objective of the research is to study change management in terms
of type, diagnosis, process and intervention. This paper will use the UK recruitment
industry as a case study. In our era of globalization, it is abundantly clear that
change is accelerating in many aspects of our daily lives. The new millennium has
witnessed an extraordinary increase in the speed in which technologies are
developing and it is in this new and rapidly changing environment that
organizations are investing significantly in the resources required for effective
change management. Change management refers to the process of smoothly
transitioning individuals, teams, and organizations to a new mind set without stress
and with minimal or zero loss in terms of productivity (Mowat, 2002). Effective
change management can also ensure that the project meets its intended outcomes.
The change curve of the change process is well researched and typically involves an
initial cycle of denial, followed by a phase of resistance and finally a commitment to
change. The overarching vision of any change is to maximize workers productivity
resulting in higher margins and also provide an improved competitive advantage.
Subsequently, the change management team or leader are not only responsible for
driving individual transitions but must also factor in any eventualities that could
result in an unsuccessful implementation. The main objective of the change process
is to move at the required pace towards change while also ensuring that all parties
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involved in the change process are fully engaged. Resistance to change can cause
very costly and time-consuming delays in the change process and .employee-
engagement is imperative at all stages of the change process to increase acceptance
and to help employees to perform to their best of capabilities. Effective
communication is central to identifying any challenges that an employee might face
as they transition to a new environment.
The change vision is also an important element that contributes to the
smoothness of the transition (Mowat, 2002). People will accept change if they
perceive that they as individuals are not themselves subject to change. (Lorenzi &
Riley, 2000). It is the responsibility of management to create the right mindset
among employees that concur with the importance of, and the necessity for, change.
A teamwork approach can help avoid any potential crisis and also lessen the
duration of the change process over time. Long-term planning and research are also
key to a successful change implementation and can help management gather
essential knowledge regarding the concerns of their personnel.
Communication is another important aspect of the change process (Mowat,
2002) and should be maintained throughout the process to help avoid disharmony
from resistant parties. It is important that any communication is targeted at those
who will be affected by the change. This discussion can take many forms including
webcam communication, face to face meetings with managers, emails and other
forms of communications that are relevant for the type of change involved. The
change management team or leader can also appoint change agents to help with the
smooth running of communication relating to any concerns or observations
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regarding the change process. It is important that supporters and resistors are part
of the change agent's team since they are both integral to the process and can
determine the success of the change (Mowat, 2002). Leaders must also become role
models for their employees and actively implement the change themselves rather
than merely discussing its advantages. Once change has become routine for
employees, it is clear they have reached the commitment stage in the change curve
cycle and the outcomes of this phase can be compared with the projected results.
Any disparity between goals and incomes must be investigated and resolved.to meet
the required goals.
The recruitment industry is critical to economic growth in the UK and closely
related to changes and developments in the labor market. For a business to succeed
in the current climate, it must incorporate the change process and change
management in all areas. Since the millennium, technology has been changing
rapidly and the labor market needs to respond to this accelerated pace of change.
This paper seeks to establish that change is essential, that the workforce can
embrace change time and time again and consequently, change management has
become a necessity in this era of globalization.
The recruitment industry in the UK emerged in the 1940's when there was a
shortage of labor supply as a result of Britains participation in the Second World
War. A significant proportion of the population was conscripted thus creating a
chasm within the work sector. This led to the development of recruitment agencies
who advertised these job opportunities among the remaining population.
Furthermore the end of World War II also heralded an influx of workers with
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practical skills that were required in the labor market and the recruitment industry
matched the available skills with the job opportunities. In its infancy, the industry
focused on employees but once supply exceeded the demand, the industry switched
its focus to employers. The industry has seen many variations of recruitment
agencies since, ranging from companies that headhunt employees with unique and
specialized skills, to agencies that recruit employees from any discipline. Over the
years, the recruitment industry like many other industries has met with many
challenges including three major recessions in the last sixty years. The recessions in
the 1950's and 1980's necessitated those companies kept their internal costs as low
as possible and could not recruit new workers. This had an enormous knock-on
effect on the recruitment industry. Nevertheless, since the global economic crisis of
2008, the UK economy has grown steadily with unemployment levels dropping over
the last six years and recruitment firms securing employment for four million
people. The development of online platforms that offer a space for employers and
employees to interact has also posed another challenge for the industry.
Recruitment agencies are still incredibly valuable as they can select the most
suitable employees for a company which is both time saving and cost-effective for
any organization. Despite facing many challenges, there are currently over eight
thousand recruitment firms in the UK with over two thousand recruitment agencies
entering the market at the beginning of 2016.
1.2 Aims and objectives
The research question which is addressed in this thesis is as follows:
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How do managers in the UK Recruitment Industry manage change?
This research answers this question by addressing the following:
1) The relations between industry patterns and the type of change that occurs
in the organizations internal system.
2) The impact of the organizations change diagnostic method on its change
management process
3) The type of change that usually happen in organizations in the UK
recruitment industry.
4) The relation between the process change model and change type
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2.0 Literature review
2.1 Change of change management
In his famous book, Future Shock Toffler (1970) argues that there are three
trends that shape the unacceptance of change. Firstly, the transient nature of what
an individual perceives to be the essential factors of life (such as places, people, or
relationships) is increasing and for some individuals their ability to adapt is slower
than the accelerating pace of change. Furthermore, an increase in the transience
ratio also drives some individuals to become more protective of their status quo.
Secondly, an increase in the novelty ratio which incorporates new ideas, machines,
and software can be challenging for some. With regard to the rise in the novelty
ratio, Toffler (1970) says The illiterate of the 21st century will not be those who
cannot read and write, but those who cannot learn, unlearn, and relearn. Thirdly, an
increase in diversity results in the standardization of all aspects of our daily life.
Toffler explains that a high level of diversity, novelty, and transience accelerates
change.
The difficulties individuals experience with change makes change
management a crucial practice for originations. Hughes (2010, p4) defines change
management as attending to organizational change transition process at
organizational, group and individual levels. There isnt a definitive theory for
managing change or a guideline for action by a change agent (Dunphy and Griffiths,
1994, p1). The management of change is shaped by varying elements such as the
nature of the change, the source of the change, and internal conflicts.
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2.2 Typology of change
Tushman et al (1985, 1986) claim that industry sectors evolve consistently in
fixed patterns. Romanelli and Tushman (1994) outlined one pattern of the industry
evolution. This pattern occurs as a result of a disturbance in the external
environment of the industry which causes a change in the dynamics of the
relationship between the stakeholders. This pattern of evolution is known as
punctuated equilibrium. Throughout the course of this pattern, organizations need
to improve their methods of executing their operations.
This improvisation is known as incremental change and focuses on the
modification of the existing methods without completely replacing them (Nadler
and Shaw, 1995, p.20). Kotter (1999) presents another type of change referred to as
a discontinuous change which occurs during punctuated equilibrium, and involves
a complete replacement of the current methods used or alternatively, using an
entirely different set of methods. Discontinuous change can be difficult for
organizations to manage as it re-constructs the employees perception of how the
organization operates (Brown and Eisenhardt, 1997).
Nadler and Tushman (1995) approached the change types from different
perspectives, differentiating the change by the pressure of time into two distinct
types. Reactive change refers to unexpected internal or external events that force an
organization to change immediately, whereas anticipatory change refers to a change
that an organization had expected and had planned prior to implementation.
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Nadler, Shaw and Walton (1995 p.24) combined the time pressure typology
with the industry punctuated equilibrium typology to create four types of change.
Tuning is an anticipatory incremental change, adaptation is a reactive incremental
change, re-orientation is an anticipatory discontinuous change and re-creation is a
reactive discontinuous change.
2.3 Recognizing the need for change
The change process begins by identifying the external actions or internal
circumstances which require or create opportunities for change. Managers
sometimes do not realize the need for change due to their lack of monitoring of the
wider environment. The external environment of an organization can be crowded
with opportunities and threats that can trigger change but some sources of change
may lie within the internal system of the organization (Hayes, 2104). Strebel (1996)
created a framework that can help managers to anticipate changes in their
organizations external environment. This framework focuses on innovation and
efficiency. The Swiss professor claims that when an innovation reaches its break
point of convergence of offerings, the attention switches to efficiency and when
efficiency reaches its break point of divergence of offerings, the attention switches
back to innovation.
Porter (1980) presented the concept of an industry life cycle. The American
academic claimed that an industry goes through four phases. Firstly, the
introduction phase, where industries emerge as the result of social trends that
created demand or as the result of technological innovation that reduced costs.
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Sabol et al (2013) claimed that the characterizations of this phase are technological
and strategic uncertainty, high initial costs, newly established firms entering the
industry, customers who are buying for the first time (early adopters), short
duration of the phase, subsidies to business. Secondly, the growth phase when an
organization transforms from innovation to cost efficiency. Porter (1980) explains
that investments in the growth phase are slightly smaller than the introduction
phase. Thirdly, the maturity phase when the industry reaches its maximum point of
efficiency. In this phase, growth is slow, profitability is in decline, and the level of
competition and consumer knowledge is high. Finally, the decline phase which is
evidenced by a dramatic fall in overall sales (Sabol et al, 2013). At this point in the
industry life cycle, investments are low, profit margins are decreasing and firms are
existing (Porter, 1980).
The Five Forces is a framework introduced by Porter (1979) to measure the
intensity of the competition within an industry. The power of suppliers refers to the
extent of dependability of the business on its suppliers and the power of buyers
refers to the ability of buyers to purchase the same product from different
businesses. threats of substitute is the feasibility of using a different product that
can fulfill the same need, threats of new entrants is the difficulty level of new firms
to enter the industry and the competitive rivalry refers to the ratio of firms to
customers in the industry.
Greiner (1972) introduced a model for the growth of organizations. This
model can be used to outline the internal sources of change. The model claims that
organizations go through five fixed patterns of crisis and that the solution for each
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crisis is the key to the organization's evolution to the next phase. Firstly, there is the
crisis of leadership as a result of the dependency of a business on creativity more
than efficiency. This crisis can be overcome by recruiting scientific management.
Secondly, there is the crisis of autonomy as a result of an organization's tendency to
focus on efficiency and neglect innovation in the early stage of the organization
evolution. In order to grow, firms need to find a balance between efficiency and
innovation, Greiner (1972) defines this as growth through delegation. The third
crisis is that of control which occurs as the result of an internal conflict of identity
within the organization between the innovative party and the efficient party. To
overcome this crisis, organizations must evolve to the coordination phase.
Coordination between innovative and efficient parts of an organization will create
the crisis of red tape. Organizations resolve this issue by distributing authorities
within the organization departments. Greiner refers to this as growth through
collaboration.
The industry grows as a result of the evolution of organizations which
operate within it. Therefore, this research will hypothesize the integration of
Greiners (1972) organization life cycle with Porters (1980) industry life cycle. The
purpose of this integration is to develop insights about the internal sources of
change in recruitment agencies. A crisis of leadership occurs during the introduction
phase as firms push to increase production and reduce costs causing the industry to
evolve towards the next stage called the growth phase. A crisis of autonomy
happens in the beginning of the growth phase with companies diversifying their
products and gaining stability. The control crisis occurs in the middle of the growth
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phase. The growth phase is characterized by a lesser diversification of products, a
more balanced ratio of quality and a healthy profit margin. The crisis of red tape
develops in the maturity phase forcing firms to grant further independence in their
sectors.. These sectors can invest in research thus making it possible for one sector
of an organization to create a new technology that results in the decline of the
existing industry but the development of a new one which differs in varying degrees
to the original industry.
Organizations can fail to recognize a need for change for a variety of reasons
including dominant ideologies and hierarchical structures which can block
innovation. Nadler and Shaw (1995) argue that short term success can make it
difficult for managers to recognize the need for change. These organizational
theorists explained that a prolonged period of success can result in a success
syndrome which will turn managers focus away from learning. Hayes (2014) claims
that when an organization is not concerned with the learning of its staff, the
customer focus decreases while the cost increases and innovation diminishes. This
will eventually result in a decline in the organizations performance.
2.4 Structured change models
Change has been a topic of interest for social scientists since the middle of
the 19th century. The first scholar to create a structured model to implement change
was Kurt Lewin. The German psychologist claimed that any social situation exists
because of two forces, one which pushes for change and the other which resists
change thus creating an equilibrium between values and beliefs that maintain the
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status quo Lewin (1951) claims that the first step involved in change lies in the
destruction of these values and beliefs and that this step is widely known as
unfreezing. This step is implemented by either increasing the forces pushing for
change or decreasing the forces resisting the change. Lewin argues that decreasing
the opposing forces achieves a more sustainable change.
The second step is referred to as the moving step which is the process of
shifting the values and beliefs from the current equilibrium to the new desired
equilibrium. The last step of Lewins model is the refreezing of the values and beliefs
in a new equilibrium. The significance of this step was questioned by Dawson
(1994) and Kantor et al (1992) who argued that an organization should desire to be
agile and not remain frozen in any one way of functioning.
Lewins model seems to be more sociological in nature than corporate. After
almost 60 years since the introduction of Lewins model, a business professor at
Harvard University named John Kottor, developed Lewins model of change to
become more corporate in nature. Kottor (1996) invented an eight-step model of
change by studying over 100 cases where organizations failed to implement change.
Kottor further expands Lewins unfreezing step to four steps. Firstly, by creating a
sense of urgency which helps to demolish the existing values and beliefs within an
organization. Secondly, by creating a guiding coalition which includes all influential
parties in an organization and ensures their support of the firms new direction.
Thirdly, by creating a new vision and mission which assists change managers in
measuring the progress of the change. Fourthly, by communicating this vision and
mission to all individuals within the organization.
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Kotter introduced three steps that ensure an organization moves seamlessly
through this stage. The first step involves the empowerment of employees to ensure
their engagement in the change. The second step involves generating short-term
wins and ensuring they are well-known to all individuals within the organization. Its
purpose is to undermine any opposition to change and is a technique widely used by
politicians to obtain public support for new policies. The third step is to consolidate
gains and create further change with the aim of moving completely from the old
equilibrium by increasing the base of the change (Murthy, 2007). Finally, Kotter
suggested only one step to ensure the re-freezing stage and that is to anchor the
new methods to the culture of the organization.
Using his book How to manage organizational change, Hussey (2000)
stipulates various steps within which effective change can be achieved in an
organization. The first step is to envision, which entails creating a vision that the
change will bring in the future and thus motivate the members of an organization to
embrace the change in question. The second step is to activate, which centers
around communicating the idea and vision of change to the concerned parties.
Activation also involves providing a clear outline of what the change will mean for
an organization in line with its current position and where it hopes to be in the
future. However, as Hussey argues. If activation fails, then the only option for an
organization is to coerce the involved parties to accept change and in so doing, move
on to the next step.
The third step of the Hussys model involves support, which usually requires
the leaders and implementers of change to encourage others to embrace the change.
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It entails reassuring the parties affected by the change of its benefits and
communication on the best ways of implementing the changes. The fourth step is to
implement and involves examination of the various elements required to achieve
the implementation such as building teams and support structures (Boyatzis &
McKee, 2005). The fifth step is to ensure, which requires management to reinforce
the vision of the change by demonstrating its significance to ensure it remains
relevant. The final stage is to recognize and involves observation of the changes
influence on the performance of an organization.
Waterman et al (1980) presented a more holistic approach to organizational
change. Their work resulted in the creation of the McKinsey 7s framework which
comprises seven factors that collectively operate to effect change. These factors are
system, structure, strategy, style, skills, staff and shared values. The model stresses
that all the parts are integrated and should be addressed in a holistic manner.
Encompassing all the seven factors is necessary for a smooth transition in change
implementation and entails careful consideration of each contributory factor
towards the growth of an organization. Kottor (1996) argues that the significance
and the benefits of the change need to be communicated to individuals within the
organization to ensure their contribution in the process. Employees will only buy
into a change after employers convince and give them reasons for the proposed
changes (Cameron & Green, 2004).
Sirkin et al (2005) presented a different angle of approaching change
management known as the D.I.C.E framework. They argued that there are four
factors that determine the output of the change. These factors are; the duration of
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the change project, the performance integrity of individuals involved in the change,
the commitment of people to the change, and the abnormal effort given by members
of the organization to implementing the change. Sirkin et al (2005) argue that
change is more likely to succeed when the duration is low and integrity,
commitment, and effort are high. An alternative approach to managing change was
introduced by Cooperrider, D.L, and Srivastva, S (1987) who explained that
managers should focus on building the positive side of the change, instead of
focusing on resolving the issues associated with the change. This approach is known
as the appreciative inquiry.
It is apparent that the focus of researchers on change has differed in terms of
issues. Whereas Lewin (1951) and Kottor (1996) have modeled change as a shift in
values, Waterman et al (1980) looked at the surrounding factors in the organization
that shapes the change. Sirkin et al (2005) thought social factors and organizing
arrangements are key to ensuring the success of the change. This paper will
investigate the approaches which recruitment managers use to implement change in
small and medium enterprises (SMEs).
2.5 Change agents and change recipients
Change agents are people responsible for directing, organizing and
facilitating change in organizations Caldwell (2006, p31). Hughes (2006) argues
that change is usually affected by groups rather than by an individual. Pitte et al
(2002) uses the term playmaker, a concept in football terminology, to describe
change agents. A playmaker refers to the player who gets the team moving, links the
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play and creates chances. Couros (2016) outlined the five characteristics of a change
agent including clear vision, patience yet persistence, asking tough questions,
leading by example and developing strong relationships built on trust.
Ford et al (2008, p.362) describe the role of change agents as doing the right
and proper things while change recipients throw up unreasonable obstacles or
barriers. Caldwell (2003) explains three elements of the relationship between
change agents and change recipients. Firstly, the change agent perceives the change
recipient as a selfish individual. Secondly, the change agents attitude may bolster
the resistance to change. Thirdly, resistance can have a positive impact on the
change process. Despite change agency being an encouraged behavior in
organizations, it could result in undesirable outcome such as promoting resistance.
In the force field analysis, Lewin (1951) argues that decreasing resistance to change
is a more effective method than increasing the forces pushing for it. On the other
hand, Cooperrider, (2002) implies that the significance of change agents is greater
than the difficulty of resistance and suggested that organizations should focus on
the positives and ignore the negatives of change.
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3. Research design and methodology
3.1 Primary data collection
The primary data collected for this research is of a quantitative nature
through close-ended interviews of managers and line managers in recruitment
companies in the UK. Quantitative research is where data is subjected to numeric
and statistical manipulation (Rubin & Babbie, 2010). Raw data is converted to
numeric forms that make sense after analysis. Quantitative analysis is more
definitive and answers the questions of what and how? The researcher selected this
type of analysis because it is based on both primary and secondary data and will
help determine the main argument. The questionnaire was designed to be
straightforward and inclusive of change methods and types.
Primary data is based on first-hand sources and to that end, the survey was
conducted in recruitment firms throughout the UK via telephone. Before the phone
interview, there was a pre-test interview and a discussion with potential
participants to establish if anything needed to be amended prior to the actual data
collection (Burke & Miller, 2001). The pre-test period was also instrumental in
ensuring that the data collection was as clear as possible. Audio-taping as well as
note-taking were used in some instances during the pre-test. The length of the
interview was also designed to ensure the conversation was as informative as
possible within the shortest timeframe and the expected duration was also
indicated to the respondents prior to the interview.
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The survey involved over two-hundred and fifty phone calls to recruitment
agencies, with twenty-one managers completing the survey. The researcher
provided a brief introduction to the respondents on the purpose of the interview
and an assurance of confidentiality which is an important aspect of any research. It
also became apparent that an interview appointment time must be established to
ensure that the managers had enough time to respond to the questions (Burke &
Miller, 2001). Nevertheless, some respondents requested to reschedule the
interview due to the unpredictable nature of their work or emergency meetings. The
researcher maintained a professional tone throughout the course of the interview to
avoid any sense of bias with the respondent. Once a response was received to a
question, the researcher continued to maintain a neutral stance and did not
respond unless the respondents answer required further clarification. The
researcher kept a daily log of respondents, answers, and any rescheduled
appointments. The primary challenge of the phone interview was to complete the
interview in its entirety, as phone conversations were frequently interrupted or
discontinued. Although there were many follow-up questions, the responses may
have been more concrete if the natural flow of the interview had not been
interrupted.
3.2 Primary data allocation
Findings from the primary research will be used to investigate any relations
or correlations that exist between the change level, change diagnosis model, change
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type, and change process model. Findings from the survey are segmented into four
sections.
The first part of the study aims to measure the change level in the
organization using Tofflers (1970) three measures of future shock which include
transmittance, novelty, and diversity. The research will use the manager's
perception of these measures to define the change level in the organization as either
low, medium or high. The second part of the survey consists of two questions and
aims to determine the change type the organization usually experiences. The
findings of this section will determine which of the Shaw and Walton (1995) four
types of change is the most likely to eventuate in that firm. The third section is
concerned with determining the methods managers use to diagnose the need for
change. The last part will identify which of the structured change models that
recruitment managers are most likely to use as well as identifying the method they
use to intervene in the change process. The primary research is designed to
establish the methods employed by a manager in the industry and is not concerned
with studying the way in which these methods are used.
3.3 Secondary data collection
The secondary data was collected from market reports, government reports,
surveys and observations of the industry insiders to develop a deeper
understanding of the industrys status quo and emerging trends. Secondary findings
include the external factors that influence the recruitment industry.
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3.4 Secondary data allocation
Findings of the secondary data will be used to investigate the external
drivers for a change in the industry. This investigation will be carried out by
determining the age of the industry using Porter (1980) industry life cycle. The
secondary findings will be used to shed light on internal sources of change by using
the previously mentioned integration between Porter (1980) industry life cycle and
Greiner (1972) organization evaluation. Sterabl (1996) innovation and effectiveness
will be applied to the research using the secondary findings.
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4. Methodology and structure
Firstly, the research presents the secondary findings of the UK recruitment
sector without applying any of the frameworks. Secondly, the results of the primary
research are clearly reported. Finally, the primary and secondary data are analyzed
and integrated.
4.1 Secondary findings
According to the Recruitment and Employment Confederation (REC), the
value of the UK private recruitment industry reached 28.7 billion at the end of
2014 and has exceeded its pre-recession peak. In the same year, the industry
witnessed the launch of 4,083 new recruitment agencies, an increase of 7% since
the previous year and the highest figure since 1990. Richard Prime, the CEO, and
founder of Sonovate, one of the largest funding firms for recruitment agencies in the
UK explains The UK recruitment sector is thriving, and the industrys rapid growth
is showing no sign of slowing. This is good news for the economy, especially during
the current climate of uncertainty following the Brexit vote (Jefferey, 2016).
The prosperity in the UK labor market is the main driver of rapid growth in
the private recruitment sector. Sonovate (2016) claims that in 2015, the
employment level in the UK rose by the highest rate since 1971. Another major
driver of growth in the industry is the rapid expansion of other industries in the UK
such as the construction and IT industries. According to a recent report by
Contractor UK (2015), the availability of short-term vacancies in the UK has reached
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its highest point since 1999. People are highly confident of the employment sector in
the UK and this factor has also contributed to the growth of the recruitment
industry. According to the National Careers Services (2015), job confidence is at an
all-time high, reporting that 80% of people are positive about being employed.
While there is not accurate information regarding the level of investment in
the UK recruitment industry, this paper assumes that investments in the
recruitment companies are on the rise. This assumption is based on the following:
1) The number of new entrants to the industry is increasing year after
year. New companies cannot enter an industry without available
external financing.
2) Sonovate is the market leading firm that secures financial contracts
for recruitment agencies. The company is growing rapidly and
according to the Online Recruitment Resource (2016), Sonovate is
growing at the rate of 20% a month.
3) The UK Recruitment Trends Report by Bullhorn (2015) reported that
36% of the firms in the industry are seeking to expand.
4) The rise of the profitability of recruitment firms. The Association of
Professional Staffing Companies in partnership with the advisory firm
Deloitte (2015) released a report claiming that 83% of the
recruitment companies earned more than the previous year.
The recruitment buzz (2015) reported that the recruitment industry is witnessing a
growing demand in the sectors of transportation (36%), construction (30%),
hospitality (22%), manufacturing (29%) and real estates (29%). Firms within these
24
sectors of the UK market adopt to recruit externally. On the other hand, the sectors
with the least demand for recruitment services are media (no growth), healthcare
(1%), human resources (4%), information technology (4%) and financial services
(4%). The sectors which have the slowest growth rate in terms of demand for
external recruitment have recruited externally for longer periods than the sectors
with high growing demand rates. For example, although the financial service sector
grew by only 4% in 2015, it demanded 103,347 vacancies in comparison to 33,074
demanded by the transportation sector which had grown by 36% in the same year.
Rapid growth, increasing investment, new customers, and new entrants
suggests the recruitment industry is in the introduction phase of Porters (1980) life
cycle. Although mass recruitment has existed since the building of the pyramids in
ancient Egypt, the recruitment industry in the UK flourished in the 1950s and
interestingly, the industry is still growing today.
The first half of the second decade of the 21st century saw the introduction of
many innovative concepts in the UK recruitment sector. Talent pools and applicant
tracking are some of the recent trends. Another innovative approach emerging in
the industry is the hiring of freelancers to execute specific tasks. Companies such as
Upwork and Toptal that offer a platform to facilitate interactions between
employers and freelancers have witnessed a major growth recently. According to a
research conducted by the Public Consulting Group UK (2015), freelancing is the
fast growing sector in the UK labor market with a 45% rise in the number self-
employed individuals in 2014. Another interesting trend in the industry is the
emergence of firms which offer courses to individuals in the UK on how to set up a
25
recruitment agency in their home and tempt participants with the possibility of
earning 50,000 annually.
The focus on the recruitment industry seems to be in the march to switch
back to innovation after its prior interest in efficiency since the introduction of
online recruitment in the late 1990s. However, there is no dominant innovative
trend that can direct the industry into the mass-production pattern within that
trend, thus the industry is close to but not yet at the break point of the efficiency
focus.
There are some factors in the UKs corporate environment that can impact
the recruitment industry. In 2013, the British parliament passed an apprenticeship
reform introducing eleven standards of apprenticeship that twenty-nine market
sectors in the UK must comply with. Moreover, the Equality Act of 2010 which
prevents employers from forcing an employee to retire at the age of sixty-five. The
pension age will gradually increase until it reaches sixty-six in 2020. Although UK
employment is at a historical high, many of those who are considered to be
employed are on zero hour contracts. According to the National office of Statistics
(2014), the number of people who are on a zero hour contract increased by 25% to
reach 1.8 million. A major event in the UK business environment is the Brexit vote.
Since the United Kingdom is anticipated to leave the European Union by the summer
of 2018, there is uncertainty about the legal requirements for EU citizens to work on
in the UK. The introduction of legislation that will require EU nationals to possess
work permits in order to work in the UK can result in great shortage in terms of
supply in the labor force.
26
Future skills demand that those in the labor market have to leave work after
some time or they have to go through change management. The UK labor market is a
critical enabler of the country being a global leader when it comes to the world
market. The competitiveness of the country lies on the skills of the labor market. It
is projected that in the next few years that there will be massive growth in the
relatively low skilled jobs and highly skilled jobs (Blundell, Bozio & Laroque, 2013).
This means that the middle-level job workers may be left out, the only solution they
have is to move to the highly skilled jobs. Subsequently, there will be a change in the
next few years in the UK labor market. There will be more employment
opportunities in the service sector and fewer jobs in the manufacturing sector
primarily due to technology. It will be advantageous for workers to learn more
technical skills or project management which is always a requirement in the service
industry. This is not unique to the UK but also to the many other developing
countries (Blundell, Bozio & Laroque, 2013).
4.2 Primary findings
It appears that the overall level of change in the recruitment industry is
medium with a low transience rate, medium novelty rate, and high-medium
diversity. 86% of the managers interviewed perceived their firms to be diversified
or very diversified. Twelve of the eighteen respondents believe that a supporting
change agent is more significant to the change process than resolving the issue of
change recipients. Nine of the twelve managers who reported a low transience rate
also think that tuning is the most common change in their firm, On the other hand,
27
60% of the managers who reported a low novelty rate believe that tuning is the
most likely change to happen in their organization. Only four of the eighteen
managers who identified their company as diversified or very diversified indicated
that tuning is the change that occurs in their organization. These findings suggest
that tuning can be seen in companies with a low level of transience, novelty, and
diversity.
Changes in the recruitment industry seem to be anticipatory with 86% of the
respondents explaining that their firms usually prepare for a change before it takes
place. On the other hand, 67% of the sample interviewed indicated that change
within their firms is usually incremental. Twelve managers implied that tuning is
the most common change for their companies to experience, making it the most
frequent change from the combined typology to occur in the recruitment industry.
Re-orientation is the second most likely change to occur in the industry, with more
than a quarter of the sample indicating that it is the kind of change their
organization usually experiences. Two managers suggested that they have
experienced adaption and only one indicated that his firm experienced re-creation.
The twelve managers who have had managed a tuning in their companies
stated that they use internal sources to diagnose the need for change, moreover only
one out of the six managers who have gone through re-orientation in their
organization indicated a use of an internal diagnostic method. Whereas, five of these
six managers reported a use of external indicators to diagnose the needed change.
This is an interesting finding, as it suggests that transformational/discontinuous
change happens as a result of focusing on the external change indicators and
28
neglecting the internal indicators. Another finding supporting this correlation is that
seven out of the twelve managers who reported tuning as the most common change
indicated the use of an internal change diagnostic method.
Only three managers reported the occurrence of a reactive change in their
firms. None of the respondents indicated the use of an internal diagnostic method,
whereas twelve of the eighteen managers who reported anticipatory change implied
the use of both internal and external diagnosing methods. Thirteen of the eighteen
managers who reported anticipatory change believe that encouraging change agents
is a better method of intervening in the change process. On the other hand, all three
managers who indicated the tendency of reactive change believed that managing the
issues of change recipients is of greater significance to the transition process.
These findings suggest that organizations which promote the ideology of change
agency are preferable in terms of anticipating change.
The industry seems to be the main driver for change in the recruitment
companies as 81% of the interviewed managers stated that change happens as a
result of changes in the market. Interestingly, only 33% of the interviewed
managers felt that there is a need for change when the performance declines.
Nineteen of the interviewed managers obliquely expressed their awareness of the
consequences of the success syndrome. This might explain the high level of
proactive change occurrence. In fact, 86% of managers who are aware of the success
syndrome stated that their firms usually prepare for a change in advance.
A notable finding indicated that only three of the twenty-one managers
interviewed reported ever using a change model. All three agreed on two aspects of
29
the change. Firstly, the change process should be approached by ensuring the
support of people within the organization. Secondly, sources of change are only
external. Only five managers implied that the Kotter and Lewin models inspire their
change management approach. Four of these managers indicated that their
intervening method in the change process revolves around supporting change
agents. The primary findings indicated that the D.I.C.E framework works in
accordance with the change management style of recruitment firm managers. Since
43% of managers implied that the D.I.C.E framework fits their change approach in
comparison to 33% implying Mckinseys 7s and only 24% implying Lewin and
Kotter. 54% of managers who indicated the appliance of the D.I.C.E to their
approach believe in the management of the change recipients issues as a more
critical method of intervention. These findings suggest that Lewin, Kotter, and their
parallel steps models are suitable for managers who tend to be keen on supporting
the change agency ideology, whereas the D.I.C.E formwork and its comparable
change models support the change resistance management approach.
4.3 Findings analysis and integration
4.3.1 Industry life cycle and change types
The recruitment industry is currently in the introduction phase and tuning
change is the most common change type that organizations within the industry
experience. Since profitability is increasing in the introduction phase, organizations
do not find the need to implement a discontinuous change. Tushman (1985)
established that evolution in industry patterns can cause incremental change.
30
However, Tushman (1985) did not claim that organizations can anticipate this
change. The focus in the recruitment industry is on efficiency which implies that
proactive change is likely to take place, while reactive change is likely to happen
when the focus is on innovation. This suggests that tuning is likely to occur when the
industry is in the introduction phase and the pattern of focus is on efficiency.
This paper will examine this hypothesis of the recruitment industry. The
introduction of online recruitment in 1999 was the break point of focus from
innovation to efficiency. Since that point, recruitment companies have been
concerned with ensuring that online recruitment is a cost efficient process. During
this period many incremental changes have occurred such as screening, search
engine optimization, and LinkedIn. These changes were easily anticipated by
industry insiders. Organizations within the recruitments industry do not usually
implement discontinuous change because of increasing demand and significant
profit margin.
When the efficiency of an industry reaches its divergence point of offering,
the industry reaches the growth phase because the market is crowded with firms
that can fulfill the demand. In this phase, the rate of transformational
discontinuous change occurrence will witness a slight increase because the sector
will become more competitive. Anticipatory change is more likely to happen in this
phase as firms are still focused on efficiency. Therefore, adaptation is the most
common change type that firms within an industry in the growth phase are likely to
implement. These adaptation changes will contribute to what Greiner (1972) refers
to as internal organizational growth through delegation.
31
Once online recruitment reaches its highest point in efficiency, recruitment
companies will need to differentiate their services from their competitors. This step
requires firms to implement changes in their operational methods in order to break
out from the standardization phase and grow into the delegation phase. For
example, recruitment agencies might need to conduct the interviews or examine the
candidates on behalf of their client. The responsibilities of running these interviews
and exams will be delegated to different employees who are responsible for building
a pool of candidates. Recruitment firms need to be aware of the necessity of these
changes as a result of the intensity of competition at this stage which also makes the
availability of information high.
At the break point of convergence offerings of efficiency, an industry reaches
the maturity phase. Changes in this phase are likely to be discontinuous due to small
profit margins and lack of growth. The capability of an organization to anticipate
changes at this phase is low as the focus will be switched to that of innovation.
Unexpected discontinuous change leads to the re-creation of the firm and possibly
the industry. An example of recreation change at the maturity phase was seen
during the introduction of the smartphone by Apple. This development pushed the
mobile phones industry into the decline stage and launched the smartphone
industry itself.
It is hard to anticipate the sort of re-creation change that the recruitment
industry will experience in the future. However, through studying the history of the
industry, it is clear that the online recruitment has launched an entirely new
industry while the traditional recruitment industry is in decline.
32
4.3.2 Transformational change and internal diagnosis
Kotter (1994) claims a 70% failure rate in the implementation of
transformational change. The primary findings suggest that managers who neglect
internal indicators and focus on external indicators are likely to fall into the trap of
unneeded transformation. Transformational change shifts the equilibrium of values
and beliefs which consume a significant amount of organizational resources and
time. By monitoring the internal situation of the organization, managers can identify
opportunities that will reconfigure the change into an incremental rather than a
discontinuous change.
It appears that step models are the most suitable approach for implementing
a transformational change. Lewin (1951) and Kotter (1996) models which are part
of the curriculum of change management courses do not include a method of
measuring the internal situation in the organization. In fact, Lewin (1951) claims
that the change process cannot commence without the destruction of existing
values. Form the Kotter (1996) and Lewin perspective, the change management
should not take the views of change recipients into consideration. Furthermore,
Kotter delegates three steps out of his eight steps to suggest tactics that undermine
the resistance to change.
The findings of this research suggest that managers who tend to adopt an
approach similar to Lewin (1951) or Kotter (1996) tend to support change agents
and underestimate the issues of change recipients. Change agents can guide
managers to through the modifications required for transformation. Whereas,
33
change recipients can help the manager to discover internal values in the
organization that can make the change incremental. Being aware of the popularity of
the Lewin (1951) and Kotter (1996) models forces some interesting questions: do
managers implement transformational change because they desired to use Kotter
(1996) and Lewin (1951) models?, are managers aware that these models are
designed for transformational change?, are managers aware of the different types of
change?, do managers believe change resistance is an unhealthy habit? Answers to
these questions can be gathered through research to investigate change
management education at a later date.
4.3.4 Change agency and proactive change
Although an over-supportive environment for change agents can lead an
organization into unneeded transformation, their importance to the change process
can not be underestimated. The research found a correlation between supporting
change agents and the occurrence of anticipatory change. Change agents express
their desire for change by searching for threats in an organization's internal system
and opportunities in its external environment that trigger change. This can be the
result of a change agents dissatisfaction with the status quo.
Change agents ability to anticipate change can help organizations prepare
for change and ensure an incremental change towards fine tuning instead of
adaptation and a transformational change to reorientation instead of recreation. On
the other hand, a change recipients tendency towards contentment with the status
quo has the opposite effect on an organization. These differences in the perceptions
34
of change agents and change recipients can be used together in an interesting
approach. Change agents are more capable of identifying the weakness and
negatives of an organization's status quo whereas change recipients can outline its
strengths and positives. This approach can also be used by a manager to distinguish
the change agent from the change recipient.
4.3.5. D.I.C.E framework and change resistance
The research found a relation between the D.I.C.E framework and change
resistance management. Unlike Lewin (1951) or Kotter (1996) models, D.I.CE
focuses on ensuring the integrity of the employee in their effort in the change.
Managers who are keen in resolving the issues of people regarding the change can
use the D.I.C.E framework to facilitate the change.
The framework is designed to measure the change readiness of an employee
in the organization for the proposed change. Managers can gather information about
individuals who oppose the change and work on resolving these issues before
starting the change process. This model can also be used as a diagnostic model for
change resistance level.
4.3.6. D.I.C.E framework and fine tuning
The D.I.C.E framework seems to be an efficient model for implementing fine
tuning changes. The findings of the research indicated that the D.I.C.E framework is
suitable for the management approach used in the recruitment industry to
implement incremental change. Incremental change needs to be implemented in a
35
short timeframe with minimum effort which is in accordance with the D.I.C.E model.
The model can also manages the readiness for change which makes it useful in the
preparation for tuning.
Preparation for tuning will include the measurement of the level of integrity,
effort, and commitment that people within the organization are willing to give to
ensure a successful implementation of the change. By measuring these three
aspects, managers can work towards increasing them prior to the implementation of
the change so that it occurs within a short timeframe and with little effort.
36
5. Conclusions and recommendations
5.1. Conclusions about change management
In the introduction of an industry phase, tuning change is most likely to occur
in organizations operating within that industry. Adaption and re-orientation
changes happen more often in companies that compete in an industry that is in the
growth phase, whereas re-creation change is more likely to take place in an
organization in an industry in its maturity phase. Firms can anticipate change when
the industry is focused on efficiency, whereas reactive change happens as the result
of a switch in focus towards innovation.
Negligence in monitoring the internal system of an organization can cause it
to undergo an unneeded transformation. Unreasonable support for a change agent
can block managements awareness of the organization's ability to perform the
change incrementally. Change recipients can be an important asset for a manager in
evaluating the ability of an organization's existing systems to integrate with the
proposed change without going through an unwanted transformation.
Process steps models such as Lewin (1951) and Kotter (1996) are designed
to manage transformational change and should not be used to manage incremental
change. Such an action can lead to undesired outcomes. Process steps models do not
tolerate resistance and are overly supportive of change agents. Alternatively, models
that focus on the characteristics of change and change resistance management such
as the D.I.C.E framework should not be used in transformational change as they are
designed for incremental change.
37
Organizations that promote the ideology of a change agency tend to
anticipate future changes, whereas organizations that are more inclusive of the
change recipients contribution to change tend to not anticipate change. Managers
can receive a more accurate evaluation of the organization's strengths from change
recipients, whereas change agents are more competent in analyzing the
organization's weaknesses. A balance between supporting change agents and taking
the views of change recipients helps change managers in making more informed
decisions.
5.2. Conclusions about change management in the recruitment industry
The traditional recruitment industry in the UK has been in decline for many
years. The recruitment industry in its latest formation began in 1999 with the
emergence of online recruitment and the industry is still in the introduction phase
today. Therefore, the current change type in recruitment firms in the UK is tuning.
Recruitment companies can benefit from the use of the D.I.C.E framework to manage
change.
The growing number of self-employed individuals and freelancers in the UK
has shifted the employers demand from candidates to completion of individual tasks
due to cost efficiency. New recruitment companies are recommended to focus on
efficiency in the emerging sectors of the industry such as transportation, hospitality,
software and IT.
38
5.3. Recommendations of further studies
Future research can undertake to determine the role of change recipients in
preventing an organization from performing an unneeded transformation. This
research will require extensive study of organizations who have failed to transform
and further investigate the level of necessity of the transformation.
Studying the relation between the industry phase and the change typology
can generate insightful finding for the filed of change management. This research
can be executed using case studies from different industries.
5.4. Research limitations
There are serval limitations for this research. First, the primary data was
collected from relatively small sample. Second, the research does investigate the
techniques managers use to implement their change management approach. Third,
this research is limited to managers of small firms and medium firms as the the
sample did not include mangers how manger more than 150 employee.
39
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7.0 Appendices
7.1 Interview questions
1. On a scale of 1 to 10, how important is it for your company to manage
change?
2. In your company, how often do people relocate their offices, change roles or
work in different teams?
a. Not often
b. Often
c. Very often
3. How often does your company introduce new tools e.g. software, systems
etc.?
a. Not often
b. Often
c. Very often
4. How diversified is your company?
a. Not diversified
b. Diversified
c. Very diversified
5. When change happens in your company is it to:
Improve the current ways you work OR introduce new ways to work?
6. When change happens, your company:
Has prepared for it in advance OR it happens unexpectedly?
7. Choose at least one of the following. Your company changes because of:
48
a. Declining performance
b. Competition
c. Changes in the market,
8. When the company is doing exceptionally well there is no need to change:
a. Agree
b. Disagree
9. Have you used any change model before? If yes, please name it? On a scale of
1 to 10, how useful did you find it?
10. The best way to look at change is
a. Step by step process
b. Looking at it from all aspects of the business
c. Getting the support of staff.
11. What is more important:
Encouraging people who support change OR managing the issues of people
who resist change?
49
7.2 Interview answers
Adecco
Name: Kelly Hatch
1. 10
2. Not often
3. Often
4. Not diversified
5. introduce new ways to work
6. Has prepared for it in advance
7. Competition, Changes in the market
8. Agree
9. No
10. Looking at it from all aspects of the business
11. managing the issues of people who resist change
Back-2-Front
Name: Osca Hollingworth
1. 8
2. Not often
3. Often
4. Very diversified
5. Improve the current ways you work
50
7. Changes in the market,
8. Disagree
9. n/a
10. Getting the support of staff.
11. Managing the issues of people who resist change
Benchmark Recruit
Name: Courtney ONeill
1. 7
2. Not often
3. Often
4. Diversified
8. Disagree
9. System, 8
11. Encouraging people who support change
51
Best Connection
Name: Ellie Beats
1. 10
2. Often
3. Often
4. Very diversified
7. Declining performance, Changes in the market,
8. Disagree
9. No
10. Step by step process
Evans Hart
Name; Steven Evans
1. 10
2. Not often
3. Often
4. Diversified
5. Introduce new ways to work
7. Declining performance
52
8. Disagree
9. No
First Recruitment Company
Name: Laura Entworth
1. 8
2. Not often
3. Very often
4. Very diversified.
5. Both
6. Has prepared for it in advance.
8. Disagree
9. No
10. Looking at it from all aspects of the business.
Kelly Services
Name: Mark Hakk
1. 9
2. Not often
53
3. Often
4. Very diversified
5. both
7. Declining performance, Competition, Changes in the market,
8. Disagree
9. No
Katie Bard
Name: Ruth Meredith
1. 10
2. Not often
3. Not often
4. Diversified
8. Disagree
9. No
54
London Sales Recruitment
Name: Gerrod Willington
1. 10
2. Very often
3. Often
4. Not diversified
8. Disagree
9. No
10. Step by step process, looking at it from all aspects of the business, getting
the support of staff
Linear Recruitment
Zooey Tone
1. 10
2. Not often
3. Not often
4. Diversified
55
7. Declining performance
8. Disagree
9. No
Modern Business Support
Name: Stacey Wood
1. 10
2. Very often
3. Not often
4. Very diversified
5. Improve the current ways you work or introduce new ways to work
6. Happens unexpectedly.
7. Competition
8. Disagree
9. No
Nonstop Recruitment
Name: Ariel Ahmeti
1. 10
56
2. Not often
3. Often
4. Very diversified
5. Improve the current ways you work or introduce new ways to work
8. Disagree
9. No
Pure Staff
Name: Johann Hanson
1. 10
2. Often
3. Not often
4. Diversified
8. Disagree
9. n/a
57
Randstad
Name: John Arone
1. 10
2. Often
3. Often
4. Diversified
5. Both
8. Agree
9. Kotter, 7
Reed Recruitment
Name: Cire Crima
1. 7
2. Not often
3. Not often
4. Not diversified
5. both
58
8. Disagree
9. No
11. Managing the issues of people who resist change.
React Recruitment
Name: Terry Pease
1. 10
2. Very often
3. Often
4. Very diversified
6. Happens unexpectedly
7. Competition, changes in the market,
8. Disagree
9. Yes
10. Getting the support of staff
11. Managing the issues of people who resists change
Robert Half
Name: Pete Osborne
59
1. 10
2. Not often
3. Not often
4. Not diversified
5. Both
8. Disagree
9. No
Robert Half
Name: Sara Rudd
1. 10
2. Often
3. Often
4. Diversified
8. Agree
9. No
60
Stelfox
Name: Natasha Sheraton
1. 10
2. Not often
3. Not often
4. Diversified
5. Both
7. Changes in the market
8. Disagree
9. No
Supreme Recruitment
Name: Joseph Barnes
1. 9
2. Very often
3. Not often
4. Very diversified
61
7. Competition, Changes in the market,
8. Disagree
9. No
The Best Connection
Name: Teresa
1. 9
2. Very often
3. Not often
4. Diversified
6. Happens unexpectedly.
7. Competition
8. Disagree
9. No
62
7.3 Findings
Figure 1.0
63
Figure 1.2
Figure 1.3
64
Figure 1.4
65
Figure 1.5
Figure 1.6
66
Figure 1.7
Figure 1.8
67
Figure 1.9
Figure 2.0
68
8.0 Reflective report
My journey with writing this thesis started in March 2016, I was hopping to create a
new change model that can be used to for change management in small companies.
The first person I share my with was ambition was my supervisor Dr. David Francis
who realized that I do not have the capabilities or the resources for such research,
however he did not directly communicate directly this to me in order not to let me
know. Instead he suggested that I do a paper evaluating the used change models and
the extent of their usefulness for managers and provided me with serval articles and
a book on executing small-medium researches.
All I wanted was to create a change model. In my mind, I did not go through the
steps of executing such task, and I just pictured the model not the effort. Although,
the articles and the book my supervisor suggested to me were of a high credibility
and I would not have been able to find them by myself, I was reluctant to read them
because all I could think of was the model, and whenever I read a paragraph I was
thinking of how it could be used in the creation of a change model. I was ignorant of
the fact that the purpose of reading these articles was to enlarge my knowledge
about the topic and enhance my capability of executing researches.
After reading these articles, I decided to take a break from the research. I was
feeling tired from studying as I had been in constant academic education for 6 years,
I was questioning the purpose of my thesis and lost my motivation. I came back to
work on the thesis on the beginning of July but my focus was not directed, I came up
with a research proposal and sent to my supervisor. Honestly, the proposal did not
69
even make sense to me. My supervisor replied within days to my proposal giving me
useful suggestions in how to make use of what I had. I felt really ashamed as I
realized that at that point the work my supervisor has done in my thesis was more
than the work that I had done. Therefore, I decided to work on the thesis with more
integrity.
After I have done extra readings on research and the topic of the change
management, I decided to focus my research on the extent managers of the Business
Service Industry use structured change models. It was at the point of my
preparation for the research design when I received the news that my mother who I
hadnt seen for three yeas was about to undertake a surgery in Tunisia. I had to go to
visit my before she takes the surgery and spent few week in Tunisia. My thesis was
always in the back of my mind during my time in Tunisia.
As soon as, I returned to Brighton I designed the research method which involved
the collection of qualitative data through interviews and I wrote a review of the
relevant literature and sent my work to my supervisor. Again, it did not take him
long to get back to me with his comments about my work. I realized that my use of
literature was superficial and not at masters level. I decided to work harder on the
quality of my research and the credibility of the sources I use. I conducted three
interviews with mangers of recruitment agencies and management Consultancy
Company.
I completely re-wrote my literature review, I used more than 30 books and journal
articles; I also went in-depth of the background of the researchers I cited. I was
motivated to analyse the interviews that I had conducted, however I could not find
70
any interesting pattern of behavior, the findings were rather general and not
insightful about the methods these managers use in change. The answers they gave
were more of suggestions for my research. I was aware that using these interviews
was not going lead to significant findings.
I decided to change the nature of my interviews from qualitative to quantitative. I
designed a close-end interview questions and decided to focus my research on the
UK Recruitment Industry. The time of my deadline was closing and I was aware that
three interviews will not be enough to for quantitative findings to be credible. After
doing a research about research methods I decided to do the interview by
telephone.
In the course of one week and with help of my brother, I made more than 250 calls
to recruitment firms around the UK; only 21 managers completed the interview. It
was difficult to get to managers; I had to reschedule the call in many occasions. I
found it useful to start the call by saying that I am doing a postgraduate research for
the University of Brighton also the use of the word interview is more effective than
survey. I was overwhelmed by the findings as it outlined some patterns of behaviors
in the change management that I did not expect. Before I do the research I did not
know the joy when you discover a tendency or a pattern of behaviour, this made me
think of what the outcome could have been if I have done the research on much
bigger scope. A sample of 250 managers would have given my findings much more
credibility.
71
The lessons I have learned from writing this thesis are the following: First, I can not
determine the finding or the outcome of the research before executing the research,
limiting myself to a particular outcome takes away the joy of researching. Second, I
should not underestimate the amount and thoughts that are put in social researches.
Finally, in research, when things are not working out I should not be afraid of
changing my methods.
72

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University of Brighton

Studying organizational change in terms of

Case study The UK recruitment industry

Ammar Fathi Ammar Hmid

The main objective of the research is to study change management in terms

industry as a case study. In our era of globalization, it is abundantly clear that

witnessed an extraordinary increase in the speed in which technologies are

developing and it is in this new and rapidly changing environment that

organizations are investing significantly in the resources required for effective

change management. Change management refers to the process of smoothly

initial cycle of denial, followed by a phase of resistance and finally a commitment to

change. The overarching vision of any change is to maximize workers productivity

resulting in higher margins and also provide an improved competitive advantage.

result in an unsuccessful implementation. The main objective of the change process

engagement is imperative at all stages of the change process to increase acceptance

and to help employees to perform to their best of capabilities. Effective

communication is central to identifying any challenges that an employee might face

as they transition to a new environment.

The change vision is also an important element that contributes to the

Riley, 2000). It is the responsibility of management to create the right mindset

key to a successful change implementation and can help management gather

essential knowledge regarding the concerns of their personnel.

Communication is another important aspect of the change process (Mowat,

from resistant parties. It is important that any communication is targeted at those

smooth running of communication relating to any concerns or observations

the required goals.

The recruitment industry is critical to economic growth in the UK and closely

become a necessity in this era of globalization.

shortage of labor supply as a result of Britains participation in the Second World

War. A significant proportion of the population was conscripted thus creating a

who advertised these job opportunities among the remaining population.

entering the market at the beginning of 2016.

1.2 Aims and objectives

The research question which is addressed in this thesis is as follows:

This research answers this question by addressing the following:

in the organizations internal system.

2) The impact of the organizations change diagnostic method on its change

3) The type of change that usually happen in organizations in the UK

2.1 Change of change management

an individual perceives to be the essential factors of life (such as places, people, or

than the accelerating pace of change. Furthermore, an increase in the transience

The difficulties individuals experience with change makes change

management as attending to organizational change transition process at

Tushman et al (1985, 1986) claim that industry sectors evolve consistently in

evolution. This pattern occurs as a result of a disturbance in the external

environment of the industry which causes a change in the dynamics of the

relationship between the stakeholders. This pattern of evolution is known as

punctuated equilibrium. Throughout the course of this pattern, organizations need

to improve their methods of executing their operations.

This improvisation is known as incremental change and focuses on the

modification of the existing methods without completely replacing them (Nadler

a discontinuous change which occurs during punctuated equilibrium, and involves

a complete replacement of the current methods used or alternatively, using an

entirely different set of methods. Discontinuous change can be difficult for

organizations to manage as it re-constructs the employees perception of how the

organization operates (Brown and Eisenhardt, 1997).

organization to change immediately, whereas anticipatory change refers to a change

that an organization had expected and had planned prior to implementation.

Tuning is an anticipatory incremental change, adaptation is a reactive incremental

change, re-orientation is an anticipatory discontinuous change and re-creation is a

reactive discontinuous change.

2.3 Recognizing the need for change

The change process begins by identifying the external actions or internal