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Managing Organizational Change: A guide for Human Resource Professionals in

the era of changeA Presentation By: Valerie Repischak

Faculty Mentor: Professor Cheryl Hughes

My Background

About Me: Senior, Human Resource Management Major;

Psychology Minor Human Resource Association President (Spring

2015-Spring 2016); Director of Events (Spring 2014-Spring 2015)

Post Undergrad: Organizational Development Analyst Associate at Lockheed Martin Aeronautics in Ft. Worth, TX

Organizational Change Defined

Organizational Change is defined as a process when a company or organization goes through a transformation. It occurs when business strategies or major sections of an organization are changed -BusinessDictionary.com

Forces for Change (Jones)

Competitive Forces Economic, Political and Global Forces Demographic and Social Forces Ethical Forces

Resistance FactorsOrganizationa

l LevelGroup Level

Individual Level

Kotter’s Eight Mistakes

Allowing for too much complacency Failing to create a sufficiently powerful guiding coalition Underestimating the power of vision Under-communicating the vision by a factor of 10 Permitting obstacles to block the vision Failing to create short-term wins Declaring victory too soon Neglecting to anchor changes firmly in the corporate

culture

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Contemporary issues HR

Professionals should foresee

Issue #1: Immigrant labor and employee layoffs (Walt

Disney World) Background

January 2015 300 Disney employees, specifically in the IT industry, lost

their jobs Skepticism that Disney colluded to replace U.S. workers

with immigrants who are not as skilled for financial gain Disney and two global consulting companies, HCL and

Cognizant are being accused in the Tampa federal court through a lawsuit

This is not the first time this situation has occurred in the United States.

Violation of Employee Rights

“An H-1B dependent employer or willful violator must offer the job to any U.S. worker who applies and is equally or better qualified for the job than the H-1B alien worker” - Department of Labor

Original Purpose of H1B Visas

To enhance U.S Businesses and equip them with the necessary knowledge and skills to advance technologies and business productivity

Foreign workers with specialized knowledge in roles would be hired to perform the work of U.S. employees in a more effective way.

May Include: scientists, engineers or computer programmers

Reasons to hire H1B visa

Indenture Docile Workers Age Tradition and comfort Ethnocentric hiring practices

Election Candidates 2016 & Immigration

Ted Cruz

Donald Trump

John Kasich

Hillary Clinton

Bernie Sander

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Issue #2 Fair Labor Standards Act and New

Overtime Regulations

Key Points: The Fair Labor Standards Act covers an important

section of FLSA overtime. Exempt Employees must

1. Be paid at least $23,600 per year ($455 per week) 2. Be paid on a salary basis 3. Perform exempt job duties. “Those employees that do not qualify as “exempt” are

subject to receive overtime pay for hours worked over 40 per work week at a rate not less than one and one half times the regular pay rate” (Department of Labor).

Proposed Changes (Published June 20, 2015)

• Raising the 40th percentile will increase to $970 per week or $50,440 annually

• Raising the 90th percentile for highly compensated employees to roughly $122,148 annually

Salary Level Changes

• The DOL does not want to make any changes to the duties test in the proposed rule.

Duties Test

Perspectives of Proposal

Anti-Change View- Employees at these affected pay levels would become more stressed with being changed to non-exempt status.

Change View- These affected employees appear to show greater incidence of work-family conflict and work-related stress conditions. Therefore, this adjusted overtime regulation would actually benefit these affected salaried workers.

Implications for HR Managers

Start planning now for the future impact on operations and finances and consider becoming involved in the public comment period.

Identify which employees are classified as exempt and re-evaluate their job duties to see if it’s necessary to classify them in this way.

Issue #3 Domestic Partnership Regulations:

Post Obergefell

Pre-Obergefell Post-Obergefell

Domestic Partnerships: What will happen?

With the passage of this legislation, some employers are dropping benefits coverage for domestic partners. lesser recognition of domestic partnerships in

comparison to same-sex marriages Verizon, Delta Airlines, IBM and Corning already

have rescinded domestic partnerships with this passage

Implications for HR Managers

HR Managers must recognize that state laws will be adapting to the recent legalization of same-sex marriage, and therefore domestic partnerships are subject to change.

It’s important for HR professionals to conduct an analysis of the employees within their companies to see how this will affect them.

Key Take-Aways

HR is evolving a rapid rate and relies on political influences such as proposed legislation and the upcoming election.

HR managers need to be proactive rather than reactive to the changes facing them.

HR managers need to effectively communicate change on all levels of the organization.

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Questions?