Change Management- 26-06

Managing workplace change | Croner-i

Change Management continued

The 7 stages in adapting to change 

1. Immobility, unable to do anything

2. Denial that there is a problem

3. Self-doubt or depression

4. Accepting reality and the need for change

5. Testing self and making changes

6. Seeking meaning and reasons for the change that has occurred

7. Internalising the changes that have been made

 

CHANGE IN THE WORKPLACE

Changes in the workplace happen on a constant basis giving rise to stress and the need for change management.

 

a.        Unemployment

·         Unemployment is a major social problem which has worsened since the global financial crisis of 2008

·         South Africa has an estimated unemployment rate of 24.9%.

·         South Africa’s labour legislation requires employers and employees to contribute to the Unemployment Insurance Fund (UIF).

·         Workers can receive financial assistance during periods of unemployment from the UIF.

b.       Retrenchment

Businesses sometimes need to downsize or reduce their capacity.

They may ask employees to apply for voluntary retrenchment. This includes a voluntary severance package.

The Labour Relations Act 66 of 1995 states that a business must make a minimum retrenchment payment to an employee based on the number of years worked for the business. People who are retrenched and who cannot find another job in the formal sector can adapt by trying to start their own business.

c.        Dismissal

An employee may be dismissed for the following reasons:

·         Incapacity

·         Misconduct

·         Operational reasons

 

If employees feel that they have been unfairly dismissed, they can appeal to the Commission for Conciliation, Mediation and Arbitration (CCMA) for a fair hearing.

d.       Affirmative action and Black Economic Empowerment (BEE)

The government has passed laws regarding affirmative action and black economic empowerment policies in order to change the lives of previously disadvantaged South Africans.

The Employment Equity Act of 1998 aims to eliminate unfair discrimination, ensure employment equity and achieve a diverse workplace that is more representative of South Africa’s population.

The BEE Act 53 of 2003 aims to promote a more equal distribution of wealth, in a free-market environment, by actively supporting and favouring the economic empowerment of previously disadvantaged individuals. Businesses that comply with the BBE requirements are given preference when it comes to issuing government tenders, procurement contracts and licences (e.g. casino licences and cell phone licences).

The Labour Relations Act (LRA)

The LRA forbids unfair discrimination either directly or indirectly against an employee on the grounds of race, gender, sex, ethnic or social origin, sexual orientation, age, disability, religion, conscience, political opinion, culture, language, marital status or family responsibility.

e.       Globalisation

·         Globalisation means the movement between countries of people, goods, capital and ideas.

·         Globalisation happens due to increased economic integration, improvement in technology and a reduction of trade barriers.

·         Bigger markets can mean bigger profits and increased economic growth but businesses need to be more aware of what is happening around the world.

·         Many South African businesses sell their products all over the world but South African business must also compete with imports from other countries.

·         Competition from countries such as China is a threat to local businesses

Lesson Files
Lesson Questions

answers to be submitted via apollo. 

1. Define retrenchment (2)

2. What changes has affirmative action brought about? (4)

3. Name three theories of change (6)

4. List five elements of the Kaizen model. (10)

5. Explain three Laws which create change and affirmative action in the workplace. (12)

6. How do problems and crises differ? Give an example. (6)

7. Define affirmative action. (2)

8. Explain three reasons for dismissal (6)

Login to answer questions