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Matthias Ruziwa  : HR Issues

“If change is managed without due regard to the implications for workplace relations and trust, it becomes so much harder to make the changes work. Trust levels also suffer tremendously, not to mention the impact it could have on the organisation’s core values.” In Zimbabwe, organisational change is increasingly the norm owing to innovativeness and creativity in order to survive and remain viable.It is more likely that organisations which have not embarked on introducing effective change have experienced loss of market position resulting in job losses and loss of stakeholder credibility.

Statistical trends from CZI Manufacturing Sector Survey reports, capacity utilisation dropped down from 44,2 percent in 2012, 39,6 percent in 2013, and 36,3 percent in 2014 to 34,3 percent in 2015.

The issues causing de-industrialisation are intertwined and includes low local demand, working capital constrains, competition from imports, antiquated machinery, high cost of doing business, shortage of raw materials etc.

Recent reports by the Ministry of Industry and Commerce have pointed out that although capacity utilisation is relatively low, some companies are doing very well.

It is common cause that these organisations have embarked on various change programmes owing to changes in strategy, technological changes, pressure from imports, shifting markets, challenges of growth and changes in government policies and legislation.

Various scholars in the field of HR management argue that there is no single model of change and no single solution to effective management but from experiences we have gone through especially during economic difficulties, HR professionals need to ensure they have the skill, knowledge and credibility within the organisation to act as champions of change.

Due to the changes taking place in the industry and macro-environment, most organisations are characterised by changing their focus, expanding or contracting their activities and rethinking their products and services.

In this article, the writer would like to emphasise that managers have to be able to introduce and manage change to ensure the organisational objectives of change are met, and that they gain the commitment of their people, both during and after implementation.

Often, at the same time, they also have to ensure that business continues as usual. Accordingly, it’s important that the way change is managed is considered carefully.

When change is introduced, the employment relationship does not remain static. Although every employment relationship is underpinned by a contract of employment — which may be concluded in writing, verbally or even tacitly — the content of the contract is subject to change due to changing market and other circumstances highlighted above.

This may take the form of a change in terms and conditions of employment, the introduction of new workplace rules, expansion of employee responsibilities etc.

While employees will seldom challenge change that is to their advantage, eg improved benefits or promotion, things can be very different when the change is to their disadvantage, depending on how the change is introduced and managed.

Failure to introduce effective change can have a high impact which include loss of market position, removal of senior management, loss of stakeholder credibility, loss of key employees, and reduction in engagement.

Take the situation, for example, where the company embarks on a process of restructuring due to operational requirements arising from changing market circumstances, or the introduction of new technologies, this may go hand-in-hand with a proposal to employees that they should, for example, accept increased responsibilities, or a downgrading in status or benefits.

What limitations are there on management’s ability to drive these changes and what opportunity is there for employees to resist the change?

The law clearly permits change in the workplace: Section 25A (5) of the Labour Act – Cap 28:01 reads; “Without prejudice to the provisions of any collective bargaining agreement that may be applicable to the establishment concerned, a works council shall be entitled to be consulted by the employer about proposals relating to any of the following matters —

the restructuring of the workplace caused by the introduction of new technology and work methods;

product development plans, job grading and training and education schemes affecting employees;

partial or total plant closures and mergers and transfers of ownership;

the implementation of an employment code of conduct;

the criteria for merit increases or payment of discretionary bonuses;

the retrenchment of employees, whether voluntary or compulsory

The law assumes that companies have to adapt to changing circumstances and that employees must be prepared to accept a measure of change during the existence of the relationship, within certain parameters, of course. Section 25A (6), states that before an employer may implement a proposal relating to any matter referred to in subsection (5), the employer shall —

afford the members of the works council representing the workers’ committee a reasonable opportunity to make representations and to advance alternative proposals;

consider and respond to the representations and alternative proposals, if any, made under paragraph (a) and, if the employer does not agree with them, state the reasons for disagreeing;

generally, attempt to reach consensus with the members of the works council representing the workers’ committee on any matter referred to in subsection (5).

In order to effectively manage change, the change must be introduced in a procedurally fair manner, i.e. through consultation. The relevant provisions of the Labour Act must be adhered to. Secondly, agreed terms of employment cannot be altered unilaterally by the company.

Management has to negotiate and agree with employees before agreed terms can be changed. However, failing agreement, parties must utilise established dispute settlement mechanisms to resolve disputes.

If change does not involve agreed terms of employment, but workplace “practices”, management is still required by the law to consult with the works council before implementation.

It is important to note that consultation is not simply a process of one-way communication in which management tries to sell their views to staff.

In fact, it requires that management should inform staff about their intentions; provide reasons and relevant information in support thereof; invite representations from staff; listen to and respond to staff members’ input and allow a reasonable time for implementation.

It is unfortunate that some organisations, when they implement change, focus only on the legal risks involved. Very often the implications that change hold for relationships —, both for staff who are affected and those who are not (but who observe what’s happening to others in their organisation) — are huge.

If change is managed well, with a genuine desire on the part of management to involve staff and to provide sufficient opportunity for input, it makes the implementation and acceptance of change so much easier. It also builds trust.

On the other hand, if change is managed without due regard to the implications for workplace relations and trust, it becomes so much harder to make the changes work. Trust levels also suffer tremendously, not to mention the impact it could have on the organisation’s core values.

In conclusion, let me highlight that since the purpose of the Zimbabwean Labour Act (Chapter 28:01) is to advance social justice and democracy in the workplace, organisations need to promote the participation by employees in changes/decisions affecting their interests in the workplace.

It is beyond reasonable doubt that change is inevitable in Zimbabwean organisations owing to various macro-environment factors, and while employees must be prepared to adapt so that their employer can meet the challenges it faces, management needs to be alert to the dangers of driving change by merely looking at the financial side of things and doing the minimum that the law requires of them.

While these factors are obviously important, the need for management to build or maintain credibility and trust when important decisions are taken that impact on staff is equally important.

This is where genuine consultation, as opposed to merely going through the legal motions.

Disclaimer: Opinions expressed herein are solely those of the author. Matthias Ruziwa is an experienced and progressing Strategic Human Resource Practitioner based in the Midlands Province, City of Kwekwe. You can contact Matthias at the following email address: [email protected] /whatsapp 0773 470 368