The Impact of Policies

The policies of the HR Department reflect the expectations of acceptable behavior along with the rules associated with rewards, benefits, and punishments. The HR policies influence the organization and should be developed with care. Increased organizational performance is linked to the HR policies and programs of an organization (Besma, 2014). The HR handbook is an artificial attempt at documenting the rules of the workplace society. The employees must be able to understand and view the workplace society standards, mores, guidelines, and control mechanisms that allow the organization to function effectively For example, the policy on vacations indicates the accrual rate per a given period (e.g., month) and how much many hours or days of accrued time may be saved. It is wise to limit the amount of time an employee can save to avoid the accrual of large quantities of time; the accrual of a significant amount of vacation time is equal to the amount of money represented by that time - time equals money. The HR Handbook contains the collected rules of behavior, the policies surrounding benefits, and general employment; some employees may have contracts with employment conditions that are different from the typical Handbook conditions.

A planned transformational change must accommodate and reflect the rules within the HR policies; the HR policies bring structure to the organization. Otherwise, there would be chaos created by people acting as they please. All changes must conform to the constraints and rules of the organization so that the cultural fabric is not destroyed; parity within an organization is essential - everyone must feel comfortable and consider the treatment as fair.

Leadership Interaction

The leaders of an organization are highly influential in the transformational process. All change initiatives require the full support of senior leadership to increase the chance of success. However, the quality of the support influences more than just the change effort. The effect of leadership communication within the organization can make the difference between success and failure. Leaders communicating through active and supportive messages about the transformation, in conjunction with sincere and honest messages about the initiative, and the full support of the leaders to promote the change will likely result in success (Gilley, Gilley, & McMillan, 2009).

Organizational leadership plays a significant role in reducing the resistance to change and can be impactful at various levels of the organization (Blank, 1990; Agocs 1997; Lane, McCormack, & Richardson, 2013). The leaders of the organization may influence the transformational change by failing to provide their full support because of personal resistance to the initiative caused by uncertainty and fear of the unknown risk associated with the effort (Lane et al., 2013). Failures in leadership during transformational change initiatives are viewable in organizational cynicism, lack of trust in the leaders, and the employees experiencing a lack of confidence in one another (Kennedy, 2011).

The leaders of the organization wield considerable influence and control within the organization. The delivery of an honest, sincere, and personal message from the leaders to the employees about a change can make the difference and foster success. The reduction in resistance is imperative, and a leader can garner holistic support through effective communication throughout the organization.

Performance Measures

Typical organizational performance metrics focus on financial measurements related to expense and return on investment. Besma (2014) suggests that the costs associated with the operation of the HR Department are not operational expenses, but rather capital investments that support the well-being of the organization. The metrics that are measuring characteristics of the organizational operation should be considered carefully to ensure they capture the necessary data for the appropriate goal. The example of Michael Eisner identifying the number of movies made in a fiscal year affecting the success of the Disney amusement parks is an essential lesson in understanding the organizational goals and how best to measure them (Cameron & Quinn, 2011). Organizations compete for business, and ensuring the organizational concept of operation is aligned correctly for success will result in an efficient or dysfunctional organization (Cameron & Quinn, 2011).

Xenikou & Simosi (2006) suggest that the positive social environment of the workplace results in positive organizational performance. The measurement of data is more complicated than the collection of a number relating to the sale of a particular object. Quantitative data is one type of data collection; qualitative data may provide robust information about processes and achieving goals. For instance, a business that focuses on making people happy is interested in the level of happiness and the number of individuals purchasing sendees. The level of happiness may translate into repeat business or recommendations to friends and family.

The type of leadership associated with a transformation has profound influence within the organization. Hu, Gu, & Chen (2013) indicate that organizational transformation resulting in innovative results are related to transformational leadership. The innovative results of transformational leadership will also influence the performance results of the organization. Applying an integrative approach to HR policies will lead to increased performance results (Dobre, 2012). Both leadership and HR policies are the means through which an organization operates with a clear vision, direction, and rewards leading to high levels of performance.

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