Change, HRM and the voluntary sector
| Published date | 01 June 2001 |
| DOI | https://doi.org/10.1108/01425450110392698 |
| Date | 01 June 2001 |
| Pages | 240-256 |
| Author | Gillian Kellock Hay,Rona S. Beattie,Ron Livingstone,Pauline Munro |
| Subject Matter | HR & organizational behaviour |
Employee
Relations
23,3
240
Employee Relations,
Vol. 23 No. 3, 2001, pp. 240-255.
#MCB University Press, 0142-5455
Received November 2000
Revised January 2000
Accepted February 2001
Change, HRM and the
voluntary sector
Gillian Kellock Hay, Rona S. Beattie, Ron Livingstone
and Pauline Munro
Caledonian Business School, Glasgow Caledonian University,
Glasgow, UK
Keywords Organizational change, Voluntary organizations, Human resource management,
Employees, United Kingdom
Abstract Examines the context of the voluntary sector and its impact on organisational
processes. Provides a selective overview of traditional literature on change management and
assesses its relevance for the voluntary sector. Investigates alternative models that could facilitate
understanding of change processes in the voluntary sector. Discusses the results from an empirical
study into the change management experiences of a voluntary sector umbrella body. Concludes
with key HRM lessons for the wider voluntary sector at this time of significant change, as well as
highlighting the impact of contextual factors on the application of generic models of change.
Introduction
The 1990s saw a shift in thinking in many voluntary organisations, from a
need to justify their existence to a concern for effective management practices
within a now established sector (Butler and Wilson, 1990). As Osborne (1996,
p. 202) says, there is ``the increasing need of voluntary organisations to be seen
to manage and to be accountable as they take on an enlarged role in service
delivery''. This pressure for management comes not only from the
organisations themselves but also from the increasing external pressures that
they face such as increased competition for funding, dependence on statutory
funding and the resulting ``contract culture'' (Leat, 1993). Voluntary
organisations are also increasingly adopting ``modern'' HRM practices as can be
seen by the gradual growth in voluntary organisations achieving Investors in
People (IiP) status (SCVO, 1999a), which is seen to enhance their ability to
compete for contracts.
These factors coupled with the increasingly important role voluntary
organisations now play in the provision of public services in the UK (Osborne,
1996) present new challenges and opportunities for the voluntary sector. The
Scottish Council for Voluntary Organisations (SCVO) has demonstrated the
sector's increasing importance as a key socio-economic player through its
provision of significant employment opportunities (SCVO, 1997; 1999a) as well
as contributing untold social benefits and to civic society. The Scottish
Executive has also taken a keen interest in the development of the sector, and
its infrastructure in particular, as highlighted by the previous Minister for
Communities.
We regard the voluntary sector as becoming a partner in the New Scotland, equal to the
Confederation of British Industry and the Scottish Trades Union Congress. We must say that
loud and often (Wendy Alexander, Minister for Communities, 1999).
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Change, HRM
and the
voluntary sector
241
However, when discussing management within the voluntary sector, it is
important to recognise the unique sectoral characteristics that can complicate
the management process (e.g. Tassie et al., 1996; Bryson, 1995; Billis, 1993;
Paton and Cornforth, 1992; Clutterbuck and Dearlove, 1996), especially with
regard to the management of change. These factors include commitment to
organisational values, lack of market mechanism, vague, multiple or difficult to
measure objectives, chronic resource scarcity, and diverse stakeholder
objectives.
In addition, stakeholders may have a personal commitment to existing
organisational values. This often poses problems, as members may be reluctant
to change (Tassie et al., 1996; Billis, 1993; Johnson and Scholes, 1997). The
traditional structure of many voluntary organisations ± democratic, moral
and self-reflective ± can also be a barrier to change (Robinson, 1994). A
particular challenge can be reconciling the perspectives of paid staff and
volunteers. Harris (2001), for example, has pointed out that organisational
growth can lead to the marginalisation or replacement of volunteers by/with
paid staff and a move away from the traditionally pluralist approaches of
``management'' within voluntary organisations towards a more unitary
perspective.
Voluntary organisations are also increasingly subject to ``influencing
agents'' (Kellock et al., 1998), both internal and external, that can drive strategic
change. These include: Care in the Community; the increasing shift from a
culture of grants to contracting (Kay, 1996; Lewis, 1993); the increasing focus
on income generating, as opposed to mission-based objectives (Perlmutter and
Adams, 1990); increasing demands on volunteer directors (Russell and Scott,
1997) and, the need to ``modernise'' the focus/mission of the organisation.
Therefore, to enhance understanding of change management processes
within the voluntary sector, the researchers first undertook a review of both the
``mainstream'' change management literature and the very limited literature
specific to the voluntary sector. From this literature review our understanding
was further developed and refined through empirical research into a voluntary
organisation undergoing major change. Finally, the researchers present key
conclusions highlighting lessons for the wider voluntary sector at this time of
significant change, as well as highlighting lessons which have wider
applicability for the public and non-profit sectors.
Literature review
Two key paradigms can be identified within the change management
literature, namely: planned and emergent change (Burnes, 2000) . The most
widely used example of planned change is Lewin's (1951) seminal model,
involving ``unfreezing, moving and refreezing''. However, this model, by
viewing change as a linear process controlled by management, underestimates
the impact of increasingly turbulent environments such as that experienced by
many voluntary organisations. It is also important to recognise that barriers to
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