Graduate Annual

Volume 2 Article 6

2014

JEC Human Capital Investment Plan

Teresa Cahill
La Salle University

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Cahill, Teresa (2014) "JEC Human Capital Investment Plan," Graduate Annual: Vol. 2 , Article 6.
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 JEC
Human Capital Investment Plan

Teresa Cahill
Master of Science in Human Capital Development
La Salle University
Philadelphia, Pa.

This Capstone is a Human Capital Investment Plan for JEC Tool ‘help’ them by ‘commanding and controlling’ their behavior and
and Machine Corporation. JEC has over 50 years of experience in involvement. Leaders must force people’s cooperation” (Anderson,
technical and complex manufacturing solutions. JEC is a leading (article 4), page 3). This leadership style causes poor employee
provider of precision machined products and electro-mechanical morale, poor results in transformational change, and is currently
assemblies for the aerospace, defense, and medical industries. JEC the leadership style at JEC. JEC’s president directs with a com-
maintains an award winning quality record. The organization’s mand and control leadership style. He makes decisions regard-
goal of 100% quality is a standard customers have come to expect less of other top management’s input or opinion. He has worked
and one the company is proud to provide. This commitment with the organization from conception, as his father started the
should not only apply to external relationships with customers but company. He works based upon dated experience as opposed to
also within the workforce as a whole, with a focus on the number new training and education. To keep up with production demands,
one asset, the employees. change is necessary; however, he only knows what he was taught
from his father. Command and control is the most common type
According to the JEC’s Employee Handbook, the quality policy is of leadership style and due to this style being used at JEC, they
the backbone of the organization’s success. It is the responsibility have lost many talented individuals and employee morale is at an
of each employee to support this policy and to participate posi- all time low.
tively in its meaning. The policy states: “performance is our most In order for JEC to achieve strong leadership through change
important objective as a means of ensuring continued customer and build human capital, they should update their leadership style
satisfaction; providing our customers quality, on-time products; from command and control to participative leadership. “Participa-
and continuing to improve our processes and personnel to help tive leadership is a management style in which other members of
maintain strong relationships with our customers” (JEC’s Employ- the organization or department, especially subordinate employ-
ee Handbook, 2). This policy is customer centric and needs to be ees, are involved in discussions and making decisions that are
refocused on the employees, who are the most important asset of important to the company or work team” (Kokemuller, 1). JEC
the organization. Without talented employees, it becomes difficult should include their employees in the discussions as they are on
to produce quality work. To continue providing the best product, the forefront of the operations and can offer innovative ideas and
a Human Capital Investment Plan should be developed, managed, feedback. “They must emotionally ‘own’ the change and under-
and continued for future success. JEC’s Human Capital Investment stand its intent as much as the leaders do so they can contribute to
Plan should have the strategic capability to provide manufacturing moving it forward in a positive direction” (Anderson, (article 4),
excellence through five key elements all supported by accountabil- page 3). By involving JEC employees in the process, this will affect
ity, as shown in Appendix A. their mindset and their work performance and roles. In the partici-
pative leadership style, it is best for the leaders and employees of
JEC to use the concept of co-creating.
The first element in JEC’s Human Capital Investment Plan is
Co-creating is working together and seeing an employee as
leadership. In order for this plan to work, leaders should guide and
a partner and not a subordinate. “It means operating as a team,
support the organization along with this plan. Currently, JEC’s
aligned across hierarchical and functional boundaries in pursuit of
main leadership style is command and control. This leadership
what is best for the overall organization” (Anderson, (article 4),
style is popular. According to John Seddon’s book, “Freedom from
page 4). By sharing information, involving and empowering em-
Command & Control: Rethinking Management for Lean Service,”
ployees, and communicating effectively, JEC will be on the path
command and control is still the dominant style of leadership. As
to success. Recently, JEC implemented an employee suggestion
JEC emerges from the recession, it is imperative to be conscious of
program to open the lines of communication between manage-
the leadership style. JEC should transform the leadership style to
ment and front line employees. Implementing the suggestions
participative and co-creative, directed by the right change leader
that improve performance, increase productivity, reduce cost, and
as shown in Appendix B.
enhance quality will help build a solid relationship with employ-
ees. It will build trust and the employees will feel they are a vital
“Command and control is based on establishing and maintain- part of the organization.
ing power over, and control of people and organization processes”
(Anderson, (article 4), page 2). This type of leadership style
It is clear that JEC’s leaders should transform from command
involves leaders who know what is best for the organization and
and control to participative leadership with an emphasis on co-
demand to drive employees and processes on their path. When
creating. “The only way we know to maximize the results you get
processes do not go as planned or employees are not performing
from transformation is an entire enterprise of awake and responsi-
to expectations, this leadership style steers them back on the path
ble people working together, across boundaries, in pursuit of what
by controlling human behavior and actions. “Employees won’t
is best for the overall organization” (Anderson, (article 4), page
naturally contribute positively to the change effort, so leaders must

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5). JEC will need to transform their management style by working organization performance will most enhance sustainable strategic
together and being consciously aware in order to drive on the path success” (Dowling & Roots, 1). JEC’s challenge is to understand
of success. talent pool investments that will improve their workforce. “There
is a strong natural bias to focus on talent pools that have high av-
One way for JEC to succeed in changing their leadership style erage value because they are so important and, some assume, also
is by selecting the best leaders to oversee this Human Capital pivotal” (Boudreau & Ramstead, 110). For JEC, machinists and
Investment Plan. It is critical to choose the right people to not engineers are so vital and difficult to find that they have been the
only lead through this plan, but to manage the obstacles that will main focus. “When organizations better understand talent pools…
arise. These leaders should know the business, encompass superior and encourage open discussion about their implications, more
people skills, solve problems, make decisions, communicate well, optimal organization and talent decisions will result” (Boudreau &
organize tasks, and motivate others. Top management should Ramstead, 112). It is important to have open, honest, and effec-
support and announce these candidates, as they will be making tive conversations about the recruitment efforts. By understanding
important decisions on behalf of the entire organization. In de- and analyzing talent pools, JEC will begin to have a competitive
signing the key activities of this Human Capital Investment Plan, advantage.
the chosen leaders ensure that the vision and case for this plan
are developed and communicated, infrastructures are created and The current recruitment plan does not reach this level of analysis.
used, resources are obtained and available, top management and JEC’s recruitment plan includes advertising for the open job posi-
workforce are capable and ready to implement this plan, and that tion, sorting through the qualified and unqualified candidates,
the best future state solution is designed and prepared for optimal interviewing, selecting a candidate, and sending out a job offer.
rollout. This may sound like any other organization’s recruitment plan;
however, JEC’s goal is to fill the position as soon as possible,
There are three areas that leaders should tackle: content, people, without necessarily finding the right person with the right skills
and process. “Content refers to the business side of ‘what’ is chang- for the job. Because of this, the company’s turnover rate is high
ing; people refers to the human and cultural dynamics, includ- and they lack top talent. Manufacturing skills are difficult to find;
ing communication, engagement, resistance, training, culture, therefore, JEC will need to build relationships with educational
etc.; and process refers to the one unified and integrated plan or and vocational organizations to find qualified talent. According
roadmap by which the content and people outcomes are achieved” to “Human Capital Development: America’s Greatest Challenge”
(Anderson, (article 3), page 3). Focusing on these areas will help Theodore Hershberg stated, “Roughly 89 percent [of jobs] will
the leaders to implement this plan effectively. The most important require some post-secondary vocational training” (Hershberg, 7);
attribute these leaders should possess is confidence in their plan therefore, building these relationships is a crucial factor to the suc-
and its process. “Just as confidence in a company’s future prospects cess of the organization. Hershberg quoted a German executive:
attracts investment, confidence in a project’s outcome attracts “America has too many people in college and not enough qualified
effort, loyalty, and commitment” (Karlsberg & Adler, 2). Con- workers. The U.S. has outstanding universities, but it is missing
fident leaders along with devoted employees can work together the middle” (Hershberg, 7). Colleges tend to be pushed on high
by investing their time, effort, and energy toward reaching JEC’s school graduates more rather than technical schools, which makes
business goals. it difficult for JEC to find qualified candidates. JEC should look at
the positions that are difficult to fill and target the educational and
vocational schools that teach and train the potential candidates
For the leaders to be successful, the organization and its’ staff
needed in the future. Appendix C represents JEC’s recruitment
should be open to change and provide resources that will assist in
process for finding top talent in this Human Capital Investment
implementing this Human Capital Investment Plan. Resistance
Plan.
is bound to occur with change. Some individuals build a wall to
resist feeling emotions when they feel challenged or disagree with
a change initiative. Resistance can come in different forms, such It is also imperative that JEC take advantage of grant programs
as disagreeing with supervisors and coworkers, not contributing and co-op opportunities. By building curriculums for specific job
to the organization’s missions, sabotaging projects, or running positions with other organizations, they will be able to employ
away. Change is a difficult process and when people are faced with the right qualified individuals in this field. Becoming involved
change, their reactions are crucial. It is important for leaders to in grant programs would be a significant step for JEC to improve
recognize employee resistance so it can be dealt with properly and their recruitment abilities, and the company would be able to find
immediately to prevent any further implications. The right leaders and employ qualified candidates for hard to fill positions. Daniel
will have the ability to push through the barriers of resistance, Lim from New Jersey College Consortium states, “Generally, these
focus on people and process, and lead effectively. programs are grant funded and we target niche industries where
jobs are in-demand, but adequate training and qualified applicants
are not readily available to employers” (New Jersey College Con-
The second element in JEC’s Human Capital Investment Plan
sortium – Dan Lim Interview). In the manufacturing field, finding
is recruitment. Embracing the talent mindset is critical in the
qualified machinists is a difficult task. Luckily, manufacturing is
manufacturing field. Talent is an important resource and JEC
a niche industry. New Jersey College Consortium partners with
should develop a deeper level of analysis to have a competitive
various government agencies for funding, recruitment, tracking,
advantage. By understanding the different roles that talent can
and incentives. All programs are evaluated and audited by the
take on and organizing the pivot points of these roles, JEC could
consortium. They also have a proven success record. “Success is
predict important elements within the jobs. “The identification of
based on two factors: one, the number of students that graduate
‘pivot points’ and subsequent acquisition and development of piv-
with an industry recognized certificate and two, the number of
otal talent is defined as where specific improvements in talent and

11
 students that obtain permanent full-time employment because of Another significant step is identifying a mentor for the student.
the training received” (New Jersey College Consortium – Dan Lim This can be a supervisor or a manager that will provide guidance
Interview). throughout the student’s co-op program. With grant programs,
New Jersey College Consortium recommends that a member of
If JEC partners with New Jersey College Consortium, they will be JEC work with the professor and make routine visits to check on
able to create training curriculums tailored to their current needs. the progress of students. It is clear that both the student’s and
The company would also be able to select the individuals to go employer’s expectations must be meant; therefore, building these
through the program through a comprehensive interview. This is relationships is critical not only with the organization but also the
a critical step in the process to ensure that the individual selected students who could be prospective employees.
to go through this program has some manufacturing skills and the
drive to improve their human capital. Human capital is individual Once talent is found, JEC should develop employees throughout
driven results obtained from education, training, knowledge, skills, their career; therefore, the third element in this Human Capital
abilities, life experiences, and wellness that enable a person to be Investment Plan is employee development plans. In order to
his or her best and continue to enhance his or her personal well- develop employees, the Human Resources (HR) Department
being. Some believe building human capital is an employer’s re- needs to take on an organizational development role to enhance
sponsibility as they provide trainings to build new skills; however, their skills and abilities. Organization development (OD) efforts
even if an employer does provide trainings, it does not mean that increase the effectiveness of the organization and maximize human
the individual will successfully complete this training. It is the capital. OD’s functions help the organization align their strategy,
responsibility of the individual to learn and retain the knowledge structure, business procedures, and culture while maintaining
from this training; therefore, finding the right candidate for the human principles. If HR takes on OD tactics as represented in
grant program through an interview is a necessity. Appendix D, a vision can be created and implemented to produce
a more skilled workforce.
The New Jersey College Consortium Partnership Program would
benefit JEC by not only providing talented individuals to employ “Organization Development: A Strategic HR Tool” discusses how
but also providing monetary incentives. JEC could receive tempo- the use of OD helps HR create an effective learning environment
rary reimbursement of new hire salaries for on the job training for and productive workforce. “The basic purpose of organization
six months. Also, there are federal tax credits per new hire that development is to increase an organization’s effectiveness through
apply. Passing up on grant programs would be impractical. JEC planned interventions related to the organization’s processes
should take advantage of this program especially for the current (often company-wide), resulting in improvements in productivity,
need to employ qualified machinists. return on investment and employee satisfaction” (Society of Hu-
man Resources,1). Researchers Cummings and Worley reveal that
Another difficult position for JEC to fill is manufacturing engi- “OD practices are of direct value regarding organization workforce
neers. Co-op programs are another way that JEC could build top skills and learning, including goal setting through performance
talent in the Engineering Department. Co-ops are an effective management, reward systems, career planning and workforce di-
way to develop high quality future employees and keep recruiting versity” (Society of Human Resources, 2). The organization should
costs down. Typically, when an employer is looking for a co-op, be equipped with effective programs, capable employees, and a
the cost to post a job opening on a university’s website is free. well-managed HR department in order to function successfully.
Co-op students gain on-the-job skills and knowledge during their These programs and responsibilities are directly related to HR.
co-op cycle. This gives them a higher level of experience with
JEC’s production methods than hiring an inexperienced applicant. By using OD, HR can expand its capacity regarding planned
Universities provide high quality education that prepares students change and create an effective, healthy work environment for
to bring new perspectives and suggestions to the workplace that employees. Planned change requires a clear understanding of
lead to significant contributions. This is critical for JEC’s work- organizational issues. By researching and collecting data to under-
force. Many JEC employees are entering retirement; therefore, a stand these issues, HR can work with top management and chosen
new wave of talent will need to be recruited to meet the demands change leaders to develop a learning environment that ensures a
of the future. JEC should get involved in the educational process, productive workforce. “The ability to evaluate, design, and imple-
help students along their career path, and recruit these students in ment organizational learning and development programs is likely
order to have top talent in the future. to become a key OD competency for HR professionals” (Society
of Human Resources, 5), as employees want their job to have
Using co-ops and grant training programs is just a small step in meaning and know that JEC values their skills. “OD is driven by
retaining qualified talent. The company should also develop an humanistic values (respect, inclusion, authenticity, collaboration)
on-the-job training program for these students. While students and is an education based discipline, with the goal to develop
will bring academic training to their position, they will need values, norms, attitudes, and management practices, resulting in
orientation and guidance in their specific responsibilities. Ac- a healthy organizational climate that rewards healthy behavior”
cording to University of Washington’s College of Engineering, “a (Society of Human Resources, 3). This is the exact environment
good training plan includes a progression of assignments reflect- that JEC’s HR wants for employees and in return, employees want
ing students› developing competencies. Employers who formulate to know that they can make a positive impact on the organization.
well-designed training plans can count on an excellent return for
these efforts” (University of Washington College of Engineering, In regards to performance management, there are three types of
1). JEC will need to design training plans for their co-op program HR management interventions that promote organizational learn-
to be successful. ing that JEC should use: goal setting, performance appraisals, and

12
reward systems. By combining forces and using these methods, JEC follow-up. This is the most important step in any HR management
can manage employee performance, improve worker satisfaction, intervention. A supervisor will need to coach their employees
and support the business strategy. throughout the year and follow through with the goals and de-
velopment plans that were set on the performance appraisals that
“Goal setting involves managers and subordinates in jointly were given. Managers that coach and follow up with their employ-
establishing and clarifying employee goals” (Cummings & Worley, ees will engage them to focus on increasing their human capital.
429). This is crucial as the goals formulate the planned develop- According to Shawn Kent Hayashi author of “Conversations for
ment of employees that lead to organization effectiveness. The Creating Star Performers – Go Beyond the Performance Review
purpose of goal setting is to influence an employee’s behavior and to Inspire Excellence Every Day” following up with employees
align their performance to meet these goals. It is important for the “builds trust and accountability, and it enables relationships with
organization to set goals on an individual basis that align with the key stakeholders to develop momentum so that their feedback in
organization’s missions and goals. “Goals energize behavior, moti- the review process adds value” (Hayashi, 116). It is important to
vating people to put forth the effort to reach difficult goals that are show the employees what performance means to the company. By
accepted, and when goals are difficult but achievable, goal setting having frequent performance conversations and giving rewards,
prompts persistence over time” (Cummings & Worley, 429). JEC JEC’s employees will feel valued by the organization.
should involve employees in setting these goals on an individual Talented employees are the key to business success and “the best
basis to maximize their talent and make their employees feel valu- course of action is to leverage the complementary knowledge and
able. skill sets of HR and OD to capitalize on what is quickly becom-
ing a recognized key to strategic success” (Morgan & Jardin, 25).
These interventions, along with constant performance conver-
JEC should also use performance appraisals to align employee
sations throughout the year, with rewards, will help maintain
performance to the organization. Performance appraisals should
employee satisfaction, continue to build morale, and help JEC in
be completed by managers and supervisors for each employee on a
the war against talent.
yearly basis. The “performance appraisal is a feedback system that
involves the direct evaluation of individual or work-group perfor-
mance by a supervisor, manager, or peers” (Cummings & Worley, Leadership, recruitment, and employee development plans are
426). The performance appraisal is a small part of performance key in order to make JEC successful; however, all of these factors
management; however, it can be a valuable tool if used effectively can fail without effective communication. Communication is a
and can guide JEC’s managers and supervisors in developing their word that is used by everybody to mean many different things. It
employees throughout the year. There are newer methods when is important to understand that communication is a process. It is a
using the performance appraisal. Instead of a manager completing series of events, not just one event. Currently, JEC’s communica-
a lengthy form and having a one sided conversation, employees tion style is top-down with little to no follow-up. “Saying nothing
are now more involved in the phases of the appraisal such as is a message – perhaps a powerful one” (QuicTool, 1). JEC’s leaders
creating developmental and future plans, self-ratings, and having need to start communicating with their workforce and continue
effective conversations throughout the year. “This active involve- to improve their communication skills by understanding the ele-
ment increases the likelihood that the content of the performance ments of communication as shown in Appendix E. Their words
appraisal will include the employee’s views, needs, and criteria, must be represented by honest, physical actions. Communication
along with those of the organization” (Cummings & Worley, 429). involves a complex set of variables. It is not always simple and
This participation allows for a more complex conversation to oc- straight forward; therefore, understanding the elements of commu-
cur about both the employee’s and JEC’s future which is critical in nication is significant in order for this plan to be successful.
the development of human capital. According to QuicTool, there are five key components that
can help JEC effectively communicate. The first component is to
create a message. To send a message, leaders and managers must
Rewards are influential incentives for improving employee perfor-
first say or do something that represents an idea. There must be
mance. “OD traditionally has relied on intrinsic rewards, such as
a “mental image, a vision, an idea, an opinion, or perhaps some
enriched jobs and opportunities for decision making to motivate
information that he or she wants to convey to someone else”
employees’ performance. More recently, OD practitioners have
(QuicTool, 1). JEC’s future and this plan is a message. It is the
expanded their focus to include extrinsic rewards: pay, vari-
ultimate vision and leaders and top management should initiate
ous incentives, such as stock options, bonuses, and gain sharing
the communication process and have a primary interest in making
promotions; and benefits” (Cummings & Worley, 434). Either type
sure it is effective. Presenting this plan should be clear and consis-
of reward can increase employee performance and happiness. It
tent. Leaders should select the right words to use to limit misin-
is important for JEC to decide on a reward system that is valu-
terpretation. “Different words have different meanings to different
able to both the organization and the employees. Money seems
people. In fact, research has shown that effective communication
to be a factor to most employees; while a simple thank you would
is 55% body language and gestures, 38% voice tone and inflection,
suffice others. Due to the recent downturn that JEC encountered,
and 7% spoken word” (Sell, 4). Their message should be famil-
I would recommend that JEC give periodic small rewards to show
iar, specific, concrete, and conveyed with confidence. Choosing
employees that their work is valued. Implementing a program that
words that are likely to have the most similar meaning to both the
rewards employees for meeting their quota, showing teamwork, or
leaders of the organization and the employees is necessary. Over
displaying JEC’s principles would help to boost employee morale
60% of JEC’s workforce is Vietnamese; therefore, JEC should also
and keep employees committed and loyal to the company.
consider culture factors. Culture can influence the organization
By using these HR management interventions, JEC can improve
and having employees “from multiple cultural backgrounds means
work performance and increase employee satisfaction; however,
multiple opportunities and multiple challenges” (Peterson, 65).
for these programs to work, the managers and supervisors must

13
 To get through these challenges, JEC can diagnosis the existing need to participate in this process in order for this Human Capital
culture. This includes evaluating the risks of making changes Investment Plan to be successful.
and determining what will need to be implemented. “Changing
corporate culture can be extremely difficult and requires clear stra- The last component to help JEC effectively communicate is to
tegic vision, top-management commitment, symbolic leadership, realize the presence of noise. “Noise is the name given to the
supporting organizational changes, selection and socialism of new- multitude of factors that can interfere in the communication
comers and termination of deviants, and sensitivity to legal and process and keep it from being complete and accurate” (QuicTool,
ethical issues” (Cummings & Worley, 529). According to “Kiss, 3). There are two types of noise that JEC will need to be aware of.
Bow, or Shake Hands,” the Vietnamese place value on relation- The first type of noise is physical. JEC employees work on the shop
ships. They need to personally trust their leaders; therefore, JEC floor and the noise level is usually loud. “Noise is always present
must break through these cultural communication barriers in order in the process, and the question is not whether it will disrupt the
to build human capital. If leaders and top management understand message, but by how much” (QuicTool, 3). It is imperative when
how employees learn based on their culture, they will have more leaders and top management communicate with employees, they
of an impact on employees. It is clear that not one size fits all and check their surroundings and move to a quieter place. Being in
when sending a message, JEC should understand cultural differ- a machine shop, machines are constantly running and the noise
ences to maximize this plan’s effectiveness. is extremely loud. When JEC holds monthly employee meetings
or supervisors need to speak to an employee, they need to find a
The second component to help JEC effectively communicate is location that is quieter so employees are able to hear, understand,
seeking to understand the message. Communication requires both and ask questions to clarify. The second type of noise is psycho-
a sender (leaders) and a receiver (employees). JEC’s employees logical. Examples of this type of noise include mistrust, disinterest,
must interpret what is being said by the leaders of the organization. strong emotions, and perception. Perception is a huge factor in the
Employees will develop emotions about what was said, should seek communication process as everyone hears or sees things differ-
to understand it, and share a responsibility in ensuring an effective ently. Employees will engage in conversation and discuss how they
communication process. When communicating this plan, leaders perceive JEC during these changes. These discussions could be
should prove their support not only through words, but through positive or negative and will result in creating more noise within
their actions as this is creditable to the employees. Conveying a the organization. The environment will always have some level of
positive and confident image will also assist in effectively commu- noise that interferes with the vision.
nicating this plan. Currently, JEC’s leaders look overwhelmed and
their actions represent their emotional state. It is imperative that JEC’s leaders should be aware that just because they say something
their mentality and actions become encouraging. does not mean they are actually communicating. Communica-
tion does not occur unless the meaning that is received matches
The third component to help JEC effectively communicate is to the meaning that was intended. JEC’s ability to communicate will
share feelings and ideas through the message. Creating a vi- grow as they understand this process and continue to listen and
sion will show the employees how JEC feels and thinks. These watch the internal culture develop. Communication is a complex
visions can travel in many different ways, including how leaders interaction with interconnected pieces. Both leaders and employ-
speak, write, and act. The vision “may be immediately clear and ees are accountable. By understanding the process, JEC and their
understood or murky and misleading, based on how well all of the employees can build clarity that will improve the elements neces-
components in the communication process have been considered sary to build human capital and allow this organizational change
and accommodated” (QuicTool, 2). JEC’s vision should be clear to occur.
and understood by all involved in order for this plan to be success-
ful. It is crucial that this plan is supported as the employees will «Change is the nature of life. Nothing ever remains the same.
determine the meaning of this plan by the actions of leaders and Growth and decay are as fundamental to our existence as our
top management. needs for water and air» (Anderson, (article 1), page 18).
Throughout life, one will constantly grow and change. The deci-
The vision set out in this plan not only includes leaders and top sions that are made will impact their future. When the organiza-
management but also the employees; therefore, the forth com- tion makes changes, the decisions and actions will determine
ponent to help JEC effectively communicate is feedback. When whether or not this change is positive and will affect both internal
organizations develop plans and policies, there is always feedback. and external factors. JEC must go through a transitional change in
This feedback may not be verbal but it can be seen through the ac- order to be competitive in the future. “Transitional change begins
tions and morale of the workforce. “Without meaningful feedback, when leaders recognize that a problem exists or that an oppor-
you can’t even be sure that the message was received” (Quic- tunity is not being pursued – and that something in the existing
Tool, 2). When seeking a response, JEC should choose the right operation needs to change or be created to better serve current
method. Face to face communication gets faster results; however, and/or future demands” (Anderson, 56). This Human Capital
documented responses will be more effective when reviewing and Investment Plan will assist JEC in managing their transitional
possibly revising this plan as times change. Documenting commu- change as shown in Appendix F.
nication and feedback will allow JEC to take suggestions, improve
this program, and provide accurate real-time communication. It is The drivers of change that JEC sees often include organizational
significant for JEC to receive a reaction from their employees. If a imperatives, leader and employee behavior, and leader and em-
reaction is not received, JEC should seek feedback as communica- ployee mindset. JEC’s main customers are government entities and
tion is a two way street. Whether in spoken conversations or writ- their demands constantly change. Organizational imperatives refer
ten correspondence, shared meaning is important. Everyone will to “changes in the organization’s structure, processes, technol-

14
ogy, resources, skills base, or staffing to implement and achieve its It is important for JEC to not only understand that drivers of
strategic business imperatives” (Anderson, 35). When government change exist, but how the organization can better manage these
jobs are awarded, JEC hires quickly; however, when they are wait- drivers of change. When we look at the external drivers such as
ing for jobs that have a lead time from twelve to eighteen weeks, their customers, JEC will need to understand and know how to
they reduce their workforce. best manage the environment they are given. By understanding
customer’s needs and preparing for the future, JEC can make more
“Downsizing Isn’t What It’s Cracked Up To Be” discusses how dur- informed and accurate decisions that will affect their internal
ing tough economic times, organizations find themselves in agony drivers. By understanding this, JEC will learn how to properly
and can no longer afford their staff; therefore, they look to down- manage the culture, behavior, and in particular, the mindset of
size. JEC reduced their staff three times this year, resulting in a their employees.
fifteen percent decrease. Author Henry Hornstein states “reducing
numbers to remain competitive in these difficult times has been a JEC will also need to determine the appropriate level of change
common tactic, adopted by management ostensibly to reduce cost, that should be completed through a needs assessment. Top leader-
demonstrate increased flexibility, reduce bureaucratic structure, ship should conduct a thorough needs assessment on each element
increase efficiency regarding decision-making, improve communi- in this plan to determine what training is needed in order to meet
cation, and cultivate entrepreneurship” (Hornstein, 1). Hornstein the elements outlined. It should state exactly where JEC should
believes organizations are too quick to decide to downsize as there focus their resources and what the actual goals and outcomes
are negative implications and short-term results. should be.

JEC makes difficult decisions in regards to organizational impera- In order for this transitional change to be successful, JEC will
tives and implements the changes from a top-down approach. need to ensure that the right people are involved as discussed in
These actions can affect employee morale. When JEC reduces the leadership element. This can be done by creating a leadership
staff, they need to “ensure that employees understand the renewal team consisting of employees from each department and various
strategy and their new roles in it. Employees need credible expec- levels of the organization to provide feedback and help with pro-
tations that, although the organization has been through a tough gram implementation. The change leaders will help top manage-
period, their renewed efforts can move forward” (Cummings & ment determine the needs of the training program, demonstrate to
Worley, 336-337). JEC does not communicate these changes to employees that their input is valued, and create a consistent level
employees; therefore, when reductions in force occur, employ- of commitment throughout the organization.
ees are on edge. “Downsizing has a negative effect on corporate
memory and employee morale, disrupts social networks, causes It is a guarantee that JEC will face resistance as “top-down,
loss of knowledge, and disrupts learning networks” (Hornstein, one-way communication often triggers resistance” (Anderson, 41).
2). There have also been many studies conducted that reveal In order to lead through change, JEC should let go of this type
harmful results on production. More importantly, it impacts the of decision making and embrace a new decision making process.
organization financially. A study “found that increases in financial “If your leaders are unaware of the option for decision making,
performance in the first year following the layoff announcements and habitually default to leader controlled ‘tell’ decisions, then
were not followed by performance improvements in the next year” your transformational efforts are likely doomed to fail” (Ander-
(Cummings & Worley, 337). Even though JEC may see improve- son, (article 2), page 3). JEC cannot afford to fail. They should
ments in financial performance, these results are temporary and do recognize that their employee’s mindset and behavior matter. It
not reflect on the performance of their workforce. is the responsibility of management and leadership to control
the change in a way that prevents employee resistance and more
With the lack of qualified employees, JEC rehires employees importantly, promotes employee commitment. JEC will need
that were part of the workforce reductions. Although this shows to truly understand the core human needs, how to discuss those
current employees that there is a chance of being rehired which needs with employees who are feeling threatened, and how to
could slightly impact employee mindset, the question still remains move past those emotions by earning the trust and support from
whether or not downsizing is an effective way to restructure as it those employees. «Core needs can generate positive and nega-
impacts finances and production. This fluctuation causes employee tive responses - commitment and resistance - depending on a
morale to ride a constant wave of emotions. This affects both lead- stakeholder›s perspective, conditioning, and what is happening
ers and employee behavior and mindset. to the stakeholder in the change» (Anderson, 143). Great leaders
will be able to identify these needs and utilize the situation to turn
Besides internal drivers such as leadership, employee behavior, any kind of resistance into a commitment.
and mindset, JEC should also look at external drivers of change.
“It is equally true that attending only to the internal drivers and According to “Ten Critical Actions for Leading Successful
neglecting the external ones will cause transformation to fail” Transformation” JEC must complete tens steps in order to change
(Anderson, 34). JEC should look at both the external (content) effectively. The first step is to “Develop Clear Business Results
and internal (people) drivers that are going to be affected in order that the Change Effort Must Produce.” This Human Capital
to be successful during change. In order for JEC to make posi- Investment Plan discusses the elements of leadership, recruit-
tive changes, they need to become unstuck, understand why this ment, employee development plans, and communication. These
change is needed, focus on the training needed to implement this elements are necessary to build human capital at JEC. JEC should
Human Capital Investment Plan, and become accountable. be focused on these elements at all times and hold individuals
accountable if they steer away from the plan in order to be success-
ful.

15
 “Create a Comprehensive Change Strategy that Integrates All “Transform Mindset and Behavior While the Organization
of Your Change Efforts” is the next critical action. This change Transforms” is the next critical step to change effectively. Mindset
strategy includes content and people processes that will ultimately change needs to occur by both leaders and employees in order to
help JEC reach their business results. The process includes how make transformational change successful. JEC must grow from
JEC’s change effort will be administered and organized. The first old business practices as mentioned in the leadership element and
action in the leadership element is to have a critical conversation develop new viewpoints by working co-creatively. “The most im-
with JEC’s president. His leadership style and business ethics will portant building block to achieve this critical mass is for your lead-
need to change. The conversation must be fact-based, showing ers to begin the change effort by addressing their own mindsets”
the detrimental results if JEC continues on a controlled path, (Anderson, (article 5), page 4). The leaders will need to change in
compared to a participative and co-creative environment. It must order for JEC to change. The key elements in the communication
show defined results in both leadership styles to make an impact process are also needed to transform mindsets and behaviors. Lead-
for change. Both the recruitment and employee development plan ers can discuss what needs to transformed; however, their actions
elements will be administered and organized by Human Resources, will speak louder than their words.
managers, and supervisors. By working together, they can hire
skilled employees and develop their current workforce to maximize This leads to “Ensure that Your Change Process and Change
their skills and potential. The communication element will need Leadership Behavior Model the Desired Future.” JEC’s leaders will
to be administered by the leaders of the organization. Their words, need to lead by example if they want their employees to shadow
followed by their actions, will determine the success of this plan. their behavior. “Employees get their primary clues about whether
the organization’s espoused changes are real from two key factors:
The third step to change is “Lead the Effort Co-creatively and (1) the change leaders’ behavior, and (2) the change strategies
Minimize Command and Control” as discussed in the leadership used to achieve the transformation” (Anderson, (article 5), 4). In
element. Changing JEC’s process will be a windy road and leaders order to build employee commitment, the actions of JEC’s leaders
must drive it not knowing the exact direction, but focusing on must reveal the preferred future of the organization. Currently,
the destination of this plan. In each element, working together is JEC’s leaders look defeated and in order to achieve a better future,
crucial whether leaders are working with leaders or managers are leader’s mindsets and behaviors need to change. “It is far tougher
working with employees to develop their skills. JEC should join for leaders to maintain the level of influence required to compel
forces together on all business levels, working towards these goals the workforce to change if they have lost credibility” (Anderson,
to get the desired results. (article 5), page 4). JEC’s leaders are on the brink of losing their
influence on employees and they have already lost a number of
“Use a Common Change Process Methodology as Your Naviga- talented employees. It is time for JEC’s leaders to change.
tional Roadmap” is needed during change such as using the right
tools. A common tool used during change is coaching. “Coaching “Create Critical Mass through Whole System Engagement” begins
interventions attempt to improve an individual’s ability to set and with engaging all employees at JEC in this change process. This
meet goals, lead change, improve interpersonal relations, handle plan involves everyone, not just the leaders of the organization.
conflict, or address style issues” (Cummings & Worley, 451). JEC All participants will need to be held accountable for their part in
should implement coaching on all levels of the organization. this transformation. In order to ensure this, open and honest com-
Coaching involves leaders that help employees focus on knowl- munication should occur along with periodic meetings to discuss
edge, skills, and abilities. Change leaders should be consciously progress. There also needs to be consequences for any employee,
aware of what is happening around them and learn from it. By including leaders who do not participate or deter the progress of
coaching, they can steer employees in the right direction to meet this plan.
their needs for change. During this process, JEC will discover their
ideal future state. “Change leaders must constantly gather new “Establish Conditions for Success Early” by “requiring certain
information and learn from what is actually happening in the or- conditions, such as: (1) clear direction and understanding of why
ganization, then course correct their change process and timetable the change is necessary, (2) adequate resources, (3) adequate time
accordingly” (Anderson, (article 5), page 3). Using coaching on and attention for change activities, (4) executive alignment, etc”
all levels of the organization will help the workforce navigate the (Anderson, (article 5), page 4). To make a change this extreme,
change process. JEC will need to pick the best time for implementation. Human
The fifth critical step to change effectively is “Accurately Scope Resources recommends that this plan starts in the New Year. Kick
the Breadth and Depth of Transformation Required.” “You can off 2014 with new missions and goals showing the employees that
only formulate your change plans and timetable to the degree that JEC is serious about these change initiatives and their employees
you have an accurate scope of what the transformation entails and are their number one asset. This plan will develop leaders and
what aspects of your organization and workforce it will impact” employee’s knowledge, skills and abilities and together, a better
(Anderson, (article 5), page 3). JEC should review this Human business future can be developed.
Capital Investment Plan and its elements on a quarterly basis to
accurately determine if the change process needs adjusting and the
The last critical step is to “Continue Until All Aspects of the
impact it has had in regards to the people (internal) and content
Organization Are Aligned to Produce the Desired Business Out-
(external). This meeting should be held with JEC’s leaders, man-
comes.” Through leadership, recruitment, employee development
agers, and supervisors so everyone in this process understands the
plans and communication, JEC will begin to establish a human
plan and its’ schedule to meet the outlined goals.
capital future. Alignment of external and internal factors must oc-
cur in order to optimize the desired outcomes of this plan.

16
This Human Capital Investment Plan will be difficult to imple- measured by the results they produce and individuals should be
ment if leaders are not held accountable for each element as soon held accountable if they do not meet the preferred business results.
in Appendix G. Accountability is the center of this plan. “To
become accountable, we need to understand the impact of the Great leadership and accomplishment needs to be defined by
decisions we make as leaders and the consequences for our organi- desired business outcomes. “This process can lead to ownership
zations” (Bailey, 1). To be held accountable, leaders accept what and recognizing each person’s leadership role and ultimately to
has occurred, own the situation, and the results. JEC’s leaders will accountability” (Bailey, 1). Accountability is a must for this plan
need to drive for the results listed in this plan. They should evalu- to be successful. It is also imperative to build trust at JEC. Leaders
ate this plan and if the desired results are not met, leaders should should listen to employees and interact with them to understand
get involved and make improvements. how things are going in the organization. If concerns rise, leaders
should investigate, find out what went wrong, brainstorm a solu-
Evaluation of this plan is essential for it to be successful. There tion, and follow through with the change to build trust and move
are different types of data collections methods that could be used forward into a human capital future. “At the end of the day this
to assess this plan such as questionnaires, interviews, and obser- principle of accountability is about personal and organizational
vations. Questionnaires can be used when wanting to get the integrity. We cannot control everything, but we can control what
opinion of the workforce about JEC’s new leadership and com- we do about what happens” (Bailey, 1). JEC must build trust, com-
munication style. Questionnaires are easy to administer, conve- municate this plan, and consistently work towards meeting the
nient, and can be inexpensive if done in-house. There are some goals of this Human Capital Investment Plan.
disadvantages of questionnaires however such as lack of response
and no clarification of questions. If lack of response occurs, it is JEC’s leaders will say that their employees are their most impor-
imperative for JEC to find out why as this is an indication of poor tant asset, but their actions do not account for their words. If JEC
employee involvement and morale. Also, questionnaires “are open is going to take this belief seriously, then this Human Capital In-
to self-report bias, such as respondents’ tendencies to give socially vestment Plan is essential. This plan is an important tool that will
desirable answers rather than honest opinions” (Cummings & be used to drive focused actions and ensure organizational success.
Worley, 123). Open and honest communication and feedback on It will help shape JEC by developing the workforce while meeting
all levels of the organization is required for change success. the vision, mission, and goals of the organization. JEC’s Human
Capital Investment Plan addresses human capital challenges that
JEC’s leaders could also complete interviews to help gain de- will help the organization progress towards building effective lead-
tailed data. These interviews will allow leaders to develop better ership, obtaining and developing top talent, driving performance
relationships with employees. To evaluate success in employee to optimal results, communicating, and changing for the benefit
development plans and change management, interviews would be of JEC’s future. This plan will become a roadmap for continuous
vital as JEC would be receiving information right from the source. improvement and the framework for revolutionizing the culture,
operations, and future of JEC.
Observation is way of gathering data by watching behavior, events,
or noting physical characteristics in the organization setting. It Works Cited
shows accurate data in real time. Observations can be overt or
covert. Overt is where everyone knows they are being observed;
Anderson, D. and Linda Ackerman Anderson., “Beyond Change
whereas, covert no one knows they are being observed and the
Management”, 2nd edition. Pfeiffer, 2010.
observer is concealed. “The benefit of covert observation is that
people are more likely to behave naturally if they do not know
they are being observed” (cdc.gov). By observing covertly, JEC can (article 1) Anderson, D. and Linda Ackerman Anderson., “How
determine if the culture of the organization is changing. Observa- Developing Breath Control Can Make You a Better Leader.”
tions can also determine whether or not the recruitment efforts Being First, Inc. 2010.
have been successful.
(article 2) Anderson, D. and Linda Ackerman Anderson., “How
Whichever data collection is used, JEC should take accountability To Use Decision-Making as a Tool for Successful Transforma-
for this plan. JEC’s typical plan of action when taking account- tion.” Being First, Inc. 2010.
ability includes acknowledging that there is a problem and doing
very little to resolve it. As leaders of the organization, they are (article 3) Anderson, D. and Linda Ackerman Anderson.
responsible and should acknowledge that responsibility to both top “Selecting the Best Change Process Leader to Oversee
management and employees. “Being accountable does not mean Your Transformation.” Being First, Inc. 2010.
simply accepting responsibility and ignoring true cause and effect
relationships” (Bailey, 1). If something in this plan is not effec- (article 4) Anderson, D. and Linda Ackerman Anderson.,
tive, understanding what went wrong is critical. These elements “How Command and Control as a Change Leadership Style
will need to be evaluated on a consistent basis to determine their Causes Transformational Change Efforts to Fail.” Being First,
effectiveness. This evaluation process will put JEC ahead of their Inc. 2010.
competition. Accountability should not only be embedded into
the leaders but also in the mindset of the organization. “A sense
(article 5) Anderson, D. and Linda Ackerman Anderson. “Ten
of accountability can be instilled through empowerment and we
Critical Actions for Leading Successful Transformation.”
can empower people when we give them tasks that are measured
Being First, Inc. 2010.
by outcomes not activities” (Bailey, 1). These elements should be

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