chapter 12 Organizational change and culture
Responding to resistance
The blocker: "I don't want to do it that way." Manager: "What are your objections to the change? How would you prefer to do it?" The roller: "What do you want me to do?" Manager: "I want you to . . ." (Be specific and describe the change in detail; use communication skills. Don't let them give up easily.) The staller: "I'll do it when I can." Manager: "What is more important?" The reverser: "That's a good idea." (But she or he never does it.) Manager: "What is it that you like about the change?" The sidestepper: "Why don't you have XYZ do it?" Manager: "I asked you to do it because . . ." The threatener: "I'll do it, but the guys upstairs will not like it." Manager: "Let me worry about it. What are your objections?" The politician: "You owe me one; let me slide." Manager: "I do owe you one, but I need the change. I'll pay you back later." Page 382The traditionalist: "That's not the way we do things around here." Manager: "This is a unique situation; it needs to be done." The assaulter: "You're a . . . (pick a word)." Manager: "I will not tolerate that type of behavior." Or, "This is really upsetting you, isn't it
Technology Change
The change in the sequence of work in process With the aid of the computer, organizations have changed the way they process information.
Organizational Process
commonly referred to as organizational development (OD).37 Organizational development is the ongoing planned process of change used as a means of improving the organization's effectiveness in solving problems and achieving its objectives.
Stages in the change process
(1) Denial: When people first hear rumors through the grapevine that change is coming, they deny that it will happen at all, or to them. (2) Resistance: Once people get over the initial shock and realize that change is going to be a reality, they resist the change. (3) Exploration: When the change begins to be implemented, employees explore the change. (4) Commitment: Through exploration, employees determine their level of commitment to making the change a success.
Focus/ 3 major focuses of resistance
(1) Self: It is natural for people to want to know, "What's in it for me? What will I gain or lose?" (Self-interest.) (2) Others: After considering what's in it for them, or when they are not affected by the change, people tend to consider how the change will affect their friends, peers (peer pressure), and colleagues. (3) Work environment: The work environment includes the job itself and the physical setting and climate. Employees' analysis of the facts about the current versus the changed work environment will affect their resistance to the change.
Why people resist change
1) maintaining the status quo (people like things the way they are now, view the change as an inconvenience, or don't agree that a change is needed),13 (2) uncertainty (people tend to fear the unknown and wonder how the change will affect them),14 (3) learning anxiety (the prospect of learning something new itself produces anxiety), and (4) fear (people often fear they may lose their jobs, that they will not be successful with learning new ways, or that they may lose control over how they do their jobs).15 Next you will learn why people resist change and how to overcome it. Before making changes, anticipate how employees will react to or resist the change and how you will overcome it
Training and development
After a position is staffed, there is usually a need to train the person to do the job. Training is the process of developing the necessary skills to perform the present job. Development is the process of developing the ability to perform both present and future jobs. Typically, training is used to develop technical skills of nonmanagers, while development is usually less technical and is designed for professional and managerial employees. The terms training and development are often used together; they are used interchangeably as well.
Performance Appraisal
After employees are hired, and during and after their training, they must be evaluated. Performance appraisal is the ongoing process of evaluating employee job performance. Performance appraisal is also called performance job evaluation, performance review, merit rating, and performance audit. Regardless of the name, performance appraisal is one of the manager's most important, and most difficult, functions. Conducted properly, *performance appraisal can decrease absenteeism and turnover and increase morale and productivity. The performance of employees is appraised according to two sets of objectives: (1) developmental and (2) evaluative. Developmental objectives are used as the basis of decisions to improve future performance. Evaluative objectives are used as the basis of administrative decisions to reward or punish past performance. The performance appraisal process has five steps. These are shown in Exhibit 12.8 and steps 2 and 3 are discussed below.
Developing standards and measurement methods
After you determine what it takes to do the job, you should develop standards and methods for measuring performance. This is step (2) in the performance appraisal process. Poor standards are a major problem of performance appraisals.
Global differences
Change leadership skills are important globally.40 As stated, the Big Five personality types are global. Therefore, individuals in all cultures are more or less open to change. However, cultural values can influence openness to change. Countries including the United States value change, whereas other cultures, including some Arab countries, place less value on change and more on tradition and religious beliefs. The United States is known for creating urgency and for setting deadlines for implementing change. However, other cultures take a slower approach and are more patient, such as many Asian and Middle Eastern countries. Collective (i.e., Japan, China, Mexico) versus individual (United States and much of Western Europe) societies do affect change. Collective societies tend to want to Page 391improve the team and organizations, so individuals are often more open to change to help others even when they personally may not gain and even lose, whereas those in individual societies are more concerned about helping themselves and are more willing to resist change that hurts them personally. The Japanese generate a lot more creative ideas for improvement than do U.S. workers. The Japanese tend to focus on small incremental changes to improve processes and products, whereas Americans tends to focus on large major changes. The baseball example used is that the Japanese try to get a hit, whereas Americans go for the home run. Some cultures are more open to power and following orders for change without questioning authority, such as France, China, and India. However, other cultures are more willing to question and resist change, such as the U.S. and Scandinavian (Denmark, Sweden, and Norway) cultures, which can cause problems for companies trying to change. Participation in change also varies by culture and country development. For example, in the United States and Japan employees are highly trained and want to participate in planning and implementing change. However, in Third World countries employees are generally neither capable nor interested in being empowered to participate in the change process. Cultures that are more open to power-People tend to obey orders for change without questioning authority Cultures that are less open to power- People tend to resist orders for change by questioning authority.
The major difference between culture and climate
Culture is based on shared values and assumptions of "how" things should be done (ideal environment), while climate is based on shared perceptions of the "way" things are done (intangibles of the actual internal environment). An organization can claim to have a strong culture and have a negative climate. Employees can know how things should be, while being dissatisfied with their perception of the way things actually are.
The Lussier Model consists of five steps
Define the Change. Clearly state what the change is. Is it a task, structural, technological, or people change? What are the systems effects on the other variables? Set objectives, following the guidelines in Chapter 8. Identify Possible Resistance to the Change. Determine the intensity, source, and focus of possible resistance to the change. Use the resistance matrix in Exhibit 12.3. Plan the Change. Plan the change implementation. Use the appropriate supervisory style for the situation. We will discuss planned change in more detail later in this chapter. Implement the Change. Follow the 11 guidelines to overcome resistance to change in Exhibit 12.4. Control the Change. Remember that people often resist change and may not follow your plan,31 so you need to follow up to ensure that the change is implemented, reinforced, and maintained. Make sure the objective is met. If not, take corrective action. True statement: Is a more specific model of organziational change than the lewins change model
Overcoming Resistance to change (Methods)
Develop a Positive Climate for Change. Develop and maintain good human relations. Because change and trust are so closely intertwined, the first concern should be to develop ongoing mutual trust. Encourage Interest in Improvement. Continually encourage creativity.18 Constantly look for better ways to do things. Plan. You need a plan to overcome resistance.19 Don't consider how you would react. What seems very simple and logical to you may not be to the other person. Try to see things from his or her perspective (Chapter 2). The next eight methods should be part of your plan. Give Facts. Get all the facts and plan how you will present them. Giving half-answers will only make employees more confused and angry, and hiding things and lying is a disaster. Giving the facts as far in advance as possible helps overcome the fear of the unknown. Clearly State Why the Change Is Needed and How It Will Affect Employees. People want and need to know why the change is needed and how it will affect them both positively and negatively. Be open and honest with employees. If employees understand why the change is needed, and it makes sense to them, they will be more willing to change.20 It is important to create a sense of urgency to kill complacency and get employees to want to change. Create a Win-Win Situation. Be sure to answer, "What's in it for me?" When people can see the benefits to them, and/or what they can lose, they are more willing to change. Involve Employees. Employees who participate in developing changes are more committed to them than employees who have changes assigned to them.21 Provide Support. Be supportive22 and give as much advance notice and training as possible before the change takes place. Training helps reduce learning Page 381anxiety and helps employees realize that they can be successful with the change. Stay Calm. Try not to do or say things that will make people emotional so that you don't create more resistance to change.23 Follow the guidelines on dealing with emotions in Chapter 5. Avoid Direct Confrontation. Trying to persuade people that their facts, beliefs, and values are wrong leads to resistance. Avoid statements that will get people emotional, like,"You're wrong; you don't know what you're talking about." Deal with conflict following the guidelines in Chapter 6. Use Power and Ethical Politics. Chapter 9 discussed how to get what you want through the use of power and politics, and it usually involves change. Power and political skills are commonly used to implement changes.24 Remember that the 11 methods for overcoming resistance to change should be a part of your plan for change. Below you will learn about planning for change.
Training cycle
Following the steps in the training cycle helps ensure that training is done in a systematic way. See Exhibit 12.7 for more details about each of the five steps in the training cycle. Model 12.1 summarizes the steps involved in conducting a job instructional training (JIT) session, which is part of steps 3 and 4 of the training cycle. Conduct needs assessment set objectives Preparing for training Conduct the training Measure and evaluate results Identify who needs to be trained, their learning styles, and what they need to learn to improve performance. Set performance based objectives stating what employees will be able to do at the end of the training Design training methods that will be used to meet the set objectives Implement the training Measure and evaluate the training to decide whether the set objectives are met during and after the training
Management information systems (MIS)
Formal systems for collecting, processing, and disseminating the information necessary to aid mangers decision making. he MIS attempts to centralize and integrate all or most of the organization's information such as, production, inventory, and sales information.
Technological discontinutity
Incremental changes continue to the point of with advances or unique combinations of existing technologies creating a significant breakthrough in performance or function.
Automation
Is the simplification or reduction of human effort required to do a job. computers and other machines have allowed some jobs to be done by robots.
Change also takes one of two broad forms:
It is either incremental or discontinuous.
Change Models
It is important to know how to implement change.25 So here are two change models, providing a pro-change orientation. really upsetting you, isn't it?" The above supervisory responses will be helpful in most situations, but not all. If employees persist in resisting the change, they may need to be considered problem employees and handled accordingly as discussed in Chapter 11. Change Models It is important to know how to implement change.25 So here are two change models, providing a pro-change orientation. Lewin's Change Model In the early 1950s, Kurt Lewin developed a technique, still used today, for changing people's behavior, skills, and attitudes. Lewin viewed the change process as consisting of three steps: (1) Unfreezing: This step usually involves reducing those forces maintaining the status quo. (2) Moving: This step shifts the behavior to a new level. This is the change process in which employees learn the new desirable behavior, values, and attitudes. (3) Refreezing: The desirable performance becomes the permanent way of doing things. This is the new status quo. * Refreezing often takes place through reinforcement and support for the new behavior.
incremental change
Occurs withing an already existing technology cycle
Organizational Culture
Organizational values are important,26 and management needs to be specific about the values and behaviors it expects from its people Consists of the shared values and assumptions of how its members will behave
Two dimensions of an organization
Organizations with clear values that are shared to the extent of similar behavior have strong cultures. Organizations that have no stated values and do not enforce behavior have weak cultures. So the more alike the values and behavior, the stronger the culture, and vice versa. Examples of strong cultures include: IBM IBM is recognized as having a very strong culture. It has three core values. "IBMers value: (1) dedication to every client's success; (2) innovation that matters, for our company and for the world; and (3) trust and personal responsibility in all relationships. There is a sense of pride and of being able to distinguish yourself as an IBMer."32 PepsiCo, Inc. Pepsi's organizational culture stresses competition in every aspect of an employee's work life. Pepsi executives are jointly determined to surpass archrival Coca-Cola while at the same time surpassing rival executives at PepsiCo. Managers are continually pressured to increase market share; a decline can lead to a manager's dismissal. As you can see, IBM stresses excellence; PepsiCo, competition. They have different cultures, yet they are successful organizations, which shows there is no one best organizational culture.
Conducting Informal Performance Appraisals-Coaching/Steps in coaching model
Performance appraisals should not merely be formal once-a-year, one-hour sessions. Employees need regular informal feedback on their performance.39 The employee performing below standard may need daily or weekly coaching to reach increased productivity. The coaching model is designed for use in improving ability and for dealing with motivation problems. The coaching model involves 7 steps: step (1) refer to past feedback; step (2) describe current performance; step (3) describe desired performance; step (4) get a commitment to the change; and step (5) follow up.
conducting an instructional training
Prepare the session present the job make john perform the job follow up with john`
Performing Appraisal Five step
Refer to past feedback Describe current performance Describe desired performance Get a commitment to the change Follow up
Task
Refers to the day to day things that employees do to perform their jobs. Tasks change with technology and with structural changes. As tasks change, people's skills must change.
Structure
Refers to the type of organization principle and departments used. It is important to coordinate structure with technology.
Computer
Sophisticated machine that is also part of many other machines.
Dimensions of Climate
Structure. The degree of constraint on members—the number of rules, regulations, and procedures. Responsibility. The degree of control over one's own job. Rewards. The degree of being rewarded for one's efforts and being punished appropriately. Warmth. The degree of satisfaction with human relations. Support. The degree of being helped by others and of experiencing cooperation. Organizational identity and loyalty. The degree to which employees identify with the organization and their loyalty to it. Risk. The degree to which risk-taking is encouraged. Studies show that poor climate tends to result in lower levels of performance, but not always. Like plants, employees require a proper climate to thrive. Working in a climate you enjoy will also affect your performance.
The four variables or types of change
Technological change, structural change, task change, and people change. The proper metaphor for the systems effect for managing change is a balanced mobile in which a change in one variable affects the others. Because of the systems effect, you need to consider the repercussions that a change in one variable will have on the other variables, and plan accordingly.
Managing and changing culture
The first step in organizational development is to diagnose the problem(s). Indicators that problems exist, such as conflicts between diverse groups, the need for increased quality and productivity, low profits, and excessive absenteeism or turnover, lead management to call in a change agent to study the organization's problems and needs. A change agent is the person responsible for the OD program.38 The change agent can use a variety of methods to diagnose problems.50 Some methods are reviewing records, observing, interviewing individuals and work groups, holding meetings, and/or using questionnaires. After the problem has been diagnosed, OD techniques are used to solve it. This section examines five OD techniques: training and development, performance appraisal, survey feedback, force field analysis, and team building. Training and development is presented first because the other four techniques usually include training.
Team building goals
The goals of team-building programs will vary considerably, depending on the group needs and the change agent's skills. Some of the typical goals are: To clarify the objectives of the team and the responsibilities of each team member. To identify problems preventing the team from accomplishing its objectives. To develop open, honest working relationships based on trust and an understanding of group members.
Creating as sociotechinical system
The integration of both people and technology It is people who create, manage, and use technology; therefore, people are the most important resource. What people often resist are the social changes brought about by technological changes. When changing task, structure, or technology, you should never forget the impact of change on people. Changing any of these other variables will not be effective without considering people change.
Positive and negative cultures
The most effective organizational culture that leads to effective performance is strong and positive. Companies with strong positive cultures, include Apple, Johnson & Johnson, Procter & Gamble, and 3M. Although IBM has a strong culture, its CEO Virginia Rometty is changing one aspect. She wants IBMers to think fast and move faster with innovations.33 Before accepting a job with an organization, you may want to learn about its culture to determine if it is the kind of organization you will enjoy working in. For example, if you are not competitive, you probably will not enjoy working for PepsiCo. Positive- Has norms that add to effective performance and productivity Negative- Has resistance and turmoil that prevents effective performance
Team building program agenda
The team-building agendas vary with team needs and the change agent's skills.39 Typical agenda topics include the following items: Climate building. The program begins with the change agent trying to develop a climate of trust, support, and openness. He or she discusses the program's purpose and objectives. Team members learn more about each other and share what they would like to accomplish in the session. Process and structure evaluation. The team evaluates the strengths and weaknesses of its process (team dynamics) (Chapter 11). The team explores and selects ideal norms. Problem identification. The team identifies its strengths, then its weaknesses or areas where improvement is possible. The team first lists several areas where improvement is possible. Then it prioritizes them by importance in helping the team improve performance. Page 390Problem solving. The team takes the top priority and develops a solution. It then moves to the second priority, followed by the third, the fourth, and so on. Training. Team building often includes some form of training that addresses the problem(s) facing the group. Closure. The program ends by summarizing what has been accomplished. Follow-up responsibility is assigned. Team members commit to improving performance.
Two dimensions of an organziation
The two dimensions of an organization's culture are strong and weak, and positive and negative.
Kurt lewins model of change
Unfreezing-involves decreasing the forces that maintain the status quo Moving-it involves the change process in which employees learn the new desirable behavior, values, and attitude Refreezing- it involves decreasing the forces that maintain the status quo
Learning the organizations culture/Five ways that employees learn the organizations culture
When hiring, an important consideration is matching the person to the culture. Newcomers need to learn and be integrated into the organization's culture, and those who don't fit are often let go. Beliefs and norms are important to culture.28 Culture is learned through observing and interacting with employees, events, and training. Here are five ways that employees learn the organization's culture. Heroes—such as founder Tom Watson of IBM, Sam Walton of Walmart, Herb Kelleher of Southwest Airlines, Frederick Smith of FedEx, and others who made outstanding contributions to their organizations. Stories—often about founders and others who have made extraordinary efforts,29 such as Sam Walton visiting every Walmart store yearly or someone driving through a blizzard to deliver a product or service. Public statements and speeches can also be considered stories. Slogans—such as "Quality is Job 1" at Ford; McDonald's Q, S, C, V—Quality, Service, Cleanliness, and Value; The H-P Way; FedEx's People—Service—Profit philosophy. Symbols—such as logos, plaques, pins, and jackets, or a Mary Kay pink Cadillac. Symbols are used to convey values.30 Ceremonies—including rituals such as a chest bump31 and awards dinners for top achievers. If you hear expressions such as, "That's not how we do things here," or "This is the way we do things here," you are learning the organization's culture.
Four basic reactions to change
acceptance, tolerance, resistance, and rejection. The resistance intensity can vary from strong to weak or somewhere in between. As a manager of change, you should anticipate the intensity of resistance to change so that you can effectively plan to overcome it.
Incremental change
continual improvement that takes place within the already existing technology cycle.
Standards
describes performance levels in the areas of quantity, quality, time, and cost. Sample standards for an administrative assistant could be to type 50 words (quantity) per minute (time) with two errors or less (quality) at a maximum salary of $15 per hour (cost).
Three major sources of resistance
facts, beliefs, and values. 1) Facts: Facts are statements that identify reality. (2) Beliefs: Facts can be proved; beliefs cannot. They are subjective. Our beliefs are our opinions that lead us to think and feel that a change is correct or incorrect, good or bad. (3) Values: Values are what you believe are worth pursuing or doing. What we value is important to us, whereas beliefs are not very important to us. People analyze the facts presented from all sources and determine if they believe the change is of value to them. When the facts are clear and logical and people believe the change is of value to them, they tend to have lower resistance to the change.
Technological changes
internet changes, have increased the rate of speed at which change takes place. Technology is commonly used method of increasing productivity.
Resistance to change
involves the variables of intensity, source, and focus, which together explain why people are reluctant to change. Before making changes, anticipate how employees will react to or resist the change and how you will overcome it.16 Resistance to change involves the variables of intensity, source, and focus, which together explain why people are reluctant to change. Ken Hultman identifies these three variables as the major variables of resistance to change.17 Intensity People often have four basic reactions to change: acceptance, tolerance, resistance, and rejection. The resistance intensity can vary from strong to weak or somewhere in between. As a manager of change, you should anticipate the intensity of resistance to change so that you can effectively plan to overcome it. Sources There are three major sources of resistance: facts, beliefs, and values. (1) Facts: Facts are statements that identify reality. (2) Beliefs: Facts can be proved; beliefs cannot. They are subjective. Our beliefs are our opinions that lead us to think and feel that a change is correct or incorrect, good or bad. (3) Values: Values are what you believe are worth pursuing or doing. What we value is important to us, whereas beliefs are not very important to us. People analyze the facts presented from all sources and determine if they believe the change is of value to them. When the facts are clear and logical and people believe the change is of value to them, they tend to have lower resistance to the change. Focus There are three major focuses of resistance: self, others, and the work environment. (1) Self: It is natural for people to want to know, "What's in it for me? What will I gain or lose?" (Self-interest.) (2) Others: After considering what's in it for them, or when they are not affected by the change, people tend to consider how the change will affect their friends, peers (peer pressure), and colleagues. (3) Work environment: The work environment includes the job itself and the physical setting and climate. Employees' analysis of the facts about the current versus the changed work environment will affect their resistance to the change.
Discontinous change
is a significant breakthrough in technology that leads to design competition and a new technology cycle. Discontinuous change breaks the status quo,9 and transforms the competitive environment,10 such as VHS tapes being replaced by CDs.
Morale
is a state of mind based on employees' attitudes and satisfaction with the organization. Morale can be different at various levels within the organization. Morale is commonly measured on a continuum ranging from high to low morale, based on the seven dimensions of climate listed below. Morale is also an important part of organizational climate.
Force Field analysis
is a technique that diagrams the current level of performance, the hindering forces against change, and the driving forces toward change. The process begins by appraising the current level of performance. As shown in Exhibit 12.9, the present level of performance is shown in the middle of the diagram. The hindering forces holding back performance are listed in the top part of the diagram. The driving forces keeping performance at this level are listed on the bottom of the diagram. Page 389After viewing the diagram, you develop strategies for maintaining or increasing the driving forces with simultaneous steps for decreasing hindering forces. For example, in Exhibit 12.9, the solution you select could be to have the salespeople go through a training program. You could spend more time working with the less productive salespeople. Speeding up delivery time could be worked on, while maintaining all the driving forces could lead to higher sales volume. Force field analysis is particularly useful for group problem solving. After group members agree on the diagram, the solution often becomes clear to them.
Team building
is an OD technique designed to help work groups operate more effectively. Team building is a widely used OD technique. Team building is an OD technique designed to help work groups operate more effectively. Team building is used as a means of helping new or existing groups that are in need of improving effectiveness.
Survey Feedback
is an OD technique that uses a questionnaire to gather data that are used as the basis for change. he survey feedback technique is commonly used to measure the organizational climate, or morale. Based on the results, the organization may set up training programs. Some of the signs that an organization may have a climate problem include high rates of tardiness, absenteeism, and turnover. When employees have many complaints, talk about unionization or striking, and lack pride in their work, the organization may have a climate problem that should be corrected. Organizational climate is measured in the same way job satisfaction is (review Chapter 3). **Survey feedback is the most common approach. But the dimensions included in the questionnaire vary from organization to organization.
Change agent
is the person responsible for the OD program.38 The change agent can use a variety of methods to diagnose problems
Organizational Climate
is the relatively enduring quality of the internal environment of the organization as perceived by its members **Is the employees views about an organizations current internal environment Climate is employees' perception of the atmosphere of the internal environment, which is important to organizational success.34 Organizational climate is a broad term. Its definition will be explained throughout this section.
Process
refers to how the organization transforms inputs, raw materials, parts, data, and so on.
Discontinuous change
results in design competition and a new technology cycle
Training and development
s the process of developing the necessary skills to perform the present job. Development is the process of developing the ability to perform both present and future jobs.