People

Change Management

Organizational Congruence Model

Nadler - Tushman

INPUT INPUT

ENVIRONMENTENVIRONMENT(P.E.S.T.)(P.E.S.T.)

RESOURCESRESOURCES

HISTORY/HISTORY/CULTURECULTURE

OUTPUTOUTPUT

ORGANIZATIOORGANIZATIONALNAL

LEVELLEVEL

UNIT/GROUPUNIT/GROUPLEVELLEVEL

INDIVIDUALINDIVIDUALLEVELLEVEL

INFORMALSTRUCTURE& PROCESS

PEOPLE

FORMAL STRUCTURE

SSTTRRAATTEEGGYY

WORK

TRANFORMATION PROCESSTRANFORMATION PROCESS

INDIVIDUAL CHANGE (Theory Types)

BEHAVIOURAL(Changes what you do)

COGNITIVE(Motivating for results)

PSYCHODYNAMIC(What’s going on for you)

HUMANISTIC PSYCHOLOGY(Maximising your own potential)

THE BEHAVIOURAL APPROACH TO CHANGE

The behavioural approach focuses on •how one individual can change another individual’s behaviour using •reward and punishment, to achieve intended results. •to elicit the preferred behaviour the individual must be encouraged to behave that way, and discouraged from behaving any other way.

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THE BEHAVIOURAL APPROACH: MOTIVATION

Intrinsic Motivation Factors

Things that are done because the person finds doing the activity a reward in itself

Intrinsically motivated people love their work and take pride in feelings of accomplishment it provides them

Praise, laud, recognition Less concern or desire for

economic or personal gains

Extrinsic Motivation Factors

External to the job and are done in order to obtain a monetary or physical reward, a social reward, or to avoid punishment Wages, incentives, awards,

job title that reflects status Extrinsically motivated people

focus on what they receive or don’t receive for their efforts Work is not of utmost

importance, it’s what they get for it

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THE BEHAVIOURAL APPROACH: HERZBERG’S MOTIVATION-HYGIENE (2-FACTOR APPROACH)

Definition

People need to have a job with motivators present and hygiene factors absent or neutral Motivating factors are intrinsic

to job Achievement, recognition, the

work itself, responsibility, advancement, growth

Hygiene factors are extrinsic Company policies and admin,

supervision, relationship with supervisor, work conditions, salary, relationship with peers, status, security

Application

Consider presence or absence of groups of factors Make sure people find work

interesting and challenging Build motivating factors—

opportunities for achievement, recognition, enjoyable work, responsibility, and advancement into activities

Ensure hygiene factors are not considered negative and working as de-motivators

THE BEHAVIOURAL APPROACH EXPECTANCY THEORY SYSTEM

EXPECTANCYEXPECTANCYLikelihood increasedeffort will lead togreater performance

INSTRUMENTALITYINSTRUMENTALITYLikelihood greaterPerformance will leadto more rewards

VALENCEVALENCEImportance of receivingMore of certain rewards

REWARDREWARDPERFORMANCEPERFORMANCEEFFORTEFFORT

THE COGNITIVE APPROACH TO CHANGE

Cognitive psychologists were•much more interested in learning about developing person’s capacity for problem solving. •They were interested in things that happen within a person’s brain. •These are the internal processes

THE COGNITIVE APPROACH: MOTIVATION

(Cognitive Theories: ( Motivating for results )Aaron Beck – 1970

SELF CONCEPT &

VALUES BELIEFS

ATTITUDES

FEELINGS

BEHAVIOUR

RESULTS

THE COGNITIVE APPROACH TO CHANGE

This approach involves focusing on building a• approaches to change•positive mental attitude and •some stretching goals,•that becomes self-defeating.

THE PSYCHODYNAMIC APPROACH TO CHANGE

The word ‘psychodynamic’ is based on the idea that when facing•change in the external world, an individual can experience a variety of internal psychological states. •the psychodynamic approach began not in the arena of organizations, but for Kubler-Ross in the area of terminally ill patients.

Psychodynamic: ( Whats going on for you? )1. Reactions to change – Kubler - Ross 1969

SELF

ESTEEM

TIME

Denial

Anger

Bargaining

Depression

Acceptance

Psychodynamic: ( Whats going on for you? ) 2. Reactions to change – Adams, Hayes & Hopson 1976

SELF

ESTEEM

CONFIDENCE

MORALE

TIME

Denial

Anger

Bargaining

Depression

AcceptanceShock

Experimentation

Discovery

Integration

(C) Psychodynamic: ( Whats going on for you? ) 3. Reactions to change – Satir 1991 & see also

Wernberg 1977

PERFORMANCE

TIME

OLD STATUS

QUO

FOREIGN ELEMENT

CHAOS

IDEASINTEGRATION

PRACTICE

NEW STATUS

QUO

The DADA syndrome

Denial – ignore possible or current change

Anger – individuals facing unwanted change become angry about the change

Depression – individuals experience emotional lows

Acceptance – individuals embrace the reality of the situation and make the best of it

THE HUMANISTIC PSYCHOLOGY APPROACH TO CHANGE

Humanistic psychology go one step further in stating that without being fully present emotionally in the situation you cannot be fully effective, and you will not be able to maximize your learning, or anyone else’s learning.•Maslow’s Hierarchy of Needs•love, creativity, self, growth, self-actualization, higher values, being, becoming, responsibility, transcendental experience, peak experience, courage and related concepts

(D) Humanistic Approach: ( Maximising your own potential )

1. Hierarchy of Needs – Maslow 1970

Self Actual-ization

Self Esteem Needs

Love and Belonging Needs

Safety Needs

Physiological Needs

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THE HUMANISTIC PSYCHOLOGY APPROACH : Maslow’s Hierarchy of Needs

Definition

Classifies need Physiological (basic survival

needs) Security (need to be safe, for

shelter) Social (belongingness, need to

have interaction, friendships) Ego (need to feel good about

yourself, receive recognition) Self-actualization (need to

reach fullest potential) When needs in 1 level are met,

factors in the next motivate

Application

Use reinforcements that meet needs at each level Physiological: salary and bonus Security: insurance, retirement Social: work/life balance (flex

hours, job share, etc.) Ego: recognition for

accomplishments Self-actualization: satisfaction

with balance between work accomplishment and home life

COMPETENCE (Gestalt Style)

Unconscious competence

Inductive and deductive learning

Inductive instruction makes use of people “noticing”. the leader presents people with many examples showing how the concept is used. The intent is for people to “notice”, by way of the examples, how the concept works.

A deductive approach means that the leader gives the people a new concept, explains it, and then has the people practice using the concept. The people will practice using the concept in a variety of different ways.

Learning Cycle (Kolb style)

Experience (Start here)

Experiments Reflective Observation

Theories (or Start here)

Encourage New Activities

Design Toolkits to experiment

Question and Analyse what is going on

Research new ideas

Nonaka’s Model of Knowledge Creation and Transformation

3-23

TACIT TO TACIT(SOCIALIZATION)

 e.g., Individual and/or Team

Discussions, „Birth giving” 

TACIT TO EXPLICIT(EXTERNALIZATION)

 e.g., Documenting a Team

Meeting, Best Practice

EXPLICIT TO TACIT(INTERNALIZATION)

 e.g., Learn from a report and Deduce new ideas.

Learning on job 

EXPLICIT TO EXPLICIT(COMBINATION)

 e.g., Create a Website from

some form of explicit knowledge; Knowledge

sharing

Tacit

Tacit Explicit

Explicit

Person–Organization Fit Screening Techniques

Text in this colorPaper-and-pencil tests

Standardized, quantifiable, self-administered

instruments

Advantages: Easy to administer and score Inexpensive to use in large scale Simple to compare Valid job success predictor

Disadvantages:

Produces homogenous work force May be resisted/resented by minority applicants

Person–Organization Fit Screening Techniques

Behaviorally anchoredinterviews

Applicants recount specific examples of past experiences

Advantages: Focuses on specific behaviors Valid Supplement to other methods Validity increases when multiple interviewers score results

Disadvantages:

Deals with recounted rather than actual behaviors Can be slow and expensive

Person–Organization Fit Screening Techniques

Behavioral simulationApplicants engage in

role-playing exercise while observed by screeners

Advantages:

Deals with actual rather than recounted behaviors

Disadvantages:

Can be slow and expensive

Personalities

PEOPLE & PERSONALITIESPersonality Types – Myers Briggs

(E) Extraversion Intraverzion (I) (S) Sensing Intuition (N) (T) Thinking Feeling (F) (J) Judging Perceiving (P)

Useful Change Groups IS = Thoughtful Realists – cautious and careful – “If it isn’t broke don’t fix it”IN = Thoughtful Innovators – generates new ideas – “Let’s think ahead”ES = Action Oriented Realist – energy and enthusiasm – “Let’s just do it”EN = Action Oriented Innovators – enthusiastic for change – “Let’s change it”

Personality and changeMyers-Briggs Type Indicator™ types

•Created in 1954

Bloom’s Domains of Learning/Competencies

Achieving a change affects three dimensions of the individual

Emotional

Change is understood

and feel to be an urgent need

Intellectual

There is a clear rationale for the

proposed changes that makes standing

still not an option

Physical

People need to be competent in a new way of working

People and Individuals Summary

Changing values and behaviours

.

5 factors in responding to change – Cameron & Green 2004

3. ORGANISATIONAL HISTORY

2. CONSEQUENCES OF CHANGE

1. NATURE OF CHANGE

RESPONSE TO CHANGE4. TYPES OF

INDIVIDUALS

5. INDIVIDUAL HISTORIES

People

Training

Building a Vocabulary

People alignment: organizational effects taken to match the skills and behaviors of employees within the organization with the business’ strategy.

“In order to develop required human resource competencies, organizational leaders need to align

the selection, training, development, and removal of employees with the behavioral

requirements of the desired change.”

“People alignment––getting the right people on the bus and the wrong people off the bus—is a key to effective

change implementation.”

Make/Buy Options for Changing Human Resources

Make:– Training– Alter incentives

Buy:– Recruitment– Selection

Advantage: Uses existing knowledge/

skill base

Advantage: Can quickly add required

skill/knowledge

Disadvantage:May be slow; not allcurrent employees

willing or able

Disadvantage:May undercut morale/

commitment of existing employees

Advantage: Uses existing knowledge/

skill base

Advantage: Can quickly add required

skill/knowledge

Disadvantage:May be slow; not allcurrent employees

willing or able

Components of Training for Change

Component: Focus: By:

Knowledge Development

Developing understandingwithin employees of new strategy and requirements for change

Classrooms, lectures,discussion groups,and so on

Skill Development

Developing capability within employees to enact required new behaviors

Role playing,‐experimentation,real time feedback,‐and so on

“Training can help convey to employees how their competitive environment is changing and why their own behaviors need to be altered”

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The Training Process: 4-Stage Training Cycle

9-38

Determine Training ObjectivesAssessment of Training Needs at Different Levels – example for salespeople

People

Overcoming ResistanceManaging Conflict

Building a Vocabulary

• Resistance: efforts exerted by employees either overtly or covertly to maintain the status quo.

“Employee response to change runs across a broad spectrum, ranging from commitment at one end to aggressive resistance” on the other. Each of these reactions to change helps shape the behavior of individuals and, ultimately, the success of a change effort.”

Management’s Role in Creating Resistance

Text in this colorResistance CauseSatisfied with status

quoEmployees not included

Change is perceived as threat

Employees see little opportunity to get required

skills

Cost outweighs benefits

Inadequate articulation of goals

Belief that management is

mishandling the process

Employees’ voice and interest not being included

Employees doubt success

Past change efforts lack sustained success

Underlying Causes of Resistance• Individuals may be satisfied with the status quo. Because their

needs are being met, they may view any potential change as negative.

• Individuals may view change as a threat, fearing it will adversely affect them in some significant way.

• Individuals may understand that change brings both benefits and costs, but feel that the costs far outweigh the benefits.

• Individuals may view change as potentially positive, but may still resist because they believe that the organization’s management is mishandling the change process.

• Individuals may believe in the change effort ,but still believe that the change is not likely to succeed.

Overcoming Resistance to Change

• Strategies for Overcoming Resistance to Change– Education and communication– Participation and involvement– Facilitation and support– Negotiation and agreement– Manipulation and co-optation– Explicit and implicit coercion

Managing Conflict

• Conflict– One person’s incompatible behaviors that make

another person’s actions less effective• Dealing with the Two Faces of Conflict

– Competitive conflict: Parties pursuing directly opposite (win-lose) goals

– Cooperative conflict: A mutually reinforcing experience (win-win) that serves the best interests of both parties

Ass

ert

iven

ess

Co-operativeness

Unass

ert

ive

Ass

ert

ive

Unco-operative Co-operative

Competing Collaborating

Compromising

AvoidingAccommodating

Conflict Handling Styles

1. Collaborating

• Combining assertiveness and co-operativeness• Trying to resolve conflict through problem-

solving• It works when there is enough trust and openness

to share information so that the parties can find a mutually beneficial solution

2. Avoiding• Smoothing over or avoiding conflict • Appropriate to use when:

(a.) the problem is trivial(b) used as a temporary tactic to cool down heated

disputes

• In the short-term it is OK for handling managing conflict, but it creates frustration in long-term

3. Competing• Trying to win the conflict at the other’s expense

(a strong win/lose orientation)• Appropriate to use when:

(a) you are correct(b) a quick solution is required(c) other party would take advantage of co-operation

4. Accommodating• Giving in to the other side’s wishes, with

little attention to one’s own interests• Appropriate to use when:

(a) you are wrong(b) other party has substantially more power(c) the issue is less important to you than to the

other party• Problem: it may give the other side

unrealistically high expectations– if so, it increases future conflict

5. Compromising• Reaching a middle ground

– being willing to give up something in return for something else

• Appropriate to use when: (a) the parties have equal power(b) there is time pressure to settle differences

• Usually this leads to an unsatisfactory resolution for both parties