Lecture 1 - Introduction to Change Lecture Notes PDF

Introduction to Change and Understanding Change Dr. Petya Koleva Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024...

Introduction to Change and Understanding Change Dr. Petya Koleva Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Learning Objectives To be able to differentiate between ways that individuals learn in relation to the change process To distinguish between approaches to change To consider health, well-being and resilience in times of change To recognize responses to change To be able to make informed choices on how to manage people in the change process Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Five fundamental questions 1. Why do we want to change? 2. Should we focus on individual, group or system change? 3. Will there be resistance and, if so, where from? How can we gain employee commitment? Are we ready for change? 4. Who will manage the change process? Do they have the appropriate skills? 5. What are the frequency and magnitude of the changes required in order for us to survive? Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Why do organisations change? (1 of 2) The puzzle: Change is difficult – 70 per cent of initiatives fail. Yet, change seems to be happening more frequently and with greater magnitude than ever before. Why? Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Why do organisations change? (2 of 2) They change to survive. If competitors increase their effectiveness and they don’t, they’ll go out of business. Rollinson (2002: 468) states that: ‘Effectiveness’ is one of the most frequently used (and misused) words in discussing organisations. There is no universally accepted theory of organisational effectiveness. Neither is there a universally accepted definition and set of criteria that allows the effectiveness of an organisation to be measured. Longman Dictionary of Contemporary English (1978: 350) defines effectiveness as: ‘… the ability or power to have a desired effect’. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Organisational effectiveness Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Should we focus on individual, group or system change? There are three schools of thought: The Individual Perspective school The Group Dynamics school The Open Systems school. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  The Individual Perspective school (1 of 2) The supporters of this school are split into two camps: Behaviourists who argue that: – Behaviour results from an individual’s direct interaction with their environment. – All behaviour is learnt and that the individual is the passive recipient of external stimuli which shapes behaviour. – Once identified, these external stimuli can be manipulated to bring about behaviour change. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  The Individual Perspective school (2 of 2) Gestalt-Field psychologists who argue that: An individual’s behaviour is derived from the totality of coexisting and interdependent forces that impinge on them and make up the field or life space in which the behaviour takes place. Individuals function as whole, total organisms and are capable of understanding the forces which make up their life space and changing them so as to amend their behaviour. Change is a process of gaining or amending insights, outlooks, expectations or thought patterns. To understand an individual’s behaviour, it is necessary to take into account not only a person’s actions and the responses these elicit, but also the interpretation the individual places on these. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Individual change Learning preferences Activist: try out Reflector: think about Theorist: learn about Pragmatist: find purpose in Four approaches to change Behavioural – how to change behaviors to achieve the desired result Cognitive – how individuals think and react to change Psychodynamic – effect on individuals faced with change, loss or renewal. Humanistic Psychology – how can individuals get the most out of change Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Discussion Activity – Learning Approaches Apply the stages of Kolb’s learning cycle to a recent experience in your workplace/education institution - for example: a task completed, a report produced, a presentation given or as in the book, downloading a new app. How do you go about learning about it? What was the experience? Reflect on the experience – what did you learn by doing the activity? Learn from the experience – What have you learned? What are you good at? Not so good at? Try out what you have learned – What actions could you take next time? What do differently? Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Discussion Activity –Behavioural Approach Think about reward and punishment schemes that you have experienced in your workplace/education institution (for example; bonus for completing a task ahead of schedule or a penalty for late submission of work). Do rewards work? What types of rewards are motivating? Are rewards fair and equitable? What types of punishments (or withdrawal of rewards) work and what don’t work? Are punishments motivating? Are punishments fair and equitable? Perhaps apply Pareto Principle (80:20) when considering rewards and punishments. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Discussion Activity – Cognitive Approach Recall your reactions when you received feedback on some work that you had completed. Were your reactions positive or negative. Consider techniques for positively changing beliefs. What obstacles to change need to be worked through and cannot be made ‘ok’ by positive talk? Summary of this approach Development of the Behaviourist approach Builds positive mental attitude Lacks recognition of inner emotions Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Discussion Activity –Psychodynamic Approach Ask students to consider the following scenario A job review and restructuring exercise, as part of a financial saving strategy has recently been performed in the Distribution Warehouse of a large retail outlet. Staff have heard whispers of job losses and relocations, but others have heard that jobs will be re-graded which could mean more pay. What do you think your initial emotion would be? Once you found out more information would your emotions change? How long do you think this could take? What factors would determine the length of time experiencing each emotion? Is acceptance always a happy state? What do you feel would make the process more emotionally acceptable? Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Suggestions Apply the Kubler-Ross model to each stage of emotion (Cameron and Green, 2024, page 23). Consider how communication from management can minimize the negative stages of the model. Does more information help? https://cleverism.com/understanding-kubler-ross-change-curve/ What information would prevent exaggerating the depression stage? Attributes of good information – Accurate, Reliable, Relevant, Up-to-Date Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Discussion Activity –Humanistic Psychology Approach This approach is about development, growth, working together and reducing resistance. Consider… In the local GP practice, the diary system for booking appointments is going to be replaced by a computerized booking system. The receptionist has worked in the practice for over 20 years and has a wealth of experience but is also anxious about the change. How can application of Lewin’s three step change model help the change process? Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Health and well-being at work and developing resilience What factors make for a healthy working environment? What additional interventions might be necessary in times of change? If you were to encourage employees to develop their own resilience what could be done to support them in this? Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Suggestions Consider management interventions through the change process (Cameron and Green, 2024, 51). Consider staff involvement at each stage of Lewin’s three stage change model Unfreeze stage –provide information so that staff understand the need for the change. Change/New concepts – Help staff to see the current issues and end of the old ways. Reduce fear of temporary incompetence by training and reassurance. Allow staff to work through the problems and identify the issues and possible solutions. Refreeze – allow staff to agree the revised processes and new ways of working. Allow for reflection and learning. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  The Group Dynamics school The rationale for this school is that because people in organisations work in groups, individual behaviour must be seen, modified or changed in the light of groups’ prevailing practices and norms. They argue that group behaviour is an intricate set of symbolic interactions and forces that not only affect group structures, but also modify individual behaviour. The focus of change must be at the group level and should concentrate on influencing and changing the group’s norms, roles and values. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  The Open Systems school (1 of 2) Open Systems school does not just see organisations as systems in isolation; instead it views them as ‘open’ systems. It sees them as open in two respects: Firstly, they are open to, and interact with, their external environment. Secondly, they are open internally: the various sub-systems interact with each other. Therefore, internal changes in one area affect other areas, and in turn have an impact on the external environment, and vice versa. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  The Open Systems school (2 of 2) In terms of change, the emphasis is on achieving overall synergy, rather than on optimising the performance of any one individual part per se. As Fernandez and Rainey (2006: 173) state: ‘Managerial leaders must develop an integrative, comprehensive approach to change that achieves subsystem congruence’. Miller (1967) argues that there are four principal organisational sub- systems: The organisational goals and values sub-system The technical sub-system The psychosocial sub-system The managerial sub-system. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Should we focus on individual, group or system change? (1 of 2) Firstly, with the exception of the Behaviourists, these schools of thought stand, generally, in sharp contrast to the mechanistic approach of the Classical school towards organisations and people. Secondly, the three theoretical perspectives focus on different types of change. Thirdly, though each school can be seen as an independent and distinct approach to change, they are not necessarily in conflict or competition. Indeed, it could well be argued that they are complementary approaches. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Should we focus on individual, group or system change? (2 of 2) Lastly, change at one level or in one area should take into account the effect it will have elsewhere in the organisation. However, whatever the perspective adopted it is fundamentally the behaviour of individuals and groups that is being changed. As Schein (1988: 12) observed: ‘all organizational problems are fundamentally problems involving human interactions and processes’. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Resistance, commitment and readiness Peiperi (2005: 348) defines resistance as: ‘… active or passive responses on the part of a person or group that militate against a particular change, a program of changes, or change in general’. Consequently, it is argued that for change to be successful, change agents have to anticipate and overcome employee resistance. However, Stickland (1998): ─ identifies a number of different forms of resistance, including situations where resistance plays a constructive role in the change process. ─ does not see resistance as arising from employees, but from conflicting or incompatible objectives within the organisation, i.e. he sees resistance as product of the system and not of the individuals who make up the system. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Four theories of resistance Theory 1 – Cognitive dissonance Theory 2 – The depth of intervention Theory 3 – The psychological contract Theory 4 – Dispositional resistance. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  1. Cognitive dissonance Any gap between beliefs and actions causes stress. The greater the gap the greater the stress. Stress is resolved by changing or modifying the actions or the beliefs (or both). Change to beliefs will only occur if the person can exercise free will. Fundamental changes to beliefs may only be possible through counselling and therapy. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  2. The depth of intervention (1 of 2) The psychological impact of change depends on the ‘depth’ of the intervention. These range from: Shallow Deep Deeper Deepest. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  2. The depth of intervention (2 of 2) The shallow level Changes in structure. The deep level Job Design Role analysis. The deeper level Examinations of personality and relationships Conflict resolution. The deepest level Fundamental aspects of an individual’s personality Life and career planning. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  3. The psychological contract (1 of 4) ‘... there is an unwritten set of expectations operating at all times between every member of an the organization and the various managers and others in the organization....’ (Schein, 1988: 22–3) Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  3. The psychological contract (2 of 4) Both sets of expectations change: Over time As the context changes. Conflict occurs when either party feels the contract has been violated. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  3. The psychological contract (3 of 4) What individuals expect of organisations: Pay Benefits Privileges Guarantees Fairness Respect Treated as an adult Opportunities Fulfilling work. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  3. The psychological contract (4 of 4) What organisations expect of individuals: Enhance its image Be motivated Do their best Confidentiality Make sacrifices Loyalty. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  4. Dispositional resistance (1 of 2) Oreg’s (2003) research showed that individuals varied in the degree to which they were psychologically ‘disposed’ to accept or resist change. Oreg constructed a resistance to change (RTC) scale to measure ‘an individual’s tendency to resist or avoid making changes’ (Oreg, 2003: 680). Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  4. Dispositional resistance (2 of 2) The RTC is designed to measure the personality factors that Oreg identified as influencing resistance to change. These are: ‒ routine-seeking; ‒ emotional reaction to imposed change; ‒ cognitive rigidity; and ‒ short-term focus. Oreg also found that an individual’s reaction to change can be moderated by whether they have a positive or negative view of the change agent. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  How people react to change Summary: An individual’s reaction to any change will depend upon: The type of change How it is managed Their level of their dispositional resistance The level of dissonance – how it affects them The degree of free will The psychological depth The psychological contract. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Four theories of resistance Taken together the four theories show that: Resistance to change is not uniform amongst human beings; instead, it varies according to a person’s level of dispositional resistance. An individual’s level of dispositional resistance does not necessarily predict their actual level of resistance to any particular change initiative. Instead, it will be moderated by the context and the nature of the change. Research shows that employee involvement allied to a participative style of leadership are essential for successful change (Oreg et al, 2011). However, this general rule of involvement has to take account of the context of the change situation and the type of change being proposed. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Readiness for change Armenakis et al (1993: 681) define readiness as: ‘[an individual’s] beliefs, attitudes, and intentions regarding the extent to which changes are needed and the organization’s capacity to successfully undertake those changes’. Creating a readiness for change involves: effective leadership and a good relationship between managers and employees; organisational commitment; a positive communication climate; a coherent change strategy that is aligned with the organisation’s cultural values and communicated to and debated with those involved; the organisation having the resources necessary to implement the change; a high level of employee participation in change; and the availability of change agents with the necessary change skills. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Caldwell’s models of change agent Source: Caldwell (2003). Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  The frequency and magnitude of organisational change There are three main theories: The incremental model of change The punctuated equilibrium model of organisational transformation The continuous transformation model of change. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  The incremental model of change (1 of 2) This argues that individual parts of an organisation deal incrementally and separately with one problem and one goal at a time. By managers responding to pressures in their local internal and external environments in this way, over time, their organisations become transformed, hopefully for the better. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  The incremental model of change (2 of 2) Miller and Friesen (1984: 222) explain that: ‘The incrementalist perspective on change has been around a relatively, long time. It stems from the work of Lindblom (1959) and Cyert and March (1963), and was further developed by Hedberg et al (1976) and especially Quinn (1980b and 1982). Quinn argues that strategic change is best viewed as ‘muddling through with purpose,’ using a continuous, evolving and consensus building approach’. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Figure 1.1 Incremental change Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  The punctuated equilibrium model of organisational transformation ‘[This] depicts organizations as evolving through relatively long periods of stability (equilibrium periods) in their basic patterns of activity that are punctuated by relatively short bursts of fundamental change (revolutionary periods). Revolutionary periods substantively disrupt established activity patterns and install the basis for new equilibrium periods’. (Romanelli and Tushman, 1994: 1141) Orlikowski (1996: 64) notes that: ‘Punctuated discontinuities are typically triggered by modifications in environmental or internal conditions, for example, new technology, process redesign, or industry deregulation’. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Figure 1.2 Punctuated equilibrium Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  The continuous transformation model of change Weick and Quinn (1999: 366) argue that: ‘Change is a pattern of endless modifications in work processes and social practice. It is driven by organizational instability and alert reactions to daily contingencies. Numerous small accommodations accumulate and amplify’. Brown and Eisenhardt (1997: 1) maintain that: ‘For firms such as Intel, Wal-Mart, 3M, Hewlett-Packard and Gillette, the ability to change rapidly and continuously, especially by developing new products, is not only a core competence, it is also at the heart of their cultures. For these firms, change is not the rare, episodic phenomenon described by the punctuated equilibrium model but, rather, it is endemic to the way these organizations compete. Moreover, in high-velocity industries with short product cycles and rapidly-shifting competitive landscapes, the ability to engage in rapid and relentless continuous change is a crucial capability for survival’. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024 Figure 1.3 Continuous change Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  The frequency and magnitude of organisational change (1 of 2) In examining these three perspectives on change, we can see arguments for the incremental model, arguments for the punctuated model and arguments for the continuous change model. We can also see arguments against all three. The extent that they can claim to be universal theories which cover all organisations and situations, they all appear to be wrong. However, they do appear to offer a good explanation for the behaviour of some organisations and for some situations. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  The frequency and magnitude of organisational change (2 of 2) Therefore, what we appear to have is not three universal theories, but three situational or contingency theories which apply to different organisations in different situations at different times. The implications of this for managing change are: ‒ Firstly, organisations have to identify their situation. ‒ Secondly, they then have to make choices as to how to respond to it. Though many organisations react to events or seek to fit themselves to their situation, it is clear that some organisations and leaders seek to shape their situation to fit how they want to operate, whether that be in an incremental, punctuated or continuous change mould. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Five fundamental questions (1 of 4) 1. Why do we want to change? Organisations change in order to become more effective at achieving their goals. Effectiveness is derived from factors such as processes, people and organisational culture. 2. Should we focus on individual, group or system change? Organisations are social and technical systems which require individuals and groups to work together effectively if the system is to achieve its goals. Depending on the situation, the main focus of change will be at the individual, group or system level, though these levels cannot be in in isolation from each other. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Five fundamental questions (2 of 4) 3.Will there be resistance and, if so, where from? How can we gain employee commitment? Are we ready for change? Resistance does not result from employees’ innate aversion to change per se, but from the nature of the change and the way the organisation manages it, which can give rise to incompatible forces within the system. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Five fundamental questions (3 of 4) 4.Who will manage the change process? Do they have the appropriate skills? The answer to both questions is that it depends on the situation: Incremental changes which are wholly within one area might best be dealt with by the manager/supervisor in that area. Initiatives which span more than one area and are of a more complex nature might require a specialist change agent. In both cases, though, it depends on the skills of the person leading the change process. Some managers may be very experienced at managing change, whilst some change agents may be limited in the range of change situations they can manage. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Five fundamental questions (4 of 4) 5.What are the frequency and magnitude of the changes required in order for us to survive? For some organisations, incremental and infrequent adjustments to their activities will be sufficient for them to remain in business. For others, anything but frequent and large-scale change will result in their being overtaken by competitors and put out of business. However, organisations do not just adapt to their environment, they can also shape it by exercising choice in terms of markets, products and other key pressures. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Summary Leaning to do something new usually involves a temporary dip in performance. When learning something new, we focus on it and become very conscious of our performance. Once we have learnt something we become far less conscious of our performance. We are then unconsciously competent. This continues until something goes wrong, or there is a new change. The four key schools of thought help us to understand individual change. Maintaining the health and well-being of employees during change is increasingly recognized as a key component of any change plan. Personality type has a significant effect on an individual's ability to initiative or adapt to change. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024  Reading Chapter 1 from Cameron et al., 2024; Chapter 1 in Hayes, 2022; Chapter 1 in Kotter et al., 2021 Black, J. S. (2014) It Starts with One: Changing Individuals Changes Organizations. 3rd edition. New Jersey: Pearson Education, Inc. Copyright © 2017, 2015, 2010 Pearson Education, Inc. All Rights Reserved ©copyright, Heriot-Watt University, 2024