UAPI 1054 Industrial and Organizational Psychology Chapter 12 PDF

UAPI 1054 INDUSTRIAL AND ORGANIZATIONAL PSYCHOLOGY CHAPTER 12: ORGANIZATIONAL DEVELOPMENT TOPICS: Managing Changes Empowerment Downsizing Ethics in Change Management MANAGING CHANGE  In organizations, change occurs for many reasons:...

UAPI 1054 INDUSTRIAL AND ORGANIZATIONAL PSYCHOLOGY CHAPTER 12: ORGANIZATIONAL DEVELOPMENT TOPICS: Managing Changes Empowerment Downsizing Ethics in Change Management MANAGING CHANGE  In organizations, change occurs for many reasons: introduction of downsizing reorganization teams new government new leadership regulations  SACRED COW HUNTS  The first step in organizational change, in which employees look for practices and policies that waste time and are counterproductive.  common types of sacred cows include: Type Description The Paper Cow unnecessary paperwork—usually forms and reports that cost organizations money to prepare, distribute, and read. review all forms and reports and determine whether they are still needed and, if they are, whether they are needed in their current format. The Meeting Cow number and length of meetings Was the meeting really necessary? To reduce the number and length of meetings, some organizations ask the person calling the meeting to determine the cost of the meeting The Speed Cow Unnecessary deadlines are another source for potential change. Requiring work to be done “by tomorrow” is sometimes necessary. However, unnecessary deadlines cause employees to work at a faster than optimal pace, resulting in decreased quality, increased stress, and increased health problems. EMPLOYEE ACCEPTANCE OF CHANGE STAGES Stage : Denial employees deny that any create reasons why the try to convince themselves changes will actually take proposed changes will that the old way is working, place, never work Stage 2: Défense When begin to believe that try to justify their positions become defensive change will actually occur and ways of doing things. EMPLOYEE ACCEPTANCE OF CHANGE STAGES Stage 3: Discarding the best interest of the employees begin to realize and start to accept the employee to discard the that change is inevitable change as the new reality. old ways Stage 4: Adaptation learn how it functions, employees test the new can often become make and adjustments in system frustrated and angry. the way they perform. EMPLOYEE ACCEPTANCE OF CHANGE STAGES Stage 5 : Internalization employees have become have accepted their new comfortable with the new immersed in the new coworkers and work system and culture environment. IMPORTANT FACTORS The extent to which employees readily accept and handle change is dependent on: The type of The reason The person change behind making The person being changed IMPORTANT FACTORS  1.The type of change  Can be distinguished two types of change: evolutionary and revolutionary.  Evolutionary - that is the continual process of upgrading or improving processes; for example, the unpopular changes from Windows XP to Vista  Revolutionary change as a “real jolt to the system” that drastically changes the way things are done. Examples might include developing a brand-new product line that requires a vastly different skill set, or completely changing the organizational structure that causes an organization to completely change its ethical policies and behavior.  Clearly, revolutionary change is more difficult than is evolutionary change. IMPORTANT FACTORS  2.The reason behind the change  Employee acceptance of change is often a function of the reason behind the change.  For example, employees understand (but don’t necessarily like) change that is due to financial problems, external mandates, or attempts to improve the organization.  Employees are least likely to accept change if they don’t understand or were not told the reasons behind the change. IMPORTANT FACTORS  3.The person making  Changes proposed by leaders who are well liked and respected and who have a history of success are more likely to be accepted  employees quickly accepted change because they trusted the person making the change.  the employees did not accept the change because the decision makers were not well respected and acted in a manner inconsistent  IMPORTANT FACTORS  4.The person being changed  It varies depend on: Type Description Change agents who enjoy change and often make changes just for the sake of it. motto best be expressed as “If it ain’t broke, break it.” Though many people like to call themselves change agents, it may not be such a compliment. That is, reasoned change is good, but change for the sake of change is disruptive. Change analyst A person who is not afraid of change but makes changes only when there is a compelling reason to do so. Their motto might be “If it ain’t broke, leave it alone; if it’s broke, fix it.” who constantly ask such questions as “Why are we doing this?” and “Is there a better way we could be doing this?”  IMPORTANT FACTORS  4.The person being changed  It varies depend on: Type Description Receptive are people who probably will not instigate change but are willing to change. changers Their motto is “If it’s broke, I’ll help fix it.” Receptive changers typically have high self-esteem and optimistic personalities and believe they have control over their own lives. Reluctant will certainly not instigate or welcome change, but they will change if necessary. changers Their motto is “Are you sure it’s broken?” Change resisters Hate change, are scared by it, and will do anything they can to keep change from occurring. Their motto is “It may be broken, but it’s still better than the unknown.” FACTORS TO BE CONSIDERED WHILE IMPLEMENTING CHANGE Creating an Communicating Atmosphere for Time Frame Details Change Training Needs FACTORS TO BE CONSIDERED WHILE IMPLEMENTING CHANGE  1. Creating an Atmosphere for Change  This process begins by creating dissatisfaction with the current system.  Employees should be surveyed to determine how satisfied they are with the current system.  The survey will indicate that many employees are unhappy with the way things are currently done and have suggestions for improvement.  By sharing these results with employees, an organization can protect itself from employees reacting to change by remembering the “good old days.”  Instead, they will focus on the “bad old days” and be more willing to change. FACTORS TO BE CONSIDERED WHILE IMPLEMENTING CHANGE  2. Communicating details  Employees are most responsive to change when they are kept well informed.  The employees who were given the responsibility for communicating the change need training in dealing with employee hostility and resistance.  Two-way communication is essential. Employees must have the opportunity to provide feedback to the people making the changes.  Honesty is the best policy. Be honest with employees and tell them information as it arises rather than waiting until all aspects of the change are completed. FACTORS TO BE CONSIDERED WHILE IMPLEMENTING CHANGE  3.Time Frame  The longer it takes to change, the greater the opportunity for things to go wrong and the greater the chance that employees will become disillusioned.  Many consultants advise that organizations should not remain in a “change mode” for longer than two years. FACTORS TO BE CONSIDERED WHILE IMPLEMENTING CHANGE  4.Training Needs  After an organization has made a major change, it is often necessary to train employees.  For example, if an organization changes to a new computer system, all employees will need to be trained in the use of the new system.  Likewise, if an organization is changing to a self-directed team environment, employees will need to be trained in such areas as goal setting, teamwork, presentation skills, and quality analysis. QUESTION? EMPOWERMENT  Many employees are more satisfied with their jobs if they feel they have some control over what they do.  As a result, many organizations are “empowering” employees to participate in and make decisions. The Vroom–Yetton Decision-Making Flowchart FACTORS IN MAKING THE DECISION TO EMPOWER Leader Importance of Importance of knowledge if Structure of decision decision the problem the problem quality acceptance area Probability of Subordinate Probability of decision trust and subordinate acceptance motivation conflict FACTORS IN MAKING THE DECISION TO EMPOWER  1. Importance of decision quality  Whether one decision will be better than another?  For example, if a supervisor is trying to decide whether to sign a letter with blue ink or black ink, his decision probably will not make any difference to the organization.  Thus, the importance of the decision quality is low, and little time or effort should be spent making it. FACTORS IN MAKING THE DECISION TO EMPOWER  2. Leader knowledge if the problem area  Which leaders have sufficient information to make the decision alone?  If leaders lack sufficient knowledge to make a decision, consultation is essential.  For example, it would be difficult for managers to select a benefit package without first asking their employees about the types of benefits they need. FACTORS IN MAKING THE DECISION TO EMPOWER  3. Structure of the problem  Which a leader knows what information is needed and how it can be obtained— that is, the problem’s structure.  If the leader does not know how to obtain this information, the decision-making process will require other people, and the decision will take longer to reach. FACTORS IN MAKING THE DECISION TO EMPOWER  4. Importance of decision acceptance  The degree to which it is important that the decision be accepted by others?  For example, for a supervisor to decide what hours each employee will work, it is important that theemployees agree with and have input into the decision-making process.  However, if the supervisor is deciding what he wants for lunch, whether others agree with or have input into the decision is not important (unless, of course, the choices involve onions or garlic). FACTORS IN MAKING THE DECISION TO EMPOWER  5. Probability of decision acceptance  If the leader feels that he can make the decision himself but that acceptance of the decision is important, he must determine whether his subordinates will accept it.  If the leader is popular and viewed as being competent, his subordinates will probably accept and follow the decision.  But if the leader is not popular, powerful, and competent, he will probably want help from his subordinates and colleagues in making the decision, even though he has the ability to make the decision himself.  This is why leaders often ask subordinates and colleagues for their opinions. FACTORS IN MAKING THE DECISION TO EMPOWER  6. Subordinate trust and motivation  Which subordinates are motivated to achieve the organizational goals and thus can be trusted to make decisions that will help the organization.  For example, suppose a marketing survey indicates that a bank will attract more customers if it is open on Saturdays.  If the branch manager allows his employees to decide whether the branch should be open on Saturdays, can he trust the employees to make the decision on the basis of what is best for the bank and its customers rather than what is best for the employees?  If the answer is no, the branch manager will need to make the unpopular decision after receiving input from his subordinates. FACTORS IN MAKING THE DECISION TO EMPOWER  7. Probability of subordinate conflict  the amount of conflict that is likely among the subordinates when various solutions to the problem are considered.  If there are many possible solutions and the employees are likely to disagree about which is best, the leader will be best served by gathering information from employees and then, as in the previous situation, making the decision herself. DECISION-MAKING STRATEGIES USING THE VROOM–YETTON MODEL use the available information to make the decision without consulting their subordinates. Autocratic 1 strategy an effective strategy when the leader has the necessary information and when acceptance by the group either is not important or is likely to occur regardless of the decision. obtain the necessary information from their subordinates and then make their own decisions. Autocratic II Strategy to obtain information they need to make a decision even though acceptance of the solution by the group is not important. share the problem on an individual basis with some subordinates. makes a decision that may or may not be consistent with the Consultative I Strategy thinking of the group. Useful and important for the group to accept the decision but group members may not agree DECISION-MAKING STRATEGIES USING THE VROOM–YETTON MODEL share the problems with their subordinates as a group. the leader makes a decision that may or may not be acceptable to the group. Consultative II Strategy used when acceptance of the decision by the group is important and when the individual group members are likely to agree with one another about the best solution. the leader shares the problem with the group and lets the group reach a solution. The role of the leader is merely to assist in the decision making Group I Strategy process. is effective when group acceptance of the decision is important and when the group can be trusted to arrive at a decision that is consistent with the goals of the organization. LEVELS OF EMPLOYEE INPUT CONSEQUENCES TO EMPOWERMENT 1. Increased job satisfaction for most 2. Stress Personal a. Decreased stress due to greater control b. Increased stress due to greater responsibility 1. Bonuses Financial 2. Pay increases 1. Increased job security 2. Promotions Career 3. Increased marketability 4. Increased chance of being terminated FLEXIBLE WORK ARRANGEMENTS QUESTION? STRATEGIES OF FLEXIBLE WORK ARRANGEMENTS  Interventions involving flexible work arrangements typically follow one of four strategies: Full-Time Work, Compressed Reducing Work Flexible Hours Workweeks Hours Working from Home STRATEGY 1: FULL-TIME WORK, FLEXIBLE HOURS  Flextime - A work schedule that allows employees to choose their own work hours.  52% of U.S. organizations provide flextime  In the United Kingdom, employees with children under 6 or a disabled child under the age of 18 have the legal right to request flexible work hours  Flextime can be arranged in many ways, but all share the same three basic components:  bandwidth,  core hours, and  flexible hours. STRATEGY 1: FULL-TIME WORK, FLEXIBLE HOURS  Bandwidth is the total number of potential hours available for work each day.  For example, employees can work their 8 hours anytime in the 12-hour bandwidth between 6:00 a.m. and 6:00 p.m.  For example: Start at 6:30am -3:30pm or 10 am – 6pm  Core hours are those that everyone must work and typically consist of the hours during which an organization is busiest with its outside contacts. STRATEGY 1: FULL-TIME WORK, FLEXIBLE HOURS  Flexible hours are those that remain in the bandwidth and in which the employee has a choice of working.  For example, if the bandwidth is the 12-hour period from 6:00 a.m. to 6:00 p.m. and the core hours are from 11:00 a.m. to 1:00 a.m., then the employee can schedule the remaining 6 hours (including lunch hour) anywhere from 6:00 a.m. to 10:00 a.m. and from 2:00 p.m. to 6:00 p.m STRATEGY 1: FULL-TIME WORK, FLEXIBLE HOURS  Gliding time - A flextime schedule in which employees can choose their own hours without any advance notice or scheduling.  Employees can come and go as they please as long as they work 8 hours each day and 40 hours each week. STRATEGY 2: COMPRESSED WORKWEEKS  Work schedules in which 40 hours are worked in less than the traditional five-day workweek.  Usually involve either 10 hours a day for four days or 12 hours a day for three days.  Employees get more vacation days, have more time to spend with their families, have increased opportunities to moonlight, and have reduced commuting costs and times.  Furthermore, if parents have different compressed schedules, childcare costs are greatly reduced.  changing from an 8- to a 12-hour shift reported higher satisfaction, improved sleep, and no negative health or performance changes. STRATEGY 3: REDUCING WORK HOURS  Peak-Time Pay -certain employees are encouraged to work only part time but are paid at a higher hourly rate for those hours than employees who work full time.  Job Sharing -A work schedule in which two employees share one job by splitting the work hours. Rather than one person working 40 hours each week, two employees combine their hours so that they total 40. STRATEGY 4: WORKING FROM HOME  Working at home rather than at the office by communicating with managers and coworkers via phone, computer, fax machine, and other off-site media.  Benefits: less work–family conflict, better relationships with their supervisor, higher job satisfaction, less role stress, lower intention to turnover, and higher performance levels.  Disadvantages:  difficult for a union to organize workers when they are scattered around many locations.  difficult for the government to enforce safety and fair treatment standards when employees are not in a central location.  employees cannot be easily supervised when they work at home.  difficult to disassociate work from home life. QUESTION? DOWNSIZING  When organizations restructure, the result is often a decrease in the size of their workforce REDUCING THE IMPACT OF DOWNSIZING Selecting the Signs of Problems Employees to Be Laid Off Outplacement The Announcement Programs REDUCING THE IMPACT OF DOWNSIZING  1. Signs of Problems  freeze the hiring of new permanent employees or fill vacancies with temporary employees  Outsourcing—using outside vendors to provide services previously performed internally. For example, hire an outside vendor to manage their data-processing system  encourage employees to change careers and then help these employees learn the skills needed to make the career change.  offer early retirement packages.  take pay cuts or defer salary increases.  adjusting work schedules. For exp: restricting overtime, implementing job sharing, encouraging employees to work at home, implementing payless holidays or a shortened workweek, and reducing their employees’ pay. REDUCING THE IMPACT OF DOWNSIZING  2. Selecting the Employees to Be Laid Off  Choose which employees will leave the organization.  Criteria used to make this decision might include seniority, performance, salary level, and organizational need.  To reduce the chances of legal problems, the committee deciding which employees will leave should be diverse in terms of race, sex, and age REDUCING THE IMPACT OF DOWNSIZING  3.The Announcement  Some organizations opt for a general announcement, whereas others prefer that supervisors notify their employees on a one-to-one basis.  Employees need answers to questions like these:  Why are the layoffs needed?  Isn’t there any alternative?  When will the layoffs take place?  Who will be laid off?  What type of financial assistance will be available?  Will we get help writing our résumés?  How will this affect my pension?  When answers to employees’ questions are not available, employees become anxious, angry, and resentful and tend to develop their own answers (rumors). REDUCING THE IMPACT OF DOWNSIZING  4. Outplacement Programs  To help layoff victims move on with their lives, many organizations have some type of outplacement program.These programs typically include: career assessment and emotional counseling financial counseling guidance REDUCING THE IMPACT OF DOWNSIZING  4. Outplacement Programs  A) Emotional counseling  After receiving word of being laid off, employees go through four stages that are similar to the stages of change: Stage Description Denial employees deny that a layoff will actually occur. They make statements like “I’m sure the company will come to its senses,” “There is no way they will actually lay off a person with my seniority,” and “This can’t be happening.” this stage will last a few hours Anger employees realize that they will be losing their jobs, and they become angry at the organization, their supervisors, and even their coworkers, especially those who will not be losing their jobs Fear employees start to worry about how they are going to pay bills, feed their families, and find new jobs. Acceptance accept that the layoff will occur and are now ready to take steps to secure their future. REDUCING THE IMPACT OF DOWNSIZING  4. Outplacement Programs  B) Financial counseling  Employees are under tremendous stress as they worry about how to make their rent, mortgage, and loan payments and how to pay for utilities, insurance, food, tuition, and medical and dental costs.  Most banks and credit unions have certified financial counselors who are well trained in helping people with these concerns. REDUCING THE IMPACT OF DOWNSIZING  4. Outplacement Programs  C) career assessment and guidance  workshops are conducted on such topics as understanding the job market, finding potential job openings, writing résumés, performing well in the employment interview, and making decisions about job offers. EFFECTS OF DOWNSIZING Victims Employees who lose their jobs due to a layoff. Survivors Employees who retain their jobs following a downsizing.  Victims of downsizing report: headaches, stomach upsets, sleeping problems, cholesterol levels, Physically physical illness, hospitalization rates, heart trouble, hypertension, ulcers, vision problems, and shortness of breath. stress, increased drug and alcohol abuse, more marital problems, and Emotionally feelings of depression, unhappiness, anger, frustration, and dissatisfaction with life. reluctant to share their feelings with friends, avoid family and friends Socially due to feelings of embarrassment and shame, and avoid social situations and entertainment requiring money. EFFECTS OF DOWNSIZING  To reduce the effects of downsizing, Beyer and colleagues (1993) have this advice for layoff victims:  1. Immediately tell families.  2. Evaluate the reasons for the job loss. That is, was the loss inevitable due to problems with the organization, or could better performance, more current skills, or a better attitude have allowed the employee to keep his job?  3. Deal with the emotions that accompany a layoff (e.g., anger, disbelief, guilt, shame) and get help if necessary.  4. Prepare for departure by doing such things as securing references, negotiating a severance package, and taking advantage of outplacement opportunities.  5.Take a vacation or a short rest period to help prepare for the journey ahead.  6. Plan a new course of action and go forward with confidence. EFFECTS OF DOWNSIZING  Survivors also suffer psychological trauma:  become afraid of taking risks and are more apprehensive and narrow-minded;  are more stressed, anxious, secretive, skeptical, cynical, and distrustful;  have greater role conflict and ambiguity;  lose confidence in themselves and in management;  have lower levels of morale and job satisfaction; and  feel a loss of control  It is important that the organization talk positively about the layoff victims, keep an open two-way communication policy with survivors, and communicate the company vision to the survivors.  To reduce the negative effects on survivors, organizations must ensure that the procedure used to determine layoffs is fair and clearly communicated to both victims and survivors QUESTION? THANK YOU