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Module: Organizational Behavior

Introduction

“Everybody has accepted by now that change is unavoidable. But that still implies that
change is like death and taxes-it should be postponed as long as possible and no
change would be vastly preferable. But in a period of upheaval, such as the one we are
living in change is the norm.”

Peter Drucker (1999)

Organizational Behavior is the study and application of knowledge about individuals and
groups act in organizations. Its purpose is to build better relationships by achieving
human, organizational and social objectives. Organizational behavior involves why we
do things and how it affects others. Organizational behavior comprises a wide range of
topics such as change, which would be examined in this context.

“Organization development is a collection of planned change interventions, built on

humanistic-democratic values that seek to improve organizational effectiveness and
employee well-being.”(Organizational Behavior (Robbins,Judge,13 th edition p 662)

Change management is an aspect of management focusing on ensuring that the firm

responds to the environment in which it operates. Change involves thoughtful planning,
sensitive implementation and most important communication with those affected by the
change. It is necessary to develop strategies to implement change, for the
establishment of greater alternatives. However, proposals to resistance occur with the
implementation of change resulting in dissatisfaction. Change may arise from the
development of new products or competition, changes in cultural, political, economical,
legal and social framework. In particular change in Technology is used in this context.

San Fernando City Corporation was established and has been in operation for over
Twenty Five years. It is managed by the Government of Trinidad and Tobago and
comprises of more than sixty employees within the accounts department. The
organization was not operating on any major computer related activites; it was mainly a
manual system. However with changing technology it was planned that the
implementation of accounting software, Peachtree be introduced to the finance
department. It was decided by the City Treasurer, that the Finance department needed
a proactive change.

How well the implementation of an accounting software package in the finance

department at San Fernando City Corporation performs is not simply a function of

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managing change but a matter of how well it can manage both short term and long term
changes.

What are the major issues involved with change management?

Described later in context will emphasize managing change issues and challenges
encountered in organizations today.

Research Objectives

 To examine the effects of change on employee performance.

 To assess the communication strategies used in managing change.

 To study the barriers to change management.

 To critically examine the change agent used in leading change management.

 To determine the training strategies used in the resistance to change.

Research Significance

On completion of this analysis, the intention would be that employees and management
after reading the evaluations would improve performance, strengthen communication
strategies and enhance ways to overcome resistance to change.

Methodology

Methodology may be described as a process or procedures which may include theories

or concepts as they relate to a particular discipline of inquiry.

The methodology used to compose this assignment was the secondary documents of
the company. Also, being an employee of the organization, in the accounts department I
am a participant observer and have also been impacted on the strategies used to
implement the change. In addition, the assignment is based on theories and concepts to
further understand the process for change.

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Literature Review

The literature review aims to identify effective change management including theoretical
contributions in aspect of a particular topic. Change management is viewed differently in
literatures. The process is to start at whatever stage the individual is at and not to
expect them to be as ready as you are to have them change.

How does successful change happen? There is no right or wrong theory to change
management. Discussed below are some theorists views on successful change.

(Kurt Lewin 1951) framework portrays change as a dynamic forces in which

individuals have to progress through three stages; unfreezing, which recognized the
need for change; changing, which means overcoming and reducing the “force of
resistance” and utilizing and strengthening ‘drive forces’, and refreezing, which means
habituating the change. Therefore these forces can help shift the balance in the
direction of planned change. This model attempts to analyze forces that impact
changes.

The change process

Figure 1:

UNFREEZE CHANGE REFREEZE

Source: based on Lewin, K., (1947, 1951) as above.

The three step model gives an idea of what implementing change means when dealing
with people. The manager will initiate new processes but change will only be effective if
the people involved help to put it into practice. The unfreeze stage signifies the exiting
status or equilibrium stage .It involves getting people to change perspective, dismiss
bad habits and indentify new ways of meeting objectives. It states that current practices

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have to be differed in order to get the change in motion. The second step in Lewin’s
force field model is change which signifies the implementation stage and moving to new
level of equilibrium.. Once employees accept change which may mean new tasks and
responsibility given, change can start. Time is an important concept in effective change
management. Once change has been effective, the equilibrium should be stabilized,
therefore we should acquire some sort of cemented structure known in the lewin’s
model as the freeze stage. Lewins model is very realistic and goal oriented, however it
does not take into account personal factors that can affect change.

Kotter (1996) managing theory and practice sixth edition (p 219) established an
eight-stage process of creating major changes:

 Create a sense of urgency about the future

 Create a guiding coalition
 Develop a vision and a strategy for achieving it
 Communicate the challenge vision
 Empower broad- based action
 Generate some benefits in the short term – this will allow employees to see
improvements along the way to achieving the end objective.
 Consolidate change and produce more change
 Anchor new approaches.

It is vitally important to pay proper attention to the eight steps mentioned above to
create successful change. This process seeks to achieve a revolution in the way an
organization is led and managed and takes time.

Alternatively Schein (1999) also established an eight step approach to ease the
individual into learning that it is necessary for change to occur.

(Schein (1999) eight step model to implementing change)

 Build a compelling vision of what the future might be if change were to occur.

 Formal training in the learning competencies that are deficient.

 Personal control over the learning process by the learner. This involves determining the
learning objectives, method of learning and the pace at which learning progresses.

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 The training or learning agenda should be focused on the entire group of the individuals
who may be involved.

 Training resources and safe harbors are necessary to not only permit the trial-and-error
that frequently occurs in learning, but the freedom to risk making mistakes.

 Positive role models are necessary to support observational learning.

 Support groups or communities of practices can be established to provide both group

support for making changes and group learning experiences.

 Rewards and organizational structures that are aligned to the desired state. This is very
broad and covers many ways change might be encouraged and barriers to change
eliminated.

In Schein’s model there is a major component of planning that is required. As we can

observe from theories mention so far, invention strategies differ from author to author
but involve similar elements as proven in literature.

Change Agent

Lippitt, Watson and Westly (1958) extend Lewin’s Three Step change Theory. Lippitt,
Watson and Westly created a seven step theory that focuses more on the role and
responsibility of the change agent than on the evolution of change itself. The seven
steps are listed below:

 Diagnose the problem

 Assess the motivation and capacity for change
 Assess the resources and motivation of the change agent
 Choose progressive change objects
 Roles of change agent should be clear and understood by all employees
involved.
 Maintain the change
 Gradually terminate from the helping relationship.

This theory mainly focused on the change agent rather than change itself.

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Employee Performance

“Winners must learn to relish change with the same enthusiasm and energy that we
have resisted in the past.”

Tom Peters

Socio-Technical Approach (Graetz et al ,2002,p 100) identified the semi-autonomous

workgroup as the foundation of any organization and conceding that it was better suited
to the demands of business ,it was less considerate to the basic needs of employees for
example ,job satisfaction. This approach proposed that both technical and social
systems of work should be utilized in order for an organization to change.

Change therefore must be managed short term in a way that emphasizes the on going
long term objectives, while maintaining high performance. Change efforts in some way
should incorporate the ability to encourage innovation, knowledge sharing, develops
team working, and motivates employees.

When an organization issues a planned change, it tends to have a more focused

sequenced of planned actions. The organization should be more planned rather than
left to evolve on its own. (Beer and Nohria 2000).

When considering forces of change, certain elements other than planning are
acknowledged.firstly, the purpose for change must be considered, along with the
leadership style in change efforts. The motivation for change plays an important role as
well as the focus of change. (Beer and Nohria 2000).

Communication

Involvement in strategic decision making through workgroups and team involves some
degree of participation. Organizations that allow participative change strategies tend to
have high levels of involvement and communication from all levels regarding the change
process.(Dunphy 2000) states that factors in top-down management make enhancing
participation difficult.”Agreement for change decisions has to be negotiated amongst
partners. Similarly,Bennis(2000) believes “that successful change occurs in diverse
participants where leaders are listeners.

Therefore, a vital condition for participation is that the employees are well informed to
make contributions concerning the change process.

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Training

(Dunphy 2000) stated “as the knowledge and training increases the level of
participation also increases. It signifies if the employees are properly trained, the skilled
level and work forced is increased resulting in participation to change. The manager
therefore has a degree of responsibility to invest the skills of the employees and
influence participation towards change management.

Reed Gadner (1998) stated that the success of change is eighty percent dependent on
the development of the social and political interaction skills and twenty percent or less
on the implementation of the hardware and software technology.

Resistance to change management

Most employees need to be persuaded of the need to change. No organization uses all
strategies at the same time; a healthier approach is to focus on one until it becomes the
employee’s habits.

According to Kurt Lewin (1951) “An issue is held in balance by the interaction of two
opposing sets of forces”, he suggests that “all behavior is the result o fan equilibrium
between two sets of opposing forces. This is illustrated as the “force-field theory”.Lewin
viewed driving forces, those seeking to promote change and refraining forces, those
seeking to maintain the status quo. Lewin viewed organizations as systems in which the
present situation was not a static pattern, but a dynamic balance (“equilibrium”) of
forces working in opposite directions.

The force field diagram is a model built on this idea that forces – persons, habits,
customs, and attitudes – both drive and refrain change.

Figure 15: Lewin’s Force field Analysis

Cited Objective, goal, target, problem, need

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(Force favoring change) (Force resisting the change)

(Equilibrium or current status)

Source:
http://www.valuebasedmanagement.net/methods_lewin_force_field_analysis.html

In perspective of Folder & Skarlicki (1999) resistance is defined as “employee

behavior that seeks to challenge, disrupt, or invest prevailing assumptions discourses,
and power relation.” Zaltman & Duncan (1977) also define resistance as "any conduct
that serves to maintain the status quo in the face of pressure to alter the status quo"
(cited in Bradley, 2000, p. 76).

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According to Dent & Goldberg (1999), individuals are not really resisting the change,
but rather they may be resisting the loss of status, loss of pay, or loss of control. Bhutan
(2005) adds, “There is always the danger of identifying a symptom of resistance when
you are really looking for its cause. To diagnose the causes, we must understand a
person’s state of mind. The most important factors that go into a person’s state of mind
are his or her facts, belief, feeling, and values.

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Analysis

San Fernando City Corporation

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