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PSY 126 Week 12: Organizational Change & Culture

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PSY 126 Week 12: Organizational Change & Culture

  1. 1. Organizational Change & Culture Matthew L. Eisenhard, Psy.D. Week 12: Psychology for Business & Industry
  2. 2. Life is About Changes “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” ~Charles Darwin~ • Managing change is crucial to all elements of life and business. ▫ An organization’s (or a person’s) success or failure can depend on how well they adapt to change. ▫ Sounds easy, but it is not!  Example: Blockbuster Video.
  3. 3. Types of Change • Self-assessment 12.1 examines your openness to change. • Organizations are composed of four interactive variables – they are the types of changes. ▫ Technological. ▫ Structural. ▫ Task. ▫ People.
  4. 4. Technological Change • Machines ▫ Any new type of manufacturing equipment – especially computers. • Automation ▫ Simplification or reduction of human effort to do a job. ▫ Changes the types of jobs available. ▫ Increases the need for training and education for skilled workers – while need for unskilled jobs declines. • Process ▫ How a business changes raw material into finished goods, services, or information. ▫ Management information systems (MIS) = a formal system for getting, processing, and sending out information.
  5. 5. Structural Change • Structure of an organization means how it is designed. ▫ How departments are divided. ▫ The employee hierarchy. • Important to change the structure to go with technological changes.
  6. 6. Task Change • Tasks are the day-to-day things that people do to perform their jobs. ▫ As technology and structures change, so do people’s routine tasks. ▫ People’s skills must change – ongoing job training is necessary. ▫ Organizations need to be prepared to hire new employees with the necessary skills.
  7. 7. People Change • People are the most important resource in any organization. ▫ People create, manage, and use technology. ▫ The social changes that go along with the technical changes affect people the most.  Success depends on integrating people and technology – a sociotechnical system.
  8. 8. Stages in the Change Process • DENIAL ▫ “Oh that can’t be true!” – it affects others, but not me. • RESISTANCE ▫ Following the initial shock, reality hits, and the person resists the change. “No I won’t do it!” • EXPLORATION ▫ Once the changes are implemented, people start to understand it more and try to see how they fit into it. • COMMITMENT ▫ Once people are trained they will either embrace the change, move and grow with it – or continue to be resistant.
  9. 9. Resistance to Change • People resist change for a number of reasons. ▫ Want to maintain the status quo – like things the way they are. ▫ Fear the unknown – uncertainty makes us nervous. ▫ Anxiety about having to learn something new. ▫ Fear of losing their jobs, feel threatened, out of control of situation • INTENSITY: acceptance – tolerance – resistance – rejection. • SOURCES: facts – beliefs – values. • FOCUS: self – others – work environment.
  10. 10. Overcoming Resistance to Change
  11. 11. Types of Resisters • THE BLOCKER ▫ Refuses – ask what they want to do instead. • THE ROLLER ▫ Seems confused – be specific and detailed. • THE STALLER ▫ Puts you off, says “later” – ask why not now? • THE REVERSER ▫ Says “ok” but does not do it (passive-aggressive). ▫ If you like the change, why did you not do it like you said you would? • THE SIDESTEPPER ▫ Asks you to delegate it to someone else – say “no, I asked you because…”
  12. 12. Types of Resisters • THE THREATENER ▫ Complies but says others will not like it – tell them “let me worry about that part.” • THE POLITICIAN ▫ Tries to get out of it by saying you owe them something – say “ok, but I need this now.” • THE TRADITIONALIST ▫ That’s not the way we do things here! ▫ “Well we need to make an exception and do it this way now.” • THE ASSAULTER ▫ Gets verbally abusive – you can refuse to tolerate it or try to be empathetic.
  13. 13. Change Models
  14. 14. Lewin’s Change Model • Kurt Lewin – 1950s. • Three steps used to change people’s behavior, skills, and attitudes. ▫ UNFREEZING  Reducing forces that maintain the status quo. ▫ MOVING  Learning new desirable behaviors, skills, and attitudes. ▫ REFREEZING  Establishes the new status quo through positive reinforcement.
  15. 15. Lussier’s Change Model • Five steps to effective change. ▫ DEFINE the change.  Clearly define what it is and the systems effects it will generate. ▫ IDENTIFY possible resistance.  Be prepared for all the reasons people will resist. ▫ PLAN the change.  Make a clear and reasonable plan – set a timetable. ▫ IMPLEMENT it.  Give the facts – what effects it will have on the people.  Involve the employees – ownership helps get commitment.  Provide support – get input and help from employees – listen to their concerns – provide training. ▫ CONTROL it.  Follow-up to make sure it is working.  If not make corrections where necessary to attain the desired outcome.
  16. 16. Organizational Culture • Consists of the shared values and assumptions of how its members will behave. ▫ Success and shared experiences also shape culture. • Learned mostly by observing people and events in the organization. ▫ New people need to learn and become integrated into an organization’s culture to be a part of it.
  17. 17. Five Ways to Learn the Culture • HEROES ▫ Those who make outstanding contributions to the organization. • STORIES ▫ Often about the founders/heroes that make the organization special – public statements and speeches can also be stories. • SLOGANS ▫ The organization’s philosophy statement(s). • SYMBOLS ▫ Plaques – pins – jackets – caps – business cards – signage. • CEREMONIES ▫ Awards dinners for top performers, etc.
  18. 18. Important Definitions Related to Organizational Culture • Most effective organizational structure is STRONG and POSITIVE. ▫ Strong = have clear values that are shared to the extent of similar behavior. ▫ Positive = has norms that contribute to effective performance and productivity. ▫ Weak = no stated values and do not enforce behavior standards. ▫ Negative = experiences resistance and turmoil that hinders effective performance.
  19. 19. Organizational Climate • The relatively enduring quality of the internal environment of the organization as perceived by its members. • The employee’s perception of the atmosphere of the internal workings of the organization. ▫ Important because employees’ perceptions are the basis for their attitudes toward their jobs – and their attitudes influence their behavior.
  20. 20. Morale • Is a state of mind based on attitudes and satisfaction with the organization. ▫ Can vary at different levels within the organization. ▫ Commonly measured on a continuum ranging from high to low based on 7 dimensions of climate.
  21. 21. 7 Dimensions of Climate • STRUCTURE ▫ Constraints – rules – regulations – policies and procedures. • RESPONSIBILITY ▫ Degree of control over your own job (autonomy). • REWARDS ▫ Degree of being reinforced or punished. • WARMTH ▫ Degree of satisfaction with human relations on the job. • SUPPORT ▫ How much help you get and the level of cooperation. • ORGANIZATIONAL IDENTITY & LOYALTY ▫ Degree to which employees identify with and feel loyal to. • RISK ▫ How much risk taking is encouraged.
  22. 22. Organizational Development (O.D.) • Ongoing process of change used as a means of improving the organization’s effectiveness in solving problems and achieving its goals. ▫ A Change-Agent is a person responsible for an O.D. program.  Training = process of developing necessary skills to perform the present job.  Development = process of developing the ability to perform both present and future jobs.
  23. 23. The Training Cycle – 5 Steps • DO A “NEEDS” ASSESSMENT ▫ Who needs training and what kind. • SET GOALS ▫ What will they be able to do at end of training. • PREPARE FOR THE TRAINING ▫ Decide what methods of training are best. • CONDUCT THE TRAINING • MEASURE AND EVALUATE THE RESULTS ▫ A “follow-up” to see what has been learned – performance appraisal.
  24. 24. Performance Appraisals • Ongoing process of evaluating employee job performance. ▫ Typically after someone is hired (during and after their training) and on a quarterly, bi-annual, or annual basis. ▫ Two objectives:  Development of the employee.  Evaluation of the employee.
  25. 25. More on Steps 2 & 3 • STANDARDS ▫ Describes performance levels in the areas of quantity, quality, time, and cost. • COACHING ▫ Refer to past feedback.  What were they supposed to do? ▫ Describe current performance.  Give specific examples of needed changes. ▫ Describe desired performance.  In detail and why it is important – more training. ▫ Get a commitment for change.  Must be a willingness to change/improve. ▫ Follow-up.  Include positive reinforcement and how follow-up will be done.
  26. 26. Survey Feedback • An O.D. technique that uses questionnaires to gather data that are used as the basis for change. ▫ Commonly used to measure climate. • Six steps: ▫ Preliminary planning to develop survey. ▫ Questionnaire is given to all members of organization. ▫ Data analysis is conducted. ▫ Change agent gives results to management. ▫ Management evaluates and discusses with employees. ▫ Correction active plans are developed and implemented.
  27. 27. Force Field Analysis • Technique that diagrams: ▫ Current level of performance. ▫ Forces that hinder change. ▫ Driving forces toward change. • Particularly useful for group problem solving as it helps people to visualize problems and solutions.
  28. 28. Team Building • An O.D. technique designed to help work groups operate more efficiently. ▫ Typical agendas vary according to the change agent and needs of the organization – but usually include the things we have discussed about team development. • Goals of team building: ▫ Clarify goals and personal responsibilities. ▫ Identify obstacles/problems in the way. ▫ Develop team skills. ▫ Determine preferred style of teamwork. ▫ Use talents/strengths of all team members. ▫ Develop open/honest/trusting relationships.
  29. 29. Team Building Program Agenda • Climate Building ▫ Change Agent develops trust and openness. • Process & Structure Evaluation ▫ Team decides it’s ideal norms. • Problem Identification ▫ Team identifies weak/strong areas. • Problem Solving ▫ Priorities are set. • Training ▫ To address the new skills needed. • Closure ▫ Summary – set follow-up – commitments.
  30. 30. Global Differences in Change • Individual Based Cultures ▫ Concerned more about helping themselves. ▫ More likely to resist change if it does not directly benefit them. ▫ Overall they value change and the ability to deal with change positively. • Slower to Change Cultures – Value Tradition More ▫ Asian countries and some Middle Eastern. • Collective Based Cultures ▫ Tend toward improving the team effort. ▫ Japan, Mexico. • Respond More to Power ▫ France, China, India.
  31. 31. Chapter Summary • 4 Types of Changes • Resistance to Change • Change Models • 2 Dimensions of Organizational Culture • 7 Dimensions of Organizational Climate • 5 Organizational Development Techniques • The Training Cycle • 5 Steps of Performance Appraisals • The Coaching Model • Relationship between Org. Culture, Climate, and Development • CLIMATE ▫ Values and assumptions of the ideal environment. • CULTURE ▫ Shared values and assumptions of the actual internal environment. ▫ Culture informs climate. • DEVELOPMENT ▫ Vehicle used to change culture and/or climate in search of improvement toward the ideal.

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