Organization ChangeResearch and Theory

AJI JAYA BINTARAALISA OCTABIYANTIDION WARDYONO

Change is a choice (intend to do and not intend to do)

Why the organization must change?

What kind of change?

How to change?

Chaos and Related Theory

Non linear complex system theory

Organization change Theory

Organization theory

Psychological Theory

The Origin of Origins

Antecedents of Organization Development

Cummings & Nathan, 1991:1. Lifting of significant regulatory requirements2. A new CEO charged with transformation3. A technological breakthrough

Tushman, Newman, and Romaneli (1986):4. A Fundamental shift in an industry competitive

framework5. Significant movement in a product’s life cycle6. Significant change in size

Review of Organization change research

PEOPLE

TECH-NOLOGY

OrganizationalProcesses

OrganizationalStructures

Approach to Organization Development (Friedlander & Brown, 1974):

Human Fulfillment

TaskAccomplishment

TARGET OF INTERVENTIONS

OUTCOMES OF INTERVENTIONS

Human-Processual Approach

Techno-Structural Approach

Complementary research to Organization Development - Faucheux, Amado, & Laurent - Identifies cross cultural view - Stronger linkage between social and technical approach

1. This kind of research attempts to determine causation

2. Most research on organization change is a snapshot, not longitudinal

3. Much research methodology and instrumentation is quite precise, but

meaning and interpretation of the data are anything but precise

4. The research often does not fit the needs of user.

Organization change research “suffers from problem”

Beer & Walton (1987) :

More Recent Approaches to Research and Theory

Normal Science

Action Science

- Linear Systems- Quantitative method- Snapshot study

- Involves the user in the study- Relies on self-corrective learning (assessment and modification)

- Occurs over time, not episodically

Shift from “normal science” to “action science”

Argyris, Putnam & Smith (1985)

Additional considerations in organization change research

1. The research can affect the outcome

2. Golembiewski, Billingsley, and Yeager (1976) :

Three types of change, which they labeled Alpha, Beta, and Gamma (Team Building example)

Type of change Description

Alpha change • Concerns a difference that occurs along some relatively stable dimension of reality.• Comparative measure before and after an intervention

Beta change • A recalibration of intervals along some constant dimension of reality

Gamma change • Involves a redefinition or re-conceptualization of some domain a major of change

• 1990 Theory and Research most closely associated with OD (Organizational Development)

• Porras & Robertson, 1992 Planned VS unplanned change, First-order VS Second-order change.

• Planned Change: Deliberate, Conscious, improve, deeper• Unplanned Change: External, Response, adaptive, spontaneous• First-Order Change: Continuous, Alterations, Modifications• Second-Order Change: Radical, Fundamental, Paradigmatic

The organizational change research theory of Porras and Colleagues

Comments:• It oversimplifies. Revolutionary changes and evolutionary changes can be

planned (Goodstein & Burke, 1991) & (Chapter 5)• The most recent review, Weick and Quinn (1999) Episodic Change

(discontinuous, transformational, and revolutionary) VS Continuous Change (continuous, improvement, transactional, and evolutionary).

Order of Change Change Category

Planned Unplanned

First Developmental Evolutionary

Second Transformational Revolutionary

Types of Organizational ChangeOrganizational Development: Theory, Practice, and Research, by J. I. Porras and P. J. Robertson, 1992, in

Handbook of Industial and Organizational Psychology, by M. D. Dunnette and L. M. Hough

Friedlander & Brown (1974) two primary approaches to organization change:1. People or Human-processual2. Technology or Techo-structuralTwo outcomes: 3. Human Fulfillment4. Task Accomplishment

Porras (1987) loop connecting process5. Environment (input)6. Organization (through-put)7. Organizational Performance, and individual development (Output)

Porras & Robertson (1992); Porras & Silvers (1991) Four organizational work settings dimensions “streams”:8. Organizing Arrangements (goals, strategies, structure, and systems)9. Social Factors (culture, social pattern, networks, individual attributes10. Technology (tools, equipment, machinery, job design, and technical systems)11. Physical Settings (space, ambiance, interior design, etc).And the member elements:12. Cognitions13. Behaviors

Organization Models

Environment

Individual Cognition

On-The-Job Behavior

Vision

Physical setting

Socialfactors

TechnologyOrganizingarrangements

Organizational performance

Individual development

Mem

bers

Mem

bersW

orks

etting

Worksetti

ng

Organization

Org

aniza

tion O

rganizationA Change-Based Organizational Framework

Handbook of Industrial & Organizational Psychology, by Marvin D. Dunnette and Leaetta M, Hough, 1992

Whetten (1989) a “complete” theory contains four elements:1. What (constructs): “explanatory parts”2. How (lingkages): “what causes what” 3. Why (conceptual assumptions): “the reasonableness”4. Who, Where, When (The fourth element ): “temporal & contextual factors of

generalizability”

Porras and Silvers (1991): “Planned change that makes organizations more responsive to environmental shifts should be guided by generally accepted and unified theories of organizations and organizational change, neither of which currently exists” (p 51)

Proposes new model a process of how organizational change occurs:5. Organizational Interventions (OD and OT) that are intended to affect6. Certain Variables (Vision and Worksetting) which in turn affect7. Individual (Cognitive and Behavior) and ultimately improve8. Organizational Outcomes (Organizational Performance and Individual

Development

Organization Change Theory

CHANGEINTERVENTION

ORGANIZATIONALTARGET

VARIABLES

INDIVIDUAL ORGANIZATIONAL

MEMBER

ORGANIZATIONALOUTCOMES

ORGANIZATIONTRANSFORMATION

(OT)

ORGANIZATIONDEVELOPMENT

(OD)

VISION• Guiding Bullets

and Principles• Purpose• Mission

WORK SETTING• Organizing

Arrangements• Social Factors• Technology• Physical Setting

COGNITIVE

CHANGE

Alpha Change

Beta Change

Gamma (A) Change

Gamma (B) Change

BEHAVIOR CHANGE

IMPROVED ORGANIZATIONAL

PERFORMANCE

ENHANCED INDIVIDUAL

DEVELOPMENT

?

Planned Process Model of Organization ChangeOrganization Development and Transformation, by J. I. Porras and R. C. Silvers, 1991

• Porras meets Whetten’s (1989) criterias well Organization change occurs when members alter their on-the-job behavior appropriately

• However:1. Human Beings the more emotional, the more it is the other way around

(behavior first, then cognition)2. More complex organization level The social effect (how they collectively

react and interact to another)3. Vision not sufficient for change The change in mental set comes after

behavior has occured• Supported by James-Lange Theory (emotion), Schachter 1959 (attribution

came after the inducement and the enacted behavior), Wegner and Wheatley 1999 (behavior causes are rarely conscious intricate mechanisms in brains), Bargh & Chartrand 1999 (Automaticity Most of the causes is nonconsious means).

• Added from journal Lawrence G. Hrebiniak, 2006 “Obstacles to Effective Strategy Implementation” “the problem with poor performance typically is not with planning but with doing” Managing change is the main issue

Comments

• Wegner & Wheatly (1999) People can experience conscious will quite independent by three criterias:

1. Priority Thought shortly before the action (30 s)2. Consistency Thought should be compatible with the action3. The lack of other possible attributed causes Thought should be the only

cause of action

• In the context of organizational change:1. We must not assume that it is primarily a conscious Once values are

declared, then quickly move to action without assuming that members have made the linkages.

2. In more complex organization level, rely on nonlinear theories (Svyantek & Brown, 2000) Little control and difficult to sustain because of resistancy.

3. In organization level, use attractors Organization change as a series of “loops” initiatives and corrections.

Summary

The “In-” Theoretical Model of Organization change

Beyond change management perspectives

Strategy

Skills Structure

Carter (2008):- Strategy –Structure –Skills as important components of change initiatives- Integration between Strategy-Structure-Skills is critical in change management process, which contains seven phases: Set up for success, Create urgency, Shape future, Implement, Support shift, Sustain momentum, and stabilize environment.

Dimensions of organization changeWilliam F. Glueck, 1969

1. Planned – Unplanned continuum

2. Size and Scope of change- Minor change (Legal agreement)- Major change (Systems: Centralized – Decentralized)

3. Level at which organization change began- Top down- Bottom up (Beginning at bottom and restructuring upward)

4. Test for effectiveness to implementation continuum- Incremental - Simultaneously

5. Element of the organization change- Knight: Product/Services, Technology, People, and Structure- Leavitt: Structural, Technological, and Human changes

Planned Unplanned

Recent thinking on organization change and research

Weick and Quinn (1999), consider two primary categories of organization change:

1. Episodic - Infrequent, discontinuous, and intentional- Occurs during periods of divergence (when organization moving away from their

equilibrium condition)- Arises as a result of inertia and inability to respond to external environment

changes2. Continuous

- Ongoing, evolving, and cumulative- Small continuous adjustments can cumulate and create substantial change- Driven by alertness and the inability of organization to remain stable

Pendulum Swing

Social system of management Practitioners managers Business Trade association Management societies

Social system of science Scientists Graduate School Research institute Scholarly societies

Professional School

ManagementConsulting

Professional Learning

CommunityPure Science

Pendulum

Simon (1976): Mixing oil and water. “It’s easy to describe the intended product, less easy to produce it. And task is not finished when the goal has been achieved”. Different kind of knowledge: Applied knowledge (practical issues or needs of profession) and Scientific knowledge (new ideas and processes that are potentially possible)

Individual challenge of professional services

Theory Building

Theory

Problem

Form

ulation

Research desig

n

& ConductProblem

Solving

Conceptual Model

Solution

Reality

To make significant research contributions , scholars in professional school must:1. Confront questions and anomalies arising from

management profession2. Develop alternatives theories and undertake

research to examine these questions3. Translate their findings, not only to contribute

knowledge to a scientific discipline, but also advance to practice of management

General systems approach suggests, four core activities:1. Diagnose the problem or situation as it exists in the real world2. Select a conceptual model and a research question to deal with problem or situation3. Build a theory and design research to examine the research questions4. Conduct the research and analyze the findings to produce a solution that addresses the real

world problem or situation

A Theory of Action Perspective

The basic premises of this perspective are:

1. At the core of human and organizational life is effective action2. Actions are produced by individuals using their mind/brain3. The way the mind/brain produces actions is to use designs that

are stored in and retrievable from the human mind/brain4. The design are causal5. The design that are actionable must also be testable, or else we

can never addresses our effectiveness6. Individual hold designs that they espouse and designs that they

actually use. The key to change is to get at the designs in use or theories in use

The Van de Ven & Argyris Arguments

Van de Ven and Argyris differ in:What knowledge to be developed and How it should be developed

Van de Ven arguments:1. Research must contribute to scientific discipline and practice of management2. Business school must create an environment that integrated the discipline by making dialogue or communication

Argyris arguments:1. Academics must ground research questions & solutions in real world practices2. Academic recommendations cannot be implemented effectively unless, without take to human tendency to behave consistently and defend against leading

consistently

How environment stimuli affects the organization or human being

ENVIRONMENTSTIMULI

ORGANIZATION(STRUCTURAL)

HUMAN RELATED(BEHAVIORAL)

Q1: When does organization development and organization transformation occur in organization planned change?

Q2: When does top-down initiative and bottom-up initiative occur in organization planned change?

Q3: When does cognition change and behavior change occur in organization planned change?

A: It depends on the difference of organization’s and members’ sensitivity in responding the change issue which is caused by:1. The Type of External Stimuli (Macro: PESTEL and Micro:

Industry)2. The Type of Internal Stimuli (Organization and Individual

readiness: way of thinking, needs, interests, etc.)3. The Timing of Stimuli to occur (Surprising or Predicted)

Our Synthesis

H1: Organization transformation occurs when there is a high sensitivity in responding the change issue.

H2: Organization development occurs when there is only a low sensitivity in responding the change issue.

H3: Status quo occurs when there is no sensitivity in responding the change issue.H4: Top-down initiative occurs when organization’s sensitivity is higher than members’

in responding the change issue.H5: Bottom-up initiative occurs when members’ sensitivity is higher than

organization’s in responding the change issue.H6: Two-ways initiative occurs when there is an equal level of sensitivity between

organization and members in responding the change issue.H7: Cognition change occurs before behavior change when there is a small gap of

sensitivity between organization and members in responding the change issue (high and low, low and resistance).

H8: Behavior change occurs before cognition change when there is a huge gap of sensitivity between organization and members in responding the change issue (high and resistance).

H9: Cognition change and behavior change occurs simultaneously when there is an equal level of sensitivity between organization and members in responding the change issue.

Our Synthesis

• TRANSFORMATIONAL• TWO-WAYS• COGNITION AND BEHAVIOR

• TRANSFORMATIONAL• BOTTOM-UP• COGNITION

• TRANSFORMATIONAL• BOTTOM-UP• BEHAVIOR

• TRANSFORMATIONAL• TOP-DOWN• COGNITION

• DEVELOPMENTAL• TWO-WAYS• COGNITION AND BEHAVIOR

• DEVELOPMENTAL• BOTTOM-UP• COGNITION

• TRANSFORMATIONAL• TOP-DOWN• BEHAVIOR

• DEVELOPMENTAL• TOP-DOWN• COGNITION

STATUS QUO

ORGANIZATION’S SENSITIVITY TO CHANGE ISSUE

RESISTANCELOWHIGH

MEM

BERS

’ SEN

SITI

VITY

TO

CHA

NGE

ISSU

EOur Synthesis

HIGH

LOW

RESISTANCE