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<<< Previous ORGANIZATIONAL VALUES, CULTURE AND ORGANIZATIONAL CHANGE:Issues in Change Management
 
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Change Management ­MGMT625
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Lesson # 45
ORGANIZATIONAL VALUES, CULTURE AND ORGANIZATIONAL CHANGE
In the last session, we had discussed about the significance and role of organizational values and
culture in change implementation process in organizations. Today, we will continue with our
previous discussion and explore further critical aspects of change management context. And towards
the end, I would like to share with you future trends and critical areas of research in change
management discipline.
Organizational Values and Culture in Change Management Process
Change induced through strong coercive pressures or stiff control processes will lead only to
superficial conformity. This will not be a durable and sustainable solution because as the pressure
goes away (or become routinized) the relaxed organization will change to form an organization with
values held within.
At first instance, this is considered a general tendency that human psyche always resist change. In the
second instance, if people are not being allowed to involve in change process or coercive methods are
being applied to molding them toward non-consented change by the higher command then this will
create double plied consequence in change management and not will be long lasting. Therefore,
people's consent must be required for long term solvency of change. The coercive model for
behavior modification is the earliest model not only in the modern managerial thought and also in
human history. In managerial thought, the most famous theory about the manipulation of nature of
people has been expressed by Douglas McGregor in his book, "The Human side of Enterprise", and
is known as "Theory X" and "Theory Y." For instance, Theory X assumed the nature of average
peoples as they inherently dislikes the work and wish to avoid responsibility. Therefore, according to
McGregor, those people must be coerced, controlled, directed, and threatened with punishment to get
them to put forth adequate effort toward the achievement of organizational objectives. While, the
"hard" or X approach may produce resistance and antagonism. On the other hand the "soft" or Y
approach may result in laissez-faire management.
Some scholars also believe that McGregor has apparently been misinterpreted. Both of his theories
are not completely congruent with reality and these are only assumptions based on intuitive
deductions rather than based on research. Furthermore, modern research revealed that different tasks
and situations require a variety of approaches to management. John J. Morse and Jay W. Lorsch have
found that different approaches are effective in different situations. Thus, the productive enterprise is
one that fits the task requirements to the people and the particular situation. And the effective
managers are those who recognize the dignity and capabilities, as well as the limitations of people
and adjust their behaviors as demanded by the situation.
Values of elite ­ instead of non-elite are required for radical transformation. This type of
transformation will not occur unless elite value structure is compatible with prescribed change plan.
The forces for change can come from the individuals themselves (normally the organizational elite)
in addition to the environment external to the firm or from within the organization. Therefore, the
role of elite is the most decisive and critical in bringing change in organizations. Otherwise any
dissent can bring a deadlock or a crisis like scenario in organizations. In case of radical or
transformational change, the dilemma further gets intense. So, change process often revolves around
the values of the powerful elites. For example, International Standard Organization (ISO-
certification) unless the most powerful people at the top like owners, shareholders, or senior
executives agree for the certification mere training and documentation is futile because elites have
the authority, rigor and, what Kurt Lewin termed as driving force for implementing a qualitative
change in organizations. Hence, members of organizations make strategies based on their choices
(values). This view is closer to adaptationist approach instead of an environmental determinism.
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A value, as have already been defined, is a fairly permanent belief about what is appropriate and
what is not that guides the actions and behavior of employees in fulfilling the organization's aims.
Therefore, it is not something which is preordained or exists by default. It is an intrinsic and
deliberate operating phenomenon which emerged on the basis of a choice, structured in a particular
situation and delivered results. For instance, the philosophies of management studies or even in other
social sciences are based on the assumption that values can be learned and practiced and behavior can
be opted through values. This approach is commonly known adaptationist approach in learning
philosophy.
On the other extreme, the learning behavior is dependent on deterministic approach which is
flat and environmentally manipulated. Therefore, it is the environment which is decisive in
creating change and where element of value choice is zero. However in today's dynamic
socio-cultural business environment, managers in general do not accept orders blindly; they
want to become active participants in defining objectives and in the decision making
process. It is also important that any approach selected is dependent on one's worldview or
perceptual criteria which have been developed over a period of time.
Value-formation process: Is it cognitive or social?
As we know that values can be thought of as forming an ideology that permeates everyday decisions.
In this regard Vroom model suggest that everyone has a unique combination of valence,
instrumentalities, and expectancies. Therefore, the individual acts on to gain and/or to keep values
and value judgments as important cognitive and social determinants of behavior. The cognitive
learning phenomena, at the first instance, depend on one's exposure, analytic and interpretive ability,
and inferences. Secondly, the social learning phenomena depend on one's own around or
environment and chances attributed to people rather on self.
The cognitive learning approach normally leads to an autocratic or dictatorial style in managing and
leadership. While, social learning approach is for participative decision making and value sharing in
organizations. In general practice, it has been found that there must be a balance required between the
two approaches for effective learning and leading in different situations. Thus, the productive
enterprise is the one that fits the best among both.
The values held by an individual are relatively permanent (Meglino & Rawlin)
In organization's context, culture means a general pattern of behavior, shared beliefs, and values that
members have in common. Thus, it is impermanent or divisive phenomenon. Because it may be
evident that people of an organization commonly share professional values instead of social or
political values. Similarly, the value learning process in organizations is also very shortsighted and
hyper in nature. Therefore, changing a culture from week to strong, as according to Koontz, may take
a long time, even 5 to 10 years. In contrary to organizations, the values held by an individual are
more permanent, influential, and more expressive. However, a clear vision and good role models can
contribute much in making value permanence in organization.
Critical Research Areas in Change management
1.
Change management in post colonial era
2.
Feminism and change management
3.
Post materialism and change management
4.
Cultural school of change management
Issues in Change Management
1. Self vs. other (management vs. market)
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2.
Knowledge vs. organizing (learning and organizing: are the two antithetical to each other)
3.
Technology vs. Culture
4.
Sunk cost ­ cognitive and intellectual sunk cost not just in terms of capital investment.
5.
Real world is political but still scientific management school is dominant
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Table of Contents:
  1. COURSE ORIENTATION:Course objectives, Reading material, Scope of the subject
  2. BENEFITS AND SIGNIFICANCE OF CHANGE MANAGEMENT:Traditional management domain
  3. KURT LEWIN MODEL: ASSUMPTIONS AND IMPLICATIONS:Change Movement, Refreeze
  4. IMPLICATIONS OF KURT LEWIN MODEL:Sequence of event also matters, A Critical Look
  5. SOME BASIC CONCEPTS AND DEFINITIONS:Strategic change, Logical incrementalism
  6. TRANSACTIONAL VS. TRANSFORMATIONAL LEADERSHIP:Micro-changes, Organisation Development
  7. THEORIES OF CHANGE IN ORGANISATIONS
  8. LIFE CYCLE THEORY:Unit of Change, Mode of change, Organisation death
  9. TELEOLOGICAL THEORIES OF CHANGE:Unit of change, Mode of Change, Limitations
  10. DIALECTICAL THEORIES OF CHANGE:Unit of Change, Strategic planning
  11. A DIALECTICAL APPROACH TO ORGANISATIONAL STRATEGY AND PLANNING:
  12. LIMITATION OF DIALECTICS; DA AND DI:Overview of application of dialectics
  13. THEORIES OF CHANGE IN ORGANISATIONS
  14. APPLICATION OF EVOLUTIONARY THEORY:Managerial focus
  15. FURTHER APPLICATION OF EVOLUTIONARY THEORIES:Criticism
  16. GREINER’S MODEL OF ORGANISATIONAL– EVOLUTION AND REVOLUTION
  17. GROWTH RATE OF THE INDUSTRY:CREATIVITY, DIRECTION, DELEGATION
  18. COORDINATION:COLLABORATION, The Crisis
  19. ORGANISATION ECOLOGY:Structural Inertia, Internal Structural Arrangements, External Factors
  20. CLASSIFICATION OF ORGANIZATIONAL SPECIES:Extent of Environmental Selection, Determinants of Vital Rates,
  21. FOOTNOTES TO ORGANISATIONAL CHANGE:Stable Processes of Change, Rule Following, Conflict
  22. SOME COMPLEXITIES OF CHANGE:Superstitious Learning, Solution Driven Problems
  23. ORGANIZATIONAL ADAPTATION:The Entrepreneurial problem, The Administrative Problem
  24. PROSPECTORS:Analyzer, Reactors, Adaptation and Strategic Management
  25. SKELETAL MODEL OF ADAPTATION:Determinants of Adaptive ability, The Process of Adaptation
  26. STRATEGIC CHANGE:Nature of Change, The Importance of Context, Force field Analysis
  27. Management Styles and Roles:Change Agent Roles, Levers for managing strategic Change
  28. SYMBOLIC PROCESSES:Political Processes, COMMUNICATING CHANGE, Change Tactics
  29. STRATEGIC CHANGE:Pettigrew & Whipp’s Typology, Context on X-axis (Why of change)
  30. STRATEGIC CHANGE:Attributes of SOC Model, Implications for Management
  31. STRATEGIC CHANGE:Flow of Information, Recruitment, SOC Process
  32. Determinants of a Successful Change Management:Environmental, Management Orientation, Management Orientation
  33. Higgins 08 S Model – An Adaptation from Waterman’s Seven S model:Strategy, Systems and Processes, Resources
  34. IMPLEMENTATION AND STRATEGIC CHANGE: CONSTRAINING FORCES IN THE IMPLEMENTATION OF STRATEGIC CHANGE (CASE STUDY OF XYZ COMPANY)
  35. IMPLEMENTATION AND STRATEGIC CHANGE: CONSTRAINING FORCES IN THE IMPLEMENTATION OF STRATEGIC CHANGE (CASE STUDY OF XYZ COMPANY)
  36. WHY IMPLEMENTING STRATEGIC CHANGE IS SO DIFFICULT?:Change Typology, Technical Change
  37. IMPLEMENTATION APPROACHES:Attributes of incremental change,
  38. IMPLEMENTATION: RADICAL OR TRANSFORMATIVE CHANGE
  39. IMPLEMENTATION: RADICAL OR TRANSFORMATIVE CHANGE:Definition of Leadership, Follower Work Facilitation
  40. IMPLEMENTATION: RADICAL OR TRANSFORMATIVE CHANGE:Recognize the challenge
  41. IMPLEMENTATION: RADICAL OR TRANSFORMATIVE CHANGE
  42. IMPLEMENTATION: PUNCTUATED EQUILIBRIUM MODEL:Features of Radical Change, Theory of P-E model
  43. CHANGE IMPLEMENTATION: OD MODELS:The Transactional Factors
  44. CULTURE, VALUES AND ORGANIZATIONAL CHANGE:Significance and Role of Values, Values Compete
  45. ORGANIZATIONAL VALUES, CULTURE AND ORGANIZATIONAL CHANGE:Issues in Change Management