ORGANIZATIONAL VALUES, CULTURE AND ORGANIZATIONAL CHANGE:Issues in Change Management

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Change Management MGMT625

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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Change Management MGMT625

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

Change management in post colonial era

Feminism and change management

Post materialism and change management

Cultural school of change management

Issues in Change Management

1. Self vs. other (management vs. market)

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Change Management MGMT625

Knowledge vs. organizing (learning and organizing: are the two antithetical to each other)

Technology vs. Culture

Sunk cost cognitive and intellectual sunk cost not just in terms of capital investment.

Real world is political but still scientific management school is dominant

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