Week 6: Change From The Perspective of Culture, Politics, and Power - Chapter 6 & 7 Chapter 6: Change from the Perspective of Organizational Culture The informal organization - introduction to part B the formal organization - consists of hierarchy, structure, official communication channels, job roles, management and leadership responsibilities, and the processes for converting resources into goods and services that make the organization viable - above the waterline informal organization - those aspects that are not officially defined, are often less visible, and are characteristically human - below the waterline networks, friendships, rivalries, gossip and rumor, meeting places → greatly influence the way in which work is accomplished Organizational Culture CULTURE AS A PERSPECTIVE ON ORGANIZATIONS definitions of organizational culture: → culture can refer to shared meanings or understandings that enable people to work together, or it can refer to the sense-making processes that make those shared understandings possible → organizational culture established consistency in employees’ thinking → culture constraints new thinking and thus new behavior and change itself → establishes consistency in employees’ thinking → gives rise to behavior patterns CULTURE AS A PERSPECTIVE ON ORGANIZATIONAL CHANGE Week 6: Change From The Perspective of Culture, Politics, and Power - Chapter 6 & 7 1 culture and change strategy 3 EFFECTS of culture on strategic planning: → culture may discourage change, particularly second-order change and fosters first-order change in which shared understandings are unaltered ASPECTS OF CULTURE observable features/artefacts - objects, structures, patterns of behavior that typify an organization (products, stories, logos, buildings, routines, hierarchy, reward systems, common ways of behaving toward subordinate) symbols - the particular established meanings associated with certain artefacts shared values - the goals and standards to which employees aspire shared beliefs - views regarded as true by many staff, underpin shared values and can be ethical or pragmatic values-in-use - the way in which the staff behaves espoused values - proclaiming share values (in internal documents, posters, advertisements, or websites) - may considerably differ from values-in-use assumptions - beliefs and values that are so integrated that they are often unrecognized → all a part in establishing similarity between employees' understandings of events Schein - any organization has 3 strata artefacts, values and beliefs, assumptions - mutual influence between these layers of culture Dynamics of Culture Week 6: Change From The Perspective of Culture, Politics, and Power - Chapter 6 & 7 2 the various aspects of culture interact cultural dynamics model - HATCH: extends Schein’s model aspects of organizational culture interrelate as follows: → clarifies how different aspects of culture interact, but also provides a framework for understanding different approaches to changing organizational culture The Challenges of Change from a Culture Perspective CULTURE, SUBCULTURE, AND CHANGE organizational culture can render an apparently 'good' change strategy unworkable - culture eats strategy for breakfast SCHWARTZ and DAVIS (1981) - before plans for organizational change are finalized, a risk assessment is made, examining the degree to which each element of the proposed changes is compatible with the organizational culture PANT and LACHMAN (1998) - identifying the values needed to take a change strategy forward an organization is unlikely to realize a strategy if its core values run counter to the values of the organizational culture If its peripheral values are inconsistent with the culture, the strategy may be implementable strategy core value - one that is central to the success of the strategy strategy peripheral value - one that would be helpful but which is of relatively minor importance to the success of the strategy values are not always held in common across the whole organization often groups of people who may be associated with one particular section or hierarchical level or function within the organization hold distinctive views forming a subculture with values, beliefs, symbols, and assumptions that differ from those of other employees Week 6: Change From The Perspective of Culture, Politics, and Power - Chapter 6 & 7 3 → if core values required for a change strategy conflict with subcultural values → AVOID the conflict by subcontracting elements of the strategy Culture viewpoints INTEGRATION POINT OF VIEW on organizational culture - subcultural differences are ignored or treated simply as irregularities to be eliminated - attention on commonality in values, symbols, artefacts, and assumptions across the organization, leading to shared understandings DIFFERENTIATION POINT OF VIEW - consistency within subcultures - subcultural dynamics are highlighted that may support or obstruct change programs (even tho keep up with one can still be obstructed by another subculture within an organization - subcultures, overlapping and nested within one another - focus on consistency within subcultures and inconsistency between them Change initiatives can be aided by one subculture, undermined by another Tensions between many subcultures, overlapping and nested within one another, may impact on the course of change FRAGMENTATION POINT OF VIEW - recognizes that the same event might be interpreted in contradictory ways even within a single subculture or, indeed by a single person role of leaders in bringing to the foreground situations that positively influence the values, symbols, and assumptions drawn into play issues and events highlight the differences and inconsistencies that cut across any subcultural boundaries ‘an organizational culture is a web of individuals, sporadically and loosely connected by their changing positions on a variety of issues’ CULTURE AND AGILITY strong organizational culture - one in which there is a deeply held consensus on values, symbols, beliefs, and assumptions among the organization’s people subcultural differences are minor consensus can be REINFORCED through 2 seperate processes, once established: 1. people tend to be attracted to work, selected to work, and more likely to stay in an organization when there is a good fit between their patterns and those of the organization 2. employees become enculturated as they work in an organization, tending to adopt the behaviors, values, symbolic meanings, and assumptions of the mainstream organizational culture strong organizational culture is an asset that leads to success - culture strengthens success DYER and SHAFER (1999) - patterns of behavior that contribute to organizational agility: proactively spotting and addressing threats and opportunities; rapid redeployment of people as priorities require; spontaneous collaboration to pool resources for quick results; innovating; and rapid and continuous learning SCHEIN (2004) - a culture that favors agility is a learning culture - assumptions: adds a value for full and open communication, and a belief that the world is complex and interconnected that human nature is basically positive; that the environment can be dominated; and that it is valuable to focus on the medium-term future Week 6: Change From The Perspective of Culture, Politics, and Power - Chapter 6 & 7 4 → diversity of subcultures is an important aspect of building agility, provided that the other characteristics above are in place → claims that this leads to success, but maybe success leads to a strong culture → strong organizational culture can foster success and generate vulnerability because of lack of long-term agility How Culture Changes DIAGNOSING THE NEED FOR CULTURAL CHANGE SCHEIN (2009) - organizational culture be analyzed in relation to a goal of resolving a specific organizational issue groups of between ten and fifteen people from different levels in the organization, who share a concern about the issue, are facilitated through a process of identifying both artefacts and espoused values Inconsistencies between these are used to surface values-in-use and assumptions These shared values-in-use and assumptions are then assessed in terms of how they aid or hinder the goal that has been set out, and necessary changes in the culture can be identified a program like this is not only a cultural analysis but also introduces a new artefact, the workshops themselves influence assumptions and highlight new behavioral artefacts CAMERON and QUINN (2006) - questionnaire called the 'Organizational Culture Assessment Instrument' (OCAI), to assess organizations in terms of various categories of artefacts and values, such as leadership style, management responsibilities, and success criteria assesses cultural values only along 2 DIMENSIONS: 1. a focus on flexibility and discretion as against stability and control 2. a focus on competing with external rivals as against a focus on internal unity organizational culture then evaluated according to the degree to which they resemble four archetypal cultures → much of the detail that distinguishes one culture from another may be glossed over PLANNED CULTURE CHANGE organizational culture change is never a comfortable and quick process BECAUSE: 1. culture change involves a change in thinking - always second-order change 2. organizational culture incorporates different facets, all of which will need to change if culture change is to be achieved - some hard to observe, let alone change 3. organizational culture affects, and depends on, a range of other characteristics of the organization such as the formal structure, informal networks, planning systems, power distribution and strategy 4. organizational culture has its roots in the history of the organization - perceived history of the organization may have to change for change to happen in the culture GAGLIARDI (1986) - 3 kinds of cultural change 1. apparent cultural change - culture accommodates change and does not genuinely alter - organization changes in order to preserve cultural identity → maintenance of blame culture (based on assumption of individual responsibility/culpability), but shift of blame from on department or group to another 2. revolutionary cultural change - organization is forced into abandonment of values by adoption of new, antagonistic ones - firm has died and a new one has been born Week 6: Change From The Perspective of Culture, Politics, and Power - Chapter 6 & 7 5 3. incremental cultural change - the incorporation of new values and assumptions into an existing organizational culture → new values, beliefs, and assumptions build on or modify those already established - some antagonism between new and old values/practices Hope HAILEY (1999) - how is incremental culture change achieved in practice - focus on artefacts and values to offer potential leverage for change: focus on artefacts - altering observable features, such as patterns of behavior, office layout, technology, routines, hierarchy, reward systems, responsibilities, appraisal measures, management style focus on values - through training and development, role-modelling, and persuasive communication → Employee involvement in discussing and proposing appropriate values is a key tool not only in arriving at an appropriate value set, but also in building employee commitment to the new values → also systematic promotion of people from a particular subculture that reflects desired values and behaviors → replacement of executives and senior managers whose thinking is not in keeping with new values plays a key role symbols as a leverage point for change - a share options scheme to give employees a stake in the success of the company EMERGENT CULTURAL CHANGE change not only the result of strategic planning but also as an emergent process that happens without/despite planning integration viewpoint - there can be a variety of causes and unintended culture change → new artefacts, values, symbols, and assumptions filter into organizations from the societal and business environment → culture change arising from growth, decline, or crisis in the development of the organization differentiation viewpoint - subcultures can influence one another extension merger - can be possible for the two former organizations to function independently, particularly if they operate in different markets collaborative merger - integration of cultures can take place through collaboration in building a new organizational culture (an incremental culture change) redesign merger - integration of cultures can take place through annexation of one organizational culture by the other (a revolutionary culture change) in case of this one, the cultural acquirer may not necessarily be the larger organization - sometimes smaller organization is acquired precisely because of its values collaborative merger success in building a new culture depends on the degree to which, formally and informally, there are cross-organizational socialization activities Chapter 7: Change from the Perspective of Power and Politics Power and Politics and their Relevance to Organizational Change power and politics as a perspective: Highlights the adversarial nature of change assumes organizations formed of different interest groups whose aspirations for a particular change often incompatible rather than purely rational decision-making, sees choices made through exercise of power and influence Week 6: Change From The Perspective of Culture, Politics, and Power - Chapter 6 & 7 6 use of power can be self-serving which leads to negative view of power and politics POWER power - ability to change other people’s behavior so that they do what u want them to do is most effective when least observed soft power - ability to get others to think the way u do 3 main ways of CONCEPTUALIZING POWER: power as an individual property power as a relational property → individuals use different power bases in different contexts → sources of power r likely to be infinite power as embedded in organizational structures and procedures → power pervasive in less obvious organizational features such as norms and routines which perpetuate existing power relations individual power bases POLITICS politics - power actively being used Aristotle - politics as a means of reconciling the need for units in the city state with the fact that the polis was made up of diverse interests broad categories of organizational politics: politics as negative and self-serving, leading to divisive, illegitimate, and dysfunctional behavior and conflict political behavior can sometimes be beneficial categories of definition of organizational politics: unitarist perspective on organizations - emphasize cooperation and collaboration and view politics as an aberration because any activity that is not directed to shared organizational goals is seen as both deviant and irrational pluralist view - acknowledge the inevitability of politics in the activities of subgroups in an organization competing for limited resources Mintzberg - politics as 'individual or group behavior that is informal, ostensibly parochial, typically divisive, and above all, in a technical sense, illegitimate/sanctioned neither by formal authority, accepted ideology, nor certified expertise' but who decides what behaviors are sanctioned or not and does that make some of them wrong, because they are not sanctioned? Week 6: Change From The Perspective of Culture, Politics, and Power - Chapter 6 & 7 7 POLITICAL SKILL political skill - an interpersonal style that combines political astuteness with the ability to relate well, and otherwise demonstrate situationally appropriate behavior in a disarmingly charming and engaging manner that inspires confidence, trust, sincerity and genuineness BADDELEY and JAMES differentiate between the clever and the wise both are skilled at reading the politics of an organization clever - concerned primarily with their own self-interest wise - concerned primarily with what is in the interest of the organization and are predisposed to act with integrity → ASSUMES that what is in the organization’s best interest is clear and objective rather than dependent on whom you talk to AND that others’ intentions and motivations are transparent organizations - political or games arenas in which some of the players are unknown and many of the rules are unclear tactics - may be to outwit, outplay, or outlast perception of politics very important, regardless of its actual existence GANDZ and MURRAY - organizational politics is best understood as a state of mind rather than an objective reality judging political actions and their outcomes is therefore largely a function of the values and perspective of the evaluator, and what becomes important for the change agent is the meaning ascribed to their actions in their context by other organizational players THE RELEVANCE OF POWER AND POLITICS TO ORGANIZATIONAL CHANGE main reasons why understanding organizational change through the perspective of power and politics is useful: when an organization is in the midst of change, there is likely to be an increase in political behavior which affects everyone BECAUSE more uncertainty → cannot anticipate consequences → more political behavior → feel like can no longer rely on established procedures and rules AND if there is a low trust climate, more suspicious of others’ motives → informal and unsanctioned behaviors more likely to be labeled as political change agents need to engage in politics if they are to be successful organizational politics involves unsanctioned and informal forms of behavior - are more likely to occur if there is uncertainty - uncertainty high when change lack of trust increases political behavior - neither inherently positive nor negative Week 6: Change From The Perspective of Culture, Politics, and Power - Chapter 6 & 7 8 potential impact of political behavior on change the change agent who is not politically skilled will fail BUCHANNAN and BODY front stage - rational arena of action for change agents - public performance of rationally considered and logically phased change back stage - seeking support informally - blocking resistance - influencing, negotiating, selling, deliberately tailoring messages Political Interventions COALITIONS AND POLITICAL ALLIANCES the formation of coalitions - coming together into groups of those who share particular interests, or who want to advance specific approaches to change KOTTER and COHEN - without 'powerful guiding coalition', it can be hard, if not impossible, to sustain the momentum and energy required for radical change AND convince employees that the leadership is serious about change guiding coalition - coalitions formed of senior leaders can also be formed on different levels of the organization tho can also form against change formation of coalitions is the primary means by which individuals go from being on the same wavelength to being allies who recognize their common interest and are willing to devote resources to a common effort may become explicit or remain unacknowledged - subtle, informal 'institutionalized substratum of organizations’ THE POLITICS OF PRESENTING IDEAS FOR CHANGE issue selling - the behavior of people outside top management who compete for attention for their ideas about what should change and how some issues will come to be seen as more important and, through this, certain decisions will be made and others not made DUTTON - approaches to packaging the issue: Week 6: Change From The Perspective of Culture, Politics, and Power - Chapter 6 & 7 9 3 kinds of knowledge of the change context important for issue sellers: - also draw on these different types of knowledge while packaging 1. strategic knowledge - an individual’s ability to 'bundle' effectively 2. relational knowledge - managers' understanding of individuals and social relationships 3. normative knowledge - Managers' understanding of the norms of expected or appropriate behavior → outsiders, like consultants often do not have normative and relational knowledge 'by failing to make sure that people are equipped with the knowledge to achieve effective selling from below, organizations rob themselves of this vital source of internal change initiatives' ~ Dutton STAKEHOLDER MAPPING AND COMMITMENT PLANNING stakeholder mapping - systematic approach to understanding the political dimension of a particular change → provide a forum for explicitly discussing the critical, back stage activity of influencing those who have the power to support or block the change identifying, in advance, groups and key individuals who will want to have a say: groups who will be affected significantly and groups who may need to make minor adjustments Scholes, power-interest matrix commitment mapping - focuses on the commitment of identified key players BECHHARD and HARRIS - 3 different kinds of commitment: 1. let it happen - those who will not actively derail the change 2. help it happen - those who proactively support the change 3. make it happen - those who proactively drive the change DISADVANTAGE: some people feel uncomfortable in engaging in political activity so explicitly, maps need to be regularity reviewed and adjusted to stay useful Week 6: Change From The Perspective of Culture, Politics, and Power - Chapter 6 & 7 10 Resistance INTRODUCTION TO RESISTANCE resistance costs time, money, and emotional effort, which may sometimes derail the change resistance - a restraining force that attempts to maintain the status of the current situation → 'intentional acts of commission or omission that defy the wishes of others’ managers often perceive resistance negatively, encouraging a view of resistors as obstacles, short-sighted, insubordinate, and disobedient → dismissive attitude to potentially valid reasons for opposing a change acts of resistance are also acts of power → power and resistance are embedded in a dynamic relationship that tends to be mutually reinforcing TRADITIONAL APPROACHES ASSUMPTION: leaders have the legitimate right to minimize, or even to 'mow over’ resistance KOTTER and SCHLESINGER (1979) - 4 sources of resistance: 1. parochial self-interest - people resist change because they focus on their own best interests and not those of the total organization 2. People resist change because of misunderstanding and lack of trust 3. resist because they have a low tolerance for change, and experience anxiety, insecurity, and fear that they may not be able to develop the new skills or behaviors required 4. different assessments - sometimes, individuals or groups interpret the facts or data differently from those initiating or explaining the change, or indeed may have access to different information BECKHARD and HARRIS (1987) - formula to analyze resistance objectively: CRITICISM: relies on perceptions and judgements about people and their potential reactions, which are inherently subjective AND assumes that an individual's responses will be very similar to those of others, can be standardized, and easily understood and evaluated by others PSYCHOLOGICAL APPROACHES focus on the point of view of those resisting and tend to take a non-judgemental stance, maintaining that whether resistance is seen as positive or negative, rational or irrational, is largely a matter of perspective acts of resistance are inherently meaningful to those carrying them out and to their peers resistance is often prompted by a perceived threat to a values conception of the self resistance is more likely when people feel that change is imposed → particularly so when norms of procedure justice are not observed, when threat is perceived as severe, and when the changes threaten the individual’s identity the more these happen, the more individuals are to believe that the threat was deliberate and to personalize the blame onto the organization or management formation of coalitions can be prompted if the changes are targeted at groups rather than individuals → a form of leadership is required to actually galvanize the collective into action ASHFORTH and MAEL (1998) - framework for examining different forms of resistance: Week 6: Change From The Perspective of Culture, Politics, and Power - Chapter 6 & 7 11 1. Targeted versus diffuse resistance: a. targeted - focuses directly on the perceived threat b. diffuse resistance - displaced more generally in the workplace 2. facilitative versus oppositional resistance: a. facilitative - acts that further the public or organizational interest b. oppositional - acts that serve narrow, self-interests 3. authorized versus unauthorized resistance: a. authorized - acts that are within the norms of the organization, so might include complaining to one's manager, filing a grievance, legal strikes or sharing concerns during a focus group b. unauthorized - acts of violence and insubordination that go beyond the bounds of acceptable behavior set by the organization PIDERIT (2000) - capturing employees' attitudes to change along three dimensions: 1. cognitive - individual's beliefs about the change 2. emotional - his or her feelings in response to it 3. intentional - both an intention to resist at the attitudinal level (that is, a plan or resolution to do something) and a protest at the behavioral level (actually taking some action) → resistance to change is represented when there are negative responses along all three dimensions REFRAMIG RESISTANCE AS A PRODUCT OF CHANGE AGENT SENSE-MAKING 'change agent-centric' point of view - resistance is an accurate report of an objective reality by unbiased observers (change agents) FORD (2008) - resistance as an interpretation by change agents → subject to the self-fulfilling prophecy: allows change agents to claim that any unexpected problems in the change process are due to resistance, using others as a ready scapegoat, rather than examining any potential failings of themselves or the change program THE VALUE OF RESISTANCE BENEFITS: resistors who have more accurate or up-to-date information can benefit the organization, stimulating a re-examination of particular aspects of the change CHALLENGE for change agents: how to ensure that there is talk about the change in enough places and by enough people that it starts to have momentum and take root → resistance then good cause even if negative, it keeps the topic in play, allowing others to participate → resistance may thus help ensure the ultimate success of change Interventions to increase commitment or decrease resistance before decide on intervention: diagnosing the type and scale of resistance or the gaps between current and required commitment (1-6 from KOTTER) Approaches: 1. communication - effective when resistance is based on inadequate or inaccurate information BUT requires pre-existing atmosphere of trust Week 6: Change From The Perspective of Culture, Politics, and Power - Chapter 6 & 7 12 2. participation and involvement - involving potential resistors in the design and implementation of a change initiative can pre-empt resistance 3. education and support - listening and providing emotional support; it might involve training in new skills 4. negotiation and agreement - offering incentives to actual or potential resistors - effective when it is clear that a group is going to miss out because of a change and their power to resist is significant 5. manipulation and co-optation - covert attempts to influence others - an individual or leader of a group is drafted into the design or implementation team - risky 6. explicit and implicit coercion - managers force people to accept the change by explicitly or implicitly threatening them with loss of jobs, promotions, bonuses, or actually firing or transferring them - risky 7. problem finding - neutral way of encouraging a wide variety of people to identify and clarify aspects of the problem - helpful at beginning of change process 8. role modelling - people are more likely to believe what they see rather than what they hear talked about convincing but rarely sufficient on its own to convert doubters 9. changing reward structures - used when resistance is around a requirement for exhibiting new behaviors → one intervention on its own is rarely sufficient Week 6: Change From The Perspective of Culture, Politics, and Power - Chapter 6 & 7 13