English Assignment: Case Study 2: Zappos

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Organization Change: Theory and Practice, Sixth Edition Chapter 8: Conceptual Models for Understanding Organization Change

Content: What to Change (1 of 2)

External environment triggering change.

The theory of the business.

Three assumptions.

Four criteria for a valid theory.

8.1. Identify the content of what to change as a component of organization change.

Content: What to Change

External environment triggering change:

Modifications in the organization’s external environment causes members to consider what to change about the organization to meet the new challenges and to survive as an organization.

The change could be significant or less complicated and straightforward.

The theory of the business:

A set of assumptions about how a given business can succeed in a particular environment and marketplace.

These assumptions “shape any organization’s behavior, dictate its decisions about what to do and what not to do, and define what the organization considers meaningful results.”

Three assumptions:

Assumptions about the external environment of the organization, such as society and its structure, the market, the customer, and technology.

Assumptions about the organization’s mission, purpose, and raison d’être.

Assumptions about the organization’s core competencies, that is, the skills and abilities required to accomplish the mission.

Four criteria for a valid theory:

1. The three assumptions must fit reality.

2. All three assumptions must fit or be congruent with one another.

3. The theory of the business must be known and understood by all organizational members.

4. The theory needs to be tested constantly.

Content: What to Change (2 of 2)

Varying content of organization change.

Discontinuous change.

Continuous change.

Holding on to successful content.

8.1. Identify the content of what to change as a component of organization change.

Content: What to Change

Varying content of organization change: The content of organization change can be mission and strategy, culture, structure, or systems.

Discontinuous change:

Content concerns more transformational factors, such as the external environment, mission, purpose, and strategy.

They are the fundamental assumptions.

Continuous change: Content concerns more day-to-day operations and transactions, focusing more on factors such as products and services, work-flow processes, organizational structure, and information technology.

Holding on to successful content:

Most senior managers hold on to the content that proved successful based on the experience.

Monitoring the external environment and listening to criticism are important for future success and survival.

Process: How to Change—A Theoretical Framework (1 of 6)

Change and development.

Four ideal types of development theories.

8.2. Describe the process of how to change using a theoretical framework.

Process: How to Change- A theoretical Framework

Change and development: Van de Ven and Poole framed the terms after numerous research and theories.

Four ideal types of development theories: These categories help us understand better the primary ways to consider process: the how, and the why of organization change.

Process: How to Change—A Theoretical Framework (2 of 6)

Life-Cycle Theory

Cumulative and conjunctive stages.

Organic growth of organizations.

Five stages in organization’s life cycle.

Merits of the life-cycle model.

8.2. Describe the process of how to change using a theoretical framework.

Life-Cycle Theory

Cumulative and conjunctive stages:

An organization “follows a single sequence of stages or phases, which is cumulative and conjunctive.

Cumulative stages are characteristics acquired in earlier stages are retained in the later stages.

Conjunctive stages are the stages are related such that they derive from a common underlying process.

Organic growth of organizations: An organization maintains its identity throughout the phases of changes.

Five stages in organization’s life cycle:

Creativity: the start-up phase

Direction: more focus needed

Delegation: as organization grows larger

Coordination: with differentiation of functions, integration is then required

Collaboration: working together more effectively as a total entity

Merits of the life-cycle model:

Among all other life-cycle models, Greiner’s remains popular with managers because his framework is easily understood.

It seems to correspond closely with manager’s experiences.

Process: How to Change—A Theoretical Framework (3 of 6)

Teleological Theory

Organization is purposeful, adaptive.

Develops toward a goal.

Ongoing and iterative process.

8.2. Describe the process of how to change using a theoretical framework.

Teleological Theory

Organization is purposeful and adaptive:

Assumption: This theory is rooted in the philosophical doctrine of teleology. It assumes that an organization is purposeful and adaptive.

Develops toward a goal:

An organization develops toward a goal or some end state.

Development is a repetitive sequence of goal formulation, implementation, evaluation, and modification of goals.

Ongoing and iterative process:

Organizations change as goals and purposes change.

The process is ongoing and iterative.

An organization is never static or in permanent equilibrium.

Process: How to Change—A Theoretical Framework (4 of 6)

Dialectical Theory

Organization existing in a competing world.

Creative synthesis of opposite views.

Consequence of the theory.

8.2. Describe the process of how to change using a theoretical framework.

Dialectical Theory

Organization existing in a competing world: The basic assumption with dialectical theory is that organizations exist “in a pluralistic world of colliding events, forces, or contradictory values that compete with each other for domination and control.”

Creative synthesis of opposite and conflicting views: Organization change occurs when two different points of view collide and some resolution is reached.

Consequence of the theory:

There is no assurance that dialectical conflicts produce creative syntheses.

A creative synthesis is usually mutually beneficial, but this kind of outcome is quite rare. So, organization change that occurs as a consequence of a dialectical process may be good or bad.

Process: How to Change—A Theoretical Framework (5 of 6)

Evolutionary Theory

Ongoing and evolving change.

Generating evolutionary cycle.

No choice but to change.

8.2. Describe the process of how to change using a theoretical framework.

Evolutionary Theory

Ongoing and evolving change: It assumes that organization change proceeds, according to a continuing cycle of variation, selection, and retention among organizations competing for resources in a designated marketplace or environment.

Generating evolutionary cycle:

Competition for scarce environmental resources between entities [organizations] inhabiting a population [particular environment] generates this evolutionary cycle.

The organization is never static; there is no permanent equilibrium.

No choice but to change: Just as how evolution is constant, organization has to evolve to survive.

Process: How to Change—A Theoretical Framework (6 of 6)

Evolutionary Theory

Framework of 16 explanations.

Noise and error distributions.

Purpose of the framework.

8.2. Describe the process of how to change using a theoretical framework.

Evolutionary Theory

Framework of 16 explanations: By combining and considering the assumptions, Van de Ven & Poole, came up with a framework of 16 explanations based on the original 4 theories.

Noise and error distributions: Unexplained patterns of change are treated as “noise” and “error” distributions that “mess up” the experiments.

Purpose of the framework:

The 4 original theories are largely linear in nature.

The framework of 16 explanations of organization change and development “is to develop and study nonlinear dynamics systems models and to examine chaos as an alternative explanation.”

Process: How to Change—Practice Framework (1 of 9)

From simple to complex steps.

Degree of readiness of change.

C = (ABD) > X.

Requisites for change.

8.3. Discuss the process of how to change using practice frameworks.

Process: How to Change- Practice Framework

From simple to complex steps:

Practice frameworks involves more applied, practice-oriented way of considering the change process.

The flow is from simple to more complex steps that lists the actual and sequence of steps, and related interventions.

Degree of readiness of change:

This involves people’s readiness to accept and implement change.

It considers if people directly affected by the proposed change will be resistant and how they will resist.

C = (ABD) > X:

The formula determines the cost of degree of readiness for change.

C = change, A = level of dissatisfaction with the status quo, B = clear desired state, D = practical first steps toward the desired state, and X = the cost of change.

Requisites for change: To successfully implement organization change, both clarity of change direction and motivation are necessary for acceptance and commitment on the part of organizational members.

Process: How to Change—Practice Framework (2 of 9)

Lewin’s Three Steps

Step 1: Unfreeze the present behavior.

Step 2: Move toward new behavior.

Step 3: Refreezing.

8.3. Discuss the process of how to change using practice frameworks.

Lewin’s Three Steps

Step 1: Unfreeze the present behavior:

This step can take many forms and needs to be tailored as much as possible to the particular situation.

Shows the gap to the members between where they are and where they need to be to meet the growing demands.

Step 2: Move toward the new, desired behavior:

Implementing the steps required to move toward the new, desired behavior.

Step 3: Refreezing:

This involves establishing ways to make the new level of behavior “relatively secure against change.”

This step could include installing a new reward system to reinforce the new, desired behavior or restructuring certain aspects so that new accountability arrangements and new ways of measuring performance are put into place.

Process: How to Change—Practice Framework (3 of 9)

Lewin’s Three Steps Expanded: Schein

Stage 1: Unfreezing.

Way 1: Disconfirmation.

Way 2: Induction of guilt.

Way 3: Creation of psychological safety.

8.3. Discuss the process of how to change using practice frameworks.

Lewin’s Three Steps Expanded: Schein

Stage 1: Unfreezing, three ways:

Creating motivation and readiness to change. There are at least three ways of unfreezing an organization.

Way 1: Disconfirmation or lack of confirmation:

It demonstrates the need for change by showing instances like member’s dissatisfaction by showing an eroding customer base, etcetera.

It shows the need to make a change by providing information on an organization's external environment that poses a risk for survival.

Way 2: Induction of guilt or anxiety:

A statistical data that shows a gap between the current situation and what is required triggers guilt feelings and general anxiety to make things better.

Way 3: Creation of psychological safety:

If members should actually make a change, they should be confident that it will not create embarrassment, humiliation, or loss of face or self-esteem.

It should make the members feel worthy and psychologically safe with no fear of retribution or punishment for embracing the change.

Process: How to Change—Practice Framework (4 of 9)

Lewin’s Three Steps Expanded: Schein

Stage 2: Changing.

Process 1: Identification of new mentor.

Process 2: Scanning for information.

8.3. Discuss the process of how to change using practice frameworks.

Lewin’s Three Steps Expanded: Schein

Stage 2: Changing, two processes:

Changing involves cognitive restructuring.

Members should view things from a different perspective that how they viewed it earlier and, as a result of this different view, must act differently.

Process 1: Identification with a new model, mentor:

An organization should identify a new model, mentor, leader, or even a consultant to “begin to see things from that other person’s point of view.”

The new model or mentor should command respect and attention such that the members will consider their point of view for themselves.

Process 2: Scanning the environment for new, relevant information:

Analyzing if the proposed change has worked earlier in other organizations, whether the wheel is recreated, or if there is something to learn from other’s mistakes.

Process: How to Change—Practice Framework (5 of 9)

Lewin’s Three Steps Expanded: Schein

Stage 3: Refreezing.

Part 1: Personal and individual.

Part 2: Interpersonal.

8.3. Discuss the process of how to change using practice frameworks.

Lewin’s Three Steps Expanded: Schein

Stage 3: Refreezing, two parts: It is the integration of the change for organizational members.

Part 1: Personal and individual:

Effective practice required to help the organizational member feel comfortable with the new behavior that is required to make the change.

Organization should try out the new behavior, get feedback, and then be rewarded when it gets right.

Part 2: Interpersonal:

Organization should ensure that the new behavior does not disrupt the team work.

The change with the new behavior from the “changed” person should fit well with other members.

Process: How to Change—Practice Framework (6 of 9)

Phases of Planned Change

Phase 1: Need for change.

Phase 2: Establishing change relationship.

Phase 3: Working toward change.

8.3. Discuss the process of how to change using practice frameworks.

Phases of Planned Change

Lippitt expanded the three stages to five phases due to the overlaps in the three stages.

Phase 1: Development of a need for change: This is equivalent of the unfreezing stage.

Phase 2: Establishing a change relationship:

Establishment of a change relationship between the change agent and the client organization.

The change agent could be consultant, usually external to the organization or perhaps an internal organizational member who is championing and leading the change effort.

Phase 3: Working toward change: This is the equivalent of moving or changing.

Process: How to Change—Practice Framework (7 of 9)

Phases of Planned Change

Phase 4: Stabilization of change.

Phase 5: Termination in relationships.

8.3. Discuss the process of how to change using practice frameworks.

Phases of Planned Change

Phase 4: Generalization and stabilization of change: This is equivalent to the refreezing stage.

Phase 5: Termination in the relationships: Achieving a termination in the relationships, that is, ending the “change contract” between the consultant–change agent and the client organization.

Process: How to Change—Practice Framework (8 of 9)

Organization Change as a Transition

Understanding the concept of transition.

Transitional model 1: demand system.

Transitional model 2: individual.

8.3. Discuss the process of how to change using practice frameworks.

Organization Change as a Transition

Understanding the concept of transition: The concept of transition is a way of understanding the process of organization change.

Transitional model 1: Demand system

The forces in the environment that initiate the process of organization change.

Three distinct conditions: the future state, the present state, and the transition state.

Transition management is a process of conducting activities. This involves determining where to intervene first, choosing transition technologies, and creating transition management structures.

Transitional model 2:

This is an individual one, not one for organizations. However, it can be easily applied for an organization change.

First phase: Endings. The process of letting go of the past and of the previous ways of doing things.

Second phase: Neutral zone. A period of time in which the individual is neither in the past nor in the new phase.

Third phase: New beginnings. This is the time when organizational members start to focus on new goals and priorities, begin to try the requisite new behaviors, and are psychologically prepared to move ahead.

Process: How to Change—Practice Framework (9 of 9)

Organization Change as a Transition

Merits of the process models.

Clarity by process flow.

Caution while implementing the models.

Continuous improvement initiatives.

8.3. Discuss the process of how to change using practice frameworks.

Organization Change as a Transition

Merits of the process models: It helps to plan and manage a change effort.

Process flow gives clarity:

The sequential planning in linear and causal terms can be useful.

A flow of sequences based on cause and consequences from A to B to C makes the complex process simpler to understand.

Caution while implementing the models:

Assuming too simple relationship can lead to errors and unanticipated outcomes.

The implementation of organization change is nonlinear and often unpredictable.

Continuous improvement initiatives: Though these sequential ways should be thoughtfully applied to even for discontinuous change processes, these models may be more directly applicable to continuous improvement initiatives because it moves along in a smoother, linear way.

Mini Theories Related to Organization Change (1 of 11)

Selective 10 theories.

Intent: applying theory to change.

Sequence: individuals to larger systems.

8.4. Explain a variety of mini-theories related to organization change.

Mini Theories Related to Organization Change

Selective 10 theories: psychology and organizational behavior:

The choice of the theories presented is selective.

These theories are applicable to organization change and development.

Intent: The intent is to use these theories as examples of how to apply theory to organization change and not to attempt an exhaustive listing of theories that might be applicable.

Sequence: The theories first address the individual, then more interpersonal and groups, and finally emphasize the larger system.

Mini Theories Related to Organization Change (2 of 11)

Individual Emphasis: Need Theory: Maslow/Herzberg

Differences between the theories.

Herzberg: hygiene vs motivator factors.

Content: motivation and job satisfaction.

Process: career development.

8.4. Explain a variety of mini-theories related to organization change.

Individual Emphasis

Need Theory: Maslow/Herzberg

Differences between the theories:

Maslow’s hierarchy of needs addressed motivation per se as a single continuum.

Herzberg’s focused more on dissatisfaction, from high to low, and job satisfaction, from low to high.

Herzberg: Hygiene factors on adequate vs inadequate basis contributed to dissatisfaction, motivator factors contributed to job satisfaction.

Content emphasis: individual motivation for Maslow, and degree of job satisfaction for Herzberg.

The process focus for both theories would be career development and enriching individuals’ jobs.

Mini Theories Related to Organization Change (3 of 11)

Individual Emphasis: Expectancy Theory (Cognitive): Vroom/Lawler

Three assumptions of the theory.

Content: motivation and rewards.

Process: performance and reward.

8.4. Explain a variety of mini-theories related to organization change.

Individual Emphasis

Expectancy Theory (Cognitive): Vroom/Lawler

Three assumptions of the theory:

Performance is based on outcome expectancy,

Outcomes have different values for different people, and

Effort is related to performance expectancy.

Content:

This focuses more on extrinsic behavior and less on internal or intrinsic needs.

There is a link between the effort, performance, and reward system.

Process: The measuring and reward processes are to be administered in a fair and just manner. The members should value the rewards and see the link between the performance and the reward.

Mini Theories Related to Organization Change (4 of 11)

Individual Emphasis: Job Satisfaction: Hackman and Oldham

Content: physiological states.

Process: job design, job enrichment.

8.4. Explain a variety of mini-theories related to organization change.

Individual Emphasis

Job Satisfaction: Hackman and Oldham

Content emphasis is on three primary psychological states that affect employee satisfaction: experienced meaningfulness of the work, experienced responsibility of the work, and performance feedback.

Process: Designing jobs and roles for members that enhance these three psychological states is the key of process focus. This increases motivation.

Mini Theories Related to Organization Change (5 of 11)

Individual Emphasis: Positive Reinforcement: Skinner

Emphasis on control of environment.

Content: reward system.

Process: work environment.

8.4. Explain a variety of mini-theories related to organization change.

Individual Emphasis

Positive Reinforcement: Skinner

Emphasis on control of one’s environment: Skinner’s principles dealt with operant behavior and schedules of reinforcement.

Content emphasis: Individual performance and reward system, specifically, incentives in the form of partial positive reinforcement.

The process focus is on the work environment, with the intent of controlling the conditions of how employees are rewarded.

Mini Theories Related to Organization Change (6 of 11)

Group Emphasis: The Group as the Focus of Change: Lewin

Driving and restraining forces.

Content: norms, values, forces.

Process: based on change.

8.4. Explain a variety of mini-theories related to organization change.

Group Emphasis

The Group as the Focus of Change: Lewin

Driving and restraining forces:

They are the chief inducers for change.

Drivers push an individual toward new behavior.

Restraining forces inhibit new behavior.

Content emphasis: analysis of perceived forces in the environment, norms and values of the people.

Process focus are on (1) changing group norms, (2) reducing restraining forces instead of increasing driving forces, and (3) increasing owned forces and decreasing imposed forces.

Mini Theories Related to Organization Change (7 of 11)

Group Emphasis: Changing Values Through the Group: Argyris

Espoused theory and theory in action.

Content: espoused values.

Process: actual behavior.

8.4. Explain a variety of mini-theories related to organization change.

Group Emphasis

Changing Values Through the Group: Argyris

Espoused theory and theory in action:

Inconsistency between words and actions of leaders affects the employees negatively.

The degree of congruence between espoused theory and theory in action is important.

Content emphasis: espoused values, decision substance, congruence of words and actions, McGregor’s theory X, theory Y.

Process focus is on the actual behavior of executives. The meetings could be recorded, analyzed, and reported back.

Mini Theories Related to Organization Change (8 of 11)

Group Emphasis: The Group Unconscious: Bion

Work group vs assumption group.

Main issue: authority.

Content: collective unconscious.

Process: enhance work group mode.

8.4. Explain a variety of mini-theories related to organization change.

Group Emphasis

The Group Unconscious: Bion

Work group vs assumption group: The work group tries to accomplish tasks, whereas the unconscious, or “basic assumption group,” has the purpose of destroying the group leader.

Main issue: Who has the authority and how it is exercised matters.

Content emphasis: collective unconscious, issues of authority.

Process focus is to reduce the effect of the basic assumption mode and enhance the work-group mode. This is achieved by staying focused on the task and being aware of the passage of time.

Mini Theories Related to Organization Change (9 of 11)

The Larger-System Emphasis: Participative Management: The One Best Way—Likert

Four main categories of management.

Seven behavioral functions.

Content: management style.

Process: survey of organizations.

8.4. Explain a variety of mini-theories related to organization change.

The Larger-System Emphasis

Participative Management- The One Best Way: Likert

Four main categories of management: from System 1 to 4: Autocratic management, Benevolent autocracy, Consultative management, and Participative management.

Seven behavioral functions: They differentiate the four systems: leadership, motivation, communication, interaction and influence, decision making, goal setting, and control.

Content emphasis: Management style and approach, four-system model and practicing them within each of the seven functions.

Process focus: The Survey of Organizations,” is a diagnostic questionnaire organized according to the seven functions across the four-system models. The use of survey feedback, moving toward participative management are the process focus.

Mini Theories Related to Organization Change (10 of 11)

The Larger-System Emphasis: It All Depends: Lawrence and Lorsch

No one best way.

Three forms of interface.

Content: interfaces and relationships.

Process: restructuring and resolution.

8.4. Explain a variety of mini-theories related to organization change.

The Larger-System Emphasis

It All Depends: Lawrence and Lorsch

No one best way: There is no one best way for management, for strategy, for structure, or for how to deal with systems and processes in the organization.

Three forms of interface: (1) the organization’s relationships with its external environment, (2) relationships of units within the organization, and (3) the relationship between the organizational member and the organization.

Content emphasis: organizational interfaces, especially external environment and internal structure. The nature and characteristics of these relationships are important.

Process focus: internal restructuring, conflict management and resolution.

Mini Theories Related to Organization Change (11 of 11)

The Larger-System Emphasis: The Organization as a Family: Levinson

Organization replicating family dynamics.

Maintaining equilibrium.

Content: behavior of top executive.

Process: conduct a “clinical history”.

8.4. Explain a variety of mini-theories related to organization change.

The Larger-System Emphasis

The Organization as a Family: Levinson

Organizations replicate family dynamics.

Maintaining equilibrium: It is the process of various parts of the personality integrating well.

Content emphasis: Behavior of top executive group from perspective of family dynamics and psychoanalytic theory and organizational personality or culture.

Process focus: “clinical history” of the organization, integrating disparate parts of organizational personality, and stress management.

The Content and Process of Strategic Change in Organizations

Content school and process school.

Research and theoretical perspectives.

Conclusion 1: intertwined content, process.

Conclusion 2: strategic change not obvious.

8.5. Describe the content and process of strategic change in organizations.

The Content and Process of Strategic Change in Organizations

Content school and process school:

Content school: refers to antecedents and consequences of strategic change, the what.

Process school: focuses on the role of managers, or how they seemed to have implemented strategic change.

Four research and theoretical perspectives:

Reduces the theoretical and practical gaps in understanding.

The 4 perspectives are theoretical lenses: the rational, learning, and cognitive lenses and multi-lens studies.

Rational: focuses more on content than on process.

Learning: external environment is dynamic, changing, and uncertain. Change processes are series of iterative actions that are evolutionary, not discontinuous.

Cognitive: focuses more on process than content and focuses on managerial cognitions.

Conclusion 1:

It is not possible to explain causes of behavior as being one or the other.

Conceptual distinction may be an analytical and theoretical convenience but does not reflect reality.

Conclusion 2: Strategic change in organizations is not exactly obvious, cannot be explained adequately from a single perspective, and is not a linear process.

Strategies for Effecting Change in Human Systems (1 of 4)

Understanding strategies for change.

Planned change.

Three categories of strategies.

8.6. Discuss strategies for effecting human systems.

Strategies for Effecting Change in Human Systems

Understanding strategies for change:

Strategic refers to how the organization implemented its mission or change.

It refers to content, or both content and process.

Chin and Benne: planned change: It is a conscious, deliberate attempt to change an individual, a group, an organization, or a community.

Three categories of strategies: Empirical-rational strategies, normative-reeducative, and power-coercive.

Strategies for Effecting Change in Human Systems (2 of 4)

Empirical-Rational Strategies

Assumptions: people are rational.

Strategies of the empirical-rational group.

8.6. Discuss strategies for effecting human systems.

Empirical-Rational Strategies

Assumptions: people are rational:

People will follow their rational self-interest once it is made apparent to them.

A change is proposed by someone or a group who knows the situation and the change is in the self-interest of the person or group, organization, or community which will be affected by the change.

Strategies of the empirical-rational group:

The six strategies within this empirical-rational group are:

Basic research and dissemination of knowledge through general education.

Personnel selection and replacement.

Systems analysts as staff and consultants.

Applied research and linkage systems for diffusion of research results.

Utopian thinking as a strategy of changing.

Perceptual and conceptual reorganization through the classification of language.

Strategies for Effecting Change in Human Systems (3 of 4)

Normative-Reeducative Strategies

Assumptions: people committed to norms.

Common aspects of the group.

Strategies in normative-reeducative group.

8.6. Discuss strategies for effecting human systems.

Normative-Reeducative Strategies

Assumptions: People conform and are committed to sociocultural norms like individual beliefs, attitudes, and values.

Common aspects of the group:

The client system is heavily involved in the change process, change is not imposed.

The problem the client is facing could be related to norms, values, and attitudes, thus requiring reeducation.

Nonconscious factors may need to be surfaced.

Applying methods and concepts from the behavioral sciences is primary.

Strategies in normative-reeducative group:

Improving the problem-solving capabilities of a system.

Releasing and fostering growth in the persons who make up the system to be changed.

Strategies for Effecting Change in Human Systems (4 of 4)

Power-Coercive Strategies

Strategies based on power.

Sources of power.

Three strategies of the group.

Steps in an organization change.

8.6. Discuss strategies for effecting human systems.

Power-Coercive Strategies

Strategies based on the use of power: The strategies is based on the use of power in the form of political, nonviolent resistance, etcetera.

Sources of power: Sources are more likely to be political and economic sanctions for lack of compliance to the proposed change.

Three strategies of the group:

Nonviolence.

Use of political institutions.

Changing by the recomposition and manipulation of power elites.

Steps in an organization change:

Changing the “high-impact elements”, transformational factors, is important to show that the implementation will be substantive and enduring.

Organization change begins with sudden bursts of a radical nature followed by comparatively “sedate progress”, transactional processes, toward the change goal, and that sequence is highly important.