MGT-521: Managing Dynamic Environment-CT

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SEU_MGT521_Mod07_PPT_Ch06.pptx

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Chapter 6: Navigating Organizational Politics and Culture

Chapter Overview

Change leaders need to understand the informal components of organizations—culture and power

Understanding the cultural and power dynamics in an organization is critical to a successful change

Force Field Analysis and Stakeholder Analysis are two key tools to analyze the informal organizational system and how to change it

Change leaders need to know themselves. They are both stakeholder and key actors in the process

The Change Path Model

Navigating Organizational Politics and Culture

Power Dynamics

Perception of change and the change equation

Force field analysis

Stakeholder analysis

Awakening

Chapter 4

Acceleration

Chapter 9

Institutionalization

Chapter 10

Mobilization

Chapters 5 through 8

Power Dynamics: Sources of Individual Power

Position or authority power

Network power

Knowledge power

Expert power

Information power

Personality power

Power Dynamics: Other Sources of Power

Ability to cope with and absorb environmental uncertainty

Low Substitutability

What you have to offer is scarce and not easy substituted for

Centrality to decision making, resources critical to strategy or survival, or to work that others rely on

Resource, Process & Meaning Power

Resource Power

The access to valued resources in an organization

Process Power

The control over formal decision making arenas and agendas

Meaning Power

The ability to define the meaning of things. Thus, the meaning of symbols and rituals and the use of language provide meaning power

Usage Frequency of Different Power Tactics

	When Managers Influence Superiors	When Managers Influence Subordinates
Most Popular Tactic Least Popular Tactic	Using & Giving Reasons	Using & Giving Reasons
	Developing Coalitions	Being Assertive
	Friendliness	Friendliness
	Bargaining	Developing Coalitions
	Being Assertive	Bargaining
	Referring to Higher Authority	Referring to Higher Authority
		Applying Sanctions

Toolkit Exercise 6.2 Assessing Your Power

What sources of power are you comfortable with and which do you have access to?

Consider a particular context that you regularly find yourself in. What could you do to increase the power you have available? What types of power are involved?

How do the key players, structures, and systems in the particular context influence the types and amount of power available to you? How could you change this?

Toolkit Exercise 6.2 Where Does Power Lie in Your Organization?

Pick an organization you know well:

What factors lead to power? Which departments carry more weight? What behaviors are associated with having power?

Think of a change situation it faced. What types of power were at play?

In Hardy’s terms, who controlled resources? Who had process power? Meaning power?

Who had “yea-saying” and “nay-saying” power? On what issues?

If you examine Table 6.1 in the book, what types of power were used most often? What types are you most comfortable using when you are attempting to influence others?

When Does Change Occur?

Change Occurs When:

Perceived Benefits

of Change

Perceived Cost

of Change

Modified Change Equation

Perception of Dissatisfaction

with the Status Quo

Perception of the Benefits

of Change

Perception of the Probability

of Success

Perceived Cost of Change

Change Occurs When:

Reactions to Change

People react to change for many reasons

Don’t equate support with friends and resistance with enemies

It may be ambivalence and not resistance you’re seeing

People experience ambivalence and/or resist for many reasons. Listen carefully so you can learn and refine initiatives

Don’t be blind to learning opportunities to refine analysis, avoid problems areas, and strengthen initiatives

The prospects of moving someone from resistance to support increase when they feel their concerns and insights have been understood and received

Resistance to Change

Resistance to change is normal and there are often good reasons for it

Don’t assume resistance is “bad” or “negative”. It might be helpful

Resistance usually contains information that is useful—people have reasons that they resist change

Reasons for Resistance

Self-interest

Misunderstanding and lack of trust

Different assessments of the consequences

Low tolerance for change

Organizational / Individual Consequences & Support for Change

Perceived Impact of the Change on the Organization	Perceived Impact of the Change on the Individual	Direction of Support of the Change
Positive	Positive	Strong support for change
Positive	Negative	Indeterminate, with possible resistance
Neutral	Positive	Support for change
Neutral	Negative	Resistance to change
Negative	Positive	Indeterminate support for change
Negative	Negative	Strong resistance to change

Perceived Impact of Change

Consider the impact of a change on an organization you know and consider the impact on the individuals concerned.

Were the impacts on the organization and affected individuals both positive? Were they perceived that way?

What were the perceived costs of change? Were the perceptions accurate? How could they be influenced?

What were the perceived benefits? What was the probability of achieving these benefits? Were people dissatisfied with the present state? What were the costs of not changing?

Were significant costs incurred prior to gaining benefits? Why did they take the risk (incurring definite costs but indefinite benefits)?

Force Field Analysis

Desired State

Current State

Restraining Forces

Driving Forces

Forces For and Against Change

No change

Strong

Weak

CHANGE FORCE

Change

Sporadic

Change

Discontinuous

Change

(Breakpoints)

Continuous

Change

Status Quo

Dominates

Change

Dominates

Stakeholder Analysis

A stakeholder is…

Anyone who is influenced or could influence the change you wish to make happen.

A stakeholder analysis is…

The process of understanding of the motives, power base, alliances, goals, etc. of all crucial stakeholders.

Stakeholder Analysis (cont.)

Who are the stakeholders?

What do they want?

Do they support you? Why? Why not?

What prevents them from supporting you?

Who influences these stakeholders? Can you influence the influencers?

Can stakeholders be co-opted or involved in a positive way?

Stakeholder Management: Savage et al.

High

Low

Stakeholder Potential Threat

Stakeholder

Potential

For

Cooperation

Mixed Blessing:

Collaborate

Supportive:

Involved

Non-Supportive:

Defend

Marginal:

Monitor

Stakeholder Map

Stakeholder # 1

(issues, needs, etc.)

Stakeholder # 2

(issues, needs, etc.)

Stakeholder # 3

(issues, needs, etc.)

Stakeholder # 4

(issues, needs, etc.)

Stakeholder # 5

(issues, needs, etc.)

Stakeholder # 6

(issues, needs, etc.)

Stakeholder # 7

Stakeholder # 8

Change Agent

Stakeholder Roles in Networks

Central Connectors

People who link most people in an informal network with each other

Boundary Spanners

Who connect an informal network with other parts of the organization or other organizations

Information Brokers

Who join the different sub-groups together (and prevent fragmentation)

Peripheral Specialists

Who have specialized expertise (and need freedom from connections to maintain that expertise)

Dimensions of Networks

Source of information

Inside or outside of the functional area

Social restrictions

Tenure, hierarchy, and location determining the network

Source of connections

Planned interactions or happenstance hallway encounters

Quality of the connections

Relationship quality (short vs. long term, level of trust and confidence in the information, etc.)

Stages in the Change Process

Initial Awareness

Interested in the Change

Wanting the Change to Happen

Ready to Take Action

General Orientation Towards Change

Innovators

Early Adopters

Early Majority

Late Majority

Late Adopters

Non-adopters

Similar to consumer adaptation profiles in marketing, except you are urging the adoption of a change, not a product or service

Type of Commitment Exhibited

Opposed to the change

Let it happen

Help it happen

Make it happen

Managing the Strategic Consensus

	High Understanding of the Change	Low Understanding of the Change
High, Positive Commitment to the Change	Strong Consensus	Blind Devotion
Low, Positive Commitment to the Change	Informed Sceptics	Weak Consensus
Negative Commitment to the Change	Informed Opponents	Fanatical Opponents

Analysis of the Stakeholders’ Readiness to Take Action

Jones

Smith

Douglas

Green

Etc.

Stakeholder’s

Name

Aware

Interested

Desiring Change

Taking Action

Predisposition to Change: innovator, early adopter, early majority, late majority, laggard

Current Commitment Profile: resistant, ambivalent, neutral, supportive or committed

Toolkit Exercise 6.3 Force Field Analysis

Consider an organization change situation you are familiar with:

What are the forces for change? Who is championing the change? How strong and committed are these forces (Who will let it happen; who will help it happen; who will make it happen)?

How could these forces be augmented or increased? What forces could be added to those that exist?

What are the forces that oppose change?

How could these forces be weakened or removed? What things might create major resentment in these forces?

Can you identify any points of leverage you could employ to advance the change?

Stakeholder Analysis Checklist

Who are the key stakeholders?

Is there a formal decision-maker with authority to authorize or deny the change project? What are his/her attitudes to the project?

What is the commitment profile of stakeholders? Do a commitment analysis for each stakeholder.

Are they typically initiators, early adopters, early majority, late majority, or laggards when it comes to change?

Why do stakeholders respond as they do? Does the reward system drive them to support or oppose your proposal? What consequences does your change have on each stakeholder? Do the stakeholders perceive these as positive, neutral or negative?

Stakeholder Analysis Checklist (cont.)

What would change the stakeholders’ views? Can the reward system be altered? Would information or education help?

Who influences the stakeholders? Can you influence the influencers? How might this help?

What coalitions might be formed amongst stakeholders? What alliances might you form? What ones might form to prevent the change you wish?

By altering your position, can you keep the essentials of your change and yet satisfy some of the needs of those opposing change?

Can you appeal to higher order values and/or goals which will make others view their opposition to the change as petty or selfish?

Summary

Change agents need to understand the power structures and people in their organization—much of which may be informal and emergent in nature

Ambivalence to change is a natural reaction. Resistance to change is likely (but not inevitable) and there is potential to use ambivalence and resistance in a positive way. People react to change for good reasons and change agents need to know those reasons.

Force field analysis helps plot the major structural, system and people forces at work in the situation and to anticipate ways to alter these forces.

Stakeholder analysis helps us understand the interactions between key individuals and the relationships and power dynamics that underpin the web of relationships