Unit VIII Discussion Board Question OT&B

BBA 3451, Organizational Theory and Behavior 1

Course Learning Outcomes for Unit VIII Upon completion of this unit, students should be able to:

8. Recommend strategies to overcome resistance to change. 8.1 Explain how the organizational culture can be used to help employees through change. 8.2 Explain ways that a leader can help motivate employees through change.

Course/Unit Learning Outcomes

Learning Activity

8.1

Unit Lesson Chapter 14: Organizational Culture Chapter 15: Organizational Change Unit VIII Podcast Unit VIII Final Project

8.2

Unit Lesson Chapter 14: Organizational Culture Chapter 15: Organizational Change Unit VIII Podcast Unit VIII Final Project

Reading Assignment Chapter 14: Organizational Culture Chapter 15: Organizational Change Click here to access the Unit VIII Podcast. (Click here to access the Unit VIII Podcast transcript.)

Unit Lesson Welcome to the final unit of the course. In the podcast below, Chantell Cooley and Dayna Fuller join Robert Mayes, and the three discuss organizational change and some final thoughts as you wrap up your last assignment. Click here to access the Unit VIII Podcast. (Click here to access the Unit VIII Podcast transcript.) Strategies to Overcome Resistance Why is there a need for change? Consider your environment, the business environment, and the global environment. All of these entities face internal and external forces. On a personal level, internal forces involve productivity in our daily lives at home and in the workplace. Factors include job satisfaction, handling conflict, dealing with leadership requests, and dealing with unmet needs. From a business standpoint, the internal factors are the same—dealing with absenteeism, handling sexual harassment issues, and dealing with conflict resolution. Now, think about internal factors on a global level such as dealing with budgets, national debt, national health care, and politics. Quite challenging, right? What about the external forces such as demographics (e.g., age, education, gender, immigration policy) and technological factors (e.g., automation and information technology)? Additionally, there are market dynamics that present challenges due to international customer preferences, domestic and international competition, and mergers and acquisitions (to remain competitive). Finally, there are political pressures (e.g., terrorism, war, values of each political party),

UNIT VIII STUDY GUIDE

Strategies to Overcome Resistance to Change

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all which do not have easy solutions. You may be asking yourself where you would even start to consider resolutions. Now that the framework is set, we can see the big picture, both internally and externally, of the factors that drive change. Here is a great example that reflects the internal and external challenges. Approximately 40 years ago, the Organization of the Petroleum Exporting Countries (OPEC) created the “oil weapon,” which was an embargo that forced rationing of gasoline by increasing prices by large quantities. This embargo demonstrated serious issues within American energy security (Helman, 2013). As you can see, this was a huge external force. According to Holcomb (1978), the impact on the auto industry was devastating with a 22.7% reduction in growth. Please note that oil affects more than automobiles in an economy. It affected chemical production, production of plastics, rubber, petroleum refining, construction, electric, gas, and sanitary services (Holcomb, 1978). At the time, Detroit automakers were making large automobiles that averaged six to 10 miles per gallon. What the embargo caused was a change in consumer sentiment and needs, as they desired automobiles that would get double the miles per gallon. Their answer was simple— buy the Japanese import. The bottom line was that Detroit automakers had to change to remain competitive with the Japanese imports. They had to change automotive design, automotive size, and automotive gas efficiency. In addition, there was a change in policy for the nation with gas rationing and speed limits on highways as they were reduced from 70 mph to 55 mph to conserve fuel. Reflecting on the OPEC oil embargo in the 1970s, we can see the direct impact on our economy, on the future of American energy policy (horizontal drilling and fracking), and on corporate America business operations and consumer behavior. Models and Strategies Used to Deal With Change The oil embargo was quite the disruptor; it changed American energy policy, it changed consumer behavior, and it changed American manufacturing. All these changes affected America’s competitive advantage. Given the dramatic disruptor, where do organizations and individuals start to change their behavior and actions? Lewin and Kotter both created models to assist in change leadership and change management operations. Models are frameworks, but they are not the answer to the problem. Models provide a framework for individuals to use to become organized to focus on the key issues that are disruptors and to logically find solutions. Additionally, they are an outline for a leader or group to follow. They bring up points of action to take and things to consider. However, leaders and teams never want to put themselves in a box with limited outlines or ideas. Hence, models provide a path of critical thinking that can be modified for any given situation and leadership style. Lewin’s model includes three stages, which include unfreezing, changing, and refreezing. The chart below outlines Lewin’s model and includes questions to consider using the oil embargo example.

Additionally, Lewin’s model provides five basic steps to keep the change agent on track as well as strategies to deal with change and resistance (McShane & Von Glinow, 2018).

 Absorb the new, and unlearn the old: The challenge of taking on something new can be daunting, but with changed attitudes and behaviors, adaptation occurs. The strategy should focus on communication and learning.

Lewin’s model in relation to oil embargo

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 Provide incentives and motivation: Why are we doing this? That is the biggest question individuals, corporations, and businesses will have. Therefore, communication and selling the “end state” is key. Paint the picture of where we are—if we do not change and adapt, we will not reach our end goal. The strategy should focus on communication and coercion.

 People are a key factor: People are the engine room of the change vessel. Without a unified effort in the engine room, the change machine does not run. It stalls, it stops, and it rusts. The strategy should center on employee involvement, negotiation, and stress management.

 Overcome resistance: There will be resistance or reluctance to join the change effort. Change means work. Change means new ways of doing things. The way to overcome this is through leadership that champions the change and, in a metaphorical sense, carries the change torch. Leadership also needs to communicate the end state and the impact on everyone. The strategy should focus on communication, learning, increased employee involvement (strength in numbers), stress management, negotiation, and coercion.

 Emphasize the change: Acting on change is one thing. Reinforcing and embedding it into daily operations is paramount. Reinforcing the new attitudes, perspectives, values, and behaviors keeps the change process moving forward and reduces resistance. The strategy should center on communication.

Kotter’s Eight Steps of Change to Business Operations This material is not in the textbook; however, it should be. Kotter’s eight steps of change provide a great framework for change as it is a logical process that leaders, managers, and employees can embrace regarding how change will occur. The material can be referenced from the Pollack and Pollack (2015) paper “Using Kotter’s Eight Stage Process to Manage and Organizational Change Program: Presentation and Practice.” Kotter’s eight-step process builds on Lewin’s change model and force field analysis (developed over 50 years ago) that you have read about in the textbook. Kotter’s model is more recent with creation and application beginning in 1996. As you review each of the eight steps (in the interactive lesson below), you can see how they can be integrated with Lewin’s change model as well as with McShane and Von Glinow’s (2018) methods and strategies to overcome resistance. Each step is a strategy. A strategy has to have an end state. Kotter’s model addresses how to reach the end state through leadership, management, and employee actions (Kotter, 1995). To learn about the specifics of each step of Kotter’s model, click here and view an interactive presentation. Click here to access the transcript. Looking at Kotter’s eight-step process, how would you integrate it as a leader into the first Gulf War or Persian Gulf War? When Saddam Hussein invaded and attacked Kuwait in 1990, the response was a coalition of countries that worked together on protecting neighboring countries from more aggressive attacks (Operation Desert Shield). Afterward, the United Nations (UN) placed sanctions on embargos and economic sanctions on Iraq; however, they did not work. The United States and coalition forces developed a plan of attack and strategy to eradicate the dictator from the control of this area and the oil fields. Iraq did not comply, hence Operation Desert Storm was the solution.

 Creating a sense of urgency: Iraq invaded Kuwait and threatened the region.

 Creating a guiding coalition: The UN and coalition forces were called upon.

 Developing a strategy: Commander and Chief of Operations was General Norman Schwartzkopf who orchestrated the strategy with other coalition leaders.

 Communicating the change: The plan and strategy took 5 months from Iraq invasion to Operation

Desert Storm to take place (August 1990–January 1991).

 Consolidating wins: Iraqi soldiers surrendering numbered in the thousands.

 Anchor new approaches in the culture: The United States did not realize the impact of multiple factions and the impact of religion in the region (Shiites, Baath Party, and the Sunnies) that resulted in a failure, which was not political but based on religion.

Think about the oil embargo mentioned earlier in the lesson. How do you see the eight steps used? Review the bullets below for the answer.

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 Sense of urgency: Approximately 40 years ago, OPEC created the oil weapon, and the embargo demonstrated serious issues within American energy security (Helman, 2013). Americans were switching to smaller Japanese cars with more fuel mileage.

 Creating a coalition: The bottom line was that Detroit automakers had to change to remain competitive with the Japanese imports.

 Strategy and vision: Detroit had to change automotive design, automotive size, and automotive gas efficiency. In addition, there was a change in federal policy for the nation with gas rationing and speed limits on highways as they were reduced from 70 mph to 55 mph to conserve fuel

 Communicating the change: Detroit CEOs took action to retool engines and car efficiency, and the K-

Car was developed by Chrysler motors. Speed limits were enforced with state highway patrol giving out tickets for speeds over 55 miles per hour

 Empowerment: CEOs in the Detroit automotive industry began to compete against the foreign import

market with smaller cars and higher miles per gallon.

 Generating short-term wins, consolidation and culture change: Detroit survived the challenge; however, over the decades, with the increased U.S. oil exploration and cheaper gas, consumers have flocked back to large SUVs and cars that are more comfortable and luxurious.

Where could you use the eight-step process with change in your life or where you work? The Impact of Organizational Culture and Employee Motivation to the Change Process Before we jump into how employees are motivated toward change, let’s look at the artifacts and elements of organizational culture according to Exhibit 14.1 on page 388 of your course textbook. The items in the exhibit include physical structures (e.g., the structures at Ivy League schools use old renaissance architecture, have ivy growing on the walls, and have statues of their founders), language, rituals and ceremonies, stories and legends (that carry forward the history and accomplishments that the leaders and employees faced), beliefs, values, and ideology. This is the foundation of organizational culture. Around it, leadership communicates the language, values, end state, and behaviors expected that contribute to the rituals, ceremonies, legends, and stories that keep the culture alive. The point here is that these artifacts contribute to the need for change and the embedded motivation that the organizational culture expects from its employees. From these artifacts, shared assumptions, and ingrained employee commitment is the integration of culture and change characteristics. McShane and Von Glinow (2018) provide a great example of the dimensions and characteristics of organizational culture in Exhibit 14.2 on page 390 of your course textbook that integrate nicely into the change models discussed earlier. Go back earlier in the lesson, and look at the Gulf War example of change. Think about that reflection and the challenges with culture that might have taken place between so many coalition countries, languages, and behaviors. Remember, the engine room of change is people. If people are not motivated to do their part, then the change effort stagnates; it comes to a standstill. The exhibit displays eight characteristics, each which embrace motivation and integration into the change process, and change success (McShane & Von Glinow, 2018).

1. Innovation: Creating a sense of urgency, taking on new practices to overcome failing methods 2. Stability: Creating new embraced processes, employee commitment, buy-in, learning 3. Respect for people: Empowering change, trust, rewards, praise, and security 4. Outcome orientation: Refreezing and delivering high expectations with new processes and embedded

actions 5. Attention to detail: Being results-oriented and delivering wins and unity 6. Team orientation: Emphasizing team unity and communication as well as focusing on the strategy,

change mission, and end state 7. Aggressiveness: Having a competitive advantage

Reflection This course started with the analogical example that compared a human organism to organizational behavior. Discussion displayed how an organism relies on multiple parts that all work together to keep the organism functioning correctly. With this unit, you can see how change is a part of history, from the challenges placed on the U.S. economy, government, and individuals involved with the oil embargo to the current state of affairs we see today in the U.S. government with passing new laws and showing unity. This unit outlined two major

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change processes—Lewin’s change model (unfreeze, change, refreeze) and Kotter’s eight-step process to change.

References Helman, C. (2013, October). Oil billionaire Harold Hamm on the 40th anniversary of the OPEC Embargo.

Forbes, 19. Retrieved from http://web.b.ebscohost.com.libraryresources.columbiasouthern.edu/ehost/detail/detail?vid=4&sid=bb2 531ed-ddee-4f20-a9db- 7cbc8e5fd746%40sessionmgr104&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#AN=9165 9254&db=bth

Holcombe, R. G. (1978). An evaluation of some micro- economic consequences of a future oil embargo.

Policy Sciences, 10(2/3), 207–220. Retrieved from https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc t=true&db=bth&AN=16850511&site=ehost-live&scope=site

Kotter, J. P. (1995, April). Leading change: Why transformation efforts fail. Harvard Business Review.

Retrieved from https://cb.hbsp.harvard.edu/resources/marketing/docs/95204f2.pdf McShane, S. L., & Von Glinow, M. A. (2018). Organizational behavior: Emerging knowledge, global reality

(8th ed.). New York, NY: McGraw-Hill Education. Pollack, J., & Pollack, R. (2015). Using Kotter's eight stage process to manage an organisational change

program: Presentation and practice. Systemic Practice & Action Research, 28(1). Retrieved from https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc t=true&db=bth&AN=100781226&site=ehost-live&scope=site

Suggested Reading In order to access the following resources, click the links below.

As this unit is focused on change, you are encouraged to research and review some noteworthy examples of change management. The webpage below provides you with five examples Arnold, P. (2016). The 5 greatest examples of change management in business history. Retrieved from

http://www.managers.org.uk/insights/news/2015/july/the-5-greatest-examples-of-change- management-in-business-history

This next example, a first-person account written by Greg Brenneman, explains how he helped Continental Airlines through a challenging change. Brenneman, G. (1998, October). Right away and all at once: How we saved continental. Harvard Business

Review. Retrieved from https://hbr.org/1998/09/right-away-and-all-at-once-how-we-saved-continental This next article expands upon Kotter’s eight step process to change, which was discussed within the unit lesson: Reissner, S. C., Pagan, V., & Smith, C. (2011). ‘Our iceberg is melting’: Story, metaphor and the management

of organisational change. Culture & Organization, 17(5), 417-433. Retrieved from https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc t=true&db=bth&AN=69838611&site=ehost-live&scope=site

During the unit lesson, the 1973 Arab Oil Embargo was discussed as an example for change. The below article covers that example in greater detail:

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Vavra, B. (2000). 1973: The Arab Oil Embargo transforms the world. National Petroleum News, 92(12), 18. Retrieved from https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc t=true&db=bth&AN=3792052&site=ehost-live&scope=site

Learning Activities (Nongraded) Nongraded Learning Activities are provided to aid students in their course of study. You do not have to submit them. If you have questions, contact your instructor for further guidance and information. Now that your course project is complete, consider sharing your project with your peers in the Student Breakroom. Additionally, consider reading the projects of your peers.