homework
ag98
Week18Leadership_culture_and_organisational_change.pptHRM4413
People Management
& Development in Business
Lauren Brennan
Week 20
Leadership, Culture and Change
Learning outcomes
- Appreciate the importance of the effective management of change as a core integrated business activity.
- Critically evaluate several models of change management.
- Understand the relationship between organisational change, leadership and culture.
- Reflect on your personal and professional experience of change.
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The global perspective
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We will consider this topic from a global perspective.
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Key resources
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(1) Nature of organisational change
The concept of "change management" is a familiar one in most businesses today.
But how businesses manage change (and how successful they are at it) varies enormously depending on the nature of the business, the change and the people involved.
And a key part of this depends on how well people within it understand the change process.
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https://www.mindtools.com/pages/article/newPPM_94.htm
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Change: Levels of study
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Adapted from: Mullins, L. (2013) Management and organisational behaviour. (11th Edition) Pearson: Harlow.
The individual
The group
The organisation
The environment
Nature and purpose of the organisation
Influences on behavior in organisations
Underpinning contributions of psychology, sociology and anthropology
Each organisaion is different in regard to change
Nature and purpose of the organization can influence behavior in the organization
Psychology, sociology and anthropology play a part in impacting behavior in organisations
Anthropology is the scientific study of humans, human behavior and societies in the past and present.
Change then impacts the individual: the group: the organisation: the environment
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Multidisciplinary
- Psychology seeks to measure, explain, and sometimes change behaviour of humans and other animals.
- Sociology studies people in relation to their social environment or culture. Can be the study or group behaviors in organisations.
- Anthropology is the study of societies to learn about human beings and their activities. Understanding differences in values, attitudes and behaviors in people in different countries and within difference contexts.
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Robbins, S. & Judge, T. (2016) Organisational behaviour. Pearson: New York.
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Levels of influence
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Cross, C. & Carbery, R. (2016) Organisational behaviour. Palgrave: London.
Levels of influence on change.
Change influences and can be influenced by each of these.
Are any more or less impacted by change, or more or less of an influence on change?
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Change presents challenges and opportunities
- Globalisation: increased foreign assignments, managing across time zones, managing virtual teams, changing workplace demographics, global careers, people living longer ...
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The reality according to HBR …
- “70% of all change initiatives fail. But the odds turn in your company's favor once you understand that change is a multi-stage process--not an event.” (2011)
- https://hbr.org/product/recommended/an/12599E-KND-ENG?referral=02527&cm_vc=rr_item_page.articles
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The reality according to McKinsey Consulting
- What are your observations after watching the video?
- https://www.youtube.com/watch?v=k69i_yAhEcQ&feature=youtu.be
HBR- Harvard Business Review
Question:
Why do 70% of change initiatives fail?
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The nature of change
Change management as a planned process:
- Change can be transformational, at the one extreme, and require a complete rethink of what an organisation does and what it stands for.
- At the other extreme, it can also be small-scale and incremental (Burnes, 2004), for instance, restructuring just one department, upskilling part of the workforce, or changing some internal processes
- Premised on rational planning perspective on change which suggests that change can be actively ‘managed’ by organisational members (Burnes, 2004)
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By, R.T. (2005) Organisational change management: A critical review. Journal of Change Management. Vol. 5(4): 369 – 380. December.
Stewart, J. and Kringas, P. (2003) Change management - strategy and values in Six Agencies from the Australian Public Service. Public Administration Review. October.
PLANNED VS EMERGENT CHANGE
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The nature of change
Change management as an emergent process:
- Change is an open-ended process of adaptation and learning, with a focus on organisations becoming ready and able to change should the need arise (By, 2005).
- Rather than focusing on change as a programme to be managed organisations need to enhance their general readiness for change through, for instance, regularly scanning the environment and fostering a culture of knowledge-sharing.
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By, R.T. (2005) Organisational change management: A critical review. Journal of Change Management. Vol. 5(4): 369 – 380. December.
Stewart, J. and Kringas, P. (2003) Change management - strategy and values in Six Agencies from the Australian Public Service. Public Administration Review. October.
Question:
Has anyone experienced planned or emergent change?
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(2) John Kotter (1996; 2014)
- Over four decades, Dr. John Kotter observed countless leaders and organisations as they were trying to transform or execute their strategies.
- Since its introduction, Kotter has expanded the scope of the Eight-Step Process from its original version.
- Both versions are relevant and effective today, but they are designed to serve different contexts and objectives.
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John Kotter’s Eight-Step Model – Leading Change
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John Kotter (2014)
Accelerate change
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John Kotter 1996 and 2014
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| Leading Change: 8-Step Process (1996) | Accelerate: 8-Step Process (2014) | |
| 1 | Respond to, or affect episodic change in rigid, finite, and sequential ways | Run the steps concurrently (at same time) and continuously |
| 2 | Drive change with a small, powerful core group | Form a large volunteer army from up, down and across the organisation to serve as the change engine |
| 3 | Function within a traditional hierarchy | Function in a network flexibly and agilely outside, but in conjunction with, a traditional hierarchy |
| 4 | Focus on doing one new thing very well in a linear fashion over time | Constantly seek opportunities, identify initiatives to capitalise on them, and complete them quickly |
Episodic change, according to Weick and Quinn (1999), is 'infrequent, discontinuous and intentional'.
Rigid: Not flexible, not easy to change
Agile: To move quickly and easily
The way that we manage change is now different. More proactive than reactive.
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John Kotter’s (2011) hearts and minds
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- What are your observations after watching this video?
- https://www.youtube.com/watch?v=1NKti9MyAAw
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Kurt Lewin
Lewin’s model is known as Unfreeze – Change – Refreeze, which refers to the three-stage process of change that he describes.
Lewin, a physicist as well as a social scientist, explained organisational change using the analogy of changing the shape of a block of ice.
If you have a large cube of ice but realise that what you want is a cone of ice, what do you do? First you must melt the ice to make it amenable to change (unfreeze). Then you must mould the iced water into the shape you want (change). Finally, you must solidify the new shape (refreeze).
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https://www.mindtools.com/pages/article/newPPM_94.htm
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Kurt Lewin (1951)
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Kurt Lewin’s Phase 1: Unfreeze
Preparing: Preparing the organisation to accept that change is necessary, which involves break down the existing status quo before you can build up a new way of operating.
The message: Key to this is developing a compelling message showing why the existing way of doing things cannot continue.
The foundations: To prepare the organisation successfully, you need to start at its core – you need to challenge the beliefs, values, attitudes, and behaviours that currently define it.
The controlled crisis: By forcing the organisation to re-examine its core, you effectively create a (controlled) crisis, which in turn can build a strong motivation to seek out a new equilibrium.
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https://www.mindtools.com/pages/article/newPPM_94.htm
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Kurt Lewin’s Phase 2: Change
Resolving uncertainly: After the uncertainty created in the unfreeze stage, the change stage is where people begin to resolve their uncertainty and look for new ways to do things. People start to believe and act in ways that support the new direction.
Time: The transition from unfreeze to change does not happen overnight: People take time to embrace the new direction and participate proactively in the change.
Understanding the benefits: In order to accept the change and contribute to making it successful, people need to understand how it will benefit them.
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https://www.mindtools.com/pages/article/newPPM_94.htm
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Kurt Lewin’s Phase 3: Refreeze
When the changes are taking shape and people have embraced the new ways of working, the organisation is ready to refreeze.
The outward signs of the refreeze are a stable organisation chart, consistent job descriptions, and so on. The refreeze stage also needs to help people and the organisation internalise or institutionalise the changes.
This means making sure that the changes are used all the time, and that they are incorporated into everyday business.
With a new sense of stability, employees feel confident and comfortable with the new ways of working.
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https://www.mindtools.com/pages/article/newPPM_94.htm
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Kurt Lewin (1951)
| Unfreeze | Change | Refreeze |
| Preparing: Breaking down the existing status quo before you can build up a new way of operating. The message: Developing a compelling message showing why the existing way of doing things cannot continue. The foundations: To prepare the organisation successfully, you need to start at its core – you need to challenge the beliefs, values, attitudes, and behaviours that currently define it. The controlled crisis: By forcing the organization to re-examine its core, you effectively create a (controlled) crisis, which in turn can build a strong motivation to seek out a new equilibrium. | Resolving uncertainly: After the uncertainty created in the unfreeze stage, people begin to resolve their uncertainty and look for new ways to do things. People start to believe and act in ways that support the new direction. Time: The transition from unfreeze to change does not happen overnight: People take time to embrace the new direction and participate proactively in the change. Understanding the benefits: In order to accept the change and contribute to making it successful, people need to understand how it will benefit them. | Embracing the new ways: When the changes are taking shape and people have embraced the new ways of working, the organisation is ready to refreeze. Internalise/institutionalise the changes: The outward signs of the refreeze are a stable organization chart, consistent job descriptions, and so on. The refreeze stage also needs to help people and the organisation internalise or institutionalise the changes. This means making sure that the changes are used all the time, and that they are incorporated into everyday business. New ways of working: With a new sense of stability, employees feel confident and comfortable with the new ways of working. |
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Kurt Lewin’s Force-field Analysis
- What are your views about the use of this model in change management?
- https://www.youtube.com/watch?v=tRAKmzsYLG8
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Force field analysis: techniques used to determine forces that are for and against change.
Driving forces: encourage change
Restraining forces: make change more difficult
Equilibrium: Result of the driving and restraining forces
Goes on to discuss management steps for change
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Curve Change Theory
The change curve
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Curve Change Theory
The change curve
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Stage 1: When a change is first introduced, people's initial reaction may be shock or denial, as they react to the challenge to the status quo.
https://www.mindtools.com/pages/article/newPPM_94.htm
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Curve Change Theory
The change curve
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Stage 2: Once the reality of the change starts to hit, people tend to react negatively. They may fear the impact; feel angry; and actively resist or protest against the changes. As a result, the organisation experiences disruption which, if not carefully managed, can quickly spiral into chaos.
https://www.mindtools.com/pages/article/newPPM_94.htm
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Curve Change Theory
The change curve
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Stage 3: People stop focusing on what they have lost. They start to let go, and accept the changes. They begin testing and exploring what the changes mean, and so learn the reality of what's good and not so good, and how they must adapt.
https://www.mindtools.com/pages/article/newPPM_94.htm
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Curve Change Theory
The change curve
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Stage 4: People not only accept the changes but also start to embrace them: They rebuild their ways of working. Only when people get to this stage can the organisation really start to reap the benefits of change.
https://www.mindtools.com/pages/article/newPPM_94.htm
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Curve Change Theory
The change curve
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Stage1: When a change is first introduced, people's initial reaction may be shock or denial, as they react to the challenge to the status quo.
Stage 2: Once the reality of the change starts to hit, people tend to react negatively. They may fear the impact; feel angry; and actively resist or protest against the changes. As a result, the organisation experiences disruption which, if not carefully managed, can quickly spiral into chaos.
Stage 3: People stop focusing on what they have lost. They start to let go, and accept the changes. They begin testing and exploring what the changes mean, and so learn the reality of what's good and not so good, and how they must adapt.
Stage 4: People not only accept the changes but also start to embrace them: They rebuild their ways of working. Only when people get to this stage can the organisation really start to reap the benefits of change.
https://www.mindtools.com/pages/article/newPPM_94.htm
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(3) Cracking the code of change: Theory E and Theory O
Theory E: Emphasising economic value – as measured only by shareholder returns. This ‘hard’ approach boosts returns through economic incentives, drastic layoffs, and restructuring.
Theory O: A softer approach focuses on organisational capability - developing corporate culture and human capability, patiently building trust and emotional commitment to the economy through teamwork and communication.
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Cracking the code of change
Do you see value in E and/or O?
How might E and O be combined?
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Cracking the code of Change
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Nohria, N. & Beer, M. (2000) Cracking the code of change. Harvard Business Review. HBR Publishers: Boston. May-June 2000.
How to combine theories E and O
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Cracking the code of change
- Theory E change strategies usually involve heavy use of economic incentives, drastic layoffs, downsizing, and restructuring. Shareholder value is the only legitimate measure of corporate success.
- Theory O change strategies are geared toward building up the corporate culture: employee behaviors, attitudes, capabilities, and commitment. The organisation’s ability to learn from its experiences is a legitimate yardstick of corporate success.
- To thrive and adapt in the new economy, companies must simultaneously build up their corporate cultures and enhance shareholder value; the O and theories of business change must be in perfect step.
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Nohria, N. & Beer, M. (2000) Cracking the code of change. Harvard Business Review. HBR Publishers: Boston. May-June 2000.
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Reflecting on your personal and professional experience of change in the organisational context, what has worked well, what has not and why?
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(3) Lessons learned
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What is organisational culture
“The collective programming of the mind that distinguishes the members of one category of people from another”
(Hofstede)
The process that each of us has been subjected to since birth, influenced by:
Parents; teachers, family; friends; regional concepts; national concepts; organisational structures; society
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Change is impacted by and/or impacts organisational culture
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What is organisational culture
One of the most cited definitions: In his book Organizational Culture and Leadership, Edgar Schein (1992, p.12) defines culture as:
‘a pattern of shared basic assumptions that the group learned…that has worked well enough to be considered valid and therefore, to be taught to new members as the correct way to perceive, think, and feel’.
A more informal definition of culture is
‘the way we do things round here’.
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Why SHRM and culture?
Strategy and culture belong together. If culture is not aligned with the new strategy, the implementation of the new strategy will not be successful.
(http://geert-hofstede.com/books.html)
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Sources of organisational culture
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Where does culture come from? Dickson et al (2000)
Values and beliefs of founding leaders
Characteristics of the industry
Broader society in which organisation is embedded
Where does culture come from?
Schein(1992)
Beliefs and assumptions of the founders
The learning experiences of group members as the organisation grows
New beliefs brought in by new employees and recruits
Transactional leaders work within existing culture;
transformational leaders change the culture (Bass, 1985)
Leaders therefore impact change and the culture based on whether they are transactional or transformational.
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How culture is created
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https://www.google.com/search?site=&tbm=isch&source=hp&biw=1280&bih=889&q=organisatoinal+culture&oq=organisatoinal+culture&gs_l=img.3...29455.36269.2.36450.54.14.8.26.2.0.255.1323.4j3j3.10.0....0...1ac.1.64.img..64.27.2379.E3qWvzHiaWU#imgrc=sUeD_-EX8ssgZM%3A
Question:
Do you agree with the image?
Are there other factors which contribute to creation of culture?
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Relationship between leadership,
culture and performance
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https://www.google.com/search?site=&tbm=isch&source=hp&biw=1280&bih=889&q=leaderhship+and+culture&oq=leaderhship+and+culture&gs_l=img.3...1821.7518.0.7683.37.20.2.10.0.0.317.1871.6j3j3j1.13.0....0...1ac.1.64.img..25.12.1397.ccOrxGh3asU#imgrc=hVF4sV_xHCu_OM%3A
Question:
What do you think the relationship is between leadership, culture and performance?
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Relationship between leadership,
culture and performance
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- Effective leaders create high performance organisations- leadership is more than just managing a process
- Culture has a powerful imppact on performance- helps or hinders achievement of goals
- Leaders set the tone for organisation culture- model behaviours
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(4) Analysing case studies
Reviewing either BBC Worldwide or Visa Europe, consider the extent to which a particular change approach was adopted and to what degree of success.
Applying either Kotter or Lewin, what actions might have been adopted and why?
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Kurt Lewin (1951)
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| Unfreeze | Change | Refreeze |
| Preparing: Breaking down the existing status quo before you can build up a new way of operating. The message: Developing a compelling message showing why the existing way of doing things cannot continue. The foundations: To prepare the organisation successfully, you need to start at its core – you need to challenge the beliefs, values, attitudes, and behaviours that currently define it. The controlled crisis: By forcing the organization to re-examine its core, you effectively create a (controlled) crisis, which in turn can build a strong motivation to seek out a new equilibrium. | Resolving uncertainly: After the uncertainty created in the unfreeze stage, people begin to resolve their uncertainty and look for new ways to do things. People start to believe and act in ways that support the new direction. Time: The transition from unfreeze to change does not happen overnight: People take time to embrace the new direction and participate proactively in the change. Understanding the benefits: In order to accept the change and contribute to making it successful, people need to understand how it will benefit them. | Embracing the new ways: When the changes are taking shape and people have embraced the new ways of working, the organisation is ready to refreeze. Internalise/institutionalise the changes: The outward signs of the refreeze are a stable organization chart, consistent job descriptions, and so on. The refreeze stage also needs to help people and the organisation internalise or institutionalise the changes. This means making sure that the changes are used all the time, and that they are incorporated into everyday business. New ways of working: With a new sense of stability, employees feel confident and comfortable with the new ways of working. |
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John Kotter 1996 and 2014
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| Leading Change: 8-Step Process (1996) | Accelerate: 8-Step Process (2014) | |
| 1 | Respond to or affect episodic change in rigid, finite, and sequential ways | Run the steps concurrently and continuously |
| 2 | Drive change with a small, powerful core group | Form a large volunteer army from up, down and across the organisation to serve as the change engine |
| 3 | Function within a traditional hierarchy | Function in a network flexibly and agilely outside, but in conjunction with, a traditional hierarchy |
| 4 | Focus on doing one new thing very well in a linear fashion over time | Constantly seek opportunities, identify initiatives to capitalise on them, and complete them quickly |
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(5) Reflecting on key learning
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References and further reading
- Appelbaum, S. H., Habashy, S., Malo, J. L., & Shafiq, H. (2012). Back to the future: revisiting Kotter's 1996 change model. Journal of Management Development. 31(8): 764 - 782.
- Beer, M., & Nohria, N. (2000). Cracking the code of change. HBR’s 10 Must Reads on Change. 88.
- Burnes, B., & Cooke, B. (2013). Kurt Lewin's Field Theory: A Review and Re‐evaluation. International Journal of Management Reviews. 15(4): 408 - 425.
- Cummings, S., Bridgman, T., & Brown, K. G. (2016). Unfreezing change as three steps: Rethinking Kurt Lewin’s legacy for change management. Human Relations. 69(1): 33 - 60.
- https://www.kotterinternational.com/
- https://www.mindtools.com/pages/article/newPPM_94.htm
- https://www.youtube.com/watch?v=KrR-OUSCWjE&feature=youtu.be
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