Organisational Change Part 3-Change of Management-Lecture Handout, Exercises of Change Management

Download Organisational Change Part 3-Change of Management-Lecture Handout and more Exercises Change Management in PDF only on Docsity! Change Management –MGMT625 VU © Copyright Virtual University of Pakistan 141 LESSON # 45 ORGANIZATIONAL VALUES, CULTURE AND ORGANIZATIONAL CHANGE In the last session, we had discussed about the significance and role of organizational values and culture in change implementation process in organizations. Today, we will continue with our previous discussion and explore further critical aspects of change management context. And towards the end, I would like to share with you future trends and critical areas of research in change management discipline. Organizational Values and Culture in Change Management Process Change induced through strong coercive pressures or stiff control processes will lead only to superficial conformity. This will not be a durable and sustainable solution because as the pressure goes away (or become routinized) the relaxed organization will change to form an organization with values held within. At first instance, this is considered a general tendency that human psyche always resist change. In the second instance, if people are not being allowed to involve in change process or coercive methods are being applied to molding them toward non-consented change by the higher command then this will create double plied consequence in change management and not will be long lasting. Therefore, people’s consent must be required for long term solvency of change. The coercive model for behavior modification is the earliest model not only in the modern managerial thought and also in human history. In managerial thought, the most famous theory about the manipulation of nature of people has been expressed by Douglas McGregor in his book, “The Human side of Enterprise”, and is known as “Theory X” and “Theory Y.” For instance, Theory X assumed the nature of average peoples as they inherently dislikes the work and wish to avoid responsibility. Therefore, according to McGregor, those people must be coerced, controlled, directed, and threatened with punishment to get them to put forth adequate effort toward the achievement of organizational objectives. While, the “hard” or X approach may produce resistance and antagonism. On the other hand the “soft” or Y approach may result in laissez-faire management. Some scholars also believe that McGregor has apparently been misinterpreted. Both of his theories are not completely congruent with reality and these are only assumptions based on intuitive deductions rather than based on research. Furthermore, modern research revealed that different tasks and situations require a variety of approaches to management. John J. Morse and Jay W. Lorsch have found that different approaches are effective in different situations. Thus, the productive enterprise is one that fits the task requirements to the people and the particular situation. And the effective managers are those who recognize the dignity and capabilities, as well as the limitations of people and adjust their behaviors as demanded by the situation. Values of elite – instead of non-elite are required for radical transformation. This type of transformation will not occur unless elite value structure is compatible with prescribed change plan. The forces for change can come from the individuals themselves (normally the organizational elite) in addition to the environment external to the firm or from within the organization. Therefore, the role of elite is the most decisive and critical in bringing change in organizations. Otherwise any dissent can bring a deadlock or a crisis like scenario in organizations. In case of radical or transformational change, the dilemma further gets intense. So, change process often revolves around the values of the powerful elites. For example, International Standard Organization (ISO- certification) unless the most powerful people at the top like owners, shareholders, or senior executives agree for the certification mere training and documentation is futile because elites have the authority, rigor and, what Kurt Lewin termed as driving force for implementing a qualitative change in organizations. Hence, members of organizations make strategies based on their choices (values). This view is closer to adaptationist approach instead of an environmental determinism. docsity.com Change Management –MGMT625 VU © Copyright Virtual University of Pakistan 142 A value, as have already been defined, is a fairly permanent belief about what is appropriate and what is not that guides the actions and behavior of employees in fulfilling the organization's aims. Therefore, it is not something which is preordained or exists by default. It is an intrinsic and deliberate operating phenomenon which emerged on the basis of a choice, structured in a particular situation and delivered results. For instance, the philosophies of management studies or even in other social sciences are based on the assumption that values can be learned and practiced and behavior can be opted through values. This approach is commonly known adaptationist approach in learning philosophy. On the other extreme, the learning behavior is dependent on deterministic approach which is flat and environmentally manipulated. Therefore, it is the environment which is decisive in creating change and where element of value choice is zero. However in today’s dynamic socio-cultural business environment, managers in general do not accept orders blindly; they want to become active participants in defining objectives and in the decision making process. It is also important that any approach selected is dependent on one’s worldview or perceptual criteria which have been developed over a period of time. Value-formation process: Is it cognitive or social? As we know that values can be thought of as forming an ideology that permeates everyday decisions. In this regard Vroom model suggest that everyone has a unique combination of valence, instrumentalities, and expectancies. Therefore, the individual acts on to gain and/or to keep values and value judgments as important cognitive and social determinants of behavior. The cognitive learning phenomena, at the first instance, depend on one’s exposure, analytic and interpretive ability, and inferences. Secondly, the social learning phenomena depend on one’s own around or environment and chances attributed to people rather on self. The cognitive learning approach normally leads to an autocratic or dictatorial style in managing and leadership. While, social learning approach is for participative decision making and value sharing in organizations. In general practice, it has been found that there must be a balance required between the two approaches for effective learning and leading in different situations. Thus, the productive enterprise is the one that fits the best among both. The values held by an individual are relatively permanent (Meglino & Rawlin) In organization’s context, culture means a general pattern of behavior, shared beliefs, and values that members have in common. Thus, it is impermanent or divisive phenomenon. Because it may be evident that people of an organization commonly share professional values instead of social or political values. Similarly, the value learning process in organizations is also very shortsighted and hyper in nature. Therefore, changing a culture from week to strong, as according to Koontz, may take a long time, even 5 to 10 years. In contrary to organizations, the values held by an individual are more permanent, influential, and more expressive. However, a clear vision and good role models can contribute much in making value permanence in organization. Critical Research Areas in Change management 1. Change management in post colonial era 2. Feminism and change management 3. Post materialism and change management 4. Cultural school of change management Issues in Change Management 1. Self vs. other (management vs. market) 2. Knowledge vs. organizing (learning and organizing: are the two antithetical to each other) docsity.com