Organizational Psychology

Watch the “What Prevents Change in Business?” video available on the student website.

 

 

 

In the video, the narrator states, “But a communication program, which should be clear and consistent, should also be addressing those aspects of the staff relationship that you need to have to make organizational change work for you and for your stakeholders.”

 

 

 

Prepare a 3- to 4-page journal article on how to use learning theories (behaviorism, social cognitive, information processing and constructivism) to improve their effectiveness as communicators of organizational change process. Consider your target audience to be change agents.

 

 

 

Address the following in your journal article:

 

 

 

Discuss how to use learning theories (behaviorism, social cognitive, information processing and Constructivism) as change agents.

 

Address aspects of employee resistance.

 

Discuss characteristics of external resistance.

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Professional Applications of Learning Theory in Real-Life Situations PSYCH/635 Version 2

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Option 8 Industrial/Organizational Psychology Journal Article

 

Watch the “What Prevents Change in Business?” video available on the student website.

 

In the video, the narrator states, “But a communication program, which should be clear and consistent, should also be addressing those aspects of the staff relationship that you need to have to make organizational change work for you and for your stakeholders.”

 

Prepare a 3- to 5-page journal article on how to use learning theories (behaviorism, social cognitive, information processing and constructivism) to improve their effectiveness as communicators of organizational change process. Consider your target audience to be change agents.

 

Address the following in your journal article:

 

Discuss how to use learning theories (behaviorism, social cognitive, information processing and Constructivism) as change agents.

Address aspects of employee resistance.

Discuss characteristics of external resistance.

 

 

WEBPAGE FOR VIDEO: http://contentproxy.phoenix.edu/login?url=http://fod.infobase.com/PortalPlaylists.aspx?wID=18566&xtid=40231&loid=64542

 

 

 

 

 

 

 

What Prevents Change in Business?” Transcript

 

] female narrator: One thing that is always certain is change. It’s true in all aspects of life, for individuals and organizations all over the world. Every business, regardless of size, must learn how to best manage change in order to remain successful. Indeed, an organization’s very survival is dependent on its ability to effectively deal with both internal and external change. This program is about managing change in large organizations. We’ll look at:

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Change within a large organization can take many forms. It is a dynamic process that needs systematic thought in order for a business to remain competitive in their respective field. Organizational change creates new forms of operation. There are many reasons why an organization may require change to take place, including society’s increasing expectations of businesses operating responsibly and ethically, global competition pressures, the increasing prevalence of business mergers and acquisitions, rapid technological development, privatization of government business enterprises, or the need for compliance with legislative changes. Examples of reasons for change within an organization based on social responsibility could include environmental responsibility, or taking steps to improve the quality of life for its employees by setting up health-promotion programs or providing child care facilities at work. A change in business ethics could mean a transformation in the way a business conducts its day-to-day operations, including a revised occupational health and safety policy within the workplace. Globalization has affected businesses all over the world, causing many different types of change, such as the need to increase productivity to remain globally competitive. Managing change associated with either multinational or transnational organizations requires skill, patience, and determination. When one organization merges with another, or an acquisition takes place, all members of staff must be able to adapt to the change. This could herald a number of issues, including location change, changes in staff or business policy. Technological development has increased dramatically over the last ten years. Keeping up to date with changes in ICT, such as methods of communication, the internet, business software, and electrical equipment is vital to any organization and has revolutionized the way all businesses operate, internally and externally. Privatization is when a government-owned or public-sector business is transferred to private ownership and operation, thereby becoming a private sector organization. This can happen in different ways but will always bring about change to the way the organization operates.

– Crucial to change is actually having the right strategy. When I talk about strategy, I talk about strategy as being dynamic as well. It should be the partner to change. It should be a part of the change process. Strategy should also be something that we address frequently. It’s a smaller strategy. People should actually look at their strategy and understand that it’s gap analysis. I’m here now, and I want to be there. The change is the gap. How do I effect that change, and how do I make that gap produce the outcome that I want? Smart companies, smart management, and smart people actually spend a lot of time on their strategy. They communicate it, but they also make it part of the dynamic of the organization, so that when you are trying to effect change, you have the backbone; you have the template for change already in place.

narrator: Changes in legislation are constantly occurring. A significant one for many businesses around the world in the past decade or two has been the banning of smoking in workplaces. One of the most significantly affected industries here has been hospitality. Businesses and their customers have had no choice but to comply with the law. Venue management were forced to implement changes in dining and publicly accessed areas of their establishments in order to meet the requirement of the change, most at their own cost. We’ll look at examples of some of these changes later on in the program and focus on smoking laws as an example of a pressure leading to organizational change. Change is a dynamic process that needs systematic thought for it to be successful. Organizational change is the process that alters a facet of an organization, thereby creating a new form of operation. There are many reasons why an organization may require change to take place, including social responsibility, mergers and acquisitions, or legislative compliance. Driving forces refer to those factors that cause change to occur. They can be directed from an internal or external source. An example of internal force may be a decision imposed by management, such as outsourcing aspects of production to minimize costs of labor if production is proving to be too expensive.

– Well, within a large organization, when you’re talking about a significant change, they can have to deal with a lot of areas, and there can be mergers, there can be acquisitions, with their acquiring a company. And there is actually a big impact, and the impact is often cultural. And we underestimate the importance of culture when you’re actually effecting a large change, and it’s through what I would call imposed changes. So let’s talk about that in terms of a merger or an acquisition. Culture is very important in an organization. It’s the lifeblood. And it’s a way that the organization expresses itself. For any of those large changes to work, you have to actually make sure that the good will and the synergies that are part of the drivers for those change are actually recorded and rewarded.

 

narrator: Internal force could also come from employees. They may initiate change if there are things that can be introduced to their advantage, such as a change in working hours or conditions. External change is initiated by outside influences, such as customers, unions, competition, globalization, society’s expectations, or legislation, such as the recent smoking ban in some public areas.

– Australian medical associations, doctors, and hospitals, and so forth, brought the issue up as being one of an enormous cost to the community. Whole hospitals had wings of- dedicated to lung cancer and throat cancers and so forth. The tobacco industry wants- they fought the issue. Ultimately, the case was won over by the government- or by the public- bringing pressure onto government, and the health industry bringing pressure upon the government to enact regulations to smoking, particularly in public areas.

 

narrator: If customers of one business are also customers of another, they may demand changes that better suit their needs. For example, if a customer receives a certain level of service from one business, they may demand a similar level of service from another. Unions often demand changes in working conditions in the interests of the workers. In many cases, employers are forced to improve working conditions or face legal action. Let’s examine some aspects of the smoking laws in Australia. The federal government drafted new tobacco laws under the Tobacco and Other Smoking Products Amendment Bill 2004. In Queensland alone, changes include, but are not restricted to, no smoking anywhere inside pubs, clubs, restaurants, and workplaces; no smoking in commercial outdoor eating or drinking areas; no smoking in outdoor public places, such as patrolled beaches, children’s playgrounds, major sports stadiums, or within four meters of non-residential building entrances; and mandatory training of employees who sell tobacco. Peter Antal, Club Med Lindeman Island’s human resources manager, says his organization, which is a large international company, had no choice but to comply with these changes.

– We had to basically use our own initiative to develop the strategy to make this change. It certainly wasn’t handed to us. We were given the law by the state government that this is what would be happening on July the 1st. And from there, we had to develop the plan ourselves and had the initiative on how best to handle this, because we knew we had to comply with the law. It was going to change. So how can we best do this with minimal impact on the overall experience of our guests and the harmonious life with our staff?

narrator: Driving forces apply pressure for change to occur. They could be directed from an internal or external source. Internal force may be a decision imposed by management. External change is initiated by outside influences, such as customers, globalization, or legislation such as the recent smoking ban in some public areas.

[hypnotic, grooving music] Whenever organizational change occurs, there will always be those who resist it.

– The worst thing that you could have when you’re trying to effect organizational change, and as a leader, is to have leadership resistance. And that will-you’ll get that in various pockets in the organization and for various reasons. There could be cynics. It could be through fear. It could be through many things. But a communication program, which should be clear and consistent, should also be addressing those aspects of the staff relationship that you need to have to make organizational change work for you and for your stakeholders. And your staff are your stakeholders as well.

narrator: Restraining forces are those that repress the pressure for change. They can also appear from both internal and external sources. Employee resistance is very common. Concerns surrounding job security and how day-to-day tasks and responsibilities may change can cause fear and uncertainty in many people. Workers are less likely to conform to changes if they feel they have been forced upon them. Some reasons for internal resistance could include fear of an increase or decrease in workload, changes to working conditions, learning new technology, a change in location, therefore, changes to travel arrangements to and from work, and job security. Employee resistance is natural with certain types of change. This is why proper and adequate training and support is needed throughout any change process. Externally, resistance could come from customers, suppliers, distributors, or any other business that deals with the organization daily. Some reasons for external resistance could include fear of a price increase, or that there may be a loss of quality in a product or service, change in location, flexibility in payment options, or a change in the organization’s reputation, both positive and negative. Sometimes the costs associated with the introduction to change are such that the change is just not viable. In our case study, changes caused by smoking legislation, there have been a number of costs incurred for business owners. For bar and restaurant owners in Australia, for example, the possibility of providing outdoor smoking areas came at a cost.

– I guess the financial impact that we had to incur was quite minimal, considering the severity of the change. It was such a big change from being able to smoke everywhere to all of a sudden having, “I need four or five designated smoking areas.” So the financial cost was quite minimal. We obviously had to buy signage saying that this is a designated smoking area. There was minimal cost in informing the guests by putting flyers in their rooms. And I guess the only other cost involved would have been the actual building of these designated areas, and we wanted to make them as pleasant as possible, because from being able to smoke at the bar to all of a sudden being shoved outside in this little hovel, we tried to brighten that up by buying some extra pot plants and making sure it was paved and covered in case it was raining. All of these things had, you know, a cost involved, but I think it was quite minimal.

narrator: Organizations sometimes conduct cost/benefit analyses to see if making the change is going to be financially beneficial. A cost/benefit analysis is used to evaluate the costs involved in the change against the benefits of the change, and then choosing the most profitable course of action or the best option for the organization. It provides management with a clear understanding of the economic costs involved with the change and encourages discussion in order to confirm the change is actually viable. Restraining forces are those that repress the pressure for change and can come from internal or external sources. Some reasons for internal resistance could include the heightened expectation of employees. Employee resistance is common. Externally, resistance could come from customers, suppliers, or distributors. A cost/benefit analysis may be required to be sure the change is viable. In the case for many bars and restaurants, complying with the law was mandatory. Change in a large organization needs to be carefully planned, organized, and controlled in order for it to be successful and achieve desired outcomes. All employees must carefully be led through the process with support available at all times. There are both low- and high-risk tactics that managers could use in assisting the change process.

– Working in human resources, you can certainly see the impact that it had on staff. Again, I mention that we were permitted to smoke anywhere in the resort, and having to tell the staff that they can no longer do that and they can only go to certain areas of the resort to smoke, we had to manage that for employees and, certainly, the guests- who, from their point of view, they’ve paid money to come here, so why should they be told where they can and can’t smoke- and to try to get the point across that it’s actually not just our internal policy that we do support. It’s also following Queensland legislation.

narrator: Low-risk tactics, like managers communicating changes clearly, could be the solution when the change is beneficial to employees or clientele. When the benefits are explained well, employees will generally follow their self-interest. Clear and precise communication is the key to successful change management.

– Leadership is absolutely crucial for effective organizational change, and leadership should not just be seen as the one person at the top. But it is also crucial that throughout the organization that every member of staff and management becomes a leadership champion, that they actually take ownership of leadership, that the leadership equity in the organization is in force and it’s actually working towards a common goal.

narrator: Managers must ensure that all affected are aware of the process about to be undertaken, and even if there are some detrimental consequences for some, all detail must be explained precisely. It’s important to keep in mind the fear employees and stakeholders may have concerning change. Training is vital, and a full support system needs to be put in place from the beginning. Ongoing encouragement to staff is essential. Change needs to be carefully planned, organized, and controlled in order for it to be successful. There are both low- and high-risk tactics that managers could use in assisting themselves during the change process. Clear, precise communication is the key to successful change implementation. Employees and other stakeholders may experience fear. Full support systems and encouragement are essential.

[scintillating electronic music] Managing change is an ongoing process that requires time to plan, implement, and review. It cannot be rushed or cheated. Results could take time to surface. Some organizations employ a change agent or change enablement officer to help during the journey. These people are consultants who specialize in identifying the need for change and implementing it. A change could be brought in at an early stage to determine the actual need for change. They’ll usually develop a plan and timetable before making the necessary changes themselves. Some may just give advice or suggestions to help managers. Some managers use high-risk tactics such as threatening employees to push changes through abruptly. They may manipulate staff by giving false information, offering dubious rewards, or threaten job security. This is not a desirable approach. It can create distrust, lower staff morale, and damage the culture of the organization. It can also mean that employees are less likely to conform to the change, especially if they feel it has been forced upon them.

– Culture is absolutely crucial to making sure that any of these large changes are actually successful. The culture is the reflection of the organization. It’s the morale of the organization. It’s the persona of the organization. And when you are actually trying to effect a large change, whether it be through a merger or an acquisition, what you do have is not the “Clash of the Titans,” you’ve got the clash of the cultures.

 

narrator: Implementing change is a step-by-step process, with each stage requiring careful attention.

– We managed it last year in stages. We knew the date of July 1 was coming up, when the law would change. So prior to that, even as early as February, we started building the designated smoking areas. We were putting up signage. Certainly, we weren’t enforcing it at that stage, but we were starting to get the awareness out there, and that particularly was valuable to our staff, who that would impact because they would still be here.

– There will be times when you’re going to be undertaking some unpleasant aspects of the change, and that’s part of your job, and it will become part of other people’s jobs as you’re trying to implement that change. You do necessarily want to make sure that the communication is consistent. You actually need to be authentic, and you need to actually engender an organization where people will trust you.

narrator: Managing change is an ongoing process that requires time to plan, implement, and review. Some organizations employ a change agent. High-risk tactics are not desirable. Implementing change is a step-by-step process that requires attention to detail at every stage.

[propulsive electronic music] An evaluation of the change should be undertaken by any organization after the process is complete. Evaluation is necessary to assess the effectiveness of the change and measure whether or not it has been successful. Many organizations use KPIs, Key Performance Indicators, to target areas in question.

– KPIs are Key Performance Indicators. These are the indicators that any business will identify as showing the results for the business, how you can measure the performance. They can be technical. They can be quantity- quantitative or- and or qualitative. So for example, they would be financial. In a manufacturing company, there will be the outputs. They will be qualitative in terms of some of the HR KPIs that you might have fixed, such as employee opinion surveys. How is the company rating on those? What is our staff turnover? But these are all very important to the whole organization, getting the picture of the organization through the Key Performance Indicator.

 

Narrator: Organizations could consider their changes successful if profit remained the same or increased, employee turnover rates decreased, or if employee absenteeism rates decreased.

– Some of the best ways to evaluate change is to clearly know what the change is supposed to bring. And if you spend the time up front to understand how that’s going to change the business and the organization, then you can actually put the appropriate KPIs in place. And I suggest to you that they would be technical and they would also be qualitative, in that they would be measuring people as well. And they can be technical in the sense; also, of what training do we need to do? How do we actually understand what that means to us? But that’s also qualitative, because that actually is investing in the people as well. So be clear about what you’re trying to achieve up front, understand what the KPIs for success are, and actually manage towards those KPIs, but clearly communicate them so that everyone understands them, everyone owns them, and, also, everyone feels that they have equity in delivering on those KPIs. That, I think, is very crucial: equity in KPI delivery.

 

narrator: There are three possible outcomes to any change project: the change was successful and KPIs were achieved; no sign of either improvement or deterioration; or a negative outcome through significant deterioration. The process of evaluating change all depends on the nature of the original goals and objectives.

– I would say there’s been no change to the business in regards to the changing law for smoking. If anything, it may have even increased our numbers, because a lot of people like to come to an environment where it’s smoke-free, or where there are only certain areas where people can smoke. There are pubs, hotels, or venues which have been affected really negatively, simply because they have not been able or haven’t yet developed areas which comply with smoking legislation.

narrator: Evaluation is critical and should be undertaken to determine the value of the change process and whether further change might be needed straightaway or down the track. Surveying, observation, feedback forums, and financial reports are all formal methods of collecting the relevant information necessary to evaluate the success of the implementation of change in a large organization. Evaluation is necessary to assess the effectiveness of the change and measure whether or not it has been successful. Many organizations use KPIs to assist them in objectively evaluating change. There are three possible outcomes to any change process: the change was successful, no sign of improvement or deterioration, or a negative outcome. Evaluation is critical, and methods such as surveying, feedback forums, and financial reports are used.

[relaxed, grooving music] Change in large organizations is constant, and all managers must be able to manage change well. Good communication skills are vital. And all those involved in the process must be well-informed throughout the journey. A successful business is one that embraces the new possibilities offered by change, takes risks, and rises above all challenges.

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