Bordia. P., Restubog. D. L. S., Jimmieson. L. N., & Irmer. E. B. (2011). Haunted by the past: Effects of poor change management history on employee attitudes and turnover. Group and organization Management, 36(2), 191-222.

Presented By:Syeda Hamna AmmarAadil Ijaz

Presented To:Dr. Faisal Qadeer

Key Terms

Poor Change Management History Poor Change Management History

Beliefs Trust Job Satisfaction Turnover Cynicism about organizational

change Openness to organizational Change

Literature Gap

Pettigrew et al. (2001) noted that:Organizational research has tended to

ignore time and history as important contextual forces that influence the occurrence of change in organizations.

They recommended that future research pay greater attention to the role played by organizational history in the change process.

Purpose of Research

To understand the role of change management history in shaping employee change related beliefs, attitude and behavior.

Sociocognitive Approach

Adoption of sociocognitive approach:

It emphasizes the role of cognitive process in explaining individual reactions to organizational change events.

Based on this approach they propose that individual experiences with poor change management will be captured in belief structures that they refer to as the poor change management history beliefs ( PCMH Beliefs).

Poor Change

Management History

PCMH-Beliefs

Trust in the

Organization

Job Satisfacti

on

Turnover

Intentions

Voluntary

Turnover

Cynicism About

Organizational Change

Openness to

Organizational Change

++

_

THEORETICAL FRAMEWORK

There is evidence that the amount of previous

change has consequences for change related attitudes.

In the past studies, change referred simply to the occurrence of change and did not ask employees for an evaluation of past change efforts (i.e., was the change well managed?).

They propose that individual experiences of PCMH in an organization will lead to enduring beliefs i.e., PCMH beliefs and the development of these beliefs can be explained theoretically through the schema perspective.

PCMH PCMH-Beliefs+

Schema Schemas are psychological manifestation of previous

experience and act as conceptual frameworks that

influence subsequent perception and attitude

formation.

Trust at any given time is a consequence of past experience with the trustee (Dirks & Ferrin, 2002).

Belief congruent information is easier to process and people are motivated to maintain cognitive consistency (McKinley et. al., 2000).

Therefore, PCMH beliefs will lead to greater attention to….and processing of…information that suggests lack of organizational ability, integrity, or benevolence, and in turn undermines trust.

PCMH BeliefsTrust in

Organization-

Cognitive consistencyA natural human tendency to

seek out stimuli that are consistent with one’s belief

and attitudes and to censor or limit one’s exposure to stimuli

that are inconsistent with beliefs.

Dirks and Ferrin found a strong positive relationship between trust and organizational leadership and job satisfaction across 34 studies.

The organization and its representatives influence many aspects of the employee’s work environment.

With low trust in organization, an employee will be unsure of whether his or her job-related interests will be looked after by the organization. A lack of trust is likely to result in lower job satisfaction.

Trust in organization

Job Satisfaction+

Employee withdrawal…as a consequence of low trust…can be interpreted in light of trust beliefs and the willingness (or intention; Mayer et al., 1995) to make oneself vulnerable to another party.

Kiefer (2005) found that lower trust arising from organizational change led to employee withdrawal (intention to quit and neglect of job duties).

Trust in organization

Turnover Intentions-

Job satisfaction has consistently been found to be negatively related to turnover intentions (Bordia et al., 2004b; Lum et al., 1998).

Most theoretical approaches to turnover note the role of job dissatisfaction as an initiator of the turnover process (Hom et al., 1992).

Therefore authors predict that job satisfaction will be negatively related to turnover intentions.

Job SatisfactionTurnover

Intentions-

Wanous et al., (2000) predicted that the amount of successful change will be negatively related to cynicism.

On the basis of this literature authors argue that previous experience of poor change management will lead to low levels of expectancy regarding the success of current change programs.

Relationship between PCMH beliefs and cynicism can also be explained by the need for cognitive consistency (Dutton & Jackson, 1987; McKinley et al., 2000).

PCMH Beliefs

Cynicism about

Organizational Change

+

CAOC involves pessimism about the successful implementation of change and has a negative effect on employee motivation (Wanous et al., 2000).

Based on organizational justice theory (greenberg & Cropanzano, 2001):

Cynicism about organizational

change

Openness to change-

Procedural injustice

Distributive injustice

Reduce Openness to change

Theoretically this relationship can be explained by image violation in the unfolding model of turnover (Harman et al., 2007).

Events in the organization ( such as organizational change) can trigger a comparison of:

Openness to change

Turnover intentions-

New Work Circumstances

Desired goals and values

According to the planned behavior theory, intentions represent a motivational force for the enactment of a particular behavior (Ajzen, 1991; Armitage & Connor, 2001).

In the context of turnover, turnover intentions have been found to be consistent predictors of actual turnover (Tett & Meyer, 1993).

Turnover Intentions

Actual turnover+

Finally, consistent with Lee and Mitchell’s (1994) characterization of shocks, PCMH and the resulting PCMH beliefs may force the employees:

To reassess their position in the organization

andCause them to exit from the

organization.

PCMH-BeliefsActual

Turnover+

Methodology

Empirical approach is presented in two phases.

Phase I includes development of a measure and validated it using actual events in the organization. PCMH and PCMH- beliefs were also related to trust and CAOC.

In Phase II they used the results of Phase I and further extended them to test the whole model; including openness to change, job satisfaction, turnover intentions, and actual turnover.

Phase ISample and Procedures

Initial Sample

325 employees

Respondents 155 employees

Response Rate

47.69%

Age Band 30-39 years

45 % of participants

Gender 66% male

Organizational tenure

4.23 years

19

Measures

S #

Variable Items/Scale

Alpha Sample Item

1 Actual PCMH - -

2 PCMH beliefs 8 .86 In my experience, organizational change has been managed well.

3 Organizational Trust (Robbinson, 1996)

7 .90 My organization is not always honest and truthful

4 OrganizationalChange Cynicism ( Wanous et al. 1994)

8 .89 Most of the programs are supposed to solve problems around here will not do much good.

Control variables : Age, Gender & Organizational tenure

Measurements Used Confirmatory factor analyses (CFA) is conducted to establish the

construct independence among PCMH beliefs, CAOC & Organizational Trust.

Several Fit Indices were used to assess the adequacy of the model, namely

1. Chi- Square (x^2)

2. Comparative fit index (CFI)

3. Root Mean Square Error Approximation (RMSEA)

4. Standardize Root Mean Residual (SRMR) Due to sample size constraints Path Analysis was also conducted.

H1 H2

H6

Poor Change Management History

Poor change management history-beliefs

Trust in the organization

Cynicism about organizational

change

.68 - .38

.41

Final path model with manifest variables for phase I ( the error terms for trust and cynicism were allowed to correlate; all paths are significant at p < .01)

Path Model For Phase I

Phase II Sample and procedures

•Data were collected at two points in time.•Survey kit consisted self-report questionnaire. Cover letter outlining the goals of the study, voluntary participation, and an assurance of confidentiality.Initial sample 200 staff

members

Respondents 124 staff members

Response Rate 62%

Male 53.2%

Female 44.4% (2.4% didn’t reported their gender)

Age Band 30-39 years (39% of participants)

Organizational tenure

3.14 years

S.#

Measures Item/scale

Alpha

Sample itme

1 Actual PCMH - - -

2 PCMH-Beliefs - .79 -

3 Organizational Trust(Robinson 1996)

7 .90 -

4 Job satisfaction( cammann et al. 1983)

3 .72 -

5 Turnover Intention ( Fried et al. 1996)

4 .89 I often seriously think about resigning from my job.

6 CAOC (wanous et al. 1994)

8 .83 -

7 Openness to change(wanberg and Banas 2000)

4 .86 I would consider myself open to these changes

8 Actual turnover

Measured after two years . 23 employees had left the institution valountarily .

9 Control Variables

Gender, Age and Organizational tenure

Poor change management

history

Poor change management History-beliefs

Trust in the organization

Turnover intentions

Cynicism about organizational

change

Openness to organizational

change

Job satisfaction

.71

- .46

.46

.54

- .56

- .22

- .51

-.17

Final path model with manifest variables for phase ii( the error terms for trust and cynicism were allowed to correlate; all paths are significant at p < .05)

Path Model for Phase II

H1 H2

H3

H4

H6

H5

H7

H8

Predictors of Actual Turnover (phase II)

Limitations

Attitudinal variables were analyzed in a cross-sectional design.

Utilization of socio cognitive approach to examine the effects of history of change management

Focus on discrete set of beliefs about poor change management history.

Focusing individual level beliefs related to change history

Research didn’t consider the impact of job-market predictors of turnover

Future Directions

Develop the composition of the change history beliefs.

Focus on multilevel perspective that takes into account shared beliefs at the group or departmental levels.

Future research should use a continuous scale to measure PCMH.

A more fine-grained analysis of the PCMH-turnover relationship.

Inclusion of Job market predictors of turnover or individual aspirations.