Organizational Behavior

Organizational Behavior SID No: 1031425/1

TABLE OF CONTENTS

CONTENTS PAGE NO

1. Abstract 1

2. Introduction 3 - 4

3. Research Objective 4

4. Research Significance 4

5. Methodology 5

6. Literature Review 5 -11

7. Analysis 12- 15

8. Conclusion / Recommendation 16 -17

9. Bibliography / Reference 18 -19

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Abstract

The implementation of an Accounting Software package Peachtree, at San Fernando

City Corporation experienced challenges with respect to change. The process of

observation and the use of the secondary data were used in the course of the

information discussed. Characteristics of change management were identified and

qualitative techniques were used to analyze and summarize the existing data in order to

explain why and how issues relating to organizational changes. The Objectives that

rose from change at San Fernando City Corporation was to examine employee

performance with the implementation of change. The strategies used in communication,

examine the change agent and training strategies used to integrate change and also to

state the barriers in change management. Upon reading the context, one should be able

to fully understand the challenges and issues deriving from change.

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Introduction

“Everyone has accepted by now that change is inevitable. But that still implies that change is

like death and taxes-it should be postponed as long as possible and no change would be vastly

preferable. But in a period of upheaval, such as the one we are living in change is the norm.”

Peter Drucker (1999)

Organizational Behavior is the study and application of knowledge about individuals and groups

act in organizations. Its purpose is to build better relationships by achieving human,

organizational and social objectives. Organizational behavior involves why we do things and

how it affects others. Organizational behavior comprises a wide range of topics such as change,

which would be examined in this context.

“Organization development is a collection of planned change interventions, built on humanistic-

democratic values that seek to improve organizational effectiveness and employee well-

being.”(Organizational Behavior (Robbins, Judge, 13th edition p 662)

Change management is an aspect of management focusing on ensuring that the firm responds

to the environment in which it operates. Change involves thoughtful planning, sensitive

implementation and most important communication with those affected by the change. It is

necessary to develop strategies to implement change, for the establishment of greater

alternatives. However, proposals to resistance occur with the implementation of change

resulting in dissatisfaction. Change may arise from the development of new products or

competition, changes in cultural, political, economical, legal and social framework. In particular

change in Technology is used in this context.

San Fernando City Corporation was established and has been in operation for over Twenty Five

years. It is managed by the Government of Trinidad and Tobago and comprises of more than

sixty employees within the accounts department. The organization was not operating on any

major computer related activites; it was mainly a manual system. However with changing

technology it was planned that the implementation of accounting software, Peachtree be

introduced to the finance department. It was decided by the City Treasurer, that the Finance

department needed a proactive change.

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How well the implementation of an accounting software package in the finance department at

San Fernando City Corporation performs is not simply a function of managing change but a

matter of how well it can manage both short term and long term changes.

What are the major issues involved with change management?

Described later in context will emphasize managing change issues and challenges encountered

in organizations today.

Research Objectives

To examine the effects of change on employee performance.

To assess the communication strategies used in managing change.

To study the barriers to change management.

To critically examine the change agent used in leading change management.

To determine the training strategies used in the resistance to change.

Research Significance

On completion of this analysis, the main intention would be that employees and management

after reading the evaluations would improve performance, strengthen communication strategies

and enhance ways to overcome resistance to change.

Methodology

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Methodology may be described as a process or procedures which may include theories or

concepts as they relate to a particular discipline of inquiry.

The methodology used to compose this assignment was the secondary documents of the

company. Also, being an employee of the organization, in the accounts department the

researcher has become a participant observer and has also been impacted on the strategies

used to implement the change. In addition, the assignment is based on theories and concepts to

further understand the process for change.

Literature Review

The literature review aims to identify effective change management including theoretical

contributions in aspect of a particular topic. Change management is viewed differently in

literatures. The process is to start at whatever stage the individual is at and not to expect them

to be as ready as you are to have them change.

How does successful change happen? There is no right or wrong theory to change

management. Discussed below are some theorist’s views on successful change.

The concept of change management is a familiar one in businesses today. How business

manage change (and how successful they are at it, varies enormously depending on the nature

of the business.

One of the cornerstone models for understanding organizational change was developed by Kurt

Lewin back in the 1950’s, and still holds true today. “Once the individual shows a readiness to

alter his or her behavior or at least acknowledge the need for change, the change agent can

process of change”

In (Kurt Lewin 1951) framework portrays change as a dynamic forces in which individuals

have to progress through three stages; unfreezing, which recognized the need for change;

changing, which means overcoming and reducing the “force of resistance” and utilizing and

strengthening ‘drive forces’, and refreezing, which means habituating the change. Therefore

these forces can help shift the balance in the direction of planned change. This model attempts

to analyze forces that impact changes.

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UNFREEZE CHANGE REFREEZE


The change process

Figure 1:

Source: based on Lewin, K., (1947, 1951) as above.

The unfreeze stage signifies the exiting status or equilibrium stage .It involves getting people to

change perspective, dismiss bad habits and indentify new ways of meeting objectives. It states

that current practices have to be differed in order to get the change in motion. The second step

in Lewin’s force field model is change which signifies the implementation stage and moving to

new level of equilibrium. Once employees accept change which may mean new tasks and

responsibility given, change can start. Time is an important concept in effective change

management. Once change has been effective, the equilibrium should be stabilized, therefore

we should acquire some sort of cemented structure known in the lewin’s model as the freeze

stage.

Kurt Lewin (1951) went on to explain that “An issue is held in balance by the interaction of two

opposing sets of forces”, he suggests that “all behavior is the result o fan equilibrium between

two sets of opposing forces. This is illustrated as the “force-field theory”.Lewin viewed driving

forces, those seeking to promote change and refraining forces, those seeking to maintain the

status quo. Lewin viewed organizations as systems in which the present situation was not a

static pattern, but a dynamic balance (“equilibrium”) of forces working in opposite directions.

The force field diagram is a model built on this idea that forces – persons, habits, customs, and

attitudes – both drive and refrain change.

Figure 15: Lewin’s Force field Analysis

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Cited Objective, goal, target, problem, need


(Force favoring change) (Force resisting the change)

(Equilibrium or current status)

Source: http://www.valuebasedmanagement.net/methods_lewin_force_field_analysis.html

In perspective of Folder & Skarlicki (1999) resistance is defined as “employee behavior that

seeks to challenge, disrupt, or invest prevailing assumptions discourses, and power relation.”

Zaltman & Duncan (1977) also define resistance as "any conduct that serves to maintain the

status quo in the face of pressure to alter the status quo" (cited in Bradley, 2000, p. 76).

According to Dent & Goldberg (1999), individuals are not really resisting the change, but rather

they may be resisting the loss of status, loss of pay, or loss of control. Bhutan (2005) adds,

“There is always the danger of identifying a symptom of resistance when you are really looking

for its cause. To diagnose the causes, we must understand a person’s state of mind. The most

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http://www.valuebasedmanagement.net/methods_lewin_force_field_analysis.html


important factors that go into a person’s state of mind are his or her facts, belief, feeling, and

values.

It is vitally important to pay proper attention to the eight steps mentioned below to create

successful change. This process seeks to achieve a revolution in the way an organization is led

and managed and takes time. By recognizing those three distinct stages of change, you can

plan to implement the change required however it must be done in stages. Kotter (1996 )takes

a different view seeing, the overall direction of change as being decided by senior managers,

but implementation being the responsibility of empowered managers and employees at all

levels. He developed an eight-stage process of creating major changes: i.e.

Create a sense of urgency about the future

Create a guiding coalition

Develop a vision and a strategy for achieving it

Communicate the challenge vision

Empower broad- based action

Generate some benefits in the short term – this will allow employees to see

improvements along the way to achieving the end objective.

Consolidate change and produce more change

Anchor new approaches.

In addition to this theory another theory alternatively Schein (1999) also established an eight

step approach to ease the individual into learning that it is necessary for change to occur.

(Schein (1999) eight step model to implementing change)

Build a compelling vision of what the future might be if change were to occur.

Formal training in the learning competencies that are deficient.

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Personal control over the learning process by the learner. This involves determining the learning

objectives, method of learning and the pace at which learning progresses.

The training or learning agenda should be focused on the entire group of the individuals who may

be involved.

Training resources and safe harbors are necessary to not only permit the trial-and-error that

frequently occurs in learning, but the freedom to risk making mistakes.

Positive role models are necessary to support observational learning.

Support groups or communities of practices can be established to provide both group support for

making changes and group learning experiences.

Rewards and organizational structures that are aligned to the desired state. This is very broad and

covers many ways change might be encouraged and barriers to change eliminated.

In Schein’s model there is a major component of planning that is required. As we can observe

from theories mention so far, invention strategies differ from author to author but involve similar

elements as proven in literature.

Change Agent

Lippitt, Watson and Westly (1958) extend Lewin’s Three Step change Theory. Lippitt, Watson

and Westly created a seven step theory that focuses more on the role and responsibility of the

change agent than on the evolution of change itself. The seven steps are listed below:

Diagnose the problem

Assess the motivation and capacity for change

Assess the resources and motivation of the change agent

Choose progressive change objects

Roles of change agent should be clear and understood by all employees involved.

Maintain the change

Gradually terminate from the helping relationship.

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This theory mainly focused on the change agent rather than change itself.

Employee Performance

“Winners must learn to relish change with the same enthusiasm and energy that we have

resisted in the past.” Tom Peters (1982)

(Graetz et al, 2002, p 100) identified the semi-autonomous workgroup as the foundation of any

organization and conceding that it was better suited to the demands of business ,it was less

considerate to the basic needs of employees for example ,job satisfaction. This approach

proposed that both technical and social systems of work should be utilized in order for an

organization to change.

Change therefore must be managed short term in a way that emphasizes the on-going long

term objectives, while maintaining high performance. Change efforts in some way should

incorporate the ability to encourage innovation, knowledge sharing, develops team working, and

motivates employees.

When an organization issues a planned change, it tends to have a more focused sequenced of

planned actions. “The organization should be more planned rather than left to evolve on its own”

(Beer and Nohria 2000). They went on to argue that when considering forces of change,

certain elements other than planning are acknowledged.firstly, the purpose for change must be

considered, along with the leadership style in change efforts. The motivation for change plays

an important role as well as the focus of change.

Communication

(Dunphy 2000) states that “factors in top-down management make enhancing participation

difficult.”Therefore, agreement for change decisions has to be negotiated amongst partners.

Involvement in strategic decision making through workgroups and team involves some degree

of participation. Organizations that allow participative change strategies tend to have high levels

of involvement and communication from all levels regarding the change process .Similarly,

Bennis (2000) believes “that successful change occurs in diverse participants where leaders

are listeners.” Therefore, a vital condition for participation is that the employees are well

informed to make contributions concerning the change process.

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Training

(Dunphy 2000) stated “as the knowledge and training increases the level of participation also

increases.” It signifies if the employees are properly trained, the skilled level and work forced is

increased resulting in participation to change. The manager therefore has a degree of

responsibility to invest the skills of the employees and influence participation towards change

management. Another theorist Reed Gadner (1998) went on to add that that “the success of

change is eighty percent dependent on the development of the social and political interaction

skills and twenty percent or less on the implementation of the hardware and software

technology”.

Change can increase the amount of ambiguity felt by employees and becomes problematic

whenever they are unclear about what is wanted from them. This has been argued in much

different aspect from a holistic approach through different theorist and professional associates.

In both cases, the practical matter is that one management needs to find means and ways of

making required changes and at the same time ensuring employees go with the change rather

than against the change.

Analysis

Change is one part of an organization that is consistently affecting people and

processes in another part. According to Kurt Lewin (1951) .Change has always been a

feature of organizational life, though many argue that the frequency and magnitude of

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change are greater now than ever before. Therefore all organizational functions may be

affected by change. Change processes can influence what an organization does, the

way the company does things and the way the organization communicates and share

information. Change can bring about a number of triggers either external or internal

factors. External triggers may include Changes in the demand for San Fernando City

Corporation (Sfcc) services, merger of the business with another, inability to attract

sufficient numbers of skilled employees, political changes and development of new

technology available for application. Internal triggers should however be more expected

indicators of change which may comprise of strategies in planned change, efforts to

introduce cultural change, better use of resources example computers need to improve,

and the need to spread out staff where they are most effective. Changes however may

bring about a crisis of some kind, in this case it would be the failure of new technology,

managers should respond reactively and have a contingency plan available, probably

introduce a temporary tutor for troubleshooting issues with the software package, this

may not be the ideal response but it will prevent the crisis from turning into a major

tragedy.

San Fernando City Corporation (sfcc) encounters major challenges within the Finance

department with the implementation of accounting software, known as Peachtree

Accounting Package. Challenges include the need for skilled staff. Technology can

support change but it can never replace people. Another challenge that arises at Sfcc is

the failure to enhance employee’s participation, resulting in the lack of motivation

towards change. When mentioning change, it brings about the forces of change, which

may comprise of the Nature of the workplace, economic shocks, Competition, Social

Trends and in this case Technology. The forces of change will determine if the change

is internal or external. San Fernando City Corporation (sfcc) initiated an internal or

planned change which may be described as change activities that are intentional and

goal oriented. What is the goal of planned change? Basically it seeks to improve the

ability of the organization and it seeks to change employee behavior as mentioned in

literature by Schein (1999). Planned change may require new objectives, change in

leadership and Organizational culture. Change can be used to overcome existing

problems for instance in the stated organization a backlog of data needs to be

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processed in a timely period so new technology is introduced. However, with a planned

change certain limitations may be present for instance, the ability to reconsider or

change the strategy once it has been implemented. It also constrains Sfcc the ability to

respond promptly to sudden changes.

Change management can have a positive or negative impact on employee

performance. Primarily, employees must be aware and know why a specific change is

needed. The individuals must acquire some sort of motivation to participate towards the

change. The organization members must attain knowledge and ability to assist to

integrate change management. Any changes that were developed with the employees

must be sustained. As mentioned earlier (Kurt lewin) 1951, the change process,

unfreeze, freeze and unfreeze would refer to the employees towards change in

technology .Management plays an important role in employee performance, their

responsibility is to firstly, identify behaviors that are not expert and develop new

behaviors that are more effective within San Fernando City Corporation

(sfcc).Management should also try to understand the employees reaction towards the

implantation of the accounting package. In Sfcc the implementation of Peachtree

Accounting Software was not received positively by its senior employees making it

impossible to implement this change without resistance. Change requires the

willingness and ability to resign the old ways of doing tasks. The employees of Sfcc are

made up of a variety of people for instance different age, personality, and experience of

changes. Hence, different people are managed in different ways. To increase

employee’s performance the manager should not be judgmental and respond positively

to change and employee’s reaction. This will lessen the resistance to change.

People’s resistance to change is one of the major challenges faces in the

implementation of new Technology Software at Sfcc. Employees show a sense of risk-

aversion meaning that that they fear to make mistakes or to fail. As illustrated earlier

Kurt Lewin (1951) “force-field theory” that suggest “all behavior is the result of an

equilibrium between two sets of opposing forces know as driving and restraining

forces.”Possible reasons why employees may resist ways in working with new

technologies are, they do not have the necessary skills and they lack understanding the

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new ways of the change. Sources in Resistance may be due to employee’s habits,

meaning that the tendency to respond in accustomed ways becomes a source of

resistance. Employees with a high sense of security are likely to resist change because

it threatens their feeling of safety. Fear of the unknown, uncertainty and security also

contributes to resistance of change. San Fernando City Corporation (Sfcc) provided

training to its employees to work within the new technology but it is the employee’s

importance to emphasize appropriate training at regular sessions. Organization

individuals believe that change competes with their existing status. Managers must take

responsibility and try to motivate the employees in order to influence change.

Communication therefore, plays and important role in the change process.

Communication should be honest and encouraging, employees has to appreciate the

difficulties of unlearning and giving up old habits. How will management support this

change process? The manager at Sfcc has a fair communication status towards the

employees. Communication with every person, not just those in authority, during the

change process is crucial. The manager needs to understand that communication is a

real two-way discussion and not a presentation. Technical change does not happen in a

day. The participation of future users should be involved from an early stage, thus,

increasing motivation and success in the change process. To manage change

effectively, leadership is important. During the time of change, employees would

appreciate leadership as supportive and committed in their interest at the same time

acknowledging that tough decisions need to be made. Who in Sfcc is responsible for

managing change activities? An internal change agent is present in leading the change

management.”A change agent is a person who acts as catalysts and assumes the

responsibility for managing change activities. (Organizational Behavior (Robbins, Judge,

13th edition p 655.) The change agent should promote education and communication

with the employees of Sfcc. As mentioned earlier effective communication reduces

resistance to change. The change agent should encourage greater employee

participation and support to enhance meaningful contribution and increase quality and

productivity in the change decision. The change agent is also responsible that

employees acknowledge the reasons for the change. Lastly if resistance to change is

still overruling, the change agent should enforce coercion meaning restrain by force on

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the employees that are still resisting the change, for example, treats of loss of promotion

or poor performance appraisal could be issued. Change inherently implies political

activity. The internal change agent at Sfcc is an individual with a high status position in

the organization who has a lot to lose from change, hence change creates potential for

other employees at Sfcc to gain power at their expense. This develops political issues

which suggest that the driving forces for change is more likely to materialize from

outside change agents, employees who are new to Sfcc or from managers who are

slightly removed from the main power structure.

To assist in the acceptance of change the employees and managers should be open

minded for any new ideas and managers should listen to suggestions and protect new

ideas from criticism. Development of employee participation is vital as it will help in

learning from the mistakes encountered through changes. Management should not

make any final judgments or suggestions to early in the change process.

Conclusion and Recommendations

Change management should take into consideration all possible complexities. Mutual

feedback should be provided on all aspects of change. It is essential to understand the

current status of the project. Once a proper planning procedure is implemented to

ensure all necessary resources for instance sufficient computers and reliable staff, it

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provided a clear objective towards managing change. At Sfcc change should be based

on the organization’s history, readiness and ability to change.

The objectives mentioned earlier resulting in issues on employee performance, the use

of communication strategies, the barriers and restrictions towards change and also the

change agent and training strategies used to integrate the change management at Sfcc.

Discussed below are the recommendations to address the stated objectives towards

change at Sfcc.

At the San Fernando City Corporation (Sfcc) some sort of reward for employee

performance should be introduced so that the staff involved in the change process

would feel their contribution is valued. Similarly employees should allow leeway for an

open mind to the future and change. Managers at Sfcc should gain patience and

tolerance with the employees with respect to the establishment of change and should

focus on one change process at a time. Patience will enforce internal motivation which

should be supported more because the employees would feel more appreciated and will

assist in real commitment towards the implementation of new technology. Mistakes

would occur with the introduction towards change, however occasional mistakes should

not be punished and instead involved employees should be encouraged to try harder to

acquire the necessary knowledge, this will also assist in reduction to resistance to

change. Sensitivity training should be allowed which defines “Training groups that seek

to change behavior through unstructured group interaction.” (Organizational Behavior

(Robbins, Judge, 13th edition p 663).Team Building should also be recommended with

the presence of high interaction among team members to increase trust and openness

towards the change management. As mentioned earlier with Kurt lewin’s (1951) three

step approach, once the organization unfreeze, which identifies the existing status then

change meaning purge its system ,and freeze which signifies a cemented structure to

stabilize the change ,it would encounter fewer mishaps, and satisfying the

organization’s objectives. Successful change management requires great amount of

commitment. Consideration are taken into account for successful change, for instance,

the change process, dealing with resistance, leading the change, mending conflicts,

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facing cultural issues and the use of effective communication. Therefore, it is vital to

implement change management in all aspects of the organizational.

Bibliography/References

Bernard Burnes (2004) managing Change 4th edition, FT/Prentice Hall

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Burnes, B (2004) Kurt Lewin and the Planned approach to change: a re-appraisal.

Journal of Management Studies, 41(6).

Beardwell , J. and Claydon, T. (2007) Human Resource Management. A Contemporary

Approach 5th ed Prentice Hall Harlor

Cummings, TG and Worley, CG (2001) organizational Development and Change (7th

Edition). South-Western College Publishing: Mason, OH, USA.

Carnall, C.A. (2007) Managing Change in Organizations (5th Edition) Harlow:

FT/Prentice Hall & Pearson Education.

G.A. Cole (2004) management Theory and Practice 6th edition; Book Power

Kotter, J.P. (1996) Leading Change. Boston: Harvard Business School press

Laurie, J. Mullins,(2007) management and organizational behavior 8th edition, FT

prentice Hall

Robbins J. Judge (2009) Organizational Behaviour 13th edition, Pearson International

edition

Whittington et al., (1994) ‘Market-driven change in professional service: problems and

processes’, Journal of Management studies (1994), 31,6 November, pp.829-45.

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Change Management

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Date Cited; [22nd November 2010

Frameworks for change organizational Change Management:

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Kotter's 8-Step Change Model

Implementing change powerfully and successfully

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Date Cited [22nd November 2010]

Managing change in organizational Development

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Date Cited [14th December 2010]

Tom Peters and Robert H Waterman Jr - In Search Of Excellence summary

Website: http://www.businessballs.com/tompetersinsearchofexcellence.htm

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http://www,frameworksforchange.com/

http://www.businessballs.com/tompetersinsearchofexcellence.htm

http://www.mindtools.com/pages/article/newPPM_82.htm

http://en.wikipedia.org/wiki/Change_management


Date Cited [16th December 2010]

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Organizational Behavior

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