The Management of Change

1. The Management of Change By Liz Davies and Suzanne Inskip

2. Presentation Format • Problem scenario • Aims and objectives of the presentation • Formulation of the problem • Intervention strategy • Evaluation

3. Aims and objectives We will focus on how change is perceived by the individual. We will - present a formulation of the problem - examine some models and theories that contribute to our interpretation - suggest an intervention strategy - evaluate its success.

4. Formulation of the problem • George is Tayloristic and task-focused: “I saw the new system as an opportunity to bring the office in line with my vision of a professionally run business college.” “I thought that the new system would help Jane control her staff”.

5. Formulation of the problem • Jane’s views are consonant with the Human Relations movement in that she is people focused: “I actually feel rather proud of the team’s style. I try to ensure it is participative and supportive” “OK. Sometimes there may be outbreaks of playfulness, but its good for staff morale”

6. Formulation of the problem – Concepts and Models • Psychological Contract • Socio-technical Systems Model

7. The Psychological Contract –An Integrative approach • The form of the exchange • The content of the exchange • The process of the exchange

8. The Form of the Psychological contract • The psychological contract is influenced by the nature of the relationship between the individual and the organisation • Distinction is made between “Transactional” and “Relational” terms • Transaction terms – short-term, monetary exchanges. Low emotional investment • Relational terms – open-ended; long-term; considerably emotional investment.

9. The Process of exchange “…the interplay of the ‘wants’ and ‘offers’ on the part of both employees and the organisation alike” Herriot, Hirsh and Reilly (1998)

10. The Psychological contract Summary • The staff’s contract is relational in nature. • Wants and offers reveal expectations on the part of the staff as to how they should be treated. • Changes must be negotiated in order to find a match between the wants and expectation of the staff and the organisation (as personified through George).

11. Sociotechnical Systems (STS) Approach • Cooper & Foster (1971) defined it as: “based on the simple fact that any work system requires a technology and a work relations structure.”

12. Sociotechnical Systems Approach II • Optimizes the social factors as well as the technical and procedural elements. • The STS will be used as a tool in the planned intervention.

13. Principles of Sociotechnical Systems • The STS has evolved over time • Most coherently articulated by a set of Principles described by Cherns (1976, 1987).

14. Principles of Sociotechnical Systems • Compatibility • Minimal critical specification • Sociotechnical criterion • Multifunctionality • Boundary location • Information flow • Support congruence • Design and human values • Incompletion

15. Principles of Sociotechnical Systems II • Compatibility – requires the process of system re-design to be compatible with the desired organizational objectives. • Minimal Critical Specification – methods of working should be minimally predetermined for team members. “Whilst it may be necessary to be quite precise about what has to be done, it is rarely necessary to be precise about how it is to be done.” (Cherns, 1987).

16. Principles of Sociotechnical Systems III • Sociotechnical criterion – involves identifying key unanticipated events which critically affect outcomes. If they can’t be eliminated, they need to be handled at source. • Multifunctionality – highly specialized jobs should be avoided as specialism reduces flexibility. A more multi-skilled approach is essential. • Boundary location – boundaries can be drawn to group people and activities in terms of technology, territory or time.

17. Principles of Sociotechnical Systems IV • Information flow – those that need resources should have access and authority over them. • Support congruence – systems of social support should reinforce the desired organizational behaviours. • Design and human values – the objective of the organizational design should be to provide a high quality of work. • Incompletion – redesign should be an iterative process, not a “one off” change.

18. Sociotechnical Systems Summary • The key points for our intervention are: • The importance of compatibility • Participation and minimal specification • Functional overlap should be built in.

19. Intervention Strategy • Rep grid interviews • Focus groups • Workshop to develop new system • Forum with key stakeholders prior to implementation • Formal review • Coaching with Jane.

20. Evaluation • Decrease in sickness absence • Reduction in complaints • No increase in staff attrition • Staff survey.

21. Summary • “The process of change is likely to be as important as the shape of the new structure.” (Tannenbaum et al, 1996 p.253)