ELMG2 – MIDTERMS REVIEWER

Organizational Change

- Refers to a modification or transformation of the organization’s structure, processes or goods.

- Defined as change that has an impact on the way work is performed and has significant effects on staff

Organization changes can be:

- In the structure of an organization

- In the structure of an organizational operation and size of a workface
- In working hours or practices
- In the way roles are carried out
- In the scope of a role that results in a change in the working situation, structure, terms and conditions or
environment
Types of Changes:
1. Planned Change – It is a change resulting from a deliberate decision to alter the organization. It is an
intentional, goal oriented activity.
2. Unplanned Change – it is imposed on the organization and is often unforeseen.
Two forces for change in organization:
1. External forces
 Technological change
 Globalization
 Social and political changes
 Workforce diversity
2. Internal forces
 Changes in managerial personnel
 Declining effectiveness
 Changes in work climate
 Deficiencies in existing system
 Crisis
 Employee expectation
Resistance to change
1. Individual resistance – individual sources of resistance to change reside in basic human
characteristics such as perceptions, personalities and needs.
Reason of Individual Resistance
Economic Reason – the economic reason of resistance to change usually focus on:
 Fear of technological unemployment
 Fear of demotion and thus reduced pay
 Fear of reduced work hours and consequently less pay.
Fear of loss – when a change is impending, some employees may fear losing their jobs, status
particularly when an advanced technology is introduced.
Security – people with a high need for security are likely to resist change because it threatens
their feeling of safety
Status Quo – change may pose disturbance to the existing comforts of status quo
Peer Pressure – individual employees may be prepared to accept the change but refuse to
accept it for the sake of the group.
 Disruption of Interpersonal Relation – employees may resist change that threatens to limit
meaningful interpersonal relationships on the job
Social Displacement – introduction of change often results in disturbance of the existing social
relationships. Change may also result in breaking up of work groups.
2. Organizational Resistance - individual sources of resistance to change reside in basic human
characteristics such as perceptions, personalities and needs.
Reasons of Organizational Resistance
Resource constraint – resources are major constraints for many organizations. The necessary
financial, material and human resources may not be available to the organization to make the
needed changes.
Structural Inertia – some organizational structures have in built mechanism for resistance to
change. Example: In bureaucratic structure where jobs are narrowly defined and lines of
authority are clearly spelled out, change would be difficult.
Sunk Cost – some organization invest a huge amount of capital in fixed assets. If an
organization wishes to introduce change, then difficulty arise because of the sunk cost.
Threat to expertise – change in organizational pattern may threaten the expertise of
specialized groups. Therefore, specialists usually resist change.
Managed Resistance to Change
Education and Communication – communication about impending change is essential if employees are to
adjust effectively. The details of change should be provided and its potential consequences. Educating
employees on new work procedures is often helpful.
Participation – It is difficult for individuals to resist a change decision in which they participated. Prior to
making a change, those opposed can be brought into the decision process.
Empathy and Support – active listening is an excellent tool for identifying the reasons behind the resistance.
An expression of concerns about the change can provide important feedback that managers can use to
improve the change process.
Negotiation – another way to deal with resistance to change is to exchange something of value for reduction
in resistance.
Manipulation and Cooptation – Refers to covert influence attempts. Twisting and distorting facts to make
them appear more attractive, withholding undesirable information and creating false rumors to get employees
to accept a change.
Coercion – the application of direct threats or force on the resisters. They essentially force people to accept a
change by explicitly or implicitly threatening them with the loss of their jobs, promotion possibilities and
transferring them
Leadership

- According to Peter Drucker, “Leadership is shifting of own vision to higher sights, the raising of man’s
performance to higher standards, the building of man’s personality beyond its normal limitations.”
- Leadership is one of the most important function of management.
- Leading involves directing, influencing and motivating employees to perform.

Who is a leader?

- One that leads or guides

- One who is in change or in command of others
- One who heads a political party or organization
- One who has influence or power, especially of a political nature
Importance of Leadership

- Initiates action
- Motivation
- Providing guidance
- Creating confidence
- Coordination
- Effective planning
- Inspiration and motivation
- Strong focus
- Integrity
- Good engagement with others
- Looking at the bigger picture
- Resourcefulness
- Organizational clout
- Effective communication

Leadership theories
1. Transformational leadership is a more humane leadership theory, as compared to the militaristic
transactional theory
2. It believes in inspiring employees to do great work through example and the force of a leader’s
personality
3. People rise higher through positive motivation, than negative motivation
4. It is a leadership theory which appeals to the higher need of an individual in the Maslow’s hierarchy of
needs, which is self-actualization
Leadership Styles
1. Authoritarian/Autocratic – a leadership style characterized by individual control over all decisions and
little input from group members.
2. Democratic/Participative/Shared – members of the group take a more participative role in the
decision making process
3. Transactional – it focuses on supervision, organization, and performance; transactional leadership is a
style of leadership in leaders promote.
4. Strategic – the ability to influence others to voluntarily make decisions that enhance the prospects for
the organization’s long term success while maintaining long term financial stability.
5. Transformational – one or more person engage with others in such a way that leaders and followers
raise one another to higher levels of motivation and morality.
4 I’s of Transformational Leadership
 Idealized Influence – leader serves as an ideal role model for followers and is admired
for this
 Inspirational Motivation – transformational leaders have the ability to inspire and
motivate followers
 Individualized Consideration – transformational leaders demonstrate genuine concern
for the needs and feelings of followers which brings out the best efforts
 Intellectual Stimulation –coe transformational leaders challenges followers to be
innovative and creative.
Job Satisfaction
Job Satisfaction

- It is a pleasant feeling resulting from the perception that one’s job fulfills or allows for the fulfillment of
one’s important job values
- People will be satisfied with their jobs as long as they perceive that their jobs meet their important
values.
- Job satisfaction is related to a person’s values.
- Different employees have different views of which values are important.
- Job satisfaction prevents job withdrawal

Factors associated to Job Satisfaction

Components of job satisfaction:
1. Attitude toward work – attitude is everything at the workplace

- Take control of your attitude - Be constructive, productive and

- Be solution oriented not problem pleasant; never criticize
focused - Stay away from gossip
- Avoid whiners and complainers

2. General working conditions

Physical

- Temperature and humidity - Illumination

- Ventilation - Noise and vibration

Physiological

- Work time and work breaks - Occupational healthcare

- Worker relationships - Safety

3. Attitude toward company

- Stress management - Career success

- Interpersonal relations - Productivity
- Motivation - Leadership
- Decision making - Teamwork

4. Monetary benefits

- Paid vacation - Perks and bonuses

- Meal breaks - Achievement award employees
- Social security allowance
- Pay raise

Increasing Job Satisfaction

 Employee Job Satisfaction

Appropriate tasks and roles include safety precautions, especially when work could involve risk to workers’
health and safety.

Job Satisfaction: Supervisors and Co-workers

The two primary people in an organization who affect job satisfaction are co-workers and supervisors.
 A person may be satisfied with these people for one of three reasons:

- The people share the same values, attitudes, and philosophies.

- The co-workers and supervisor may provide social support, meaning they are sympathetic and caring.
- The co-workers or supervisor may help the person attain some valued outcome.

Co-worker relationships can contribute to job satisfaction, and organizations therefore try to provide
opportunities to build positive relationships.

Monitoring Job Satisfaction

Employers can better retain employees if they are aware of satisfaction levels, so they can make
changes if employees are dissatisfied.
The usual way to measure job satisfaction is with some kind of survey.
A systematic, ongoing program of employee surveys should be part of the organization’s human
resource strategy.
This allows the organization to monitor trends and prevent voluntary turnover.
Job Involvement
It refers to the psychological and emotional extent to which someone participates in his/her work,
profession, and company.
Showing up to work on time is half the battle. Top performers are engaged in their work and have high
job involvement.
Organizational Commitment
Determinants of satisfaction:

- Rewards constitute a more direct cause of satisfaction than performance

- Rewards based on current performance cause subsequent performance

Job Satisfaction has impact on turnover, absenteeism, tardiness, accidents, grievances and strikes
Organizational Culture
The basic pattern of shared values and assumptions shared within the organization.
Defines what is important and unimportant.
Company’s DNA—invisible, yet powerful template that shapes employee behavior
ARTIFACTS: Stories and Legends

- Social prescriptions of desired (or dysfunctional) behavior

- Provides a realistic human side to expectations
- Most effective stories and legends:

o Describe real people o Known throughout the organization

o Assumed to be true o Are prescriptive

Artifacts of Organizational Culture

- Maintain and transmit organization’s culture

- Need many artifacts to accurately decipher a company’s culture
- Observable symbols and signs of cultural
- Physical structures, ceremonies, language, stories

ARTIFACTS: Rituals and Ceremonies

- Rituals - Ceremonies
o Programmed routines o planned activities for an audience
o (e.g.., how visitors are greeted) o (e.g.., award ceremonies)

ARTIFACTS: Organizational Language

- Words used to address people, describe customers, etc.

- Leaders use phrases and special vocabulary as cultural symbols
- Language also found in subcultures

ARTIFACTS: Physical Structures/ Symbols

- Building structure -- may shape and reflect culture

- Office design conveys cultural meaning
- Furniture, office size, wall hangings

Organizational Culture Strength

- How widely and deeply employees hold the company’s dominant values and assumptions
- Strong cultures exist when:
o most employees understand/embrace the dominant values
 o values and assumptions are institutionalized through well-established artifacts
o culture is long lasting -- often traced back to founder

Merging Organizational Cultures

When one company buys another, the strategy for combining the two organizational cultures. The
conceptual integration at the top will cascade down into the operations and culture.

Changing/Strengthening Organizational Culture

- Actions of Founders/Leaders
o Org culture sometimes reflects the founder’s personality
o Transformational leaders can reshape culture -- organizational change practices
- Aligning Artifacts
o Artifacts keep culture in place
o e.g., create memorable events, communicating stories, transferring culture carriers
- Introducing Culturally Consistent Rewards
o Rewards are powerful artifacts – reinforce culturally-consistent behavior
- Attracting, Selecting, Socializing Employees
o Attraction-selection-attrition theory
o Socialization practices
Attraction Selection Attrition Theory (ASA)
The ASA model was introduced by Benjamin Schneider is a psychological theory that describes why
organizations look and feel the way they do.
It is a person-based model for understanding organizational behavior by considering person effects as
the causes of structures, processes, and technology of organizations.
The model explains how individuals join and leave organizations, stating that people are functions of
three interrelated dynamic processes:
o Attraction -- applicants self-select and weed out companies based on compatible values
o Selection – applicants selected based on values congruent with organization’s culture
o Attrition -- employees quit or are forced out when their values oppose company values

Organizational Socialization Defined

The process by which individuals learn the values, expected behaviors, and social knowledge
necessary to assume their roles in the organization.
Socialization: Learning and Adjustment

- Learning Process
o Newcomers make sense of the organization’s physical, social, and strategic/cultural dynamics

- Adjustment Process
o Newcomers need to adapt to their new work environment
 New work roles
 New team norms
 Newcomers with diverse experience adjust better
Stages of Socialization

Improving Organizational Socialization

- Realistic job preview (RJP)

o A balance of positive and negative information about the job and work context
- Socialization agents
o Supervisors – technical information, performance feedback, job duties
o Co-workers – ideal when accessible, role models, tolerant, and supportive