BCM Workbook 3 2022

BUSINESS AND CHANGE MANAGEMENT
MANAGING AND EMBEDDING CHANGE
WORKBOOK 3
Updated December 2021

Valid for exams from June 2022 to March 2023
Business and change management
First published 2016
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3: Managing and embedding change
Table of contents
The syllabus ............................................................................. 1
Learning outcomes and content .................................................. 1
3 Introduction to Workbook 3 ..................................................... 3
3.1 Managing and embedding change .......................................... 3
3.2 Topic diagram ..................................................................... 4
3.3 The nature of change ........................................................... 4
3.4 Building the case for change ................................................. 6
3.5 Use of a change agent ......................................................... 7
3.6 Leadership .......................................................................... 8
3.6.1 The difference between management and leadership ......... 8
3.6.2 What makes a good leader ............................................. 9
3.6.3 Effective leadership ..................................................... 10
3.7 Organisational culture ........................................................ 13
3.7.1 The cultural web.......................................................... 14
3.7.2 Using the cultural web ................................................. 15
3.8 Motivation ........................................................................ 16
3.8.1 Maslow’s hierarchy of needs............................................................. 17
3.8.2 Herzberg’s hygiene and motivating factors ................................ 19
3.8.3 Expectancy theory ....................................................... 20
3.8.4 Goal setting theory ...................................................... 22
3.9 Planning for change ........................................................... 23
3.10 Making the change ........................................................... 24
3.10.1 Lewin’s three stage change model .............................................. 25
3.10.2 Resistance to change ................................................. 25
3.10.3 Barriers to change ..................................................... 26
3.10.4 The psychological contract .......................................... 27
3.10.5 The transition curve ................................................... 29
3.11 Managing the change ....................................................... 30
3.11.1 Intervention methods ................................................. 30
3.11.2 Overcoming barriers to effective communication ............ 31
3.11.3 Conflict management and resolution ............................ 33
3.12 Embedding the change ..................................................... 37
3.12.1 Management by Objectives ......................................... 37
3.12.2 Team building ........................................................... 39
3.12.3 Creating group cohesiveness ....................................... 40
3.12.4 Development and appraisals ....................................... 41
3.12.5 Reinforcing success .................................................... 44
3.12.6 Job design ................................................................ 46
3.12.7 Delegation ................................................................ 47
Summary ......................................................................... 50
Quiz questions..................................................................... 52
Quiz answers ...................................................................... 53
Scenarios.......................................................................... 54
Exercise solutions ................................................................ 63
The syllabus
Syllabus aim
Discuss, evaluate and apply approaches and techniques to plan for
change, manage the change process and embed new ways of
working.
Learning outcomes and content

Discuss, evaluate and apply approaches and techniques to plan for
change
▪ Classifying change
▪ Building the case for change and the change vision
▪ Use of a change agent
▪ Effective leadership including

− McGregor’s Theory X and Theory Y
− Likert’s leadership styles
− Adair’s action centred leadership
▪ Organisational culture - the cultural web and innovative cultures
▪ Practical ways to motivate staff

− Maslow’s hierarchy of needs
− Herzberg’s hygiene and motivating factors
− Expectancy theory
− Goal-setting theory
▪ Planning for change and the change kaleidoscope

Discuss, evaluate and apply approaches and techniques to manage
the change process
▪ Lewin’s Three Stage Change Model
▪ Resistance and barriers to change including

− Lewin’s force field analysis
− The psychological contract
− The Kubler-Ross change curve
▪ Kotter’s strategies for change
1
▪ Effective communication and conflict resolution

Discuss, evaluate and apply approaches and techniques to embed
new ways of working
▪ Management by Objectives
▪ Team building and group effectiveness
▪ Development and appraisals
▪ Rewards to reinforce success
▪ Job design and delegation

Note
All CIPFA learning materials and examinations use £ (pounds) and
p (pence) as the designated currency.
2
3 Introduction to Workbook 3
In workbooks 1 and 2 we looked at how to manage programmes,
and the projects they incorporate, to bring about transformational
change within an organisation.
However the benefits required from the change will only be realised
if those charged with supporting, initiating, developing and
embedding the change are engaged and onside.
In this workbook we will therefore look at the ‘people’ aspect of
change and the approaches needed to manage the change
successfully.
3.1 Managing and embedding change

Stakeholder engagement is the key to successful change. The faster
and more significant the change, the more those responsible will
need to lead, guide and motivate stakeholders through the process.
In this workbook we will look at approaches to planning for change,
managing the change process and ensuring that the new ways of
working become embedded in the organisation. We will cover the
importance of good leadership, the problems that often arise when
change is anticipated and ways in which obstacles can be overcome.
We will also look at models for motivating staff, encouraging team
working and designing jobs to encourage workforce commitment
both immediately after the change and in the longer term.
3
3.2 Topic diagram
The nature MANAGING AND

of change EMBEDDING
Building the
case for Planning for Making the Managing the
change change – the change change
change
Kaleidoscope
Change Interventions
life cycle
Using a change
Communication
agent
Managing
barriers and
Conflict
Leadership Motivation resistance
resolution
to change
Culture and the

cultural web Supporting
the transition
curve
Embedding
Content Process change
theories theories
MbO
Maslow Herzberg
Team building
and cohesiveness
Expectancy Goal theory
theory
Development, job
design and
reinforcing success
3.3 The nature of change

In workbook 2 we discussed the changes which are delivered by a
programme and the essential importance of planning and overseeing
the change from the old ways of working to the new, in order realise
the benefits of the transformed organisation described in the
programme vision.
To decide how best to manage a change process, it is helpful to
consider how significant the impact is likely to be for the
stakeholders involved.
4
Key definitions
Incremental change:
Step by step change building on current skills and resources.
Big Bang change:
Sudden change, often forced as a reaction to a crisis, with initiatives
implemented on many fronts simultaneously.
Realignment:
Changes to working methods but no impact on overall organisational
culture.
Transformational change:
A fundamental change which requires a major shift in the
organisation’s culture.
A useful model for classifying change1 is shown below:
Figure 1 – Classifying change
Where change can be introduced incrementally, stakeholders are

given time to adapt. Even where the change is transformational
1
Balogun, J. and Hope Hailey, V. (1999), Exploring Strategic Change, Prentice Hall
5
(requiring a change to the organisation’s core culture), a planned

change process allows the organisation to evolve at a pace that
stakeholders feel comfortable with.
However, some changes are introduced in response to unavoidable
factors requiring immediate action – such as the behaviour of
external competitors, technological advances, legislative changes
etc. Since change is faster, and there is less time to plan, it is likely
to be far more disruptive for staff. If the change required will mean
a change to the organisation’s core culture, it is also likely to meet
with higher levels of resistance and conflict.
Exercise 3.1
Categorise the following changes using the categories described
above:
▪ Cloud Airlines expansion to become a transatlantic airline
▪ The reorganisation of the fire and rescues service in Pawton
▪ Hartshap Hotels movement upmarket
▪ The reorganisation of the Colswell council SCHOP
Where change can be introduced over time and without the need to
alter the underlying culture of an organisation it can usually be
managed within the normal operations of the business. If the
change has to be introduced quickly, particularly if it is likely to
require a change to the whole culture, it will need to be more closely
managed and controlled to ensure that the stakeholders remain
engaged and adopt the new ways of working in the long term.
However in both cases the change must be planned, managed and
embedded within the organisation is it to be a success.
3.4 Building the case for change

For a change process to be successful, all the stakeholders involved
must understand why the change is required, how it will work and
what benefits it should deliver.
You should remember from workbook 2 that in a change
programme, one of the key purposes of the programme vision
statement is to encourage the buy-in, motivation and coordination of
all programme stakeholders. It does this by clearly and simply
illustrating what the change will deliver. First summarised in the
programme brief and then refined in the programme definition
6
stage, the programme vision statement describes the future state of

the organisation and the benefits it will bring.
Where the change being implemented by an organisation is not the
result of a programme, a vision of the future remains a vital tool to
generate stakeholder support. A change vision statement for the
proposals should therefore be drawn up whenever a significant
change is being introduced to build and communicate the case for
change.
Key definition
Change vision:
A picture for people of what the organisation will look like after the
change has been implemented. It serves to motivate people and it is
essential to any successful change you’re trying to make.2’
The change vision may be written by the change agent.
3.5 Use of a change agent

To implement a large scale change requires management and
coordination. It is usual therefore to appoint a person to lead the
change process. This person is often referred to as a change agent.
Key definition
Change agent:
The person responsible for designing and coordinating a change
process. A change agent leads the change, engages stakeholders
and overcomes obstacles to ensure the benefits envisaged from the
change are delivered.
When the organisation is implementing a change programme, the
term Business Change Manager (BCM) is used to describe the
change agent. You will remember that in a large programme there
may be several BCMs (and each BCM may be in charge of a separate
business change team).
2
NineFeetTall (2015), the little book of Change Management, Bristol: Rapport Digital
7
The change agent may be an external appointee or an internal staff

member. They will need to be highly skilled in areas such as:
▪ Leadership
▪ Building relationships
▪ Keeping sight of the bigger picture
▪ Communication
▪ Problem solving
▪ Negotiation
Exercise 3.2
List the advantages and disadvantages of using an internal change
agent rather than an external one.
3.6 Leadership
Leadership is one of the key skills required from a change agent but
one which has proved difficult to define. One definition, from
General Eisenhower (US president during the 1950s) sums up the
role as:
Key definition
Leadership:
The art of getting someone else to do something you want done
because he wants to do it.
There is a vast amount of research and developed theory on the
subject of what makes a good leader. We will focus here on the key
areas relevant to managing change.
3.6.1 The difference between management and

leadership
Management and leadership are not the same. Both are vital roles
within an organisation but fulfil different functions. The differences
are shown in the table below3
3
Buchanan, D. and Hucznski, A. (2004). Organisational Behavior: An Introductory Text (Fifth Edition).
Harlow: Pearson Education Limited
8
Leadership functions Management functions

Creating an Establishing Plans and budgets:
agenda direction: Decide action plans and
Vision of the future. timetables, allocate
Develop strategies for resources.
change to achieve
goals.
Developing Aligning people: Organising and staffing:
people Communicate vision Decide structure and
and strategy, influence allocate staff, develop
creation of teams which policies procedures and
accept validity of goals. monitoring.
Execution Motivating and Controlling and problem
inspiring: solving:
Energise people to Monitor results against plan
overcome obstacles, and take corrective action.
satisfy human needs.
Outcomes Focus on change: Focus on consistency:
Produces positive and Produces order, consistency
sometime dramatic and predictability.
changes
This difference does not mean that one person cannot be both a
good manager and a good leader. It simply means that what is
required from a leadership role is different.
A key question therefore is: What makes a good and effective
leader?
3.6.2 What makes a good leader

Research on what makes a good leader has been carried out for over
seventy years. Numerous traits have been identified as essential
and much debate has centred on whether these traits can be learned
or whether they are innate.
However although the studies into trait theory are not conclusive
(over 80 different traits have been identified across the many
different studies), some generalities have been highlighted)45.
4
Shaw, M. (1976). Group Dynamics: Second Edition, New York: McGraw-Hill.
5
Fraser, C. (1978). “Small Groups: Structure and Leadership”, In Henri Tajfel and Colin Fraser (EDS),
Introducing Social Psychology, Harmondsworth: Penguin Books, (pp. 176-200).
9
Leaders tend to score more highly than the average person on:
▪ Ability (intelligence, relevant knowledge for the job, verbal

facility)
▪ Sociability (participation, cooperativeness, popularity)
▪ Motivation (initiative and persistence).

This research would suggest therefore that any change leader
appointed to run a change process should at least have these
characteristics if they are to be successful.
3.6.3 Effective leadership

How should a leader lead?
One line of management theory looks at the types of workers within
the organisation and the leadership style that might best be suited
to their needs.
McGregor6 described two extremes of worker within an organisation.
He did not suggest that all workers would fall absolutely into one of
the two categories, but that there was a spectrum of behaviours with
X and Y behaviour at either end.
Theory X
▪ The average person is by nature idle, lacks ambition, dislikes

responsibility, prefers to be led, craves security and is resistant
to change.
▪ Managers need to motivate staff through rewards and

punishment.
▪ The average person prefers to be directed; to avoid

responsibility and is relatively unambitious.
Theory Y
▪ People are not by nature passive or resistant to organisational

needs, rather they want to work. Effort in work is as natural as
rest and play.
▪ People will apply self-control and self-direction in the pursuit of

organisational objectives, without external control or the threat
of punishment.
6
McGregor D, (2002) Theory X and Theory Y. Workforce; Jan Vol. 81 Issue 1
10
▪ People usually accept and often seek responsibility. Motivation

comes from potential for development and the capacity to
assume responsibility
McGregor’s research indicated that where managers believe that
employees are Theory X types they will adopt a coercive dictatorial
approach and see employees as a barrier to overcome. But that if
the employees are seen as Theory Y types with the potential to
achieve they will adopt a leadership role which encourages them to
reach their goals.
It has been further suggested7 by Likert that these two styles of
leadership are at either end of a spectrum of leadership behaviours
with authoritarian leadership styles (typified by the image of an
army sergeant) at one end and more egalitarian styles at the other.
The table below explains the features of four basic leadership styles
at different points across the spectrum.
Exploitative Benevolent Consultative Participative

authoritative authoritative
Decisions are Some Subordinates Genuine
imposed awareness of are consulted participation in
lower level before decision
concerns but decisions are making at all
policy decisions taken levels of the
taken at the organisation
top
Subordinates Subordinates Subordinates Organisational
are motivated are motivated motivated by goals are set
by threats by a mix of rewards and with
threats and may be participation of
rewards involved in all staff and
personal goal personal
setting targets linked
to these
accepted goals
Authority is Delegation only Authority over Staff free to be
centralised with within the strict daily work but creative and
minimal framework set not major perform their
delegation by leader decisions work in the
way they
choose
7
Likert, R (1967) The Human Organization. Its Management and Value McGraw-Hill: New York
11
Exploitative Benevolent Consultative Participative

authoritative authoritative
Little Mainly Communication Free
communication downward both up and communication
between levels communication down although up and down
in the hierarchy upward the hierarchy
communication
still constrained
No teamwork Little Consultation Staff at all
responsibility leads to levels share
felt at lower greater buy in responsibility
levels of the and some for achieving
hierarchy sense of goals and work
responsibility as a team
and team work
Likert argued that the participative approach was to be favoured as
it produced a more motivated and committed workforce.
However, even if workers are believed to largely be Theory Y types,
it may not be the most appropriate form of leadership in all
circumstances. For example, if a decision must be made quickly, the
participative style, which involves extensive consultation, may be too
time-consuming. Imagine a leader on the battlefield stopping to
consult with the troops on the action to be taken. In the same way,
some strategic changes may be too complex or too wide reaching for
a consultative style to produce a consensus. In this case decisions
may be imposed but implemented in a more participative style.
Exercise 3.3
Identify the leadership styles in operation in
• The Hartshap Hotel Chain under Jacques Robert
• Colswell City Council under Sam Beechwood
Discuss whether these styles will be suitable to lead each
organisation through the planned changes.
Varying the leadership style

A good change agent will therefore need to vary the leadership style
adopted to suit the situation. Adair proposed a situational leadership
model8, which argued that the leader must balance the needs of the
8
Adair, J. (1973) Action Centered Leadership New York: McGraw-Hill
12
Task, Team and Individual. His famous three circle diagram (see
below) depicts the three areas in which a leader must vary the
amount of attention paid according the requirements of the
situation.
▪ Task - setting clear objectives and expectations, and managing

the processes required for people to follow.
▪ Team - ensuring communication and interactions between the

team members are smooth, and that the workload is balanced
across the team.
▪ Individual - considering the individual needs of people and

spending time and effort getting to know how individuals are
feeling.
Figure 2 – Adair’s Action Centred Leadership model
3.7 Organisational culture

One key aspect of transformational change mentioned above is that
it involves a change to the culture or paradigm of the organisation.
Making a change to organisational culture is a significant challenge
for a change agent and before we consider the planning process in
detail we must first look at what we mean by an organisation’s
culture.
13
Key definition
Organisational culture:
The sum total of belief, knowledge, attitudes, norms, customs,
values and peculiarities that prevail in an organisation. Often
summarised as ‘the way we do things around here’9.
A transformational change will involve making a change to the
existing culture, to establish and embed different ways of working
and thinking.
3.7.1 The cultural web

To understand and analyse an organisation’s culture (and thereby
determine the extent to which it will need to be altered during the
change process), a useful framework is the cultural web10.
Figure 3 – Cultural web
The outer rings represent the cultural artefacts – those aspects of

the business that give clues about the underlying paradigm of the
organisation (the inner ring).
9
Deal, T.E. (1983). Corporate Cultures the Rights and Rituals of Corporate Life. Reading: MA. Addison
Wesley
10
Johnson G, Whittington R, and Scholes, 2008 Exploring corporate strategy 8th edition Prentice
14
Key definition
Organisational paradigm:
The hidden, yet taken-for-granted assumptions and beliefs that are
shared by those within the organisation.
The cultural artefacts are made up of the following:
Stories: Told by members of the organisation to each other, to new
recruits and to outsiders, which explain important traditions, events,
leadership styles and personalities (past and present) and so
communicate what is expected.
Symbols: A short-hand representation of the nature of the
organisation including logos, dress codes, titles, signs of status such
as cars, offices etc.
Power structures: Where the power lies within the organisation
(whether as a result of position, or control of resources or
information). The most powerful groups are likely to be most closely
associated with core assumptions and beliefs.
Organisation structure: The formal organisational structure, but
also the more informal ways in which the organisation works in
practice. The structure reflects important relationships.
Controls: The formalised control, target measurement and reward
systems that focus attention and activity on what is considered
important in the organisation.
Routines and rituals: The rituals of organisational life, such as
training programmes and induction processes, and the routine
expectations such as hours worked and effort required reinforce ‘the
way we do things around here’. These are often unwritten rules
which are difficult to challenge.
3.7.2 Using the cultural web

By gathering information about each of the cultural artefacts within
the organisation, the paradigm can be identified. This may be done
by holding a workshop of key organisational stakeholders and asking
them to agree on examples of each artefact for the organisation in
its current form.
The process can then be carried out again, this time asking
stakeholders to suggest how each aspect would need to look after
the change process for it to be successful.
15
The differences between the two webs provide a focus for the
change agent’s activities and should identify where within the
organisation resistance to the change might be expected.
Exercise 3.4
Colswell council requires the new Social Care and Housing for Older
People (SCHOP) division to become more innovative in the way it
improves the lives of older people in the city.
Use the cultural web to:
(i) Analyse the current culture of the council
(ii) Suggest how each aspect of the web would need to look if an
innovative culture is to be successfully introduced into the
SCHOP division.
3.8 Motivation
One other essential aspect of staff behaviour which must be
incorporated into any change plan is that of motivation. Within all
organisations, one of the most important assets, and the one that
will have the greatest impact on the efficiency and overall success of
the change, is the workforce.
It is therefore essential that management understand how to
motivate them to succeed. Before rewards can be linked to targets,
it must also be clear what rewards employees may aspire to receive.
Key definition
Motivation:
The force that directs an individual’s behaviour. It has three
elements – becoming aware that something is wanted or needed,
choosing a path or strategy to acquire it, and deciding much energy
to expend in pursuit of the goal.
Motivation theories tend to focus on either what it is that is people
want (content theories) or on the behaviour they adopt to achieve it
(process theories).
In this next section we will look at a number of motivation theories
and consider how each may apply in the workplace. In your exam
you may be asked to make practical suggestions to improve the
motivation of staff within a given scenario. The theories we will
cover below will provide a framework for such suggestions.
16
Content theories – Maslow, Herzberg

Process theories – Expectancy theory, Goal setting theory
3.8.1 Maslow’s hierarchy of needs

The first major study of motivation was carried out by Maslow11 in
the 1940s, but is still frequently referred to today. He considered
that people have a hierarchy of needs, as shown on the diagram
below:
Figure 4 – Maslow’s hierarchy of needs
The needs in the hierarchy are:
▪ Physiological needs: such as satisfaction of hunger and thirst,

the need for warmth and sleep.
▪ Safety needs: including freedom from pain or attack, protection

from danger, and a need for predictability and orderliness.
▪ Social needs: originally called ‘love needs’, these include

affection, a sense of belonging, social activities and friendships.
11
Maslow AH (1943) A Theory of Human Motivation, Psychological Review (50) pg. 370 - 96
17
▪ Esteem (or ego) needs: these include self-respect (including a

desire for confidence, strength and independence) and the
esteem of others (including reputation, prestige, attention and
appreciation).
▪ Self-actualisation: the development of one’s full potential – in

Maslow’s words ‘becoming everything one is capable of
becoming’.
The order of the hierarchy
Maslow suggested that the hierarchy represented the order that
people usually concentrate on their needs, moving from the most
basic to the highest order needs.
For example, people who are hungry or cold will worry less about
their reputation; people who feel they are in danger will not be too
concerned about their social activities. He argued that once a need
had been satisfied it no longer acted as a motivator and a person will
then be motivated to satisfy a higher level need.
Application to the workplace
This analysis offers a useful framework for analysing the needs and
expectations of the workforce; if managers can identify which needs
a worker needs satisfied they can offer opportunities to satisfy them
and so direct particular behaviour.
Exercise 3.5
Suggest how the workplace could meet the needs of the following
staff within the Pawton fire and rescue service:
▪ The status needs of a chief fire officer within a local fire station
▪ The safety needs of an individual fire-fighter
▪ The social needs of staff working in a control room
Problems with the applying the theory in practice
▪ The order of the hierarchy: Some people will forgo social needs
to achieve self-actualisation, such as a top executive who will
forgo friends and family to achieve promotion. The image of the
starving artist suggests that some people place a higher value
on self-actualisation than physiological needs and polar
explorers or solo yacht sailors seem to rate esteem or self-
actualisation higher than safety.
18
▪ The way different people interpret the same need: some may
require only minimal security before wanting to achieve prestige
and higher pay, security for some may be met by simply having
a job, others may need to work for a stable, long-established
organisation to achieve the same satisfaction.
▪ Organisations can only satisfy some needs indirectly (e.g. sleep)

and some staff will seek satisfaction of their needs elsewhere –
for example social needs via sports clubs.
▪ The model tends to underestimate the importance of continuing

to meet needs that have already been satisfied (such as
physiological needs).
▪ The time it takes for a higher-level need to emerge once a

lower-level one has been satisfied will vary between workers.
▪ The role of money, one of the most important rewards in the

workplace, is not clear. For some it is a means to fulfil lower
level needs, for others it may be an important status symbol.
3.8.2 Herzberg’s hygiene and motivating factors

Herzberg states that the content of a person’s job is the primary
source of their motivation (1959)12 i.e. the key to motivating
someone is to ensure job satisfaction through job design. He was
one of the first to argue that it was not the monetary reward or
other types of compensation that truly motivated people. He
distinguished between hygiene factors and motivators.
Key definitions
Hygiene factors:
Baseline needs that, if not satisfied, cause dissatisfaction; examples
include wages, job security, working conditions and interpersonal
relations at work.
Motivating factors:
These are things that encourage people to work harder or better.
These tend to relate to the content of the job itself and include being
given responsibility or recognition, gaining a sense of achievement
and being asked to do interesting or enjoyable work.
12
Herzberg, Frederick (1959), The Motivation to Work, New York: John Wiley and Sons, F.I.
19
Hygiene factors are the things at work that people usually grumble
about. They are aligned with the first three levels of Maslow’s
hierarchy.
Motivating factors may increase a person’s motivation even if the
person is experiencing dissatisfaction. Many nurses may feel they
are underpaid (a hygiene factor) but they are still motivated by
feeling that they are helping others (a motivator). They are more
closely aligned with the final two levels of Maslow’s hierarchy.
The practical application of Herzberg’s theory for the change agent is
that attention must be paid to addressing hygiene factors to avoid
low morale in the workforce, but to motivate staff will require further
focus on the work itself and the way in which it is carried out.
Factors associated with low job satisfaction include unclear targets
or objectives, poor organisational communications, insecurity and
lack of monetary and intangible rewards.
Factors associated with high levels of motivation include a variety of
meaningful tasks, unobtrusive supervision, greater responsibility,
self-pacing, chances for self-development and feedback on
performance.
Exercise 3.6
As part of his employment package, Hartshap may provide Louis
Augustin a company car when he moves to Kravej to oversee the
building of the new hotel.
Would you categorise a company car as a hygiene factor or a
motivator? Justify your answer.
3.8.3 Expectancy theory

Expectancy theory stresses the importance of clarifying the
relationships between rewards and performance.
The principle of expectancy theory, first put forward by Vroom13 is
that motivation arises where you believe that a particular outcome
will result from your actions and it is an outcome that will satisfy
your needs.
For example, before putting in extra effort a worker might consider:
13
Vroom VH (1964) Work and motivation, Wiley
20
▪ I want a promotion (what’s in it for me).
▪ If I put in a lot of work will I get a promotion?

− If yes - it’s worth the extra effort (motivation)
− Maybe promotion is based on age, status, relationship.
Extra hard work will not lead to promotion. Therefore why
bother? (no motivation)
The theory therefore breaks motivation down into its constituent
parts as follows:
Motivation = Valence x Instrumentality x Expectancy

All three aspects, valence, instrumentality and expectancy must be
present for motivation to arise.
Key definitions
Valence:
The attractiveness of an outcome or reward i.e. whether it meets the
worker’s needs.
Instrumentality:
The likelihood that working harder will bring about the outcome.
This has two components – firstly that performance will improve with
harder work and secondly that increased performance will lead to
the desired reward
Expectancy:
The confidence an individual has that they can accomplish the
required tasks based on their skills or available resources.
Example – an announcement is made that promotions will be
offered to the members of the team that achieves the highest
customer satisfaction rating this quarter.
Valence – is promotion something you want? Perhaps you like
team working and believe promotion will make you lonely. Perhaps
you know it would involve moving and home security is too
important.
Instrumentality – firstly if you work harder will your team do
better? – perhaps you think that some other members are not good
enough or will never pull their weight so team performance won’t
improve. Secondly do you believe they will actually offer the
promotion? Perhaps they’ve made such comments before but then
21
reneged on the promise. Perhaps only some team members will get
promoted and you can’t be sure you’ll be one of them.
Expectancy – can we actually do what they’ve asked? Perhaps the
targets are too high? Perhaps the deadlines are too tight.
Only if all the component parts are in place will workers be
motivated to work harder. The lessons for management from
expectancy theory are the importance of designing rewards
structures which employees will value, clarifying the relationship
between performance and reward and establishing clear procedures
to evaluate performance and allocate reward.
3.8.4 Goal setting theory

Goal setting theory, originally developed in the 1960s, emphasises
the importance of goals to provide direction and motivation to
employees. There is strong empirical evidence that setting goals can
help to motivate people to achieve tasks.
However care must be taken when setting the goal. Think about a
very basic goal, for example ‘make fewer errors’ or ‘increase
accuracy’. An employee may want the reward offered for achieving
the goal and may also believe they can improve – but how will they
know when they’ve achieved it?
The acronym SMART14 is used to describe how a goal should be set.
A goal should be:
▪ Specific – make fewer mathematical errors in bank

reconciliations
▪ Measurable - 10% fewer instances of identified errors
▪ Attainable – zero errors may be unreasonable. Performance

may fall away if a worker does not believe a target can be
achieved
▪ Relevant – bank reconciliations should be a significant part of

the employees work and their accuracy should matter to the
organisation
▪ Timebound - 10% fewer instances of identified mathematical

errors in bank reconciliations over the next 3 months
14
Latham, G.P. and Locke, E.A. (1990). A Theory of Goal Setting and Task Performance. Englewood
Cliffs, NJ: Prentice Hall
22
Goals may be set by the manager or the individuals themselves.

Participation may lead to higher levels of performance since staff are
more likely to believe they are attainable and worth achieving.
It is important to remember that goals are only techniques in the
motivation process. Managers need to use their understanding of the
various motivation theories (such as needs, hygiene factors and
motivators, and expectancy) to identify what will motivate people
before setting individual and team goals.
Exercise 3.7
Below are two targets set for employees of the Colswell City Council
Housing and Adult Social Care directorate.
▪ Increase the number of visits made to older residents each

week
▪ Respond to email queries within five days

Suggest how using the SMART criteria may improve the objectives
set
3.9 Planning for change

Like all projects, implementing a change must be carefully planned.
The Change Kaleidoscope15 tool has been developed to help change
agents design a context-sensitive approach to change. It is used to
identify the specific difficulties and complexities associated with the
planned change and so allow for a more focused plan to be drawn
up.
The tool requires the change agent to consider the change from the
following eight angles:
▪ Time – how long the organisation has to achieve the change
▪ Scope – the degree of change required. Will this alter the

paradigm, or is it a smaller, realignment change?
▪ Preservation – there will always be certain things that should

not be changed, such as staff commitment, high performance in
15
Hope Hailey V, Balogun,J., (2002), 'Devising context sensitive approaches to change: the example of
Glaxo Wellcome.', Long Range Planning, 35(2), p.153-178
23
a particular team, or a good reputation. How can these aspects

be identified and preserved?
▪ Diversity – of staff/team experience of change and attitude. Do

the different staff groups need to be managed differently?
▪ Capability – judged at three levels:

− Individual – the ability of individuals to cope with the
transition.
− Managerial – the ability of managers to help their staff
through the transition process.
− Organisational – the existence of organisational resources
with the knowledge and ability to manage change of the
type required.
▪ Capacity – the resources that are available for investment in the

proposed change
− The budget available
− The time people have to devote to the change
− The number of people with the skills required
▪ Readiness – the extent to which staff are aware of the need to

change, and are ready to embrace it.
▪ Power – the amount of power that the change agents have and
the autonomy they have in order to bring about the change.
Exercise 3.8
The change agents in charge of the Pawton fire and rescue service
change programme are now planning the move to using the new
computer systems in the new control centres.
Use the Change Kaleidoscope to list the considerations they would
need to factor in to the change plan.
3.10 Making the change

Once the change agent is clear about what will need to change, the
process of carrying out the change can begin.
24
3.10.1 Lewin’s three stage change model

The three stage change model suggests that the life cycle of a
change can be split into three stages16:
1. Unfreezing
At this stage the existing ways of working and mind-sets in the
organisation are challenged, establishing the need and motivation
for change. The change vision will be communicated and sold to the
stakeholders.
2. Change
The process of introducing the new working practices and developing
the new behaviours required. People must be supported and given
time to adjust and accept the new processes and structures.
3. Freezing
At this stage, the new order is bedding in and being reinforced in the
organisation, becoming the new status quo. People in the
organisation should begin to feel as comfortable as they were before
the change process.
3.10.2 Resistance to change

The problem for the change agent is that there may be significant
resistance to the change. This will make the process of unfreezing
and changing much harder and will need to be addressed if the
benefits from the change are to be realised. The tension between
the drivers for change and the barriers to be overcome can be
illustrated diagrammatically17.
16
Lewin, K (1947) Frontiers in Group Dynamics, London: Sage publications
17
Ibid.
25
Figure 5 – Lewin’s force field analysis
Driving forces are those factors which will help to make the case for,
and encourage change. This may include individuals and groups
whose support can be enlisted, or arguments which must be clearly
communicated.
Resisting forces are barriers to change – factors which are blocking
the change process and will need to be overcome. Some of these
are factors will be identified by analysis of the cultural web, but
others are related to individual concerns and they are discussed
further below.
3.10.3 Barriers to change

Barriers to change may come about in part as a result of the culture
if the organisation. If the changes threaten existing power
structures, or agreed norms, or if current reward systems are
inconsistent with the new ways of working, it is to be expected that
staff will resist the change. These sources of resistance should be
identified using the cultural web analysis discussed above.
However, in addition to cultural barriers it is likely there will also be
individual worries which cause people to resist organisational
change.
Exercise 3.9
Consider what concerns you would have if your organisation was to
introduce major changes?
26
3.10.4 The psychological contract

One of the reasons that individuals may be so resistant to a change
is that it feels as though the organisation is changing the unwritten
agreement they made with staff about what to expect.
Employees know what activities they are expected to perform as
part of their job description, but often have additional expectations
about how the employers will behave and what additional benefits
and opportunities being part of the organisation will bring. When
these expectations are not met, employees can feel as though the
organisation is breaching the psychological contract.
Key definition
Psychological contract:
An unwritten contract between employers and employees which
covers a series of mutual expectations and satisfaction of needs
arising from the people-organisation relationship18.
Features of the psychological contract
▪ Employee expectations are likely to include:

− The provision of safe and hygienic working conditions
− Challenging and satisfying work
− Opportunities for personal development
− Respectful treatment
− An attempt by the organisation to provide job security
▪ The organisation expects the employee to:

− Accept the organisation’s ideology, vision and mission
− Work towards the organisation’s goals
− Show loyalty, observe reasonable standards of behaviour
− Not abuse the organisation’s goodwill
18
Mullins LJ (2002) Management and Organisational Behaviour, Harlow: FT/Prentice Hall
27
Benefits of the psychological contract

In organisations where the psychological contract is effective,
Stalker19 observed the following features in managements’ approach
to staff:
▪ Caring – demonstrating genuine concern for the individual
▪ Communicating – the aims and goals of the organisation
▪ Listening – valuing the input of the staff
▪ Knowing – getting to know the staff as individuals,

understanding their home lives and their needs and motives
▪ Rewarding – knowledge that money alone is not sufficient – but

also providing praise and recognition
The psychological contract today
In the past decade, research suggests this contract is regularly
violated as a result of intense work pressure and constant
organisational change including large scale redundancies.
Employees tend to stay for shorter periods of time and there has
been a reduction of trust on both sides.
Traditionally working for a public service organisation involved a
very strong psychological contract. People entered the service,
stayed there for life, and were rewarded with a safe (often
generous) pension. A number of factors specific to public service
organisations have acted to change that situation, for example the
blurring of the boundaries between public and private organisations,
the movement of people between private and public organisations
and the adoption of ‘market principles’. Other factors within the
wider society may also be relevant, for example a reduced feeling of
‘community’ or ‘society’, and a tendency to increase demands on
employees without increasing rewards.
Change and the psychological contract
Introducing transformational change does not have to mean that the
organisation is in breach of its psychological contract. But
understanding its importance for employee morale and the impact it
19
Stalker K (2000) The Individual, the Organisation and the Psychological Contract, The Institute of
Administrative Management
28
can have on expectations can help the change agent to plan the
change more carefully.
3.10.5 The transition curve

One of the most important aspects in minimising resistance to
change is anticipating the way in which people will adapt to change
over time and matching the management approach used to the
stage they have reached in the change life cycle. A popular model
to illustrate the gradual acceptance of change is illustrated below.
Figure 6 – The Kubler-Ross20 change curve
Different individuals pass through the curve at different times and at

different speeds, which is why the ‘one cure fits all’ approach will
never work.
However, as far as possible, the change agent should adapt their
role to match the needs of the employees as they move through the
change curve:
▪ Inform: During the initial stages of shock and denial the role of
the change agent is to provide as much information as needed
and provide opportunities for staff to ask questions and express
20
Kubler-Ross, E (1969) On death and dying, Routledge
29
concerns. The role of the change vision will be key in

communicating the benefits of the change and helping staff to
buy-in to the changes.
▪ Support: As the inevitability of change is accepted, the change

agent should provide practical and emotional support. Training
sessions should provide staff with the knowledge and skills they
will need in their new roles and provide clear guidance on the
behaviours and attitudes that will be expected.
▪ Reinforce success: As employees accept the new ways of

working, they must experience the benefits for themselves.
This may be through the linking of rewards to the results which
can now be achieved, an improvement in their experience at
work, and/or some form of gain sharing arrangement.
All these stages are discussed further below.
3.11 Managing the change

As we have stressed throughout these workbooks, stakeholder
engagement is the key to successful change. In this section we will
look at specific methods of managing people to achieve and maintain
this engagement during a change process. We will consider:
▪ Intervention methods
▪ Overcoming barriers to communication
▪ Conflict resolution
3.11.1 Intervention methods

There are a number of interventions21 which can be combined to
help people through a change process.
▪ Education and communication: This is essential at the start

of any change programme and will be particularly important if
there are rumours or misinformation already circulating.
However, for education and communication to be effective, it is
important that there is a good relationship between
management and staff (or they may not believe what they
hear). The process of putting together and delivering a
successful communication plan was covered in workbook 1.
21
Kotter, J. P. and Schlesinger, L, A. (1979) Choosing Strategies for Change, Harvard Business Review
30
▪ Participation and involvement: This will be vital where

management need information from staff within different
functions and at different levels of the organisation to inform
the change. Participation has also consistently been shown to
lead to commitment and buy-in from stakeholders rather than
simple compliance. However it can be extremely time
consuming and may not achieve benefits commensurate with
the time and cost involved.
▪ Facilitation and support: This may be practical support in the

form of training or team building activities or emotional support
(both informal and through the use of trained counsellors). It
can be effective when individuals are having adjustment
problems or when fear and anxiety are at the heart of their
resistance, but again can be costly and time consuming.
▪ Negotiation and agreement: This may be used when

powerful but reluctant stakeholders need to be brought on
board. For example, unions may be appeased by higher wage
payments to compensate for changes to working practices. It
may avoid major resistance, but could prove expensive if other
groups seek to negotiate.
▪ Manipulation and co-option: Manipulation is using

information selectively to give a particular impression – such as
over-dramatising the forces for change to persuade others of its
importance. Co-option is a specific form of manipulation
whereby individuals are given a role in the change process
simply to gain their support. (This is different from participation
as in co-option their input is not genuinely required). Such
solutions can work but could create bigger problems in the long
term if people begin to feel manipulated or lied to.
▪ Explicit or implicit coercion: Change is forced upon

individuals by threatening negative consequences for failure to
change. This can leave individuals feeling angry and resentful
but may be essential if time is at a premium and change is
unavoidable.
3.11.2 Overcoming barriers to effective

communication
All of the above interventions require some element of
communication with stakeholders. Yet not all efforts at
communication are effective. Common barriers include:
31
▪ Physical barriers: Environmental factors such as distance

(staff working from home or in different buildings) can make
people feel uninvolved or unconnected to a planned change.
Efforts should be made to bring staff and other stakeholders
together physically, or where that is not possible, using
technology and social media so that they feel more involved and
willing to engage in the change process. We will discuss team
building further below.
▪ Inadequate system / process design: The communication

process or systems must be appropriate for the structure of the
organisation and for the differing needs and requirements of the
people within it. Cascade communication systems, where the
leaders are responsible for the cascade of information down
through the hierarchy and out to stakeholders, must make clear
what information is to be communicated by whom and in what
way. A formal communication plan as described in workbook 1
is vital.
▪ Attitudinal barriers: Where there is little trust between the

two parties, or if staff are already demotivated, there may be
resistance to the change message. Recognising that these
problems exist can lead the change agent towards identifying
and working with other more trusted stakeholders who can
communicate the message more effectively.
▪ Ambiguity: Lack of clarity or the use of jargon, acronyms and

technical terms can quickly confuse an audience. Care must be
taken to tailor both the language used and the communication
media chosen to the recipient.
▪ Poor communication skills: The communicator needs to

know how to make the information interesting and relevant.
Good communication skills are a key requirement for a change
agent.
▪ Physiological barriers: Practical barriers such as language

differences or difficulties with hearing or with sight must be
taken into account when drawing up a communication plan to
ensure that all groups are equally able to understand the
message being communicated.
32
3.11.3 Conflict management and resolution

Conflict is a common workplace issue. It can arise during everyday
operations, during projects and programmes and especially during a
time of major change.
Key definition
Conflict:
A situation in which one party perceives that its interests are being
opposed or negatively affected by another party.
Sources of conflict in the workplace include:
▪ People – personality clashes, power struggles, leadership

styles, communication failures, misunderstandings
▪ Technology – disagreements about what can be achieved with

technology or how it should best be used, resistance to
constantly changing working methods or expectations of faster
response times
▪ Skills – some people may not have the skills they need to fulfil
their current roles or to achieve the promotion they believe they
deserve, skills needed may change as the organisation keeps
pace with external changes
▪ Resource allocation – work pressures can overload staff

leading to conflict over the time or money needed to complete
the tasks required or the way work has been allocated between
groups
One model22 for managing conflict suggests there are five key steps
to successful conflict resolution:
1. Anticipate
Change is nearly always disruptive. The change agent should
systematically review the planned change processes to identify the
likely source of any conflicts. Information should then be gathered
which can be used to help prevent the conflict arising or manage the
conflict if it does.
22
Maccoby M and Scudder T, (2011) Leading in the heat of conflict, ASTD, Vol 65 (pp 46 -51)
33
2. Prevent
By anticipating conflict before it occurs it may be possible to employ
preventive strategies. A key preventative strategy is to improve
communication, particularly of the change vision, to garner support.
3. Identify
Most damage happens when conflict is interpersonal (affective
conflict) rather than the result of issues over the performance of a
task (substantive conflict). Signs of interpersonal conflict should be
quickly identified and action taken to manage it.
4. Manage
Often it is not possible for a change agent to take the emotion out of
a conflict or to solve the problem between the opposing sides.
Instead the aim should be work to with both parties to address the
interpersonal issues and so encourage the building of a relationship
between them. They can then move towards resolving the conflict
themselves.
5. Resolve
Once interpersonal issues are addressed, discussions should proceed
without blaming any of the involved parties and instead focus on
finding resolution through constructive dialogue.
Training management in mediation skills and dealing with workplace
conflict can be a valuable way of improving organisational
relationships. In a survey report by the business psychology firm
OPP and the Chartered Institute of Personnel and Development23, a
competency framework to enable line managers to deal with
workplace conflict was developed. The right and wrong approaches
are given in the table below.
23
CIPD (2008), Leadership and the management of conflict at work [Online] Available
http://www.cipd.co.uk/NR/rdonlyres/E426E492-7AED-46A6-B8F5-
92B9CF9725C5/0/4545Leadershipconflict.pdf [13th September 2015]
34
Negative
Positive manager
Competency manager
behaviour
behaviour
▪ Intervening quickly ▪ Avoiding
▪ Dealing with conflict head confrontation
Dealing with on ▪ Leaving conflicts in
issues ▪ Protecting employees by teams to sort
removing them from themselves out
conflict ▪ Not addressing
▪ Removing disruptive team bullying
members ▪ Not intervening
▪ Following up on conflicts ▪ Stepping in without
after resolution understanding the
issues
Action orientation
▪ Allowing disruptive
team members to
return
▪ Communicating ▪ Making a complaint
procedures and policies official before
▪ Using all available seeking to resolve it
procedures to investigate locally
Use of official
incidents ▪ Making it official
processes
▪ Using official procedures against the wishes
to set examples of the of the complainant
seriousness of episodes ▪ Not following
▪ Escalating issues to senior correct procedure in
management where dealing with conflict
appropriate ▪ Using the red-tape
associated with the
complaint to
discourage people
from complaining
35
Negative
Positive manager
Competency manager
behaviour
behaviour
▪ Acting as a mediator ▪ Taking sides
▪ Speaking to each party ▪ Not giving equal
Participative individually time to each side of

Approach ▪ Bringing both sides the conflict
together to communicate ▪ Speaking to
▪ Supporting both sides in employees in a
the procedure parent/child
manner
Team focus
▪ Gathering ideas of how to

address the issues with ▪ Not listening to
the team complaints
▪ Being aware of tension

Mentoring team and keeping it at a low N/a
relationships level
▪ Picking up on squabbles
before they lead to
conflict
▪ Acknowledging when a
team member is causing
stress to others
▪ Maintaining ▪ Losing temper
professionalism within discussions
Acting as a role ▪ Being clear about ▪ Deliberately
model expectations of team creating conflict
conduct ▪ Engaging in conflict
▪ Not tolerating backbiting with other
Personal style
▪ Showing no interest in managers

office politics or gossip ▪ Engaging in conflict
with employees
▪ Keeping employee issues ▪ Making public
Integrity private and confidential where complaints
▪ Treating all employees come from
with the same importance ▪ Bullying employees
▪ Threatening
employees unfairly
with disciplinary
action
36
3.12 Embedding the change

Once the changes have been made, the change agent needs to find
ways to embed the changes so that new becomes normal and the
envisaged benefits can be realised.
In this section we will look at:
▪ Management by Objectives
▪ Team building
▪ Development and appraisals
▪ Reinforcing success
▪ Delegation and job design
▪ Innovative cultures
3.12.1 Management by Objectives

A change programme will inevitably mean the development of new
goals and targets for the organisation. A good performance
management system will help employees understand how their roles
and responsibilities relate to the achievement of those goals. By
setting individual targets that stem directly from those of the
organisation, staff should be motivated to work for the good of the
organisation.
Such a performance management system is known as Management
by Objectives (MBO).
The MBO process
An MBO process will formally relate organisational plans and targets
to the goals set for the individuals who work there. This may be
applied at senior manager level only or be cascaded down
throughout the organisation to all members of staff as follows:
1. Top management agree long term objectives or Key
Performance Indicators (KPIs).
2. Senior managers identify the key tasks within their areas of
responsibility required to achieve these goals and agree specific
quantifiable (SMART) targets.
3. Senior managers translate their targets into departmental, team
and even individual SMART targets in conjunction with the staff
responsible for achieving them.
37
Targets may be based on:
▪ Task outcomes: e.g. meeting an audit deadline, selling a

specific number of units, filing the management accounts
by a set date
▪ Behaviours: linked to job specification such as ‘works under

own initiative’ or ‘copes well under pressure’
▪ Traits: include things like ‘friendly attitude’ and can be hard

to assess objectively.
4. Periodically a performance review is carried out to assess how
far targets have been achieved and individuals are subject to a
performance appraisal.
5. Training and development needs are identified to improve
future performance towards targets
EXAMPLE
The board of the Hartshap Hotel chain have set long term objectives
based on market position and profitability.
Profit and customer targets should then be set for managers of each
regional director and further broken down into specific targets for
each hotel in the chain. Achievement of the specific targets should
ensure overall achievement of the chain’s objectives.
MbO would mean that the hotel managers then set relevant related
targets for all of the staff working in the hotel. These may include
customer service reviews, standards of cleanliness and hygiene,
external food awards etc. Each employee will be set a target
commensurate with their skills and responsibilities so that, if they all
achieve their goals, the hotel manager will achieve his or her target
too.
Advantages of MBO
An MBO approach to performance management should bring about
the following advantages:
▪ Clarity of goals throughout the organisation
▪ Better communication and coordination
▪ Improved motivation as employees are involved in setting their

own goals
38
3.12.2 Team building

Many of the targets set through the MBO process are likely to be
team targets – to be achieved by departments, work groups or
project teams.
However transformational change will often involve restructuring or
reorganising the groups people work in and a newly formed group of
people do not immediately become a team. If the targets are to be
achieved, the group will have to gel, organise and work together.
One famous model24 describes the stages through which a group
must pass on the way to becoming an efficient and high performing
team.
▪ Forming: The team meets to learn about opportunities and

challenges, they agree goals and begin to tackle tasks. At this
stage the team members behave quite independently and are
usually on their best behaviour but are more focused on
themselves and what they are going to get out of the
opportunity than on a mutual goal.
▪ Storming: At this stage differing views and ideas about

attitudes, behaviour and actions are introduced and compete for
consideration. Members compete for roles within the group and
decide what leadership style or model they will accept. Team
members open up to each other and may be confrontational.
The role of the leader and maturity of the team members will
dictate how long the team remains in the storming phase. If
this process is resolved successfully, a stronger team will
emerge. If not the group may stay stuck in the storming phase,
focusing on the minutiae of every decision and failing to achieve
productive performance.
▪ Norming: At this stage norms are established. Members of the

team support each other and develop a clear idea of team
goals, roles and responsibilities. The individuals now hold an
ambition for the success of the team.
▪ Performing: This is when high performance teams begin to

thrive. They function as a unit and find the way to work
effectively to get the job done. They are utilising all the skills
24
Tuckman, B. (1965). Development Sequence in Small Groups. The Psychological Bulletin Vol 63 (pp 384 -399).
39
and knowledge of team members and do not require direct

leadership intervention.
The lesson from this analysis is that groups require time to form
teams and the change agent should focus attention of helping teams
to move through the storming phase so that they can become
effective.
3.12.3 Creating group cohesiveness

The goal for the change agent is to help build a strong cohesive
team which has moved beyond the storming phase and reached the
point where it is effective – meeting both corporate objectives and
the needs of individual members. Effective groups will have the
following characteristics:
▪ Informal relaxed atmosphere
▪ Clear understanding of and commitment to group goals
▪ High degree of participation and focus
▪ Members listen to each other, express ideas freely and address

conflicts constructively
▪ Most decisions are reached by consensus

One way is achieve this is to introduce some of the factors which are
known to help groups bond. Such factors include:
▪ A common aim
▪ Capable leader with appropriate leadership style
▪ Physical proximity
▪ Similarity of tasks to be completed
▪ Interdependent work systems (rather than separate tasks)
▪ Common social factors
▪ Outside threats
▪ Prospect of group rewards
▪ Group size (research suggests that 5 – 7 people is the most

effective group size).
One common way to introduce many of these factors to a group is to
organise competitive team activities which require them to work
40
together to achieve results for which they are presented with a team
reward. However whilst some degree of competition between
groups can stimulate cohesiveness, research25 suggests that intense
competition can cause deep divisions and isolationist behaviour.
This suggests that pitting groups against each other can be
counterproductive.
Exercise 3.10
The project team responsible for the new Tadnow airport
transatlantic terminal building have been working together for two
weeks but the project manager is struggling to get things done.
There have been a number of arguments and complaints and few
decisions have been made. The project manager has the first
meeting with the project board in just three weeks and is anxious to
be able to report significant progress.
Using the theories discussed in this workbook, suggest how the
group can be made more effective.
3.12.4 Development and appraisals

Many transformational changes will require new ways of working.
Equipping employees with the knowledge and skills they will need,
and ensuring they understand the attitudes and behaviours expected
of them will be a key part of the change process.
There are three key techniques for improving the ways in which
employees perform their roles. Employee appraisals (see below)
should identify which technique would best meet the employee’s
current need.
▪ Training (focussed on current performance): An organised

activity aimed at imparting information and/or instructions to
improve the recipient's performance or to help him or her attain
a required level of knowledge or skill. This may take the form
of a class-based or computer-based course, or formal
instruction within the work place where the activity will be
carried out.
▪ Development (preparing people for the future needs of the

organisation: Enabling staff to operate at a more strategic level
(i.e. become more productive and more efficient) by improving
confidence, self-sufficiency, initiative, creativity and problem-
25
Sherif, M., Harvey, O.J., White, B.J., Hood, W., & Sherif, C.W. (1961). Intergroup Conflict and
Cooperation: The Robbers Cave Experiment. Norman, OK: The University Book Exchange. pp. 155–184
41
solving capabilities etc. This may be achieved by attending an

appropriate life skills course, providing the employee with more
challenging work or greater responsibility or by assigning the
employee a mentor already working at that level to guide them
through their development.
▪ Mentoring: A developmental partnership where one person

shares knowledge, skills, information and perspectives with
another (usually more junior member of staff) to foster their
personal and professional growth. A mentor provides guidance
and advice and demonstrates by example what is needed.
Exercise 3.11
Following the annual staff appraisals at Colswell City Council, the
following issues have come to light:
▪ Nathan has poor time management skills and finds it difficult to

cope with several requests for information at once, often
agreeing to do more than he can reasonably achieve.
▪ Mary has difficulty using spreadsheets which has caused her to

make a number of errors in the month end figures.
▪ Luke has not worked for the organisation long and does not
understand the order in which some processes have to be
carried out.
Required
Suggest how the problems identified in the staff appraisals would be
best addressed.
Part of the development process involves regular appraisals.

Key definition
Performance appraisal:
The provision of feedback to employees on how well they are doing
their work for the organisation, as part of a continuous process of
planning and evaluation.
Specifically appraisal concentrates on:
▪ Gaining feedback on past performance
▪ Having clear attainable goals for the future
▪ Being involved in planning those goals, and in identifying

training that is needed to achieve them
42
The appraisal process should be seen as a continuous one, which

contains four stages:
▪ Planning: Setting the objectives for performance
▪ Monitoring: Performance is continuously monitored through a

mixture of results achieved, assessments completed by
managers, feedback from customers etc.
▪ Reviewing: Formal appraisals interviews are carried out, and

appropriate documents filed.
▪ Communicating: The outcomes are discussed and agreed, and

new objectives are set.
An appraisal process should follow the 4 Fs – it should be:
▪ Frequent: Depending on the type of work an appraisal may be

held every few months (a young professional in training) or
once a year (an experienced manual worker).
▪ Factual: Appraisals must be evidenced based and based on

past performance
▪ Firm: The appraiser must be prepared to be honest about

weaknesses, as only then can improvement begin
▪ Fair: Factors such as the relationship between the appraiser

and appraisee, and the standards applied by other managers in
the organisation must be considered.
Benefits of appraisals
▪ Provide feedback to motivate staff to perform better and to

drive their own development.
▪ It encourages ownership of the job (i.e. the achievement of the

objectives) by better communicating expectations.
▪ Reward good performance, and identify and resolve poor

performance.
▪ Help to identify training and development needs and assist in

promotion and salary decisions.
▪ Provide information for human resource planning

− Organisation-wide training needs assessment
− The pool of skills within the organisation
− Succession planning
43
▪ Provide feedback on how managers and the organisation can

help employees to perform more effectively, and help to
develop staff / management relations.
Potential problems
Because the appraisal system is by nature subjective it can be
difficult to ensure equity and consistency. A particular problem can
arise because managers are often reluctant to appraise an employee
as below average (in one survey, 98.5% of the staff had been
marked as ‘above average’). In addition appraisals covering periods
of six or more months may be dealing with issues that are no longer
relevant (such as weaknesses now dealt with).
A problem can also arise over the potentially conflicting objectives of
the appraisal such as motivation and criticism of performance, or
pay and development.
Appraisals are also criticised for being simply a bureaucratic process,
taking up a great deal of time and paperwork. This is a particular
problem where managers are not perceived to be wholeheartedly
behind the process.
3.12.5 Reinforcing success

Peters, who wrote the renowned book on running successful
businesses ‘In search of excellence’26, famously emphasised that it is
important for organisational success to ‘celebrate what you want to
see more of’.
When employees behave in a way which helps the business to
succeed, that behaviour should be reinforced so they are encouraged
to behave that way more often.
Behaviour can be reinforced using:
▪ Negative reinforcement: Where a worker is encouraged to

behave in a certain way to avoid unpleasant outcomes.
26
Peters T & Waterman B (1988) In search of excellence: Lessons from Americas Best Run Companies
Grand Central Publishing
44
EXAMPLE
A salesman fails to achieve the target number of sales within a given
period. He is called in by his supervisor to discuss his performance
and explain what happened. He perceives this as an unpleasant
experience and so strives to sell more next period and so avoid it
happening again.
▪ Positive reinforcement: When a worker is rewarded for

certain behaviours to encourage them to repeat them
EXAMPLE
A member of the sales team sells the target number of units during
the period and so is paid a bonus. This provides the incentive to
work hard to sell the same number of units the following period in
order to earn the bonus again.
The best approach

Research suggests that both approaches will work. However
negative reinforcement tends to result in workers doing just enough
to avoid the negative outcomes, is often temporary and can have a
number of other negative consequences (like poor morale), whilst
positive reinforcement encourages employees to continue striving to
do well in the long term and so is to be preferred27.
Earlier we discussed the idea of Managing by Objectives. Reinforcing
success can be built into this process. Once the organisational
objectives have been cascaded down to targets for specific teams or
individual workers, reward structures can be developed to stress and
reinforce the actions or behaviours needed to achieve those goals
Types of reward
The rewards which work best are those that meet the workers’
needs. You will remember in the section on motivation above that
needs vary between workers.
Whilst a bonus or a promotion may incentivise some workers, for
others it could be more time off or a works social or even a chance
to work on a more interesting project. Sometimes simply writing a
27
Skinner, B.F. (1970). Walden Two. Macmillan, Toronto.
45
thank you e-mail or praising a worker for their contribution may be

all that is required.
It will be important to understand the needs of workers and tailor
the rewards offered accordingly.
3.12.6 Job design

We have referred above to the importance of offering challenging or
interesting work in order to meet some motivation needs and to
reward staff for achieving set targets.
There are several ways in which jobs can be designed to increase
satisfaction and make employees more productive.
▪ Job enlargement
▪ Job rotation
▪ Job enrichment
▪ Empowerment
Job enlargement
This involves providing the employee with a wider range or a greater
variety of tasks, in order to make work more interesting.
However the attempt could be counterproductive if:
▪ The employee thinks it’s a means of reducing staff by making

them do more work.
▪ The job itself is repetitive; an additional set of repetitive tasks is

unlikely to motivate.
Job rotation
All the tasks are shared by the team providing a variety of
interesting and less interesting work.
This assumes that all members of the team are capable of
undertaking each task. If appropriate training can be given it offers
trainees an excellent grounding and in the long-term the team
becomes more flexible. This helps the company to run more
efficiently as employees are able to cover for other team members
as needed.
Job enrichment
This involves giving people a complete task to do rather than just a
part of it. The aim is to improve responsibility and challenge. Also
46
known as vertical job enlargement, individuals have greater control

over the planning of their work and require less authorisation or sign
off from senior staff.
It is important to make sure that the tasks staff are given match
their abilities and that senior management provide regular and
constructive feedback.
Exercise 3.12
Barbara works as a clinical laboratory assistant testing samples in a
large hospital. Suggest ways in which her satisfaction at work could
be improved by job enlargement, job rotation and / or job
enrichment.
Empowerment
Many motivation theories emphasise the importance of factors such
as self-esteem and responsibility, factors linked to the balance of
power between manager and employee. Employees can be given
greater power over how they work in a number of ways. For
example employee involvement can be increased through:
▪ Delegating decision making: Responsibility for decisions lies

with the subordinate rather than the manager
▪ Involving employees in decision making, problem solving and

quality management: This bottom-up approach to dealing with
issues as they arise has the advantage of capitalising on the
employees’ hands-on expertise.
▪ Delayering: Removing a tier of management leading to a flatter

organisation with the front line staff closer to the organisation’s
top management.
▪ Flexible working patterns: Allowing people to work at the times

that best suit them. There may be certain limits on the
flexibility, for example to ensure that all team members can
meet together at certain times of the week.
3.12.7 Delegation
When designing roles within an organisation, one key decision is the
extent to which decisions can be delegated.
The process of delegation involves four stages:
47
1. Decide what can be delegated

Decide which tasks can be done by others.
Although in the long-run delegating will free up a manager’s time, at
first considerable time may need to be allocated to guiding and
developing the team member, and to monitoring progress.
2. Choose who to delegate the task to
The person chosen may have all the knowledge and skills needed
but it is more likely that they will require some training and
guidance. Ideally once they understand what is involved they will be
able to work with the minimum of supervision.
These first two points highlight the benefits of delegating regularly.
At first relatively minor tasks may be delegated to each team
member, but it will quickly be possible to work out which employees
can safely be allocated more major tasks.
3. Explain the work
All parties should have a clear view of what work is required and
what the end product should look like, the timescales for completing
each task, which team member is responsible for each task, how
decisions should be made, how progress will be reported and
monitored, and what procedures to follow if problems arise.
4. Support and monitor performance
Unless the task is very small, it will usually be possible to break it up
into sub-tasks, making it easier to offer support and monitor
progress. The frequency of meetings to discuss progress must be
balanced to allow the team member to feel that they are working
independently, yet not allow time for the project to go too far wrong.
Benefits of delegation
Making the best use of the manager’s time: Although establishing a
process of delegation may initially take some time, in the longer
term it will free up time for the manager. This makes sound
economic and organisational sense. If decisions are taken at the
lowest appropriate level, managers can spend their time
concentrating on more major decisions.
Providing training and development: This form of training will be
directly related to the work that the team member does. When the
person is later considered for promotion within the organisation, the
fact that they successfully took responsibility when delegated a task
will often be seen as a benefit. Encouraging the development of
48
specialist knowledge and skills is of particular importance in a rapidly

changing environment.
Strengthening the workforce: Allowing team members to take
responsibility for some aspects of their work is important. Team
members can develop their aptitudes and abilities, and as a result
will gain a greater sense of involvement and motivation.
Possible risks of delegation
Managers are often concerned about delegating because they do not
like taking risks and are worried that the employee will:
▪ Not do a good enough job – the belief that ‘I can do better’
▪ Do too good a job, showing the manager in a bad light
▪ Not be able to identify when things start to go wrong
▪ Not want the responsibility and would rather just be told what
to do
Some team members may not like having responsibility. They may
fear making a mistake, believe they do not have the necessary
knowledge, or consider that the benefits or incentives are
insufficient.
49
Summary
▪ Engaging staff and getting their support for change is vital if the
envisaged benefits are to be achieved.
▪ Transformational change requires a paradigm shift in the

organisation’s culture.
▪ A change vision can help to focus and motivate staff.
▪ A change agent will be needed to lead the change (Business

Change Manager in a change programme).
▪ Leadership is a key skill for a change agent. Leadership styles

can vary on a spectrum from autocratic to participative which
may be linked to whether employees are viewed as Theory X or
Theory Y. A good leader will vary the style used to suit the
situation.
▪ Organisational culture (the way we do things around here) can

be analysed using the cultural web.
▪ To motivate staff it is important to understand what they need

(Maslow’s hierarchy, Herzberg’s hygiene and motivating
factors).
▪ It is also important to understand how they might behave

(Vroom’s expectancy theory linking performance and rewards,
Goal theory on the need for SMART targets).
▪ Change must be planned. The Change Kaleidoscope suggests

eight angles from which to view the change and make sure
plans are context specific.
▪ To effect change, current ways of working must be unfrozen

and then new ways of working must be introduced and refrozen
as the new norm. Inevitably some forces will resist the change.
These may be cultural or individual concerns.
▪ Staff will inevitably move through a change curve from shock

and disbelief to finally internalising the new ways of working.
The change agent must support the process using a range of
interventions, overcoming barriers to communications and
working to resolve conflicts.
50
▪ Management by objectives involves cascading targets down

from top management through the hierarchy into detailed
targets for individual staff.
▪ Groups of people take time to become effective teams, moving

from forming and storming stages to norming and performing
stages. Cohesiveness can be encouraged within groups by
encouraging bringing them together to perform interrelated
tasks but competition should be treated with caution.
▪ Training and development can help to prepare employees for

transformational change. Performance appraisals, which should
be frequent, factual, firm and fair are a vital part of the
development process.
▪ Appropriate rewards can help to reinforce success.
▪ Jobs can be designed to increase job satisfaction and make

employees more productive. One element of good job design is
the appropriate use of delegation.
51
Quiz questions
1. Name the cultural artefacts that give clues about the underlying
organisational paradigm.
2. List the needs in Maslow’s hierarchy in the correct order from
lowest to highest.
3. What are the required features of a goal or target?
4. Name the eight angles from which change should be considered
using the change kaleidoscope.
5. Explain what is meant by the psychological contract.
6. What are the six interventions that can be used to help people
through a change process?
7. What are the four stages a group must go through to become
an effective team?
8. What are the four Fs expected of a performance appraisal
process?
9. Distinguish between job enlargement and job enrichment.
10. What are the four stages of delegation?
52
Quiz answers
1 Stories, symbols, power structures, organisation structure,

controls and routines and rituals.
2 Physiological, safety, social, esteem (ego) and self-
actualisation.
3 Should be SMART – specific, measurable, attainable, relevant
and timebound.
4 Time, scope, preservation, diversity, capability, capacity,
readiness, power.
5 The unwritten agreement employers make with staff about what
to expect. Not just the job description, but additional
expectations about how the employers will behave and what
additional benefits and opportunities being part of the
organisation will bring the employee.
6 Education and communication, participation and involvement,
facilitation and support, negotiation and agreement,
manipulation and co-option, explicit or implicit coercion.
7 Forming, storming, norming, performing.
8 Frequent, factual, firm and fair.
9 Job enlargement involves providing the employee with a wider
range or a greater variety of tasks, in order to make work more
interesting. Job enrichment involves giving people a complete
task to do rather than just a part of it to improve responsibility
and challenge.
10 Decide what to delegate, decide who to delegate to, explain the
work, support and monitor performance.
53
Scenarios
Scenario: Cloud airlines

Cloud Airlines (CA) is the national flag carrier airline of Shanland, a
medium sized European country. Its head office is based in the
capital city of Tadnow. The airline serves Northern Europe, North
Africa and the Mediterranean and has a strong record on safety,
reliability, value for money and good customer care.
The company is largely privately owned, although the state
government still holds 28% of the shares (down from its original
85% after floating much of its holding in 2002).
The company is divided into three wholly owned subsidiaries; Cloud
Airlines Europe (CAE), Cloud Airlines Africa (CAA), Cloud Airlines
Mediterranean (CAM).
To increase profitability, the executive board of CA is planning an
ambitious expansion programme into North America. Their aim is to
be one of the top fifteen transatlantic airlines within the next ten
years. They intend to offer a competitive service, and maximise
revenues by pricing to attract market share from established market
players whilst maintaining their reputation as an excellent provider.
They are aware that to achieve this they will need to focus on quality
and efficiency throughout the development.
To achieve this goal will involve, amongst other things, building a
new transatlantic terminal building at Tadnow airport, increasing
their fleet of aircraft and upscaling their capacity in terms of
bookings, in-flight catering, baggage handling etc. They will also
need to open up at least two commercial bases in the US, probably
in New York and Washington. The business will be run by a new
subsidiary Cloud Airlines US (CAU).
54
Tadnow transatlantic terminal

The new terminal building is scheduled to open in 2020 and is
expected to cost in the region of £2.3 billion (i.e. £2 300 million). In
addition to the national Cloud airline, the terminal will be used by a
number of independent airlines and one major customer, the
Songline Alliance, a group of airlines working together to provide
international air transport under one banner.
55
Scenario: Hartshap Hotels Chain
History
The Hartshap Hotels Chain (HHC) opened its first hotel in France in
1964. Over the past fifty years it has expanded across Europe and
now owns 30 hotels in ten countries and employs over 4 000 people.
It has traditionally targeted the lower end of the luxury market,
offering a stylish stay at affordable prices.
Each hotel is run by a designated hotel manager accountable to one
of the four regional directors all of whom sit on the executive board.
The company is run by the executive board based in France, headed
by the new CEO, Jeanette Dupont.
Recent performance
The CEO until last year, Jacques Robert, was a firm believer in hands
off management and under his leadership the chain’s fortunes began
to falter. Over the past decade profits have been falling and market
share has diminished. A dividend has not been paid for the past two
years and after pressure from shareholders the old CEO resigned
and was replaced by Ms Dupont. She has worked with the executive
board to agree a demanding five year plan to revive the company’s
fortunes and return it to profitability.
Current problems
The Hartshap brand is not well known. Traditionally hotel managers
have been encouraged to make their own stamp on the hotels they
run and the different hotels within the chain are not consistent with
each other in terms of style, service or standard of service.
Performance goals were based on budgets submitted by the
managers themselves and were rarely challenged. Many hotels are
dilapidated, service can be poor and the food offering is variable,
dependent on the chef’s preferences, and poorly rated by guests.
The chain’s rating on Tell Me – the holiday review website has fallen
considerably, and Qualhol, the exclusive high end holiday magazine,
no longer features their hotels.
The new strategic aims
The company wishes to reinvent itself as a hotel chain providing ‘a
five star luxury experience offering the best of local culture and the
finest European cuisine’. It hopes to reposition itself as an upmarket
brand and recover profitability. The initial budget estimate for the
plan is £85m of which a significant proportion is to be spent on the
building of a new hotel.
56
How the aims will be achieved

The approach to the planned change will include the following:
▪ The existing hotels are to be fully refurbished in the new luxury

‘house style’. This should improve margins and increase
customer numbers. The aim is to refurbish the hotels several at
a time but never more than two in the same country at once.
They will be closed, refurbished and relaunched as part of the
new brand image.
▪ A new flagship hotel is to be opened in Kravej, a European city

currently developing into a major tourist destination. It is
hoped that the publicity will help to revitalise the Hartshap
brand. The hotel project is expected to cost approximately
£40 million. The planned opening date is May 2018. The
director in charge of the project is Louis Augustin, director of
development who will move to Kravej to oversee the build.
▪ The hotel restaurants are to be redesigned and reimagined to

offer a gourmet dining experience in keeping with the luxury
refit. Experienced local chefs will be recruited and encouraged
to devise menus which meet the exacting standards of the
Qualhol restaurant reviewers whilst making the best of local
ingredients.
▪ An advertising company has been appointed to launch a new

marketing campaign is to be launched to strengthen the brand
and clearly position the hotel chain at the luxury end of the
market.
▪ The marketing campaign will be combined with a new website

which will offer an integrated booking system and a loyalty
scheme although the detailed requirements are not yet clear.
An IT contractor has not yet been selected.
57
Scenario: Pawton fire and rescue service

There is no centralised firefighting and rescue provision in the
country of Pawton. Instead there are 46 separate fire and rescue
services each responsible for up to thirty fire stations in their local
area. Some of the services cover large metropolitan areas, others
extensive rural areas whilst others cover a mix of towns, cities and
countryside villages. Each service is accountable to an autonomous
local fire authority. The authority collects funding for the service
from all the councils in the local area and pays it over to the service
to spend as needed.
Each fire and rescue service is responsible for operating its own
control room which accepts and directs emergency calls and
coordinates a response from the fire stations within the local area.
The control rooms have also developed systems for answering calls
on behalf of neighbouring areas and coordinating responses with
them during busy periods.
The processes and systems used vary between individual fire and
rescue services and between control rooms as they have evolved to
meet local needs. Even within one control room there is no standard
agreed approach to responding to emergency calls. Call handlers use
their expertise to process calls, using a range of different methods
depending on the need arising and the other demands currently
being made on the system. Currently local fire and rescue services,
their controlling authorities, and the fire stations within each service
have a good working relationship and are happy with the systems
they use.
However, the government does not directly control the services and
there is currently no way to coordinate a national response to
emergency situations. After several national disasters including
terrorist attacks and widespread flooding following severe storms,
the Pawton government department responsible for supporting fire
and rescue authorities within Pawton has decided to implement a
major reorganisation programme to be started immediately.
The 46 control rooms are to be replaced with a network of nine
purpose-built regional control centres using an integrated national
computer system. A national control framework will be developed
governing the whole country and all 46 local fire and rescue services
will use the new system.
58
The aim of the department is to facilitate an effective national

response to major disasters and in the process:
▪ Increase efficiency and ensure faster response times to local

emergency calls
▪ Upgrade response and deployment capacity through new

technology
Projects include:
▪ Building nine state of the art regional control centres which will
be networked to share information.
▪ Developing and building a new IT system to handle incoming

calls and redirect them to the correct fire and rescue service.
The system will incorporate caller location technology, satellite
tracking of vehicles and mobile data terminals in each vehicle to
communicate with firefighters on the ground.
▪ Moving the emergency call operations from the existing 46 local

control centres to the new regional control centres.
▪ Redesigning ways of working to align with the new technology

and provide coordinated responses including introducing
standardised policies and procedures across all services.
▪ Developing and delivering specialist training for all services to

deal with major incidents.
The government minister in charge of the department is very keen
to see the programme implemented and has already made an
announcement to the press about the plans. It is expected to take
five years and the estimated cost of the programme has been
budgeted at £120 million. It is believed that the overall savings in
national fire and rescue could be as much as £86 million.
59
Scenario: Colswell City Council

Colswell is a small city of approximately 225 000 people, although
the population is expected to grow by 9% over the next 15 years
with the largest increase in the over 45 age group. In particular the
over 75 age group is expected to increase by 30% (67 500).
Colswell City Council
The council is run by a city cabinet of elected councillors who take
most of the strategic decisions. The cabinet leader is Sam
Beechwood. He has a reputation for decisiveness and has little time
for people who challenge him. He sets high standards and can be
unsympathetic towards those who make mistakes.
The council is currently divided into five separate directorates each
on a separate floor of the main council building. The offices are
computerised although each directorate has its own separate IT
system. The council is run by an executive team made up of the five
directorate heads and Mick Hartford the CEO.
▪ Housing and Adult Social Care
▪ Children, Schools and Families
▪ Culture and Environment
▪ Central Services
▪ Chief Executive’s Department

Promotion within the council has traditionally been based on length of
service and evidence of consistent, reliable adherence to duty. Staff
are expected to work within the existing systems, defer to those
above them in the hierarchy and dress formally at all times. Senior
staff are provided with reserved parking places and private offices
and mainly communicate with their teams by email. There is little
communication between the directorates below the executive level
and most decisions have to be authorised by senior management.
Care for older people
Colswell City Council is aware of the growing importance of the
provision of services for older people within the city. Government
statistics show that an ageing population tends to have a higher
prevalence of chronic diseases, physical disabilities, mental health
problems and other medical disorders.
The Housing and Adult Social Care directorate is under increasing
pressure as the numbers of older people increase and the funds
60
available are squeezed further. Staff are overworked and have little
time for individual clients. The cabinet has therefore decided to form
a specific Social Care and Housing for Older People (SCHOP) division
within the Housing and Adult Social Care directorate. It is to be fully
operational by the end of the financial year.
The need to achieve more with less will require innovative solutions
to the problems faced by the division. Its role will be to control the
expenditure budgets for social care and housing for older people and
ensure they are helped to live fulfilling daily lives.
The division will be run by David Elsworth, currently a senior staff
member within the Housing and Adult Social Care directorate. It will
be staffed by a mix of existing directorate staff and new employees
and will need to work in partnership with other parts of the council
as well as other organisations within the city. The intention is to
locate the division in a recently acquired office block next door to the
main council offices.
The budget for the reorganisation is £200 000 and the new division
is to be fully operational by December 2016.
The council strategy for older people (based on the government’s
national health and wellbeing outcomes) is to improve the health of
older people and to reduce the inequalities they experience.
Stated outcomes include:
▪ Greater empowerment and independence for older people
▪ Greater access to all services and equality of access for older

people
▪ Greater social inclusion of older people

One particular area of the strategy concerns the living arrangements
of older people:
▪ Older people, including those with disabilities or long term

conditions, or who are frail, should be able to live, as far as
reasonably practicable, independently and at home or in a
homely setting in their community.
▪ Older people should retain as much control of their own lives as

possible including in decisions about their care and support.
Living at home
For those who wish to remain in their own homes, the council need
to ensure that there is a wide enough range of support services
61
available to facilitate their wish. This would include services such as

home adaptations, home care visits by medical professionals and
community transport.
One service which is currently provided directly by the council is the
‘meals on wheels’ service. The catering service cooks, packages and
delivers a hot daily meal to each eligible household in the city. In a
bid to save money, Colswell Council is now planning to put the
service up for tender. The in-house service intends to bid for the
work but is aware that it may be awarded to an external provider.
Frailty, ill health and dementia
For older people living in Colswell who are unable to look after
themselves at home as a result of frailty, ill health or dementia, the
council has to ensure that there is an appropriate range of
residential care available in the city to suit their differing needs.
Some may require residential support only, some also need nursing
care and whilst others require specialist dementia care.
Funding
The council provides financial assistance for the elderly residents
requiring a care-home place at a rate dependent on their level of
financial capital. Older people are free to select their own nursing
home from those available in the city and their funding allowance is
paid by the council direct to the provider. If the cost of the home
they choose exceeds the level of assistance provided by the council
they will need to pay the additional costs from their own funds.
Current provision
There a number of care homes in the city, many run and managed
by the council. The council holds a list of the non-council run homes
it has vetted and approved although older people are free to choose
any care home they wish. Of these, some are privately run, some
are council run, some are run by independent not-for-profit
organisations and some are run by specific charities (such as the war
veterans society).
However the current level of provision is insufficient for the growing
numbers of older people in Colswell. A commissioning group has
been set up within the SCHOP division to look at how the home care
needs of the older population can be best met over the coming years.
62
Exercise solutions
Exercise Solution 3.1

Cloud Airlines are building on their current skills and expertise and
developing their transatlantic capacity in a planned and gradual way.
This may be classified as adaption.
The fire and rescue service in Pawton is to be completely
reorganised and the stakeholders will have to operate in a
completely new way. It is also being introduced at speed after a
series of national emergencies. This is therefore a revolutionary
change.
Hartshap Hotels are planning a complete change in the way that
they do business but are intending to introduce the change in a
planned way over a number of years. This is therefore
evolutionary change.
There is no suggestion that the Colswell SCHOP will be introducing
new ways of working but the changes are being introduced
extremely fast. Such change may be categorised as
reconstruction
63
Exercise Solution 3.
64
Advantages of an internal change Disadvantages of an internal
agent change agent
Often cheaper Part of the existing paradigm so
harder to envisage the new
style organisation
In depth knowledge of the May be part of what needs to
organisation and the issues be changed
Controls the necessary resources May be reluctant to introduce
changes that will upset
colleagues or affect their own
career
Already trusted by many of the May be perceived as making
stakeholders changes to improve their own
position
May have time conflict with day
to day operational role
64

Current situation
Jacques Robert appears to have run the Hartshap Hotel Chain using
a participative style. Operating a hands-off style meant that
employees made their own decisions. Managers were free to manage
their hotels in the way they chose and set their own budgets which
were rarely challenged. Chefs chose their own menus and hotel
styles varied from hotel to hotel.
By contrast Colswell City Council is run in a more autocratic style.
Sam Beechwood does not expect people to challenge his decisions
and staff are expected to work within the existing systems and defer
to senior staff. There is little upward communication.
The future
Both organisations may need to consider different management
styles in the future.
Hartshap needs to strengthen its brand which means offering a more
consistent standard and style. Restaurants are to offer menus which
meet the standard of external reviewers. The new hotel is to
embody the brand and so should exemplify the standards expected
in the other hotels. Staff have got used to a very loose
management style and perhaps do not feel any incentive to achieve
targets. This would suggest that there should be more top down
direction and less local creativity in the decision making processes.
However this does not mean that the organisation should adopt an
autocratic leadership style. It may be better somewhere more in the
middle of the spectrum – closer to consultative - where staff are
given some input into the process, but management keep a tight
rein on the major decisions so that the standards required can be
achieved.
Colswell is in the opposite position. Staff in the SCHOP division need
to be able to deliver individual solutions for the older people they are
responsible for. They will have less money and will therefore need
to be more creative in their responses to problems. This suggests
that a more participative style should be adopted.
65

Current culture
Stories
▪ Autocratic leadership
▪ Reliability and consistency are the route to promotion

Symbols
▪ Formal dress code
▪ Separate offices for senior staff
▪ Communication via email

Power structures
▪ Power held at senior levels
▪ All strategic decision made by executive
▪ No challenging of ideas
Organisation structures
▪ Directorates and divisions physically separated
▪ Hierarchical and process orientated

Controls
▪ Reward for length of service and reliability
▪ Senior management approval needed for decisions

Routines and rituals
▪ Keep your head down
▪ Don’t argue
▪ Process not personal

Paradigm
Hard working, non-confrontational, reliable, business as usual
66
New culture
Stories
▪ Of discovery / insight / fresh approaches
▪ Rewards for enterprise
▪ Participative approaches to decision making

Symbols
▪ Status symbols awarded to most innovative rather than only

steadiest / highest earners / most reliable
▪ Less demarcation between hierarchical levels:

− Open office doors / no offices
− Unreserved parking
Power structures
▪ Information sharing to ignite ideas
▪ Processes and systems which facilitate easy access to the other

divisions and the information held within the organisation
Organisation structures
▪ Cross functional to allow for interaction with different disciplines

Controls
▪ Aspirational targets
▪ Not prescriptive over how things should be done
▪ Allowing people autonomy over their actions
▪ Rewarding new ideas / fresh insights

Routines and rituals
▪ Encouraging risk taking – the message that we can learn from

failure rather than punishing it
Paradigm
Innovative, sharing, forward thinking
67
▪ A chief fire officer may be given a different uniform or a private

office within the fire station. Such needs may also be met by
having more junior officers reporting to them.
▪ An individual firefighter may have practical safety needs which

will be met by clothing (fireproof clothes and gloves, protective
helmets) or practical factors (breathing apparatus, well
designed equipment) or support (training in lifting and carrying,
dealing with panicking victims etc.). However more long term
safety needs may be met by inclusion in a staff pension
scheme, being employed on a long-term contract, having a
predictable staff rota etc.
▪ The social needs of control room staff may be met within the
control room itself as they will have the company of the other
workers. However if they are constantly on the phones they will
need opportunities to socialise on their breaks. The provision of
a common room will offer the chance to socialise in the break
times and organised social events (evenings out, away days
etc.) will help to them to form friendships with co-workers.
68
69
A company car may be justified as a factor in either category:
Hygiene factor
If Louis has to drive around the country to meet with contractors
and designers he may view the car as an essential requirement and
complain if he does not get one or if the one he is given is not seen
as good enough for his purposes.
Motivator
A car may not be necessary but may be seen as a status symbol and
Louis may have been in part motivated to work for the promotion in
part because he wanted the status that is ‘attached’ to the car that
came with the package.
69

Applying the SMART criteria to objectives being considered will help
to improve them. For example:
Increase the number of visits made to older residents per week.
‘Increase the number’ is unmeasurable. Would an increase of one be
significant? A specific number should be given. Also ‘older
residents’ is a very broad category – it may be helpful to be clearer
about which group of older residents this applies to. It would also
be useful to set a defined time span; it is unlikely that a significant
increase could be achieved immediately.
Respond to email queries within five days.
This appears to be suitable, but again is not time-related and a time
frame should be agreed. If it is likely to involve gradual
improvement, or perhaps additional training, then it would be useful
to include something like ‘within three months’. Also if the individual
is easily able to achieve the objective, it may be too trivial a target
and a two day response time may be more suitable.
70
71
Time – timescales are likely to be tight and so many different
aspects of the change may need to be carried out simultaneously.
This increases the potential for mistakes to be made and will require
greater levels of resource.
Scope – this is a major paradigm shift in the way fire and rescue
services are operated in Pawton. All aspects of the work are going
to change and this will inevitably cause some confusion and possibly
some resentment amongst the staff who are happy with the status
quo. Detailed communications plans will be required.
Preservation – care should be taken to capture and capitalise on the
expertise of the existing call handlers. The good working
relationship between all the different bodies which provide the
service should be maintained.
Diversity – there is a wide range of different stakeholders to be
considered. From firefighters, to control room operatives, from
government ministers to the general public, plans will need to
consider the needs and issues affecting each group and deal with
them separately.
Capability - There is no one organisation here but several which will
need to be coordinated. The level of change coordination required
will therefore be considerable as no one organisation can manage
the change alone even if the expertise was available. Research is
needed into the managerial and individual capability for change –
but if change has not traditionally been a feature of the service it is
likely that significant support will be required from the change
agents.
Capacity - The government originally set the budget for the change
at $120 million. Budgets for large scale projects are often exceeded
and it is therefore quite possible that the original amounts set aside
for the change may no longer be available.
Readiness - Staff will clearly be aware of the forthcoming change. If
the programme has been successfully carried out, their questions
and concerns will have been addressed from the beginning and so
they will be able to approach the change positively. Any areas of
likely resistance should already have been identified so that action
can be taken to smooth the way for the change.
71
Power – The programme is a national government plan and as such

the change agents should have all the authority they need to
implement all the changes needed.
72

Security – fears over job security, changes to work colleagues and
established team
Earnings – impact on potential wage levels, promotion prospects
Fear of the unknown – fear that won’t be able to do what is asked,
won’t like the new ways of working or new colleagues
Habit – preference for the way is has always been done and
reluctance to expend the time and energy needed to learn new
methods
Distrust – belief that management are unlikely to tell the truth and
that worse is to come.
73

There are many points that could be made in answer to this
question. Below is just a selection. In an exam you must make sure
that you apply the theories you have learnt to the specifics of the
scenario – the examiner will not award marks if you just repeat
details of the theoretical models.
The group has only been together two weeks. Groups take time to
become effective. It is likely they have only just made it through to
the storming stage and are still jostling for position and establishing
group norms. There are a number of interventions which may help
at this stage but it is also likely that they will settle after a few more
weeks and become more productive even without interventions.
It may be that the conflicts are arising as a result of anxiety over the
workload involved in completing the terminal on time, or perhaps
because the group do not believe that between them they have all
the skills necessary to do the job. Alternatively they may the result
of personal antipathies. The project manager should work to identify
the causes of the conflict and help bring both sides together so that
they can resolve it themselves acting as a mediator where
necessary. The project manager should also take care not to get
involved in the internal conflicts and maintain professionalism at all
times.
Groups can be made more effective by introducing a number of
factors such as a common aim and interdependent work – clearly the
group here know they have a terminal to build between them, but
this is a monumental task and perhaps they are not clear about how
to achieve it. Clear leadership and a structured approach to project
management may help them to understand their roles. They may
also need more specific achievable goals to help focus them on the
particular aspects of the work they are expected to complete.
No indication of the team size is given. Teams work best in smallish
groups (5 to 7 people if often quoted). If the team is much larger
the project manager may wish to break the team into a number of
sub groups each responsible for one aspect of the project. This may
also help with project planning.
The project manager may not be adopting an appropriate leadership
style. It is likely that most of the team are ‘Theory Y’ types, self-
motivated and keen to work. This would suggest that the leadership
style adopted should be a consultative or participative style in which
team members are actively involved in the decision making process
and the setting of the team goals. If they are being told what to do
74
and given little freedom over how to achieve their aims, it is likely to
be adding to their frustrations.
The prospect of group rewards may help to focus the team but this
relies on the rewards chosen being considered motivational by the
team members. Different people within the team may be motivated
by different types of rewards (from promotion or bonuses to an
extra holiday allowance). The current rewards on offer may not be
within the remit of the project manager to alter. However by getting
to know the team and identifying their needs it may be possible to
approach the project board to see if suitable rewards could be made
available.
75

Nathan has a developmental need. He needs to develop his self-
confidence, assertiveness and time management skills. His needs
may best be met by sending him on a specific course which would
help him to improve his skills in these areas. If funds are limited or
there are other more experienced staff working with him, an
alternative would be to assign one of the other staff as Nathan’s
mentor. He could then learn from them how best to manage his
time.
Mary has a simple training need. She would benefit from some skills
training in spreadsheets and this could probably take the form of a
‘teach yourself’ computer package.
Luke needs the support of someone who already works in the
organisation to show him the ropes. This is a good example of how
a mentoring role can work. If he is assigned a specific mentor, it will
be their job to pass on what they know about how the system works
so that Luke can follow it himself in future.
76

Job enlargement:
Barbara could be given a wider range of tasks to do; for example
she could be asked to prepare samples for analysis, to write up test
results, perhaps to set up microscopes, prepare chemical solutions
etc.
Job rotation:
Barbara could work in a different part of the laboratory every few
weeks – for example if she currently works in immunology, she
could transfer to haematology, and then to bacteriology and so on.
Job enrichment:
This would involve Barbara being responsible for a complete task.
She could for example prepare a sample for analysis, decide on the
appropriate tests, carry out the tests and write up the results before
submitting her report to the relevant hospital department. It is
important a manager spends time providing feedback on Barbara’s
performance.
77
77 Mansell Street
London E1 8AN
+ 44 (0)20 75435600
Email: studentsupport@cipfa.org
Website: www.cipfa.org

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BUSINESS AND CHANGE MANAGEMENT

MANAGING AND EMBEDDING CHANGE

Updated December 2021

First published 2016

Copyright © 2020 Chartered Institute of Public Finance and Accountancy

Learning outcomes and content

▪ Building the case for change and the change vision

▪ Use of a change agent

▪ Effective leadership including

▪ Organisational culture - the cultural web and innovative cultures

▪ Practical ways to motivate staff

▪ Planning for change and the change kaleidoscope

▪ Lewin’s Three Stage Change Model

▪ Resistance and barriers to change including

▪ Kotter’s strategies for change

▪ Effective communication and conflict resolution

▪ Team building and group effectiveness

▪ Development and appraisals

▪ Rewards to reinforce success

▪ Job design and delegation

3.1 Managing and embedding change

3.2 Topic diagram

The nature MANAGING AND

Culture and the

3.3 The nature of change

Where change can be introduced incrementally, stakeholders are

(requiring a change to the organisation’s core culture), a planned

▪ Cloud Airlines expansion to become a transatlantic airline

▪ The reorganisation of the fire and rescues service in Pawton

▪ Hartshap Hotels movement upmarket

▪ The reorganisation of the Colswell council SCHOP

3.4 Building the case for change

stage, the programme vision statement describes the future state of

3.5 Use of a change agent

The change agent may be an external appointee or an internal staff

▪ Keeping sight of the bigger picture

3.6.1 The difference between management and

Leadership functions Management functions

3.6.2 What makes a good leader

▪ Ability (intelligence, relevant knowledge for the job, verbal

▪ Sociability (participation, cooperativeness, popularity)

▪ Motivation (initiative and persistence).

3.6.3 Effective leadership

▪ The average person is by nature idle, lacks ambition, dislikes

▪ Managers need to motivate staff through rewards and

▪ The average person prefers to be directed; to avoid

▪ People are not by nature passive or resistant to organisational

▪ People will apply self-control and self-direction in the pursuit of

▪ People usually accept and often seek responsibility. Motivation

Exploitative Benevolent Consultative Participative

Exploitative Benevolent Consultative Participative

Varying the leadership style

▪ Task - setting clear objectives and expectations, and managing

▪ Team - ensuring communication and interactions between the

▪ Individual - considering the individual needs of people and

3.7 Organisational culture

3.7.1 The cultural web

The outer rings represent the cultural artefacts – those aspects of

3.7.2 Using the cultural web