Organizational Behavior

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TABLE OF CONTENTS CONTENTS 1. Abstract 2. Introduction 3. Research Objective 4. Research Significance 5. Methodology 6. Literature Review 7. Analysis 8. Conclusion / Recommendation 9. Bibliography / Reference PAGE NO 1 3 - 4 4 4 5 5 -11 12- 15 16 -17 18 -19

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Abstract The implementation of an Accounting Software package Peachtree, at San Fernando City Corporation experienced challenges with respect to change. The process of observation and the use of the secondary data were used in the course of the information discussed. Characteristics of change management were identified and qualitative techniques were used to analyze and summarize the existing data in order to explain why and how issues relating to organizational changes. The Objectives that rose from change at San Fernando City Corporation was to examine employee performance with the implementation of change. The strategies used in communication, examine the change agent and training strategies used to integrate change and also to state the barriers in change management. Upon reading the context, one should be able to fully understand the challenges and issues deriving from change.

Organizational Behavior
Introduction

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Everyone has accepted by now that change is inevitable. But that still implies that change is like death and taxes-it should be postponed as long as possible and no change would be vastly preferable. But in a period of upheaval, such as the one we are living in change is the norm. Peter Drucker (1999) Organizational Behavior is the study and application of knowledge about individuals and groups act in organizations. Its purpose is to build better relationships by achieving human, organizational and social objectives. Organizational behavior involves why we do things and how it affects others. Organizational behavior comprises a wide range of topics such as change, which would be examined in this context. Organization development is a collection of planned change interventions, built on humanisticdemocratic values that seek to improve organizational effectiveness and employee wellbeing.(Organizational Behavior (Robbins, Judge, 13th edition p 662) Change management is an aspect of management focusing on ensuring that the firm responds to the environment in which it operates. Change involves thoughtful planning, sensitive implementation and most important communication with those affected by the change. It is necessary to develop strategies to implement change, for the establishment of greater alternatives. However, proposals to resistance occur with the implementation of change resulting in dissatisfaction. Change may arise from the development of new products or competition, changes in cultural, political, economical, legal and social framework. In particular change in Technology is used in this context. San Fernando City Corporation was established and has been in operation for over Twenty Five years. It is managed by the Government of Trinidad and Tobago and comprises of more than sixty employees within the accounts department. The organization was not operating on any major computer related activites; it was mainly a manual system. However with changing technology it was planned that the implementation of accounting software, Peachtree be introduced to the finance department. It was decided by the City Treasurer, that the Finance department needed a proactive change.

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How well the implementation of an accounting software package in the finance department at San Fernando City Corporation performs is not simply a function of managing change but a matter of how well it can manage both short term and long term changes. What are the major issues involved with change management? Described later in context will emphasize managing change issues and challenges encountered in organizations today.

Research Objectives y To examine the effects of change on employee performance.

To assess the communication strategies used in managing change.

To study the barriers to change management.

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

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

Research Significance On completion of this analysis, the main intention would be that employees and management after reading the evaluations would improve performance, strengthen communication strategies and enhance ways to overcome resistance to change.

Organizational Behavior
Methodology

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Methodology may be described as a process or procedures which may include theories or concepts as they relate to a particular discipline of inquiry. The methodology used to compose this assignment was the secondary documents of the company. Also, being an employee of the organization, in the accounts department the researcher has become a participant observer and has also been impacted on the strategies used to implement the change. In addition, the assignment is based on theories and concepts to further understand the process for change.

Literature Review The literature review aims to identify effective change management including theoretical contributions in aspect of a particular topic. Change management is viewed differently in literatures. The process is to start at whatever stage the individual is at and not to expect them to be as ready as you are to have them change. How does successful change happen? There is no right or wrong theory to change management. Discussed below are some theorists views on successful change.

The concept of change management is a familiar one in businesses today. How business manage change (and how successful they are at it, varies enormously depending on the nature of the business. One of the cornerstone models for understanding organizational change was developed by Kurt Lewin back in the 1950s, and still holds true today. Once the individual shows a readiness to alter his or her behavior or at least acknowledge the need for change, the change agent can process of change In (Kurt Lewin 1951) framework portrays change as a dynamic forces in which individuals have to progress through three stages; unfreezing, which recognized the need for change; changing, which means overcoming and reducing the force of resistance and utilizing and strengthening drive forces, and refreezing, which means habituating the change. Therefore

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these forces can help shift the balance in the direction of planned change. This model attempts to analyze forces that impact changes. The change process Figure 1:

UNFREEZE

CHANGE

REFREEZE

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

The unfreeze stage signifies the exiting status or equilibrium stage .It involves getting people to change perspective, dismiss bad habits and indentify new ways of meeting objectives. It states that current practices have to be differed in order to get the change in motion. The second step in Lewins force field model is change which signifies the implementation stage and moving to new level of equilibrium. Once employees accept change which may mean new tasks and responsibility given, change can start. Time is an important concept in effective change management. Once change has been effective, the equilibrium should be stabilized, therefore we should acquire some sort of cemented structure known in the lewins model as the freeze stage. Kurt Lewin (1951) went on to explain that An issue is held in balance by the interaction of two opposing sets of forces, he suggests that all behavior is the result o fan equilibrium between two sets of opposing forces. This is illustrated as the force-field theory.Lewin viewed driving forces, those seeking to promote change and refraining forces, those seeking to maintain the status quo. Lewin viewed organizations as systems in which the present situation was not a static pattern, but a dynamic balance (equilibrium) of forces working in opposite directions. The force field diagram is a model built on this idea that forces persons, habits, customs, and attitudes both drive and refrain change.

Organizational Behavior
Figure 15: Lewins Force field Analysis Cited Objective, goal, target, problem, need

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(Force favoring change)

(Force resisting the change)

(Equilibrium or current status) Source: http://www.valuebasedmanagement.net/methods_lewin_force_field_analysis.html

In perspective of Folder & Skarlicki (1999) resistance is defined as employee behavior that seeks to challenge, disrupt, or invest prevailing assumptions discourses, and power relation. Zaltman & Duncan (1977) also define resistance as "any conduct that serves to maintain the status quo in the face of pressure to alter the status quo" (cited in Bradley, 2000, p. 76).

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According to Dent & Goldberg (1999), individuals are not really resisting the change, but rather they may be resisting the loss of status, loss of pay, or loss of control. Bhutan (2005) adds, There is always the danger of identifying a symptom of resistance when you are really looking for its cause. To diagnose the causes, we must understand a persons state of mind. The most important factors that go into a persons state of mind are his or her facts, belief, feeling, and values. It is vitally important to pay proper attention to the eight steps mentioned below to create successful change. This process seeks to achieve a revolution in the way an organization is led and managed and takes time. By recognizing those three distinct stages of change, you can plan to implement the change required however it must be done in stages. Kotter (1996 )takes a different view seeing, the overall direction of change as being decided by senior managers, but implementation being the responsibility of empowered managers and employees at all levels. He developed an eight-stage process of creating major changes: i.e. y y y y y y Create a sense of urgency about the future Create a guiding coalition Develop a vision and a strategy for achieving it Communicate the challenge vision Empower broad- based action Generate some benefits in the short term this will allow employees to see improvements along the way to achieving the end objective. y y Consolidate change and produce more change Anchor new approaches.

In addition to this theory another theory alternatively Schein (1999) also established an eight step approach to ease the individual into learning that it is necessary for change to occur.

Organizational Behavior
(Schein (1999) eight step model to implementing change) y y y

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Build a compelling vision of what the future might be if change were to occur. Formal training in the learning competencies that are deficient. Personal control over the learning process by the learner. This involves determining the learning objectives, method of learning and the pace at which learning progresses.

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

Training resources and safe harbors are necessary to not only permit the trial-and-error that frequently occurs in learning, but the freedom to risk making mistakes.

y y

Positive role models are necessary to support observational learning. Support groups or communities of practices can be established to provide both group support for making changes and group learning experiences.

Rewards and organizational structures that are aligned to the desired state. This is very broad and covers many ways change might be encouraged and barriers to change eliminated.

In Scheins model there is a major component of planning that is required. As we can observe from theories mention so far, invention strategies differ from author to author but involve similar elements as proven in literature. Change Agent Lippitt, Watson and Westly (1958) extend Lewins Three Step change Theory. Lippitt, Watson and Westly created a seven step theory that focuses more on the role and responsibility of the change agent than on the evolution of change itself. The seven steps are listed below: y y y y Diagnose the problem Assess the motivation and capacity for change Assess the resources and motivation of the change agent Choose progressive change objects 9

Organizational Behavior
y y y

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Roles of change agent should be clear and understood by all employees involved. Maintain the change Gradually terminate from the helping relationship.

This theory mainly focused on the change agent rather than change itself. Employee Performance Winners must learn to relish change with the same enthusiasm and energy that we have resisted in the past. Tom Peters (1982)

(Graetz et al, 2002, p 100) identified the semi-autonomous workgroup as the foundation of any organization and conceding that it was better suited to the demands of business ,it was less considerate to the basic needs of employees for example ,job satisfaction. This approach proposed that both technical and social systems of work should be utilized in order for an organization to change. Change therefore must be managed short term in a way that emphasizes the on-going long term objectives, while maintaining high performance. Change efforts in some way should incorporate the ability to encourage innovation, knowledge sharing, develops team working, and motivates employees. When an organization issues a planned change, it tends to have a more focused sequenced of planned actions. The organization should be more planned rather than left to evolve on its own (Beer and Nohria 2000). They went on to argue that when considering forces of change, certain elements other than planning are acknowledged.firstly, the purpose for change must be considered, along with the leadership style in change efforts. The motivation for change plays an important role as well as the focus of change. Communication (Dunphy 2000) states that factors in top-down management make enhancing participation difficult.Therefore, agreement for change decisions has to be negotiated amongst partners.

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Organizational Behavior

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Involvement in strategic decision making through workgroups and team involves some degree of participation. Organizations that allow participative change strategies tend to have high levels of involvement and communication from all levels regarding the change process .Similarly, Bennis (2000) believes that successful change occurs in diverse participants where leaders are listeners. Therefore, a vital condition for participation is that the employees are well informed to make contributions concerning the change process. Training (Dunphy 2000) stated as the knowledge and training increases the level of participation also increases. It signifies if the employees are properly trained, the skilled level and work forced is increased resulting in participation to change. The manager therefore has a degree of responsibility to invest the skills of the employees and influence participation towards change management. Another theorist Reed Gadner (1998) went on to add that that the success of change is eighty percent dependent on the development of the social and political interaction skills and twenty percent or less on the implementation of the hardware and software technology. Change can increase the amount of ambiguity felt by employees and becomes problematic whenever they are unclear about what is wanted from them. This has been argued in much different aspect from a holistic approach through different theorist and professional associates. In both cases, the practical matter is that one management needs to find means and ways of making required changes and at the same time ensuring employees go with the change rather than against the change.

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Organizational Behavior

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Analysis Change is one part of an organization that is consistently affecting people and processes in another part. According to Kurt Lewin (1951) .Change has always been a feature of organizational life, though many argue that the frequency and magnitude of change are greater now than ever before. Therefore all organizational functions may be affected by change. Change processes can influence what an organization does, the way the company does things and the way the organization communicates and share information. Change can bring about a number of triggers either external or internal factors. External triggers may include Changes in the demand for San Fernando City Corporation (Sfcc) services, merger of the business with another, inability to attract sufficient numbers of skilled employees, political changes and development of new technology available for application. Internal triggers should however be more expected indicators of change which may comprise of strategies in planned change, efforts to introduce cultural change, better use of resources example computers need to improve, and the need to spread out staff where they are most effective. Changes however may bring about a crisis of some kind, in this case it would be the failure of new technology, managers should respond reactively and have a contingency plan available, probably introduce a temporary tutor for troubleshooting issues with the software package, this may not be the ideal response but it will prevent the crisis from turning into a major tragedy. San Fernando City Corporation (sfcc) encounters major challenges within the Finance department with the implementation of accounting software, known as Peachtree Accounting Package. Challenges include the need for skilled staff. Technology can support change but it can never replace people. Another challenge that arises at Sfcc is the failure to enhance employees participation, resulting in the lack of motivation towards change. When mentioning change, it brings about the forces of change, which may comprise of the Nature of the workplace, economic shocks, Competition, Social Trends and in this case Technology. The forces of change will determine if the change is internal or external. San Fernando City Corporation (sfcc) initiated an internal or
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Organizational Behavior

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planned change which may be described as change activities that are intentional and goal oriented. What is the goal of planned change? Basically it seeks to improve the ability of the organization and it seeks to change employee behavior as mentioned in literature by Schein (1999). Planned change may require new objectives, change in leadership and Organizational culture. Change can be used to overcome existing problems for instance in the stated organization a backlog of data needs to be processed in a timely period so new technology is introduced. However, with a planned change certain limitations may be present for instance, the ability to reconsider or change the strategy once it has been implemented. It also constrains Sfcc the ability to respond promptly to sudden changes. Change management can have a positive or negative impact on employee performance. Primarily, employees must be aware and know why a specific change is needed. The individuals must acquire some sort of motivation to participate towards the change. The organization members must attain knowledge and ability to assist to integrate change management. Any changes that were developed with the employees must be sustained. As mentioned earlier (Kurt lewin) 1951, the change process, unfreeze, freeze and unfreeze would refer to the employees towards change in technology .Management plays an important role in employee performance, their responsibility is to firstly, identify behaviors that are not expert and develop new behaviors that are more effective within San Fernando City Corporation

(sfcc).Management should also try to understand the employees reaction towards the implantation of the accounting package. In Sfcc the implementation of Peachtree Accounting Software was not received positively by its senior employees making it impossible to implement this change without resistance. Change requires the willingness and ability to resign the old ways of doing tasks. The employees of Sfcc are made up of a variety of people for instance different age, personality, and experience of changes. Hence, different people are managed in different ways. To increase employees performance the manager should not be judgmental and respond positively to change and employees reaction. This will lessen the resistance to change.

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Organizational Behavior

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Peoples resistance to change is one of the major challenges faces in the implementation of new Technology Software at Sfcc. Employees show a sense of riskaversion meaning that that they fear to make mistakes or to fail. As illustrated earlier Kurt Lewin (1951) force-field theory that suggest all behavior is the result of an equilibrium between two sets of opposing forces know as driving and restraining forces.Possible reasons why employees may resist ways in working with new technologies are, they do not have the necessary skills and they lack understanding the new ways of the change. Sources in Resistance may be due to employees habits, meaning that the tendency to respond in accustomed ways becomes a source of resistance. Employees with a high sense of security are likely to resist change because it threatens their feeling of safety. Fear of the unknown, uncertainty and security also contributes to resistance of change. San Fernando City Corporation (Sfcc) provided training to its employees to work within the new technology but it is the employees importance to emphasize appropriate training at regular sessions. Organization individuals believe that change competes with their existing status. Managers must take responsibility and try to motivate the employees in order to influence change. Communication therefore, plays and important role in the change process. Communication should be honest and encouraging, employees has to appreciate the difficulties of unlearning and giving up old habits. How will management support this change process? The manager at Sfcc has a fair communication status towards the employees. Communication with every person, not just those in authority, during the change process is crucial. The manager needs to understand that communication is a real two-way discussion and not a presentation. Technical change does not happen in a day. The participation of future users should be involved from an early stage, thus, increasing motivation and success in the change process. To manage change effectively, leadership is important. During the time of change, employees would appreciate leadership as supportive and committed in their interest at the same time acknowledging that tough decisions need to be made. Who in Sfcc is responsible for managing change activities? An internal change agent is present in leading the change management.A change agent is a person who acts as catalysts and assumes the responsibility for managing change activities. (Organizational Behavior (Robbins, Judge,
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Organizational Behavior

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

with the employees of Sfcc. As mentioned earlier effective communication reduces resistance to change. The change agent should encourage greater employee participation and support to enhance meaningful contribution and increase quality and productivity in the change decision. The change agent is also responsible that employees acknowledge the reasons for the change. Lastly if resistance to change is still overruling, the change agent should enforce coercion meaning restrain by force on the employees that are still resisting the change, for example, treats of loss of promotion or poor performance appraisal could be issued. Change inherently implies political activity. The internal change agent at Sfcc is an individual with a high status position in the organization who has a lot to lose from change, hence change creates potential for other employees at Sfcc to gain power at their expense. This develops political issues which suggest that the driving forces for change is more likely to materialize from outside change agents, employees who are new to Sfcc or from managers who are slightly removed from the main power structure. To assist in the acceptance of change the employees and managers should be open minded for any new ideas and managers should listen to suggestions and protect new ideas from criticism. Development of employee participation is vital as it will help in learning from the mistakes encountered through changes. Management should not make any final judgments or suggestions to early in the change process.

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Conclusion and Recommendations Change management should take into consideration all possible complexities. Mutual feedback should be provided on all aspects of change. It is essential to understand the current status of the project. Once a proper planning procedure is implemented to ensure all necessary resources for instance sufficient computers and reliable staff, it provided a clear objective towards managing change. At Sfcc change should be based on the organizations history, readiness and ability to change. The objectives mentioned earlier resulting in issues on employee performance, the use of communication strategies, the barriers and restrictions towards change and also the change agent and training strategies used to integrate the change management at Sfcc. Discussed below are the recommendations to address the stated objectives towards change at Sfcc. At the San Fernando City Corporation (Sfcc) some sort of reward for employee performance should be introduced so that the staff involved in the change process would feel their contribution is valued. Similarly employees should allow leeway for an open mind to the future and change. Managers at Sfcc should gain patience and tolerance with the employees with respect to the establishment of change and should focus on one change process at a time. Patience will enforce internal motivation which should be supported more because the employees would feel more appreciated and will assist in real commitment towards the implementation of new technology. Mistakes would occur with the introduction towards change, however occasional mistakes should not be punished and instead involved employees should be encouraged to try harder to acquire the necessary knowledge, this will also assist in reduction to resistance to change. Sensitivity training should be allowed which defines Training groups that seek to change behavior through unstructured group interaction. (Organizational Behavior
(Robbins, Judge, 13th edition p 663).Team Building should also be recommended with

the presence of high interaction among team members to increase trust and openness towards the change management. As mentioned earlier with Kurt lewins (1951) three
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step approach, once the organization unfreeze, which identifies the existing status then change meaning purge its system ,and freeze which signifies a cemented structure to stabilize the change ,it would encounter fewer mishaps, and satisfying the

organizations objectives. Successful change management requires great amount of commitment. Consideration are taken into account for successful change, for instance, the change process, dealing with resistance, leading the change, mending conflicts, facing cultural issues and the use of effective communication. Therefore, it is vital to implement change management in all aspects of the organizational.

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Bibliography/References Bernard Burnes (2004) managing Change 4th edition, FT/Prentice Hall Burnes, B (2004) Kurt Lewin and the Planned approach to change: a re-appraisal. Journal of Management Studies, 41(6). Beardwell , J. and Claydon, T. (2007) Human Resource Management. A Contemporary Approach 5th ed Prentice Hall Harlor Cummings, TG and Worley, CG (2001) organizational Development and Change (7th Edition). South-Western College Publishing: Mason, OH, USA. Carnall, C.A. (2007) Managing Change in Organizations (5th Edition) Harlow: FT/Prentice Hall & Pearson Education. G.A. Cole (2004) management Theory and Practice 6th edition; Book Power Kotter, J.P. (1996) Leading Change. Boston: Harvard Business School press Laurie, J. Mullins,(2007) management and organizational behavior 8th edition, FT prentice Hall Robbins J. Judge (2009) Organizational Behaviour 13th edition, Pearson International edition Whittington et al., (1994) Market-driven change in professional service: problems and processes, Journal of Management studies (1994), 31,6 November, pp.829-45.

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Websites sources

Change Management Website: http://en.wikipedia.org/wiki/Change_management Date Cited; [22nd November 2010

Frameworks for change organizational Change Management: Website: http://www,frameworksforchange.com/ Cited Date: [24th November 2010]

Kotter's 8-Step Change Model Implementing change powerfully and successfully

Website: http://www.mindtools.com/pages/article/newPPM_82.htm Date Cited [22nd November 2010]

Managing change in organizational Development Website: http://rapidbi.com/created/changemanagement.html

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Organizational Behavior Date Cited [14th December 2010]

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Tom Peters and Robert H Waterman Jr - In Search Of Excellence summary Website: http://www.businessballs.com/tompetersinsearchofexcellence.htm Date Cited [16th December 2010]

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