WHAT TO EXPECT…

This course is designed to explore organizational development and change.

This is a topic that is very fluid therefore there is a great deal of reading is required at the start of the class.

Weeks one to three will have considerable reading outside of the textbook. Beginning with week four to week seven, you will have business cases to explore at the start of each class related to the assigned reading.

Each case will require an analysis paper due at the end of the assigned week.

WHAT TO EXPECT…

For this week, review this lesson and begin reading…keep reading.

You have a three discussions for week one. Begin these discussions by Wednesday.

I find this topic interesting and I hope you will enjoy learning it as well. Keep an open mind and a willingness to explore and work and you will do great.

If you have any questions please contact me by email or phone. My contact information is located in the course syllabus.

WHAT IS CHANGE?Change is the process of introducing something that will transform a process, means, or a way of doing.

Change can be dramatic such as the introduction of a new software system to handle payroll for a company that employees 90,000 employees across six nations or it can be simple like having the six employees in a local auto repair shop initial their timecard each week.

The reason for the change is important.

Change should be done for a reason.

The change has to produce value…

WHY CHANGE?

Why Change? Why would someone want to change?

It is simple in scope: Change is to gain an edge.

Change works to gain something that will allow the organization to thrive in someway. Typically this change is viewed as a means to gain greater profitability. Therefore change can include anything that can benefit the organization in some tangible way. It is change to gain.

WHY CHANGE?

Several years ago a commercial ran that showed an office settings typical in a larger corporation. An employee is walking past rows of cubicles telling fellow employees that his group has been able to shave $.10 off every transaction and was handing out dimes to celebrate.

Several employees smiled but appeared unconcerned and unappreciated by this accomplishment.

WHY CHANGE?

This employee walked on to the elevator and was soon joined by the company CEO. The excited employee handed the CEO a dime and said we are celebrating in IT. We shaved a dime off of every transaction. The employee then exited the elevator.

The CEO stares at the dime in disbelief and says “We do over 10 million transactions a year!”

One dime a transaction saved the company 1.2 million a year – “that’s a lot of dimes!”

WHY CHANGE?

Change has to have a level of value for it to be sought after.

The value may not be apparent to everyone involved and many times it is not of real value to most employees.

WHY CHANGE?

A common phase used in discussions about change is that “People do not want change!”

But is this true? Change happens to us and is around us all the time? Every year on your birthday there is a change!

Typical changes people encounter are:

• Change in jobs.

• Change from single to married and in some cases back to single.

• Change in having children and children growing up.

• Change occurs all the time.

The issue is the value people place on the change.

WHY CHANGE?Change can be illustrated through a company merger. Company A acquires Company B.

At first this acquisition looks like: A + B = A B

Company A and Company B both still exist in reality but not on paper. Company B does not exist any longer. It is a part of Company A but not absorbed into Company A. Not yet anyway…

WHY CHANGE?

Company A begins to produce change within Company B to merge elements of Company B to look and act like Company A. This can be done in a process depending on the size of the organizations in question.

In larger organizations the process can look like this: A + B = A + b1b2b3b4b5b6

Over time the b1b2b3b4b5b6 are “Changed” so that all that is left is A + B = A.

THE CHANGE VALUE

Only if people value the change will they seek or accept the change.

It is at this point we need to consider theory.

A short note on theory. Theory is important for it provides you with a means to view things in multiple settings. Theory allows you to develop a means to evaluate occurrences beyond one setting.

In relation to our study of Change, we begin with

“Expectancy Theory”

EXPECTANCY THEORY

Vroom (1964), who first presented the expectancy theory, postulated that people will make choices based on a desire to maximize pleasure and minimize pain.

EXPECTANCY THEORY Vroom established that valence-instrumentality-expectancy contribute to the level of expectancy for an individual.

Look at it this way…

When deciding among options, individuals will select the option with the greatest motivational force for them (MF = Motivational Force)

Motivational Force = valence x instrumentality x expectancy

EXPECTANCY THEORY Watch this short video on Expectancy Theory produced by Alanis Business Academy

EXPECTANCY THEORY

Valence is the expected satisfaction or value an individual believes will be the outcome received rather than the actual value received from the outcome.

Instrumentality is defined as the reward that is the result of achieving the performance goals.

Taken together valence and instrumentality produce expectancy which is the degree that an individual such as an employee believes that a particular outcome will emerge.

EXPECTANCY THEORY

Vroom expresses this theory as a formula of P=f (F x A), which states that performance (P) is the result of the interaction of force (F) and ability (A). Force (F) is the sum of valence-instrumentality-expectancy while ability (A) reflects the individual’s potential to perform a task.

P=f (F x A)

EXPECTANCY THEORY

Expectancy: how confident you are that if you put in the effort required you will actually reach the goal.

Valence: how much you really the outcome.

Instrumentality: how confident you are that the goal really will lead to the outcome.

Low motivation = you do not think you can do the work that is required (low expectancy)+ you do not think you will get the outcome even if you do the required work (low instrumentality) + you do not really want the outcome that much (low valence for the outcome)

High motivation = you are confident you can do the work that is required (high expectancy) + you are confident that you will get the outcome if you do the work (high instrumentality)+ you really want the outcome (high valence for the outcome)

The Final Outcome

Work Required

Level of Performance

To achieve a

Which should lead to

EXPECTANCY THEORY

An individual’s effort to change their performance level to achieve a desired outcome is based on a combination of four characteristics:

Abilities

Cognition

Traits

Role Perceptions

(These four characteristics will be explored later in this course.)

To summarize, expectancy theory provides a framework to perceive the level of value an individual places on a change event.

EXPECTANCY THEORY

This value is based on a combination of factors related to the employee’s personality and ability as well as work environmental factors.

In relation to change, expectancy theory is understood as a motivational aspect for the individual.

Because you placed a level of value on something related to the new job.

People do not only view value in terms of financial rewards. Value is expressed in various terms by each individual. The individual’s level of perceived need will shape how they place value on various aspects related to the job and outside the job.

Personal

Career

Ability

Financial

EXPECTANCY THEORY

For an employer, this theory may be expressed in practical terms of linking reward with job performance.

If an employee believes that an actual benefit is received from attending a training event and transferring that knowledge, skill, or ability into a tangible individual performance improvement or change, then the likelihood that transfer will occur is improved.

EXPECTANCY THEORY

The same is true with the employee.

An employee will accept change if the employee believes the change will be in their own best interest.

Question to consider: “You changed from one job to another job?” WHY? Why change jobs?

Because you placed a level of value on something related to the new job.

People do not only view value in terms of financial rewards. Value is expressed in various terms by each individual. The individual’s level of perceived need will shape how they place value on various aspects related to the job and outside the job.

VALUE

Here is an example…

Forty plus years ago a family moves outside of Dallas, Texas into a neighborhood which had tracts of 2 to 4 acres of land – a little homestead. They built, by themselves, a modest 1,200 foot ranch home. Neighbors also built similar homes. Total cost in 1960’s dollars was $35,000.

VALUE

Move ahead to the mid 1990’s. The location of this neighborhood in relation to Dallas grows. A developer begins to buy up the neighborhood. He adds a golf course and a lake. Value grows in financial terms and the developer begins to remove the older ranch homes and builds 12,000 square foot homes. The value of these homes exceed $1 million each.

This continues until every house in this neighborhood is sold to this developer but one.

Now this couple has raised their children and they in turn have left home and started families and careers. This, now older couple, have had offers on their home close to $500,000 but they will not sell.

VALUE

This older couple have placed a level of non-financial value on this home. They value their memories of family and they truly enjoy their home.

They feel that one day they will have to move from their home due to death or the inability to remain in their home due to health reasons.

They know very well the financial value of their home and have instructed their adult children to sell this home upon their deaths and divide the money between them in order to provide college educations for their many grandchildren and great-grandchildren.

This is their level of value. In the workplace, employees are the same way…

VALUE

Employees do not all value money the same.

Job conditions, fellow employees, value of their own job performance and related issues and conditions are all “values” individual employees’ maintain and express in relation to their employment.

Many of you are working toward a college degree because you value something a degree will provide you.

CULTURE

Change has to be understood in terms of the organization’s culture.

Culture impacts the change process

&

The change process impacts culture

You need to understand culture first before you can understand how to effect change.

Theses concepts we will explore in the coming weeks.

NEXT STEPS At this point read the paper: Organizational Culture. It will provide you a review of culture in more detail.

Continue by reading the additional articles and chapter one in the text and review the assigned videos.