Organizational Behavior managing change Tomáš Ondráček ondracek.t@mail.muni.cz Faculty of Economics and Administration, Masaryk University 2020 Introduction Introduction ·ORBE ·2020 2 / 23 Introduction questions How changes occur? How to analyze change? from a process perspective ·ORBE ·2020 3 / 23 Process models Process models ·ORBE ·2020 4 / 23 Process models Sources open system theories thinking about organizations (and parts of organizations) as a system of interrelated components that are embedded in, and strongly influenced by, a larger system ·ORBE ·2020 5 / 23 Types of Process Theories Types of Process Theories ·ORBE ·2020 6 / 23 Types of Process Theories Sources Life cycle theories Teleological theories Dialectical theories Evolutionary theories Van de Ven and Poole (1995) ·ORBE ·2020 7 / 23 Types of Process Theories Process Theories of Organizational Development and Change (Van de Ven & Poole, 1995: 520) ·ORBE ·2020 8 / 23 Types of Process Theories A life-cycle model A life-cycle model depicts the process of change in an entity as progressing through a necessary sequence of stages. An institutional, natural, or logical program prescribes the specific contents of these stages. motor: A singular, discrete entity exists that undergoes change, yet maintains its identity throughout the process. The entity passes through stages distinguishable in form or function. A program, routine, rule, or code exists in nature, social institutions, or logic that determines the stages of development and governs progression through the stages. (Van de Ven & Poole, 1995: 520–521, 525) ·ORBE ·2020 9 / 23 Types of Process Theories A teleological model A teleological model views development as a cycle of goal formulation, implementation, evaluation, and modification of goals based on what was learned by the entity. This sequence emerges through the purposeful social construction among individuals within the entity. motor: An individual or group exists that acts as a singular, discrete entity, which engages in reflexively monitored action to socially construct and cognitively share a common end state or goal. The entity may envision its end state of development before or after actions it may take, and the goal may be set explicitly or implicitly. However, the process of social construction or sense making, decision making, and goal setting must be identifiable. A set of requirements and constraints exists to attain the goal, and the activities and developmental transitions undertaken by the entity contribute to meeting these requirements and constraints. (Van de Ven & Poole, 1995: 520–521, 525) ·ORBE ·2020 10 / 23 Types of Process Theories A dialectical model In dialectical models of development, conflicts emerge between entities espousing opposing thesis and antithesis that collide to produce a synthesis, which in time becomes the thesis for the next cycle of a dialectical progression. Confrontation and conflict between opposing entities generate this dialectical cycle. motor: At least two entities exist (each with its own discrete identity) that oppose or contradict one another. The opposing entities must confront each other and engage in a conflict or struggle through some physical or social venue, in which the opposition plays itself out. The outcome of the conflict must consist either of a new entity that is different from the previous two, or (in degenerate cases) the defeat of one entity by the other, or a stalemate among the entities. (Van de Ven & Poole, 1995: 520–521, 525) ·ORBE ·2020 11 / 23 Types of Process Theories An evolutionary model An evolutionary model of development consists of a repetitive sequence of variation, selection, and retention events among entities in a designated population. Competition for scarce environmental resources between entities inhabiting a population generates this evolutionary cycle. motor: A population of entities exists in a commensalistic relationship (i.e., in a physical or social venue with limited resources each entity needs for its survival). Identifiable mechanisms exist for variation, selection, and retention of entities in the population. Macropopulation characteristics set the parameters for microlevel variation, selection, and retention mechanisms. (Van de Ven & Poole, 1995: 520–521, 525) ·ORBE ·2020 12 / 23 Types of Process Theories Reactive sequences subsequent events challenge rather than reinforce earlier events the importance of working on support (Hayes, 2014: 8–9) ·ORBE ·2020 13 / 23 Self-reinforcing sequences Self-reinforcing sequences ·ORBE ·2020 14 / 23 Self-reinforcing sequences Self-reinforcing sequences Increasing returns Psychological commitment to past decisions Cognitive biases and interpretive frames (Hayes, 2014: 8–9) ·ORBE ·2020 15 / 23 Self-reinforcing sequences Increasing returns Set-up costs Learning Coordination Betting on the right horse (Arthur et al., 1994) ·ORBE ·2020 16 / 23 Self-reinforcing sequences Psychological commitment to past decisions escalation of commitment Gambler’s Fallacy protection of self conistency naïve theory of chance ·ORBE ·2020 17 / 23 Self-reinforcing sequences Cognitive biases and interpretive frames Confirmation bias Framing effect Default effect ... ·ORBE ·2020 18 / 23 Path Dependence Path Dependence ·ORBE ·2020 19 / 23 Path Dependence Path dependence preformation phase path formation phase lock-in phase (Sydow, Schreyögg, & Koch, 2009) ·ORBE ·2020 20 / 23 Conclusion Conclusion ·ORBE ·2020 21 / 23 Conclusion Conclusion self-criticism ·ORBE ·2020 22 / 23 Sources Arthur, W. B., et al. (1994). Increasing returns and path dependence in the economy. University of michigan Press. Hayes, J. (2014). The theory and practice of change management. Palgrave MacMillan. Sydow, J., Schreyögg, G., & Koch, J. (2009). Organizational path dependence: Opening the black box. Academy of management review, 34(4). doi: 10.5465/amr.34.4.zok689 Van de Ven, A. H., & Poole, M. S. (1995). Explaining development and change in organizations. Academy of management review, 20(3). doi: 10.5465/amr.1995.9508080329