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Psychology of Change in Process ImprovementIntroduction to Change Management
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Total Quality Management is one method of bringing about change in the organization. There are many more. This section reviews some of the more common ones and presents data concerning whether these approaches work.
There are many approaches to change. Some come with new names. You may have heard about Learning Organizations, Socio-technical Systems, Leadership Challenges, Thriving on Chaos, Value-based pay systems, Re-engineering, and so on. Some of the proposed alternatives are nothing but renamed approaches. Some are new and do not have sufficient data about their effectiveness. We briefly review some of these alternatives. We choose to review the alternatives discussed and evaluated in academic literature, because we wish to know what works. Ideas that seem great in a book, may be difficult to implement, once implemented may fail to achieve the promised behavior changes.
The reviews are brief. You can write a book about any one of these methods of change. The purpose of this section is to make you sensitive that alternatives to Continuous Quality Improvement exist. This lecture does not prepare you to apply these alternatives.
There are many theories of change. Some of these are based on the experience of successful executives. Science believes that you cannot learn from experience of one company, that you have to look at the application of a theory across many organizations. Science believes that you can learn from mistakes, i.e. you can prove a hypothesis wrong, but there is little to learn from success. Unfortunately, executives that fail are not writing books. I like to read books titled "What did I do wrong." Our fascination with success may mislead us. When people succeed you do not know why. What people attribute to their own skills may be due to other factors. People often fail to see how environment helps them. They mistake good writing with truth. They believe and get involved with the examples of the application of the theory. They believe in the analogies that are embedded in good writing. Slogans that make the point of a theory may make the reader believe in the method of change without looking at the data. In short, many executives put out books and advice that derives its logic from an appeal to our common sense.
Some people go as far as thinking that management is common sense. You do not really need to go to school to learn it. You can do it.
I do not agree with these contentions. I believe that we should look at data. We should see what works. Without such corrections of our intuitions, the science of management will not progress. We will remain permanently victim to the next fad.
Describe what works in changing behavior.
Assess potential likelihood of a TQM project succeeding.
Two theories of how individuals change is based on the notion of self-interest. These theories are Value Expectancy and Multi-attribute Expected Utility. Both theories have their historical roots in psychology, economics, and business research. In the Value Expectancy it is assumed that when decision makers face several outcomes, they decide on the course of action based on the value of these outcomes and their subjective probability or 'expectation' that a particular action will achieve the outcome. In short, decision makers choose the course of action that maximizes their expected value. In the health care area, the health belief model is an example of a Value Expectancy model. The Health Belief model has been applied extensively to predict patients' behavior. The Health Belief model uses notions such as perceived susceptibility to disease, perceived severity of illness, perceived benefits, perceived barriers to change, and self efficacy to predict patients' behaviors.
The Multi-attribute Expected Utility model is also based on the same notion of self interest. It assumes that the decision makers evaluate the outcomes they face based on a number of attributes. Given the relative weight of each attribute, the decision maker arrives at an overall judgment of the value of each outcome and selects the outcome of highest value to them. People choose what to do based on their perception of their own self interest.
It does. Both Expectancy theory and Expected Utility Models predict individual behavior accurately. Glanz, Lewis and Rimer edited the book "Health Behavior and Health Education" in which the authors review the ability of both models in predicting patients' behavior. The studies they reviewed strongly supports the notion that either model can predict patients' behavior. Here are some example results. In one study, the Expected Utility model accurately predicted 82% of the decision to get flu vaccination for a randomly selected high risk patients of a clinic. In another study, the Expected Utility model accurately predicted 68% of patient's compliance with follow-up recommendations for abnormal pap smears.
A thorough explanation of consumer information processing was provided by Bettman in his book titled "An Information Processing Theory of Consumer Choice" (Addison Wesley, 1979). In this book he suggests the basic elements of the model include:
The implications of Consumer Information Processing theory for a manager planning to change an organization is clear. He/she must organize the information and communicate it effectively. He/she should think through the frequency of communications, the amount of the information, the channels for distribution of information, cognitive styles of the target population, the appropriate framing of the information, and point of choice summary labels for the information.
A good example of how decision making is affected by information search is the patients' decisions about choosing a provider. Glanz and Rudd in their 1989 article in "Advances in Health Education and Health Information Policy Review, " and subsequently in their chapter in the book titled "Health behavior and health education," arrived at the following conclusions concerning how patients use information about quality of care:
First, it appears that most individuals do not actively seek out health care information. The cost of seeking information may deter information-seeking behavior. Both information seeking and information processing for use will not only require knowledge but also motivation, skills, and peer or social support.
Second, studies of consumers reasons for choosing and changing health providers indicate that consumers often rely on the recommendations of friends and relatives because of lack of information about quality of care, the difficulty of evaluating such information, and/or the belief that lay opinion is an adequate substitute for expertly developed indicators.
Information processing limitations have been well established and researched. The extent to which these limitations affect business decisions are not known. The use of organized information and clear communication to bring about changes has also been documented. Data show that successful implementation of change is associated with clear communications.
Attributions are the causes people generate to explain events. Two people faced with the same information may act differently because they attribute to different causes. In our minds, a complex process helps human beings decide what is the cause of an effect. In part, causes should precede effects, should be co-occur with effects and should not be co-occur with other spurious events. The types of attributions people generate can be classified along four dimensions:
When change occurs people have a mix of failures and successes. To the extent that an optimistic view helps individuals remain open to change, it is important that we manipulate how we attribute early success or failures. Data show that attribution of a failure to stable or internal causes leads to expectations of more failures and loss of self esteem. In contrast, attribution of a success to a stable or external causes leads to expectations of more successes. When failure is attributed to controllable events, additional effort can be expected in the future. In contrast, when failure is attributed to uncontrollable events or to global causes, future effort will diminish. Agents of change need to develop a therapeutic relationship with people undergoing change. They need to understand how do people perceive the reasons for change. To the extent that these reasons highlight external, controllable, stable and specific causes, optimism will prevail, more effort may be exerted and change is more likely. Furthermore, the agents of change can enhances the chances of proper understanding of the need for change by clearly communicating their own understanding of the reason for change.
If the objective is to make sure that difficult tasks are initiated and continued despite early obstacles, it is important to attribute success to the person's effort and failure to events outside the control of the person.
The effect of attribution on employee behavior have been demonstrated. But the question of how one can change employee's attribution has not been addressed. It is assumed that optimism is a precursor for change, but such assumptions have not been tested in an organizational setting.
The theory of Reasoned Action suggests that human behavior is influenced by two factors: attitudes towards the behavior and the influence of social environment and general subjective norms on the behavior. Social norm is determined by examples that significant others set for us and by the attitudes they convey to us. Social Learning theory suggests that:
A key element of both Reasoned Action and Social Learning theories is the importance of social norms in changing the individual's behavior.
The effect of social norms in influencing behavior has been demonstrated in many studies. An example, is the study reported in the dissertation of Baker at University of Wisconsin in 1988. He studied condom use among patients in a sexually transmitted disease clinic. He found that 36% of variations in intentions to use condoms was explained by the Reasoned Action model. The belief that one's health care provider believed in the use of condoms was one of the most important predictors, demonstrating that norms could have a significant influence on our behaviors.
There are a variety of overlapping theories about how support affects behavior.
A statement of how support affects propensity to change was given by Gustafson, Cats-Bariel and Alemi in Systems To Support Health Policy Analysis in 1992:
Successful change is more likely to occur when those attempting the change believe the people they respect are also changing, wanting them to change, and will help them succeed. Moreover, they need to believe that if they fail, they fail not only themselves but also their social support group. Social ties with people committed to the change need to be established within and between organizations. Ties can extend beyond their won industry.
In a rational world there would be no need for social support. People would implement the things they believe in. But in reality, social support is essential to continued success.
Extensive evidence points to the fact that individuals who have naturally occurring social support are more likely to succeed. There is some evidence that it is possible to organize support for an individual and that such artificially occurring support will lead to new relationships and benefits similar to naturally occurring support groups.
Researchers refer to implementation of innovations over time
as diffusion. Diffusion is assumed to occur in two steps. During
the first steps early adopters think through the benefits of the
proposed innovation and select to try it. In the later stages,
others see early adopters using the new innovation and decide to
try it. Implementation of an innovation may fail for several
reasons including:
The concept that adoption of innovations should be examined over time and that customers differ in their rate of adoption is so basic that needs not be tested. Nevertheless, this concept was tested in several studies. Despite the common sense behind this concept and the data supporting it, it is missing from many other theories of managing change, including Total Quality Management. Innovation diffusion started from research on adoption of agricultural techniques. It quickly spread to other fields including management. At the core of this research are factors that promote adoption. On the section on "organization climate," we return to the innovation research and use proven predictors of successful change to assess readiness for organization-wide change .
Organization Development is not one approach to change. It is a group of approaches mostly organized to improve work life. French and Bell in their book titled "Organizational Development" outline the following underpinnings of this approach:
The inventory of Organizational Development interventions is quite extensive and it includes:
This is not an exhaustive list of interventions. It is set out here to give you a taste of the breadth and depth of interventions that fall under this approach to change.
Because
it is hard to examine whether as a whole these approaches work. Nevertheless, over the years there have been many meta-analysis or survey research of the various organizational development interventions. French and Bell summarized the reviews of these approaches, suggesting that in 51 to 70 percent of cases Organizational Development techniques led to significant improvements in reducing cost, improving quality or improving profit margins.
Increasingly,
managers use mass communication to reach their own employees and to manage them
more efficiently. Such mass communications include simple activities
such as an employee newsletter, a Total Quality Management story
board, mass mailings, cybercast e-mails, broadcast to employee
voice mails, video exchanges, television broadcasts and other
channels of mass communication. One way to bring about change is
to sell it through mass communication. Marketing is effective in
setting organization wide agenda and expectations. It can create
a positive image for change. The process of marketing to
employees is referred to as Internal marketing. The process of
marketing specific products from which a social good is likely to
emerge is called Social Marketing. And the process of advocating
a change through encouraging mass communication companies to
cover it is called Media Advocacy. In marketing, data are used to
make effective points to the target population. The message is
organized to make a lasting impression and to help the target
population identify with the needed change.
Of course it does. Or so we believe. There is considerable evidence that marketing works. Products and ideas are sold through marketing efforts. Data on use of marketing techniques to help employees change is not as widely available. Several organizations that advocated life style changes through Social Marketing of these ideas to their employees report success.
Reengineering uses technology to redesign business processes. The objective is to create a fundamental and radical improvement. The business process may be combined with other processes, eliminated, or restructured. Reengineering is a top down system of improvement with no required involvement from the employees. Reengineering may lead to layoffs or displacement of employees but does not always lead to such actions.
We are not aware of data across organizations showing that reengineering leads to significant improvements of organization's profit or market share. Nevertheless, there are numerous examples of companies who have tried reengineering and report savings. Many are reported by Hammer and Champy in their book "Reengineering the corporation: A manifesto for business revolution."
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Question: I'm not so sure if I fully understand the last issue, "redo the technology". Please explain. Answer: Redoing the technology means that one can bring about behavior change by re-engineering the technology so that the employee has no choice but to comply with the new recommendations. For example, if paper is removed from the site then use of the electronic record may increase. This question was asked on 4/1/2008 11:32:48 PM and answered on 4/2/2008 7:08:13 AM.
Question: this topic is very educative although i did not quite get the Atribution Theory Answer: The attribution theory makes the point that managers can attribute the cause of success or failure to different events and thus change the incentives for change. They can attribute success to the employee's skills and failure to external forces. When they do so, the employees will remain optimistic about the future and will try harder to succeed. This question was asked on 4/1/2008 9:16:45 PM and answered on 4/2/2008 7:06:27 AM.
Question: My manager doesn't utilize or understand theories of managment but is a very effective manager. Do you believe that good leaders can lead without behavioral analysis? Answer: Yes and no. Good managers are following some principles and many have studied them and described their behavior in terms of a theory. It is unlikely that your manager does not follow any of the principles we have discussed. In case that is the case, then we need to find out what he does so that we can learn from him and train other managers like him. This question was asked on 4/1/2008 6:20:59 PM and answered on 4/1/2008 8:05:41 PM.
Question: Do these theories, aid in preserving management as a science? Answer: They do because these theories are backed with data that shows they work. This question was asked on 4/1/2008 5:26:39 PM and answered on 4/1/2008 8:03:58 PM.
Question: I have taken the test for question 4. How do we submit a proof that we did ? Answer: You just mention that you have done so. This question was asked on 4/1/2008 3:14:31 PM and answered on 4/1/2008 8:03:30 PM.
Question: Dr. Alemi, This lecture has been very useful. The theories you presented sheds new light on the processes I have experienced in my professional life. Answer: Glad to be of help. This question was asked on 4/1/2008 2:46:10 PM and answered on 4/1/2008 8:02:59 PM.
Question: Now I understand why some things are done the way they are in my organization. Very informative lecture, providing some very useful tools that I can successfully employ. Answer: Glad to be of help. This question was asked on 4/1/2008 5:57:29 AM and answered on 4/1/2008 6:59:10 AM.
Question: Which theory would you recommend to help bring about a more positive work culture? Answer: I personally like media advocacy but there is no data that one approach is better than the other. This question was asked on 3/31/2008 11:26:47 PM and answered on 4/1/2008 6:58:42 AM.
Question: As for question 2, are we supposed to provide examples for each theory? Some of the theories are not applicable to my management, however are we supposed to provide examples to each of the theories. Answer: Yes please list every recommendation made in the lecture and say which ones are used in your setting. But please be comprehensive in listing the recommendations made in the reading. This question was asked on 3/30/2008 8:14:48 PM and answered on 3/30/2008 8:23:08 PM.
Question: With regard to question one and the things my manager does to encourage change, do you want the theory she uses or do you want the actual method she uses to encourage change? Answer: Either one will be sufficient. I just want you to think through your manager's behavior and methods. This question was asked on 3/30/2008 3:58:04 PM and answered on 3/30/2008 7:17:44 PM.
Add your own suggestions or read below suggestions made by others regarding how to improve this session:
Suggestion: Really liked the way the lecture was presented. Very informative. This comment was left on 4/1/2008 10:23:45 PM.
Suggestion: every thing from the profesor work will. This comment was left on 4/1/2008 4:56:18 PM.
Suggestion: The overview and discussion of different change efforts was interesting and I had a chance to relate some of them back to my job. This comment was left on 4/1/2008 12:00:30 PM.
Suggestion: The theories were very informative, content clear. The questions asked for homework were a little vague. Overall teh lecture was very interesting. This comment was left on 4/1/2008 12:35:12 AM.
Suggestion: Very informative lecture and a good review for me of theories of organizational behaviors. This comment was left on 3/30/2008 8:28:07 PM.
Suggestion: Lecture was very helpful. This comment was left on 3/30/2008 5:58:17 PM.
Suggestion: i thought the pizza idea was great. This comment was left on 3/30/2008 5:28:31 PM.
Suggestion: Lecture was good, content clear, questions a little vague. This comment was left on 3/30/2008 4:55:09 PM.
Suggestion: The organization in regards to the HW questions is confusing. This comment was left on 3/30/2008 3:59:08 PM.
Suggestion: This was a pretty good lecture. I understood everything. The lessons are getting better as each week passes. This comment was left on 3/29/2008 6:58:47 PM.