PSY514 Organisational Development and Change

The term "psychological contract" refers to the important factors that govern workplace relationships and human behaviour in an organisation (Guest & Conway, 2002). It's a sophisticated and profound idea that's still being researched, and it's been the subject of various theoretical investigations and assessments (Lines & Reddy Vardireddy, 2017). The phrase Psychological Contract predominantly refers to the complexities of a correlation among the company and its employee, but it is preoccupied with the consensual assumptions regarding input - outcome ratio.

Employee commitment rises if the psychological contract is favourable, according to the key components of the Guest Model of Psychological Contract. However, there is a strong link connecting the Psychological Contract and Change Management (Pate et al., 2003). Successful change management necessitates a well-thought-out and organized endeavour, as well as full participation and commitment from all personnel engaged (Robinson & Rousseau, 1994). The Psychological Contract, as well as it may serve as guidelines template for the HRM functional department in improving processes in HRM and best employee retention practises to achieve maximum accomplishment from change interventions around across organisations.

Planned Change

Among the most significant differences in perspectives on change is just the source of change. The management stays inclined to construct models that emphasize an organised set of phases if individuals conceive of transformation as flowing from one condition to another in a systematic manner (Coram & Burnes, 2001). Its restrictions are as follows:

1.  
2. Anticipation in planning. 
3. Time consuming. 
4. Misdirected Planning
5. Rigidity

Emergent Change 

Another viewpoint is that transformation is mostly dynamic and emergent, and therefore it is all encompassing and ongoing. If you choose this approach, you're more inclined to see transformation as an organic aspect of an organization's life cycle (Pettigrew & Whipp, 1993), and approaches as periodic or recurrent (Cameron & Green, 2019). An emergent strategy's fundamental drawback is that it is unpredictable and so cannot be planned.

Quinn’s (1993) concept of logical Incrementalism is an integration of both the approaches.

A learning organisation is a corporation that encourages the development of its employees and alters itself on a regular basis (Pedler, 1991). Learning organisations may arise as a consequence of the constraints that current businesses face, remaining relevant in the marketplace.

A learning organisation has an impact on change management. This is due to the fact that organisational learning is a continuous process that results in long-term changes in a variety of regions as a consequence of integrated activities (Hayes & Fitzgerald, 2007). Organizational learning improves a firm's opportunity to comprehend on their behalf in the future (Mitra, Gaur & Giacosa, 2019). A planned change in organisational structure and culture becoming productive in answering and adapting to external changes when there is a continuous mechanism to develop, accumulate, and exchange knowledge across the entire business.

Traditional responses to activities and experience tend to provide people with a sense of security. Lack of certainty regarding the effects of transformation, particularly on job stability, is among the main causes for reluctance to start changing. Individuals' opinions are always influenced by their dread of the unexpected. Employees' resistance to change at work is largely due to poor change implementation and control (Fronda & Moriceau, 2008).

The antagonism to unique conditions or a shift in the status quo is known as unwillingness to change. Individuals could be resistant to adjustment if they aren't informed about the determining factors or the reasoning behind the choice. Communicating to employee complaints and suggestions might assist lessen change resistance. Here's how to overcome resistance to change:

1. Strive to enhance employee change preparedness.
2. Assuring employees that they'll have power. (Carnall, 2007)
3. Employee Resilience Should Be Recognized.
4. Offer adequate training. (Al-Ali et al., 2017)
5. To make the transition easier, appoint a leader.

Impact of poor communication:

Employees could become frustrated by communication breakdown, which breeds mistrust and misunderstanding. Employees' allegiance and devotion to the organisation could deteriorate if employees have never had strong channels of communication with one another and alongside management, so it makes employees feel not being heard. Demotivation might result from a lack of communication (Clampitt et al., 2000). Employees may feel discouraged as a result of bad communications, which can cause confusion, wasted opportunities, disagreement, the spread of disinformation, and distrust. 

Effective organisational communication enables a company to 1) perform assignments projects associated with specific selling, services, and manufacturing roles and duties; and 2) assimilate to the changing via individual and organisational inventiveness and adaptability (Hayes, 2007). So, here seem to be 8 pointers to assist firm put up an efficient communication strategy for a company:

1. Being receptive to feedback.
2. Making use of visuals.
3. Establish a Schedule for One-on-One Conversations.
4. Build a positive atmosphere.
5. Provide specific instructions.
6. Acknowledge accomplishments.
7. Meetings with employees should be held on a regular basis.
8. Make use of excellent communication tools.

It's critical to distinguish across change management as well as the tools, methods, and tactics employed to aid individuals in navigating change (May & Stahl, 2017). The attitude, qualities, attitudes, and behaviours of the individual who is driving the change are known as change leadership (Kotler, 1992). Both procedures are critical to the implementation of a change approach, but conflating the two words can cause confusion.

Change Management:

• It's all about getting involved and conquering obstacles.
• It frequently employs a ‘hierarchical play' strategy;
• Individuals and processes;
• Instead of installation, adoption is preferred.

Change Leadership:

• The person's personality and demeanour
• The individual in charge of the change's reputation and impact;
• Emotional and social cognition are two types of cognition. (Betancourt et al., 2017)
• It takes a philosophy, not really a position, to spearhead a transformation; it doesn't require a hierarchy.

Change leadership refers to the practice of persuading and concentrating on the change, while change management refers to the procedures for implementing the change. Employees might not always accept or comprehend the strategy's objective when change leadership doesn't really present, and often without organizational change, the procedures for attaining it might not be in existence.

A relational psychological contract is something that has formed through time as the employees and company's cooperation has grown stronger. A transactional contract wherein both parties are primarily concerned with short-term financial rewards.

Moreover, according to the report, ‘if the conventional commitments that help compensate for the psychological contract are intended to be for a fair day's labour for a fair day's compensation, therefore the traditional psychological contract is still alive and quite well.' The study's major point is that employees have reported greater levels of anxiety than before. Nevertheless, as per Guest and Conway, if HR professionals handle this properly, it might not have an impact on the psychological contract. In agreement with this, Atkinson (2003) published an analysis highlighting the move from relational to transactional contracting styles.

Yes, I concur with the assertion. Organizational change could have a negative impact on psychological change whether it falls short of the employee's aspirations (Guest & Conway, 2002), such as whether the change resulted in a wage cut or an unpleasant choice.

The primary distinction between the two would be that managers have followers, whereas managers have employees who merely operate for leaders. Leadership involves inspiring others to understand and accept the organization's purpose, as well as to collaborate with them to achieve its objectives (Sroufe, 2017).

To put it another way, management is commanding a group or a collection of units to achieve a common purpose. The capacity to influence, encourage, and empower others to contribute to organisational achievement is referred to as leadership. Managers and leaders are distinguished by their ability to persuade and inspire rather than by their power and domination. 

Since, they establish beliefs, environment, change acceptance, and motivation of employees, managers have a massive effect on others' behaviour, if it's a favourable or negative impact (Kotler, 1992). Leaders inspire individuals to adjust and engage them in the process. They instil a sense of desperation and significance in the transformation, as well as excitement for the task at hand. They reward people who really are engaging and performing successfully.

It's impractical to include every staff in every decision when making a change, particularly one which permeates the general firm. When transformation succeeds, it's usually since the organisation went out of its ways to enlist employee participation. As a result, employee involvement is critical in change management (Burke, 2002). The distinction amongst sad and dissatisfied foot-draggers and interested, eager employees who have been allowed to share their opinions is employee involvement (Aziz & Curlee, 2017). When it comes to change in the company, management just doesn't desire to be the first to implement it. The further employees acknowledge and embrace the need for corporate change, the more enthusiastically they will embrace it as per Kirkpatrick & O'Brien, (2016). Fostering individual comprehension and participation would enable them to collaborate on change initiatives in a positive and constructive manner.

As per Schein’s model Among the most challenging leadership problems is changing an organization's culture. Since this culture of an organisation is made up of interconnected objectives (Kirkpatrick et al., 2001), responsibilities, procedures, beliefs, methods of communication, mindsets, and preconceptions (Betancourt et al., 2017), also come in handy as illustrated in Pfeffer’s model. As a result, the common notion is that culture transformation takes two to three years. 

The Kirkpatrick Model is a widely used method for assessing the effectiveness of training and education programmes. This evaluates the formal and informal instructional techniques, grading them on 4 different levels: response, understanding, behaviour, and achievements (Burnes, 2004).

The revealed that transformational theories suggest because change is a dynamic process with just an unstructured, unexpected finish, wherein organisations adapt aggressively to environmental stimulation. So is supported by the theory of planned and emergent change (Coram & Burnes, 2001).

According to Lewin's model of planned change, the processes or variables that encourage the organization's current phase should be increased while the forces or variables that encourage the organization's current state should be reduced. As a result, there is less strain and stiffness.

A learning organisation is one that is capable of developing, gaining, and transferring expertise, as well as adjusting its behaviour in response to new information and observations. This concept starts with a fundamental reality: in addition to learning, innovative concepts are required.

Additionally, Single Loop Learning is action-oriented. Triple Loop Learning reaches to the very essence of items: the objective, the principles that govern me, and etc. Double Loop Learning concentrates just on the framework inside that our activities take place, while Triple Loop Learning reaches to the core of things: the intention, the principles that lead us, and etc (Bonanomi, 2019). Learning makes us aware of opportunities, and responding to those potentials makes us want to acquire more.

References 

Al-Ali, A. A., Singh, S. K., Al-Nahyan, M., & Sohal, A. S. (2017). Change management through leadership: the mediating role of organizational culture. International Journal of Organizational Analysis.

Aziz, E. E., & Curlee, W. (2017, October). How Successful Organizations Implement Change: Integrating Organizational Change Management and Project Management to Deliver Strategic Value. Project Management Institute.

Betancourt, J. R., Tan-McGrory, A., Kenst, K. S., Phan, T. H., & Lopez, L. (2017). Organizational change management for health equity: perspectives from the disparities leadership program. Health Affairs, 36(6), 1095-1101.

Betancourt, J.R., Tan-McGrory, A., Kenst, K.S., Phan, T.H. and Lopez, L., 2017. Organizational change management for health equity: perspectives from the disparities leadership program. Health Affairs, 36(6), pp.1095-1101.

Bonanomi, M. M. (2019). Digital Transformation of Multidisciplinary Design Firms: A Systematic Analysis-Based Methodology for Organizational Change Management. Springer.

Burke, J. C. (2002). Funding public colleges and universities for performance: Popularity, problems, and prospects. SUNY Press.

Cameron, E., & Green, M. (2019). Making sense of change management: A complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers.

Carnall, C. A. (2007). Managing change in organizations. Pearson Education.

Clampitt, P. G., DeKoch, R. J., & Cashman, T. (2000). A strategy for communicating about uncertainty. Academy of Management Perspectives, 14(4), 41-57.

Coram, R., & Burnes, B. (2001). Managing organisational change in the public sector‐Lessons from the privatisation of the Property Service Agency. International Journal of Public Sector Management.

Fronda, Y., & Moriceau, J. L. (2008). I am not your hero: change management and culture shocks in a public sector corporation. Journal of Organizational Change Management.

Guest, D. E., & Conway, N. (2002). Communicating the psychological contract: an employer perspective. Human resource management journal, 12(2), 22-38.

Hayes, K. J., & Fitzgerald, J. A. (2007). Business and research forms of debate: argumentation and dissent as barriers to the commercialisation of innovations in hybrid industry-research organisations. International Journal of Technology, Policy and Management, 7(3), 280-291.

Kirkpatrick, C., Moore Johnson, S., Donaldson, M., Marinell, W., Steele, J., & Szczesiul, S. (2008). Angling for access, bartering for change: How second-stage teachers experience differentiated roles in schools. Teachers College Record, 110(5), 1088-1114.

Kotler, G. (1992). Approaches to change. Training & Development, 46(3), 41-43.

Lines, B. C., & Reddy Vardireddy, P. K. (2017). Drivers of organizational change within the AEC industry: Linking change management practices with successful change adoption. Journal of management in engineering, 33(6), 04017031.

May, G., & Stahl, B. (2017). The significance of organizational change management for sustainable competitiveness in manufacturing: exploring the firm archetypes. International Journal of Production Research, 55(15), 4450-4465.

Mitra, A., Gaur, S. S., & Giacosa, E. (2019). Combining organizational change management and organizational ambidexterity using data transformation. Management decision.

O'Leary, C., Cavanagh, B., Unger, R. E., Kirkpatrick, C. J., O'Dea, S., O'Brien, F. J., & Cryan, S. A. (2016). The development of a tissue-engineered tracheobronchial epithelial model using a bilayered collagen-hyaluronate scaffold. Biomaterials, 85, 111-127.

Pate, J., Martin, G., & McGoldrick, J. (2003). The impact of psychological contract violation on employee attitudes and behaviour. Employee Relations.

Pedler, M. (1991). Big Jim & the Orgonauts. Management Education and Development, 22(2), 101-105.

Pettigrew, A., & Whipp, R. (1993). Understanding the environment. Managing change, 2(1), 65-76.

Quinn, J. B. (1993). Managing strategic change. Managing Change, 65-84.

Robinson, S. L., & Rousseau, D. M. (1994). Violating the psychological contract: Not the exception but the norm. Journal of organizational behavior, 15(3), 245-259.

Sroufe, R. (2017). Integration and organizational change towards sustainability. Journal of Cleaner Production, 162, 315-329.

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