Organisational Change

1. Organisational Change Chapter 5 The Politics of Change

2. Objectives To: • explain the meaning of ‘organisational politics’; • distinguish between different sources of power and ways of using power; • define and discuss the link between power, politics and conflict; • identify different types of conflict and suggest possible actions for conflict resolution; • discuss the relationship between power, conflict and change and ways of managing these.

3. Introduction to Power & Politics • Ever organisation, however formal it is on the surface, has a ‘ShadowSide’. • This shadowside comprises political process, that people use to try to get what they want, regardless of, and sometimes in conflict with, existing rules and formal instructions. • Power has ‘dirty’ connotations. • However, politics is inevitable, especially in the context of organisational change. • Power and politics are drawn on/used to leverage organisational change.

4. Definition of Power Power entails: • The capacity of individuals to exert their will over others. • Ability to make things happen. • Ability to overcome resistance in order to achieve desired objectives or results. Source: Robbins, S. (1993) Organizational Behavior, Hemel Hempsted, Prentice Hall.

5. Definition of Politics Politics: • Practical use of power in action • Includes activities that are not required as part of one’s formal role • Includes activities that attempt to influence the distribution of advantages and disadvantages (e.g. through negotiation) Two kinds of politics • Legitimate - normal everyday politics • Illegitimate - outside the ‘rules-of-the-game’ Source: Robbins, S. (1993) Organizational Behavior, Hemel Hempsted, Prentice Hall.

6. The Reality of Politics Politics exists because • Individuals and groups have different values, goals and norms • Resources are limited • Most decisions require interpretation of facts e.g. good performance Source: Robbins, S. (1993) Organizational Behavior, Hemel Hempsted, Prentice Hall.

7. Organisations and Modelsof Political Rule • Autocracy - rule by emperor • Bureaucracy - rule of law • Technocracy - rule by expert • Co-determination - rule by combined power blocs • Representative democracy - elected government • Direct democracy - communal decision making

8. The Characteristics of Power (1) • Powerinfluences who gets what, when and how. (Morgan, 1986, p.158). • Poweris the potential or actual ability to influence others in a desired direction. An individual, group or other social unit has power if it controls information, knowledge, or resourcesdesired by another individual, group, or social unit. (Gordon, 1993, p.392).

9. The Characteristics of Power (2) Powerrefers to a capacity that A has to influence the behaviour of B, so that B does something he or she would not otherwise do. (Robbins, 1996, p.462). POWER IMPLIES. • potential. • dependency relationship. • that ‘B’ has some discretion over his/her behaviour.

10. Power and Influence • Physical • Resource • Position • Expert • Personal • Negative Force Exchange Rules and Procedures Magnetism Persuasion Sabotage According to Handy, C. (1993) Understanding Organizations. London, Penguin.

11. Sources of Power (1) Examples from Morgan, G. (1986) Images of Organization, London, Sage p. 159 • Formal authority • Control of scarce resources • Use of structure, rules, regulations • Control of decision processes

12. Sources of Power (2) Examples from Morgan, G. (1986) Images of Organization, London, Sage p. 159 • Control of knowledge & information • Control of boundaries • Control of technology • Interpersonal alliances, networks, ‘informal organisation’

13. Sources of Power (3) Examples from Morgan, G. (1986) Images of Organization, London, Sage p. 159 • Ability to cope with uncertainty • Symbolism and the management of meaning • Gender and the management of gender relations • The power that one already has

14. Position Power and Controlof Resources • Weber (1947) said there were three types of position power (formal authority). • tradition. • charisma. • rational-legal authority. • Resource power comes from the power to distribute valued rewards or to withhold or withdraw something which someone else values. => ‘Push’ (threat of loss) strategies. => ‘Pull’ (incentive) strategies. Copyright Barbara Senior, Organisational Change Lecturers’ Guide 1998.

15. Common Symbols of a Manager’s OrganisationalPower (Influence Upward and Outward) - 1 The extent to which a manager can: • Intercede favourably on behalf of someone in trouble with the organisation • Get a desirable placement for a talented subordinate • Get approval for expenditures beyond the budget

16. Common Symbols of a Manager’s OrganisationalPower (Influence Upward and Outward) - 2 The extent to which a manager can: • Get above-average salary increases for subordinates • Get items on the agenda at policy meetings • Get fast access to top decision-makers • Get early information about decisions and policy shifts

17. Invisible Power • Control of information (horizontal and vertical) • Right of access (right to enter formal and informal networks) • Right to organise (structure, design of jobs, physical space & territory)

18. ‘Non-decision-making’ Power • Influencing issues not directly concerned with the decision itself which which set the context for decision making. Covert power e.g. power to set the agenda. • inclusion/exclusion of items. • order of items on the agenda. • inclusion/exclusion of people.

19. Expert Power • Expert power is in the eyes of the beholder. • Someone who has expertise but is not recognised buy others has no expert power. • It’s also about being perceived to have relatively more expertise than others.

20. Symbolic Power • A symbol is a representation of deeper, implicit meaning. Symbols include routines, rituals, signs. • Symbolic power = power to manipulate and use symbols to create. • organisational environments. • others’ beliefs and understandings. to suit own purposes.

21. Symbolic Power Examples • Place at the meeting table - who sits next to the President. • ‘Theatrical’ performance, impression management. • Expensive office furnishings. • Expense accounts. • Personal style, demeanour, elegance, looks. • Use of ‘in’ jargon, language.

22. Powerlessness of Demographic Groups Groups who are often powerless because of how organisational factors treat them: • Women • Ethnic minority groups • Disabled people • Unemployed people

23. Manifestations of Demographic Powerlessness • Exclusion from posts with strategic and financial decision responsibilities • Junior positions • Glass ceiling

24. Sources of Demographic Powerlessness • Unfair discrimination • Dominant culture (e.g. long hours, aggressive styles) • Family responsibilities • Passivity, deference, lack of assertiveness

25. Women and Powerlessness In routine, low profit jobs Tendency to “hug” power to themselves, be authoritarian, not delegate Few favours to trade In staff rather than line jobs Can’t develop own team through pushing “bright” subordinates Over protected because they are women Supervising “stuck” subordinates Exclusion from male cliques, drinking and eating groups “Safe” job Senior managers witholding support, allowing women to be bypassed Not enough rope to prove themselves Based on discussion in Kanter, R.M. (1979) ‘Power failure in management circuits’ Harvard Business Review, July-August, pp. 65-75.

26. Typical Positions of Powerless • First-line supervisors • Staff professionals • limited resources • tend to become ‘turf-minded’ • protect their patch

27. Front-line Supervisors & Powerlessness Emphasis on what little authority they have Enforcement of rules, authoritarian control Little opportunity of promotion to higher position Seen by subordinates as having little power with higher management Forced to administer programmes which they have little hand in shaping Feelings of POWERLESSNESS Resistance of subordinates Lack of resources to influence/reward others

28. Sources of Power in a Job These include • Communication resources • Physically central location • Networking opportunities • Contact with top management • Subordinates’ prospects • Authority in decision making • Meaningful tasks • Participation in key forums & meetings

29. 2 Views About Power & Conflict (1) 1. Conflict as dysfunctional to organisational life and performance => unitary view of organisational life 2. Conflict as familiar and endemic to organisational life and performance => pluralist view of organisational life • The unitary view tends to fail

30. 2 Views about Power & Conflict (2)

31. An Exponent of the Unitary View of Conflict - Regina IpLau Suk-yee

32. Another Unitary View • The official Chinese Government position on Hong Kong actually reflects the Unitary View, as expressed by Beijing's top representative to the territory, Gao Siren: “Hong Kong is a city of business, not of politics”.

33. A 3rd View about Power & Conflict • Some critics hold to a third, coercive view of conflict, which is that conflicts exist because of inherently opposed interests (e.g. capital versus labour) and that conflict will be eradicated only when opposition is smashed.

34. What Is Organisational Conflict? 1. Opposition 2. Perceived incongruency or obstruction 3. Interaction giving rise to disagreement or tension

35. Layers in Organisational Conflict Misunderstandings Interpersonal differences (personality clashes) Differing interests (e.g. resource battles) - these are typically hidden Differing beliefs (e.g. about how to increase profits) Differing values (e.g. about what is right or wrong)

36. Sources of Conflict Between Groups These include • Interdependence • Different ways of organising internally • Rules that are wither too loose or too tight • Scarce resources • Cultural differences • Change in the outside environment

37. Collaborating Competing Assertive Compromising Assertiveness Unassertive Avoiding Accommodating Unco-operative Co-operative Co-operativeness Conflict Handling Styles

38. 1. Collaborating • Combining assertiveness and co-operativeness • Trying to resolve conflict through problem-solving • It works when there is enough trust and openness to share information so that the parties can find a mutually beneficial solution

39. 2. Avoiding • Smoothing over or avoiding conflict • Appropriate to use when: (a.) the problem is trivial (b) used as a temporary tactic to cool down heated disputes • In the short-term it is OK for handling managing conflict, but it creates frustration in long-term

40. 3. Competing • Trying to win the conflict at the other’s expense (a strong win/lose orientation) • Appropriate to use when: (a) you are correct (b) a quick solution is required (c) other party would take advantage of co-operation

41. 4. Accommodating • Giving in to the other side’s wishes, with little attention to one’s own interests • Appropriate to use when: (a) you are wrong (b) other party has substantially more power (c) the issue is less important to you than to the other party • Problem: it may give the other side unrealistically high expectations • if so, it increases future conflict

42. 5. Compromising • Reaching a middle ground • being willing to give up something in return for something else • Appropriate to use when: (a) the parties have equal power (b) there is time pressure to settle differences • Usually this leads to an unsatisfactory resolution for both parties

43. Two Faces of Power • Positive power - oriented to initiation, influencing, leading, empowering others. • Leads to constructive controversy. • Negative power - oriented to dominance, control of others. • Leads to destructive forms of conflict.

44. Problems Posed by Change Even small scale change can pose problems associated with the following issues: 1. Resistance to change 2. Organisational Control 3. Power struggle

45. Politics, Power, Conflict and Change Confusion as to means of organisational control Change situation Challenge to values and/or viewpoints Political action Conflict Power balance upset Feeling of uncertainty and loss of autonomy Resistance

46. Dealing With Conflict • Encourage openness • Model appropriate responses • Provide summaries and restatements of the position • Bring in people who are not directly involved • Encourage people to take time to think and reassess • Use the strengths of the group • Focus on shared goals • Use directions and interests to develop areas of new gain • Try to build objectivity into the process • Adopt an enquiring approach to managing Based on Furze, D. & Gale, C. (1996) Interpreting Management, Exploring Change and Complexity, Thompson International Press, pp. 312-317.

47. 4 Action Steps for Shaping Change 1. Ensure or develop the support of key power groups 2. Use leader behaviour to generate energy in support of the change (see previous slide) 3. Use symbols and language to create energy 4. Build in stability (anchors) Source: Nadler, D.A. (1988) ‘Concepts for the management of organizational change’, in Tushman, M.L and Moore, W.L. (eds) Readings in the Management of Innovation (7th edn), New York, Ballinger Publishing Company, pp. 718-32.

48. Assessing power

49. Dealing With Potential Resistance 1. Carry out a ‘power audit’ (see previous slide) of all stakeholder groups or individuals. 2. For each stakeholder, compare their power to bock change with their likely motivation to block the change. 3. Treat each stakeholder group according to the extent of their power and motivation to block change (see the following slide). 4. Be sensitive to cultural issues.

50. Power and Motivation to Block Change