DYNAMIC CHANGE PROCESS: HOW DO COGNITIVE READINESS DRIVERS INFORM CHANGE AGENTS ON EMPLOYEE BEHAVIOURAL CHANGE INTENTION.

Transcription

1 DYNAMIC CHANGE PROCESS: HOW DO COGNITIVE READINESS DRIVERS INFORM CHANGE AGENTS ON EMPLOYEE BEHAVIOURAL CHANGE INTENTION. by Karl, Kilian, Konrad WIENER Bachelor of Science (Auckland University, New Zealand) Diploma in Applied Psychology (Flinders University, South Australia) Masters in Clinical Psychology (University of Queensland, Queensland) A thesis submitted in fulfilment of the requirements of the Doctor of Philosophy in Management at the University of Canberra. March 2008

2 Key words Readiness for change, organisational change, readiness drivers, change efficacy, appropriateness of the change, understanding of the change, personal valence, principal support, need for change, behavioural change intention, supervisor, subordinate, dynamic change models. ii

3 Abstract It is well accepted by now that most change initiatives are unsuccessful even though more organisations are experiencing change as they fight to retain and improve their competitiveness in the market place. It is against this background of change failure that researchers have looked for new strategies to improve change outcomes. Theoretical models conceptualising the dynamic change process advise on better change strategies, but little empirical evidence has demonstrated that these models are effective in improving change implementation outcomes. Theoretical models were also developed to counter change resistance, but little emphasis has been placed on employee change readiness. Some empirical research on employee change readiness explores employees perception of organisational readiness, but no empirical research has explored employee readiness from a psychological perspective. That is, how to create change readiness in employees. This thesis has contributed to both the theoretical and empirical understanding of the change readiness model. Firstly, the theoretical readiness for change model Armenakis et al. s (1993, 2002) was extended by the inclusion of the understanding of the change driver. Secondly, this change readiness model was empirically tested on two distinct organisational changes: organisational restructure and IT change. The extended model is also examined for two change stages of the dynamic process to identify which readiness drivers should be prioritised by change agents. Two online questionnaires were administered eight months apart assessing the responses to three change stages (planning, implementation and post-implementation) of employees supervisors and subordinates - of a flat structured organisation in the human resource industry. At the two measurement points 189 and 141 employees returned completed surveys. Six employee readiness drivers were operationalised and regressed against behavioural change intention. The quantitative findings using regression models across two change types and longitudinally did not identify a specific change pattern. However, all six readiness drivers including the understanding of the change driver were influential on employees iv

4 behavioural change intention. Furthermore, statistical differences between supervisors and subordinates were identified in the organisational restructure change. The quantitative findings using a triangulation approach with qualitative date including data from two unstructured interviews and employee comments further validated the quantitative findings. The thematic analysis of the employee comments enhanced the findings and identified employee specific concerns including information dissemination of the changes and a level of uncertainty. The findings supported Armenakis et al. s (1993, 2002) theoretical contribution that change readiness drivers are an important part of the organisational change process explaining why employee do and do not change. The empirical application of readiness change driver evaluation during the dynamic change is supported as it permits change agents to directly monitor employees readiness perception of a specific change target. This valuable information finds practical utilisation for change agents in providing targeted guidance and support for employees thus facilitating a greater likelihood of a positive change outcome. Implications of these findings and future research opportunities are discussed. v

5 Certificate of completion of thesis for higher degree by research (Form A) PART 1 (to be completed by the chair of the supervisory panel (primary supervisor)) I hereby certify that (Name of chair of the supervisory panel) has submitted the thesis (Name of candidate) for the course leading to the degree of In my opinion, the thesis is / is not in a form acceptable for examination (Signature of chair of supervisory panel) (Date) PART 2 I have noted my supervisor s opinion that the thesis is not ready for examination (Signature of candidate) (Date) vi

6 Acknowledgment During this long journey in completing my PhD I have met many people from academia and business. I would like to thank them for the assistance, knowledge, and support they have provided to me. My journey for this PhD started with the Queensland University of Technology at the School of Management where I met my first supervisor Dr Nerina Jimmieson who supported me in the inception of this study. I would like to thank her for her guidance and support. After Dr Jimmieson took up her new post at another university, I decided to remain with QUT and found Professor Mark Griffin as my new supervisor. He guided my PhD progress and was instrumental in the development of the research design and survey development. I would like to thank him for his inspiration and practical support during this data collection period. Unfortunately, he also accepted a new posting at another university overseas. At this stage my motivation was low and my PhD at the cross roads. However, my persistence to complete this project led me to Canberra where I met A/Professor Deborah Blackman and Dr Alice Richardson whose optimistic attitude provided me with the motivation to complete this lengthy PhD project. Regular meetings with my new supervisors at the University of Canberra (UC) provided me with the assistance and encouragement to complete this PhD. I sincerely thank both Deborah and Alice for their patience and encouragement towards completion of this PhD. I feel very lucky to have met and worked with a fantastic group of people at QUT and at UC, and thank you for providing so many opportunities, sharing your wisdom and warmth, and helping me to grow as a professional. In my journey for this PhD I have also met people from management and commerce, and staff from the HR company that was prepared to give me access to their employees during a difficult time of organisational change due to horizontal mergers. In particular I thank the Change Project Manager for his support and his availability to discuss the practical nature of the change process. vii

7 Finally, I thank my partner Siew Geok CHUA for her support and patience, and for sharing the driving with me between Narrandera to Canberra. I also thank my current employer the Murrumbidgee General Practice Network for their work flexibility and support. viii

8 Table of Contents Key words...ii Certificate of authorship of thesis (Form B)...iii Abstract... iv Certificate of completion of thesis for higher degree by research... vi Acknowledgment...vii List of tables... xv 1 Introduction Organisation of chapters Literature Review Models of organisational change Dynamic change process Importance of employee readiness to facilitate a positive change outcome Factors potentially affecting readiness for change Readiness for change Change readiness drivers Individual change efficacy Personal valence Appropriateness of the change Principal support Need for change Understanding of the change Demographic factors as potential drivers ix

9 Time in organisation vs. time in position Supervisor and subordinate perception for change Supervisor vs. subordinates Importance of this dissertation Conclusion Dynamic change process Employee readiness Empirical study Methodology Introduction: Choices Description of the dynamic change process of the HR company Quantitative data collection and analysis Population Measurement tools Online survey versus paper survey Data collection Measurement Scale Scale Validity and reliability Validity Reliability Measures of readiness drivers x

10 Appropriateness of the changes Individual change efficacy Principal support Understanding of the change Personal valence Need for change Behavioural Intention for change Quantitative analysis Demographics Correlation and regression analysis Research questions Qualitative data collection and analysis Interview with project coordinator Open questions asking for employee comments Qualitative analysis Review of triangulation strategies Methodological triangulation approach of qualitative and quantitative findings Qualitative analysis of employee comments Subjects Ethical Considerations Quantitative Findings and Analyses Introduction Demographic results Planning stage for IT restructure Correlation results xi

11 4.3.2 Regression results Implementation stage for both organisational and IT restructure Correlation results for the organisational changes at implementation Regression results for the organisational restructure Correlation results for the IT changes Regression results for the IT changes at the implementation stage Post-implementation stage for organisational restructure Correlation results for the organisational changes at post-implementation stage Regression results for the organisational changes at post-implementation Cross sectional analysis for both organisational and IT restructures at the implementation stage Longitudinal analysis for both organisational restructure and IT change Longitudinal comparison for IT changes planning stage to implementation stage Longitudinal comparison for organisational changes implementation to post-implementation stage Qualitative Findings and Analyses Introduction Overview of both organisational restructure and IT change as described by the Change Project Officer Triangulation of quantitative and qualitative data Theme analysis of the qualitative data Organisational restructure IT change Summary Discussion Change stages and types xii

12 6.1.1 IT preparation Demographics Readiness drivers Implementation Organisational restructure IT change Post-implementation Demographics Readiness drivers Implementation comparison Longitudinal findings IT change for all employees IT change for supervisors IT change for subordinates Organisational restructure for all employees Organisational restructure for supervisors Organisational restructure for subordinates Summary Readiness drivers Appropriateness for change Change efficacy Need for change Principal support Personal valence Understanding of the change xiii

13 6.3 Qualitative data Unstructured interview Triangulation Approach Thematics Conclusion Limitations Implications for companies Opportunities for further research Appendix A: Introduction letter (T1) Appendix B: Online survey Appendix C: Letter of Apology Appendix D: T2 Introduction letter Appendix E: Thank you letter Appendix F: Employee comments Appendix G: Thematic Analysis of organisational restructure comments Appendix H: Thematic Analysis of IT change comments Endnote xiv

14 List of tables Table 1: Concepts in the organisational change literature Table 2: Theoretical implementation stages of the dynamic change process Table 3: Definition of the six readiness drivers Table 4: Change type and change stages for two sampling points T1 & T Table 5: Items for the 'appropriateness of the change' scale Table 6: Factor loading of the appropriateness of the change for the organisational restructure Table 7: Factor loading of the appropriateness of the change for the IT change Table 8: Items for the 'individual change efficacy' scale Table 9: Factor loading of the change efficacy for the organisational restructure Table 10: Factor loading of the change efficacy for the IT change Table 11: Items for the principal support scale Table 12: Factor loading of the principal support for the organisational restructure Table 13: Factor loading of the principal support for the IT change Table 14: Items for the 'understanding of the change' scale Table 15: Factor loading for the understanding of the change scale for the organisational restructure Table 16: Factor loading for the understanding of the change scale for IT change Table 17: Items for the' personal valence' scale Table 18: Factor loading for the personal valence scale for organisational restructure Table 19: Factor loading for the personal valence scale for IT change Table 20: Items for the 'need for change' scale Table 21: Factor loading for the need for change scale for the organisational restructure 65 xv

15 Table 22: Factor loading for the need for change scale for IT change Table 23: Items for the 'behavioural intention for change' scale Table 24: Factor loading for the behavioural change intention scale for organisational restructure Table 25: Factor loading for the behavioural change intention scale for IT change Table 26: Summary of reliability coefficients for all six readiness driver variables and the dependent variable for both organisational restructure and IT change Table 27: Surveyed change stages and change types Table 28: Gender of respondents from two sampling points T1 and T Table 29: Correlations for IT change at the planning stage Table 30: Correlations for IT change at the planning stage by supervisors Table 31: Correlations for IT change at the planning stage by subordinates Table 32: Regression results for IT change at the planning stage Table 33: Regression results for IT change for supervisors and subordinates at the planning stage Table 34: Correlations for the organisational restructure during implementation at T Table 35: Correlations for the organisational restructure at implementation by supervisors91 Table 36: Correlations for the organisational restructure at implementation by subordinates Table 37: Regression results for organisational restructure at implementation Table 38: Regression results for supervisors and subordinates at implementation of organisational restructure Table 39: Correlations at implementation of the IT change Table 40: Correlations at implementation of IT change by supervisor Table 41: Correlations at implementation of IT change by subordinates Table 42: Regression results at implementation of the IT change Table 43: Regression results at implementation of the IT change for supervisors and subordinates separately xvi

16 Table 44: Correlations at the post-implementation stage of the organisational restructure 102 Table 45: Correlations at post-implementation of the organisational restructure by supervisors Table 46: Correlations at post-implementation of the organisational restructure by subordinates Table 47a: Regression results at post-implementation of the organisational restructure Table 48b: Regression results (including indicator variables along with interaction terms) at post-implementation of the organisational restructure Table 49: Regression results at post-implementation of the organisational restructure for supervisors and subordinates Table 50: Regression results in the organisational restructure and IT change contexts at the implementation stage for supervisors Table 51: Regression results in the organisational restructure and IT change contexts at the implementation stage for subordinates Table 52: Regression results at the preparation and implementation stages of the IT change for supervisors Table 53: Regression results at the preparation and implementation stages of the IT change for subordinates Table 54: Regression results at the implementation and post-implementation stages of the organisational restructure for supervisors Table 55: Regression results at the implementation and post-implementation stages of the organisational restructure for subordinates Table 56: Comparison of low mean quantitative scores and the respective employee comments for either change type Table 57: Comparison of high mean quantitative scores and the respective employee comments for either change type Table 58: Number of employee comments received Table 59: Summary of the percentages of endorsed themes from supervisor and subordinate comments for organisational restructure at the implementation stage Table 60: Summary of the percentages of endorsed themes from supervisor and subordinate comments for IT change at the planning stage Table 61: Predictor variables at implementation of the organisational restructure and IT change by supervisors xvii

17 Table 62: Predictor variables at implementation of the organisational restructure and IT change by subordinates Table 63: Predictor variables at implementation of the organisational restructure and IT change by supervisors and subordinates Table 64: Predictor variables at the preparation and implementation stages for the IT change by supervisors Table 65: Predictor variables at the preparation and implementation stages for the IT change by subordinates Table 66: Predictor variables at the implementation and post-implementation stages for the organisational restructure by supervisors and subordinates Table 67: Predictor variables at the implementation and post-implementation stages for the organisational restructure by supervisors Table 68: Predictor variables at the implementation and post-implementation stages for the organisational restructure by subordinates Table 69: Summary table listing the research findings for research questions 1 to Table 70: Summary table listing the research findings for research questions 4 and Table 71: Summary table listing the research findings for research questions 6 and Table 72: Summary table listing the research findings for research question Table 73: Summary table listing the research findings for research question xviii