Effects of changing stakeholder roles on the change
towards a high level of virtuality in absenteeism processes
at Albert Heijn
Master thesis, MSc. Change Management & MSc. Human Resource Management University of Groningen, Faculty of Economics and Business
February 15th, 2013
PIM DIJKGRAAF
Student number: s1703412
Korreweg 115a, 9714 AG Groningen, The Netherlands Phone: +31 6 20 93 08 51
Email: p.dijkgraaf@student.rug.nl Email: pim.dijkgraaf@ahold.com
Supervisor University of Groningen
Dr. J. Rupert
Supervisors Albert Heijn
Ms. B. van der Zanden-Sandtke Ms. H. Vink
Effects of changing stakeholder roles on the change
towards a high level of virtuality in absenteeism processes
at Albert Heijn
ABSTRACT
This retrospective-based study investigated an organizational change, in which stakeholders’ roles changed from conventional communication towards virtual-based communication. The relation between clarity about stakeholders’ new roles and change effectiveness was researched. Furthermore, it was hypothesized that virtuality of knowledge transfer, content of knowledge transfer, competence-based trust, commitment and interdependence were positively mediating the relation between clarity about stakeholders’ roles and change effectiveness. These hypotheses were tested in a sample of 128 executives of Albert Heijn’s stores, supply chain and headquarters. Results found a significant relationship between clarity about stakeholders’ roles and change effectiveness. Only a combined mediating effect for virtuality of knowledge transfer, content of knowledge transfer and competence-based trust was found. This shows that these mediators strengthen each other’s mediating effect, which suggests that virtuality of knowledge transfer, content of knowledge transfer and competence-based trust were important variables for the change effectiveness at the organizational change at Albert Heijn.
Key words: clarity about stakeholders’ roles, change effectiveness, virtuality of knowledge
INTRODUCTION
Albert Heijn is a profit-based organization, founded in 1887 in Oostzaan. As subsidiary of Ahold Europe, Albert Heijn is the largest chain of supermarkets in the Netherlands. This research will focus on how absenteeism processes are monitored and controlled in the Albert Heijn stores (excl. franchises), distribution offices (e.g. supply chain) and headquarters, determining its scope and closing out other subsidiaries of Albert Heijn.
Absenteeism processes are executed following the steps of the Poortwachter law, which has been in force since 2002. This law describes several steps organizations has to fulfill in a timeframe of two years after the first day of absence, in order to reintegrate absent employees within their company or, if not possible, another company. If these efforts proved unsuccessful, the UWV (government agency that mediates between organizations and employees) will determine whether the organization of the absent employee have used enough effort to reintegrate their absent employee. If proven that enough effort was used, the UWV will take over payment from the organization to the employee. However if not, the UWV can decide that the organization has to pay salary to the employee another year, implying many costs, which could have been prohibited. Besides that, organizations can save much money by accomplishing reintegration of absent employees as soon as possible. Therefore, monitoring and controlling absenteeism processes is valuable for organizations.
necessary information. However, contact with such centers implies mostly virtual-based communication, while previously most contact occurred face-to-face. One of the centers of excellence is HR services, which is the department where the recent organizational change in the monitoring of absence support took place. Due to the change, roles of stakeholders were changed. This resulted in a change of tasks towards mostly virtual-based communication, intended to increase effectiveness of teams dealing with absenteeism. This change was the management’s motive for this research, since it is unclear whether the change was accomplished as intended and if not, what needed to be adjusted.
Situation prior to change
integral management. HRBP’s monitored progress of each absenteeism process, alerting executives on flaws or missing information, reprimanding executives if slackness occurred and subsequently providing the specialized knowledge that executives needed. Although the HRBP’s knew much about the law and legislations as derived from Poortwachter, they often needed help from the team since they did not knew all necessary information. The RB-team started in 2007 and assisted the HRBP’s with highly specialized knowledge about absenteeism processes and the Poortwachter law. Similar to the HRBP’s, all members had their own focus area in the Netherlands, implying contact between the HRBP and RB-team member from each corresponding area. RB-team members did not have contact with executives, their core business was assisting HRBP’s with issues that were too specialized and the HRBP’s could not solve themselves.
responsible for the performance of executives of their focus area. Therefore, although they do not actively participate in every process, they are affected by the outcomes of these absenteeism processes. The described role of the OM is only present at the stores and distribution offices, since there are no OM’s at the headquarters.
Several of these stakeholders met, if necessary, on a regular base in an SMT, which is the abbreviation of ‘Sociaal Medisch Teamoverleg’ (Social Medical Team meeting). This was a meeting once in six to eight weeks between the HRBP, OM, executive and company doctor. These involved stakeholders could be described as a team, which goal was to execute absenteeism tasks as successfully as possible. They met face-to-face to discuss progress of individual cases and gain input from every stakeholder at the same time. This was created to ensure that all available options and effort were used in a case, hoping it would result in an optimal absenteeism process. The organizational responsibility chart from the old situation is represented in Figure 1.
Fig. 1 Organizational responsibility chart in absenteeism processes prior to the change.
Situation after change
The recent change in the beginning of 2011 resulted in a transfer of tasks from the HRBP’s to the RB-team. As mentioned, the ‘new way of working’ at Albert Heijn entailed centralization of specialized knowledge, in order to create expertise centers where executives could directly derive the necessary knowledge. The change made the employees of the RB-team case manager for a specific area within the Albert Heijn organization in the Netherlands, e.g. giving them direct responsibility over the absenteeism process. Case management is monitoring and directing the absenteeism process as optimal as possible, within the framework of law, rules and organizational policy. In detail, this implies that predetermined persons monitor and control several absence cases in order to provide most optimal support. For Albert Heijn, the HRBP’s were no longer involved in absenteeism processes, their role was taken over by the RB-team and they were thus Albert Heijn’s case managers. This resulted in a shift of communication for executives from mostly conventional-based (face-to-face with HRBP) to mostly virtual-based (phone or email contact with RB-team members). This change had several implications, which resulted in the management objectives for this research. The primary management objective is to find out whether this change towards higher levels of virtuality was performed as intended and if it was successful. Furthermore, future recommendations are asked based upon the change process until now. Therefore, to present a clear image of the new situation, it is interesting to extensively describe what has changed.
Management objectives
more and extensive knowledge to the executives. Whereas executives used to speak their HRBP face-to-face (who in turn often contacted the RB-team), they now have direct, but virtual-based contact with their RB-team member. This was intended to improve effectiveness and accuracy of information needed in the absenteeism process. However, executives and RB-team members had never met before the change. Therefore, contact needed to be established and trust between stakeholders’ needed to be built after the change.
Second, the role of the HRBP is more on the background towards strategic issues. The HRBP’s fulfilled many other activities besides monitoring and controlling absenteeism process, although their main tasks where to support executives in all HR related subjects. The change intended to increase effectiveness of the HRBP’s, since they should become more able to focus on their strategic core business; determine best classification of the workforce and training and coaching executives. Therefore, their role of involvement in operational tasks in absenteeism processes disappeared. However, they kept responsibilities over results and performance of executives. Furthermore, HRBP’s stayed responsible for absenteeism on short term until eight weeks.
Third, executives stay responsible for absence and reintegration within their area of responsibility. The manager can fulfill regular, basic tasks autonomously, however the RB-team starts monitoring the process earlier. In the old situation, the RB-RB-team came to the fore from the 26th week and thereafter. The change implied that the RB-team starts monitoring all absenteeism processes proactively after eight weeks instead of 26 weeks. This was intended to discover flaws earlier in the process. Executives need to handle absenteeism in the first eight weeks themselves; however they can also contact the RB-team in these first eight weeks if necessary.
executive and met, if necessary, every six to eight weeks. The composition of the team that executed absenteeism tasks changed, since the team now consists out of the RB-team member, company doctor and executive. Frequency of these meetings (SMT’s) has not changed and appointments are only made if necessary. Therefore, there is some level of face-to-face contact between the team members in the new situation, although it is mostly virtual-based.
Summarizing, the change increased the responsibility from the RB-team, making them an important stakeholder in the absenteeism process. They now directly communicate with executives and participate in SMT’s. Therefore, virtual communication between the stakeholders increased, although some level of face-to-face contact has remained. The role of HRBP’s is officially declined towards no responsibility in the absenteeism process, since these tasks were removed from their work package. The change in the absenteeism process at Albert Heijn resulted in different roles for the stakeholders involved, implying new communication lines and contacts.
Furthermore, Albert Heijn recently introduced the online system ‘Verzuimsignaal’ to register absence and reintegration activities in their stores. This system should enhance the absenteeism process, since it automatically shows tasks that have to be fulfilled and all relevant stakeholders (executive, company doctor and member of the RB-team) work in the same document.
In this research, the executives are considered to be clients, so executives and clients are used interchangeably. The new organizational responsibility chart is presented in Figure 2.
Fig. 2 Organizational responsibility chart after the change
Note: The responsibility over the absenteeism process was removed from the tasks of the HRBP’s. Therefore, their role changed from being involved in absenteeism processes towards only being affected, since they are still responsible for functioning of executives (although not case-specific anymore).
Case information
The previous description about the change in absence support at Albert Heijn explained the changed stakeholder roles and new, mostly virtual communication lines. Therefore, management was curious about the influence of these changes in every absenteeism process. Since the general understanding of absenteeism processes is not widespread, it is wise to compare the characteristics of an absenteeism process with existing literature. Research revealed that most similarities occur with the description of a project.
process is temporary and unique, since its duration has a maximum of two years and every absent employee needs different support or treatment. The RB-team starts monitoring the absenteeism process after eight weeks, which could be considered as starting date. Furthermore, the objectives are determined and well-known at front; rapid reintegration of the employee between week eight and week 104 (end of two years) if possible, otherwise perfect fulfillment of regulations stated in law and company policy leading to termination of the contract after two years without costs. Human and non-human resources are used to complete the service across two functional lines in the Albert Heijn organization, namely those of executives and the RB-team. Employees use their own knowledge and expertise, but also non-human resources like money investments in diagnosing absent employees and regulations derived from law. Each absenteeism process can therefore be considered to be a different project.
Within projects, many stakeholders have to execute a prescribed role. However, the roles of the stakeholders involved in the absenteeism processes changed. Since the performance of these stakeholders is dependent on the degree to which they can fulfill their roles, it is necessary to determine the effects of the change on how all stakeholders execute their role in the new situation. A stakeholder perspective seems to suit this need, since it helps to identify stakeholders, their roles and boundaries of those roles (Midgley, 2003; Vos, 2003). This should clarify whether the change is executed as prescribed, since the changing stakeholder roles were the basis of the organizational change.
store, distribution office or headquarters, the RB-team member has specialized knowledge about law, regulations and the absenteeism process, while the company doctor has to be included by law, in order to diagnose and support the employee in the medical field. Considering the fact that they work in different offices, they only meet face-to-face once in eight weeks at most. This makes them reliable on the usage of electronic media, such as telephones and email. Therefore, most determinants of these stakeholders cooperating are equal to those of a virtual team, since these teams are characterized as ‘’groups of geographically and/or organizationally dispersed coworkers that are assembled using a combination of telecommunications and information technologies to accomplish an organizational task’’ (Townsend, DeMarie & Hendrickson, 1998: 18). In his research, Berry (2011) summarizes the characteristics of virtual teams found in previous research. He found that virtual teams 1) are aware of their shared membership 2) function interdependent, with a shared purpose 3) hold all team members accountable for the outcome 4) want all stakeholders involved to manage their relationships across organizational boundaries 5) consist out of members that are widespread over the country or world and 6) are reliable on communication via electronic devices instead of face-to-face contact (Alderfer, 1987; Hackman, 1987; Johnson et al, 2003; Maznevski & Chudoba, 2000). Without officially defining the stakeholders involved a virtual team, it obviously presents remarkable comparisons with the definitions mentioned. Therefore, the stakeholders involved are considered to execute absenteeism tasks in a team with a high level of virtuality.
(Krishnaveni & Sujatha, 2012). Closely related to the concept of knowledge management are Transactive Memory Systems (TMS), which is a division of work tasks in order to learn, remember and communicate important knowledge within a team (Wegner, 1987). Both theories seem to be based on similar grounds, since it is about organizing knowledge in such a way that it is available, managed and communicated between team members. TMS entails three substructures, namely 1) specialization of knowledge 2) trust in others’ knowledge and 3) the ability to coordinate and distribute knowledge (Liang et al., 1995; Wegner, 1987). These characteristics match with the issues that Albert Heijn face in their recent organizational change. The findings about virtual teams and TMS are used in this research about the change towards a high level of virtuality in absenteeism processes at Albert Heijn. The hypotheses after each should answers the main question of this study, namely:
‘To what extent did changing stakeholder roles towards a high level of virtuality affect
interaction processes between the stakeholders involved of absenteeism processes at Albert Heijn?’
THEORY Change effectiveness
stakeholders in the absenteeism process fulfill their roles as supposed to, which should result in high executive e.g. client satisfaction.
Determinants
This research investigates the effects of clarity about stakeholders’ new roles based upon the above-mentioned characteristics of virtual teams and TMS on the change effectiveness of absenteeism processes at Albert Heijn. In addition, it is described why virtuality of knowledge transfer, content of knowledge transfer, competence-based trust, commitment towards change and interdependence mediate the relationship between clarity about stakeholders’ roles and change effectiveness. These findings are presented in the conceptual model in Figure 3 and explained in-depth further below.
Fig. 3 Conceptual model
Clarity about stakeholders’ roles
With this in mind, it is interesting to turn to stakeholder theory. One of the most cited starting points for stakeholder research is its definition based on Freeman (1984: 46): ‘’a stakeholder in an organization is any group or individual who can affect or is affected by the achievement of the organization’s objectives’’. Considering the new roles after the change at Albert Heijn, it is helpful to identify stakeholders and to clarify their roles. Identifying stakeholders is based on boundary critique, which means setting boundaries for who is and is not involved, implying the division of roles and responsibilities over issues and tasks (Midgley, 2003; Vos, 2003). One of the foundations underneath the earlier described definitions of stakeholders came from the existence of critical systems heuristics (CSH) of Ulrich (1983), in which he separated stakeholders involved and stakeholders affected. The stakeholders involved could be defined as 1) client; based upon whose needs are fulfilled, 2) decision maker; based upon who has the power to make decisions and 3) the designer; based upon who provides the expertise to complete the task (Churchman, 1971). Based upon this categorization can be concluded that the job content at Albert Heijn describes the executive as the client and decision maker, whereas the RB-team member and company doctor should be designer. However, these findings are mostly applied in society, while other research tried to apply his findings towards profit based organizations (Achterkamp & Vos, 2007).
involvement of stakeholders within projects. One of their findings was that boundary critique proved to be a good method to ensure that stakeholders fulfill their role as described, which was found to lead to high stakeholder satisfaction (Weiss & Cropanzano, 1996). Besides that, the method helped to clarify the division of roles within a project to increase its effectiveness. However, the behavior of the stakeholders in the new situation determines whether their role is executed as desired.
the effectiveness of the changed stakeholder roles is determined by the clarity about stakeholders’ roles and whether these stakeholders fulfill their roles as supposed to.
Hypotheses 1: High clarity about stakeholders’ roles will lead to higher change effectiveness.
MEDIATORS Knowledge transfer
Most characteristics of communication in the absenteeism process at Albert Heijn in the new situation were similar to those of communication in virtual teams. Virtual teams are stakeholders who work separately on interdependent tasks, where most communication takes place via electronic media. Besides that, all members of the virtual team share responsibility for team results (Horwitz et al., 2006). Cohen & Gibson (2003) claimed that the single most important determinant of team virtuality is the amount of communication via electronic devices instead of face-to-face contact. Besides that, although most work in virtual teams is executed via electronic devices, there will always be some level of face-to-face contact (Maznevski & Chudoba, 2000). Therefore, without officially defining the stakeholders in the absenteeism process at Albert Heijn a virtual team, it is legitimate to examine the characteristics of virtual teams and compare them with the stakeholders within the absenteeism process. Team virtuality can be defined as the level of virtual communication between team members.
important for Albert Heijn, since this reduces the complexity that might exist between the different organizational departments of a large organization (Mehralizadeh, Shahi & Sharify, 2008). Therefore, they changed their stakeholders’ roles to create direct communication lines, intended to reduce complexity occurred by its large operations. Coping with this complexity is possible by thoroughly elaborating on the definition of communication, which can be described by several aspects; its form, content and function. All these dimensions of communication form the communication climate that exists within an organization, which is a subjective based perspective of an organization’s internal environment, identifiable via reports of employees’ messages and message-related events (Bartels et al., 2003; Dennis, 1974; Postmes et al, 2001; Smidts et al., 2001). However, communication is used to transfer information between people, implying a higher applicability of the term knowledge transfer over communication (Hinsz et al., 1997). Therefore, these messages and message-related events are considered to be critical for knowledge transfer in this research. It is the form, content and function of communication that are used to describe knowledge transfer in this research.
can be found in manuals and other written procedures, while tacit knowledge is not easily codified or transferred (Janson, 2007). With these constructs in mind, it is interesting to consider how knowledge is used and transferred within organizations.
In the introduction, several characteristics of knowledge management and TMS were described. It was already addressed that Grant (1996) claimed that of knowledge management, application of knowledge is the primary goal of organizations. Another part of knowledge management relates to the transfer of knowledge, which occurs when knowledge at a stakeholder is insufficient (Hollingshead, 1998). Therefore, this research will focus further on one aspect of knowledge management, namely knowledge transfer. Since communication is an essential part of knowledge transfer, it is helpful to elucidate on what has changed in communication first. As mentioned in the introduction, form of communication in absenteeism processes at Albert Heijn changed towards a high level of virtuality, while its content changed towards a high level of expertise.
Form and function of communication
methods, are employees able to derive explicit knowledge via formal methods like manuals (Janson, 2007). This is visualized in Figure 4. Hansen et al. (1999) made a similar distinction, since they divided transfer of
knowledge in codification and personalization. Codification entails a structured storing of knowledge in information systems, from which employees can derive the necessary information. Therefore, individuals
can simply apply their new knowledge after they found the necessary information in the information systems. On the other hand, personalization is transfer of knowledge between people. Information systems are used to support people in communicating the knowledge, while it is not meant to store the information.
Table 1 Modes of knowledge transfer (Nonaka et al., 2000) Socialization Tacit to tacit Discussions/team meetings Externalization Tacit to explicit
Answering questions, explaining theories/models
Internalization
Explicit to tacit
Learning from a report
Combination
Explicit to explicit
The shift in tasks between the HRBP’s and RB-team entailed a large shift in communication form and function. Whereas executives communicated about absenteeism processes with their HRBP face-to-face prior to the change, they are now expected to contact their RB-team member at the headquarters via email or telephone when they need support, which implies high levels of virtuality. The only possibility to speak each other face-to-face is at the SMT once in six to eight weeks; however this will only occur if the executives have an absent employee. Otherwise, executives and RB-team members do not have contact or do not speak with each other. This is closely related to the function of knowledge transfer, since this also changed rigorously. HRBP’s used to support executives in all HR parts, including absenteeism processes. Executives and HRBP’s usually discussed many HR related topics, from which absenteeism processes was one. In the new situation, executives contact their RB-team member solely for support in absenteeism processes.
2005). In most official virtual teams, members have no other choice than communicating via electronic media. However, individual members might prefer to communicate with their peers face-to-face (Cohen & Gibson, 2003).
With respect to the negative findings in previous research, new findings consider the implications of communication in virtual settings to be encouraging. Not only are new media and communication technologies more helpful in processing information, virtualization is also a social process. The new technologies have re-conceptualized traditional norms for organizational roles, where face-to-face communication used to be the standard (Ratcheva, 2008). The sentiment that face-to-face communication improves knowledge transfer more than communication in virtual settings seems to be outdated, since many key factors that lead to success in face-to-face and virtual settings are equal. Therefore, critical for success of communication in virtual settings is timely delivery of work deliverables and necessary feedback on fulfillment of these deliverables (Bergiel et al., 2008). It is from this point of view where Lipnack & Stamps (2000) concluded that organizations should focus on working in virtual settings, while retaining some of the advantages from earlier communication forms. This could be executed via the earlier described level of virtuality, which is represented on a continuum between merely face-to-face contacts to solely contact via electronic or technological devices (Bell & Kozlowski, 2002). This level of virtuality combines the best of both worlds, since virtual team members are able to communicate and transfer knowledge irrespective of space and time, while some level of face-to-face contact remains (Berry, 2011). Then, the advantages of communication in virtual settings outweigh the disadvantages that might occur (Bergiel et al., 2008).
Content of communication
Content of communication was described extensively in the introduction, since executives experience contact about different contents. Whereas the HRBP functioned to support executives in all HR parts, are RB-team members only available for support within absenteeism processes. Besides that, it was expected that content of knowledge transfer would improve towards highly specialized expertise. Therefore, content of the transfer of knowledge has changed towards a limited scope of specialized knowledge.
As Ratcheva (2008) found, creation of knowledge occurs when experts are connected. However, the primary goal of organizations is not knowledge creation, but proper application of knowledge (Grant, 1996). Individual employees are not able to apply all information necessary themselves in order to execute all organizational tasks, since this covers too many aspects. Simon (1991) refers this phenomenon to bounded rationality, which is recognition of the limitations of the human brain in knowledge acquiring, storing and processing. Therefore, in order to effectively manage the knowledge within an organization, employees should specialize themselves in certain areas to create experts. After all, ‘’experts are (almost) invariably specialists, while jacks-of-all-trades are masters-of-none’’ (Grant, 1996: 112). A famous distinction in defining knowledge is the classification between data, information and knowledge. Data is considered to be simple facts or numbers, when data is processed it turns into information, while information, which has been verified, is defined as knowledge (Alavi & Leidner, 2001).
period of time, in which their knowledge is developed by training, education and experience. The mutual dependency between tacit and explicit knowledge implies increased difficulty in completely capturing all knowledge. This results in a need for individuals with an above average level of knowledge, since only they
are able to transfer the necessary knowledge successfully. The communication between stakeholders remains knowledge transfer, since the expertise of experts consists out of different parts of highly specialized knowledge (Alavi & Leidner, 2001).
Therefore, content of knowledge transfer transformed towards more specialized content. Danos et al (1989) found that division of roles and responsibilities is required when information is becoming highly specialized. More often, organizations are aware that completely retaining knowledge or producing in-house is not efficient (Brusoni et al., 2001). Following this trend, Albert Heijn also realized that specialized experts in their centers of excellence could improve effectiveness.
communication plays a vital role in implementing effective organizational change (DiFonzo & Bordia, 1998). During planned change, the importance of communication has been widely empirically researched and acknowledged by practitioners (Lewis, 1999), since inadequate communication can lead to resistance to change and magnified negative images or stories about the change (DiFonzo et al., 1994).
Knowledge transfer should ultimately lead to an effective organizational change, in which client satisfaction is high. Previous research found evidence for the relationship between open communication and job satisfaction (De Nobile & McCormick, 2008; Goris et al., 1997; Klaus & Bass, 1982). As found earlier, communication enables the organization to leverage expertise through organizational departments (McDonough et al., 1999), implying successful knowledge transfer. Therefore, communication turned out to be a strong predictor for job satisfaction (Trombetta & Rogers, 1988), also in virtual settings.
Hypothesis 3: The relationship between clarity about stakeholders’ roles and change effectiveness is positively mediated by a high level of expertise in knowledge transfer between the stakeholders involved in the absenteeism process.
Trust
trust prevents them for loss of reputation. It entails a condition in which knowledge seekers dare to be honest about the shortcomings of their knowledge, in order to learn. Competence-based trust implies confidence of the knowledge seeker in the source’s competence to deliver the information needed. If the knowledge source is trusted for his benevolence and competence, it will increase the possibility for a successful communicative relationship (Levin & Cross, 2004). When describing both types of trust, it is evident that based trust clearly represents the investigated case at Albert Heijn. Besides that, competence-based trust equals the credibility theory within TMS as described in the introduction. Credibility is defined as ‘members’ beliefs about the reliability of other members’ knowledge’ (Lewis, 2003:589). Benevolence-based trust is assumed to be equal prior and after the change, since it depends on the type of executive. Therefore, this research will mainly focus on the aspects that represent competence-based trust.
Previous research found four aspects that make competence-based trust creation more problematic if team members are distributed, namely when members 1) do not have shared history, 2) are widespread, 3) are initially unknown to each other and 4) mostly interact via electronic media, like telephone or email (Jarvenpaa & Leidner, 1999). However, competence-based trust is often considered to be the glue that holds stakeholders that work separately on tasks together (O’hara-Devereaux & Johansen, 1994). Comparing these factors with the case information, all four seem to be in covenant with each other.
discovered different levels of importance of trust in a moderating role; low trust had a negative influence on communication and performance, whereas high trust had a positive influence on both variables. Low trustworthiness will result in unproductive interaction via communication, while a high level of trust strengthens the communication between members and thus improving performance. Performance is often measured on team level, whilst it is equally or even more important to measure performance on the individual level. In such case, it represents the behavior of individual stakeholders, entailing close resemblance with the measures of change effectiveness as used in this research (Sarker et al., 2011). Therefore, investigating how trust affects the stakeholders involved in virtual settings is of uttermost importance, since competence-based trust is assumed to mediate the relationship between clarity about stakeholder roles and change effectiveness.
In managing stakeholders and their various roles it is meaningful to address the concept of trust, since previous research found connections between competence-based trust and stakeholder satisfaction (Ring, 1996). Besides that, not only does trust increase client satisfaction, it also increases cooperation between stakeholders in an organization, resulting in higher performance, which was found earlier to represent individual stakeholder behavior (Sarker et al., 2011; Williams, 2001). Recapturing on the definitions of Levin and Cross (2004) and Lewis (2003), it was found that stakeholders with a good reputation (high competence-based trust) engage more in knowledge transfer with colleagues with similar reputations than with stakeholders who have low reputations (low competence-based trust). Therefore, competence-based trust is measured and expected to lead to high client satisfaction.
Hypothesis 4: The relationship between clarity about stakeholders’ roles and change effectiveness is positively mediated by a high level of competence-based trust between the stakeholders involved in the absenteeism process.
Commitment towards change
(Kotter, 1995). However, these authors focused on organizational level, whereas the intention of this research is to determine the critical role of individuals in projects. More often, the view that change will only succeed when individuals change their daily working habits appropriately is becoming important (Jones, Jommieson & Griffiths, 2005; Meyer et al., 2007). This has its relevance from the fact that stakeholders involved form the base of every organizational change (Tetenbaum, 1998). However, managers from Albert Heijn’s headquarters determined the change, whereas the executives of this research simply had to fulfill their tasks in absenteeism processes differently.
Communicating about the changed roles prior to, during and after the change is of great importance for stakeholders’ attitude towards change, since it increases individuals’ understanding about the change effort. This enables stakeholders to imagine the intended end state of the change and which actions are necessary to ensure that the change effectiveness is accomplished (Shum et al., 2008; Stanley et al., 2005). Furthermore, attitude toward changes in IT technology is found to change as users gain positive experiences (Bhattacherjee & Premkumar, 2004).
Changes in job content could result in positive and negative outcomes, for example higher fulfillment of needs and increased job satisfaction, but also higher workload and decreased satisfaction (Campion & McClelland, 1991). Van Dam (2005) measured several characteristics of work changes in relation to client attitude, from which changes in job content proved significant. Such changes in work influence employee commitment towards change, resulting in increased or decreased levels of job satisfaction (van Dam, 2003). As part of commitment towards change, employee resistance might influence work functioning and satisfaction (Oreg, 2003). Guest (1987) even found that commitment to change positively mediates the relation between a change initiative and job satisfaction, implying higher willingness to change to desired behavior. Therefore, its importance in the relationship between the changes in work at Albert Heijn and client satisfaction seem evident. These findings show the relevance of measuring client’s commitment towards change in relation to the clarity about stakeholders’ roles and change effectiveness at Albert Heijn.
Interdependence
assumed that members are willing to complete their task when working together on the same goal. Previous research found a significant relationship between communication and individuals’ behavior, which was positively mediated by interdependencies (van der Vegt, Emans & van der Vliert, 1999). Afore mentioned was that competence-based trust functioned as glue which hold virtual teams together. However, Bell & Kozlowski (2002) found similar results for interdependencies between virtual team members. They state that interdependence bonds team members in virtual settings. Since they work separately on tasks, it creates linkages between every individual.
advantages. Managing these interdependencies can lead to desired behavior at stakeholders, which is closely related to the content of change effectiveness of this research (Stebbings & Braganza, 2009). Previous research found a positive relationship between interdependence and team satisfaction (van der Vegt, Emans & van der Vliert, 1999). Furthermore, Campion et al. (1996) claimed that task interdependence is positively related to team satisfaction. The relation between goal and feedback interdependence with team satisfaction was also found significant by Pritchard et al. (1998). Therefore, it is expected that interdependence mediate the relationship between clarity about stakeholders’ roles and change effectiveness.
Hypothesis 6: The relationship between clarity about stakeholders’ roles and change effectiveness is positively mediated by a high level of interdependence between the stakeholders involved in the absenteeism process.
RESEARCH METHODS Participants
Data collection and analysis
The questionnaire was sent and collected via Albert Heijn’s intranet. Confidentiality was promised at the start of the questionnaire, therefore data was collected anonymously. 128 questionnaires were completed and returned, leading to a total response rate of 29%. Of the 128 respondents, 99 were executives from the stores, 17 executives from the supply chain and 12 executives from Albert Heijn’s headquarters. The quantitative data is analyzed with factor analysis and Cronbach’s alpha at first, to continue with correlation analysis, regression analysis and Sobel’s test thereafter.
Measures
Scales used in previous research measured all constructs from the theory. The scales were translated into Dutch and customized towards this research. Although translated and slightly adjusted, the usage of prior used scales ensured that the items used were valid and reliable. All items measured executives’ perceptions about the organizational change at Albert Heijn. Executives were asked to rate each item on a seven point Likert scale. Content of the scale varied several times, but mostly represented 1= strongly disagree to 7= strongly agree. Changes in these contents were explicitly indicated. The complete, customized questionnaire is added in appendix A.
Cronbach’s alpha was very reliable (α = .95). Cronbach’s alpha was determined together with factor analysis, which is described further below.
Clarity about stakeholders’ roles. The new roles of stakeholders involved led to a need of measuring the clarity about stakeholders’ roles. The concept of TMS was addressed, since this refers to who you know knows, e.g. it complies an understanding of where available knowledge is located within a team. Therefore, the scale of Lewis (2003) was used and customized similar to the changes in the scale of change effectiveness towards this research. Example items of this scale were ‘’I know what the areas of expertise of the RB-team and company doctor are’’ and ‘’the specialized knowledge of the RB-team and company doctor is needed to successfully finish absenteeism processes’’. One item was deleted to create a reliable Cronbach’s alpha (α = .86).
Virtuality of knowledge transfer. Virtuality of knowledge transfer was measured by a scale of Wiesenfeld et al. (1999). These authors developed a scale that measured the various methods for transferring knowledge. This scale was slightly adjusted for this research, predominantly specified towards the specific context executives face when transferring knowledge. Executives had to rank the frequency of each form of knowledge transfer. Cronbach’s alpha was acceptable (α = .63), which can be related to the fact that each item only differs in type of communication source. No items were therefore deleted.
better’’ and ‘’contact with my RB-team member ensured that I am able to take initiative in absenteeism processes’’. Cronbach’s alpha was very reliable (α = .93), no items were deleted.
Competence-based rust. Trust was defined with two concepts; competence-based trust and benevolence-based trust. However, only competence-based trust was measured, since benevolence-based trust was found to have little overlap with the change at Albert Heijn. Lewis (2003) measured credibility, which comprised a similar definition as competence-based trust; executives’ belief about the reliability of other stakeholders’ knowledge. Therefore, the credibility scale of Lewis (2003) was used and customized towards this research like the above mentioned changes. Example items were ‘’I had no problems accepting procedural proposals of the RB-team’’ and ‘’I trusted that the expertise of the RB-team was reliable’’. One item was deleted to establish a reliable Cronbach’s alpha (α = .84).
Commitment towards change. Executives’ commitment is measured by a scale developed by Meyer & Herscovitch (2001:301), who stated it is ‘’a force (mind-set) that binds an individual to a course of action deemed necessary for the successful implementation of a change initiative’’. The scale was customized towards the stakeholders of this research. Example items were ‘’working towards the success of the new way of working in absenteeism processes was important to me’’ and ‘’I felt an obligation to work towards the success of the new way of working in absenteeism processes’’. This scale was divided in two scales and definitions to increase validity and reliability, which will be described below. Cronbach’s alpha for internally driven commitment was high (α = .81) and acceptable for externally driven commitment (α = .70).
executives’ understanding of the scale. Example items were ‘’when executing absenteeism work, I have to consult my RB-team member regularly’’ and ‘’I can work reasonably independent from my RB-team member and company doctor in my absenteeism processes’’. Three items were deleted to increase validity and reliability, resulting in an acceptable Cronbach’s alpha (α = .74).
Validity and reliability
affective commitment, while externally driven commitment is based upon external regulation and commitment types such as continuance and normative commitment (Meyer, Becker & Vandenberghe, 2004). This research will continue using both types of commitment; internally and externally driven.
Furthermore, the four reversed items of interdependence load differently from the other items that were supposed to measure interdependence. Examination of the scale showed that the original items measured independence instead of interdependence between stakeholders in the absenteeism process. Unlike with commitment, this scale does not measure several constructs of interdependence; it measures the level of interdependence in two ways. Interdependence was measured at one side of the continuum, while dependence was measures on the other side. Therefore, it was decided to accept the fact that interdependence loaded on two factors.
link with theories of TMS and virtual teams, which commitment does not have. Therefore, it is more interesting to find out whether these variables measure different constructs than commitment and satisfaction. The second factor analysis with these factors complies with the mentioned rule of thumb and is added in appendix C. The results of this analysis show that the items load correctly on four factors, which confirms that the items measure the constructs from the theory as expected.
RESULTS
Table two reveals descriptive statistics and correlations of the variables derived from the conceptual model. Furthermore, control variables are added to ensure that managers’ sex, age and tenure do not influence the relationships between the variables in the model. Outcomes show no significant correlation between these control variables and any other variable, only between control variables 1) sex and age and 2) age and tenure. Therefore, they will not be included in further analysis.
Table 2 Descriptive statistics and correlations between all variables
Furthermore, content of knowledge transfer and competence-based trust correlate positively with change effectiveness. Clarity about stakeholders’ roles, virtuality of knowledge transfer and internally driven commitment correlate also positively significant with change effectiveness. Furthermore, virtuality of knowledge transfer, content of knowledge transfer, competence-based trust and internally driven commitment have a positive, significant relationship with clarity about stakeholders’ roles.
Hypotheses testing
significant to determine a (partial) mediating effect (Barron, Frazier & Tix, 2004). This research will change the order of steps to increase readability of the outcomes. First, the relation between the independent and dependent variable is examined, since it is the first hypothesis and has to be significant to determine possible mediating effects.
Simple linear regression
In hypothesis one it was tested whether high clarity about stakeholders’ roles would lead to higher change effectiveness. Results of the regression analysis show a positive, significant relationship between clarity about stakeholders’ roles and change effectiveness (β = .43, p < .01). Besides that, clarity about stakeholders’ roles explains a significant part of the variance in change effectiveness (R² = .18, p < .01). Based on these findings it can be stated that hypothesis 1 is accepted. Furthermore, this relationship forms the first out of four steps from Baron & Kenny (1986). Therefore, step one is considered to be successfully completed and will therefore not be executed in the mediator analysis below. The significant relation between the independent and dependent variable enables one to test all mediators below.
and virtuality of knowledge transfer is positive and significant (β = .24, p < .01). Since all steps are successfully completed, the final step can be executed.
When inserting virtuality of knowledge transfer in the relationship between clarity about stakeholders’ roles and change effectiveness, it does not result in a full mediating relationship. The relation between the independent and dependent variable stays significant and does not decrease tremendously (β = .36, p < .01). However, also virtuality of knowledge transfer is regressing significantly again as mediator on change effectiveness (β = .26, p < .01). Furthermore, adding virtuality of knowledge transfer increased the opportunity to explain the variance in change effectiveness (R² = .26, p < .01). Since both relationships are significant and the strength of the relationship between clarity about stakeholders’ roles and change effectiveness decreased, it can be concluded that a partial mediating effect exists. Therefore, hypothesis two can be accepted, although mediation is partially.
effectiveness (R² = .49, p < .01). Besides that, the significance level has shifted towards a lower level of accuracy. However, to establish a full mediation effect, the relation between the independent variable and dependent variable should change towards a relationship which is not significant anymore after inserting the mediator in this relation. Therefore, no prove has been found to fully accept hypothesis three. However, considering the decreased relation between clarity about stakeholders’ roles and change effectiveness after inserting content of knowledge transfer, it can be stated that content of knowledge transfer partially mediates this relationship.
effect. Therefore, hypotheses four is accepted for a partial mediating effect, but rejected for a full mediating effect.
strong, since the effect is very close to no effect at all. Therefore, it can be concluded that hypothesis five is rejected for full and partial mediation. However, internally driven will be added to Sobel’s test further in this research to test the significance of this mediation effect again.
As explained, also externally driven commitment is added in the regression analysis. Regressing externally driven commitment on change effectiveness results in a non-significant outcome (β = .05, p = n.s.). Since theory explained that all requirements (significant relationships between all variables) have to be fulfilled to establish a mediating effect, it is unnecessary to further analyze externally driven commitment. Therefore, hypothesis five is also rejected for externally driven commitment.
Hypothesis six researched whether the relationship between clarity about stakeholders’ roles and change effectiveness is positively mediated by a high level of interdependence between the stakeholders involved in the absenteeism process. Regression analysis shows a non-significant relationship between interdependence and change effectiveness (β = .12, p = n.s.). Therefore, no mediating effects can be found for interdependence. This finding leads to the rejection of hypotheses six.
Multiple regression
Table three presents the results of the regression analysis. Step one shows the relation between clarity about stakeholders’ roles and change effectiveness (β = .43, p < .01), which was also mentioned above at hypothesis one. The third and fourth column shows that virtuality of knowledge transfer (β = .14, p < .05), content of knowledge transfer (β = .47, p < .01) and competence-based trust (β = .38, p < .01) score significantly in regression on change effectiveness, although on an average to low level. These three mediators explain a high, significant part of the variance in change effectiveness (R² = .61, p < .01). The mediating effect of all three mediators is written down in column five and six. Unlike in simple linear regression, multiple regression analysis shows a full mediation effect of all three mediators. Virtuality of knowledge transfer (β = .14, p < .05), content of knowledge transfer (β = .45, p < .01) and competence-based trust (β = .36, p < .01) score significantly when added together as mediator between clarity about stakeholders’ roles and change effectiveness. The strength of the relationship between clarity about stakeholders’ roles and change effectiveness decreased significantly after adding the mediators together (β = .06, p = n.s.). Therefore, it can be concluded that virtuality of knowledge transfer, content of knowledge transfer and competence-based trust together fully mediate the relation between clarity about stakeholders’ roles and change effectiveness when added at the same time.
Sobel’s test
To test the significance of the mediating effect a Sobel’s test is executed. Sobel (1982) developed a significance test to measure the indirect effect of independent variable on the dependent variable via the mediator. In summary, Sobel’s test determines whether the relationship between the independent and dependent variable has reduces significantly after inserting the mediator in this relationship. The mediator should take over this significant relationship to establish a significant mediating relationship. Results of Sobel’s test are placed below in Table four. All significant mediators from the simple linear regression analysis are added in order to find evidence for the findings of the regression analysis. Therefore, also internally driven commitment is added.
The results of the test show significant p-values for virtuality of knowledge transfer, content of knowledge transfer and competence-based trust. Content of knowledge transfer and competence-based trust have a highly significant, mediating relationship with the independent and dependent variable. Virtuality of knowledge transfer has a lower p-value content of knowledge transfer and competence-based trust, but is still significant. Furthermore, Sobel’s test confirms the findings from the simple, linear regression, since there was no mediating role of internally driven commitment between clarity about stakeholders’ roles and change effectiveness. This confirms all findings from the regression analysis.
CONCLUSIONS AND DISCUSSION
This retrospective research investigated a recent change at Albert Heijn and tried to answer the following question: ‘To what extent did changing stakeholder roles towards a high
level of virtuality affect interaction processes between the stakeholders involved of absenteeism processes at Albert Heijn?’ This research has found that role clarity increases
stakeholders’ job satisfaction. Furthermore, results have shown that the relation between clarity about stakeholders’ roles and change effectiveness is mediated by the combination of virtuality of knowledge transfer, content of knowledge transfer and competence-based trust. The combination of these three variables fully mediate the relation between clarity about stakeholders’ roles and change effectiveness, which implies that Albert Heijn should gain further insight in how these variables influence each other to ensure continued success of the change. These findings result in a need for clear rules and expectations within virtual teams at start-up, since it enables fluent virtual communication and effective knowledge transfer via these electronic media. Trust between stakeholders’ increased when one showed to possess the needed competence. Therefore, the need to develop and increase knowledge continuously will remain, since it partly determines the effectiveness of the virtual teams at Albert Heijn.
Starting many projects result in a need for standardized operating processes and clear norms to reduce start-up time to work effectively and eliminate unnecessary actions (Duarte & Snyder, 2001). Duarte & Snyder (2001) explained that several processes are able to replace the storming stage, namely 1) clear rules and expectations for usage of virtual technology, 2) clear definitions of what effective work completion compels, 3) agreement on general team norms and expectations, 4) planning of the project, including time scales and desired outcomes and 5) systems that document and report, such as electronic archives. The partial mediation of virtuality of knowledge transfer might therefore be explained by an incomplete set of processes that replace the storming stage. Virtual teams need these predetermined agreements, since unclear rules and expectations are harder to clarify in virtual teams (Duarte & Snyder, 2001).
technologies that support the transfer of tacit knowledge and 7) focus on continued development individual-level tacit knowledge (Griffith et al., 2003:283).’’ These measures will likely increase the mediating effect of content of knowledge transfer, which is expected to increase executives’ satisfaction about the organizational change.
Furthermore, results showed that competence-based trust did not fully, but partially mediate the relation between clarity about stakeholders’ roles and change effectiveness. Hinds & Weisband (2003) found that virtual team members have lower levels of trust when the virtual team is formed, which results in less information sharing in relation between virtual team members than members of traditional face-to-face teams. This might support the findings of this research, since competence-based trust did not have a full mediating relationship between clarity about stakeholders’ roles and change effectiveness. These initial low levels of competence-based trust can result in lower transactive memory, which results in lower clarity about stakeholders’ roles and thus decreases change effectiveness (Walther 1995). This strengthens earlier findings of this research about all three mediators in the discussion, since it was mentioned that clear expectations, rules and team norms at start-up could result in successful (content of) knowledge transfer in virtual settings and thus increase competence-based trust from the start. Therefore, it can be stated that RB-team members were able to gain executives’ competence-based trust after several months by showing their competence, which diminished negative effects of the virtual start-up phase and increased the effectiveness of the change. This might explain the significant mediation effect of these three variables when combined together.
(Nagar, 2012). Commitment might have been barely relevant at Albert Heijn’s executives, since the organizational change was directed top-down and they had no other choice than participating in the new absenteeism process. Therefore, commitment might be an outcome of satisfaction for the executives of Albert Heijn. Gustafsson, Johnson & Roos (2005) found that both internally and externally driven commitment create some kind of ‘stickiness’, which increases client’s loyalty towards products or services. However, they claim that this ‘stickiness’ is derived from trust and they use commitment as a moderator. This might explain the non-significant findings at Albert Heijn, since commitment was hypothesized as a mediator in this research. Furthermore, previous research measured the concept of commitment to find attitudes towards the organization (Gustafsson et al., 2005; Morgan & Hunt, 1994; Nagar, 2012), while this research focused on finding commitment towards the recent change towards teams with a high level of virtuality.
Theoretical implications
The conceptual model of this research was derived from theories about virtual teams and transactive memory systems. Virtuality of knowledge transfer, content of knowledge transfer, competence-based trust and interdependence were derived from these concepts, commitment was added to the conceptual model after several interviews with stakeholders involved. This research used the concept of transactive memory systems (clarity about stakeholders’ roles) as independent variable, which has not been researched in this way before. Griffith & Neale (2001) found evidence for the role of transactive memory systems as a moderator, but no researcher used this theory as independent variable. This might be due to the fact that prior researchers saw transactive memory as interaction processes within teams, which therefore functions as a moderator. Therefore, this research adds interesting insights to the existing literature, since this research have shown that the concepts of transactive memory systems and virtual teams can also be investigated as an independent variable after an organizational change that changed stakeholders’ roles. After such a change, division of roles is unclear and the concept of transactive memory systems can be researched from a different viewpoint, which this research did.
research showed that a high level of expertise in a certain area, together with trust based upon that expertise positively influences the switch towards a high level of virtuality and increases the satisfaction of team members about the recent change.
Contributions to practice
virtuality is immediately able to focus on their tasks that are expected to increase client satisfaction.
The combination of virtuality of knowledge transfer, content of knowledge transfer and competence-based trust was found to positively mediate between clarity about stakeholders’ roles and change effectiveness. Most notable measures in relation to virtuality of knowledge transfer, content of knowledge transfer and competence-based trust are development of communities of practice, development of strategies and technologies that support transactive memory, support of the transfer of tacit knowledge and focus on continued development of individual-level tacit knowledge. Such developments should be captured in a best-practice map. This set of best practices should be developed by the RB-team and continuously be under development due to new trends and changing environments. Alterations in the best practice document have to be explained and discussed in monthly meetings with other RB-team members to ensure validity, while immediately knowledge is transferred between RB-team members to ensure their competence of knowledge. These meetings should clarify how RB-team members should transfer knowledge to executives, since executives need to know what role and competence their RB-team member has to ensure role clarity within absenteeism processes. Development of strategies to achieve role clarity does not only ensure optimal support for executives, but also to keep executives’ trust in their competence. Since the environment of absenteeism processes is in constant change, there is a need for continuously developing competence and adjusting approaches on how to act in absenteeism processes.
Limitations and directions for future research
mediating effect of virtuality of knowledge transfer, content of knowledge transfer and competence-based trust, since quantitative research gives only limited insight in how processes actually work. Qualitative data would give a more accurate interpretation of the results of this research. Therefore, future research can use this opportunity to investigate qualitatively how virtuality of knowledge transfer, content of knowledge transfer and competence-based trust interact with each other.
Furthermore, data was gathered on individual level, which presented a clear image of group processes. However, data on team level might show different insights in how processes work. Future research can focus on team level to find evidence for this research or to find new insights. Besides that, data was gathered cross-sectional, which means that the gathering of data was only executed at one moment. Longitudinal data collection will improve validity of the findings, since data is gathered at several moments in a certain time frame.
complete answer to when and how clarity about stakeholders’ roles, virtuality and content of knowledge transfer, competence-based trust and change effectiveness interact with each other.
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