‘’The Emergent Change Process linked to Darwin’s
Evolutionary Process: the Importance of the
Interaction between Managers and Subordinates’’
A case study in the private sector
University of GroningenFaculty of Economics and Business Msc Business Administration Master Thesis Business Administration
Change Management A.T. van der Valk
S1975722 Venuslaan 35 9742 KJ Groningen (+31) 34575801 A.T.van.der.Valk@student.rug.nl Supervisor dr. B. Emans Co-assessor dr. J. Rupert October 2014
‘“Problems cannot be solved with the same mindset that created them.” – Einstein 1946
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Abstract
This study offers preliminary insights into the role of the interaction between managers and subordinates in stimulating and enhancing the process of emergent change (the realization and institutionalization of new ideas and initiatives regarding improving organizational practices), by comparing the emergent change process with Darwin’s evolutionary process. Theory was developed based on data that was collected by means of a case study approach which involved fourteen interviews conducted within one organization. In order to gain comprehensive insight, this study made a distinction between the processes of variation (the generation of new ideas or options for organizational practices proposed by individuals) and selection/retention (the process of deciding which new ideas or options for organizational practices will be tried out and making work methods a standard part of organizational practice) within the evolutionary process. The distinction between both processes allowed for a systemic overview of the influence of the interaction between managers and subordinates on these processes. The results of this research exhibited a paradox: managerial control is achieved by giving away control to one’s subordinates. The point of subordinate participation is to increase the quality of the solution instead of increasing the likelihood of acceptance of ideas proposed by managers. Notable conditions, derived from the interviews, influencing the variation process are subordinate habituation and the combination of limited organizational structure and change vision. The most notable factors, derived from the interviews, which influence the selection/retention process are internal communication and subordinate involvement. Somewhat counterintuitive implications of this research include the relatively comparable factors influencing the processes of variation and selection/retention. It seemed that the processes of variation and selection/retention are ongoing and circular instead of linear.
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Table of Content
1.Introduction - The Ambiguity within Change ... 4
1.1 Shifting Dominance: Planned vs. Emergent Change Approach ... 4
1.2 The Role of Subordinates during Organizational Change ... 5
1.3 Social Construct of Reality ... 6
1.4 Practical and Scientific Relevance ... 7
1.5 Research Question ... 7
1.6 Research Paper Outline ... 8
2.Theoretical Framework ... 8
2.1 The Process of Emergent Change ... 8
2.2 Previous Research on the Interaction between Managers and Subordinates ... 9
2.3 Characteristics Manager and Subordinates Interaction influencing Variation ... 10
2.4 Characteristics Interaction Managers and Subordinates influencing Selection/Retention ... 11
2.5 Specifying Research Question... 12
3.Research Methodology ... 13
3.1 Research Approach ... 13
3.2 Case Description ... 13
3.3 Data Content ... 15
3.4 Data Collection Method... 15
3.5 Data Analysis ... 17
4. Results ... 18
4.1 Interview Outcomes related to Sub-research Question I ... 18
4.2 Factors influencing the Selection/Retention Process... 33
4.3 Other Factors influencing the Change ... 40
5. Discussion & Conclusion ... 44
5.1 The Influence of the Predefined Factors on the Variation Process; related to Sub-research Question I... 44
5.1.1 Predefined Factors Related to Sub-Research Question I ... 44
5.1.2 Additional Factors related to Sub-Research Question I ... 45
5.2 The Influence of the Predefined Factors on the Selection/Retention; related to Sub-research Question II ... 47
5.2.1 Predefined Factors Related to Sub-Research Question II ... 47
5.2.2 Additional Factors related to Sub-Research Question I ... 48
5.2.3 Other Factors Influencing the Change ... 49
5.3 Overlapping Factors ... 49
5.4 Conclusion... 49
5.5 Theoretical Implications ... 50
5.6 Practical Implications ... 51
5.7 Limitations of this Research & Suggestions for Future Research ... 52
6.References... 53
7.Appendices ... 59
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1.Introduction - The Ambiguity within Change
Most organizational practitioners and theorists agree that organizational changes are increasingly frequent, less predictable and of greater magnitude than ever before (Carnall, 2003; IBM, 2008). In a dynamic and changing environment, there can be little doubt that organizational change is one of the most important issues which organizations will face. Therefore, the famous quote by Charles Darwin (1809-1882) is more appropriate than ever before: ‘’It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change’’. Despite global awareness of this well-known quote and its relevance, the success ratio of organizational changes can be considered disappointing. While looking back at the end of the twentieth century, many researches claim that more than half of the organizational changes can be considered unsuccessful (Mauer, 1996, cited in Szabla 2007).
Organizational change is not a clearly defined phenomenon. Sometimes change is hardly noticed and incremental, whilst at other times change happens over a longer time period and is considered radical. Therefore it is stated by Burnes (2004) ‘’not to see change as some amorphous mass but to understand the range and variety of change situations’’ (p:886). There are various ways of categorizing the different approaches to organizational change, of which the most known and dominant ones are the planned and emergent change approaches (Burnes, 2009; Cummings & Worley, 2001; Dunphy & Stace, 2001).
Within this research paper issues of emergent and planned change approaches are elaborated upon. This research paper is an empirical research on the conditions for emergent change, the latter being increasingly important nowadays. More specifically the focus is on the influence of the actual relationships, between managers and their subordinates, on the probability of emergent change. As will be shown in the following sections this can be considered as a key factor.
1.1 Shifting Dominance: Planned vs. Emergent Change Approach
The literature on organizational change and practice of change management has been dominated by the planned change approach until the 1980s. The way the planned change approach views change is as a process that moves from one ‘fixed state’ to another (Bamford et al., 2003). This result is achieved by means of a process that is made up of a series of pre-planned steps, which is therefore analyzable and constructible as such.
The emergent change approach is presented as an alternative to the planned change approach. In contrast to the planned change approach, the emergent change approach is merely described in vague terms in recent literature. However, the key message heralded by emergent change approach supporters is one of challenging the appropriateness of ‘planned change’ within today’s business environments, since today’s business environment is perceived to be increasingly uncertain and dynamic (Biedenbach and Söderholm, 2008).
With respect to the planned change approach there are a lot of models and approaches applicable for management in order to achieve successful planned changes, for example, Lewin’s three-step model of change (Burnes, 2009). In comparison with the planned change approach, the relatively new concept of the emergent approach to change needs to be further researched so that it can be better understood.
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achieved by using evolutionary theory and it’s concept of evolution by natural selection. It is argued that organizational practices, methods, work processes and visions, which are the backbone of organizations, evolve slowly by natural selection as well as organisms (Aldrich 2008). It is important to bear in mind that though the application of general evolutionary principles will not do all the explanatory work it is vital for the explanation of how the evolutionary processes of organizational practices, methods, work processes and visions work (Aldrich, 2008).
The evolutionary process is divided in the distinguishable processes of variation, selection and retention which are applicable for the evolution of organizational practices and work methods (Lovas & Goshal, 2000). Variation is defined by Stoelhorst (2008) as ‘’a mechanism increasing variety by changes in and new combination of building blocks; change in organizational form’’ (p:351). The process of selection is referred to as process by which one or more variations are chosen whereas others are ultimately rejected. The final force of the evolution theory is retention which is the process of making selected variations a standard part of organizational practice. In this research, the phases of selection and retention process are combined, because the phase of retention is considered a repetition of selected variations. The application of the processes of variation and selection/retention in this research will be discussed in the theoretical framework section.
The aim of this research is to identify relationships between managers and subordinates, which enhance the process of emergent change. This aim is achieved by conducting research upon factors which influence the realization and institutionalization of new ideas and initiatives regarding improving organizational practices. Therefore the structure of this research paper will be based on the factors influencing the variation process and factors influencing the selection/retention process.
1.2 The Role of Subordinates during Organizational Change
The increasing tendency towards the emergent change approach has implications for how organizational change is managed.
Pettigrew, Woodman and Cameron (2001) stress the importance of contextual consideration to better understand how change works in practice and why sometimes it does not. Former research has shown that subordinates play a critical role in the success or failure of changes (Shin, Taylor & Seo, 2012). This corresponds with the findings of Van den Heuvel, Demerouti & Bakker (2013) who state that: ‘’In order to increase the success rate of change initiatives, we argue that more attention is needed for the individual subordinates during change’’ (p:1). After all, subordinates influence the change by the adaptive choices they make, and management is responsible for sensing the labels and interpretations that capture the patterns in those adaptive choices (Weick, 2000). Within this research the distinction is made between managers and subordinates when people coordinate their actions within a predefined hierarchy. The term manager refers to the upper hierarchical layer and the subordinate in turn refers to the lower hierarchical layer (Weick, 2001).
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change within organizations. This implies that subordinates are no longer passive ‘victims’ of organizational change but rather proactive initiators of organizational change. Therefore, this research paper does not focus solely on managerial behavior but on the relation between managers and their subordinates.
1.3 Social Construct of Reality
As delineated above, the role of the subordinate during organizational change has shifted towards a proactive and initiating role. This different role, has implications for the interaction between managers and their subordinates.
In order to gain a better understanding of the interaction between managers and subordinates it is important first to look at the fundament of the relation: the social construct of reality (Hosking, 2004; Ford, Ford, D’Amelio, 2008; Sonenshein, 2010). The social construct of reality is defined as the result of the process that managers and subordinates interacting in a social system create, over time, mental representations of each other's actions, and that these mental representations eventually become habituated into reciprocal roles played by the actors in relation to each other (adapted from Berger & Luckmann, 1966). A clarifying example is a situation where a manager is conceived to be active and knowing, who conducts research to understand the passive and unknowing subordinate in order to determine what should be done upon the subordinate in order to be effective.
In order to understand processes of organization and organizational change, it is important to pay attention to social realities that are constructed in relational processes and through interactions (Hosking, 2004). Social realities are the fundamental assumptions which govern the interaction between managers and their subordinates by creating contexts which ultimately shape interactions, expectations and outcomes such as new ideas of organizing work and work methods (Boonstra, 2004; Bisel, Memmersmith & Kelly, 2012). So, in conducting research upon emergent change the construct of reality between managers and subordinates is a key dimension.
Today’s most common and most researched social construct of reality is the subject-object construct of reality. The distinction between subjects and objects can be recognized in processes of organizational change when managers are perceived as being active subjects in relation to an organization and subordinates which are there to be known and changed (Boonstra, 2004). The assumption that the object is there to be ‘’for the other’’ rather than ‘’with’’ is prior to the construct of subject-object reality (Hosking & Shamir, 2012).
As will be elaborated upon in the theoretical framework section, the subject-object construct of the reality between managers and their subordinates is governed by principles of unilateral control (Drukker & Verhaaren, 2002). Unilateral control is defined as the obsession to win, to avoid testing one’s own assumptions, to judge others, to be rational and to suppress and control feelings of others (Drukker et al., 2002).
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result and that they are able to influence results which will stimulate the variation and selection/retention processes that guide the evolution of organizational practices. 1.4 Practical and Scientific Relevance
Within this study, the characteristics of the interaction between managers and subordinates influencing emergent change are researched. Research on these factors, which are characteristics of the interaction between managers and subordinates, will enable organizations to increase the probability of appropriate interactions between managers and subordinates which will enhance the process of emergent change. Because meanings shape both social realities and actor’s subsequent reactions to such realities, understanding of subordinate response important for organizational change could be improved by means of a better understanding of the interaction between managers and subordinates.
Previous researchers tend to study the manager-subordinate interaction in a one-dimensional fashion in that they focus almost exclusively on downward communication from managerial perspective (Ford, Ford, D’Amelio, 2008; Sonenshein, 2010; Bisel et al., 2012).This study will research the interaction between managers and subordinates in a multidimensional fashion in that it will focus on its two way (informal and formal) interaction.
Therefore, this paper is of managerial interest, because it is important to enhance our understanding on managing change in complex and uncertain environments. The theoretical interest of this paper resides in the fact that it provides more insight into the emergent change approach as opposed to the planned change approach. Additionally, more explanatory research about the business phenomena of emergent change is needed due to the fact that the theoretical field of emergent change is considered immature and vague.
1.5 Research Question
Considering the importance of organizational change, the managerial struggle to successfully complete organizational changes and the lack of knowledge considering emergent change, it is of key importance to investigate the interplay between the interaction between managers and subordinates and emergent change. This reasoning is confirmed by Bisel et al. (2012) who state that ‘’the manager-subordinate relationship is a microcosm of the organizational universe and our description of this relationship should parallel the complexity demanded by such an insight’’.
The question to be answered by the research presented in this paper thus reads:
’’What is the role of the interaction between managers and their subordinates in enhancing the process of emergent change?’’
Since the research question will be answered by linking the emergent change approach to the processes related to the evolutionary theory, the interaction between managers and subordinates will be related to events of processes of variation and selection/retention.
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Sub-research question II - ‘What is the role of the interaction between managers and their subordinates in stimulating and enhancing the process of selection/retention?’
According to the research question, the unit of analysis will be the interaction between management and their subordinates which is at a micro level. More specifically, the focus will be on how daily interactions between managers and subordinates contribute to (blocked) change processes.
1.6 Research Paper Outline
This research paper is structured as follows: it first outlines the theoretical framework regarding the organizational change and the interaction between managers and subordinates. Subsequently, it provides the research design initiated by a short case description. Thereafter, results of the data analysis are provided. Additionally, findings are discussed with respect to the role of the reality between managers and their subordinates in stimulating and enhancing the process of emergent change which are linked to existing literature. In the conclusion, implications, limitations and suggestions for future research are presented.
2.Theoretical Framework
Within this section, the concepts of emergent change and the interaction between management and their subordinates will be elaborated on by means of a literature review. First, the concept of emergent change will be discussed. Secondly, the interaction between managers and their subordinates will be explored by focusing on previous research on this concept. Next, different factors, derived from previous research, are described further and are categorized by factors which can be impacted by the interaction between managers and subordinates influencing the variation process and on the other hand the selection/variation process. Finally, the research question will be further specified.
2.1 The Process of Emergent Change
Emergent change is still considered as something that just happens within organizations (Mackay & Chia, 2013). As stated by Weick (2000) the difficult aspect of emergent change is that it is hard to notice due to the fact that emergent change entails small changes which are grouped together as noise without any importance. Within the emergent change approach, new ideas for organizational practices arises from multiple sources such as a number of subordinates, within the organization (By, 2005). The major development of emergent change is an emphasis on ‘bottom-up’ approach, rather than ‘top-down’ control in commencing and implementing organizational change, (Slijp 2009) resulting in a stronger reliance on subordinates regarding change input.
It is important to note that the distinction between planned and emergent change is not clear cut since one does not exclude the other. Burnes (2009) argues that planned- and emergent changed are not competitors. According to Beer and Nohria (2000), planned and emergent changes go hand-in-hand. Within planned change approaches and projects, emergent aspects of change are often distinguishable, in retrospective, as series of ongoing and situated accommodations, adaptations, and alterations (Meyer, Gaba & Colwell, 2005).
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ideas or options for organizational practices proposed by individuals. Selection/retention is considered the process of deciding which new ideas or options for organizational practices will be tried out and making work methods a standard part of organizational practice (also known as institutionalization). In the next section, outcomes of previous research on the interaction between managers and subordinates are elaborated upon.
2.2 Previous Research on the Interaction between Managers and Subordinates As presented in the previous subsections, the interaction between the manager and their subordinates has been investigated by several researchers, in a two-dimensional way, who proposed a more appropriate interaction between managers and subordinates to match today’s organizational environment (Ardon, 2009). Earlier research identified several characteristics compromising the interaction between managers and subordinates. Interaction between managers and subordinates is defined as repetitive patterns of collaborative behavior between managers and their subordinates regarding the improvement of organizational practices (adopted from Bisel et al., 2012).
Previous research showed that the locus of control is an important dimension of the interaction between managers and subordinates (Eby, Ng & Sorensen, 2006). According to Rashid & Talib (2013), a subordinate is in control if causes of certain outcomes are related to the person. This corresponds with the findings proposed by Argyris (1990) who stated that a manager unilaterally controls his subordinates by reducing their autonomy and ownership. As a consequence of unilateral control the latter will be submissive, passive and dependent and will therefore not be proactive considering change initiatives for organizational practices. This emphasizes the importance of a factor that may influence the emergent change process which will be referred to as subordinate autonomy and limited organizational structure. These factors will be elaborated upon in the next subsection.
Another important dimension of the interaction between managers and subordinates is the perception of ownership of both managers and subordinates. Several researchers found that increased feelings of ownership of managers and subordinates enhances involvement of managers and subordinates in innovative activities (Dorenbosch, Engen & Verhagen, 2005; Hosking, 2004; Isaksen & Lauer, 2002). The motivation of subordinates to engage in pro-active behavior is the focus of research on concepts such as subordinate creativity, organizational citizenship behavior or critical reflective behavior (Dorenbosch et al, 2005). Dorenbosch et al. (2005) highlights the importance of another factor that may have an impact on the emergent change process. This factor will be referred to as subordinate ownership. This factor will be broadly discussed in the following subsection.
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change process.. This factor, which stresses the communication between managers and subordinates, is referred to as internal communication, and will be explained in the next subsection.
As defined in the introduction section, the social construct of reality between managers and subordinates was found to be a key dimension of the interaction between managers and subordinates influencing actions of both entities and mutual learning capabilities (Hosking, 2004; Ford, Ford, D’Amelio, 2008; Sonenshein, 2010). The construct of reality concept has its roots in the organizational learning school as represented by Argyris. If the unilateral control concept is to be used effectively only one person within the relation can actually use directive, top-down, cause-and-effect management style (Argyris, 1999). Therefore, the other person must be submissive, passive and dependent. In this way: ‘’if the leader (subject) considers his actions to be effective, the ultimate effectiveness is perceived as dependent on the loyalty and competence of the subordinates (object)’’ (Ardon, 2009, p:31). This means that unilateral control keeps managers and subordinates away from learning about new ways of organizing work or new organizational practices. Ardon (2009) stresses the importance of another factor that may influence the emergent change process. This factor will be referred to as organizational learning, which will be elaborated upon in the next subsection.
As shown above, several researchers have conducted research upon factors compromising the characteristics of the interaction between managers and subordinates influencing change related processes like learning, creativity and innovation. These processes of learning, creativity and innovation are expected to be related to processes of emergent change, as will be explained in the next subsection. A lot of these factors are emphasized in different researches. For the purpose of this research, the distinctive factors derived from previous researches are reduced and taken together in five characteristics of the interaction between managers and subordinates of which three are supposed to influence the process of variation and two are supposed to have an impact on the selection/retention process. The following subsections will describe these five characteristics and their relevance for the variation and selection/retention process will be explained.
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process of idea generation. From previous research findings it is expected that subordinate autonomy stimulates subordinates to be creative and to come up with new ideas and initiatives which enhances the process of variation, which is an important condition for emergent change as a first stage of emergent change.
Limited organizational structure is defined in this study as a low degree of regulation and standardization for task systems (Adapted from Brown & Eisenhard, 1997). Brown & Eisenhard (1997) found that successful innovation for organizational practices is characterized by limited organizational structure. They found that successful organizations combine limited structure with extensive interaction and freedom to improve current ways of organizing work which corresponds with the above mentioned factor of subordinate autonomy. The relation between managers and subordinates needs to be one that provides freedom to experiment for both entities by limiting regulation and standardization for task systems in order to stimulate creativity among organizational members (Isaksen & Lauer, 2002). From the previous research findings it is expected that an organization with limited structure will allow subordinates to come forth with new ideas for organizational practices which enhances the process of variation.
Subordinate ownership is defined as the degree in which subordinates feel attached to what they produce and achieve and consider it theirs (adapted from Hosking, 2004). Dorenbosch, Engen & Verhagen (2005) stated that it is important to focus on the motivational variables that promote subordinates pro-activity in innovation. A key aspect of the motivation for pro-activeness is subordinate ownership (Parker, 2000). Wall and Jackson (1997) argued that: ’’subordinates are more likely to engage in innovative activities when they feel higher levels of concern and ownership of the problems confronting them in the workplace’’ (cited in Dorenbosch, Engen & Verhagen, 2005). Dorenbosch, Engen & Verhagen (2005) found a strong positive relation which indicated that proactive attitudes, which are promoted by ownership, enhances the generation of new ideas of organizational practices and vision. From the previous research findings it is expected that subordinate ownership allows subordinates to proactively come up with ideas and initiatives for organizational practices which enhances the variation process.
2.4 Characteristics Interaction Managers and Subordinates influencing Selection/Retention
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to move away from standard procedures and makes it possible for them to institutionalize new organizational practices.
Organizational learning is defined as the process by which organizational members, such as managers and subordinates, learn, improve their problem-solving ability and their action (adapted from Burnes, 2009). King (2003) explained the process of learning by stating, “knowing does not originate inside one’s head, rather it is something that people build from communicating with others” (p. 1205). An important process in organizational learning at a micro level construct is development feedback. Zhou (2003) defined development feedback as the amount to which managers provide subordinates with useful information that makes it possible for subordinates to learn, develop, and improve their actions, which allows them to come up with ideas for improving organizational practices.
As has already been stated in former sections pervious research showed that subordinates tend to prioritize maintaining relationships over organizational goals by not expressing hurtful truths by means of feedback towards their managers (Tata, 2002; Yariv, 2006, cited in Bisel et al., 2012). When disagreement from subordinates is suppressed by the communicative context of the relation between managers and their subordinates, ignorance will block organizational learning so adaption towards new proposed initiatives and ideas will fail. Organizational learning is influenced by the relation between managers and their subordinates, the knowledge and understanding of the organization and what actions are appropriate or not are determined by their interaction (Bisel et al., 2012). Mengis & Eppler (2008) identified organizational learning as a critical factor in arriving at successful changes in new behaviors and existing routines and structures. By learning and improving their problem-solving ability and their action, subordinates are able to exhibit new behavior and organizational practices and institutionalize them within the organization. From the previous mentioned research findings it is expected that organizational learning promotes repetition and institutionalization of specific behavior which corresponds to the selection/retention process.
Table 1: Overview of the before mentioned factors which can enhance the emergent change processes of organizational practises
Variation process Selection/retention process 1. Limited Organizational Structure
2. Subordinate Autonomy 3. Subordinate Ownership
1. Internal Communication 2. Organizational Learning * These factors will be referred to as predefined factors and are derived from previous research on the interaction between managers and subordinates presented in section 2.3 & 2.4
**The factors are alphabetically ordered 2.5 Specifying Research Question
The factors mentioned in the previous subsection lead to a further specification of the already mentioned research questions, by focussing on the proposed relations mentioned in table 1. Additionally, the impact of other factors on the processes of both variation and selection/retention will be researched. This leads to the following specified sub research questions:
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- How does limited organizational structure influence the process of variation? - How does subordinate autonomy influence the process of variation?
- How does subordinate ownership influence the process of variation? - How do other factors influence the process of variation?
Sub research question II - ‘’What is the role of the interaction between managers and their subordinates in stimulating and enhancing the process of selection/retention?’’
- How does internal communication influence the process of selection/retention? - How does organizational learning influence the process of selection/retention? - How do other factors influence the process of variation?
3.Research Methodology
This section starts with explaining the research approach. Secondly, a case description will be provided including general information about the company and the context of the organizational change will be discussed. Finally, the data content, data collection method and data analysis are explained.
3.1 Research Approach
In order to investigate the relationship between the interaction between managers and subordinates and the emergence of organizational practices within organizations, a theory development research method was. This research method is chosen since the literature regarding the business phenomena of emergent change and the interaction between managers and subordinates is almost not addressed in current academic literature and the research regarding these phenomena is explanatory in nature. From the examination of the components of the experience from both managers and subordinates, theory is developed that can enrich current literature with new insights.
A case study method was applied in order to accomplish the generation of practical and relevant grounded theory by focusing on a real world situation and phenomena in a broad environmental view (Charmaz, 2006; Locke, 2002). Judgment sampling, which is sampling based on the judgment of the researcher, was applied in order to select the case (Cooper & Schindler, 2008). The judgment for selecting the case was based on the type of change conducted research upon and the availability of interviewees of different divisions and layers within the company.
3.2 Case Description
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Figure 1: Organizational Chart NAM
3.2.1 General Information about NAM
The NAM has been engaged in the exploration and production of natural gas and oil from Dutch soil, both on land and at sea since 1974. The NAM produces approximately 75 percent of the natural gas extracted in the Netherlands. The contribution to the total oil production in the Netherlands is around 25 percent. The NAM is joint venture of the Anglo-Dutch Shell and the U.S. company Exxon Mobil. The headquarters is located in Assen the Netherlands. The NAM is both concerned with the maintenance of existing sites and the best use of the existing fields, as well as the exploration and operationalization of new oil and gas fields. The latest technology, lower costs and smarter use of existing infrastructure are just a few of the many challenges faced by the approximately 1800 employees working at the NAM.
3.2.2 The Change Situation at Asset Land
The Asset land is roughly divided in three departments: production and maintenance delivery, production and maintenance support and project and modification delivery.
Due to the fact that Asset Land is producing fossil fuel they used to be in the phase of decline. However, due to the latest techniques and innovative work procedures the expected economic life of Asset Land has significantly increased. The newly appointed Asset Land manager is now faced with some important challenges. No longer a decline, in terms of organizational activities, needs to be managed. Instead the Asset Land requires more effective and efficient organizational practices since the Assets have to deal with an increased amount of work, whilst being distributed with equal resources. This important challenge requires a more long term vision and a different mindset about working together at Asset Land as Asset Land is a hierarchical organization.
The management of Asset Land chose a change approach that was new to the NAM whereby the proposed change was no longer elaborated in detail. In this new change approach the end-goal was still evident, however, management had purposefully chosen not to come up with a method to achieve the end-goal so as to ensure that there was greater scope for increased initiative amongst subordinates regarding organizational practices.
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specialization by function. Instead work will be driven by the process, which allows cross-functional teams to collaborate on project basis.
In order to achieve the end-goal subordinates were responsible for coming up with ideas and initiatives for organizational practices. This implied more subordinate involvement whereas the NAM used to change by means of ideas and initiatives derived from managers and senior management.
Figure 2: Organizational chart Asset Land
3.3 Data Content
The data content that was aimed to be gathered were experiences and understandings of fourteen interviewees, consisting of both managers and subordinates involved in the change process at Asset Land. More specifically, the goal of the researcher was to collect information about incidents where the interaction between the managers and their subordinates was influencing factors enhancing or blocking the variation and selection/retention processes.
3.4 Data Collection Method
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used for both managers and subordinates (see Appendix I), which altered according to the different roles of the interviewees within the change process.
The interview protocol was tested by means of a pilot interview in order to gauge whether the questions resulted in the required data. Questions were asked aimed at the functioning of both predefined and additional factors that contributed to the positive or negative effects on processes of variation and selection/retention. The researcher actively stimulated the interviewees to come up with stories and examples of incidents about the change process.
Prior to the start of the interview the researcher introduced himself along with information about the background and objective of the research. The interview itself started with questions about the background of the respondent and the company. The first set of questions focused on the content of the change and was aimed at bringing about factors, experienced by the interviewees, that were of influence on processes of variation and selection/retention not accounted for in the theoretical framework section.
The second set focused on the process of the change, including the outcomes and the factors influencing these outcomes. Additionally, probing questions were asked about how these factors arose by asking if the interviewees could exemplify this by means of concrete examples. In the final part of the interview, questions were presented based on the predefined factors presented in the theoretical framework section. In summary, by starting off with exploring what changed, then asking what factors made that change happen and lastly by asking if the interviewee could give a concrete example the influence on the emergence of the change was investigated.
The conducted interview lasted 60 minutes on average and were all conducted by one researcher. All interviews were recorded on two electronic devices, using a program called: Dictaphone. ‘Dictaphone’ is an application available on Apple Inc. devices which can be used to record audio. After conducting the fourteen interviews, the recordings were transcribed verbatim. Confidentiality and anonymity were guaranteed regarding the interviewees.
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Table 2 Interviewees and their association with Nederlandse Aardolie Maatschappij (NAM)
Interviewee Association of interviewee with NAM
1 Process Engineer
2 Team leader Mechanical Maintenance & Production and Maintenance Support 3 Electrical Engineer
4 Team lead Asset integrity 5 Team Leader project engineers
6 Team leader Integrated Activity Planners & Turn Around 7 Team leader Plant Changes/ Decomplexing
8 Maintenance System Engineer
9 Plant manager
10 Team leader Business Analysis & Procurement
11 Control en automation engineer & Process team leader 12 Team leader Operations Integrity
13 Process engineer
14 Team leader Production System Optimization 3.5 Data Analysis
The data derived from the fourteen interviews was transcribed and coded based on both deductive and inductive coding. The transcribed fragments concerned thoughts, experiences, ideas and meanings derived from the interviews were coded by using Atlas.ti software. The coded data are fragments indicating the presence or absence of factors influencing the processes of variation and selection/retention of new organizational practices. During the analyses, a distinction between assumptions and concrete events was made whereas only thoughts, experiences, ideas and meanings concerning concrete events were coded in order to increase the reliability.
In advance, main deductive categories were developed and derived from previous literature discussed in the theoretical framework section. These predefined codes were: subordinate autonomy, limited organizational structure, subordinate
ownership, internal communication and organizational learning. A description of these
predefined codes can be found in table 3 and 4.
Inductive codes was used to capture issues raised by interviewees not accounted for by the deductive codes, allowing contextual matters not accounted for to come forward. The inductive coding process resulted in a list of additional codes resulting from insights gained from personal experiences of the interviewees. First, all fourteen interviews were coded and additional codes were added to the predefined coding scheme. The development of inductive codes led to reconsideration of the previous coded interviews.
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4. Results
The results of the case analysis are presented in this section by means of coding schemes based on their influence on the variation and selection/retention process of emergent change initiatives during the organizational change. The coding scheme is designed to distill experiences which show the effects of factors on the variation and selection/retention processes. Subsequently, the emerged ideas and initiatives for improving organizational practices indicated by the interviewees are elaborated upon. These emerged ideas and initiatives can be found in the next section and are marked with asterisks (*). The subsequent subsection will elaborate upon the process in which and how these ideas and initiatives emerged.
First, the outcomes related to sub-research question I are presented per factor, divided by predefined and additional codes, followed by an elaboration on the findings including an analysis of the interview outcomes. Next, the outcomes related to sub-research question II are presented following the same structure as the results related to sub-research question I. Finally, this section presents additional factors influencing the emergent change which are important to organizational members to be aware off. Note, the predefined codes, additional codes and additional factors are listed in alphabetical order
Interview Outcomes: Examples of Emergent Change
*The structured week is an initiative originating from a subordinate which is aimed at enhancing the internal coordination within teams responsible for certain processes. Since the teams members, which are together responsible for a certain process, are often working in the field it is tough to coordinate between team members. During the structured week the team members will sit physically together so team members can share experiences and difficulties within their team.
**The concept of ‘train thinking’ is metaphor used to clarify the new way of organizing work within the NAM which changed from a functional towards a process-oriented organization of work. Within the new proposed organization work will no longer be managed by the different disciplines, instead work will be driven by the process. Different multidisciplinary teams are responsible for a joint result. The distinctive processes are described as train wagons in order to increase the understanding of the organizational members. The team leaders of the processes are denoted as ‘engine drivers’.
***Reclassification of the corridors is an idea proposed by a subordinate which is aimed at enhancing the collaboration between different teams. Some teams have to collaborate on a frequent base since the processes are connected to each other. The reclassification of the corridor should enhance the collaboration between these teams by putting them physically nearer.
4.1 Interview Outcomes related to Sub-research Question I
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4.1.1 Impact of Limited Organizational Structure on the Variation Process
Table 3a: The Influence of Limited Organizational Structure on the Variation Process
Factor
-Predefined factors are marked with Italic text-
Codes
-Manifestations of independent factors developed during coding process for identifying relevant interview experiences- Frequency -Number of times code was mentioned in interviews- Depth -Number of interviews mentioning code- Function interviewee -Mentioning code- 1.Limited Organizational Structure Defined as: Low degree of regulation and standardization for task systems. Presence of loose structures has a positive impact on the variation process
Absence of limited structure has a
negative impact on the variation process Presence of guidance has a positive impact on the variation process Absence of guidance has a negative influence on the variation process Absence of coordination has a negative impact on the variation process Presence of coordination has a negative impact on the variation process A low degree of rules and standard
procedures has a positive impact on the variation process Too loose
organizational structure has a
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Limited organizational structure appeared to be an important factor in answering sub-research question I. Many descriptions of situations are available where the interviewees stated that limited organizational structure influenced the emergence of new proposed initiatives and ideas for organizational practices. This outcome is shown 71 times in thirteen interviews.
That limited organization structure influences the variation process of organizational practices can be described by the following statement of interviewee MSE1, who exemplified that ‘’The new proposed way of working together has a low degree of formalization. The goals, directions and results, summarized by the change vision, we want to achieve are clear but we are free to come up with ideas, like the reclassification of the corridor***, instead of having rules that force us to remain in standard procedures’’.
Additionally, the absence of limited organizational structure were indicated by the interviewees as constraining the variation process. Interviewee MSE1 stated that: ’’Previous changes which were clearly mapped out constrained us [the organizational members] to come up with new ideas since it was the standard procedures themselves which were perceived as being more valuable than the ultimate results’’.
4.1.2 Impact of Subordinate Autonomy on the Variation Process
Table 3b: The Influence of Subordinate Autonomy on the Variation Process Total
variation process Presence of limited organizational structure has a
positive impact on the variation process 3 71 3 13 TL1, PM1, PE2 PE1, TL1, EE1, TL2, TL3, TL4,TL5, MSE1, PM1, CO1, TL7, PE2, TL8 Factor
-Predefined factors are marked with Italic text-
Codes
-Manifestations of independent factors developed during coding process for identifying relevant interview experiences- Frequency -Number of times code was mentioned in interviews- Depth -Number of interviews mentioning code- Function interviewee -Mentioning code- 2.Subordinate Autonomy Defined as:
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Many interview outcomes pointed to a positive impact of subordinate autonomy on the emergence of new initiatives and ideas for organizational practices. 35 fragments related to the independent factor subordinate autonomy were coded in ten interviews
As interviewee PE2 mentioned: ‘’I have a high level of autonomy regarding how I fulfill my job and it is precisely this flexibility that ensures my colleagues and myself go the extra mile and provide new initiatives’’. How this impacts the emergence of organizational practices is explained by interviewee TL5 who stated that: ’’A high level of autonomy allowed subordinates to experiment and develop new ways of organizational practices. No longer a small group of managers decided how work should be done, but additional subordinates were able to organize work in different ways.’’
Additionally, interview outcomes indicated that the absence of subordinate autonomy blocked the variation process. As interviewee TL8 explained: ‘’A few weeks ago I initiated a new way of collaborating with another team. A few days later I was reprimanded since I didn’t consult senior management. Now I’m less willing to come up with initiatives and ideas.’’
freedom to try out new ways of organizational practices without having to ask permission from their manager
Total
autonomy has a negative impact on the variation process Interference of the manager at decision making has a negative impact on the variation process Autonomy exclusive to management has a negative impact on the variation process No interference of the manager at decision making has a positive impact on the variation process No decisional
freedom has a negative impact on the variation process
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4.1.3 Impact of Subordinate Ownership on the Variation Process
Table 3c: The Influence of Subordinate Ownership on the Variation Process
The third factor influencing the variation process that is derived from the interview outcomes is subordinate ownership. Descriptions of situations show that subordinate ownership influences the variation process. The outcomes of interviews are shown 27 times in eight interviews.
The influence of subordinate ownership on the variation process can be illustrated with a statement of interviewee MSE1: ’’Subordinates within the organization have more influence on the change than ever before, which ensures that new ideas such as the structured week and the concept of ‘train thinking’ emerge and people are more committed to the change’’.
Factor
-Predefined factors are marked with Italic text-
Codes
-Manifestations of independent factors developed during coding process for identifying relevant interview experiences- Frequency -Number of times code was mentioned in interviews- Depth -Number of interviews mentioning code- Function interviewee -Mentioning code- 3.Subordinate Ownership Defined as:
The degree in which subordinates feel attached to what they produce and achieve and consider it theirs.
Total
Presence of sense of personal impact has a positive impact on the variation process Absence of sense of personal impact has a negative impact on the variation process Presence of
subordinate ownership has a positive impact on the variation process
Presence of
empowerment has a positive impact on the variation process empowerment
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Interviewee PE1 exemplified what happens when people do not feel that organizational change is theirs by stating: ’’However they [subordinates] don’t provide managers with feedback since they regard the change as a change which is not theirs’’. In cases where subordinates perceived low degrees of ownership interviews indicated that they came up with less ideas and initiatives due to the fact that they felt that it wasn’t their change but the change of their management.
4.1.4 Impact of the Change Vision on the Variation Process
Table 3d: The Influence of Change Vision on the Variation Process
Factor
-Predefined factors are marked with Italic text-
Codes
-Manifestations of independent factors developed during coding process for identifying relevant interview experiences- Frequency -Number of times code was mentioned in interviews- Depth -Number of interviews mentioning code- Function interviewee -Mentioning code- 4.Change Vision Defined as:
Clarifies the road ahead, the purpose of the organization and provides guidance and direction for action by means of an idealized picture of the future based around
organizational values
Total
The presence of a clear change vision has a positive effect on the variation process
The absence of a clear change goal has a negative effect on the variation process The presence of a common change vision has a positive effect on the
variation process The presence of a common goal has a positive effect on the variation process The absence of a change vision has a negative effect on the variation process
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The change vision appeared to impact the emergence of ideas and initiatives for organizational practices. This impact is coded 23 times in nine interviews.
The statement of Interviewee TL2 portrays the relation between change vision and the emergence of ideas and initiatives for organizational practices by stating that: ‘’He [the manager] makes the vision for the change clear. This change vision along with the opportunity to execute different techniques and utilize new ideas to achieve goals allowed me to come up with ideas. [..] Then you’ll see ideas emerge such as that of the concept of ‘train thinking’ process, for example’’.
Additionally, the interview outcomes showed manifestations regarding situations where there was a lack of change vision as is indicated by interviewee PE2 who stated that: ’’It’s still not always clear what the purpose of the process and of the change is. This confuses me and others [subordinates] so it’s difficult to come up with ideas for improvement’’.
4.1.5 Impact of Internal Communication on the Variation Process
Table 3e: The Influence of Internal Communication on the Variation Process
Factor
-Predefined factors are marked with Italic text-
Codes
-Manifestations of independent factors developed during coding process for identifying relevant interview experiences- Frequency -Number of times code was mentioned in interviews- Depth -Number of interviews mentioning code- Function interviewee -Mentioning code- 5. Internal Communication Defined as: Communication between the organization’s managers and one's subordinates.
Presence of
communication has a positive impact on the variation process Absence of
communication has a negative impact on the variation process Absence of personal communication has a negative impact on the variation process Presence of two-way communication has a positive impact on the variation process Absence of two-way communication has a negative impact on the variation process 7 20 6 9 3 5 7 6 4 3 PE1, TL1, TL2, TL3, MSE1, PE1, TL1, TL4, TL6, CO1, TL7, TL8
PE1, EE1, MSE1, PM1, CO1, TL7
TL1, EE1, TL3, CO1
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Another important factor derived from the interview outcomes is that of internal communication. This outcome is shown 59 times in thirteen interviews
As interviewee TL1 stated: ‘’As a manager you have to listen to the feedback of your subordinates since communication enhances the probability of new ideas of initiatives. By idea and information sharing among teams, which took place by means of workshops and day-to-day activities, internal communication increased mutual understanding’’. An illustration of the relation between internal communication and idea and initiative generation is provided by interviewee TL3, who stated that: ‘’We told everyone that if they had good ideas or feedback concerning the change we would be available for discussion. By communicating which each other about how we would like to work ideas emerged. This way I have received really valuable ideas such as a new corridor lay-out***’’.
The absence of internal communication was proven to cause uncertainty and confusion among subordinates. Interviewee PE1 summarized: ‘’[..] we [subordinates] were not informed about the discussion [regarding change in organizational practices]. So people are still searching for information; this hampers my ability to construct new ideas regarding organizational practices’’.
Total
Absence of
communication in the first phase of the change has a negative impact on the
variation process The presence of repetition of
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4.1.6 Impact of Organizational Learning on the Variation Process
Table 3f: The Influence of Organizational Learning on the Variation Process
Factor
-Predefined factors are marked with Italic text-
Codes
-Manifestations of independent factors developed during coding process for identifying relevant interview experiences- Frequency -Number of times code was mentioned in interviews- Depth -Number of interviews mentioning code- Function interviewee -Mentioning code- 6.Organizational Learning Defined as:
The process by which organizational members, such as managers and subordinates, learn, improve their problem-solving ability and their action. The presence of feedback from managers to subordinates has a positive impact on the variation process The presence of feedback from subordinate to managers has a positive impact on the variation process The presence of evaluation has a positive impact on the variation process The absence of feedback has a negative impact on the variation process The absence of evaluation has a negative impact on the variation process The presence of organizational learning has a positive impact on the variation process The presence of late evaluation has a negative impact on the variation process
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Many interview outcomes showed a positive impact of organizational learning on the emergence of ideas and initiatives for organizational practices. In total, 50 fragments related to organizational learning were coded in thirteen interviews.
Interviewee TL7 illustrates the relationship between organizational learning and the emergence of ideas and initiatives for organizational practices by an example related to the code the presence of feedback from subordinate to managers has a positive impact
on the variation process: “[..] it [managing] is about giving feedback. This allowed
subordinates to come up with new ideas because they learned from the previous situation’’. Additionally, interviewee TL1 exemplifies: ‘’The plant manager organized an away day at the industrial small railroad museum Erica. At this location, the new proposed organizational practices, such as the new way of collaboration, were indicated by means of game in which the teams had to work together in order to achieve the targeted goals. This game was used as a metaphor for the new proposed way of collaboration at the NAM. During these session ideas are generated about improvements for collaboration and work arranged in a process-driven way.’’
Interviewee PE2 illustration exemplifies what happens if organizational learning is perceived absent: ’’I thought it [new ideas and initiatives] was easily dismissed by management who stated that we [the organization] needed to work Rijnlands so they ignored the new ideas and initiatives. The organization wasn’t able to learn from these new ideas and they blocked further emergence of ideas about organizational practices’’. Total
The absence of learning has a negative impact on the variation process The absence of organizational forgetting has a negative impact on the variation process
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4.1.7 Impact of Role Expectation of Subordinates on the Variation Process
Table 3g: The Influence of Role Expectation of Subordinates on the Variation Process
The seventh factor that can be derived from the interview outcomes is role expectation of subordinates. The interviews showed situations that role expectation of subordinates influenced the emergence of ideas and initiatives for organizational practices. 53 fragments were derived from the interviews which were portrayals of situations that show the influence of role expectation of subordinates on the emergence of ideas and initiatives regarding organization practises in fourteen interviews.
As interviewee MSE1 illustrates by stating: ‘’It felt like they [managers] expected me to come up with new ideas so I felt more involved and came up with more ideas for improvement’’. Additionally, interviewee PE2 exemplifies: ‘’By being less afraid of doing something that is not expected from me, with the change of being confronted with it I generated ideas and initiatives for improving organizational practices.’’
Interviewee PE1 provides an example of a situation related to the manifestation
the absence of subordinates, who have a role expectation which is linked with no responsibilities for change input, is associated with a negative impact on the variation process : ’’I also feel that a proactive role is not really expected from me. The managers
take the initiative so I don’t produce ideas and initiatives’’. Factor
-Predefined factors are marked with Italic text-
Codes
-Manifestations of independent factors developed during coding process for identifying relevant interview experiences- Frequency -Number of times code was mentioned in interviews- Depth -Number of interviews mentioning code- Function interviewee -Mentioning code- 7.Role Expectation of Subordinates Defined as: Subordinates beliefs concerning the qualities, behaviors, and characteristics suitable to a specific role. Total The expectation of subordinates to be responsible for change input has a positive impact on the variation process The expectation of subordinates not to be responsible for change input has a negative impact on the variation process
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4.1.8 Impact of Subordinate Habituation on the Variation Process
Table 3g: The Influence of Subordinate Habituation on the Variation Process
Subordinate habituation appeared to be an important factor in answering sub-research question I. The interviewees presented situations where subordinate habituation was influencing the emergence of ideas and initiatives for organizational practices by 33 fragments within eleven interviews. What was most eminent about this factor was the fact that interview outcomes related to the influence of subordinate habituation on the variation process of organizational practices were mentioned by all four subordinates.
As interviewee PE2 illustrates: “I am more accustomed to a proactive role when it comes to improving [organizational practices] , that’s why I take initiative and come up with more ideas [to improve organizational practices] than others’’.
In contrast to interviewee PE2, interviewee PM1 stated illustrates the impact of subordinate habituation on the emergence of organizational practices by an example related to the code the absence of habituation towards a proactive role has a negative
impact on the variation process: "In the beginning they [subordinates] found this [new
proactive role] quite annoying. They didn’t come up with new ideas because they [subordinates] weren’t accustomed to a proactive role. They [subordinates] indicated that they were accustomed to being provided with detailed instructions about the way their function was changing. However, this time, they were expected to come up with new ideas of organizing were in direct conflict with the role they were accustomed to’’. Factor
-Predefined factors are marked with Italic text-
Codes
-Manifestations of independent factors developed during coding process for identifying relevant interview experiences- Frequency -Number of times code was mentioned in interviews- Depth -Number of interviews mentioning code- Function interviewee -Mentioning code- 8.Subordinate Habituation Defined as:
The process by which subordinates get accustomed to a proactive role of initiating change in organizational practices. Total The presence of habituation towards a proactive role has a positive impact on the variation process The absence of habituation towards a proactive role has a negative impact on the variation process
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4.1.9 Impact of Subordinate Involvement on the Variation Process
Table 3i: The Influence of Subordinate Involvement on the Variation Process
Factor
-Predefined factors are marked with Italic text-
Codes
-Manifestations of independent factors developed during coding process for identifying relevant interview experiences- Frequency -Number of times code was mentioned in interviews- Depth -Number of interviews mentioning code- Function interviewee -Mentioning code- 9.Subordinate Involvement Defined as: Regular participation of subordinates in deciding how their work is done and making suggestions for improvement and goal setting.
The absence of early involvement of subordinates has a negative impact on the variation process The absence of subordinate involvement has a negative involvement on the variation process The absence of stimulation for active subordinate
participation has a negative impact on the variation process The presence of subordinate participation has a positive impact on the variation process
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Many interview outcomes pointed to a positive relation of subordinate involvement on the emergence of ideas and initiatives for organizational practices. The outcomes of the interviews show 37 fragments in thirteen interviews related to descriptions of situations where subordinate involvement influences the variation process of organizational practices.
The above mentioned relation can be illustrated by an example summarized by interviewee CO1: ‘’I was involved during the change, which made me feel useful and responsible. This motivated me to come up with ideas about possible improvements concerning organizational practices’’.
In contrast outcomes were derived related to manifestations of the code the
absence of subordinate involvement in change vision development has a negative impact on the variation process which is illustrated by interviewee PE2 stating that: ‘’Because
we [subordinates] were not involved and the change of organizational practices was imposed from above we [subordinates] were less willing to come up with ideas since they [managers] took away initiatives.’’
Total
subordinate participation has a positive impact on the variation process The absence of active involvement of subordinates has a negative impact on the variation process The absence of subordinate involvement in change vision development has a negative impact on the variation process
