Author(s): Joanna Jasiska* and Hab
Changes in modern organizations are inevitable. They are implemented purposefully and consciously in order to adjust the organization to the rapidly changing external conditions, as well as to increase or create its chances of market success. The social factor plays an extremely important role in the process of organizational change. It is people who create organizations so organizational changes apply to them in particular. Therefore, every organization should maintain a proper course of the cycle of change, with the use of appropriate methods and techniques of the change design and implementation, and above all, it should be concerned to carry out the cycle in such a way as to make employees the allies of change, to shape their proper attitude toward a change and their commitment to the process. Therefore, the aim of this paper is to develop a model of employee participation in the cycle of organizational changes. Through direct employee participation, this model explains how it is possible to get the employees involved in the process and to form appropriate attitudes to change.
Changes in today?s world are inevitable. They apply to both individuals and organizations. The transforming world forces us to look for adaptation mechanisms to avoid the threats arising from it and to take advantage of emerging opportunities. Organizational changes are the organization?s response to phenomena and processes in the environment. They are designed to adapt the internal organization to external conditions, ensure its survival and development opportunities. They are introduced intentionally and consciously.
All employees should be involved in their development and implementation to bring the expected positive results. If employees of individual levels of the organizational hierarchy have access to information about the current situation of their organization, disruptions, are involved in searching for their causes and developing possible exit paths, they have the opportunity to propose improvements and innovations improving the organization, and then implementing designed solutions, become allies of change focused on cooperation, not opponents. The most effective way to counteract people?s resistance to change is to explain, communicate, participate and be involved in the process [1,2].
On the other hand, a method that allows efficiently involving members of the organization in the process of change, developing their extensive cooperation and involvement is direct employee participation [1-3]. Participation of employees in the cycle of the change process from its first stage, stimulating their commitment, although it requires more time and effort, gives enormous potential benefits in the form of the right attitude towards changes, lowering the depth of decrease in efficiency and accelerating the moment when benefits associated with increased efficiency appear [2]. It also enables managers to access unique knowledge and information held by employees that would not be disclosed by them in the conditions of using traditional or autocratic management methods [4].
The purpose of the article is to develop a model of employee participation in the cycle of organizational change process. A model of employee participation in shaping the company?s innovativeness was used to implement it [5]. Literature analysis of the subject was used as the research method.
Organizational change is the transition of an organization from one state to another, clearly different from the previous one; making a permanent correction or modification in the relations between goals, tasks, people and apparatus in the dimension of time and space regardless of the nature of its effects [6]. It is the organization?s response to changes in the environment. Is the foundation of the company?s development. It may cover the entire management system or its elements (e.g. technical, economic and financial, social subsystem), structure or processes (e.g. introduction of new technology), various levels of organization (from the organization as a whole to individual organizational positions), take the form of strategic changes (systemic) or operational [7].
It can be of an evolutionary nature, based on a diagnostic project for implementing changes (starting from the existing state and implemented strategy of operation), or revolutionary, associated with a prognostic concept (for which the starting point is the ideal model requiring the development of a new strategy) [1,8]. It may result from the need for improvement noticed by the members of the organization (organic, participatory change) or be forced by processes occurring in its environment. Voluntary (organic) change is particularly important. It results from the knowledge, attitudes and behavior of individuals and employee groups. He refers to their need for change and strong motivation to carry it out [8].
According to M. Czerska, the process of organizational changes consists of the following stages[1]:
It is difficult to talk about effective organization improvement, including the implementation of changes forced by environmental conditions, without the participation and involvement of people employed in the organization in this process. People who don?t want to be treated mechanically. Instead, they want their hopes and aspirations to be included in organizational improvement programs [7].
Organizational change requires the inclusion of as many managers and employees as possible from the beginning. Key ?building blocks&rdquo for its removal Organizational change requires the inclusion of as many managers and employees as possible from the beginning. The key ?building blocks&rdquo for its implementation are employee teams, as well as change leaders [7,8]. Nobody will carry out a change process in the company for management and employees [8]. Therefore, knowledge and skills and teamwork should be developed in the organization, a management-friendly style of change, shape the right attitudes towards change and motivate its participants to actively engage in them, including by including employees in the organization management process, launching the process of their participation (participation) in decisions [9-12]. Thanks to this, it will be easier to gain public support for changes (reduce potential resistance, increase acceptance), and cause that transformations will be introduced faster, more efficiently and at lower cost [2,4].
Among the various forms of employee participation in management, direct employee participation deserves special attention. It means the direct participation of individual employees and teams in the decision-making process regarding the organization?s operation, at various levels of its organizational hierarchy, as well as employees as participants and process implementers, as well as the principles and conditions of their functioning in the life of the organization.
Direct employee participation can have individual and group forms, various qualitative features (content, intensity, scope, range, degree of formalization, and reality of impact). It can be supported by group and individual management techniques and methods [14]. It can occur in the passive (in the form of employees ?right to information, to hear, to speak and advise) and active (employees? right to object, consent, joint resolution and exclusive resolution) [14]. It manifests itself primarily through consultations (encouraging employees to exchange information - individual and group comments, suggestions and ideas in specific cases), delegating powers (co-decision and taking responsibility for the effects of undertaken actions) and expressing opinions (survey) [14,15].
Employees should both participate in real processes in the enterprise (production of goods, their storage, transport, etc.) as well as participate in making decisions (what, who, by what methods is to perform) and bearing shared responsibility for their effects [10,16]. As task implementers they know and understand the internal processes best, their unused opportunities and bottlenecks that need improvement [17,18]. Opinions, reservations, employee ideas should be taken into account at all stages of the decision making process (problem recognition, collection of information related to it, search for solutions and their selection, implementation of the chosen solution), in matters related to the position, as well as strategic issues [19-22].
Direct employee participation allows you to appreciate the importance of active employee participation in the change process. By influencing their own work situation, they gain a sense of subjectivity, influence and responsibility for what they do. Thanks to this it is possible to transform them into allies of change. In addition, creating the atmosphere and conditions for the full involvement of people in change creates the opportunity to use mechanisms and instruments of action developed in their course in the future to achieve competitive advantage [7].
In order for direct employee participation in the process of organizational changes to be effective, the following conditions should be met [1]:
They must be able to inspire employees? trust in each other and at the same time have confidence in their subordinates [2]. They must ensure the possibility of efficient two-way communication [18].
The model of employee participation in the cycle of organizational change process is presented in Figure 1. As it results, employees should be included in this process from the first to the last stage, rather in long rather than short periods [22]. The introduction to this process is to familiarize employees with existing problems, then their participation in the design and implementation of the solution. This is important not only because of shaping the right attitude of employees towards change, creating mutual trust and minimizing potential resistance, but also from the point of view of using knowledge, skills, experience and information held by employees for the effective development and implementation of these changes [4]. Employees who have not received comprehensive information about the reorganization of the company from the beginning are not able to think holistically, embrace the full.
The change considered in the subjective area of the organization focuses primarily on the social aspect. People are the focus of change on the subject. They are a key factor in the success of this process. According to Carnall, the effectiveness of change in 40% depends on solving social problems. People have to learn the change, take on a new task and then solve. Change in the social aspect is primarily its human orientation as the main focus of interest.
Organizations change through people. After all, people have to assimilate change and take on new tasks. Therefore, the problem of change should be considered through the people involved in this process. A. Toffler wrote that ?... the responsibility for change lies with ourselves. We must start with ourselves, learning not to shut our minds and hearts in advance of what is new, unexpected and seemingly radical&rdquo.
Literature devoted to the issues of change has a great diversity in presenting the problem of the role of man in the process of change. Some authors present the needs of people in the process of change, others talk about the attitude of people to change by analyzing the phenomenon of resistance, and while others deal with forms of showing resistance to change the above considerations are evidence of this diversity
However, it is undoubted that chances for success in the area of change should be sought in its social resources. Liz Clarke writes that ?a common mistake of many organizations is underestimating the impact of change on people. Organization development is also based on people, because thanks to them the organization?s resources are multiplied. Each organization through its social potential is able to efficiently assimilate changes and organize its activities in such a way as to improve itself.
A modern organization cannot separate its other resources from people because it would lose its identity and values. Change, and especially its course, can be a derivative of the appropriate control of the centers of power (power) that occur in the organization, as R.L.Bittel writes. The view of E.M.Rogers may be interesting here, which distinguished five types of people taking into account the speed of absorption of changes. They are: innovators, early followers, early followers, late followers, stragglers.
Therefore, it should be emphasized that in the subjective aspect of change, attention should be paid to the fact that change processes in organizations are primarily social processes. According to the American organization and management theoretician Mc Gregor, people are inherently active and responsible, they want to develop and manage their own behavior. Mc Gregor and his theory X and theory Y (which became the starting point for the process of directing through goals) devotes a lot of space to personality and the role of man.
An indispensable condition for the success of the change is the acceptance of it by the participants and readiness for behavior conditioning its absorption. What does the object of resistance look like to changes? What sources do resistance come from? What should you do to rationally minimize resistance? How to make changes so that a person would like to submit to them and do it voluntarily instead of under duress?
We are constantly looking for answers to these questions. It is known that the needs of people involved in ongoing or anticipated changes play an important role in this process. On the other hand, it is also important that change participants are aware of the need for changes in their own mental figure, because, as D.K. Carr says, ?if the individual does not change, nothing will change&rdquo. A. Maslow?s concept chosen to present the issue of people?s needs in the process of change. According to it, the needs are arranged hierarchically into five groups: material (physiological), security, belonging (social), recognition and self-realization. The situation of change may increase or decrease the ability to meet these groups of needs. J.Majchrzak presents a list of the needs of participants in the change process with the necessary level of satisfying them (Table 1).
Table 1: Human needs in the process of change
Expected level of meeting needs as a result of changes: | |
---|---|
material needs | |
LESS | INCREASED |
more work limited development prospects | higher salary additional benefits better work conditions |
security needs | |
disturbed stability of the work range job insecurity uncertainty of assessment principles | formal guarantees promotion impact on the extent of the change |
needs of belonging | |
job loss work in an unknown team | cooperation with authorities impact on the change |
need for recognition | |
loss of position limited permissions | promotion higher salary increased permissions |
the need for self-realization | |
limited independence less responsibility | increased independence increased responsibility |
Source: own study based on: J.Majchrzak, Zarządzanie zmianami w organizacjach, AE Poznań 2016, s. 25.
The presented statement suggests that people participating in the change process carry out such analyzes. Going further this way of thinking, you can wonder whether the attitude of people to change was related to the category of ?interest&rdquo? It is very likely that this is the case and I think analyzing this problem would bring interesting answers.
Each changed organization, regardless of the nature of the change or the motive for its creation, creates new working conditions. Almost all modern organizations (teaching, healing, production, administrative, etc.) are treated as complex socio-technical systems. While the organizational or technical condition can be adapted to changes in the environment, for example by reorganizing the process or transferring technology, people are not so easily modified. Meanwhile, their indecision or inclination to such modification delays changes.
H.J. Leavitt?s model is the most general and also the most universal organization model in which people occupy high rank. The essence of his model are the feedback between people, the goals of the organization, the organizational structure and technical means.
Source: own study based on: J.B.Karski, Teoria organizacji i zarządzania w promocji zdrowia, CO i EOZ, Warszawa 2016, s. 21.
Figure 1: Organization as a social and technical system
Source: H.J.Leavitt: Appelied Organisational Change in Industry. W: Handbook of Organisation. G.March (red.) Chicago 2015, s. 160.
Figure 2: Organizational system according to H.J. Leavitt
People create their future image through their influence on individual elements of the organization. Man influences technical means deciding about the scope of their use. In turn, technical means force people to learn new skills in their use.
The human impact on the organizational structure, on the other hand, determines the formal solutions adopted in a specific organization and informal solutions, which in a temporary manner and depending on the need for rapid change condition some decision-making powers. The organizational structure shapes social relations, organizational roles of individual members of the organization. Against this background, we are dealing with a large human relationship with the change management process. It is worth emphasizing at this point that the starting point in these considerations is a single person or group of people who influence the success of reorganization plans.
As he writes M. Bratnicki, W. Dyduch and P. Zbierowski people are the key stakeholders of the organization. In addition, bearing in mind stakeholders, i.e. employees, investors, customers, suppliers, society, local communities, government, non-governmental organizations - you can sensibly create a category of change. They constitute the social capital of the organization.
This capital consists of six elements:
Social capital is the binder between the turbulent environment and the people who make up the organization. W. Dyduch presents the view that ?social capital fills the social space between people and has its source in interactions, thanks to which connections and networks are based on healthy foundations of cooperation. Like other forms of capital, it serves to increase the effectiveness of functioning, development of organizations and their changes.&rdquo Social capital is a guarantee of positive and effective cooperation.
C. Flora says that ?... enables cooperation between people within groups and organizations, affects the achievement of the common good and achieving common goals&rdquo. Scientific research on the issue of social capital proves its importance in the aspect of survival and development of an organization in a changing reality. M. Bratnicki confirms this statement, pointing to the significant impact of the organization?s social capital on undertaking innovative activities.
Having the above views in mind, we come to the conclusion that a changing organization must cultivate ?social capital&rdquo in which man is the highest value. Based on the words of D. Cohen and L. Prusak, one can add to the above statement that ?management in an organization is not only taking risk or innovation, but nurturing human capital and social capital&rdquo. .Organizations know that in order to make effective decisions about implementing changes, people need to be in the foreground. People are the ?capital&rdquo - an intangible asset of an organization [23]. The position of man in the entire changing economic process of our millennium has been recognized. Assumptions P.M.Senge`a in The Tifth Discipline. The Art. And Practice of The Learning Organization&rdquo admittedly, they refer to the concept of a learning organization, but in order to be able to realize its most ambitious aspirations and changes, the organization must implement, among others thought models - based on discovering the real reality about the organization and the people creating them [24]. According to P.M. Senge, the following disciplines should be learned:
The concept of ?human capital&rdquo assigns, as I have already mentioned, a special and priority role in managing a changing organization. It is ?. The motor and the heart of the company, without which its further development becomes impossible ?- he writes A. Sajkiewicz [25]. The ?motor? and ?heart? of every company - these are new roles that a man has to face in the face of change.
In the changing organizational conditions, the individual is forced to acquire new skills or adapt in such a way as to bring about a balance between the requirements of the new role and the expectations of the environment. According to the concept of a man?s relationship with the surrounding world and the ability to adapt to change, it is inferred from the correct assessment of the situation due to the system of values and possibilities. If the new situation is consistent with the human-recognized value system - it is accepted by him. If the assessment of changes is negative - a person tries to avoid them. Managing the process of change is the result of knowledge, creativity, innovation and creative thinking of people, and the future belongs to organizations in which it will follow the formula: human - value.
Belief is correct M. Croziera on three principles of organization development logic. It is: the principle of simplicity that the most effective instrument for facing a complex reality is the human mind; the principle of autonomy, which consists in the organization respecting the rights and needs of the individual and the principle of management by culture, which is the logical consequence of the first two principles [26].
Good preparation of employees for introducing changes - from the beginning of the process - is much less costly than overcoming their resistance afterwards [2].
Determining the need for change consists in identifying various dysfunctions in the implementation of the mission and goals of the organization (eg decrease in sales, product quality, increase in costs) and their causes [1]. Acquiring information on this subject requires the use of many sources. One of them, very valuable, are the employees themselves. As implementers of organizational processes equipped with knowledge, skills and experience, related to the key competences of the organization (deciding how to meet the needs and expectations of customers), they first notice the malfunctions occurring in their course, identify their causes.
By contacting customers, suppliers, other external stakeholders, they also acquire knowledge and information about the sources of their possible dissatisfaction with cooperation and the impact of other macro environmental factors (economic, legal, social) on this state. So they will learn additional causes of irregularities. This knowledge is very important for the organization designing changes. In addition, it is knowledge acquired at a low cost. Therefore, by including employees in the first stage of the cycle of changes, the organization obtains invaluable information about their nature and causes (occurring dysfunctions), while controlling the costs of obtaining them.
Employees, specialists competent in their fields, who know the organization and its specificity, should also be members of the change team. They can be both individuals and teams of employees with the right to submit their proposals regarding the scope (operational, tactical, strategic) and direction of changes. It is important that they are employees from various organizational units, with a diverse range of qualifications, including people with no knowledge of organizational change, whose ?fresh&rdquo view of the process can affect the innovation of solutions. Such selection of team members will ensure a comprehensive, interdisciplinary approach and will enable consideration of the requirements of individual areas of the improved unit. It will improve the flow of information and improve the organization in the long run [28]. Agents (promoters) of changes - regular employees with high organizational maturity, understanding the need for changes and ready to positively influence the attitudes and involvement of colleagues in the process may also appear in the team. Having the ability to build and integrate a team, uniting forces for the joint implementation of the adopted goals (changes).
Involving employees in the change process from the beginning of the process will affect their motivation and commitment, release energy to look for the most effective ways to develop variants of change. In addition, employees aware of the situation (reasons and the need for change), invited to participate and cooperate in the search for possible solutions, choosing the best among them and his implementations (real participation) will become allies of change, ready to convince the most resistant opponents to them.
Important in this process is not only that employees have access to information, be able to speak, advise, and be heard (passive participation). Cooperation (active participation) will be more important and effective when employees through discussions, suggestions, expressing objection, agreeing to proposed solutions, joint settlement with supervisors or independent decisions in certain areas of the planned transformations will have an actual impact on the decisions made. They will actively participate in them. Due to their competences, they should be able to speak not only about job positions (operational participation), but also organizational units (tactical) or the whole organization (strategic).
This approach confirms the participatory form of change management (power sharing) already recommended by Greiner, taking into account the participation of employees - in particular teams - in solving problems and in making decisions [1]. Indicates the significant impact of employees on the reorganization process, on the freshness, innovation of the proposals they submit, and generally on the key role of the social factor in this process. Refers to the needs and possibilities of creating diverse teams involved in change. For example, teams for improving organization, aiming at developing different variants of solutions and, in the event of implementation, ensuring their implementation. Support teams (for economic performance, education, etc.), whose role is to provide assistance to specialist teams dealing with individual directions of organization improvement. Finally, participation in teams for facilitating change, which play a special role - a catalyst accelerating the process of change in the entire enterprise [1].
Direct employee participation will effectively strengthen the exchange of information and views (direct communication), explicit and tacit knowledge between the members of these teams. It will stimulate their creativity to develop various solutions, evaluate them, choose and accept the one that will be implemented. It will lead to closer cooperation, shaping teamwork and positive synergism. It will help the team to be able to implement designed changes with commitment, participate in controlling their effects and monitoring the situation during and after implementation to initiate further improvements at the right moment (emerging crises or market opportunities).
At all stages of the organization improvement process, both individual and team management methods and techniques that take into account employee participation will be helpful. Individual techniques (e.g., expanding, enriching and designing work) will primarily increase employee motivation. Team techniques and methods (e.g. meeting method, management by information, management by goals, management by delegation of powers, quality circles) will contribute to better shaping various types of teams involved in reorganization and to develop by them the principles of cooperation and seeking ways of solving emerging problems, proposing improvements.
The change process must be supported by management. Toplevel managers primarily develop a vision of change, while midlevel managers transform it into concrete actions. They must cooperate with each other and with subordinates. They should become leaders of change, who by force of their influence will bring subordinates, influence their shaping attitudes and behaviors conducive to the process of change.
This requires superiors to adapt their management style to the situation, including the needs and expectations of employees, to stimulate their commitment, readiness to cooperate in the implementation of improvements or reorganization. Building mutual trust, without which the change process may fail. Expressing recognition to employees for their first successes and thus motivating them to further cooperation and involvement in an increasingly advanced change process. Change management is a test of managerial competence. Managers depend, among others, on how they shape the rules of employees? direct participation, to what extent they will enable them to participate in this process, how they will motivate them to get involved and cooperate.
Thanks to the cooperation and participation of employees in making decisions regarding the process of change, employees will be able to more easily overcome the inconvenience and difficulties resulting from new ways, methods of operation, new work organization and its conditions. Knowing the course of the process, by participating in it from the first to the last stage, they will understand the decisions taken, their causes, expected effects,conditions determining a specific choice. They will not have grounds for dissatisfaction (resistance), because they participated in these decisions themselves. On the contrary. Their positive attitude towards organizational changes will be shaped, which will bring benefits also in the future.
Organizational changes are a difficult and complex process. It concerns the living tissue of the organization, primarily the people working in it. It is important, therefore, that it is implemented in a way that will result in employees? right attitudes towards change, i.e. cooperation in their favor, not indifference or resistance. In order to gain an organization in employees of allies of change, change designers must ensure the proper conduct of the process and ensure the participation and involvement of all subordinates.
According to the author, the way to achieve this is direct employee participation, including them in the change process cycle from the first to the last stage, ensuring the possibility of cooperation and co-decision starting from the analysis of the situation, diagnosis of the need for change and its causes, by searching for and choosing a solution, its implementation, to controlling and monitoring the effects of change. This approach will increase the likelihood of success of the implemented change, shape the employees? competence in change management and the right attitudes towards them for the future [28].