Change Management

And

Resistance to Change

• To help Black-Belts to understand that people need motivating, what motivates them, and why theory helps us to better understand what to do in practice.

• These notes will help you get better input from others involved in the Six Sigma projects and ‘buy into’ the programme.

Resistance and Dynamic Equilibrium

For Change

Need to build

Innovation

Market forces

Competition

Trends

Fashion

Against change

Need to consolidate

Fear of change

Safety first

Stability

Tradition

Motivation I

Maslow’s Pyramid

Physical

Security

Affiliation

Self Esteem

“Actualisation”

• Each Higher level only motivates if the lower levels are satisfied.

• Once a level has been ‘satisfied’ it can no longer be used to motivate.

• Affiliation = Team - Club - Union - one of us!

• Self esteem is recognition

• The top three levels are all concerned with perception

Self Esteem

Actually 4 dimensions

•My perception of myself

•My perception of how others see me

•How others actually see me

•How I am in reality

Self Esteem II

• This is complicated!

• If each dimension can be split into 5, say Good - OK - Average - Poor - Terrible

• Then there are 55 = 625 different conditions of ‘Self-Esteem’

• So not as easy as it sounds to use this to motivate

Self Esteem III

Example:

Steve McQueen - a Famous American Actor

He was good

Others thought he was good

he could see others thought he was Good

But he thought that he was sub-standard

Can you think of others?

Self Esteem IV

Supposing that you think that a person is good

And he thinks he is Good

And he is Good

You still need to tell him!

Or else one dimension of his self-esteem can be damaged

Motivation IIHertzberg’s Hygiene Factors

Hygiene Factors Motivators

Working Conditions Status

Pay Advancement

Job Security Recognition

Supervision Responsibility

Leadership Growth

Personal relationships Work itself

Hygiene Factors:

Cannot be used to motivate

Can de-motivate

Have to be ‘cleaned up’ before motivation can begin

Motivators:

Cannot work if hygiene factors not cleaned up

Can be used to motivate

Hygiene Factors

Pay

• As long as a person has ‘enough’ they can be motivated

• Charles Dickens - Top writer and Social reformer in the UK during 19th Century - e.g Oliver Twist - A Christmas Carol (Scrooge) - quote from Uriah Heep -

– “Annual income 20 shillings - Annual expenses 19.5 Shillings - Bliss”

– “Annual income 19.5 shillings - Annual expenses 20 Shillings - Misery”

Hygiene Factors II

Leadership and Personal Relations

Good leadership is not a motivator in itself

Bad leadership can be de-motivational

Poor relationships are de-motivational

Good relationships allow motivation to ‘kick-in’

Motivators

These are issues to do with self and the work itself

• Responsibility

• Status

• Advancement

• Recognition

Theses are all dimensions of Self-Esteem

Other ‘Needs’ theories

McLelland: Three needs theory

Achievement - Power - Affiliation

Alderfer: ERG Theory

Existence - Relation - Growth

Handy: E Theory

Effort - Energy - Excitement - Expenditure

Vroom’s Expectancy Model

An individual is subject to their own perception of reality - still used today - only ‘good’ model?

Probability of success

Decision

Value of reward if success

Bounded Rationality

Herbert Simon (Nobel Prize)

Decision can only be based on actual knowledge - so person is bounded by what they know.

Hence communication empowers!

McGregor

Theory X Managers Theory Y Managers

People don’t like work People like work

Do need to be forced Don’t

Not ambitious Ambitious

Don’t care about company Do care

Won’t make decisions Make decisions

Undisciplined Disciplined

Likert“Good managers form teams”

4 types of manager

Orientation Type Assessment Results

Task Based Authoritative Poor Big staff

Benevolent Fair Turnover

Consultative Good Up-down Communication

People based Participative Excellent Up - Down -Lateral Communication

Effective Organisations

Susan Jones:

• People are a resource not a cost

• Success depends upon treatment of people

• Quality control about people not products

• Collaboration is good

Mintzberg

Discovered in 1970s that:

• Strategy is not developed at ‘the top’ of a company

• Drucker found this in 1950s

• Lindblom in the 1960s

• So strategy ‘emerges’ from the bottom

EmpowermentRosbeth Kantor

• People should be given the authority to make decisions that effect their own job outputs - empowerment

• People make good decisions if encouraged

• So give then the tools to make better ones?

• Leads to Six Sigma ideas

Structure - Culture

Burns & Stalker:

• It takes time to change - depends on culture

• 90% of an organisation is ‘hidden’ like an iceberg and is the ‘informal’ part of a company

• So give it time - some large companies change slowly

• Flatter structures work best - so get closer to the ‘bottom’ of the company (fits Mintzberg’s ideas)

Encouraging Change

• To convince people to change they must be engaged in the decisions - empowered

• “Collaborative not Authoritative”

• People have good ideas - use them

• Theory Y shows that they really care

• They want the esteem - engage them

• Make them the force for change

SummarySix-Sigma works because:

• People are ‘engaged’ within their own function

• They collect data and make decisions - empowerment

• They work in groups - affiliation - communication

• They gain responsibility - respect - esteem

• They make a real difference - are valued - esteem

• It also helps companies to make a bigger profit!