Managing Change for Competitive Success

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Table of Contents

Personality
Change
A summary of the Findings
Recommendations for change
References

This paper explores two concepts that have been studied in due course; personality and change. The paper begins by defining the concepts and then goes ahead to provide a summary of them. In addition, the paper will give data outlining a problem related to one of the concepts. Moreover, the paper will give a summary of findings and offer recommendations for change where applicable.

Personality

Personality refers to consistent behavior patterns and intrapersonal processes originating within an individual” (Burger 2010, p. 4). Notice that there are two aspects to it. Part one is concerned with consistent patterns of behavior. These represent the individual differences. An important feature of personality is consistency. People can observe these consistent patterns of behavior across time and situations.

The second part is concerned with the intrapersonal processes. In contrast to interpersonal processes, which take place between people, intrapersonal processes take place within individuals. They include emotional, motivational and cognitive processes, and they determine how people react or feel.

The manner in which people use these processes and how they interact with individual differences determines the overall character of an individual. These consistent behavior patterns and intrapersonal processes originate within an individual. However, this does not mean that external factors do not affect an individual’s personality.

According to Myers-Briggs Type Indicator (MBTI) model, which rests on the personality theory of Carl Jung, personality assumes the following (Howard, P & Howard, J 2002): Personality hangs on four dimensional framework; scores of each dimension fall along a binomial distribution and the judger dimension is a key determinant of a person’s preferences.

On the other hand, the five factor model (FFM) or the big five model is based on experience and not theory. “FFM relies on the following: personality has five dimensions, scores of dimension fall along a normal distribution, personality is best described by individual traits rather than types, and the strength of the scores indicates preferences” (The Big Five 2012).

FFM has been widely accepted in the academic and psychology communities. It has been employed in team building and employee selection. Job analysis, customer service, management and leadership development, coaching and counseling; career development, conflict management and training design have all benefitted from FFM. Pro FFM model experts identified five correlated groups of behaviors, each of which exists along a continuum.

They are negative emotionality, openness, agreeableness, conscientiousness and extraversion. Negative emotionality determines an individual’s capability to withstand stress. Those who have negative emotionality experience many negative emotions and report less satisfaction with life.

They are reactive and lack resilience. Since they are susceptible to emotions and show discontent with life, individuals with negative emotionality end up as social scientists, academicians, or customer service professionals (Howard, P & Howard, J 2002). On the other end, those individuals without low, negative emotionality tend to be resilient and experience life on a more rational level than others. In addition, responsive individuals fall in the middle range of negative emotionality continuum.

Responsive individuals demonstrate a mix of resilient and reactive qualities. The extraversion factor describes one’s comfort level with relationships. Extraverts spend much of their time maintaining and enjoying many relationships. Extraverts tend to lead, talk and exert themselves physically more often than other people. Such people are usually friendly and outgoing. However, introverts have few relationships and spend a little time with them.

Most extroverts find themselves in arts, politics sales and social sciences. On the contrary, introverts take up managerial roles or end up as physical and natural scientists (Howard, P & Howard, J 2002). Between the extremes are ambiverts who move comfortably between social and solitary situations. Openness addresses one’s range of interests. Extremely open people (explorers) are fascinated by novelty and innovation.

Explorers describe themselves as more introspective and reflective than most people describe themselves. The individuals with explorer profile usually take roles in entrepreneurial, architectural, theoretical, physical and social fields (Howard, P & Howard, J 2002). Those who are less open have narrower interests, appear more conventional, and find comfort in the familiar. Such individuals are seen to be conservative.

They assume roles in management and applied science. Between explorers and preservers are moderators. Moderators find too much novelty tiresome and too much of the status quo boring. On the other hand, agreeableness refers to a persons’ propensity to differ with others. An adapter refers to a person who is easily agreeable. Individuals with adaptor profiles are usually found in professions like teaching, social work and psychology (Howard, P & Howard, J 2002).

At the extreme end, adaptors (tender minded) can become dependent personalities who lose their sense of self. Such people value harmony more than they prize having their say or their way.

Other hand, challengers focus more on their needs or norms and not on those of others. Challengers usually take roles in advertising and business management fields or the military (Howard, P & Howard, J 2002). Challengers (tough minded) can become antisocial, authoritarian, narcissistic or paranoid personalities who have lost their sense of feeling for others.

Moreover, conscientiousness refers to a number of goals that one focuses. A highly conscientiousness person is focused and purses fewer goals in a purposeful way. A highly focused person may end up being a workaholic. Such people serve as leaders and executives. A person with low conscientiousness pursues many goals in a spontaneous, scattered way. Flexibles tend to be less focused on goals and are more hedonistic.

Such individuals lack control over their impulses. They do not necessarily work less than focused people, but they direct less of their work to specific goals (Howard, P & Howard, J 2002).“The big five vocabulary enables people to communicate constructively about their personality differences” (Howard, P & Howard, J 2002, p. 34). The model offers a comprehensive source metaphor that celebrates the fullness of human personality.

Managers are expected to have a strong personality in order to cope up with work related stress and other responsibilities. The position of a manager in the present day comes with huge responsibilities and stress. Nowadays, managers are expected to produce results in spite of the challenges at hand.

Managers are supposed to devise solutions to challenges that keep on arising at the place of work. Such challenges may include limited budget, reassignment of staff, reorganization of units, withdrawal of finance, government policies, employees’ demands and unavailability of resources.

Change

“Change management means to plan, to initiate, to realize to reflect and to stabilize fundamental and far reaching processes” (Recklies 2012, p.1). Change management aims at short term and long term basis of effective changes of behavior patterns and abilities, in order to optimize processes and communication structures.

Thus, an integrative approach to the reorganizations is necessary. Change management is the strategy of planned and systematic change, which is achieved by the influence of the organizational structure, corporate culture and individual behavior; and requires the participation of employees.

“In the broader sense, change management is a theoretical concept, which is given to the organization from the outside” (change management 2012, p. 1). Therefore, “the objectives of change are developed from external advisors (change agents) whereas; the employees are involved on a limited scale with decision making and the conversion of the concept” (change management 2012, p. 1).

Balogun and Hailey (2002) argue that change is becoming a way of life for most organizations and managers. Studies done in 1980s, and 1990s indicate that many organizations have been undertaking many types of change including culture change, total quality management, business process re-engineering, and downsizing and delayering.

However, many change initiates have not been effective, and organizations are in the process of developing managers who can manage change with a lot of ease (Charan 2006). Managers require context sensitivity (Balogun and Hailey). Contest sensitivity is the ability to understand the context someone is working in and, it enables one to devise approaches to change that will be effective in that context.

Thus, successful change requires a context sensitive approach (Balogun and Hailey 2002). They ague that change can be effected using a framework called change kaleidoscope. The tool enables managers to have a rigorous analysis of the context, a consideration of a range of implementation options, a valuation of one’s own preferences, and how this limits the options to be considered and development of change judgment.

In order to design change plan, change implementers should use the organization’s context to guide the approach selected. Change kaleidoscope relies on the definition of contextual constraints and enablers. They are Time: the speed with which change is to be achieved. Scope: the extent of change required in terms of transformation and realignments, within the parts of the organization affected by the changes.

Preservation: the extent to which it is necessary to maintain continuity in certain practice. Diversity: the degree of diversity in terms of values, norms and attitudes among the groups of staff affected by the change. Capability: level of competence for managing change. Capacity: the amount of money available to invest in the change, human resource availability and managerial time. Readiness for change: the extent to which employees understand the need for the anticipated change.

Power: relies on the change initiator, implementer and other influential stakeholders. In addition, change kaleidoscope entails the definition of implementation options. This involves change type, change start point, change style, change target, change roles and change interventions. Balogun and Hailey (2002) encourage organizations seeking change to follow three steps. The organization should assess the contextual constraints and enablers, determine change parts and use contextual features to inform the choices to be taken.

Charan (2006) argues that in order for large corporations to achieve major and permanent changes in business performance, they must create a sustainable change in culture. “Understanding the contextual constraints and enablers is key to understanding the type of change an organization is able to undertake as opposed to the type of change it needs to undertake” (Balogun & Hailey 2002).

According to Kneer (2009), the implementation of change management takes place in seven steps. The first step involves the creation of consciousness for an urgent need for change by conducting a deeper analysis. The market and the competitive position are examined followed by an evaluation of the possible chances or risks for the business (Beer & Nohria 2000). The second step involves the development of visions, aims and strategy.

A team that handles this step should be competent enough, and have sufficient conviction and power to design the change. The compiled visions and strategies are communicated in the company during the third step. The change agents need to be cautious of their responsibility, and they should exemplify things. They should state clearly what employees are supposed to do. The fourth step involves subdividing the project into smaller subprojects.

If the subprojects are completed, employees will start to have a feeling of success. This positively supports the remaining processes. In the fifth step, it is important to align existing structures in the company to a modified business environment. It is advisable to allow employees to participate in the reorganization.

The sixth and seventh steps involve the establishment of the change management. This is accomplished through structures, appropriate training, of the employees via the new projects which keeps the changes process alive. The last step also involves ingraining the new behavior in the social standards and values. In order to achieve optimal results, the change process should be goal oriented. The reasons as to why the organization is undergoing change should be clearly stated.

The starting point should also be clearly defined. It should be specified how the success of the objectives is going to be measured qualitatively and quantitatively. Thus, proper measurement instruments should be put in place. The change process will succeed if it fully involves the employees. In fact, this will increase their motivation and enhance their identification with the company.

To achieve this, they should be involved in the analysis stage so that they can understand the background. In addition, employees should be adequately trained so that they can master all assigned tasks technically. Appropriate training can be essential in adjusting existing deficits, minimize the fear of the employees concerning new tasks and enhance the willingness for the change. In order to realize the success of the change process, both the management style and the organization should change.

Change processes present learning experiences and participants might be challenged, but not overstrained (Barger & Kirby 1995). Sufficient time should be given to employees to process individual work procedures. The implementers of the change process should be ready to encounter resistance to change by some employees. However, this can be minimized by engaging them fully in the change process (Pettigrew & Whipp 1991).

Therefore, to understand problems related to these concepts, the paper focuses on a scenario in which a manager aged 35 years, faces change related challenges. The manager is heading a mining company of Asian origin that has 5000 employees globally and is worth $10 billion. The company is semi private because the biggest shareholder is the ministry of economics. The company faces a challenge regarding exploration activity.

People within the company have differing options regarding the amount investment that should be allocated for exploration, development, production and asset acquisition. Initial investments had failed to produce expected results. The existing proportion of investment allocation aims at allocating 30% to the exploration activities.

Out of the 3O% one third goes to XYZ (home country)/domestic exploration, and the remaining is allocated to overseas exploration. 60% of the investment has been diverted to development activities and the remaining 10% finances production activities and asset acquisition.

A summary of the Findings

Action plan 1: to maintain exploration activities on the same level as allocated in the previous year which saves cash dividend to shareholders and stops concentrated investment in a single project.

The contents: It is same as the proportion of existing investment allocation; however, it takes some reduction of the amount of cash dividend to shareholders when compared with last year’s performance-based profit sharing.

The activity of shifting dividend from international exploration & production companies to shareholders is relatively acceptable. This is because of high risk business and using the cash coming from reduced dividend for exploration activities. In addition, the company does not seek to take more than 25% interest of any exploration activities.

Action plan 2: aims at shifting to domestic exploration activities and reducing international exploration activities while maintaining the same proportion of investment allocated in the previous year.

It is the same proportion of existing investment allocation; however, the investment allocation at domestic and international exploration activity is different. Based on the historical success rate, the domestic exploration activities are higher than international’s. Although the exploration activity is a gamble regardless of its location, the degree of domestic gamble and overseas gamble is different from probability point of view.

The company has a lot of domestic exploration experience. The company has a solid grasp of the geological data and geomorphologic features. Nonetheless, the scale of domestic oil and gas fields is smaller than the international’s scale because of geomorphologic features when compared with the Middle East and Oceania region. In view of the above circumstances, the degree of the basic risk of domestic and international exploration activity do not make much difference.

Action plan 3: The summary is to reduce 10% of overall exploration activities and to raise the 10% finance to international oil & gas assets acquisition.

The proportion of investment allocation is composed of 20% for exploration activity, 60% for development activity and 20% for production activity and asset acquisition. Basically, exploration activity is a gamble. Reducing 10% of exploration activity makes sense in order to shift investment to much reliable oil & gas asset acquisition.

This also contributes to the improvement of the company’s cash flow, making profits and collecting invested cash early for the next available investment in exploration activities. Recently, there have been a lot of asset acquisition opportunities mainly from companies in same industries, strategic business partners in different industries, XYZ government and investment banks.

The price of the oil & gas assets used in the production is used in calculating oil recoverable reserve, reserve-production ratio, and current market oil price. Usually, the profit coming directly from the acquired assets only is not big. However, there are synergetic effects through reducing operating costs, discounting insurance, procuring oil producing equipments and applying geological data efficiently to flush out more oil.

Recommendations for change

The organization should understand that in order to realize maximum benefits from the mining activities, there is a need for change. Therefore, to implement this change, the organization should follow the three steps postulated by Balogun and Hailey (2002). The organization should assess the contextual constraints and enablers, determine change parts and use contextual features to inform the choices to be taken.

References

Barger, J. & Kirby, K. 1995, The Challenge of Change in Organizations, Davis Black, California.

Beer, M. & Nohria, N. 2000, ‘Cracking the Code of Change’, Harvard Business Review Journal, Vol. 1 no. 23 p. 133-145.

Burger, J. 2010, Personality, Cengage Learning, Sydney.

Change Management2012. Web.

Charan 2006, ‘Home Depot’s Blue Print for Culture Change’, Harvard Business Review Journal, Vol. 1 no. 14, p. 61-70.

Balogun, J. and Hailey, V. 2002, ‘Devising Sensitive Approaches to Change: The Example of Glaxo Wellcome’, Long Range Planning Journal, Vol. 32, no. 24, p. 153-178.

Howard, P. and Howard, J. 2002, Buddy, Can You Paradigm? EBSCO, Massachusetts.

Kneer, C. 2009, Change Management: enhance the ability to survive. GRIN Verlag, Munich.

Pettigrew, M. & Whipp, R. 1991, Managing Change for Competitive Success, Oxford Press, Oxford.

Recklies, O. 2012, Managing Change: definition and phases in change processes. Web.

The Big Five 2012. Web.

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