Technology Meets Psychology in Your Organization

1. Technology Meets Psychology in Your Organization Dahna Goldstein and Victoria M. Grady, PhD

2. Introductions Overview Organizational Manifestation of Change Challenges What to Do/Things to Think About Questions Agenda

3. Why this webinar? Technology and change Overview

4. Technology Comfort with old technology and processes � devil you know People Past behavior has direct effect on future behavior �Organizational memory� How does it affect me and my job? Elements of Technology Change

6. Emotions: People may get upset Anxiety Worry about jobs Worry about amount of work Fear As a result, rumors can start, have ripple effect What Happens During a Technology Change?

7. Understand that your organization is made up of people Change creates anxiety People want/need to: Understand why the change is occurring Understand how the change will impact them Feel involved Grieve the old technology or old way of doing things (good or bad) People Factors in Managing Change

8. Feel their anxiety is normal Have other people to talk to Feel supported See a clear leader Know what to expect Understand what�s happening People Want/Need To

10. We have talked about �PEOPLE� and �PEOPLE� factors But what about the WHY organizational change, specifically technology change, is so hard� Must first understand the WHY. Otherwise, we will continue to suffer the same fate as so many of our colleagues and competitors. Change is Hard �Industry experts claim that organizational change initiatives continue to experience a failure rate approaching 70%.� (Standish, 2009, IBM, 2008, Raps, 2004, Beer, 2003, Miller, 2002, HBR, 2000, Senge, 1999, Strebel, 1996, Kotter, 1995) �Industry experts claim that organizational change initiatives continue to experience a failure rate approaching 70%.� (Standish, 2009, IBM, 2008, Raps, 2004, Beer, 2003, Miller, 2002, HBR, 2000, Senge, 1999, Strebel, 1996, Kotter, 1995)

11. Consider: Do you �Lean� on objects? An alternate explanation to the �fear of�.� or �resistance to�.� Example Whatever it is that we are gaining may be fantastic from a productivity standpoint�.but the end result is unknown�that is the LOSS. Change is �LOSS� CHANGE may be that the individual is losing an object (tangible or intangible) they have grown accustomed �leaning on.� CHANGE may be that the individual is losing an object (tangible or intangible) they have grown accustomed �leaning on.� For Example, historically, you have �leaned on� your ABC Accounting System. Now, the Department and Technology Management at your company have located, purchased and are preparing to install a completely new accounting system. You have been briefed about the similarities and the differences. Installation day comes, you have the new software, it looks nothing like your old system or what the handout looked like from the training class. Panic ensues. The system you are accustomed to �leaning on� is now gone and you must adjust (no pain no gain) to the new system. CHANGE may be that the individual is losing an object (tangible or intangible) they have grown accustomed �leaning on.� CHANGE may be that the individual is losing an object (tangible or intangible) they have grown accustomed �leaning on.� For Example, historically, you have �leaned on� your ABC Accounting System. Now, the Department and Technology Management at your company have located, purchased and are preparing to install a completely new accounting system. You have been briefed about the similarities and the differences. Installation day comes, you have the new software, it looks nothing like your old system or what the handout looked like from the training class. Panic ensues. The system you are accustomed to �leaning on� is now gone and you must adjust (no pain no gain) to the new system.

12. Model of the Organizational LOE Technology Change causes a loss of stability which results in the development of a predictable and measurable set of symptoms within an organization. When a significant number of these symptoms are present simultaneously, an organizational loss of effectiveness will occur. (Grady, 2005) Technology Change causes a loss of stability which results in the development of a predictable and measurable set of symptoms within an organization. When a significant number of these symptoms are present simultaneously, an organizational loss of effectiveness will occur. (Grady, 2005)

13. Three of the primary organizational manifestations of individual psychological symptoms as result of change. Anxiety Motivation Conflict Symptoms as Organizational Behaviors The following are three of the primary organizational manifestations of the individual psychological symptoms that would predictably develop as the result of the introduction/implementation/integration of a technology and/or organizational change. Anxiety Motivation Conflict The following are three of the primary organizational manifestations of the individual psychological symptoms that would predictably develop as the result of the introduction/implementation/integration of a technology and/or organizational change. Anxiety Motivation Conflict

14. Increased stress or psychological strain is direct result. Organizational morale is a direct indicator Positive and negative outcomes of stressors. Example Dangerous/destructive stressors can be related specifically to perceived threat. Anxiety In and of itself, anxiety is neither functional nor dysfunctional. It is a keen state of readiness to do something that may or may not be appropriate in response to a threat that may or may not be perceived accurately.� (Miller, 2003) Increased stress or psychological strain is a direct result of heightened anxiety. Organizational morale is a direct indicator of psychological strain or stress. (Bliese and Britt, 2001) Psychologists generally agree that there are both positive and negative outcomes of stressors. For example, the introduction or implementation of new/different technology may ultimately be perceived to produce positive outcomes, however the intermediate stressors can produce initial negative effects that , if left unattended, can result in a less than optimal overall integration initiative. It should be noted that often the most dangerous/destructive organizational stressors are related specifically to perception or perceived threat of the organizational/technological change. In and of itself, anxiety is neither functional nor dysfunctional. It is a keen state of readiness to do something that may or may not be appropriate in response to a threat that may or may not be perceived accurately.� (Miller, 2003) Increased stress or psychological strain is a direct result of heightened anxiety. Organizational morale is a direct indicator of psychological strain or stress. (Bliese and Britt, 2001) Psychologists generally agree that there are both positive and negative outcomes of stressors. For example, the introduction or implementation of new/different technology may ultimately be perceived to produce positive outcomes, however the intermediate stressors can produce initial negative effects that , if left unattended, can result in a less than optimal overall integration initiative. It should be noted that often the most dangerous/destructive organizational stressors are related specifically to perception or perceived threat of the organizational/technological change.

15. Technology Change and� Expectancy Theory Equity Theory Maslow�s Hierarchy Self Determination Theory Motivation �Human beings can be proactive and engaged or, alternatively, passive and alienated, largely as a function of the social conditions in which they develop and function.� (Deci and Ryan, 2000) Technology Change AND�� Expectancy Theory The premise of Expectancy theory is that the strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness' of that outcome to the individual. (Robbins and Judge, 2007) Equity Theory Equity Theory states that individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequities. (Robbins and Judge, 2007) Maslow�s Hierarchy A hierarchy of five needs�physiological, safety, social, esteem, and self-actualization�exists such as each need is substantially satisfied, the next need becomes dominant. (Robbins and Judge, 2007) Self Determination Theory The basic tenets of self-determination theory focus on three �needs� that must be satisfied in order for the individual to remain sufficiently motivated to accomplish tasks. The needs are Competence, Relatedness, and Autonomy. In the absence of any one of these needs, based on the theory, individual motivation will decline. Organizational change is a threat to all three of the defined needs. (Deci and Ryan, 2000) �Human beings can be proactive and engaged or, alternatively, passive and alienated, largely as a function of the social conditions in which they develop and function.� (Deci and Ryan, 2000) Technology Change AND�� Expectancy Theory The premise of Expectancy theory is that the strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness' of that outcome to the individual. (Robbins and Judge, 2007) Equity Theory Equity Theory states that individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequities. (Robbins and Judge, 2007) Maslow�s Hierarchy A hierarchy of five needs�physiological, safety, social, esteem, and self-actualization�exists such as each need is substantially satisfied, the next need becomes dominant. (Robbins and Judge, 2007) Self Determination Theory The basic tenets of self-determination theory focus on three �needs� that must be satisfied in order for the individual to remain sufficiently motivated to accomplish tasks. The needs are Competence, Relatedness, and Autonomy. In the absence of any one of these needs, based on the theory, individual motivation will decline. Organizational change is a threat to all three of the defined needs. (Deci and Ryan, 2000)

16. Conflict is typically considered �bad� Conflict is normal How is it handled when it becomes negative? Different methods include: avoidance accommodation competition collaboration compromise Conflict Destructive conflicts often have a detrimental effect and hinder organizational development resulting in a loss of organizational control. (Virovere, et al, 2002) Conflict is typically considered �bad,� however, it is a normal part of the functioning of an organization. The area of concern with respect to its organizational manifestation is when conflict does become negative, or destructive, how it is handled. The literature describes different methods individuals have of coping with conflict. These include avoidance, accommodation, competition, collaboration, and compromise. (Blake and Mouton, 1964) Avoidance is most commonly associated with the integration of new technology initiatives. This action is consistent with the theoretical organizational reaction to the continuous adoption of technological initiatives that are perceived by the employees as unsolicited, inferior, or unnecessary. The result is organizational conflict driven by the attempt to avoid the proposed technological change. Destructive conflicts often have a detrimental effect and hinder organizational development resulting in a loss of organizational control. (Virovere, et al, 2002) Conflict is typically considered �bad,� however, it is a normal part of the functioning of an organization. The area of concern with respect to its organizational manifestation is when conflict does become negative, or destructive, how it is handled. The literature describes different methods individuals have of coping with conflict. These include avoidance, accommodation, competition, collaboration, and compromise. (Blake and Mouton, 1964) Avoidance is most commonly associated with the integration of new technology initiatives. This action is consistent with the theoretical organizational reaction to the continuous adoption of technological initiatives that are perceived by the employees as unsolicited, inferior, or unnecessary. The result is organizational conflict driven by the attempt to avoid the proposed technological change.

17. Avoidance is most commonly associated with new technology initiatives. Perception by staff of changes as unsolicited, inferior, or unnecessary. The result is organizational conflict driven by the attempt to avoid the proposed technological change. Conflict (continued)

18. What do Problems Look Like?

19. Decreased Motivation Decreased Productivity Decreased Morale Increased Conflict Increased Absenteeism Increased Turnover Organizational Manifestation of Change�..Going �..Wrong�..

20. Tie changes to mission Involve senior management Clear direction from top, even if change is initiated elsewhere in the org Set clear change leader Get org-wide buy-in Communicate, communicate, communicate Involve end users Support through the lifecycle of the change What to Do/Things to Try What will work for a given organization depends on the make up of individuals in the organization There isn�t a single solution These elements are things that tech change leaders can try to help create potential for higher success ratesWhat will work for a given organization depends on the make up of individuals in the organization There isn�t a single solution These elements are things that tech change leaders can try to help create potential for higher success rates

21. Questions?

22. Dahna Goldstein dahna@philantech.com Victoria M. Grady, PhD grady.victoria@verizon.net

23. Blake, R.R. and Mouton, J.S. The Managerial Grid. Houston: Gulf, 1964. Bliese, Paul D. and Britt, Thomas W., �Social Support, Group Consensus and Stressor-Strain Relationships: Social Context Matters,� Journal of Organizational Behavior, (June 2001), pp. 425-436. Deci, E. and Ryan R. (1985) Intrinsic Motivation and Self-determination in Human Behavior. New York : Plenum Press. Goldstein, Dahna. �Managing Technology Change.� In Managing Technology to Meet Your Mission, edited by Holly Ross, Katrin Verclas, and Alison Levine. San Francisco: Jossey-Bass (2009). Grady, Victoria M., Gleckel, Erikka A., and Grody, Erin R. �The Organizational Loss Of Effectiveness (LOE) Model And The LOE Index: A Quantitative Measurement Tool For Identifying Individual Symptomatic Response To Technological Change,� Integration Journal, June 2009. Grady, Victoria and Grady, James. �Winnicott�s Potential Space And Transitional Objects: Implications For The Organizational Change Process And Its Previously Defined Relationship To An Organizational Loss Of Effectiveness (LOE).� Journal of Organisational and Social Dynamics, Fall 2008. Grady, Victoria, �Studying the Effect of Loss of Stability on Organizational Behavior: A Perspective on Technological Change,� dissertation manuscript, The George Washington University, 2005. Miller, Jeffrey A., �Calming the Anxious Organization,� Employment Relations Today, (Winter 2003), pp. 11-18. Robbins, S. P. & Judge. T. A. Judge (2007) Organizational Behavior. Upper Saddle River, NJ: Pearson Education, Inc. Virovere, Anu, Kooskora, Mari, and Valler, Martin, �Conflict as a tool for Measuring Ethics at Workplace,� Journal of Business Ethics, Vol 39 (August 2002), pp. 75-81. References