Change Management

1. Change Management And Resistance to Change

2. 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.

3. 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

4. Motivation I Maslow’s Pyramid “Actualisation” Self Esteem Affiliation Security Physical

5. 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

6. 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

7. Self Esteem II • This is complicated! • If each dimension can be split into 5, say Good - OK - Average - Poor - Terrible • Then there are 55 = 625different conditions of ‘Self-Esteem’ • So not as easy as it sounds to use this to motivate

8. 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?

9. 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

10. Motivation II Hertzberg’s Hygiene Factors Hygiene FactorsMotivators Working Conditions Status Pay Advancement Job Security Recognition Supervision Responsibility Leadership Growth Personal relationships Work itself

11. 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

12. 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”

13. 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’

14. Motivators • These are issues to do with self and the work itself • Responsibility • Status • Advancement • Recognition • Theses are all dimensions of Self-Esteem

15. Other ‘Needs’ theories McLelland:Three needs theory Achievement - Power - Affiliation Alderfer: ERG Theory Existence - Relation - Growth Handy: E Theory Effort - Energy - Excitement - Expenditure

16. 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

17. 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!

18. McGregor Theory X ManagersTheory 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

19. 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

20. 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

21. 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

22. Empowerment • Rosbeth 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

23. 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)

24. 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

25. Summary • Six-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!