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  • 1. CHANGE AGENTS, NETWORKS, AND INSTITUTIONS: A CONTINGENCY THEORY OF ORGANIZATIONAL Paper Review by Akshay S. Bhat, XLRI CHANGE Academy of Management Journal 2012, Vol. 55, No. 2, 381–398.1/24/2013 Akshay S Bhat, XLRI Jamshedpur 1
  • 2. Abstract Development of a Structural holes aid contingency theory more divergent for how structural changes, Hinder closure in a Less divergent network 68 organizational change initiatives terms of the extent undertaken in the to which an actor’s United Kingdom’s network contacts National Health are connected to Service were one another, analyzed affects the initiation and adoption of change in organizations1/24/2013 Akshay S Bhat, XLRI Jamshedpur 2
  • 3. IntroductionPolitical Nature of Organizations Organizational Changes require premeditated changes Change Implementation  Social Influence Exercise Change : attitude/behaviour of one due to acts of another Studied : challenges of Change Not Studied : Characteristics of Implementation Change Implementation affect In Organizations 1/24/2013 Akshay S Bhat, XLRI Jamshedpur 3
  • 4. Organizational Change - DOC• One dimension of variation : Extent to which they break with existing institutions• Existing Institutions are defined as patterns that taken for granted actors perceive them as the only possible ways of acting and organizing• Divergent Organizational Changes : Move away from the status quo (very challenging)• Iconoclastic“They require change agents to distance themselves from theirexisting institutions and persuade other organization members toadopt practices that not only are new, but also break with thenorms of their institutional environnent (Battilana, Leca, &Boxenbaum,2009; Greenwood & Hinings, 1996; Kellogg,2011)”1/24/2013 Akshay S Bhat, XLRI Jamshedpur 4
  • 5. Article Need• Examinations of conditions• Change agents are able to influence other organization members• For adoptions of changes with different degrees of divergence from the institutional status quo• Key resource : Informal Network“we focus on how change agents’ positions insuch networks affect their success in initiatingand implementing organizational change”1/24/2013 Akshay S Bhat, XLRI Jamshedpur 5
  • 6. Network Research• Structural Closure (degree to which an actors network contacts are connected to on another)• SC has important implications for – Generating Novel Ideas – Exercising Social Influence• High SC : More cohesiveness• Low SC : Creation of structural holes and brokerage potential• Higher Structural Holes more novel ideas• But studies contradict : Whether High or Low network closure favour change adoption1/24/2013 Akshay S Bhat, XLRI Jamshedpur 6
  • 7. Illustration1/24/2013 Akshay S Bhat, XLRI Jamshedpur 7
  • 8. Motivation• Reconcile findings by developing a contingency theory• Will examine the role of network closure in the initiation and adoption of Organizational Change1/24/2013 Akshay S Bhat, XLRI Jamshedpur 8
  • 9. Network Closure and Divergent Organizational Change• In order to survive, organizations must convince the public of their legitimacy (Meyer & Rowan, 1977) by conforming, at least in appearance, to the prevailing institutions that define how things are done in their environment• Forces them to adopt a set of practices• Organizations facing same institutional pressures tend to adopt similar practices• Motivation exists to adopt changes that do not affect the organizations alignment with existing institutions• Not all changes will be convergent with the status quo• The variability in the degree of divergence of organizational changes poses two questions: (1) what accounts for the likelihood that an organization member will initiate a change that diverges from the institutional status quo and (2) what explains the ability of a change agent to persuade other organization members to adopt such a change.1/24/2013 Akshay S Bhat, XLRI Jamshedpur 9
  • 10. Network Closure and Divergent Organizational Change Network Studies have focused on the Positions should And position in the social change agents formal position in affect the ability networks the initiation of divergent change of the individual to • Initiate divergent changes • Persuade others1/24/2013 Akshay S Bhat, XLRI Jamshedpur 10
  • 11. Network Closure and Divergent Organizational Change• Divergent Schools of thought promulgate the there exists a –ve influence between network closure and generation of new ideas• Occupying a hole rich network : non redundant information, more creative ideas“creativity is more likely to be engendered byexposure to non-redundant than to repetitiousinformation. As for normative pressure, networkcohesion not only limits the amount of novelinformation that reaches actors, but also pressuresthem to conform to the modus operandi and normsof the social groups AkshaywhichJamshedpur are embedded”1/24/2013 in S Bhat, XLRI they 11
  • 12. And therefore Hypothesis 11/24/2013 Akshay S Bhat, XLRI Jamshedpur 12
  • 13. Network Closure and Divergent Organizational Change• Degree of closure affects the adoption of organizational changes• Brokerage opportunities may aid adaptive implementation : Ability to carry out projects and take advantage of opportunities from the ability to detect opportunities• But it may help change initiation (incoming benefits) rather than change adoption (outgoing benefits) #Structural Holes• Benefits can then be classified as structural reach and tailoring• Reach concerns a change agent’s social contact with the constituencies that a change project would affect, information about the needs and wants of these constituencies, and information about how best to communicate how the project will benefit them.• Tailoring refers to a change agent’s control over when and how to use available information to persuade diverse audiences to mobilize their resources in support of a change project.• Being the only connection among otherwise disconnected others, brokers can tailor their use of information and their image in accordance with each network contact’s preferences and requirements1/24/2013 Akshay S Bhat, XLRI Jamshedpur 13
  • 14. Network Closure and Divergent Organizational Change• Refer page 383 ~ 384 (Last para to first para)• Organizations are political arenas• Not only imp to decide who but when and how are also important aspects concerning involvement1/24/2013 Akshay S Bhat, XLRI Jamshedpur 14
  • 15. Hypothesis 2. The more a change diverges from the institutional status quo, the more closure in a change agent’s network of contacts diminishes the likelihood of change adoption.1/24/2013 Akshay S Bhat, XLRI Jamshedpur 15
  • 16. Methodology• Quantitative and Qualitative Study• 68 Change initiatives in UK’s NHS• 600 Organizations – Administrative Units – Primary Care Service – Secondary Care Service • Aim of NHS was to provide free health care• NHS was highly institutionalized• Professional groups role division1/24/2013 Akshay S Bhat, XLRI Jamshedpur 16
  • 17. Sample• Focal point of study was variability in divergence and adoption of organizational change initiatives, population germane to the study was self appointed change agents• Self driven and motivated actors• 68 clinical managers who initiated and attempted to implement change initiatives out of 95 (27 chose not to respond)• 35~65 yr old, mid to top management positions• Unpaired t tests were to control for potential non response bias1/24/2013 Akshay S Bhat, XLRI Jamshedpur 17
  • 18. Procedure• Longitudinal study for 12 months which focused on collecting demographic characteristics, formal positions, professional trajectories and social networks of change agents• 20~40 mins taken twice, gap 12 months• Peer verification1/24/2013 Akshay S Bhat, XLRI Jamshedpur 18
  • 19. Dependent and Independent Variables• Will be explained on the blackboard1/24/2013 Akshay S Bhat, XLRI Jamshedpur 19
  • 20. Results• Will be explained on the blackboard1/24/2013 Akshay S Bhat, XLRI Jamshedpur 20
  • 21. Contributions• Degree of variation from the status quo has impacts on adoption of change initiatives• Synthesis of the two anti-theism schools of thought• Articulated properly• Advanced body of work on social networks1/24/2013 Akshay S Bhat, XLRI Jamshedpur 21
  • 22. Drawbacks• Ego network• Time structure• Kotter not included• Transformation of organizations is not covered1/24/2013 Akshay S Bhat, XLRI Jamshedpur 22