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Effects of Poor Change Management History
1. Bordia. P., Restubog. D. L. S., Jimmieson. L.
N., & Irmer. E. B. (2011). Haunted by the past:
Effects of poor change management history on
employee attitudes and turnover. Group and
organization Management, 36(2), 191-222.
Presented By:
Syeda Hamna Ammar
Aadil Ijaz
PresentedTo:
Dr. Faisal Qadeer
2. Key Terms
Poor Change Management History
Poor Change Management History Beliefs
Trust
Job Satisfaction
Turnover
Cynicism about organizational change
Openness to organizational Change
3. Literature Gap
Pettigrew et al. (2001) noted that:
Organizational research has tended to ignore
time and history as important contextual
forces that influence the occurrence of
change in organizations.
They recommended that future research pay
greater attention to the role played by
organizational history in the change process.
4. Purpose of Research
To understand the role of change
management history in shaping employee
change related beliefs, attitude and
behavior.
5. Sociocognitive Approach
Adoption of sociocognitive approach:
It emphasizes the role of cognitive process in
explaining individual reactions to organizational
change events.
Based on this approach they propose that individual
experiences with poor change management will be
captured in belief structures that they refer to as the
poor change management history beliefs ( PCMH
Beliefs).
6. Poor Change
Management
History
PCMH-Beliefs
Trust in the
Organization
Job
Satisfaction
Turnover
Intentions
Voluntary
Turnover
Cynicism About
Organizational
Change
Openness to
Organizational
Change
+
+
_
THEORETICAL
FRAMEWORK
7. There is evidence that the amount of previous change has
consequences for change related attitudes.
In the past studies, change referred simply to the
occurrence of change and did not ask employees for an
evaluation of past change efforts (i.e., was the change well
managed?).
They propose that individual experiences of PCMH in an
organization will lead to enduring beliefs i.e., PCMH
beliefs and the development of these beliefs can be
explained theoretically through the schema perspective.
PCMH PCMH-Beliefs+
Schema
Schemas are psychological
manifestation of previous
experience and act as conceptual
frameworks that influence
subsequent perception and attitude
formation.
8. Trust at any given time is a consequence of past
experience with the trustee (Dirks & Ferrin, 2002).
Belief congruent information is easier to process and
people are motivated to maintain cognitive consistency
(McKinley et. al., 2000).
Therefore, PCMH beliefs will lead to greater attention
to….and processing of…information that suggests lack of
organizational ability, integrity, or benevolence, and in
turn undermines trust.
PCMH Beliefs
Trust in
Organization-
Cognitive consistency
A natural human tendency to seek
out stimuli that are consistent with
one’s belief and attitudes and to
censor or limit one’s exposure to
stimuli that are inconsistent with
beliefs.
9. Dirks and Ferrin found a strong positive relationship
between trust and organizational leadership and job
satisfaction across 34 studies.
The organization and its representatives influence
many aspects of the employee’s work environment.
With low trust in organization, an employee will be
unsure of whether his or her job-related interests will
be looked after by the organization. A lack of trust is
likely to result in lower job satisfaction.
Trust in
organization
Job Satisfaction+
10. Employee withdrawal…as a consequence of low
trust…can be interpreted in light of trust beliefs and
the willingness (or intention; Mayer et al., 1995) to
make oneself vulnerable to another party.
Kiefer (2005) found that lower trust arising from
organizational change led to employee withdrawal
(intention to quit and neglect of job duties).
Trust in
organization
Turnover
Intentions-
11. Job satisfaction has consistently been found to be
negatively related to turnover intentions (Bordia et
al., 2004b; Lum et al., 1998).
Most theoretical approaches to turnover note the
role of job dissatisfaction as an initiator of the
turnover process (Hom et al., 1992).
Therefore authors predict that job satisfaction will be
negatively related to turnover intentions.
Job Satisfaction Turnover Intentions-
12. Wanous et al., (2000) predicted that the amount of
successful change will be negatively related to
cynicism.
On the basis of this literature authors argue that
previous experience of poor change management will
lead to low levels of expectancy regarding the success
of current change programs.
Relationship between PCMH beliefs and cynicism can
also be explained by the need for cognitive
consistency (Dutton & Jackson, 1987; McKinley et
al., 2000).
PCMH Beliefs
Cynicism about
Organizational
Change+
13. CAOC involves pessimism about the successful
implementation of change and has a negative effect on
employee motivation (Wanous et al., 2000).
Based on organizational justice theory (greenberg &
Cropanzano, 2001):
Cynicism about
organizational
change
Openness to
change-
Procedural injustice
Distributive injustice
Reduce Openness to
change
14. Theoretically this relationship can be explained
by image violation in the unfolding model of
turnover (Harman et al., 2007).
Events in the organization ( such as
organizational change) can trigger a comparison
of:
Openness to
change
Turnover intentions-
NewWork Circumstances Desired goals and values
15. According to the planned behavior theory, intentions
represent a motivational force for the enactment of a
particular behavior (Ajzen, 1991; Armitage & Connor,
2001).
In the context of turnover, turnover intentions have
been found to be consistent predictors of actual
turnover (Tett & Meyer, 1993).
Turnover Intentions Actual turnover+
16. Finally, consistent with Lee and Mitchell’s (1994)
characterization of shocks, PCMH and the resulting
PCMH beliefs may force the employees:
To reassess their position in the organization
and
Cause them to exit from the organization.
PCMH-Beliefs ActualTurnover+
17. Methodology
Empirical approach is presented in two phases.
Phase I includes development of a measure and
validated it using actual events in the
organization. PCMH and PCMH- beliefs were
also related to trust and CAOC.
In Phase II they used the results of Phase I and
further extended them to test the whole model;
including openness to change, job satisfaction,
turnover intentions, and actual turnover.
18. Phase I
Sample and Procedures
Initial Sample 325
employees
Respondents 155
employees
Response Rate 47.69%
Age Band 30-39 years 45 % of
participants
Gender 66% male
Organizational
tenure
4.23 years
19. Measures
S
#
Variable Items/
Scale
Alpha Sample Item
1 Actual PCMH - -
2 PCMH beliefs 8 .86 In my experience, organizational change has
been managed well.
3 Organizational Trust
(Robbinson, 1996)
7 .90 My organization is not always honest and
truthful
4 OrganizationalChange
Cynicism
( Wanous et al. 1994)
8 .89 Most of the programs are supposed to solve
problems around here will not do much good.
Control variables : Age, Gender & Organizational tenure
19
20. Measurements Used
Confirmatory factor analyses (CFA) is conducted to establish the
construct independence among PCMH beliefs, CAOC &
Organizational Trust.
Several Fit Indices were used to assess the adequacy of the model,
namely
1. Chi- Square (x^2)
2. Comparative fit index (CFI)
3. Root Mean Square Error Approximation (RMSEA)
4. Standardize Root Mean Residual (SRMR)
Due to sample size constraints Path Analysis was also conducted.
22. Poor Change Management
History
Poor change
management history-
beliefs
Trust in the organization
Cynicism about
organizational change
.68 - .38
.41
Final path model with manifest variables for phase I ( the error terms for
trust and cynicism were allowed to correlate; all paths are significant at p
< .01)
Path Model For Phase I
23. Phase II
Sample and procedures
•Data were collected at two points in time.
•Survey kit consisted self-report questionnaire. Cover
letter outlining the goals of the study, voluntary
participation, and an assurance of confidentiality.
Initial sample 200 staff members
Respondents 124 staff members
Response Rate 62%
Male 53.2%
Female 44.4% (2.4% didn’t
reported their
gender)
Age Band 30-39 years (39% of
participants)
Organizational
tenure
3.14 years
24. S.# Measures Item/
scale
Alpha Sample itme
1 Actual PCMH - - -
2 PCMH-Beliefs - .79 -
3 Organizational
Trust
(Robinson 1996)
7 .90 -
4 Job satisfaction
( cammann et al.
1983)
3 .72 -
5 Turnover Intention
( Fried et al. 1996)
4 .89 I often seriously think about
resigning from my job.
25. 6 CAOC
(wanous et al.
1994)
8 .83 -
7 Openness to
change
(wanberg and
Banas 2000)
4 .86 I would consider myself open
to these changes
8 Actual turnover Measured after two years . 23 employees
had left the institution valountarily .
9 ControlVariables Gender, Age and Organizational tenure
26. Poor change
management
history
Poor change
management
History-beliefs
Trust in the
organization
Turnover intentions
Cynicism about
organizational
change
Openness to
organizational
change
Job satisfaction
.71
- .46
.46
.54
- .56
- .22
- .51
-.17
Final path model with manifest variables for phase ii( the error terms for
trust and cynicism were allowed to correlate; all paths are significant at p <
.05)
Path Model for Phase II
29. Limitations
Attitudinal variables were analyzed in a cross-
sectional design.
Utilization of socio cognitive approach to
examine the effects of history of change
management
Focus on discrete set of beliefs about poor
change management history.
Focusing individual level beliefs related to
change history
Research didn’t consider the impact of job-
market predictors of turnover
30. Future Directions
Develop the composition of the change history
beliefs.
Focus on multilevel perspective that takes into
account shared beliefs at the group or
departmental levels.
Future research should use a continuous scale to
measure PCMH.
A more fine-grained analysis of the PCMH-
turnover relationship.
Inclusion of Job market predictors of turnover or
individual aspirations.