Lesson 1 Org Change Class

2. WHAT TO EXPECT…
This course is designed to explore organizational development and change.
This is a topic that is very fluid therefore there is a great deal of reading is
required at the start of the class.
Weeks one to three will have considerable reading outside of the textbook.
Beginning with week four to week seven, you will have business cases to explore
at the start of each class related to the assigned reading.
Each case will require an analysis paper due at the end of the assigned week.

3. WHAT TO EXPECT…
For this week, review this lesson and begin reading…keep reading.
You have a three discussions for week one. Begin these discussions by
Wednesday.
I find this topic interesting and I hope you will enjoy learning it as well. Keep an
open mind and a willingness to explore and work and you will do great.
If you have any questions please contact me by email or phone. My contact
information is located in the course syllabus.

4. WHAT IS CHANGE?
Change is the process of introducing something that will transform a process,
means, or a way of doing.
Change can be dramatic such as the introduction of a new software system to
handle payroll for a company that employees 90,000 employees across six
nations or it can be simple like having the six employees in a local auto repair
shop initial their timecard each week.
The reason for the change is important.
Change should be done for a reason.
The change has to produce value…

5. WHY CHANGE?
Why Change? Why would someone want to change?
It is simple in scope: Change is to gain an edge.
Change works to gain something that will allow the organization to
thrive in someway. Typically this change is viewed as a means to
gain greater profitability. Therefore change can include anything
that can benefit the organization in some tangible way. It is change
to gain.

6. WHY CHANGE?
Several years ago a commercial ran that showed an office
settings typical in a larger corporation. An employee is
walking past rows of cubicles telling fellow employees that
his group has been able to shave $.10 off every
transaction and was handing out dimes to celebrate.
Several employees smiled but appeared unconcerned
and unappreciated by this accomplishment.

7. WHY CHANGE?
This employee walked on to the elevator and was soon
joined by the company CEO. The excited employee handed
the CEO a dime and said we are celebrating in IT. We
shaved a dime off of every transaction. The employee then
exited the elevator.
The CEO stares at the dime in disbelief and says “We do
over 10 million transactions a year!”
One dime a transaction saved the company 1.2 million a
year – “that’s a lot of dimes!”

8. WHY CHANGE?
Change has to have a level of value
for it to be sought after.
The value may not be apparent to
everyone involved and many times it
is not of real value to most employees.

9. WHY CHANGE?
A common phase used in discussions about change is that “People do not want
change!”
But is this true? Change happens to us and is around us all the time? Every year
on your birthday there is a change!
Typical changes people encounter are:
• Change in jobs.
• Change from single to married and in some cases back to single.
• Change in having children and children growing up.
• Change occurs all the time.
The issue is the value people place on the change.

10. WHY CHANGE?
Change can be illustrated through a company merger. Company A acquires
Company B.
At first this acquisition looks like: A + B = A B
Company A and Company B both still exist in reality
but not on paper. Company B does not exist any
longer. It is a part of Company A but not absorbed
into Company A. Not yet anyway…

11. WHY CHANGE?
Company A begins to produce change within Company B to merge elements of
Company B to look and act like Company A. This can be done in a process
depending on the size of the organizations in question.
In larger organizations the process can look like this: A + B = A + b1b2b3b4b5b6
Over time the b1b2b3b4b5b6 are “Changed” so that all that is left is A + B = A.

12. THE CHANGE VALUE
Only if people value the change will they seek or accept the change.
It is at this point we need to consider theory.
A short note on theory. Theory is important for it provides you with a means to
view things in multiple settings. Theory allows you to develop a means to
evaluate occurrences beyond one setting.
In relation to our study of Change, we begin with
“Expectancy Theory”

13. EXPECTANCY THEORY
Vroom (1964), who first presented the expectancy
theory, postulated that people will make choices
based on a desire to maximize pleasure and minimize
pain.

14. EXPECTANCY THEORY
Vroom established that valence-instrumentality-expectancy contribute to the
level of expectancy for an individual.
Look at it this way…
When deciding among options, individuals will select the option with the greatest
motivational force for them (MF = Motivational Force)
Motivational Force = valence x instrumentality x expectancy

15. EXPECTANCY THEORY
Watch this short video on Expectancy Theory produced by Alanis Business
Academy

16. EXPECTANCY THEORY
Valence is the expected satisfaction or value an individual believes will be the
outcome received rather than the actual value received from the outcome.
Instrumentality is defined as the reward that is the result of achieving the
performance goals.
Taken together valence and instrumentality produce expectancy which is the
degree that an individual such as an employee believes that a particular
outcome will emerge.

17. EXPECTANCY THEORY
Vroom expresses this theory as a formula of P=f (F x A), which states that
performance (P) is the result of the interaction of force (F) and ability (A). Force
(F) is the sum of valence-instrumentality-expectancy while ability (A) reflects the
individual’s potential to perform a task.
P=f (F x A)

18. EXPECTANCY THEORY
Work
Required
To achieve a
Expectancy: how confident you are
that if you put in the effort required
you will actually reach the goal.
The Final
Outcome
Valence: how much you really
the outcome.
Level of
Performance
Which should lead to
Instrumentality: how confident
you are that the goal really will
lead to the outcome.
Low motivation = you do not think you can do the work that is required (low expectancy)
+ you do not think you will get the outcome even if you do the required work (low instrumentality)
+ you do not really want the outcome that much (low valence for the outcome)
High motivation = you are confident you can do the work that is required (high expectancy)
+ you are confident that you will get the outcome if you do the work (high instrumentality)
+ you really want the outcome (high valence for the outcome)

19. EXPECTANCY THEORY
An individual’s effort to change their performance level to achieve a desired
outcome is based on a combination of four characteristics:
Abilities
Cognition
Traits
Role Perceptions
(These four characteristics will be explored later in this course.)
To summarize, expectancy theory provides a framework to perceive the level of
value an individual places on a change event.

20. EXPECTANCY THEORY
This value is based on a combination of
factors related to the employee’s
personality and ability as well as work
environmental factors.
In relation to change, expectancy theory
is understood as a motivational aspect
for the individual.
Career
Personal
Ability
Financial
Because you placed a level of value on something related to the new job.
People do not only view value in terms of financial rewards. Value is expressed
in various terms by each individual. The individual’s level of perceived need will
shape how they place value on various aspects related to the job and outside
the job.

21. EXPECTANCY THEORY
For an employer, this theory may be expressed in practical terms of linking
reward with job performance.
If an employee believes that an actual benefit is received from attending a
training event and transferring that knowledge, skill, or ability into a tangible
individual performance improvement or change, then the likelihood that transfer
will occur is improved.

22. EXPECTANCY THEORY
The same is true with the employee.
An employee will accept change if the employee believes the change will be in
their own best interest.
Question to consider: “You changed from one job to another job?” WHY? Why
change jobs?
Because you placed a level of value on something related to the new job.
People do not only view value in terms of financial rewards. Value is expressed
in various terms by each individual. The individual’s level of perceived need will
shape how they place value on various aspects related to the job and outside
the job.

23. VALUE
Here is an example…
Forty plus years ago a family moves outside of Dallas, Texas into a
neighborhood which had tracts of 2 to 4 acres of land – a little homestead. They
built, by themselves, a modest 1,200 foot ranch home. Neighbors also built
similar homes. Total cost in 1960’s dollars was $35,000.

24. VALUE
Move ahead to the mid 1990’s. The location of this neighborhood in relation to
Dallas grows. A developer begins to buy up the neighborhood. He adds a golf
course and a lake. Value grows in financial terms and the developer begins to
remove the older ranch homes and builds 12,000 square foot homes. The value
of these homes exceed $1 million each.
This continues until every house in this neighborhood is sold to this developer
but one.
Now this couple has raised their children and they in turn have left home and
started families and careers. This, now older couple, have had offers on their
home close to $500,000 but they will not sell.

25. VALUE
This older couple have placed a level of non-financial value on this home. They
value their memories of family and they truly enjoy their home.
They feel that one day they will have to move from their home due to death or
the inability to remain in their home due to health reasons.
They know very well the financial value of their home and have instructed their
adult children to sell this home upon their deaths and divide the money between
them in order to provide college educations for their many grandchildren and
great-grandchildren.
This is their level of value. In the workplace, employees are the same way…

26. VALUE
Employees do not all value money the same.
Job conditions, fellow employees, value of their own job performance and
related issues and conditions are all “values” individual employees’ maintain and
express in relation to their employment.
Many of you are working toward a college degree because you value something
a degree will provide you.

27. CULTURE
Change has to be understood in terms of the organization’s culture.
Culture impacts the change process
&
The change process impacts culture
You need to understand culture first before you can understand how to effect
change.
Theses concepts we will explore in the coming weeks.

28. NEXT STEPS
At this point read the paper: Organizational Culture. It will provide you a review
of culture in more detail.
Continue by reading the additional articles and chapter one in the text and
review the assigned videos.