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Emotional balancing of organizational continuity and radical change the contribution of middle managers

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Based on a three-year inductive field study of an attempt at radical change in a large firm, I show how middle managers displayed two seemingly opposing emotion-management patterns that facilitated beneficial adaptation for their work groups: (1) emotionally committing to personally championed change projects and (2) attending to recipients' emotions. Low emotional commitment to change led to organizational inertia, whereas high commitment to change with little attending to recipients' emotions led to chaos. The enactment of both patterns constituted emotional balancing and facilitated organizational adaptation: change, continuity in providing quality in customer service, and developing new knowledge and skills

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http://asq.sagepub.com/ Quarterly Administrative Science http://asq.sagepub.com/content/47/1/31 The online version of this article can be found at: DOI: 10.2307/3094890 2002 47: 31Administrative Science Quarterly Quy Nguyen Huy Contribution of Middle Managers Emotional Balancing of Organizational Continuity and Radical Change: The Published by: http://www.sagepublications.com On behalf of: Samuel Curtis Johnson Graduate School of Management at Cornell University can be found at:Administrative Science QuarterlyAdditional services and information for http://asq.sagepub.com/cgi/alertsEmail Alerts: http://asq.sagepub.com/subscriptionsSubscriptions: http://www.sagepub.com/journalsReprints.navReprints: http://www.sagepub.com/journalsPermissions.navPermissions: http://asq.sagepub.com/content/47/1/31.refs.htmlCitations: What is This? - Mar 1, 2002Version of Record>> at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
EmotionalBalancingof Organizational ContinuityandRadical Change:The Contributionof Middle Managers Quy Nguyen Huy INSEAD ? 2002 byCornellUniversity. 0001-8392/02/4701-0031/$3.00. Specialthanksgo to Joe Poracforhis constructivesuggestionsandcontinuous encouragement,whichhelpedme persist indevelopingthis paper,andto Linda Johansonforherthoughtfuleditorial assistance.Appreciationalsogoes to the ASQanonymousreviewers,Reinhard Angelmar,MiguelBrendl,Christiane Demers,YvesDoz,NicolaDragonetti, JavierGimeno,AnnLangley,Henry Mintzberg,PauloProchno,SusanSchnei- der,KenSmith,VeroniqueTran,LukVan Wassenhove,FrancesWestley,Christo- pherZott,andthe SocialSciences Human ResearchCouncilof Canada. Based on a three-year inductive field study of an attempt at radicalchange in a large firm, Ishow how middle man- agers displayed two seemingly opposing emotion-man- agement patterns that facilitated beneficial adaptation for their work groups: (1) emotionally committing to person- ally championed change projects and (2) attending to recipients' emotions. Low emotional commitment to change led to organizational inertia,whereas high com- mitment to change with little attending to recipients' emotions led to chaos. The enactment of both patterns constituted emotional balancing and facilitated organiza- tional adaptation: change, continuity in providing quality in customer service, and developing new knowledge and skills.* Competitivepressures caused by globalization,deregulation, anddiscontinuoustechnologicalchanges seem to have forced manyorganizationsintoconsideringradicalchange as a way of survivingandgrowing.A radicalchange is a qualita- tive alterationof an organization'srulesof organizing-the fundamentalrulesthat members use to interactcognitively and behaviorallywith the worldaroundthem (Millerand Friesen,1984; Greenwoodand Hinings,1996). Radical changes may be infrequentinorganizationallife, butthey are consequentialto an organization'slifechances: realizingradi- cal change is difficult,anddisappointmentsand mortality risksare significant(Singh,House, andTucker,1986; Ham- brickand D'Aveni,1988). Whileradicalchange seems at times necessary fororganiza- tionaladaptation,bothcontinuityandchange aretypically simultaneouslypresent inan organizationand may even be necessary for its continuousadaptationoverthe longterm (e.g., Brownand Eisenhardt,1997; Leanaand Barry,2000). Organizationspursuechange to enhance theircompetitive positionsandto grow.Atthe same time, they seek to sus- taintheircompetitiveadvantageby reducinguncertaintyand securingcontinuityinexploitingtheirresources. Furthermore, althoughorganizationsmayat times need to transformthem- selves rapidlyto meet new institutionaldemands, such as deregulationandglobalcompetition,they typicallyhave to maintainoperationalcontinuityto provideservices to cus- tomers, preserve institutionallegitimacy,and secure the resources to fundcostly changes (Oliver,1991). Although much researchhas been done on radicalchange, littlehas been done on maintainingcontinuityduringsuch change, a task thatgenerallyfallsto middlemanagers,who must also implementchange. Thistension between continuityand change also exists on the individuallevel. Employeesseek predictablerelationships, dependableresources, andconsistency inbehaviorandthink- ing,while simultaneouslyseeking new stimulationand per- sonal development. Individualsare more likelyto joincollec- tive action,such as implementingchange, when there is trust,support,ororganizationalidentification(LeanaandVan Buren,1999). Partof the continuityand change tradeoffthus involvesmaintainingthe emotionalbalanceof individualsin the companyandattendingto emotion-managementactivi- ties (Staw,Sutton,and Pelled, 1994; Huy,1999; Barteland 31/Administrative Science Quarterly, 47 (2002): 31-69 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
Saavedra,2000) so thatemployees continueto be productive duringradicalchange. Thisstudyexplores how middleman- agers do this by managingthe emotionalstates of their employees ina radicalchange context, a rolethatwould not be predictedbythe literatureon radicalchange. Middlemanagementhas often been singledout as the pri- marylocus for resistanceto radicalchange (Biggart,1977; Miles, 1997),even thoughthe literatureon middlemanagers has documentedtheirproactivecontributionto organizational innovationinincremental-changecontexts. Insuch an envi- ronment,middlemanagersare motivatedto act underfamil- iarincentivesandstructurallypredesignedrewardsystems (e.g., Nutt,1987; Uyterhoeven,1989;Westley, 1990; Floyd and Lane,2000). Yet,inplannedradicalchange, middleman- agement's contributionsare seen as muchweaker.The litera- turetends to de-emphasizethe roleof middlemanagersand to portraythem ina relativelyself-effacingroleas compared with executives. Middlemanagershave been portrayedas de-energizedandemotionallystrickeninthe face of the over- whelmingpoweranddriveof turnaroundexecutives (Noer, 1993; O'Neilland Lenn,1995).Tushmanand Romanelli (1985: 173-180) contendedthat "onlyexecutive leadership can mediatebetween forces forconvergenceandforces for change"and "implementthe set of discontinuouschanges" inradicalchange, whereas middlemanagement"interpolates structuresandsystems" inincremental-changecontexts. Most normativemodels of strategytend to accordmiddle managementa supportingroleat best (Shrivastava,1986); executives areadvisedto reduceequivocalnessso that mid- dle managerscan act on clearinstructions.Conventionalwis- dom suggests that middlemanagerstend to attenuatethe pace and magnitudeof the quantumorganizationallearning requiredina radicalchange (FloydandWoolridge,1996). Executivesview middlemanagersas partof the inertialsys- tems and barriersto change thatneed to be co-opted,side- lined,ordisposed of, ifattempts at co-optationfail(Biggart, 1977;TichyandSherman,1994). Suchviews overlookthe rolethat middlemanagersmay playinmaintainingcontinuity duringradicalchange. Fundamentalchange inpersonnel,strategy,organizational identity,orestablishedworkrolesand interestsoften triggers intense emotions (Bartunek,1984). Emotionsinturnaffect how differentgroupsinterpreta proposedchange and how they behave. Howorganizationsattendto a richrangeof employees' emotions couldfacilitateor hinderthe progress of ambitiouschange (Huy,1999). Butthere has been little systematic empiricalresearchon the interactionof multiple groupsduringradicalchange (fora review,see Rajagopalan and Spreitzer,1997)oron how managersdealwiththe emo- tions thatthis kindof change generates. Middlemanagers are structurallycloser to theiremployees andso are likelyto be moreattunedto theirsubordinates'emotionalneeds. Comparedwith executives caughtup inmanyexternal demands, middlemanagersare likelyto have moretime to interactwiththeiremployees. Thissuggests thatmiddle 32/ASQ, March 2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
Emotional Balancing managerscouldbe key lociforemotion managementduring change. Ihave used groundedresearchto explorehow middleman- agers mightfacilitateor inhibitchange by managingor mis- managingthe emotions of theiremployees. Relyingon the findingsof a three-yearfieldstudy of a largefirmundergoing radicalchange and byfocusing on projects,Ibuilda theoryby describinghow middlemanagersfacilitatedorganizational adaptationthrougha juxtapositionof emotion-management activities.Icallthis theoryemotionalbalancing.Emotional balancingrefersto a group-levelprocess involvingthe juxta- positionof emotion-relatedactivitiesintendedto drivechange andto inducecontinuityina groupof people. Differentindi- vidualscan performseparate activitieswithouta common goal and producean aggregatedeffect. Such a dynamicbal- ancingprocess does not assume the existence or practicality of achievingan optimalemotionalbalance.Emotionalbalanc- ingmay representa partialsolutionto the difficultiesof realiz- ing radicalchange because itfacilitatesorganizationadapta- tion:too manychange actions withoutregardto continuity couldcreate organizationalchaos, while the opposite could leadto inertia(Sastry,1997). Bothextremes leadto underper- formance. Figure1. A model of emotional balancing duringradicalchange. Emotional commitment to change projects t Middle managers' EMOTIONAL CHANGEPROJECT emotional balancing STATES - GROUPOUTCOMES Attendingto recipients' emotions Figure1 shows the theoreticalmodel thatwas inductively derivedfrommy data. Ipresent it here as an interpretive frameworkto organizethe presentationof the conceptual foundationsas well as the empiricalfindings.Verybriefly,to generate the emotionalenergy thatfuels the pursuitof their change projects,middlemanagersas change agents have to strivecontinuouslyto managetheirown emotions associated with change. Tomaintainoperationalcontinuityina radical change context, recipients'emotions also have to be careful- ly managed.These two types of behaviorcreate emotional states thatthen affect the outcome of the change project. EMOTIONMANAGEMENTINRADICALCHANGE A reviewof the literatureon emotions gives us some under- standingof how they may be importantin radicalchange as 33/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
regulatorsof behavior.Emotionsarethe organizedpsychobio- logicalresponses linkingphysiological,cognitive,and motiva- tionalsystems (Saloveyand Mayer,1990).Althoughconcepts such as emotions, mood, affect, andfeelings are distinct(cf. Ekmanand Davidson,1994),drawingout the subtlerdiffer- ences amongthem does not seem criticalforthe theoretical aims of this paper.Igenerallyuse the termemotion, since the pressures of radicalchange often intensifyaffective states anddirectthem towardspecific objects, whichdistin- guishes emotionfrommoregeneralizedmoods (Barteland Saavedra,2000). Emotionalintensitydepends on the relationshipbetween an event anda person'sframeof reference,whichdetermines the subjectivemeaningof the event (Frijda,1988). Change andcontinuityare subjective,relativeconcepts that referto differentialratesof change (Sztompka,1993). Continuity refersto relativelypredictablechanges, as perceivedby those who are affected bythem, thatcan be forecast by inferencefrompast patterns.Forinstance,people share cer- tainexpectationsaboutfuturechanges intheirgroup'scom- positionandwork(e.g., employees age andretire,equipment graduallybecomes obsolete). Radicalchange is discontinuous and unpredictablemodificationinstates overtwo separate instantsof time as subjectivelyperceivedbythe people affected (Fordand Ford,1995),andthis elicits intense emo- tions. Emotionsare inherentto change inthatthey are arousednot by the presence of favorableor unfavorableconditionsbutby actualor expected changes inthese conditions(Frijda,1988). Neurologicalresearchhas establishedthatemotions confer flexibilityby enablingpeople to reorderprioritiesas situations change, allowthem to take actionsthey believe willenhance theirchances to surviveandflourish,andenablethem to set long-termgoals, especiallywhen choices involveincomplete dataor incommensuratealternatives(Damasio,1994). Emo- tions help people to makea leapof faithintothe unknown (Zajonc,1980;Westen, 1985). Cognitionandemotionare closely intertwinedinasmuchas cognitiveappraisalsare often necessary to arouse emotion (CloreandOrtony,2000). Lazarus's(1991, 1993)emotionthe- orysuggests thatpeople go througha two-stage appraisal process. Throughprimaryappraisal,they evaluatethe signifi- cance of a new event inrelationto theirown goals andcon- cerns. Ifthey appraisethe potentialconsequence as benefi- cial,pleasantfeelings arearoused.Theyexperience unpleasantfeelings ifthey appraisethe consequence as potentiallyharmful.Emotionscan at times leadto paralysis because of fear,butthey often generate a change inreadi- ness to act thatpreparespeople to takeaction(Frijda,1996). Emotionsfirstserve as relevancedetectors, focusing peo- ple's attentionon change events, then as motivatorsof action.A potentialactionresponse is determinedthrough secondaryappraisal,whereby people evaluatetheirown capabilitiesfordealingwith a relevantchange event. Ifthey believe they have adequate resourcesto dealwiththe new event, they are more likelyto respondactively.Otherwise, 34/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
Emotional Balancing they mayadopta passive/avoidanceapproach,which is sometimes interpretedas a formof resistance to change. Atthe riskof oversimplifying,Iuse the "circumplex"model of emotions shown infigure2 to explorethe wide rangeof emotions that people mayexperience duringradicalchange Figure2. Circumplexmodel of emotions (Larsenand Diner,1992). Stimulated, surprised HIGHACTIVATION Enthusiastic Fearful Anxious Distressed Sad Gloomy Unpleasant Disappointed Shameful Dejected Fatigued Excited Happy Pleased Pleasant Calm / Comforted Relaxed LOWACTIVATION Quiet,tranquil 1 Althoughthere is debateaboutwhether everyoctantof the circleshouldbe equal- lyspaced45 degrees apartorwhether the circleshouldbe anellipsebecause of the higherinfluenceof the valenceeffect (cf.WatsonandTellegen,1999;Russell andCarroll,1999),these argumentsdo notseem criticalto the theoreticalaims of this paper. andthat middlemanagersneed to manage. Accordingto this model, emotions sharetwo basic dimensions (Larsenand Diener,1992; RussellandCarroll,1999).1One dimension reflects the hedonicvalence (pleasant-unpleasant),andthe second refersto the intensityof arousaloractionreadiness (highversus low activation).Together,the fourbipolardimen- sions produceeight emotion categories that capturealmost the fullrangeof emotionalexperiences across people (Bartel and Saavedra,2000). Thus,the hybridcategoryof pleasant/high-activationemotions includesenthusiasm and excitement, while pleasant/low-activationemotions include calmandcomfort.Unpleasant/high-activationemotions includeanger,anxiety,andfear,while unpleasant/low-activa- tion emotions includedisappointment,shame, ordejection. These fourhybridcategories reflectthe operationof two broad,evolutionarilyadaptivemotivationalsystems (Watson, Wiese, andVaidya,1999). 35/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
Thefirstmotivationalsystem mediates goal-directed,oppor- tunity-seekingbehaviorsof voluntarychange agents who are likelyto experienceand haveto manageemotionalstates dis- playedinthe upper-rightand lower-leftquadrantsof figure1, dependingon the progressof theirchange effortand how they interpretit. Forinstance,agents mayseek to enhance pleasant/high-activationemotions andreduceunpleasant/low- activationemotions to injectenergy intotheirchange pro- jects or instillpersistence inadversity(Kanter,1983;Tichy and Ulrich,1984).Thesecond motivationalsystem mediates threatavoidance,withdrawalbehaviorstypicalof coerced change recipientswho mayexperienceemotions inthe upper-leftandlower-rightquadrantsof figure1. These recipi- ents mayseek to attenuateunpleasant/high-activationemo- tions andenhance pleasant/low-activationemotions (Callan, 1993; Schein, 1996). People who act bothas an enthusiastic agent fora change projectandas a distressed recipientof anotherprojectcould,however,experiencea wide rangeof conflictingemotions andwould probablyneed to manage theirown emotionalambivalence(VanSteenberg LaFarge, 1994). People seem to haveat least two motivationalfoci. When they are change (orgrowth)focused, people are drivenby development needs andseek to bringtheirbehaviorsand self-conceptionsintolinewith how they would liketo be; eagerness orensuringgains dominatetheirbehavior.When they are continuity(orsecurity)focused, people seek to align theiractualselves with theirfelt duties andresponsibilities. As shown bythe 45-degree axes infigure2, the emotions of change-focusedpeople typicallyvaryalonga cheerful-deject- ed axis, while those of continuity-focusedpeople typically varyalongan agitated-quiescentaxis. Vigilanceor preventing losses underliessecurity-seekingbehaviors. Inradicalchange contexts, these individualemotionalstates couldconverge intointense groupemotions throughseveral mechanisms. First,employees who sharea common organi- zationalculturetend to have similarbeliefs, leadingto similar appraisalsandemotions (Schein,1992). Second, a group tends to translatetendencies intocollectiveexpressions more easilythanindividualsactingalone, because group membershipboosts people'sfeelings of powerwhile emboldeningthem througha perceptionof anonymity (BarsadeandGibson,1998).Third,emotionalcontagioncould be at work:individualscouldunconsciouslyrespondto oth- ers' emotionaldisplaysby imitatingandexaggeratingthem. The perceivedthreatsinvolvedinradicalchange increase affiliativeneeds, particularlyamong people who believe they are confrontingthe same situation(Gumpand Kulick,1997). Groupmembers who identifystronglywith one anotherare more likelyto catch each other'semotions, as synchrony conveys empathy.Thegroup'semotionalchargeamplifiesby mutualinteraction,which promotesgroupcohesion andcon- tinuity(Hatfield,Cacioppo,and Rapson,1992). Despite these potentiallyimportantemotion-basedeffects, there has been verylittleempiricalresearchthatexamines how managingseemingly opposingemotions affects organi- zationaladaptationina radicalchange context. Inthe field 36/ASQ, March 2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
Emotional Balancing 2 Toprotectthe anonymityof this publicly tradedorganization,whichis stillundergo- ingmajorchanges atthe time of thiswrit- ing,Ihavetakenseveralmeasures.The names of the organizationandits mem- bers,ethnicorigins,geographicalloca- tions,andspecifictechnologieshave been disguised.Inthe same spirit,some numbersandcalendardates havebeen altered.These adjustmentsinthe presen- tationof the datado notaffecthow the datahavebeen interpretedto explainthe proposedtheoreticalconcepts. study describedbelow, Iexplorethe effects of variousemo- tion managementpatternson workgroups'abilityto adaptto change and simultaneouslyto ensure continuityindelivering services to theirconstituents.A numberof managers arousedemotions relatedto the promotionof theirchange projects,that is, theirbehaviorsdisplayedpleasant/high-acti- vationemotions (e.g., excitement)and sought to reduce unpleasant/low-activationemotions (e.g., disappointment) among themselves. These emotion management behaviors helpedagents increasethe likelihoodof realizingchange. Yet other managerssought to attenuaterecipients'feelings of chaos by managingemotions aimedat maintainingwork- groupcontinuity.Theysought to reduce unpleasant/high-acti- vationemotions (e.g., angerandfear)and instillpleasant/low- activationemotions (calm)among theiremployees. Inthe aggregate, these emotion-managementpatternspromoting bothgroup-levelchange andcontinuityconstitutethe emo- tionalbalancingprocess andare the focus of this paper. METHODS Research Setting "Servico"is a largeservice-providingcompanyinthe infor- mationtechnology industry,whichfor manyyears enjoyeda dominantmarketposition.2The companydeveloped an inte- grateddistributionnetworkusing state-of-the-arttechnologies that enableditto achieve a competitiveadvantageover large geographicalareas. Ithadover 50,000 full-timeemployees, an established reputation,net assets of about$10 billion,and a marketvalueof morethan$15 billion.Itscore competence layina strongengineeringculturethat designed high-quality and reliableintegratedtechnologies, with cost as a secondary consideration. Deregulation,followed by the entryof internationalcompeti- tors, changedthe rulesof marketengagement virtually overnight.A fundamentalandsudden change instrategyand organizingwas requiredto address the shift frommildnation- al competitionto extreme globalcompetition.A vicious price war ensued. Annualprofitsdeclinedby almost halfina single yearas the companyfaced rapidmarketerosion of about 10 percentannually.Whenthis trendhadcontinuedunabated fortwo years, the boardof directorsappointeda newcomer to the organization,John Maxwell,as chief executive officer (CEO).Withina year,Maxwelldecided to embarkon a radical change projectby launchinga series of large-scaleinitiatives, such as replacementof the top team, changingthe organiza- tionalstructurefroma traditional,centralizedbureaucracyto a divisionalizedform,and reducingthe workforceby 25 per- cent (or13,000 positions)inthree years. The imposed changes instrategicdirectionand mindset were radicalinat least three ways. First,a sudden shiftwas broughtabout froman engineering-dominated,universalservice cultureina quasi-monopolisticenvironmentto one with a market-cus- tomizationfocus. A new set of organizationalcompetencies hadto be developed quickly.Second, lifetimejobsecurity and seniorityentitlementwere abolishedovernightinthis century-oldcompany.Third,tightcontrolof cash flow and financialaccountabilitywere imposed on an organizationthat 37/ASQ, March 2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
3 Middlemanagersarepeoplewho aretwo levels belowthe CEOandone level abovefirst-linesupervisor.Thereare manyhierarchicallevels of middleman- agers inServico,andso one seniormid- dle managerinthe linegroupscouldact as a "generalmanagerinthe middle"and be inchargeof two to fivethousand front-lineworkers(Uyterhoeven,1989). Thismanagerhas hierarchicalauthority overjuniormiddlemanagers,andthey,in turn,havea typicalsupervisoryrangeof 50-100 workers.InServico,peoplewith titlesof vice presidentanddirectorare treatedas middlemanagers,whereas those withtitlesof seniororgroupvice presidentareexecutives. hadbeen accustomed to a munificentpast with more relaxed resource-allocationprocedures. Owingto previousinteractionswiththe company,Ibegan my researchon good workingterms with severalgroupsinside Servico.Irequestedandwas grantedunfetteredresearch access by severalexecutives as a non-participantobserver.I was thus able to followthe unfoldingof the transformation effortforthree years inrealtime rightfromits launch.As the effectiveness of variousgroupbehaviors,includingthose relatedto emotion management,duringradicalchange is not well understood(RajagopalanandSpreitzer,1997), Iused an inductiveapproach.Myinitialresearchquestions were open- ended: Howdo variousgroupsthink,feel, andact ina radical change context? Howdoes the evolutionof perceptions, feelings, andactionsaffect the outcome of change?The idea to builda conceptualmodelgroundedinqualitativedataon interactionsamong people ina single companywas inspired by the worksof scholarssuch as Dutton,Dukerich,and Har- quail(1994),Hargadonand Sutton(1997),and Pratt(2000). Data Collection Iconductedover 1,000 informalconversationswith about 500 employees at alllevels of the organizationto corroborate andtriangulatewhat Ihadseen andheardandto watch for new experiences of change. Thisinformalprocess allowed me to screen the individualsmost likelyto provideinsightful butdifferentiatedperspectives;Ithen solicitedthem for regu- larformalinterviews.Ioften asked those interviewedto nominateat least two otherindividualswho they felt were influentialinaffectingthe realizationof one orseveralchange projectsinwhichthey were involved,particularlyindividuals who they felt mightnot sharethe same perspective.Irepeat- ed the procedureuntilthe differentviewpointsgathered repeatedthemselves at least twice with differentprojectsor groups(Laumannand Pappi,1976). Ieventuallyfollowedthe evolutionof 148 people at differentlevels of Servico,includ- ing 10 executives and 104 middlemanagersinrealtime over three years.3A personcouldact as a change agent in relation to one change projectand be a recipientinrelationto anoth- er. Iinterviewedmanypeople morethanonce, resultingina totalof 265 formalinterviews.Morethan80 percentof these were taped andtranscribed.Ihadan office on site and had manyopportunitiesto observe people intheirworksetting, interactwiththem, andobserve manygroupmeetings. The companyalso provideda reportof focus groupsit hadcon- ducted withfront-lineworkersto capturetheirperceptionsof change. Multipledatacollectiontechniques, includingobser- vationsandarchivaldata,allowedme to triangulatefindings fromdiverse sources to buildstrongerassertions aboutinter- pretations(Eisenhardt,1989;Yin,1994). DataAnalysis Tostudy specificallyhow the managementof emotions relat- ed to change andcontinuityaffects organizationaladaptation, the focus of this article,Iconductedthe analysisof my data intwo broadsteps. First,Iidentifiedvariousemotion-man- agement patternsdisplayedbythe individualsinvolved.Sec- 38/ASQ, March 2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
Emotional Balancing ond, Iexaminedhow these patternsinfluencedcontinuity andchange inselect workgroupsandchange projects.I elaboratedeach step inturn. Toidentifyemotion managementpatterns,Icoded individu- als' statements or behaviorsthat (1)attended to emotional issues and/or(2)expressed theiremotions orevoked emo- tions inothers for specific goals. These patternssuggested the managementof emotions. Whilemanysubtle patterns exist, for reasons of space andtheoreticalparsimony,inthis paper,Idescribe one dominantpatternthat driveschange andanotherthat induces continuity:(1)a manageris emo- tionallycommittedto a change project,appraisingitas impor- tantto his or herpersonalgoals and (2)attends to change recipients'emotions to ensure continuityinoperations.More- over,the firstpatternillustratesemotion management of the self whereas the second illustratesmanagementof other people's emotions. Incodingthe two emotion-managementpatterns,Ireliedon evidence of emotionalcontent inobserved or self-reported statements andactions. Itriednot makingtoo wide an infer- entialleapabout internalemotionalstates and sought to cor- roboratethese inferredstates with observableemotion-laden expressions or behaviors.Whereverpossible, Iensured that each patternwas supportedby at least two datasources. For instance, Itook care thatexpressed statements reflectingan emotion-managementpatternwere corroboratedby observ- able behaviors,informalobservations,orarchivalinformation. Tables1 and 2 illustratehow Idefinedand coded the two dominantemotion-managementpatternsandtriangulated varioussources of datato enhance the validityof constructs. Inthe second step, Iexaminedhow these two emotion-man- agement patternsaffected continuityandchange indifferent workgroups. Some of the distinctivecontributionsof middle managersemerged at this stage and led me to focus further on theirroles. Moreover,Iused the case replicationmethod, inwhich cases serve as independentexperimentsthat con- firmor disconfirmemergingconceptualinsights (Yin,1994). LikeBrownand Eisenhardt(1997), Ilookedforextreme cases that showed sharpvariationsto allowfor nuance in theorydevelopment. Iselected cases involvingchange pro- jects affectingspecific workgroupsthatdisplayeda clear presence orabsence of emotion-managementpatternsas well as differentiatedoutcomes. The Appendixprovidesa descriptionof these change projects.Ianalyzedprojectspro- moted by middlemanagerswho displayedvaryinglevels of emotionalcommitmentto theirprojectsandwho enacted varyinglevels of attendingto employees' emotions. Ialso traceddifferenttypes of outcomes: (1)the degree of realiza- tionof a given change project;(2)the degree of qualityof service achieved by the recipientworkgroup;and (3)learning reportedby agents and recipients. A workgroupcouldbe affected by manychange projects, some of which were more emotionalthanothers. Highly emotion-arousingprojectstended to upset bothemployees' workand privatelives and includeddownsizing,majorreengi- neeringof work,and/orjob relocation.Thisselection of 39/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
Table1 Coding and Triangulationof Data Sources for EmotionalCommitment to Change Projects Formalinterviews: "Youhave to really own the change job in your own heart. Here's our Mount Everest. We must achieve this Mount Everest." "Iam extremely excited about the dream to fashion a new work environment. This is the kindof project you wait ten yearsto get to be partof." "Change feeds many of us because we are goal-focused and achievement oriented. Youwouldn't want to returnto your previous job without this initiative successfully implemented. Many people have this commitment, and it sure isn'tforthe money.We are notbeingwell paidenoughforthat." "Iwillspeak verypersonally;I'mputtingmycareeron the lineon this piece of work." "Thisprojectis a personaldreamthatcanfinallybe realized.BeforeIretire,Iwantto see itdone." "Iwantto leave a lastinglegacyto Servico.Thiswillmakethe difference.Iwantto see itthrough." "Wewere likedrugged.Therewas hope thatnothingshallstop us, thatwe willovercome.We were optimisticand saw lifethroughrose-coloredglasses. We hadto succeed, we hadto makeitfit. Lifewas beautiful,we were the best team inthe world." "Icould have left, and I could have gotten a lot more money, but I decided to stay. I had a sense that I could con- tributesomething .... What'sinitforme personally?Thissounds odd,this willsoundoverdramatic-there'sa sense of destiny . . . Ican helpconvertthe mess intoone of the best companiesthe world.Ican reallyhavesome kindof impact,andthat'swhat keeps me here." Congruentbehaviors: people persevereintheirtasks;go beyondmanagerialdutyto realizeprojects;defendtheir projectsfiercelyin meetings;devote a lotof personaltime on projects;hoardresourcesforproject;get angrywith peoplewho oppose them. "Wewent throughsuch a low point.Everybodywantedto walkaway [fromthe changeproject].Buta littlelight shines:we toldourselveswe can'tchange3000 peopleovernight.Whydon'twe findthe oddfew who likethis change,andworkwiththem?" "Ifeel angry:why can'tthey see the future?Whyis everybodydraggingtheirheels? Ifeel frustratedthatthingsare not changingas fast as we wantthem to." Informalconversations: Changeagents use expressionssuch as: "Ipersonallycareaboutthis project";"Thispro- ject means a lotto me"; "Iwantto leave somethingbehindwhen Ileave";"Iwantto realizemypersonaldream"; "Thisprojectis my baby." Observations of formal meetings: Project managers fiercely defended the logic and worth of their projects to supe- riors, peers, and recipients, using all arguments, including those related to sunk costs (too late to get out now, we've investedtoo much). Focus groups: Evidenceabsent. Ido not havemuchdataon focus groupsinvolvingprojectmanagers. Casual on-site observations: Some agents maintainedfocus on implementationof changeprojectsdespite corpo- rate-induceddistractions:transferof keypersonnelto othertasks, budgetreduction,lackof visibleexecutivesup- port.Manybelievedstronglythatthese changes wouldbenefitthe organizationinthe longrun. Archivaldata:Companyreportsdescribedprojectmanagers'strongattachmentto the pursuitof theirproject despite multiplechallenges.Theyrefusedto abandontheirprojectsdespite adviceinthis direction.Wordssuch as "suicidalheroism"and "dying"fortheirprojectswere used to express this commitment. 4 A morecompletedescriptionof the respondentandprojectsampleis avail- ablefromthe author. extreme cases produced ten change projects, as summarized in the Appendix. I identified the people who were involved in each of these cases and coded their emotion-management patterns. This involved 76 individualswhom Iformally inter- viewed 138 times. Certain individualswere involved in more than one project. Ialso distinguished newcomers from veter- ans-employees with more than five years of tenure when the radicalchange began. Ithen aggregated and identified the emotion-management patterns applied in each case.4 I analyzed over 2,000 pages of transcripts and 400 pages of company documents. Iemployed a theory-building approach that required multiple iterations between thick data descrip- tion and emerging theoretical concepts. Finally,Idrew on rel- evant literatures to enhance the plausibility,insight, and criti- cality of a conceptual model of emotional balancing (Golden-Biddle and Locke, 1993). 40/ASQ, March 2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
Emotional Balancing Table2 Coding and Triangulationof VariousData Sources for Attending to Recipients' Emotions Formalinterviews: "Youhave to be committed to providing the time for the people to work though personal issues with their peers. Downsizinglowersthe trustlevel, people constantlywonderthatsomeone isn'toutto get them." "Wehaveto do morethangivingemployees technicaltrainingonly.We haveto preparethem to cope with psycho- logicalissues, to helpthem overcomethe fearof changeduringthis transitionperiod." Congruent behaviors: People devoted time and effort to take care of emotional well-being of people affected by change. Hiredfacilitators,psychologiststo helppeople express theiremotions morefreely.Tookcareof recipients' personalandfamilyissues caused by change (i.e.,relocationof dual-careerfamilies).Worriedaboutburnoutand absenteeism andfindingways to alleviateemployees' stress andworkload.Preventedordelayedotherill-timed change projects that would impose too much burden on the recipients (loss of sensemaking, feelings of chaos). Informalconversations: Managersmentionedthatthey watchedforsigns of burnoutamongtheirsubordinates, imposingvacationson them andorganizingpartiesto celebratesmallwins. Manymanagerssharedwith me their need to "psyche"themselves up,to "blankout"negativethoughtsto dealwithemployees ina morepositive frameof mindinordernotto exacerbaterecipients'fearorhopelessness. Observations of formal meetings: Middle managers expressed the need to prevent change fatigue among them- selves so thatthey couldtakecareof theirsubordinates. Focus groups: Middlemanagersset upfocus groupsinwhichfront-lineworkersexpressed the need to see their emotionalhurtaddressed.Theywantedto see managersopenlyacknowledgethe existence of problems. Casual on-site observations: Privateorsmall-groupmeetings to facilitateairingof private,emotionalissues: elderly parents,handicappedchildren,maritalissues thatinterferedwith new workresponsibilitiescaused byorganization- al change. Managerofferedpaidpsychologicalcounselingandtreatment,providedcompanyresourcesto people to takechargeof employees' personalandfamilyneeds due to workrelocation.Middlemanagersorganizedvent- ingsessions andhealingsessions forgroupsandcelebrationsof smallwins. Archival data: Reports from middle and lower-level managers (especially HR)suggested more focus on emotional andpersonalissues anddeploredlackof seniormanagement'sattentionandcareaboutthese issues. EMOTIONALBALANCINGFOR CONTINUITYAND CHANGE Radical change challenges organization members' self-identi- ty and meaning and creates high uncertainty about their future roles and privileges, which triggers anxiety (Argyris, 1990). Anxiety can degenerate into depression that blocks all learning efforts when people perceive that they cannot achieve valued outcomes, feel irrevocable loss, or are pes- simistic about potential improvement in their situation (Schein, 1996). To fight against anxiety and depression, peo- ple seek to restore peace of mind, which comes from the belief that one has control over threats that might arise, either by changing objective circumstances or by altering the psychological impact of the situation (Mischel, Cantor, and Feldman, 1996). Medical research suggests that patients who have illusory beliefs that they can exercise partialcontrol over their treatment enjoy important psychological and physi- ological benefits (Bandura, 1997). Perceptions of personal control have also been found to be positively related to main- taining the effort devoted to challenging tasks over time, such as the pursuit of ambitious change (Aspinwall and Tay- lor, 1992). Emotional balancing enabled Servico's managers to regain some personal control over a discontinuous and threatening change context. Inthe aggregate, these managers displayed seemingly opposing emotion-management patterns to realize change and maintain operational continuity in their work groups. Some displayed intense emotional commitment to 41/ASQ, March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
theirchange projectsand used allthe resourcesat theirdis- posalto influenceothers to supportchange. Othermanagers attendedto theirsubordinates'agitatedfeelings so thatthe employees couldmaintaincontinuityindeliveringservices to the customers. Insum, differentindividualscouldseparately enact differentemotion-managementpatternsto drive change orcontinuityandstillproducean aggregatedadapta- tionand learningeffect on a given recipientworkgroup. Ratherthanidentifyhow individualdifferencesaffected the displayof specific emotion-managementpatterns,therefore, Ifocus on how andwhy the aggregateof the two emotion- managementpatterns-emotional commitmentto change projectsandattendingto recipients'emotions-contribute to balancingorganizationalcontinuityandchange at the work- grouplevel. Emotional Commitment to Change Projects As Servico'smarketshare declinedprecipitouslydue to inten- sifyingcompetition,radicalchange seemed an increasingly unavoidableoptionforseniorexecutives andsome middle managers.The criticalissue was to figureout what specific actionsto take to restorefinancialstrengthandbuildnew capabilities,andto do this quickly.Aboutfortyveteranmiddle managerschampionedover 100 projectsto improveServi- co's operationsandprofits;these projectsshaped the Corpo- rateTransformation(CT)program.Whileexecutives were imposingthe large-scalestructuralchanges, the majorityof projectschampionedby middlemanagersinvolvedchanges to workprocesses, such as consolidationandprocess reengi- neering,to compensate inpartforthe workpreviouslydone bythe 13,000 employees who were being let go. Manyof the projectschampionedbythese middlemanagers came fromideas thatcollected intheirreservoirof "dreams."As one managerwho was coordinatingthe fund- ingof these projectscommented, "Mostof these initiatives came fromideas that manyof us alreadyhave hadfora long time butcouldnot manageto get financedinthe past. CT representsthe dreamsthatcan finallybe realized."The large discretionaryfundof CTallowedmanymanagersto realize those long-harboreddreams. Iwas initiallysurprisedto hear managersactuallyutteringthe word "dream"and its syn- onyms, desires andwishes. Dreamsmotivatechange inthat they are representationsof what people want to achieve or to have intheirlives to enhance theirself-esteem andget closer to theiridealselves, andthis makes the self-selection and pursuitof a dreampersonallymeaningfulandemotional (Pratt,2000). Afterall,Servicowas betterknownas a rational bureaucracywith impersonalrules.Inprivate,manyman- agers sharedwith me theirdeep desire to leave a lasting imprinton the organization,which manyof them hadstarted theircareerswith and hopedto retirefrom.Thisdesire came fromtheirlongoperationalexperience,theirfrustrationwith the company'sinherentdysfunctionalities,andtheirwish to builda betterorganization.Theyembodiedchange goals root- ed inorganizationallife. Forexample,one managerin Net- works said, 42/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
Emotional Balancing Iexpect to retireseven to ten yearsfromnow. Before Ileave, I want us to havean online,intelligentpreventivemaintenancesys- tem to fixcustomers' [transmissionquality]problemsbeforethey even become awareof them. Today,the system is reallynuts. The moreproblemsget reported,the more money we can get fromthe company. Therewere at least two reasons why these managershad not sought to enact theirdreams earlier.First,Servicohad been a highlyprofitablequasi-monopoly,and so the need to make importantinvestments to improveoperationalqualityor do finermarketsegmentation seemed secondary.A financial crisiscaused by deregulationincreasedthe felt need for bet- ter marketing.Second, the availabilityof a $1.2 billionCT slackfund reservedonlyforchange projectsmade middle managers'dreams now seem closer to reality.The pursuitof the championedprojectswould satisfy managers'intrinsicini- tiativeandassertiveness andtheirdesire forchallenging tasks and highachievement,which suggest entrepreneurial behaviors(McClelland,1987; Ketsde Vries,1996). Forexam- ple, one change projectmanagertold me with palpablecon- viction,"Ihave a verystrongdesire for us to be successful. The solutionsthatwe've got, they are good ones, andthe teams develop them and believe inthem andwant to make these things happenandsee them through.Itis going to makethe difference. Iwant to see itthroughto the end." Frijda(1996)construeddesire as the actiontendency toward arrivingat a given state orowningandconsuminga given object. Zirkel(1992)suggested that people often choose goals thatfavormeaningfulnessover feasibility,even lofty goals thatthey do not always knowa priorihow to realize. Desiregives manyemotions theirpassionate quality,which intensifiesthe emotionalcontent of ensuing actions. InServi- co, emotionalcommitmentto the realizationof projectsesca- latedinthe face of adversityandwith increasinginvestment of effort. Managersbecame more narrowlyfocused and self- centered and began to rationalizethe legitimacyof their autonomyto themselves andothers. These pleasanthigh- activationemotionalstates interactedwith cognitionas man- agers reinterpretedevents inan optimisticlightand concen- tratedonlyon the thingsthey felt they hadcontrolover. These patternssuggest self-efficacyefforts (Bandura,1997). As a projectmanagersaid, "Webelieve we do have excellent initiativeshere, andwe willachieve absolutelythe most we can, and ifwe don'tachieve the CTfinancialtargets, screw. ... We started to set our own agenda.... We were just going to go aboutourown. Itwas justthatwe decided, shit, we're going to do this." Pleasant/high-activationemotions such as excitement and optimismfueled the pursuitof dreams. Choiceand commit- ment to it providedflexibilityinthe initialproject-promotion stage, while self- andaction-controlenabled perseverance in the laterproject-implementationstages. Althoughit may have been easy for Servicoagents to be enthusiasticintheirearly change-promotionefforts, the drawn-outimplementation phase, which requiredattentionto less glamorousoperational detailsandwas often disruptedby unexpected events, erod- ed the energy of manyagents. Not onlywere these man- 43/ASQ, March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
agers receivinglukewarmor infrequentsupportfromexecu- tives, they were also encounteringresistancefromrecipient linegroups.People workingon the frontlinecouldnot see how costs couldbe cut andthe same level of customer ser- vice be maintained.Perceivedmisunderstandingbytheirown operatinggroupscreatedfatigueanddisappointmentamong manyagents. One manager'sfeelings were typical:"Thisis verydifficultfor manyof us. We felt we were outsiders when we hadto force our[recipients]to accept a change ini- tiative.Itcreates a very highlevel of stress. Some of us are stressed, de-energized,fed up."Differentgroupstriedto uncovereach other'shiddenagendas, and mistrustwas prevalent. Middlemanagersas change agents sought to lower unpleas- ant/low-activationfeelings of disappointmentandfatigueby sharingthese amongthemselves. Manyworkedlong hours, puttingtheirpersonalrelationshipsandhealthat risk.Never- theless, they felt a sense of personalachievement in attemptingto performdifficulttasks. Thewish to achieve helpedto shore uptheirown emotionalstaminato withstand the manyfrustrationsalongthe way. Theydidthis by blank- ingout the largerthreateningcontext andfocusingon the smaller,more isolatedandcontrollableportionsof theirjobs. Theyalso hopedthatwhat they hadbeen learningwould enhance theirmarketabilityinsideandoutside the organiza- tion.As one of them explained: Ithinkmanyof us are hereforourabilityandinterestinmaking changes, justas a type of personalitymaybe,andachievinga chal- lenge and not beingwillingto failever.... Thisis probablythe toughest challengethatanyof us have had .... We've seen the importanceof these initiativesto the futureandhavebeen recog- nizedfordoingthat.Thatfeeds manyof us because we aregoal- focused andachievement-oriented. These manifestationssuggest a strongpersonalcommitment to realizeone's goals. Ineffect, Gollwitzer(1993)predicted thataftercommittingto a goal, people normallywillattend selectively to informationrelevantto its implementationand tend to evaluateits consequences positively.Thiswould shieldthem fromthe distractionsof competingalternatives and paralyzingself-doubts(Kuhland Beckman,1985).Thus, when Servicoagents were faced withadversity,emotional commitmentprovidedthem with the staminaandhope that fueled perseveringefforts and reducedprematuredespair.A change agent reflectedon herperseveranceuntilthe very end of CTas follows: "Alotof what we didwas to continual- ly nibbleaway andjust keep workingat it.That'swhere tenacityandperseverancecomes in.You'vegot to keep workingandsay, well, if itdidn'tget throughthis time, we'll tryitagainnext week. Youkeep pluggingaway,andover time people do come around." Emotionalcommitmentwas also reinforcedthroughchange agents' selection and retentionroutines.Certainsupervisors' emotionalmonitoringof projectmanagerswas discreetyet active, as one supervisorof over40 projectssharedwith me: "Projectmanagersdon'tneed to be pumpedbecause they designed theirown projects,so when Iask them how it's 44/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
Emotional Balancing going andthey answer me it'sgoing okay,then Istartto worry.Emotionalindifferenceis the worst sign, because it means theircommitmentis going away. So we learnedto celebrate milestones because the projectis so long."Thus, this supervisorcontinuouslymonitoredhis agents' emotional displays:"Enthusiasm,faith[inthe project'ssuccess], love of theirwork,desire to persist,these elements are always importantforchange projectsto workwell." Therewere variationsinthe emotion-managementpatterns that drovechange orcontinuityforeach of the ten cases, and each of these two patternsdifferentiallyaffected the perfor- mance of a change projectand its recipientworkgroup,as well as learning.Moreover,the projectsvariedintheir results:inertia,adaptation,orchaos. FAST-ADMINProjects:Inertia Notallchange projectsinvokedthe same intense level of emotionalcommitmentamong theirpromoters.Certainmid- dle managers,relyingon theiroperationalknowledge of the company,requested andgot fundingapprovalfora number of quick-winprojects.Threeillustrativeprojectsare listed in the Appendix.Forinstance,the change projectto stop send- ingreturnenvelopes with the billsforcustomers who seldom used this mediumresultedinan annualsavings of $1 million for Servico.Managerslabeledthese quickwins "fast admin[istrative]"changes. They reportedthese achievements to me ina mannerthatwas matterof fact and quick,with at best an expression of subdued satisfaction,andthen devoted much moretime andemotionalintensityto describingtheir dreamprojects.Ina sense, the successful realizationof these fast-adminchanges didnot resultinany significant enhancement of the organization'scapabilitiesand learningto change and so representedfine-tuningchanges inwhat was essentially organizationalinertia.Middlemanagerswere aware of this anddevoted very littleemotionalenergy to the promotionand realizationof these projects,which were in any event clearlyprofitableandeasily implementedinthe shortterm. Also, these three projectswere reportedto have littlenegativeeffect on the personalwelfare of affected employees. Incontrast,long-term,majorprojectsthat requiredimportant investments of financialand humanresources and could materiallydisturbServico'soperationswere subject to oth- ers' scrutiny,analysis,and ongoingmonitoring.The credibility of the touted project'sfinancialandoperationalbenefits relied inparton middlemanagers'past trackrecords.Inthis respect, Servico'sdecision-makingprocess forfundinguncer- tainandambitiousprojectsseemed notvery differentfrom resourceallocationprocesses appliedincertainother large organizations(Burgelman,1983; Kanter,1983; Bower,1986). As the executive inchargeof fundingtold me, "Forbig pro- jects Imet theirpromotersface to face. Numbersonlytold you partof the story.Iwanted to see how they defended these numbers,how convincedthey were aboutthe project's viabilityand chance of success, and how muchthey were willingto sticktheirneck out and sweat for it." Monitoringof promoters'emotionalcommitmentto theirprojectswas dis- 45/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
creet yet active even in the early funding phase, and middle managers who displayed low emotional commitment to their championed major projects were likelyto have a hardertime competing for funds with highly committed peers. INV Project: Inertia Even if the project was funded, wavering commitment among agents during implementation could still lead to orga- nizational inertia, as illustrated in the case of project INV, which was close to successful completion when it lost senior management support. INVwas important to Servico both in terms of economic benefits and new values: it sought to instillmoretransparencyanddisciplineina politicizedcapital allocationprocess thatseemed inefficient.Productchampi- ons andfinancialpeople were frustratedwiththe old system because of knowncases of lackof professionalismorcheat- ing: One productmanagerasked for7 milliondollarsto sell 170,000 unitsof a new productline.Heomittedmost of the costs, put[in] onlya littlebitof softwaredevelopmentandadvertisingcosts-the strictminimum.Hedidnot includeanyinfrastructureandsupport costs, whichrepresented90 percentof the costs. Thefinancepeo- ple who didnot understandthe business tookthese numbersat face valueandproducedfinancialindicatorswitha five decimalpre- cision.Theycomparedthe profitabilityof one projectagainstanoth- er on thatbasis andallocatedfundingaccordingly.... Otherswho were a littlebitmorethoroughor honest lost ... [andwillpractice the new rulesof the game nexttime]. Little systematic tracking and culling of unprofitable product lines took place. This laxitywas no longer tenable in a highly competitive environment. The goals and reasons for INV were widely accepted. Managers ironed out many implemen- tation details across the myriad of antiquated administrative systems. Emotional commitment to realize INVremained strong and escalated with investment of important resources and agents' energy. INVdid not threaten recipients' personal welfare to the same extent that downsizing would have, and change agents consistently sought wide participationof and consultation with recipients. They developed enthusiastic supporters in recipient groups who championed their cause inside their respective units. After two years, successful insti- tutionalization of INVseemed well under way. But macro structural changes unexpectedly neutralized the momentum and emotional commitment of change agents. Coincident with a much larger reshuffling of business units and executive responsibilities at the top, senior management decided to establish a more permanent capital management group and to disband the current change-agent team. Because almost no one who belonged to the change team became part of the new administrative structure, precious tacit knowledge and organizational memory were squan- dered. The premature dispersion of the change team delayed or stopped the development and refinement of procedures and information systems that supported INV.As the dis- traught project manager bemoaned: 46/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
Emotional Balancing Thewhole process is losingmomentum.... Iam afraidthat every- thingis going backto where itwas before.We [haveyet to com- plete]the administrativetools thatwere requiredto helpthe [profes- sionals]do theirjobs.... Thedevelopmentof these tools has been delayedordropped..... Nobodycontinueswiththe training. The new capital management group soon managed capital investment in the old fragmented ways. Instead of tracking revenues and expenses associated with the capital invest- ments, it resigned itself to tracking the capital budget only. Other groups managed the operating expenses or revenues budgets, and there was little harmonization between them. Active political negotiation games resumed. This seemed to indicate suboptimal organizational inertia. Former change agents helplessly watched their efforts being unraveled. One agent asked me, "Who else can Iturn to? The CEO? Is it viable for me to see the CEO and say, 'Look, Idon't think this process is going the rightway.' Ithink not, unless Iwin a big lottery ticket. Who do you go and see when you think people are doing the wrong thing?" Individualagents' commitment to INVwas neutralized by executives' actions. Executives were often distracted by urgent external demands due to intense competition. This rather dramatic case illustrates that very important but long- term projects such as INVmight fail to get adequate execu- tive attention and get trampled on, sometimes accidentally. As one executive explained: We'rea veryreactivecompany.It'salwaysa fire.Rightnow ... we just lost [amajorcustomer].... So there was this immediatereac- tionof the seniorteam to pulltogether a multifunctionalteam within 30 daysto win backthe customer.Now thatwe have recommitted the resources behindthis new top priority,something else will suffer. FINA Project: Inertia Another change project, FINA,affecting the finance groups, suffered from its inception from diluted emotional commit- ment to change. Unlike INV,the few agents who were emo- tionally committed to FINAfailed to promote this change to the people around them. The aggregated commitment among a few agents seemed insufficient to drive this ambi- tious and broad change. There was little tangible support from overwhelmed executives. Insufficient support was also partlycaused by agents' accentuating in-group and out-group distinctions between themselves and groups from which they asked for resources to drive change. These agents launched FINAwith a separate project group of 150 people, one-third of whom were external consultants. The high pro- ject cost of $70 million and the large number of consultants were unique in Servico and exacerbated feelings of envy and resentment. FINAagents were frustrated about the recipi- ents' foot-dragging in providing the best resources for the "special" change team. They could not understand the rea- sons behind recipients' behavior, which they perceived as covert resistance. Lackof skilled and experienced people slowed down the design and implementation of change. Agents focused their activities on the cognitive, technical ele- ments of work process reengineering and were unaware of 47/ASQ, March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
the importanceof attendingto recipients'emotions,stress- ing, instead,a fear-arousingapproachto drivingchange. As one told me, "Ithinkchange requiresa verystrong,definite, militaristicstyle to be successful.... Thefearof Godhas to be putintothe organization;otherwise, itwillnot force itself to change as quicklyandas dramaticallyas maybe required."These agents didnot knowhow to address recipi- ents' anxietiesand,so, keptrepeatingthe same business rationale,to littleeffect. As one projectmanagersaid, Intellectual,scientificargumentsdidnotseem to convincerecipi- ents. Quotingwhatthe CEOsaiddoesn'twork.Therearesome fears involved.So Irepeatthe same message at the beginningof every meeting [withrecipients].WhatIlearnedinchange manage- ment seminarshas not been as effective as Ithoughtit mightbe. Twoyears later,however,the informationtechnology(IT) people discoveredthatthe informationinfrastructuredidnot have adequateprocessingcapacityto supportnew software applications,includingthose needed for FINA,andthe project was "shelved."The paperredesignof financialstructures andsystems to makethem fitwiththe new financialsoft- ware methodologyhadalreadycost $30 million,whichwas well over budget.Conceptualdesign was done on paperonly, andthere was onlyone yearleft to developcustomizedsoft- ware applicationsandtest and implementcomplex new financialsystems amongthe skepticalrecipients.Project managerswere disappointedbutalso relieved,as they real- ized itwould have been virtuallyimpossibleforthem to meet the initialcommitments interms of benefits deliveredand deadlines.As one said, Thecancellationof the projectwas probablya good thing,because we mighthave hada targetaheadof us thatwe wouldhavebeen hardpressed to reach.We were spendingmoneyfasterthanwe hadanticipated,andwe arefallingbehindschedule. We couldhave dug upeven moresignificantdifficultiesahead. EvenafterFINAwas aborted,the agents' learningfromit appearedto be limited.Theyconcludedthatthey mighthave succeeded if executives hadbeen morephysicallypresentto increase pressureon recipientsor ifthey hadused morepro- ject management.Agents inthe financegroupswere unable to see the importanceof also attendingto recipients'emo- tions, somethingthat managersinchargeof similartypes of personallydisturbingchanges such as downsizingandreloca- tionwere awareof, as willbe seen inthe next cases. Beyondthe timelyscapegoat of the weak ITinfrastructure thatdirectlycaused the abortionof FINA,dilutedemotional commitmentamongthe change agents andinsensitivityto recipients'emotions hadalreadyled to underperformanceof FINAinterms of cost anddeadlineoverruns,even when the projectwas onlyinits paperdesign stage. Suboptimalorgani- zationalinertiaremainedinthe financegroups. Thecases of INVand FINArevealthatchange agents were in constant conflict.Those playingthe roleof committed change agents forone projectcouldat the same time be recipients,subjectto seniorexecutives' actionsorother change projectslaunchedbytheirpeers. Therewas constant competitionforresources. ManymanagersinvolvedinCT 48/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
Emotional Balancing felt thatthey were stretched to the limit(intellectually,emo- tionally,and physically)and expressed concernthat Servico was teetering dangerouslyon the edge of chaos. Somehow, the organizationdidnot implodeunderthe severe pressure. One partialexplanationmay be that, beyonda focus on dri- ving majorchanges, there were other managerswho took emotion-managementactions, such as attendingto recipi- ents' emotions, to maintainworkgroupcontinuity.These actions helped employees remainrelativelycalm andattend to theirdailyproductiontasks. "Keepingthe companywork- ing"seemed to representa goal of continuitysharedby manylinemanagers.Duringthe three years of CT,managers commonlyreportedto me thatthey worked80 to 100 hours a week to implementchange while simultaneouslyattending to theirworkgroup'soperationalcontinuityandtheirsubordi- nates' emotionalstability. Attending to Change Recipients' Emotions to Maintain Continuityin Operations Ialso observed cases inwhich certainmiddlemanagersand unionrepresentativesactingas middlemanagersmaintained operationalcontinuityby practicinga formof "boundedemo- tionality"thatattendedto the psychologicalwell-beingof subordinatesandtheirfamilies(cf. Martin,Knopoff,and Beckman,1998). Boundedemotionalityrefersto acknowl- edging the inseparabilityof privateandworkfeelings and consciouslyattendingto them (Putnamand Mumby,1993). Middlemanagersencouragedemployees to express a wider rangeof emotions, bothpersonalandworkrelated,than had been traditionallyallowed.These actions violatedServico's explicitpersonnelprocedures,which stronglydiscouraged managersfromgetting involvedinemployees' individualcon- cerns andadvisedthem to keep supervisor-employeerela- tionshipstask-orientedand unemotional.Such impersonalcri- teriafordecision makingandemotionalcontrolunderlie bureaucracy(Weber,1964). Bureaucraticorganizationsare deemed successful to the extent thatthey eliminate"all purelypersonal,irrational,andemotionalelements which escape calculation"(Weber,1946: 216). As one female man- ager said, "Ihave been with Servicofor25 years. Overthe years Ihave evolved to believingmy success would be with my professionalapproach-not to show emotions [except being]funnyand dynamic!" Manyof Servico'smanagers,throughyears of socialization, seemed relativelyskilledat feigningthe appropriateemotions insurfacework.Goodactingseemed a prerequisiteto remainingin influentialpositions.As CTreachedmid-course, sensing negativefeelings fromsome of the employees he interactedwith, the chief operatingofficersent a confidential memo to allmanagersstatingthat "expressionsof cynicism [aboutchange]willnot be tolerated.We are inpositionsof leadershipand must displayenthusiasm at alltimes [to every- one]." Manymanagersprivatelyfoundsuch an articulation odd andamusing.Theywould not have survivedthe previous streamliningof middlemanagement rankshadthey not long before figuredout the implicitrulesof emotionaldisplay.Ina similarvein, Jackall(1988: 128) suggested that managers who wish to succeed inbureaucraciesare expected "to 49/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
maskallemotionand intentionbehindbland,smiling,and agreeablepublicfaces." Underradicalchange, however,cer- tainmanagersdeliberatelybrokeemotionaldisplayrulesto maintainsome continuityintheirsubordinates'lives,while observingtraditionalrulesintheirdealingswith certainsupe- riors-executives who stillfrowneduponintense emotional displays,especiallyunpleasantones. CONRETProject:Adaptation Attendingto recipients'emotions provedcriticalinCONRET, a projectaimedat closing 10 callservice centers insmall towns, consolidatingthem intoone site, andat reducing about20 percentof the workforce.Agents inCONRETdis- playedhighcommitmentto change. Peter,a vice president, privatelytoldme thathe maintained"astate of insecurity andone must be an agent of change orbe out. I[keep]the managerscrankedup."Thus,Lisa,a veteranmiddlemanag- er,was put inchargeof coordinatingover20 change projects affectingthe retailgroup,includingCONRET.Lisapressed executives to putpressureon herrecalcitrantcolleagues, because she thoughtthe "garbagethat linemanagers[were] dishingout unbelievable."Lisaalso hadlittletolerancefor employees' personalconcerns, not directlyrelatedto busi- ness: "Wehadan open lineforquestions. Ninetypercentof them were basicallythe same: how was itgoingto affect my workscheduling,my vacation.Notaboutthe business struc- tureor how customer segmentationworks. Inthe future shouldwe take these calls?No!" Some linemiddlemanagersdidnotagree with herand devoted greateffortto maintainingsome continuityamidrad- icalchange. Jack,a linemiddlemanagerinchargeof 700 ser- vice reps, hadto carryout CONRET,relocatehis staff, and maintainthe objectivesof revenuegenerationandservice quality.He implementedthis change out of dutywhile remainingskepticalof the project'stouted benefits. Jackdis- covered soon enough thatwatchinga video on the new cor- poratevisionhadlittlemeaningforemployees unless they couldunderstandhow the visionwouldaffect theirpersonal welfare. He worriedthathalfof the relocatedpeople were motherswithyoungchildrenandthatthe longercommute time forthem would be exhaustingand not sustainable:"I spent most of my time coachingpeople on humanissues, playing the psychotherapist role .... These [agents] act as bulldozersandfocus on numbers.Ihadto concentrateon meeting with unionsto solve relocationissues." Jackattend- ed to his subordinates'personalneeds andwas explicitabout managingtheiremotions: Overtime, Ilearnedto avoidmass meetings. Iused to meet a large groupwhere everythingseemed to go well andthen Igot allkinds of surprisingfeedbacklater.Irealizedthatone couldnotdealeffec- tivelywithemotions when one was witha crowd.So Ibeganto set upsmallermeetings ingroupsof seven oreight,and Itoldthem I would be availableforprivatemeetings afterthe groupdiscussion. ... Itwas a winningformula.Everycase was different:one service repfroma smalltown emotionallytoldme ina publicmeetingthat she couldnot move to [Dallas]immediately.Inprivate,she explainedto me thatshe was goingthrougha divorce.Anotherone was worriedthatherhandicappedchildcouldnotfinda specialized 50/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
Emotional Balancing school, so Ilookedfora jobthatwould suit herneeds. Othershave sick parents.Relocationis a veryemotionalthing.We addressed thatby offeringthem paidvisits to the new locationa few months inadvance.Thewelcoming partyappointedsponsors foreveryfami- lyto lookaftertheirpersonalneeds, to takethem out to dinnerthe firstweeks orto finda baseballteam forthe kids. Thejuxtapositionof emotionalcommitmentto change pro- jects, displayedby people such as Peterand Lisa,andattend- ingto recipients'emotionsto restore some psychologicalsta- bilityamong employees and maintainoperationalcontinuity, as exemplifiedbyJack,created tensions among change agents and recipients.Jack,as a recipient,complainedthat Peter and Lisawere too "focused on numbersas opposed to operations[andwere] rigid,militaristic,disrespectfulof humanbeings" indrivingchange. Curiously,this juxtaposition of seemingly opposite behaviorsnevertheless resultedin overalladaptationto change at the grouplevel. CONBUSProject:Adaptation Iobserved similaremotion-managementpatternspromoting change andcontinuityinthe service representatives(reps) unitservingbusiness customers. Vicky,a linemanager,had to close five of the nine service centers and relocate her employees (projectCONBUS).She describedhow her employees felt aboutthe downsizingand relocationrelated to the consolidationof the sites: Therewere a lotof reactionswhen the changes were announced. Some people were angry,some wept, some expressed no reaction at all.... Thegroupmoodwas veryvariable.Onone day,every- thingwas harmony,andon the next day,as soon as the work became demanding,peoplejust exploded,cried,so manyreps seemed not beingableto come to terms with theirfeelings.... Evenaftera year,some came to terms with quittingtheirhome- towns, butthere were otherswho felt they didnot reallyhave a choice, personallythey couldleave buttheirfamiliesdidn'twant to. CONBUSexacerbatedthe emotionalandcognitivestress that reps were alreadyunderfromcontinuingpressures to improvetheirsellingskillsand keep updatedabout new tech- nologyandproducts.Andpressures fromcommittedchange agents were relentless. Onthe recipients'side, a unionrep also workingas a service repbemoaned, "There'sso much information.We've become so bombarded,so saturatedat one pointthatyou become stupid.Some simple things become difficult."Absenteeism increasedfromtwo people a week to six to 10 weekly, and long-termdisabilitiesdoubled, mainlydue to burnout.News of burnoutamplifiedfear among the reps. Lucy,a first-linesupervisor,said, "We lost ourhead andthoughtburnoutwas a contagiousdisease. Fearwas verycontagious, Istartedto appreciateit." Infact, events such as change thatare negativelyperceivedtend to evoke strongerand more rapidcognitive,emotional,and behavioralresponses thando neutralor positiveevents (Cacioppo,Gardner,and Berntson,1997). Sam, a process consultant,hiredby Vicky,foundthatthe stress caused by site closure, insecurity,andworkoverload due to downsizing,as well as the pressureto absorbnew knowledge, pushed manyreps to the edge and some to 51/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
burnout. Sam then trained the reps to practice time-manage- ment techniques, prioritizeexternal demands, and negotiate deadlines. This trainingseemed effective, as reps reported that they were able to reduce the matters they had to react to immediately by two-thirds. This restored some feeling of control among them. He also suggested ways to formally mourn the closing of their cherished work sites, such as "heritage and succession" ritualsand "last suppers" served by managers. Reps reported that they felt more at peace with themselves after these mourning ceremonies because they felt that they had been treated with respect. Change agents who ignore the crucial mourning period and rush the organization through this meditative phase riska backlash (Moses, 1987). Ifchange recipients' emotional pain is denied, the organization may become paralyzed by survivor sickness and devoid of creative energy (Noer, 1993). But as Vicky noted, not everyone responded positively to the training efforts: Some reps rebelledandrefusedto be trained,sayingthatthey had onlyfourmonths leftto work;otherswept. One hourlater,every- thingseemed to be forgotten.Irealizedthatpeoplewere livingon the edge, andfeelings were verycontagiousingroups.A computer systems breakdownwas likethe strawthatbrokethe camel'sback. We hadto be alwaysvigilantandcouldnevertakeforgrantedthat thingswere goingwell. Curiously,people who reactedwiththe most calminone site when the announcementwas madeare now reactingthe most. Theyhave notaccepted the closing.We offered them psychologists'individualhelp,butthey angrilyrefused,saying thatthey were not crazy. In response, Vickyorganized emotion management in "infor- mation sessions" for small separate groups of 20 to 40 reps. Iasked to observe one of them. Rapiddownsizing exerted tremendous pressure on line groups to maintain an accept- able level of customer service, and taking a whole day for this kind of "touchy-feely" exercise represented a risky investment of time for line managers who were evaluated monthly for meeting concrete measures of customer satis- faction and revenue/cost objectives. While most of the morn- ing was devoted to addressing employees' instrumental queries about the strategic direction of their own group and of the whole company, the afternoon session was set aside to bringto the surface and deal with their hidden emotions. Employees were encouraged to verbalize in small groups, outside the scrutiny of their superiors, their private feelings about the ways in which change had affected them. Then each group was invited to make a drawing about how it felt collectively, and drawings were displayed around the room. There were drawings of anxious-looking people in lifeboats, of caravans lost in the desert, big thunderstorms, and of a small sun hiding behind black clouds. Itwas only then that individuals started to realize how similartheir feelings were, and they started to laugh and joke about them. Sam, the process consultant, then showed them Bridges' (1980) transi- tion model and explained that it was "normal"and "com- mon" to have these feelings. My initialskepticism about the effectiveness of these emo- tion-management techniques subsided in my informal inter- 52/ASQ, March 2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
Emotional Balancing actions with workersduringthe followingdays. Manytold me thatthey foundthese emotion-attendingsessions very useful.The sessions elicitedpleasant/low-activationfeelings such as calmandsympathyandattenuatedunpleasant/high- activationemotions such as fearand helplessness. Theyalso helped recipientsto accept theirown emotions andgave them the additionalenergy to continuetheirhardwork.They reportedthatthey felt moreat peace with themselves and more sympathytowardtheirpeers and superiors.These emotion-attendingactions seemed to help reducefurther absenteeism and decline inemployees' morale.Vickyreport- ed thatthe qualityof customer service remainedhighand "peopleremainedprofessionalandtook customer service to heart." These findingsseem to supportBartelandSaavedra's(2000) findingthat emotion managementis particularlyeffective for intense emotions. Expressingpersonallyupsettingexperi- ences has been foundto improvementalandeven physical health(Pennebaker,1997). Repressionof a traumaticexperi- ence onlyserves to maintainthoughts of the experience, and these willnot disappearuntiladequatelyresolved (Wegner, Erber,andZanakos,1993). Clarityin labelingone's feelings helps resolve one's thoughtsabouta past traumabecause emotionaldisclosurehelps reorganizedisturbingexperiences ina causalway andgives them a coherent place ina per- son's life(Saloveyet al., 1999, 2000). By narratingstories, people escape frompassive and repetitiveruminationsthat amplifydistress andenhance understandingof theirsitua- tions. Knowingthe causes of discomforthas been foundto reduce anxietylevel andpanicattacksamong patients because it mitigatestheirfearof losingcontrol(Dienstbier, 1989). Greenberg(1996)arguedthat effective emotion-focused interventionsinvolvethree processes. First,one has to come to accept that unpleasantfeelings are not objectivethings butthe outcome of one's internalrelationswith an event. One shouldfocus on the event itself and its associated emo- tions. Second, one has to re-ownthese feelings through experientiallinkingto the self and not tryto depersonalize them throughintellectualizing.Last,one develops a sense of agency insofaras one feels confidentthatactionis possible, andthis generates hope: "Itis Iwho am feeling this, it is I who am the agent of this feeling, and it is Iwho can do something aboutthis." CONTECProject:Chaos, Eventual Adaptation Inadequateattendingto recipients'emotions can leadto underperformanceinchange outcomes, as illustratedinthe implementationof CONTEC.Thisprojectaimedat consolidat- ing29 repairtest sites intoseven inone yearandaffected about2,000 technicians,downsizingthe groupby about20 percent.Changeagents' commitmentto realizethe opera- tionalefficiencyand manpowersavings were strong,and they didnot feel the need to get the buy-inof the recipient linemanagers,as they could not "affordthe time." Agents were conceptuallyaware of potentialemotionalissues but couldnot gauge theirimportancebeforehand.Theywere 53/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
more concernedaboutwhetherto introducethe change in workprocesses concurrentlywiththe physicalconsolidation, fortop managershadorderedthem to rushthe physical change to "grabthe cost savingsandworryaboutthe rest later."As one change managementadvisorasserted after the consolidationtook place, "Ireallydo believethere is a time forpower.Idon'tbelieve intouchy-feely.[Istress task processes and]results-focusedthinking." The change projectmanager,Gary,reporteda "horrendous amountof mistrust"and lukewarmcooperationfromrecipi- ent linemanagers.Unionreps complainedthatmanagers minimizeddirectcontacts with employees. UnlikeCONRET, change agents here didnot benefitfromthe voluntary actions of linemanagersto attendto theirsubordinates'emo- tions. Garyofferedthis partialexplanation:"Manyinexperi- enced technicianswere promotedas managers.Peoplewere overcome with other[work]prioritiesandotherchange pro- jects. Ittook us a lotof time to learnhow to communicate properly... anddealopenlywith emotions."Agents discov- ered intense emotionalbacklashonlywell afterthe consolida- tionwas completed. Emotionalresponses were similarto those experiencedbythe service reps. Garynoted, We [haveunderestimated]the painof people havingto quit.A lotof people hada toughtime moving,andthose who did,hada hard time adjusting.People now takean houranda halfto get to work when itonlytookthem 15 minutesbefore.We were affectingpeo- ple's lives and itgot extremelyemotional..... We foundthatwe didn'tallowthe time to let theirfeelings out ... people were still caughtup inthe emotions of leavingtheir[joborhometown]... andwere bringinga lotof emotionalbaggageto the job ... .We don'tdealwell witha lotof these soft issues. The consolidationwas physicallyachieved,butthe qualityof service declineddrastically,and resistanceto change remainedfierce.As a unionrepreported,"Peopledistrust the company."Theabsentee rateincreasedby about20 per- cent. Loudcustomer complaintscaughtthe attentionof top management,whichdemandedurgentservice recovery actions.Whenagents broughtinfacilitatorsto attendto emo- tions abouta year later,they noted a "nightandday"differ- ence andconcludedthatthese "soft"interventionsshould have been done upfrontinthe change. OUT-EASTand OUT-WESTProjects:Adaptation and Chaos Most of the emotion managementat Servicowas done by middlemanagers,butinan outsourcingproject,otherorgani- zationmembers undertookthis task when managersignored it. Foranalyticalconvenience, Itreatitas two distinctchange cases, one affectinghome repairtechniciansinthe Eastern divisionof Servico(OUT-EAST),the otheraffectingtechni- cians inthe Western division(OUT-WEST).Thetechnicians belonged to the same union.Changemanagersclaimedthat they couldcut costs by about$30 millionannuallyby giving home repairto outside supplierswho chargedlowerprices. Althoughthere was strongcommitmentto change fromcer- tainmanagers,linemanagershere didlittleto attendto recip- 54/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
Emotional Balancing ients' emotions before and duringoutsourcing,forthe same reasons as describedinCONTEC. These two cases, which seem to displayproblemssimilarto the previousconsolidationcases, revealtwo surprisingfind- ings. First,throughdeliberatereframing,certaintechnician unionreps inthe Easterndivisiontriedto reduce members' fearandangerat outsourcing,while theircounterpartsinthe Western divisionexacerbatedtheirmembers' agitation.This may helpexplaininpartwhy implementationof OUT-EAST was quickerand less costly thanthatof OUT-WEST.Second, the unionreps workedas front-lineworkersbutwere also elected as middlemanagersinthe unionhierarchy,and some of them sought to reducethe agitatedfeelings among their members to maintainsome operationalcontinuitywhen line managersfailedto do so. As a unionofficialexplained,"In the Eastthere's a sense thatthe corporationis losingthe competitivebattle,the job marketis not as great [as inthe West], so workerstend to be more accommodating.The level of angerand militancyis differentbetween the two divi- sions." Notably,unionofficialsbased inthe Eastcreated some continuityby askingServicomanagersto set upa new company(Newco) inwhich the outsourcedjobs couldbe givento some of the 3,500 techniciansbeing let go. This wouldallowat least 900 techniciansinthe two divisionsto keep doingsimilartasks (at$12 an hourversus the $18 previ- ously earnedwith Servico)andthe unionto keep uniondues. Newco would be held by an investmentfundbased inthe East. Butthis unusualscheme was poorlyreceived inthe West, where itwas seen as drivenby people inthe East. Unionreps reportedthreatsof angrymembers suing the unionleadershipforcolludingwith managementto downsize andoutsource, andthere were incidentsof physicalviolence. Western unionreps reportedthat "moraleis rockbottom and people arejust totallyfed up." These contrastingresponses suggest thatfaced with essen- tiallythe same objectiveevent, influencerscouldalterthe type of emotions experiencedby recipientsby reframingthe situationand by raisingalternativemeaningsthat reshape people's interpretationsof events andtheiremotional responses to them (Wasielewski,1985). How the unionreps framedoutsourcingineach divisionexplainsverydifferent types of emotions elicitedamong theirmembers: Whenyou outsourcethisjob,wouldyou say we want you to go backto do the same jobfor$12 an houras opposed to $18 with benefits?Tome thatwas immoral.Itdemoralizedeverybody.It smackedof sleaze andno ethics. (Westerndivision) We have succeeded inprotectingvaluablejobs. Thisis a win-winfor boththe companyandthe union.We convincedthe companyto give workexclusivelyto Newco .... It'snot to the union'sadvan- tage to go on strike;we couldhave lost even morejobs since sur- plus managerscouldreplacetechnicians.(Easterndivision) EMOTIONALBALANCINGAND CHANGE OUTCOMES Table3 summarizes,foreach change case, the presence or absence of emotion management patternsdrivingchange or promotingcontinuity,as well as the associated outcomes for 55/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
Table3 Effects of Emotional Balancing on Outcomes Change Commitmentto Attendingto recipi- cases change ents' emotions Outcomes at aggregate work-grouplevel Inertia 0 Fine-tuningchanges withfinancialbenefits 0 Littleenhancementinorganizationalcapabili- ties 0 Learningto changevirtuallyabsent Inertia - Suboptimalresourceallocationprocess + Learningto changeincludedbothtechnical andhumandimensionsforindividualchange agents Inertia - Suboptimalfinancialcontrolsystems + Learningto changewas mainlytechnical Adaptation 0 Physicalconsolidationrealized;partialrehir- ingof laid-offworkersto restorecontinuity + Continuity:servicequalityrestoredafter1- yeardecline ++ Learningto changeincludedbothtechnical andhumandimensions Adaptation 0 Physicalconsolidationrealized + Continuitymaintained:servicequality remainedhigh ++ Learningto changeincludedbothtechnical andhumandimensions Absentduring change (adequate afterchangewas done andseeing negativeresults) Some Absent Chaos,eventualadaptation 0 Physicalconsolidationrealized - Costoverrunsforovertimeandtrainingof new workers;significantdeclineincus- tomerservice - Littlelearningto changeduringchaotic stage + Chaoticsituationreducedwhen emotional attendingto actionstookplaceafterthe change ++ Learningto changeincludedtechnicaland humandimensionsafterchaoticstage Adaptation 0 Physicaloutsourcingrealized + Inefficientchangeinworkprocesses reme- diedafterabout1.5 years + Declineincustomerservice remediedin6 months ++ Learningto changeincludedbothtechnical andhumandimensions Chaos 0 Physicaloutsourcingrealized,butlateby one yearcomparedwith Easterndivision - Inefficientchangeinworkprocesses still unresolvedafter2.5 years;declineincus- tomerservice unresolvedafter2.5 years + Learningto changewas mainlytechnical; managersstartedto be awareof human dimensionsafter2 years. Note:- = littleornegativeadaptivebenefitsforthe group/organizationinrelationto resourcesspent to implementthe changeproject;0 = modest orphysicalchangewithno significantimprovementinorganizationalcapabilities;+ = pos- itiveadaptation:and++ = significantimprovementinorganizationalcapabilities. 56/ASQ,March2002 FAST-ADMIN (3 projects) Low INV Absent (neutralizedby executives) FINA Little Adequate Absent High Diluted HighCONRET CONBUS High High HighCONTEC OUT-EAST OUT-WEST High High at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
Emotional Balancing each. Table3 characterizesthe projectsby change outcomes at the work-grouplevel.Work-groupinertiaresults in modest, incrementalchange, at best. Work-groupadaptationis reflect- ed inthe degree to which the change projectis realized,as well as the continuityinthe qualityof customer service. Work-groupchaos characterizesprojectsinwhich the change projectwas generallyrealizedbut inwhich benefits were below initialforecasts, employees were inturmoil,andthere was serious degradationinthe qualityof customer service. Thetable also characterizeswhat organizationmembers have learnedfrombeing involvedinthe change projects,as agents or recipients,on boththe technicaland humandimensions. The technicaldimensionincludesincreased knowledge and skillsinareas such as statisticalanalysis,projectmanage- ment, benchmarking,process mapping,time and motion studies, workprocess reengineering,andtraininginvarious informationtechnology hardwareand software to increase workproductivity.The humandimensioninvolvesincreased knowledgeand skillsinareas such as communicatingbad news constructivelyto employees, evaluatingand retaining people who can workinthe new environment,facilitating groupdynamicsunderstress, and recognizingvariouspeo- ple's personaland emotionalneeds and attendingto them in a timelyand sensitive manner. Thethree FAST-ADMIN,INV,and FINAprojectssuggest that weak commitmentto change ina high-pressureradical change context is likelyto leadto work-groupinertia,with or withoutattendingto recipients'emotions. The CONTECand OUT-WESTcases suggest that strongcommitmentto change with littleattendingto emotions can leadto work- groupchaos. Chaosor inertiaresults indeterioratingwork- groupperformanceina radicalchange context. CONTECrep- resents an in-caseexperimentationof attendingto recipients' emotions. The physicalconsolidationwas done quicklywith littleregardto employees' feelings. Thisresultedina signifi- cant decline inthe qualityof customer service, which promptedcostly remedialactions, includingpayforovertime and recruitingnew workersandtrainingthem. These actions attenuatedthe crisis,but underperformancestillprevailedas a resultof seething resentment andemotionalcontagion between survivorsand new workers.Onlywhen change agents realizedthatthey needed to attendto recipients' emotions was the qualityof customer service restored.The change agents' learningat the beginningof CONTECwas mostlytechnical-benchmarking, process reengineering,and projectmanagement-and evolved to includesignificant human/emotionaldimensionsthanksto lateractions that reducedchaos, such as groupmeetings to share anddiscuss feelings aboutchange, mourning,and personalcounseling. The CONRET,CONBUS,and OUT-EASTcases suggest that reasonablework-groupadaptationto change, includingmulti- dimensionallearning,is more likelyto occurwhen actions involvingcommitmentto change andattendingto recipients' emotions are bothpresent. Beyondtechnicalskills,adaptive groups learnedmore change skills(e.g., humandimensions) fromattendingto emotions thandidgroupsthat onlystarted to develop a conceptualawareness of it. Radicalchange can 57/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
arouse strongemotions inchange agents and recipients alike,spanningthe rangeof emotions depictedinthe circum- plex model presented above, infigure2. Emotionalbalancing actions can be self- as well as other-directed,as shown in the conceptualmodel infigure3. Inthis model,organizational adaptation-imperfectlyoperationalizedthroughthe work unit'sabilityto integratethe change project,maintaincontinu- ityinits operations,and learnfromits change experience-is influencedbythe emotionalbalancingactivitiesof organiza- Figure3. An elaborated model of emotional balancing duringradicalchange. BEHAVIORS Emotional commitment to change projects EMOTIONALSTATES Strong Increasepleasant/ high-activation emotions (Cheerful) Decrease unpleasant/ low-activation emotions (Dejected) CHANGEPROJECT GROUPOUTCOMES GROUPCHAOS t Maintain pursuitof change project y Middlemanagers' emotionalbalancing 4o ,.I-i Increase pleasant/ low-activation emotions (Quiescent) Decrease unpleasant/ high-activation emotions (Agitated) Learningfrom change successes & failures Maintain continuityin operations GROUPINERTIA GROUPADAPTATION 58/ASQ,March2002 Weak Attending to recipients' emotions 10- at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
Emotional Balancing tionalmembers. The model suggests that organizational adaptationis influencedby both kindsof emotionalbalancing actions, one aimed at drivingchange, anotherat maintaining continuity. Togenerate the emotionalenergy thatfuels the pursuitof theirprojects,agents have to strivecontinuouslyto elicit pleasant/high-activationemotions and reduce unpleasant/low- activationemotions inthemselves. Tomaintainoperational continuityduringradicalchange, recipients'emotions also have to be carefullymanaged,by elicitingpleasant/low-activa- tion emotions andattenuatingunpleasant/high-activation emotions. Underthe severe constraintsof time and resources that often promptthe need for radicalchange, effective emotion managerstryfirstto calmtheirhighlyagi- tated employees before tryingto elicitenthusiasticsupport forchange. Calmingprocesses includeorganizingone-to-one listeningto concerns that recipientsmayfeel uncomfortable voicinginpublic;empatheticratherthanjudgmental response; attendingto recipients'personalandwork-related concerns, especiallywhen these are caused bythe change event; organizingmourningsessions of cherishedvalues that are no longerappropriatewhile extollingvalues thatare pre- served;organizingregularsmall-groupmeetings to informas well as to listento recipients'feedback on bothtask and emotionalneeds. These activitiescould be sharedamong manymanagers.Thanksto the aggregate emotionalbalanc- ingefforts of manymanagersinteractingwith a group- some managerswere moreattentiveto promotingcontinuity, others morefocused on drivingchange-the workgroup couldadaptto change andavoidthe serious underperfor- mance associated with extreme chaos or inertia. The cases seem to suggest that emotionalbalancingis par- ticularlyimportantformajorchange that requiresbothstrong commitmentto change and, minimally,some moderate acceptance fromrecipientsto integratethe change while maintainingsome of theirtraditionalbutstillimportanttasks (e.g., servingcustomers). Realizingambitiouschange requirescommitment,initiative,and perseveranceto over- come skepticismand inertia.Butto the extent thatthis change disruptsrecipients'workand personallives ina major way, appropriateattendingto emotions should be calibrated to the recipients'emotion types and/ortheirintensity.For example, less intense attendingto emotions seemed requiredinthe case of INV(reengineeringof financingprac- tices), which probablyaffected the recipients'personalwel- fareto a lesser extent thandidCONBUS,which involved reengineeringof work,sites closings, and relocation. Middlemanagerstypicallytook on the emotionalbalancing rolein radicalchange. Thanksto theirjobresponsibility,they were able to devote moretime to internalcompanyissues thanthe executives, who hadto attendto multipleexternal institutionaldemands. Linemiddlemanagerswere generally closer to theirfront-lineworkersthanwere the executives and,therefore,moreattunedto theiremployees' needs. Hence, middlemanagersratherthanexecutives were more likelyto be effective with emotionalbalancingindealingwith workers,because emotion management must be highly 59/ASQ, March 2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
appropriateinorderto be effective. One must be close to a particularindividualorgroupto recognizethat not everyone feels the same type of emotionwiththe same intensityat the same time inresponse to the same event. Different emotionalresponses, needs, orcopingmechanisms need to be recognizedandattendedto accordingto the demands of the specific situation.Mishandlingof emotionalresponses risksbackfiringon change agents if recipientssuspect them of being manipulativeratherthancaringandauthentic.In contrast,appropriateemotionalbalancingcan providebenefi- cialorganizationaloutcomes. DISCUSSION Inthe case studies reviewed here, middlemanagers'aggre- gate actions seem to havefacilitatedtwo importantorganiza- tionaloutcomes: developmentof new skillsandoperational continuity.Fromthe mixedsuccesses andfailuresof the change projects,learningto change seems to represent,at an aggregateorganizationallevel, one of the majorbenefits realizedthroughchange projects.Throughlearningby doing, certainorganizationmembers developed a more refinedand embodied understandingof the necessary skillsinvolvedin major,rapidchange. Theygraduallybuiltnew skillsbyapply- ingandadaptingto theirown workcontext a varietyof change tools that hadbeen relativelynew to manyof them. Besides learningthe technicaland humanelements of change knowledgeandskills,veteranmanagersalso learned to interactwith newcomer executives andexternalconsul- tants, and incertaincases appreciatedthe exposureto new ways of doingthings,such as aggressive marketing,quick competitiveresponses, takingmore risksinfast action,and the importanceof cash and profits. Withregardto operationalcontinuity,certainmiddleman- agers' attentionto workdetailsandsubordinates'emotions contributedinpartto a relativelysmooth downsizingina numberof workunits.Byworkingwith unionrepresentatives to soften downsizingand relocationhardshipson a number of recipients,managersreducedthe likelihoodof extreme responses. The initiallyfeared massive sabotages andstrikes by powerfulunionsdidnot occur.Managers'emotion-attend- ing behaviorsreduceda potentiallyhigherstate of angerand fearamongthe employees drivenby emotionalcontagion. Continuityinprovidingproductsandservices allowedServico to maintainsome of its revenue-generatingcapabilityduring CT,thus providingpartof the needed cash to fundthe multi- tude of change projects. The modelof emotionalbalancingdevelopedherespecifies three interrelateddimensionsof a change process theory: middlemanagersas the mainactors,emotionalbalancingas the process, andorganizationalradicalchangeas the specific context.Themodelcontributesto at least threedifferent researchstreams:researchon organizationalchange,the socialpsychologyof emotion,andmiddlemanagement.It contributesto the radicalchange literatureby proposingemo- tionalbalancingas a promisingtheoreticallens to use in examiningthe challengesof implementingradicalchange.The literatureon radicalchange has often focused on executives. 60/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
Emotional Balancing Thisstudysuggests thata richerknowledgeof radicalchange can be achievedby includingotheractors. Itrevealsthatthere were a numberof middlemanagers,manyof them veterans, who were willingandableto initiate,lead,and implement changes even underverystressful conditions.Thisfinding providesa potentialsolutionto one conundrumof the theory of punctuatedequilibrium(Tushmanand Romanelli,1985), which holdsthatwhile outside executives are more likelyto initiateradicalchange, veteranexecutives who havealready been let go mighthave been morecapableof implementing it.Thisarticleappearsto be the firstto revealthe emotional balancingroleof middlemanagersina radicalchange context andthus contributesto the middlemanagementliteratureby highlightingthis productiverole. Inaddition,these findings inviteus to revisitthe typicalassociationof emotionalitywith irrationalityandorganizationaldysfunctionality(Weber,1946; Jehn, 1995).Theyalso challengethe assumptionthatself- interestandpoliticsarealwayscounterproductiveto organiza- tionallearningandadaptation.Instead,organizationalchange couldbe construedas the coevolutionof interactingprocess- es takingplace between instrumental,organizationallylegiti- mate concerns (Simon,1976)andmarginalizedbutpersonally meaningfulaspirationsandemotions. Thisarticlealso contributesto the literatureon the social psy- chologyof emotion. First,it linksmicro-levelemotions to macro-levelorganizationalandstrategicphenomena. Radical change is strategicbecause its outcome affects the life chances of the organization.The articleillustrateshow emo- tionalbalancingfacilitatesadaptivechange at the work-group level. Itreveals how a numberof middlemanagersformeda self-emergingsocial supportgroupthat attendedto employ- ees' emotionalneeds inan organizationthat is supposed to functionon instrumental,unemotionalroutines.Thissocial supportgroupprovidedan emotionalbufferagainstand repairunitforstressful events andthus facilitatedcontinuity (Stroebeand Stroebe, 1996). Othermanagersemerged as intrapreneurs,applyingemotion managementto drive change, andthis relaxedthe unrealisticrequirementthatvir- tuallyevery influentialorganizationalactormust supportand drivechange (Kotter,1995).Thanksto this diversityinthe emotion-managementpatternsthat shape emotionalbalanc- ing, some formof emotionalintelligencecould be created at the grouplevel withoutrequiringa majorityof influentialindi- vidualsto be emotionallyintelligent.Thissuggests that orga- nizationscoulddevelop emotion-relatedroutinesthatfacili- tate organizationaladaptationthattranscends individual emotionalintelligence(Huy,1999). Thus,while buildingon some of the insightsof the emotional intelligenceliterature,such as emotionalawareness and repair,this study suggests a complementarypathto organiza- tiontheorists interested in includingemotion intheir research.The currentskepticismaboutmeasuringemotional intelligenceandassociated undersubstantiatedgrandiose claims (cf. Saloveyet al., 2000) shouldnot discourageorgani- zationscholarsfromstudyingemotions. Inadditionto or in lieuof personalityand individual-levelemotion constructs, one mightconsiderstudyingthe aggregationof emotion- 61/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
Emotional balancing of organizational continuity and radical change the contribution of middle managers
Emotional balancing of organizational continuity and radical change the contribution of middle managers
Emotional balancing of organizational continuity and radical change the contribution of middle managers
Emotional balancing of organizational continuity and radical change the contribution of middle managers
Emotional balancing of organizational continuity and radical change the contribution of middle managers
Emotional balancing of organizational continuity and radical change the contribution of middle managers
Emotional balancing of organizational continuity and radical change the contribution of middle managers
Emotional balancing of organizational continuity and radical change the contribution of middle managers

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Emotional balancing of organizational continuity and radical change the contribution of middle managers

  • 1. http://asq.sagepub.com/ Quarterly Administrative Science http://asq.sagepub.com/content/47/1/31 The online version of this article can be found at: DOI: 10.2307/3094890 2002 47: 31Administrative Science Quarterly Quy Nguyen Huy Contribution of Middle Managers Emotional Balancing of Organizational Continuity and Radical Change: The Published by: http://www.sagepublications.com On behalf of: Samuel Curtis Johnson Graduate School of Management at Cornell University can be found at:Administrative Science QuarterlyAdditional services and information for http://asq.sagepub.com/cgi/alertsEmail Alerts: http://asq.sagepub.com/subscriptionsSubscriptions: http://www.sagepub.com/journalsReprints.navReprints: http://www.sagepub.com/journalsPermissions.navPermissions: http://asq.sagepub.com/content/47/1/31.refs.htmlCitations: What is This? - Mar 1, 2002Version of Record>> at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 2. EmotionalBalancingof Organizational ContinuityandRadical Change:The Contributionof Middle Managers Quy Nguyen Huy INSEAD ? 2002 byCornellUniversity. 0001-8392/02/4701-0031/$3.00. Specialthanksgo to Joe Poracforhis constructivesuggestionsandcontinuous encouragement,whichhelpedme persist indevelopingthis paper,andto Linda Johansonforherthoughtfuleditorial assistance.Appreciationalsogoes to the ASQanonymousreviewers,Reinhard Angelmar,MiguelBrendl,Christiane Demers,YvesDoz,NicolaDragonetti, JavierGimeno,AnnLangley,Henry Mintzberg,PauloProchno,SusanSchnei- der,KenSmith,VeroniqueTran,LukVan Wassenhove,FrancesWestley,Christo- pherZott,andthe SocialSciences Human ResearchCouncilof Canada. Based on a three-year inductive field study of an attempt at radicalchange in a large firm, Ishow how middle man- agers displayed two seemingly opposing emotion-man- agement patterns that facilitated beneficial adaptation for their work groups: (1) emotionally committing to person- ally championed change projects and (2) attending to recipients' emotions. Low emotional commitment to change led to organizational inertia,whereas high com- mitment to change with little attending to recipients' emotions led to chaos. The enactment of both patterns constituted emotional balancing and facilitated organiza- tional adaptation: change, continuity in providing quality in customer service, and developing new knowledge and skills.* Competitivepressures caused by globalization,deregulation, anddiscontinuoustechnologicalchanges seem to have forced manyorganizationsintoconsideringradicalchange as a way of survivingandgrowing.A radicalchange is a qualita- tive alterationof an organization'srulesof organizing-the fundamentalrulesthat members use to interactcognitively and behaviorallywith the worldaroundthem (Millerand Friesen,1984; Greenwoodand Hinings,1996). Radical changes may be infrequentinorganizationallife, butthey are consequentialto an organization'slifechances: realizingradi- cal change is difficult,anddisappointmentsand mortality risksare significant(Singh,House, andTucker,1986; Ham- brickand D'Aveni,1988). Whileradicalchange seems at times necessary fororganiza- tionaladaptation,bothcontinuityandchange aretypically simultaneouslypresent inan organizationand may even be necessary for its continuousadaptationoverthe longterm (e.g., Brownand Eisenhardt,1997; Leanaand Barry,2000). Organizationspursuechange to enhance theircompetitive positionsandto grow.Atthe same time, they seek to sus- taintheircompetitiveadvantageby reducinguncertaintyand securingcontinuityinexploitingtheirresources. Furthermore, althoughorganizationsmayat times need to transformthem- selves rapidlyto meet new institutionaldemands, such as deregulationandglobalcompetition,they typicallyhave to maintainoperationalcontinuityto provideservices to cus- tomers, preserve institutionallegitimacy,and secure the resources to fundcostly changes (Oliver,1991). Although much researchhas been done on radicalchange, littlehas been done on maintainingcontinuityduringsuch change, a task thatgenerallyfallsto middlemanagers,who must also implementchange. Thistension between continuityand change also exists on the individuallevel. Employeesseek predictablerelationships, dependableresources, andconsistency inbehaviorandthink- ing,while simultaneouslyseeking new stimulationand per- sonal development. Individualsare more likelyto joincollec- tive action,such as implementingchange, when there is trust,support,ororganizationalidentification(LeanaandVan Buren,1999). Partof the continuityand change tradeoffthus involvesmaintainingthe emotionalbalanceof individualsin the companyandattendingto emotion-managementactivi- ties (Staw,Sutton,and Pelled, 1994; Huy,1999; Barteland 31/Administrative Science Quarterly, 47 (2002): 31-69 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 3. Saavedra,2000) so thatemployees continueto be productive duringradicalchange. Thisstudyexplores how middleman- agers do this by managingthe emotionalstates of their employees ina radicalchange context, a rolethatwould not be predictedbythe literatureon radicalchange. Middlemanagementhas often been singledout as the pri- marylocus for resistanceto radicalchange (Biggart,1977; Miles, 1997),even thoughthe literatureon middlemanagers has documentedtheirproactivecontributionto organizational innovationinincremental-changecontexts. Insuch an envi- ronment,middlemanagersare motivatedto act underfamil- iarincentivesandstructurallypredesignedrewardsystems (e.g., Nutt,1987; Uyterhoeven,1989;Westley, 1990; Floyd and Lane,2000). Yet,inplannedradicalchange, middleman- agement's contributionsare seen as muchweaker.The litera- turetends to de-emphasizethe roleof middlemanagersand to portraythem ina relativelyself-effacingroleas compared with executives. Middlemanagershave been portrayedas de-energizedandemotionallystrickeninthe face of the over- whelmingpoweranddriveof turnaroundexecutives (Noer, 1993; O'Neilland Lenn,1995).Tushmanand Romanelli (1985: 173-180) contendedthat "onlyexecutive leadership can mediatebetween forces forconvergenceandforces for change"and "implementthe set of discontinuouschanges" inradicalchange, whereas middlemanagement"interpolates structuresandsystems" inincremental-changecontexts. Most normativemodels of strategytend to accordmiddle managementa supportingroleat best (Shrivastava,1986); executives areadvisedto reduceequivocalnessso that mid- dle managerscan act on clearinstructions.Conventionalwis- dom suggests that middlemanagerstend to attenuatethe pace and magnitudeof the quantumorganizationallearning requiredina radicalchange (FloydandWoolridge,1996). Executivesview middlemanagersas partof the inertialsys- tems and barriersto change thatneed to be co-opted,side- lined,ordisposed of, ifattempts at co-optationfail(Biggart, 1977;TichyandSherman,1994). Suchviews overlookthe rolethat middlemanagersmay playinmaintainingcontinuity duringradicalchange. Fundamentalchange inpersonnel,strategy,organizational identity,orestablishedworkrolesand interestsoften triggers intense emotions (Bartunek,1984). Emotionsinturnaffect how differentgroupsinterpreta proposedchange and how they behave. Howorganizationsattendto a richrangeof employees' emotions couldfacilitateor hinderthe progress of ambitiouschange (Huy,1999). Butthere has been little systematic empiricalresearchon the interactionof multiple groupsduringradicalchange (fora review,see Rajagopalan and Spreitzer,1997)oron how managersdealwiththe emo- tions thatthis kindof change generates. Middlemanagers are structurallycloser to theiremployees andso are likelyto be moreattunedto theirsubordinates'emotionalneeds. Comparedwith executives caughtup inmanyexternal demands, middlemanagersare likelyto have moretime to interactwiththeiremployees. Thissuggests thatmiddle 32/ASQ, March 2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 4. Emotional Balancing managerscouldbe key lociforemotion managementduring change. Ihave used groundedresearchto explorehow middleman- agers mightfacilitateor inhibitchange by managingor mis- managingthe emotions of theiremployees. Relyingon the findingsof a three-yearfieldstudy of a largefirmundergoing radicalchange and byfocusing on projects,Ibuilda theoryby describinghow middlemanagersfacilitatedorganizational adaptationthrougha juxtapositionof emotion-management activities.Icallthis theoryemotionalbalancing.Emotional balancingrefersto a group-levelprocess involvingthe juxta- positionof emotion-relatedactivitiesintendedto drivechange andto inducecontinuityina groupof people. Differentindi- vidualscan performseparate activitieswithouta common goal and producean aggregatedeffect. Such a dynamicbal- ancingprocess does not assume the existence or practicality of achievingan optimalemotionalbalance.Emotionalbalanc- ingmay representa partialsolutionto the difficultiesof realiz- ing radicalchange because itfacilitatesorganizationadapta- tion:too manychange actions withoutregardto continuity couldcreate organizationalchaos, while the opposite could leadto inertia(Sastry,1997). Bothextremes leadto underper- formance. Figure1. A model of emotional balancing duringradicalchange. Emotional commitment to change projects t Middle managers' EMOTIONAL CHANGEPROJECT emotional balancing STATES - GROUPOUTCOMES Attendingto recipients' emotions Figure1 shows the theoreticalmodel thatwas inductively derivedfrommy data. Ipresent it here as an interpretive frameworkto organizethe presentationof the conceptual foundationsas well as the empiricalfindings.Verybriefly,to generate the emotionalenergy thatfuels the pursuitof their change projects,middlemanagersas change agents have to strivecontinuouslyto managetheirown emotions associated with change. Tomaintainoperationalcontinuityina radical change context, recipients'emotions also have to be careful- ly managed.These two types of behaviorcreate emotional states thatthen affect the outcome of the change project. EMOTIONMANAGEMENTINRADICALCHANGE A reviewof the literatureon emotions gives us some under- standingof how they may be importantin radicalchange as 33/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 5. regulatorsof behavior.Emotionsarethe organizedpsychobio- logicalresponses linkingphysiological,cognitive,and motiva- tionalsystems (Saloveyand Mayer,1990).Althoughconcepts such as emotions, mood, affect, andfeelings are distinct(cf. Ekmanand Davidson,1994),drawingout the subtlerdiffer- ences amongthem does not seem criticalforthe theoretical aims of this paper.Igenerallyuse the termemotion, since the pressures of radicalchange often intensifyaffective states anddirectthem towardspecific objects, whichdistin- guishes emotionfrommoregeneralizedmoods (Barteland Saavedra,2000). Emotionalintensitydepends on the relationshipbetween an event anda person'sframeof reference,whichdetermines the subjectivemeaningof the event (Frijda,1988). Change andcontinuityare subjective,relativeconcepts that referto differentialratesof change (Sztompka,1993). Continuity refersto relativelypredictablechanges, as perceivedby those who are affected bythem, thatcan be forecast by inferencefrompast patterns.Forinstance,people share cer- tainexpectationsaboutfuturechanges intheirgroup'scom- positionandwork(e.g., employees age andretire,equipment graduallybecomes obsolete). Radicalchange is discontinuous and unpredictablemodificationinstates overtwo separate instantsof time as subjectivelyperceivedbythe people affected (Fordand Ford,1995),andthis elicits intense emo- tions. Emotionsare inherentto change inthatthey are arousednot by the presence of favorableor unfavorableconditionsbutby actualor expected changes inthese conditions(Frijda,1988). Neurologicalresearchhas establishedthatemotions confer flexibilityby enablingpeople to reorderprioritiesas situations change, allowthem to take actionsthey believe willenhance theirchances to surviveandflourish,andenablethem to set long-termgoals, especiallywhen choices involveincomplete dataor incommensuratealternatives(Damasio,1994). Emo- tions help people to makea leapof faithintothe unknown (Zajonc,1980;Westen, 1985). Cognitionandemotionare closely intertwinedinasmuchas cognitiveappraisalsare often necessary to arouse emotion (CloreandOrtony,2000). Lazarus's(1991, 1993)emotionthe- orysuggests thatpeople go througha two-stage appraisal process. Throughprimaryappraisal,they evaluatethe signifi- cance of a new event inrelationto theirown goals andcon- cerns. Ifthey appraisethe potentialconsequence as benefi- cial,pleasantfeelings arearoused.Theyexperience unpleasantfeelings ifthey appraisethe consequence as potentiallyharmful.Emotionscan at times leadto paralysis because of fear,butthey often generate a change inreadi- ness to act thatpreparespeople to takeaction(Frijda,1996). Emotionsfirstserve as relevancedetectors, focusing peo- ple's attentionon change events, then as motivatorsof action.A potentialactionresponse is determinedthrough secondaryappraisal,whereby people evaluatetheirown capabilitiesfordealingwith a relevantchange event. Ifthey believe they have adequate resourcesto dealwiththe new event, they are more likelyto respondactively.Otherwise, 34/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 6. Emotional Balancing they mayadopta passive/avoidanceapproach,which is sometimes interpretedas a formof resistance to change. Atthe riskof oversimplifying,Iuse the "circumplex"model of emotions shown infigure2 to explorethe wide rangeof emotions that people mayexperience duringradicalchange Figure2. Circumplexmodel of emotions (Larsenand Diner,1992). Stimulated, surprised HIGHACTIVATION Enthusiastic Fearful Anxious Distressed Sad Gloomy Unpleasant Disappointed Shameful Dejected Fatigued Excited Happy Pleased Pleasant Calm / Comforted Relaxed LOWACTIVATION Quiet,tranquil 1 Althoughthere is debateaboutwhether everyoctantof the circleshouldbe equal- lyspaced45 degrees apartorwhether the circleshouldbe anellipsebecause of the higherinfluenceof the valenceeffect (cf.WatsonandTellegen,1999;Russell andCarroll,1999),these argumentsdo notseem criticalto the theoreticalaims of this paper. andthat middlemanagersneed to manage. Accordingto this model, emotions sharetwo basic dimensions (Larsenand Diener,1992; RussellandCarroll,1999).1One dimension reflects the hedonicvalence (pleasant-unpleasant),andthe second refersto the intensityof arousaloractionreadiness (highversus low activation).Together,the fourbipolardimen- sions produceeight emotion categories that capturealmost the fullrangeof emotionalexperiences across people (Bartel and Saavedra,2000). Thus,the hybridcategoryof pleasant/high-activationemotions includesenthusiasm and excitement, while pleasant/low-activationemotions include calmandcomfort.Unpleasant/high-activationemotions includeanger,anxiety,andfear,while unpleasant/low-activa- tion emotions includedisappointment,shame, ordejection. These fourhybridcategories reflectthe operationof two broad,evolutionarilyadaptivemotivationalsystems (Watson, Wiese, andVaidya,1999). 35/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 7. Thefirstmotivationalsystem mediates goal-directed,oppor- tunity-seekingbehaviorsof voluntarychange agents who are likelyto experienceand haveto manageemotionalstates dis- playedinthe upper-rightand lower-leftquadrantsof figure1, dependingon the progressof theirchange effortand how they interpretit. Forinstance,agents mayseek to enhance pleasant/high-activationemotions andreduceunpleasant/low- activationemotions to injectenergy intotheirchange pro- jects or instillpersistence inadversity(Kanter,1983;Tichy and Ulrich,1984).Thesecond motivationalsystem mediates threatavoidance,withdrawalbehaviorstypicalof coerced change recipientswho mayexperienceemotions inthe upper-leftandlower-rightquadrantsof figure1. These recipi- ents mayseek to attenuateunpleasant/high-activationemo- tions andenhance pleasant/low-activationemotions (Callan, 1993; Schein, 1996). People who act bothas an enthusiastic agent fora change projectandas a distressed recipientof anotherprojectcould,however,experiencea wide rangeof conflictingemotions andwould probablyneed to manage theirown emotionalambivalence(VanSteenberg LaFarge, 1994). People seem to haveat least two motivationalfoci. When they are change (orgrowth)focused, people are drivenby development needs andseek to bringtheirbehaviorsand self-conceptionsintolinewith how they would liketo be; eagerness orensuringgains dominatetheirbehavior.When they are continuity(orsecurity)focused, people seek to align theiractualselves with theirfelt duties andresponsibilities. As shown bythe 45-degree axes infigure2, the emotions of change-focusedpeople typicallyvaryalonga cheerful-deject- ed axis, while those of continuity-focusedpeople typically varyalongan agitated-quiescentaxis. Vigilanceor preventing losses underliessecurity-seekingbehaviors. Inradicalchange contexts, these individualemotionalstates couldconverge intointense groupemotions throughseveral mechanisms. First,employees who sharea common organi- zationalculturetend to have similarbeliefs, leadingto similar appraisalsandemotions (Schein,1992). Second, a group tends to translatetendencies intocollectiveexpressions more easilythanindividualsactingalone, because group membershipboosts people'sfeelings of powerwhile emboldeningthem througha perceptionof anonymity (BarsadeandGibson,1998).Third,emotionalcontagioncould be at work:individualscouldunconsciouslyrespondto oth- ers' emotionaldisplaysby imitatingandexaggeratingthem. The perceivedthreatsinvolvedinradicalchange increase affiliativeneeds, particularlyamong people who believe they are confrontingthe same situation(Gumpand Kulick,1997). Groupmembers who identifystronglywith one anotherare more likelyto catch each other'semotions, as synchrony conveys empathy.Thegroup'semotionalchargeamplifiesby mutualinteraction,which promotesgroupcohesion andcon- tinuity(Hatfield,Cacioppo,and Rapson,1992). Despite these potentiallyimportantemotion-basedeffects, there has been verylittleempiricalresearchthatexamines how managingseemingly opposingemotions affects organi- zationaladaptationina radicalchange context. Inthe field 36/ASQ, March 2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 8. Emotional Balancing 2 Toprotectthe anonymityof this publicly tradedorganization,whichis stillundergo- ingmajorchanges atthe time of thiswrit- ing,Ihavetakenseveralmeasures.The names of the organizationandits mem- bers,ethnicorigins,geographicalloca- tions,andspecifictechnologieshave been disguised.Inthe same spirit,some numbersandcalendardates havebeen altered.These adjustmentsinthe presen- tationof the datado notaffecthow the datahavebeen interpretedto explainthe proposedtheoreticalconcepts. study describedbelow, Iexplorethe effects of variousemo- tion managementpatternson workgroups'abilityto adaptto change and simultaneouslyto ensure continuityindelivering services to theirconstituents.A numberof managers arousedemotions relatedto the promotionof theirchange projects,that is, theirbehaviorsdisplayedpleasant/high-acti- vationemotions (e.g., excitement)and sought to reduce unpleasant/low-activationemotions (e.g., disappointment) among themselves. These emotion management behaviors helpedagents increasethe likelihoodof realizingchange. Yet other managerssought to attenuaterecipients'feelings of chaos by managingemotions aimedat maintainingwork- groupcontinuity.Theysought to reduce unpleasant/high-acti- vationemotions (e.g., angerandfear)and instillpleasant/low- activationemotions (calm)among theiremployees. Inthe aggregate, these emotion-managementpatternspromoting bothgroup-levelchange andcontinuityconstitutethe emo- tionalbalancingprocess andare the focus of this paper. METHODS Research Setting "Servico"is a largeservice-providingcompanyinthe infor- mationtechnology industry,whichfor manyyears enjoyeda dominantmarketposition.2The companydeveloped an inte- grateddistributionnetworkusing state-of-the-arttechnologies that enableditto achieve a competitiveadvantageover large geographicalareas. Ithadover 50,000 full-timeemployees, an established reputation,net assets of about$10 billion,and a marketvalueof morethan$15 billion.Itscore competence layina strongengineeringculturethat designed high-quality and reliableintegratedtechnologies, with cost as a secondary consideration. Deregulation,followed by the entryof internationalcompeti- tors, changedthe rulesof marketengagement virtually overnight.A fundamentalandsudden change instrategyand organizingwas requiredto address the shift frommildnation- al competitionto extreme globalcompetition.A vicious price war ensued. Annualprofitsdeclinedby almost halfina single yearas the companyfaced rapidmarketerosion of about 10 percentannually.Whenthis trendhadcontinuedunabated fortwo years, the boardof directorsappointeda newcomer to the organization,John Maxwell,as chief executive officer (CEO).Withina year,Maxwelldecided to embarkon a radical change projectby launchinga series of large-scaleinitiatives, such as replacementof the top team, changingthe organiza- tionalstructurefroma traditional,centralizedbureaucracyto a divisionalizedform,and reducingthe workforceby 25 per- cent (or13,000 positions)inthree years. The imposed changes instrategicdirectionand mindset were radicalinat least three ways. First,a sudden shiftwas broughtabout froman engineering-dominated,universalservice cultureina quasi-monopolisticenvironmentto one with a market-cus- tomizationfocus. A new set of organizationalcompetencies hadto be developed quickly.Second, lifetimejobsecurity and seniorityentitlementwere abolishedovernightinthis century-oldcompany.Third,tightcontrolof cash flow and financialaccountabilitywere imposed on an organizationthat 37/ASQ, March 2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 9. 3 Middlemanagersarepeoplewho aretwo levels belowthe CEOandone level abovefirst-linesupervisor.Thereare manyhierarchicallevels of middleman- agers inServico,andso one seniormid- dle managerinthe linegroupscouldact as a "generalmanagerinthe middle"and be inchargeof two to fivethousand front-lineworkers(Uyterhoeven,1989). Thismanagerhas hierarchicalauthority overjuniormiddlemanagers,andthey,in turn,havea typicalsupervisoryrangeof 50-100 workers.InServico,peoplewith titlesof vice presidentanddirectorare treatedas middlemanagers,whereas those withtitlesof seniororgroupvice presidentareexecutives. hadbeen accustomed to a munificentpast with more relaxed resource-allocationprocedures. Owingto previousinteractionswiththe company,Ibegan my researchon good workingterms with severalgroupsinside Servico.Irequestedandwas grantedunfetteredresearch access by severalexecutives as a non-participantobserver.I was thus able to followthe unfoldingof the transformation effortforthree years inrealtime rightfromits launch.As the effectiveness of variousgroupbehaviors,includingthose relatedto emotion management,duringradicalchange is not well understood(RajagopalanandSpreitzer,1997), Iused an inductiveapproach.Myinitialresearchquestions were open- ended: Howdo variousgroupsthink,feel, andact ina radical change context? Howdoes the evolutionof perceptions, feelings, andactionsaffect the outcome of change?The idea to builda conceptualmodelgroundedinqualitativedataon interactionsamong people ina single companywas inspired by the worksof scholarssuch as Dutton,Dukerich,and Har- quail(1994),Hargadonand Sutton(1997),and Pratt(2000). Data Collection Iconductedover 1,000 informalconversationswith about 500 employees at alllevels of the organizationto corroborate andtriangulatewhat Ihadseen andheardandto watch for new experiences of change. Thisinformalprocess allowed me to screen the individualsmost likelyto provideinsightful butdifferentiatedperspectives;Ithen solicitedthem for regu- larformalinterviews.Ioften asked those interviewedto nominateat least two otherindividualswho they felt were influentialinaffectingthe realizationof one orseveralchange projectsinwhichthey were involved,particularlyindividuals who they felt mightnot sharethe same perspective.Irepeat- ed the procedureuntilthe differentviewpointsgathered repeatedthemselves at least twice with differentprojectsor groups(Laumannand Pappi,1976). Ieventuallyfollowedthe evolutionof 148 people at differentlevels of Servico,includ- ing 10 executives and 104 middlemanagersinrealtime over three years.3A personcouldact as a change agent in relation to one change projectand be a recipientinrelationto anoth- er. Iinterviewedmanypeople morethanonce, resultingina totalof 265 formalinterviews.Morethan80 percentof these were taped andtranscribed.Ihadan office on site and had manyopportunitiesto observe people intheirworksetting, interactwiththem, andobserve manygroupmeetings. The companyalso provideda reportof focus groupsit hadcon- ducted withfront-lineworkersto capturetheirperceptionsof change. Multipledatacollectiontechniques, includingobser- vationsandarchivaldata,allowedme to triangulatefindings fromdiverse sources to buildstrongerassertions aboutinter- pretations(Eisenhardt,1989;Yin,1994). DataAnalysis Tostudy specificallyhow the managementof emotions relat- ed to change andcontinuityaffects organizationaladaptation, the focus of this article,Iconductedthe analysisof my data intwo broadsteps. First,Iidentifiedvariousemotion-man- agement patternsdisplayedbythe individualsinvolved.Sec- 38/ASQ, March 2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 10. Emotional Balancing ond, Iexaminedhow these patternsinfluencedcontinuity andchange inselect workgroupsandchange projects.I elaboratedeach step inturn. Toidentifyemotion managementpatterns,Icoded individu- als' statements or behaviorsthat (1)attended to emotional issues and/or(2)expressed theiremotions orevoked emo- tions inothers for specific goals. These patternssuggested the managementof emotions. Whilemanysubtle patterns exist, for reasons of space andtheoreticalparsimony,inthis paper,Idescribe one dominantpatternthat driveschange andanotherthat induces continuity:(1)a manageris emo- tionallycommittedto a change project,appraisingitas impor- tantto his or herpersonalgoals and (2)attends to change recipients'emotions to ensure continuityinoperations.More- over,the firstpatternillustratesemotion management of the self whereas the second illustratesmanagementof other people's emotions. Incodingthe two emotion-managementpatterns,Ireliedon evidence of emotionalcontent inobserved or self-reported statements andactions. Itriednot makingtoo wide an infer- entialleapabout internalemotionalstates and sought to cor- roboratethese inferredstates with observableemotion-laden expressions or behaviors.Whereverpossible, Iensured that each patternwas supportedby at least two datasources. For instance, Itook care thatexpressed statements reflectingan emotion-managementpatternwere corroboratedby observ- able behaviors,informalobservations,orarchivalinformation. Tables1 and 2 illustratehow Idefinedand coded the two dominantemotion-managementpatternsandtriangulated varioussources of datato enhance the validityof constructs. Inthe second step, Iexaminedhow these two emotion-man- agement patternsaffected continuityandchange indifferent workgroups. Some of the distinctivecontributionsof middle managersemerged at this stage and led me to focus further on theirroles. Moreover,Iused the case replicationmethod, inwhich cases serve as independentexperimentsthat con- firmor disconfirmemergingconceptualinsights (Yin,1994). LikeBrownand Eisenhardt(1997), Ilookedforextreme cases that showed sharpvariationsto allowfor nuance in theorydevelopment. Iselected cases involvingchange pro- jects affectingspecific workgroupsthatdisplayeda clear presence orabsence of emotion-managementpatternsas well as differentiatedoutcomes. The Appendixprovidesa descriptionof these change projects.Ianalyzedprojectspro- moted by middlemanagerswho displayedvaryinglevels of emotionalcommitmentto theirprojectsandwho enacted varyinglevels of attendingto employees' emotions. Ialso traceddifferenttypes of outcomes: (1)the degree of realiza- tionof a given change project;(2)the degree of qualityof service achieved by the recipientworkgroup;and (3)learning reportedby agents and recipients. A workgroupcouldbe affected by manychange projects, some of which were more emotionalthanothers. Highly emotion-arousingprojectstended to upset bothemployees' workand privatelives and includeddownsizing,majorreengi- neeringof work,and/orjob relocation.Thisselection of 39/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 11. Table1 Coding and Triangulationof Data Sources for EmotionalCommitment to Change Projects Formalinterviews: "Youhave to really own the change job in your own heart. Here's our Mount Everest. We must achieve this Mount Everest." "Iam extremely excited about the dream to fashion a new work environment. This is the kindof project you wait ten yearsto get to be partof." "Change feeds many of us because we are goal-focused and achievement oriented. Youwouldn't want to returnto your previous job without this initiative successfully implemented. Many people have this commitment, and it sure isn'tforthe money.We are notbeingwell paidenoughforthat." "Iwillspeak verypersonally;I'mputtingmycareeron the lineon this piece of work." "Thisprojectis a personaldreamthatcanfinallybe realized.BeforeIretire,Iwantto see itdone." "Iwantto leave a lastinglegacyto Servico.Thiswillmakethe difference.Iwantto see itthrough." "Wewere likedrugged.Therewas hope thatnothingshallstop us, thatwe willovercome.We were optimisticand saw lifethroughrose-coloredglasses. We hadto succeed, we hadto makeitfit. Lifewas beautiful,we were the best team inthe world." "Icould have left, and I could have gotten a lot more money, but I decided to stay. I had a sense that I could con- tributesomething .... What'sinitforme personally?Thissounds odd,this willsoundoverdramatic-there'sa sense of destiny . . . Ican helpconvertthe mess intoone of the best companiesthe world.Ican reallyhavesome kindof impact,andthat'swhat keeps me here." Congruentbehaviors: people persevereintheirtasks;go beyondmanagerialdutyto realizeprojects;defendtheir projectsfiercelyin meetings;devote a lotof personaltime on projects;hoardresourcesforproject;get angrywith peoplewho oppose them. "Wewent throughsuch a low point.Everybodywantedto walkaway [fromthe changeproject].Buta littlelight shines:we toldourselveswe can'tchange3000 peopleovernight.Whydon'twe findthe oddfew who likethis change,andworkwiththem?" "Ifeel angry:why can'tthey see the future?Whyis everybodydraggingtheirheels? Ifeel frustratedthatthingsare not changingas fast as we wantthem to." Informalconversations: Changeagents use expressionssuch as: "Ipersonallycareaboutthis project";"Thispro- ject means a lotto me"; "Iwantto leave somethingbehindwhen Ileave";"Iwantto realizemypersonaldream"; "Thisprojectis my baby." Observations of formal meetings: Project managers fiercely defended the logic and worth of their projects to supe- riors, peers, and recipients, using all arguments, including those related to sunk costs (too late to get out now, we've investedtoo much). Focus groups: Evidenceabsent. Ido not havemuchdataon focus groupsinvolvingprojectmanagers. Casual on-site observations: Some agents maintainedfocus on implementationof changeprojectsdespite corpo- rate-induceddistractions:transferof keypersonnelto othertasks, budgetreduction,lackof visibleexecutivesup- port.Manybelievedstronglythatthese changes wouldbenefitthe organizationinthe longrun. Archivaldata:Companyreportsdescribedprojectmanagers'strongattachmentto the pursuitof theirproject despite multiplechallenges.Theyrefusedto abandontheirprojectsdespite adviceinthis direction.Wordssuch as "suicidalheroism"and "dying"fortheirprojectswere used to express this commitment. 4 A morecompletedescriptionof the respondentandprojectsampleis avail- ablefromthe author. extreme cases produced ten change projects, as summarized in the Appendix. I identified the people who were involved in each of these cases and coded their emotion-management patterns. This involved 76 individualswhom Iformally inter- viewed 138 times. Certain individualswere involved in more than one project. Ialso distinguished newcomers from veter- ans-employees with more than five years of tenure when the radicalchange began. Ithen aggregated and identified the emotion-management patterns applied in each case.4 I analyzed over 2,000 pages of transcripts and 400 pages of company documents. Iemployed a theory-building approach that required multiple iterations between thick data descrip- tion and emerging theoretical concepts. Finally,Idrew on rel- evant literatures to enhance the plausibility,insight, and criti- cality of a conceptual model of emotional balancing (Golden-Biddle and Locke, 1993). 40/ASQ, March 2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 12. Emotional Balancing Table2 Coding and Triangulationof VariousData Sources for Attending to Recipients' Emotions Formalinterviews: "Youhave to be committed to providing the time for the people to work though personal issues with their peers. Downsizinglowersthe trustlevel, people constantlywonderthatsomeone isn'toutto get them." "Wehaveto do morethangivingemployees technicaltrainingonly.We haveto preparethem to cope with psycho- logicalissues, to helpthem overcomethe fearof changeduringthis transitionperiod." Congruent behaviors: People devoted time and effort to take care of emotional well-being of people affected by change. Hiredfacilitators,psychologiststo helppeople express theiremotions morefreely.Tookcareof recipients' personalandfamilyissues caused by change (i.e.,relocationof dual-careerfamilies).Worriedaboutburnoutand absenteeism andfindingways to alleviateemployees' stress andworkload.Preventedordelayedotherill-timed change projects that would impose too much burden on the recipients (loss of sensemaking, feelings of chaos). Informalconversations: Managersmentionedthatthey watchedforsigns of burnoutamongtheirsubordinates, imposingvacationson them andorganizingpartiesto celebratesmallwins. Manymanagerssharedwith me their need to "psyche"themselves up,to "blankout"negativethoughtsto dealwithemployees ina morepositive frameof mindinordernotto exacerbaterecipients'fearorhopelessness. Observations of formal meetings: Middle managers expressed the need to prevent change fatigue among them- selves so thatthey couldtakecareof theirsubordinates. Focus groups: Middlemanagersset upfocus groupsinwhichfront-lineworkersexpressed the need to see their emotionalhurtaddressed.Theywantedto see managersopenlyacknowledgethe existence of problems. Casual on-site observations: Privateorsmall-groupmeetings to facilitateairingof private,emotionalissues: elderly parents,handicappedchildren,maritalissues thatinterferedwith new workresponsibilitiescaused byorganization- al change. Managerofferedpaidpsychologicalcounselingandtreatment,providedcompanyresourcesto people to takechargeof employees' personalandfamilyneeds due to workrelocation.Middlemanagersorganizedvent- ingsessions andhealingsessions forgroupsandcelebrationsof smallwins. Archival data: Reports from middle and lower-level managers (especially HR)suggested more focus on emotional andpersonalissues anddeploredlackof seniormanagement'sattentionandcareaboutthese issues. EMOTIONALBALANCINGFOR CONTINUITYAND CHANGE Radical change challenges organization members' self-identi- ty and meaning and creates high uncertainty about their future roles and privileges, which triggers anxiety (Argyris, 1990). Anxiety can degenerate into depression that blocks all learning efforts when people perceive that they cannot achieve valued outcomes, feel irrevocable loss, or are pes- simistic about potential improvement in their situation (Schein, 1996). To fight against anxiety and depression, peo- ple seek to restore peace of mind, which comes from the belief that one has control over threats that might arise, either by changing objective circumstances or by altering the psychological impact of the situation (Mischel, Cantor, and Feldman, 1996). Medical research suggests that patients who have illusory beliefs that they can exercise partialcontrol over their treatment enjoy important psychological and physi- ological benefits (Bandura, 1997). Perceptions of personal control have also been found to be positively related to main- taining the effort devoted to challenging tasks over time, such as the pursuit of ambitious change (Aspinwall and Tay- lor, 1992). Emotional balancing enabled Servico's managers to regain some personal control over a discontinuous and threatening change context. Inthe aggregate, these managers displayed seemingly opposing emotion-management patterns to realize change and maintain operational continuity in their work groups. Some displayed intense emotional commitment to 41/ASQ, March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 13. theirchange projectsand used allthe resourcesat theirdis- posalto influenceothers to supportchange. Othermanagers attendedto theirsubordinates'agitatedfeelings so thatthe employees couldmaintaincontinuityindeliveringservices to the customers. Insum, differentindividualscouldseparately enact differentemotion-managementpatternsto drive change orcontinuityandstillproducean aggregatedadapta- tionand learningeffect on a given recipientworkgroup. Ratherthanidentifyhow individualdifferencesaffected the displayof specific emotion-managementpatterns,therefore, Ifocus on how andwhy the aggregateof the two emotion- managementpatterns-emotional commitmentto change projectsandattendingto recipients'emotions-contribute to balancingorganizationalcontinuityandchange at the work- grouplevel. Emotional Commitment to Change Projects As Servico'smarketshare declinedprecipitouslydue to inten- sifyingcompetition,radicalchange seemed an increasingly unavoidableoptionforseniorexecutives andsome middle managers.The criticalissue was to figureout what specific actionsto take to restorefinancialstrengthandbuildnew capabilities,andto do this quickly.Aboutfortyveteranmiddle managerschampionedover 100 projectsto improveServi- co's operationsandprofits;these projectsshaped the Corpo- rateTransformation(CT)program.Whileexecutives were imposingthe large-scalestructuralchanges, the majorityof projectschampionedby middlemanagersinvolvedchanges to workprocesses, such as consolidationandprocess reengi- neering,to compensate inpartforthe workpreviouslydone bythe 13,000 employees who were being let go. Manyof the projectschampionedbythese middlemanagers came fromideas thatcollected intheirreservoirof "dreams."As one managerwho was coordinatingthe fund- ingof these projectscommented, "Mostof these initiatives came fromideas that manyof us alreadyhave hadfora long time butcouldnot manageto get financedinthe past. CT representsthe dreamsthatcan finallybe realized."The large discretionaryfundof CTallowedmanymanagersto realize those long-harboreddreams. Iwas initiallysurprisedto hear managersactuallyutteringthe word "dream"and its syn- onyms, desires andwishes. Dreamsmotivatechange inthat they are representationsof what people want to achieve or to have intheirlives to enhance theirself-esteem andget closer to theiridealselves, andthis makes the self-selection and pursuitof a dreampersonallymeaningfulandemotional (Pratt,2000). Afterall,Servicowas betterknownas a rational bureaucracywith impersonalrules.Inprivate,manyman- agers sharedwith me theirdeep desire to leave a lasting imprinton the organization,which manyof them hadstarted theircareerswith and hopedto retirefrom.Thisdesire came fromtheirlongoperationalexperience,theirfrustrationwith the company'sinherentdysfunctionalities,andtheirwish to builda betterorganization.Theyembodiedchange goals root- ed inorganizationallife. Forexample,one managerin Net- works said, 42/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 14. Emotional Balancing Iexpect to retireseven to ten yearsfromnow. Before Ileave, I want us to havean online,intelligentpreventivemaintenancesys- tem to fixcustomers' [transmissionquality]problemsbeforethey even become awareof them. Today,the system is reallynuts. The moreproblemsget reported,the more money we can get fromthe company. Therewere at least two reasons why these managershad not sought to enact theirdreams earlier.First,Servicohad been a highlyprofitablequasi-monopoly,and so the need to make importantinvestments to improveoperationalqualityor do finermarketsegmentation seemed secondary.A financial crisiscaused by deregulationincreasedthe felt need for bet- ter marketing.Second, the availabilityof a $1.2 billionCT slackfund reservedonlyforchange projectsmade middle managers'dreams now seem closer to reality.The pursuitof the championedprojectswould satisfy managers'intrinsicini- tiativeandassertiveness andtheirdesire forchallenging tasks and highachievement,which suggest entrepreneurial behaviors(McClelland,1987; Ketsde Vries,1996). Forexam- ple, one change projectmanagertold me with palpablecon- viction,"Ihave a verystrongdesire for us to be successful. The solutionsthatwe've got, they are good ones, andthe teams develop them and believe inthem andwant to make these things happenandsee them through.Itis going to makethe difference. Iwant to see itthroughto the end." Frijda(1996)construeddesire as the actiontendency toward arrivingat a given state orowningandconsuminga given object. Zirkel(1992)suggested that people often choose goals thatfavormeaningfulnessover feasibility,even lofty goals thatthey do not always knowa priorihow to realize. Desiregives manyemotions theirpassionate quality,which intensifiesthe emotionalcontent of ensuing actions. InServi- co, emotionalcommitmentto the realizationof projectsesca- latedinthe face of adversityandwith increasinginvestment of effort. Managersbecame more narrowlyfocused and self- centered and began to rationalizethe legitimacyof their autonomyto themselves andothers. These pleasanthigh- activationemotionalstates interactedwith cognitionas man- agers reinterpretedevents inan optimisticlightand concen- tratedonlyon the thingsthey felt they hadcontrolover. These patternssuggest self-efficacyefforts (Bandura,1997). As a projectmanagersaid, "Webelieve we do have excellent initiativeshere, andwe willachieve absolutelythe most we can, and ifwe don'tachieve the CTfinancialtargets, screw. ... We started to set our own agenda.... We were just going to go aboutourown. Itwas justthatwe decided, shit, we're going to do this." Pleasant/high-activationemotions such as excitement and optimismfueled the pursuitof dreams. Choiceand commit- ment to it providedflexibilityinthe initialproject-promotion stage, while self- andaction-controlenabled perseverance in the laterproject-implementationstages. Althoughit may have been easy for Servicoagents to be enthusiasticintheirearly change-promotionefforts, the drawn-outimplementation phase, which requiredattentionto less glamorousoperational detailsandwas often disruptedby unexpected events, erod- ed the energy of manyagents. Not onlywere these man- 43/ASQ, March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 15. agers receivinglukewarmor infrequentsupportfromexecu- tives, they were also encounteringresistancefromrecipient linegroups.People workingon the frontlinecouldnot see how costs couldbe cut andthe same level of customer ser- vice be maintained.Perceivedmisunderstandingbytheirown operatinggroupscreatedfatigueanddisappointmentamong manyagents. One manager'sfeelings were typical:"Thisis verydifficultfor manyof us. We felt we were outsiders when we hadto force our[recipients]to accept a change ini- tiative.Itcreates a very highlevel of stress. Some of us are stressed, de-energized,fed up."Differentgroupstriedto uncovereach other'shiddenagendas, and mistrustwas prevalent. Middlemanagersas change agents sought to lower unpleas- ant/low-activationfeelings of disappointmentandfatigueby sharingthese amongthemselves. Manyworkedlong hours, puttingtheirpersonalrelationshipsandhealthat risk.Never- theless, they felt a sense of personalachievement in attemptingto performdifficulttasks. Thewish to achieve helpedto shore uptheirown emotionalstaminato withstand the manyfrustrationsalongthe way. Theydidthis by blank- ingout the largerthreateningcontext andfocusingon the smaller,more isolatedandcontrollableportionsof theirjobs. Theyalso hopedthatwhat they hadbeen learningwould enhance theirmarketabilityinsideandoutside the organiza- tion.As one of them explained: Ithinkmanyof us are hereforourabilityandinterestinmaking changes, justas a type of personalitymaybe,andachievinga chal- lenge and not beingwillingto failever.... Thisis probablythe toughest challengethatanyof us have had .... We've seen the importanceof these initiativesto the futureandhavebeen recog- nizedfordoingthat.Thatfeeds manyof us because we aregoal- focused andachievement-oriented. These manifestationssuggest a strongpersonalcommitment to realizeone's goals. Ineffect, Gollwitzer(1993)predicted thataftercommittingto a goal, people normallywillattend selectively to informationrelevantto its implementationand tend to evaluateits consequences positively.Thiswould shieldthem fromthe distractionsof competingalternatives and paralyzingself-doubts(Kuhland Beckman,1985).Thus, when Servicoagents were faced withadversity,emotional commitmentprovidedthem with the staminaandhope that fueled perseveringefforts and reducedprematuredespair.A change agent reflectedon herperseveranceuntilthe very end of CTas follows: "Alotof what we didwas to continual- ly nibbleaway andjust keep workingat it.That'swhere tenacityandperseverancecomes in.You'vegot to keep workingandsay, well, if itdidn'tget throughthis time, we'll tryitagainnext week. Youkeep pluggingaway,andover time people do come around." Emotionalcommitmentwas also reinforcedthroughchange agents' selection and retentionroutines.Certainsupervisors' emotionalmonitoringof projectmanagerswas discreetyet active, as one supervisorof over40 projectssharedwith me: "Projectmanagersdon'tneed to be pumpedbecause they designed theirown projects,so when Iask them how it's 44/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 16. Emotional Balancing going andthey answer me it'sgoing okay,then Istartto worry.Emotionalindifferenceis the worst sign, because it means theircommitmentis going away. So we learnedto celebrate milestones because the projectis so long."Thus, this supervisorcontinuouslymonitoredhis agents' emotional displays:"Enthusiasm,faith[inthe project'ssuccess], love of theirwork,desire to persist,these elements are always importantforchange projectsto workwell." Therewere variationsinthe emotion-managementpatterns that drovechange orcontinuityforeach of the ten cases, and each of these two patternsdifferentiallyaffected the perfor- mance of a change projectand its recipientworkgroup,as well as learning.Moreover,the projectsvariedintheir results:inertia,adaptation,orchaos. FAST-ADMINProjects:Inertia Notallchange projectsinvokedthe same intense level of emotionalcommitmentamong theirpromoters.Certainmid- dle managers,relyingon theiroperationalknowledge of the company,requested andgot fundingapprovalfora number of quick-winprojects.Threeillustrativeprojectsare listed in the Appendix.Forinstance,the change projectto stop send- ingreturnenvelopes with the billsforcustomers who seldom used this mediumresultedinan annualsavings of $1 million for Servico.Managerslabeledthese quickwins "fast admin[istrative]"changes. They reportedthese achievements to me ina mannerthatwas matterof fact and quick,with at best an expression of subdued satisfaction,andthen devoted much moretime andemotionalintensityto describingtheir dreamprojects.Ina sense, the successful realizationof these fast-adminchanges didnot resultinany significant enhancement of the organization'scapabilitiesand learningto change and so representedfine-tuningchanges inwhat was essentially organizationalinertia.Middlemanagerswere aware of this anddevoted very littleemotionalenergy to the promotionand realizationof these projects,which were in any event clearlyprofitableandeasily implementedinthe shortterm. Also, these three projectswere reportedto have littlenegativeeffect on the personalwelfare of affected employees. Incontrast,long-term,majorprojectsthat requiredimportant investments of financialand humanresources and could materiallydisturbServico'soperationswere subject to oth- ers' scrutiny,analysis,and ongoingmonitoring.The credibility of the touted project'sfinancialandoperationalbenefits relied inparton middlemanagers'past trackrecords.Inthis respect, Servico'sdecision-makingprocess forfundinguncer- tainandambitiousprojectsseemed notvery differentfrom resourceallocationprocesses appliedincertainother large organizations(Burgelman,1983; Kanter,1983; Bower,1986). As the executive inchargeof fundingtold me, "Forbig pro- jects Imet theirpromotersface to face. Numbersonlytold you partof the story.Iwanted to see how they defended these numbers,how convincedthey were aboutthe project's viabilityand chance of success, and how muchthey were willingto sticktheirneck out and sweat for it." Monitoringof promoters'emotionalcommitmentto theirprojectswas dis- 45/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 17. creet yet active even in the early funding phase, and middle managers who displayed low emotional commitment to their championed major projects were likelyto have a hardertime competing for funds with highly committed peers. INV Project: Inertia Even if the project was funded, wavering commitment among agents during implementation could still lead to orga- nizational inertia, as illustrated in the case of project INV, which was close to successful completion when it lost senior management support. INVwas important to Servico both in terms of economic benefits and new values: it sought to instillmoretransparencyanddisciplineina politicizedcapital allocationprocess thatseemed inefficient.Productchampi- ons andfinancialpeople were frustratedwiththe old system because of knowncases of lackof professionalismorcheat- ing: One productmanagerasked for7 milliondollarsto sell 170,000 unitsof a new productline.Heomittedmost of the costs, put[in] onlya littlebitof softwaredevelopmentandadvertisingcosts-the strictminimum.Hedidnot includeanyinfrastructureandsupport costs, whichrepresented90 percentof the costs. Thefinancepeo- ple who didnot understandthe business tookthese numbersat face valueandproducedfinancialindicatorswitha five decimalpre- cision.Theycomparedthe profitabilityof one projectagainstanoth- er on thatbasis andallocatedfundingaccordingly.... Otherswho were a littlebitmorethoroughor honest lost ... [andwillpractice the new rulesof the game nexttime]. Little systematic tracking and culling of unprofitable product lines took place. This laxitywas no longer tenable in a highly competitive environment. The goals and reasons for INV were widely accepted. Managers ironed out many implemen- tation details across the myriad of antiquated administrative systems. Emotional commitment to realize INVremained strong and escalated with investment of important resources and agents' energy. INVdid not threaten recipients' personal welfare to the same extent that downsizing would have, and change agents consistently sought wide participationof and consultation with recipients. They developed enthusiastic supporters in recipient groups who championed their cause inside their respective units. After two years, successful insti- tutionalization of INVseemed well under way. But macro structural changes unexpectedly neutralized the momentum and emotional commitment of change agents. Coincident with a much larger reshuffling of business units and executive responsibilities at the top, senior management decided to establish a more permanent capital management group and to disband the current change-agent team. Because almost no one who belonged to the change team became part of the new administrative structure, precious tacit knowledge and organizational memory were squan- dered. The premature dispersion of the change team delayed or stopped the development and refinement of procedures and information systems that supported INV.As the dis- traught project manager bemoaned: 46/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 18. Emotional Balancing Thewhole process is losingmomentum.... Iam afraidthat every- thingis going backto where itwas before.We [haveyet to com- plete]the administrativetools thatwere requiredto helpthe [profes- sionals]do theirjobs.... Thedevelopmentof these tools has been delayedordropped..... Nobodycontinueswiththe training. The new capital management group soon managed capital investment in the old fragmented ways. Instead of tracking revenues and expenses associated with the capital invest- ments, it resigned itself to tracking the capital budget only. Other groups managed the operating expenses or revenues budgets, and there was little harmonization between them. Active political negotiation games resumed. This seemed to indicate suboptimal organizational inertia. Former change agents helplessly watched their efforts being unraveled. One agent asked me, "Who else can Iturn to? The CEO? Is it viable for me to see the CEO and say, 'Look, Idon't think this process is going the rightway.' Ithink not, unless Iwin a big lottery ticket. Who do you go and see when you think people are doing the wrong thing?" Individualagents' commitment to INVwas neutralized by executives' actions. Executives were often distracted by urgent external demands due to intense competition. This rather dramatic case illustrates that very important but long- term projects such as INVmight fail to get adequate execu- tive attention and get trampled on, sometimes accidentally. As one executive explained: We'rea veryreactivecompany.It'salwaysa fire.Rightnow ... we just lost [amajorcustomer].... So there was this immediatereac- tionof the seniorteam to pulltogether a multifunctionalteam within 30 daysto win backthe customer.Now thatwe have recommitted the resources behindthis new top priority,something else will suffer. FINA Project: Inertia Another change project, FINA,affecting the finance groups, suffered from its inception from diluted emotional commit- ment to change. Unlike INV,the few agents who were emo- tionally committed to FINAfailed to promote this change to the people around them. The aggregated commitment among a few agents seemed insufficient to drive this ambi- tious and broad change. There was little tangible support from overwhelmed executives. Insufficient support was also partlycaused by agents' accentuating in-group and out-group distinctions between themselves and groups from which they asked for resources to drive change. These agents launched FINAwith a separate project group of 150 people, one-third of whom were external consultants. The high pro- ject cost of $70 million and the large number of consultants were unique in Servico and exacerbated feelings of envy and resentment. FINAagents were frustrated about the recipi- ents' foot-dragging in providing the best resources for the "special" change team. They could not understand the rea- sons behind recipients' behavior, which they perceived as covert resistance. Lackof skilled and experienced people slowed down the design and implementation of change. Agents focused their activities on the cognitive, technical ele- ments of work process reengineering and were unaware of 47/ASQ, March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 19. the importanceof attendingto recipients'emotions,stress- ing, instead,a fear-arousingapproachto drivingchange. As one told me, "Ithinkchange requiresa verystrong,definite, militaristicstyle to be successful.... Thefearof Godhas to be putintothe organization;otherwise, itwillnot force itself to change as quicklyandas dramaticallyas maybe required."These agents didnot knowhow to address recipi- ents' anxietiesand,so, keptrepeatingthe same business rationale,to littleeffect. As one projectmanagersaid, Intellectual,scientificargumentsdidnotseem to convincerecipi- ents. Quotingwhatthe CEOsaiddoesn'twork.Therearesome fears involved.So Irepeatthe same message at the beginningof every meeting [withrecipients].WhatIlearnedinchange manage- ment seminarshas not been as effective as Ithoughtit mightbe. Twoyears later,however,the informationtechnology(IT) people discoveredthatthe informationinfrastructuredidnot have adequateprocessingcapacityto supportnew software applications,includingthose needed for FINA,andthe project was "shelved."The paperredesignof financialstructures andsystems to makethem fitwiththe new financialsoft- ware methodologyhadalreadycost $30 million,whichwas well over budget.Conceptualdesign was done on paperonly, andthere was onlyone yearleft to developcustomizedsoft- ware applicationsandtest and implementcomplex new financialsystems amongthe skepticalrecipients.Project managerswere disappointedbutalso relieved,as they real- ized itwould have been virtuallyimpossibleforthem to meet the initialcommitments interms of benefits deliveredand deadlines.As one said, Thecancellationof the projectwas probablya good thing,because we mighthave hada targetaheadof us thatwe wouldhavebeen hardpressed to reach.We were spendingmoneyfasterthanwe hadanticipated,andwe arefallingbehindschedule. We couldhave dug upeven moresignificantdifficultiesahead. EvenafterFINAwas aborted,the agents' learningfromit appearedto be limited.Theyconcludedthatthey mighthave succeeded if executives hadbeen morephysicallypresentto increase pressureon recipientsor ifthey hadused morepro- ject management.Agents inthe financegroupswere unable to see the importanceof also attendingto recipients'emo- tions, somethingthat managersinchargeof similartypes of personallydisturbingchanges such as downsizingandreloca- tionwere awareof, as willbe seen inthe next cases. Beyondthe timelyscapegoat of the weak ITinfrastructure thatdirectlycaused the abortionof FINA,dilutedemotional commitmentamongthe change agents andinsensitivityto recipients'emotions hadalreadyled to underperformanceof FINAinterms of cost anddeadlineoverruns,even when the projectwas onlyinits paperdesign stage. Suboptimalorgani- zationalinertiaremainedinthe financegroups. Thecases of INVand FINArevealthatchange agents were in constant conflict.Those playingthe roleof committed change agents forone projectcouldat the same time be recipients,subjectto seniorexecutives' actionsorother change projectslaunchedbytheirpeers. Therewas constant competitionforresources. ManymanagersinvolvedinCT 48/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 20. Emotional Balancing felt thatthey were stretched to the limit(intellectually,emo- tionally,and physically)and expressed concernthat Servico was teetering dangerouslyon the edge of chaos. Somehow, the organizationdidnot implodeunderthe severe pressure. One partialexplanationmay be that, beyonda focus on dri- ving majorchanges, there were other managerswho took emotion-managementactions, such as attendingto recipi- ents' emotions, to maintainworkgroupcontinuity.These actions helped employees remainrelativelycalm andattend to theirdailyproductiontasks. "Keepingthe companywork- ing"seemed to representa goal of continuitysharedby manylinemanagers.Duringthe three years of CT,managers commonlyreportedto me thatthey worked80 to 100 hours a week to implementchange while simultaneouslyattending to theirworkgroup'soperationalcontinuityandtheirsubordi- nates' emotionalstability. Attending to Change Recipients' Emotions to Maintain Continuityin Operations Ialso observed cases inwhich certainmiddlemanagersand unionrepresentativesactingas middlemanagersmaintained operationalcontinuityby practicinga formof "boundedemo- tionality"thatattendedto the psychologicalwell-beingof subordinatesandtheirfamilies(cf. Martin,Knopoff,and Beckman,1998). Boundedemotionalityrefersto acknowl- edging the inseparabilityof privateandworkfeelings and consciouslyattendingto them (Putnamand Mumby,1993). Middlemanagersencouragedemployees to express a wider rangeof emotions, bothpersonalandworkrelated,than had been traditionallyallowed.These actions violatedServico's explicitpersonnelprocedures,which stronglydiscouraged managersfromgetting involvedinemployees' individualcon- cerns andadvisedthem to keep supervisor-employeerela- tionshipstask-orientedand unemotional.Such impersonalcri- teriafordecision makingandemotionalcontrolunderlie bureaucracy(Weber,1964). Bureaucraticorganizationsare deemed successful to the extent thatthey eliminate"all purelypersonal,irrational,andemotionalelements which escape calculation"(Weber,1946: 216). As one female man- ager said, "Ihave been with Servicofor25 years. Overthe years Ihave evolved to believingmy success would be with my professionalapproach-not to show emotions [except being]funnyand dynamic!" Manyof Servico'smanagers,throughyears of socialization, seemed relativelyskilledat feigningthe appropriateemotions insurfacework.Goodactingseemed a prerequisiteto remainingin influentialpositions.As CTreachedmid-course, sensing negativefeelings fromsome of the employees he interactedwith, the chief operatingofficersent a confidential memo to allmanagersstatingthat "expressionsof cynicism [aboutchange]willnot be tolerated.We are inpositionsof leadershipand must displayenthusiasm at alltimes [to every- one]." Manymanagersprivatelyfoundsuch an articulation odd andamusing.Theywould not have survivedthe previous streamliningof middlemanagement rankshadthey not long before figuredout the implicitrulesof emotionaldisplay.Ina similarvein, Jackall(1988: 128) suggested that managers who wish to succeed inbureaucraciesare expected "to 49/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 21. maskallemotionand intentionbehindbland,smiling,and agreeablepublicfaces." Underradicalchange, however,cer- tainmanagersdeliberatelybrokeemotionaldisplayrulesto maintainsome continuityintheirsubordinates'lives,while observingtraditionalrulesintheirdealingswith certainsupe- riors-executives who stillfrowneduponintense emotional displays,especiallyunpleasantones. CONRETProject:Adaptation Attendingto recipients'emotions provedcriticalinCONRET, a projectaimedat closing 10 callservice centers insmall towns, consolidatingthem intoone site, andat reducing about20 percentof the workforce.Agents inCONRETdis- playedhighcommitmentto change. Peter,a vice president, privatelytoldme thathe maintained"astate of insecurity andone must be an agent of change orbe out. I[keep]the managerscrankedup."Thus,Lisa,a veteranmiddlemanag- er,was put inchargeof coordinatingover20 change projects affectingthe retailgroup,includingCONRET.Lisapressed executives to putpressureon herrecalcitrantcolleagues, because she thoughtthe "garbagethat linemanagers[were] dishingout unbelievable."Lisaalso hadlittletolerancefor employees' personalconcerns, not directlyrelatedto busi- ness: "Wehadan open lineforquestions. Ninetypercentof them were basicallythe same: how was itgoingto affect my workscheduling,my vacation.Notaboutthe business struc- tureor how customer segmentationworks. Inthe future shouldwe take these calls?No!" Some linemiddlemanagersdidnotagree with herand devoted greateffortto maintainingsome continuityamidrad- icalchange. Jack,a linemiddlemanagerinchargeof 700 ser- vice reps, hadto carryout CONRET,relocatehis staff, and maintainthe objectivesof revenuegenerationandservice quality.He implementedthis change out of dutywhile remainingskepticalof the project'stouted benefits. Jackdis- covered soon enough thatwatchinga video on the new cor- poratevisionhadlittlemeaningforemployees unless they couldunderstandhow the visionwouldaffect theirpersonal welfare. He worriedthathalfof the relocatedpeople were motherswithyoungchildrenandthatthe longercommute time forthem would be exhaustingand not sustainable:"I spent most of my time coachingpeople on humanissues, playing the psychotherapist role .... These [agents] act as bulldozersandfocus on numbers.Ihadto concentrateon meeting with unionsto solve relocationissues." Jackattend- ed to his subordinates'personalneeds andwas explicitabout managingtheiremotions: Overtime, Ilearnedto avoidmass meetings. Iused to meet a large groupwhere everythingseemed to go well andthen Igot allkinds of surprisingfeedbacklater.Irealizedthatone couldnotdealeffec- tivelywithemotions when one was witha crowd.So Ibeganto set upsmallermeetings ingroupsof seven oreight,and Itoldthem I would be availableforprivatemeetings afterthe groupdiscussion. ... Itwas a winningformula.Everycase was different:one service repfroma smalltown emotionallytoldme ina publicmeetingthat she couldnot move to [Dallas]immediately.Inprivate,she explainedto me thatshe was goingthrougha divorce.Anotherone was worriedthatherhandicappedchildcouldnotfinda specialized 50/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 22. Emotional Balancing school, so Ilookedfora jobthatwould suit herneeds. Othershave sick parents.Relocationis a veryemotionalthing.We addressed thatby offeringthem paidvisits to the new locationa few months inadvance.Thewelcoming partyappointedsponsors foreveryfami- lyto lookaftertheirpersonalneeds, to takethem out to dinnerthe firstweeks orto finda baseballteam forthe kids. Thejuxtapositionof emotionalcommitmentto change pro- jects, displayedby people such as Peterand Lisa,andattend- ingto recipients'emotionsto restore some psychologicalsta- bilityamong employees and maintainoperationalcontinuity, as exemplifiedbyJack,created tensions among change agents and recipients.Jack,as a recipient,complainedthat Peter and Lisawere too "focused on numbersas opposed to operations[andwere] rigid,militaristic,disrespectfulof humanbeings" indrivingchange. Curiously,this juxtaposition of seemingly opposite behaviorsnevertheless resultedin overalladaptationto change at the grouplevel. CONBUSProject:Adaptation Iobserved similaremotion-managementpatternspromoting change andcontinuityinthe service representatives(reps) unitservingbusiness customers. Vicky,a linemanager,had to close five of the nine service centers and relocate her employees (projectCONBUS).She describedhow her employees felt aboutthe downsizingand relocationrelated to the consolidationof the sites: Therewere a lotof reactionswhen the changes were announced. Some people were angry,some wept, some expressed no reaction at all.... Thegroupmoodwas veryvariable.Onone day,every- thingwas harmony,andon the next day,as soon as the work became demanding,peoplejust exploded,cried,so manyreps seemed not beingableto come to terms with theirfeelings.... Evenaftera year,some came to terms with quittingtheirhome- towns, butthere were otherswho felt they didnot reallyhave a choice, personallythey couldleave buttheirfamiliesdidn'twant to. CONBUSexacerbatedthe emotionalandcognitivestress that reps were alreadyunderfromcontinuingpressures to improvetheirsellingskillsand keep updatedabout new tech- nologyandproducts.Andpressures fromcommittedchange agents were relentless. Onthe recipients'side, a unionrep also workingas a service repbemoaned, "There'sso much information.We've become so bombarded,so saturatedat one pointthatyou become stupid.Some simple things become difficult."Absenteeism increasedfromtwo people a week to six to 10 weekly, and long-termdisabilitiesdoubled, mainlydue to burnout.News of burnoutamplifiedfear among the reps. Lucy,a first-linesupervisor,said, "We lost ourhead andthoughtburnoutwas a contagiousdisease. Fearwas verycontagious, Istartedto appreciateit." Infact, events such as change thatare negativelyperceivedtend to evoke strongerand more rapidcognitive,emotional,and behavioralresponses thando neutralor positiveevents (Cacioppo,Gardner,and Berntson,1997). Sam, a process consultant,hiredby Vicky,foundthatthe stress caused by site closure, insecurity,andworkoverload due to downsizing,as well as the pressureto absorbnew knowledge, pushed manyreps to the edge and some to 51/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 23. burnout. Sam then trained the reps to practice time-manage- ment techniques, prioritizeexternal demands, and negotiate deadlines. This trainingseemed effective, as reps reported that they were able to reduce the matters they had to react to immediately by two-thirds. This restored some feeling of control among them. He also suggested ways to formally mourn the closing of their cherished work sites, such as "heritage and succession" ritualsand "last suppers" served by managers. Reps reported that they felt more at peace with themselves after these mourning ceremonies because they felt that they had been treated with respect. Change agents who ignore the crucial mourning period and rush the organization through this meditative phase riska backlash (Moses, 1987). Ifchange recipients' emotional pain is denied, the organization may become paralyzed by survivor sickness and devoid of creative energy (Noer, 1993). But as Vicky noted, not everyone responded positively to the training efforts: Some reps rebelledandrefusedto be trained,sayingthatthey had onlyfourmonths leftto work;otherswept. One hourlater,every- thingseemed to be forgotten.Irealizedthatpeoplewere livingon the edge, andfeelings were verycontagiousingroups.A computer systems breakdownwas likethe strawthatbrokethe camel'sback. We hadto be alwaysvigilantandcouldnevertakeforgrantedthat thingswere goingwell. Curiously,people who reactedwiththe most calminone site when the announcementwas madeare now reactingthe most. Theyhave notaccepted the closing.We offered them psychologists'individualhelp,butthey angrilyrefused,saying thatthey were not crazy. In response, Vickyorganized emotion management in "infor- mation sessions" for small separate groups of 20 to 40 reps. Iasked to observe one of them. Rapiddownsizing exerted tremendous pressure on line groups to maintain an accept- able level of customer service, and taking a whole day for this kind of "touchy-feely" exercise represented a risky investment of time for line managers who were evaluated monthly for meeting concrete measures of customer satis- faction and revenue/cost objectives. While most of the morn- ing was devoted to addressing employees' instrumental queries about the strategic direction of their own group and of the whole company, the afternoon session was set aside to bringto the surface and deal with their hidden emotions. Employees were encouraged to verbalize in small groups, outside the scrutiny of their superiors, their private feelings about the ways in which change had affected them. Then each group was invited to make a drawing about how it felt collectively, and drawings were displayed around the room. There were drawings of anxious-looking people in lifeboats, of caravans lost in the desert, big thunderstorms, and of a small sun hiding behind black clouds. Itwas only then that individuals started to realize how similartheir feelings were, and they started to laugh and joke about them. Sam, the process consultant, then showed them Bridges' (1980) transi- tion model and explained that it was "normal"and "com- mon" to have these feelings. My initialskepticism about the effectiveness of these emo- tion-management techniques subsided in my informal inter- 52/ASQ, March 2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 24. Emotional Balancing actions with workersduringthe followingdays. Manytold me thatthey foundthese emotion-attendingsessions very useful.The sessions elicitedpleasant/low-activationfeelings such as calmandsympathyandattenuatedunpleasant/high- activationemotions such as fearand helplessness. Theyalso helped recipientsto accept theirown emotions andgave them the additionalenergy to continuetheirhardwork.They reportedthatthey felt moreat peace with themselves and more sympathytowardtheirpeers and superiors.These emotion-attendingactions seemed to help reducefurther absenteeism and decline inemployees' morale.Vickyreport- ed thatthe qualityof customer service remainedhighand "peopleremainedprofessionalandtook customer service to heart." These findingsseem to supportBartelandSaavedra's(2000) findingthat emotion managementis particularlyeffective for intense emotions. Expressingpersonallyupsettingexperi- ences has been foundto improvementalandeven physical health(Pennebaker,1997). Repressionof a traumaticexperi- ence onlyserves to maintainthoughts of the experience, and these willnot disappearuntiladequatelyresolved (Wegner, Erber,andZanakos,1993). Clarityin labelingone's feelings helps resolve one's thoughtsabouta past traumabecause emotionaldisclosurehelps reorganizedisturbingexperiences ina causalway andgives them a coherent place ina per- son's life(Saloveyet al., 1999, 2000). By narratingstories, people escape frompassive and repetitiveruminationsthat amplifydistress andenhance understandingof theirsitua- tions. Knowingthe causes of discomforthas been foundto reduce anxietylevel andpanicattacksamong patients because it mitigatestheirfearof losingcontrol(Dienstbier, 1989). Greenberg(1996)arguedthat effective emotion-focused interventionsinvolvethree processes. First,one has to come to accept that unpleasantfeelings are not objectivethings butthe outcome of one's internalrelationswith an event. One shouldfocus on the event itself and its associated emo- tions. Second, one has to re-ownthese feelings through experientiallinkingto the self and not tryto depersonalize them throughintellectualizing.Last,one develops a sense of agency insofaras one feels confidentthatactionis possible, andthis generates hope: "Itis Iwho am feeling this, it is I who am the agent of this feeling, and it is Iwho can do something aboutthis." CONTECProject:Chaos, Eventual Adaptation Inadequateattendingto recipients'emotions can leadto underperformanceinchange outcomes, as illustratedinthe implementationof CONTEC.Thisprojectaimedat consolidat- ing29 repairtest sites intoseven inone yearandaffected about2,000 technicians,downsizingthe groupby about20 percent.Changeagents' commitmentto realizethe opera- tionalefficiencyand manpowersavings were strong,and they didnot feel the need to get the buy-inof the recipient linemanagers,as they could not "affordthe time." Agents were conceptuallyaware of potentialemotionalissues but couldnot gauge theirimportancebeforehand.Theywere 53/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 25. more concernedaboutwhetherto introducethe change in workprocesses concurrentlywiththe physicalconsolidation, fortop managershadorderedthem to rushthe physical change to "grabthe cost savingsandworryaboutthe rest later."As one change managementadvisorasserted after the consolidationtook place, "Ireallydo believethere is a time forpower.Idon'tbelieve intouchy-feely.[Istress task processes and]results-focusedthinking." The change projectmanager,Gary,reporteda "horrendous amountof mistrust"and lukewarmcooperationfromrecipi- ent linemanagers.Unionreps complainedthatmanagers minimizeddirectcontacts with employees. UnlikeCONRET, change agents here didnot benefitfromthe voluntary actions of linemanagersto attendto theirsubordinates'emo- tions. Garyofferedthis partialexplanation:"Manyinexperi- enced technicianswere promotedas managers.Peoplewere overcome with other[work]prioritiesandotherchange pro- jects. Ittook us a lotof time to learnhow to communicate properly... anddealopenlywith emotions."Agents discov- ered intense emotionalbacklashonlywell afterthe consolida- tionwas completed. Emotionalresponses were similarto those experiencedbythe service reps. Garynoted, We [haveunderestimated]the painof people havingto quit.A lotof people hada toughtime moving,andthose who did,hada hard time adjusting.People now takean houranda halfto get to work when itonlytookthem 15 minutesbefore.We were affectingpeo- ple's lives and itgot extremelyemotional..... We foundthatwe didn'tallowthe time to let theirfeelings out ... people were still caughtup inthe emotions of leavingtheir[joborhometown]... andwere bringinga lotof emotionalbaggageto the job ... .We don'tdealwell witha lotof these soft issues. The consolidationwas physicallyachieved,butthe qualityof service declineddrastically,and resistanceto change remainedfierce.As a unionrepreported,"Peopledistrust the company."Theabsentee rateincreasedby about20 per- cent. Loudcustomer complaintscaughtthe attentionof top management,whichdemandedurgentservice recovery actions.Whenagents broughtinfacilitatorsto attendto emo- tions abouta year later,they noted a "nightandday"differ- ence andconcludedthatthese "soft"interventionsshould have been done upfrontinthe change. OUT-EASTand OUT-WESTProjects:Adaptation and Chaos Most of the emotion managementat Servicowas done by middlemanagers,butinan outsourcingproject,otherorgani- zationmembers undertookthis task when managersignored it. Foranalyticalconvenience, Itreatitas two distinctchange cases, one affectinghome repairtechniciansinthe Eastern divisionof Servico(OUT-EAST),the otheraffectingtechni- cians inthe Western division(OUT-WEST).Thetechnicians belonged to the same union.Changemanagersclaimedthat they couldcut costs by about$30 millionannuallyby giving home repairto outside supplierswho chargedlowerprices. Althoughthere was strongcommitmentto change fromcer- tainmanagers,linemanagershere didlittleto attendto recip- 54/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 26. Emotional Balancing ients' emotions before and duringoutsourcing,forthe same reasons as describedinCONTEC. These two cases, which seem to displayproblemssimilarto the previousconsolidationcases, revealtwo surprisingfind- ings. First,throughdeliberatereframing,certaintechnician unionreps inthe Easterndivisiontriedto reduce members' fearandangerat outsourcing,while theircounterpartsinthe Western divisionexacerbatedtheirmembers' agitation.This may helpexplaininpartwhy implementationof OUT-EAST was quickerand less costly thanthatof OUT-WEST.Second, the unionreps workedas front-lineworkersbutwere also elected as middlemanagersinthe unionhierarchy,and some of them sought to reducethe agitatedfeelings among their members to maintainsome operationalcontinuitywhen line managersfailedto do so. As a unionofficialexplained,"In the Eastthere's a sense thatthe corporationis losingthe competitivebattle,the job marketis not as great [as inthe West], so workerstend to be more accommodating.The level of angerand militancyis differentbetween the two divi- sions." Notably,unionofficialsbased inthe Eastcreated some continuityby askingServicomanagersto set upa new company(Newco) inwhich the outsourcedjobs couldbe givento some of the 3,500 techniciansbeing let go. This wouldallowat least 900 techniciansinthe two divisionsto keep doingsimilartasks (at$12 an hourversus the $18 previ- ously earnedwith Servico)andthe unionto keep uniondues. Newco would be held by an investmentfundbased inthe East. Butthis unusualscheme was poorlyreceived inthe West, where itwas seen as drivenby people inthe East. Unionreps reportedthreatsof angrymembers suing the unionleadershipforcolludingwith managementto downsize andoutsource, andthere were incidentsof physicalviolence. Western unionreps reportedthat "moraleis rockbottom and people arejust totallyfed up." These contrastingresponses suggest thatfaced with essen- tiallythe same objectiveevent, influencerscouldalterthe type of emotions experiencedby recipientsby reframingthe situationand by raisingalternativemeaningsthat reshape people's interpretationsof events andtheiremotional responses to them (Wasielewski,1985). How the unionreps framedoutsourcingineach divisionexplainsverydifferent types of emotions elicitedamong theirmembers: Whenyou outsourcethisjob,wouldyou say we want you to go backto do the same jobfor$12 an houras opposed to $18 with benefits?Tome thatwas immoral.Itdemoralizedeverybody.It smackedof sleaze andno ethics. (Westerndivision) We have succeeded inprotectingvaluablejobs. Thisis a win-winfor boththe companyandthe union.We convincedthe companyto give workexclusivelyto Newco .... It'snot to the union'sadvan- tage to go on strike;we couldhave lost even morejobs since sur- plus managerscouldreplacetechnicians.(Easterndivision) EMOTIONALBALANCINGAND CHANGE OUTCOMES Table3 summarizes,foreach change case, the presence or absence of emotion management patternsdrivingchange or promotingcontinuity,as well as the associated outcomes for 55/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 27. Table3 Effects of Emotional Balancing on Outcomes Change Commitmentto Attendingto recipi- cases change ents' emotions Outcomes at aggregate work-grouplevel Inertia 0 Fine-tuningchanges withfinancialbenefits 0 Littleenhancementinorganizationalcapabili- ties 0 Learningto changevirtuallyabsent Inertia - Suboptimalresourceallocationprocess + Learningto changeincludedbothtechnical andhumandimensionsforindividualchange agents Inertia - Suboptimalfinancialcontrolsystems + Learningto changewas mainlytechnical Adaptation 0 Physicalconsolidationrealized;partialrehir- ingof laid-offworkersto restorecontinuity + Continuity:servicequalityrestoredafter1- yeardecline ++ Learningto changeincludedbothtechnical andhumandimensions Adaptation 0 Physicalconsolidationrealized + Continuitymaintained:servicequality remainedhigh ++ Learningto changeincludedbothtechnical andhumandimensions Absentduring change (adequate afterchangewas done andseeing negativeresults) Some Absent Chaos,eventualadaptation 0 Physicalconsolidationrealized - Costoverrunsforovertimeandtrainingof new workers;significantdeclineincus- tomerservice - Littlelearningto changeduringchaotic stage + Chaoticsituationreducedwhen emotional attendingto actionstookplaceafterthe change ++ Learningto changeincludedtechnicaland humandimensionsafterchaoticstage Adaptation 0 Physicaloutsourcingrealized + Inefficientchangeinworkprocesses reme- diedafterabout1.5 years + Declineincustomerservice remediedin6 months ++ Learningto changeincludedbothtechnical andhumandimensions Chaos 0 Physicaloutsourcingrealized,butlateby one yearcomparedwith Easterndivision - Inefficientchangeinworkprocesses still unresolvedafter2.5 years;declineincus- tomerservice unresolvedafter2.5 years + Learningto changewas mainlytechnical; managersstartedto be awareof human dimensionsafter2 years. Note:- = littleornegativeadaptivebenefitsforthe group/organizationinrelationto resourcesspent to implementthe changeproject;0 = modest orphysicalchangewithno significantimprovementinorganizationalcapabilities;+ = pos- itiveadaptation:and++ = significantimprovementinorganizationalcapabilities. 56/ASQ,March2002 FAST-ADMIN (3 projects) Low INV Absent (neutralizedby executives) FINA Little Adequate Absent High Diluted HighCONRET CONBUS High High HighCONTEC OUT-EAST OUT-WEST High High at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 28. Emotional Balancing each. Table3 characterizesthe projectsby change outcomes at the work-grouplevel.Work-groupinertiaresults in modest, incrementalchange, at best. Work-groupadaptationis reflect- ed inthe degree to which the change projectis realized,as well as the continuityinthe qualityof customer service. Work-groupchaos characterizesprojectsinwhich the change projectwas generallyrealizedbut inwhich benefits were below initialforecasts, employees were inturmoil,andthere was serious degradationinthe qualityof customer service. Thetable also characterizeswhat organizationmembers have learnedfrombeing involvedinthe change projects,as agents or recipients,on boththe technicaland humandimensions. The technicaldimensionincludesincreased knowledge and skillsinareas such as statisticalanalysis,projectmanage- ment, benchmarking,process mapping,time and motion studies, workprocess reengineering,andtraininginvarious informationtechnology hardwareand software to increase workproductivity.The humandimensioninvolvesincreased knowledgeand skillsinareas such as communicatingbad news constructivelyto employees, evaluatingand retaining people who can workinthe new environment,facilitating groupdynamicsunderstress, and recognizingvariouspeo- ple's personaland emotionalneeds and attendingto them in a timelyand sensitive manner. Thethree FAST-ADMIN,INV,and FINAprojectssuggest that weak commitmentto change ina high-pressureradical change context is likelyto leadto work-groupinertia,with or withoutattendingto recipients'emotions. The CONTECand OUT-WESTcases suggest that strongcommitmentto change with littleattendingto emotions can leadto work- groupchaos. Chaosor inertiaresults indeterioratingwork- groupperformanceina radicalchange context. CONTECrep- resents an in-caseexperimentationof attendingto recipients' emotions. The physicalconsolidationwas done quicklywith littleregardto employees' feelings. Thisresultedina signifi- cant decline inthe qualityof customer service, which promptedcostly remedialactions, includingpayforovertime and recruitingnew workersandtrainingthem. These actions attenuatedthe crisis,but underperformancestillprevailedas a resultof seething resentment andemotionalcontagion between survivorsand new workers.Onlywhen change agents realizedthatthey needed to attendto recipients' emotions was the qualityof customer service restored.The change agents' learningat the beginningof CONTECwas mostlytechnical-benchmarking, process reengineering,and projectmanagement-and evolved to includesignificant human/emotionaldimensionsthanksto lateractions that reducedchaos, such as groupmeetings to share anddiscuss feelings aboutchange, mourning,and personalcounseling. The CONRET,CONBUS,and OUT-EASTcases suggest that reasonablework-groupadaptationto change, includingmulti- dimensionallearning,is more likelyto occurwhen actions involvingcommitmentto change andattendingto recipients' emotions are bothpresent. Beyondtechnicalskills,adaptive groups learnedmore change skills(e.g., humandimensions) fromattendingto emotions thandidgroupsthat onlystarted to develop a conceptualawareness of it. Radicalchange can 57/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 29. arouse strongemotions inchange agents and recipients alike,spanningthe rangeof emotions depictedinthe circum- plex model presented above, infigure2. Emotionalbalancing actions can be self- as well as other-directed,as shown in the conceptualmodel infigure3. Inthis model,organizational adaptation-imperfectlyoperationalizedthroughthe work unit'sabilityto integratethe change project,maintaincontinu- ityinits operations,and learnfromits change experience-is influencedbythe emotionalbalancingactivitiesof organiza- Figure3. An elaborated model of emotional balancing duringradicalchange. BEHAVIORS Emotional commitment to change projects EMOTIONALSTATES Strong Increasepleasant/ high-activation emotions (Cheerful) Decrease unpleasant/ low-activation emotions (Dejected) CHANGEPROJECT GROUPOUTCOMES GROUPCHAOS t Maintain pursuitof change project y Middlemanagers' emotionalbalancing 4o ,.I-i Increase pleasant/ low-activation emotions (Quiescent) Decrease unpleasant/ high-activation emotions (Agitated) Learningfrom change successes & failures Maintain continuityin operations GROUPINERTIA GROUPADAPTATION 58/ASQ,March2002 Weak Attending to recipients' emotions 10- at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 30. Emotional Balancing tionalmembers. The model suggests that organizational adaptationis influencedby both kindsof emotionalbalancing actions, one aimed at drivingchange, anotherat maintaining continuity. Togenerate the emotionalenergy thatfuels the pursuitof theirprojects,agents have to strivecontinuouslyto elicit pleasant/high-activationemotions and reduce unpleasant/low- activationemotions inthemselves. Tomaintainoperational continuityduringradicalchange, recipients'emotions also have to be carefullymanaged,by elicitingpleasant/low-activa- tion emotions andattenuatingunpleasant/high-activation emotions. Underthe severe constraintsof time and resources that often promptthe need for radicalchange, effective emotion managerstryfirstto calmtheirhighlyagi- tated employees before tryingto elicitenthusiasticsupport forchange. Calmingprocesses includeorganizingone-to-one listeningto concerns that recipientsmayfeel uncomfortable voicinginpublic;empatheticratherthanjudgmental response; attendingto recipients'personalandwork-related concerns, especiallywhen these are caused bythe change event; organizingmourningsessions of cherishedvalues that are no longerappropriatewhile extollingvalues thatare pre- served;organizingregularsmall-groupmeetings to informas well as to listento recipients'feedback on bothtask and emotionalneeds. These activitiescould be sharedamong manymanagers.Thanksto the aggregate emotionalbalanc- ingefforts of manymanagersinteractingwith a group- some managerswere moreattentiveto promotingcontinuity, others morefocused on drivingchange-the workgroup couldadaptto change andavoidthe serious underperfor- mance associated with extreme chaos or inertia. The cases seem to suggest that emotionalbalancingis par- ticularlyimportantformajorchange that requiresbothstrong commitmentto change and, minimally,some moderate acceptance fromrecipientsto integratethe change while maintainingsome of theirtraditionalbutstillimportanttasks (e.g., servingcustomers). Realizingambitiouschange requirescommitment,initiative,and perseveranceto over- come skepticismand inertia.Butto the extent thatthis change disruptsrecipients'workand personallives ina major way, appropriateattendingto emotions should be calibrated to the recipients'emotion types and/ortheirintensity.For example, less intense attendingto emotions seemed requiredinthe case of INV(reengineeringof financingprac- tices), which probablyaffected the recipients'personalwel- fareto a lesser extent thandidCONBUS,which involved reengineeringof work,sites closings, and relocation. Middlemanagerstypicallytook on the emotionalbalancing rolein radicalchange. Thanksto theirjobresponsibility,they were able to devote moretime to internalcompanyissues thanthe executives, who hadto attendto multipleexternal institutionaldemands. Linemiddlemanagerswere generally closer to theirfront-lineworkersthanwere the executives and,therefore,moreattunedto theiremployees' needs. Hence, middlemanagersratherthanexecutives were more likelyto be effective with emotionalbalancingindealingwith workers,because emotion management must be highly 59/ASQ, March 2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 31. appropriateinorderto be effective. One must be close to a particularindividualorgroupto recognizethat not everyone feels the same type of emotionwiththe same intensityat the same time inresponse to the same event. Different emotionalresponses, needs, orcopingmechanisms need to be recognizedandattendedto accordingto the demands of the specific situation.Mishandlingof emotionalresponses risksbackfiringon change agents if recipientssuspect them of being manipulativeratherthancaringandauthentic.In contrast,appropriateemotionalbalancingcan providebenefi- cialorganizationaloutcomes. DISCUSSION Inthe case studies reviewed here, middlemanagers'aggre- gate actions seem to havefacilitatedtwo importantorganiza- tionaloutcomes: developmentof new skillsandoperational continuity.Fromthe mixedsuccesses andfailuresof the change projects,learningto change seems to represent,at an aggregateorganizationallevel, one of the majorbenefits realizedthroughchange projects.Throughlearningby doing, certainorganizationmembers developed a more refinedand embodied understandingof the necessary skillsinvolvedin major,rapidchange. Theygraduallybuiltnew skillsbyapply- ingandadaptingto theirown workcontext a varietyof change tools that hadbeen relativelynew to manyof them. Besides learningthe technicaland humanelements of change knowledgeandskills,veteranmanagersalso learned to interactwith newcomer executives andexternalconsul- tants, and incertaincases appreciatedthe exposureto new ways of doingthings,such as aggressive marketing,quick competitiveresponses, takingmore risksinfast action,and the importanceof cash and profits. Withregardto operationalcontinuity,certainmiddleman- agers' attentionto workdetailsandsubordinates'emotions contributedinpartto a relativelysmooth downsizingina numberof workunits.Byworkingwith unionrepresentatives to soften downsizingand relocationhardshipson a number of recipients,managersreducedthe likelihoodof extreme responses. The initiallyfeared massive sabotages andstrikes by powerfulunionsdidnot occur.Managers'emotion-attend- ing behaviorsreduceda potentiallyhigherstate of angerand fearamongthe employees drivenby emotionalcontagion. Continuityinprovidingproductsandservices allowedServico to maintainsome of its revenue-generatingcapabilityduring CT,thus providingpartof the needed cash to fundthe multi- tude of change projects. The modelof emotionalbalancingdevelopedherespecifies three interrelateddimensionsof a change process theory: middlemanagersas the mainactors,emotionalbalancingas the process, andorganizationalradicalchangeas the specific context.Themodelcontributesto at least threedifferent researchstreams:researchon organizationalchange,the socialpsychologyof emotion,andmiddlemanagement.It contributesto the radicalchange literatureby proposingemo- tionalbalancingas a promisingtheoreticallens to use in examiningthe challengesof implementingradicalchange.The literatureon radicalchange has often focused on executives. 60/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from
  • 32. Emotional Balancing Thisstudysuggests thata richerknowledgeof radicalchange can be achievedby includingotheractors. Itrevealsthatthere were a numberof middlemanagers,manyof them veterans, who were willingandableto initiate,lead,and implement changes even underverystressful conditions.Thisfinding providesa potentialsolutionto one conundrumof the theory of punctuatedequilibrium(Tushmanand Romanelli,1985), which holdsthatwhile outside executives are more likelyto initiateradicalchange, veteranexecutives who havealready been let go mighthave been morecapableof implementing it.Thisarticleappearsto be the firstto revealthe emotional balancingroleof middlemanagersina radicalchange context andthus contributesto the middlemanagementliteratureby highlightingthis productiverole. Inaddition,these findings inviteus to revisitthe typicalassociationof emotionalitywith irrationalityandorganizationaldysfunctionality(Weber,1946; Jehn, 1995).Theyalso challengethe assumptionthatself- interestandpoliticsarealwayscounterproductiveto organiza- tionallearningandadaptation.Instead,organizationalchange couldbe construedas the coevolutionof interactingprocess- es takingplace between instrumental,organizationallylegiti- mate concerns (Simon,1976)andmarginalizedbutpersonally meaningfulaspirationsandemotions. Thisarticlealso contributesto the literatureon the social psy- chologyof emotion. First,it linksmicro-levelemotions to macro-levelorganizationalandstrategicphenomena. Radical change is strategicbecause its outcome affects the life chances of the organization.The articleillustrateshow emo- tionalbalancingfacilitatesadaptivechange at the work-group level. Itreveals how a numberof middlemanagersformeda self-emergingsocial supportgroupthat attendedto employ- ees' emotionalneeds inan organizationthat is supposed to functionon instrumental,unemotionalroutines.Thissocial supportgroupprovidedan emotionalbufferagainstand repairunitforstressful events andthus facilitatedcontinuity (Stroebeand Stroebe, 1996). Othermanagersemerged as intrapreneurs,applyingemotion managementto drive change, andthis relaxedthe unrealisticrequirementthatvir- tuallyevery influentialorganizationalactormust supportand drivechange (Kotter,1995).Thanksto this diversityinthe emotion-managementpatternsthat shape emotionalbalanc- ing, some formof emotionalintelligencecould be created at the grouplevel withoutrequiringa majorityof influentialindi- vidualsto be emotionallyintelligent.Thissuggests that orga- nizationscoulddevelop emotion-relatedroutinesthatfacili- tate organizationaladaptationthattranscends individual emotionalintelligence(Huy,1999). Thus,while buildingon some of the insightsof the emotional intelligenceliterature,such as emotionalawareness and repair,this study suggests a complementarypathto organiza- tiontheorists interested in includingemotion intheir research.The currentskepticismaboutmeasuringemotional intelligenceandassociated undersubstantiatedgrandiose claims (cf. Saloveyet al., 2000) shouldnot discourageorgani- zationscholarsfromstudyingemotions. Inadditionto or in lieuof personalityand individual-levelemotion constructs, one mightconsiderstudyingthe aggregationof emotion- 61/ASQ,March2002 at University of Liverpool on October 18, 2012asq.sagepub.comDownloaded from