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CHANGE
            AGENTS, NETWORKS, AND
                INSTITUTIONS:
            A CONTINGENCY THEORY
              OF ORGANIZATIONAL                            Paper Review by Akshay S. Bhat, XLRI
                   CHANGE
                                                           Academy of Management Journal
                                                           2012, Vol. 55, No. 2, 381–398.



1/24/2013                 Akshay S Bhat, XLRI Jamshedpur                                 1
Abstract



                                                                        Development of a
                       Structural holes aid
                                                                       contingency theory
                         more divergent
                                                                        for how structural
                         changes, Hinder
                                                                            closure in a
                          Less divergent
                                                                              network




            68 organizational
            change initiatives                                                     terms of the extent
            undertaken in the                                                      to which an actor’s
            United Kingdom’s                                                        network contacts
             National Health                                                        are connected to
              Service were                                                            one another,
                analyzed



                                              affects the initiation
                                                and adoption of
                                                    change in
                                                  organizations
1/24/2013                        Akshay S Bhat, XLRI Jamshedpur                                          2
Introduction

Political Nature of Organizations

                       Organizational Changes require premeditated changes

                                             Change Implementation  Social Influence Exercise
                                                                     Change : attitude/behaviour of one due to
                                                                     acts of another




                      Studied : challenges
                      of Change                                    Not Studied : Characteristics of
                      Implementation                               Change Implementation affect
                                                                   In Organizations


    1/24/2013                                 Akshay S Bhat, XLRI Jamshedpur                                     3
Organizational Change - DOC
• One dimension of variation : Extent to which they break with
  existing institutions
• Existing Institutions are defined as patterns that taken for granted
  actors perceive them as the only possible ways of acting and
  organizing
• Divergent Organizational Changes : Move away from the status quo
  (very challenging)
• Iconoclastic

“They require change agents to distance themselves from their
existing institutions and persuade other organization members to
adopt practices that not only are new, but also break with the
norms of their institutional environnent (Battilana, Leca, &
Boxenbaum,2009; Greenwood & Hinings, 1996; Kellogg,2011)”


1/24/2013                 Akshay S Bhat, XLRI Jamshedpur                 4
Article Need
• Examinations of conditions
• Change agents are able to influence other
  organization members
• For adoptions of changes with different degrees
  of divergence from the institutional status quo
• Key resource : Informal Network

“we focus on how change agents’ positions in
such networks affect their success in initiating
and implementing organizational change”

1/24/2013          Akshay S Bhat, XLRI Jamshedpur   5
Network Research
• Structural Closure (degree to which an actors network
  contacts are connected to on another)
• SC has important implications for
      – Generating Novel Ideas
      – Exercising Social Influence
• High SC : More cohesiveness
• Low SC : Creation of structural holes and brokerage
  potential
• Higher Structural Holes more novel ideas
• But studies contradict : Whether High or Low network
  closure favour change adoption

1/24/2013                  Akshay S Bhat, XLRI Jamshedpur   6
Illustration




1/24/2013    Akshay S Bhat, XLRI Jamshedpur   7
Motivation
• Reconcile findings by developing a
  contingency theory
• Will examine the role of network closure in
  the initiation and adoption of Organizational
  Change




1/24/2013         Akshay S Bhat, XLRI Jamshedpur   8
Network Closure and Divergent
               Organizational Change
• In order to survive, organizations must convince the public of their
  legitimacy (Meyer & Rowan, 1977) by conforming, at least in
  appearance, to the prevailing institutions that define how things are done
  in their environment
• Forces them to adopt a set of practices
• Organizations facing same institutional pressures tend to adopt similar
  practices
• Motivation exists to adopt changes that do not affect the organizations
  alignment with existing institutions
• Not all changes will be convergent with the status quo
• The variability in the degree of divergence of organizational changes poses
  two questions: (1) what accounts for the likelihood that an organization
  member will initiate a change that diverges from the institutional status
  quo and (2) what explains the ability of a change agent to persuade other
  organization members to adopt such a change.



1/24/2013                    Akshay S Bhat, XLRI Jamshedpur                 9
Network Closure and Divergent
               Organizational Change


                                                                              Network
   Studies have focused on the                                            Positions should
                                          And position in the social
 change agents formal position in                                         affect the ability
                                                 networks
 the initiation of divergent change
                                                                          of the individual
                                                                                  to




                                                                       • Initiate
                                                                         divergent
                                                                         changes
                                                                       • Persuade others



1/24/2013                             Akshay S Bhat, XLRI Jamshedpur                           10
Network Closure and Divergent
        Organizational Change
• Divergent Schools of thought promulgate the there
  exists a –ve influence between network closure and
  generation of new ideas
• Occupying a hole rich network : non redundant
  information, more creative ideas

“creativity is more likely to be engendered by
exposure to non-redundant than to repetitious
information. As for normative pressure, network
cohesion not only limits the amount of novel
information that reaches actors, but also pressures
them to conform to the modus operandi and norms
of the social groups AkshaywhichJamshedpur are embedded”
1/24/2013              in S Bhat, XLRI they                11
And therefore Hypothesis 1




1/24/2013           Akshay S Bhat, XLRI Jamshedpur   12
Network Closure and Divergent
               Organizational Change
•   Degree of closure affects the adoption of organizational changes
•   Brokerage opportunities may aid adaptive implementation : Ability to carry out
    projects and take advantage of opportunities from the ability to detect
    opportunities
•   But it may help change initiation (incoming benefits) rather than change adoption
    (outgoing benefits) #Structural Holes
•   Benefits can then be classified as structural reach and tailoring
•   Reach concerns a change agent’s social contact with the constituencies that a
    change project would affect, information about the needs and wants of these
    constituencies, and information about how best to communicate how the project
    will benefit them.
•   Tailoring refers to a change agent’s control over when and how to use available
    information to persuade diverse audiences to mobilize their resources in support
    of a change project.
•    Being the only connection among otherwise disconnected others, brokers can
    tailor their use of information and their image in accordance with each network
    contact’s preferences and requirements



1/24/2013                       Akshay S Bhat, XLRI Jamshedpur                      13
Network Closure and Divergent
               Organizational Change
• Refer page 383 ~ 384 (Last para to first para)
• Organizations are political arenas
• Not only imp to decide who but when and
  how are also important aspects concerning
  involvement




1/24/2013             Akshay S Bhat, XLRI Jamshedpur   14
Hypothesis 2. The more a change diverges from
             the institutional status quo, the more closure in
            a change agent’s network of contacts diminishes
                    the likelihood of change adoption.




1/24/2013                  Akshay S Bhat, XLRI Jamshedpur        15
Methodology
• Quantitative and Qualitative Study
• 68 Change initiatives in UK’s NHS
• 600 Organizations
      – Administrative Units
      – Primary Care Service
      – Secondary Care Service
            • Aim of NHS was to provide free health care
• NHS was highly institutionalized
• Professional groups role division
1/24/2013                   Akshay S Bhat, XLRI Jamshedpur   16
Sample
• Focal point of study was variability in divergence
  and adoption of organizational change initiatives,
  population germane to the study was self
  appointed change agents
• Self driven and motivated actors
• 68 clinical managers who initiated and attempted
  to implement change initiatives out of 95 (27
  chose not to respond)
• 35~65 yr old, mid to top management positions
• Unpaired t tests were to control for potential non
  response bias
1/24/2013          Akshay S Bhat, XLRI Jamshedpur   17
Procedure
• Longitudinal study for 12 months which
  focused on collecting demographic
  characteristics, formal positions, professional
  trajectories and social networks of change
  agents
• 20~40 mins taken twice, gap 12 months
• Peer verification


1/24/2013          Akshay S Bhat, XLRI Jamshedpur   18
Dependent and Independent Variables
• Will be explained on the blackboard




1/24/2013        Akshay S Bhat, XLRI Jamshedpur   19
Results
• Will be explained on the blackboard




1/24/2013        Akshay S Bhat, XLRI Jamshedpur   20
Contributions
• Degree of variation from the status quo has
  impacts on adoption of change initiatives
• Synthesis of the two anti-theism schools of
  thought
• Articulated properly
• Advanced body of work on social networks



1/24/2013         Akshay S Bhat, XLRI Jamshedpur   21
Drawbacks
•   Ego network
•   Time structure
•   Kotter not included
•   Transformation of organizations is not covered




1/24/2013           Akshay S Bhat, XLRI Jamshedpur   22

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Strategy doctoral ppt 4

  • 1. CHANGE AGENTS, NETWORKS, AND INSTITUTIONS: A CONTINGENCY THEORY OF ORGANIZATIONAL Paper Review by Akshay S. Bhat, XLRI CHANGE Academy of Management Journal 2012, Vol. 55, No. 2, 381–398. 1/24/2013 Akshay S Bhat, XLRI Jamshedpur 1
  • 2. Abstract Development of a Structural holes aid contingency theory more divergent for how structural changes, Hinder closure in a Less divergent network 68 organizational change initiatives terms of the extent undertaken in the to which an actor’s United Kingdom’s network contacts National Health are connected to Service were one another, analyzed affects the initiation and adoption of change in organizations 1/24/2013 Akshay S Bhat, XLRI Jamshedpur 2
  • 3. Introduction Political Nature of Organizations Organizational Changes require premeditated changes Change Implementation  Social Influence Exercise Change : attitude/behaviour of one due to acts of another Studied : challenges of Change Not Studied : Characteristics of Implementation Change Implementation affect In Organizations 1/24/2013 Akshay S Bhat, XLRI Jamshedpur 3
  • 4. Organizational Change - DOC • One dimension of variation : Extent to which they break with existing institutions • Existing Institutions are defined as patterns that taken for granted actors perceive them as the only possible ways of acting and organizing • Divergent Organizational Changes : Move away from the status quo (very challenging) • Iconoclastic “They require change agents to distance themselves from their existing institutions and persuade other organization members to adopt practices that not only are new, but also break with the norms of their institutional environnent (Battilana, Leca, & Boxenbaum,2009; Greenwood & Hinings, 1996; Kellogg,2011)” 1/24/2013 Akshay S Bhat, XLRI Jamshedpur 4
  • 5. Article Need • Examinations of conditions • Change agents are able to influence other organization members • For adoptions of changes with different degrees of divergence from the institutional status quo • Key resource : Informal Network “we focus on how change agents’ positions in such networks affect their success in initiating and implementing organizational change” 1/24/2013 Akshay S Bhat, XLRI Jamshedpur 5
  • 6. Network Research • Structural Closure (degree to which an actors network contacts are connected to on another) • SC has important implications for – Generating Novel Ideas – Exercising Social Influence • High SC : More cohesiveness • Low SC : Creation of structural holes and brokerage potential • Higher Structural Holes more novel ideas • But studies contradict : Whether High or Low network closure favour change adoption 1/24/2013 Akshay S Bhat, XLRI Jamshedpur 6
  • 7. Illustration 1/24/2013 Akshay S Bhat, XLRI Jamshedpur 7
  • 8. Motivation • Reconcile findings by developing a contingency theory • Will examine the role of network closure in the initiation and adoption of Organizational Change 1/24/2013 Akshay S Bhat, XLRI Jamshedpur 8
  • 9. Network Closure and Divergent Organizational Change • In order to survive, organizations must convince the public of their legitimacy (Meyer & Rowan, 1977) by conforming, at least in appearance, to the prevailing institutions that define how things are done in their environment • Forces them to adopt a set of practices • Organizations facing same institutional pressures tend to adopt similar practices • Motivation exists to adopt changes that do not affect the organizations alignment with existing institutions • Not all changes will be convergent with the status quo • The variability in the degree of divergence of organizational changes poses two questions: (1) what accounts for the likelihood that an organization member will initiate a change that diverges from the institutional status quo and (2) what explains the ability of a change agent to persuade other organization members to adopt such a change. 1/24/2013 Akshay S Bhat, XLRI Jamshedpur 9
  • 10. Network Closure and Divergent Organizational Change Network Studies have focused on the Positions should And position in the social change agents formal position in affect the ability networks the initiation of divergent change of the individual to • Initiate divergent changes • Persuade others 1/24/2013 Akshay S Bhat, XLRI Jamshedpur 10
  • 11. Network Closure and Divergent Organizational Change • Divergent Schools of thought promulgate the there exists a –ve influence between network closure and generation of new ideas • Occupying a hole rich network : non redundant information, more creative ideas “creativity is more likely to be engendered by exposure to non-redundant than to repetitious information. As for normative pressure, network cohesion not only limits the amount of novel information that reaches actors, but also pressures them to conform to the modus operandi and norms of the social groups AkshaywhichJamshedpur are embedded” 1/24/2013 in S Bhat, XLRI they 11
  • 12. And therefore Hypothesis 1 1/24/2013 Akshay S Bhat, XLRI Jamshedpur 12
  • 13. Network Closure and Divergent Organizational Change • Degree of closure affects the adoption of organizational changes • Brokerage opportunities may aid adaptive implementation : Ability to carry out projects and take advantage of opportunities from the ability to detect opportunities • But it may help change initiation (incoming benefits) rather than change adoption (outgoing benefits) #Structural Holes • Benefits can then be classified as structural reach and tailoring • Reach concerns a change agent’s social contact with the constituencies that a change project would affect, information about the needs and wants of these constituencies, and information about how best to communicate how the project will benefit them. • Tailoring refers to a change agent’s control over when and how to use available information to persuade diverse audiences to mobilize their resources in support of a change project. • Being the only connection among otherwise disconnected others, brokers can tailor their use of information and their image in accordance with each network contact’s preferences and requirements 1/24/2013 Akshay S Bhat, XLRI Jamshedpur 13
  • 14. Network Closure and Divergent Organizational Change • Refer page 383 ~ 384 (Last para to first para) • Organizations are political arenas • Not only imp to decide who but when and how are also important aspects concerning involvement 1/24/2013 Akshay S Bhat, XLRI Jamshedpur 14
  • 15. Hypothesis 2. The more a change diverges from the institutional status quo, the more closure in a change agent’s network of contacts diminishes the likelihood of change adoption. 1/24/2013 Akshay S Bhat, XLRI Jamshedpur 15
  • 16. Methodology • Quantitative and Qualitative Study • 68 Change initiatives in UK’s NHS • 600 Organizations – Administrative Units – Primary Care Service – Secondary Care Service • Aim of NHS was to provide free health care • NHS was highly institutionalized • Professional groups role division 1/24/2013 Akshay S Bhat, XLRI Jamshedpur 16
  • 17. Sample • Focal point of study was variability in divergence and adoption of organizational change initiatives, population germane to the study was self appointed change agents • Self driven and motivated actors • 68 clinical managers who initiated and attempted to implement change initiatives out of 95 (27 chose not to respond) • 35~65 yr old, mid to top management positions • Unpaired t tests were to control for potential non response bias 1/24/2013 Akshay S Bhat, XLRI Jamshedpur 17
  • 18. Procedure • Longitudinal study for 12 months which focused on collecting demographic characteristics, formal positions, professional trajectories and social networks of change agents • 20~40 mins taken twice, gap 12 months • Peer verification 1/24/2013 Akshay S Bhat, XLRI Jamshedpur 18
  • 19. Dependent and Independent Variables • Will be explained on the blackboard 1/24/2013 Akshay S Bhat, XLRI Jamshedpur 19
  • 20. Results • Will be explained on the blackboard 1/24/2013 Akshay S Bhat, XLRI Jamshedpur 20
  • 21. Contributions • Degree of variation from the status quo has impacts on adoption of change initiatives • Synthesis of the two anti-theism schools of thought • Articulated properly • Advanced body of work on social networks 1/24/2013 Akshay S Bhat, XLRI Jamshedpur 21
  • 22. Drawbacks • Ego network • Time structure • Kotter not included • Transformation of organizations is not covered 1/24/2013 Akshay S Bhat, XLRI Jamshedpur 22