Change Process Theories in Downer (EDI) Limited - Research Paper Example

Change Process Theories in Downer (EDI) Limited Introduction This paper is aimed at finding how change process theories are adopted and their implication on sustainability of an organization. The company on focus is Downer (EDI) limited, which is concerned at operating in the construction industry. The company primarily operates in Australia and New Zealand but has ventured into other countries. The paper first explains the theories of change and how these theories are closely relate to organizational development. Theories of change identify change as a process and therefore the theories of change are known as change process theory. Different researchers propose their view on literature regarding theory of change. There are different theories and each theory has a different aspect and view regarding change. The research will then aim at identifying how these theories can be adapted to matters regarding change and sustainability of a company (Downer limited). After expounding the theories I will prudently and briefly talk about Downer limited, this will give a clear image of what the companies deals with and its current stand. Downer EDI Limited use of change theories to sustain itself will then be discussed in relation to the scholar’s suggestions. After discussing this facts and relating them them to the theory explained in the literature I shall review the company’s sustainability strategy. Change Process Theories Theories of change attempt to answer the question of how and why change occurs while theories of changing attempt to answer the question of how to generate change and guide it to a successful conclusion (Bennis, 1996). Porras and Robertson (1987, p.4) expanded this ideology to change process theory and implementation theory. Describing change process theory is simply explaining the dynamics of change. There are multiple variables that are involved in the accomplishment of planned change. The two scholars (Porras & Robertson) described implementation theory as "theory that focuses on activities change agents must undertake in effecting organizational change" (p. 4). They include strategy procedure, and technique theories as examples of implementation approaches. Academic writing tends to focus more on change process theory but practitioners are focusing so much on implementation theory. Integrating the two theories has been given very minimal focus. Theory of change is very important for strategic purpose of an organization. It will be therefore important for organizations to understand change theory for the purpose of implementing some key strategies. Van de Ven and Poole (1995) identified four basic types of change theories. They considered them as lifecycle, evolution, dialectic, and teleology framework. There are motors that distinguish these types. Van de Ven and Poole suggested that most change theories can be understood within one motor or in a combination of motors. 1. The teleological Motor The result of purposeful social construction by organization members is what is described by this motor. Development motor is a cycle of goal formation, implementation, evaluation, and modification. Organizational change is goal driven; this has made many contemporary to theories to incorporate this aspect. Teleological change theories can be summarized as follows. Strategic change: Rajagopalan and Spreitzer (1996) suggested that strategic change was solely due to teleological change. Most strategic theories take into consideration that planned change is triggered by goal oriented mangers can trigger change in both an organization and its environment. This has prompted several researchers to take so much interest on understanding the role of leadership in making organizational change (Nutt & Backoff, 1997). Organizational change comes about as a result of leaders attempting to develop their followers and transform followers goals to make them compare closely to those of the organization (Bass, 1985; Bass &Avolio, 1994). Some researchers have recognized the fact that organization change is the end result of cognitive development of organizational leaders (Hooijberg, Hunt, & Dodge, 1997; Torbert, 1991). Cognitive frame theory: it is of great importance for managers to embrace cognitive change if organizational change has to be achieved. Reconceptualization of the context then leads to further cognitive change in continuing iterative process (Barr, Stimpert, & Huff, 1992; Bartunek, Krim, Necochea, & Humphries,1999; Weick, 1995). Gioia and Chittipeddi (1991) found that managerial efforts to communicate a planned change built cognitive consensus, which further enabled the change. Change momentum: studies that involve change momentum have relied on the evolutionary motor to explain aspects such as, organizational routines, which in turn create inertial forces organizational routines, which in turn create inertial forces (Amburgey, Kelly, & Barnett; 1993; Kelly & Amburgey, 1991). Chnge momentum is teleological theory as due to the fact that the forces that keep moving is goal driven and purposeful. Change based momentum defined as the perception of the overall energy associated with pursuing some end state, fluctuated in a systematic way throughout a change process (Jason, 2000). Theories of innovation: Some researchers has suggested that individuals try to innovate in relation to the environmental features to generate organizational change (C. M. Ford, 1996; Glynn, 1996). Individual intelligence can combine with the organizational intelligence to come up with brilliant ideas. The ideas are then implemented so long as there are some conditions that are set, such as, adequate resources and support, incentives and inducements. In this case the model of organizational change is driven by the individual’s cognitions and a collective sense making process within the organization. 2. The life cycle motor The life cycle motor envisions change as progression through a predetermined sequence of stages. Arrangement of the stages does not change, what changes is the speed of the progress and the causes that lead to the development through the process vary. Van de Ven and Poole (1995) stated that "trajectory to the final end state is preconfigured and requires a specific historical sequence of events" (p. 515). There is little development in regard to this motor, but there is an exceptional case in the entrepreneurship, where theorist continue to use a life cycle motor to understand the development and failure of new ventures (Hanks, Watson, Jansen, & Chandler, 1994),including self-organized transitions (Lichtenstein, 2000a, 2000b). 3. The dialectic motor This theory suggests that organizational change is as a result of conflict between two opposing entities. The status should be directly be confronted by new ideas and values. It is in this theory that cognitive and political change theories are driven; it also plays an important role when it comes to schematic change theories and communicative change models. Communication change theory: this is drawn from the concepts of social construction (Berger & Luckmann, 1966) and structuration(Giddens, 1984), several theorists have begun to consider change as an element of social interaction.it is important to realize that change is generated through conversation and other forms of communication (J. D. Ford, 1999a;J. D. Ford &Ford, 1995). Noteworthy, organizational change characteristically requires new organizational language that results from the conversational dialectic (Barrett, Thomas, & Hocevar, 1995). Schematic change: this model is made from the fact that individual cognitive processing to the manner in which changes are evident in their shared schemas. Schemas are cognitive framework that provides meaning and structure to incoming information (Mitchell. & Beach, 1990). 4. The evolutionary Motor This motor focuses on the change in a given population over time. There is continuous variation, selection and retention over time. What are given attention in evolutionary theories is the environmental conditions that create inertial pressure for organizational change. Change theories built around this motor starts with the assumption that one must understand the environmental setting of an organization in order to understand the dynamics of change. The ability to respond and adapt to these powerful external forces will enhance organizational change. It is described by two theories: Internal Change routines: most of the researches on organizational routines applies variation, selection, and retention to intra-organizational process by considering hoe individual actions are selected and retained within the population of organization members.in regard to these researches have proposed that organizations should develop routines, or patterns of action, that drive future action (Nelson & Winter, 1992; Feldman, 200). Institutional change: this theory is often associated with stability rather than with change. Over a given period of time organization will grow more similar because the institutional environment provides resources to organizations that forms to institutional norms that forms barriers to innovations (North, 1990; Zucker, 1987). Despite the fact that this is related to theories of stability it is also related to theories of change (Hinings, 1996). Theories of institutional change recommend that organizational actions are determined by the ideas, values, and beliefs that are contained in the institutional environment (Meyer & Rowan, 1977). It is important to note that institutional theories depend on the evolutionary motor to understand the dynamics of change. Downer EDI Limited Downer EDI Limited (Downer) is a company that is listed on the Australian securities exchange and operates as three division; infrastructure, mining and rail. It is with no doubt that this company has sustained itself regardless of any change that has occurred overtime. Theories of change can explain how this company has been able to sustain itself and the implication on its business strategy. Some statistics can show evidently that Downer can really sustain itself. More than 20,000 people are employed by Downer. The company proves to sustain itself can be related to its ventures outside New Zealand to Asia-Pacific region, South America and South Africa. Downer EDI Limited use of change theories to sustain itself The four motor that expound on change theories can be used to illustrate how Downer has adopted them to sustain itself and develop business strategies that cope with the change which is dynamic. According to 2013 sustainability report from Downer Company, it stated that downer is committed to designing, constructing and maintaining the best solutions for its customers while focusing on the health and safety of the people. This can be viewed as a goal that the company wishes to achieve; this desire to achieve a goal can be traced to the teleological motor that is influenced by aspects such as goal formation. According to the literature that explains this theory insisting that change is goal driven. Motivation for change emerges when actors perceive that their current actions are not enabling them to attain their goals, and the focus is on process that enables purposeful activity towards the goal. As a result of this Downer has tried to remain a successful business in fluctuating market conditions, the company has tried to balance between the short term results against the long-term sustainability by optimizing costs, improving efficiencies and maintaining the systems that won’t compromise the sustainability performance. Baring the fact that Downer is a company deals with construction, it is very important for it to strategy on how it is going to change the mode in which it is going to improve the work place, if a proper strategy is not adopted a lot of injuries are going to occur and on the work place. Grant Fenn, managing director said “we continue to strive for a zero harm workplace and we can only achieve this by maintain our focus on the critical risks in our business.” These utterances by the manager can be related to strategic change theory. There is an essence of planned change in the company of Downer. This teleological concept is been used and is realizing the role of its leaders. In October 2012 there was a tragic fatality in New Zealand’s workplace. Resulting to theories of change this force made the company to consider the change of the working place. The environmental forces cause a momentum; therefore, this change can be related to the theory of change momentum. Though there were plans to change the conditions of the workplace the incident accelerated the change to be hastened. This then becomes goal driven and purposeful as it will try to inhibit such incidences to happen again. Downer responded to this by intensifying its focus on critical risks and incidents that have the potential to cause serious injury. As the theory of change suggests, individual change is important to influence the organizational change (Senge, P.1990). The company also focused on the occupational and supervisory training of the people to enhance skills. Changing the cognitive aspect of people will influence the change of the organization. Downer’s sustainability strategy The company has realized that for it to sustain itself it should respect the community in which it operates in. the primary strategy for the company in regard to sustainability is to manage the environmental impact of its activities. The company deals with construction and mining to some extent and environment should be checked and if not authorities shall come knocking, the community shall protest and so for it to sustain itself environmental consideration should be checked. Managing the environment will make the company to have a long term success in the business. For this reasons Downer has adopted some strategies that ensure it is on the track regarding this, it has a risk-based approach that to manage the environmental and sustainability performance, the material risks are reviewed regularly and the performance date reported internally and annually. Sustainability aspects are important for the future of a company’s aspects. One of the sustainability aspects that the company has put in place is the governance systems. Effective corporate governance is integral in achieving any sustainability goals. The corporate governance framework has adopted some platform through which it enhances that it copes with change as well as aid in the business strategy. The corporate governance ensures that the board is accountable to shareholders for the operation, performance and growth of the organization, it also makes it possible that the policies formulated makes the management is accountable to the board. Change has to occur across the whole organization, and for this reason the corporate governance section is aided by all structure across the company to implement the governance policies. Health and safety is an issue that can’t be neglected when it comes to the type work that the company deals with. Through construction work the environmental issues can be compromised, in construction and mining accidents can be inevitable. Downer has there changed over time to ensure that it handles these aspects. The first thing that the company change is to come up with a goal that they named “zero harm” this requires the company to continuously improve towards achieving a zero-related injuries and environmental incidents. For sustainability purposes the company has realized that it has to exercise care to secure the safety of its employees and contractors, as well as the communities that are affected by the company’s operations. The company ability to change in the manner in which it vies hazard has been set as part of its goal. The company has reviewed hazard to make sure that the workplace and those associated the business operations. The company has involved itself on critically reviewing risk; this is one of the changes that the company has adopted to cater for any serious harm or death of the accident. The company has employed project teams that focus on some specific harm themes, that include; isolation of energy, vehicle to vehicle interaction, plant-pedestrian interface, work at height and exclusion zones (Spreitzer, G. M., & Quinn, R E. 1996). These teams ensure that they have investigated the triggers for critical hazards and evaluate the effectiveness of current controls. In this action of the company it assures itself on sustainability and changing the faith of the people inside the company and outside on matters relating to safety that they have ensured. Times have changed and women now are joining industries such as construction and mining industry. Downer has realized this fact and it is not left behind regarding this change. Diversity and inclusiveness has been incorporated in the organization policy. This will ensure that the sustainability of the business remains relevant. This is achieved in the company by making sure that it has a diverse workforce which is critical. The diversity strategy has a particular focus on gender, age and culture diversity; this includes how the company recruits and retains skilled people (Weber, P. S., & Manning, M. R 1998). The company has tried to make sure that it has gender balance in management positions and in the workforce. Some recent statistic on the distribution of gender in the company indicate that 3 of 8 Non-executive of Downer board, 12% of work force, 8% of senior management/ executive roles are spearheaded by women. The corporate and the world is changing. Downer has ensured this by making a policy that ensures that throughout the year they work on the number of female applicants across all roles in the company. Despite the company trying to engage in this policy it has met some difficulties, this has prompted for the company to practice a special dispensation for, gender-targeted recruitment campaigns which it has slowed the campaign of achieving gender equity. Quinn, R. E., Spreitzer, G. M., & Brown, M. V. (2000) suggested that it is important to change others through ourselves. The findings of these scholars seem to be in place in regard to change. The leadership skills gained and community benefits from this form of change. This strategy also helps the company in matters of sustainability. The company for example has had some of its employees undergo training in leadership. In 2012 a number of employees graduated having completed the Warath Train Project’s Leadership program. These skills that the employers will learn will be transferable to other employees and in this case there will be a change which will in turn enhance the corporations’ sustainability. Another crucial business strategy that ensures the corporations sustainability acquired from change is the environmental impact. The company has put forth some risk management strategies that are implemented on the company’s project and business activities. Effective project planning focusing on industry-specific risks and opportunities reduces the potential for, and number of, actual spills or other environmental incidents. The company has established avenues through which a strong culture is practiced of reporting incidents both internally and externally and to the appropriate regulatory authorities, and the level of environmental awareness amongst the staff and the contractors. In recent times the company has strengthened the environmental sustainability through a broad array of initiatives and achievements, including implementing innovative internal engagement strategies, increasing the company’s use of renewable fuels and achieving record reduction GHG emissions intensity. The reason that the company is changing its view towards environment is because it has realized that environment sustainability is a fundamental organizational value and business driver that can underpin the license of the company to operate in the resources sector (Zucker, L. G. (1987). From the researchers of organization change it can be deduced that for one to measure change there has to be a record that indicate on how the change has been taking place. This it has made it possible by the manner in which the downer group records all environmental incidents and ranks these according to severity. From the reports of Downer Company, they have indicated that they have recorded and reported spills greater than 100 liters or 100 kilogram which have not been contained within a primary bundling or containment system. Conclusion It is important to note that change process theory has continued to evolve and develop. During the past decade there have been approaches that have been put in place to understand change process but they have been modified or synthesized around the motors that explain the change process theory. What is ‘wanting’ though, is for more researchers to focus on the link between individual change and organizational change. Some other factors such as interactions between research on individual resistance to change, organizational level political pressure, and institutional constraints can lead to further clarification of change process at each level. From the downer company it can found that change is planned or instigated by external factors. When change is planned, it is done through setting same goals that when attained the change will have occurred. Teleological motor is much responsible in the change that is involved in the company, from strategy change, change momentum and theories of innovation. Strategy change in the company is showcased in this study on the manner in which the company tries to sustain itself by formulation of strategies. Momentum theory of change can be traced on how forces, internally or externally forces the company to change. A good example is the accident that occurred and made several injured, this prompted the company to change by putting in place mechanisms that would ensure safety of the people at the workplace. In regard to innovation theory the company has adopted some innovation to cope to change and enhance its sustainability. References Amburgey,T. L., & Miner, A. S. (1992). Strategic momentum: The effects of repetitive, positional, and contextual momentum onmerger activity. Strategic ManagementJournal, 13, 335-348. Bass, B. M., & Avolio, B. J. (1994). Improving organizational effectivenessthrough transformational leadership. Thousand Oaks,CA: Sage Bennis, W. G. (1966). Changing organizations. New York: McGraw- Hill. Ford, C. M. (1996). 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