Change Management

And

Resistance to Change
• To help Black-Belts to understand that
people need motivating, what motivates
them, and why theory helps us to better
understand what to do in practice.

• These notes will help you get better input

from others involved in the Six Sigma
projects and ‘buy into’ the programme.
Resistance and Dynamic
Equilibrium
For Change Against change
Need to build Need to
Innovation consolidate

Market forces Fear of change

Competition Safety first

Trends Stability

Fashion Tradition
 Motivation I
Maslow’s Pyramid
“Actualisation”

Self Esteem

Affiliation
Security
Physical
• Each Higher level only motivates if the lower
levels are satisfied.

• Once a level has been ‘satisfied’ it can no longer

be used to motivate.

• Affiliation = Team - Club - Union - one of us!

• Self esteem is recognition

• The top three levels are all concerned with

perception
 Self Esteem

Actually 4 dimensions
•My perception of myself
•My perception of how others see me
•How others actually see me
•How I am in reality
 Self Esteem II
• This is complicated!
• If each dimension can be split into 5, say
Good - OK - Average - Poor - Terrible
• Then there are 5 = 625 different
5

conditions of ‘Self-Esteem’
• So not as easy as it sounds to use this to
motivate
 Self Esteem III
Example:
Steve McQueen - a Famous American Actor
He was good
Others thought he was good
he could see others thought he was Good
But he thought that he was sub-standard
Can you think of others?
 Self Esteem IV

Supposing that you think that a person is good

And he thinks he is Good
And he is Good
You still need to tell him!
Or else one dimension of his self-esteem can
be damaged
 Motivation II
Hertzberg’s Hygiene Factors

Hygiene Factors Motivators

Working Conditions Status
Pay Advancement
Job Security Recognition
Supervision Responsibility
Leadership Growth
Personal relationships Work itself
 Hygiene Factors:
Cannot be used to motivate
Can de-motivate
Have to be ‘cleaned up’ before motivation can begin

Motivators:
Cannot work if hygiene factors not cleaned up
Can be used to motivate
 Hygiene Factors
Pay
• As long as a person has ‘enough’ they can be motivated
• Charles Dickens - Top writer and Social reformer in
the UK during 19th Century - e.g Oliver Twist - A
Christmas Carol (Scrooge) - quote from Uriah Heep -
– “Annual income 20 shillings - Annual expenses 19.5
Shillings - Bliss”
– “Annual income 19.5 shillings - Annual expenses 20
Shillings - Misery”
 Hygiene Factors II

Leadership and Personal Relations

Good leadership is not a motivator in itself

Bad leadership can be de-motivational
Poor relationships are de-motivational
Good relationships allow motivation to ‘kick-
in’
 Motivators
These are issues to do with self and the
work itself
• Responsibility
• Status
• Advancement
• Recognition
Theses are all dimensions of Self-Esteem
 Other ‘Needs’ theories
McLelland: Three needs theory
Achievement - Power - Affiliation

Alderfer: ERG Theory

Existence - Relation - Growth

Handy: E Theory
Effort - Energy - Excitement - Expenditure
Vroom’s Expectancy Model
An individual is subject to their own perception
of reality - still used today - only ‘good’ model?

Probability of success
Decision
Value of reward if success
 Bounded Rationality
Herbert Simon (Nobel Prize)

Decision can only be based on

actual knowledge - so person is
bounded by what they know.

Hence communication empowers!

 McGregor
Theory X Managers Theory Y Managers
People don’t like work People like work
Do need to be forced Don’t
Not ambitious Ambitious
Don’t care about company Do care
Won’t make decisions Make decisions
Undisciplined Disciplined
 Likert
“Good managers form teams”
4 types of manager

Orientation Type Assessment Results

Task Based Authoritative Poor Big staff
Benevolent Fair Turnover
Consultative Good Up-down
Communication
People based Participative Excellent Up - Down -
Lateral Communication
 Effective Organisations

Susan Jones:
• People are a resource not a cost
• Success depends upon treatment of people
• Quality control about people not products
• Collaboration is good
 Mintzberg
Discovered in 1970s that:
• Strategy is not developed at ‘the top’ of
a company
• Drucker found this in 1950s
• Lindblom in the 1960s
• So strategy ‘emerges’ from the bottom
 Empowerment
Rosbeth Kantor
• People should be given the authority to
make decisions that effect their own job
outputs - empowerment
• People make good decisions if encouraged
• So give then the tools to make better ones?
• Leads to Six Sigma ideas
 Structure - Culture
Burns & Stalker:
• It takes time to change - depends on culture
• 90% of an organisation is ‘hidden’ like an iceberg
and is the ‘informal’ part of a company
• So give it time - some large companies change
slowly
• Flatter structures work best - so get closer to the
‘bottom’ of the company (fits Mintzberg’s ideas)
 Encouraging Change
• To convince people to change they must be
engaged in the decisions - empowered
• “Collaborative not Authoritative”
• People have good ideas - use them
• Theory Y shows that they really care
• They want the esteem - engage them
• Make them the force for change
 Summary
Six-Sigma works because:
• People are ‘engaged’ within their own function
• They collect data and make decisions - empowerment
• They work in groups - affiliation - communication
• They gain responsibility - respect - esteem
• They make a real difference - are valued - esteem
• It also helps companies to make a bigger profit!