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Key factors in successful organisational change

Norway
A new Working Environment Act (2.09Mb PDF) [1] (/Arbeidslivets lover/) was implemented in Norway in 2006 ensuring the rights of employees in reorganisation processes. During reorganisation processes that involve significant changes for the employees’ working situation, the employer shall ensure the provision of necessary information to employees, participation of employees in the process and competence development to meet the requirements of a fully satisfactory working environment. This new act motivated the Norwegian Labour Inspection Authority (Arbeidstilsynet [2]) to develop guidelines for organisations to promote healthy change processes. [1] http://www.arbeidstilsynet.no/binfil/download.php?tid=42156 [2] http://www.arbeidstilsynet.no/c26840/artikkel/vis.html?tid=29289

A healthy change process empowers individuals instead of making them insecure and defensive in times of organisational change, according to a recent study by the Norwegian University of Science and Technology and the Foundation for Scientific and Industrial Research. The study identified five core factors for healthy organisational change processes. The guidelines aim to help employees restore perceived control and promote job security, benefiting both employees and employers.

Background

A new Working Environment Act (2.09Mb PDF) (Arbeidslivets lover) was implemented in Norway in 2006 ensuring the rights of employees in reorganisation processes. During reorganisation processes that involve significant changes for the employees’ working situation, the employer shall ensure the provision of necessary information to employees, participation of employees in the process and competence development to meet the requirements of a fully satisfactory working environment. This new act motivated the Norwegian Labour Inspection Authority (Arbeidstilsynet) to develop guidelines for organisations to promote healthy change processes.

About the study

To assist the Labour Inspection Authority, researchers at the Norwegian University of Science and Technology (Norges teknisk-naturvitenskapelige universitet, NTNU) and the Foundation for Scientific and Industrial Research (Stiftelsen for industriell og teknisk forskning, SINTEF) recently carried out a study to identify criteria for healthy change in organisations and to develop practical guidelines for intended change. A total of 180 semi-structured interviews were conducted with managers and employees in 90 units of public and private organisations in Norway.

The aim of the research was to identify five factors that are crucial for healthy change processes. The interviews were analysed through qualitative analysis using QSR and N6 data analysis software.

Study findings

The analysis identified the following five categories of special importance for providing practical advice during inspections by the Labour Inspection Authority, in order to make change processes successful:

  • awareness of norms;
  • awareness of diversity within and between different organisational units;
  • manager availability;
  • early role clarification;
  • constructive conflict.

Awareness of norms

The first step for a successful and healthy change process is to examine local norms inherent in the organisation. Local norms are often unspoken and will affect individual experience in a change process. The existing local norm may not always be suitable for dealing with a new situation, and new values and attitudes may need to be developed. Therefore, it is crucial to create common norms and trust in the organisation. If necessary, a part of the process can involve letting the employees participate in the development of new common norms as their basis of action.

Awareness of diversity

Another requirement is to be aware of different reactions to organisational change. Discrepancies in cognitive and emotional orientations among and between employees of different functional departments are a major concern when announcing an organisational change. A high level of differentiation generally exists when organisations are highly complex and specialised. A possibility for conflict of interests may also emerge between different departments or units in the enterprise. It is therefore evident that the possible existence of different emotions and perceptions regarding change must be communicated by the consultant or labour inspector to the company representatives. Of special interest regarding potential threats to health is the existence of whistleblowers – employees who report poor conditions at their workplace – and their possible eagerness to contact external persons to ask for guidance.

Manager availability

The data presented in this article indicate that the demand for contact with managers is evident in any change process. Dialogue with a supervisor may be vital to successful change. The manager must be available to employees and communicate the purpose and objective of organisational change. The function of communication is not only to exchange information: it should also attempt to reach a common understanding of experiences regarding the change process.

Role clarification

Clarification of roles needs to be addressed as soon as possible in the change process – for example, in terms of where a worker will be placed and what their job tasks will be. Otherwise, the consequences of stress caused by lack of role clarity may be destructive for the implementation of change, the work group and the individual worker.

Constructive conflict

The results of this and other studies show that resistance is a common human response across different types of organisational change. The researchers consider constructive conflict to be a useful way of encountering such reactions to change. Constructive conflict occurs where the exchange of views is largely task oriented and cognitive in nature, as opposed to destructive conflict which is person oriented and has a considerable impact on those involved. Through the use of constructive conflict, employees will be more adaptable and flexible to change as they feel more involved in the process. A sense of active participation and the acceptance of expressing one’s views imply a feeling of control and influence among workers; at the same time, it reduces the chances of employees feeling victimised and ignored during the change process.

Commentary

A decisive factor affecting workers’ well-being during organisational change is not always the type of change being implemented, but rather how the change process is handled. The researchers emphasise that, in relation to organisational change, negotiation with and the involvement of workers in a preliminary phase are important elements.

One criticism is that the categories can be too general for inducing concrete change at shop-floor level. However, this contribution is closer to general practice in organisations. The researchers believe that better change processes can be managed by paying more attention to awareness of both organisational norms and diversity.

Reference

Saksvik, P.Ø. et al, ‘Developing criteria for healthy organisational change’, Work and Stress, Vol. 21, Issue 3, July 2007, pp. 243–263.

Cecilie Aagestad, Department of Occupational Health Surveillance, National Institute of Occupational Health



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