Impact of shared and participatory management
Over the past few decades, corporate social responsibility (CSR) has been receiving increased attention and has become a controversial issue in the field of business. Recently, CSR and sustainability have converged to achieve a company’s long-term success by considering both the natural and the social environment. This movement has led corporations to take a more strategic perspective on CSR as an approach to non-market strategies. This movement has led firms to benefit financially from the creation of social value, which is reinforced by the concept of creating shared value (CSV) that Porter and Kramer (2011) suggested and also turn.
The differentiating point of CSV from CSR is that it ‘expands the total pool of economic and social value’ (Porter and Kramer, 2011, 65), rather than redistributing values already created by firms.
Nowadays we are defining shared and participatory management within the organizations.
The Burke-Litwin model (Fig. 1) shows the various drivers of change. The model is expressed in the diagram, with the most important factors featuring at the top. The lower layers become gradually less important. The model argues that all of the factors are integrated (to greater or lesser degrees). Therefore, a change in one will eventually affect all other factors.
Model of organizational change
Burke and Litwin’s (1992)
Burke-Litwin believe environmental factors to be the most important driver for change. Indeed, most change can be traced back to external drivers for change. Important elements of organizational success, such as mission and strategy, leadership and organizational culture, are often impacted by changes that originate outside the organization. It is your job to understand these external changes and identify the implications for you and your team.
Identifying and dealing with drivers for change:
1. External Environment
- Enabling public policy
- Civil society pro-activity
- Growing market
This factor represents any forces or conditions outside of the organization that will affect its processes. An example could be consumer behaviour or marketplace conditions. This also includes such factors as markets, legislation, competition and the economy. All of these will have consequences for organizations, and, as a change manager, it is vital that you continually scan the environment for issues that will affect you and your team.
2. Mission and Strategy
- Strategic relevance enhancement
- Stakeholder engagement
- Strategy operationalization
An organization’s mission articulates its reason for existing. It is the foundation upon which all activity should be built. The strategy then sets out, in broad terms, how the organization will go about achieving its mission. Very often, the strategy will be developed in light of environmental change, and will have a significant impact on the work you do.
- Leader awareness building
- Leader involvement
- Visionary guidance
This considers the attitudes and behaviour of senior colleagues and how these behaviours are perceived by the organization as a whole. The way in which change is implemented and accepted through the organization will be largely influenced by the top team.
4. Organization Culture
- Constructive sense-making
- Value institutionalization
- Organizational learning
Organization culture can be described as “the way we do things around here”. It considers the beliefs, behaviours, values and conventions that prevail in an organization. Culture change does not happen overnight. It evolves over time as a result of many other changes in the organization.
- Influential decision making
- Expertise building
- Cross-boundary collaboration
Very often, changes in strategy can lead to changes in the way the organization is structured. This can impact on relationships, responsibilities and ways of working. It means the breakdown of the organization i.e. hierarchy, departments, reporting channels.
6. Management Practices
- Multi-level leadership
- Clarity building
Usually it means behaviours and activities of managers, usually aligned to carrying out the overall strategy.
7. Work Unit Climate
- Multi-directional support
- Employee involvement
The team’s working environment. This considers employees’ perception of their immediate colleagues and working environment. Our immediate working environment is often what shapes our view of the organization as a whole, and influences the extent to which we feel satisfied in our jobs. Changes to the immediate working environment need to be managed sensitively, as they are likely to invoke a range of emotional and political responses from staff. This is particularly the case where change involves moving location, a change in personnel, or a change in terms of conditions of service, such as working hours. For example, how well team members cooperate, how comfortable individuals feel expressing themselves or how well goals are set and rewarded.
8. Systems (Policies and Procedures)
- Competence building
These are the mechanisms put in place to help and support employees. This may be legal systems or reward systems, for example.
9. Task Requirements and Individual Skills/Abilities
- Employee recruitment
- Employee orientation
- Self-efficacy building
Change at a higher level in the organization will often require changes in the work carried out and the skills available in the team. Matching the job description with the expertise of an employee. An experienced, high-level employee may still struggle to adopt new technologies, for example.
10. Individual Needs and Values
- Person-organization fit assessment
- Value transformation
Changes to team membership can mean a change in the team dynamic. In a perfect world, we would be able to recruit the exact fit for our teams, in terms of personal style, abilities and skills mix. However, in reality it is not always possible, and it is your job to identify any risks in these areas and mitigate them as best you can. Employees will expect certain demands, such as pay, work/life balance, responsibility etc. to be met in their role.
11. Employee Motivation
The setting of goals to inspire and direct employees. Considers the significance of individual and organizational goals. Motivation is key to effective change. The real challenge is to maintain motivation throughout a change project, particularly when change is often not well-received by those affected.
12. Individual and Organizational Performance
This factor is the overall output of the organization. This can be represented in many different ways, commonly turnover, productivity, customer satisfaction etc.
Transformational factors (Mission and strategy, Leadership and Organization culture) are deeply embedded processes and characteristics of the organization. Any change that occurs to these factors will have substantial consequences to the rest of the organization. It is also true that any other change will require these factors’ input and hence the arrows go in both directions. Lasting change to any of these factors is likely to sweep change throughout the organization. These factors will be most strongly affected by the external environment and will also have the strongest influence on transactional factors.
Transactional factors (Managemental practices, Organizational structure, Systems and polices, Work climate, Task requirement, Motivation, Individual needs and values) refer to day-to-day operations within the organization. The authors argue these factors are strongly affected by management, rather than leadership. Change in these factors is only likely to lead to lasting change if, in turn, the transformational factors are also affected.
An example would be a change in legal working requirements (external environment). This would cause leadership to alter management practices, which in turn would affect the work unit climate and systems. Through motivation and individual needs and values, we would then see a change to individual and organizational performance.