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THESIS

INFLUENTIAL FACTORS IMPACTING AN ORGANIZATIONTHROUGH RESTRUCTURING

By

Kristina Heather Wendt

In partial fulfillment of the requirements

MASTER OF ARTSIn Management Consulting and Organizational Leadership

Adler Graduate School

Richfield, Minnesota

June 20, 2008

ADLER GRADUATE SCHOOL

June 20, 2008

WE HEREBY RECOMMEND THAT THE THESIS PREPARED UNDER OUR

SUPERVISION BY KRISTINA HEATHER WENDT ENTITLED INFLUENTIAL FACTORS

IMPACTING AN ORGANIZATION THROUGH RESTRUCTURING BE ACCEPTED AS

FULFILLING IN PART REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS.

Chris StrandExternal Reader

Influential Factors Impacting an Organization through Restructuring 11

Abstract

Changes that are introduced in an organizational restructuring will affect the

communication, decision-making, role clarification and the well-being of organization members,

given the potential for uncertainty that may accompany such changes. There is a need to better

understand the consequences of organizational restructuring and consider some of its potential

side effects on the work environment. Employees in a restructuring context are understandably

wary about the future direction ofthe organization and their roles within it. There are many

studies that attempt to examine communication, decision-making and role clarification in many

different areas of organizations, this paper will examine these factors. Additionally, the inter

relationships between connnunication, decision-making and role clarification including their

antecedents in the work environment are examined. Communication, decision-making and role

clarification levels were tracked months after organizational restructuring began for varying

types of changes that were initiated during the restructuring. COlmnunication, decision-making

and role clarification levels were very low compared to before restructuring. Senior managers

should realize that communication decision-making and role clarification are important

ingredients for the effective functioning of an organization and to actively ensure that support

systems or structures are adequate and available to mitigate the negative impact, particularly if

the changes to be implemented are extensive.


Acknowledgements

To my son, Brockden James Wendt, you are the light in my life and the reason I wake

each morning with a smile on my face. You give me the strength to persevere through anything

so we can have a bright wonderful future, I love you.

To my mother, Sandra Kay VanCampen, thank you for your love and support - I truly

can not say how much I appreciate everything you have done for us and could not have done this

without you. You were always there for us through sickness and in health, thank you. To my

Dad, James W. Wendt, thank you for being the father that everyone should have. I am truly

blessed with a caring and loving dad that would do anything for us. You have helped me

tluough thick and thin, thank you. To my big bro, James J. Wendt, thank you for your

intelligence and wisdom you have instilled in me. Also, for picking and fighting with me as a

child has given me the strength to fight through anything and to never give up. To my little

sissy, Amy N. Wendt, you have taught me to love myself as an individual, for we all have our

own uniqueness, I have always admired that about you, thank you. To my best friend Michelle

L. Fitzhenry, for your caring heart, understanding and listening to me anytime, thank you.

To my friends and family that gave me the strength to never give up and your praise for

encouraging me. Thank you to the employees of CCP, for the opportunity to conduct my study

with you and to learn from you all. To my fellow classmates of Adler Graduate School and

advisor Dr. Premo for understanding life struggles and sUppOtt tln'ough the Masters program. To

Regina, a fellow classmate that lost her life at such a young age, you will always be remembered,

rest in peace. Lastly, thank you to Alfred Adler for expressing your thoughts and theories; it is a

true expression of my beliefs.

Influential Factors Impacting an Organization through Restructuring iv

TABLE OF CONTENTS

Abstract

Acknowledgments

Table of Contents

Table of Content Continued



CHAPTER 1. INTRODUCTION

Introduction to the Problem

History

Statement of the Problem

Purpose and Objectives

Rational and Need for the Study

Research Questions

Definition ofthe Terms

Assumptions

Limitations of Study

11

iii

iv

v

vi

vii

I

2

4

5

7

7

8

10

10

Influential Factors Impacting an Organization through Restructuring v

CHAPTER 2. LITERATURE REVIEW

Implementing a successful communication program

Transformational Leadership

Organizational Centrality

TheoryXY

Organizational Transformation

Centralization/Decentralization

Profiling New Business Development

Blake-Mouton Managerial Grid

Meyers Briggs

Team

Effect of Time Pressure

Ethical Decision-Making Process

Organizational Restructuring and middle management

Balanced Scorecard

Summary of Literature Review

12

12

15

17

18

22

23

25

26

27

28

29

32

32

34

35

Influential Factors Impacting an Organization through Restructuring VI

CHAPTER 3. METHODOLOGY 37

Overview 37

Description ofthe Subjects 37

Description of Research Instruments 40

CHAPTER 4. DATA COLLECTION AND ANALYSIS 46

Introduction 46

Factors Effecting Restructure 46

Sunnnary of SWOT Analysis 48

Results for CCP Assessment Survey 52

Summary of Statistical Results 53

CHAPTER 5. SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS 55

Summary 55

Conclusion 56

Recommendations 58

APPENDEX A: Organizational Flow Chart 74

APPENDEX B: Survey Questions 81

APPENDEX C: Proposal 83

APPENDEX D: CCP Goals for 2008 85

REFERANCES 86

Influential Factors Impacting an Organization through Restructuring vii

List of Figures

Figure 1: SWOT

Figure 2: The Blake Mouton Grid

Figure 3: Balanced Scorecard

Table 1: CCP 2007 Survey Responses

Table 2: Matrix

List of Tables

46

64

67

52

59


CHAPTER 1. INTRODUCTION

Introduction to the Problem

Organizations are human systems and their system sttUcture includes the communication,

decision-making and role clarification that changes tlu'ough a restructuring process. Changing

organizational behavior requires changing the belief system of its personnel. This process of

changing beliefs results in learning. Effective learning requires clear, open conununication

throughout the organization. There are many factors that contribute to dysfunctions of

organizational restructuring. The purpose ofthis study is to examine why communication,

decision making and role clarification break down when going through a restructure. This study

address what can happen if the restructure is not done correctly and ways it can affect the

company. It will also focus on different useful tools that can implement a healthy change.

Organizational performance ultimately rests on human behavior and improving

performance requires changing behavior. Therefore organizational restructuring should have a

fundamental goal the facilitation of clear, open conununication that can enable organizational

learning and clarify accountability for results (Balogun & Johnson, 2004).

Throughout the world, organizations implement restructure procedures daily for many

different reasons, fi'om mergers or acquisitions to downsizing. One main issue is that

organizations take the necessary steps to protect the human system of the structure tlu'oughout

the changes.

The points of leverage in organizations are the communication and decision making of

the leaders. The sense of purpose, vision and commitment of an organization's leadership playa

critical role in its results.


The observation that the American inventor, Douglas Engelbart, made in 1970 may shed some

light on the cycle of restructuring that most companies find themselves in.

"Today's environment is beginning to threaten today's organizations, finding themseriously deficient in their nervous system design.... The degree of coordination,perception, rational adaptation, etc., which will appear in the next generation of humanorganizations will drive our present organizational forms, with their clumsy nervoussystems, into extinction." (Engelbart, 1970)

History

Cooperating Community Programs (CCP) is the company used in this study. Since 1979,

CCP has been working with people with disabilities to create satisfying lifestyles. CCP realizes

each person has different lifestyle wants and needs which is why they have a variety of support

services. CCP respects and celebrates the diversity and uniqueness of each person. They strive

to be flexible and to challenge service suppOlis to grow with the people they serve. CCP offers

different types of suppOli services.

Home Based SuppOli is an option available for people with disabilities who desire a

residential setting that have staff support. CCP offers different types of housing and support

options. CCP offers services in apmiments, condos, four bedroom homes, and wheelchair

accessible homes. Rather than try to fit people into models that they develop; CCP will listen and

then try to help people find a home that fits your lifestyle. They have developed more than seven

alternatives to traditional group homes and we're trying to find more every day. These SuppOlied

Living Services are available in Ramsey, Helmepin, and Washington Counties. Because each

person's support needs are different, staff supervision is flexible and ranges from 24 hour

supervision (including asleep or awake overnight staff) to support in hourly increments through

In-Home services. Direct Support Professionals may assist with household management, using

Influential Factors Impacting an Organization through Restmcturing 3

community resources, social skills, activities of daily living, money management, recreation,

cOlmnunication, health and wellness and other areas requested. Services are typically paid for

through one of the Home and Community Based waivers including the Developmental

Disabilities (DD), Traumatic Brain Injury (TBI), and Community Alternatives for Disabled

Invididuals (CADI) waviers.

In-Home SUPPOlt is available to children and adults with disabilities. With this service

CCP will bring Direct SUPPOlt Professionals into your home. CCP recognizes that each fmnily is

unique. CCP will work with every family in hiring staff, setting schedules, and in setting the

focus of our support. CCP will listen, and try to provide the support that every family needs.

At CCP, they believe it's your life, so they will do things your way. They work with the

SUppOlt and the lifestyle each person dreams of achieving. If we don't have housing or support

option that fits your lifestyle, CCP can work with each person to develop a new one.

CCP is located in the midwest, St. Paul Minnesota. CCP is one of the largest social

service agency in Minnesota. CCP company employs approximately 1,256 employees and

serves 825 clients in Minnesota. The company provides a variety of services from group home,

in-home, and in-home apmtment services. CCP has both part and full time employees. Full-time

leadership/management employees participated in this study. The individuals included in this

study were four supervisors, sixteen managers, two program specialist, five administrative

members - HRifinance, two other - not specified. Refer to Appendix A: Organizational Flow

Chmt, pg. 72.

CCP is culturally and economically diverse. The employees include people from a wide

spectmm of cultures, environments and socio-economic groups. Since CCP is a heterogeneous

mix by age, gender, race, income, and state of birth, it can be said that the participants in this

Influential Factors Impacting an Organization tIu'ough Restructuring 4

study are diverse. CCP is in the midst of developing a plan to grow as a company. In the year of

2007, CCP attained 188 new clients. This opportunity for CCP and the employees present

enormous challenges for the whole company. The success or failure ofthis plan will rely on the

implementation of the restructuring process and how employees communicate and make

decisions.

Statement of Problem

CCP has gone tIu'Ollgh several restructures since 1979. In 1979, CCP stmted as a

centralized company. As the compmly grew, CCP decided to decentralize and implemented the

restructure in 1994 where CCP split into foul' sepm'ate companies. All foul' companies ran

independent until 2007. Due to staying in compliance with the state!count y the company

decided to centralize. In 2007, CCP implemented the centralization plan for restructuring. CCP

begml to centralize causing chaos within the system; which created the need for this research

study. This is a case study to determine what influential factors impacts an organization while

going through restructure. When companies go through a restlUcture, this can cause little

stability within a company.

Because people's positions have changed due to restructure, employees are unaware of

which decisions they can make and the role that they play. Many decisions employees may have

been able to make in the past, they no longer can. Upper management including the CEO and

COO has their own thoughts of where the company should be and where it should go. Another

issue is that communication is lacking within the whole structure.

CCP would like to switch the mind set of employees back to the mission statement that

"clients come first." CCP would also like the company's mission statement implemented

throughout the organization. Lack of clarity of the company's vision alId mission statement has


caused chaos. Clarity of CCP's future mission and vision statements will provide stability for

the upcoming years.

Due to the lack of structure, cascading information through the company and not

dispersing information in a timely matter has caused reoccurring issues. Employees need

clarification how to solve this reoccurring problem. Since the new design has been implemented

to CCP, employees do not know what their job role is, what decisions they can make or where

their job role is with CCP future.

To accomplish the daunting goals in CCP and to solve the above stated issues,

leadership/management teams must succinctly identify their goals and objectives, examine old

paradigms and explore new ways of doing business that are effective and efficient. One reason

for that the ability of today's leaders to understand systems is hampered by their inability to

accept the system itself. Not one person or process, is to blame for what goes wrong. This

problem is a quality issue, "A system is a network of interdependent components that work

together to accomplish the aim ofthe system....and without an aim, there is no system" (Dobyns,

p.34).

Purpose and Objectives

The purpose and objectives of this study are to determine if communication, decision

making and role clarification impact a restructuring system; to determine if it is possible to

prepare leadership/management team's effectiveness; and to asce11ain ifthe

leadership/management team could function effectively and efficiently in an industry that is

inherently stressful and often chaotic while going through restructure. To accomplish these

goals, the study measures the leadership/management team's communication, decision making


and role clarification through the restructure and their job effectiveness. The study predicts the

leadership/management team's potential effectiveness for long range plamling and problem

solving by analyzing the team's effectives thmugh this change. More specifically, the purpose

and objectives ofthe restructure:

• To access the CCP leadership/management teams goals for 2008

• Communication and role of various team meetings and who should attend and

make decisions

• Is CCP following the Strategic Plan and who is responsible for making sure goals

are met

• Switching employees mind set back to the Mission and Vision Statement for

CCP.

To accomplish these objectives:

This study will investigate why qommunication, decision making and role clarification

break down when going through a restructure, three influential factors of decision making,

communication and job roles.

The study will examine the following question about CCP restructuring and the

leadership/management team's potential effectiveness to address the short term

communication issues and long term strategic problems. The current strategic problems

include:

• CCP needs a correct Vision Statement: The direction CCP is moving towards.

• CCP needs a correct Mission: How CCP will achieve the Vision.

• Core Values: CCP beliefs that they uphold.


• Corporate Goals: Reflect Mission, and what CCP is going to do to get the

mission achieved.

• Department Goals divided into each department

Rational and Need for the Study

To achieve a successful restructure and retain employees at CCP, CCP needs to make

sure goals are being met and questions the employees have are being answered. But finding and

keeping employees has been a problem for CCP over the years. The SWOT analysis in Chapter

4 showed that the employees have many questions and are uncertain of their future at CCP. The

SWOT identified the three main areas that the restructure at CCP is affecting. Employees need

to know what decisions they can make, what their job is, and what is needed for clear

communication throughout the company at all levels. These factors are a few that need to be set

to make a successful restructure without a chaotic break down of CCP structure.

Research Questions

1. Does communication, decision making and role clarification break down

when going through a restructure?

2. Why is effective communication and leadership important when

restructuring?

3. How does effective communication streamline a restructuring of a

corporation?

And how can they ensure are that they effectively communicating?

4. What is role clarification and how can each role be defined that will

increase job effectiveness?


5. What is the process of decision-making when restructuring?

6. Why is decision making impOliant when restructuring?

Definition of the Terms

Citizen Perfonnance is both conceptual and a measurement overlap of ambiguity in the

literature with respect to the similarities and differences between various forms of citizenship or

extra-role behavior. In a comprehensive overview of the organizational citizenship literature

there are over 30 fonns of citizenship behaviors. The better known terms are organizational

citizenship behaviors, which include altruism, courtesy, peacemaking, cheerleading,

spOlismanship, generalized compliance, conscientiousness and civic virtue (Purvanova,

RadostinaK., Bono, Joyce E., Dzieweczynski 2006).

Decision making can be regarded as an outcome of mental processes (cognitive process)

leading to the selection of a course of action among several alternatives. Every decision making

process produces a final choice. The output can be an action or an opinion.

Human performance in decision making terms has been the subject of active research from

several perspectives. From a psychological perspective, it is necessary to examine individual

decisions in the context of a set of needs, preferences an individual has and values he/she seeks.

From a cognitive perspective, the decision making process must be regarded as a continuous

process integrated in the interaction with the enviro1lll1ent. From a normative perspective, the

analysis of individual decisions is concerned with the logic of decision making and rationality

and the invariant choice it leads to.

Communication is a process that allows organisms to exchange information by several

methods. COlmnunication requires that all parties understand a cOlmnonlanguage that is

Influential Factors Impacting an Organization tln'ough Restructuring 9

exchanged. There are auditory means, such as speaking, singing and sometimes tone of voice,

and nonverbal, physical means, such as body language, sign language, paralanguage, touch, eye

contact, or the use of writing. Communication is defined as a process by which we assign and

convey meaning in an attempt to create shared understanding. This process requires a vast

repertoire of skills in intrapersonal and interpersonal processing, listening, observing, speaking,

questioning, analyzing, and evaluating. Use of these processes is developmental and transfers to

all areas of life: home, school, community, work, and beyond. It is tln'ough communication that

collaboration and cooperation occur. Communication is the articulation of sending a message,

through different media whether it be verbal or nonverbal, so long as a being transmits a thought

provoking idea, gesture, action, etc. Communication happens at many levels (even for one single

action), in many different ways, and for most beings, as well as celtain machines. Several, if not

all, fields of study dedicate a pOltion of attention to communication, so when speaking about

communication it is very impoltant to be sure about what aspects of communication one is

speaking about. Definitions of communication range widely, some recognizing that animals can

communicate with each other as well as human beings, and some are narrower, only including

human beings within the parameters of human symbolic interaction.

Job Design/Role - Ajob is a collection of tasks and responsibilities that an employee is

responsible to conduct. Jobs have titles. A task is a typically defined as a unit ofwork, that is, a

set of activities needed to produce some result. Complex positions in the organization may

include a large number of tasks, which are sometimes referred to as functions. Job descriptions

are lists of the general tasks, or functions, and responsibilities of a position. Typically, they also

include to whom the position repOlts, specifications such as the qualifications needed by the

person in the job, salary range for the position, etc. Job descriptions are usually developed by


conducting a job analysis, which includes examining the tasks and sequences of tasks necessary

to perform the job. The analysis looks at the areas of knowledge and skills needed by the job. A

role is the set of responsibilities or expected results associated with a job. A job usually includes

several roles (Free Management Library).

Assumptions

For the purpose of this study, it is assumed that:

1. The SWOT analysis is an adequate and recognized method to classify and categorize

issues that are influential factors impacting an organization tlu'ough restructuring

2. The Assessment Survey for CCP, developed for this study, is an adequate instrument

to answer questions relevant to this study.

3. The term "leadership/management team" includes executives, senior managers, middle

managers.

Limitations ofthe Study

While it can be argued that CCP, which employs more than 1,000 individuals, is

considered a smaller company than others, its restructuring problems are quite typical of a

restructure within larger companies across the world. Over the last ten years CCP has been

centralized, changed to decentralization and in the process of restructuring back to a centralized

system. But, as this study has previously stated, the current issue is the ongoing preparation

necessary for the success of a restructure. The management team must develop a more

operational plan for communication, decision making and role clarification. The team must also

prepare long tem strategic plans and projections that are both efficient and effective for the

restructure. Since CCP is considered a ~maller company with less then 1,500 employees, there is


no template for success. In fact, at this time, even the most sophisticated smaller companies

cannot always work though all the influential factors they go through during a restructure with

out having difficulty. It is truly a work in process for all concerned, with no precedents to

follow.


CHAPTER 2. LITERATURE REVIEW

Why is effective communication and leadership impOliant when restructuring?

Most leadership "gurus" include good connnunication skills among their lists of

leadership "must-haves." With good reason: According to a recent study of over 300 large U.S.

and Canadian companies by Watson Wyatt, clear communication can lead to greater employee

engagement and connnitment, higher retention and productivity, and--ultimately--better financial

performance. Among other things, the study showed that: Shareholder returns for organizations

with the most effective conununication were more than 57 percent higher during the last five

years than were returns for firms with less effective communication (Wiedenkeller, 2007).

Firms that connnunicate effectively are 4.5 times more likely to report higher levels of

employee engagement versus firms that communicate less effectively. Companies that are highly

effective communicators are 20 percent more likely to repoli lower remover rates than their peers

(Wiedenkeller, 2007).

This is especially important if you're in a senior leadership position in your organization.

A 2005 study of more than 18,000 employees by Towers Perrin found that employees "identify

senior leadership communication as one of the most important elements of communication

effectiveness overall"(Wiedenkeller, 2007).

Implementing a successful communication program:

In this world of constant change, effective conununication is crucial to the success of any

business. One company's leadership team realized they needed to refocus their communications


so the workforce could operate as a unified body. Everyone in the team needed to be aligned to

the mission and vision of the organization, and all decisions would have to support the mission

and vision in order to achieve dramatic improvements and respond effectively to the changing

environment. The leadership team recognized that existing cOlmnunication structures and

practices were no longer adequate and needed to be corrected quickly (Carr, D. Folliard, K.

1999).

As the cOlllillunications team developed a structure to reduce the amount of

communication they clearly identified three primary objectives of organizational

communication:

• Community-building,

• Organizational aligrunent, and

• Operational effectiveness.

Community building: The strength of an organization is based on its ability to build a

sense of cOlllillunity. A well-developed sense of community engenders high morale and will help

attract talented people. COlllillunity-building can increase a group's feeling of well-being, which

in turn will suppOli a more productive environment. For example, information that shows the

growth and strength of an organization can be cOlllillunicated to motivate the organization.

However, as an organization faces the ever-increasing pace of change, it should expect to expend

more effort on this type of communication (Carr, D. Folliard, K. 1999).

Organizational alignment is communication suppOliing the overall aligrunent of an

organization. It clearly articulates the company's strategy and direction, and it provides focus for

the organization's decision-making and managerial suppOli. The values ofthe organization, its

mission, vision, purpose, and objectives should all be communicated to support strong


organizational alignment. Without tins type of communication, teams and individual depatiments

may not have the context within which to make wise decisions supporting the greater good. As a

result, the organization will lack the necessaty synergy and cooperation to achieve corporate

objectives. Push information can be used to outline the strategic direction of a business, and pull

information can be used to extract the status of projects and daily performance measurements.

Pull communications are valuable for aligning and SuppOliing the stated push messages (Carr, D.

Folliard, K. 1999).

Operational effectiveness is communications that support operational efficiency and are

designed to provide critical information for the daily decision-making and management of

business operations. Of the three communication strategies shown above there have been

dramatic increases in the use of Web-based tools and data, and in achievements recognized

throughout the industry. Strengthened communications played an important role in the marked

increases in each of these perfOlmance areas. Without the increased communication and

availability of information, effective decision-making and improvements would not have been

possible.

The communication changes that influenced the teatn quality focus are as follows (Carr,

D. Folliard, K. 1999): A customized quality and productivity performance report was developed

for all depatiment managers, to facilitate effective management of resources and to identify

performance gaps. A quarterly newsletter focused on quality initiatives and improvement

progress for the global team community was established. It provides the status and impact of

major quality improvement projects, and it promotes the sharing of success stories and effective

practices. A complete set of customer-defined product metrics, compliant with team standards,

Influential Factors Impacting an Organization through Resttuctul'ing 15

was placed on the Web each month to show the current state of software and hardware quality

(Carr, D. Folliard, K. 1999).

Transformational Leadership

According to transformational leadership theory, one of the fundamental ways in which

leaders influence followers is by creating meaningful work. Testing this notion, a organization

conducted a field study in which they linked transformational leadership behaviors to employees'

perceptions to their jobs (e.g. significance, meaningfulness, importance of the work), and job

perceptions to employees' citizenship performance as rated by their managers. Results indicate a

positive link between managers' transformational leadership behaviors and followers of citizen

performance. This study is to examine the roles of employee's perceptions of their jobs as link

between transformational leadership and citizenship performance. To explore these issues a field

study was performed in which employee perceptions of their jobs as a mediator between

managers transfonnationalleadership and employees citizenships performance were examined

(Purvanova, RadostinaK., Bono, Joyce E. , Dzieweczynski 2006).

Transformational Leaders are charismatic and inspirational. They intellectually stimulate

followers, and thus promote rationally and problem-solving sldlls. They also provide

individualized consideration to the followers, attending to follower's individual needs for growth

and development (Purvanova, RadostinaK., Bono, Joyce E. , Dzieweczynski 2006).

Transformational leadership occurs when leaders broaden and elevate the interest ofemployees, when they generate awareness and acceptance ofthe purpose and mission ofthe group, and when they stir their employees to look beyond their own self-interests forthe good of the group. (Bass, 1990, p.21)


Bass (1990) stated that transformational leadership should result in more engages, more devoted,

and less self-concerned employees, as well as in workers who perform beyond the level of

expectations.

The literature on consequences of organizational citizenship performance shows

consistently that citizenship translates into important organizational outcomes (Purvanova,

RadostinaK., Bono, Joyce E., Dzieweczynski, 2006). Studying the antecedents of citizenships

performance can be placed into four broad categories-individual characteristics, such as attitudes

and dispositions; organizational characteristics, such as formal versus informal organizational

stlUctures; task characteristics, such as intrinsically satisfying tasks, nomoutine tasks, and tasks

that provide feedback; and leadership behaviors, such as transactional and transformational

leadership. The focus is on employee's persecutions of the jobs (e.g., task characteristics) and

leadership behaviors as direct and indirect antecedents of citizen performance. Specifically,

tested the notion that transfOlmationalleadership is linked to followers citizenship performance

because leaders affect followers perceptions of there jobs (Purvanova, Radostina K., Bono, Joyce

E., Dzieweczynski, 2006).

Managers and employees were participants in this study from two large organizations that

took part in a leadership development program. Means, standard deviations, and correlations

among the study variables were presented and citizenship performance was significantly related

to transformational leadership, though this association was not large (1'=.15, p<.OI). The

association between perceptions of job characteristics and citizens performance was also

significant (1'=.18, p<.OI). In addition, there was a significant link: (1'=.32, p<.OI) between

transformational leadership and perceptions ofjob characteristics. Furthermore, in support of the

central hypothesis of this research, a positive link between transfOlmationalleadership and

Influential Factors Impacting an Organization tlu'ough Restructuring 17

employees perceptions of their jobs. Employees who report to managers who engage in

transformational leadership behaviors related to their jobs as more challenging, meaningful, and

significant. Theoretically, the results make an impoliant contribution to transformational

leadership theory that transformational leaders inspire followers to see their jobs as impOliant,

significant and rewarding (Purvanova, RadostinaK., Bono, Joyce E., Dzieweczynski, 2006).

Organizational Centrality

According to Schein's (1981) conceptual scheme for integrating individual and

organizational aspects to an employee career, he states there are three different kinds of

movement available to individual employees: They can move upward or downward in the

organizational hierarchy (vertical movement), they can move circumferentially at the same

organization, usually from one department to another (functional movement); or they can move

towards or away from the centre of the organization; where influence, Imowledge and

organizational decision making are concentrated (radical movement). The study below, aims to

examine the effects of radical movement on the career success and satisfaction of employees

(Orpen, Clu'istopher, 1998).

The multiple c011'elations between the two centrality measures and the three outcomes

was .32, suggesting that about 16 percent of the variation of employees salary success can be

accounted for by differences in organizational centrality on the part of the employees. These

results suggest that, how well these employees do in their careers is positively related to their

careers in positively related to the centrality in the organization. The results are consistent with

the notion that employees can improve their chances of career success and satisfaction if they

move radically to where there is a concentration of organizational influence, judgment, and

Influential Factors Impacting an Organization through RestlUcturing 18

information at their level. There is not only an attitudinal, but also career advantages, for

employees in being 'on the inside' on their organization (Orpen, Christopher, 1998).

TheoryXY

Many believe Macgregor's approach to organization theory and management as being

quite different from other more traditional approaches. His Theory Y which experts contrast

sharply with Theory X, the conventional, hierarchical model of authority, has served as a

milestone for scholars and practitioners alike.

In securing the cooperation ofthe employee, the system of control in TheOlY Y has

potential for being more effective that the one in Theory X because the coercive power generated

in Theory X can bring about results but the results are limited to the carrying out of specific

orders. In the hierarchical control stlUcture pattern of Theory X, the employee responds to

specific directives but the response neednot be accompanied by a particular attitude or

commitment towards organizational goals. The employee's acceptance of a directive

necessitates no conviction or belief that the resulting behavior is desirable in and of itself. In

other words, the control pattern in Theory X is designed to reach the employee's behavior not

there attitudes or beliefs. Hierarchical control can bring about influence but, since the influence

is directed at the employee's behavior - not necessary his/her attitudes-, it will persist only as

long as the manager and his/her sanctions are in operation (Meeker, 1982).

The control pattern of Y, on the other hand, can bring about results even in the absence of

the manager and his/her sanctions because it is designed to reach the employee's attitude as well

as there behavior. Individual needs are satisfied in order to change the attitude or commitment

for the employee towards the organizations goals. Influence exerted through tins process will

persist whether or not the one exelting that influence is presented. Ultimately the manager has at


their disposal the potential for self-control, or voluntary compliance on the pmt of the employee,

because the person who is committed to the organizational goals can be relied upon exercise

his/her discretion in a way that faithfully represents the objectives of the organization. For the

most part, specific directives and sanctions become superfluous (Meeker, 1982).

McGregor was quite right when he said: "So long as the assumptions of Theory X

continue to influence managerial strategy, we fail to discover, let alone utilize, the potentialities

of the average human being" (McGregor, 1960, p. 43). McGregor changed those assumptions

and herein lays his unique and significant contribution. However, the problem is not just the

theoretical one. If McGregor is to be expanded and build upon interest of humanistic and

democratic principles, then the procedures which implement his theory must preserve the

autonomy of the individual as well as accomplish the goals of organization. Otherwise, we can

hope for nothing more than realization of the old adage, the more things change, the more they

remain the same (Meeker, 1982, p. 508)

McGregor stated many years ago when workers fail to exhibit behavior consistent with

Theory Y assumptions at their place of work, it is likely that past management practices,

organizational traditions, and control systems have conditioned them to seek involvement

elsewhere, possibly in their peer groups, possibly in their family or leisure time. But this does

not constitute evidence for anything other then the fact that management has been unwilling to

pay the price necessmy to unlock worker motivation or has found it U1mecessary to do so because

they could obtain adequate levels of productivity and quality without high levels of workers

commitment.


How does effective communication streamline a restructuring of a corporation? And how can

we ensure that we're effectively cOlmnunicating?

Rule I: When possible, communicate face-to-face. Humans are "hard-wired" to engage in

two-way conununication, only 23 percent of people pay attention when listening to audio

meetings, while 55 percent pay full attention in face-to-face meetings. In addition, respondents

said that, in their view, face-to-face communication: Builds high trust (90 percent); is more

personal (87 percent); reduces confusion and misunderstanding (81 percent); is easier to

understand (76 percent) (Wiedenkeller, 2007). Various other studies back this up, estimating

that as much as 90 percent of all conummication is actually non-verbal. Speaking face-to-face

with someone allows you to overlay tone of voice, gestures, fatal expressions, movement,

volume and word inflection on top of the actual verbal message.

Most importantly, face-to-face communication allows you to gauge how your message is

being received, allowing you to adjust accordingly. You can only benefit from that confused, "1

don't-have-a-c1ue-what-you're-talking-about" look if you're communicating face-to-face

(Wiedenkeller, 2007).

Rule 2: Use e-mail sparingly and carefully. In this age ofPDAs, text messaging and

instant communication, our use of e-mail has become so prevalent as to crowd out other forms of

communication. It's so easy and fast. It provides immediacy, creates a formal record (for better or

worse), and enhances efficiencies by allowing us to make otherwise illlproductive time

productive. Additionally, because of their ilmnediacy--and the limitations of the handheld tools

often used to deliver them--e-mails and text messages tend to be less well-thought-out than other

forms of written communication...not to mention just plain poorly written. Right or wrong,


people tend to form judgments about the overall character or intelligence of senders of poorly

written messages, judgments which mayor may not have any basis in reality.

Consequently, extra care needs to be taken to ensure that the recipient of an e-mail or text

message is getting the same message the sender intends. For instance, simply sending or replying

to an email without any salutation ("Dear Diane" or just "Diane")--and instead launching right

into your message--may seem rude or ablUpt to some readers (often determined by the generation

of the reader). Overuse of hold text, or llilderlining, or ALLCAPS may convey "yelling" when

the sender only intended an added emphasis (Wiedenkeller, 2007).

Rule 3: We communicate through our actions. One ofthe hardest lessons any leader

1eams is that everything we do sends a message. Being habitually late to meetings says, "I don't

care about your time"--as well as "It's not impoliant for any of us to be on time." Checking your

watch several times during the course of that meeting says, "I can't wait for this to be over." A

manager who asks an employee how their weekend went is sending a message that they care

about the employee as a person. Biggeractions also send a message. An employer that offers

tuition reimbursement is saying, "We care about your personal development." One that promotes

from within may be saying, "We value our existing employees," while one that prefers bringing

in outside talent may be saying, "We value new perspectives" (Wiedenkeller, 2007).

At the end of the day, our actions really do speak louder than our words, so we need to

ensure that, from the smallest to the biggest, they are consistent with the messages we want to

send (Wiedenkeller, 2007).

Rule 4: Two ears, one mouth. Wiedenkeller states his grandfather always said there was

a reason God gave us two ears and one mouth: We're only supposed to talk half as much as we

listen. People that find yourself in conversations when you're not doing this, then you may not be


effectively communicating. Whether it's actively listening for feedback, or just "sharing the

stage," good listening is essential to good conununication. And good listening entails more than

just "waiting for your turn to talk." It means actively engaging your mind in what the other

person is saying, thinking about it, processing it and responding to it. Some of the best

communicators are those that listen in such a way that they make people feel like they are really

interested in what others have to say (Wiedenkeller, 2007).

At the end of the day, good communication and good leadership are really inseparable.

After all, if a tree falls in the forest and no one hears it (Wiedenkeller, 2007).

Organizational Transformation

Research has shown that management teams are more able and willing to change the

strategic orientation of a firm in a turbulent enviromnent when those teams are more

heterogeneous. Heterogeneity refers to different educational background, age, industry

experience, tenure, etc. of the top management team members (Lant et aI., 1992; Wiersema and

Bantel, 1992). Different experiences and backgrounds help the firm to unlearn previous

behaviors no longer functional and attempt different approaches to facilitate the finn's adaptation

to new conditions. Managers with longer tenure in the firm and who know its culture are better

able to understand and preserve traditional film strengths. New practices have to build on

existing value systems, preserving selectively the most valuable parts. However, experimentation

is necessmy to discover new best practices for transition economies (Spicer, McDermott &

Kogutr, 2000). New managers with a background different from current management can

introduce new approaches, recognize different relationships between the firm and its

enviromnent, and are more likely to be open to change (Uhlenbruck, Klaus, Meyer, Klaus E.,

Hitt, Michael, 2003).


Based on their conclusion current management theory, we provide more specific

recommendations on how managers ofprivatized firms may better manage their resources. In

particular, firms may improve their learning ability by actively searching for information in

product and factor markets rather then relying on questionable information provided by

traditional networks (Spicer, McDermott & Kogutr, 2000). Also, firms need to adapt

organizational structure and processes to allow for more efficient information processing. Such

changes should help films to identify mmket opportunities and resources needed to exploit those

opportunities. Nevertheless, these firms have built resource stocks in tangible assets, lmow how

and organizational processes. But, there may be potential for further development of these

resources (Spicer, McDelIDott & KogutI', 2000). Managers need to invest significant effort to

integrate resources to achieve the internal consistency and strategic flexibility necessary to take

advantage of recognized opportunities. The proposed model provides the opportunity for

empirical research to identify the generality of important theories under extraordinary conditions.

Centralization/Decentralization

There are a variety of subtle differences in the definitions and operationalization of

centralization in the empirical literature (Carter & Cullen, 1984) aspects of centralization that

represent the concentration or dispersion of formal decision-making power along the vertical

dimension ofthe organizational hierarchy. Mintzberg (1979) labeled this aspect of centralization

the vertical component and Carter and Cullen called it the simple hierarchical approach. Thus,

decentralization occurs when greater numbers and types of decisions are delegated to

progressively lower levels in the organization hierarchy.

Centralization is generally conceptualized as a continuum ranging from situations with

most decision-making authority concentrated at the upper organizational levels to situations with


decision-making authority concentrated at lower organizational levels (Mintzberg, 1979).

However, changes in centralization or decentralization are not necessarily confined to

evolutionary increments. Radical shifts can occur when decision-making authority shifts across

several levels in the organization hierarchy, when significant numbers of decisions are

concentrated at a new organization level, and when new areas of decision-making (e.g., strategic,

financial) are dispersed or concentrated suddenly to a different organization level. Evidence

suggests that these radical shifts are possible since centralization is not consistent across types of

decisions (Grinyer & Yasai-Ardekani, 1980) and qualitatively different configurations of

decision-making can exist (Cullen & Perrewe, 1981). Thus, it seems that centralization or

decentralization can have evolutionary or revolutionary changes.

Chandler's (1962) historical analysis revealed several consistent trends within

organizations. Many of the firms he examined began with a single product and a centralized,

functional stlUcture. Successful firms often expanded through the addition of new products.

However, over time, the centralized organizational structures became inefficient and crises of

performance resulted. To resolve these crises, successful firms tended to reorganize into

multidivisional structures and decentralize operational decision-making authority to the division

level. Such decentralization allows the organization to become more efficient because top

administrators have fewer tasks and can concentrate on strategic issues (Williamson, 1975).

More than Blau's, Chandler's work showed that this top level decentralization was a

revolutionary or abrupt act in response to performance pressures. Recent empirical evidence also

suggests that organizations that used quantum or revolutionary change to reorganize into the

multidivisional form had higher performance levels than organizations that used an incremental

approach (Hoskisson & Galbraith, 1985).


What is role clarification and how can you define each role that will increase job effectiveness?

Role theory predicts that dislUptions in role-making escalate to increasing intensities of

disruption unless informal renegotiation ofrole expectations between the incumbent and his or

her role senders takes place (Schaubroeck, Ganster, Sime, Ditman, 1993). Informal role

negotiation is an emergent process within dyads involving (a) the clarification of expectations,

(b) the cOlmnunication of product-outcome contingencies, (c) the establishment of priorities

among expectations, (d) the alteration of sent roles, such as by removing one or more products in

conflict. Unfortunately, this negotiation process usually tapers off following the entry phase of

socialization to a new position and interpersonal processes return to a steady state in which

disruptions are disregarded. The steady role state is not adaptive to the current situation. When

this occurs, increase role ambiguity and role conflict is inevitable without intervening to

reinitiate the role modification process (Schaubroeck, Ganster, Sime, Ditman, 1993).

Profiling New Business Development

Janovics and Christiansen preformed a study to examine the differences in personality

characteristics between New Business Development analyses in roles at different stages of the

NBD process. They hypothesized that role contributions offront-end Idealors and later-stage

implementers were related to different personality traits profiles. Idealors are involved in

gathering new ideas and focusing in abstract possibilities, whereas Implementors need to follow

established rules and deal with practical realities. The most consistent results across the criteria

were that successful Ideates have elevations on Innovations and low elevations on

Methodicalness, whereas the profile of successful Implementors was just the opposite, being

associated with low elevation of Innovation and high elevation on Methodicalness. Although

Influential Factors Impacting an Organization tluough Restructuring 26

scores on Efficacy and Independence tended to be in the anticipated directions, results for these

traits were less consistent (Janovics, J. and Christiansen, N. 2003).

The study found a stronger relationship between personality and role performance when

time spent in a particular role was considered (i.e. the role proficiency scores). There are two

possible explanations for this result. One reason may be that people seek out activities for which

their personal characteristics are beneficial to success. In other words, they may prefer to spend

more time in roles for which they are well suited. The explanation is supported by findings from

occupational choice, vocational interest, and self-efficacy literatures (e.g. Donney & Brogan,

1999). Tins suggests that the role contribution ratings are more sufficient and interest, another

possibility because they represent a composite of proficiency and interest. Another possibility is

that the reliability of supervisor's ratings is higher when appraising activities in which more time

is spent because they have more oppOitunity to review behavior and outcomes related to

performance. Role contribution ratings are thus more predictable because greater weight is given

to more reliable observations (Janovics, J. and Christiansen, N. 2003).

Blake-Mouton Managerial Grid

A learning grid that is designed so that you can 'look into it and see yourself,' as though

in a minor. Yet, unlike the mirror, it gives you a penetrating look inside yourself. Using it you

can study yourself as you really are-underneath the skin, behind the eyes, so to speak. For you,

there is an instrument which highlights how you can move from separateness toward mutuality

with your consumer in a selling-purchase transaction (Blake & Mouton, 1971).

Learning instruments give people a way of examining their behavior within a systematic

framework of theory which can be directly translated into practice. Within this framework of

theory which can be directly translated into practice. Within this fi'amework you become better

Influential Factors Impacting an Organization through Restructnring 27

able to see what your habitual assumptions, attitudes and actions in selling are. When you can

see what is causing you to lose sales, you are in a position to change what you are doing, so as to

get rid of weaknesses and replace them with real strengths. When you can pinpoint what your

strong features are, you have an opportunity to build on them and increase your effectiveness in

this way. With learning instrumental rooted in theory, you have a basis for comparison you wish

to make (Blake & Mouton, 1971).

Meyers Briggs

Katharine Briggs and Isabel Meyers developed Meyers-Briggs type indicator (MBTI).

They based the indicator on the work of Jung who studied behavior for many years (Hirsh &

Kimmerow, 1990). Other MBTI instruments have been developed, including the Kersey sorter,

and the Jung typology test (JTT), which have been designed to determine an individual's

personality type, as defined by the works of Meyer's and Briggs. The MBTI is commonly used

in organizations around the world to help better understand their personality type. Furthermore,

the MBTI is a tool that helps in organizations by assisting in career choice and professional

development, and understanding and adapting to differences in management style (Hirsh &

Kimmerow, 1990). There are eight basic preferences that are used to describe a personality type,

which includes: Extraversion(E), Introversion(I), Sensing(S), Intuition(N), Thinking(T),

Feeling(F), Judgment(J), Perception(P) these eight basic preferences to define 16 personality

types (Gehring, D., 2007).

What is the process of decision-making when restructuring?

Decision Making is central to teamwork (Glaser, 1996) but also serves as a useful lens for

examining the conununication process itself. Regardless of communication medium, or whether

the decision is an individual or team decision the decision-making process follows a relatively


predictable and rational format (Nutt, 1998). Initial framing and problem definition provide

focus for the rest ofthe decision-making process, so problem definition needs to be clear and

accurate before decision maker's move on subsequent stages. Prioritizing Goals is common

prior to identifying alternative decision choices. Goal prioritization is often problematic because

goal identification and evaluation can change as additional data are found or as the perspectives

ofnew or different stakeholders are considered. The maximization of expected utility usually

overshadows all the other decision-making criteria; however this maximization is defined,

although common evaluation criteria include measurable costs, timeliness, and the acceptability

of the decision to significant stakeholders (Beach & Mitchell, 1996).

The rightness of a decision and the effectiveness of eventual implementation are

significantly affected by the communication process used between the organizational

stakeholders most affected by the decision (Schneider & Shanteau, 2003). Although final

decisions can be only as good as the best alternatives considered, critical data may not be

available to decision makers in a timely manner, or information from significant stakeholders

may be ignored, and so viability may be missed altogether. Involvement may be the most

impOliant form of pmiicipation in decision making (Hartley, 1997), and communication process

chosen affects involvement (Berry, 2006).

Team

Teams are often forming the basic unit of an organizational decision making because they

are believed to lead better corporate performance in terms of increased effective (Coopman,

2001). Team decisions are often perceived to have superior quality compared to individual

decisions because teams are able to process greater amounts of information, have collective

knowledge and expertise not always available to individuals, and have strength and synergy from


a collection of diverse talents. Because of the broader knowledge and expertise, teams are able

to define problems more accurately and generate and examine a greater number of alternatives.

Teams sometimes have stronger influence over their collective enviroillilent that individuals, and

this greater influence often enables easier implementations. Numerous disciplines or functional

areas may be involved on any given organizational decision-making team, pattly because of the

interdependence ofthese areas (Sullivan, 1998) but also to enhance the ease of implementation.

Teams sometimes create synergistic effects that result in superior decision maldng as members

correct and amplify one another's individual; satisfaction and productivity because of

involvement and listening affects (Coopman, 2001).

The disadvantage of team decision-making follows from the difficulties common to

group process, including social pressures to confirm and minority domination. Given the time

constraints found in most organizations, the maj or drawback of team process may be the amount

oftime required for team members to meet and work together. For example, face-to-face

meetings often run out of time for the examination of all alternatives, and many good ideas go

unheard simply because adequate time to explore all options is unavailable. Team members may

not have time to reach consensus, especially if goals or objectives new are ambiguous or

conflicting (Schmitt & Klein, 1998), negation an expected benefit ofteam decision making.

Typically, the larger face-to-face team, the larger these process issues loom (Berty, 2006).

Effict a/Time Pressure

Making quality decisions and then achieving the competent implementation of these

decisions are basic requirements for effective organizational performance, yet these requirements

are often overwhelmed by time-starved reality of organizational life (Amason & Schweiger,

1994). Time is required to identify issues, to identify and evaluate alternatives, to reach


consensus and garner support, to properly implement the decisions, and to evaluate the

implementation processes and the outcomes of the decisions. Team members need time to share

ideas and critical information, and team members also need time to facilitate commitment to the

decisions and to the team itself. Decision makers who are under pressure typically compensate

decisions strategies (Chu & Spries, 200 I).

Research in management literature over two decades has consistently suggested that time

pressure reduce decision-making and communication effectiveness (Ben-Zur & Breznitz, 1981).

Briefly, the effects of time pressures are as follows (Zakay, 1993):

• Information search and processing are reduced.

• The importance of negative information is increased

• Important information is denied, discounted, or forgotten.

• The positive attributes of chosen alternatives are inflated.

• Information continues only until time is used up.

• Non-compenensatory choice strategies become common.

• Incorrect judgment and evaluation become more likely.

Decision making under time pressure many result in suboptimal decisions, mostly

because it reduces accuracy and quality in the communication process itself. Time pressure can

also lead to personal stress and exhaustion or loss of vigilance on the part of decision makers,

again diminishing effectiveness and communication quality. Having sufficient time is critical for

effective communication and decision making; least time is increasingly in shalt supply in many

organizational environments.

Three major consequences oftime pressure seem apparent. First, time pressure create

problems in sharing information between members and in achieving team consensus regarding


understandings of what the problems actually are. Solving the wrong problem, or solving only

symptom of a problem, is often equivalent to doing nothing at all, while still the need for

expending time and energy (Mohammed & Ringseis, 2001). The need for quick and efficient

communication allows less time for conflict resolution, a possibility for any team, and also

diminishes the team's ability to reach consensus on the best decision or implementation strategy

(Dooley, Fryxell, & Judge, 2000).

Second, the need for speed often results in team members less thoroughly examining

alternatives, assuming that the most beneficial alternatives have been identified in initial

discussions. Because teams often require the participation of members from diverse functional

backgrounds and organizational levels, individual team members often enter a team with a

somewhat different assumption and interpretations or preferred communications styles

(Mohammed & Ringseis, 2001), and this can slow a teams ability to reach consensus. Effective

communication and decision making evolve in part from thoughtful analyses and a thorough

understanding of the perspectives of others, yet a lack of time constrains these possibilities

(Berry, 2006).

Third, time pressure results in added difficulty in achieving organizational acceptance of

team decisions. Organizational members need to understand why organizational problems are

problems in the first place and why certain alte1'l1atives are considered and others are not.

Organizational members need to understand why certain decisions are made the way they are and

how these decisions may specifically affect them or their cohort. If time is not available for

organization-wide communication or consensus building, then implementation problems are

more likely regardless ofthe decision made.


Ethical Decision-Making Process

This decision-making process is based upon the traditional rational decision-making

process (Drucker 1967, Nutt 1984). The rational decision making process generally incorporates

five stages which include problem definition, creating alternatives, selection of the best decision

based upon a cost-benefit ratio, the implementation, and evaluation ofthe decision. From the

perspective of moral decision-making, contends the process includes four stages - recognition of

a dilemma, judgment, intention, and behavior. While the rational decision-making process is

detailed, it does not provide the decision-maker with ovelt prescription to consider the resolution

from an ethical/moral perspective. It's wealmess, however, is that it lacks comprehensiveness

(Agarwal & Malloy, 2000).

Why is decision making important when restructuring?

Effective Communication is critical to most organizational processes, including team

collaboration and decision making. Face-to-face communication is commonly assumed to be

superior to all other forms of communication, yet face-to-face communication does not cope well

with organizational constraints such as time pressure or the geographic distribution of each team

members (Berry, 2006). Decision making, team process, and communication effectiveness are

influenced by various organizational characteristics, including organizational structure, culture,

information technology systems, and leadership style (Chu & Spries, 2001).

Organizational Restructuring and middle management

As managers seek to create greater organizational flexibility in response to environmental

turbulence, organizations are moving away from hierarchical structures to more modular forms

(Schiling & Steensma, 2001). Responsibility, power, and resources are decentralized to semi-


independent unit based around a set of core activities and coordinated through contractual and

mutually beneficial relationships (Child & McGrath, 2001; p. 1137). Organizations in many

industries are increasing geographically distributed. Both these trends elevate the roles of

managers reducing interaction between these two groups, although such interaction is important

for creating alignment in organizations. This obserservation raises the issue of how middle

managers resolve the cognitive disorder created for them by organizational restructuring to

develop the new structures designed by their seniors (Bakogun & Johnson, 2004).

We believe that middle management role as change agents will continue to increase in

importance as organizations become increasingly complex and geographically distributed, even

when senior management has already laid down a strategic direction. Current trends in

organizational forms make it essential to extend current research on the strategic impOliance of

middle managers (Floyd & Woodridge, 1997; Buy, 2000) towards a better understanding how

"middles influence organizational transition. Researchers need to understand how middle

managers interpret change, and how their schemata or interpretive frameworks, develop and

change.

The study examined middle manager role in process of change, as opposed to the more

commonly researched senior manager role in change. The study was on middle management

"sensemaking" during a top-down change initiative in which senior managers outlined a new

sttUcture that replaces a traditional integrated hierarchy with a more modular and decentralized

organization of semiautonomous business units. The seniors then left it to middle managers who

were primary individuals based outside the head office, to develop the operational details of this

structure. The middle managers were thus recipients of change as much as its implementers.


They had to make the new structure work but had little involvement in the up-front change

design or decision making (Balogun & Johnson, 2004).

Findings show that is crucial to understand change recipients' reactions to change and the

way they shape change in the absence of senior management. The role of middle managers

during planned radical change is typically deemphasized in comparison to that of senior

executives (Huy, 2000). Researchers found that especially geographically disorder

organizations, senior managers became "ghosts" in the sensemaking of middle managers, rather

being active directors of change. Senior managers acted more as agents of "indirect infection"

(Ford, 1996) influencing organizational meanings (Donnellon, Gray & Bougon, 1996) through

the presences of their actions and the words in stories, rumors, and gossip shared by others.

Particularly in decentralized organizations, it is the actions, behaviors, gestures, and language of

peers, and their shared experiences, that have a more direct impact on middle manager schema

development and change outcomes. The focus to date is on vertical interactions between senior

managers and others have obscured the importance of horizontal interactions within

organizations (Balogun & Jolmson, 2004).

Balanced Scorecard

When effectively used, a balanced scorecard serves as a component of a measurement

based strategic management and learning system that furthers the organization's ability to

achieve its strategic objectives (Bloomquest & Yeager, 2008). The concept of balances

scorecard is a balanced organization - that is an organization with a set of strategic priorities that

go beyond a single set of indicators such as financial performance. Your company should ask

some impOliant questions before you begin balancing your organization's vision, such as: Where

is the organization today and where does it want to be in the future? As we work towards oUl'


goal, how do we want to get there? Are we getting there? Answering those questions, a balanced

scorecard can be a compass along a journey to achieving your strategic plan.

Achieving the ultimate balanced scorecard does not happen overnight. To help ensure

the process goes smoothly consider the following lessons:

• Be flexible: Not every measure will be correct the first time. Developing and

implementing a balance scorecard is an evolutionary process.

• Be consistent: Create good documentation for each measure.

• Be clear: Obtain leadership buy-in and understanding.

• Be open: Frequent communication on multiples levels is key.

• Be thorough: Use your existing infrastructure, do not create something new.

• Be efficient: Ensure individual goal setting is not to cumbersome.

• Be inclusive: Involve multiple departments even at the ealiest stages.

• Be systematic: Continuaously improve the process.

Developing a balanced scorecard as an organizational driver can be a arduous task.

However if conducted correctly implementing the balance scorecard system is a way to get

aligned with your organizations strategic plan (Bloomquest & Yeager, 2008).

Summary of Literature Review

In this study, the researcher researched the question how do communication, decision

making and role clarification impact an organization going through a restructure. The results

show that an overall impact on communication, decision-making and role clarification with a

multitude of factors not just organizational restructuring.


Limitations to the current study include the fact that not one study was found that

correlates restructuring with communication, decision-making or role clarification. Like much

ofthe organizational change literature we draw in this article, tins research examined patterns of

change in many different organizations and communication, decision-making or role clarification

used in may different studies. Although we have only focused on a few influential factors

impacting an organization through change, further research will need to follow.

These issues suggest scholars need to know a lot more about the effects on restructuring.

This research enabled the researcher to offer some tentative propositions about how

organizations can smoothly go through the restructuring process. To make further progress,

researchers need to develop a greater understanding of how specific aspects of counnunication,

decision making and role clarification effect the restructure of a corporation. Yet this research

examined other areas of influence factors, it is through communication that the new

understandings and ways of working develop. These processes throughout the paper are crucial

for leaders to study and understand while going through a restructure.


CHAPTER 3. METHODOLOGY

Chapter 3 presents the methods and procedures used in the study. The chapter has been

divided into two sections: Descriptions of Subjects and Descriptions of the Research

Instruments.

Descriptions of the Subjects

A total ofthirty leadership/management team members patiicipated in the study by

completing a survey. All participants are CCP employees in a leadership role. Information on

their job duties is based on the published CCP job descriptions. The team members in the

research population hold positions in the following job categories.

. (I.) Four supervisors, who are called Operation Directors. An OD job description is as follows:

The primary purpose of an OD is to direct the overall planning, quality control, regulatory

compliance, budget management, and general oversight of assigned entity in accordance with

the organization's policies and procedures, CU11'ent applicable federal, state and local standards,

guidelines, regulations and as directed by the Executive Director (ED). In this position, they are

assigned the authority, responsibility and sole accountability to carry out their duties during

normal and unusual operating conditions. This position reports to the Executive Director.

Duties Include:

• Maintain ongoing cOlmnunication with staff and the administration of CCP Inc.

• Be available to all staff to assist them with problems 01' questions; provide mediation and

support when needed.

• Supervise and meet with Program Specialists at least weekly. Meet with Connnunity

Services Directors in the absence of a Program Specialist at least weekly.


• Provide direct care services to clients and work on-site shifts as needed.

• Assist in decisions on and patiicipate actively in staff discipline and tennination.

• Oversee staff training ensuring that sufficient training oppOliunities are provided, and that

regular patiicipation is maintained for adequate job performance. Maintain training

verifications so as to always be in compliance with the rules and regulations that govern

CCP Inc.'s licensees).

• Apply knowledge of company grievance and harassment policies and demonstrate the

ability to seek out Human Resources (01' appropriate counsel) when necessat·y.

• Maintain confidentiality of personnel information pel' company policy.

• Identify staff appreciation avenues and implement systems to recognize and celebrate

staff achievement.

• Be knowledgeable about and comply with CCP Inc.'s Affirmative Action Plan.

• RepOli all staff injury sustained on the job.

• Adhere to company policies as outlined in the Employee Handbook.

(2.) Sixteen managers, who are also called house managers 01' mentors. The major function of

the house manager is to suppOli and assist individuals with disabilities to manage and coordinate

their Direct Support Professional staff and other resources in the creation of a satisfying lifestyle.

They are required to demonstrate knowledge of person centered approaches and thinking. They

supervise, schedule, and train Direct Support Professionals. They also collaborate with

Interdisciplinary Team (IDT) members, develop, record, and monitor progress and health of

individuals receiving services. They are required to have experience with the implementation of

Consolidated Standat'ds (245B) and Rule 203.

•

•


(3). Two Program Specialist which job responsibilities are as follows: The primary purpose is to

direct the overall program paperwork compliance in an assigned caseload in accordance with the

organization's policies and procedures and all current federal, state and local standards,

guidelines and regulations as directed by the Program Director (PD), Operations Director(OD),

and/or the Administrator. In the position, they are assigned the authority, responsibility and sole

accountability to carry out your duties during normal and unusual operating conditions. This

position reports to the Program Director (PD) 01' the OD. They are responsible to:

• Manage authorized initiation, scheduling and delivery of all contracted services (SLS,

Foster Care, In-Home, and temporary respite services) according to the standards and

Consolidated Rules 245B, Adult Foster Care 203, Human Services Licensing Act,

Rule 40, Child Foster Care 1, Maltreatment of Vulnerable Adults and Maltreatment of

Minors, Community Services Policies and Procedures and to the satisfaction of the

County Case Manager, Guardians, and the Interdisciplinary Team (IDT) Members.

• Maintain and perform periodic audits of consumers' case files in order to ensure

accurate documentation of program related delivery of services.

Maintain recordkeeping systems and recommend and execute correction plans

resulting from citations.

Analyze incident reports including accident repmis, repmis on the emergency use of

controlled procedures for preventative actions, medication enol'S, vulnerable adult

and minor reports, identifYing patterns of identifying and coordinating

implementation of any corrective action needed.

• Provide the PD 01' the OD with feedback on the success and appropriateness of

programs being implemented; document this in client program logs when direct


services is provided and get clarification from the PD or the OD on program

implementation when needed.

• Obtain a working knowledge of client history, skills, and areas of vulnerability,

habilitation plans, and emergency procedures.

• Advocate for clients' needs and encourage and provide opportunities for client

choice, presenting creative options as needed.

(4). Five Administrative Members

Administrative Positions provide a full range of technical and administrative support associated

with the office, budget, and work force management aspects of providing support services to

people with disabilities.

Administrative positions available may include:

• Human Resources Assistant

• Human Resource Manager

• Maintenance Person

• Bookkeeper

• Clerical Staff

• Office Assistant

• Accountant

(5). Two Other - Not Specified

Description of Research Instruments

There were 3 primary instruments used in this study to collect data, the SWOT analysis,

an assessment survey and interviews.


SWOT Analysis

A SWOT analysis is a powerful technique for understanding Strengths and Weaknesses,

and for looking at the Opportunities and Threats. Used in a business context, it helps carve a

sustainable niche in the market. Used in a personal context, it helps you develop a career in a

way that takes best advantage oftalents, abilities and opportunities.

What makes SWOT patiicularly powerful is that, with a little thought, it can help you

uncover opportunities that business are well placed to exploit. And by understanding the

weaknesses of a business, they can manage and eliminate tlueats that would otherwise catch

them unawares. More than this, by looking at a company and their competitors using the SWOT

framework, they can start to craft a strategy that helps them distinguish them from their

competitors, so that they can compete successfully in the market (Nutt, 1984).

To obtain the data collected for the SWOT analysis; questions were asked from all levels

of employees at CCP. Employees were asked the following questions for the SWOT analysis.

Strengths: What do you do well? What unique resources can you draw on? What do

others see as your strengths?

Weaknesses: What could you improve? Where do you have fewer resources then

others? What are others likely to see as weaknesses?

OpPOliunities: What good opportunities are open to you? What trends could you take

advantage of? How can you turn your strengths into opportunities?

Threats: What trends could harm you? What is your competition doing? What do your

weaknesses expose you to?

Each employee was able to voice there own opinion with out bias.

Influential Factors Impacting an Organization tln'ough RestlUcturing 42

Assessment Survey for cCP

The second instlUment used to collect data is a survey that was developed by the project

author. The survey created for CCP focused on two distinct areas. The first focus was on the

Adlerian principles of life tasks of safety, significance and belonging. Safety, significant and

belonging was important to measure if people felt those principles within CCP.

The second set of measurement focused on three separate areas: communication, decision

making and job roles within CCP. In the SWOT analysis these three factors were the number

one concerns for the employees of CCP. The survey was to measure how the employees felt

about the restlUcture that was happening with in CCP.

A 20-statement survey was based on a six-point scale in the following format:

1 = Strongly Disagree2 = Disagree3 = Somewhat Disagree

1. I feel safe working for CCP.

2. I feel support in my work role.

4 = Somewhat Agree5 = Agree6 = Strongly Agree

3. My sense of belonging to this team is strong.

4. I feel like I can make decisions on my own

5. I feel as though there is good communication in CCP

__6. I know my job role within CCP

__7. Usually I do not feel significant in the work I do.

__8. If! have a conflict with anyone in my department, I feel safe to talk to them

face-to-face about it.

9. I am not afraid to disagree with leaders in my department.


10. I enjoy my role with in CCP

11. The decisions I make in my department is a contribution to the success of CCP.

12. I do not know what is expected of me in my job.

13. In my department we readily admit mistakes and cooperate to improve

our work.

14. Communication in my department is clear.

15. I am not able to make a decision I use to be able to make.

16. Communication in the division is direct.

17. My job is significant to the consumers we serve.

18. The working relationship between co-workers is understood.

19. I feel safe working in my team.

20. Perception of "status" interferes with cOlmnunication within this division.

Questions numbered 4,11,13,15 and 18 were set to measure their ability to make

decisions. Questions numbered 5,8,14,16, and 20 were set to measure communication within

CCP. Questions numbered 2,6,9,10 and 12 were set to measure if employees knew their job

Role within CCP. Questions numbered 1,3,7,17, and 19 were set to measure employees sense of

safety significant and belonging. In each category there are three questions that are attempting to

measure how much the respondents agrees with the statements and one question that measures

how much they disagree with the statement. The success criteria for the positive statements will

have an average score of 5.0 or greater, which means the "agree" with the statement. The

success criteria for negative statements will have an average score of 2.0 or less, meaning they

"disagree" with the statement.


Its purposes were: (A) to gather information from the employees of CCP and whether

they feel like they can make decisions with in the company; (B) to gather information from the

employees of CCP about communication with in CCP; (C) to examine if CCP employees know

there job role within the company; (D) if CCP employees feel safety, significant and belonging

within the company.

The research was collected by the author at one mandatory managers meeting in January,

2008.

Interview

The last measurements exercised to test this thesis question were gathered at an

interview, conducted by the author, with the Assistant Director of Operations also known as the

Administrator. The Administrator was asked to identifY and rank the most important problems

throughout the restructure, and more impOliantly for the fnture success of CCP. The

Administrator response was a typed sheet titled "What's ImpOliant in 20087"

• Stability

• Professional Communication

• Nursing Resolved

• Payroll

• Getting people in their correct positions.

Not taking on more than we can chew

Quality Homes

Physical appearance

Healthy Meals - Simon's and Household grocery budget alterations

Employee recognition


Build trust with small things

Schedule of events

Competitive wages

Maldng managers job easier

How to use lead staff/4 day work weeks to remain competitive/creative thinking

Time management tools

E-mail expectations/VM Pagers

Person Centered Plan Philosophy

Financial Updating

House/Client Checkbooks vs. Checkcards

Dispel Financial Mysteries

Inclusion/knowing how budgets are to be spent

How numbers are decided upon

Computer Competency

Online Medication

Online Program tools

The interview was conducted over the period of multiple meetings. The findings were

consistent with the information gathered from the SWOT and survey, with main concerns being

communication, decision making and job design.


CHAPTER 4. DATA COLLECTION AND ANALYSIS

As was stated in Chapter 1, the purpose ofthe study was to examine why communication,

decision making and role clarification break down when going tluough a restructure. If the

restructure is not done correctly it will affect the company and employees. And what are some

tools can be used to implement change to SUppOlt these influential factors. Specifically, this

study focused on CCP leadership/management team. The following are the results of the

statistical analyses of the SWOT Analysis, Interview Data and Assessment Survey for CCP.

Factors Effecting Restructure

SWOT Analysis

After analyzing the data collected from the employees, the SWOT data showed the

strengths, weaknesses, opportunities and threats.

Figure 1: SWOT

StrengthsStrong Team Ethics and knowledgeCaring NatureNew Development - programsWork with difficult consumers, CCP veryflexibleTeclmology advanced-med administrationOut ofthe box thinkingcreative thinkingCreative positions to focus on employeesstrengthsTeam Unity, cohesiveness and loyaltyImproved systems trackingStrong historyInnovative ways to serveSmall company feelImproving Quality of life for individualsWillingness to respond to crisisMain Strengths: Strong Team Ethics and

Wealmesses:Budget

Unstructured systemUnhealthy environment - overstretchingworkloads resulting in exhaustionLack of communication on all levels and HRStaffing issuesToo much change too quicklyNot valuing good employeesNot acknowledging issues on all levelsLosing the ability of Clients come firstUpper management making all the decisionsdespite want from othersLack of resources - nursingResources - management, Q's, Computers,PayNo organizationNo planning ahead


knowledge, Creative positions to focus onemployees strengths

OpportunitiesOpportunities to grow with in companyNew development, innovative group, growingin other areas: Cadi, TBI, Autism, AsbergersTake admits that other companies would nottakeScholarship moniesLeader in Leadership-sizeTechnology -Medication systemAdvanced training - management, personcentered planning, Starr servicesSpecialized in Specific areas - Manager expertin those areas- trainingMain Opportunities: Opportunities to growwith in company, New development

Jump ahead - no follow tluoughManagers rarely hear from OD's -only whenproblem, no praise support or recognitionresulting in high burn outNo upper administrative teamworkTo many layers to get throughVertical strivingCorporate feelLosing individualityNot able to find balanceNo stabilityLack of communication at all levelsIndecisive decision makingDisconnect on all levelsMoney spent frivolouslyShort staffedConfusion of rolesRetracted decisionsBenefitsTo many chiefs - to much time in meetingsCrisis mode for yearsMain weakness: Role Clarification, TaskOrientation, Lack of Meaning in Jobs, BeingMicro Managed

ThreatsBudgetRestructuring of systemsOther companies better benefits - better payState legislatorsMicromanaging systemChaotic systemLack of resourcesUn-happy employeesBreakdown of upper managementSenior level making all the decisionsDisconnect on all levelsPay levelBad staffStructure of trainingCost ofliving increase but little increase fromgovernmentManagement turnover is highOther companies have nicer homes.Main Threats: Senior level making all thedecisions, Micromanaging system, Lack ofresources, Un-happv emoloyees.

11fluential Factors Impacting an Organization tlu'ough Restructuring 48

Summary of SWOT Analysis

Strengths

SWOT analysis data indicates that many CCP employees believe their strengths are that

they have a strong team ethic and knowledge in their jobs. They believe that CCP is creating

new development to expand the company is a strength. It shows CCP is creative in new

positions to focus on employees strengths and also believes team unity, cohesiveness and loyalty

to CCP are the main factors effecting decision making, communications and job design.

Weaknesses

Due to the unstable system, there are many factors that are contributing to the weaknesses

of influential factors affecting CCP including a unstructured system. Due to the restmcture the

SWOT discovered the employees feel CCP has an unhealthy environment. Communication is

lacking on all levels and management is not valuing good employees. It revealed that upper

management is making all decisions with little input from others. Other concerns the SWOT

uncovered was no organization, no planning ahead, managers rmely hear from upper

management unless an issue arises. There is no upper administrative teamwork, employees have

to get through many layers to get answers, CCP is vertical striving, employees are unable to find

balance, and stability within the company. The researcher has summed up the weaknesses to

role clarification, task orientation, lack of meaning injobs, being micro managed are the

influential factors that are affecting decision making, cOl1ullunication and job role.

Opportunities

As you can see from the SWOT grid, CCP employees saw two main opportunities for the

company and themselves. Employees feel they are able to grow with in company and feel that

the new development with CCP is a positive opportunity.


Threats

The threats main factors of impact are that senior level are making all the decisions

causing restlUcturing of systems to be unclear. The SWOT shows that CCP is a micromanaging

system leaving employees unable to make decisions. Employees feel they have a lack of

resources and are un-happy due to the restructure because of the breakdown of upper

management, which has left CCP disconnect on all levels, affecting decision making,

cOlmnunication and job role.

Interview Data

After quantifying the interview data, below are the most frequently stated questions:

Decision making main issue: Employees do not know what decisions they can make.

• Who controls budget?

• How to train direct care staff.

• Where is the road map for CCP?

• What decisions people can make without having to ask for approval

• What is peoples authority

• At which point to talk to next person who controls money.

• Who is Oat? Create different Oat was working on Person Centered

• Operation Advisory Team (OAT) - old OAT all OD's then changed to tasks forces to

address issues planning.

The two key questions that are instlUmental to the factors effecting decision making are, is

there a road map for CCP? Second, what is people authority? These are two critical questions

that need to be answered. Employees like to know where a company is heading to make sure


that their position is secure. Second, people need to know their authority, to know what

decisions they can and can not malee.

Communication main factor: Clear communication throughout the company at all levels needs to

be set. Based on the interview data, below are the most frequently stated questions:

• Do not feel like they belong

• Balance between home and work, at the end of the day

• Other needs for the study are to make sure that CCP is maintaining quality Homes.

• Walk in to home and feel proud.

• Who establishes priorities?

• How can we get respect as a company.

• Buck system not to get a lot of turn over.

• Teaching suggestions, advise

• Level of professionalism consistent

• communication skills to managers

• Managers jobs easier

• Person Centered Thinking

The two key factors effecting communications are who establishes priorities and

communication sldlls of managers. Ifpeople do not know who establishes what gets done then

the company runs the risk of nothing getting done. Many managers are hired without having

manager skills. Training needs to be provided so all managers have communication skills to be a

successful leader.


Job Roles main factor: People need to have clear and defined job roles. Based on the interview

data, below are the most Jiequently stated questions:

• Manager training is lacking a manager structured handbook needs to be implemented.

• Clear direction on who to contact when there is a concern?

• Higher expectations of employees.

• Employee Recognition

• Resources within computer

• Tools and teaching verbal praise

• Love my job - invested in company.

• Interns dedicated time to CCP

Employees do not have a clear understanding oftheir job role. Therefore, who to contact

when there is a concern is the most urgent and imp011ant question in relation to what are peoples

job role.

In all areas the questions were instrumental to the study and how it related to decision

making, communication and job design.

Influential Factors Impacting an Organization through Restructuring 52P2007 Survey Responses

tement Criteria Averages Mgr OD Admin PS Other Total Aver;

:ision Making 4.334

4 Tfeci like I can make decisions on my own 5 3.88 2.5 4.2 4.5 3.33 3.68

11 The decision lmuke in my department is a contribution to the success ofeep. 5 4.44 4.75 5 6 3.67 4.77

13 In my department we readily admit mistakes and cooperate to improve work 5 4.19 4.5 5.6 5 3.67 4.59

15 I am not able tot make a decision I use to be able to make. 2 4.06 5.25 3 4 4 4.06

18 The working relationship between co~workers is understood. 5 5 4.75 5.6 3.5 4 4.57

nmunication 3.458

5 I feel as though there is good communication in cep 5 3.19 2 3.8 2.5 2.33 2.76

8 If I have a conflict with ffilyone in my department, I feel safe to talk to them 5 4.88 5 5 4 4.67 4.71

I feel safe to talk to them face-ta-face abollt it.

14 Communication ill Illy department is clear 5 3.69 3 4.6 4 2.33 3.52

16 Communication in the division is direct. 5 3.69 2.25 3.6 3 3 3.11

20 Perception of"status" interferes with communication within lhis division. 2 3.13 3.5 2.8 2.5 4 3.19

within this division

Design/Role 4.128

2 1fecI support in my work role 5 3.63 2.75 5.6 3.5 3.67 3.83

6 I know my job role within CCP 5 4.56 3.5 5 5 5.34 4.68

9 I am not afraid to disagree with leaders in my department. 5 4.31 4.5 4.6 4.5 5 4.58

10 I enjoy my role with in CCP 5 3.88 3.5 5.4 5 4 4.36

12 I do not know what is expected of me in my job. 2 2.88 4.25 2 2.5 4.33 3.19

~ty, Significant and Belonging 4.536

1 I feel safe working for CCP. 5 4.38 4.75 5.6 4.5 4.67 4.78

3 My scnse of belonging to this team is strong. 5 3.81 3.25 5 5.5 4 4.31

7 Usually I do not feel significant in the work I do. 2 3.38 2.5 2 5 3.67 3.31

17 My job is significant to the consumcrs we serve. 5 5.56 4 5.6 6 5.67 5.37

19 I feel safe working in my team. 5 5.06 4.5 5.8 4.5 4.67 4.91

Mgr OD Admin OtherIf Total total total total PS total total

30 16 4 5 2 2

Results for CCP Assessment Survey

The results ofthe assessment survey from the table above are as follows:

Communication average of3.5 is the most significant average of concern due to the fact

that it falls below the criteria of 5. Meaning there is a significant need for intervention on

communication within CCP. The second need for intervention is injob design/role with an

average of 4.1. This shows that job design needs some clarification and improvement. Decision

making average is 4.3 under the criteria of 5 and showing a need for clarification on who can

make what decisions. Lastly, the least level of concern is in safety, significant and belonging

averaging in at 4.5. Employees averaged the highest and therefore the least amount of

intervention in this area.


Interview

The last measm-ements exercised to test this thesis question were gathered at an

interview, conducted by the author and the Administrator. The Administrator was asked to

identifY and rank the most important issues throughout the restructure, and more imp011antly for

the futm-e success of CCP. Because people's positions have changed due to restmcture

employees are unaware of the decisions they can make and the role that they play. Many

decisions employees may have been able to make in the past, they are now unable to make.

Another factor that keeps causing issues in the company is that communication lacks within the

whole structm-e CCP. The administrator would like to switch the mind set of employees back to

the mission statement for the New Year that "clients come first." CCP would also like the share

mission statement implemented throughout all the employees. Clarity of CCP's future mission

and vision statements will provide stability for the upcoming years. There have been issues with

cascading information through the company and dispersing information in a timely matter. Since

the new design has been implemented to CCP, employees do not lmow what their job role

consists of, what decisions they can make or where there job role is with CCP future.

Summary of Statistical Results

This research was an attempt to provide a context for understanding the factors that

contributed to the restmcture of CCP and the issues that the employees of CCP are facing with

the restructure. The pm-pose of tlns study was to demonstrate the value of knowing and

lillderstanding the factors that are causing an unstable environment. The statistical results

showed explicitly that the factors affecting the restlUctm-ing were communication, needing the


most assistance, followed by decision making, job design and the least needed assistance was in

the safety, significant and belonging category.

CCP Mental Model has shifted and although people were not prepared, the statistical

results showed that decision making, communication and job design were unclear within the

company. Often times in an organization, fast change brings slow results and slow

transfol1uation makes the best results.


CHAPTER 5.

SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS

SUMMARY

This study has attempted to examine the influential factors of communication, decision

making and role clarification and the impact it has on a restructuring system. The researcher has

examined the factors that contribute to dysfunctions of organizational restructuring and the tools

that can be used to implement change and these influential factors. Looking at the following

research questions the research smnmarizes the following relate to the reasons for each data

collection. The following three questions, why is effective communication and leadership

important when restructuring? What is role clarification and how can you define each role that

will increase job effectiveness? Why is decision making impOliant when restructuring?

Were designed to relate how the study has attempted to examine communication, decision

making and role clarification and the impact it has on a restructuring system. These three

questions where found to need the most urgent answers. To find the answer to each of these

questions numerous data collections needed to be performed. The SWOT was first preformed to

gather information on whether effective communication was happening within the restructuring

system. The SWOT would also tell the researcher if people roles were being clarified as they

changed with a restructm'ing system and whether people were able to make the same decisions

before the restructure.

Influential Factors Impacting an Organization tlu'ough Restructuring 56

The interview and survey were designed to gather information on the following two

questions,

• How does effective communication streamline a restructuring of a corporation? And

how can we ensure that we're effectively communicating?

• What is the process of decision-making when restructuring?

The interviews gave a more in depth answer on how communication is streamlined through the

company and the way the company would like to see effective conununication. Interviewing

gave the researcher different perspectives of each person's thoughts of how they saw decision

making processes throughout the restlUcture.

The survey was formed to find solid data to answer the above questions, ultimately

finding the answer to the main research question to examine communication, decision-making

and role clarification and the impact it has on a restructuring system.

CONCLUSIONS

This research was an attempt to provide a context for understanding the relation between

influential factors and a restructuring system. This study was an attempt to look at a group of

individuals and establish how conununication, decision making and their job roles were being

affected while going through the restructure.

This study was also designed to assess and examine the influential factors impacting a

organization through a restructure. The sample population included supervisors, managers, and

leaders in a company of almost 1,000 employees. While few people would argue that they have

felt the impact of the restructure, the main areas of breakdown was within communication,

decision making and job design.


The analysis of the collected data relative to the principle objectives ofthe study provided

significant proof that the employees are conscientious individuals who know and understand the

problems impacting their job roles as well as the communication and decision making.

However, many other factors contributed to the lack of connnunication, confusion of decision

maldng and job role clarity. One being that CCP was unsure of the structure of CCP, therefore

creating a chaotic system; this resulting in fast changes to CCP structure, equaling confusion of

employees. Also, CCP strategic plan was not being followed and vision and missions were

unsure throughout the whole company.

Given the status ofthe research it seems reasonable to draw the following conclusions.

That most of the data is displaying chaos within the system of connnunication, decision making

and role clarification. At this time, there is no conclusion on which one is more impOliant then

the other but data showed connnunication scored the lowest therefore intervention should start

with communication.

In essence, there are certainly many more questions about restmcturing companies then

there are answers. Perhaps the one issue the researcher sees the need for are fresh and innovative

ways of making a restructure go smoothly within a changing system.


RECOMMENDATrONS

The first recommendation to CCP is to form an Organic Structure. Organic Structure is

more flexible, more adaptable to a patticipative form of management, and less concerned with a

clearly defined structure. The organic organization is open to the enviromnent in order to

capitalize upon new opportunities.

Organic organizations have a flat structure with only one or two levels of management.

Flat organizations emphasize a decentralized approach to management that encourages high

employee involvement in decisions. The purpose of this structure is to create independent small

businesses or enterprises that can rapidly respond to customers' needs or changes in the business

enviromnent. The supervisor tends to have a more personal relationship with his or her

employees.

The table below, was made to represent how the goals and the "Wants impOltant in

2008." Each X represents an area that CCP needs to address and how they impact one another.

Each goal was placed on the left and the influential factors affecting CCP were placed across the

top. The goal for CCP and the leadership team is to discuss amongst the team how the goals and

factors affect one another in the system. Each X in the matrix is analyzed resulting in the team to

see where the true issues remain.


Figure 3: Matrix

Goals Decision Communication Job Roles Safety,Making Significant,

BelongingQuality X X X XHomesEmployee X X XRecognitionManagers X X Xjobs easierPerson X X XCenteredPlanningFinancial X X

Dispel XFinancialMysteriesComputer XCompetencyOnline X XMedicationOnline X XProgramTools

The researcher assisted the team in stmting the intervention of the grid. When presenting

the grid communication stated and people were able to see the issues at hand and how this could

help to start getting out of a chaotic system.

A third recommendation to CCP is to clarify role identity. CCP is to teach the following:

The Strategy:

Leading Supervisors through Role Clmification

The effective leader aclmowledges that Supervisors have at least nine primary roles and

ensures each Supervisor is equipped to perform them when needed. And, part of this process is to


ensure that the middle managers who are responsible for Supervisor oversight know and

understmld these nine roles. Middle Managers need to be held accountable for ensuring

Supervisor cmldidates are trained to perform these roles competently before they ascend to the

position of Supervisor. These nine primary roles and a brief descriptor of each follow.

Leader / Advocate:

Leads by articulating and explaining the Vision, Mission, Core Values and Business

Objectives of the organization; interprets and advocates the best interests ofthe organization to

employees and the best interests of the employees to the organization, especially middle

mmagers and leaders.

Performance Manager: Ensures employees Imow performance standards, employees have

performance goals and the resources to achieve them and employees are delivering expectations;

they do this by regularly / systematically following-up with every employee, one-on-one.

Coach, Counselor & Advisor:

A routine role performed every day whereby performance standards md expectations are

reinforced, active listening is employed as a primary people management tool, and advice is

given only about job-related matters and where employees can go to seek advice about personal

matters affecting their work.

Change & Transition Leader:

Communicates and champions what organizational changes are taking place, the

fundamental reasons for the changes and the desired outcomes of these changes, all in the

context of why the change is important to employees.


Strategic Communicator:

Knows what is going on in the organization, how it impacts the work environment and

communicates same to employees routinely/systematically, and face-to-face. The frequency of

the communications is mandated by how critical the message is.

Problem Solver: Instinctively understands that the main goal is to prevent the problem

from occurring again (rather than simply fixing symptoms temporarily) and has mastered a step

by-step model, including identifying the problem, analyzing the problem, generating at least

tlU'ee realistic potential solutions, selecting the best solution, developing an implementation plan,

evaluating the application.

Decision Maker:

Is decisive and willing to make decisions with scant knowledge and limited time and

consults with knowledgeable employees for input before reaching conclusions and deciding on

options.

Team Leader:

Practices a work ethic that includes the principle "together everyone accomplishes more"

(T.E.A.M.). It is here that the Supervisor focuses on the critical impOliance of every individual in

the group and the gifts individuals bring to the mission and why mutuality of interests is

paramount to that mission.

Colleague, Coworker, Collaborator:

This role is thrust upon Supervisors because most were employees at one time and, in the

minds of current employees, should therefore be empathetic to employee concerns and issues.

Also, most Supervisors spend some of their time being hands on workers. The caution here is for

the Supervisor to know when to wear the Colleague hat and when to wear the Supervisor hat.


Task Orientation is the third recommendation to CCP. A highly task-oriented leader

focuses only on getting the job done, and can be quite autocratic. The leader will actively define

the work and the roles required, put structures in place, plan, organize and monitor. However, as

task-oriented leaders spare little thought for the well-being of their teams, this approach can

suffer many of the flaws of autocratic leadership, with difficulties in motivating mld retaining

staff. Task-oriented leaders can use the Blake-Mouton Managerial Grid to help them identifY

specific areas for development that will help them involve people more.

When your boss puts you in charge of organizing the company Christmas pmty, what do

you do first? Do you develop a time line and stmt assigning tasks or do you think about who

would prefer to do what and try to schedule around their needs? When the planning starts to fall

behind schedule, what is your first reaction? Do you chase everyone to get back on track, or do

you ease off a bit recognizing that everyone is busy just doing his/her job, let alone the extra

tasks you've assigned? Your answers to these types of questions cml reveal a great deal about

your personal leadership style.

Some leaders are very task-oriented; they simply want to get things done. Others m'e very

people-oriented; they want people to be happy. And others are a combination of the two. If you

prefer to lead by setting and enforcing tight schedules, you tend to be more production-oriented

(or task-oriented). If you make people your priority and try to acconunodate employee needs,

then you're more people-oriented. Neither preference is right or wrong, just as no one type of

leadership style is best for all situations. However, it's useful to understand what your natural

leadership tendencies are, so that you can then working on developing skills that you may be

missing.


A popular framework for thinking about a leader's 'task versus person' orientation was

developed by Robelt Blake and Jane Mouton in the early 1960s. Called the Managerial Grid, or

Leadership Grid, it plots the degree oftask-centeredness versus person-centeredness and

identifies five combinations as distinct leadership styles.

Understanding the Model:

The Managerial Grid is based on two behavioral dimensions:

Concern for People - This is the degree to which a leader considers the needs ohearn

members, their interests, and areas of personal development when deciding how best to

accomplish a task

Concern for Production - This is the degree to which a leader emphasizes concrete

objectives, organizational efficiency and high productivity when deciding how best to

accomplish a task.

Using the axis to plot leadership 'concerns for production' versus 'concerns for people', Blake

and Mouton defined the following five leadership styles:


Figure 4: The Blake Mouton Grid

Low High

Country Club Leadership - High People/Low Production; this style of leader is most

concerned about the needs and feelings of members of his/her team. These people operate under

the assumption that as long as team members are happy and secure then they will work hard.

What tends to result is a work environment that is very relaxed and fun but where production

suffers due to lack of direction and control.

Produce or Perish Leadership - High Production/Low People; also known as

Authoritarian or Compliance Leaders, people in this category believe that employees are simply

a means to an end. Employee needs are always secondary to the need for efficient and productive

workplaces. This type of leader is very autocratic, has strict work rules, policies, and procedures,

and views punishment as the most effective means to motivate employees.


Impoverished Leadership - Low Production/ Low People; this leader is mostly

ineffective. He/she has neither a high regard for creating systems for getting the job done, nor for

creating a work environment that is satisfying and motivating. The result is a place of

disorganization, dissatisfaction and disharmony.

Middle-of-the-Road Leadership - Medium Production/Medium People

This style seems to be a balance of the two competing concerns. It may at first appear to be an

ideal compromise. Therein lies the problem, though: When you compromise, you necessarily

give away a bit of each concem so that neither production nor people needs are fully met.

Leaders who use this style settle for average performance and often believe that this is the most

anyone can expect.

Team Leadership - High Production/High People - According to the Blake Mouton

model, this is the pinnacle of managerial style. These leaders stress production needs and the

needs of the people equally highly. The premise here is that employees are involved in

understanding organizational purpose and determining production needs. When employees are

committed to, and have a stake in the organization's success, their needs and production needs

coincide. This creates a team environment based on trust and respect, which leads to high

satisfaction and motivation and, as a result, high production.

Applying the Blake Mouton Managerial Grid

Being aware ofthe various approaches is the first step in wlderstanding and improving

how well you perform as a manager. It is important to understand how you currently operate, so

that you can then identify ways of becoming competent in both realms.

Step One: Identify your leadership style.


Think of some recent situations where you were the leader.

For each of these situations, place yourself in the grid according to where you believe you fit.

Step Two: Identify areas of improvement and develop your leadership skills

Look at your current leadership method and critically analyze its effectiveness.

Look at ways you can improve. Are you settling for 'middle of the road' because it is easier than

reaching for more? Identify ways to get the skills you need to reach the Team Leadership

position. These may include involving others in problem solving or improving how you

communicate with them, if you feel you are too task-oriented. Or it may mean becoming clearer

about scheduling or monitoring project progress if you tend to focus too much on people.

Continually monitor your performance and watch for situations when you slip back into bad old

habits.

Step Three: Put the Grid in Context

It is imp011ant to recognize that the Team Leadership style isn't always the most effective

approach in every situation. While the benefits of democratic and pm1icipative management are

universally accepted, there are times that call for more attention in one area than another. If your

company is in the midst of a merger or some other significant change, it is often acceptable to

place a higher emphasis on people than on production. Likewise, when faced with an economic

hardship or physical risk, people concerns may be placed on the back burner, for the short-term

at least, to achieve high productivity and efficiency.

The Blake Mouton Managerial Grid is a practical and useful framework that helps you

think about your leadership style. By plotting 'concern for production' against 'concern for

people', the grid highlights how placing too much emphasis in one area at the expense of the

other leads to low overall productivity. The model proposes that when both people and


production concerns are high, employee engagement and productivity increases accordingly.

This is often true, and it follows the ideas of Theories X and Y, and other patticipative

management theories. While the grid does not entirely address the complexity of "Which

leadership style is best?" it certainly provides an excellent statting place to critically analyze

your own performance and improve your general leadership skills. (Blake, R. Mouton, 1. 1971)

Implement a Balanced Scorecat'd

• Increase focus on strategy and results

• Improve organizational performance by measuring what matters (Key to scorecard).

• Align organization strategy with the work people do on a day-to-day basis

• Focus on the drivers of future performance

• Improve communication of the organization's Vision and Strategy and keep it aligned

(Freedom).

• Prioritize Projects / Initiatives

Figure 5: Balanced Scorecard

Influential Factors Impacting an Organization tIu'ough Restructuring 68

Lack of Meaning in job-Define eachjob and duties

The jobs appropriate for an organization come directly from the organization's mission and

structure. Based on an analysis of the organization's mission, goals, and programs or activities:

• Identify the values that should be reflected by all staff

• Establish the tasks or fnnctions that need to be done

• Group the tasks into meaningful and challenging jobs

• Determine the experience, knowledge, skills and other characteristics that are required

• Consider any special working conditions or physical requirements

• Write or update the job description

Micro Managed vs. Empowerment on Management

Distrust or Trust: Being Mira Managed, need to trust management

As a manager, you want to leverage your employee's skills to make the most effective use of

your time. There are two basic styles of management: empowerment management and

micromanagement.

Empowerment management is when you tell your employee what needs to be done, and

then let them come up with their own solutions to complete the task. When you empower your

employees to make their own decisions, it will allow you to focus your efforts on other projects,

tasks or strategic planning. For some managers, this can be nerve-racking, since you have to

place a certain degree of trust in your employee's ability to get the task completed.

Micromanagement is when you tell your employees not only what to do, but HOW to do

it. An extreme micromanager is one who constantly looks over their employee's shoulder and

provides detailed directions. This has led to the beliefthat micromanagement is generally evil.


And to be sure, many employees loathe being micromanaged. Many, however, need it to some

degree and, believe it or not, will appreciate it.

Both of these styles are on opposite ends of a management continuum. Many managers

manage their employees at the same place on the continmun, regardless of the employee's skills.

To be truly effective, a manager must manage each of his or her employees individually along

the continuum between these two extremes. Micromanage to too much detail and your

employees will resent you for meddling in what they consider to be their affairs. Provide too

much empowerment (i.e. less direction), and you will be labeled as having no leadership

abilities. But just remember, this is based on your employees' perspective. Some will need to be

managed closer to the empowerment side, and some will need to be managed closer to the

micromanagement side.

Follow these steps to tailor your management style to the needs of your employees:

1. Statt in the middle ofthe continuum with each of your employees. Let them know what

you want accomplished and give them some ideas about how to proceed, but don't be too

specific on how to complete the task. Basically, just nudge them in the right direction.

2. Get regular feedback. Be sure to keep reasonably close contact with your employees,

maybe tlu·ough weekly one-on-one meetings, or tlu·ough casual conversation. Your

purpose is to see how each of your employees perform at the current management level.

Do they have a plan for completing the tasks you gave them? Are they complaining about

feeling overwhelmed with the task? Do they lack a sense of direction? Did they finish

sooner than you expected? Did they do the task thoroughly?


3. Where necessary, either moves toward the empowerment side or toward the

micromanagement side. If an employee has shown that they can determine on their own

how to accomplish a task, then you can move toward empowerment management with

that employee. In other words, give them less direction next time, and see how they

perform. If an employee complains of being overwhelmed by a task, has no idea of how

to implement the task, or does not complete the task thoroughly, then you will need to

move toward the micromanagement side with that employee. In other words, give them

more specific direction next time.

4. Continue to repeat steps two and three. Eventually, you will find the proper

management style for each of your employees. Be aware of the types of projects and

tasks you are giving your employees, as this can also affect to what degree they need to

be managed. Someone who performs well with empowerment on one project may need to

be micromanaged on a project that is completely new to them.

If you don't manage your employees to their specific skill level, you will cause them

stress. And when they are stressed, they will start under performing and talking bad about

you. Help your employees succeed by managing them in the proper place on the

management continuum. You can be sure that by doing so, your employees will help you

succeed.

TIn'eats: Lack of Organization, Theory of Management, Pay Scales


Lack of Organization:

Create Task Forces and duties - OAT, Person Centered Planning, Policy and Procedures.

Task forces are comprised of (Senior Management) OD, PS, Manager.

• Reduce micro managing. Senior management needs to allow management to make

decisions - Decision making.

• Senior management needs to trust that the OD's will make good decisions. Senior

Management not to be a part of all decision making.

• Trust!!!

Changing a micro-manager into a top perfOlmer with the ability to lead a team takes time,

but is not impossible. Here are five suggestions on how employees -- from subordinates to

executives -- can work with micro-managers to help them change.

Recognize the issue: This is the most difficult step for a micromanager because no one

wants to believe they behave inappropriately. However, if peers, subordinates, and superiors see

there is an issue, it's impOliant to help the micro-manager see he has a problem by talking to him

directly, yet supportively, about the issue.

Assess Skills: Some people are pnt into management roles for the wrong reason. Not everyone

is cut out to lead others. And this may be the case with many micro-managers. As difficult as it

may be to admit, management may not be the right place for this person. That does not mean that

they are a poor employee, just that their skill sets are more appropriate for another role.

Get Training: Perhaps the potential is there, but there was inadequate training to start

with. Help the micro-manager to become more comfOliable in their role through internal or

external training classes as well as additional suppOli from a successful peer and the micro

manager's boss.


Take it slow: Take the time necessary to change. Once the problem has been diagnosed,

it is important to make changes one step at a time. Yes, the organization and employees don't

want the problems to continue; however, diagnosis is half the battle. People should be patient

and allow the change to take place over a reasonable period of time.

Develop a Support System: For a micro-manager who recognizes their problem and

wants to change, it is impOliant they have a conversation with their staff and their supervisor.

This way the team can help by cormnunicating regularly their progress on projects and their

supervisor can continue to offer direction - without micro-managing.

Micro-management is not insurmountable. It's a matter of identifying and correcting the

underlying issues. This way the micro-manager and their staff can recognize the benefits of

working together as a team of adults.

Theory of Management• Meyers Briggs - OD's took Meyers Briggs on-line test

• Theory XlTheory Y

• Theory x ('authoritarian management' style)

The average person dislikes work and will avoid it he/she can.

Therefore most people must be forced with the threat of punishment to work towards

organizational objectives.

The average person prefers to be directed; to avoid responsibility; is relatively unambitious, and

wants security above all else.

• Theory y ('participative management' style)

EffOli in work is as natural as work and play.


People will apply self-control and self-direction in the pursuit of organizational objectives,

without external control or the threat of punishment.

Commitment to objectives is a function of rewards associated with their achievement.

People usually accept and often seek responsibility.

The capacity to use a high degree of imagination, ingenuity and creativity in solving

organizational problems is widely, not narrowly, distributed in the population.

In industry the intellectual potential of the average person is only partly utilized.

Pay Scales:

U.S Depmtment of Labor (2004) repOlts that starting salaries for residential care workers range

from about $13,000 to $20,000 a year. Experienced workers earned between $18,000 and

$27,000 annually. CCP's direct care staff average around $11.00 Hr. or $20,00 year. Managers

range between $25,000-35,000 and Operation Directors range between $40,000-50,000.

Threats will turn in to Opportunities

Concluding Comments:

Individuals should be selected as Supervisors only ifthey have demonstrated the capacity

to learn these roles over a discrete period of time. Sitting Supervisors should be retained only if

they they demonstrated they can competently perform these roles. This means leaders and middle

managers must provide the context for this to happen. Leaders must provide the vision and

direction, inspiration and motivation, recognition and rewards for Supervisors to flourish. Middle

managers must provide the coaching and counseling, skill training and development (and the

time to do it) and support and encouragement in the work place every day for Supervisors to

develop the confidence and will to supervise, which are critical prerequisites to success.

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)HRDirectorBarbara Jasinski

HR AsstlRecep RecruiterSara Ahmed Brenda

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SupportServicesDirectorSara Clough

PropertyManager, CCPand CassadyBob Gienger

Dawn Sullivan

Executive DirectorAdministrator, John Rentschler

QualityAssurance

Marie Rofshus ,,,,,..,Nursing AdministratorServices Alison Campbell Budget Analyst r-,~

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OD, West MetroKelli Danger,

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clients per Admin Staff

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Basnight Moe Bishop Campeau Schultz

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Influential Factors Impacting an Organization through Restructming 81

APPENDEXB:

Identific([tion: Please check one

I = Strongly Disagree2 = Disagree3 = Somewhat Disagree

I. I feel safe working for CCP.

2. I feel suppOli in my work role.

4 = Somewhat Agree5 = Agree6 = Strongly Agree

3. My sense of belonging to this team is strong.

4. I feel like I can make decisions on my own

5. I feel as though there is good communication in CCP

6. I know my job role within CCP

7. Usually I do not feel significant in the work I do.

8. If I have a conflict with anyone in my depatiment, I feel safe to talk to them

face-to-face about it.

__9. I am not afraid to disagree with leaders in my depatiment.

10. I enjoy my role with in CCP

II. The decisions I make in my depatiment is a contribution to the success of CCP.

12. I do not know what is expected of me in my job.

13. In my department we readily admit mistakes and cooperate to improve

our work.

14. Communication in my department is clear.

IS. I am not able to make a decision I use to be able to make.

16. Communication in the division is direct.

17. My job is significant to the consumers we serve.


__18. The working relationship between co-workers is understood.

__19. I feel safe working in my temn.

___20. Perception of "status" interferes with co1l1111unication within this division.


APPENDEXC

To: Allison CampbellFrom: Kristina WendtRE: Proposal for Consultant

Background of Company:

Little stability within company

Oat/OD group and CEO/COO not parallel

Communication lacks. Who attends?

E-mail and open door policy - how to control this? to get work done.

Establish e-mail rules? Reading book "Never check e-mail in the am.

Open door - never get any work done

Productivity and structure

How to switch the mind set of everyone to get back to the mission statement for the New Year-

clients come first. Share mission statement all the way down.

$$$$$ - have to do more with less, same room and board even though all costs go up.

Health Insurance - 100 out of 700 participate

Not having Christmas party. Cost $75,000 - use $ in different way.

Mission Statement: Stability for next year

New design of company - employees do not know:

Gerald/Owner-----Kathy/CEO-----Kathy/COO-----John/Exec. Director---

Allison/Program-----Brian/Finance-----Sarah/ HR---------OD's and Program Spec.

Who makes the decision? All have own thoughts.

Lori seat on stool - Legs on a stool

Cascading info tln·ough put company - dispersing in a timely matter.


Clarification how to do this?

Who makes bid decisions and how do we cascade the info to everyone in a positive way.

Wants for Company:

1. What's important in 2008, see attached

2. Communication and Role of Oat and who should attend and make decisions?

3. Strategic Goals? Responsibility?

4. Switching mind set back to Mission Statement

Assessment to each Step: See attached Questions from Allison on each step

1. Decision Making

2. Communication

3. Job Design - roles

4. What the survey reveals?

Time:Stmi Date: December 14, 2007

Allison Campbell

End Date: March 18,2008

Kristina Wendt


APPENDEXDCCP Goals for 2208

What's Important in 20087

• Stability• Professional Communication• Nursing Resolved• Payroll• Getting people in Positions promoted to.

Not taking on more than we can chew

Quality Homes

Physical appearanceHealthy Meals - Simon's and Household grocery budget alterations

Employee recognition

Build trust with small thingsSchedule of eventsCompetitive wages

Making managers job easier

How to use lead staff/ 4 day work weeks to remain competitive/creative thinkingTime management toolsE-mail expectationslVM Pagers

Person Centered Plan Philosophy

Financial Updating

House/Client Checkbooks vs. Checkcards

Dispel Financial Mysteries

Inclusion/knowing how budgets are to be spentHow numbers are decided upon

Computer Competency

Online Medication

Online Program tools


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