Delivery in day(s): 5
Diploma in Business
Unit Number and Title
Unit 44 Business Psychology
The business psychology assignment has been divided into 4 Tasks. The case study of Swan Cooper as a company which changed due to being taken over by an American Company will be basis of answering all the sub tasks. Task 1 will be discussing on an understanding to the different perspectives in the Occupational Psychology. It will list down the theories linked and new management and scientific approach of handling the organization. Task 2 will give an insight on the role of psychology in the assessment of individual differences that exist at workplace. The types of differences and the recommendations in improving them will be discussed. Task 3 will discuss the change in the reactions of the workforce with the change that is introduced in the company. This would be explained with the help of Kubler-Ross Model and John Kotter’s 8 Step Process of change. Task 4 will give an understanding on the impact of culture and climate on the performance of workforce. This task would be explained with special reference to the case study as everything has been changing in the organization and the workforce has to adapt itself to the change for the sustainability process.
In this task, different perspectives to the Occupational Psychology will be discussed with special reference to the Swan Coopers and their way of operations. The theories and their applications in this scenario would be analysed.
There are basically three major theoretical approaches to the Occupational Psychology and these have been explained as under:
These approaches will certainly be applied to the case of Swan Coopers. Swan Coopers had the culture with the paternalistic approach of its management towards the workforce. The workforce was only aligned and concentrated towards the work rather than aspiring for the management position. The culture was not very open and transparent. People had adjusted to those circumstances as per the humanistic and behaviouristic approaches. The people who were able to adjust to those conditions only joined the organization. Suddenly there has been a change in the culture as some American Company has taken it over and believes in the open and transparent culture. Cognitive or the problem solving approach will play a great role in this as now the people would be able to join in this culture and others would no longer be able to sustain. These approaches will help this company in getting to know the people who have been working to understand the approaches and strategies that the company adopts.
Scientific approach is a step by step approach to solve the problem in the organization related to the psychology at workplace. The new management has taken over at Swan Cooper and they would desire that all the employees remain competitive, open, supportive, coordinating and follow the transparent culture whereas the culture and psychology of people at Swan Coopers has been entirely different. The earlier management had always taken the workforce under paternalistic approach. The Scientific method is useful for the management as it believes in a step by step approach. This has following steps that new management can easily utilize to solve the problem:
For example the scientific approach will help in gathering the data related to the surveys in the step by step format.
Quantitative and Qualitative Methods for the understanding of the situation of the company will help the new management in analysing the amount of change that has taken place and is required to be brought within the organization. The strengths and Weaknesses are mentioned as under:
Strengths: Quantitative Approach
Weaknesses: Quantitative Approach
This task will discuss on the role of psychology in assessment of the differences that exist in various individuals at Swan Coopers. It will even give an insight on the amount of changes that will be handled and associated with the changing culture in Swan Coopers.
The two major kinds of the assessable individual differences that exist among the individuals will be in their culture and their demography. The workforce working with Swan Coopers till date had been living in the paternalistic leadership culture that was formed by its earlier management. The difference will now come as the American Organization would be looking for the individuals who are open, transparent and believe in the competitive approach. The people who do not want to adjust to this new culture will not be useful for new management and even the people who have come from the demography in terms of the competitive approach will be of use for sustaining in the Swan Coopers. Swan Coopers new management will only opt for the people who are adaptable and even can follow any kind of culture and can fight competition to rise ahead in their professional careers and lives (Davis et al, 1997).
The new management in Swan Coopers has to determine the people of the personality types who can adjust and accommodate in the new structure and the culture of the company. The following two types of Psychometric Instruments could easily be used by them to assess the personality types of the workforce working for the company:
The two types of measures with respect to the individual differences are:
Both these measures could easily be used to determine and find out who are the people who will adjust to the new culture that the new management is going develop within Swan Coopers. The people who can take up risks and have the internal drive to change and its adjustment will surely be able to change themselves and adjust within the organization and help it to progress further.
In this task a detailed discussion would be carried out on the impact of change that is experience on the business. This will give an insight of the reaction of the workforce to the change that would be explained with Kubler-Ross Model. The 8 step Kotter’s change model will also be discussed under this head.
As per Kubler-Ross Model of Change, there are basically 5 stages of the changes that the individuals so express: Denial to change, anger or frustration, bargaining for change, depression of the people and finally acceptance to it. Swan Coopers has a paternalistic kind of structure or the leadership environment that used to exist within the organization. They were given instructions and guidance on how the work has to be carried out. On the other hand now the culture would taking own initiatives, empowerment and acting on the decisions made and be responsible for them. Initially when the new management will meet up the people, they will dictate on the new policies, procedures and the action plan for taking the organization forward. The people who are adaptable will surely resist and show anger but slowly and gradually adjust within the new culture (Scherer & Wertheimer, 1964). On the other hand the people who are non-adaptable will not be able to adjust to the changed circumstances. It is usually said that in the five stages of the Ross Model, people do adjust but there are few who cross these five stages easily whereas others may take longer to cross them. Rest are few who cannot adjust and company has to take up some measures to retrench them as they will make the culture spoiled by their useless discussions.
The specific reasons for the resistance of the people are:
The changes in the reaction of the people with respect to the changes in the company would be slow and gradual by step by step arrangement as shown in the diagram.
Kotter’s has given 8 major steps that could be followed in order to bring about changes within the Swan Coopers. These 8 steps have been shown in the above diagram:
This 8 step process is being followed for almost all kinds of changes that are brought about at a bigger level. This model when would be adopted by Swan Coopers will result in solving the problem and thereby resulting in the changed culture within the company.
These three groups will be counselled and explained in the ways described below:
All these groups are essential for the organization and they have to be supportive so that organization is successful for a longer run and able to realize its potential easily. These have been the people who are aware of the clients, associates and the market potential and in case they will be retained then company can develop its systems.
In this task a discussion would be carried out on the impacts that change in the culture and climate will have on the performance of the workforce. This will be explained with the help of the theories that have been developed on culture and change management.
There have been many theories that have been developed on the culture and change management. It is usually said by the theorists that whenever there is change in the culture of the organization, the workforce tend to change but how easily they adapt to change is dependent on the policies, motivational techniques and training that the management of the company provides to these people. Originally the people were kept in the protective shelves. They had to follow the instructions of their heads and thereby implement them accordingly. They were never asked to compete and show their potential. The new management in the company is entirely of the changed belief. They would have to hire, recruit and retain only those people who have potential and can perform with the increasing competition with the open culture. There is a complete transformation in the way Swan Coopers used to operate earlier and would be operating now. The company’s performance would be affected in both the positive and negative way as:
The rope markers will experience a change in the climate from the olden times to that of the newer one. They will now get the decision making, motivation and changed policies with respect to the processes, procedures and the benefits that they may get. With the change in the ownership, more work with efficiency would be demanded from them. There would be organization of more training and developmental classes and sessions that the company will adopt for them. In order to improve on the performance and efficiency of the company’s production and business processes, the company may have to install new machines, equipment and tools which existing manpower may not be equipped with. They have to get trained and adapt themselves to the new processes in order to adapt and sustain with the changes that are being brought within the organization. There would be few rope makers who will get adapted to the new culture and environment and start performing whereas some others may be involved in the criticisms. The rope makers who have the potential and ability to perform will be motivated and trained to work further and develop with the growth of the organization (Butler & Cantrell, 1984).
Swan Cooper will no longer be the same organization as it had been earlier. Originally it was having the paternalistic kind of an organization where the leaders did not develop the workforce to fight for the competition. Now when American company has taken it over then surely, they will have clear, transparent and open culture that will enhance the skilled and competent manpower to compete and grow in the organization. The recommendations that could be given in order to improve on the performance of the rope makers are:
Whenever change is brought into the system, there surely are changes that are experienced on the positive and negative front. Swan Coopers had been a paternalistic kind of an organization where the workforce was given instructions, guidance and ways to perform the various tasks. Now when the American company has taken over then surely the psychology of the entire organization in terms of its manpower has changed. The company will have open, transparent and completely transformed culture that would desire its people to effectively utilize their potential and perform well. This requires that Swan Coopers new management has to apply the effective and proven business psychology that would help in adopting the change well and completely recognized and enforced within the company. Swan Coopers can apply these theories like Kotter’s 8 Step Change Model, Ross Model and Scientific Approach to the management and control for the change management (Riemenschneider et al, 2003).
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