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Division Newsletter
 R.Wayne Boss, Editor                                       Winter 2003                                                    Published by the ODC Division

                CALL FOR PAPERS                                                          EMOTIONAL FILTERING
                 Gretchen M. Spreitzer                                                   IN STRATEGIC CHANGE
                 Program Chairperson                                                           Quy Nguyen Huy
This call outlines some of the requirements for success-                                          INSEAD
fully submitting papers and symposia for review for                                       2002 ODC Best Paper Award
the Academy of Management National Conference in                      Strategic change may be infrequent in organizational
Seattle, Washington, August 1-6, 2003. The deadline                   life, but they are consequential to an organization’s life
for submissions is January 6, 2003 at 5 p.m.                          chances: realizing strategic change is difficult, and
                                                                      underperformance and mortality risks are significant.
The theme for this year’s conference is “Democracy in                 Fundamental change in personnel, strategy, organiza-
a Knowledge Economy.” This certainly is a timely and                  tional identity, or work roles often triggers intense
relevant theme from a global and national perspective.                emotions. Emotions in turn affect how different groups
It envelops some of our core values as organizational                 interpret a proposed change and how they behave
change and development scholars and practitioners.                    (Huy, 1999). But there has been little systematic,
This theme invites us all to contemplate, question,                   empirical research on the interaction of multiple groups
theorize, and imagine how organizations can be tools                  during radical change.
for democracy and involvement.
                                                                      Few empirical studies have systematically explored in
Seattle will be a wonderful venue for the Academy of                  real time the nature and role of emotional processing in
Management’s 2003 annual meeting. It is an amalgam                    strategic change. I investigated what specific emotions
of cultures East and West in a setting of striking natural            hinder or facilitate the implementation of strategic
beauty. It is also the site of a dramatic clash between               change. Based on the findings of a three-year field
people and organizations during 1999’s WTO meetings.                  study of a large firm undergoing radical change as it
Seattle invites attention to many issues that resonate in the         was subject to deregulation and global competition, I
Academy community including, the natural environment,                 build a theory by describing how recipient employees
sustainability, quality of life, technology, innovation,              emotionally responded to executives’ actions. Emotional
political action and social change, to name a few. I                  filtering is defined as change recipients’ emotionally
encourage you to visit the Academy web page to learn                  (See Huy, page 4)
more about this year’s theme. The website address is:
http://myaom.pace.edu/AnnualMeeting/2003.
                                                                                                          Table of Contents

Submission Process                                                        Gretchen M. Spreitzer, Call for Papers ................................... 1
                                                                          Quy Nguyen Huy, Emotional Filtering in Strategic Change . 1
I cannot over-emphasize the importance of reading                         ODC Division Executive Committee 2002-2003 .................. 2
and following the submission guidelines in the All                        New Doctoral Student Consortium .......................................... 3
Academy Newsletter or the Academy Website. Pay                            Martin Hoegl & K. Praveen Parboteeah, Team Level
particular attention to the requirements specific to the                  Antecdents of Team Members’ Network Building in
ODC division.                                                             Innovation Projects ................................................................... 5
                                                                          Mary A. Ferdig & James D. Ludema, Transformative
                                                                          Interactions: Relational Principles That Impact the Quality
As in past years, there are two primary stages to the                     of Self-Organizing Change ........................................................ 8
submission process. In the first state, you must submit                   Monty G. Miller, Stephen P. Fitzgerald, Joanne C. Preston
your title page information, abstract, and affiliation to                 & Kenneth L. Murrell, The Efficacy of Appreciative
the Academy Website in order to receive an electronic                     Inquiry in Building Relational Capital in a Transcultural
                                                                          Strategic Alliance ...................................................................... 1 0
submission number. This number is critical, as it will
                                                                          Feedback to the Editor ............................................................ 1 2
(See Spreitzer,, page 2)
(From Spreitzer, page 1)
        ODC DIVISION EXECUTIVE                                           appear on all of your submissions and correspondence.
         COMMITTEE 2002-2003                                             Second, authors must send the electronic version of
Christopher G. Worley, Division Chairperson                              their paper or symposium to me, the ODC program
Pepperdine University                                                    chair, at ODCAOM@umich.edu. This year, the ODC
Phone: 949/488-7978          Fax: 949/488-0157                           Division requires electronic submission via email attach-
Email: chris.worley@pepperdine.edu                                       ment. Electronic paper documents must be ready for
Peter F. Sorensen, Jr., Past Division Chairperson                        blind review. A diskette will be accepted only if authors
Benedictine University                                                   do not have access to email to save time, money, and
Phone: 630/829-6222          Fax: 630/829-6211
Email: psorensen@ben.edu                                                 the environment. For electronic submission via diskette
                                                                         see the AOM’s “Instructions for Authors Who Do Not
Gretchen Spreitzer, Program Chairperson
University of Michigan
                                                                         Have Electronic Mail.” In either case, submissions
Phone: 734/936-2835         Fax: 734/936-0282                            (both papers and symposia) must be contained in a
Email: spreitz@umich.edu                                                 single Microsoft Word (version 6.0 or higher) document.
George Roth, Pre-Conference Chair
& Program Chair Elect                                                    Your submission will be acknowledged electronically
MIT                                                                      upon receipt. For more information on the require-
Phone: 617/253-8407      Fax: 617/252-1425                               ments for preparing your submission, I strongly
Email: groth@mit.edu
                                                                         encourage you to consult the Academy website for
Ram Tenkasi, Division Representative                                     specifics (please see “Electronic Format Guidelines”).
Benedictine University
Phone: 630/829-6212
Email: tenkasi@email.msn.com                                             Division Awards
Hillary Bradbury, Representative-at-Large (3-year term)
Case Western Reserve University                                          Four externally-sponsored recognition awards of
Phone: 216/368-0700       Fax: 216/368-4785                              $500 each will be given for the following: the best
Email: hxb22@weatherhead.cwru.edu                                        competitive paper; the best paper authored by a
Karen S. Whelan, Representative-at-Large (2-year term)                   graduate student or students; the best interactive
Texas Wesleyan University                                                paper, and the best paper linking theory to practice.
Phone: 817/531-4835                                                      Papers authored by graduate students should be clearly
Email: whelanbk@txwes.edu                                                identified as such at the time of submission.
Raymond Saner, International Representative-at-Large (2-year term)
Centre for Socio-Eco-Nomic Development (CSEND)                           Don’t Forget the Rule of Three!
Phone: +41-22-906-1720 Fax: +41-22-738-1737
Email: saneryiu@csend.org
                                                                         No one may submit more than three things to an
Phillip H. Mirvis, Executive Scholar-Practitioner
                                                                         Academy Meeting (papers and/or symposium), or
Phone: 301/652-4600         Fax: 301/774-7377
Email: pmirv@aol.com                                                     appear in more than three sessions during the refereed
                                                                         scholarly program from Sunday noon to Wednesday
Robert T. Golembiewski, Academy Council
University of Georgia
                                                                         noon. Appearances include roles as presenters, co-
Phone: 706/542-2970       Fax: 706/542-4421                              authors, chairs, discussants and/or facilitators.
Email: rtgolem@uga.edu                                                   However, the following listings in the program are
Eric A. Goodman, Web Page Master                                         exempted from the Rule of Three: Officer roles,
Colorado Technical University                                            Division General sessions (Welcome, Business, Social,
Phone: 719/590-6772      Fax: 719/598-3740                               Free Session), Caucuses, and Professional Development
Email: egoodman@coloradotech.edu                                         Workshops. Also, if a person appears twice in a single
George Hay, Student Representative                                       symposium (e.g., chair and author) it only counts as
Benedictine University/McDonald’s Corp.                                  one appearance. IMPORTANT: Include in your
Email: george.hay@mcd.com
                                                                         message a statement that you and any co-authors have
R. Wayne Boss, Newsletter Editor                                         read and are not violating the “Rule of Three.”
University of Colorado
Phone: 303/492-8488       Fax: 303/494-1771
Email: wayne.boss@colorado.edu                                           I look forward to receiving your submission and seeing
                                                                         you in Seattle in August! If you have any questions,
                                                                         please contact me at ODCAOM@umich.edu.
                                                                     2
NEW DOCTORAL STUDENT                                    collaboration and networking, teaching excellence, and
              CONSORTIUM                                         much more.
             Saturday, August 2, 2003
The New Doctoral Student Consortium (NDSC) is                    Networking
part of the Academy of Management’s commitment to
the professional development of its student members,             Throughout the one-day consortium you will engage
and its prospective members. NDSC is designed by                 in activities to help you identify possible research
doctoral students for doctoral students and is aimed at          partners from across the USA and the world. You
students in their first or second year of a doctoral             will interact with esteemed presenters through question
program. We also strongly encourage any prospective              and answer sessions. You will also have the unique
doctoral program candidates to participate. This                 opportunity to meet and discuss publishing issues
consortium is designed to address the real life issues           through coffee time with editors of top tier journals
that exist for doctoral students from getting started on         like Organization Science, Academy of Management
your thesis all the way through the publishing process.          Journal, Academy of Management Review, and other
NDSC is your opportunity to interact, discuss, and               high quality publications.
learn from the Academy’s leading members and the
world’s leading academics.
                                                                 The NDSC will be held in Seattle, Washington, on
The NDSC is a consistent presence at the Academy’s               Saturday, August 2, 2003 from 8:20am to 5:30pm. Light
annual conference and has become a premier pre-                  refreshments and lunch will be served during the
conference event. There are several aspects of the               consortium and an “All Doctoral Student Reception”
NDSC that have made it a “not to be missed event”                will also be held following the consortium.
including:
                                                                 The NDSC is becoming a major pre-conference event
The People                                                       for doctoral students! Attendance is limited to 150
                                                                 participants. Registration will open in March 2003 and
By attending this year’s consortium, you will meet               you are strongly encouraged to register early through
some of the Academy’s most distinguished members                 our on-line registration at www.aom.pace.edu/ndsc.
and academicians, as well as other doctoral students             For more information, please contact Stephanie Ward,
who also share similar experiences and interests! At             NDSC Chair of Marketing and Registration, at
the 2003 NDSC you will meet and speak to world                   sward@uh.edu.
leaders in management research, theory, practice and
education, including David Boje, Stewart Clegg,
Thomas Cummings, Jeffrey Edwards, Peter Frost,
Glen Kreiner, Peter Lane, Tom Lee, Ed Locke, Denise
Rousseau, Terri Scandura, Claudia Bird Schoonhoven,
                                                                             Happy
Larry Williams, Ian Williamson, Amy Wrzesniewski,
and others.

Career Development                                                      Holidays!
When you begin a doctoral program you begin your
career. This year’s consortium includes speakers and
topics focused on helping you understand what your
role can be in the academic world of research, pub-
lishing, and teaching. The topics at the 2003 NDSC
will include: managing life as a student, life as a
“minority” student, the power and politics of doctoral
programs, starting your thesis, performing exemplary
research – both quantitative and qualitative – publishing,


                                                             3
(From Huy, page 1)                                                to achieve certain ideals they set for themselves)
charged interpretations of agents’ actions that materially        (Schein, 1996). These agitated emotions act as a force
influence recipients’ cognitive and behavioral responses          that causes disequilibrium in human systems and
to the proposed change. I show how emotional filtering            induces receptivity to change. Yet, the same agitated
differentially affected the outcomes of major change              emotions could induce among recipients learning
projects and suggest that emotions played a critical              deficiencies such as shallow cognitive processing,
role in determining the outcomes of such change. I thus           deficient attention, or reduced memory span. Too
invite researchers to devote more attention to specific           intense and too long a state of agitation could be
emotional states as important proximal, mediating                 dysfunctional to voluntary cooperation, collective mobili-
outcomes that energize the often-protracted process               zation and learning from interim change outcomes.
of implementing ambitious change. The effectiveness
of change actions could be assessed earlier through               Conceptual research on emotion and change has
the specific emotional states that these actions are              hypothesized how emotional states could affect the
intended to arouse. I first discuss the conceptual foun-          various dynamics of organizational change. Huy (1999)
dations linking emotions and strategic change.                    suggests that strategic change could be construed as
                                                                  the interplay among at least three change dynamics:
Lazarus’ (1993) emotion theory suggests individuals               receptivity, collective mobilization, and learning. Recep-
go through a two-stage appraisal process. People                  tivity as a process shapes and is shaped by the
evaluate the significance of a new event in relation to           continuous sensemaking and sensegiving activities
their own goals and concerns. If they appraise the                conducted among various members of the organization.
potential consequence as beneficial, pleasant feelings            People seek to understand the meaning of the proposed
are aroused. They experience unpleasant feelings if               change and to influence each other toward a preferred
they appraise the consequence as potentially harmful.             redefinition of the organizational reality. A fundamental
I use the circumplex model of emotions (Larsen &                  change in core values and personal welfare often
Diener, 1992) to explore the wide range of emotions               triggers strong emotional responses, which will affect
that recipients may experience during radical change.             how the change is construed and the nature of ensuing
According to this model, emotions share two basic                 actions. Receptivity to change can be characterized
dimensions. One dimension reflects hedonic valence                by varying gradations of willingness to accept the
(pleasant-unpleasant), while the other refers to intensity        proposed change, and these can range from resigned,
of arousal or action readiness (high versus low                   passive acceptance to enthusiastic endorsement.
activation). Together, the four bipolar dimensions                Resistance to change represents the other face of
produce eight emotion categories that capture almost              receptivity and can vary from sabotage to quiet cyni-
the full range of emotional experiences among people.             cism and withdrawal behavior. Some degree of receptivity
                                                                  to change is necessary for cognitive exploration and
Early change theories such as Lewin’s (1947) unfreeze-            collective mobilization to take place. Collective mobi-
change-refreeze model postulate that change                       lization requires significant emotional energy because
typically starts by arousing uncomfortable emotions               aggregate strong personal commitments are necessary
in recipients by disconfirming their previous beliefs             to fuel persistent efforts to overcome difficulties
and creating cognitive dissonance. This arouses agitated          inherent in strategic change. Learning provides the
feelings such as fear, anger, and discomfort. Schein              feedback loop from the interim outcomes of mobilization
(1996: 29) notes that “all forms of learning and change           actions to receptivity. Emotion supplies the primary
start with some form of dissatisfaction or frustration            feedback mechanism that alerts people that various
generated by data that disconfirm our expectations or             goals are not being achieved, and this arouses feelings
hopes.” Argyris (1990) suggests that cognitive                    of discomfort that stimulate review and problem solving.
disconfirmation is not sufficient to motivate people to           Effective learning processes allow people to detect
change, as people can defensively dismiss it as irrelevant,       early mistakes and rectify them before they become
blame the undesired outcome on others or fate, deny               insurmountable.
its validity, or deemphasize its importance. People may
even have to experience survival anxiety (feeling that            I empirically explored how employees’ specific emotions
if they do not change they will fail to meet their basic          affected their interpretations and behaviors to various
needs) or survival guilt (feeling that they have failed           strategic change projects. I highlight two emotion-


                                                              4
based findings: (1) the triggers of employees’ emotional            highly emotion arousing. Although some scholars may
responses to change agents’ actions could be personal               still believe in the ancient dichotomy between emotion
and organizational; (2) intense agitated emotions                   and reason, associating emotionality with
(anger, fear, discomfort) need to be juxtaposed/                    dysfunctionality, this study suggests that ignoring
attenuated by more quiescent emotional states (sym-                 emotions in strategic implementation may in fact be
pathy, hope, and comfort, respectively) to enable                   quite irrational and maladaptive for project managers
adaptive change and learning to take place.                         and strategists.

I analyzed six change projects launched by senior                   References
executives as part of a strategic change. Strategic                 Argyris. C. (1990). Overcoming organizational
change creates high uncertainty about employees’                        defenses. Boston, MA: Allyn & Bacon.
future roles; this could trigger fear for their personal            Huy, Q. (1999). Emotional Capability, Emotional
welfare, anger about violation of cherished personal                    Intelligence, and Radical Change. Academy of
and organizational values, or discomfort with radical                   Management Review, 24(2): 325-345.
change agents perceived as iconoclasts. These agitated              Izard, C. E., & Ackerman, B. P. (2000). Motivational,
emotions could hinder collective receptivity to change,                 organizational and regulatory functions of discrete
collective mobilization, and learning. To inject positive               emotions. In M. Lewis & J. M. Haviland-Jones
energy into a change effort, the more skillful change                   (Eds.) Handbook of emotions, 16: 253-264. New
                                                                        York, London: The Guilford Press.
agents aroused other emotions that did not necessarily
                                                                    Larsen, R. J., & Diener, E.E. (1992). Promises and
eliminate recipients’ agitation, but juxtapose their agitated
                                                                        problems with the circumplex model of emotion. In
feelings with more soothing types of emotion such as
                                                                        M. S. Clark (Ed.), Review of Personality and Social
sympathy, comfort, and hope. Soothing emotions allow                    Psychology: Emotion and Social Behavior, 114:
restoration of some peace of mind, which comes from                     25-59. Newbury Park, CA: Sage.
the belief that one has control over threats should they            Lazarus, R.S. 1993. From psychological stress to
arise. Medical research suggests that patients who                      emotions: A history of changing outlooks. Annual
have illusory beliefs that they can exercise partial                    Review Psychology, 44: 1-21.
control over their treatment enjoy important psycho-                Lewin, K. (1947). Group decision and social change. In
logical and physiological benefits. I identified six types              T.N. Newcomb and E.L. Hartley (Eds.), Readings
of emotion (anger, sympathy, fear, hope, comfort,                       in Social Psychology. Troy, MO: Holt, Rinehart &
discomfort) that shaped emotional filtering. The arousal                Winston.
of negative emotions alone is likely to be counterpro-              Schein, Edgar H. (1996). Kurt Lewin’s change theory in
ductive to change processes that require voluntary                      the field and in the classroom: Notes toward a model
cooperation, and led to the failure of some of the major                of managed learning. Systems Practice, 9: 27-47.
change projects. When recipients are receptive to
strategic change, the juxtaposition of positive emotions
with previously aroused negative emotions is likely to
enhance their receptivity, mobilization, and learning.               TEAM LEVEL ANTECEDENTS OF TEAM
                                                                       MEMBERS’ NETWORK BUILDING
Emotions have occupied a relatively narrow space in                      IN INNOVATION PROJECTS
the literature of strategy and organizational change.                                   Martin Hoegl
When mentioned, emotions in have often been associated                         Bocconi University of Milano
with resistance to change. This study tries to open the                          K. Praveen Parboteeah
black box of emotions and reveals the rich variety of                       University of Wisconsin, Whitewater
emotions and their differential effects on major change                    2002 ODC Best Practice Paper Award
outcomes. The findings contribute to an emerging line
of research that posits the primary importance of                   Social networks as a primary source of social capital,
emotions in work organizations. Emotion-based inter-                i.e., the productive potential that is derived from the
pretations and actions also deserve a central place in              structure of relations between individual actors
research on strategic realization because strategic                 (Coleman, 1988), play a particularly important role in
issues are by definition critical to the survival and               innovation and entrepreneurship (Ibarra, 1993; Yli-
welfare of organizations and their people, and are thus             Renko et al., 2001; Young et al., 2001). Problem-
                                                                    solving in complex and uncertain innovation projects

                                                                5
regularly involves project team members’ seeking and             of this project. The items refer to contacts within and
relying on team-external expertise often located in              outside the respondent’s immediate organizational unit,
other parts of the organization or in other organizational       including contacts outside the company. All items
entities such as suppliers or customers. Team members’           were formulated on the individual level, asking the
individual social networks provide transparency as to            respondents to relate to their own situation, rather than
the location of useful resources, which they utilize             the teams’ overall situation.
through established personal contacts. Such boundary
spanning (Ancona & Caldwell, 1990, 1992) into                    The team level independent variables were gathered
knowledge networks is critical as small project teams            through the assessment of multiple team members
often cannot include all the expertise needed for a              responding to items formulated explicitly on the team
particular project.                                              level. The team’s perception of the organizational
                                                                 networking climate was measured using three items
While a considerable amount of research addresses                referring to the accessibility of important contacts
the effects of social networks on individual, group, and         within the organization as well as the willingness of
organizational outcomes, Mehra et al. (2001) correctly           team-external colleagues to share knowledge and
point out that antecedents of individuals’ social                experiences. The team’s networking preference was
networks in organizations have not received much                 measured using two items referring to team members’
attention in the literature. In this study, we contribute        general motivation to collaborate with people from
to the literature by investigating how individuals build         other disciplines, functional areas, or organizations.
their social networks through their participation in             The team’s awareness of networking importance was
innovative team projects. Participation in such projects         assessed with four items pertaining to the team’s
provides the opportunity for team members to establish           perception of the necessity to interact with team-
new relationships with other team members (often                 external contacts to acquire knowledge, resources,
from other disciplines or organizational units) or team-         work contributions, or feedback. A three-item scale
external contacts. We argue that certain team level              was used to measure the team’s networking resources,
characteristics facilitate the individual’s acquisition of       including items that assessed the degree to which the
new and resourceful relationships. Specifically, we              team members had useful team-external contacts
regard team properties such as networking climate,               going into the project. Four items relating to pro-
networking resources, networking preference, and                 gramming skills, software skills, hardware skills, as
awareness of networking importance as positively                 well as expertise regarding the application field of the
associated with individuals’ network building, while a           software were used to assess the team’s technical
team’s technical competency and material resources               competency. The perceived adequacy of the team’s
are expected to be negatively related to individuals’            material and financial resources were measured using
network building. These proposed cross-level relation-           two items.
ships draw on the basic premise of system theory,
recognizing the individual as an element within the              Analysis & Results
context of his or her team. The team thereby represents
a social system (McGrath, 1986) embodying certain                The hypotheses of the present study require testing the
networking-related norms and resources affecting the             cross-level effects of team level properties (e.g., team
individual’s networking behaviors (Levine & Moreland,            network awareness, team network resources) on
1990). In testing our hypotheses, we are using hierar-           individual level outcomes (i.e., individual’s network
chical linear modeling (HLM) on data from 430 team               building). As such, we used hierarchical linear modeling
leaders and members of 145 software development                  (HLM), a statistical technique that is gaining increased
project teams from four different organizations.                 acceptance in the management literature (Hoffman,
                                                                 Griffin, & Gavin, 2000).
Measures
                                                                 We proposed that the team’s perception of network
Individuals’ network building was measured using four            climate be positively related to team members’
items assessing the individual respondents perception            network building. This hypothesis was supported as
of the extent to which the project enabled him or her to         evidenced by the significant positive coefficient (p = .05).
gain new useful personal contacts through the course             We further posited that the team’s preference for


                                                             6
networking and team’s awareness of the importance                of individuals’ social networks in organizations. We
of networks are both positively related to individual            hope that this study sparks increased research attention
network building. Both hypotheses were also supported            pertaining to the determinants of social networks,
(p = .00 and p = .00 respectively). We hypothesized              moving this field of research “backward” on the causal
that the team’s perception of the adequacy of their              chain.
technical competency is negatively related to
individual’s network building and that the team’s                References
perception of the adequacy of their material resources           Ancona, D.G.; Caldwell, D.F. (1990). Beyond boundary
is also negatively related to individual network building.           spanning: Managing external dependence in product
The significant negative coefficients endorse both                   development teams. The Journal of High Technology
hypotheses (p = .00 and p = .09 respectively). Finally,              Management Research, 1: 119-135.
while showing a strong bivariate correlation (r = .52)           Ancona, D.G.; Caldwell, D.F. (1992). Bridging the
with the team level aggregate of individuals’ network                boundary: External activity and performance in
building, a team’s networking resources did not show                 organizational teams. Administrative Science
a significant influence on individual team members’                  Quarterly, 37: 634-665.
ability to build their social networks.                          Coleman, J.S. (1988). Social capital in the creation of
                                                                     human capital. American Journal of Sociology, 94:
                                                                     S95-S120.
Discussion
                                                                 Hofmann, D.A., Griffin, M.A. & Gavin, M.B. (2000).
                                                                     The application of hierarchical linear modeling to
As previous research has focused exclusively on the                  organizational research. In K.J Klein & S.W.J.
effects of social networks in organizations (Ibarra,                 Kozlowski (Eds), Multilevel theory, research,
1993; Yli-Renko et al., 2001; Young et al., 2001), our               methods in organizations: Foundations, extensions,
study contributes to the literature by addressing critical           and new directions: 465-211. San Francisco: Jossey-
team level antecedents of individuals’ network building.             Bass.
We found that 37% of the variance in individuals’                Ibarra, H. (1993). Network centrality, power, and
network building lies between teams, making the focus                innovation involvement: Determinants of technical
on team level determinants a quite powerful one.                     and administrative roles. Academy of Management
                                                                     Journal, 36: 471-501.
The results of this empirical investigation offer lessons        Levine, J.M.; Moreland, R.L. (1990). Progress in small
to innovating organizations on how to foster the devel-              group research. Annual Review of Psychology, 41:
opment of individual social networks through team                    585-634.
projects. First, team-based innovative organizations             McGrath, J.E. (1986). Studying groups at work: Ten
need to stress to their members the importance of                    critical needs for theory and practice. In: Goodman,
social networks to the sustainable effectiveness and                 Paul S.; and Associates (Eds.), Designing effective
efficiency of the organization. Team leaders and team                work groups, (pp. 362-391). San Francisco, Cali-
members must be made aware that boundary spanning                    fornia: Jossey-Bass.
is important to both the current project as well as its          Mehra, A., Kilduff, M., & Brass, D.J. (2001). The social
                                                                     network of high and low self-monitors: Implications
network-building element as an enabling condition for
                                                                     for workplace performance. Administrative Science
future innovation projects. Second, companies should
                                                                     Quarterly, 46: 121-146.
foster a networking climate on the organizational
                                                                 Yli-Renko, H.; Autio, E.; Sapienza, H.J. (2001). Social
level. The findings from this research indicate the                  capital, knowledge acquisition, and knowledge
importance of norms and standards pertaining to the                  exploitation in young technology-based firms.
willingness to share knowledge and expertise within                  Strategic Management Journal, 22: 587-613.
the organization. While systems and processes must               Young, G.J.; Charns, M.P.; Shortell, S.M. (2001). Top
be in place to guide individuals looking for contacts with           manager and network effects on the adoption of
a certain expertise or skill, people providing their                 innovative management practices: A study of TQM
knowledge to other colleagues should be recognized                   in a public hospital system. Strategic Management
for these efforts.                                                   Journal, 22: 935-951.

This research has provided encouraging results as to
the effect of team level properties on the development


                                                             7
TRANSFORMATIVE INTERACTIONS:                                    Change is characterized as a process that unfolds over
    RELATIONAL PRINCIPLES THAT                                    time, revealing periods of greater and lesser instability, in
      IMPACT THE QUALITY OF                                       which the restlessness of a system is an instinctive
     SELF-ORGANIZING CHANGE                                       response toward survival in a continually changing
                                                                  environment. Organizations are described as complex
                Mary A. Ferdig                                    adaptive human systems that can be neither controlled
              James D. Ludema                                     nor predicted, but for which order will emerge on its
             Benedictine University                               own through diverse interconnectivity among system
       2002 ODC Best Student Paper Award                          members. Transformative change occurs in the agitated
Currently, 103 nuclear power reactors are licensed to             state of nonlinear disequilibrium, referred to by some
operate on 40 commercial utility sites in 31 states               as the edge of chaos.
throughout the US. Three major constituencies hold
high stakes in the production of nuclear power: power             In a unique and significant application of complexity
plant owner-operators, US Nuclear Regulatory                      theory to organization change, Stacey et al (2000)
Commission (NRC), and the public, represented by                  propose that it is a mistake to think of organizations
Congress and various public watchdog organizations.               as systems. Systems thinking assumes a formative
In 1998, the NRC launched an expansive change                     teleology in which organizations seek predetermined
initiative in collaboration with power plant owner-               outcomes. This view tends to objectify human relation-
operators and the public to establish a revised approach          ship and eclipse the possibility of novelty in human
to regulatory oversight. The change process was far-              interaction. It is more appropriate, they claim, to talk
reaching and complex. It lasted three years, included             about organizing as complex responsive processes
hundreds of people from dozens of organizations,                  (CRP): highly complex, ongoing processes of people
involved thousands of hours of negotiation, dialogue,             relating to each other through everyday conversation.
and debate. The result is a radically overhauled reactor          This perspective assumes a transformative teleology
oversight process (ROP) that will have a significant              in which people move toward an unknown future in
impact on production and regulation of nuclear power              order to realize both continuity and transformation of
for decades to come.                                              individual and collective identities. Order emerges out
                                                                  of disorder through a spontaneous process of self-
In this paper we study the emergence of the new ROP               organizing change in the absence of any blueprint.
from the perspective of complexity theory. We examine
the qualities of relationship that characterized the              A CRP perspective places conversation at the center
interactions of those involved in creating the new ROP            of organizational change. People accomplish sophisti-
over a 15-month period and identify five relational               cated cooperative action by forming intentions, making
principles that informed their interactions: the spirits of       choices, and acting in conversation with each other as
freedom, inclusion, inquiry, spontaneity and possibility.         they go about their daily work lives. Through these
These principles are contrasted with previous ways of             conversations, people continuously construct and
interacting based on de facto principles of unilateralism,        change their organizations (Berger & Luckmann, 1966;
indifference, inflexibility, certainty, and immutability.         Gergen, 1994, 1999; Ford & Ford, 1995). Scholars
We argue that participants’ interaction in accordance             and practitioners are encouraged to refocus attention,
with these principles increased their levels of inter-            not on what members of an organization should be
connectivity, shared identity, and collective capacity,           doing, but on the qualities of relationship that emerge
which, in turn, contributed to self-organizing movement           in the process of self-organizing.
toward emergent solutions (Lichtenstein, 2000;
Moore, 1996).                                                     Methodology

Theoretical Perspectives                                          Two questions guided this study. First, what were the
                                                                  patterns of conversation that served to mobilize energy
A growing number of theorists are turning to complexity           for action in the new ROP? Second, how were these
theory to explain the dynamics of organizational change           patterns different from and similar to the old ROP?
(Dooley & Van de Ven, 1999; Chen & Van de Ven,                    We used a grounded theory methodology (Glaser &
1996; Kauffman, 1995; Prigogine, 1996; Stacey, 1996).             Strauss, 1967; Strauss & Corbin, 1998) to answer these


                                                              8
questions. Data sources included open-ended inter-               (Kauffman, 1995; Stacey, 2002) among the regulators,
views, meeting observation, informal conversations,              industry leaders and public activists that bifurcations
and analysis of transcripts, reports, memos, letters, and        (Prigogine, 1996), or transformative shifts in interpretive
speeches. Data integrity was achieved through deep               schemata (Bartunek, 1993), began to occur.
exploration of participants’ experiences (Firestone,
1993), multiple-source fidelity checks (Lincoln &                Spirit of Inquiry
Guba, 1985; Miles & Huberman, 1994), and persistent
observation (Halpern, 1983).                                     Participants created a container for joint exploration
                                                                 and discovery through an attitude of inquiry. Instead
Relational Qualities That Enable                                 of “knowing the answers” they sought to understand
Self-Organizing Change                                           what was going on and construct meaningful outcomes.
                                                                 Some questions were generative and open-ended.
Participants reported that interacting with their coun-          Others uncovered implications or hidden patterns,
terparts (plant owner-operators, regulators and/or               clarified issues, and validated understanding, tested
public activists) according to the five principles               assumptions and invited provisional thinking.
identified in this study (freedom, inclusion, inquiry,
spontaneity and possibility) enabled them to move                Spirit of Spontaneity
toward an emerging ROP agreement that met both
individual and collective needs. The data also revealed          A spirit of spontaneity reflected the unfolding and
paradoxical patterns of interactive behavior. With               generative nature of self-organizing change. Openness
freedom came understood parameters of control;                   to spontaneity encouraged cooperation among people
a spirit of inclusion contained elements of exclusion;           who previously stood on opposite side of the issues. It
a spirit of inquiry included acknowledgement of                  shifted the relational dynamic from one of defensive-
undisputed certainties; spontaneous exploration (spon-           ness and “holding information close to the chest” to
taneity) was accompanied by careful planning; and                one of collaboration and co-creation (Shotter, 1993).
creative possibilities were actively sought within               The emerging ROP was often referred to as “a living
regulatory parameters. Participants demonstrated a               document.”
relational capacity for dealing with paradoxical tensions,
which contributed to and creative potential for self-            Spirit of Possibility
organizing change (Smith & Berg, 1987; Stacey, 1996).
                                                                 Participant conversations revealed a belief among
Spirit of Freedom                                                participants that they could figure out an optimal solution
                                                                 together. Working toward the potentiality of what could
Participants chose whether or not and how to engage              be (Ludema et al., 1997) created energy for collective
in the process of change. Freedom to join in and to              movement toward agreement. As regulatory, industry,
“say what you think” gave depth and meaning to                   and public stakeholders began to connect relationally,
emerging outcomes. Participants described experi-                they discovered a unifying goal – joint responsibility
ences that were both “exhilarating” and “risky as hell”          for ensuring safe production of nuclear energy in the
as they “put themselves on the line” to create something         US – that transcended the potential for conflicting
“new and better.” A sense of freedom enabled people              goals of each constituency.
to develop credibility with one another (including
former adversaries) in the form of trustworthiness,              Discussion and Implications
competence and goodwill (Campbell, 1982).
                                                                 The relational principles identified in this study formed
Spirit of Inclusion                                              the interactive container within which transformative
                                                                 conversations of self-organizing change occurred in
Participants demonstrated a willingness to include diverse       the complex nuclear industry environment. The quality
stakeholders in the conversations, thus expanding                and quantity of participants’ interactions contributed to
connectivity and the rich variability of perspectives            the robustness of three domains of self-organizing
that contribute to the quality of self-organizing change         activity described in the complexity literature as identity
(Stacey et al. 2000). It was in “heat of differences”            (sometimes referred to as self-reference), connectivity,


                                                             9
and capacity (Lichtenstein, 2000; Moore, 1996; Stacey,
1996), which, in turn, influenced the degree and quality
of transformative, self-organizing change.                      Despite such strong complementary core competencies,
                                                                the cultural diversity of the Alliance poses a special
References available upon request from Mary Ferdig              challenge. While the development of trust, norms,
(ferdiginc@aol.com).                                            goodwill, and shared culture is a vital challenge in every
                                                                strategic alliance, it is even more so in such a
                                                                transcultural alliance. Building trust and goodwill as
                                                                strategic partners’ gain mutual confidence is defined
                                                                as “relational capital” (Kale, 1998). The development
    THE EFFICACY OF APPRECIATIVE                                of relational capital will be critical to the success of
  INQUIRY IN BUILDING RELATIONAL                                this Alliance.
     CAPITAL IN A TRANSCULTURAL
                                                                Appreciative inquiry (Cooperrider, 1986) was selected
        STRATEGIC ALLIANCE
                                                                as an intervention strategy to help build the MAHYCO
     Monty G. Miller, Performance Solutions                     and Monsanto Alliance. Curan and Work claim that
             Stephen P. Fitzgerald,                             “appreciative inquiry [has the] capacity to build trust,
       Collaborative Capacity Consulting                        to collect information, to create readiness for change,
     Joanne C. Preston, Oxnard, California                      to raise cultural awareness, and to enhance the web of
  Kenneth L. Murrell, University of West Florida                relationships” (1998: 254). Therefore, it was anticipated
    2002 ODC Best Interactive Paper Award                       that Ai would help build relational capital in the
Strategic alliances have become popular collaborative           Alliance.
forms because they enable organizations to enter new
markets (geographical or technical) with a significantly        Research Approach
reduced ramp-up time. Alliance partners may also share
their core competencies (e.g., R&D, manufacturing,              Two alliance-building interventions were conducted in
marketing, technology) thereby enabling the partners            Jalna, Maharashtra, India in December 1998 to explore
to reap the benefits of each other’s proprietary assets.        the following research question (as well as others that
However, strategic alliances are notoriously difficult          are not reported in this brief paper): “How can Ai and
to implement successfully (e.g., Doz, 1996; Fedor               other group formation concepts be used to create a
& Werther Jr., 1996; Ghosh, 1996; Kanter, 1994;                 sample intervention to support the forming of a
Kumar 1998).                                                    transcultural strategic alliance?”

                                                                The first alliance-building intervention held on
Organization development and change technologies
                                                                December 7-8, 1998 was conducted in an Ai format
(OD), including Appreciative Inquiry (Ai), are uniquely
                                                                with nearly an equal number of R&D people from
suited to deal effectively with these challenges, yet
                                                                both partner organizations; it is referred to as the Ai
the literature provides limited guidance on effective
                                                                session. The second session held on December 9-10,
methods or interventions. Therefore this case contrib-
                                                                1998 was designed in a more traditional, presentational
utes to the strategic alliance and OD literatures.
                                                                meeting format in order to meet the need expressed
The Focal Alliance                                              by MAHYCOs top management to learn about
                                                                Monsanto first. The majority of participants in this
The partners in the focal alliance (the Alliance) are           management education (ME) session were top
MAHYCO (Maharashtra Hybrid Seeds Company                        MAHYCO managers. Ten of the thirty-four participants
Limited, pronounced “may-hé-co”), the leading                   (29%) had also participated in the Ai session.
producer of hybrid seed in India, and Monsanto, the
leading global developer of transgenic plants using             The Efficacy Of Ai In Building Relational Capital
biotechnology. The Alliance offers a complementary
                                                                In an inter-rater reliability analysis of participants’
and value-added relationship for both partners. The
                                                                narrative responses to post-session questionnaires, Ai
Alliance can apply Monsanto’s biotechnological know-
                                                                participants were found to report significantly greater
how to MAHYCO’s germ plasm to create plants that
                                                                increases in levels of relationship building and collabo-
will support the food production and fiber needs of
South Asia.
                                                           10
ration (p<.05) than did ME participants both immedi-             and Dream phases, the exercise: “Keep It, Stop It,
ately after the sessions and four months later.                  and Start It” can be incorporated in a Dialogue phase,
Participants in both interventions reported growth in            as appropriate (e.g., Licktenstein, 1996; Golembiewski,
their understanding of their partner’s business and their        1998; Bunker and Alban, 1997). In subsequent Ai
leadership’s expectations for the Alliance. Further, the         sessions, “Keep It, Stop It, and Start It” was found to
Alliance achieved a major milestone in March 2002                be a constructive method because it helped team
when the government of India approved registration               members share their perspectives on everything from
for the Alliance’s insect-protected hybrid cottonseed.           proposed initiatives to team dynamics. It enabled
                                                                 them to air negative perspectives, continue positives, and
Suggested Modifications To The Basic Ai 4D                       encourage the use of unrecognized strengths or latent
Cycle                                                            competencies.

The designs of the Ai and ME sessions were analyzed              Although this is a case study and the findings are not
to identify the optimal methods used in both sessions            easily generalizable, they are nevertheless significant,
through the feedback of participants, observational              particularly given the dearth of research on the appli-
protocol, and researcher’s notes. As a result, modifi-           cation of OD to building sustainable transcultural
cations were made to Ai protocols, two of which are              alliances. Sample interventions derived from the
described next.                                                  observations of the researcher and Learning Manager
                                                                 give future alliance-builders outlines for planning
First, the standard 4-D Ai process was modified, from            interventions (detailed plans may be found in Miller,
“Discovery, Dream, Design, and Destiny,” to “Discovery,          2000).
Dream, Dialogue, and Design,” in order to meet the
client’s needs. The Dialogue phase was added to                  Ai and Alliance-Building
support participants in developing consensus around
the creative options they had generated during the               Overall, Ai provided stronger support for alliance
Dream phase. That consensus facilitated their ability            building than did the ME intervention (Miller, Fitzgerald,
to co-construct an action plan during the design phase.          Preston, and Murrell, 2002). Ai helps builds social
Closing the session by emphasizing design and action             bridges. According to Doz and Hamel (1998), “the
plans encouraged the work teams to solidify their                most effective bridges we have observed were also
project plans. Four months later, nearly 75% of the Ai           social bridges, involving managers from the partners
participants indicated on the follow-up questionnaire            in non-professional activities and allowing them to
that they had made progress on their projects.                   understand and experience each other’s culture and
                                                                 explicit norms and values” (p. 137). In this case,
A second suggested modification to the Ai design for             Ai as modified provided not only a means for alliance
alliance-building sessions is the inclusion of a method          partners to learn their colleagues’ values and beliefs,
to constructively air challenges and issues that face            and to develop an understanding of the Alliance’s core
members of alliances and alliance teams, particularly            competencies, it also provided opportunities to cope
once past the formation stage. Robert Golembiewski               with issues obstructing the relationship, and built positive
(1998) argues that Ai does not have the ability to deal          energy in the process. Interventions based on Ai have
with negative issues that an organization is facing, and         broad potential for helping strategic alliances build
Blair (1998) suggests that negative information can              relational capital to encourage sustainable transcultural
be used constructively in an Ai session. Further, the            collaboration so vital for successful organizations in
Monsanto India Learning Manager pointed out that                 the 21st century.
an intense dialogue and breakthrough occurred in the
ME session following “storming” among participants               References available from the authors.
over the concept of “professionalism” in Indian family
business.

That event and observation led to the inclusion of an
optional method to air issues in subsequent Ai alliance-                 Season’s Greetings
building sessions. After participants have developed a
deeper understanding of each other via the Discovery

                                                            11
Please Address All Correspondence to:


R. Wayne Boss
Academy of Management ODC Newsletter
Graduate School of Business Administration
Campus Box 419
University of Colorado
Boulder, Colorado 80309
(303) 492-8488




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Newsletter may be published in the next issue, so please indicate if you prefer your comments to be withheld. After
completing your comments, please detach this page and return it to the editor. (Please Print All Comments.)

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1.      Do you have any comments that you would like to share with the Editor (comments on articles from the last
        issue, comments on this issue, suggestions, etc.?)
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                                       NEWS ABOUT MEMBERS
2.      Is there any important information about you or a colleague that you would like to have appear in the next issue?
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                                               PUBLICATIONS
3.      Please list below any recent or forthcoming publications by you or a colleague.(Indicate full citation.)
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                                                          12

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Od Prt2 205

  • 1. Division Newsletter R.Wayne Boss, Editor Winter 2003 Published by the ODC Division CALL FOR PAPERS EMOTIONAL FILTERING Gretchen M. Spreitzer IN STRATEGIC CHANGE Program Chairperson Quy Nguyen Huy This call outlines some of the requirements for success- INSEAD fully submitting papers and symposia for review for 2002 ODC Best Paper Award the Academy of Management National Conference in Strategic change may be infrequent in organizational Seattle, Washington, August 1-6, 2003. The deadline life, but they are consequential to an organization’s life for submissions is January 6, 2003 at 5 p.m. chances: realizing strategic change is difficult, and underperformance and mortality risks are significant. The theme for this year’s conference is “Democracy in Fundamental change in personnel, strategy, organiza- a Knowledge Economy.” This certainly is a timely and tional identity, or work roles often triggers intense relevant theme from a global and national perspective. emotions. Emotions in turn affect how different groups It envelops some of our core values as organizational interpret a proposed change and how they behave change and development scholars and practitioners. (Huy, 1999). But there has been little systematic, This theme invites us all to contemplate, question, empirical research on the interaction of multiple groups theorize, and imagine how organizations can be tools during radical change. for democracy and involvement. Few empirical studies have systematically explored in Seattle will be a wonderful venue for the Academy of real time the nature and role of emotional processing in Management’s 2003 annual meeting. It is an amalgam strategic change. I investigated what specific emotions of cultures East and West in a setting of striking natural hinder or facilitate the implementation of strategic beauty. It is also the site of a dramatic clash between change. Based on the findings of a three-year field people and organizations during 1999’s WTO meetings. study of a large firm undergoing radical change as it Seattle invites attention to many issues that resonate in the was subject to deregulation and global competition, I Academy community including, the natural environment, build a theory by describing how recipient employees sustainability, quality of life, technology, innovation, emotionally responded to executives’ actions. Emotional political action and social change, to name a few. I filtering is defined as change recipients’ emotionally encourage you to visit the Academy web page to learn (See Huy, page 4) more about this year’s theme. The website address is: http://myaom.pace.edu/AnnualMeeting/2003. Table of Contents Submission Process Gretchen M. Spreitzer, Call for Papers ................................... 1 Quy Nguyen Huy, Emotional Filtering in Strategic Change . 1 I cannot over-emphasize the importance of reading ODC Division Executive Committee 2002-2003 .................. 2 and following the submission guidelines in the All New Doctoral Student Consortium .......................................... 3 Academy Newsletter or the Academy Website. Pay Martin Hoegl & K. Praveen Parboteeah, Team Level particular attention to the requirements specific to the Antecdents of Team Members’ Network Building in ODC division. Innovation Projects ................................................................... 5 Mary A. Ferdig & James D. Ludema, Transformative Interactions: Relational Principles That Impact the Quality As in past years, there are two primary stages to the of Self-Organizing Change ........................................................ 8 submission process. In the first state, you must submit Monty G. Miller, Stephen P. Fitzgerald, Joanne C. Preston your title page information, abstract, and affiliation to & Kenneth L. Murrell, The Efficacy of Appreciative the Academy Website in order to receive an electronic Inquiry in Building Relational Capital in a Transcultural Strategic Alliance ...................................................................... 1 0 submission number. This number is critical, as it will Feedback to the Editor ............................................................ 1 2 (See Spreitzer,, page 2)
  • 2. (From Spreitzer, page 1) ODC DIVISION EXECUTIVE appear on all of your submissions and correspondence. COMMITTEE 2002-2003 Second, authors must send the electronic version of Christopher G. Worley, Division Chairperson their paper or symposium to me, the ODC program Pepperdine University chair, at ODCAOM@umich.edu. This year, the ODC Phone: 949/488-7978 Fax: 949/488-0157 Division requires electronic submission via email attach- Email: chris.worley@pepperdine.edu ment. Electronic paper documents must be ready for Peter F. Sorensen, Jr., Past Division Chairperson blind review. A diskette will be accepted only if authors Benedictine University do not have access to email to save time, money, and Phone: 630/829-6222 Fax: 630/829-6211 Email: psorensen@ben.edu the environment. For electronic submission via diskette see the AOM’s “Instructions for Authors Who Do Not Gretchen Spreitzer, Program Chairperson University of Michigan Have Electronic Mail.” In either case, submissions Phone: 734/936-2835 Fax: 734/936-0282 (both papers and symposia) must be contained in a Email: spreitz@umich.edu single Microsoft Word (version 6.0 or higher) document. George Roth, Pre-Conference Chair & Program Chair Elect Your submission will be acknowledged electronically MIT upon receipt. For more information on the require- Phone: 617/253-8407 Fax: 617/252-1425 ments for preparing your submission, I strongly Email: groth@mit.edu encourage you to consult the Academy website for Ram Tenkasi, Division Representative specifics (please see “Electronic Format Guidelines”). Benedictine University Phone: 630/829-6212 Email: tenkasi@email.msn.com Division Awards Hillary Bradbury, Representative-at-Large (3-year term) Case Western Reserve University Four externally-sponsored recognition awards of Phone: 216/368-0700 Fax: 216/368-4785 $500 each will be given for the following: the best Email: hxb22@weatherhead.cwru.edu competitive paper; the best paper authored by a Karen S. Whelan, Representative-at-Large (2-year term) graduate student or students; the best interactive Texas Wesleyan University paper, and the best paper linking theory to practice. Phone: 817/531-4835 Papers authored by graduate students should be clearly Email: whelanbk@txwes.edu identified as such at the time of submission. Raymond Saner, International Representative-at-Large (2-year term) Centre for Socio-Eco-Nomic Development (CSEND) Don’t Forget the Rule of Three! Phone: +41-22-906-1720 Fax: +41-22-738-1737 Email: saneryiu@csend.org No one may submit more than three things to an Phillip H. Mirvis, Executive Scholar-Practitioner Academy Meeting (papers and/or symposium), or Phone: 301/652-4600 Fax: 301/774-7377 Email: pmirv@aol.com appear in more than three sessions during the refereed scholarly program from Sunday noon to Wednesday Robert T. Golembiewski, Academy Council University of Georgia noon. Appearances include roles as presenters, co- Phone: 706/542-2970 Fax: 706/542-4421 authors, chairs, discussants and/or facilitators. Email: rtgolem@uga.edu However, the following listings in the program are Eric A. Goodman, Web Page Master exempted from the Rule of Three: Officer roles, Colorado Technical University Division General sessions (Welcome, Business, Social, Phone: 719/590-6772 Fax: 719/598-3740 Free Session), Caucuses, and Professional Development Email: egoodman@coloradotech.edu Workshops. Also, if a person appears twice in a single George Hay, Student Representative symposium (e.g., chair and author) it only counts as Benedictine University/McDonald’s Corp. one appearance. IMPORTANT: Include in your Email: george.hay@mcd.com message a statement that you and any co-authors have R. Wayne Boss, Newsletter Editor read and are not violating the “Rule of Three.” University of Colorado Phone: 303/492-8488 Fax: 303/494-1771 Email: wayne.boss@colorado.edu I look forward to receiving your submission and seeing you in Seattle in August! If you have any questions, please contact me at ODCAOM@umich.edu. 2
  • 3. NEW DOCTORAL STUDENT collaboration and networking, teaching excellence, and CONSORTIUM much more. Saturday, August 2, 2003 The New Doctoral Student Consortium (NDSC) is Networking part of the Academy of Management’s commitment to the professional development of its student members, Throughout the one-day consortium you will engage and its prospective members. NDSC is designed by in activities to help you identify possible research doctoral students for doctoral students and is aimed at partners from across the USA and the world. You students in their first or second year of a doctoral will interact with esteemed presenters through question program. We also strongly encourage any prospective and answer sessions. You will also have the unique doctoral program candidates to participate. This opportunity to meet and discuss publishing issues consortium is designed to address the real life issues through coffee time with editors of top tier journals that exist for doctoral students from getting started on like Organization Science, Academy of Management your thesis all the way through the publishing process. Journal, Academy of Management Review, and other NDSC is your opportunity to interact, discuss, and high quality publications. learn from the Academy’s leading members and the world’s leading academics. The NDSC will be held in Seattle, Washington, on The NDSC is a consistent presence at the Academy’s Saturday, August 2, 2003 from 8:20am to 5:30pm. Light annual conference and has become a premier pre- refreshments and lunch will be served during the conference event. There are several aspects of the consortium and an “All Doctoral Student Reception” NDSC that have made it a “not to be missed event” will also be held following the consortium. including: The NDSC is becoming a major pre-conference event The People for doctoral students! Attendance is limited to 150 participants. Registration will open in March 2003 and By attending this year’s consortium, you will meet you are strongly encouraged to register early through some of the Academy’s most distinguished members our on-line registration at www.aom.pace.edu/ndsc. and academicians, as well as other doctoral students For more information, please contact Stephanie Ward, who also share similar experiences and interests! At NDSC Chair of Marketing and Registration, at the 2003 NDSC you will meet and speak to world sward@uh.edu. leaders in management research, theory, practice and education, including David Boje, Stewart Clegg, Thomas Cummings, Jeffrey Edwards, Peter Frost, Glen Kreiner, Peter Lane, Tom Lee, Ed Locke, Denise Rousseau, Terri Scandura, Claudia Bird Schoonhoven, Happy Larry Williams, Ian Williamson, Amy Wrzesniewski, and others. Career Development Holidays! When you begin a doctoral program you begin your career. This year’s consortium includes speakers and topics focused on helping you understand what your role can be in the academic world of research, pub- lishing, and teaching. The topics at the 2003 NDSC will include: managing life as a student, life as a “minority” student, the power and politics of doctoral programs, starting your thesis, performing exemplary research – both quantitative and qualitative – publishing, 3
  • 4. (From Huy, page 1) to achieve certain ideals they set for themselves) charged interpretations of agents’ actions that materially (Schein, 1996). These agitated emotions act as a force influence recipients’ cognitive and behavioral responses that causes disequilibrium in human systems and to the proposed change. I show how emotional filtering induces receptivity to change. Yet, the same agitated differentially affected the outcomes of major change emotions could induce among recipients learning projects and suggest that emotions played a critical deficiencies such as shallow cognitive processing, role in determining the outcomes of such change. I thus deficient attention, or reduced memory span. Too invite researchers to devote more attention to specific intense and too long a state of agitation could be emotional states as important proximal, mediating dysfunctional to voluntary cooperation, collective mobili- outcomes that energize the often-protracted process zation and learning from interim change outcomes. of implementing ambitious change. The effectiveness of change actions could be assessed earlier through Conceptual research on emotion and change has the specific emotional states that these actions are hypothesized how emotional states could affect the intended to arouse. I first discuss the conceptual foun- various dynamics of organizational change. Huy (1999) dations linking emotions and strategic change. suggests that strategic change could be construed as the interplay among at least three change dynamics: Lazarus’ (1993) emotion theory suggests individuals receptivity, collective mobilization, and learning. Recep- go through a two-stage appraisal process. People tivity as a process shapes and is shaped by the evaluate the significance of a new event in relation to continuous sensemaking and sensegiving activities their own goals and concerns. If they appraise the conducted among various members of the organization. potential consequence as beneficial, pleasant feelings People seek to understand the meaning of the proposed are aroused. They experience unpleasant feelings if change and to influence each other toward a preferred they appraise the consequence as potentially harmful. redefinition of the organizational reality. A fundamental I use the circumplex model of emotions (Larsen & change in core values and personal welfare often Diener, 1992) to explore the wide range of emotions triggers strong emotional responses, which will affect that recipients may experience during radical change. how the change is construed and the nature of ensuing According to this model, emotions share two basic actions. Receptivity to change can be characterized dimensions. One dimension reflects hedonic valence by varying gradations of willingness to accept the (pleasant-unpleasant), while the other refers to intensity proposed change, and these can range from resigned, of arousal or action readiness (high versus low passive acceptance to enthusiastic endorsement. activation). Together, the four bipolar dimensions Resistance to change represents the other face of produce eight emotion categories that capture almost receptivity and can vary from sabotage to quiet cyni- the full range of emotional experiences among people. cism and withdrawal behavior. Some degree of receptivity to change is necessary for cognitive exploration and Early change theories such as Lewin’s (1947) unfreeze- collective mobilization to take place. Collective mobi- change-refreeze model postulate that change lization requires significant emotional energy because typically starts by arousing uncomfortable emotions aggregate strong personal commitments are necessary in recipients by disconfirming their previous beliefs to fuel persistent efforts to overcome difficulties and creating cognitive dissonance. This arouses agitated inherent in strategic change. Learning provides the feelings such as fear, anger, and discomfort. Schein feedback loop from the interim outcomes of mobilization (1996: 29) notes that “all forms of learning and change actions to receptivity. Emotion supplies the primary start with some form of dissatisfaction or frustration feedback mechanism that alerts people that various generated by data that disconfirm our expectations or goals are not being achieved, and this arouses feelings hopes.” Argyris (1990) suggests that cognitive of discomfort that stimulate review and problem solving. disconfirmation is not sufficient to motivate people to Effective learning processes allow people to detect change, as people can defensively dismiss it as irrelevant, early mistakes and rectify them before they become blame the undesired outcome on others or fate, deny insurmountable. its validity, or deemphasize its importance. People may even have to experience survival anxiety (feeling that I empirically explored how employees’ specific emotions if they do not change they will fail to meet their basic affected their interpretations and behaviors to various needs) or survival guilt (feeling that they have failed strategic change projects. I highlight two emotion- 4
  • 5. based findings: (1) the triggers of employees’ emotional highly emotion arousing. Although some scholars may responses to change agents’ actions could be personal still believe in the ancient dichotomy between emotion and organizational; (2) intense agitated emotions and reason, associating emotionality with (anger, fear, discomfort) need to be juxtaposed/ dysfunctionality, this study suggests that ignoring attenuated by more quiescent emotional states (sym- emotions in strategic implementation may in fact be pathy, hope, and comfort, respectively) to enable quite irrational and maladaptive for project managers adaptive change and learning to take place. and strategists. I analyzed six change projects launched by senior References executives as part of a strategic change. Strategic Argyris. C. (1990). Overcoming organizational change creates high uncertainty about employees’ defenses. Boston, MA: Allyn & Bacon. future roles; this could trigger fear for their personal Huy, Q. (1999). Emotional Capability, Emotional welfare, anger about violation of cherished personal Intelligence, and Radical Change. Academy of and organizational values, or discomfort with radical Management Review, 24(2): 325-345. change agents perceived as iconoclasts. These agitated Izard, C. E., & Ackerman, B. P. (2000). Motivational, emotions could hinder collective receptivity to change, organizational and regulatory functions of discrete collective mobilization, and learning. To inject positive emotions. In M. Lewis & J. M. Haviland-Jones energy into a change effort, the more skillful change (Eds.) Handbook of emotions, 16: 253-264. New York, London: The Guilford Press. agents aroused other emotions that did not necessarily Larsen, R. J., & Diener, E.E. (1992). Promises and eliminate recipients’ agitation, but juxtapose their agitated problems with the circumplex model of emotion. In feelings with more soothing types of emotion such as M. S. Clark (Ed.), Review of Personality and Social sympathy, comfort, and hope. Soothing emotions allow Psychology: Emotion and Social Behavior, 114: restoration of some peace of mind, which comes from 25-59. Newbury Park, CA: Sage. the belief that one has control over threats should they Lazarus, R.S. 1993. From psychological stress to arise. Medical research suggests that patients who emotions: A history of changing outlooks. Annual have illusory beliefs that they can exercise partial Review Psychology, 44: 1-21. control over their treatment enjoy important psycho- Lewin, K. (1947). Group decision and social change. In logical and physiological benefits. I identified six types T.N. Newcomb and E.L. Hartley (Eds.), Readings of emotion (anger, sympathy, fear, hope, comfort, in Social Psychology. Troy, MO: Holt, Rinehart & discomfort) that shaped emotional filtering. The arousal Winston. of negative emotions alone is likely to be counterpro- Schein, Edgar H. (1996). Kurt Lewin’s change theory in ductive to change processes that require voluntary the field and in the classroom: Notes toward a model cooperation, and led to the failure of some of the major of managed learning. Systems Practice, 9: 27-47. change projects. When recipients are receptive to strategic change, the juxtaposition of positive emotions with previously aroused negative emotions is likely to enhance their receptivity, mobilization, and learning. TEAM LEVEL ANTECEDENTS OF TEAM MEMBERS’ NETWORK BUILDING Emotions have occupied a relatively narrow space in IN INNOVATION PROJECTS the literature of strategy and organizational change. Martin Hoegl When mentioned, emotions in have often been associated Bocconi University of Milano with resistance to change. This study tries to open the K. Praveen Parboteeah black box of emotions and reveals the rich variety of University of Wisconsin, Whitewater emotions and their differential effects on major change 2002 ODC Best Practice Paper Award outcomes. The findings contribute to an emerging line of research that posits the primary importance of Social networks as a primary source of social capital, emotions in work organizations. Emotion-based inter- i.e., the productive potential that is derived from the pretations and actions also deserve a central place in structure of relations between individual actors research on strategic realization because strategic (Coleman, 1988), play a particularly important role in issues are by definition critical to the survival and innovation and entrepreneurship (Ibarra, 1993; Yli- welfare of organizations and their people, and are thus Renko et al., 2001; Young et al., 2001). Problem- solving in complex and uncertain innovation projects 5
  • 6. regularly involves project team members’ seeking and of this project. The items refer to contacts within and relying on team-external expertise often located in outside the respondent’s immediate organizational unit, other parts of the organization or in other organizational including contacts outside the company. All items entities such as suppliers or customers. Team members’ were formulated on the individual level, asking the individual social networks provide transparency as to respondents to relate to their own situation, rather than the location of useful resources, which they utilize the teams’ overall situation. through established personal contacts. Such boundary spanning (Ancona & Caldwell, 1990, 1992) into The team level independent variables were gathered knowledge networks is critical as small project teams through the assessment of multiple team members often cannot include all the expertise needed for a responding to items formulated explicitly on the team particular project. level. The team’s perception of the organizational networking climate was measured using three items While a considerable amount of research addresses referring to the accessibility of important contacts the effects of social networks on individual, group, and within the organization as well as the willingness of organizational outcomes, Mehra et al. (2001) correctly team-external colleagues to share knowledge and point out that antecedents of individuals’ social experiences. The team’s networking preference was networks in organizations have not received much measured using two items referring to team members’ attention in the literature. In this study, we contribute general motivation to collaborate with people from to the literature by investigating how individuals build other disciplines, functional areas, or organizations. their social networks through their participation in The team’s awareness of networking importance was innovative team projects. Participation in such projects assessed with four items pertaining to the team’s provides the opportunity for team members to establish perception of the necessity to interact with team- new relationships with other team members (often external contacts to acquire knowledge, resources, from other disciplines or organizational units) or team- work contributions, or feedback. A three-item scale external contacts. We argue that certain team level was used to measure the team’s networking resources, characteristics facilitate the individual’s acquisition of including items that assessed the degree to which the new and resourceful relationships. Specifically, we team members had useful team-external contacts regard team properties such as networking climate, going into the project. Four items relating to pro- networking resources, networking preference, and gramming skills, software skills, hardware skills, as awareness of networking importance as positively well as expertise regarding the application field of the associated with individuals’ network building, while a software were used to assess the team’s technical team’s technical competency and material resources competency. The perceived adequacy of the team’s are expected to be negatively related to individuals’ material and financial resources were measured using network building. These proposed cross-level relation- two items. ships draw on the basic premise of system theory, recognizing the individual as an element within the Analysis & Results context of his or her team. The team thereby represents a social system (McGrath, 1986) embodying certain The hypotheses of the present study require testing the networking-related norms and resources affecting the cross-level effects of team level properties (e.g., team individual’s networking behaviors (Levine & Moreland, network awareness, team network resources) on 1990). In testing our hypotheses, we are using hierar- individual level outcomes (i.e., individual’s network chical linear modeling (HLM) on data from 430 team building). As such, we used hierarchical linear modeling leaders and members of 145 software development (HLM), a statistical technique that is gaining increased project teams from four different organizations. acceptance in the management literature (Hoffman, Griffin, & Gavin, 2000). Measures We proposed that the team’s perception of network Individuals’ network building was measured using four climate be positively related to team members’ items assessing the individual respondents perception network building. This hypothesis was supported as of the extent to which the project enabled him or her to evidenced by the significant positive coefficient (p = .05). gain new useful personal contacts through the course We further posited that the team’s preference for 6
  • 7. networking and team’s awareness of the importance of individuals’ social networks in organizations. We of networks are both positively related to individual hope that this study sparks increased research attention network building. Both hypotheses were also supported pertaining to the determinants of social networks, (p = .00 and p = .00 respectively). We hypothesized moving this field of research “backward” on the causal that the team’s perception of the adequacy of their chain. technical competency is negatively related to individual’s network building and that the team’s References perception of the adequacy of their material resources Ancona, D.G.; Caldwell, D.F. (1990). Beyond boundary is also negatively related to individual network building. spanning: Managing external dependence in product The significant negative coefficients endorse both development teams. The Journal of High Technology hypotheses (p = .00 and p = .09 respectively). Finally, Management Research, 1: 119-135. while showing a strong bivariate correlation (r = .52) Ancona, D.G.; Caldwell, D.F. (1992). Bridging the with the team level aggregate of individuals’ network boundary: External activity and performance in building, a team’s networking resources did not show organizational teams. Administrative Science a significant influence on individual team members’ Quarterly, 37: 634-665. ability to build their social networks. Coleman, J.S. (1988). Social capital in the creation of human capital. American Journal of Sociology, 94: S95-S120. Discussion Hofmann, D.A., Griffin, M.A. & Gavin, M.B. (2000). The application of hierarchical linear modeling to As previous research has focused exclusively on the organizational research. In K.J Klein & S.W.J. effects of social networks in organizations (Ibarra, Kozlowski (Eds), Multilevel theory, research, 1993; Yli-Renko et al., 2001; Young et al., 2001), our methods in organizations: Foundations, extensions, study contributes to the literature by addressing critical and new directions: 465-211. San Francisco: Jossey- team level antecedents of individuals’ network building. Bass. We found that 37% of the variance in individuals’ Ibarra, H. (1993). Network centrality, power, and network building lies between teams, making the focus innovation involvement: Determinants of technical on team level determinants a quite powerful one. and administrative roles. Academy of Management Journal, 36: 471-501. The results of this empirical investigation offer lessons Levine, J.M.; Moreland, R.L. (1990). Progress in small to innovating organizations on how to foster the devel- group research. Annual Review of Psychology, 41: opment of individual social networks through team 585-634. projects. First, team-based innovative organizations McGrath, J.E. (1986). Studying groups at work: Ten need to stress to their members the importance of critical needs for theory and practice. In: Goodman, social networks to the sustainable effectiveness and Paul S.; and Associates (Eds.), Designing effective efficiency of the organization. Team leaders and team work groups, (pp. 362-391). San Francisco, Cali- members must be made aware that boundary spanning fornia: Jossey-Bass. is important to both the current project as well as its Mehra, A., Kilduff, M., & Brass, D.J. (2001). The social network of high and low self-monitors: Implications network-building element as an enabling condition for for workplace performance. Administrative Science future innovation projects. Second, companies should Quarterly, 46: 121-146. foster a networking climate on the organizational Yli-Renko, H.; Autio, E.; Sapienza, H.J. (2001). Social level. The findings from this research indicate the capital, knowledge acquisition, and knowledge importance of norms and standards pertaining to the exploitation in young technology-based firms. willingness to share knowledge and expertise within Strategic Management Journal, 22: 587-613. the organization. While systems and processes must Young, G.J.; Charns, M.P.; Shortell, S.M. (2001). Top be in place to guide individuals looking for contacts with manager and network effects on the adoption of a certain expertise or skill, people providing their innovative management practices: A study of TQM knowledge to other colleagues should be recognized in a public hospital system. Strategic Management for these efforts. Journal, 22: 935-951. This research has provided encouraging results as to the effect of team level properties on the development 7
  • 8. TRANSFORMATIVE INTERACTIONS: Change is characterized as a process that unfolds over RELATIONAL PRINCIPLES THAT time, revealing periods of greater and lesser instability, in IMPACT THE QUALITY OF which the restlessness of a system is an instinctive SELF-ORGANIZING CHANGE response toward survival in a continually changing environment. Organizations are described as complex Mary A. Ferdig adaptive human systems that can be neither controlled James D. Ludema nor predicted, but for which order will emerge on its Benedictine University own through diverse interconnectivity among system 2002 ODC Best Student Paper Award members. Transformative change occurs in the agitated Currently, 103 nuclear power reactors are licensed to state of nonlinear disequilibrium, referred to by some operate on 40 commercial utility sites in 31 states as the edge of chaos. throughout the US. Three major constituencies hold high stakes in the production of nuclear power: power In a unique and significant application of complexity plant owner-operators, US Nuclear Regulatory theory to organization change, Stacey et al (2000) Commission (NRC), and the public, represented by propose that it is a mistake to think of organizations Congress and various public watchdog organizations. as systems. Systems thinking assumes a formative In 1998, the NRC launched an expansive change teleology in which organizations seek predetermined initiative in collaboration with power plant owner- outcomes. This view tends to objectify human relation- operators and the public to establish a revised approach ship and eclipse the possibility of novelty in human to regulatory oversight. The change process was far- interaction. It is more appropriate, they claim, to talk reaching and complex. It lasted three years, included about organizing as complex responsive processes hundreds of people from dozens of organizations, (CRP): highly complex, ongoing processes of people involved thousands of hours of negotiation, dialogue, relating to each other through everyday conversation. and debate. The result is a radically overhauled reactor This perspective assumes a transformative teleology oversight process (ROP) that will have a significant in which people move toward an unknown future in impact on production and regulation of nuclear power order to realize both continuity and transformation of for decades to come. individual and collective identities. Order emerges out of disorder through a spontaneous process of self- In this paper we study the emergence of the new ROP organizing change in the absence of any blueprint. from the perspective of complexity theory. We examine the qualities of relationship that characterized the A CRP perspective places conversation at the center interactions of those involved in creating the new ROP of organizational change. People accomplish sophisti- over a 15-month period and identify five relational cated cooperative action by forming intentions, making principles that informed their interactions: the spirits of choices, and acting in conversation with each other as freedom, inclusion, inquiry, spontaneity and possibility. they go about their daily work lives. Through these These principles are contrasted with previous ways of conversations, people continuously construct and interacting based on de facto principles of unilateralism, change their organizations (Berger & Luckmann, 1966; indifference, inflexibility, certainty, and immutability. Gergen, 1994, 1999; Ford & Ford, 1995). Scholars We argue that participants’ interaction in accordance and practitioners are encouraged to refocus attention, with these principles increased their levels of inter- not on what members of an organization should be connectivity, shared identity, and collective capacity, doing, but on the qualities of relationship that emerge which, in turn, contributed to self-organizing movement in the process of self-organizing. toward emergent solutions (Lichtenstein, 2000; Moore, 1996). Methodology Theoretical Perspectives Two questions guided this study. First, what were the patterns of conversation that served to mobilize energy A growing number of theorists are turning to complexity for action in the new ROP? Second, how were these theory to explain the dynamics of organizational change patterns different from and similar to the old ROP? (Dooley & Van de Ven, 1999; Chen & Van de Ven, We used a grounded theory methodology (Glaser & 1996; Kauffman, 1995; Prigogine, 1996; Stacey, 1996). Strauss, 1967; Strauss & Corbin, 1998) to answer these 8
  • 9. questions. Data sources included open-ended inter- (Kauffman, 1995; Stacey, 2002) among the regulators, views, meeting observation, informal conversations, industry leaders and public activists that bifurcations and analysis of transcripts, reports, memos, letters, and (Prigogine, 1996), or transformative shifts in interpretive speeches. Data integrity was achieved through deep schemata (Bartunek, 1993), began to occur. exploration of participants’ experiences (Firestone, 1993), multiple-source fidelity checks (Lincoln & Spirit of Inquiry Guba, 1985; Miles & Huberman, 1994), and persistent observation (Halpern, 1983). Participants created a container for joint exploration and discovery through an attitude of inquiry. Instead Relational Qualities That Enable of “knowing the answers” they sought to understand Self-Organizing Change what was going on and construct meaningful outcomes. Some questions were generative and open-ended. Participants reported that interacting with their coun- Others uncovered implications or hidden patterns, terparts (plant owner-operators, regulators and/or clarified issues, and validated understanding, tested public activists) according to the five principles assumptions and invited provisional thinking. identified in this study (freedom, inclusion, inquiry, spontaneity and possibility) enabled them to move Spirit of Spontaneity toward an emerging ROP agreement that met both individual and collective needs. The data also revealed A spirit of spontaneity reflected the unfolding and paradoxical patterns of interactive behavior. With generative nature of self-organizing change. Openness freedom came understood parameters of control; to spontaneity encouraged cooperation among people a spirit of inclusion contained elements of exclusion; who previously stood on opposite side of the issues. It a spirit of inquiry included acknowledgement of shifted the relational dynamic from one of defensive- undisputed certainties; spontaneous exploration (spon- ness and “holding information close to the chest” to taneity) was accompanied by careful planning; and one of collaboration and co-creation (Shotter, 1993). creative possibilities were actively sought within The emerging ROP was often referred to as “a living regulatory parameters. Participants demonstrated a document.” relational capacity for dealing with paradoxical tensions, which contributed to and creative potential for self- Spirit of Possibility organizing change (Smith & Berg, 1987; Stacey, 1996). Participant conversations revealed a belief among Spirit of Freedom participants that they could figure out an optimal solution together. Working toward the potentiality of what could Participants chose whether or not and how to engage be (Ludema et al., 1997) created energy for collective in the process of change. Freedom to join in and to movement toward agreement. As regulatory, industry, “say what you think” gave depth and meaning to and public stakeholders began to connect relationally, emerging outcomes. Participants described experi- they discovered a unifying goal – joint responsibility ences that were both “exhilarating” and “risky as hell” for ensuring safe production of nuclear energy in the as they “put themselves on the line” to create something US – that transcended the potential for conflicting “new and better.” A sense of freedom enabled people goals of each constituency. to develop credibility with one another (including former adversaries) in the form of trustworthiness, Discussion and Implications competence and goodwill (Campbell, 1982). The relational principles identified in this study formed Spirit of Inclusion the interactive container within which transformative conversations of self-organizing change occurred in Participants demonstrated a willingness to include diverse the complex nuclear industry environment. The quality stakeholders in the conversations, thus expanding and quantity of participants’ interactions contributed to connectivity and the rich variability of perspectives the robustness of three domains of self-organizing that contribute to the quality of self-organizing change activity described in the complexity literature as identity (Stacey et al. 2000). It was in “heat of differences” (sometimes referred to as self-reference), connectivity, 9
  • 10. and capacity (Lichtenstein, 2000; Moore, 1996; Stacey, 1996), which, in turn, influenced the degree and quality of transformative, self-organizing change. Despite such strong complementary core competencies, the cultural diversity of the Alliance poses a special References available upon request from Mary Ferdig challenge. While the development of trust, norms, (ferdiginc@aol.com). goodwill, and shared culture is a vital challenge in every strategic alliance, it is even more so in such a transcultural alliance. Building trust and goodwill as strategic partners’ gain mutual confidence is defined as “relational capital” (Kale, 1998). The development THE EFFICACY OF APPRECIATIVE of relational capital will be critical to the success of INQUIRY IN BUILDING RELATIONAL this Alliance. CAPITAL IN A TRANSCULTURAL Appreciative inquiry (Cooperrider, 1986) was selected STRATEGIC ALLIANCE as an intervention strategy to help build the MAHYCO Monty G. Miller, Performance Solutions and Monsanto Alliance. Curan and Work claim that Stephen P. Fitzgerald, “appreciative inquiry [has the] capacity to build trust, Collaborative Capacity Consulting to collect information, to create readiness for change, Joanne C. Preston, Oxnard, California to raise cultural awareness, and to enhance the web of Kenneth L. Murrell, University of West Florida relationships” (1998: 254). Therefore, it was anticipated 2002 ODC Best Interactive Paper Award that Ai would help build relational capital in the Strategic alliances have become popular collaborative Alliance. forms because they enable organizations to enter new markets (geographical or technical) with a significantly Research Approach reduced ramp-up time. Alliance partners may also share their core competencies (e.g., R&D, manufacturing, Two alliance-building interventions were conducted in marketing, technology) thereby enabling the partners Jalna, Maharashtra, India in December 1998 to explore to reap the benefits of each other’s proprietary assets. the following research question (as well as others that However, strategic alliances are notoriously difficult are not reported in this brief paper): “How can Ai and to implement successfully (e.g., Doz, 1996; Fedor other group formation concepts be used to create a & Werther Jr., 1996; Ghosh, 1996; Kanter, 1994; sample intervention to support the forming of a Kumar 1998). transcultural strategic alliance?” The first alliance-building intervention held on Organization development and change technologies December 7-8, 1998 was conducted in an Ai format (OD), including Appreciative Inquiry (Ai), are uniquely with nearly an equal number of R&D people from suited to deal effectively with these challenges, yet both partner organizations; it is referred to as the Ai the literature provides limited guidance on effective session. The second session held on December 9-10, methods or interventions. Therefore this case contrib- 1998 was designed in a more traditional, presentational utes to the strategic alliance and OD literatures. meeting format in order to meet the need expressed The Focal Alliance by MAHYCOs top management to learn about Monsanto first. The majority of participants in this The partners in the focal alliance (the Alliance) are management education (ME) session were top MAHYCO (Maharashtra Hybrid Seeds Company MAHYCO managers. Ten of the thirty-four participants Limited, pronounced “may-hé-co”), the leading (29%) had also participated in the Ai session. producer of hybrid seed in India, and Monsanto, the leading global developer of transgenic plants using The Efficacy Of Ai In Building Relational Capital biotechnology. The Alliance offers a complementary In an inter-rater reliability analysis of participants’ and value-added relationship for both partners. The narrative responses to post-session questionnaires, Ai Alliance can apply Monsanto’s biotechnological know- participants were found to report significantly greater how to MAHYCO’s germ plasm to create plants that increases in levels of relationship building and collabo- will support the food production and fiber needs of South Asia. 10
  • 11. ration (p<.05) than did ME participants both immedi- and Dream phases, the exercise: “Keep It, Stop It, ately after the sessions and four months later. and Start It” can be incorporated in a Dialogue phase, Participants in both interventions reported growth in as appropriate (e.g., Licktenstein, 1996; Golembiewski, their understanding of their partner’s business and their 1998; Bunker and Alban, 1997). In subsequent Ai leadership’s expectations for the Alliance. Further, the sessions, “Keep It, Stop It, and Start It” was found to Alliance achieved a major milestone in March 2002 be a constructive method because it helped team when the government of India approved registration members share their perspectives on everything from for the Alliance’s insect-protected hybrid cottonseed. proposed initiatives to team dynamics. It enabled them to air negative perspectives, continue positives, and Suggested Modifications To The Basic Ai 4D encourage the use of unrecognized strengths or latent Cycle competencies. The designs of the Ai and ME sessions were analyzed Although this is a case study and the findings are not to identify the optimal methods used in both sessions easily generalizable, they are nevertheless significant, through the feedback of participants, observational particularly given the dearth of research on the appli- protocol, and researcher’s notes. As a result, modifi- cation of OD to building sustainable transcultural cations were made to Ai protocols, two of which are alliances. Sample interventions derived from the described next. observations of the researcher and Learning Manager give future alliance-builders outlines for planning First, the standard 4-D Ai process was modified, from interventions (detailed plans may be found in Miller, “Discovery, Dream, Design, and Destiny,” to “Discovery, 2000). Dream, Dialogue, and Design,” in order to meet the client’s needs. The Dialogue phase was added to Ai and Alliance-Building support participants in developing consensus around the creative options they had generated during the Overall, Ai provided stronger support for alliance Dream phase. That consensus facilitated their ability building than did the ME intervention (Miller, Fitzgerald, to co-construct an action plan during the design phase. Preston, and Murrell, 2002). Ai helps builds social Closing the session by emphasizing design and action bridges. According to Doz and Hamel (1998), “the plans encouraged the work teams to solidify their most effective bridges we have observed were also project plans. Four months later, nearly 75% of the Ai social bridges, involving managers from the partners participants indicated on the follow-up questionnaire in non-professional activities and allowing them to that they had made progress on their projects. understand and experience each other’s culture and explicit norms and values” (p. 137). In this case, A second suggested modification to the Ai design for Ai as modified provided not only a means for alliance alliance-building sessions is the inclusion of a method partners to learn their colleagues’ values and beliefs, to constructively air challenges and issues that face and to develop an understanding of the Alliance’s core members of alliances and alliance teams, particularly competencies, it also provided opportunities to cope once past the formation stage. Robert Golembiewski with issues obstructing the relationship, and built positive (1998) argues that Ai does not have the ability to deal energy in the process. Interventions based on Ai have with negative issues that an organization is facing, and broad potential for helping strategic alliances build Blair (1998) suggests that negative information can relational capital to encourage sustainable transcultural be used constructively in an Ai session. Further, the collaboration so vital for successful organizations in Monsanto India Learning Manager pointed out that the 21st century. an intense dialogue and breakthrough occurred in the ME session following “storming” among participants References available from the authors. over the concept of “professionalism” in Indian family business. That event and observation led to the inclusion of an optional method to air issues in subsequent Ai alliance- Season’s Greetings building sessions. After participants have developed a deeper understanding of each other via the Discovery 11
  • 12. Please Address All Correspondence to: R. Wayne Boss Academy of Management ODC Newsletter Graduate School of Business Administration Campus Box 419 University of Colorado Boulder, Colorado 80309 (303) 492-8488 FEEDBACK TO THE EDITOR We welcome your feedback and would appreciate your comments below. Selected comments on articles in the OD Newsletter may be published in the next issue, so please indicate if you prefer your comments to be withheld. After completing your comments, please detach this page and return it to the editor. (Please Print All Comments.) LETTERS TO THE EDITOR 1. Do you have any comments that you would like to share with the Editor (comments on articles from the last issue, comments on this issue, suggestions, etc.?) ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ NEWS ABOUT MEMBERS 2. Is there any important information about you or a colleague that you would like to have appear in the next issue? ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ PUBLICATIONS 3. Please list below any recent or forthcoming publications by you or a colleague.(Indicate full citation.) ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ 12