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
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