How the Organizational Transformation of TSTT Unfolded | Analytical Essay

The Organizational Transformation of TSTT

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Introduction

Organizational transformation is the process through which an organizational reengineers or reinvents itself. The process beings with structural changes, which mainly affect the structure of the organization. A change in employees attitudes, beliefs and behaviours promptly follow, together with a change in the organisation’s culture. Organizational transformation leads to organizational development because the latter is an instance of planned change which is meant to increase the effectiveness of the organization (Cummings and Worley, 2014). Additionally, organizational development also seeks to institute an ability of the organization to change itself. Organisational effectiveness is achieved through enhanced organisational efficiency. Organisational efficiency refers to the ability of the organization to realise its goals while utilising only a minimal amount of resources. Achieving organisational efficiency is important in allowing the organization to realize its obligations to its stakeholders.

The organization chosen for this analysis is Telecommunication services of Trinidad and Tobago (TSTT). TSTT’s vision is “To be a world class Wholesale Products and Services provider, offering outstanding quality services, excellent customer relationship management and value for money, through continuous improvement driven by integrity, teamwork and innovation.” Its mission is “To provide world class, diverse, and affordable wholesale products and services with excellent 24/7 after sales support.”

TSTT is the largest provider of telecommunication solutions in Trinidad and Tobago. It is co-owned by the government and the cable and wireless group. The government has a majority stake of 51%. TSTT enjoyed full market share of the telecommunications market in TT until 2005 when the government opened up the sector to competitors. About three years ago, the company underwent an organizational change that involved cutting down on staff numbers. Most of the affected employees were lower level workers, with a good proportion of the management retaining their jobs. The company is planning to do another layoff. The difference is that this time, the organization plans to provide two months’ pay as severance. This changes are mainly transactional in nature, as they are meant to reduce the number of staff thus lower the amount the company spends on wages. It is noteworthy that TSTT recruits employees through an agency, hence does not require to pay benefits to its employees.

The author has decided to review the OD process issues at TSTT as it relates to the culture and leadership at the organization. Several issues will be investigated including the organizational culture, leadership, power and politics and the practitioner of the change. The change process will also be defined. Finally, the paper will also focus on the organizational structure, organizational learning and managerial behaviours during the implementation of change.

 

Diagnostic

Leadership

One of the most pertinent forms of leadership during periods of change is transformational leadership. Transformational leadership has been defined in various ways. Bass and Riggio (2006) characterize transformational leadership as an approach to leadership in which leaders stimulate and inspire followers towards the attainment of extraordinary outcomes, while in the process developing their leadership capacities. Thus, under this leadership approach, the leaders aim to develop the leadership capabilities of their followers. To achieve this outcome, the leaders deploy a variety of techniques such as responding to the individual needs of followers and empowering followers. Alternatively, transformational leadership has also been defined as an engagement between leaders and followers in which the two end up elevating each other in terms of motivation and morality (Burns, 1978). Finally, transformational leadership has also been characterized as an approach which entails charisma, and a shared vision between leaders and followers (Lai, 2011).

A review of these definitions reveals that they are in harmony. Each definition describes a situation whereby followers and leaders work together, and where leaders use some form of influence. These definitions also capture the essence of the use of soft power. Under the first definition, the leader uses stimulation and inspiration. In the second definition, the leader motivates. In the final definition, the leader uses their charisma. From this evaluation, it is evident that the definitions agree rather than conflict. TSTT does not have an explicit change leader. Therefore, it is difficult to determine whether the change leader has attributes of TL. From a review of the activities comprising the change instance, however, there appear to be no attributes of transformational leadership. The organizational vision is clearly not a shared one, and is confined more to the employee.

 

 

Culture

Organizations have an internal way of doing things, which is normally referred to as organizational culture. Various definitions have been proffered to define organizational culture. Schein (1985) defines leadership as the shared set of values, beliefs, norms and behavioural patterns, which guide the behaviour of an organization’s members. In an alternative definition, Cummings and Worley (2005) define organizational culture as the pattern of assumptions, values and norms which an organization’s members share. These two definitions have a lot in common. Both definitions highlight the presence of a set of values and beliefs that are shared by the members of the organization. The definitions, however, differ on one particular aspect, whereby Cummings and Worley (2005) report that assumptions are part of the organizational culture. These authors, however, left out behavioural patterns. Yet, behaviour is one of the most important aspects of a culture.

 

Figure 1: Elements of Culture

One of the key strengths of TSTT’s culture is its bureaucratic nature. As a consequence, the organization is characterized by the presence of well-established rules governing the interaction between individuals. Consequently, things get done faster because everyone is aware of what is expected of them.

 

 

Leadership and Change Management process

The change instance at TSTT was not formally introduced prior to its implementation. Employees were not notified in advance of the impending. As noted, there was no explicit change manager in the implementation of this change instance. Consequently, no introductions were necessary. The main objective of this change process was to lower the wage bill and streamline the operational costs of the organization. The organization already hires through a contract agency, enabling it to avoid having to pay benefits for employees.

 

 

Power and Politics

Information was gathered from documents in the company’s possession. As has been noted, the company has a bureaucratic culture. Such a culture involves the use of technical documents. There were varied reactions from the different layers of the organization. The higher levels experienced an increased sense of security. For the lower levels, initial reaction was characterized by the onset of anxiety and insecurity. These employees did not know whether they would be the next targets in the event of another layoff.

 

 

Culture’s Impact on Leadership and the Change Management Process

The organizational culture played an important role in the change management process. For starters, the bureaucratic nature of the organization dictated the category of employees that would be targeted for layoff. Moreover, the transactional approach to management promoted by such a culture meant that there was little consideration of the impact that these change would have on employees, both those leaving the organization and those who would be retained. The main leadership approach at the organization is a transactional leadership approach, with a principle focus on optimizing the goals of the organization. Consequently, during this instance, the focus was on reducing the operational costs of running the enterprise, by cutting down on the number of staff. During the process of change management no TL emerged. TL is an important approach towards managing change, but in this instance, it did not emerge.

 

 

Intervention

Organizational development (OD) interventions are actions which are designed to help an organization to either solve a problem, or achieve a particular outcome. Interventions are part of the OD process. These interventions are normally introduced by a change agent and usually aim to aid in the implementation of an improvement program. Interventions include all actions that are part of the organization’s improvement plan. The nature of the interventions vary based on whether the change agent was external or internal. Where the interventions are internal, they can either be sociotechnical or technostructural.

Sociotechnical interventions are interventions that are embedded in a recognition of the unique and beneficial interplays between the social and technical aspects of the organization (Rothwell et al., 2009). Technostructural interventions, on the other hand, are those that target the structure of the organization. From an evaluation of the change event, it appears that the interventions applied were sociotechnical in nature. The specific intervention involved changes to the social component of the organization. As such, it should be characterized as a sociotechnical interventions. There were no SMTs involved in the implementation of the change interventions. The change intervention was implemented in a top down change process. This approach involved the management communicating that they were planning to layoff certain employees.

 

Leadership

During the change period, the leadership approach employed was a transactional leadership approach. One of the best frameworks for understanding leadership during this period, and the implementation of the change interventions is the managerial grid by Blake and Mouton. This grid evaluates management along two axis. The first is a concern for results, and the second a concern for the people. Accordingly, there are those leaders who have a high level of concern for people and a low level of concern for results. These types of leaders are termed as country club managers. In the current situation, the leader demonstrated a high level of concern for results, but little regard for people. This represents a produce-or-perish approach to management. This approach was useful for the organization given the bureaucratic nature of its operations. The intervention used with this leadership was downsizing.

 

 

Figure 2: Blake and Mouton’s Managerial Grid

Strategies of Control

Cultural Considerations

Organizational culture can be understood in different perspectives. One framework that is useful in evaluating an organization’s culture is Handy’s four types of cultures. The first type of culture is the club culture. In this type of culture, power is concentrated amongst a few, with those in positions of power are located at the centre of the spider web, and are surrounded by those who have greater influence. The second culture is the role culture. This type of culture has been likened to a Greek temple, whereby the apex represents the decision-making region. The pillars, on the other hand, act as conduits through which decision made at the Apex trickle to those at the bottom.

This type of culture is suited to bureaucratic organizations where the adherence to rules takes priority. The third type of culture is the task culture. With this type of culture, the focus is on the team. Expertise and information are an essential input for this culture. The culture is suited for organizations in which people work in teams, such as those involved in research and development. The final type of culture outlined by Handy is the person culture. This culture has the individual as its main focus.

 

 

Figure 3: Handy’s Four Types of Culture

From an analysis of the above culture, TSTT was evidently in a role culture. For starters, there is a bureaucratic system in place in the organization. TSTT is mainly owned by government, making it more of a statutory body. The organization has a well-defined structure for its employees. Other aspects of role culture include slow decision-making and no risk-taking. Finally, power from this organization stems from the position one occupies. The subcultures did not merit much attention. The intervention was not effective in addressing the predominant culture.

 

 

Cultural Web

Apart from the different types of culture, culture can also be understood in terms of the cultural web presented by Johnson and Scholes. This web describes the interactions and relations between various elements of the micro culture. The organization has its internal control systems, which are mainly the rules and procedures that govern operations. As a bureaucratic organization, there is a strict organizational culture in which the inputs of those with seniority bear greater weight. Employees in lower cadres are expected to make less contributions. Social power has little or no sway in this organization, especially considering employees are recruited through an agency. When it comes to rituals and routines, some examples include who gets promoted, and who receives certain items first. There are several symbols. These include logos as well as the abbreviation TSTT. In terms of stories, some of the past events people discuss include previous bosses, and those employees who may have been laid off previously.

 

Figure 4: Johnson and Scholes’s Cultural Web

Implementation

The successful implementation of change is contingent upon the utilization of appropriate change implementation techniques. There are several techniques that can be used. Three of these techniques are discussed below, with regard to the change instance at TSTT.

Kotter’s 8 Steps

Kotter’s eight-step model presents a series of eight steps which can be used for the implementation of change. This model tackles some of the critical aspects of change management, such as the need to communicate the organization’s vision, and power (Cameron and Green, 2009). The implementation of Kotter’s model at TSTT is audited. The first step is establishing a sense of urgency. As part of this process, the change manager creates a felt need for change. This was not done since the organization focused on the transactional aspect of the change. The second step is to create a guiding coalition, also known as a change team. Once again, this was also not done.

The next three steps include the development of a vision and strategy, the communication of this vision of change, and the empowerment of individuals towards the attainment of the vision. Once again, these steps were also not carried out. Off course it would have been difficult to implement these steps, given that the change instance involved laying off employees. The final three steps were also not implemented, for similar reasons. All in all, the change situation did not follow Kotter’s eight-step model.

 

 

Figure 5: Kotter’s Eight-Step Model

Lewin’s Change Management Process

Another model that can be used to investigate change is Lewin’s process for change management. This process involves three steps. The first is unfreezing, where the organization carries out a review of its status quo. Additionally, this step also entails actions targeted at reducing the driving forces of resistance, while increasing the drivers of change. The next step is movement, which entails deliberate action to get to the desired state. The final step is refreezing, whereby the new approach is stabilized. The diagram below illustrates the steps involved in Lewin’s change process.

Figure 6: Lewin’s Change Process

The change at TSTT appears to have followed this model. For starters, the organization unfroze and took a review of its wage bill. It investigated the number of employees before deciding what number to lay off. This represented the unfreezing stage. After laying off the employees that it did, this comprised the movement stage, where the company was moving towards its desired state. Finally, the organization then stabilized the new state of affairs.

 

Change Kaleidoscope

A final tool through which to evaluate the instance of change is the change kaleidoscope. This tools s useful in developing a bespoke solution. The kaleidoscope contains a variety of parameters from which an organization chooses the area of focus. It is a very efficacious tool, particularly for planned change, because it allows for a focus on those aspects that are the most urgent or most pertinent for an organization. For the same reason, however, the Kaleidoscope has been criticized as being unresponsive to open ended and evolving change (Leon, 2006). The Change kaleidoscope is presented in the diagram below.

 

Figure 7: Change Kaleidoscope

It is difficult to say whether the change kaleidoscope was used to implement the change instance at TSTT. It is highly likely that the Kaleidoscope was used to implement change. Aspects of the Kaleidoscope such as time, scope and capacity could have been implemented to determine when and how to go about laying off employees, and how many employees should be laid off.

This section has focused on a review of the implementation of change management at TSTT. From the analysis, it is evident that the organization did not use Kotter’s eight-step model. Rather, it appears that the company either used Lewin’s change management process, or the change Kaleidoscope. It is easier to demonstrate the use of Lewin’s change management process than it is to illustrate the use of the change kaleidoscope. This difficulty can be attributed to the elaborate nature of the kaleidoscope, whereby this tool is usually used in instances of planned change. Consequently, it is suitable for this particular instance.

 

 

Recommendations

Based on the evaluation of the change instance the following recommendations are made, to improve the efficiency of the change management process at TSTT.

Practitioner

This change process did not involve a practitioner as it was an internal exercise.

Leadership

The leadership of the organization was in charge of the change process. The leadership chose to implement a transactional leadership approach. Consequently, the leadership mainly focused on the goals of the organization and a strict adherence to the bureaucracies. As part of this process, employees were sourced through agency, allowing the company to avoid having to pay benefits. Such a transactional approach, however, has detrimental effects on employees as well as on the organization in general. For employees, the result is a feeling of isolation from the organization. This feeling is experienced by both those employees who are exiting the organization and those retained. Among those retained, feelings of discontentment and dissatisfaction are likely to develop, resulting in lowered productivity. To avert such outcomes, the following recommendations are made.

1. The organization should seek to have a closer working relationship with its employees. If possible, the company should seek to hire directly as opposed to through an agency. In this manner, employees will feel that they share in the organizational vision.
2. TSTT should seek to implement a transformational leadership approach. Such leadership should be pursued particularly during periods of change where employees are already facing uncertainty. When employees feel they are cared for, then they are more likely to invest themselves in the organization.

 

 

 

Cultural Recommendations

TSTT is majorly owned by the government. This ownership structure will make it difficult to shift from the bureaucratic nature. Where possible, however, the organization should seek to move away from a bureaucratic structure and culture, and instead focus on a culture that promotes creativity and innovation. This recommendation is especially relevant now that the telecoms sector has been opened up and there are more competitors.

 

 

Organizational Structure

TSTT should seek to implement a flatter organizational structure. Such a structure will led to faster decision-making and will promote creativity and innovation. This shift is necessary in light of the above noted factor of enhanced competition.

 

 

 

Conclusion

Organisational transformation is a process that involves the renewal of the organization, and is an essential part of the organizational development process. Organizational development, on its part, enables the organization to develop effectiveness, through an efficient use of resources. Organisational transformational normally occurs during periods of change. An instance of change at Telecommunication Services of Trinidad and Tobago is investigated. The change management process was inhibited by the reliance on a transactional approach to leadership. Transactional leadership is effective in achieving the goals of the organization, but has detrimental outcomes on employees. In the current case, a transactional leadership approach was used to downsize. The result was lowered employee trust in the organization, since employees feared they would be the next ones to lose their job.

 

List of References

Bass, B.M. and Riggio, R.E., 2006. Transformational leadership. Psychology Press.

Cameron, E. & Green, M., 2009. Making sense of change management : a complete guide to the models, tools and techniques of organizational change. 2nd ed. London: Kogan Page Limited.

Cummings, T.G. and Worley, C.G., 2009. Organization development and change. Cengage learning.

Cummings, T.G. and Worley, C.G., 2014. Organization development and change. Cengage learning.

Lai, A., 2011. Transformational-transactional leadership theory. 2011 AHS Capstone Projects. Paper 17.

Rothwell, W.J., Stavros, J.M., Sullivan, R.L. and Sullivan, A. eds., 2009. Practicing organization development: A guide for leading change (Vol. 34). John Wiley & Sons.

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