Business School
ADAPTING TO A NEW SITUATION AT A WORKPLACE
Employees’ Professional Identity Construction in an Organizational Change situation
Master’s Thesis, Innovation Management
Tuuli Lampinen August 27, 2019
Tiivistelmä
ITÄ-SUOMEN YLIOPISTO Tiedekunta
Yhteiskuntatieteiden ja kauppatieteiden tiedekunta
Yksikkö
Kauppatieteiden laitos
Tekijä
Tuuli Lampinen
Ohjaajat
Helena Kantanen, Esa Hiltunen
Työn nimi
Sopeutuminen uuteen tilanteeseen työpaikalla – työntekijän identiteettityö organisaatiomuutoksessa
Pääaine
Innovaatiojohtaminen
Työn laji
Pro Gradu
Aika
27.8.2019
Sivuja
64
Tiivistelmä
Opinnäytteen tarkoitus on tutkia työidentiteetin muokkautumista organisaatiomuutostilanteessa.
Tutkimuskohteena on asuntosijoitusyhtiön asiakaspalveluorganisaatio, johon on toteutettu strategiamuutos. Strategiamuutos on aiheuttanut olennaisia muutoksia työntekijöiden tehtävissä ja siten myös aiheuttanut identiteettityötä muuttuneen työn myötä. Tutkimuksen aihe on tärkeä sekä yritystoiminnan että tieteellisen tutkimuksen näkökulmasta, sillä työntekijöiden sitoutuminen muutokseen on oleellista organisaatiomuutoksen onnistumisen kannalta.
Tutkimuksen teoreettinen viitekehys muodostuu muutosjohtamisen- ja työidentiteetin tutkimuksesta. Tutkielman teoreettinen viitekehys käsittelee paitsi organisaatiomuutosta, myös työidentiteettiä ja sen kehittymistä, sekä muutosvastarintaa.
Empiirinen tutkimus on rakennettu käyttäen laadullisia menetelmiä. Työntekijöiden ja johtajien kertomat narratiivit työn muutoksista ja niiden aiheuttamista kokemuksista muodostavat tämän Pro gradun aineiston. Aineisto on kerätty puolistrukturoiduilla haastatteluilla ja data on analysoitu deduktiivisen sisällönanalyysin avulla. Yritys tarjoaa mielenkiintoisen kontekstin tutkimukselle, sillä organisaatio on toteuttanut suuria strategisia muutoksia, jotka ovat vaikuttaneet henkilöstön työtehtäviin oleellisesti.
Tutkimuksessa havaittiin, että työhön kohdistuneet muutokset vaikuttivat vastaajien kokemuksiin ja ajatuksiin heidän omasta työstään ja käsitykseensä heistä itsestään osana asiakaspalveluorganisaatiota. Tutkimuksessa havaittiin sekä muutoksessa kipuilua, että muutoksen helppoutta. Asiakaspalvelutyöntekijöiden työidentiteetin havaittiin rakentuvan kyseenalaistamisen, reflektoinnin, ja sosiaalisten ulottuvuuksien kautta. Tutkimuksessa havaittiin myös, että muutokset ovat herättäneet voimakkaita tunteita.
Avainsanat
Työidentiteetti, työidentiteetin kehitys, organisaatiomuutos, muutosvastarinta
Abstract
UNIVERSITY OF EASTERN FINLAND Faculty
Faculty of Social Sciences and Business Studies
Department
Business School
Author
Tuuli Lampinen
Supervisors
Helena Kantanen, Esa Hiltunen
Title
Adapting to a new situation at a workplace – employees’ professional identity construction in an organizational change situation
Main subject
Innovation Management
Level
Master’s Thesis
Date
27.8.2019
Number of pages
64
Abstract
The objective of this study is to explore professional identity development in an organizational change setting. The research subject is a housing investment company and its customer service unit. The company has implemented a strategic change, which has caused essential changes in the employees’ work. The research topic is relevant to both researchers and practitioners, as employee commitment is crucial in implementing a strategic change. When professional identity development is well understood, organizations and managers can support the employees during the organizational change situations. Thus, it is important to understand, what professional identity consist of and how to support its development.
The theoretical framework consists of change management and professional identity literature.
The theoretical framework discusses organizational change, professional identity, professional identity development, and change resistance. The empirical part of the current thesis has adapted qualitative research methods. The change narratives from the employees and managers formulate the data of this thesis. The data is collected with eight semi-structured interviews.
Narratives are analyzed using deductive analysis in accordance with dimensions of Schilling et al. (2013) identity development process. The case company offers an interesting research context to the study, as the employees have been a part of changes that have reorganized their work tasks significantly.
The results showed that the changes within the organization had affected the recipient’s thoughts and experiences about their work. The changes had also affected their idea of themselves as a part of the customer service organization. The results showed both struggle with the change and easiness of it. The customer service units’ employees’ professional identity seemed to be influenced by questioning, reflecting and social aspects. The results also showed that change caused strong emotional responses among participants.
Key words: Professional identity, organizational change, change resistance
TABLE OF CONTENTS
1. INTRODUCTION ...5
1.1 Professional identity development in organizational change ...5
1.2 The purpose of the study ...7
1.3 Key concepts and structure of the study ...8
2 THEORETICAL BACKGROUND ... 10
2.1 Organizational change ... 10
2.2 Professional identity ... 13
2.3 Change and developing professional identity ... 15
2.4 Change resistance ... 17
2.5 Theoretical framework in this study ... 19
3 METHODOLOGY ... 22
3.1 Methodological approach ... 22
3.2 Data collection ... 24
3.3 Analysis of the data... 27
3.4. Ethical issues ... 28
4 IDENTITY CONSTRUCTION AFTER ORGANIZATIONAL CHANGE... 31
4.1 Change in organizational practices and roles – focus in the customer service unit ... 33
4.2 Leader’s narrative – “change is hard work” ... 35
4.3 Employees’ narrative -”it was time to take a look in the mirror” ... 41
4.4 Summary of the research results ... 49
5 CONCLUSION AND DISCUSSION ... 55
5.1 Summary of the research ... 55
5.2 Key results ... 56
5.3 Evaluation of this study with implications for future research and practice ... 59
REFERENCES ... 62
1. INTRODUCTION
The objectives of this research are to explore how does professional identity develop and how do professionals narrate about their professional identity construction after major organizational change. The aim is to clarify the several aspects of professional identity development and investigate how professionals adjust to major changes in their workplace.
In recent years, there has been an increasing interest in both organizational change and identity development studies. This study compliments the research as a case study and tests the existing theories about organizational change and professional identity. The empirical part of the study uses qualitative research methods and investigates a case-company that has went through organizational change due to a strategy change in the organization.
1.1 Professional identity development in organizational change
Working life is undergoing continuous changes, transformations and has gone through several transitions due to the global phenomena such as technological advances, better accessibility and ease of communication and in future, the transitions are likely to continue. Hence, there are several changes and uncertainty in working life. Improvement of technology changes the fields of businesses and develops new ways of working. Change is constant and careers are nowadays more diverse than before. (Näswall et al. 2008, 2-4). People have more fragmented careers and one must be capable to learn constantly new sets of skills.
Since in today’s working life, change is inevitable, companies must implement strategic changes as their environment changes (Schilling et al. 2012). Being able to develop and change is nowadays a business necessity. External drivers cause change, or it can be an outcome of the company’s strategic management choices. (Hotho 2008).
When organizational change occurs, and a new vision is presented, the organization’s identity is under a change. In addition, not all changes are successful. Change is enabled if the organizational identity can develop. Much is dependent on how the future is presented and if the employees are willing to get on board with the change. (Kuusela & Kuittinen 2008, 115.)
Schilling et al. (2012) point out, that change in organizations must be handled with great care, as companies should hold onto their professionals. Research shows that in many cases, professionals might not adjust to the new way of working and hence there is discomfort in their professional identity. This can lead to the professionals leaving the company. (Schilling et al.
(2012). Professional’s knowledge is a key asset to a company; their individual knowledge is a key productive resource to the company they work for.
There is an increasing amount of research in the field of identity development in organizational settings. After all, we spend a large amount of our time at a workplace and one’s work shapes identities. Even tough identity is much-researched phenomena, more research is necessary. It is central to know how professional identity develops. It is also central to understand, how one can adjust to new changes and learn new skill sets, because organizations need to change in the ever- changing operational environments. The phenomenon is important to be understood, when planning and implementing a strategic change. When personnel have less change resistance and positive emotions towards change, the change has better chances to succeed.
When professional identity development is understood better, organizations are able to support the employees during the organizational change situations better. It is important to understand, what professional identity consist of and how to support its development.
This study investigates the understanding of work (and change linked to it), relationships with others, and self-understanding (professional identity). Adjusting to change is the core theme that is carried through in the thesis. The case company of the current thesis offers favorable field for research as the organization has undergone significant changes and the professionals have had to do identity work during the organizational change. The industry that the organization operates on is interesting and under developing phase. The company is one of the forerunners in its industry and in order to keep that status it has had to develop and make many successful changes. This thesis is limited to focus on the customer service unit of the case company. Customer service has had to change, as customers' needs are changing.
1.2 The purpose of the study
The main research question of the study is: How does personnel develop their professional identity after an organizational change?
The purpose is to examine how to adapt to a new situation in a workplace. The empirical part investigates changes that have occurred in the case company. Both managers and employees are interviewed, and focus of the thesis is mainly on the employee's experiences. More specifically, the research is focusing on the development of the professional identity. This thesis does not seek to discuss the strategic work and the strategy behind change situations, but is concerned on how the change situation develops personnel’s professional identity when a strategic change is implemented and the personnel’s work changes significantly.
The empirical part of the study uses qualitative research methods. More specifically, narrative research is adapted. Narrative study was chosen as the research question focuses on the personal experiences and identity development of the employee. Collecting narratives offers depth to the data collection and thus, research results. Narratives were also useful as the case study investigates the change process from 2016 to this date and the employees were able to tell their own story from the beginning of the change process to this day.
To summarize, the object of the study is the individuals, the employees of the company. The empirical part of the thesis is examining a case company that has changed their organizational structure and reorganized positions due to the strategic changes in the company. The personnel’s every day work has changed significantly, and many changes have occurred.
More research is needed to study how individuals narrate about their work role transitions and make sense of the continuity between how they see themselves professionally and how they are developing professionally. (Ibarra & Barbulescu 2010).
1.3 Key concepts and structure of the study
This chapter introduces shortly the key concepts of the study, which are professional identity, organizational change, and change resistance. Chapter 2 discusses the concepts more thoroughly.
These concepts have been taken under the study, as they are essential in professional identity development and organizational change.
Ibarra (1999) defines professional identity as “the relatively stable and enduring constellation of attributes, beliefs, values, motives, and experiences in terms of which people define themselves in a professional role”. Professional identity reforms over time. Professional identity also modifies based on the feedback and experiences individuals have. Professional identity withholds qualities such as competence, trustworthiness, judgement and creativity. (Ibarra 1999, 764-765.) Many scholars agree with Ibarra’s definition on professional identity and the definition is widely used.
Organizational change is defined as the changes of existing strategies and work routines that affect the organization significantly. Organizational change is popular topic of research among researchers in social sciences as there is a need to extend our knowledge how and why organizational change occurs continuously. Often, change occurs from the bottom up, meaning that the changes originate from the managerial level if the company. (Wee & Taylor 2018) Change resistance means negative attitudes and counter proactive actions against change initiatives. Change resistance occurs often in organizational change situations. The employees may not understand the motives and reasons behind the change and can have a lack of motivation towards the change. Change resistant personnel question the change initiatives of managers that drive the change. (Blanca & Ramona 2016.)
Picture 1. Key concepts of the thesis
The study is divided into five main chapters. The current chapter 1 is the introduction for the thesis.
This chapter has framed the study, given an overview of the studied phenomenon, research gap, and used methods.
Chapter 2 discusses the literature of change management, development of professional identity and change resistance.
Chapter 3 introduces the chosen methodological approach, narrative research. The data was collected with eight interviews and the collected data was analyzed using inductive content analysis.
Chapter 4 discusses the findings of the empirical research. Both managers and followers were interviewed to answer to the research question. Chapter 4 provides two narratives that discuss the findings. First narrative is formed from managerial perspective and the second narrative discusses the employee’s adaption to change from different perspectives.
Chapter 5 concludes the thesis by discussing the empirical results and theoretical aspects of this study. The fifth chapter will also include the critical assessments of the limitations of the study.
Professional identity
Organizational change Change
resistance
2 THEORETICAL BACKGROUND
This chapter discusses the relevant literature in the field of organizational change and individual change. The current thesis is focused mainly to employer’s perspective on change and the theoretical background is built accordingly. The last chapter will provide a synthesis of the literature.
2.1 Organizational change
The business environments are characterized by uncertainty and turbulence and change in only constant. The ability to adapt to external changes in essential to succeed in the changing business environment. Implementing the necessary changes in companies is crucial. (Aleksic et al. 2014) Organizational change is often triggered from internal or external environment. External environment can change from many directions. The environment can change in terms of technological, legal, environmental, economic or social factors. There may be new challenges or opportunities, which trigger the change. (Hodges 2016, 15.) Strategic change often leads to the change in the company’s structure, processes, competences and professional identity. (Schilling et al. 2012).
Leaders and managers need to be aware of the opportunities and demands of the external environment. Internal change often stems when people want to improve and develop better ways of working, solve problems with current practices, reducing costs, improving services or processes.
Such internal drivers may then result in changes in behavior, processes and strategy. (Hodges 2016, 20.) Change management means the processes of leading and managing significant changes in business processes, organizational structure, and information technology or job assignments to reduce the risks of change and to aim for the best results. (Murthy 2007, 22.)
Personnel is one major focus of organizational change management, as people are the ones who cause the change to succeed or fail. Leadership is also critical in change situations. (Murthy 2007, 24.) Without the commitment of the employees, change is unlikely to remain and to gain the benefits that were pursued. (Hodges 2016, 25.)
Organizational change can be for example downsizing, layoffs, new strategic indicatives, new organizational structure, new top management teams. Organizational change can effect on the
employees significantly. They can provide opportunities for development and growth and new skills. Often, it is beneficial to manage the change process by agents of change. Change agents are individuals or groups that are responsible in taking the change forward and implementing it.
Change agent can be a manager, consultant, current employees of the organization or new employees. (Aleksic et al. 2014)
There are multiple studies and models on the change management in organizational change situations. These models offer important insights on how to implement change and reduce change resistance among employees. Many researchers agree that after the change process in carefully planned; the employees should be motivated for the change. Hence, the management should motivate the employees to accept and implement the change. Changes can be performed in several cycles, so that personnel will have time to adjust to changes. It is important to work with the people who are subject to change, as people will have emotions in response to the change. Employees should be given support in their personal transition, which can include training and counseling.
Management should also reveal and overcome resistance to change. After the change has been implemented it is beneficial to monitor and control the organizational change. Managing the measuring the effects the change had is important. (Aleksic et al. 2014)
Picture 2. Different perspectives on change.
Individual change
Team change
Organizational change
Leading change
Competition and new operators in business markets makes organizations to develop and try out new organizational structures and leadership models. Personnel of the company must learn new ways to work and means to function in fast changing environment. Personnel’s commitment to the company is at stake when change occurs as individuals often receive mixed messages about being part of the organization and being outsiders of the change simultaneously. (Kuusela & Kuittinen, 2008, 107.)
The role of leaders often changes when organizational change occurs. Due to strategic changes, new leaders might be hired, and some current leaders might leave the organization. Nowadays, the leadership is also less hierarchical in many organizations and the boundaries between leaders and subordinates is fading as personnel takes more responsibility of their performance at work and teamwork becomes more and more popular. (Kuusela & Kuittinen, 2008, 107.)
Change in organizations affects the organization and the people personally, that are working inside of the company (Murthy 2007, 8.) Individuals wish to belong to a group that they appreciate and think highly of. Individuals can identify themselves better to an organization, once their values are similar. (Kuusela & Kuittinen, 2008, 109.) After the change has been implemented, the individuals are more likely to identify themselves as members of the evolved organization, if it represents an enhancement to their own self-concept. (Sung et al. 2017.)
As described above, change triggers many emotions among personnel when change occurs.
Surprisingly, there is comparatively little discussion about emotional side of change in change management literature. However, leading change involves the managers to be able to understand and acknowledge emotional responses among the organization. In addition, the organizational culture plays a role in generating the emotional responses and influences weather the emotions are expressed or suppressed. (Hodges 2016, 49.)
Change management literature discusses relatively little about emotions in change management context. Moreover, most organizations seem to have an unwritten rule that emotions do not belong to a workplace. At least, in many organizations, only the positive emotions seem to be accepted.
Organizations that have this approach fail to understand the importance of emotions at work.
Emotions are part of human nature and therefore affect us in work context. For example, research has shown that negative emotional experiences in a workplace can reduce an individual’s
performance whereas positive emotions may improve an individual’s performance. Emotions also effect on personnel’s attitude and job satisfaction. Leading people in change situations demands the capability to understand how change elements impacts personnel individually and collectively in the organization. (Hodges 2016, 51.)
2.2 Professional identity
Before defining professional identity, it is important to first define social identity, which is considered as an umbrella term for professional identity. Social identity is “that what distinguishes the individual from others and remains relatively stable over time” (McInnes et al. 2006; Beddoe 2011.) Social identity is fixed in the society and culture we live in. Identity constructs within networks, social interactions and different institutions of our societies. (Wearing 2011, 6.) Hotho (2008) ads that individuals hold multiple social identities and professional identity is one of them.
Professional identity relates to how individuals differentiate themselves from the rest of the professional groups (Beddoe 2011.)
Professional identity involves the skills, knowledge, values, attitudes and beliefs that are shared with others within the profession. Professional identity is developed through processes in which humans adapt and define themselves to their roles at the workplace, in social environment.
Professional community therefore shapes professional identity. Also, the environment (organization and professional community or team) may be the subject to change. Identity can be
“offered” to an individual from by the organization, and the employee may adapt to that. It is important to acknowledge that there is interaction between individual’s professional identity and the organization’s offered identity, when examining the change situations and the reactions to organizational change. (Beddoe 2011; Schilling et al. 2012).
People spend a significant amount of their time at work. As a result, organizations are crucial in shaping people’s identity. Work setting can also motivate change in personal identity. Strong professional identity can give sense of personal accomplishment and be a source of job satisfaction.
(Miscenko & Day 2015) Hotho (2008) claims that “mainstream literature focuses in the individual as “victim” of change”. The stream of literature frames professional identity with management interests, without considering professional identity adjustments at their work. (Hotho 2008, 722).
Professional competence can be described as ‘a way of being’. Professional competence is an understanding of work, relationships with others, self-understanding, and understanding of specific tools (such as IT). Professional competence and professional identity are closely liked.
Such understanding implies that strategic changes create a new demand on professionals’
competence. Strategic changes therefore challenge the employee’s professional identity and mandates new additional skills, tools and adapting to new routines. To summarize, in strategic change situations, the employee must change the understanding of self and the work tasks. In change situations, professional identity is developing. As the professional is expected to adapt to a new situation and change, their identification and loyalty is challenged. (Shilling et al. 2012).
On the other hand, one’s profession and work are one of the central aspects that builds individuals’
identity, social status and self-esteem. People also tend to identify themselves more easily to groups and companies that are in great reputation. (Kuusela & Kuittinen, 2008, 110.) When a company has respected reputation and is appreciated, the personnel who work for that organization may also have a more positive idea of themselves as professionals. Individuals also tend to build up positive image about the company and protect it from criticism. (Humpreys & Brown, 2002.) Professionals adapt to their professional community at their work and it provides them sense of belonging, stability and values. Belonging to a professional community also reduces ambiguity.
Professional groups often have formed practical knowledge on how professionals draw their daily practice. People tend to determine themselves by processes of social cognition. (Hotho, 2008.) According to social identification theory SIT, people classify themselves into various social categories, such as organizational membership. The social categories form the basis of their social identity. In addition, people have the tendency to maintain a positive self-concept. Social identity is related to the groups the professionals belong to. People aim to belong to groups that are performing well in relation to others. The favorable dimensions are power, status, economic competitiveness and productivity. (Sung et al. 2017.) Researchers have found a link between success on one’s career and successful professional identity construction. Career success and strong professional identity area closely liked. (Slay, 2011.)
Slay (2011) observed that professional identity construction and professional’s self-views are shaped in three ways. Firstly, professional identity results from the socialization process where an
individual is provided with information and descriptions regarding how others associate a profession. Secondly, individuals adapt their professional identity during career changes or transitions to other companies. Finally, work and life experiences influence individuals’
professional identity and clarifies their self-understanding and priorities. (Slay, 2011.)
Slay (2011) proposes a model for professional identity redefinition process. Early influences (e.g.
from family and culture) and professional experiences in working life influence how one experiences their possible self professionally. Individuals have experiences on their possible selves and what kind of skills, attitudes and styles they need to have to have a successful career. Possible selves in turn affects professional’s redefinition of how they redefine their profession and self.
Individuals may also have harmful stigma that defines what they could not be professionally. (Slay, 2011.)
Kuttinen (2008, 208) undermines that in today’s working life, people tend to work for growing number of employers and tend to change organizations more than a few decades ago. It used to be more common to work one’s entire career with one employer. Hence, the current trend in working life might require professionals to develop an identity where one does not attach himself or herself so profoundly into one profession, skill, people or context. As organizations change and exchanging jobs is more and more common, people are forced to develop more flexible identity and be willing to change professions. (Kuusela & Kuittinen, 2008, 108.)
2.3 Change and developing professional identity
Major change situations in organizations affect the organization and its culture as well as the individual and their feelings about the work and workplace. When change is implemented in the organization, the employee’s reactions to it are much dependent on how the change affects them both personally and, in the organizational level. (Sung et al. 2017.)
To implement successful change, often new organizational practices and new roles are needed.
New organizational practices are fundamental in reproducing professional identities. For example, professionals’ professional identity can be developed in contribution to recruiting, promotions, new relationships with clients, team structure, ownership or other organizational practices.
(Schilling et at 2012).
Leaders can affect to employee’s professional identity and try to make them more loyal, dedicated and committed. Professional identity construction begins already during recruitment process. After a professional is selected to a job position, the identity will reform during orientation and introduction. Career paths will develop professional identity and organizational identity. (Alvesson
& Willmott, 2002.)
Hotho (2008) points out that employees could view the change as on opportunity to renew themselves. Professionals are “the collective entrepreneurs of their professional project”. The employee redefines the relation between their profession and others. The professionals will have to reconfigure themselves in changing contexts. (Hotho 2008). Leaders can act as a role model and support and encourage an employee, when they construct their professional identity. (Kuusela &
Kuittinen 2008, 115.)
If the company succeeds due to the change and the organizational status will enhance, the personnel might become more positively socially identified and attach better to the new organization. The expectations that personnel have towards to the change in the organizations’
status and appropriateness of the upcoming change are in more favor to successful change. (Sung et al. 2017.)
Sung et al. (2017) suggest that the personnel’s expectations towards change can be categorized to personal valence and organizational valence. Personal valence is individually focused concerns, for example employees' image that they will benefit or suffer personally in result of change in an organization. When organizational change is major, employees may feel uncertain of their job security and personal status. In addition, they will feel uncertainty, loss of power, loss of influence, changes in the fairness and unsure of how they will perform in the new refined work. (Sung et al.
2017.)
Organizational valence is “the extent to which an employee believes that a change effort will result in benefits in the organization”. The personnel are more likely to find the change negative, if the change effects to the status of the organization critically. On the other hand, the personnel are also more likely to feel more positive towards the change, if the change is beneficial or appropriate to the organization. (Sung et al. 2017.)
In case of changing work role, change can trigger negative emotions like fear, stress, insecurity and even resistance to change. If there is major change situation and one’s work continues, the person may also become more committed to the company. Personnel may also expect some sort of professional status in exchange of commitment to the company. (Sung et al. 2017.)
2.4 Change resistance
Change resistance is largely studied phenomenon. Some scholars have claimed that resistance to change is in human nature. Change causes different emotions and including negative feelings such as anxiety. Some people are said to be more naturally against change. (Schilling et al. 2012). When the changes are more significant, also more stronger reactions are to be expected. (Aleksic et al.
2014.) To successfully implement change, employees should be motivated to actively take part to change implementation and to refuse change resistance. (Aleksic et al. 2014)
In addition to negative emotions, change can cause lowering of trust, decrease in work performance and lack of engagement. Change resistance means negative attitudes and counter proactive actions against change initiatives. The employees that do not believe in the change and do not understand the motive to change can question the reasons behind the change and can have a lack of motivation towards the change. Change resistant personnel question the change initiatives of managers that drive the change. Successful change requires trust for the management and the organization.
(Blanca & Ramona 2016.)
Organizational change can generate difficult context for the employees, which can result to discomfort in the employee. Organizational development result in changes in the colleagues, superiors and organizational culture. The attitude of the employee is influenced by their previous experiences and the information that is available. Trust for the management plays an important role in accepting the change initiatives. Employees should not be considered as passive in change but have an active role in supplying an answer to change and in enabling it. (Blanca & Ramona 2016.)
There has also been academic debate whether reactions to change are context-specific and are dependent to the consequences for the individual. Naturally, if a professional loses status, monetary benefits or security, there is more resistance. (Schilling et al. 2012).
Change resistance may also be less emotional and the focus may not be in self-interest. Change can be resisted in business focus in mind. Some resist changes as they find that the change will harm the organization or drive the organization to a wrong direction. (Schilling et al. 2012).
It is beneficial to understand employees’ views and opinions towards organizational change to develop the necessary means to motivate the employees towards changes, so that the change resistance would be in the lowest possible level. Employees change responses to change are crucial for the success of change efforts. (Aleksic et al. 2014)
Change resistance may lessen by creating dissatisfaction with the current situation among the employees. The change agent can inform about the situations and the upcoming prospects of the organization and discuss the high standards of performance in the future. Change agents can also develop positive expectations of change. According to research, employees are less change resistant when there is a preferred vision towards the renewed organization and the expectations are positive of the renewed organization. The change agent should communicate well with the employees and provide information of the upcoming change. (Aleksic et al. 2014)
Even if the change in an organization is positive, common reaction to change is fear and uncertainty. Change resistance can be reduced when the change recipients are involved in the change and they can participate. When a person is participating to the change, they will get more integrated with the change initiative. However, involving the personnel in the changes is time- consuming. (Aleksic et al. 2014)
According to research, change resistance can be eased in many ways. Several scholars have created steps to ease change resistance in organizations. There is consensus among researchers that change resistance can be eased by motivating and inspiring personnel and making the new objectives relevant and clear. Communications is one of the key elements enabling change. There should be constructive feedback and support from the leaders. The progress and achievements should be recognized during the organizational change process. In addition, creating wins for short-term is beneficial, so that there are aims that are easy to achieve. When change resistance occurs, the
management should not let the situation fall back to the old ways of doing, but foster persistence and determination. In addition, recruiting new personnel often reinforces successful change.
(Prediscan & Sacui 2011.)
2.5 Theoretical framework in this study
In this thesis, I investigate how does personnel develop their professional identity after an organizational change. Thus, the literature review in the chapter 2 has considered academic debate in organizational change, professional identity and change resistance. Factors found to be influencing professional identity development have been reported in several studies. Research shows that a strategic change situation causes discomfort in professionals' identity (Schilling et al.
2013; Beddoe 2011; Sung et al. 2013). In addition, as people spend a significant amount of their time in a workplace, our work shapes our identities and more specifically, professional identity.
Professional identity is constructed within networks and social interaction. (Wearing, 2011.) Social identification theory SIT proposes that people classify themselves in different social categories, including organizational membership. Hence, social identity is related to the groups people belong to and forms the basis of their social identity. (Sung et al. 2017). Beddoe (2011) adds by stating that in organizational settings, there is an interaction between the professional identity that is offered to an individual and their professional identity.
A number of researchers have reported that professional identity is under a threat when major organizational changes occur. Organizational change is largely studied phenomenon and there are numerous studies and approaches to organizational change. Many scholars have presented models and frameworks on organizational change (Hodges 2016, 31). It is claimed that identity formation takes place in social settings and through networks in organizations. The change recipients, personnel, are being offered a new role and new ways of working. That encourages the professionals to develop their identities. The social setting in the organization offers the change recipients’ professional identities and naturally, the professionals react to the changes in differing ways. The reaction from the employee depends on the perceived attractiveness of the change and its consequences to one’s career or their new work roles. (Schilling et al. 2013.)
In the point of view of change management, I have created a theoretical framework from the previous studies. Therefore, the thesis has adapted the previous study but provides an own theoretical perspective for the research phenomenon. The dimensions that are essential for the studying construction of professional identity in organizational change from employee perspective.
Picture 3. Theoretical framework in this study
Change resistance links strongly to organizational change situations. Research has found that while the changes are greater, also change resistance will grow. Change resistance often presents itself as lack of motivation and engagement, lowering of trust, and a decrease in work performance.
Organizational
change
Change resistance Professional identity - Employees’
Identity Construction in an
Organizational Change situation
(Aleksic et al. 2014.) Organizational change often can create a difficult context for the employees and hence, discomfort. There is a consensus among researchers that change resistance should be considered in organizational change settings, as being able to involve the personnel in changes in crucial if the changes are meant to be implemented successfully. (Blanca & Ramona 2016). The discomfort affects both professional identity development and causes change resistance. Hence, the two phenomena are closely liked and are therefore both considered in this study.
3 METHODOLOGY
This chapter will introduce the narrative approach that is used in the thesis as the research method.
It also describes how the data was collected from the case company. In addition, the way of data analysis implementation is described. Moreover, the ethical considerations in the thesis are discussed.
The chosen research method influences the outcome of the research. Therefore, choosing right kind of qualitative method is important. The current thesis was conducted with narrative research, which is one way of conducting qualitative research. Qualitative studies are concerned with understanding and interpreting certain phenomenon. (Eriksson & Kovalainen 2016, 4.)
3.1 Methodological approach
The empirical context of the study is a case company. The company operates on housing investment and offers rental houses. The company made a new strategy in 2016. As the company’s strategy changed, it caused many change processes inside the organization, in its several different departments. The study is investigating the customer service unit of the company. The personnel have lived through many changes and their every-day work tasks have changed significantly, due to the new strategy implementation. The teams were reorganized, the office space changed, the IT that is currently used is new and the personnel is expected to have new expertise and ways of working. Some people did not adjust to the change and left the company. In addition, there are more changes ahead, as the digitalization will go even further in the future. The case company suits this research well, as the change has been very significant, and the personnel has had to adapt to a completely new ways of working.
To answer the research question, “how does personnel develop their professional identity after change”, narrative research was conducted. Narrative research is one of the most practical ways of investigating the research question, as the approach allows to investigate the personal experiences that individual has underwent during the change process.
Narratives and stories are about human experience and action. Narratives are one of the basic means in which people explain, understand and organize social relations and main events of their life. Narratives are argued to be beneficial, as people are fundamentally storytellers and by telling narratives, we understand ourselves and our connection to one another. The benefit of narratives is that they are easily memorable, compelling and rich. Narratives also offer context. (Eriksson &
Kovalainen 2008, 210-212.)
Narrative approach is particularly fruitful when studying the phenomenon on micro level in companies (Schilling et al. 2012). Personal narratives are recollection of the events that an individual has experienced. Personal narratives reveal emotions and can focus on certain life events. (Eriksson & Kovalainen 2008, 219).
Collective stories are shared experiences that are co-produced by group of people. In business setting, organizational narratives are shared by the members of an organization. The narratives are also personal but will most likely have gotten influence from the team that the individuals work in. (Eriksson & Kovalainen 2008, 219).
Rhodes & Brown (2005) introduce narratives as a form of communication, by which people in organizations tell each other the expected events, successes, failures, emotions and relationships.
People also use narratives to make sense of their experiences. Narratives create meaning and structure. (Rhodes & Brown 2005)
Narratives are often used in business research. The importance in studying narratives is that they are powerful and natural in organizational communication. Those are special tools of communication in the organizations. For example, managers use stories to inform employees about the preferred vision, role expectations, belief systems, conditions for work behavior or to develop organization culture. Studying organizational narratives is important when wishing to find out how organizational communication affects and creates corporate culture and the power structure within an organization. (Rhodes & Brown 2005).
What is the difference between a story and a narrative? Researchers partly disagree on the meaning of a narrative and a story and what is the difference between them (Boje, 2001). Eriksson &
Kovalainen (2016) define a story as “a piece of fiction that narrates a chain of related events or happenings that involve certain characters”. Stories may be shared within a culture we live in or
they may be private. For example, a story can be known from a movie (for example Titanic) and then shared within a culture. On the other hand, people have their own life story and they may not want to share it with everyone. A story can be fictional or based on facts. (Eriksson & Kovalainen, 2016, 217)
Narrative in turn is “the textual actualization of a story at a specific time, in a specific context and to a specific audience”. Narratives have a coherent plot and defined structure. Narratives have a beginning, a middle and an end. They are meaningful, and often are created in a way that leads to a conclusion. Narratives are also social, and they are targeted for a certain audience. Possibly, narratives create emotions in the audience or the narrator. Drawing on the previous example, the movie Titanic, narrative could be written from Jack’s or Rose’s point of view, and then construct meaning from certain point of view. (Eriksson & Kovalainen, 2016, 218)
Narratives can be divided into grand narratives, collective stories and personal narratives. Grand narratives are “globally shared cultural beliefs ordering, explaining and producing abstract social knowledge”. Personal narratives in turn are more heterogeneous and they focus on the variety of human experiences. Personal narratives are individual’s narrative about the events and emotions that they have experienced. Personal narrative can focus on certain life event or the entire life story of a person. Collective stories are between personal narratives and grand narratives. Collective stories focus on co-produced and shared stories by communities, such as members of an organization. (Eriksson & Kovalainen 2016, 218-219). In this thesis, the respondents have told personal narratives about their own experience and how they have experienced the organizational change.
3.2 Data collection
Narrative data can be collected in many ways, such as interviews, oral histories, family stories, journals, letters, field notes and stories from the field. In interview setting, as the researcher is present in the interview, it leads them to co-author the narrative, because the interviewer is present in the context that the in which the meaning is constructed. The narrative interviews can be done with individuals or groups. (Eriksson & Kovalainen 2016, 219-220.) In the current thesis, the data was collected with eight semi-structured interviews. Three of the interviewees were managers in the case company and five were employees in the customer service unit. The managers were interviewed to gain in-depth understanding of the occurred change in the case company. More
specifically, they were interviewed to gain information why the change had been implemented and what changes had been carried out.
Interviews can be conducted with structured, semi-structured or unstructured way. In this study, the method was semi-structured interview using narrative form. Semi-structured interviews are suitable, when there is already some knowledge on the topic, but more information is needed. The researcher often chooses to use semi-structured interview, as they already possess some information on the studied topic and some of the issues are already identified. In semi-structured interviews, there is a list of interview questions, but they may be asked in verifying order and dialogue between the participant and interviewer may take place. (Wilson 2013, 25.) In the current thesis, semi-structured interview was a natural choice, as the company was familiar to the researcher and there was a general idea on the occurred change.
Interviews collect views and opinions on the topic that is under the study. Many interviews aim to collect attitudes, facts and reveal the reality behind the phenomenon. Interviews are recorded interaction between the interviewer and the interviewee. The both parties that are present influence interviews. Such conversation between the practitioner and researcher can be a rich source of knowledge and they produce narratives. Interviewee is the professional in their own profession and they are the experts of their own life and how they have experienced certain life events.
(Czarniawska 2004, 47-49.)
In many cases, the responses in interview are naturally formed into narratives. This is usual, when the respondent is discussing career descriptions. In addition, when the purpose of the interview is to find out a historical description of certain event or process. (Czarniawska 2004, 51.)
The interviews of this thesis took elements from two different forms of qualitative interviewing, positivist and emotionalist forms. The first three interviews that were carried out with the managerial level of the company were more positivist approach, meaning that during the interview;
more questions that are detailed were asked, such as what happened, why the change occurred and what the consequences were. The aim in positivist approach is to find out the actual truth and facts behind certain phenomenon. While interviewing the managers, the aim was to find out the background and reasons for the change and therefore the positivist approach was suitable.
(Eriksson & Kovalainen 2008, 79.)
While the team members were interviewed, more emotionalist approach was put into practice.
Emotionalist interviews are concerned with the authentic experiences of the interviewee and the goal was to find out, how people experienced the situation. Emotionalist and positivist interviews typically ask interview questions that start with “how”. (Eriksson & Kovalainen 2008, 80.) The data was collected in Finnish, as all participants were native Finnish speakers. This allowed the participants to use richer language. Below is a table that describes the data collection for the study.
Table 1. Data collection
Interviewee Method of data collection
Date of the data collection
Duration Transcribed pages
Manager Narrative interview
18.1.2019 58 minutes 12
Manager Narrative interview
18.1.2019 41 minutes 8
Manager Narrative
interview 21.1.2019 39 minutes 8
Customer service specialist
Narrative interview
12.3.2019 45 minutes 8
Customer service specialist
Narrative interview
12.3.2019 34 minutes 5
Customer service
specialist Narrative
interview 13.3.2019 51 minutes 9
Customer service specialist
Narrative interview
13.3.2019 30 minutes 5
Customer service specialist
Narrative interview
13.3.2019 25 minutes 4
The data was collected in two different cycles. First, the managers were interviewed and then the data was analyzed, and the theory was revisited. Then, the employees, whose perspective is in the
key role of the thesis, were interviewed. In this way, the author was able to get most of the interviews.
3.3 Analysis of the data
Researcher can choose from many different styles to report the findings from narrative research.
The analysis process can be described as a cycle that withholds analyzing, collecting data, synthesizing and reanalyzing. (Bold 2012, 123.) In this research, the data was revisited and reshaped multiple times before the results were reported in the thesis. The data was analyzed multiple times and theory was revisited in-between analyzing the research data.
The analytical process must be conducted in a way that it fits the purpose of the study. There are multiple ways that researchers find relevant when interpreting qualitative data, such as action research, interactive approach or retrospective approach. (Bold 2012, 124.) In this study, content analysis was chosen.
The data was analyzed using content analysis and the analysis was carried out deductively, meaning that the themes arouse from the theory. Inductive approach in turn means that the codes and categories arise from the data. Deductive approach moves from general information to the specific information. In deductive research, the researcher categorizes the themes from theory and then observes the interview material and investigates and retests the existing data to a new context.
The categories, concepts or models are tested. (Klenke et. al 2015, 94-95.)
Content analysis is often used in business research, as it studies issues concerning communication and the use of language. Language is beneficial to understand the business phenomena. (Klenke et. al 2015, 95.)
Picture 4. Data collection cycle (Bold 2012, 123)
3.4. Ethical issues
Qualitative research is providing descriptions of a social world that we live in. All descriptions of a social world are to some extent bound to a certain perspective. Hence, the reality in research is that the objectivity of research is at stake. (Silverman 1998, 201.) Ethical issues need to be considered when making any research. The issues need to be considered when making justified and legitimate knowledge. (Eriksson & Kovalainen 2016, 65.) Reliability and validity are important features in research making. Even though there are different ways on making qualitative research, objectivity is important in all. Reliability is the degree to which the research’s results are autonomous of the affection of the circumstances in the research setting. Reliability can be tested so that the researcher would investigate the same phenomenon again and receive the same or very similar findings. The quality of research data and transparently describing the research method and allowing access to research data is important in reliability. (Silverman 1998, 203.)
When considering validity, there is a threat that people experience meaning in differing ways. In addition, the connections between written storied text and the interpretations of those texts can differ. People look at the word through certain lenses and can interpret written text in differing way, than it was originally meant. (Polkinghorne 2007.)
Analyzing
Data
collection
Synthesizing
Qualitative research is often made to offer deep understanding. Often qualitative research is conducted with small number of participants and in a context. This was also the reality in the current thesis. The results cannot usually be generalized. However, other research projects may have similar experiences and the results may be similar. (Bold 2012, 4.)
As described above, collecting personal narratives will offer a truth about some phenomenon from the participant’s point of view. The data that is collected will not therefore be generalizable.
However, not every research has to be generalizable but can instead investigate for example certain company and the phenomenon inside of it. The research can be in great value even though the results are not applicable to other companies.
Research ethics in business settings involve important questions such as: Whose interest is served?
How to get access to credible information? What kind of information is available? Also, the research participants should voluntarily participate on the research, research should not harm the participants. (Eriksson & Kovalainen 2016, 69-73.) In this research, the interviewees participated voluntarily.
Well-formed and carefully considered research design leads to a successful and reliable study where as poor design leads the study to less successful outcome. However, for qualitative studies, the nature of the research design is more flexible than fixed. For example, the processes of collecting and analyzing data, developing and modifying theory, elaborating or refocusing the research questions, identifying and addressing validity are happening simultaneously. Qualitative research is not conducted linearly with before-decided steps but happens in cycles where all the components can effect on others. (Maxwell 2013, 2.)
The methodology, validity and research questions must also be closely linked in the research. The chosen methodology must enable to answer the chosen research question. In turn, the methodology must be chosen carefully and keep in mind that the results of the study are valid, and the researchers must strive to avoid any possible biases. (Maxwell 2013, 5). In this research, the narrative method was chosen because it was considered as the best qualitative method to investigate the research question.
Polkinghorne (2007) points out social science knowledge cannot often be measured with statistical analysis or numeric data. Social sciences and narrative research can however produce valid data,
even though it develops knowledge about areas of human experience and action, such as their experienced meanings of their life’s activities or events. Readers of the research must make judgement of the plausibility of the knowledge that is created in the research. The reader makes judgements of how the researcher has reported the study and what kind of evidence and arguments are offered. In narrative research, the reader should read carefully the evidence-based arguments that the writer presents. (Polkinghorne, 2007).
In the current thesis, anonymity was difficult to remain inside of the company, but in the thesis the participants are made anonymous. The participants were informed beforehand, what the research is going to be about. The research was based on a written contract. In the contract, it was agreed on who had access to the data and there is respect for confidentiality and privacy.
4 IDENTITY CONSTRUCTION AFTER ORGANIZATIONAL CHANGE
This chapter will discuss the findings of the empirical study. The chapter offers some important insights into professionals’ identity development in a strategic change situation within the case company. The collected data is presented as two different narratives, one from the leaders’
perspective and the other from the team members’ perspective. Each narrative describes the experiences that are lived through when organizational change occurred.
This study provided an important opportunity to deepen the understanding of both the leaders’ and change recipients’ experiences to the occurred change. The first chapter describes generally the changes that were carried out in the organization. This draws an image for the reader to understand how the circumstances changed in the workplace and enables to understand better the change recipients’ identity development work.
The general change description is followed by the first narrative, which enlightens the leaders’
thoughts and experiences about the change. The second narrative offers reflection about the change from the customer service team members’ point of view. The second narrative describes both the easiness of change and the struggle that was experienced during the organizational change.
Picture 5. Identity development process (Schilling et al. 2013)
The results are discussed in the same order as the steps described in the picture. The framework of Schilling et al. (2013) is used to categorize the results from the narratives. The framework has been used when conducting the deductive content analysis. The narrative of the leaders consists of three managers’ experiences of the occurred change. All managers have led their teams during the organizational change and were involved in the planning process of the change.
The overall descriptions of the change were positive, and the change could also be described as a success story. One of the leaders was specifically hired to lead the change and build the customer service organization to its current form. Two other managers have worked for the company for several years also before this strategic change was carried out.
Nature of the strategic change
This chapter enlightens the reasons for the strategic change in the case company. The case company made a new strategy in 2016, which is called the “Customer first”-strategy. The strategy work started when a new CEO was hired. A new strategy was needed, as the company faced heavier competition in their market. The occupancy rate declined due to more intensive competition in the markets. Therefore, the new Customer first strategy was made to answer to the new competition. It was increasingly important to differentiate from competitors and this was going to be made by providing better service for the customers.
Picture 6. Identity development process (Schilling et al. 2013)
The management had to plan how to survive in the competing market and how to do things differently. The Customer first strategy means that the customer is kept as the driver of the operations. Services were improved and the interaction with customers was seen as highly important. From spring 2017 onwards, the company started to handle their customer relationships themselves.
Before the new strategy, most of the building management of the company’s housing was outsourced to a house managing agency. Due to the changed strategy and shifted mindset in the
company, they decided to take the building management back in the company, which meant that they hired around 30 building managers in-house.
Another major development was made in the customer service unit of the company. The customer service unit had to develop in order to serve the customers better. While the property managers were hired back in-house, all the customer contacts started to come in-house as well. As the building management was outsourced before the change, the customers would contact the house- managing agency if they had problems in their homes, for example broken domestic appliances or other possible faults in the apartment. After the change, all the calls and other contacting started to come directly to the case company.
Picture 7. The nature of the strategic change
The Customer first strategy started a great deal of changes within the organization. The organization structure was changed to enable the strategy better. To implement the changes, new roles were generated. Before the strategy was implemented, the strategy was carefully planned and the employees participated in training sessions that dealt with the upcoming changes. The change was discussed in events where the entire organization took part and the changes were introduced little by little.
4.1 Change in organizational practices and roles – focus in the customer service unit
The thesis examines more closely the customer service unit of the company. The customer service unit consisted of eight employees before the new strategy was implemented. Before, the customer service unit could have been described more as an operator that guided the calls to a right person or a company but did not solve the customers’ issues themselves. As the strategy involved taking the property management back in-house, the amount of customer contacts and calls grew quickly.
Hence, the customer service unit started to grow and develop to its current form.
Tougher competition
in the market
New strategy
Building management
in-house
Increased amount
of customer
contacts
Developing the customer service unit
Picture 8. Identity development process (Schilling et al. 2013)
The customer service units’ employees had to take on multiple new skill sets and adapt to many changes. One major change was the new IT solutions that were taken to use in the everyday work.
There were several new programs that the personnel had to learn to use. Also, the customer service unit changed its location, the team got a new leader, two teams merged as the new customer service organization, and new personnel were hired to the team. All titles of the customer service unit’s personnel also changed.
Picture 9. Changes in the every-day work in the case company’s customer service units’ employees New
skillset
New IT solutions and
programs
New leader and manager
New premises
Two teams emerged, new team New titles
Significantly more diverse job duties
Stakeholders inside the organization
One part of the change was standardizing the services that the customers experience. The aim is that the customers’ experience would be uniform and that the customers will get similar service no matter whom they reach on the phone. The organization also started to pay attention to networks inside of the organization. Moreover, the communication inside of the organization has been more thought of. In addition, the company started to pay more closely attention that the communication is made at the right time.
A manager described the change of the customer service unit’s development as follows:
“We used to have the reception and a concentrated customer service, which was more about conveying calls and answering to the calls. The customer service center has developed so greatly that these two cannot be discussed the same day”.
Even to this date, the personnel has had to learn multiple new duties, skill sets, and new expertise.
The customer service must nowadays also work more comprehensively with stakeholders from inside and outside of the organization. Also, there are now more channels, where the customer service happens, and the team members have had to master new channels.
4.2 Leader’s narrative – “change is hard work”
As the customer service unit’s employees had to learn new skills and a lot was changing, there were multiple emotions and reactions within the team. The managers recognized that there was change resistance when the change occurred.
“We saw and heard that people were going through all sorts of emotions. Some of the job descriptions changed quite radically -- and it was seen that to some it was a challenging and difficult situation.”
“The change arouses a lot of feelings. People have also had negative emotions, which is clear. That needs to be considered. Nevertheless, I would say that those feelings should not be allowed to take over but to keep going forward regardless. People have considered if they were up for the change and have had to say that now this change does not feel good.
