Cognitive Dissonance Theory and It’s Significance for Management and Marketing

Name: SUBHASIS DEBATA

Semester: I

Course: M.A HRM and LR, Batch 2017-19

Enroll no: M2017HRM044

Date: 17th Aug, 2017.

Title: Cognitive Dissonance Theory and it’s significance for Management and marketing

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Analysis:-

 The Organizational Transformation Process: The Micro politics of Dissonance Reduction and the Alignment of Logics of Action. Author(s): Samuel B. Bacharach, Peter Bamberger and William J. Sonnenstuhl-Thispaper discusses how organizational transformation involves alignment, misalignment and realignment of logic of actions of various stake holders at different hierarchy within the organization i.e. the institutional, technical and managerial level. Moreover the paper also discusses how a sudden transformation affects the employees and their well being within the organization, managerial decision, maintaining capability and workforce maintenance.

The theory of cognitive dissonance: A marketing and management perspective. Author(s): E. EserTelciCeydaMaden, DenizKantur, Istanbul Kemerburgaz University, Istanbul Kemerburgaz University, Istanbul Kemerburgaz University- This paper discusses the use of Cognitive dissonance theory by managers and marketing personnel to study employee behavior to transformational changes, entrepreneurial spirit and consumer behavior respectively. The use of this theory to study employee attitudes and behaviors during organizational changes; delineating the psychological reasons of moral conflicts; predicting managerial and entrepreneurial behavior; and clarifying the reasons behind certain consistency development attempts of individuals. In marketing it’s application area is consumer behavior and more specifically, post-purchase situation.

Cognitive Dissonance and Consumer Behavior: A Review of the Evidence Author(s): william h. cummings and m. venkatesan, University of Iowa.- This paper discusses the relationship between cognitive dissonance and self concept. It studies the cognitive consistency from the view point of self affirmation attempt by individuals. Besides it also discusses the role of cognitive dissonance in studying consumer behavior

Reflection:-

After reading the article I came to know about the various dimensions that come into play during transformation processes in organization. I believe that there can never be a transformation process in an organization without proper “alignment” of the interest and active participation of the various stake holders within an organization.  For example An HR wanting to bring about digital technology transformation in an Organization would not be able to do so without taking into cognizance the interest and needs of various stake holders within the organization at managerial and technical level. He might be sitting in an “institutional Level” evolving change ideas rapidly but those ideas won’t put into play without achieving “Cognitive consistency” with the social groups within the organization who are affected by it.  No HR transformation process can be successful without justifying it’s need and its impact on the aspirations and interests of the various parties involved- To say no transformation can be brought about in an atmosphere of “Dissonance” where the logic of actions of the various parties involved are not congruent. I also believe that forced compliance on parties involved wont yield results as it would result in disorientation and resistance from the groups. One example that came across my mind after reading the paper was related to industrial and labour management issue associated with implementation of PMS (People Management System) transformation in an industrial set up.  I have worked in such a set up before and have seen the “dissonance” that occurs due to mismatch of logic of actions. The three major stake holders involved are: - the HR team working on bringing about the PMS implementation-institutional level, the managerial level and the technical people who are the shop floor people. Under the new PMS system, everything starting from punch in- punch out time, salary, bonus, incentives and leave management system for all the employees will be automated. This was a quality oriented logic of action by the HR. Earlier their used to be roll call on shop floor for attendance and linking of incentives to attendance. The shop floor employees used to be lax and this affected productivity due to absentism.  The managers often faced difficulty in maintaining line productivity due to this issue and wanted some measures to check this problem. Proposal of HR transformation was met with fierce resistance from the shop floor employees who were used to lax work environment and because it affected their core interests of salary and attendance linked incentives.  Besides they experienced a collective sense of dissonance when their logic was threatened. They looked at it in form of forced compliance and it affected their emotional well being.  This is the most evident example of changes taking place at institutional level to meet in response to changes occurring in the external environment but the technical level in the short run try to cling to old attitudes and behaviors inconsistent with the transformation process. The managerial level was happy but was skeptical whether it would bring about any significant results at the cost of worker’s disorientation with the process and the management. So it was an atmosphere of “dissonance”.  The big task for the HR at hand was to disallign the existing logic of action between the managerial and technical level and realign it to bring about a smooth transformation. The HR though about it and arrived at measures for bringing about “Cognitive consistency”. It started off by trying to “align” the “logical actions”. Presentations with the top management and line managers explaining how the PMS implementation will improve productivity manifold, discussions with the shop floor employees and apprising them as to how under the new PMS system the incentive structure will become more fair and robust and arranging for an external consultant to come and lecture on significance of HR transformation all these helped in bringing the parties unto table and implement the PMS system. Now that it is running successfully due to the “collective approach“. This paper in sense gives an idea that a transformation or change within an organization involves misalignment and realignment of logic of actions across all the levels-the institutional, managerial and technical level within the organization. An example of this in HR terms can be change management which would require misalignment and realignment of culture and values within the new organization to ensure smooth transformation.