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Organizational Change and Development
Module 2 – MG University
Prepared By
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Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com
Contents
• Organizational development –Concept and evolution-
nature and characteristics.
• First order and second order Change.
• Foundations of Organizational Development.
• Conceptual frame work of OD –Action Research
Model-Positive Model-John Kotter’s eight-stage
process Model.
• Parallel learning structures.
• Process of organizational development –
Organizational Diagnosis .
Case Study – The OD Journey of TCS
Pre-OD Scenario
1) Mounting Revenue Pressures
2) Selectivity in Projects
3) Focus on Specialization
4) Efforts on Experimentation &
Innovation
5) Rewards & Recognition
6) Intergroup Co-ordination &
Knowledge Sharing
7) Branding & PR
Alignment & Structure at TCS
Scenario Building Workshops
Goal Alignment & Balance Scorecard
• A need to re-look at a few organizational processes and systems, as for
instance, the performance management and appraisal system at TCS.
• Teach-Train-Transfer workshop by expert OD consultants- to explore
means of institutionalizing goal-oriented performance management
organization.
• Personal Score Card-clearly outlined what would define goals, outputs,
performance management, Economic Value adds & the ways and means
for facilitating goal alignment.
• The Balanced Scorecard approach was proposed, introducing corporate
goals, which touched upon the following:
– Voice of the Shareholder - Financial Goals e.g. Wealth creation
– Vector of Technology – Technology Goals e.g. Quality, Cost, Delivery
dimensions
– Voice of the Customer – Customer/ Market Goals e.g. Customer Satisfaction
– Voice of the Employee – Learning & Development e.g. Employee Satisfaction
PROPEL
• The Intervention: Culture Building at TCS
• In consonance with the TCS belief of “Let us
make it a joy for all our stakeholders”.
• balance of fun, introspection and
interaction, while evoking commitment to
self development
Confluences
• Platform for problem solving, focus
on the Quality, Cost & Delivery
measures
Camps
Value Card
• It helped to effectively capture and track this
through the following steps:
– The situation summary was charted out
– Improvement goals, action plans and owners of each
plan were identified
– Success measures were identified against the
dimensions of Valuing, Strategizing, Improving, for
each actionable, along with timeframe for closure
– Impact was analyzed in terms of short term and long-
term actions.
Initiatives Deployed
Account
Excellence
Plan
Nakshaktra
Award
In Touch
Associate
Satisfaction
Survey
(Darpan)
Toast
Master
Club/ Lets
Talk
Fun @
Relationship
Level
Open House/
Town Halls
Walk The
Talk
Account Excellence Program
• Meeting all customer requirements
• Minimizing processes variances
• Reduction in Cost Of Quality
• Elimination of waste
• Enhanced Customer Support
• Efficient Product Service
• Flexibility to meet Customer demands
& Market changes
• Rework Reduction
• Continuous Process Improvements
• On-time delivery of major programs
Darpan
• Reflect & Improve
• There was a distinct
increase in the Associate
Satisfaction Index (ASI) in
Darpan 06, which,
interestingly, corresponded
to an increase in Customer
Satisfaction Index (CSI) as
well.
Paradigm Shift: Post OD Scenario
• The earlier tendency of self-sacrificing hard work
was replaced by a shift of focus to teamwork and
valuing of the employee.
• In a nutshell, the OD interventions at TCS have
helped build a culture of fostering systems
thinking & creating forums for dialogue, while
encouraging leadership at all levels.
• For the organization at large, OD helped to
reiterate the merits of valuing enquiry,
expressing differences, and constantly generating
new knowledge.
Introduction to organizational development
Intergroup conflictOrganization
Interpersonal conflicts
Low productivity
Poor alignment to organization’s strategy
Start Point
Introduction to Organizational Development
• The term organizational
development was coined by Richard
Beckhard in the mid-1950s.
• Organizational development is an
acronym of two words i.e.,
organization and development.
• The term consists of two words.
• Organization - A social unit of
people that is structured and
managed to meet a need or to pursue
collective goals.
• Development - The systematic use
of scientific and technical
knowledge to meet specific
objectives or requirements.
Objectives of Organizational Development
1. To increase employees' level of satisfaction
and commitment.
2. To confront problems instead of neglecting
them.
3. To effectively manage conflict.
4. To increase cooperation and collaboration
among the employees.
5. To increase the organization's problem
solving.
6. To put in place processes that will help
improve the ongoing operation of the
organization on a continuous basis.
Implications of Organizational Development
• For Individuals
– Most individuals believe in
their personal growth.
– Majority of the people are
desirous of making greater
contributions to the
organizations they are serving.
Implications of Organizational Development
• For Groups
a) One of the most important
factors in the organization is the
‘work group’ around whom the
organization functions.
b) More people prefer to be part
of the group because the group
accepts them.
c) Most people are capable of
making higher contributions to
the group’s effectiveness.
Implications of Organizational Development
• For Organization
a) Create learning organization
culture.
b)Adopt win-win strategy for
sustained growth.
c) Create cooperative dynamics
rather than competitive
organizational dynamics in
the organization.
Organizational Development: How
Effective Is It?
20
30
40
50
PercentageofStudiesShowingPositiveChanges
Individual
outcomes
(e.g., job
satisfaction)
Organizational
outcomes
(e.g., profit)
(23.55)
(48.70)
Organizational outcomes
more often benefited from
OD interventions than did
individual outcomes
(Source: Porras and Robertson, 1992.)
Scope of Organizational Development
• Organization Effectiveness
• Organization Design
• Organization Assessment
• Organization-Wide System/Process Change
• Performance Excellence
• Succession Planning
• Performance Coaching
• Team Intervention
Problems with OD
• Too little “O” in OD
– Few consultants are engaged
in the system-wide efforts
that are OD.
– Most are using OD
techniques in limited ways
because of “reductionist
thinking legacy”.
Problems with OD
• Too exclusive an
emphasis on human
processes
– excludes task and
content contributions
– prevents integration of
social and technical
systems
– potentially
distorts/over-simplifies
diagnoses
Problems with OD
• Rigid adherence to humanistic
values, making field’s strength a
weakness
– blindness to forces and
perspectives beyond human
factors
– humanistic values can “trump”
research on what works and
doesn’t
– advocacy for the “right” values vs.
helping clients
– Anti-leadership bias can lead to
seeing the client as the enemy
– devalue organizational politics
OD and HRM
• As HR takes on an increasingly
transformational role, OD will
enable HR professionals to:
– support transformation
– work on organization design
– design and deliver learning and
development interventions
– support clients in major change
and organization design
projects
– analyze and improve the overall
health of the organization
– keep the organization healthy
and fit for future challenges.
Key concepts – Organizational Change
• Organization change is the
process of learning and
behaving differently, in order
to achieve new and better
outcomes, by reordering the
system structures that drive
behavior.
– Organization change is a
departure from the status quo.
– It implies movement toward a
goal, an idealized state, or a
vision of what should be and
movement away from present
conditions, beliefs, or attitudes.
Key concepts –Change Agent
• Cummings and Worley
(2005) define a change
agent “as a person who
attempts to alter some
aspect of an organization
or an environment.
– Change agents may come
from inside an organization,
in which case they are
called internal consultants,
or they may come from
outside an organization, in
which case they are called
external consultants.”
Key concepts –Client
• The client is the
organization, group, or
individuals whose interests
the change agent primarily
serves.
– A key question for any OD
consultant to consider is
“Who is the client?” (Varney,
1977).
– On occasion, the “client” may
not be the one who originally
sponsored or participated in
the change effort.
Key concepts –Culture & Climate
• One focal point of OD is
making changes in an
organization’s culture.
• Culture should not be
confused with climate.
Culture refers to the overall
organization.
• Climate refers more
specifically to how things
are done in a local team,
department, or site.
Key concepts – Intervention
• Cummings and Worley
(2005) define intervention
as “any action on the part
of a change agent.
• [An] intervention carries
the implication that the
action is planned,
deliberate, and
presumably functional.”
Key concepts – Sponsor
• A sponsor is one who
underwrites,
legitimizes, and
champions a change
effort or OD
intervention.
Key concepts – Stakeholder
• A stakeholder is
anyone who has a
stake in an OD
intervention.
– Stakeholders may be
customers, suppliers,
distributors, employees,
and government
regulators.
Definitions of organizational development
Definition - Richard Beckhard
• Organization development is an
effort (1) planned, (2)
organization-wide, and (3)
managed from the top, to (4)
increase organization
effectiveness and health through
(5) planned interventions in the
organization’s “processes,” using
behavioral-science knowledge.
Definition - Warner Burke
• OD is a planned process
of change in an
organization’s culture
through the utilization of
behavioral science
technology, research, and
theory.
Definition - Wendell L French
OD refers to a long-range
effort to improve an
organization’s problem-
solving capabilities and its
ability to cope with
changes in its external
environment with the
help of external or
internal behavioral-
scientist consultants.
Definition - Michael Beer
OD is a system-wide process of
data collection, diagnosis, action
planning, intervention, and
evaluation aimed at: (1) enhancing
congruence between
organizational structure, process,
strategy, people, and culture; (2)
developing new and creative
organizational solutions; and (3)
developing the organization’s self-
renewing capacity. It occurs
through collaboration of
organizational members working
with a change agent using
behavioral science theory,
research, and technology.
Characteristics of Organizational Development
Characteristics of Organizational Development
• Focus on culture and
process
– Organization development on
culture : following suitable
and positive culture level and
process success organization
development program.
Characteristics of Organizational Development
• Collaboration
– Organization development
encourages heartfelt
collaboration between top
management, managers and
employees.
Characteristics of Organizational Development
• Accomplishment of tasks
– Various kinds of teams and
groups play important roles
for accomplishment of
organization development
activities. Thus targets can
also be achieved.
Characteristics of Organizational Development
• Human and social sides
– Organization development
focuses on both human and
social sides. By doing so, it
intervenes in the
technological and structural
sides also.
Characteristics of Organizational Development
• Participation
– Participation and involvement of
managers and players can make
the organization development
process a success. It helps to
exchange views and ideal related
to organization development.
Characteristics of Organizational Development
• System change
– Organization development
focuses on total system
change. Because every change
is inevitable for the success of
any development program.
Characteristics of Organizational Development
• Facilitation
– There are three parties to
organization development
process. They are facilitators,
collaborators and co-learners in
the client system. Cooperation
of all these parties can help the
organization to develop.
Characteristics of Organizational Development
• Over arching goals
– An overarching goal of the
organization is to make the
client system able to solve its
problems. It is done by teaching
the skills and knowledge on
continuous learning through self
analytical methods.
Characteristics of Organizational Development
• Action research model
– Organization development
activities are undertaken
following the conclusions and
recommendations of action
research members related to
client system.
Characteristics of Organizational Development
• Developmental view
– Organization development takes
a developmental view for the
betterment of both process and
organization. Another practice in
organization development
programs is to create win-win
solutions.
History of organizational development
History of OD
• Kurt Lewin (1898–1947) is
widely recognized as the
founding father of OD,
although he died before
the concept became
current in the mid-1950s.
• From Lewin came the
ideas of group dynamics
and action research which
underpin the basic OD
process as well as
providing its collaborative
consultant/client ethos.
History of OD
• Institutionally, Lewin
founded the "Research
Center for Group
Dynamics" (RCGD) at MIT,
which moved to Michigan
after his death.
• RCGD colleagues were
among those who
founded the National
Training Laboratories
(NTL), from which the T-
Groups and group-based
OD emerged.
History of OD
• Douglas McGregor and Richard
Beckhard while "consulting
together at General Mills in the
1950s, the two coined the term
organization development (OD) to
describe an innovative bottoms-
up change effort that fit no
traditional consulting categories"
History of OD
• 1947 – National Training
Laboratories Founded NTL in USA
advances the research into applied
behavioural sciences, develops
understand of change agent role and
experiential learning.
• 1950’s – Human Relations
Movement Growth of social and
developmental psychology.
History of OD
• 1951 – Socio-Technical System Thinking
(STS) Tavistock Institute (UK) research
shows that combining social factors with
technological changes increases
effectiveness, efficiency and moral.
• 1967 – Survey Research Methods Likert
and Mann pioneer survey feedback to help
organizational leaders understand the
impact they have on the people and
performance of the organization.
History of OD
• 1968 – Creation of the T Group Lewin (USA)
and Tavistock Institute develops unstructured
group laboratory training, and action learning
sets.
• 1974 – OD as Planned approach to Change
Friedlander and Brown research OD as a
method of planned change effort
• 1980’s – General Systems Theory Neilsen and
Schein promote OD as activities that influence
the social processes within an organisation. -
History of OD
• 1997 – Organizational
Effectiveness Linking the
application of OD in planned
development interventions to
the improvement of
organizational effectiveness.
• 2000’s to Present – Complexity
Theory OD continues to be
informed by new insights and
research in a number of
disciplines including natural
sciences, biology and physics as
well as developments in the
social and behavioural sciences.
1-64
Five Stems of OD Practice
CurrentPractice
Laboratory Training
Action Research/Survey Feedback
Participative Management
Quality of Work Life
Strategic Change
1950 1960 1970 1980 1990 2000
Assumptions in organizational development
Assumptions in OD
• The Organization
development has a number
of underlying assumptions
which can be examined so
as to determine how the OD
programmes can be utilized
to the fullest potential.
• These assumptions are
based upon French and Bell.
Assumptions in OD
• Most individuals have
drives towards personal
growth and development.
– The work habits are a
response to work
environment rather than
personality traits.
– Accordingly, efforts to change
work habits should be
directed towards changing
how the person is treated
rather than towards
attempting to change the
person.
Assumptions in OD
• Highest productivity can
be achieved when the
individual goals are
integrated with
organizational goals.
– Also with such integration,
the quality of the product is
highly improved.
Assumptions in OD
• Cooperation is more
effective than competition.
– Conflict and competition tend
to erode trust, prohibit
collaboration and eventually
limit the effectiveness of the
organization.
– In healthy organizations,
“efforts are made at all levels
to treat conflict as a problem
subject to problem solving
methods.
Assumptions in OD
• The suppression of
feelings adversely affects
problem solving, personal
growth and satisfaction
with one’s work.
– Accordingly, free expression
of feelings is an important
ingredient for commitment
to work.
Assumptions in OD
• The growth of individual
members is facilitated by
relationships, which are
open, supportive and
trusting.
– Accordingly, the level of
interpersonal trust, support
and cooperation should be
as high as possible.
Assumptions in OD
• The difference between
commitment and agreement
must be fully understood.
– Agreeing to do something is
totally different from being
committed to do something.
– Sense of commitment makes it
easy to accept change and the
implementation of change for
the purpose of organizational
development is even easier
when such a commitment is
based upon participation in the
process.
Assumptions in OD
• OD programmes, if they
are to succeed, must be
reinforced by the
organization’s total
human resources system.
Ethics and Values of organizational development
Ethics of OD
• RESPONSIBILITY TO
OURSELVES
– Acting with integrity and
Authenticity.
– Striving for self-knowledge
and personal growth
– Asserting individual
interests in ways that are
fair and equitable.
Ethics of OD
• RESPONSIBILITY FOR
PROFESSIONAL DEVELOPMENT
AND COMPETENCE
– Accepting responsibility for the
consequence of our acts.
– Developing and maintaining
individual competence and
establishing cooperative
relations with other
professionals.
– Recognizing our own needs and
desires, and dealing with them
responsibly in the performance
of our professional roles.
Ethics of OD
• RESPONSIBILTY TO CLIENTS
AND SIGNIFICANT OTHERS.
• Serving the long-term well-
being of our client system
and stakeholders.
• Conducting ourselves
honestly, responsibly, and
with appropriate openness.
• Establishing mutual
agreement on a fair
contract.
Ethics of OD
• RESPONSIBILITY TO THE OD
COMMUNITY.
– Contributing to the
continuing professional
development of other
practitioners and field of
practice.
– Promoting the sharing of
professional knowledge and
skill.
– Working with other
professionals in ways that
exemplify what the
profession stands for.
Ethics of OD
• SOCIAL RESPONSIBILITY.
– Acting with sensitivity to the
consequences of our
recommendations for our client
system and the larger systems
within they are a subsystem.
– Acting with awareness of our
cultural filters and with
sensitivity to multinational and
multicultural differences and
their implications.
– Promoting justice and serving
the well-being of all life on
earth. -
The Ethics of OD:
Summary of the Debate
OD is
unethical
• Imposes values of the
organization; coercive
and manipulative
• Potential for abuse
OD is
ethical
• The imposition of values
is an inherent part of life,
especially on the job
• Abuse comes from
individuals, not from
the technique itself,
which is neither good
nor evil
Antecedents Process Consequences
Ethical Dilemmas
• Misrepresentation
• Misuse of data
• Coercion
• Value and goal
conflict
• Technical
ineptness
Role Episode
• Role conflict
• Role ambiguity
Role of
the
Change
Agent
Role of
the
Client
System
Values
Goals
Needs
Abilities
A Model of Ethical Dilemmas
Values of OD
• Ethics based on values help
OD practitioners guide
themselves as they move
along the paths of their
work and lives.
• Values are set of manners
that individuals learn while
growing up. It is different
from ethics because ethics
are publicly agreed on, and
publicly stated, guidelines
for a practice in a
profession.
Values of OD
• Three types of OD Values
– Humanistic
– Optimistic
– Democratic
Humanistic Values
• They proclaim the
importance of the
individual.
• Respect the whole person.
• Treat people with respect
and dignity.
• Assume that every one
has intrinsic worth.
• View all people as having
the potential for growth
and development.
Organic Values
• They post that people are
basically good.
• Progress is possible and
desirable.
• Rationality, reason, and
goodwill are the tools for
making progress.
Democratic Values
• They assert the sanctity of
the individual.
• The right of people to be free
from misuse of power.
• Use of fair and equitable
treatment for all.
• Need for justice through rule
of law.
OD practitioner
The Organization Development Practitioner
• Internal and External
Consultants
• Professionals from other
disciplines who apply OD
practices (e.g., TQM managers,
IT/IS managers, compensation
and benefits managers)
• Managers and Administrators
who apply OD from their line
or staff positions
Role Demands on OD Practitioners
• Position
– Internal vs. External
• Marginality
– Ability to straddle boundaries
• Emotional Demands
– Emotional Intelligence
• Use of Knowledge and
Experience
Competencies of an Effective OD
Practitioner
KNOWLEDGE
Foundation Competencies
• Organization Behavior
– Organization Culture
– Work Design
– Interpersonal Relations
– Power and Politics
– Leadership
– Goal-Setting
– Conflict
– Ethics
• Individual Psychology
– Learning theory
– Motivation theory
– Perception theory
• Group Dynamics
– Roles
– Communication Processes
– Decision-Making Processes
– Stages of Group Development
– Leadership
Foundation Competencies
• Management and Organization
Theory
– Planning, organizing, leading, and
controlling
– Problem solving and decision making
– Systems theory
– Contingency theory
– Organization structure
– Characteristics of environment and
technology
– Models of organization and system
Foundation Competencies
• Research Methods / Statistics
– Measures of central tendency
– Measures of dispersion
– Basic sampling theory
– Basic experimental design
– Sample inferential statistics
• Comparative Cultural Perspectives
– Dimensions of natural culture
– Dimensions of industry culture
– Systems implications
Foundation Competencies
• Functional Knowledge of Business
– Interpersonal communication
– Collaboration / working together
– Problem solving
– Using new technology
– Conceptualizing
– Project management
– Present / education / coach
Foundation Competencies
Core Competencies
• Organization design
• Organization research
• System dynamics
• History of organization
• Theories and models for change
Competencies of an Effective OD
Practitioner
SKILLS
Core Competencies
• Managing the consulting process
• Analysis/diagnosis
• Designing/choosing appropriate, relevant
interventions
• Facilitation and process consultation
• Developing client capability
• Evaluating organization change
Client vs. Consultant Knowledge
Plans Implementation
Recommends/prescribes
Proposes criteria
Feeds back data
Probes and gathers data
Clarifies and interprets
Listens and reflects
Refuses to become involved
Use of Consultant’s
Knowledge and
Experience
Use of Client’s
Knowledge and
Experience
Future of OD
• the following concerns remain
constant for leaders and OD
practitioners. How do we:
– build a sustainable high-
performance organization in which
individual workers take an active
part in achieving the required
output?
– Appropriately build engaged,
proactive, empowered staff when
there are limited reward levers
organization can pull while needing
to hold staff accountable?
– Solve the problems of aligning and
integrating diverse cultural
elements?
Future of OD
• Ensure there are fluid two-way
communication channels – so that
information can flow upward as
well as downward within
hierarchies?
• Help organizations to be
externally sensitive and internally
agile?
• Build organizational climates that
will release human potential and
creativity at work and foster
continuous learning and renewal
culture within organizations?
Four Key Orientations of OD
• A systemic orientation
• A problem-solving
orientation
• A humanistic orientation
• An experiential learning
orientation
Four Key Orientations of OD
• A systemic orientation
– The understanding that all
parts of an organization
(structure, technology,
processes, people) are
highly connected. Problems
can occur at one or more
levels and have far reaching
consequences throughout
the organization
Four Key Orientations of OD
• A problem-solving
orientation
– A focus on problem
identification, data
gathering, option
generation, cost/benefit
analysis, decision-making,
action planning,
monitoring, review and
adaptability - in the light
of subjective experience
Four Key Orientations of OD
• A humanistic
orientation
– A positive belief
about the potential
of people, their
rights, their need for
autonomy and
support in varying
measures, and the
value of their
subjective
experience
Four Key Orientations of OD
• An experiential learning
orientation
– An acceptance that
training, development
and organizational
learning should be based
on the subjective
experiences of all those
involved.
Basic Organization Development Model
Diagnosis of
Situation
Introduction of
interventions
Progress
Monitoring
Feedback
Organization Development
Interventions
Organization
Development
Structural TechniquesRelationship Techniques
T-group Training
Team Building
Survey Feedback
Job Redesign
Management by Objectives
Supplemental Organizational
Processes
Organizational Learning
Exploitative
Learning
Exploratory
Learning
Organization Development Across
Cultures
Ethnocentric
Attitude and
Stereotyping
Flexibility
Knowledge of
Specific Cultures
Interpersonal
Sensitivity
OD Process
Operational Components of OD
The Diagnostic Phase
• The Diagnostic Phase Involves
• Client's top management to
recognize the problems and
have awareness of the need
for change in the organisation.
• The engagement of change
agent or consultant by client
organisation.
• Diagnosis in OD is a
collaborative process which
involves the client system and
consultant's joint collection
and analysis of data.
The Diagnostic Phase
• Emphasis is on continuous and
participative diagnosis.
• OD consultant may make use of
tools such as questionnaire
(survey) and interview schedules
(consultation meetings).
• In brief, OD diagnosis attempts to
analyze the current stale of the
organisation in terms of various
structures, systems and process in
order to identify actual and
potential strengths and
weaknesses.
Acton Plan/Strategy Development
• Sharing of joint diagnosis of
problems by the consultant
and client team to the top
management in an OD
workshop.
• In this workshop top
management jointly develops
action plans and strategies In
the form of interventions (e.g.
team-building and OD grid,
etc.) to bring about changes
or improvement.
Action and Stabilization Phase
• Implementation of
action plans—changes
through intervention.
• Long drawn series of
actions that may last
several months such as
grid OD intervention of
Blake and Mouton.
Action and Stabilization Phase
• This phase of interventions of
OD process takes place under
conditions of unfrozenness,
mobilizing efforts which is
necessary for changes to
have an impact.
• Allowing changes to stabilize
and to permeate the culture
of the organisation. To
ensure that the positive
clement of change
programme are diffused to
other parts of the
organisation.
Feedback of Changes. Evaluation and
Making Modification Phase
• This phase consists of
monitoring and reviewing the
progress of the actions by
collecting feedback about the
changes introduced.
• Making modification in case
need arise. Mid-course
corrections.
• In case some new problems
are revealed in the collection
of data (survey/consultation
process) another phase is
commenced.
Feedback of Changes. Evaluation and
Making Modification Phase
• In the event of achievement complete
success, it has to be ensured client team
is competent enough to maintain the
changed system without the support of
the consultant, as there is tendency
among organizations to revert to their
original states. Consultant can thus
withdraw.
• In nutshell, OD practitioners, both
internal and external consultants may
counsel decision makers on an individual
basis, work to improve working
relationships among the members of
working group or team.
Conditions for managing change
through OD process
• Management and all those
involved must have high and
visible commitment to the effort.
• People who are involved need to
have advance information that
enables them to know what is to
happen and what they are to do.
• The effort (especially the
evaluation and reward systems)
must be connected to other
parts of the organisation.
• The effort needs to be directed
by line managers and assisted by
a change agent if necessary.
Conditions for managing change
through OD process
• The effort must be based on good
diagnosis and must be consistent with
the conditions in the organisation.
• Management must remain committed
to the effort throughout all its steps,
from diagnosis's through
implementation and evaluation.
• Evaluation is essential and must
consist of more than asking people
how they felt about the effort.
• People must see clearly the
relationship between the alfort and
the organisation's mission goals.
Assessment of OD
• Assessing OD intervention
involves judging about
whether an intervention
has been implemented as
intended and if so,
whether it is having
desired results.
Assessment of OD
• There are two distinct types of
OD assessment: On intended to
guide the implementation of
intervention and another to
assess their overall impact.
• Assessment aimed at guiding
implementation may be called
implementation assessment
and assessment intended to
discover intervention outcomes
may be called evaluation
assessment.
Assessment of OD
• Assessment of OD involves
decision about measurement
and research design.
• Measurement issues focuses
on selecting variables and
designing good measures.
• Research design focuses on
setting up the conditions for
making valid assessments of
an OD interventions effect.
Implementation and evaluation
assessment
Cummings & Worley, 7e (c) 2001 South-
Western College Publishing
11-128
Implementation
Feedback
• Feedback aimed at
guiding
implementation efforts
• Milestones,
intermediate targets
• Measures of the
intervention’s progress
Evaluation
Feedback
• Feedback aimed at
determining impact of
intervention
• Goals, outcomes,
performance
• Measures of the
intervention’s effect
Conditions for Failure in OD
Effort
Conditions for Failure in OD Effort
• A continued discrpancy between
top management statements of
values and styles and their
actual work behaviour.
• A big program of activities
without any solid base of change
goals.
• Overdependence on outside
help: With the incresing
complexity of organizations and
of the demands of the
environment, it is easy to let
consultants or specialists `solve
the problem.’
Conditions for Failure in OD Effort
• A large gap between the
change effort at the top of
the organisation and efforts
in the middle of the
organisation.
• Trying to fit a major
organisation change into an
old structure.
• Lack of process-consultation
skills among key members
of the organisation.
Conditions for Failure in OD Effort
• Applying an intervention or
strategy inappropriately.
• Too rapid changeover in top
posts, and new people not
interested in OD.
• Lack of courage and
willingness of top
management to call a spade
a spade, in relaton to
strategy, task, relationships,
and concrete achievements.
Conditions for success in OD Effort
• There is a pressure on the top
management which induces
some arousal to action.
• There is some form of
intervention at the top, either a
new member of the
organisation, or a new staff
head in organisation
development.
• There is diagnosis of the
problem areas and this induces
an analysis of specific
problems.
Conditions for success in OD Effort
• There is reinforcement in
the system from positive
results and this produces
acceptance of the new
practices.
• There is pressure from the
environment, internal or
external for change.
• There is collaboratory
problem indentification
between people in the
organisation.
Conditions for success in OD Effort
• There is a willingness to face
the data of the situation and
to work with it on changing
the situation.
• The system rewards people
for the efforts of changing
and improvement, in
addition to rewarding them
for short-term results.
• There is leadership and
inspired vision among key
people.
Action research
Action Research
• Dual purpose of action
research:
– Making action more
effective.
– Building a body of scientific
knowledge around that
action.
• Action refers to: Programs
and interventions
designed to solve
problems and improve
conditions.
A Process and An Approach
• Action research is a process, an
ongoing series of events and
actions.
• Definition:
– Action research is the process of
systematically collecting research
data about an ongoing system
relative to some objective, goal, or
need of that system;
– feeding these data back into the
system;
– taking actions by altering selected
variables within the system based
both on the data and on hypotheses;
and
– evaluating the results of actions by
collecting more data.
Action research
• It was conceptualized by Kurt Lewin
and later elaborated and expanded
on by other behavioral scientists.
• Concerned with social change and,
more particularly, with effective,
permanent social change, Lewin
believed that the motivation to
change was strongly related to
action.
• If people are active in decisions
affecting them, they are more likely to
adopt new ways.
• "Rational social management", he
said, "proceeds in a spiral of steps,
each of which is composed of a circle
of planning, action, and fact-finding
about the result of action".
Kurt Lewin’s Action Research Model
• The process of change
involves three steps
– Unfreezing: Faced with a
dilemma or disconfirmation,
the individual or group
becomes aware of a need to
change.
– Changing: The situation is
diagnosed and new models of
behavior are explored and
tested.
– Refreezing: Application of
new behavior is evaluated,
and if reinforcing, adopted.
Action research
• Action research is depicted
as a cyclical process of
change.
• The cycle begins with a
series of planning actions
initiated by the client and
the change agent working
together.
• The principal elements of
this stage include a
preliminary diagnosis, data
gathering, feedback of
results, and joint action
planning.
Action research
• In the language of
systems theory, this is the
input phase, in which the
client system becomes
aware of problems as yet
unidentified, realizes it
may need outside help to
effect changes, and
shares with the
consultant the process of
problem diagnosis.
Action research
• The second stage of
action research is the
action, or transformation,
phase.
• This stage includes actions
relating to learning
processes (perhaps in the
form of role analysis) and
to planning and executing
behavioral changes in the
client organization.
Action research
• Included in this stage is
action-planning activity
carried out jointly by the
consultant and members
of the client system.
• Following the workshop or
learning sessions, these
action steps are carried
out on the job as part of
the transformation stage.
Action research
• The third stage of action
research is the output, or
results, phase.
• This stage includes actual
changes in behavior (if any)
resulting from corrective
action steps taken following
the second stage.
Action research
• Data are again gathered from
the client system so that
progress can be determined
and necessary adjustments in
learning activities can be
made.
• Minor adjustments of this
nature can be made in
learning activities via
Feedback Loop B.
• Major adjustments and
reevaluations would return
the OD project to the first, or
planning, stage for basic
changes in the program.
Action research
• Data are not simply returned
in the form of a written
report but instead are fed
back in open joint sessions,
and the client and the change
agent collaborate in
identifying and ranking
specific problems, in devising
methods for finding their real
causes, and in developing
plans for coping with them
realistically and practically.
Action research
• Scientific method in
the form of data
gathering, forming
hypotheses, testing
hypotheses, and
measuring results,
although not pursued
as rigorously as in the
laboratory, is
nevertheless an
integral part of the
process.
Action research
• Also sets in motion a
long-range, cyclical,
self-correcting
mechanism for
maintaining and
enhancing the
effectiveness of the
client's system by
leaving the system with
practical and useful
tools for self-analysis
and self-renewal.
Action Research Process
Growth of OD in Global Settings
• The rapid development
of foreign economies.
• The increasing
worldwide availability
of technical and
financial resources.
• The emergence of a
global economy.
Cross-cultural Dimensions
• Power Distance
• Uncertainty
Avoidance
• Achievement
Orientation
• Individualism
• Context
Power Distance
• Extent to which members
of a society accept that
status and power are
distributed unequally in
an organization.
• Organizations in these
cultures tend to be
autocratic, possess clear
status differences, and
have little employee
participation.
Uncertainty Avoidance
• The extent to which
members of a society
tolerate the unfamiliar
and unpredictable.
• Organizations in these
cultures tend to value
experts, prefer clear
roles, avoid conflict,
and resist change.
Individualism
• The extent to which people
in a society believe they
should be responsible for
themselves and their
immediate family.
• Organizations in these
cultures tend to encourage
personal initiative, value
time and autonomy, and
accept competition.
Achievement Orientation
• The extent to which people
in a society value
assertiveness and the
acquisition of material
goods
• Organizations in these
cultures tend to associate
achievement with wealth
and recognition, value
decisiveness, and support
clear sex roles
Context
• The extent to which
meaning in
communication is carried
in the words.
• Organizations in high
context cultures tend to
value ceremony and ritual,
the structure is less formal,
there are fewer written
policies, and people are
often late for
appointments.
Cultural and Economic Contexts of
International OD Practice
Worldwide Organizations
• Offer products or services
worldwide.
• Balance product and functional
concerns with geographic
issues.
• Coordination must address
complex personnel and cross-
cultural issues.
• Its competitive position in one
national market is affected by
its competitive position in
other national markets.
Trends Affecting OD Practice
Trends Affecting OD Practice
• Environmental
Trends
 Wealth is becoming
more concentrated
 Economy is more
globalized.
 Ideologies are shifting
from consumption to
coexistence and
ecological
sustainability.
Trends Affecting OD Practice
 Workforce Trends
 Workforce is
becoming older, more
diverse, more
educated.
 Shift toward
contingent
employment &
change in
psychological
contract.
 No careers.
Trends Affecting OD Practice
• Technology Trends
 Internet growth will
increase.
 E-commerce growth.
 Increased rate and
pervasiveness of
technological change.
Trends Affecting OD Practice
 Organizational Trends
 Organizations will
become both smaller
and larger; more and
less decentralized.
 Virtual, networked,
alliance based.
 Truly global
management structures
and cultures.
Organizational Change and Development - Module 2 - MG University - Manu Melwin Joy

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Organizational Change and Development - Module 2 - MG University - Manu Melwin Joy

  • 1. Organizational Change and Development Module 2 – MG University
  • 2. Prepared By Kindly restrict the use of slides for personal purpose. Please seek permission to reproduce the same in public forms and presentations. Manu Melwin Joy Assistant Professor Ilahia School of Management Studies Kerala, India. Phone – 9744551114 Mail – manu_melwinjoy@yahoo.com
  • 3. Contents • Organizational development –Concept and evolution- nature and characteristics. • First order and second order Change. • Foundations of Organizational Development. • Conceptual frame work of OD –Action Research Model-Positive Model-John Kotter’s eight-stage process Model. • Parallel learning structures. • Process of organizational development – Organizational Diagnosis .
  • 4. Case Study – The OD Journey of TCS
  • 5. Pre-OD Scenario 1) Mounting Revenue Pressures 2) Selectivity in Projects 3) Focus on Specialization 4) Efforts on Experimentation & Innovation 5) Rewards & Recognition 6) Intergroup Co-ordination & Knowledge Sharing 7) Branding & PR
  • 8. Goal Alignment & Balance Scorecard • A need to re-look at a few organizational processes and systems, as for instance, the performance management and appraisal system at TCS. • Teach-Train-Transfer workshop by expert OD consultants- to explore means of institutionalizing goal-oriented performance management organization. • Personal Score Card-clearly outlined what would define goals, outputs, performance management, Economic Value adds & the ways and means for facilitating goal alignment. • The Balanced Scorecard approach was proposed, introducing corporate goals, which touched upon the following: – Voice of the Shareholder - Financial Goals e.g. Wealth creation – Vector of Technology – Technology Goals e.g. Quality, Cost, Delivery dimensions – Voice of the Customer – Customer/ Market Goals e.g. Customer Satisfaction – Voice of the Employee – Learning & Development e.g. Employee Satisfaction
  • 9. PROPEL • The Intervention: Culture Building at TCS • In consonance with the TCS belief of “Let us make it a joy for all our stakeholders”. • balance of fun, introspection and interaction, while evoking commitment to self development Confluences • Platform for problem solving, focus on the Quality, Cost & Delivery measures Camps
  • 10.
  • 11. Value Card • It helped to effectively capture and track this through the following steps: – The situation summary was charted out – Improvement goals, action plans and owners of each plan were identified – Success measures were identified against the dimensions of Valuing, Strategizing, Improving, for each actionable, along with timeframe for closure – Impact was analyzed in terms of short term and long- term actions.
  • 13. Account Excellence Program • Meeting all customer requirements • Minimizing processes variances • Reduction in Cost Of Quality • Elimination of waste • Enhanced Customer Support • Efficient Product Service • Flexibility to meet Customer demands & Market changes • Rework Reduction • Continuous Process Improvements • On-time delivery of major programs
  • 14. Darpan • Reflect & Improve • There was a distinct increase in the Associate Satisfaction Index (ASI) in Darpan 06, which, interestingly, corresponded to an increase in Customer Satisfaction Index (CSI) as well.
  • 15. Paradigm Shift: Post OD Scenario • The earlier tendency of self-sacrificing hard work was replaced by a shift of focus to teamwork and valuing of the employee. • In a nutshell, the OD interventions at TCS have helped build a culture of fostering systems thinking & creating forums for dialogue, while encouraging leadership at all levels. • For the organization at large, OD helped to reiterate the merits of valuing enquiry, expressing differences, and constantly generating new knowledge.
  • 17. Intergroup conflictOrganization Interpersonal conflicts Low productivity Poor alignment to organization’s strategy Start Point
  • 18. Introduction to Organizational Development • The term organizational development was coined by Richard Beckhard in the mid-1950s. • Organizational development is an acronym of two words i.e., organization and development. • The term consists of two words. • Organization - A social unit of people that is structured and managed to meet a need or to pursue collective goals. • Development - The systematic use of scientific and technical knowledge to meet specific objectives or requirements.
  • 19. Objectives of Organizational Development 1. To increase employees' level of satisfaction and commitment. 2. To confront problems instead of neglecting them. 3. To effectively manage conflict. 4. To increase cooperation and collaboration among the employees. 5. To increase the organization's problem solving. 6. To put in place processes that will help improve the ongoing operation of the organization on a continuous basis.
  • 20. Implications of Organizational Development • For Individuals – Most individuals believe in their personal growth. – Majority of the people are desirous of making greater contributions to the organizations they are serving.
  • 21. Implications of Organizational Development • For Groups a) One of the most important factors in the organization is the ‘work group’ around whom the organization functions. b) More people prefer to be part of the group because the group accepts them. c) Most people are capable of making higher contributions to the group’s effectiveness.
  • 22. Implications of Organizational Development • For Organization a) Create learning organization culture. b)Adopt win-win strategy for sustained growth. c) Create cooperative dynamics rather than competitive organizational dynamics in the organization.
  • 23. Organizational Development: How Effective Is It? 20 30 40 50 PercentageofStudiesShowingPositiveChanges Individual outcomes (e.g., job satisfaction) Organizational outcomes (e.g., profit) (23.55) (48.70) Organizational outcomes more often benefited from OD interventions than did individual outcomes (Source: Porras and Robertson, 1992.)
  • 24.
  • 25.
  • 26.
  • 27. Scope of Organizational Development • Organization Effectiveness • Organization Design • Organization Assessment • Organization-Wide System/Process Change • Performance Excellence • Succession Planning • Performance Coaching • Team Intervention
  • 28. Problems with OD • Too little “O” in OD – Few consultants are engaged in the system-wide efforts that are OD. – Most are using OD techniques in limited ways because of “reductionist thinking legacy”.
  • 29. Problems with OD • Too exclusive an emphasis on human processes – excludes task and content contributions – prevents integration of social and technical systems – potentially distorts/over-simplifies diagnoses
  • 30. Problems with OD • Rigid adherence to humanistic values, making field’s strength a weakness – blindness to forces and perspectives beyond human factors – humanistic values can “trump” research on what works and doesn’t – advocacy for the “right” values vs. helping clients – Anti-leadership bias can lead to seeing the client as the enemy – devalue organizational politics
  • 31. OD and HRM • As HR takes on an increasingly transformational role, OD will enable HR professionals to: – support transformation – work on organization design – design and deliver learning and development interventions – support clients in major change and organization design projects – analyze and improve the overall health of the organization – keep the organization healthy and fit for future challenges.
  • 32. Key concepts – Organizational Change • Organization change is the process of learning and behaving differently, in order to achieve new and better outcomes, by reordering the system structures that drive behavior. – Organization change is a departure from the status quo. – It implies movement toward a goal, an idealized state, or a vision of what should be and movement away from present conditions, beliefs, or attitudes.
  • 33. Key concepts –Change Agent • Cummings and Worley (2005) define a change agent “as a person who attempts to alter some aspect of an organization or an environment. – Change agents may come from inside an organization, in which case they are called internal consultants, or they may come from outside an organization, in which case they are called external consultants.”
  • 34. Key concepts –Client • The client is the organization, group, or individuals whose interests the change agent primarily serves. – A key question for any OD consultant to consider is “Who is the client?” (Varney, 1977). – On occasion, the “client” may not be the one who originally sponsored or participated in the change effort.
  • 35. Key concepts –Culture & Climate • One focal point of OD is making changes in an organization’s culture. • Culture should not be confused with climate. Culture refers to the overall organization. • Climate refers more specifically to how things are done in a local team, department, or site.
  • 36. Key concepts – Intervention • Cummings and Worley (2005) define intervention as “any action on the part of a change agent. • [An] intervention carries the implication that the action is planned, deliberate, and presumably functional.”
  • 37. Key concepts – Sponsor • A sponsor is one who underwrites, legitimizes, and champions a change effort or OD intervention.
  • 38. Key concepts – Stakeholder • A stakeholder is anyone who has a stake in an OD intervention. – Stakeholders may be customers, suppliers, distributors, employees, and government regulators.
  • 40. Definition - Richard Beckhard • Organization development is an effort (1) planned, (2) organization-wide, and (3) managed from the top, to (4) increase organization effectiveness and health through (5) planned interventions in the organization’s “processes,” using behavioral-science knowledge.
  • 41. Definition - Warner Burke • OD is a planned process of change in an organization’s culture through the utilization of behavioral science technology, research, and theory.
  • 42. Definition - Wendell L French OD refers to a long-range effort to improve an organization’s problem- solving capabilities and its ability to cope with changes in its external environment with the help of external or internal behavioral- scientist consultants.
  • 43. Definition - Michael Beer OD is a system-wide process of data collection, diagnosis, action planning, intervention, and evaluation aimed at: (1) enhancing congruence between organizational structure, process, strategy, people, and culture; (2) developing new and creative organizational solutions; and (3) developing the organization’s self- renewing capacity. It occurs through collaboration of organizational members working with a change agent using behavioral science theory, research, and technology.
  • 45.
  • 46. Characteristics of Organizational Development • Focus on culture and process – Organization development on culture : following suitable and positive culture level and process success organization development program.
  • 47. Characteristics of Organizational Development • Collaboration – Organization development encourages heartfelt collaboration between top management, managers and employees.
  • 48. Characteristics of Organizational Development • Accomplishment of tasks – Various kinds of teams and groups play important roles for accomplishment of organization development activities. Thus targets can also be achieved.
  • 49. Characteristics of Organizational Development • Human and social sides – Organization development focuses on both human and social sides. By doing so, it intervenes in the technological and structural sides also.
  • 50. Characteristics of Organizational Development • Participation – Participation and involvement of managers and players can make the organization development process a success. It helps to exchange views and ideal related to organization development.
  • 51. Characteristics of Organizational Development • System change – Organization development focuses on total system change. Because every change is inevitable for the success of any development program.
  • 52. Characteristics of Organizational Development • Facilitation – There are three parties to organization development process. They are facilitators, collaborators and co-learners in the client system. Cooperation of all these parties can help the organization to develop.
  • 53. Characteristics of Organizational Development • Over arching goals – An overarching goal of the organization is to make the client system able to solve its problems. It is done by teaching the skills and knowledge on continuous learning through self analytical methods.
  • 54. Characteristics of Organizational Development • Action research model – Organization development activities are undertaken following the conclusions and recommendations of action research members related to client system.
  • 55. Characteristics of Organizational Development • Developmental view – Organization development takes a developmental view for the betterment of both process and organization. Another practice in organization development programs is to create win-win solutions.
  • 57. History of OD • Kurt Lewin (1898–1947) is widely recognized as the founding father of OD, although he died before the concept became current in the mid-1950s. • From Lewin came the ideas of group dynamics and action research which underpin the basic OD process as well as providing its collaborative consultant/client ethos.
  • 58. History of OD • Institutionally, Lewin founded the "Research Center for Group Dynamics" (RCGD) at MIT, which moved to Michigan after his death. • RCGD colleagues were among those who founded the National Training Laboratories (NTL), from which the T- Groups and group-based OD emerged.
  • 59. History of OD • Douglas McGregor and Richard Beckhard while "consulting together at General Mills in the 1950s, the two coined the term organization development (OD) to describe an innovative bottoms- up change effort that fit no traditional consulting categories"
  • 60. History of OD • 1947 – National Training Laboratories Founded NTL in USA advances the research into applied behavioural sciences, develops understand of change agent role and experiential learning. • 1950’s – Human Relations Movement Growth of social and developmental psychology.
  • 61. History of OD • 1951 – Socio-Technical System Thinking (STS) Tavistock Institute (UK) research shows that combining social factors with technological changes increases effectiveness, efficiency and moral. • 1967 – Survey Research Methods Likert and Mann pioneer survey feedback to help organizational leaders understand the impact they have on the people and performance of the organization.
  • 62. History of OD • 1968 – Creation of the T Group Lewin (USA) and Tavistock Institute develops unstructured group laboratory training, and action learning sets. • 1974 – OD as Planned approach to Change Friedlander and Brown research OD as a method of planned change effort • 1980’s – General Systems Theory Neilsen and Schein promote OD as activities that influence the social processes within an organisation. -
  • 63. History of OD • 1997 – Organizational Effectiveness Linking the application of OD in planned development interventions to the improvement of organizational effectiveness. • 2000’s to Present – Complexity Theory OD continues to be informed by new insights and research in a number of disciplines including natural sciences, biology and physics as well as developments in the social and behavioural sciences.
  • 64. 1-64 Five Stems of OD Practice CurrentPractice Laboratory Training Action Research/Survey Feedback Participative Management Quality of Work Life Strategic Change 1950 1960 1970 1980 1990 2000
  • 66. Assumptions in OD • The Organization development has a number of underlying assumptions which can be examined so as to determine how the OD programmes can be utilized to the fullest potential. • These assumptions are based upon French and Bell.
  • 67. Assumptions in OD • Most individuals have drives towards personal growth and development. – The work habits are a response to work environment rather than personality traits. – Accordingly, efforts to change work habits should be directed towards changing how the person is treated rather than towards attempting to change the person.
  • 68. Assumptions in OD • Highest productivity can be achieved when the individual goals are integrated with organizational goals. – Also with such integration, the quality of the product is highly improved.
  • 69. Assumptions in OD • Cooperation is more effective than competition. – Conflict and competition tend to erode trust, prohibit collaboration and eventually limit the effectiveness of the organization. – In healthy organizations, “efforts are made at all levels to treat conflict as a problem subject to problem solving methods.
  • 70. Assumptions in OD • The suppression of feelings adversely affects problem solving, personal growth and satisfaction with one’s work. – Accordingly, free expression of feelings is an important ingredient for commitment to work.
  • 71. Assumptions in OD • The growth of individual members is facilitated by relationships, which are open, supportive and trusting. – Accordingly, the level of interpersonal trust, support and cooperation should be as high as possible.
  • 72. Assumptions in OD • The difference between commitment and agreement must be fully understood. – Agreeing to do something is totally different from being committed to do something. – Sense of commitment makes it easy to accept change and the implementation of change for the purpose of organizational development is even easier when such a commitment is based upon participation in the process.
  • 73. Assumptions in OD • OD programmes, if they are to succeed, must be reinforced by the organization’s total human resources system.
  • 74. Ethics and Values of organizational development
  • 75. Ethics of OD • RESPONSIBILITY TO OURSELVES – Acting with integrity and Authenticity. – Striving for self-knowledge and personal growth – Asserting individual interests in ways that are fair and equitable.
  • 76. Ethics of OD • RESPONSIBILITY FOR PROFESSIONAL DEVELOPMENT AND COMPETENCE – Accepting responsibility for the consequence of our acts. – Developing and maintaining individual competence and establishing cooperative relations with other professionals. – Recognizing our own needs and desires, and dealing with them responsibly in the performance of our professional roles.
  • 77. Ethics of OD • RESPONSIBILTY TO CLIENTS AND SIGNIFICANT OTHERS. • Serving the long-term well- being of our client system and stakeholders. • Conducting ourselves honestly, responsibly, and with appropriate openness. • Establishing mutual agreement on a fair contract.
  • 78. Ethics of OD • RESPONSIBILITY TO THE OD COMMUNITY. – Contributing to the continuing professional development of other practitioners and field of practice. – Promoting the sharing of professional knowledge and skill. – Working with other professionals in ways that exemplify what the profession stands for.
  • 79. Ethics of OD • SOCIAL RESPONSIBILITY. – Acting with sensitivity to the consequences of our recommendations for our client system and the larger systems within they are a subsystem. – Acting with awareness of our cultural filters and with sensitivity to multinational and multicultural differences and their implications. – Promoting justice and serving the well-being of all life on earth. -
  • 80. The Ethics of OD: Summary of the Debate OD is unethical • Imposes values of the organization; coercive and manipulative • Potential for abuse OD is ethical • The imposition of values is an inherent part of life, especially on the job • Abuse comes from individuals, not from the technique itself, which is neither good nor evil
  • 81. Antecedents Process Consequences Ethical Dilemmas • Misrepresentation • Misuse of data • Coercion • Value and goal conflict • Technical ineptness Role Episode • Role conflict • Role ambiguity Role of the Change Agent Role of the Client System Values Goals Needs Abilities A Model of Ethical Dilemmas
  • 82. Values of OD • Ethics based on values help OD practitioners guide themselves as they move along the paths of their work and lives. • Values are set of manners that individuals learn while growing up. It is different from ethics because ethics are publicly agreed on, and publicly stated, guidelines for a practice in a profession.
  • 83. Values of OD • Three types of OD Values – Humanistic – Optimistic – Democratic
  • 84. Humanistic Values • They proclaim the importance of the individual. • Respect the whole person. • Treat people with respect and dignity. • Assume that every one has intrinsic worth. • View all people as having the potential for growth and development.
  • 85. Organic Values • They post that people are basically good. • Progress is possible and desirable. • Rationality, reason, and goodwill are the tools for making progress.
  • 86. Democratic Values • They assert the sanctity of the individual. • The right of people to be free from misuse of power. • Use of fair and equitable treatment for all. • Need for justice through rule of law.
  • 87.
  • 89. The Organization Development Practitioner • Internal and External Consultants • Professionals from other disciplines who apply OD practices (e.g., TQM managers, IT/IS managers, compensation and benefits managers) • Managers and Administrators who apply OD from their line or staff positions
  • 90. Role Demands on OD Practitioners • Position – Internal vs. External • Marginality – Ability to straddle boundaries • Emotional Demands – Emotional Intelligence • Use of Knowledge and Experience
  • 91. Competencies of an Effective OD Practitioner KNOWLEDGE
  • 92. Foundation Competencies • Organization Behavior – Organization Culture – Work Design – Interpersonal Relations – Power and Politics – Leadership – Goal-Setting – Conflict – Ethics
  • 93. • Individual Psychology – Learning theory – Motivation theory – Perception theory • Group Dynamics – Roles – Communication Processes – Decision-Making Processes – Stages of Group Development – Leadership Foundation Competencies
  • 94. • Management and Organization Theory – Planning, organizing, leading, and controlling – Problem solving and decision making – Systems theory – Contingency theory – Organization structure – Characteristics of environment and technology – Models of organization and system Foundation Competencies
  • 95. • Research Methods / Statistics – Measures of central tendency – Measures of dispersion – Basic sampling theory – Basic experimental design – Sample inferential statistics • Comparative Cultural Perspectives – Dimensions of natural culture – Dimensions of industry culture – Systems implications Foundation Competencies
  • 96. • Functional Knowledge of Business – Interpersonal communication – Collaboration / working together – Problem solving – Using new technology – Conceptualizing – Project management – Present / education / coach Foundation Competencies
  • 97. Core Competencies • Organization design • Organization research • System dynamics • History of organization • Theories and models for change
  • 98. Competencies of an Effective OD Practitioner SKILLS
  • 99. Core Competencies • Managing the consulting process • Analysis/diagnosis • Designing/choosing appropriate, relevant interventions • Facilitation and process consultation • Developing client capability • Evaluating organization change
  • 100. Client vs. Consultant Knowledge Plans Implementation Recommends/prescribes Proposes criteria Feeds back data Probes and gathers data Clarifies and interprets Listens and reflects Refuses to become involved Use of Consultant’s Knowledge and Experience Use of Client’s Knowledge and Experience
  • 101. Future of OD • the following concerns remain constant for leaders and OD practitioners. How do we: – build a sustainable high- performance organization in which individual workers take an active part in achieving the required output? – Appropriately build engaged, proactive, empowered staff when there are limited reward levers organization can pull while needing to hold staff accountable? – Solve the problems of aligning and integrating diverse cultural elements?
  • 102. Future of OD • Ensure there are fluid two-way communication channels – so that information can flow upward as well as downward within hierarchies? • Help organizations to be externally sensitive and internally agile? • Build organizational climates that will release human potential and creativity at work and foster continuous learning and renewal culture within organizations?
  • 103. Four Key Orientations of OD • A systemic orientation • A problem-solving orientation • A humanistic orientation • An experiential learning orientation
  • 104. Four Key Orientations of OD • A systemic orientation – The understanding that all parts of an organization (structure, technology, processes, people) are highly connected. Problems can occur at one or more levels and have far reaching consequences throughout the organization
  • 105. Four Key Orientations of OD • A problem-solving orientation – A focus on problem identification, data gathering, option generation, cost/benefit analysis, decision-making, action planning, monitoring, review and adaptability - in the light of subjective experience
  • 106. Four Key Orientations of OD • A humanistic orientation – A positive belief about the potential of people, their rights, their need for autonomy and support in varying measures, and the value of their subjective experience
  • 107. Four Key Orientations of OD • An experiential learning orientation – An acceptance that training, development and organizational learning should be based on the subjective experiences of all those involved.
  • 108. Basic Organization Development Model Diagnosis of Situation Introduction of interventions Progress Monitoring Feedback
  • 109. Organization Development Interventions Organization Development Structural TechniquesRelationship Techniques T-group Training Team Building Survey Feedback Job Redesign Management by Objectives Supplemental Organizational Processes
  • 111. Organization Development Across Cultures Ethnocentric Attitude and Stereotyping Flexibility Knowledge of Specific Cultures Interpersonal Sensitivity
  • 113.
  • 114.
  • 115. The Diagnostic Phase • The Diagnostic Phase Involves • Client's top management to recognize the problems and have awareness of the need for change in the organisation. • The engagement of change agent or consultant by client organisation. • Diagnosis in OD is a collaborative process which involves the client system and consultant's joint collection and analysis of data.
  • 116. The Diagnostic Phase • Emphasis is on continuous and participative diagnosis. • OD consultant may make use of tools such as questionnaire (survey) and interview schedules (consultation meetings). • In brief, OD diagnosis attempts to analyze the current stale of the organisation in terms of various structures, systems and process in order to identify actual and potential strengths and weaknesses.
  • 117. Acton Plan/Strategy Development • Sharing of joint diagnosis of problems by the consultant and client team to the top management in an OD workshop. • In this workshop top management jointly develops action plans and strategies In the form of interventions (e.g. team-building and OD grid, etc.) to bring about changes or improvement.
  • 118. Action and Stabilization Phase • Implementation of action plans—changes through intervention. • Long drawn series of actions that may last several months such as grid OD intervention of Blake and Mouton.
  • 119. Action and Stabilization Phase • This phase of interventions of OD process takes place under conditions of unfrozenness, mobilizing efforts which is necessary for changes to have an impact. • Allowing changes to stabilize and to permeate the culture of the organisation. To ensure that the positive clement of change programme are diffused to other parts of the organisation.
  • 120. Feedback of Changes. Evaluation and Making Modification Phase • This phase consists of monitoring and reviewing the progress of the actions by collecting feedback about the changes introduced. • Making modification in case need arise. Mid-course corrections. • In case some new problems are revealed in the collection of data (survey/consultation process) another phase is commenced.
  • 121. Feedback of Changes. Evaluation and Making Modification Phase • In the event of achievement complete success, it has to be ensured client team is competent enough to maintain the changed system without the support of the consultant, as there is tendency among organizations to revert to their original states. Consultant can thus withdraw. • In nutshell, OD practitioners, both internal and external consultants may counsel decision makers on an individual basis, work to improve working relationships among the members of working group or team.
  • 122. Conditions for managing change through OD process • Management and all those involved must have high and visible commitment to the effort. • People who are involved need to have advance information that enables them to know what is to happen and what they are to do. • The effort (especially the evaluation and reward systems) must be connected to other parts of the organisation. • The effort needs to be directed by line managers and assisted by a change agent if necessary.
  • 123. Conditions for managing change through OD process • The effort must be based on good diagnosis and must be consistent with the conditions in the organisation. • Management must remain committed to the effort throughout all its steps, from diagnosis's through implementation and evaluation. • Evaluation is essential and must consist of more than asking people how they felt about the effort. • People must see clearly the relationship between the alfort and the organisation's mission goals.
  • 124. Assessment of OD • Assessing OD intervention involves judging about whether an intervention has been implemented as intended and if so, whether it is having desired results.
  • 125. Assessment of OD • There are two distinct types of OD assessment: On intended to guide the implementation of intervention and another to assess their overall impact. • Assessment aimed at guiding implementation may be called implementation assessment and assessment intended to discover intervention outcomes may be called evaluation assessment.
  • 126. Assessment of OD • Assessment of OD involves decision about measurement and research design. • Measurement issues focuses on selecting variables and designing good measures. • Research design focuses on setting up the conditions for making valid assessments of an OD interventions effect.
  • 128. Cummings & Worley, 7e (c) 2001 South- Western College Publishing 11-128 Implementation Feedback • Feedback aimed at guiding implementation efforts • Milestones, intermediate targets • Measures of the intervention’s progress Evaluation Feedback • Feedback aimed at determining impact of intervention • Goals, outcomes, performance • Measures of the intervention’s effect
  • 129. Conditions for Failure in OD Effort
  • 130. Conditions for Failure in OD Effort • A continued discrpancy between top management statements of values and styles and their actual work behaviour. • A big program of activities without any solid base of change goals. • Overdependence on outside help: With the incresing complexity of organizations and of the demands of the environment, it is easy to let consultants or specialists `solve the problem.’
  • 131. Conditions for Failure in OD Effort • A large gap between the change effort at the top of the organisation and efforts in the middle of the organisation. • Trying to fit a major organisation change into an old structure. • Lack of process-consultation skills among key members of the organisation.
  • 132. Conditions for Failure in OD Effort • Applying an intervention or strategy inappropriately. • Too rapid changeover in top posts, and new people not interested in OD. • Lack of courage and willingness of top management to call a spade a spade, in relaton to strategy, task, relationships, and concrete achievements.
  • 133. Conditions for success in OD Effort • There is a pressure on the top management which induces some arousal to action. • There is some form of intervention at the top, either a new member of the organisation, or a new staff head in organisation development. • There is diagnosis of the problem areas and this induces an analysis of specific problems.
  • 134. Conditions for success in OD Effort • There is reinforcement in the system from positive results and this produces acceptance of the new practices. • There is pressure from the environment, internal or external for change. • There is collaboratory problem indentification between people in the organisation.
  • 135. Conditions for success in OD Effort • There is a willingness to face the data of the situation and to work with it on changing the situation. • The system rewards people for the efforts of changing and improvement, in addition to rewarding them for short-term results. • There is leadership and inspired vision among key people.
  • 137. Action Research • Dual purpose of action research: – Making action more effective. – Building a body of scientific knowledge around that action. • Action refers to: Programs and interventions designed to solve problems and improve conditions.
  • 138. A Process and An Approach • Action research is a process, an ongoing series of events and actions. • Definition: – Action research is the process of systematically collecting research data about an ongoing system relative to some objective, goal, or need of that system; – feeding these data back into the system; – taking actions by altering selected variables within the system based both on the data and on hypotheses; and – evaluating the results of actions by collecting more data.
  • 139. Action research • It was conceptualized by Kurt Lewin and later elaborated and expanded on by other behavioral scientists. • Concerned with social change and, more particularly, with effective, permanent social change, Lewin believed that the motivation to change was strongly related to action. • If people are active in decisions affecting them, they are more likely to adopt new ways. • "Rational social management", he said, "proceeds in a spiral of steps, each of which is composed of a circle of planning, action, and fact-finding about the result of action".
  • 140. Kurt Lewin’s Action Research Model • The process of change involves three steps – Unfreezing: Faced with a dilemma or disconfirmation, the individual or group becomes aware of a need to change. – Changing: The situation is diagnosed and new models of behavior are explored and tested. – Refreezing: Application of new behavior is evaluated, and if reinforcing, adopted.
  • 141. Action research • Action research is depicted as a cyclical process of change. • The cycle begins with a series of planning actions initiated by the client and the change agent working together. • The principal elements of this stage include a preliminary diagnosis, data gathering, feedback of results, and joint action planning.
  • 142. Action research • In the language of systems theory, this is the input phase, in which the client system becomes aware of problems as yet unidentified, realizes it may need outside help to effect changes, and shares with the consultant the process of problem diagnosis.
  • 143. Action research • The second stage of action research is the action, or transformation, phase. • This stage includes actions relating to learning processes (perhaps in the form of role analysis) and to planning and executing behavioral changes in the client organization.
  • 144. Action research • Included in this stage is action-planning activity carried out jointly by the consultant and members of the client system. • Following the workshop or learning sessions, these action steps are carried out on the job as part of the transformation stage.
  • 145. Action research • The third stage of action research is the output, or results, phase. • This stage includes actual changes in behavior (if any) resulting from corrective action steps taken following the second stage.
  • 146. Action research • Data are again gathered from the client system so that progress can be determined and necessary adjustments in learning activities can be made. • Minor adjustments of this nature can be made in learning activities via Feedback Loop B. • Major adjustments and reevaluations would return the OD project to the first, or planning, stage for basic changes in the program.
  • 147. Action research • Data are not simply returned in the form of a written report but instead are fed back in open joint sessions, and the client and the change agent collaborate in identifying and ranking specific problems, in devising methods for finding their real causes, and in developing plans for coping with them realistically and practically.
  • 148. Action research • Scientific method in the form of data gathering, forming hypotheses, testing hypotheses, and measuring results, although not pursued as rigorously as in the laboratory, is nevertheless an integral part of the process.
  • 149. Action research • Also sets in motion a long-range, cyclical, self-correcting mechanism for maintaining and enhancing the effectiveness of the client's system by leaving the system with practical and useful tools for self-analysis and self-renewal.
  • 151. Growth of OD in Global Settings • The rapid development of foreign economies. • The increasing worldwide availability of technical and financial resources. • The emergence of a global economy.
  • 152. Cross-cultural Dimensions • Power Distance • Uncertainty Avoidance • Achievement Orientation • Individualism • Context
  • 153. Power Distance • Extent to which members of a society accept that status and power are distributed unequally in an organization. • Organizations in these cultures tend to be autocratic, possess clear status differences, and have little employee participation.
  • 154. Uncertainty Avoidance • The extent to which members of a society tolerate the unfamiliar and unpredictable. • Organizations in these cultures tend to value experts, prefer clear roles, avoid conflict, and resist change.
  • 155. Individualism • The extent to which people in a society believe they should be responsible for themselves and their immediate family. • Organizations in these cultures tend to encourage personal initiative, value time and autonomy, and accept competition.
  • 156. Achievement Orientation • The extent to which people in a society value assertiveness and the acquisition of material goods • Organizations in these cultures tend to associate achievement with wealth and recognition, value decisiveness, and support clear sex roles
  • 157. Context • The extent to which meaning in communication is carried in the words. • Organizations in high context cultures tend to value ceremony and ritual, the structure is less formal, there are fewer written policies, and people are often late for appointments.
  • 158. Cultural and Economic Contexts of International OD Practice
  • 159. Worldwide Organizations • Offer products or services worldwide. • Balance product and functional concerns with geographic issues. • Coordination must address complex personnel and cross- cultural issues. • Its competitive position in one national market is affected by its competitive position in other national markets.
  • 160. Trends Affecting OD Practice
  • 161. Trends Affecting OD Practice • Environmental Trends  Wealth is becoming more concentrated  Economy is more globalized.  Ideologies are shifting from consumption to coexistence and ecological sustainability.
  • 162. Trends Affecting OD Practice  Workforce Trends  Workforce is becoming older, more diverse, more educated.  Shift toward contingent employment & change in psychological contract.  No careers.
  • 163. Trends Affecting OD Practice • Technology Trends  Internet growth will increase.  E-commerce growth.  Increased rate and pervasiveness of technological change.
  • 164. Trends Affecting OD Practice  Organizational Trends  Organizations will become both smaller and larger; more and less decentralized.  Virtual, networked, alliance based.  Truly global management structures and cultures.