fod chap1 ppt

Upload: bindupoduval

Post on 14-Jul-2015

117 views

Category:

Documents


1 download

TRANSCRIPT

Organization Development and Change

1

Chapter One: Introduction to Organization Development

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Learning Objectives for Chapter OneTo provide a definition of Organization Development (OD) To distinguish OD and planned change from other forms of organization change To describe the historical development of OD

2

1-2Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Introduction to ODOD a process - behavioral science knowledge and practice to help organizational building the capacity to change and achieve greater effectiveness. OD differs with other Planned Change Planned change such as technological innovations (or) new product development

3

It focused on the organisational ability to assess its current functioning and to achieve its goals.1-3

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

OD is oriented to improving the total systemthe organisation and its part in the context of the larger environment that affects them. Examples of OD 1.Team Building with top corporate management 2.Structural changes in organisation 3.Job enrichment in manufacturing organisation Study of OD 1.Effects of change 2.Methods of Organisational Changes 3.factors influencing OD successCopyright Barbara Senior, Organisational Change Lecturers Guide 2002

4

Cummings & Worley, 8e (c)2005 Thomson/SouthWestern

1-4

Characteristics of OD1.OD applies-changes in the strategy, structure, and process of entire system. 2.OD is based -application of OB knowledge & practice, like leadership, group dynamics, work design etc 3.OD concerned with managing planned change like technology innovation 4.OD involves both the creation and subsequent reinforcement of change. 5.OD oriented to improving organisational effectiveness. Two aspects 1.effective organisation is able to solve its own problems. 2.effective organisation high performance, quality concern etcCopyright Barbara Senior, Organisational Change Lecturers Guide 2002

5

Cummings & Worley, 8e (c)2005 Thomson/SouthWestern

1-5

Relevance of OD1.Globalisation :-Environments which organisation operates & function, like New governments, new-Leadership, new markets and new countries. 2.IT:- which redefined traditional business model by changing how work is preferred. 3.Managerisl Innovation:-combination of globalisation and IT trends impact on organisation such as strategic alliances, virtual corporations, networks,reengineering,..etc.6

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Cummings & Worley, 8e (c)2005 Thomson/SouthWestern

1-6

Burkes Definition of OD7

OD is a planned process of change in an organizations culture through the utilization of behavioral science technology, research, and theory.

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Cummings & Worley, 8e (c)2005 Thomson/SouthWestern

1-7

Frenchs Definition of OD8

OD refers to a long-range effort to improve an organizations problem-solving capabilities and its ability to cope with changes in its external environment with the help of external or internal behavioral-scientist consultants.

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Cummings & Worley, 8e (c)2005 Thomson/SouthWestern

1-8

Beckhards Definition of OD9

OD 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 organizations processes, using behavioral science knowledge.

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Cummings & Worley, 8e (c)2005 Thomson/SouthWestern

1-9

Beers Definition of OD10

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 organizations self-renewing capacity. It occurs through collaboration of organizational members working with a change agent using behavioral science theory, research, and technology.Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Cummings & Worley, 8e (c)2005 Thomson/SouthWestern

1-10

Organization Development is...11

a systemwide application and transfer of behavioral science knowledge to the planned development, improvement, and reinforcement of the strategies, structures, and processes that lead to organization effectiveness.

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Cummings & Worley, 8e (c)2005 Thomson/SouthWestern

1-11

Five Stems of OD PracticeLaboratory Training12

Current Practice

Action Research/Survey Feedback

Normative Approaches

Quality of Work Life

Strategic Change

1950 Today

1960

1970

1980

19901-12

2000

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Cummings & Worley, 8e (c)2005 Thomson/SouthWestern

Laboratory Training1.Laboratary training :learn from their own interactions and evolving dynamics such as interpersonal relations, personal growth, leadership, and group dynamics. Advantages 1.Rich learning experience about group feed back 2.Process of group building had potential for learning transfer to back home situationsCopyright Barbara Senior, Organisational Change Lecturers Guide 2002

13

Cummings & Worley, 8e (c)2005 Thomson/SouthWestern

1-13

2.Action Research & Survey Feed back Background:14

3.Normative Background:The inputs from laboratory training and research method fallowed closely that human relations approach. 4.Quality-of-Work life:Employee involvement, TQM &Six-sigma, etc 5.Strategic Change:Improving the alignment among environment, strategy, Organisation design.Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Cummings & Worley, 8e (c)2005 Thomson/SouthWestern

1-14

Organisation Development - 1

Organization development (OD) is a long term effort, led and supported by top management, to improve an organizations visioning, empowerment, learning, and problem-solving processes, through an ongoing, collaborative management of the organization culture - with special emphasis on the culture of intact work teams and other team configurations - utilizing the consultant-facilitator role and the theory and technology of applied behavioural science, including action research.

15

(French, W.L. and Bell, C.H, (1995). Organization Development: Behavioural Science Interventions for Organization Improvement, Fifth edition, Prentice-Hall, p.28.).Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Organisation Development - 2

Organization development is an ongoing 16 process of change aimed at resolving issues within an organization through the effective diagnosis and management of the organizations culture. This development process uses behavioral and social science techniques and methodologies through a consultant facilitator and employs action-research as one of the main mechanism for instigating change in organizational groups.(McCalman, J & Paton, R (1992). Change Management Guide to Effective Implementation, London, P.C.P. p 131).

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Basic Assumptions of OD as a Model for Change - 1

It emphasises goals and processes with emphasis on processes It deals with change over medium and long-term It is about people and recognises their worth It involves the organisation as a whole as well as its parts It emphasises the concept of a change agent/facilitator

17

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Basic Assumptions of OD as a Model for Change - 2

It uses action research as a means of intervention It is participative, drawing on theory and practices of the behavioural sciences It subscribes to a humanistic philosophy of openness It is a process of facilitation at the individual, group and organisational level It has top-management support and involvementCopyright Barbara Senior, Organisational Change Lecturers Guide 2002

18

Learning Organisation - 1

More recently, the concept of a learning organisation has been blended in with OD. Central ideas of the LO: A process approach to change in which everything, including existing goals and the goal setting processes, is subject to challenge. Change is continuous. Development of the organisation is treated as being central to its well-being.

19

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Learning Organisation - 2

More central ideas of the LO: Shared visioning Proactive learning Continuous experimentation & risk taking Leaders as facilitators and learning leaders Team learning

20

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Why Organisation Development Is So Important - 1

The volume of change in many organisations is massive The economic scene places demands on managers while they are reluctant to change from tried and tested methods The role of management is changing and new models are needed Change management takes time Some changes challenge basic assumptions, for example, the role of supervisory staffSource: Mintzberg, H. (1973), The Nature of Managerial Work, Harper & Row.

21

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Why Organisation Development Is So Important - 2

The need for control remains - the skill is remaining in control when so much change is going on. More comprehensive strategic pictures are needed which integrate different changes in the organisation and alleviate confusion. Organisation design and re-design are as important and necessary as product, process or system design and are the responsibility of management and people in organisations, not just specialists.

22

Source: Mintzberg, H. (1973), The Nature of Managerial Work, Harper & Row.

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Lewins Three Step Process to Changing BehaviourUNFREEZINGResistance to change lessened, need for change created (Equilibrium disturbed) MOVING From old behaviour to the new (Changes)23

REFREEZING Change made permanentCopyright Barbara Senior, Organisational Change Lecturers Guide 2002

Unfreezing

Shaking up Disconfirmation of old ways of doing things Questioning & challenging of established wisdom

24

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Moving

Making the actual changes to move to the new state of existence. Includes the development of new strategies, structures, systems & responsibilities and the shedding of old ones.

25

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Refreezing

Stabilizing, institutionalising the changes. Making sure the organisation doesn't go backwards to the old state. Reinforcement of the changes through symbols, such as changed logos, dress, building design, structures.

26

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Refreezing???

Re-freezing may not be appropriate in an era of continuous change, so maybe this stage involves something more like stabilising.

27

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Effective Management of Change

An effective manager...: anticipates the need for change as opposed to reacting after the event to the emergency; diagnoses the nature of change that is required and carefully considers a number of alternatives that might improve organisational functioning, as opposed to taking the fastest way to escape the problem; and manages the change process over a period of time so that it is effective and accepted as opposed to lurching from one crisis to another.

28

(Pugh, D. (1993). Understanding and managing change. In Maybey, C. and Mayon-White, B. (Eds.) Managing Change, Second edition. London, P.C.P.).

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Action Research - 1

Action research is central to EACH STAGE of the OD process. It is a collaborative effort between the leaders and facilitators of any change and those who have to enact it. It involves data gathering, feedback of data to the client group, data discussion, action planning, and action. Therefore, action research is, as its name suggests, a combination of research and action.

29

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Action Research - 2

Action research involves collecting data relevant to the situation of interest, feeding back the results to those who must take action, collaboratively discussing the data to formulate an action plan, and finally, taking the necessary action.

30

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

The OD model for changePRESENT STATE (1a) Diagnose current situationFUTURE STATE (1b)

Develop a vision for change

31

(5) Assess and reinforce change(2)

(4) Implement change

(3) Develop an action plan JOURNEY TO THE FUTURE

Gain commitment to the vision

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Stage 1 - Understanding Present & Future States

At stages 1a and 1b the issues, problems and opportunities are to be fully explored and the (generally) multiple perspectives of people in the change situation should be understood. Diagnosing the current situation should not be rushed through without sufficient consideration of the underlying issues as well as the presenting ones.

32

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Stage 2 - Gaining Commitment to the Vision33

Once the vision for change has taken shape (stage 1b), commitment to it has to be gained. Consequently, sharing the vision with all concerned is important, which might mean a review, again, of the vision for change. It is vital to listen to the organisation - people's responses in words and deeds to the vision proposal.Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Stage 3: Develop an Action Plan (1)34

Stage 3 is complex and requires much consultation and gaining the participation of those who must enact the change. Possible resistance to change must be addressed.

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Pughs Principles of Change -1

Principle 1:Organisations are organisms adequacy of planning adequacy of persuasion adequacy of digestion

35

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Pughs Principles of Change - 2

Principle 2: Organisations are occupational and political systems account taken of occupational impact account taken of political impact

36

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Pughs Principles of Change - 3

Principle 3: All members of an organisation operate simultaneously in all three systems - the rational, the occupational, the political

37

appropriateness of starting site appropriateness of methods used

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Stage 3: Develop an Action Plan (2)

The role of the change agent is important in the whole of stage 3. Debates occur as to whether the 38 use of an internal or external change agent is preferable. Buchanan and Boddy (1992) have written about CHANGE AGENTS competencies. Sensitive, clear, flexible goal setting. Team building, networking, handling ambiguity. Communicating, dealing with people and meetings,enthusing, motivating. Selling, negotiating. Dealing with the politics, influencing, the broader view.

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Stage 3: Develop an Action Plan (3)

CHANGE AGENTS help the 39 organisation to: Define the problem. Examine and diagnose the problem. Come up with alternative solutions. Direct implementation of solutions. Crystallise the learning.

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Stage 3: Develop an Action Plan (4)

Responsibility charting helps in the assessment of the alternative behaviours for those involved in the series of actions for change. It involves identifying and assigning the specific people involved in each action or decision. who is responsible (one person). who are the approval givers (not too many). who are the supporters, resource providers (vital). who should be be informed.

40

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

A Responsibility ChartR= responsible A = approval giver, can veto S = must support; provide resources I = to be informed Actions Actors41

A B C D E F G 1 2 3 4 5 6 R A A I S R A I S S I I R A A R R A A R S S A I I S I S I

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Stage 3: Develop an Action Plan (5)Possible stakeholders who are starting points for change: 42

Top management. Groups who are management-ready, i.e. ready for change. Includes hurting systems. Those in pain.

New teams or systems. Change agents. Staff members who will facilitate subsequent change. Temporary change implementation project teams.

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Stage 3: Develop an Action Plan (6)

Pughs (1986) OD matrix on p. 323 is 43very useful in deciding where, in an organisation, change efforts should start and be planned. start with desired behaviour that needs to change. move to organising the system, structure, info. flows, etc. that may need to change. move to organise the contextual setting that may also need to change.

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

The Pugh OD MatrixProblems Behaviour Structure Context etc. Org level Intergroup Group level Individual levelPoor org climate Lack of cooperation Poor team spirit Dissatisfied person Wrong structure Poor coordination Unclear group task Wrong strategy Distance Poor resources44

Poorly Poor defined job application of HRM

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

The Pugh OD MatrixRemedies Behaviour Structure Context etc. Org level Intergroup Group levelSurvey feedback Role negotiation Team building Change strategy Bring groups closer Redesign Change work technology or staffing system Job Improve enrichment HRM Change structure Improve liaison45

Individual Counselling level

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Stage 3: Develop an Action Plan (7) Decide what needs to change: behaviour systems/structure, or contexts Action plan must be: 46

relevant specific integrated in the right time frame adaptable

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Stage 4 Implement the Change

Stages 4 (and 5) of the OD process Implementing and assessing and reinforcing the change can make use of a range of techniques, some of them identified on the Pugh OD matrix.

47

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Implement the Change (2) - Facilitated Activities 1

Survey feedback. Employee opinion 48 survey. Organisational mirroring. Focal group gets feedback from other groups about how it is perceived and regarded. Reciprocal. Fishbowl technique. Inter-group confrontation. Each group lists its complaints about the other as well as what it thinks the other group has as a complaint against itself.Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Implement the Change (2) - Facilitated Activities 2

Role negotiation. Focus on each others behaviours and negotiate an increase, decrease or status quo. Process consultation. The consultant engages in feedback,coaching, counselling, and helps individuals and groups finds their own solutions.

49

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Implement the Change (3) - Facilitated Activities 3

Team Building - focus on the team 50 processes, culture and responsibilities. Life and career planning - Life line drawing, connecting past, present & future. Write your own obituary. Plus various other methods for designing structures and contexts.

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Implement the Change (4)

Go for a series of SHORT-TERM WINS, visible outcomes (short term goals) that: show that sacrifices are worthwhile reward change agents help fine tune the visions and strategies counterbalance the cynics keep bosses happy build momentum

51

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Stage 5: Assessing and Reinforcing Change

Hard change is relatively easy to

52

assess Set hard objectives and quantifiable performance measures

Soft change is more difficult to assess

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Assessing the Soft Elements of Change

Survey or cultural audit. Interviews with individuals or focus groups. Examination of turnover and absenteeism rates. Analysis (through observation or questionnaire) of group performance. Picturing the organisation - ask staff to portray the org in pictures, not words.

53

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Reinforcing and Consolidating Change

Design appraisal, career and reward systems which help reinforce desired behaviours.

54

Orientate staff training and development to the new vision and the new situation.

Hold people accountable for maintaining the vision and continuing to implement the change.

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Iteration

At all these stages, as Figure 8.2 on p. 312 shows, the requirement of iteration back to previous stages and then forwards again with modified plans and actions is crucial to the way the OD process operates.

55

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

An Assessment of the OD Model for Change (1) Three of the criticisms that have been aimed at this model for change are:

56

1. OD does not always face up to the harsh realities of change. (Rather than unfreezing, people need to be shaken up.) 2. OD is limited when change situations are constrained. (Diagnosis and vision already set). 3.OD does not always fit with the policies and practices of bureaucracy, political systems

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

An Assessment of the OD Model for Change (2) A fourth criticism of the soft systems model 57 for change is4. The claim that OD cannot be applied in the same way across all cultures.Supposedly it is not suited to high Power Distance, high Uncertainty Avoidance, and high Masculinity cultures.

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

An Assessment of the OD Model for Change (3)58

Given these criticisms, care has to be taken that the OD process is modified to suit different circumstances. It must also be recognised that, in times of crisis, managers may have to act very fast and... it may not be possible to put into practice the full consultation and participation that is built into the OD process.Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

History

1911 Taylors one best way: repetitive tasks 1922 Webers bureaucracy: hierarchy, division of labor, impersonal rules, rigid procedures Follets participative leadership 1924 Hawthorne Studies 1940s Lewins Group Dynamics

59

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

OD has 4 major stems

T-Group/Laboratory Training Group (1940s, Kurt Lewin) Survey Feedback Action Research Tavistock Socioclinical Approaches (1920s, Eric Trist)/QWL (QC) 4 management systems, called Systems 1-4T:Exploitive Authoritative Benevolent Authoritative Consultative Participant Group

60

Strategic Change is a recent development

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

OD Values & Assumptions Humanism: respect for people; importance of the person/intrinsic worth; potential to grow Optimism: people are good/progress is possible and desirable Democracy: right to be free from misuse of power; justice, and equity61

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Implications for Dealing with62

Individuals: Listen, support, challenge, encourage, allow failure, remove barriers, autonomy, responsibility, high standards, reward Groups: Let teams flourish, leaders should invest, team leadership guides and develops; interactions toward a goal Organizations: people make the workplace; encourage cooperation vs. competition

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Applications of OD

Individual Level Job Redesign (JDS) Organizational Behavior Management (OBM)

63

Group Level Group process interventions Leadership training Team Development

Organizational Level Intergroup intervention Changing cultures Socio-technical system changes

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Practitioners Value

Effectiveness/Efficiency Open Communication/Confrontation Empowering/Power Equalization Enhance Productivity Promoting Organizational Participation Authenticity/trust

64

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Ethics

Promise only what you can deliver Care Customize service Person selling work is person doing the work Teach client how to engage in OD

65

Service first

Do not sell yourself short for fads Can consultant deliver what client is willing to buy? But, not replacement (i.e., no insourcing) Copyright Barbara Senior, Organisational Change Lecturers Guide 2002 Training leadership isnt necessarily a good

Ethics

Cannot force change Collusion True to the source(s) of problems Credit changes to the client Take on only work you can handle. Maintain your worth Whole system is the client

66

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Action Research

Lewin said, theres no action action without research, no research without action.

67

Copyright Barbara Senior, Organisational Change Lecturers Guide 2002

Action Research1 Preliminary Diagnosis 2 Data Gathering 3 Data Feedback68

7 Evaluation

6 Action 5 Action PlanningCopyright Barbara Senior, Organisational Change Lecturers Guide 2002

4 Exploration of Data