ORGANIZATIONAL CHANGE (4TH ED.)Barbara Senior & Stephen Swailes

Chapter 8: Soft systems models for change

LEARNING OBJECTIVESBy the end of this chapter, you will be able to: recognize that some change situations

(problems/opportunities), by nature of their complexity and particular characteristics, require soft rather than hard systems approaches to change;

consider the philosophy, value orientation and theoretical underpinnings of organization development as a generalized example of soft systems models for change;

outline and describe the processes and practices that comprise most OD approaches to designing and implementing organizational change;

critically review the limitations of OD approaches to managing change.

ART AND SCIENCE OF MESS MANAGEMENT ACKOFF (1993)

ORGANIZATION DEVELOPMENT, 5TH ED.FRENCH & BELL, 1995Organizational development is about People and Organizations People in Organizations

Organizational development is about planned change.Planned change involves: Common sense Hard work applied diligently over time Systematic, goal-oriented approach Valid knowledge about organizational dynamics

and how to change.

ORGANIZATION DEVELOPMENT, 5TH ED.FRENCH & BELL, 1995Valid knowledge derives from behavioral sciences: Psychology Social psychology Sociology Anthropology Systems theory Behavioral theory Management

ORGANIZATION DEVELOPMENT, 5TH ED.FRENCH & BELL, 1995Two goals of OD are:1) To improve the functioning of individuals, teams,

and the total organization.2) To impart the necessary skills and knowledge that

will enable organization members continuously to improve their functioning on their own.

OD programs are long-term, planned, sustained efforts.

ORGANIZATION DEVELOPMENT, 5TH ED.FRENCH & BELL, 1995A central feature of OD is widespread participation:1) Get as many people as possible into the act.2) An overall game plan or strategy is then

developed that includes a series activities, each intended to achieve an outcome that moves the organization toward the desired goals.

However, OD programs are not so linear and straightforward.

In organizations where individuals, teams, and organizations are not realizing their full potential, OD can improve the situation.

ORGANIZATION DEVELOPMENT, 5TH ED.FRENCH & BELL, 1995Change – “the new state of things is different from the old state of things.”

Explore the implications of the following quotes: Change is omnipresent. Change is an opportunity, not a threat. Most demands for change come from outside the

organization.

ORGANIZATION DEVELOPMENT, 5TH ED.FRENCH & BELL, 1995Change has different facts to it: Change can be deliberate (planned), or

accidental (unplanned) Magnitude of change can be large or small. The scope can affect many elements of the

organization or only a few. Change can happen fast (abrupt, revolutionary)

or slow (evolutionary). The change can bring about an entirely new

state of things, or it can have the same nature with new features.

ORGANIZATION DEVELOPMENT, 5TH ED.FRENCH & BELL, 1995Organizational development is all about “change.” First-order change – making moderate

adjustments to the organization, its people, and its processes.

Second-order change – organizations are reinvented; work tasks are being reengineered; the rules of the marketplace are being rewritten; the fundamental nature of organizations is changing.

Today the demands on organizations are so great that second-order change is required in many instances.

ORGANIZATION DEVELOPMENT, 5TH ED.FRENCH & BELL, 1995Organizational development is a process that focuses on organizational culture, processes, and structure utilizing a total system perspective. (French & Bell, 1995, p. 4)

ORGANIZATION DEVELOPMENT, 5TH ED.FRENCH & BELL, 1995Major events in the process of OD and change: Sensing something is wrong that should be

corrected. Diagnosing the situation to determine what is

happening Planning and taking actions to change the

problematic conditions Evaluating the effects of the actions Making adjustments as needed Repeat the sequence

ORGANIZATION DEVELOPMENT, 5TH ED.FRENCH & BELL, 1995Organizational development is an iterative process of diagnosing, taking action, diagnosing, and taking action.

All organizational improvement programs are really complex processes of goals => actions => redefined goals => new actions.

Waterfall model of change Iterative model of change.

ORGANIZATION DEVELOPMENT, 5TH ED.FRENCH & BELL, 1995 Organizational culture must be altered if

permanent change is to occur. Organizational processes are also key

leverage points for achieving organizational improvement.

Processes are how things get done in organizations, the methods for arriving at results.

ORGANIZATION DEVELOPMENT, 5TH ED.FRENCH & BELL, 1995Important organizational processes are communication, problem solving and decision making, resource allocation, conflict resolution, allocation of rewards, human resource practices, strategic management, how authority is exercised, and self-renewal or continuous learning.

ORGANIZATION DEVELOPMENT, 5TH ED.FRENCH & BELL, 1995How things are done in organizations (organizational processes) is as important as what is done.

Often the best way to improve a group’s effectiveness is to pay attention to and improve its processes. OD practitioners found that processes were just as critical for organizational effectiveness as they were for group effectiveness.

ORGANIZATION DEVELOPMENT, 5TH ED.FRENCH & BELL, 1995 Organizations are complex social systems

interacting with the environment. A superordinate goal of OD programs is to

optimize the system by ensuring that system components are harmonious and congruent.

A systems perspective suggests that changing one element of the system, say, strategy, will require changes in other elements such as structure, processes, and culture.

ORGANIZATION DEVELOPMENT, 5TH ED.FRENCH & BELL, 1995The action research model of OD:1) A preliminary diagnosis2) Data gathering from the client group3) Data feedback to the client group4) Exploration of the data by the client

group5) Action planning by the client group6) Action taking by the client groupOD facilitator acts a facilitator throughout the process.

3 FUNDAMENTAL CONCEPTS OF PEOPLE IN ORGANIZATIONS (PATON AND MCCALMAN, 2008)

1. Organizations are about people2. Management assumptions about

people often lead to ineffective design of organizations and this hinders performance.

3. People are the most important asset and their commitment goes a long way in determining effective organization design and development.

SIGNIFICANCE OF ORGANIZATIONS AS SYSTEMS Organizations as a whole and parts There are interconnections of causes and

consequences of complex and messy situations.

OD challenges the assumption that a single important cause of change with clear effects can be found, as well as the assumption that any cause and its effects are necessarily closely related in space and time.

Organizations are a balance of forces built up and refined over a period of time.

OD approaches to change are essentially processes of facilitating planned change.

SIGNIFICANCE OF ORGANIZATIONS AS SYSTEMS

Consequently, an effective manager of change:anticipates the need for change as opposed to reacting after the event to the emergency; diagnoses the nature of the change that is required and carefully considers a number of alternatives that might improve organizational 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 crisis to crisis. (Pugh, 1993, p. 109)

ORGANIZATIONS AS LEARNING ORGANIZATIONS

Lewin’s three-phase model of change

Lewin’s three-phase model of change

OD-AN ACTION RESEARCH BASED MODEL OF CHANGE

A collaborative effort between leaders and facilitators involves the following steps1.Management and staff perception of problem(s)2.Data gathering and preliminary diagnosis by

those concerned with leading the change (who can be internal and/or external to the organization)

3.Feedback to key client, management and those involved in the change

4. Joint agreement of the problem(s)5. Implementation6.Reinforcement and assessment of the change.

OD MODEL FOR CHANGE1a. Diagnose current situation

i. look at purposes and goalsii. structure and cultureiii. leadership approaches and stylesiv. recruitment practices, career paths

and opportunitiesv. individuals’ motivation and

commitment to their work and org.vi. employee training and developmentvii. intra- and inter-group relationships

OD MODEL FOR CHANGE1a. Diagnose current situation

Methods of data collection: Questionnaires Interviews Observations Unobtrusive measures

OD MODEL FOR CHANGE1b. Develop a vision for change

Vision: describes core values and purposes, as well as an envisioned future. Provides direction that can energize commitment as people work toward a common goal.

2. Gain commitment to the vision and the need for change

OD MODEL FOR CHANGE3. Develop an action plan

a. The role of change agent Help the organization define the problem by

asking for a definition of what it is Help the organization examine what causes the

problem and diagnose how this can be overcome.

Assist in getting the organization to offer alternative solutions.

Provide direction to the implementation of alternative solutions.

Transmit the learning process that allows the client to deal with change on an ongoing basis by itself in the future.

OD MODEL FOR CHANGE3. Develop an action plan

b. Responsibility chartingThe “actors” involved in each action or decision:R = People with responsibility (not

necessarily authority)A = People with approval (right to veto)S = People who support (put resources

towards)I = People who inform (to be consulted

before action but with no right of veto)

OD MODEL FOR CHANGE3. Develop an action plan

c. The what and where of changeBeckhard and Harris say an effective action plan should have the following characteristics (1987, p. 72): Relevance: activities are clearly linked to the

change goals and priorities. Specificity: activities are clearly identified rather

than broadly generalized Integration: the parts are closely connected Chronology: there is a logical sequence of events Adaptability: there are contingency plans for

adjusting to unexpected foces.

OD MODEL FOR CHANGE4. Implement the change

Survey feedbackOrganizational mirroringInter-group confrontation (with 3rd party assistance)Role negotiationProcess consultationTeam buildingLife and career planningRole of short-term wins

OD MODEL FOR CHANGE5. Assess and reinforce the change

Assessing change Survey or audit Interviews with individuals or focus

groups An examination of turnover and

absenteeism rates An analysis (observation or

questionnaire) of group performance Re-picturing the organization (new

metaphors or pictures)Reinforcing and consolidating change

ASSESSMENT OF OD MODEL FOR CHANGE OD does not always face up to harsh

realities of change OD is limited when change situation are

“constrained” OD requires “out of the ordinary”

leadership OD fits uneasily with the structures and

culture in the pubic sector OD does not “work” in all cultures