documentod

ORGANISATIONAL

DEVELOPMENT

Dr Bhavana Adhikari

TEST YOURSELF

1. Which of the following best describes organizational culture?A. Geographic location of the workplace B. The collective behaviors of individuals within an organization C. Organizational procedures, manuals and dress codes D. Superficial details indicating how things are done

2. Which of the following has the most significant influence on the formation of an organization’s culture?A. Union representatives and bargaining agreementsB. HR policies and proceduresC. The organization�s approach towards total rewardsD. The industry, environment and leaders of the organization

3. Which of the following best describes why it is so difficult to change organizational culture? A. People are likely to keep their belief system even if data contradicts it B. Senior management will not support changes when a company is performing successfully C. It is costly to update all the policies and proceduresD. Supervisors lack good communication skills

4. Which of the following is key to look at when diagnosing the organization�s current culture? A. Recruiting methods B. Practices and behaviors C. Employee benefitsD. Other organizations in a similar industry

What is the desired outcome of a gap analysis? A. A strategy for communicating the changes B. A detailed picture of the current situation C. A realistic picture of where the organization wants to goD. A plan that leverages things that are working well and addresses issues that need to be changed

Which of the following is most accurate when planning to communicate the change? A. Provide different messages to different audiences over several months

B. Don’t over-communicate as it could lead to confusion and frustration C. Ensure all communications are sent directly from the change agent D. Communicate multiple times using multiple communication channels

WHY DOES ONE ORGANISATION FAIL WHILE

OTHER SURVIVES AND EXCELS

?

ORGANISATION DEVELOPMENT Planned , systematic approach to

change

OD comprises the long range efforts and programs aimed at improving an organisations ability to survive by changing its problem solving and renewal processes

ORGANISATION DEVELOPMENT Richard Beckhard

OD is an effort plannedorganisation widemanaged from the topto increase orgn effectiveness and health through

planned interventions in orgn processes using behavioural science knowledge

ORGANISATION DEVELOPMENT Not a micro approach to change

More than a single technique ( TQM, Reengineering, job enrichment……)

Does not include random or adhoc changes

More than just improving morale and attitude (overall orgn health)

CHARACTERISTICS1. Change (Planned change)2. Collaborative (involvement of all)3. Performance (enhance perf and

quality)4. Humanistic (increased use of human

potential5. Systems (Systems approach)6. Scientific (based on scientific

approaches)

OD benefits both the individual and the organisation

Who is a change leader?

Name some Indian Change Leaders?

•No organisation can escape change

•In the coming decades changes in external environment will occur so rapidly that orgn will need OD techniques just to keep pace with the innovation

•Warren Bennis – leading OD pioneer

•He has identified three factors as underlying the emergence of OD

i)The need for new organisational forms (more adaptive forms)

ii)Focus on cultural change

iii)Increase in social awareness

• List out at least 7 reasons why orgn embrace change?

• Read about the culture of innovativeness at 3M

..\Story of Post It.docx

The organisation of the 21st centuryFaster Quality Conscio

usEmploy

ee Involvement

Customer

orientedSmaller

New Competitors Domestic Multi Nationals

Competitive Uncertainity

Regulation Prices Suppliers

Technology New Products Technology/ Processes

Changing Consumers Lifestyles Trends

Evolution of OD

•Term Coined in 1950’s•Based on work by Kurt Lewin•Two sources

• Work at NTL• Work at Survey Research Centre (Univ of Michigan)

Who does OD

•OD specialists or OD consultants•Internal or external•People in leadership or managerial positions who apply OD to their work•OD practitioners – people who use ,advocate and others to implement OD

Organisation culture

•System of shared belief and meaning including• language, • dress, • behaviour patterns,• value systems,• attitudes,• interactions etc

Socialisation Process

Process that adapts employees to organisation culture

Socialisation Process

New employee

expectations

Encounters organisation culture

Adjustment to cultural

norms

Result 1.Performance2. Commitment3. Obtain goals

Basic Responses to Socialisation Process

RebellionCreative

individualism Conformity

Rejection of all values and norms

Acceptance of only pivotal values and rejection of all others

Acceptance of all values and norms

Creative individualism is the ideal behaviour for a healthy and effective orgn but it is very difficult for a newcomer to differentiate b/w pivotal and periheral norms

MODEL FOR OD – 5 STAGES

Stage 1Anticipate need for change

Stage 2Develop the practitioner

client relationship

Stage 3The diagnostic

phaseStage 4

Action Plans, Strategies and

Techniques

Stage 5Self Renewal, monitor and

Stabilize

Stage 1: Anticipate need for change

•Felt need•Sensitivity to changes in environment

Stage 2: Develop the practitioner client relationship

•OD practitioner enters•Client- person/orgn that is being assisted•Build openness andtrust

Stage 3: The diagnostic phase

•After working rel has been established b/w practitioner and client , they collect data about the system and problem

•Analyse data to identify problem areas and causal relationships

Stage 4: Action Plans, Strategies and Techniques

•OD techniques- TQM, process reengineering, team building, intergroup development, job re design

•Max time spent on this stage

Approaches to change

•Organisations operate in environments ranging from relatively stable to a hyperturbulent environment

Approaches to change

•Stable environment-1. Unchanging basic

product and services2. Static level of

competition3. Low level of

technical innovationof growth

4. Slow and steady rate of growth

•Hyperturbulent environment-1. Rapidly changing

product lines2. Increasing and

changing set of competitors

3. Continual tech innovation

4. Rapid market growth

Renewing Transformational

Reactive

Satisficing Sluggish Thermostat

Model of Adaptive orientation in organisations

High Adaptive Orientation Low

Hyper turbulent

Stable

EnvironmentalStability

Sluggish-Thermostat Management

•Orgn that resists change till cost tradeoff favour it•Low risk, formalised procedures and a high degree of structure and control•Tendency to value tradition, value seniority over performance•May lead to problems in the long run•Auto industryFor some orgn slowness to to adapt

to changes comes from success rather than failure

Satisficing Management

•Centralised decision making

•High clarity of procedures and roles

•Change occurs at a rate that is good enough to keep pace with the industry

•This is because there is low pressure from the env to change

Reactive Management

•Have to deal with problems on short run crisis basis

•Style of reacting after env has changed

•Crisis management- replacement of key personnel, hasty reorganisation, salary cuts, cutting products

Renewal/ Transformational Management

•Introducing change to deal with future condn in anticipation• IBM, 3M

Todays orgn need to develop a renewal/ transformational

orientation if they are to maintain competitive edge

NIRMA STORY

Dr. Karsanbhai Patel

Started in 1969 with one man

Employs more than 15000 employees

SYSTEMS APPROACH

• Views organisaton as a unified system composed of interrelated units

•One of the most important concepts in OD because it deals with change and interrelationships in complex orgn

•Model of Horizontal Corporations- About managing across rather than vertically

•GE, DuPont , Motorola are moving towards this approach

•Flatter more adaptive organisations

Organisation as a System

• A system is a set of interrelated parts unified to achieve a goal•Characteristics of a system

i) Designed to accomplish objectiveii) Elements must have an

established arrangementiii) Interrelationships must existiv) Process ( flows of inf, energy,

matrl )

• Open System

•Closed System ( only theoritical)

INPUTS

Information

EquipmentFacilitiesMaterials

MoneyPeople

Technology

TRANSFORMATION PROCESS

OUTPUTS

ProductsGoods

Services

FEEDBACK FROM

ENVIRONMENT

EmployeesDepartment

s and Manages

CustomersInvestors

Govt

Orgaanisation as an open system

• Apply the systems model to i) Service organisationii) Manufacturing organisation

• An organisation is viewed as an open sociotechnical system of coordinated

• human and • technical activities

Approaches to a socio technical system

1. Organise around processes not tasks2. Flatten the hierarchy3. Use teams to manage everything4. Let customers drive performance5. Reward team performance

Components of organisation as a system

1. Goals and values subsystem (mission,vision)

2. Technical subsystem3. Structural Subsystem (orgn design,

policies , procedures)4. Psychosocial subsystem ( culture )5. Managerial subsystem ( integrates the

activities of the other subsystems)

British miners

“Short wall”“Long wall”

Unfortunately the longwall method resulted in lower perf and higher absenteeism- production decreased because they failed to consider the impact on sociotechnical system

High Performance systems

•High performance systems do not occur by chance or by policy – they are DESIGNED• Hannas high performance model focuses on 5

key variablesi) Business situation ( forces in the environment)ii) The business strategy ( goals and values)iii) Design elements ( technology structure etc)iv) Culturev) Business results

Contingency approach

•Systems approach gives a conceptual overview

• Contingency approach- there is no one best way of managing all situations

•OD Practitioner must design strategies accordingly

Future Shock

•Too much change in too short a time

•Strain on managers- need to be very adaptable

Organisational Transformation and OD•Two approaches to managing change

•OT•OD

Organisational Transformation and OD•Difference between OT and OD centres on the magnitude and speed of change

•OT refers to significant changes introduced in a short almost immediate time frame to deal with crisis or survival problems- changes in orgn form shape or appearance

•OD involves large scale change over a longer time frame on a more gradual basis

OD- Planned Change

•OD focuses on

•i) Individual effectiveness •Ii)Group effectiveness•Iii)Organisational effectiveness

•All OD approaches rely on some theory of planned change

•Lewin change model•Action research model•Positive model

Lewins Change Model

•Two sets of forces•Forces pushing for change•Forces striving to maintain status quo

• Change can be brought about by either • Increasing the forces pushing for change

OR• Decreasing the forces striving to maintain

status quo

•Which would be a better change strategy?

•Decreasing restraining forces or•Increasing pushing forces

Lewins Change Model

•Unfreezing

•Moving

•Refreezing

Action Research Model

•Focuses on planned change as a cyclical process

• Initial information about the organisation provides information to guide action and results of the action areassessed to provide further information to guide further action and so on

Action Research Model- 8 STAGES

1. Problem identification

2. Consultation with a behavioral science expert

3. Gathering data and preliminary diagnosis (interviews, questionnaires, process observation and organisational performance)

Action Model- 8 STAGES

4. Feedback to a key client or a group- Since it is a collaborative process the diagnostic data is usually fedback to the client usually in a group or a work team meeting

5. Joint diagnosis of the problem

6. Joint action planning (depending on the culture, technology, environment, cost, time etc)

Action Model- 8 STAGES

7. Action – May include installing new procedures and methods, re-organising structures and work, reinforcing new behaviour.

8. Data gathering after action

Action Research Model and Lewins model focus primarily on problems and how they can be solved to function better

Positive model ( through Appreciative Inquiry ) focuses on what the organisation is doing right

APPRECIATIVE INQUIRYPROBLEM SOLVING

ORIENTATION

Fill the Gap

APPRECIATIVE ORIENTATION

Realize the Possibilities

CURRENT STATE

THE QUESTIONSWhat’s wrong?

How do we fix it?

PAST FUTURE

THE QUESTIONSWhat’s working?

What’s possible?

What shall we do to achieve it?

Appreciative inquiry- 5 STAGES

1. Initiate an inquiry

2. Inquire into best practices ( collect data)

3. Discover the themes

4. Envision a preferred future

5. Design and deliver

ROLE AND STYLE OF OD PRACTITIONER

EXTERNAL & INTERNAL PRACTITIONERS

•OD practitioners who are specialists- professionals who have been trained in this field

•External

• Internal

EXTERNAL PRACTITIONERS

•Referred to as consultants

•Not a part of the client system – Hired from outside


•Advantages•Higher degree of influence and status

•Less in awe of power wielded by orgn members

•Tend to have more independent attitude and risk taking inclination


•Disdvantages•May not be familiar with culture,power dynamics etc

•Problems gathering information •Lack of trust

INTERNAL PRACTITIONERS

•Already a member of the orgn- either a top executive who initiates change or someone from HR deptt or OD deptt

•Many orgn have created internal OD practitioners ( Disney, GM, GE etc)


•Advantages•Familiar with culture and acceptable norms

•Less time wasted in familiarising

•Themselves have a stake


•Disadvantages•May lack adequate trg and skills

•May not have power•Taken for granted•May be more accomodating•May not have adequate time if handling other responsibilities as well

EXTERNAL INTERNAL PRACTITIONER TEAM

OD PRACTITIONER STYLES

•Change begins with Intervention

•Intervention refers to practitioners entry into the client system and includes different roles and activities


• Two dimensions•Accomplishing goals i.e. effectiveness

• Degree of emphasis on relationships and participant satisfaction i.e. Morale


Persuader

High

MORALE

LowLow Effectiveness High

Cheerleader

Stabilizer

Pathfinder

Analyzer


• Stabilizer• Neither effectiveness nor participant satisfaction

•Practitioner maintains low profile

•Typically found in large orgn where OD is just a staff function and not highly regarded by top management


• Cheerleader Style• More concerned with participant satisfaction

•Practitioner seeks warm working relationship

•Minimizes confrontation and maintains harmony


• Analyzer Style• More concerned with efficiency and little

concern for participant satisfaction

• Practitioner may be quite confrontational usually relying on authority to resolve conflicts

• Based on the belief that practitioner has specialised knowledge and client does not need to know the skills to solve problems


• Pathfinder Style• High degree of effectiveness and high degree

of member satisfaction

• Practitioner follows a collaborative problem solving approach by focusing on critical issues


• Pathfinder Style(Contd)• Pathfinder style focuses on six processes

i) Communicationii) Member role and functionsiii) Group problem solvingiv) Group norms and growthv) Leadership and authorityvi) Intergroup cooperation and competition

FORMING PRACTITIONER- CLIENT RELATIONSHIP

PRACTITIONER- CLIENT RELATIONSHIP

• Viewed as a system of interacting elements

i) Practitioner

ii) Client sponsor or contact – Person or group in the organisation who has requested for practitioners help and interfaces with the practitioner

iii) Client target system – Actual target of the OD

Practitioner Style model

•There is often a gap between the practitioners and the clients understanding about OD and change

•Practitioner needs to understand this gap and develop his style

Practitioner Style model

Practitioner Knowledge ,

Skills Values and Experience

Practitioner Task,

Performance, Expectations and rewards

Practitioner Style and

Approaches

Client Systems expectations and Values

Target organisation’s readiness for

change

Developing a trust relationship

•Openness between client and practitioner

•Some responses the practitioner can usei) Questions – “ How do you see the

organisation”ii) Advising – “ One possible idea is team

building”iii) Reflection – “It seems that you would like to

see a participative leader”iv) Interpretation – “ From our description,

interteam conflict could be the problem”v) Self disclosure – “ I have fely discouraged

myself when ideas were rejected”vi) Silence – Say nothing let the client sort out his

own problems

Practitioner Client Relationship

High

Open to others shares ideas and feelings

LowLow Accepts personal High

responsibility for own behaviour

CharismaticOpen to others but reject responsibility

Modes of Client Practitioner relationships

ConsensusOpen to othersAccepts responsibility

ApatheticClosed to othersReject responsibility

GamesmanshipClosed to others but accepts responsibility

Apathetic mode

•Members keep their ideas to themselves assuming that expressing them would make no difference

•Follow what is instructed and take no responsibility

Gamesmanship mode

•Members keep their ideas to themselves assuming that sharing information may threaten personally desired outcomes

•Make own decisions about how to behave thus taking responsibility for their behaviour

•May conform outwardly but manipulate inwardly

Charismatic mode

•Limited number of members share their ideas openly

•However are dependent on leaders for results

Consensus mode

•Members continuouslt share feelings

•Maintain ones responsibility for action

Contract between Practioner- Client

•Psychological contract

•Formal contract specially in case of external practitioner

•Internal practitioner does not need formal contract but operating ground rules are essential


•Formal contract – It generally contains the following

i)The point of contact- Who will practitioner be contacting

ii) The role of practitioner – Is he to be an expert or an advisor or a process helper

iii)The fees – hourly, daily, project based

iv) Schedule

v) The anticipated results


•Operating ground rules–

1) The point of contact which will usually include the top manager

2) The requirements of orgn members such as being present for meetings

3) Confidentiality of information

…………………………………..

Red flags in Practioner- Client relationship

1) Level of Commitment to change – May be low or may be verbally expressed but incongruent with actions

2) Degree of leverage or power to influence change

3) Clients manipulative use of the practitioner

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