topic 6 organisation development

8/10/2019 Topic 6 Organisation Development

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INTRODUCTION

The previous topics describe the planned approach to change and variousmodels of planned change. In fact, the planned approach to change managementis closely associated with the practice of organisation development(OD). OD is acompany-wide improvement strategy which emerged in the late 1950s and early1960s. It is about planned change; its aim is to get individuals, groups andorganisations to function better. OD covers various activities and techniques

used to achieve organisational effectiveness.

This topic first describes what OD is in terms of its definitions and characteristics.Then, we will go through an overview of the OD process, followed by anevaluation of the status of OD.

By the end of this topic, you should be able to:1. State the different definitions of organisation development (OD);

2. Describe the common characteristics of OD;

3. Describe and compare various models of OD;

4. Relate some models of OD to Lewins three-step model; and

5. Explain the strengths and weaknesses of OD.

LEARNING OUTCOMES

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TOPIC 6 ORGANISATION DEVELOPMENT 61

DEFINITIONS AND CHARACTERISTICS OFOD

OD is a planned, systematic process of change. It is a collection of plannedchange interventions designed to improve an organisations long-term healthand performance. It uses behavioural science knowledge and techniques toenhance the total system by improving its problem-solving capabilities and theability to cope with environmental changes (Certo & Certo, 2009; Daft, 2010).

A number of definitions exist in the literature and are presented in Table 6.1.Each definition has a slightly different emphasis:

The first definition focuses on culture as the target of change.

The second definition is concerned with ODs long-term interest in change effortand the use of change agents.

The third and fourth definitions address OD as an organisation-wide process.

And the fifth definition refers OD as a soft approach emphasising on smallincremental changes with employee participation.

Table 6.1: Definitions of Organisation Development

1. Organisation development is a planned process of change in an organisations culturethrough the utilisation of behavioural science technology, research and theory.

2. Organisation development refers to a long-range effort to improve an organisationsproblem-solving capabilities and its ability to cope with changes in its externalenvironment with the help of external or internal behavioural-scientist consultants, orchange agents, as they are sometimes called.

3. Organisation development is an effort (1) planned, (2) organisation-wide, and (3)managed from the top to (4) increase organisation effectiveness and health through(5) planned interventions in the organisations processes, using behavioural scienceknowledge.

4. Organisation development is a system-wide process of data collection, diagnosis,

action planning, intervention and evaluation aimed at: (1) enhancing the congruenceamong organisational structure, process, strategy, people and culture; (2) developingnew and creative organisational solutions; and (3) developing the organisations self-renewing capacity. It occurs through the collaboration of organisational membersworking with a change agent using behavioural science theory, research andtechnology.

5. Organisation development is a soft approach which describes a process of changeundertaken in small incremental steps managed participatively.

Source:Waddell, Cummings & Worley (2004)

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TOPIC 6 ORGANISATION DEVELOPMENT62

Upon incorporating the different views of OD, Waddell, Cummings and Worley(2004) presented their definition as follows:

Waddell, Cummings, and Worley (2004) further described the followingcharacteristics of OD:

(a) OD applies to an entire system such as the whole organisation, a singleplant, a division, a department or a work group.

(b) OD is based on behavioural science knowledge and practices such asleadership, group dynamics, job design and organisational culture,structures and strategy.

(c) OD is about planned change. It involves planning to diagnose and solveorganisational problems. However, such plans are often revised based onthe progress feedback of the change intervention. Therefore, OD is anadaptive process for planning and implementing organisational changes.

(d) OD involves both the creation and the subsequent reinforcement of change.The new change intervention will be reinforced and institutionalised to

become the norm of the organisation.

(e) OD has a wider focus encompassing changes in strategy, structure andprocesses at different organisational levels. A change programme aimed atmodifying existing organisation strategy at the organisational level, forexample, might include changes in the group decision-making structure(e.g., from centralisation to decentralisation) and in the methods of

individual solving problems (process). Consequently, OD involves changeinterventions at different levels: organisational, group and individual.

(f) OD is long-range oriented with the aim of improving organisationaleffectiveness and health.

Organisation developmentis a system-wide application of behavioural scienceknowledge to the planned development and reinforcement of organisationalstrategies, structures and processes for improving an organisationseffectiveness. (p. 4)


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Paton and McCalman (2008) define OD as follows:

Paton and McCalman (2008) also listed 13 characteristics common to OD asidentified by Margulies and Raia (1978):

(a) It is a total organisational system approach;

(b) It adopts a systems approach to the organisation;

(c) It is positively supported by the top management;

(d) It uses third party change agents to develop the change process;

(e) It involves a planned change effort;

(f) It uses behavioural science knowledge to instigate change;

(g) It sets out to increase organisational competence;

(h) It is a long-term change process;

(i) It is an ongoing process;

(j) It relies on experiential learning techniques;

(k) It uses action research as an intervention model;

(l) It emphasises goal setting and action planning; and

(m) It focuses on changing attitudes, behaviour, and performance of workgroups rather than individuals.

Organisation development is an ongoing process of change aimed atresolving issues through the effective diagnosis and management of theorganisations culture. This development process uses behavioural and socialscience techniques and methodologies through a consultant facilitator andemploys action-research as one of the main mechanisms for instigatingchange in organisational groups. (p. 213)

1. Define OD using your own words.

2. Describe the common characteristics of OD.

SELF-CHECK 6.1


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ORGANISATION DEVELOPMENT PROCESS

OD is about bringing progress change through more than one element and levelwithin the organisation. It is seen as a long-term, strategic mechanism forinitiating change that places emphasis on the process of attaining change. In

terms of the process of OD, there are a number of phases that an organisationwill go through. There are many models of the process in the OD literature andthese usually involve distinct stages or phases. Although there are some variationin describing the OD process, the phases involved are quite similar. This sectionpresents the OD process as defined by Bullock and Batten (1985), Cummings andWorley (2005) and Warner Burke (1994).

6.2.1 Bullock and Battens Four-Phase Model ofPlanned Change

Bullock and Batten (1985) developed an integrated four-phase model of plannedchange based on a review and synthesis of over 30 models of planned change inthe literature. This model has a broad applicability as it can be applied to mostchange situations used in OD. There are two distinct major dimensions in thismodel:

(a) Change PhasesThese are different stages an organisation moves through as it undertakesplanned change.

(b) Change ProcessesThese refer to the methods used to move an organisation from one phase orstage to another.

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Consult a few managers from several companies to find out theirunderstanding of the OD concept.

ACTIVITY 6.1


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The four phases of Bullock and Battens (1985) model of planned change aresummarised in Table 6.2:

Table 6.2: Bullock and Battens (1985) Four-phase Model of Planned ChangeChange Phase Change Process Involved

1. Exploration Phase

Organisation to explore whetherspecific changes are needed inthe system.

If so, decide how muchresources need to be committedto plan the changes.

Recognise the need for change.

Searching for professional assistance (achange agent or consultant) to develop theappropriate change interventions.

Establishing a contract with the change agentto define each partys roles, duties and

responsibilities.2. Planning Phase

This phase involves identifyingand understanding theorganisations problems andconcerns.

An intervention plan is thendeveloped to solve the problem.

Collecting data to analyse the problem.

Establishing the goals of the changeintervention.

Designing appropriate action plan to achievethese goals.

Persuading all key parties involved toapprove and support the proposed changes.

3. Action Phase

The organisation implementsthe changes based on the actionplan developed previously.

This phase moves theorganisation from its existingstate to a desired future state.

Making arrangements to manage the changeprocess.

Gaining support from all relevant parties forthe intervention to be taken.

Evaluating the implemented changeintervention.

Providing feedback about the results so thatany necessary adjustments to the action plancan be made.

4. Integration Phase

This phase is concerned withstabilising the changes so thatthey become part of anorganisations normal routine.

Reinforcing new behaviour amongemployees through reward systems.

Transferring the change intervention fromone part to another part of the organisation.

Training managers and employees tomonitor and improve the changes.


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6.2.2 Cummings and Worleys General Model ofPlanned Change

Cummings and Worley (2005) suggested a general framework for planned

change. This general model of planned change describes four basic activities tobe carried out in organisation development and change. The four activities orstages are:

(a) Entering and ContractingThe first stage is about entering into and contracting for change initiativeswith the change agent. Entering into a change intervention requires datagathering to understand the problems faced by the organisation. Uponrecognising the need for change, managers and the change agent discussthe problem and develop a contract or agreement to engage in planned

change. The contract spells out the specific change intervention, the timeand resources needed to implement the change intervention, and the extentto which the change agent and employees will be involved. Entering andcontracting help to define what issues will be addressed in the changeactivities, who will carry them out, and how they will be accomplished.

(b) DiagnosingThe diagnosis process is an important activity in planned change. The currentsituation of the organisation is carefully studied. It involves identifying andunderstanding organisational problems, gathering and analysing data, and

providing feedback to the managers and employees about the causes andconsequences of organisational problems. Organisation members and thechange agent will jointly discuss the data and their implications for change.

(c) Planning and Implementing ChangeThis stage involves action planning and implementation of the action plan.Organisation members and the change agent will jointly design interventionsto achieve organisational goals and make action plans to implement them.

1. Describe Bullock and Battens (1985) four-phase model for planned

change.

2. Differentiate between change phase and change process asdefined by Bullock and Batten (1985).

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Several factors may be taken into consideration in designing a changeintervention. They are:

(i) Organisations readiness for change;(ii) Organisations current change capabilities;

(iii) Supporting the culture for change; and

(iv) The change agents skills and abilities.

(d) Evaluating and Institutionalising ChangeThe final stage in planned change is evaluating the outcomes of the changeintervention. This involves assessing the degree to which the changes haveaccomplished the desired objectives. For example, managers can compareproduction costs before and after the change to see whether cost efficiencyhas been increased. Or, they can survey customers to see whether they aremore satisfied with the quality of the products and services. Feedback fromthe evaluation provides information about whether the changes should becontinued or modified.

Successful change interventions must be institutionalised so that theybecome the norm of the organisation. Institutionalisation makes the desiredchange permanent so that it persists in the organisation. The desiredchanges can be reinforced or refreezed through feedback, rewards and

training.

Figure 6.1 shows the general model of planned change depicted by Cummingsand Worley (2005):

Figure 6.1:General model of planned changeSource:Cummings & Worley (2005)

Describe Cummings and Worleys (2005) general framework for plannedchange used in OD.

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6.2.3 Warner Burkes Seven-Phase OD Change Process

Warner Burke (1994) identified seven phases which an organisation goes through

during a typical OD change process. These seven phases were also described inPaton and McCalman (2008) when they discussed the development oforganisations. These phases are described below in Table 6.3.

Table 6.3:Warber Burkes Seven-Phase OD Change Process

Phase Explanation

Phase 1:

Entry

At this phase, an initial contact is made between the organisationand the consultant or change agent. Both parties will explore theissues and establish a rapport for working on the OD intervention. It

is important for both the consultant and the organisation to have aclear understanding of their respective roles engaged in the changeprocess. The organisation needs to determine whether the consultantis the right person for the job and the consultant also needs to decidewhether he can work with the organisation.

Phase 2:

Formalising the

Contact

The initial contact between the consultant and the organisation isformalised by drafting a contract that explains and clarifies what will bedone. The consultant lays out what he intends to do and explains whatthe organisation is contracting to do. The client organisation alsodiscusses the consultants proposal internally with its key people, andmay propose amendments before agreeing to the terms and conditions.

Phase 3:

Information

Gathering and

Analysis

Upon successfully negotiating a contract, the consultant begins thediagnosis phase in conjunction with the client organisation. OD is atheart an action programme which relies heavily on data collectionand analysis. Hence, formal gathering of information is necessary;and this usually comes in the form of interviews, surveys andorganisational records and documentations.

Phase 4:

Feedback

Having gathered the data, the consultant will analyse it andsummarise the findings in a format that can be easily understood bythe members of the client organisation. A feedback session isconducted in this phase. The feedback session should cover the

following three elements:(a) Presentation of the summary of the data gathered and the

findings of the consultants initial analysis;

(b) A general discussion which clarifies any points of confusion;and

(c) The interpretation of what has taken place and how this will becarried forward.

The feedback session provides an opportunity for the consultant tomake changes to his analysis and interpretation upon discussionwith the relevant parties.


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Phase 5:

Planning the

Change Process

Upon the completion of the feedback session, both the consultantand the client organisation jointly plan for a change interventionprogramme. The aim of this planning stage is to search for

alternative actions available to the organisation and to consider thebest way forward, that is, the most appropriate course of action totake. It is important that the consultant go through this phase incollaboration with the client organisation to gain commitment toboth the plan for change and its implementation.

Phase 6:

Implementing

the Change

Implementation of change takes place once the organisation hasdecided what action to be taken. The consultant may or may not beinvolved at this implementation stage depending on the type ofaction to be taken, the experience required from the clientorganisation to take the action, and the consultants own assessmentof his role at this stage. It is suggested that the consultant keeps an

eye on the development of the intervention even though he is notactively involved in this phase.

Phase 7:

Assessment

The final phase of the OD change process is to evaluate the results ofthe change intervention. An assessment of the OD interventionshould take the form of a review to look at what has been done, whatthe current state is, and what further action is needed to move theorganisation forward to the desired state.

Table 6.4 provides a comparison of the three OD models of planned changediscussed above.

Table 6.4:Comparison of OD Models of Planned Change

Bullock and Battens 1985)

Four-Phase Model

Cummings and Worleys

2005) General Model

Warner Burkes 1994)

Seven-Phase Process

1. Exploration 1. Entering andContracting

1. Entry

2. Planning 2. Diagnosing 2. Formalising the Contact

3. Action 3. Planning and

Implementing Change

3. Information Gathering

and Analysis4. Integration 4. Evaluating and

Institutionalising Change4. Feedback

5. Planning the ChangeProcess

6. Implementing theChange

7. Assessment


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There are four major situations where OD is needed:

(a) The organisation is experiencing a problem which is leading to its failure in

meeting objectives;

(b) Change is required to react or adapt to the external environment;

(c) Where the introduction of one form of change (e.g., new technology)requires change in other parts of the organisation (e.g., organisationalstructure, reward systems, etc.); and

(d) Where the introduction of change acts as the trigger for consideration ofother new interventions.

OD can be an expensive and time-consuming process; hence, it is important toexamine its utility. Does OD deliver the benefits that it promises? The definitionsof OD given earlier in this chaper make it clear that its implicit promise is todeliver two major things:

(a) A more effective organisation; and

(b) A happier, more satisfied and committed workforce.Unfortunately, it is difficult to tell whether these aims can be achieved. A reviewof the previous studies on OD shows little support for ODs objective to improve

organisational performance and human process variables. In fact, severalcommonly voiced weaknesses of OD include the following:

(a) The benefits of an OD programme are difficult to evaluate;

(b) OD intervention programmes are generally too time consuming;

(c) OD objectives are usually too vague;

(d) The total costs of an OD intervention programme are difficult to gauge; and

(e) OD intervention programmes are generally too expensive.

These weaknesses, however, should not eliminate OD from consideration.Instead, managers can improve the quality of OD efforts by doing the following:

(a) Systematically tailoring OD intervention programmes to meet the specificneeds of the organisation;

(b) Continually demonstrating exactly how people should change theirbehaviour; and


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(c) Ensuring employees who change their behaviour in ways suggested by theOD intervention programme are rewarded.

In conclusion, OD is a planned approach involving various change activities andtechniques to help organisations achieve greater effectiveness. OD helpsorganisations to cope with rapid changes in the external environment. With thehelp of a change agent or OD practitioner, managers can diagnose problems anddevise appropriate solutions to the problems. The role of the change agent isdiscussed in the next topic.

OD is a system-wide planned approach to change; it focuses strongly on theprocess of initiating change.

OD is about changing the organisation from one state, which is considered asunsatisfactory, to another by means of behavioural science techniques andknowledge for change.

OD is a collection of planned change interventions designed to improve anorganisations effectiveness.

There are various definitions of OD.

OD has a number of characteristics that distinguish it from other approaches

to change that focus on one or few aspects of a system, such as technologicalinnovation.

Bullock and Battens (1985) OD model of change includes the following fourphases: exploration, planning, action and integration.

Cummings and Worleys (2005) OD model involves four basic sets ofactivities: entering and contracting for change, diagnosing the organisation,planning and implementing change, and evaluating and institutionalisingchange.

Explain briefly the strengths and weaknesses of OD interventionprogrammes.

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Warner Burke (1994) identified seven phases in a typical OD process: entry,formalising the contract, information gathering and analysis, feedback,planning the change process, implementing the changes and assessment.

There are four major situations where OD is needed:

The organisation is experiencing a problem which is leading to its failurein meeting objectives;

Change is required to react or adapt to the external environment;

Where the introduction of one form of change (e.g., new technology)requires change in other parts of the organisation (e.g., organisationalstructure, reward systems, etc.); and

Where the introduction of change acts as the trigger for consideration ofother new interventions.

However there are also several weaknessess of OD:

The benefits of an OD programme are difficult to evaluate;

OD intervention programmes are generally too time consuming;

OD objectives are usually too vague;

The total costs of an OD intervention programme are difficult to gauge;

and OD intervention programmes are generally too expensive.

ODs implicit promise is to deliver two things: a more effective organisation;and a happier, more satisfied and more committed workforce.

Although OD is increasingly going international, many organisations areapplying OD approaches and techniques without knowing the termorganisation development.


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Behavioural science

Change phases

Change processes

Consultant

Feedback session

Organisation development

Planned change interventions

Bullock, R. J., & Batten, D. (1985 December). Its just a phase were going through:A review and synthesis of OD phase analysis. Group and OrganizationStudies, 10, 383-412.

Certo, S. C., & Certo, S. T. (2009). Modern management: concepts and skills(11thed.). Upper Saddle River, NJ: Merrill Prentice Hall.

Cummings, T. G., & Worley, C. G. (2005). Organization development & change.Mason, Ohio: South-Western Thomson.

Daft, R. L. (2010). New era of management (9th ed.). South-Western, CengageLearning.

Margulies, N., & Raia, A. (1978). Conceptual Foundations of OrganizationalDevelopment.New York: McGraw-Hill.

Paton, R. A., & McCalman, J. (2008). Change management: A guide to effectiveimplementation(3rd ed.). London: Sage Publications.

Waddell, D. M., Cummings, T. G., & Worley, C. G. (2004). Organisationdevelopment and change(2nd ed.). Southbank Victoria: Thomson.

Warner Burke, W. (1994). Organization Development: A Normative View (2nded.). Reading, MA:Addison-Wesley.

topic 6 organisation development

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