OC 6440

Organizational Change and Development

Week 3
NATURE OF PLANNED
CHANGE; THE OCD
PRACTITIONER;
ENTERING/CONTRACT
ING
Nature of Planned
Change
 Nature of Planned Change:
What we will look at
• The three major perspectives on changing
organizations.
• A General Model of Planned Change that
will be used to organize the material
presented in the book.
• How planned change can be adopted to
fit different kinds of conditions.
 Lewin’s Change Model

Unfreezing

Movement

Refreezing
 Action Research Model
Problem Identification
Joint diagnosis

Consultation with a
behavioral scientist Joint action planning

Data gathering & Action

preliminary diagnosis

Data gathering after

Feedback to Client action
 Positive Model
Initiate the Inquiry

Inquire into Best Practices

Discover Themes

Envision a Preferred Future

Design and Deliver Ways to

Create the Future
 Comparison of
Planned Change Models
• Similarities
– Change preceded by diagnosis or preparation
– Apply behavioral science knowledge
– Stress involvement of organization members
– Recognize the role of a consultant
• Differences
– General vs. specific activities
– Centrality of consultant role
– Problem-solving vs. social constructionism
General Model of Planned Change

Planning Evaluating
Entering and and
and Diagnosing Implementing Institutionalizing
Contracting Change Change
 Entering and Contracting

• Entering Phase involves gathering information

from the organization to understand the
problems or to determine the positive areas for
inquiry.

• Contracting Phase spells out the changes that

will proceed for the future, the resources that
will be used and how everyone will be
involved.
 Diagnosing
Central change Activities

• Gathering
• Analyzing
• Feedback
 Planning and Implementing
Change
• Human process interventions at the individual, group, and
total system levels;

• Interventions that modify an organization’s structure and

technology;

• Human resources interventions that seek to improve

member performance and wellness;

• Strategic interventions that involve managing the

organization's relationship to its external environment and
the internal structure and process necessary to support a
business strategy.
 Evaluating and
Institutionalizing Change

• Evaluating Change requires feedback about

whether changes should be continued, modified,
or suspended.

• Institutionalizing Change requires reinforcement

through feedback, rewards and training.
 Different Types of Planned
Change
• Magnitude of Change
– Incremental
– Quantum
• Degree of Organization
– Over organized
– Under organized
• Domestic vs. International Settings
 Planned Change
• What is planned change?

• Planned change can vary enormously

from one situation to another. Why?

• Can be contrasted across situations

along three dimensions.
Key Dimensions of Planned
Change
• Magnitude of Change

• The degree to which the client system is

organized

• The setting-domestic or international

 Magnitude of Change
• Planned change efforts range from
incremental to fundamental.

• OCD practitioners are usually contacted

by managers for specific problems.

• Diagnostic and change activities are

limited to defined issues.
 Incremental Changes

• Involves limited dimensions and levels of the

organization

• Occur within the context of the organization’s

existing business areas.

• Aimed at improving the status quo

 Fundamental Change
• Directed at significantly altering how the
organization operates.

• Involve several organizational dimensions.

• Involve changing multiple levels of the

organization.
 Critique of Planned Change
• Conceptualization of Planned Change
– Change in not linear
– Change is not rational
– The relationship between change and
performance is unclear
• Practice of Planned Change
– Limited consulting skills and focus
– Quick fixes vs. development approaches
 Domestic vs.
International Settings
 Domestic vs. International
Domestic (NA & EU) International (APA)
• Equality • Hierarchical
• Involvement • Status
• Short time horizons • Avoid personal
• Save face
• Long time horizons
 Domestic vs. International
(Continued)
Action Research Process (ARP) recommended
• Cyclical
• Joint activities between organization members
• Multiple steps that overlap
– Problem identification
– Consult with behavioral science/OCD expert
– Data gathering and diagnosis
– Feedback
 Domestic vs. International
(Continued)
ARP adapted to fit cultural context
• Many organizational members
• Execs only
• Top-down
• Inside vs. outside consultants
• Face-to-face interviews
 Domestic vs. International
(Continued)
OCD Practitioner must:
• Be aware of own cultural biases
• See issues from another perspective
• Fluent in values and assumptions of country
• Understand economic and political context
– Vacations
– Time zones
– Cultural Guide recommended
 Domestic vs. International
(Continued)

Virtual Organizations – Time and Distance

• A business model that supports
– Online collaboration applications (audio and
video conferencing)
– Employees are able to use mobile technology
and home offices to overcome the barriers
that time difference presents.
 Domestic vs. International
(Continued)
• Synergies of Domestic Companies with MNCs
• Advantages
– Scale
– Existing resources
• Disadvantages
– “Foreignness”
– China / Japan island dispute
– Culture
– Required (Joint Ventures)
 Conceptualization of Planned
Change
Critique
• Must identify organizational features that can
be changed
• Intended outcomes from changes
• Mechanisms by which change is achieved
• Contingencies on which change depends
 Conceptualization of Planned
Change Critique (cont).
Contingencies
– Stages differ across situations
– Magnitude
– Client system organization
– Domestic or international
– Intuitive?
 Conceptualization of Planned
Change Critique (cont).

Not rational or orderly, but chaotic

– Shifting goals
– Discontinuous activities
– Surprising events
– Unexpected combinations
– Overzealous testimonials
– Change never ends
 Practice of Planned Change
Critique
• Specialized OCD practitioners (TQM,
Appreciative Inquiry, Group)
– results in inappropriate method usage (diversity,
reengineering, self-managing teams)
• “Cart-before-the-horse”
– Self-diagnosis and action plans
• Quick-fix instead of required long-term plan
• Sub-optimization
 An OCD Process Model
Assess

Evaluate Plan

A-P-I-E Model Implement

 Entering
and Contracting
 The Entering Process
• Clarifying the Organizational Issue
– Presenting Problem
– Symptoms
• Determining the Relevant Client
– Working power and authority
– Multiple clients -- multiple contracts
• Selecting a Consultant
Elements of an Effective Contract
• Mutual expectations are clear
– Outcomes and deliverables
– Publishing cases and results
– Involvement of stakeholders
• Time and Resources
– Access to client, managers, members
– Access to information
• Ground Rules
– Confidentiality
 Emotional Demands of Entry
• Client Issues
– Exposed and Vulnerable
– Inadequate
– Fear of losing control
• OCD Practitioner Issues
– Empathy
– Worthiness and Competency
– Dependency
– Over identification
CURRENT CONDITION INTENDED CONDITION
• Decreasing Revenue • Increasing Revenue
• Structure : Divisional, • Costumer focus
limited to expand • Center Of Excellent
• Style : Conservative
• Culture : nice
• Staff never fired

OCD process

Entering Contracting
 Entering COO

Clarifying Issue Determining Selection OD

Organization Relevant Client Practitioners

COO + Senior VP Professor

HRD + Dir of
Training & OCD

Clarifying Issue Proposal

Organizes Contract
Action Plan

Design Team Learning, Initial

Selection Visioning & Mutual Time & Ground Rules
Implementation Expectation Resources
Diagnosing Step
Owner + rep. Monitoring, Correction • free access
key area + key & Evaluation $xx,xxx 3-5 year
• time flexibility
Infl + Impl Direct expenses action plan
• Access
sensitive data
Elements of an Effective Proposal

Content Description
Goals of Descriptive, clear, and concise goals to be
Proposed Effort achieved
Recommended Description of 1) diagnosis, 2) data analysis
Action Plan process, 3) feedback process, and 4) action-
planning process
Specification of What will various leaders, including the OCD
Responsibilities practitioner, be held accountable for?
Strategy for Provide change strategies, including
Achieving the education/training, political influence, structural
Desired State interventions, and confrontation of resistance.
Fees, terms, and Outline fees and expenses associated with the
conditions project