Overview of organization development 2 The nature of planned change Eee ee ace ad Pp Nae }Gatyages/ntory Cpa aa > The nature of planned change Learning objectives « Describe and compare four mac [itn of ott conomic nd tecnolgal development makes change an inevitable feature of orguin, ‘inal life However, change that happens to an organization can be distinguished from change thts pannedChapter 2 The natwe of panned change a ) SEG” Lp] eemete L_| tetin weet) Change Change (Chapter) (Cospters 7-8, (chapeer9) ict L 2-2a ENTERING AND CONTRACTING The fist set of activities in planned change concerns entering and contracting (described in Chapter 4). Those events help managers decide whether they want to engage further ina planned change programme and to commit resources to such a process. Entering an organization involves gathering intial data to understand the problems fac. ing the organization orto determine the positive area fr inquiry: Once this information i collected, the problems oF opportunities are discussed with managers and other organization members to develop a contractor agreenent ‘o engage in planned change. The contract spells out future change activities, the resources that will be commited to the process, and how OD practitioners and organization members willbe involved. In many cases, organizations do not get beyond this early stage of planned change because one or more situations arise, Disagreements about the need for change surface, resource constraints are encountered or other methods for change appear mote feasible When OD is used in non-traditional and international settings, the entering and contracting process must be sens tive to the context in which the change is taking place, 2-2b DIAGNOSING In this stage of planned change, the client system is carefully studied. Diagnosis can focus on understanding organi- zational problems, including their causes and consequences, or on collecting stories about the organizations positive attributes. The diagnostic process is one of the most important activities in OD. It includes choosing an appropriate ‘model for understanding the organization and gathering, analyzing and feeding back information to managers and organization members about the problems or opportunities that exist. Diagnostic models for analyzing problems (described in Chapter 5) explore three levels of activities. Organization issues represent the most complex level of analysis and involve the total system. Group level issues are associated with department and group effectiveness. Individual level issues involve the way jobs ate designed and performed. Gathering, analyzing and feeding back data are the central change activities in diagnosis. Chapter 6 describes how data can be gathered through interviews, observations, survey instruments or such archival sources as meeting ‘minutes and organization charts, It explains how data can be reviewed and analyzed. Chapter 6 also describes the process of feeding back diagnostic data. Organization members, often in collaboration with an OD practitioner, jointly discuss the data and their implications for change. 2-2¢ PLANNING AND IMPLEMENTING CHANGE In this stage, organization members and practitioners jointly plan and implement OD interventions. They design interventions to achieve the organizations vision or goals and make action plans to implement them. There are several criteria for designing interventions, including the organizations readiness for change, its current change capability, its culture and power distributions, and the change agent’ skills and abilities (discussed in Chapter 7) ‘Depending on the outcomes of diagnosis, there are four major types of interventions in OD: 1 Human process interventions at the individual, group, and total system levels (Chapters 10 and 11). 2 Interventions that modify an organization’ structure and technology (Chapters 12,13 and 14),cme Chapter 2 The nature of planed chore 2 3. Human resources interventi soutees interventions that seek to improv §iman sence interventions hat eto nprove member prformanceand wells (Cape 15, land 17) re tons hat inoie managing the ogiation’ rdatnship oer environment andthe essary 10 support a business strategy (Chapters 18, 19 and 20). Caper 2 reset specie information for crying ot OD in oraniaton seeing tial inmost inlet gba anges ninemsn cittonening nents canard ith eng nd ming te cha rsAs ed i i incides motivating change creating dese future ison ofthe organiation deep pl support, managing the transition toward the vision, and sustaining momentum for change. paid sults and 2-2d EVALUATING AND INSTITUTIONALIZING CHANGE The fina stage planned change involves evaluating the effects ofthe intervention and managing the nstatonal ization of successful change programmes so they persist, (Those two activities are described in Chapter 9.) Feedback to organization members about the interventions results provides information about wher the cha continued, modified or suspended, Insttutionalizng successful changes involves reinforcing them thr rewards and training, Applicaton 2.1 describes the intation ofa planned change process in a semi-government organization using Lewin three-stage model. provides especially rich detail on the planning and implementing phase of change and ‘on how people can be involved inthe process. Application 2.1 Planned change at Bord na Mona - Irish Peat development authority esemertn 3 ter oor et Boe sea company that fr 40 years had been an important and popular employer ireland dedicated to producing peat ~ an abundant natural resource in reland, The company had recent encountered tradng dficutes and atthe time of O'Conner’ appaniment, Bord ra Mona had accumulated seniticant debts. had borowed cata at high interest rates from the European lestment Bank atthe behest ofthe government inorder to investi indigenous energy sources ie. peat! folowing the ci shocks ofthe seveties. “This debt mountain had been exacerbated folloving two poor harvesting seasons, largely due to adverse weather cond- tons, Unions had expressed concern atthe possibly of laos of their members and morale was low atthe company “The option open tothe new CEO were lnited. He could contrue as had past managements, opess on as before and for kinder weather conditions and tus better harvests, AReratveb, plead for more government assistance, whie hoping fe could opt for major strategic and structural change toward a versed en, shared risks among stakehoders and an enterrising innovative culture, He chose the second option embarking ona change Mona's strategy, structure and culture. process that transformed Bord na Planned change in action ‘yume ated te wih an nr es clo te oust ate was wsingesecbsed change aes ooo any mdelstha were we grounded inthe bt lof aca se topes. The rena Nove and Reeeze. model employed in ths transition was Kurt Lewin’ treestage made of Untreze, Unfreeze The fist part of Le were creating the felt ned for the change 2 | cores model ivohed a dagross of the station. parle wit this dgnos, the management eam nd were creating @ vision forthe fture.30 eg Part Overvi ' Overview of organiation development Diagnosis Only ie weeks ater ; ies spon, O'Connor esabished a ranston eam of four executives, knoun asthe Task Force, from various pets ofthe en eeutn of wide ranging study ofthe onganzaton, The members ct his group cane nthe ransom The ere ain a8 ey wee aleve fh dayody responsi oa te cof, recommend he most amr nee he study vere essen to examine he company nds enitment ant Stuy, the Tsk Fore ore SREY and struct for curet and fue endronment, Troon of management consatncr mous estes. A ltine, experienced change agent as engaged fom aed em 1 etana ts, The Task Force aso estabished several subgroups to elo adress areas ofthe study this "er emloyees helped to increase imohement inthe tanston, Creating the felt need mae 20t Gown tothe task of commuicating the problems with the current positon of Bord na Mona a lost no co atehoers. He began tis wih a series of workshops for employees on teste of the fem ings were eetunty to present to each group te tak finaril deta ofthe compary’ poston. These stakeholder na experience for most workers. Beyond the employees, Connor spoke to the wier group of igeholders in Bord na Mona's domain. These included the government, financial insttutos, trades union lea rental olticiens, customers and commercial enterprises engaged in Bord na Mona's supply chain. At board level O'Connor cutivated strong elatonships and communicated incessant wth board members india 2 colectivey. Worker directors, elected because of European legislation on employment democracy, wee @ partic focus of the new CEO. Organizational visits to model stes are a ractonl means of sensizing employees tothe ned for change. Voho dict inthe past before the Kalmar restructuring. Nissan dd itbefore bung at Sunderand. nimtaton ofthis pattern, O'Conner brought workers to Finland to see novel peat harvesting methods that were much ess winerable to adverse weather cons ‘tons, principally because of the special contracts agreed with employees. Seng oer peat wrkers behaving deer and benefiting from the new behaviow's provided strong arguments forthe need for change. Customers were also engaged inthe batle for hears and minds. Major custome were inited to came and to adress ‘the Bord na Mona management and workforce to discuss the issues of quality, prices and punctuality that were creating problems for clants. Workers listened positively to the ples for change from ouside the compary. O'Connor employed symbolic action when etre woud not work. an attempt to reduce bureaucracy, he ordered Copies ofall paper forms used by Bord na Mona tobe pasted to the wal of large meeting rom in headquarters in Dub, He proved his pont when the employees carrying out his wishes ran out of wal space nd placed the remaining frms ina set of 14 volumes on the meeting room table Creating a vision “The new CEO worked dient to share his vision of th ure but alo engaged tes in creating the pce ofthe new Bord ra Mona. He explained this employees that he wanted ose a fue state where the compary wold be international, preeminent nts prods range and highly dversied. He stressed aftr cf high value added products and serces fr European markets, He vale a malts fem wha lrg RED core deoing nen pods and elaine tecinology waster agreaet. He stressed th need fr ont etues wi otter mar procuers ought the globe and advocated that Bord na Mona must be prepare to buy marketshare where necessary. On th employee side, he instigated a mission and vison exercise wth 300 empayes, where they colaborated in an exercise to create a mission and vision statement forthe new Borda ona. The out fom hs colaborabon ere eget an rusted View of natractve, credble and stared fue forthe company. Daring is fest wo years noice, the CEO worked wh sei management using a series cf to day eres to exan- ine the cre values ofthe company and subseqentyttlesh out ison an vin statement started ching seri wrk wth the 300 employees group. At these reat, managers were encouraged to excl what he tre mht ok Ike inter uit the son happened. Leadership development programmes for management and staf were conducted to develop the competencies neces cary to lead te orgonzaton and nts tvar the fire sion of Bod na Noa. These programmes, wich esenble 20 chops in thei design enabled the foulaton fans for aching the ure sate foreach manager’ area. Pans roe redewed regulary in the presence of seior maragementChanter 2 The natu ef psnned change a Moving Moving involves choosing the means large organization such a Bord na of hanes, ovetconng resistance and garingcommitnent fo chang. Moving 2 was based on systemic approaches one reared an integrated approach which avoided a quick fx mentally and ose ‘to moving the organization frm the past into the fue Choosing the means of change Connor chose a mixed methods aporoach to change. At tes hs approach was ‘Was sigticant colaboraton and inolement a ales of tern Homeve, ere unable to adap tothe new sion. nthese instances, ext parka both to reduce th ent packages were use uce the workdorce ano alow Roceten ripest o move on. OComar moved tough vars Noe of charge nde sho i ean nger, and often more progressive ta he payed he more foretf and sometimes trectve iis approach consistent wih adtona OD nthe there there were nes when emplayees and mangers Overcoming resistance Not al staf wilingly accepted the changes that were contemplated forthe new vison. Even at ma were smal numbers of individuals who dd nt want to participate in the change, Some of is res nance about the past. O'Connor was aware that leaders whose triumphs lay nthe pos could to charges that Seemed to denigrate that past. He offered thse peoplaa scapegoat by taming me {ors current difeutes n ths way, the organization was alowed to amits mistakes and to move O'Connor used organizational ceremonies to help overcame resistance to change. Oreste, retremant, a Programmes et, gave the CEO an opportunty to celebrate the vaues ol the orgarizaton, to dita ast and to give employees nen scrats ta hep shape a naw discou'se. Promotions were celebrated apocintments were lauded for their embodment ofthe vison and vaies ofthe new Bord na Mona, Ke losers inthe process, the new CEO used copious energy to generate a feel good factor about tec Gaining commitment for change Dring the transition, the Executve Team identified a cical mass of individuals ta forthe success cf the overall change intiative. This included the opinion makers in the mide managerent group of section heads, the ont ine management €roun of supervisors and the inion representatives of general operatives and craft persons. Each person inthe rca mass rou was identified asa natural leader whose voice was listened toby those around them. Management engoged these ‘pinion makers in OD programmes that ivclved them inthe change inate asa leader or asa contributor. Middle managers and superiors took part in eadership programmes where they wer exposeo change concepts suchas ‘Lenin threestep model and Tic and Devan Trasformatona Leader process Tas leaders were gen acup assent, \eveloped specific implementation schedules and engaged wth thir on leaders as iolementers of the change programme, Local rade union representatives were engaged in iscussins betwoenseror management nd top urion desi, Th cd- ture of colectve barging in eland meant that tes ont ne representatives coud not be ignored dg sucha major change effort Rather, their piions and support were vital for is success and accordingly their engagement in negotiations was ky, Refreezing ‘Conor used the tools avstable through he Human Resource function to eke permanent the change proces. n Lens terms he was erezng. He anointed anew Hunan Resources Decor th the devaton of an Assan’ HR Der wo tax ont year’ sence wh the orgeiao, Tis lection supported th change programme ard was sata cers ofthe nw behaviours that were expected, Thought the tp management ery, the nen CEO replaced aos of he ‘executives who were in post when eared, He tacked the HR Dectr wth smarting the clr HR polis of hepa zed repacing them with anew approach for shaping desired behaviors tht were coed n buses poly and sae. Today iversied international ogaization Bord na Mona emerged from its transformation to become what i is today, a highly diversi activ in power generation, waste and recovery, bioenergy, fuels, peat and horticuture: a son not too cssmiar tothe one ‘tested by its former employees as they embarked on ther planed change programme al those years ago. ‘Source: Ts cplcabon was sine by oe che autos, Pau Donovan, no worked hs corpary ug is arin, cement eves, there 2 lated to 630- ivembracing Bors ra Mona ining, the company fra ts change at hese events,32 Pert Overview of crgaizaton development i 2-3 DIFFERENT TYPES OF PLANNED CHANGE The general model of planned chan, Practice, the different phases are m adjust the stages to fit the needs of depending on the client's needs an planned change can vary enormot ‘To understand the differences! the magnitude of organizational is domestic to the consultant or describes how the OD process ypcally unfolds in organizations. In actu wt neatly as orderly a8 the model implies. OD practitioners tend to meafy ‘the situation. Steps in planned change may be implemented ina varie i goals, the change agent’s skills and values, sly from one situation to another better, planned change can be c change, the degree to which the client system is organized international ry of ways, and the organization’ context. Thay 2-3a MAGNITUDE OF CHANGE Planned change efforts can be characterized that involve fine tuning the organization to fu Incremental 26 fling along a continuum ranging from incremental change, indamental changes that entail radically altering how it operates" has fed inv limited dimensions an ees of the organization sich the decision maling rid calngs Mork toups. They occur within the context ofthe organization existing business strategy, stractne and culture and are aimed at improving the status quo. Fundamental changes onthe other hand, ave dine snciugiteanty altering how the organization operates, They tend to involve several organizational dimenson, ine ang eucture culture, reward systems, information processes and work design They als invave chang ing multiple levels of the organization, from top level management through departments and work BroUpS to individual jobs. Planned change traditionally has been applied in situations in 2o6ie and 19705 were concerned mainly wth fine-tuning their bureaucratie structures by resolving many of the social problems that emerged with increasing size and formalization. In those situations, a relatively bounded set of problem solving activites. OD practitioners are typically help solve specific problems in particular organizational systems, such as poor comm ‘ofa work team or low customer satisfaction scores volving incremental change. Organizations in the planned change involves contracted by managers to wunication among members sin a department store. Diagnostic and change activities tend to {belimited to the defined issues, although additional problems may be uncovered and may need to be addreaea Similarly, the change process tends to focus on those organizational systems having specific problems, ally terminates when the problems are resolved, Of course, the OD problems. In recent years, OD has been increasingly concerned with fundamental change, As described in Chapter 1, the sreater competitiveness and uncertainty of today’s environment has eda growing numberof organizations to alter drastically the way in which they operat. In such situations, planned change is more comple, extensive and ong {erm than when applied to incremental change.” Because fundamental change involves most features and levels of the organization, its typically driven from the top, where corporate strategy and values are set. OD practitioners help senior executives create a vision ofa desired future organization and energize movement in that direction. They also help them develop structures for managing the transition from the present tothe future organization and may include, for example, a program management office and a variety of overlapping steering committees and redesign teams, Staff experts also may redesign many features ofthe firm, processes, work designs and information systems. Because of the complexity and extensiveness of fundamental change, OD professionals often work in teams comprising members with different yet complementary areas of expertise, The consulting relationship persists over relatively long time periods and includes a great deal of renegotiation and experimentation among consultants and ‘managers The boundaries ofthe change effort are more uncertain and dfs thn those in neremental changes ‘making diagnosis and change seem more like discovery than like problem solving, (We describe complex strtegic and transformational types of change in more detail in Chapters 18, 19 and 20.) and itgener- Practitioner may contract to help solve addtional such as performance measures, rewards, planning‘green aremmeeeicor samen NII: carte tne nm tne Chanter 2 The nature of planed change 33 [tis important to emphasize that fandamental change may or may not be developmental in nature, Organizations may drastically alter their strategic direction and way of operating without significantly developing their capacity to solve problems, to make future changes and to achieve both high performance and quality of work if, For example, firms may simply change ther marketing mix, dropping or adding products, services or customers; they may drast cally dvsnsize by cutting out marginal businesses and laying off managers and workers or they may tighten mana~ serial and financial controls and attempt to squeeze more out ofthe labour force. On the other hand, organizations ‘may undertake fundamental change from a developmental perspective. They may seck to make themselves more competitive by developing their human resources; by getting managers and employees more involved in problem solving end innovation; and by promoting flexibility and direc, open commonication. The OD approach to funda: rental change is particularly relevant in today’s rapidly changing and competitive environment. To succeed in this, setting, firms such as General Electric, Kimberly-Clark, Asea Brown Boveri, IBM, and Banca Intesa are transforming themselves from control oriented bureaucracies to high involvement organizations capable of changing and improv ing themselves continually. 2-3b DEGREE OF ORGANIZATION Planned change efforts also can vary depending onthe degree to which the organization or client system is organized. In over-organized situations, such as in highly mechanistic, bureaucratic organizations, various dimensions such as leadership styles, job designs, organization structure and policies and procedures ae to rigid and overly defined for effective task performance. Communication between management and employees i typically suppressed, conflicts are avoided and employees are apathetic. In under-organized organizations, on the other hand, there isto litle con- straint or regulation for effective task performance. Leadership, structure, job design and policy are poorly defined and fail to diect task behaviours effectively. Communication is fragmented, ob responsibilities are ambiguous and employees’ energies are dissipated because they lack direction, Under-organized situations are typically found in such areas as product development, project management and community development, where relationships among diverse groups and participants must be coordinated around complex, uncertain tasks. In over-organized situations, where much of OD practice has historically taken place, planned change is gener- ally simed at loosening constraints on behaviour. Changes in leadership, job design structure and other features are designed to liberate suppressed energy, to increase the flow of relevant information between employees and manag- sand to promote effective conflict resolution. The typical steps of planned change (entry, diagnosis, intervention and evaluation) are intended to penetrate a relatively closed organization or department and make it increasingly ‘open to selfdiagnosis and revitalization. The relationship between the OD practitioner and the management tearm tempts to model this loosening process, The consultant shares leadership ofthe change process with manage- ‘and maintains flexibility in relating to the ‘ment, encourages open communications and confrontation of confi organi ‘When applied to organizations facing problems in being under-organized, planned change is aimed at increas- ing organization by clarifying leadership roles, structuring communication between managers and employees, and ing job and departmental responsibilities. These activities require a modification of the traditional phases of planned change and include the following four steps 1 Identification, This step identifies the relevant people or groups who need tobe involved in the change programme. In many under-organized situations people and departments can beso disconnected that there is ambiguity about ‘who should be included in the problem solving process. For example, when managers of different departments have only limited interaction with each other, they may disagree or be confused about which departments should be involved in developing a new product or service. 2 Convention inthis ste, the relevant people or departments in the company are brought together to begin orga- nizing for task performance. For example, department managers might be asked to atend a series of organizing ‘meetings to discuss the division of labour and the coordination required to introduce anew product,3 3 Organization, Different organizing mechanisms are created to structure the newly required interactions among People and departments, This might include creating new leadership positions, establishing communicatiog, channels and specifying appropriate plans and policies. 4 Evaluation. In this final step, the outcomes of the organization step are assessed. The evaluation might signg, ‘the need for adjustments in the organizing processor for further identification, convention and organization activities. 34 Prt | Overview of orgarization develonment In carrying out these four steps of planned change in under-organized situations, the relationship between the OD practitioner and the client system attempts to reinforce the organizing process. The consultant develops a wel, defined leadership role, which might be dizective during the early stages ofthe change programme, Similarly the consulting relationship is clearly defined and tightly specified. In effect, the interaction between the consultant ang the client system supports the larger process of bringing order to the situation. Application 2.2 isan example of planned change in an under organized situation. In this cas 4 person from industry who identifies a multifaceted problem: Univesity research that should be helpful to man. facturing organizations isnot being shaped, coordinated or transferred. In response, he forms an organization to tighten up the relationships between the two parties?® se, the change agents 2-3 INTERNATIONAL SETTINGS Planned change efforts have traditionally been applied in North American and European settings, but they are increasingly used outside of these regions.* Developed in western societies, OD reflects the underlying values and assumptions of these cultural settings, including equality, involvement and short term time horizons, Under these conditions, it works quite well. In other societies a different set of cultural values and assumptions can be operat ing and make the application of OD problematic, In contrast to western societies, for example, the cultures of most Asian countries are more hierarchical and status conscious, ess open to discussing personal issues, more concerned with saving face and have a longer time horizon for results. These cultural differences can make OD more difficult to implement, especialy for North American or European practitioners: they may simply be unaware of the cultural norms and values that permeate the society ‘The cultural values that guide OD practice in the US, for example, include a tolerance for ambiguity, equality ‘among people, individuality and achievement motives. An OD process that encourages openness among individuals, high levels of participation and actions that promote increased effectiveness is viewed favourably. The OD practi- tioneris also assumed to hold these values and to model them in the conduct of planned change. Many reported cases of OD involve western-based organizations using practitioners trained inthe traditional model and raised and experienced in western society ‘When OD is applied outside of North America or Europe (and sometimes even within these settings), the action research process must be adapted to fit the cultural context, For example, the diagnostic phase, which is aimed at understanding how the organization currently functions, can be modified ina variety of ways. Diagnosis can involve many organization members or include only senior executives be directed from the top, conducted by an outside consultant, or performed by internal consultants; or involve face to face interviews or organizational documents. Fach step in the general model of planned change must be carefully mapped against the cultural context. Conducting OD in international settings can be highly stressful on OD practitioners. To be successful they must develop a keen awareness oftheir own cultural biases, be open to seeing a variety of issues from another perspec tive, be fluent in the values and assumptions ofthe host country, and understand the economic and political context ‘of business in the host country. Most OD practitioners are notable to meet all of those criteria and partner with ‘a cultural guide, often a member ofthe client organization, to help navigate the cultural, operational and politic nuances of change in that society.Chapter 2 The ratwe of planed change as Application 2.2 Planned change in an underorganized system he nsttute for Manufacturing and Automation Research (MAR) was founded n 1987 in Los Angeles bya group of manufacturing industry members. nts earliest stages of development, one person wi had a clear picture ofthe obstacles to manufacturing fexcelence was Dale Hartman, MAR’ executive drectr and former cecto for manufac turing at Hughes Aircraft Company. He and several other indust'y associstes pinponted the predominant reasons for flagging competitiveness: needless dupicaton of effort, ‘among manufacturing inovators; ficulties in transfering technological breakthroughs ‘ror university to industry; frequent relevance of university research to the needs of industry; and the inability of individual industry members to commit the time and funds to research projects needed for continued technological advances, Hartman and tis coleagues determined that organizations should create 2 pool of funds for reseerch and conduded that the research would most efficiently be carried out in existing university facies, Tey worked through several plans before they arrived at the idea ofthe IMAR consorsum. The US Navy had been interested n jot efforts fo inovations in artificial inteigence, but its constraints and interests were judged tobe too narrow to aires the problems that Hartman ‘2nd the others identified. "Networking with ather industry members (TRW, Hughes, Nrthvop and Rockwell and two universes with which Hughes had been engaging in ongoing research (University of Southern California (USC) and University of California Los Angeles (UCLA) this orginal group formed a stering committee to investigate the viabity of a joint research and development consortium, Each of the sit ealy planners contributed $5,000 as seed money fr basic expenses. The steering committee, based on experience in cooperative research, determined that a ful time person was needed to assume leadership ofthe consortium. Members ofthe committe persuaded Dale Hartman to retire early from Hughes an take on MAR‘ leadership fulltime, Hartman brought with im a wealth of knowedge about bari t novation and technology transfer, ana sold reputation n both industry and academia that was crucial forte success of mule sector patnersips.Asafrmer Hughes networker, he knew how to lobby state and federal government sources for funds and legislation that promote industry inna- ‘alin, He also knew 2 host of talented people in Southern California whom he would persuade to become INAR member. in his 30 years in manufacturing, Herman found that universityriven research had not produced a respectable yield of usable information. University research was frequent ielevant to industry needs and seldom provided for transfer of ‘sable innovation to the plant floor. industry was only tangentaly involved in what the university was doing and Hartman ‘aw litle opporturity forthe two sectors to benef from a partnership. Therefore, it was determined that MAR would be Userdriven, Industry woul set the agenda by choosing projects from among university proposals that promised tobe of {generic use to industry members, anit would benefit by intencing the rection of research and receiving early informa: tian about research results. inthe next several months, the steering committe and Hartman met regularly to define common research needs and locate funding sources. They sought industry sponsors from high technology companies with an understanding of the problems in manufacturing research and a desire todo more than merely supoly money. They wanted members who woud be vilng to get inwoted in IMAR's programmes. Furthermore, they wanted all members to be able to use the results of MAR’ generic research while rot competing drecty with each oter Fnaly, they decided that they wanted 2 reatively sma membership the membership grew too lege, it might become unwieldy and thus obstruct efforts to get things done. IMARs industrial advisory board was formed with sixindustrial organizations represented: Xerox, Hughes, TRW, Northrop, [BM and Rockwell, in addition to USC and UCLA, Members were to pay $100,000 each and make a threeyear commit: ment to MAR. With inital objectives in place and a committed membership, Hartman was already searching for addtional funding sources. He was successful in getting abil introduced in Calf’ state legislate, later signed by the gover ror that authorized the state department of commerce to fund AR $200,000, Moreover, MAR was abe to ti into the tndustry-University Cooperative Research Center Program (UCRCP] of the National Science Foundation INF) by forming anindusty-aniversty consortium called the Cente for Manufacturing and Automaton Research (MAR), NSF funded CMAR with 2 $2 rion grant and afveyear commitment. NSF funding in particular was sought because ofthe instant credit that NSF sponsorship gives to such an institute.36 Patt Overcew ot rian develpmert INS recuesed tat severalmore unset beaded tothe consrtism adn, an NSF evaluator was tobe peesent at AIR meeings and conduct gre evan of CAR progress. MAR aeady had UCLA and USC amen ts members and now aod four uray atts to work on esearch projects: te Unversiy of California, ie; Unversity of Califor, Santa Barber; Caltech; and Ariana Sate Univers. The NAR steethngcormitee then voted to urd research prjcts tan tated iversy ony tinvoed cooperation wih eiher USC or UCLA Each ofthe four wives aitats was pared with eter USC or UCLA. Each afte rivers was selected because proved expetsein an a of interesto MAR’ nda ‘memberstio,ieana State fr exarele, had expertise nkrowedgebased sinlaton syst in indus engineering, ld of special concer o MARS membership MAR funded a unbe of projets, nus pecects betwen he aise universes, ‘between jot nesigatos at USC and UCLA andindependet projects at USC an UCLA. Fe 25 tons IMA stuctie Figure 2.5 Organizaonal structure of the institute for manufacturing and automation research (MAR) MAR Industry Advisory Board Executive Direcor Center for Manufacturing and Aueomaton Research (CMAR) National Science Industry Advisory Board Foundation Evaluator [Prien Pro [Protas [Pras [roe] Pr] [Pre CM opt er wee of A the san oo ets box of dec sein corsa The eco diet of CHD aoe aay, caneson tHe Cnc Scene epaten lS, Dee eke diet of VL Cent nda codecs by um nde ston aceon Haran. Thet eons ced dtig te seach ns cone toa vet ons carts sts tnt en nts tebe te cary ee ae oc a nly mann on a mobs oe ene Sahn ‘course loads, to research professors wherever possible, ad eeChapter 2 The nature of planed change a tocovercome its sa Ped industry He epprecate applied problems and manu ing needs 8 for topies ted short term orientation and helped university peoph des oat of directors set he research agenda at annial reves in whch & wate ecoomeres to 'be finde, MAR took these recommendations and trndated them ito rue ‘among the participating university members. CMARs cocdrectors 1 ten sokcted proposals rom the uversty member. ‘hp Researches proposals wer evaluated and renked by dst rereseratis and en paced oon tae ‘cvisory board, which made final determinations on which Projects would be funder Not ony dd MAR engage in esearch poets, suchas mcrolecuenie a eons, worked to reso crcl problems for menuacturng imovaten sear Ove ay ons BR ‘sible @ lt production facty thet Hartman caled a halfway howe fr merulacug, Te act sera ace research tobe brought to matury and was capable of prodingdelverse prs ns 2ged n ystems level research n such areas as management and systems sotare and provided an excl tusinhig ground fr students ate rere of MAR was ts afiaton wih an NSF evaluat vio was ppt flo he pees De ny ‘vers Cooperative Research Center Dr Ann Meza nas MARS rial NSF erator. NSF concted repr ads cl pe 32 VORCPs it sponsored and made iformationavalabe about survey resuts, oes repr of what marks and store A neak served evaluate freon to MAR asa objective stue of feedback. Ate er fist evaiton, tr earl Marczak recommended tata project tem be formed to concct ongoing progress as bolts MAR sponsored, The evahato’s fincings also served as NSP means of determining how wel eath of he faded Cerres was performing. Acente was judged success after ve years it coud eit tht NSF funds NS also eated ach centr in terms of how muchindustry moneys poets gereraed, hom much ational money te cenvegeneraedin ‘esearch projects, the rumber of patents granted, rods produced andthe salstcion facut and sty patches ‘ter two years of operation, MAR had del wth many of the problems tha so frequently plague cotabrative research and development efforts among organizations. hada well defined purpose that was strongly supported by is members twas wel structured and had a good balance of resources and needs among its membership, Fema and informal cor: mization neterks were established i had ston leadership. Members of NA respect Haran rhs tetnoogcal xpertse and she. asa network, Hartman had strong sense of MAR’ mission. Ara iscussion with in, one gt the ‘sense that there was not an obstacle he would nat overcome. Hs vison continued to inspire commitment among the MER ‘membership. As one member putt, “You end up wanting to see what you can do forthe cause" Not only id MAR have the comment of ful ime leader an strong feedback fom #s NSF evaluat, iinvoved serven ‘research, Atbough the research was bas, twas chosen bythe users themsehes to benef al members ofthe conortum the research had been apple, would hve been more ful for members to fd prcects yen information that lo them oud use. The imoleetof muti uiverites futher proved the tle o top researchers n ierse areas of techno ‘al exerts. Finaly, NSF was furishing a large proportion of the funding for he frst ve years as wells eau evauation, a 2-4 CRITIQUE OF PLANNED CHANGE Despite their continued refinement, the models and practice of planned change are sil ina formative stage of devel- ‘opment, and there is considerable room for improvement, Critics of OD have pointed out several problems with the ay planned change has been conceptualized and practiced. 2a CONCEPTUALIZATION OF PLANNED CHANGE = ee Planned change has typically been characterized as involving a series of activities fr carying out effective Although current models outline a general st of steps tobe followed, considerably more information is needed to guide how those steps should be performed in specific situations. In an extensive review and critique of planned~~ bad Part! Overview a organization develooment ia Raed i enema nn : yee eb > individual change is lacking. Overall, ender they ate ah ta rae inl cn a tt i en etre ae Pe ome ne eid & fers 10 to 22 on OD interventions review causal mechanisms and contingencies. ‘chat is curently known about change features, outcomes cass Li et oko aout how the tage of Arend re we curent eg! a pases tat areinedel oe ee Loe ae ahowed how change activites ca Spend sith cet sem organize, and whether he en eating Considerably more ot neds tobe expended rain thegeecl toga Planned change That woul hy srt tofatuatona condtons Sach contingency change theory Pras and Roberton a | (tne organizational tures hat can causal mechanism by which thse outcomes planned change differ across situations. Mos rmost change efforts. However the previous set eee tse magne fea he © change is being conducted in a domestic ora identifying situational factors that may require m0 la tach ary ofplaned change models ch geared inking is greatly needed in planned change. ae anhugh ts vw may be comforting, erosy mean Tey point ot that planned hangs Bas os hao qaiy fen involving shin oa, dcontmoous actives, surpesing event and unexpected conn fon of changes For example exces fe iat changes without plans that clarify their strategies and goals UAs change unfold, new stakeholders may emerge and demand modifications reflecting previously unknown or ‘unvoiced needs, Those emergent conditions make planned change afar more disorderly and dynamic process than is customarily portrayed, and conceptions need to captre that reality ‘Tot duu ene! change peal sera ining, ie and en th proces. hits have argued tat planned change models that advocate evaluation and insittionalization processes reinforce the belief that the organization will fee into some form of equilibrium following change." Inthe face of increasing globalization and technological chang, its unlikely that change will ever be over. Executives, managers and organization members must be prepared for constant change ina varity of organizational features that are not obvious in most model of planned change Finally, the relationship between planned change and organizational performance and effectiveness is not well understood. OD traditionally has had problems assessing whether interventions are producing observed reslts. ‘The complesity ofthe change situation, the lack of sophisticated analyses, andthe long time periods for producing results have contributed to weak evaluation of OD efforts. Managers have often accounted for OD efforts with post hhc testimonial, reports of possible future benefits and calls to support OD as the right thing to do In the absence of rigorous assessment and measurement, itis dificult to make resource allocation decisions about change programmes | and to know which interventions are most elective in certain situations, Planned chang, and indeed most organizational research is criticized because of its narrow servitude toward ‘management interests.” Staw argues that planned change does not even service management interests wel, since it is usually aimed at problems with a short tem focus rather than the exploration of possible future organizational forms. Ifthisis accepted, the field of planned change is positioned toward the adjustment of the status quo whenever ‘tmoves out of alignment and isnot aimed at transporting systems toward a new, improved reality. | 2 PRACTICE OF PLANNED CHANGE | rites have suggested several problems with the way planned change is carried ou." Their concerns are not with the planned change model itself but with how change takes place and with the qualifications and activities of OD ang ice and with the qualifications and activities 4 bowing number of OD practitioners have acquired skis inspec technique, suchas team building total quality management, Al large group interventions, or gun sharing, and have chosen to specialize in that method(Chapter 2 The nature of planned change 9 [Although such specialization may be necessary it can ead toa certain myopia, given the complex array of techniques that define OD. Some OD practitioners favour particular techniques and ignore other strategies that might be more appropriate, tending to interpret organizational problems a requiring the favoured technique. Thus, for example itis not unusttal to see consultants pushing such methods as diversity training, reengineering, and organization learning ‘or sel managing work teams as solutions to most organizational problems. fective change depends on a careful diagnosis of how the organization is functioning, Di nderying causes of organizational problems, suchas poor product quality and employe imines the postive opportunities that need to be promoted, It requires both time and money, and some organizations 1 problem isand nosis identifies the satisfaction, or deter are not willing to make the necessary investment. Rather, they rely on preconceptions about sh hire constants with sills appropriate to solve that problem. Managers may think. for example, that work design isthe caused by other factors such as poor reward practices, however, and job enr diagnosis can hep to avoid such mistakes, In situations requiring complex organizational changes, planned change ia long term process involving consider- able innovation and learning onsite It requires a good deal of time and commitment anda willingness to modify and coblem, so they hire an expert in job enrichment to implement a change programme, The problem may be nent would be inappropriate. Careful refine changes, s the circumstances require. Some organizations demand more rapid solutions to their problems and seek quick fixes from experts. Unfortunatly, some OD consultants are more than willing to provide quick solutions. “They sell pre-packaged programmes fr organizations to adopt. Those programmes appeal to managers because they typically include an explicit recipe to be followed, standard training materials, and clear time an cost boundaries. “The quick fixes have trouble gaining wide organizational support and commitment, however, and seldom produce the postive results that have been advertised ‘Other organizations have not recognized the systemic nature of change. Too often they believe that intervention into one aspect or subpart ofthe organization willbe sufficient i ameliorate the problems, and they are unprepared for the other changes that may be necessary to support a particular intervention. For example, at Verizon, the positive benefits ofan employee involvement progeamime did not begin to appear until after the organization redesigned its reward system to support the cross functional collaboration necessary to solve highly complex problems. Changing ny one part or feature of an organization often requires adjustments in the other pars to maintain an appropriate alignment Thus, although quick fixes and change programmes that focus on only one part or aspect ofthe organiza tion may resolve some specific problems, they generally donot lad to complex organizational change or increase ‘members capability to carry out change. Summary “Theorie of planned change describe the actives necessary to modify strategies structures and processes to increase an onaniaton effectiveness. Lewin change mode! the ation research modeh the post model andthe dialogs Spproach offer different views of the phases through which planned change occurs in organizations. Lewirs change trodel views planned change asa three-step process of unfreeing, moving and refrezing, It provides gener description ofthe process of planned change. The action research model fcuses on planned change 32 cyclical process involving joint activites between organization members and OD practioner. It involves maltile ss that overlap and interact in practic: problem identification, consultation with a Behavioural science expert dat fathering and preliminary diagnosis, feedback to ke client or group joint diagnosis of the problem, oi! ated Fanning followed by action, then data gathering after ation, The action research model places hen emphasis th data gathering and diagnosis prior to action planning and implementation and on assessmen) of rss afier aoa aiken. In addition, change strategies often are modified based on continued dagnoss and termination of ther areas of the firm. The positive model is oriented to what the ‘one OD programme may lead to further work in o!T 40 Part | Overview o organization development ‘organization is doing right. It seeks to build on positive opportunities that can lead to extraordinary performance, ‘The dialogical approach to OD departs from the planned change consensus of the other three models and ig adherents deny that change can be determined toward specific ends in such a precise and deliberate manner. Planned change theories can be integrated into a general model. Four sets of activities (entering and contracting, ‘diagnosing, planning and implementing and evaluating and institutionalizing) can be used to describe how change is accomplished in organizations. These four sets of activities also describe the general structure of the chapters in this book. The general model has broad applicability to planned change. It identifies the steps an organization typ cally moves through to implement change and specifies the OD activities needed to effect change. Although the planned change models describe general stages of how the OD process unfold, there are different types of change depending on the situation. Planned change efforts can vary in terms of the magnitude of the change, the degree to ‘which the client system is organized, and whether the setting is domestic or international. When situations differ on those dimensions, planned change can vary greally. Critics of OD have pointed out several problems with the way planned change has been conceptualized and practiced, and specific areas where planned change can be improved. é » ong ee aa ao fo cay in