First-order (Transactional) change:

Some features of the organization change but the fundamental

nature of the organization remains the same.

Second-order (Transformational) change:

The nature of the organization is fundamentally and substantially
altered .

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Systems Theory

• Characteristics of open systems:

1) Are input-throughout-output mechanisms.
2) Have purposes and goals.
3) Information is important.
4) Systems achieve a steady state or equilibrium point and
seek to maintain it.
5) Differentiation
6) Equifinality

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Participation in change programs is extended throughout the
organization.

To empower is to give someone power.

Participation is an effective form of empowerment.

Examples: work groups, quality circles, team building, quality

of work life programs

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Open-book Management
A possible way to run a business.

Empowerment to the extreme, usually with excellent financial

results.

Encourages every employee of a company to think like an owner of

the business, and then start to act like one.

Teams are important because:

1. Many tasks are so complex that they can not be performed by
individuals.
2. Teams create synergy, i.e., the sum of the efforts of team
members is far greater than the sum of the individual efforts of
people working alone.
3. Teams satisfy people‟s need for social interaction, status,
recognition, and respect - nurture human nature.

Examples: Team building, quality circles

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Especially created organizational structures for planning and
guiding change programs.

Purpose: To deal with “ill-structured” problems the formal

organization is unable to resolve.

E.g., quality of work life programs use parallel structures

composed of the union leaders, managers and employees.

The action-research model – a data-based, problem-solving

method that replicates the steps involved in the scientific method
of inquiry underlies most change activities.

Involves three processes:

Data Collection
Feedback of the data to the client system members,
Action planning based on the data.

Especially well suited for planned change programs.

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Applying behavioral science to organization.

Pure/Basic Science Applied Science

Generating knowledge Knowledge to
solve practical problems

The practitioner works; first diagnosing the situation, then selecting

and implementing treatments based on the diagnosis; and finally
evaluating the effects of the treatments.

 Intrapersonal Skills or “Self-Management” Competence

 Interpersonal Skills

 General Consultation Skills

 Organization Change Theory

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Three basic components of change programs:

Diagnosis Continuous collection of data about total system, its

subunits, its processes, and its culture

Action All activities and interventions designed to improve

the organization‟s functioning

Program All activities designed to ensure success of the

management program

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 Diagnostic targets Information sought Methods of Diagnosis

The total organization Q) What is organization’s culture? • Examination of organizational records –

Q) Are organizational goals and strategy rules, regulations, policies
understood and accepted? • Questionnaire survey
Q) What is organization’s performance? • Interviews (both group & individual)

Large and complex Q) What are the unique demands on this • Questionnaire survey
subsystems subsystem? • Interviews
Q) Are organization structures and processes • Observations
related to unique demands? • Organization records
Q) What are the major problems confronting this
subsystem?
Small and simple Q) What are major problems of the team? • Individual interviews
subsystem Q) How can team effectiveness be improved? • group meeting to review the interview data
Q) Do individuals know how their jobs relate to • Questionnaires
organizational goals? • Observation of staff meetings and other day-
to-day operations

Intergroup subsystems Q) How does each subsystem see the other?
Q) What problems do the two groups have in
working together?
Q) How can they collaborate to improve
performance of both groups?
• Interviews of each subsystem followed by
‘sharing the data meeting’
• Flowcharting critical processes
• Meetings between both groups

Individuals Q) Do people perform according to organization’s • Interviews

expectations? • Information from diagnostic meetings
Q) Do they need particular knowledge or skills? • Data available with HR department
Q) What career development opportunities do they
have/ want/ need?

Roles Q) Is the role defined adequately? • Role analysis

Q) What is the ‘fit’ between person and role? • Observations
Q) Is this the right person for this role? • Interviews

Diagnosing Organizational Processes

Organizational Processes Information Methods of
sought Diagnosis
Communication Q) Is communication open or closed? • Observations – in meetings
patterns, styles & flows Q) Is communication directed upward, downward, • Questionnaires
laterally? • Interviews and discussion with group
Q) Are communications filtered? ….. Why? How? members

Goal setting Q) Do people set goals? • Questionnaires

Q) Who participates? • Interviews
Q) Do they possess necessary skills for effective • Observations
goal setting?

Decision making, Q) Who makes decisions? • Observations of problem-solving

problem solving & action Q) Are they effective? meetings
planning Q) Are additional decision making skills needed? • Analysis of videotaped sessions
• Organizational records
Conflict resolution and Q) Where does conflict exist? • Interviews
management Q) Who are involved parties? • Flowcharting critical processes
Q) How is it being managed? • Meetings between both groups

Superior-subordinate Q) What are the prevailing leadership styles? • Questionnaires

relations Q) What problems arise between superiors and • Interviews
subordinates?

Strategic management & Q) Who is responsible for ‘looking ahead’ and
long range planning making long term decisions?
Q) Do they have adequate tools and support?
Q) Have the recent long range decisions been
effective?
• Interviews of key policy makers
• Group discussions
• Examination of historical records

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Action
Interventions are the actions taken to produce desired changes.
Four conditions that give rise to the need for OD interventions:

1. The organization has a problem

(corrective action – to fix it)
2. Organization sees an unrealized opportunity
(enabling action – to seize the opportunity)
3. Features of organization are out of alignment
(alignment action – to get things back „in sync‟)
4. Yesterday‟s vision is no longer good enough
(action for new vision – actions to build necessary structures,
processes and culture to make new vision a reality)

Program Management
Cummings and Worley identified 5 sets of activities required for effective change
management:

Motivating Change

Creating a Vision

Effective Change
Developing Political Support
Management

Managing the Transition

Sustaining Momentum

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Kotter’s 8-stage process for managing organizational change:

1) Establishing a sense of urgency

2) Creating a guiding coalition

3) Developing a vision and strategy

4) Communicating the change vision

5) Empowering a broad base of people to take action

6) Generating short term wins

7) Consolidating gains and producing even more change

8) Anchoring (institutionalizing) the new approaches into the culture

HBR, Mar-Apr 1995, p.61

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