TOPIC 1

CHANGE AND DEVELOPMENT

IN AN ORGANISATION

BMOD 5103
ORGANISATIONAL DEVELOPMENT & CHANGE

Dr. NOR FAIRUZ SYAZANA NOR FAUZI

+60182596055
norfairuzsyazana@yahoo.com
The Organisational development and change aim for the
Improvement in the performance of the organization,
Improvement in the ability of the organisation to adapt to its
environment, and Improvement in inter-personal and inter-group
behaviour to secure team work, while Change in organisation
has been define as modification or transformation in the
organisation system to make it operate more effectively.

So what is the big issues in this organizational development and

change? Questions like what, how, when, and where supposed
the OD and changes should be could produce a resistance for
the successful of the OD and changes objectives. Thus, it
should be provide with a clear direction in order to make it
successful.
LEARNING OUTCOMES
By the end of this topic, you should be able to:

• Describe the concept of change and development in an

organization;
• Discuss the causes of organizational change;
• Explain the importance of organizational change and
development;
• Describe the models of organizational change.
 Concept of Change and Development:
Definitions of organization development
Contributors Definitions
Warner Organization development (OD) is a planned change process in an
Burke organization’s culture through the utilization of behavioral science
technology, research, and theory.
Wendell OD is a long-range effort to improve an organization’s problem-solving
French capabilities and its ability to cope with changes in its external
environment with the help of external or internal behavioral-scientist
consultants, or change agents, as they are sometimes called.
Richard OD is an effort (1) planned, (2) organization-wide, and (3) managed from
Beckhard the top, to (4) increase organization effectiveness and health through (5)
planned interventions in the organization’s “processes,” using behavioral
science knowledge.
Michael Beer OD is a system wide process of data collection, diagnosis, action
planning, intervention, and evaluation aimed at (1) enhancing
congruence among organizational structure, process, strategy, people,
and culture; (2) developing new and creative organizational solutions;
and (3) developing the organization’s self-renewing capacity. It occurs
through the collaboration of organizational members working with a
change agent using behavioral science theory, research, and technology.
 Concept of Change and Development:
The difference between organization development, change
management, and organizational change.
What is OD? What change What is organizational
management? change?
• Applies to changes in the strategy, • Focuses more narrowly • Organizational change
structure, and/or processes of an on cost, quality, and is a broader concept
entire system, such as an schedule. than OD.
organization, a department or work
group, or individual role or job. • Does not necessarily • Can be applied to any
require the transfer of kind of change,
• Concern with the transfer of skills. including technical and
knowledge and skill so that the managerial
system can manage change in the • Change management innovations,
future. may not involve OD. organization decline,
or the evolution of a
• To enhance organizational system over time.
effectiveness in term of adaptability,
high financial and technical
performance, satisfied and loyal
customers.

• OD involves change management.

Causes of Change
• Globalisation: changing the markets and business environments in which
organizations operate as well as the way they function. New governments, new
leadership, and new markets are emerging and creating a new global economy
with both opportunities and threats. For example, the EU created a unified
economic block that changes the face of global markets; China is emerging as a
global economic influence.

• Information technology (IT): changing the face of traditional business model by

changing how business is operated or function, how knowledge is utilised, and
how the cost of running a business is calculated. For example, IT is at the heart
of emerging e-commerce strategies. IT is changing how knowledge is utilised.

• Managerial innovation: has reacted to the globalization and IT trends and has
speeded up their impact on organizations. New organizational forms, such as
strategic alliances, networks, and virtual corporations, provide organizations with
new methods about how to produce goods and deliver services. For example,
the strategic alliance has emerged as one of the crucial tools in strategy
implementation. No single organization can control the environmental and
market uncertainty it faces.
 Importance of Change and Development
Helping organizations:
• assess themselves and their environments and revitalize and rebuild
their strategies, structures, and processes.
• members go beyond surface changes to transform the underlying
assumptions and values governing their behaviors.
• survive and prosper in a highly complex and changing world.
• streamlined and agile, more responsive to external demands, and
more ecologically sustainable.
• taking the initiative in innovating and managing change, rather than
simply responding to what has already happened.
• involve employees in key decisions and paying for performance rather
than for time.
• treating each human being as a complex person.
• increase the level of trust, enthusiasm, self and group responsibility
among members.
Models of Organizational Change
Theories of Planned Change
The following frameworks have received
widespread attention in OD and serve as the
primary foundation for a model of organizational
change (planned change).
• Lewin’s Change Model (3 Steps Model)

• Action Research Model (8 Steps Model)

 Models of Organizational Change
Lewin’s Change Model Action Research Model
(3 Steps Model) (8 Steps Model)

Focus on reducing the

Unfreezing
forces maintaining the
present level of behavior.

Focus on moving the

behavior (old) to a new
Movement level (new behavior).
Through changes in
organizational structures
and processes.

Focus on stabilizing the

Refreezing new state (behavior) of
equilibrium. Done by
giving rewards
 Action Research Model (8 Steps Model)
• Problem Identification. Top management senses that the organization has one or more problems that might
be solved with the assistance of an OD practitioner.

• Consultation with a Behavioral Science Expert. The practitioner has his or her own normative, frame of
reference and must be conscious of those assumptions and values. Sharing them with the client from the
beginning and establishes an open and collaborative atmosphere.

• Data Gathering and Preliminary Diagnosis. It involves gathering information and analyzing it to define the
problems. The four methods of gathering data are interviews, observation, questionnaires, and performance
data.

• Feedback to a Key Client or Group. The feedback helps determine the strengths and weaknesses of the
organization or unit under study.

• Joint Diagnosis of the Problem. Members discuss the feedback and explore with the OD practitioner whether
they want to work on identified problems.

• Joint Action Planning. The action to be taken depends on the diagnosis of the problem; the organisation
culture and environment; and the time and expense of the intervention.

• Action. The actual change from one organizational state to another. It may include reorganizing structures and
work designs, installing new methods and procedures, and reinforcing new behaviors.

• Data Gathering After Action. Because action research is a cyclical process, data must also be gathered after
the action has been taken to measure and determine the effects of the action and to feed the results back to the
Five Stage Model for OD Process
 Q&A

Thank you