ORGANISATION DEVELOPMENT

PLANNED CHANGE

Change means the new state of things is different from the old state of things Change is everywhere Change is the only constant

The field of OD was established to help leaders address and embrace change External forces like regulators, competitors, market forces,customers, technology Internal forces like increasingly diverse workforce

Organization development is a systematic process for applying behavioral science principles and practices in organizations to increase individual and organizational effectiveness

Consulting method: help organisations learn to solve their own problems Self renewal, learning how to learn, organisational learning

Focus on organisational culture, process, structure Org culture is defined as the values, assumptions, beliefs held by organisation members that shape how they perceive think & act Process-how things get done

2 major goals of OD

Improve the functioning of individuals, teams, and Teach organization members how to continuously improve their functioning

Organization Development is an effort (1) planned, (2) organization wide, and (3) managed from the top, to(4) increase organization effectiveness and health through (5) planned interventions in the organizations processes using behavioral-science knowledge. (Beckhard,1969)

CHARACTERISTICS

Focus on culture & processes Collaboration between leaders and members in managing culture & processes Teams are important for accomplishing tasks Focus on human and social side of organisation Participation & involvement

Total system change & views organization as social system To make clients able to solve problems on its own Win-win solution

ACTION RESEARCH MODEL

Preliminary diagnosis Data gathering from client group Data feedback to client Exploration of data by client Action plan by client Action taken by client Evaluation & assessment of results of action-with an od practitioner acting as facilitator all throughout

CASE 1
Lack of cooperation between subunits, increasing complaints from customers, sagging morale, and rapidly increasing costs induced the president of a medium-sized company to confer with an OD consultant about ways to improve the situation. The two talked at length, and it became apparent to the consultant that the executive, while having some apprehensions, was generally agreeable to examining the dynamics of the situation, including decisionmaking processes and his own leadership behavior.

He and the consultant agreed that certain organization development efforts might be worthwhile. They decided that a three-day workshop away from the usual routine, with the executive and his entire work team, might be an appropriate way to start. The president then sounded out several of his subordinates about the possibility of the workshop, and reactions ranged from enthusiasm to some uneasiness. The team agreed to have the consultant meet with the executive and all his immediate subordinates to explain the typical format of such a meeting and to discuss the probable content of a

workshop. At the end of this meeting, the group decided to give it a try. A few days before the off-site session, the consultant spent an hour interviewing each member of the team. In essence he asked them, What things are going well? and what things are getting in the way of this group and this organization being as successful as you would like it to be? The purpose of these interviews was to obtain the data around which to build the design of the workshop.

At the beginning of the workshop, the consultant first reported back to the group the general themes in the interviews, which he had grouped under these problem headings: The Boss, Meetings, Administrative Services, Customer Relations, Relations Between Departments, and Long-Range Goals. The group then ranked these problem themes in terms of importance and immediacy and chose the problem areas to work on.

With the consultant acting more as a coach than as a moderator, the group examined both the underlying dynamics of each problem area and optional solutions to the problems. In addition to making suggestions for breaking into subgroups to tackle certain agenda items, and in addition to providing several 10-minute lectures on such topics as decision making and team effectiveness, the consultant upon request, intervened from time to time comment on the way the group was

working together and to help make explicit the norms under which the group seemed to be operating. During the three days, the participants had time for recreation activities , such as jogging, basketball, swimming, and billiards. On two of three days, the group worked until 6:00 or 6:30 p.m. and then adjourned for a relaxed dinner and socializing. By and large, the three days, although

involving intense work, were fun for the participants. Some misunderstandings and tensions were worked through in the group setting; others were worked out informally during breaks from the work agenda. It seemed to the consultant that the group experienced a sense of enhanced camaraderie and team spirit. The last morning was spent developing next action steps for a dozen or so items discussed under the problem headings. One decision was to spend half a day

With the consultant three months in the future to review progress toward problem solutions. During a subsequent meeting between the company president and the consultant, the executive reported that group morale was up substantially and customer complaints and costs were beginning to go down, but that we still have a long way to go, including making our staff meetings more effective.

The two then agreed to have the consultant sit in on two or three staff meetings before the three-month review session. The three-month review session with the consultant showed significant progress had been made on some action steps. However, improvement seemed to be bogged down, particularly in areas requiring the president to delegate certain functions to key subordinates. This matter was extensively worked on by the group, and the president began to see where and how he could loose the reins,

thus freeing himself for more long-range planning and more contacts with key customers. During the following years, the top management team institutionalized an annual three-day problem-solving workshop involving the consultant. In addition, all the top managers used the consultants services in conducting comparable workshops with their own subordinates Over this period, the consultant and the human resource director, whose hiring

was a direct outgrowth of one of the sessions, began to work as a consulting team to the organization, with the human resources director gradually assuming more and more of the role of a change agent. In addition to having planning and control responsibilities for employment and compensation and other traditional personnel functions, the new human resources director coordinated a management development program designed to supplement the companys problem-solving workshops.

For example, managers could request to attend specialized seminars in such areas as budgeting and finance, group dynamics, and long-range planning. The human resources director thus assumed an expanded role in which he served as an internal OD consultant to the operating divisions, as a linking pin with the external (original) consultant, and as a coordinator of the traditional human resources functions.

Q What are the problems faced by the business firm in the given case? Q Explain the various stages of action research model with the help of the given case? Q With the help of the case study highlight the characteristics of OD?

OD Values

Humanistic Optimistic Democratic

Humanistic values

Proclaim the importance of individual Respect the whole person Treat people with respect & dignity Assume that everyone has intrinsic worth View all people as having the potential for growth & development

Optimistic values

Posit people are basically good Progress is possible & desirable in human affairs Rationality, reason and goodwill are tools for making progress

Democratic values

Sanctity of individual The right of people to be free from arbitrary misuse of power Importance of fair and equitable treatment for all Need for justice through the rule of law

LEWINS FORCE FIELD THEORY OF CHANGE

Proposed 2 concepts What is occurring at any point in time is the result of a field of opposing force Driving force Restraining force

Driving force force

Restraining

Push organisations towards a new state of affairs Ex. Global, local competition, demographics, information technology

Maintain status quo Resistance to change

Lewins Force Field Analysis Model

Increase

driving forces that drive change Reduce restraining forces that resist change or do both
McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Force-field Model of Change

Desired state
Restraining forces

Status quo

Driving forces

Time
McGraw-Hill 2004 The McGraw-Hill Companies, Inc. All rights reserved.

3 stage process

Unfreezing the old behavior Moving to new level of behavior Freezing the behavior at new level

3STAGE PROCESS

Unfreezing need for change aware

Change installing new System,restructuring, Implementing new Performace appraisal

Refreezing repeating new learned Skills in training session,role Playing

Stage 1 UNFREEZING :Creating motivation & readiness to change through Disconfirmation or lack of confirmation Creation of guilt or anxiety Provision of psychological safety

CHANGING THROUGH COGNITIVE RESTRUCTURING Helping the client to see things, judge things, feel things, and react to things differently based on a new point of view Identifying with a new role model, mentor etc. Scanning the environment for new relevant information

REFREEZING : Helping the client to integrate the new point of view into the total personality and self-concept Significant relationships

Burke-Litwin Model of Organizational Change

Model of individual & organisational performance Developed by Warner Burke & George Litwin First order change some features of organisation change but the fundamental nature of organisation remains same Transaction, adaptive, incremental, evolutionary

Second order change Organisation is fundamentally & substantially altered transformational, revolutionary, radical, discontinous Second order change transformational change

Organisation climate Defined as peoples perceptions, attitudes about the organisation, friendly or unfriendly Structure, practices, system Relatively easy to change First order change

Organisation culture Deepseated assumptions, often unconscious values, beliefs that are enduring Mission, strategy, leadership

Difficult to change Second order change

Transactional leadership provide direction Motivate by clarifying goals Fair exchange between leaders & followers First order change

Transformational leadership Inspire followers to transcend selfinterest for the interest of organisation Capable of having profound & extraordinary effect on their followers Second order

First order

Changing structure Management practice Changing structure, management practices,systems change in work unit climate, which changes motivation & in turn, individual & organisational performance Transactional leadership

Second order

Mission& strategy Leadership style Tranformational leadership Permanent change in culture