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Organization Development Session 1: Methodology
Organization Development Session 1: Methodology
Organization Development Session 1: Methodology
METHODOLOGY: LECTURES CASE STUDY ASSIGNMENTS & PRESENTATIONS EVALUATION Midterm -25 Assignments /case study-25 Quiz/Exercises -10 Endterm-40 COURSE OUTLINE Introduction to OD- Overview Action research model OD Interventions, OD Process Managing OD process and approach Team Interventions, Learning organizations and organizational transformation Future of OD
Change Management
The process of renewing the organizations direction, structure and capabilities to serve the ever-changing needs of the market place, customers and employees. http://www.youtube.com/watch?v=0Cd7 Bsp3dDo&feature=related
Economic factors
Technological factors
Information technology / the internet New production processes Computerization of processes Changes in transport technology
Examples
L& T - Restructuring Hindustan Unilever from Hindustan Lever Ltd. Hutch- Vodafone Pepsi- Environmental issues Satyam Infosys-leadership changes
A dramatic crisis
Leadership turnover
Stage of life-cycle Age of the organization Size of organization Strength of current culture
A long-term perspective
Assumptions:
Change involves not only learning something new but
Varieties of change
Smooth incremental change (transactional)
Evolves slowly in a systematic and predictable way. Change happens at a constant rate. Change in the means and ways by which organizations achieve their goals.
Varieties of change
Discontinuous
Rate of change
Smooth incremental
Bumpy incremental
Time
Leadership
Infrastructure
Local management
Management, employees and the masses Specific sites
Diagnostics
Comparison points
Training
Outcome goals
Implementation of changes
Resistance to change
Individual resistance
Habit Security Economic factors Fear of the unknown Selective information processing Structural inertia Limited focus of change Group inertia Threat to expertise Threat to established power relationships Threat to established resource allocations
Organizational resistance
Participation
Facilitation and support Negotiation
Resistance to change
Sources of resistance Coping mechanisms
Perceived peripherality of change Participation in diagnosis Perception of imposition Indifference of top management Fear of large-scale disturbance Fear of inadequate resources Fear of obsolescence Fear of loss of power Fear of overload
Participation and involvement Active support from the top Phasing of change Provision of resources Development of skills Role definition and reorientation Role clarity and definition
Dimensions of change
Leadership Focus Process Reward system
Motivate through financial incentives
Use OD
consultants Consultants analyze problems and shape solutions Consultants support management in shaping their own solutions Consultants are expert resources who empower employees
Theory E
Theory O
Build up corporate culture: employee behavior & attitudes Focus simultaneou sly on the hard (structures and systems) and the soft (corporate culture)
Motivate through commitment use pay as fair exchange Use incentives to reinforce change but not to drive it
Theory E +O
The Consultant
Implanting function Transcending function Generating alternatives Process-facilitating function Shock-absorbing function Resource-sharing function Resource-building function Self-liquidating function
Roles (contd.)
The Counterpart
Collaborating with consultant Implementing policies Stabilizing the change
Assess/align the capabilities Of change agents : Challenge personal Assumptions Attitudes styles
2. Monitoring
3. Action
Prerequisite
Ensuring senior management commitment to the proposed changes which needs to be visible to all participants throughout the organization Producing a written statement about the future direction of the organization that makes clear its new objectives, values and policies. Creating a shared awareness of conditions to produce a common perception that change must be implemented. Assembling a body of key managers and other important opinion-formers to gain their commitment to the change process so that this may be disseminated more widely. Generating an acceptance that this type of change will require a long time to implement fully even though there may be short-term, dramatic changes as part of the overall process of transformation. Recognizing that resistance to change is part of the normal process of adaptation so that managers can be educated to be aware of this and equipped to manage this reaction. Educating participants about the need for change and training them with the necessary competence to be effective, to overcome resistance and gain commitment. Persevering with the change process and avoiding blame where an attempt to implement a facet of this process fails. Such negative action will generate resistance and reduce necessary risk-taking behavior.
5 6 7 8
9 10
Facilitating the change process with necessary resources. Maintaining open communication about progress, mistakes and subsequent learning.
Enabling conditions:
Employees willingly modify their skills, behaviors and performance to what is required Employees enhance their sills and experience as a result of the change
Formation
Growth
Collectivity stage:
Informal communication High commitment
F & C stage:
Formalization of rules Stable structure Emphasis on efficiency
E of S stage:
More complex str decentralizn Diversified markets
Decline stage:
High employee turnover
Increased conflict centralization