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Copyright Barbara Senior, Organisational Change Lecturers Guide 2002
Introduction to OD
OD a process - behavioral science knowledge and practice to help organizational building the capacity to change and achieve greater effectiveness. OD differs with other Planned Change Planned change such as technological innovations (or) new product development
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It focused on the organisational ability to assess its current functioning and to achieve its goals.
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OD is oriented to improving the total systemthe organisation and its part in the context of the larger environment that affects them. Examples of OD 1.Team Building with top corporate management 2.Structural changes in organisation 3.Job enrichment in manufacturing organisation Study of OD 1.Effects of change 2.Methods of Organisational Changes 3.factors influencing OD success
Copyright Barbara Senior, Organisational Change Lecturers Guide 2002
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Characteristics of OD
1.OD applies-changes in the strategy, structure, and process of entire system. 2.OD is based -application of OB knowledge & practice, like leadership, group dynamics, work design etc 3.OD concerned with managing planned change like technology innovation 4.OD involves both the creation and subsequent reinforcement of change. 5.OD oriented to improving organisational effectiveness. Two aspects 1.effective organisation is able to solve its own problems. 2.effective organisation high performance, quality concern etc
Copyright Barbara Senior, Organisational Change Lecturers Guide 2002
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Relevance of OD
1.Globalisation :-Environments which organisation operates & function, like New governments, new-Leadership, new markets and new countries. 2.IT:- which redefined traditional business model by changing how work is preferred. 3.Managerisl Innovation:-combination of globalisation and IT trends impact on organisation such as strategic alliances, virtual corporations, networks,reengineering,..etc.
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Burkes Definition of OD
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OD is a planned process of change in an organizations culture through the utilization of behavioral science technology, research, and theory.
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Frenchs Definition of OD
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OD refers to a long-range effort to improve an organizations problem-solving capabilities and its ability to cope with changes in its external environment with the help of external or internal behavioral-scientist consultants.
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Beckhards Definition of OD
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OD 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.
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Beers Definition of OD
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OD is a system-wide process of data collection, diagnosis, action planning, intervention, and evaluation aimed at: (1) enhancing congruence between organizational structure, process, strategy, people, and culture; (2) developing new and creative organizational solutions; and (3) developing the organizations self-renewing capacity. It occurs through collaboration of organizational members working with a change agent using behavioral science theory, research, and technology.
Copyright Barbara Senior, Organisational Change Lecturers Guide 2002
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a systemwide application and transfer of behavioral science knowledge to the planned development, improvement, and reinforcement of the strategies, structures, and processes that lead to organization effectiveness.
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Current Practice
Normative Approaches
Strategic Change
1950 Today
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1990
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2000
Laboratory Training
1.Laboratary training :learn from their own interactions and evolving dynamics such as interpersonal relations, personal growth, leadership, and group dynamics. Advantages 1.Rich learning experience about group feed back 2.Process of group building had potential for learning transfer to back home situations
Copyright Barbara Senior, Organisational Change Lecturers Guide 2002
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3.Normative Background:The inputs from laboratory training and research method fallowed closely that human relations approach. 4.Quality-of-Work life:Employee involvement, TQM &Six-sigma, etc 5.Strategic Change:Improving the alignment among environment, strategy, Organisation design.
Copyright Barbara Senior, Organisational Change Lecturers Guide 2002
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Organisation Development - 1
Organization development (OD) is a long term effort, led and supported by top management, to improve an organizations visioning, empowerment, learning, and problem-solving processes, through an ongoing, collaborative management of the organization culture - with special emphasis on the culture of intact work teams and other team configurations - utilizing the consultant-facilitator role and the theory and technology of applied behavioural science, including action research.
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(French, W.L. and Bell, C.H, (1995). Organization Development: Behavioural Science Interventions for Organization Improvement, Fifth edition, Prentice-Hall, p.28.).
Copyright Barbara Senior, Organisational Change Lecturers Guide 2002
Organisation Development - 2
Organization development is an ongoing 16 process of change aimed at resolving issues within an organization through the effective diagnosis and management of the organizations culture. This development process uses behavioral and social science techniques and methodologies through a consultant facilitator and employs action-research as one of the main mechanism for instigating change in organizational groups.
(McCalman, J & Paton, R (1992). Change Management Guide to Effective Implementation, London, P.C.P. p 131).
It emphasises goals and processes with emphasis on processes It deals with change over medium and long-term It is about people and recognises their worth It involves the organisation as a whole as well as its parts It emphasises the concept of a change agent/facilitator
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It uses action research as a means of intervention It is participative, drawing on theory and practices of the behavioural sciences It subscribes to a humanistic philosophy of openness It is a process of facilitation at the individual, group and organisational level It has top-management support and involvement
Copyright Barbara Senior, Organisational Change Lecturers Guide 2002
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Learning Organisation - 1
More recently, the concept of a learning organisation has been blended in with OD. Central ideas of the LO:
A process approach to change in which everything, including existing goals and the goal setting processes, is subject to challenge. Change is continuous. Development of the organisation is treated as being central to its well-being.
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Learning Organisation - 2
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The volume of change in many organisations is massive The economic scene places demands on managers while they are reluctant to change from tried and tested methods The role of management is changing and new models are needed Change management takes time Some changes challenge basic assumptions, for example, the role of supervisory staff
Source: Mintzberg, H. (1973), The Nature of Managerial Work, Harper & Row.
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The need for control remains - the skill is remaining in control when so much change is going on. More comprehensive strategic pictures are needed which integrate different changes in the organisation and alleviate confusion. Organisation design and re-design are as important and necessary as product, process or system design and are the responsibility of management and people in organisations, not just specialists.
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Source: Mintzberg, H. (1973), The Nature of Managerial Work, Harper & Row.
Unfreezing
Shaking up Disconfirmation of old ways of doing things Questioning & challenging of established wisdom
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Moving
Making the actual changes to move to the new state of existence. Includes the development of new strategies, structures, systems & responsibilities and the shedding of old ones.
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Refreezing
Stabilizing, institutionalising the changes. Making sure the organisation doesn't go backwards to the old state. Reinforcement of the changes through symbols, such as changed logos, dress, building design, structures.
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Refreezing???
Re-freezing may not be appropriate in an era of continuous change, so maybe this stage involves something more like stabilising.
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An effective manager...: anticipates the need for change as opposed to reacting after the event to the emergency; diagnoses the nature of change that is required and carefully considers a number of alternatives that might improve organisational functioning, as opposed to taking the fastest way to escape the problem; and manages the change process over a period of time so that it is effective and accepted as opposed to lurching from one crisis to another.
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(Pugh, D. (1993). Understanding and managing change. In Maybey, C. and Mayon-White, B. (Eds.) Managing Change, Second edition. London, P.C.P.).
Action Research - 1
Action research is central to EACH STAGE of the OD process. It is a collaborative effort between the leaders and facilitators of any change and those who have to enact it. It involves data gathering, feedback of data to the client group, data discussion, action planning, and action. Therefore, action research is, as its name suggests, a combination of research and action.
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Action Research - 2
Action research involves collecting data relevant to the situation of interest, feeding back the results to those who must take action, collaboratively discussing the data to formulate an action plan, and finally, taking the necessary action.
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At stages 1a and 1b the issues, problems and opportunities are to be fully explored and the (generally) multiple perspectives of people in the change situation should be understood. Diagnosing the current situation should not be rushed through without sufficient consideration of the underlying issues as well as the presenting ones.
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Once the vision for change has taken shape (stage 1b), commitment to it has to be gained. Consequently, sharing the vision with all concerned is important, which might mean a review, again, of the vision for change. It is vital to listen to the organisation - people's responses in words and deeds to the vision proposal.
Copyright Barbara Senior, Organisational Change Lecturers Guide 2002
Stage 3 is complex and requires much consultation and gaining the participation of those who must enact the change. Possible resistance to change must be addressed.
Principle 1:
Organisations are organisms
adequacy of planning adequacy of persuasion adequacy of digestion
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Principle 2: Organisations are occupational and political systems account taken of occupational impact account taken of political impact
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Principle 3: All members of an organisation operate simultaneously in all three systems - the rational, the occupational, the political
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The role of the change agent is important in the whole of stage 3. Debates occur as to whether the 38 use of an internal or external change agent is preferable. Buchanan and Boddy (1992) have written about CHANGE AGENTS competencies. Sensitive, clear, flexible goal setting. Team building, networking, handling ambiguity. Communicating, dealing with people and meetings,enthusing, motivating. Selling, negotiating. Dealing with the politics, influencing, the broader view.
CHANGE AGENTS help the 39 organisation to: Define the problem. Examine and diagnose the problem. Come up with alternative solutions. Direct implementation of solutions. Crystallise the learning.
Responsibility charting helps in the assessment of the alternative behaviours for those involved in the series of actions for change. It involves identifying and assigning the specific people involved in each action or decision.
who is responsible (one person). who are the approval givers (not too many). who are the supporters, resource providers (vital). who should be be informed.
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A Responsibility Chart
R= responsible A = approval giver, can veto S = must support; provide resources I = to be informed Actions Actors
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A B C D E F G 1 2 3 4 5 6 R A A I S R A I S S I I R A A R R A A R S S A I I S I S I
Top management. Groups who are management-ready, i.e. ready for change.
Includes hurting systems. Those in pain.
New teams or systems. Change agents. Staff members who will facilitate subsequent change. Temporary change implementation project teams.
Stages 4 (and 5) of the OD process Implementing and assessing and reinforcing the change can make use of a range of techniques, some of them identified on the Pugh OD matrix.
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Survey feedback. Employee opinion 48 survey. Organisational mirroring. Focal group gets feedback from other groups about how it is perceived and regarded. Reciprocal. Fishbowl technique. Inter-group confrontation. Each group lists its complaints about the other as well as what it thinks the other group has as a complaint against itself.
Copyright Barbara Senior, Organisational Change Lecturers Guide 2002
Role negotiation. Focus on each others behaviours and negotiate an increase, decrease or status quo. Process consultation. The consultant engages in feedback,coaching, counselling, and helps individuals and groups finds their own solutions.
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Team Building - focus on the team 50 processes, culture and responsibilities. Life and career planning - Life line drawing, connecting past, present & future. Write your own obituary. Plus various other methods for designing structures and contexts.
Go for a series of SHORT-TERM WINS, visible outcomes (short term goals) that: show that sacrifices are worthwhile reward change agents help fine tune the visions and strategies counterbalance the cynics keep bosses happy build momentum
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assess
Set hard objectives and quantifiable performance measures
Survey or cultural audit. Interviews with individuals or focus groups. Examination of turnover and absenteeism rates. Analysis (through observation or questionnaire) of group performance. Picturing the organisation - ask staff to portray the org in pictures, not words.
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Design appraisal, career and reward systems which help reinforce desired behaviours.
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Orientate staff training and development to the new vision and the new situation.
Hold people accountable for maintaining the vision and continuing to implement the change.
Iteration
At all these stages, as Figure 8.2 on p. 312 shows, the requirement of iteration back to previous stages and then forwards again with modified plans and actions is crucial to the way the OD process operates.
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An Assessment of the OD Model for Change (1) Three of the criticisms that have been aimed at this model for change are:
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1. OD does not always face up to the harsh realities of change. (Rather than unfreezing, people need to be shaken up.) 2. OD is limited when change situations are constrained. (Diagnosis and vision already set). 3.OD does not always fit with the policies and practices of bureaucracy, political systems
An Assessment of the OD Model for Change (2) A fourth criticism of the soft systems model 57 for change is
4. The claim that OD cannot be applied in the same way across all cultures.
Supposedly it is not suited to high Power Distance, high Uncertainty Avoidance, and high Masculinity cultures.
Given these criticisms, care has to be taken that the OD process is modified to suit different circumstances. It must also be recognised that, in times of crisis, managers may have to act very fast and...
it may not be possible to put into practice the full consultation and participation that is built into the OD process.
Copyright Barbara Senior, Organisational Change Lecturers Guide 2002
History
1911 Taylors one best way: repetitive tasks 1922 Webers bureaucracy: hierarchy, division of labor, impersonal rules, rigid procedures Follets participative leadership 1924 Hawthorne Studies 1940s Lewins Group Dynamics
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T-Group/Laboratory Training Group (1940s, Kurt Lewin) Survey Feedback Action Research Tavistock Socioclinical Approaches (1920s, Eric Trist)/QWL (QC)
4 management systems, called Systems 1-4T:
Exploitive Authoritative Benevolent Authoritative Consultative Participant Group
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Individuals: Listen, support, challenge, encourage, allow failure, remove barriers, autonomy, responsibility, high standards, reward Groups: Let teams flourish, leaders should invest, team leadership guides and develops; interactions toward a goal Organizations: people make the workplace; encourage cooperation vs. competition
Applications of OD
Individual Level
Job Redesign (JDS) Organizational Behavior Management (OBM)
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Group Level
Group process interventions Leadership training Team Development
Organizational Level
Intergroup intervention Changing cultures Socio-technical system changes
Practitioners Value
Effectiveness/Efficiency Open Communication/Confrontation Empowering/Power Equalization Enhance Productivity Promoting Organizational Participation Authenticity/trust
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Ethics
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Service first
Do not sell yourself short for fads Can consultant deliver what client is willing to buy? But, not replacement (i.e., no insourcing) Copyright Barbara Senior, Organisational Change Lecturers Guide 2002 Training leadership isnt necessarily a good
Ethics
Cannot force change Collusion True to the source(s) of problems Credit changes to the client Take on only work you can handle. Maintain your worth Whole system is the client
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Action Research
Lewin said, theres no action action without research, no research without action.
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Action Research
1 Preliminary Diagnosis 2 Data Gathering 3 Data Feedback
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7 Evaluation
4 Exploration of Data