Organizational Change and Development - Module 4 - MG University - Manu Melwin Joy

Organizational Change and Development Module 4 - MG University

Prepared By

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Manu Melwin JoyAssistant Professor

Ilahia School of Management Studies

Kerala, India.Phone – 9744551114

Mail – manu_melwinjoy@yahoo.com

Contents

• Structural Interventions -Restructuring organization, BPR Vs TQM, employee involvement, work design.

• Strategic Interventions.• Organisation and environment relationships,

competitive and collaborative strategies, • Organization transformational strategies.

Sig Sigma

• Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process – from manufacturing to transactional and from product to service.

TQM / Continuous process improvement

• Total Quality Management (TQM) is a management approach that originated in the 1950s and has steadily become more popular since the early 1980s.

• Total quality is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs.

Process Re engineering

• Business Process Reengineering involves the radical redesign of core business processes to achieve dramatic improvements in productivity, cycle times and quality.

• In Business Process Reengineering, companies start with a blank sheet of paper and rethink existing processes to deliver more value to the customer.

Cummings & Worley, 7e (c) 2001 South-Western College Publishing 14-8

• Prepare the organization• Specify the organization’s strategy and

objectives• Fundamentally rethink the way work gets

done– Identify and analyze core business processes– Define performance objectives– Design new processes

• Restructure the organization around the new business processes.

Process Re engineering

Cummings & Worley, 7e (c) 2001 South-Western College Publishing 14-9

· Work units change from functional departments to process teams

· Jobs change from simple tasks to multidimensional work· People’s roles change from controlled to empowered· The focus of performance measures and compensation

shifts from activities to results. · Organization structures change from hierarchical to flat· Managers change from supervisors to coaches;

executives change from scorekeepers to leaders

Characteristics of Reengineered Organizations

Bench Marking• Benchmarking is the process of

comparing one's business processes and performance matrics to industry bests or best practices from other companies.

• Dimensions typically measured are quality, time and cost. In the process of best practice benchmarking, management identifies the best firms in their industry, or in another industry where similar processes exist, and compares the results and processes of those studied (the "targets") to one's own results and processes.

Socio technical systems

• Sociotechnical systems (STS) in organizational development is an approach to complex organizational work design that recognizes the interaction between people and technology in workplaces.

• The term also refers to the interaction between society's complex infrastructures and human behaviour.

Structural Intervention

Structural Intervention

• These interventions deal with an organization’s technology (for examples its task methods and job design) and structure (for example, division of labor and hierarchy).

• These interventions are rooted in the disciplines of engineering, sociology, and psychology and in the applied fields of socio-technical systems and organization design. Practitioners place emphasis both on productivity and human fulfillment.

Structural Design

• This change process concerns the organization’s division of labour – how to specialize task performances.

• Diagnostic guidelines exist to determine which structure is appropriate for particular organizational environments, technologies, and conditions.

Self-managed teams.

• A self-managed team is a group of employees that's responsible and accountable for all or most aspects of producing a product or delivering a service.

• A self-managed team carries out supporting tasks, such as planning and scheduling the workflow and managing annual leave and absence, in addition to technical tasks. Management and technical responsibilities are typically rotated among the team members.

Quality circles

• A quality circle is a participatory management technique that enlists the help of employees in solving problems related to their own jobs.

• Circles are formed of employees working together in an operation who meet at intervals to discuss problems of quality and to devise solutions for improvements.

Downsizing

• This intervention reduces costs and bureaucracy by decreasing the size of the organization through personnel layoffs, organization redesign, and outsourcing.

• Clarify the organization’s strategy

• Assess downsizing options and make relevant choices

• Implement the changes• Address the needs of

survivors and those who leave• Follow through with growth

plans

Downsizing Process

Cummings & Worley, 7e (c) 2001 South-Western College Publishing 14-19

Downsizing TacticsTactic Characteristic Examples

WorkforceReduction

Reduces headcount Short-term focus Fosters transition

Attrition Retirement/buyout Layoffs

OrganizationRedesign

Changesorganization

Medium-term focus Fosters transition &

transformation

Eliminate functions,layers, products

Merge units Redesign tasks

Systemic

Changes culture Long-term focus Fosters

transformation

Changeresponsibilities

Foster continuousimprovement

Downsizing is normal

High-involvement Organizations

• This intervention reduces costs and bureaucracy by decreasing the size of the organization through personnel layoffs, organization redesign, and outsourcing.

Work redesign

• This refers to OD

interventions aimed at

creating jobs, and

work groups that

generate high levels of

employee fulfilment and

productivity.

Quality of Work Life (QWL)

• Organizational improvement efforts.– Attempt to restructure

multiple dimensions of the organization.

– To institute a mechanism which introduces and sustains changes over time.

• An increase in participation by employees and increase in problem solving between the union and management.

Parallel Structures• Some companies stand to gain improved

employee effectiveness though peer communication and sharing experiences encountered throughout the working day.

• This behavior happens naturally, to an extent, wherever the staff gathers for breaks and shares conversation.

• Formalizing the process ensures that all employees in a similar department, regardless of their position in the traditional hierarchy, have the chance to contribute ideas to the broader organization.

Management by objectives (MBO).

• Management by objectives (MBO), also known as management by results (MBR), is a process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization in order to achieve them.

• The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employee’s actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.

HR management intervention

Goal Setting

• Goal Setting: This change program involves setting clear and challenging goals. It attempts to improve organization effectiveness by establishing a better fit between personal and organizational objectives.

Performance Appraisal

• Performance Appraisal:

This intervention is a

systematic process of

jointly assessing work-

related achievements,

strengths and weaknesses.

Reward Systems

• Reward Systems: This intervention involves the design of organizational rewards to improve employee satisfaction and performance.

Career Planning and development

• Career Planning and development: It generally focuses on managers and professional staff and is seen as a way of improving the quality of their work life.

Managing workforce diversity

• Managing workforce diversity: Important trends, such as the increasing number of women, ethnic minorities, and physically and mentally challenged people in the workforce, require a more flexible set of policies and practices.

Employee Wellness

• Employee Wellness:

These interventions

include employee

assistance

programs (EAPs) and

stress management.

Comprehensive OD interventions

INTRODUCTION• Comprehensive interventions are

those in which the total organization is involved and depth of the cultural change Is addressed.

• Phrases like “getting the whole system in the room” are appearing in greater OD practice.

• Beckhard’s confrontation meeting and Strategic management activities involving top management, in the case of smaller organizations ,the entire management group like survey feedback is an important and widely used interventions for OD.

Whole system can be described as-

• Managers of all of the functional areas in a business.

• Representatives of top management, a cross section of employees from all levels, and supplier and customer representatives.

• Directors of all of the social service agencies in a community.

BECKHARD’S CONFRONTATION MEETING

• The confrontation meeting is developed by Richard Beckhard, is a one day meeting of the entire management of an organization, in which they take a reading of their own organizational health.

• In a series of activities, the mgt group generates information about its major problems, analyzes the underlying causes, develops action plans to correct the problems, and sets a schedule foe completed remedial work.

• This intervention is an important one in OD. It is quick, simple, and reliable way in which to generate data about an organization and to set the action plans.

Contd…The steps involved in confrontation meeting are as follows:

1. Climate setting (45-60 min). The top manager introduces the session by stating his or her goals for the meeting, citing the necessity for free and open discussion of issues and problems, and making it clear that individuals will not be punished for what they say.

2. Information collecting (1 hour). Small groups of 7-8 members are formed on the basis of heterogeneity of composition that is maximum mixture of people from different functional areas and working situations compose each team. The only rule is that bosses and subordinates cannot be put together on the same team.

Contd..

3. Information sharing (1 hour). Reporters from each small group reports the group’s complete findings to the total group, which are placed on newsprint on the walls. The total list of items is characterized usually by the meeting leader, into few major categories that may be based on type of problems (e.g.. Communication problems), type of relationships (e.g.. Troubles with top management), or type of area (e.g. problems with the accounting deptt.)

Contd..4. Priority setting & Goal Action Planning (1 hour and 15 min.). This step typically follows a break during which time the items from the lists are duplicated for distribution to everyone. In a 15 min general session, the meeting leader goes to the list of items. The groups are asked to do three tasks. First they are to identify the problems they think should be the priority issues for top mgt. Second to find the solutions to the problems. Third, they are to determine how they will communicate the results of the confrontation meeting to their subordinates . This activity completes the confrontation meeting for all the managers except for the top mgt. group.

Contd..5. Immediate follow up by top team (1 to 3 hours). The top mgt team meets the rest of the participants have left to plan the first follow-up actions steps and to determine what actions should be taken on the basis of what they have learned during the day. These follow up action plans are communicated to the rest of the mgt group within several days.

6. Progress Review (2 hours). A follow up meeting with the total mgt group is held 4-6 weeks later to the report progress and to review the actions resulting from the confrontation meeting.

Strategic Management Activities• It is defined as the development and

implementation of the organization’s grand design or overall strategy for relating to its current and future environmental demands.

• The concept is described by Schendel and Hofers as- It comprises of six major tasks as:i. Goal Formulation- Defining

Mission & purpose

ii. Environmental analysis- SWOT Analysis

iii. Strategy formulation

iv. Strategy evaluation

v. Strategy implementation

vi. Strategic control

Stream Analysis• Developed by Jerry Porras is a valuable model

for thinking about change and for managing change.

• It is a system for graphically displaying the problems of an organization, examining the interconnections between the problems, identifying core problems and graphically tracking the corrective actions taken to solve the problems.

• Porras categorized organization work in four classes-

a) Organizing arrangements- goals, structure, policies etc. b) Social factors- Culture, mgt style, interaction process etc. c) Technology- tools, equipment, job design, technical systems. d) Physical Setting- space configuration, physical ambience, interior design etc.

Contd..• A thorough diagnosis of the organization’s

problems and barriers to effectiveness is performed via brainstorming sessions, interviews, questionnaires and other methods.

• Each problem is categorized in one stream.• The interconnections between the problems

are noted. Problems that have many interconnections are identified as core problem.

• Action plans are developed to correct the core problems.

• In stream analysis, OD programs change the work setting, which leads to organizational improvement.

Survey Feedback• Collecting data about the system and

feeding back the data for individuals and groups at all levels of the organization to analyze, interpret meanings, and design corrective action steps.

• These are having two components- the use of Attitude Survey and the use of Feedback workshops.

• Survey feedback has been shown to be an effective change technique in OD.

• A well designed survey helps organization members to develop valid models of how organizations work and also provide feedback about progress towards goals.

Survey Feedback

Steps of Optimal survey• Organization members at the top of the

hierarchy are involved in the preliminary planning.

• Data are collected from all organizations.• Data are fed back to the top executive

team and then down through the hierarchy is functional teams.

• Each superior presides at a meeting with their subordinates in which the data are discussed.

• Most feedback meetings include a consultant who has helped prepare the superior for the meeting and who serves as a resource person.

Grid Organizational Development

• Designed by Robert R. Blake and Jane S. Mouton.

• Six phase program lasting about 3-5 years.

• An organization can move systematically from the stage of examining managerial behavior and style to the development and implementation of an ideal strategic corporate model.

• It enable individuals and groups to assess their own strengths and weaknesses.

• Based on two dimension-

a) Concern for people

b) Concern for production

Phases in Grid OD

Phase 1: The Managerial Grid- Grid seminar is conducted by the company manager. Attention is given to assessing an individual’s managerial styles; problem solving; and communication skills etc.

Phase 2: Teamwork Development- The goal is perfecting teamwork in the organization through analysis of team culture, traditions etc.. Feedback given to each manager about their individual team behavior .

Phase 3: Intergroup Development- The goal is to move groups from their ineffective ways towards an ideal model. The phase includes building operational plans for moving the two groups.

Cont..• Phase 4: developing an ideal strategic

corporate model- the focus shifts to corporate planning. Top management design an ideal strategic corporate model that would define what the corporation would be like.

• Phase 5: Implementing the Ideal Strategic Model- the organization implement the model developed in phase 4. Each component appoints a planning team whose job is to examine every phase of the component’s operation . After the planning and assessment steps are completed, conversion of the organization to the ideal condition is implemented.

• Phase 6: Systematic Critique- Systematic critiquing, measuring, and evaluating lead to knowledge of what progress has been made, what barriers still exist and must be overcome.

Large scale change and High Performance systems

• When a number of OD and other interventions are combined to create major changes in the total culture of an organization, the term large scale is used.

• The creation of high-performance systems, high-performance organizations, high- involvement organizations, or self designing organizations- usually involve a broad array of interventions, and typically extensive member participation and involvement.

• Changes in areas as job design and work flow, staffing procedures, training, and compensation are usually combined with such interventions.