Organizational Change and Development - Module 5 - MG University - Manu Melwin Joy

Organizational Change and Development Module 5 - 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

• Contemporary issues and applications. • Organizational development in global context. • Organizational development in service sector,

OD Practioners – role, competencies requirement, professional ethics and value and experiences.

• Trends in OD.

Scope of Organizational Development

• Organization Effectiveness• Organization Design• Organization Assessment• Organization-Wide System/Process Change• Performance Excellence• Succession Planning• Performance Coaching • Team Intervention

Problems with OD

• Too little “O” in OD– Few consultants are engaged

in the system-wide efforts that are OD.

– Most are using OD techniques in limited ways because of “reductionist thinking legacy”.

Problems with OD

• Too exclusive an emphasis on human processes– excludes task and

content contributions– prevents integration of

social and technical systems

– potentially distorts/over-simplifies diagnoses

Problems with OD

• Rigid adherence to humanistic values, making field’s strength a weakness– blindness to forces and

perspectives beyond human factors

– humanistic values can “trump” research on what works and doesn’t

– advocacy for the “right” values vs. helping clients

– Anti-leadership bias can lead to seeing the client as the enemy

– devalue organizational politics

OD and HRM• As HR takes on an increasingly

transformational role, OD will enable HR professionals to:– support transformation– work on organization design– design and deliver learning and

development interventions– support clients in major change

and organization design projects– analyze and improve the overall

health of the organization– keep the organization healthy

and fit for future challenges.

Assumptions in organizational development

Assumptions in OD

• The Organization development has a number of underlying assumptions which can be examined so as to determine how the OD programmes can be utilized to the fullest potential.

• These assumptions are based upon French and Bell.

Assumptions in OD

• Most individuals have drives towards personal growth and development.– The work habits are a

response to work environment rather than personality traits.

– Accordingly, efforts to change work habits should be directed towards changing how the person is treated rather than towards attempting to change the person.

Assumptions in OD

• Highest productivity can be achieved when the individual goals are integrated with organizational goals. – Also with such integration,

the quality of the product is highly improved.

Assumptions in OD

• Cooperation is more effective than competition. – Conflict and competition tend

to erode trust, prohibit collaboration and eventually limit the effectiveness of the organization.

– In healthy organizations, “efforts are made at all levels to treat conflict as a problem subject to problem solving methods.

Assumptions in OD

• The suppression of feelings adversely affects problem solving, personal growth and satisfaction with one’s work. – Accordingly, free expression

of feelings is an important ingredient for commitment to work.

Assumptions in OD

• The growth of individual members is facilitated by relationships, which are open, supportive and trusting. – Accordingly, the level of

interpersonal trust, support and cooperation should be as high as possible.

Assumptions in OD

• The difference between commitment and agreement must be fully understood. – Agreeing to do something is

totally different from being committed to do something.

– Sense of commitment makes it easy to accept change and the implementation of change for the purpose of organi zational development is even easier when such a commitment is based upon participation in the process.

Assumptions in OD

• OD programmes, if they are to succeed, must be reinforced by the organization’s total human resources system.

Ethics and Values of organizational development

Ethics of OD

• RESPONSIBILITY TO OURSELVES– Acting with integrity and

Authenticity.– Striving for self-knowledge

and personal growth– Asserting individual

interests in ways that are fair and equitable.

Ethics of OD

• RESPONSIBILITY FOR PROFESSIONAL DEVELOPMENT AND COMPETENCE– Accepting responsibility for the

consequence of our acts.– Developing and maintaining

individual competence and establishing cooperative relations with other professionals.

– Recognizing our own needs and desires, and dealing with them responsibly in the performance of our professional roles.

Ethics of OD

• RESPONSIBILTY TO CLIENTS AND SIGNIFICANT OTHERS.

• Serving the long-term well-being of our client system and stakeholders.

• Conducting ourselves honestly, responsibly, and with appropriate openness.

• Establishing mutual agreement on a fair contract.

Ethics of OD

• RESPONSIBILITY TO THE OD COMMUNITY.– Contributing to the continuing

professional development of other practitioners and field of practice.

– Promoting the sharing of professional knowledge and skill.

– Working with other professionals in ways that exemplify what the profession stands for.

Ethics of OD

• SOCIAL RESPONSIBILITY.– Acting with sensitivity to the

consequences of our recommendations for our client system and the larger systems within they are a subsystem.

– Acting with awareness of our cultural filters and with sensitivity to multinational and multicultural differences and their implications.

– Promoting justice and serving the well-being of all life on earth. -

The Ethics of OD:Summary of the Debate

OD is unethical

• Imposes values of theorganization; coerciveand manipulative

• Potential for abuse

OD is ethical

• The imposition of valuesis an inherent part of life,especially on the job

• Abuse comes from individuals, not fromthe technique itself,which is neither goodnor evil

Antecedents Process Consequences

Ethical Dilemmas

• Misrepresentation• Misuse of data• Coercion• Value and goal conflict• Technical ineptness

Role Episode

• Role conflict• Role ambiguity

Role ofthe

ChangeAgent

Role of the

ClientSystem

ValuesGoalsNeeds

Abilities

A Model of Ethical Dilemmas

Values of OD

• Ethics based on values help OD practitioners guide themselves as they move along the paths of their work and lives.

• Values are set of manners that individuals learn while growing up. It is different from ethics because ethics are publicly agreed on, and publicly stated, guidelines for a practice in a profession.

Values of OD

• Three types of OD Values– Humanistic– Optimistic– Democratic

Humanistic Values

• They proclaim the importance of the individual.

• Respect the whole person.• Treat people with respect

and dignity.• Assume that every one

has intrinsic worth.• View all people as having

the potential for growth and development.

Organic Values

• They post that people are basically good.

• Progress is possible and desirable.

• Rationality, reason, and goodwill are the tools for making progress.

Democratic Values

• They assert the sanctity of the individual.

• The right of people to be free from misuse of power.

• Use of fair and equitable treatment for all.

• Need for justice through rule of law.

OD practitioner

The Organization Development Practitioner

• Internal and External Consultants

• Professionals from other disciplines who apply OD practices (e.g., TQM managers, IT/IS managers, compensation and benefits managers)

• Managers and Administrators who apply OD from their line or staff positions

Role Demands on OD Practitioners

• Position– Internal vs. External

• Marginality– Ability to straddle boundaries

• Emotional Demands – Emotional Intelligence

• Use of Knowledge and Experience

Competencies of an Effective OD Practitioner

KNOWLEDGE

Foundation Competencies

• Organization Behavior– Organization Culture– Work Design– Interpersonal Relations– Power and Politics– Leadership– Goal-Setting– Conflict– Ethics

• Individual Psychology– Learning theory– Motivation theory– Perception theory

• Group Dynamics– Roles– Communication Processes– Decision-Making Processes– Stages of Group Development– Leadership

Foundation Competencies

• Management and Organization Theory– Planning, organizing, leading, and

controlling– Problem solving and decision making– Systems theory– Contingency theory– Organization structure– Characteristics of environment and

technology– Models of organization and system

Foundation Competencies

• Research Methods / Statistics– Measures of central tendency– Measures of dispersion– Basic sampling theory– Basic experimental design– Sample inferential statistics

• Comparative Cultural Perspectives– Dimensions of natural culture– Dimensions of industry culture– Systems implications

Foundation Competencies

• Functional Knowledge of Business– Interpersonal communication– Collaboration / working together– Problem solving– Using new technology– Conceptualizing– Project management– Present / education / coach

Foundation Competencies

Core Competencies

• Organization design

• Organization research

• System dynamics

• History of organization

• Theories and models for change

Competencies of an Effective OD Practitioner

SKILLS

Core Competencies

• Managing the consulting process• Analysis/diagnosis• Designing/choosing appropriate, relevant

interventions• Facilitation and process consultation• Developing client capability• Evaluating organization change

Client vs. Consultant KnowledgePlans Implementation

Recommends/prescribes

Proposes criteria

Feeds back data

Probes and gathers data

Clarifies and interprets

Listens and reflects

Refuses to become involved

Use of Consultant’sKnowledge andExperience

Use of Client’sKnowledge andExperience

Future of OD

• the following concerns remain constant for leaders and OD practitioners. How do we:– build a sustainable high-performance

organization in which individual workers take an active part in achieving the required output?

– Appropriately build engaged, proactive, empowered staff when there are limited reward levers organization can pull while needing to hold staff accountable?

– Solve the problems of aligning and integrating diverse cultural elements?

Future of OD

• Ensure there are fluid two-way communication channels – so that information can flow upward as well as downward within hierarchies?

• Help organizations to be externally sensitive and internally agile?

• Build organizational climates that will release human potential and creativity at work and foster continuous learning and renewal culture within organizations?

Four Key Orientations of OD

• A systemic orientation

• A problem-solving

orientation

• A humanistic orientation

• An experiential learning

orientation

Four Key Orientations of OD

• A systemic orientation– The understanding that

all parts of an organization (structure, technology, processes, people) are highly connected. Problems can occur at one or more levels and have far reaching consequences throughout the organization

Four Key Orientations of OD

• A problem-solving orientation– A focus on problem

identification, data gathering, option generation, cost/benefit analysis, decision-making, action planning, monitoring, review and adaptability - in the light of subjective experience

Four Key Orientations of OD

• A humanistic orientation– A positive belief

about the potential of people, their rights, their need for autonomy and support in varying measures, and the value of their subjective experience

Four Key Orientations of OD

• An experiential learning orientation– An acceptance that

training, development and organizational learning should be based on the subjective experiences of all those involved.

Basic Organization Development Model

Diagnosis of Situation

Introduction of interventions

Progress Monitoring

Feedback

Organization Development Interventions

OrganizationDevelopment

Structural TechniquesRelationship Techniques

T-group Training

Team Building

Survey Feedback

Job Redesign

Management by Objectives

Supplemental Organizational Processes

Organizational Learning

Exploitative Learning

ExploratoryLearning

Organization Development Across Cultures

EthnocentricAttitude andStereotyping

Flexibility

Knowledge ofSpecific Cultures

InterpersonalSensitivity

Growth of OD in Global Settings

• The rapid development of foreign economies.

• The increasing worldwide availability of technical and financial resources.

• The emergence of a global economy.

Cross-cultural Dimensions

• Power Distance• Uncertainty

Avoidance• Achievement

Orientation• Individualism• Context

Power Distance

• Extent to which members of a society accept that status and power are distributed unequally in an organization.

• Organizations in these cultures tend to be autocratic, possess clear status differences, and have little employee participation.

Uncertainty Avoidance

• The extent to which members of a society tolerate the unfamiliar and unpredictable.

• Organizations in these cultures tend to value experts, prefer clear roles, avoid conflict, and resist change.

Individualism

• The extent to which people in a society believe they should be responsible for themselves and their immediate family.

• Organizations in these cultures tend to encourage personal initiative, value time and autonomy, and accept competition.

Achievement Orientation

• The extent to which people in a society value assertiveness and the acquisition of material goods

• Organizations in these cultures tend to associate achievement with wealth and recognition, value decisiveness, and support clear sex roles

Context• The extent to which

meaning in communication is carried in the words.

• Organizations in high context cultures tend to value ceremony and ritual, the structure is less formal, there are fewer written policies, and people are often late for appointments.

Cultural and Economic Contexts of International OD Practice

Worldwide Organizations

• Offer products or services worldwide.

• Balance product and functional concerns with geographic issues.

• Coordination must address complex personnel and cross-cultural issues.

• Its competitive position in one national market is affected by its competitive position in other national markets.

Trends Affecting OD Practice

Trends Affecting OD Practice

• Environmental Trends- Wealth is becoming

more concentrated- Economy is more

globalized.- Ideologies are shifting

from consumption to coexistence and ecological sustainability.

Trends Affecting OD Practice· Workforce Trends

- Workforce is becoming older, more diverse, more educated.

- Shift toward contingent employment & change in psychological contract.

- No careers.

Trends Affecting OD Practice

• Technology Trends

- Internet growth will

increase.

- E-commerce growth.

- Increased rate and

pervasiveness of

technological change.

Trends Affecting OD Practice · Organizational

Trends- Organizations will

become both smaller and larger; more and less decentralized.

- Virtual, networked, alliance based.

- Truly global management structures and cultures.