10 OC and OD MBA Final

Organizational Change and Development

Presented by:Bal Ram Chapagain, M. Phil.

April 18, 2023 [email protected]

Concept of Change

Change refers to making things different. It is opposite to status quo.

Change in organizational setting focuses on programs and strategies to alter people, process, structure and technology.

Change is unavoidable for modern organizations in order to cope with changes in environment and stay ahead of competitors.

Therefore, the question for organizations is not whether to change or not, but when how to change.

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Forces for Change

A. External forces/factors for changePolitical-legal forcesEconomic forcesSocio-cultural forcesTechnological forcesMarket forces (such as customers, suppliers,

competitors, creditors etc.)Natural environmental forces (such as natural

calamities, climate change etc.)

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Forces for Change

B. Internal forces/factors for change Change in organizational goals (goal succession and

displacement) Structural changes Changes in resource base Change in organizational strategies and policies Change in philosophical priorities of management

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Resistance to Change

Resistance to change refers to any attitude or behavior that hinders the change process.

Resistance to change may be covert or overt in nature. Covert resistance to change refers to the increase in

tardiness and absenteeism, request for transfers, low morale and motivation etc.

Where as overt resistance to change is expressed through strikes, sabotage, deteriorating quality of goods and services etc.

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Sources/causes of resistance to change

A. Individual resistance to change Economic insecurity Fear of uncertainty/unknown Fear of losing power, resources, and freedom Existing habit Misunderstanding and lack of trust Different perceptions and assessments Poor communication and lack of involvement Lack of adequate knowledge and skills

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Sources/causes of resistance to change

B. Organizational resistance to change Structural inertia Resource constraints Organizational culture Existing agreements with insiders and/or outsiders Huge investment in fixed assets and long pay-back

period

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Overcoming resistance to change

1. Education and training

2. Communication

3. Participation and involvement

4.  Facilitation and support

5.  Negotiation and agreement

6.  Manipulation

7. Co-optation

8. Explicit and implicit coercion

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Concept of Organizational Development (OD)

OD is a long-term and comprehensive approach of managing planned change based on humanistic values.

According to S. P. Robbins and S. Sanghi, “OD is a collection of planned-change interventions, built on humanistic-democratic values, that seeks to improve organizational effectiveness and employee well-being.”

The OD paradigm values human and organizational growth, collaborative and participative process, and a spirit of inquiry. April 18, 2023 [email protected]

Characteristics of OD

Long range effort (generally 3-5 years) Wider scope (may include people, process,

technology etc.) Dynamic and continuous process Systems perspective Research based Participative approach

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OD Values

1.Respect for people

2.Democratic

3.Trust and support

4.Power equalization

5.Confrontation (do not escape from the problem)

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Prerequisites (preconditions) of OD

1.Top management’s commitment

2.Presence of some committed and influential managers

3. Involvement of external OD consultant and internal change facilitators

4.Successful experience with earlier efforts

5.Teamwork

6.Built-in reward system

7. Internalization of OD valuesApril 18, 2023 [email protected]

OD Process

Though the OD process may be unique for every organization, a typical OD process generally consists of the following steps.

1. Problem recognition

2. Hiring OD consultant

3. Diagnosis (observation, questionnaire, interviews etc. with employees and different stakeholders)

4. Presenting a proposed framework and confrontation

5. Preparing a final action plan

6. Using OD interventions/ Implementation

7. EvaluationApril 18, 2023 [email protected]

ANY

QUESTIONS?

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Thank You