Organizational Development 1. Introduction 2. Foundation 3. OD Process 4. Intervention Techniques 5. Ethics 6. Politics
Oct 15, 2014
Organizational Development
1. Introduction
2. Foundation
3. OD Process
4. Intervention Techniques
5. Ethics
6. Politics
FOUNDATIONS OF OD
1. Planned Change
2. Systems Theory
3. Collateral Structures
4. Team Work
5. Educative Strategy
6. Applied Behavioral Science
7. Action Research
FOUNDATIONS OF OD
1. Planned Change
2. Systems Theory
3. Collateral Structures
4. Team Work
5. Educative Strategy
6. Applied Behavioral Science
7. Action Research
Theories of Planned Change
Kurt Lewin’s Organizational change theories Resultant Theory Three stage Model Theory
Burke Litwin’s model of Organization change First Order Change and Second Order Change
Porras and Robertson’s model of Organizational Change
Based on work setting
Resultant Theory
“The current state of things at any point is the result of opposing forces.” Method Used : Force Field Analysis
Three Stage Model theoryUnfreezing – Creating readiness Lack of confirmation Creation of guilt Psychological Safety
Unfreezing
Changing
Refreezing
Changing - viewing things differently Identifying a new mentor or new role. Scanning environment for data
Refreezing – Integrating with the new scenario
The new personality New Relationships
Burke–Litwin Model of Change
First Order Change happens when some features of the organization
change Leads to:
transactional change Organisational climate
Second Order Change happens when the organization undergoes certain
fundamental changes. Leads to:
transformational change Change in organizational culture
Models and theories
Kurt LewinKurt Lewin
Change is a three-stage processStage 1- Unfreezing the old behavior/ situationStage 2- Moving to a new level of behaviorsStage 3- Refreezing the behavior at the new level
Edgar Schein modified this theory by specifying psychological mechanisms involved in each stage
Later Ronald Lippitt, Jeanne Watson and Bruce Westley expanded this model into seven-stage model
Models and theories Contd..
Phase 1
Phase 2
Phase 7
Phase 6
Phase 5
Phase 4
Phase 3
Developing a need for change.
Establishing the change relationship.
Diagnosing the client system’s problem.
Examining alternative routes, establishing goals and intentions of action.
Transforming intentions into actual change efforts.
Stabilizing change.
Achieving a terminal relationship.
Seven stage model representing the consulting process
Models and theories Contd..
Five critical leverage points (tracks) for organization change
1. The culture track
2. The management skills track
3. The team-building track
4. The strategy-structure track
5. The reward system track
AT&T, Eastman Kodak, Ford, General Electric, Xerox etc.
Track 1 : Enhances trust, communication, information sharingTrack 2 : Provide new ways of coping with complex problemsTrack 3 : Infuses new culture and updated management skillsTrack 4 : Develops revised strategy plan for organizationTrack 5 : Establishes performance based reward system
Ralph KilmannRalph Kilmann
Models and theories Contd..
Warner BurkeWarner Burke
The Burke-Litwin Model of Organizational Change
Change
First order change (Transactional change)
Second order change (Transformational change)
OD interventions directed towards structure, management practices, and systems (policies & procedures) result in first order change.
OD interventions directed towards mission and strategy, leadership, and organization culture result in second order change.
Models and theories Contd..
Transformational factors
Transactional factors
Models and theories Contd..
Jerry PorrasJerry Porras Peter RobertsonPeter Robertson
Porras & Robertson Model of Organizational Change
OD interventions alter features of the work setting causing changes in individuals’ behaviors, which in turn lead to individual and organizational improvements.
Work setting factors
Organizing arrangements
Social factors
Physical setting
Technology
1
2
3
4
Models and theories Contd..
Organizing arrangementsGoals, strategies, structure, policies, procedures
Social FactorsCulture, management style, informal networks, individual attributes
Physical SettingsSpace configuration, physical ambiance
TechnologyMachinery, tools, IT, job design
Warner Burke & George Litwin Transactional change Transformational change
Transactional change ( First order change) This includes
Evolutionary, adaptive, incremental, or continuous change
Here The features change but fundamental nature of organization remains the same
OD interventions are directed towards changes in organization structure, Management practices & systems including policies & procedures
Transactional Factors
Transformational change ( Second order change)
This involves revolutionary Radical, discontinuous change
In this type of change the nature of organization is fundamentally & substantially altered
Here the OD interventions are directed towards revisiting mission & strategy, leadership & organization culture
The interventions help organizations to redefine its vision , mission & strategy
Transformational Factors
Burke – Litwin Model
Burke – Litwin Model Contd There are two distinct sets of
organizational dynamics.
Transactional leaders contribute to normal performance by guiding and motivating the employees towards the goals.
Transformational leaders are capable of having a profound and extraordinary effect on the employees.
Porras and Robertson Model
This model states that OD Interventions alter features of work setting causing changes in individual and organizational improvements.
The work setting plays a central role in this model and consists of four factors.
Work Setting Factors
General model of planned change
Entering & contracting
DiagnosingPlanning &
Implementingchange
Evaluating &Institutionalizing
change
Systems Theory “System is an arrangement of interrelated
parts”- Hanna. Systems operate through the input-
throughput- output mechanism. Inputs- money, people, raw materials,
information etc Through put – conversion or transformation Output - final product/service
Systems Theory
Organizations are open systems in active exchange with their environment
David A. NadlerDavid A. Nadler
Th
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gru
ence
Mo
del
Systems Theory Contd..
Eric TristEric Trist
Sociotechnical Systems Theory (STS)
All organizations comprised of two interdependent systems:
1. Social system2. Technical system
To achieve high productivity and employee satisfaction, organizations must optimize both systems.
Changes in one system affect the other system.
Features of Open Systems Goal Oriented Follows law of Entropy Emphasis on feedback Coded information Dynamic Homeostasis Existence of Subsystems Differentiation Equifinality
System in Interaction
Congruence among system elements.
Input factors Environment Resources History
Organizational Elements Strategy Work People Formal and Informal Organization
Output Factors System Unit Individual
Congruence among System Elements
Analysis of the System Theory
Parts of the Organizational System Parts of the Environment Major Variables Relationship between the variables
Serious mistakes made in business arise because of neglect of one or more of these four factors.
Benefits of System Theory
1. Effective Problem Solving2. Effective leadership3. Effective Communication4. Effective Planning5. Effective Organizational development6. Avoiding founder's syndrome.
Participation and Empowerment
Challenge the process opportunity search Risk and Experiments
Inspired Vision Envision the past, present and future
Enabling Foster collaboration Strengthen others
Modeling the way Set example Plan small wins
Encourage the heart Recognition of the individual Celebrate accomplishments.
Empowerment contd
Concept of open Book Management
Understanding the company's financials. Self motivated employees A direct stake in the business
Participation & Empowerment
Participation in OD programs is not restricted to elites or top people; it is extended broadly throughout the organization.
Increased participation and empowerment have always been central goals and fundamental values of OD.
Participation enhances empowerment and empowerment in turn enhances performance.
Empowerment is the key to getting people to want to participate in change.
Teams & TeamworkMany tasks are so complex that they cannot be performed by individuals; people must work together to accomplish them.
Putting those empowered individuals into teams creates extraordinary effects on performance.
Teams create synergy i.e. sum of efforts of team is far greater than sum of individual efforts.
A number of OD interventions are specifically designed to improve team performance. Examples – team building, quality circles etc.
Characteristics of Characteristics of successful teamssuccessful teams
1.clear, elevating goal
2.result driven structure
3.competent members
4.unified commitment
5.collaborative climate
6.standards of excellence
7.external support and recognition
8.principled leadership
…..Larson & LaFasto
Parallel Learning Structure
A supplementing structure coexisting with the usual.
Features are:1. A created structure2. Operates in parallel3. Questions the constraints4. Engages inquiry, initiation and
experimentation5. Ensures Organization effectiveness
Parallel Learning StructuresA parallel learning structure consists of a steering committee and a number of working groups* that study what changes are needed, make recommendations of improvements, and monitor the change efforts.
(* Idea groups, action groups, implementation groups etc.)
One or more top executive should be part of steering committee
Representatives from all parts of the organization
In large bureaucratic organizations :
1. High forces of inertia2. Hierarchical communication pattern3. Standard ways of addressing problems
Here parallel learning structures are best way to initiate change
Inhibit : learning Innovation Change
Normative-Re educative Strategy
Change can be brought about by 3 kinds of strategies.
1. Empirical and Rational Strategies2. Normative and Re educative Strategy3. Power-Coercive Strategy
OD Practioners propose the normative and educative strategy for Organization Development
Normative-Reeducative Strategy of Change
Norms form the basis for behavior, and change comes through reeducation in which old norms are discarded and replaced by new ones.
Changes in normative orientations involve changes in:• Attitudes• Values• Skills• Relationships
Norms can be best changed by focusing on the group, not the individual.
Applied Behavioral Science
Applied Behavioral Science is a combination of Research , Theory and Science .
Includes basic understanding of theory, practice, principles and concepts. ( Diagnosis)
Includes techniques, strategies, models, process and paradoxes. ( Treatment)
Illustrates awareness, observation and interpretation.
Applied Behavioral ScienceOD is an application of behavioral science
Pure/ Basic Science Applied ScienceGenerating knowledge Knowledge to Solve
practical problems
Practice Theory : Diagnosing the situation, then selecting and implementing treatments based on diagnosis, and finally evaluating the effects of the treatments.
What helps me solve this problem?
What helps me solve real problems?
Applied Behavioral Science
Practice Research Practice Theory
Behavioral Science Research Behavioral Science Theory
Pu
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Ap
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Researcher enters a problem situation, diagnoses it and make recommendations for remedial treatment (recommendations may not be put into effect by client group)
People who are to take action are involved in the entire process from the beginning (involvement increases the likelihood of carrying out the actions once decided upon)
Researcher keeps the systematic, extensive record of what he/ she did and what effects it had (may encounter situations too divergent from one another, which may not permit generalizations)
It is controlled research on the relative effectiveness of various techniques (is difficult to do when client wants immediate answers)
Diagnostic
ParticipantParticipant
Empirical
ExperimentalExperimental
Action ResearchData Collection
Feedback of data to client system members
Action planning based on the data
Taking action
Evaluating results of actions
Types
Diagnostic
Participant
Empirical
Experimental