Items Description of Module - e-PG Pathshala

Items Description of Module

Subject Name Management

Paper Name Organisational Change and Development

Module Title Managing Organisation Development Process

Module Id Module no.- 24

Pre- Requisites Basic knowledge of management

Objectives To study OD process and its various components

Keywords Diagnosis, OD practitioner, OD intervention, process, programme

QUADRANT-I

Module 24: Managing Organisation Development Process

1. Learning Outcome

2. Meaning of OD process

3. OD process management model

4. Components of OD process

5. OD process as viewed by Warner Burke

6. Critical activities or focus areas to manage OD process

7. Parallel Learning Structures

8. Summary

1. Learning Outcome:

After completing this module, the students will be able to:

Explain the OD process management.

Describe system diagnosis and ways to obtain diagnostic information.

Understand Six- Box Model.

Explain OD interventions and barriers to effective interventions.

Identify focus areas for better management of OD process

2. Meaning of OD Process

OD is a planned process of developing an organisation to be more effective in achieving its

desired goals. It focuses on developing systems, structures and processes in the organisation to

improve organizational effectiveness. This requires a well designed OD programme and its

proper management. OD process implies sequence of activities undertaken to transform

behaviour, thought, processes, systems or structure throughout the organisation.

The OD process/ programme has three major components i.e. diagnosis, action and effective

programme management. Diagnosis refers to collecting data about organisation’s total system,

its processes and culture. Action, also called as intervention, consists of set of activities

designed and implemented to improve organisation’s functioning. The programme management

includes, inter alia, planning, execution and evaluation of various activities initiated to produce

change or improve organizational effectiveness.

3. OD Process Management Model

Although diagnosis and actions are basic components of change inducing organisation

programme but the management of whole organisation development programme is equally

important to bring desired results. Fig. 1 shows OD process management.

Fig. 1

The first step consists of diagnosing the state of client’s system to identify opportunities,

strengths and problem areas. Second step includes development and execution of action plans to

realize opportunities or solve problems with the help of existing strengths. Sometimes, action

plans are also required to maintain the areas of strength. The tailor-made OD interventions/

action plans help in addressing issues at individual level, group level or organisation level (i.e.

issues related to people) as well as issues related to specific process. The results of interventions

are evaluated in step three to know whether actions brought desired results or not. If the

problems are solved or opportunities are seized, the OD practitioner shifts his focus to new

problems or opportunities. However, if problems remain unsolved or opportunities are not

realized, new action plans are formulated. Sometimes, efforts are also initiated to redefine the

problem areas. Thus, OD process management consists of diagnosis – intervention/ action –

evaluation – action and is a complicated process in practice. OD process requires lot of attention

as far as its management is concerned.

4. Components of OD process

The basic components of OD process have been discussed in detail as below:

4.1 System Diagnosis

An OD programme starts with diagnosis of client’s system i.e. organisation as a whole, its

subunits and processes to obtain information about status quo, existing problems and

opportunities and consequences of actions. Beckhard emphasized that diagnostic

activities focus on two broad areas. One area is diagnosis of various subsystems which

may be natural teams such as top management, production department, research group or

they may be levels like top management, middle management etc. The other area of

diagnosis is the organisation processes viz. decision-making processes, communication

system, management of conflict, planning methods. The OD practitioner may concentrate

on different target groups in a planned sequence by starting from total organisation and

then moving to selected subsystems or vice versa. The following example helps in

understanding diagnostic activity relating to subsystems. Diagnostic targets may be to

know the quality of relationship; to know whether parties have necessary skills for task

accomplishment, whether they are collaborative or competitive or whether they are

effective as a subsystem or not. The common methods of obtaining this information are:

separate interviews followed by a meeting of parties, observation to assess the dynamic

quality of interaction, confrontation meetings to check parties’ perceptions of each other.

Organisation processes explain how things are being carried out or activities are being

accomplished. The following example explains diagnostic activity focusing on

organisation process. The diagnostic target may be goal-setting process. This process

includes setting task objectives at all levels and establishing criteria to measure

accomplishment of objectives. For this, information providing answers to the following

questions will be sought:

(i) Do people set goals?

(ii) If yes, then who participate in goal setting?

(iii) Do people possess necessary skills for goal setting?

(iv) Are these goals achieved?

Observations, interviews or questionnaires are the common methods of obtaining this

information to assess goal-setting ability and skill of individuals and groups working

within the organisation.

The OD practitioners need information about target group as well as processes. However,

they pay special attention to processes as they depict organisation functioning and

significant problems usually arise from them. The useful information can be collected

through various methods. Some of the common methods are interviews, questionnaires,

observations, and organisation records.

Continuous diagnosis is essential in any planned change efforts. Effective diagnosis

provides valid information which helps in comparing ‘what is’ with ‘what should be’ to

reveal the gap between current and desired conditions. Accordingly, action plans are

formulated and executed to close this gap and impacts of these actions are regularly

monitored to measure progress towards goal. Diagnosis is thus primary and essential

activity in any OD programme which enables client to learn and interventionist

(consultant) to help. Diagnostic activities prove more beneficial when OD practitioner

and organisation members collectively decide on certain issues as what target groups to

diagnose, which processes to analyse, how the diagnosis can be best accomplished, which

method to use and how to use the information to develop action plans. The information

generated through diagnosis of system, subsystems and processes serve as foundation for

developing OD interventions. Hence, diagnosis and actions (OD interventions) are

essential components in organisation development programmes.

4.1.1 Six-Box Model as Diagnostic Tool

Marvin Weisbord’s six-box model is a popular diagnostic tool used by OD practitioners.

It helps in learning where to look and what to look while diagnosing organizational

problems. Weisbord emphasized that things must go right in six critical areas viz.

purposes, structure, rewards, supportive mechanisms, relationships and leadership for

ensuring organisation’s success (Fig. 2).

Fig. 2

Source : Marvin R. Weisbord, “Organizational Diagnosis : Six places to Look for Trouble With or

Without a Theory’ Group and Organisational Studies, (1976), pp 430-447.

The formal and informal aspect of various processes mentioned in boxes, i.e. the official

way things are supposed to happen and the way things are really happening, should be

considered to understand organizational dynamics. A thorough diagnosis of six areas will

help in choosing appropriate OD interventions.

4.1.2 Third-wave Consulting

The term used by Weisbord Third Wave implies era of information and technological

revolution. Weisbord reconsidered diagnosis through six-box model and advocated Third

Wave Consulting which requires shifting from problem-centred ‘sickness’ model of

organizational diagnosis and focusing on ‘wellness’ by helping people to achieve desired

future and creating meaningful and enjoyable workplaces. This optimistic view of

considering consultant as manager of events to help people do what they wish to do is a

valuable perspective on diagnosis.

4.2 OD Interventions

OD interventions are set of structured activities initiated in a systematic way to produce

desired changes. OD interventions lead to organizational improvement through correction

actions/ interventions, enabling actions, alignment interventions and new vision

supporting interventions. Corrective actions are implemented to solve the existing

problem. Enabling actions help in seizing the opportunity. Alignment interventions are

needed to put the things back at their right places. New vision supporting interventions are

implemented to make the new vision a reality by building necessary processes, structures

and culture.

Most OD interventions combine the dual features of learning and action. These

interventions tend to focus on real problems and use several learning models.

A well designed OD programme encompasses OD intervention strategy. This strategy

may be planned well in advance or it may emerge as events demand. Diagnosis of

organisation as a system or subsystems pinpoints where to intervene, what to do and how

to sequence interventions. This helps in formulating OD intervention strategy.

Planning interventions/ actions, executing interventions and evaluating the effects of

interventions are essential to organizational development. Thus, action planning and

action taking are important components of OD process.

While planning action, management/ consultant must decide which alternative is most

likely to produce desired results i.e. whether it is improvement in behaviour, attitude,

skills or structure. Accordingly, choice of a particular intervention should be made.

(Various interventions have been discussed in module-26,OD Interventions). Intervention

must be related to the cause of diagnosed problem. Selection of appropriate intervention

is necessary for making optimum use of organizational resources i.e. money, time and

energy and for boosting the morale of all the persons involved.

4.2.1 Barriers to Successful Interventions

According to Gibson, Ivancevich and Donnelly, at the time of planning and implementing

intervention, there is a need to consider three factors: (i) leadership climate,

(ii) organizational culture, and (iii) formal organisation. These factors have impact on the

effectiveness of interventions or OD programme. Leadership climate refers to leadership

style and managerial practices prevailing in the organisation. Lack of top management’s

support in OD programme will reduce chances of success. For example, a development

intervention like sensitivity training can fail if management does not support behavioural

changes initiated by OD programme. Similarly, interventions like total quality

management require managers to be open and group- centered. But, if the managers are

reluctant to change their style, such interventions cannot be implemented. Organizational

culture implies a system of values, group norms and beliefs existing in an organisation.

Group norms or code of conduct, set by the work group but not formally acknowledged,

may become a barrier to introduction of an intervention. Work group may oppose

straightforwardly a change in work method. Formal organisation is characterized by well

designed organizational structure, procedures, values and philosophy of top management

and system of control. If change in one component of formal organisation is not

compatible with all other components, the intervention cannot be effective.

Thus, for the success of OD programme, there is need to frame action programmes to get

the support of top management, motivating managers to change leadership styles,

developing confidence of workgroups in change programmes and ensuring compatibility

of change in any component of formal organisation with other components.

4.2.2 Decisions regarding Timing and Scope of Interventions

Successful implementation of OD interventions requires focus on two aspects i.e. timing

and scope of actions. It is important to decide the appropriate time at which to initiate

action by considering organisation’s operating cycle and ground work required prior to

OD programme. If OD programme is critical to organisation’s survival, it should be

implemented at the earliest. On the other hand, if sufficient time is available, the OD

programme can be implemented during slack period.

Determining the scope of interventions is equally important. It includes decision

regarding appropriate scale depending on OD strategy. OD intervention can be initiated

throughout the organisation at one time. Alternatively, it may be initially implemented in

small segment of the organisation, in one unit or in one department on trial basis to test

the validity of diagnosed solution. It is advisable to implement OD programme/

intervention in a phased manner. It will provide feedback for implementation in

subsequent phases. For example, MBO programme can be introduced in one department.

If desired results are produced, it can be introduced in other departments, units or

divisions. Similarly, total quality management (TQM) can be tried in one division and

then may be used in other divisions.

There is also reinforcement effect when OD programmes are implemented in phased

manner and each phase provides positive results showing planned progress of the

programme. It encourages people to accept change and enlarge their efforts to support

change.

4.3 Evaluation

OD programme/ intervention involves use of scarce resources of organisation like time

and money to improve organizational effectiveness. OD programmes may be expected to

improve production, satisfaction, profit, efficiency, work climate etc. So, there is a need

to evaluate OD programme in terms of expenditure and results. The evaluation of OD

programme provides information to judge effectiveness of OD programme or for making

improvement in subsequent stages. It also provides information which can help others,

seeking information, in deciding whether to undertake particular OD intervention or not.

It is easy to get feedback through organisation’s information system if expected results

relate to profit, absenteeism rate, sales volume or production. But, if expected results

relate to improvement in employee satisfaction, it is difficult to get information through

usual sources of information.

It should be remembered that practically, it is not possible to evaluate effectiveness of OD

programme if programme’s objectives/ goals have not been defined before its

implementation. Therefore, attention must be given to set goals which are explicit and

measurable.

Gibson, Ivancevich and Donnelly advocated evaluation model consisting of six steps:

(i) Determining objectives of the programme

(ii) Explaining the activities undertaken to achieve objectives

(iii) Measuring results/ effects of the programme

(iv) Setting baseline points against which change can be compared

(v) Controlling extraneous factors

(vi) Finding unanticipated consequences

The process of evaluation may be complicated but efforts should be made to evaluate the

impact of OD programme to take corrective actions, if required.

5. OD Process as Viewed by Warner Burke

According to Warner Burke, OD process consists of the following phases:

(i) Entry

(ii) Contracting

(iii) Diagnosis

(iv) Feedback

(v) Planning change

(vi) Intervention

(vii) Evaluation

Entry implies the initial contact between OD consultant and client and analyzing situation that

led the client to seek formal help of a consultant. Contracting involves establishing agreement

on expenditures of resources, time and money and clarifying each other’s expectations.

Diagnosis represents assessing the whole situation by gathering information through interviews,

questionnaires, observation, organisation records and documents etc. and making a clear picture

of the situation. Feedback includes providing the analysed and relevant information to the client

and client’s exploring this information for clarification, accuracy, better understanding of the

whole picture of situation, related problems or unrealized opportunities. Planning change is a

decision-making phase which involves client’s deciding about actions to be taken. Different

possibilities are explored and assessed and plans for action are selected on the basis of

information client has learnt through feedback provided by consultant. Intervention is

implementing the set of activities designed to realize the opportunities or correct the problem.

Evaluation involves assessing the results/ impacts of OD programmes i.e. what changes have

occurred? Are these results or changes satisfactory? What is the success rate? What was the

causal mechanism?

It is worth mentioning here that as each phase builds foundation for next phase, there is a need

to exercise much care and precision during execution of each phase. For example, if data is not

properly gathered or analysed during diagnosis phase, then actions taken to correct problems

may prove inappropriate. Thus, to manage an OD process/ programme well is to execute each

phase well.

6. Critical Activities or Focus Areas to Manage OD Process

Cummings and Worley emphasized on effective change management for managing OD process

and for this, they focused on five set of activities: (i) motivating change (ii) creating vision

(iii) developing political support (iv) managing transition and (v) sustaining momentum.

The first step is to make people realize the need for change in the best interest of them and

organisation itself. People accept change when efforts are made to create readiness to change

and to overcome resistance to change. The readiness to change can be created by (i) sensitizing

people about pressures for change i.e. need to move from undesirable state of affairs to

desirable state of affairs and (ii) communicating the other advantages of change. Next,

resistance to change can be minimized by involving organisation members directly in planning

and executing change and dealing empathetically with the feelings of anxiety or fear of losing

position.

Creating a vision involves providing picture of the future and explaining position as well as role

of individuals and groups. Well defined visions help in developing confidence of organisation

members, reduce uncertainty and serve as goals towards which organisation members can

channel their energies.

Developing political support means convincing influential individuals and groups that change

efforts should be taken in a positive way. These powerful individuals and groups are termed as

key players/ stakeholders whose support is considered essential for success. The key players are

persuaded to support change by ensuring benefits of change for them and safeguarding their

interest to a great extent.

Managing the transition is extremely important. The transition state requires three set of

activities (i) activity planning (ii) commitment planning and (iii) management structures.

Sequence of activities or events is decided under activity planning. The plan made for transition

phase act as guiding map for organisation members and instrument for measuring progress.

Commitment planning means making plans to get support of key players in terms of their

leadership, resources and energy for successful transition. Management structures represent

setting up parallel learning structures to initiate, monitor and facilitate change. Lastly,

Cummings and Worley suggested few methods like developing new competencies and skills,

providing resources for change, reinforcing new behaviours for sustaining momentum or to

complete the change.

7. Parallel Learning Structures

Parallel learning structures act as devices for introducing and managing change in large scale

organisations. Bushe and Shani developed ‘ generic parallel learning structure intervention

process’ as shown in Table 1 This process helps in understanding various activities essential for

better management of OD process.

Table 1

The Generic Parallel Learning Structure Intervention Process

Phase1 Initial definition of Purpose and Scope

Phase2

Formation of Steering Committee

Re-examining the need for change

Creating a vision statement

Defining boundaries, strategies, expectations and rewards

Phase3 Communicating to organisation members

Phase4

Formation and development of Study Groups

Selecting and developing internal facilitators

Selecting study group members

Study group development

Establishing working procedures and norms

Phase5 Inquiry process

Phase6 Identifying potential changes

Phase7 Experimental implementation of proposed changes

Phase8 System wide Diffusion and Evaluation

Source : Gervase R. Bushe and A.B.Shani, Parallel Learning Structures, Addison- Wesley Publishing

Company, (1991), p.125

For any OD programme to be successful, there is a need to manage the whole OD process.

Management is a continuous activity. For effective management of OD process, it must be

ensured that (i) OD programme is supported by management and organisation members, (ii)

programme fits in organisation’s priorities, (iii) interventions are instrumental to attain OD

goals and (iv) programme is making desired progress. Equal importance should be given to

basic components of OD programme as explained earlier. Further, there is a need to develop a

culture of mutual trust and open communication.

8. Summary

OD process implies sequence of activities undertaken to transform behaviour, thought or

systems throughout the organisation. The OD process/ programme has three major components

i.e. diagnosis, action and effective programme management. Diagnosis refers to collecting data

about organisation’s total system, its processes and culture. Action, also called as intervention,

consists of set of activities designed and implemented to improve organisation’s functioning.

The programme management includes, inter alia, planning, execution and evaluation of various

activities initiated to produce change or improve organizational effectiveness. OD process

management consists of diagnosis – intervention/ action – evaluation – action and is a

complicated process in practice.

Marvin Weisbord’s six-box model is a popular diagnostic tool used by OD practitioners. It

helps in learning where to look and what to look while diagnosing organizational problems.

Weisbord emphasized that things must go right in six critical areas viz. purposes, structure,

rewards, supportive mechanisms, relationships and leadership for ensuring organisation’s

success. A thorough diagnosis of six areas will help in choosing appropriate OD interventions.

OD interventions lead to organizational improvement through correction actions/ interventions,

enabling actions, alignment interventions and new vision supporting interventions. Selection of

appropriate intervention is necessary for making optimum use of organizational resources i.e.

money, time and energy and for boosting the morale of all the persons involved. Leadership

climate, organizational culture and formal organisation may act as barriers to successful

interventions.

Cummings and Worley emphasized on effective change management for managing OD process

and for this, they focused on five set of activities: (i) motivating change (ii) creating vision (iii)

developing political support (iv) managing transition and (v) sustaining momentum.

References

1. James L. Gibson, John M. Ivancevich, James H. Donnelly, Jr., Organisations – Behavior, Structure, Processes,

Richard D. Irwin Publisher, Eighth Edition.

2. Marvin R. Weisbord, ‘Toward Third- Wave Managing and Consulting,’ Organisational Dynamics (1987)

3. Richard Beckhard, Organisation Development: Strategies and Models , Addison- Wesley Publishing Company

(1969)

4. T.G. Cummings and C.G. Worley, Organisation Development and Change, West Publishing Company (1993)

5. W.W. Burke, Organisation Development: A Process of Learning and Changing, Addison- Wesley Publishing

Company (1994)

6. Wendell L. French, Cecil H. Bell, Jr., Veena Vohra, Organisation Development , Pearson Education, Sixth Edition