OD

ORGANIZATIONAL DEVELOPMENT

Contents

Understanding OD Definitions History Underlying Assumptions & Values

What is OD? Essar Group- Institutionalizing a Coaching

Culture LSIP

Definitions

Definitions OD is an effort 1) planned, 2) organization wide & 3)

managed from the top to, 4) increase organization effectiveness and health through 5) planned interventions in the organization’s “processes”, using behavioral–science knowledge (Beckhard, 1969)

O.D may be defined as a systematic, integrated and planned approach to improve the effectiveness of an enterprise. It is designed to solve problems that adversely affect the operational efficiency at all levels (Koontz,1980)

OD is a planned process of change in an organization’s culture through the utilization of behavioral science technologies, research and theory (Burke, 1994)

Definition – French & Bell (Pg 26-29) OD is a long-term effort, led & supported by top

management, to improve the organization’s visioning, empowerment, learning and problem-solving process, through an on-going, collaborative management of organization culture – with special emphasis on the culture of intact work teams & other team configurations – using the consultant-facilitator role & the theory and technology of applied behavioral science, including action research.

Characteristics of OD Focuses on culture & processes Encourages collaboration between leaders & other

employees in managing culture & processes Teams are the target of most OD activities Focuses on the Human & Social side of orgn Participation in problem solving & decision making

by all levels Views organizations as complex social systems Its goals is to make the orgn solve its own problems

through self-analysis Developmental view for betterment of both

individuals & the orgn

History

The 4 Stems of OD (Old)

Innovation in application of Laboratory Training

Survey Research and Feedback Methodology

Tavistock Sociotechnical and Socioclinical Approach

Action Research

1. The Laboratory Training System

T GROUP – Learn from their own interactions A small, unstructured group in which participants learn from their own

interactions & evolving dynamics about issues such as interpersonal relations, personal growth, leadership & group dynamics

Founded by Research Centre for Group Dynamics (RCGD) in 1945 by Kurt Lewin

Later contribution by Kurt Lewin, Kenneth Benne and Leland Bradford. (leaders of learning group)

Added methods like role-plays and flip charts Evolved into NTL – National Training Laboratory This type of method used in adult education and group therapy.

Psychodrama Exercises - Imagery Exercise 1: "Imagine a person with whom you have some

unfinished business. If you remember two flip a coin in your mind to pick one." Help any group member who is having difficulty identifying someone. "Imagine yourself facing that person. Notice the shape of their face, their expression, their posture, what they are wearing, etc. (go through the five senses to set the scene). Talk to that person or allow them to talk to you."

Exercise 2:Pictures at an Exhibition "Allow a memorable portrait to come in to your mind. Let it emerge on the wall of your mind. What are you feeling as it is emerging? Who is in it? What kind of frame does it have? Is your place in the picture or outside of it? As it becomes clearer what kind of feelings are you having? Role reverse and speak for each person in the portrait. Choose group members to represent the people in your portrait and arrange them. What would you like to change in your portrait?"

Psychodrama Exercises - Structured Action Spectrogram: "Arrange yourself across the room in

terms of how into the treatment program (this group) you are now with this wall representing being very into it and this opposite one representing being very much out of the program (or group)." Allow each member take a position and state the reason for their choice of position. Observe commonalities and themes.

Human Map: "Rearrange yourselves spatially around the room to show where you were born. This way is North, this way South, and East, and West. Talk with each other to find your right place. Now move to where you were before you arrived here." The director now can work with one specific person and let them tell how they got to where they are now. Questions like "what significant things are happening there," or "what are you feeling like there," or "who did you leave behind" can lead into a psychodramatic enactment.

Contributions in Laboratory training system

ROBERT TANNENBAUM Took sessions on team building Used vertically structured groups i.e. with all managers

of a given work unit present for personal and organisational topics

CHRIS ARGYRIS First to conduct team building sessions for CEO and Top

executive teams. Worked with renowned members of National Training

Laboratory (NTL) and himself contributed to laboratory training

Contributions in Laboratory training system

DOUGLAS MCGREGOR Helped in application of T-Group skills to complex

organisations. Used behavioural science knowledge to help line

managers be more effective in groups..

HERBERT SHEPARD & ROBERT BLAKE Used a combination of the case method, exrecises &

lectures with the lab method Focused on inter-group as well as interpersonal relations

e.g. inter-functional problem solving Rejected the stranger-type labs to inter-group projects

Contributions in Laboratory training system

ROBERT BLAKE & JANE MOUTON Developed the Managerial Grid Focused on system rather than individuals within

tehsystem

2. Survey Research & Feedback Stem

Techniques and approach developed by staff members at the Survey Research Center of the University of Michigan over a period of years.

They discovered that research needed to be closely linked to action if the organization members were to use it to manage change

A key component of most action research was studies was the systematic collection of survey data that was fed back to the client organization

The findings are first reported to top management & then communicated through the organization

The feedback sessions were conducted in task groups with bosses & subordinates discussing the data together

ContributorsRENSIS LIKERT Techniques for the measurement of attitudes. Used five – point Likert scale

ContributorsFLOYD MANN, RENSIS LIKERT Evolution of the survey-feedback

methodology Change occurred when managers shared

survey results with subordinates and planned improvement actions with them

3. Action Research Stem

Preliminary Diagnosis

Data Gathering from client

Data feedback to the client

Data Exploration

Action Planning by client group

4. Sociotechnical & Socioclinical stem Provided psychotherapy based on psychoanalytic

theory Integrates social requirements of employees with

technical requirements needed to do work in provided environment

Contributors W R Bion, John Rickman

o Group therapyo Experiment on soldiers

Eric Tristo Coal mine – where he applied the concept of leaderless groups &

encouraged miners to form teams and run all processes rather than the traditional assembly–line structure

o Work redesign & semi autonomous work teams Tavistock

o Included the non executive ranks of orgn, with greater focus on teams

o Use of action research & greater participation

The 5 Stems of OD (New)C

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OD

PR

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1970 1980 1990 2000 TODAY19601950

Laboratory Training

Action Research/ Survey Feedback

Normative Approaches

Quality of Work Life

Strategic Change

Second Generation of OD

1. Interest in Organizational Transformation

2. Interest in Organizational Culture

3. Interest in Learning Organizations

4. Intensified interest in teams

5. TQM

6. Interest in visioning

7. Large Meetings

8. Quality of work life programmes

9. Valuing Diversity

10. Appreciative Inquiry

Assumption & Values in OD

Underlying Assumptions The basic building blocks of orgns are groups, therefore the

basic units of change are groups, not individuals Orgns can benefit from reducing inappropriate competition

between parts of an organization & developing more collaborative conditions

Decision making in healthy organizations is located where the information sources are, rather than in a particular role/ hierarchy

Orgns/ depts & individuals, manage their affairs against goals Healthy orgns develop open communication, mutual trust &

confidence between & across levels People support what they help create – people must be

allowed to participate in planning & driving change to build a sense of ownership

Underlying Values Individual is and should be more independent and

autonomous. Individual has and should have choice with regard to his work

and leisure. Once the basic needs are met, Individuals strive for realizing

self worth and their potential Where individual needs are in conflict with organizational

requirements, individual perhaps would choose to meet his own needs rather than submerge them in organization’s needs.

Work should be made meaningful and stimulating thus providing for intrinsic rewards in addition to adequate extrinsic rewards.

Managers should manage by influence than through force or reward power. The power vested in bosses is and should be reduced

Implications in dealing with Individuals

Assuming that a) people drive towards personal growth & development, if provided with an environment that is supportive & challenging & b) can contribute much more than orgns environments permit, then:

Orgns need to support, challenge, listen, give greater autonomy, permit greater risks & failures and reward success for much higher results

Implications in dealing with GroupsAssuming that a) people’s immediate work group i.e. peers & boss, greatly influence feelings of satisfaction & competence b) most people wish to interact with & be accepted by their reference groups then:

Orgns must a) let teams flourish b) leaders should invest in group development & creating a positive climate c) leaders must develop a team leadership style not a one-on-one style

Implications for running the OrgnAssuming that needs & aspirations of human beings are the reasons for organized effort in society then:

Orgns must have an developmental outlook & help people experience personal & professional growth

Salient issues in OD The OD effort should begin at the top level of the

management and permeate the organization till it reaches the lower levels.

The external consultant helps in problem identification, problem solving and implementing action plan without creating dependency needs in the client system. In other words, the external agent helps the client to help himself so that the latter develops ability to function independently

The client is either a particular target group or the total organization. Either of them as the client system has varying implications for OD effort.

Identifying the needed change depends upon determining the nature and type of the problem within the organization. This may be done in terms of diagnostic studies that also tap the felt needs among employees

Salient issues in OD Identifying and defining the problem as accurately as

possible is a must as it determines the rest of the activity such as the appropriate intervention techniques, support from the client group and evaluation of the effectiveness of OD effort

The change may occur in individual behaviour, organizational behaviour or both. Some of the intervention techniques are applied at individual level, and the others at the organizational level.

While the earlier approaches have concentrated on individual changes, the present trend emphasizes on the holistic approach of dealing with groups or teams

However, there is no one best way to intervene. Hence, intervention techniques appropriate to problems at hand should be employed

Theories of Planned Change

Effective Management of Change

‘An effective manager...: anticipates the need for change as opposed to reacting after the event to the emergency; diagnoses the nature of change that is required and carefully considers a number of alternatives that might improve organisational functioning, as opposed to taking the fastest way to escape the problem; and manages the change process over a period of time so that it is effective and accepted as opposed to lurching from one crisis to another.’

(Pugh, D. (1993). Understanding and managing change. In Maybey, C. and Mayon-White,

B. (Eds.) Managing Change, Second edition. London, P.C.P.).

Lewin’s Change Model

UNFREEZING

Resistance to change lessened, need for change created(Equilibrium disturbed)

MOVING

From old behaviourto the new(Changes)

REFREEZING

Change made permanent

Lewin’s Change Model Stage 1:Unfreezing ‘Shaking up’ Disconfirmation of old ways of doing things Questioning & challenging of established wisdom Arouse dissatisfaction with the current state. Activate and strengthen top management support. Use participation in decision making. Build in rewards.

Lewin’s Change Model Stage 2: Moving/ Changing

Making the actual changes to move to the new state of existence

Includes the development of new strategies, structures, systems & responsibilities and the shedding of old ones

Establish goals Institute smaller, acceptable changes that reinforce

and support change Develop management structures for change Maintain open, two-way communication

Lewin’s Change Model Stage 3: Refreezing Stabilizing, institutionalizing the changes. Making sure the organisation doesn't go backwards to the old

state Reinforcement of the changes through symbols, such as

changed logos, dress, building design, structures Build success experiences. Reward desired behaviour. Develop structures to institutionalize the change. Make change work The term “Re-freezing” may not be appropriate in an era of

continuous change, so maybe this stage involves something more like stabilising.

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.

Later Ronald Lippitt, Jeanne Watson and Bruce Westley expanded this model into a seven-stage model representing the consulting process

Action Research Model

Feedback to ClientData gathering after action

Problem Identification

Joint action planningConsultation with a behavioral scientist

Data gathering & preliminary diagnosis

Joint diagnosis

Action

The Positive Model

Initiate the Inquiry

Inquire into Best Practices

Discover the themes

Envision a preferred Future

Design and Deliver

The Burke-Litwin Model of Organizational Change

Change

First order change (Transactional change)

Second order change (Transformational change)

OD interventions that are directed towards structure, management practices, and systems (policies & procedures) result in first order change.

OD interventions that are directed towards mission and strategy, leadership, and organization culture result in second order change.

Transformational factors

Transactional factors

The Burke-Litwin 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

Porras & Robertson Model of Organizational Change

Organizing arrangementsGoals, strategies, structure, policies, procedures

Social FactorsCulture, management style, informal networks, individual attributes

Physical SettingsSpace configuration, physical ambiance

TechnologyMachinery, tools, IT, job design

Porras & Robertson Model of Organizational Change

Systems Theory Organizations are open systems All open systems are input-throughput-output mechanisms

Inputs: information, money, people, raw material , etc. Throughput: Working on the inputs through conversion process that

transform the inputs Output: performance, the end product exported to the environment

Every system has a boundary, but in open systems these are permeable i.e. they permit the exchange of info/ resources & energy between the system & the environment

Therefore any change within the organization or in its environment will impact the entire system.

Thus when a change is desired, it is essential to consider every element in the system & ensure alignment of all elements

Systems TheoryOrganizations are open systems in active exchange with their environment

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Systems Theory

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.

ADKAR Change Model Awareness of the need for change Desire to make the change happen Knowledge about how to change Ability to implement new skills and behaviours Reinforcement to retain the change once it

has been made

ADKAR Change Model in Action

Post Implementation

Implementation

Concept and Design

Business Need

Awareness Desire Knowledge Ability Reinforcement

Phases of Change for Employees

Phas

es o

f a C

hang

e Pr

ojec

t Successful

Change

ADKAR Awareness of the need for change.

What is the nature of the change? Why is the change happening? What is the risk of not changing?

Desire to support the change. Personal motivation to support the change Organizational drivers to support the change

Knowledge on how to change. Knowledge, skills and behaviors required during and after the change Understanding how to change

Ability to implement new skills. Demonstrated ability to implement the change Barriers that may inhibit implementing the change

Reinforcement to sustain the change. Mechanisms to keep the change in place Recognition, rewards, incentives, successes

Exercise: Applying ADKAR Group 1: You wish to introduce a new

Software system in your college to allow all students & their parents to see curriculum/ marks/ assignments etc. Management thinks it’s a waste of money.

Group 2: You wish to introduce 2 new HR subjects for additional learning. The management sees this as extra burden on finances.

General Model of Planned Change

EvaluatingandInstitutionalizingChange

PlanningandImplementingChange

DiagnosingEnteringandContracting

Action Research using Lewin Model

ORGANIZATIONAL DIAGNOSES

Diagnoses Using Open SystemsCharacteristics Of Open Systems All open systems are input-throughput-output

mechanisms Inputs: information, money, people, raw material , etc. Throughput: Working on the inputs through conversion

process that transform the inputs Output: performance, the end product exported to the

environment

Boundaries: Defining boundaries is difficult due to continuous inflow &

outflow Open systems have multiple sub-systems. As an OD

consultant the boundaries for diagnosis keep changing

Diagnoses Using Open SystemsCharacteristics Of Open Systems Feedback

All information is not feedback Only info used to control the future functioning of the orgn is

considered feedback Feedback helps to diagnose the current state and those aspects that

are required to change

Equifinality: In closed system s, there is a direct cause effect relationship between

initial condition & final output In open systems similar output may be achieved with different initial

conditions and by using different methods Therefore the OD consultant needs to develop multiple alternatives

Diagnoses Using Open SystemsCharacteristics Of Open Systems Alignment

A system’s effectiveness depends on the degree to which the different sub-systems are aligned with each other

Therefore the OD consultant needs to look at the whole system

Levels of Diagnosis At an Overall Organization Level i.e. Company

strategy, structure & process At the level of business units, divisions, subsidiary

companies At a departmental level AT an individual level

Organization Level Diagnosis Using Open Systems Method The key is to know for what to look for at each level. Organization Design Group Design Job

Design The degree of alignment among the different elements will

impact the effectiveness of the organization's current strategy

Levels of Diagnosis Organization Level: Ask questions around: Input: General Environment, Industry Structure Design Components: Strategy, Structure, Technology, HR Systems,

Measurement Systems, Culture Output: Organization Effectiveness i.e. Performnace, Productivity, Share

price, etc.

Organization Level Diagnosis Using Open Systems Method (Contd.) Group Level : Ask questions around:

Input: Organization Design Design Components: Task Structure, Goal Clarity, Team functioning,

Performance Norms, Group Compositions Output: Team Effectiveness i.e. Quality of work life, team performance

Individual Level: Ask questions around: Input: Organization Design, Group Design, Personal Characteristics Design Components: Task Identify, Skill variety, Autonomy, Feedback

on results, Task significance Output: Individual Effectiveness i.e. Job satisfaction, performance,

absenteeism, personal development, etc.

Diagnosis – The Six-Box Model

Leadership

Purposes

Relationships

HelpfulMechanisms

Rewards

Structure

Environment

Marvin Marvin Weisbord identifies six critical areas where things must go right if organisation is to be successful. According to him, the consultant must attend to both formal and informal aspects of each box.

Data Collection Methods Questionnaire Interviews Observation Unobtrusive Methods

1. Questionnaires Could use standardized tools which provide more valid and

reliable data Or customized instruments designed by a consultant for a

specific client

2. Interviews Could be unstructured, using broad questions about organizational functioning as a

whole Could be highly structured, using guided questions which are very specific Could be individual or group interviews. A popular type of group interview is the focus

group or sensing meeting – whch is used to understand a particular issue in greater depth

3. Observations A direct way of collecting data is by observing organizational

behaviours in their functional settings Can be done by walking through, becoming a part of a work

team or may use videos or tapes.

4. Unobtrusive measures Data not collected directly from respondents, but from

secondary sources like company records & reports e.g. attrition, productivity, profitability, processes, etc.

Techniques for Analyzing DataQUALITATIVE TECHNIQUES Content Analysis: Identifying recurring themes in

the data Force Field Analysis: Involves listing all the forces

promoting the change & those resisting it and then identifying the most powerful among both categories, through a ranking or rating system.

Force Field Analysis Example

Techniques for Analyzing DataQUANTITATIVE TECHNIQUES Means, Standard Deviations & Frequency

Distribution Scattergrams & Correlations Difference tests: Used to compare the sample group

against a standard norms

OD INTERVENTIONS

Types of InterventionsHuman Process Interventions

Coaching Training & DevProcess ConsultationThird – Party InterventionTeam Building

Technostructural Interventions

Structural Design Downsizing Reengineering

HR Mgmt. Interventions

Goal Setting Performance Appraisal Reward Systems

Strategic Interventions

Integrated Strategic Change Merges & Acquisitions Alliances NetworksCulture Change Self Designing Orgns Orgn Learning & Knowledge Mgmt.

COACHING

Climate of trust

Inspiring workplace

Delighted stakeholders

A sense of pride

Coaching is a process

where leaders help

others to develop their

capacity to learn,

perform and create the

future they truly desire.

The Preferred Future

Help others to develop

and grow

Increase our

effectiveness as a leader

Building the community of leaders

Principles of Coaching

A coach does not give solutions to the coachee

It is the coachee and not the coach who does most of the work in coaching

The coachee must be given a trusting, conducive and warm environment where he or she can speak his /her mind freely

The coach only ASKS… never tells

Topic of discussion

Specific objectives

Set long term aims

Invite self

assessment

Offer specific

examples for

feedback

Avoid/check

assumptions

Discard irrelevant

history Cover the full range of

options

Invite suggestions from

coachee

Offer suggestions

carefully

Ensure choices are made

Commit to action

Identify possible

obstacles

Make steps

specific and define

training

Agree support

GROW ModelStep 1: GOAL

Agree the focus and specific objectives for the conversation

Step 2: REALITY What is current situation What has contributed to current situation

Step 3: OPTIONS Explore possible solutions or next steps. Potential road blocks and unintended consequences What additional resources or assistance would be required

Step 4: WRAP UP What are they going to do Get a commitment to action from the mentee. Plan for possible obstacles.

75© 2009 Skye Associates LLC Sir John Whitmore, Coaching For Performance

PROCESS INTERVENTIONS

What is Process Consultation? Deals primarily with interpersonal & group

processes It attempts to describe, how organizational

members interact with each other May address issues of how people

communicate, how they take decisions, what norms are developed, how authority is used in the group, etc.

Types of Process InterventionsIndividual Interventions May use psychological tests, feedback after

meetings, etc. Feedback is aimed at increasing individual

awareness of how their behavior affects others Possible tool: Johari Window

Types of Process InterventionsGroup Interventions Aimed at addressing process, content or structure of group

Process interventions: sensitize the group to its own internal processes; how they work together, intra group relationships, how problems are addressed and decisions are taken, etc.

Content interventions: help the group determine what they will work on. It includes goal setting & review processes, how new learning is incorporated in an on-going manner, etc.

Structural Interventions: Looks at inputs required, resources available, customer inputs, etc.

Third Party Interventions When a 3rd party in brought in to facilitate a

conflict between 2 parties

Leading & Managing Change Step 1: Motivate Change

Creating readiness for changeOvercoming resistance to change

Step 2: Creating a VisionDescribing the Core IdeologyConstructing the envisioned future

Step 3: Developing Political SupportAssessing Chnge Agent power Identifying key stakeholders Influencing stakeholders

Leading & Managing Change (Contd.) Step 4: Managing the Transition

Activity planningCommitment planningManagement Structures

Step 5: Sustaining MomentumProviding resources for changeBuilding a support system for change agentsDeveloping new competencies & skillsReinforcing new behaviorsStaying the course