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
UR
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OD
PR
AC
TIC
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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
Th
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gru
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Mo
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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