Lecture Notes of Dr. V.C.Binghay 1
Dr. Virgel C. BinghaySchool of Labor & Industrial Relations, University of the Philippines, Diliman
Lecture Notes of Dr. V.C.Binghay 2
Dr. Virgel C. Binghay
Associate Professor & Director, Center for Industry Productivity & Competitiveness, U.P. School of Labor & Industrial Relations
Tel. #: 661-1488
Mobile Phone: 0917-8487428
E-mail: [email protected]
Website: www.virgelcbinghay.com
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Topic Outline• Nature of OD• Definition of OD• Contractual Relationship• Change Agent• Sponsoring Organization• Applied Behavioral Science• OD Process• Systems Context• Improved Organizational
Performance
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• Organizational Self-Renewal• Understanding Organizations• Modern Development in OD• Action Research• OD Interventions• Types of Organizational Change• Reactions to Change• Resistance to Change• Methods of Addressing Resistance
to Change• Process of Planned Change• Workshop• Recap & Integration
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Nature of Organization Development
Is a planned, organization-wide effort to increase organization’s effectiveness & viability
A response to change
A complex organizational strategy to change the beliefs, attitudes, values, & structure of organization
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A change process designed to bring about a particular kind of end result
Can involve interventions in the organizations processes
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Uses behavioral science as well as organizational reflection, system improvement, planning, and self analysis
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Definition of OD
OD is a contractual relationship between a change agent & a sponsoring organization entered into for the purpose of using applied behavioral science and/or other organizational change perspectives in a systems context to improve organizational performance & the capacity of the organization to improve itself.
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OD is aimed at:• Enhancing congruence among
organization structure, process, strategy, people, & culture
• Developing new & creative organizational solutions
• Developing the organization’s self-renewing capacity
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Emergence of OD
• The need for organizational reforms
• The focus on cultural change
• The increase in social awareness
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Reasons for Undergoing OD
• Competition
• Survival
• Improved Performance
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OD Values
• Respect for People
• Trust & Support
• Power Equalization
• Confrontation
• Participation
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Contractual Relationship
Neither the sponsoring organization nor the change agent can be sure at the outset of the exact nature of the problem/s to be dealt with or how long the change agent’s help will be needed, it is essential that some tentative agreement on these matters be reached.
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Sponsoring organization needs to know change agent’s:
preliminary plan
commitments & responsibility for the program
fees
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Change agent must assure himself/herself that the organization’s particularly the top executives’ commitment to change is strong enough to support the kind of self-analysis and personal involvement requisite to success of the program.
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Change Agent
In OD, change agent is not a technical expert in such functional areas as accounting, production or finance
Is a behavioral scientist who knows how to get people in an organization involved in solving their own problems
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Strength is a comprehensive knowledge of human behavior, supported by a number of intervention techniques
Can be either internal or external to the organization
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Change Agent
• External Change Agent
• Internal Change Agent
• External-Internal Change Agent Team
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Sponsoring OrganizationThe initiative for OD programs comes from an organization that has a problem.
This means that top management is aware that a problem exists and has decided to seek help in finding a solution to his/her problems.
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Applied Behavioral Science
Using theory and methods drawn from such behavioral sciences (industrial relations, psychology, sociology, anthropology, political science, economics, administrative theory, organizational behavior), the change agent’s main function is to help the organization define and solve its own problems.
Method used – “Action Research”
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OD PROCESS
1. Preliminary Diagnosis
2. Collecting Data
3. Feedback of the Data to the Client
4. Data Exploration by the Client Group
5. Action Planning based on the Data
6. Taking Action
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Systems Context
OD deals with a total system – the organization as a whole, including its relevant environment – or with a subsystem or systems – departments or work groups – in the total system
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Parts of system (like individuals, cliques, structures, norms, values, and products) are not considered in isolation
Principle of interdependency
OD interventions focus on total culture and cultural processes of organizations
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Improved Organizational PerformanceImprove organization’s capacity to
handle its internal and external functioning and relationships such as:
Improved interpersonal & group processes
More effective communication
Enhanced ability to cope with organizational problems of all kinds
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More effective decision processes
More appropriate leadership style
Improved skill in dealing with destructive conflict
Higher levels of trust and cooperation among organizational members
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These objectives stem from a value system based on an optimistic view of the nature of people – that people in a supportive environment are capable of achieving higher
levels of and accomplishment.
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Essential to OD & effectiveness is the
scientific method – inquiry,
a rigorous search
for causes, experimental testing of hypotheses, and review of
results
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Organizational Self-Renewal
The ultimate aim of OD is to “work themselves out of a job” by leaving the client organization with a set of tools, behaviors, attitudes, and an action plan with which to monitor its own state of health and to take corrective steps toward its own renewal and development.
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Understanding OrganizationsWeisbord’s six-box model for
understanding organization:1. Purposes2. Structure3. Relationship4. Rewards5. Leadership6. Helpful Mechanism
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Purposes: The organization members are clear about the organization’s mission and purpose and goal agreements, whether people support the organization’s purpose.
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Structure: How do we divide up the work? The question is whether there is an adequate fit between the purpose and the internal structure.
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Relationship: Between individual, between units or department that perform different tasks, and between the people and requirements of their job.
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Rewards: The change agent should diagnose the similarities between what the organization formally reward or punished for doing.
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Leadership: Is to watch for blips among the other boxes and maintain balance among them.
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Helpful Mechanism: organization must attend to order to survive – like: planning, control, budgeting, information, and other systems that help organization member accomplish.
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Modern Development
Reinventing OD to manage change in modern organizations
Emotion-based standpoint – how emotional trauma can negatively affect performance
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Downsizing, outsourcing, mergers, restructuring, continual changes, invasions of privacy, harassment, and abuses of power, many employees experience the emotions of aggression, anxiety, apprehension, cynicism, and fear, which can lead to performance decreases.
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OD practitioners must acknowledge the existence of trauma, provide a safe place for employees to discuss their feelings, symbolize the trauma and put it into perspective, and then allow for and deal with the emotional responses.
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Action Research
OD as organization improvement through action research
If people are active in decisions affecting them, they are more likely to adopt new ways.
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Rational social management proceeds in a spiral of steps, each of which is composed of a circle of planning, action, and fact-finding about the result of action.
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Process of change involves three steps:
1. Unfreezing
2. Changing
3. Refreezing
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Unfreezing: Faced with dilemma or discomfort, the individual or group becomes aware of the need to change.
Changing: The situation is diagnosed and new models of behavior are explored and tested
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REFREEZING: Application of new behavior is evaluated, and if reinforcing, adopted.
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OD Interventions
“Interventions” are central learning processes in the “action” stage of ODThey are structured activities used individually or in combination by the members of the client system to improve their social or task performance.
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They may be introduced by a change agent as part of an improvement program, or they may be used by the client following a program to check the state of the organization’s health, or to effect necessary changes in its own behavior.
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“Structured Activities” mean such diverse procedures as experiential exercises, questionnaires, attitude surveys, interviews, relevant group discussions, and even a lunch meetings between the change agent and a member of the client organization.
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Every action that influences an organization’s improvement program in a change agent-client system relationship can be said to be an intervention.
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There are many possible intervention strategies from which to choose. Several assumptions about the nature and functioning of organizations are made in the choice of a particular strategy.
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SIX ASSUMPTIONS OF HEALTHY ORGANIZATIONS
1)The basic building blocks of an organization are groups (teams). Therefore, the basic units of change are groups, not individuals.
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2) An always relevant change goal is the reduction of inappropriate competition between parts of the organization and the development of more collaborative condition.
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3) Decision making in a healthy organization is located where information sources are, rather than in a particular role or level of hierarchy.
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4) Organizations, subunits of organizations, and individuals continuously manage their affairs against goals. Controls are interim measurements, not the basis for managerial strategy.
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5)One goal of a healthy organization is to develop generally open communication, mutual trust, and confidence between and across levels.
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6)People support what they help create. People affected by a change must be allowed active participation and a sense of ownership in the planning and conduct of change.
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CATEGORIES OF INTERVENTIONS:
Interventions range from those designed to improve the effectiveness of individuals through those designed to deal with teams and groups, inter-group relations, and the total organization.
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There are interventions that focus on task issues (what people do), and those that focus on process issues (how people go about doing it).
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Interventions may also be classified according to which change mechanism they tend to emphasize: for example, feedback, awareness of changing cultural norms, interaction and communication, conflict, and education through either new knowledge or skill practice.
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A CHALLENGE OF CHANGE AGENT:
“To help create in a client system a climate for learning and change.”
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Some of the things that will help Change Agents:
1. A real need in the client system to change
2. Genuine support from management
3. Setting a personal example: listening, supporting behavior
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4. A sound background in behavioral sciences
5. A working knowledge of systems theory
6. A belief in people as rational, self-educating being fully capable of learning better ways to do things
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Effective intervention depends on: • The extent to which it fits the needs
of the organization;
• The degree to which it is based on causal knowledge of intended outcomes; and
• The extent to which it transfers change management competence to organization members
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Few Examples of Interventions
TrainingTeam BuildingCoachingCounselingMentoringLarge Group InterventionsPerformance ManagementDownsizing/RightsizingSuccessionLeadership Development
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Job Evaluation
Role Analysis
Socio-Tech
Structural
Management Development
Rewards Management
Group Dynamics
Competency-based Selection
Labor-Management Councils
Grievance Handling
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Types of Organizational Change
Strategic Changes
Technological Changes
Structural Changes
Changing the Attitudes & Behaviors of People
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Reactions to Organizational Change
Enthusiasts
Followers
Objectors
Underground
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Top 2 Reasons for Employee Resistance
1. A lack of awareness about the change
2. Comfort with the ways things are and fear of the unknown
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Top 10 Reasons Employees Resist Change1. Individual’s personal predisposition to
change2. Surprise & fear of the unknown3. Climate of mistrust4. Fear of failure5. Loss of status &/or job security6. Peer pressure7. Disruption of cultural traditions &/or
group relationships8. Personality conflicts9. Lack of tack &/or poor timing10.Not seeing the benefits
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Methods of Overcoming Resistance to Change
Education
Participation
Negotiation
Cooptation
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Process of Planned Change
Assess external environment
Specify objectives to be achieved
Assess current organization and its history
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Articulate & communicate a vision for the future
Design a strategic plan
Implement targeted change efforts
Evaluate, revise, and refocus
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Strategies to Change
• Structural Strategy
• Technological Strategy
• Behavioral Strategy
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Structural Strategy
- An attempt to change organization’s design by modifying the lines of authority, span of control, & agreement of work functons
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Technological Strategy
- The use of new technologies to bring an organization up to the state of the art machinery, methods, automation, & job design
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Behavioral Strategy
- Focuses on human resources; it aims to increase the morale, motivation, & commitment of members to improve organization performance.
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