Presentation on theme: "ORGANIZATIONAL DEVELOPMENT"— Presentation transcript:
1 ORGANIZATIONAL DEVELOPMENT Books to be Read:Organization Development – French & BellOrganization Development – V. G. KondalkarOrganization Development & Change – Cummings & WorleyOrganizational Development & Transformation- French, Bell & ZawackiProf. Jairaj KochavaraJuly 2010
2 ORGANIZATIONAL DEVELOPMENT Organizational Development or O.D. is a planned effort initiated by process specialists to help an organization develop its diagnostic skills, coping capabilities, linkage strategies( in the form of temporary and semi-permanent systems) and a culture of mutuality.A planned effort – thinking and planninginitiated by process specialistsDiagnostic skills- data collection-overtimeCoping capabilities-problem-solving,confront and copeLinking strategies-Indl.& Organl. GoalsCulture of Mutuality-OCTAPACE-fostering of certain values and open and proactive systems viz. openness,confrontation, trust, authenticity,pro-activeness, autonomy, collaboration and experimentation.
3 Definition of O.D.by Edgar Schein An organization is the planned coordination of the activities of a number of people for the achievement of some common explicit purpose or goals through the division of labour and function, and through a hierarchy of authority and responsibility. Development is the act, process, result or state of being developed-which in turn means to advance, to promote the growth of, to evolve the possibility of, to further, to improve or to enhance something Two elements stand out viz. (a)Development may be an act, process or an end state (b)Development means bettering something O. D. is the act, process or result of furthering,advancing, or promoting the growth of an organization
5 Inter-teams-inter face-manage conflicts, developing collaboration, attainment of goals.Organization-stable entity which sets the goals. To carry on theefforts begun by the outside consultant/ expert through aninternal O. D. Facilitator.From a Behavioural science perspective:‘O.D. is a long –range effort to improve an Orgn’s problem solvingand renewal processes, particularly through a more effective andcollaborative management of organizational culture with specialemphasis on the culture of formal work teams- with the assistanceof a change agent, or catalyst, and the use of theory and technologyof applied behavioural science including Action Research.’Renewal is the process of initiating , creating and confrontingneeded changes to make it possible for organizations to becomemore viable, to adapt to new conditions, to solve problems, to learnfrom experiences and to move towards greater maturity.
6 ORGANISATIONAL DEVELOPMENT O. D. is a systemic and systematic change effort, usingbehavioural science knowledge and skill, to transform an orgn.to a new state.O.D. is system-wide and value-based collaborative process ofapplying behavioural science knowledge to the adaptivedevelopment , improvement and reinforcement of suchorganizational features as the strategies, structures, processes,people and cultures that lead to organizational effectivenessThe characteristics of O. D. are:It is a system-wise processIt is value-basedIt is collaborativeIt is based on behavioural science knowledgeIt is concerned with strategies, structures, processes, peopleand culture6. It is about organizational effectiveness
7 ORGANIZATIONAL DEVELOPMENT Organizational Development is a long-term effort, led and supported by top management, to improve an organizational visioning, empowerment, learning, and problem-solving processes,through an ongoing, collaborative management of organizational culture- with special emphasis on the culture of intact work teams and other team configurations-using the consultant-facilitator role and the theory and technology of applied behavioural science, including action research.The important aspects include:Long-term effortLed and supported by top managementVisioning processes-viable, coherent and shared pictureEmpowerment processesLearning processesProblem solving processesOngoing collaborative management of the organizational cultureIntact work teams and other configurationsCross- functional teamsConsultant- facilitator roleTheory and technology of applied behavioural scienceAction research
8 “Organization transformation can occur in response to or in anticipation of major changes in the organization’s environment or technology. In addition these changes are often associated with significant alterations in the firm’s business strategy, which, in turn, may require modifying corporate culture as well as internal structures and processes to support the new direction. Such fundamental change entails new paradigm for organizing and managing organizations. It involves qualitatively different ways of perceiving, thinking, and behaving in the organizations.”Beer (1980), the aim of OD are (1) enhancing congruence between organizational structure, processes, strategy, people, and culture; (2) developing new and creative organizational solutions; and (3) developing the organization’s self-renewing capacity.
9 OD is a system wide application of behavioural science knowledge to the planned development and re-enforcement of organizational strategies, structures, and processes for improving an organization’s effectiveness (Cummings and Worley, 1993).“Organizational Development is a long-term behavioural philosophy initiated by the top management. It relates to use of latest technologies and organizational processes to affect planned change by establishing cultural framework based on vision, empowerment and employee well being leading to attainment of quality of work life and organizational effectiveness thus creating a learned organization.”
10 OBJECTIVES OF ORGANIZATIONAL DEVELOPMENT PROGRAMME Individual and group development.Development of organization culture and processes by constant interaction between members irrespective of levels of hierarchy.Inculcating team spirit.Empowerment of social side of employees.Focus of value development.Contd..
11 Employee participation, problem-solving and decision- making at various levels. Evaluate present systems and introduction of new systems thereby achieving total system change if required.Transformation and achievement of competitive edge of the organization.Achieve organization growth by total human inputs by way of research and development, innovations, creativity and exploiting human talent.Behaviour modification and self managed team as the basic unit of an organization.
12 Implications:For IndividualsMost individuals believe in their personal growth. Even today, training and development, promotion to the next higher position dominates the organization philosophy.Majority of the people are desirous of making greater contributions to the organizations they are serving. Achievements of organizational goals are however, subject to limitations or environmental constraints. It is for the organizations to tap the skills that are available in abundance.Contd..
13 This leads to adopt the following organization strategy for development: Ask questions to resolve doubts.Listen to superior’s advice.Support employees in their venture.Accept challenge.Leaders to encourage creativity and promote risk taking.Give additional responsibility to subordinates.Set high standards of quality.Empower employees.Initiate suitable reward system that should be compatible, if not more than the industry norms.
14 For GroupsOne of the most important factors in the organization is the ‘work group’ around whom the organization functions. This includes the peer group and the leader (boss)More people prefer to be part of the group because the group accepts them.Most people are capable of making higher contributions to the group’s effectiveness.Contd..
15 Following strategy is required to be adopted for group development based on the above assumptions: Invest in training and development of the group. Money and time spent on this is an investment for the organization. Leaders should also invest in development of skills and thus help create a position organizational climate.Let the team flourish. Teams are the best approach to get the work done. Apart from the above teams enjoy emotional and job satisfaction when they work in groups.Leaders should adopt team leadership style and not autocratic leadership style. To do this, jobs should be allotted to the team and not to the individual.Contd..
16 It is not possible for one individual (leader) to perform both, the leadership and maintenance functions. It is therefore necessary for team members to assist leader in performance of his duties.Group should be trained in conflict management, stress management, group decision-making, collaboration, and effective interpersonal communication. This will improve organizational effectiveness. Empowerment is the corner stone of the successful organizations.Leaders should pay particular attention to the feelings of the employees. It should be understood that suppressed feeling and attitudes adversely affect problem-solving, personal growth and job satisfaction.Development of group cohesiveness.
17 For OrganizationsCreate learning organization culture.Adopt win-win strategy for sustained growth.Create cooperative dynamics rather than competitive organizational dynamics in the organization.Needs and aspirations of the employees in the organization must be met. This leads to greater participation of the employees. Organizations should adopt developmental outlook and seek opportunities in which people can experience personal and professional growth. Such orientation creates a self-fulfilling prophecy.Contd..
18 People must be treated with due respect and considered important People must be treated with due respect and considered important. The credit of success must be given to the employees unconditioned.Promote organizational citizenship.4. It is possible to create organizations that are humane, democratic and empowering on one hand and high performing in terms of productivity, quality of output, profitability, and growth on the other. It is the responsibility of every entrepreneur to ensure that the needs of the society are met.
19 ORGANIZATIONAL DEVELOPMENT Top values associated with O. D. today:Increasing effectiveness and efficiencyCreating openness in communicationEmpowering employees to actEnhancing productivityPromoting organizational participationValues considered to be most important:Facilitating ownership of process and outcomePromoting a culture of collaborationPromoting inquiry and continuous learning
20 ORGANISATIONAL DEVELOPMENT Organizational Development is planned change in the organizational context. In this context of change it is necessary to refer to Kurt LewinHe has provided two principle ideas viz.What is occurring at any point of time is a resultant in a field of opposing forces e. g. production level at a particular point of time is the resultant equilibrium of some forces pushing towards higher levels of production and other forces pushing towards lower levels of production. The production levels tend to remain at the same levels as the field of forces remains constant. Another example could be the level of morale.The second contribution is the change itself. He has described a three- stage process viz.(a Unfreezing the old behaviour(b)Moving to a new level of behaviour(c )Refreezing the behavior at the new level
21 ORGANIZATIONAL DEVELOPMENT Kurt Lewin’s Three –Stage Model : as modified by Lippitt & othersDeveloping a need for change. (Lewin’s unfreezing phase)Establishing a change relationship. In this phase a client system in need of help and a change agent from outside the system establish a working relationshipClarifying or diagnosing the clients system’s problemExamining alternative routes and goals; establishing goals and intentions of actionsTransforming intentions into actual change efforts.Phases 3, 4 and5 correspond to Lewin’s moving phaseGeneralizing and stabilizing change. This corresponds to Lewin’s refreezing phaseAchieving a terminal relationship, that is, terminating the client-consultant relationship
22 ORGANIZATIONAL DEVELOPMENT The Burke-Litwin Model of Organizational ChangeFirst-order change- transactional, evolutionary, adaptive, incremental, or continuous changeSecond-order change- transformational, revolutionary, radical, or discontinuous changen.b.. O. D. programs are directed toward both first-order and second order change with an increasing emphasis on second –order transformational change.First-Order Second-OrderStructure Mission and StrategyManagement Practices LeadershipSystems Organizational Culture(Transactional) (Transformational)Distinguishing Organizational Climate and Organizational Culture.Climate- people’s perceptions and attitudes about the organizationCulture- deep seated assumptions about values and beliefs that are enduring, often unconscious and difficult to change
25 The Burke-Litwin Model of Organizational Performance and Change ExternalEnvironmentLeadershipMission &StrategyOrganizationalCultureStructureManagementPracticesSystems(Policies &Procedures)Work UnitClimateTask Requires& IndividualSkills/ AbilitiesMotivationIndividualNeeds & ValuesIndividual &OrganizationalPerformance
26 O. D. PROCESS: Diagnosis,Action & Program Management The O. D. process consists of three components-diagnosis, action and program management.Diagnosis component consists of continuous collection of data about the total system, its sub-units its processes, and its culture.The action component consists of all the activities and interventions designed to improve the organization’s functioning.The program management component is designed to ensure success of the program.Diagnosis involves;What are its strengths?What are its problems?What are its unrealized opportunities?Discrepancy between desired situation and current situation?
27 O. D. PROCESSAction Plans are developed to correct problems, seize opportunities and maintains areas of strengths .These are interventions specifically to address issues at the individual, group, inter-group, or organizational levels.Results- this stage consists of a fact-finding about the results of the actions. Did they have the desired effects? Have the problems been solved or the opportunities exploited?The process is diagnosis-action-evaluation-actionAn O. D. Programme thus starts with diagnosis and employs data collecting and data analyzing throughout. These activities are required to provide an accurate account of things as they are needed for two reasons-first to know the state of things or ‘what is’: the second is to know the effects or consequences of actionsThe first area of diagnosis is that of various sub-systems of the total organization e.g. teamsThe second area are the organizational processes e.g. decision-making communication styles , relationships between groups, management of conflicts, setting of goals and planning methods.
28 Porras & Robertson Model of Organizational Change EnvironmentVisionPhysicalSettingOrganizingArrangementsTechnologySocial Factors1.Goals Culture Space confign. 1.Tools etc. 2.Strategies Mgt. Style Phyl. Ambience 2. I. T. . 3.Structure Interaction Interior Design 3. Job Design . 4.Admn.(p& p) 4. Informal patterns 4. Architl design Work Flow D5.Adm. Systems 5.Indl. Attributes Tech.Expert. 6.Reward systm Tech. Proc. 7.Ownership Tech. systms
29 STAGES IN THE O.D. PROGRAMS ENTRYCONTRACTINGDIAGNOSISFEEDBACKPLANNING CHANGEINTERVENTIONEVALUATION
30 SYSTEMS THEORY-foundation of O. D. This theory views organizations as open systems in active exchange with their environments.Systems theory is one of the most powerful conceptual tools available for understanding the dynamics of organizations and organizational change.Definitions of Systems:A system is a “set of objects together with relationships between the objects and between their attributes.”A System is a set of “elements standing in interaction”.A system is “ an organized, unitary whole composed of two or more independent parts,components, or sub-systems, and delineated by identifiable boundaries from its environmental supra system”A system is an “arrangement of interrelated parts.A system denotes interrelatedness, interconnectedness and interdependency among elements in a set that constitutes an identifiable whole or gestalt.
31 SYSTEM IN INTERACTION WITH ITS ENVIRONMENT Mechm.Sources ofEnergyMaterialsInformationHuman Re-sourcesTransformingInputsMechanOutputsUsersExternal InterfaceFeedback MechanismsInternal InterfaceFeedback Mechanisms
32 ISSUES REGARDING SYSTEMS THEORY All open systems are input-throughput-output mechanismsEvery system is delineated by a boundary. What is inside the boundary and what is outside the boundary.More exchange takes place inside the boundary than outside the boundary.Open systems have purposes and goalsThe law of entrophy states that all systems “run down” and disintegrate unless they reverse the entropic process by importing more energy than they use.Information is important to systems in several ways.Feedback is information to the organization from the environment.Feedback can be positive or negativeDeviation-correcting feedback e.g. satelite mission off target(negative): or return to earth (positive)Steady-state or dynamic homeostatis.Systems maintain a steady state or equilibrium point and seek to maintain this equilibrium against disruptive forces, either internal or external.All systems tend to get elaborated, differentiated,specialized & complex.Called Differentiation requires coordination & integration
33 CONGRUENCE MODEL SHOWING ORGN. AS A SYSTEM INFORMALORGANIZATIONINPUTEnvironmentResourcesHistoryOUTPUTSystemUnitIndividualWorkFormalOrganizationStrategyPeople
34 THE SIX-BOX MODEL-a diagnostic tool(Marvin Weisbord) How do we manageconflict among people?with technologies?What businessare we in?How do wedivide the work?PurposeRelation-shipsStructureLeadershipDoes someone keep the boxes in balance?HelpfulMechanismsRewardsHave we adequatecoordinatingtechnologies?Do all needed taskshave incentives?Environment
35 O. D. INTERVENTIONSOD interventions are sets of structured activities in which selected organizational units engage in a series of tasks which will lead to organizational improvement.Interventions are actions taken to produce desired changes.There are one of four reasons why there is need for OD interventions:The organization has a problem- some thing is “broken”, and corrective actions need to be taken i.e. it needs to be “fixed”.The organization sees an unrealized opportunity: something it wants is beyond its reach. Enabling actions- interventions- are developed to seize the opportunity.Features of the organization are out of alignment: parts of the organization are working at cross-purposes.Alignment activities- interventions- are developed to get things back in tune.The vision guiding the organizational changes: yesterday’s vision is no longer good enough. Actions to build the necessary structures, processes, and culture to support the new vision- interventions- are developed to make the new vision a reality.n.b. OD interventions are planned sets of actions to change situations
36 O. D. INTERVENTIONSGenerally OD interventions follow a well-planned overall OD strategy and get revealed as events unfold and are answers to the following questions:What are the change/improvement goals of the program?What parts of the organization are most receptive to the OD program?What are the key leverage points( individual or group) in the organizationWhat are the most pressing problems in the client organization?What resources are available for the program in terms of client time and energy and internal and external facilitators?N. B.. With the help of the above questions the OD practitioner would be able to formulate his gameplan and sequence of interventions etc.Furthermore, OD has two goals- one educational and the other accomplishing–a-task goal.Normally learning takes place in one setting e.g. a classroom whereas action takes place at the workplace.Secondly, OD deals with real life problems and uses several learning models.
37 O. D. INTERVENTIONSPlanning a Workshop on a Strategic Plan:Explore the need of a long-range plan for the organizationLearn how to formulate such a strategy by analyzing other strategies determining the strategic variables, being shown a sequence of steps for preparing a comprehensive plan, and so forthActually make a three-year strategic plann.b.The above involves learning and action each part playing a predominant role at different times. OD programs are closely linked with explicit goals and objectives.OD programs all have linkages with Diagnosis, Action Taking and Goal Setting.OD is a continuous process of setting goals, collecting data about status quo, planning and taking actions based on hypotheses and on the data, and evaluating the effects of action through additional data collection.
38 OD INTERVENTIONS-DISCREPANCIES ANALYSIS A useful model of diagnosis and interventions could be termed as discrepancies analysis-examining the discrepancies or gaps betweenwhat is happening and what should be happening.Discrepancies define both problems and goals.Discrepancies require study( diagnosis and planning) and action toeliminate the gaps.Where one is and where wants to go.Study of problems and opportunitiesA good part of OD process is problem solving and providestechnologies for studying and closing gaps.A problem analyzer has an expected standard of performance, a‘should’ against which to compare actual performance. A problemis a deviation from the standard of performance.A problem is a gap; problem-solving is discovering the cause of the gap; decision-making is discovering a solution- a set of actions- to close the gapGoals also represent gaps-between where we are and where we want to be.Goal-setting is the process of imposing the gap;goal accomplishment ismade possible by taking actions to close the gap.
39 TYPES OF INTERVENTIONS Target Group Interventions Designed to Improve EffectivenessLife-and career-planning activitiesCoaching and counselingT-group(sensitivity training)Individuals Education & training to increase skills, knowledge in the areas of technical task needs, relationship skills, process skills, decision making, problem-solving,planning, goal-setting skillsGrid OD phase1Work redesignGestalt ODBehaviour modelingProcess consultationThird- party peacemakingDyads/Triads Role negotiation technique
40 TYPE OF INTERVENTIONSTarget Group Interventions Designed to Improve EffectivenessTeambuilding-task directed, process directedGestalt ODGrid OD phase 2Interdependency exerciseAppreciative inquiryResponsibility chartingTeams and Groups Process consultationRole negotiationRole analysis technique“Startup” team-building activitiesEducation in decision making, problem solvingplanning, goal setting in group settingsTeam MBOAppreciations and concerns exerciseSearch conferencesQuality of work life(QWL) programsQuality circlesField force analysisSelf- managed teams
41 OD INTERVENTIONSTarget Group Interventions Designed to Improve EffectivenessIntergroup activities-Process directed-Task directedOrganizational mirroringIntergroup PartneringRelations Process consultationThird- party peacemaking at group levelGrid OD phase 3Survey feedback
42 OD INTERVENTIONSTarget Group Interventions Designed to Improve EffectivenessSociotechnical systems (STS)Parallel learning structuresMBO (participation forms)Cultural analysisConfrontation meetingsVisioningTotal Strategic planning/strategic management activitiesOrganization Real-time strategic changeGrid OD phases 4, 5, 6Interdependency exerciseSurvey feedbackAppreciative inquirySearch conferencesQuality of worklife (QWL) programsTotal quality management(TQM)Physical settingsLarge-scale systems change
43 Eight Steps to Successful Organizational Transformation Establishing a sense of urgency-Examining market and competitive realities-Identifying and discussing crises,potential crises, or major opportunitiesForming a powerful guiding coalition-Assembling a group with enough power to lead the change effort-Encouraging the group to work together as a teamCreating a vision-Creating a vision to help direct the change effort-Developing strategies for achieving the visionCommunicating the vision-Using every vehicle possible to communicate the new vision and strategies-Teaching new behaviours by the example of the new coalitionEmpowering others to act on the vision-Getting rid of obstacles to change-Changing systems or structures that seriously undermine the vision-Encouraging risk taking and non-traditional ideas, activities, and actions
44 INTERVENTIONS-Presentations on any one of the following topics 1. Role Analysis2. Quality of Work Life(QWL)3. Team BuildingInter-group Conflict ResolutionSelf-Managed TeamsT-Group ( Sensitivity Training)Appreciative EnquiryVisioningGrid-ODQuality CirclesMBOTotal Quality Management (TQM)Cultural AnalysisWork RedesignCoaching and CounselingN. B. Presentations to be made in groups of 5 for 10/15 min. covering theoretical and practical sides of the topics. (Marks will be 20)
45 INTERVENTIONSOD Practitioners have to consider the following in the planning and implementation of OD:Develop an overall game plan or intervention strategyStructure activities to promote learning and change for better as under:(a) Structure to include the relevant people(b) Structure so that it is problem-oriented or opportunity-oriented OR oriented to the problems and opportunities generated by the client(c )Structure so that the goal is clear and the way to reach it is clear(d) High probability of success(e) Structure so that it contains both experienced-based learning and conceptual learning(f) Structure so that individuals are “freed up” rather than anxious and defensive(g) Structure so that participants learn how to solve a particular problem and how “to learn to learn.”
46 INTERVENTIONS(contd.) (h) Structure so that individuals learn about both TASK and PROCESStask-is what the group is working onprocess-how the group is working and what else is going on ie group processes and dynamics, styles and behaviourStructure so that individuals are engaged as whole persons not segmented persons3. The other set of concerns are:(1)Maximize diagnostic data(2)Maximize effectiveness(3)Maximize efficiency(4)Maximize speed(5)Maximize relevance(6)Minimize psychological and organizational strain
47 TYPES OF INTERVENTIONS 1.Discrepancy-contradiction in action or attitude2.Theory-behavioural science used to explain behaviour etc3.Procedure-whether the best methods are being used4.Relationship- focuses on interpersonal relationships-negative ones5.Experimentation-two plans tested before final implementation of one6.Dilemma- imposed or emergent dilemma and determining choices7.Organizational structure-evaluation of structural causes of ineffectiveness8.Cultural-traditions ,precedents and practices-focused approach9.Perspective-draw away from immediate actions to past and futureBlake and Mouton-Consulcube-Consultant’s Interventions-acceptant-gives client a sense of worth,value acceptance,support-catalytic-helps client to generate information for clearer perception-confrontation-clients value discrepancies, beliefs and assumptions-prescriptions-client told what to do for solving the problem-theories and principles-teaches behavioural science theory so that the client can diagnose the problem on his own and solve them as well
48 INTERVENTIONS-Blake and Mouton(contd.) Focal Issues: power/authority,morale/cohesion, norms/standards and goals/objectivesTarget: individual, group, intergroup, organization, community, societyN. B. So Blake and Mouton have 5 kinds of interventions,4 focal issues and 5 different units of change in the form of the Consulcube to guide the Consultant in the use of his interventionsInterventions do different things; they cause different things to happenResults caused by interventions could be as under:FeedbackAwareness of changing sociocultural norms or dysfunctional current normsIncreased interaction and communicationConfrontationEducationParticipationIncreased AccountabilityIncreased Energy and Optimism
49 CLASSISIFICATION OF INTERVENTIONS DIAGNOSTIC ActivitiesTEAMBUILDING ActivitiesINTERGROUP ActivitiesSURVEY FEEDBACK ActivitiesEDUCATION and TRAINING ActivitiesTECHNOSTRUCTURAL or STRUCTURAL ActivitiesPROCESS CONSULTATION ActivitiesGRID ORGANIZATION DEVELOPMENT ActivitiesTHIRD-PARTY PEACEMAKING ActivitiesCOACHING and COUNSELING ActivitiesLIFE and CAREER-PLANNING ActivitiesPLANNING and GOAL-SETTING ActivitiesSTRATEGIC MANAGEMENT ActivitiesORGANIZATIONAL TRANSFORMATION Activities