Organizational Development

1. Prepared By Pratiksha Patil Academy of Management & Professional Development. 1

2. Sr no. Chapter Pg no 1. Introduction to OD 4-7 2. Historical background of OD 8-23 3. Foundations of OD 24-41 4. Managing OD Process 42-72 5. OD Interventions 73-95 6. Training Experience 96-113 7. Issues in Consultant-Client Relations 114-128 Academy of Management & Professional Development. 2

3. Sr no. Content 8. Action Research & OD 129-135 9. Power, Politics & OD 136-162 10. Future of OD 163-185 Academy of Management & Professional Development. 3

4. O. D. is the act, process or result of furthering, advancing, or promoting the growth of an organization Academy of Management & Professional Development. 4

5. 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 Academy of Management & Professional Development. 5

6. The O. D. Approach to Change treats the organization as a system. A system is an orderly group of logically related parts, principles and beliefs. Alternatively, it is a grouping or arrangement that relate or interact with each other in such a way as to form a whole. Thus this approach has the following characteristics: (a) Total view not a limited view (b) Relationship between the Orgn. and the environment and the internal dynamics of the Orgn. (c) Teams-temporary, semi-permanent and permanent- continous improvement (d) Inter-personal Communication (e) Individuals- self awareness and self acceptance-developing skills, knowledge and ability of individuals Academy of Management & Professional Development. 6

7. The characteristics of O. D. are: 1. It is a planned strategy to bring about organizational change 2. OD always involves a collaborative approach to change 3. OD programmes include an emphasis an ways to improve & enhance performance. 4. OD relies on a set of humanistic values about people & organization. 5. OD represents a system approach Academy of Management & Professional Development. 7

8. Academy of Management & Professional Development. 8

9. History of OD (1) T-group (2) Survey Feedback Technology Four major stems of OD (3) Action research (4) Productivity & Quality of work life (1) T-Group (Laboratory Training) – participants learn from their own actions and the group‘s evolving dynamics (2) Developing reliable questionnaires, collecting data from personnel, analyzing it for trends, and feeding the results back to everyone for action planning (3) Diagnosing, taking action, re-diagnosing and taking new action (4) Integrate social requirements of employees with technical requirements needed to do work in provided environment. Academy of Management & Professional Development. 9

10. Revolutionary Values & Beliefs of OD Organic systems (mutual confidence & trust) rather than mechanical systems (authority-obedience) …. Warren Bennis Basic units of change are groups, not individuals …. Richard Beckhard Away from resisting and fearing individual differences towards accepting and utilizing them …. Robert Tannenbaum Trust and respect for individual Open communication Radical departure from Decentralized decision making accepted values and beliefs of 1960‘s Collaboration and cooperation Appropriate use of powers Authentic interpersonal relationships Academy of Management & Professional Development. 10

11. C LABORATORY TRAINING U R R E SURVEY RESEARCH FEEDBACK N T O ACTION RESEARCH D P PRODUCTIVITY QUALITY OF WORK LIFE R A C T I C E Academy of Management & Professional Development. 11

12. Laboratory training began in 1946, when Kurt Levin was asked for help in research on training community leaders A workshop was developed and the community leaders were brought together At the end of each session the researchers discussed the behaviors they had observed Thus the first T-group was formed in which people reacted to data about their own behavior Academy of Management & Professional Development. 12

13. The researchers drew two conclusion about this first T- group experiment  Feedback about group interaction was a rich learning experience  The process of “group building” had potential for learning that could be transferred to “back home” situations Applying T-group techniques to organizations gradually became known as team building Academy of Management & Professional Development. 13

14.  The action research contribution began in 1940  The research needed to be closely linked to the actions  A collaborative effort was made, to collect the organizational data  To analyze the cause of the problem and then to device and implement a solution  Further data was collected to asses the results Academy of Management & Professional Development. 14

15.  Participative management is a means of getting employees involved in planning and managing change Four types of management systems  Exploitative authoritative system  Benevolent authoritative systems  Consultative systems  Participative group Academy of Management & Professional Development. 15

16.  Likert applied system 4 to organization using a survey feedback process  Which asked the members about the present and the ideal conditions about the organization  Generatedaction plans to move the organization towards system 4 condition Academy of Management & Professional Development. 16

17.  The contribution of QWL can be explained in two phases  This phase was developed in Europe in 1950 based on the research of Eric Trist.  This program involved developing a work design which aimed at better integrating technology and people  Participation by unions and management in the work design  The distinguishing characteristics of this program was developing self managing groups Academy of Management & Professional Development. 17

18.  Thesecond phase of QWL continues under the banner of employee involvement  Employee contribution helps in running the organization so that it can be more flexible, productive and competitive Academy of Management & Professional Development. 18

19. Second-Generation OD Organization Transformation Organizational Culture Learning Organization Total Quality Management Visioning and Future Search Business Process Reengineering Quality of Work Life Academy of Management & Professional Development. 19

20. A set of values, assumptions, and beliefs constitutes an integral part of OD, shaping the goals and methods of the field and distinguishing OD from other improvement strategies. Most of these beliefs were formulated early in the development of the field, and they continue to evolve as the field itself evolves. A belief is - a proposition about how the world works that the individual accepts as true; - a cognitive fact for the person. Values are also beliefs, and are defined as ―Beliefs about what is a desirable or a good (e.g., free speech) and what is an undesirable or a bad (e.g., dishonesty) values‖. Assumptions are beliefs that are regarded as - so valuable and obviously correct, - that they are taken for granted, and - rarely examined or questioned. Academy of Management & Professional Development. 20

21. Thus, values, assumptions, and beliefs are all: - cognitive facts or propositions, with - values being beliefs about being good and bad, and - assumptions being strongly held, relatively unexamined beliefs accepted as the truth. Values, assumptions, and beliefs provide structure and stability for people as they attempt to understand the world around them. OD values and assumptions developed from: - research and theory by behavioral scientists, and - from the experiences and observations of practicing managers. OD values tend to be humanistic, optimistic, and democratic. 3/23/2012 21

22. Humanistic values proclaim the importance of the individual: respect the whole person, treat people with respect and dignity, assume that everyone has intrinsic worth, view all people as having the potential for growth and development, - these beliefs flow from humanistic values. Optimistic values post that: people are basically good, that progress is possible and desirable in human affairs, and that rationality, reason, and goodwill are the tools for making progress. 3/23/2012 22

23. OD Values and Assumptions – Early Statements: OD practitioners share a set of normative goals based on their humanitarian/democratic philosophy: 1. Improvement in interpersonal competence. 2. A shift in values so that human factors and feelings come to be considered legitimate. 3. Development of increased understanding between and within groups in order to reduce tensions. 4. Development of more effective ―team management", that is, the capacity for functional groups to work more competently. 5. Development of better methods of conflict resolution. Rather than the usual bureaucratic methods which rely mainly on suppression, compromise, and unprincipled power, and more rational and open methods of conflict resolution are sought. 6. Development of organic rather than mechanical systems. This is a strong reaction against the idea of organizations as mechanisms in which managers ―work on‖, like push buttons. 3/23/2012 23

25. Models and theories Kurt Lewin Change is a three-stage process Stage 1- Unfreezing the old behavior/ situation Stage 2- Moving to a new level of behaviors Stage 3- Refreezing the behavior at the new level Edgar Schein modified this theory by specifying psychological mechanisms involved in each stage Later Ronald Lippitt, Jeanne Watson and Bruce Westley expanded this model into seven-stage model Academy of Management & Professional Development. 25

26. Models and theories Contd.. Ralph Kilmann 1. The culture track Five critical leverage 2. The management skills track points (tracks) for organization change 3. The team-building track 4. The strategy-structure track 5. The reward system track Track 1 : Enhances trust, communication, information sharing Track 2 : Provide new ways of coping with complex problems Track 3 : Infuses new culture and updated management skills Track 4 : Develops revised strategy plan for organization Track 5 : Establishes performance based reward system Academy of Management & Professional Development. 26

27. Models and theories Contd.. Porras & Robertson Model of Organizational Change Jerry Porras Peter Robertson OD interventions alter features of the work setting causing changes in individuals‘ behaviors, which in turn lead to individual and organizational improvements. 1 Organizing arrangements 2 Social factors Work setting factors 3 Physical setting 4 Technology Academy of Management & Professional Development. 27

28. Models and theories Contd.. Organizing arrangements Goals, strategies, structure, policies, procedures Social Factors Culture, management style, informal networks, individual attributes Physical Settings Space configuration, physical ambiance Technology Machinery, tools, IT, job design Academy of Management & Professional Development. 28

29. Systems Theory Organizations are open systems in active exchange with their environment David A. Nadler The Congruence Model Academy of Management & Professional Development. 29

30. Systems Theory Contd.. Sociotechnical Systems Theory (STS) All organizations comprised of two interdependent systems: 1. Social system 2. Technical system Eric Trist To achieve high productivity and employee satisfaction, organizations must optimize both systems. Changes in one system affect the other system. Academy of Management & Professional Development. 30

31. Models and theories Contd.. The Burke-Litwin Model of Organizational Change Warner Burke First order change (Transactional change) Change Second order change (Transformational change) OD interventions directed towards structure, management practices, and systems (policies & procedures) result in first order change. OD interventions directed towards mission and strategy, leadership, and organization culture result in second order change. Academy of Management & Professional Development. 31

32. Models and theories Contd.. Transformational factors Transactional factors Academy of Management & Professional Development. 32

33. Participation & Empowerment Participation in OD programs is not restricted to elites or top people; it is extended broadly throughout the organization. Increased participation and empowerment have always been central goals and fundamental values of OD. Participation enhances empowerment and empowerment in turn enhances performance. Empowerment is the key to getting people to want to participate in change. Academy of Management & Professional Development. 33

34. Teams & Teamwork Many tasks are so complex that they Characteristics of cannot be performed by individuals; successful teams people must work together to 1. clear, elevating goal accomplish them. 2. result driven structure Putting those empowered individuals 3. competent members into teams creates extraordinary 4. unified commitment effects on performance. 5. collaborative climate Teams create synergy i.e. sum of 6. standards of efforts of team is far greater than sum excellence of individual efforts. 7. external support and recognition A number of OD interventions are specifically designed to improve team performance. Examples – team building, quality circles etc. Academy of Management & Professional Development. 34

35.  Forming  Storming  Norming  Performing Academy of Management & Professional Development. 35

36.  Parallel Learning Structures (also known as Communities of Practice) promote innovation and change in large bureaucratic organizations while retaining the advantages of bureaucratic design.  Groups representing various levels and functions work to open new channels of communication outside of and parallel to the normal, hierarchical structure. Parallel Learning Structures may be a form of Knowledge Management.  Knowledge Management involves capturing the organization's collective expertise wherever it resides (in databases, on paper, or in people's heads) and distributing it to the people who need it in a timely and efficient way. Academy of Management & Professional Development. 36

37.  A parallel learning structure consists of a steering committee and a number of working groups* that study what changes are needed, make recommendations of improvements, and monitor the change efforts.  (* Idea groups, action groups, implementation groups etc.)  One or more top executive should be part of steering committee  Representatives from all parts of the organization Academy of Management & Professional Development. 37

38.  To develop and implement organization-wide innovations.  To foster innovation and creativity within a bureaucratic system.  To support the exchange of knowledge and expertise among performers.  To capture the organization's collective expertise Academy of Management & Professional Development. 38

39. Normative-Reductive Strategy of Change Norms form the basis for behavior, and change comes through reeducation in which old norms are discarded and replaced by new ones. Changes in normative orientations involve changes in: • Attitudes • Values • Skills • Relationships Norms can be best changed by focusing on the group, not the individual. Academy of Management & Professional Development. 39

40. Applied Behavioral Science OD is an application of behavioral science Pure/ Basic Science Applied Science Generating knowledge Knowledge to Solve practical problems Practice Theory : Diagnosing the situation, then selecting and implementing treatments based on diagnosis, and finally evaluating the effects of the treatments. Applied Science Practice Research Practice Theory What helps me solve this problem? Applied Behavioral Science Pure/ basic science What helps me solve real problems? Behavioral Science Research Behavioral Science Theory Academy of Management & Professional Development. 40

41. Action Research Data Collection Feedback of data to client system members Diagnostic Action planning based on the data Participant Types Taking action Empirical Evaluating results of actions Experimental Diagnostic Researcher enters a problem situation, diagnoses it and make recommendations for remedial treatment (recommendations may not be put into effect by client group) Participant People who are to take action are involved in the entire process from the beginning (involvement increases the likelihood of carrying out the actions once decided upon) Empirical Researcher keeps the systematic, extensive record of what he/ she did and what effects it had (may encounter situations too divergent from one another, which may not permit generalizations) Experimental It is controlled research on the relative effectiveness of various techniques (is difficult to do when client wants immediate answers) Academy of Management & Professional Development. 41

43. Managing the OD Process Three basic components of OD programs: Diagnosis Continuous collection of data about total system, its subunits, its processes, and its culture Action All activities and interventions designed to improve the organization’s functioning Program All activities designed to management ensure success of the program Academy of Management & Professional Development. 43

44.  The purpose of a diagnosis is to identify problems facing the organization and to determine their causes so that management can plan solutions.  Aimed at providing rigorous analysis & data on structure, administration, instruction, procedures, interfaces & other essential elements of the client system.  Diagnosis then provides a basis for structural, behavioral, technical interventions to improve organizational performance.  To make sound diagnosis it is important to have valid information about the situation. Academy of Management & Professional Development. 44

45.  Reliance on valid information about current problems & possible opportunities of improvement.  Organizational Diagnosis is an effective ways of looking at an organization to determine gaps between current and desired performance and how it can achieve its goals. Academy of Management & Professional Development. 45

48.  One of these strategies, organizational diagnosis, involves ―diagnosing,‖ or assessing, an organization‘s current level of functioning in order to design appropriate change interventions.  The concept of diagnosis in organization development is used in a manner similar to the medical model.  For example, the physician conducts tests, collects vital information on the human system, and evaluates this information to prescribe a course of treatment. Likewise, the organizational diagnostician uses specialized procedures to collect vital information about the organization, to analyze this information, and to design appropriate organizational interventions Academy of Management & Professional Development. 48

49.  An organizational model is a representation of an organization that helps us to understand more clearly and quickly what we are observing in organizations. Burke explains the many ways in which organizational models are useful (in Howard and Associates, 1994):  1. Models help to enhance our understanding of organizational behavior.  2. Models help to categorize data about an organization.  3. Models help to interpret data about an organization.  4. Models help to provide a common, short-hand language. Academy of Management & Professional Development. 49

50.  The model provides a systematic way to collect data on the organization and to understand and categorize the data. Academy of Management & Professional Development. 50

51. Of OD practitioners, 70% reported using a model to assist in identifying problems. Models may be used to analyze structure, culture, and behavior of organization. Ch ap ter 5 Sli Academy of Management & de Professional Development. 51

52.  Analytical  Sociotechnical  Emergent-group systems behavior  Force-field analysis  Management practitioner Academy of Management & Professional Development. 52

53.  Differentiation-integration model  Developed by Paul Lawrence & Jay Lorsch in 1969.  Used for interdepartmental issues by conducting a careful diagnosis  Examines characteristics of departments.  Objective to help departments achieve integration. Academy of Management & Professional Development. 53

55. Helps in understanding how group operates Used to analyze interdependence of groups. Collects data on activities, interactions, sentiments and norms. Academy of Management & Professional Development. 55

56. Two interrelated systems in organization: 1.Social system. 2.Technical system. The 2 systems are interrelated. Diagnosis determines interrelationships and type of feedback required. Academy of Management & Professional Development. 56

57. Behavior balance between forces working in opposite directions. Restraining forces - act to keep organization stable. Driving forces - act to change organization. When forces equal, organization in quasi- stationary state of equilibrium. Analysis determines forces to increase or decrease. Academy of Management & Professional Development. 57

59. Diagnosis – The Six-Box Model Purposes Marvin Weisbord Relationships Structure Leadership Helpful Rewards Mechanisms Academy of Management & Professional Development. 59

60.  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.  This model is still widely used by OD practitioners Academy of Management & Professional Development. 60

61. The six-box model is comprised of the following components (boxes):  Purposes: What 'businesses' are we in?  Structure: How do we divide up the work?  Relationships: How do we manage conflict (coordinate) among people? With our technologies?  Rewards: Is there an incentive for doing all that needs doing?  Leadership: Is someone keeping the boxes in balance?  Helpful mechanisms: Have we adequate coordinating technologies? Academy of Management & Professional Development. 61

62.  Try to maintain language of the organization  Keep it simple  Keep it short Academy of Management & Professional Development. 62

63.  Is to obtain valid information  Interviewer should be neutral, non-evaluative, accepting.  Should be able to develop a trust relationship  Frank relation ship Academy of Management & Professional Development. 63

64.  Goals are 1. To achieve increased understanding of the issue 2. To accomplish a common diagnosis 3. To discover alternatives for resolving the conflict 4. The focus on the common or metagoals. - Attempt to make interventions aimed at opening communication, leveling power & confronting problems. Academy of Management & Professional Development. 64

65. Actions Interventions are the actions taken to produce desired changes. Four conditions that give rise to the need for OD interventions: 1. The organization has a problem (corrective action – to fix it) 2. Organization sees an unrealized opportunity (enabling action – to seize the opportunity) 3. Features of organization are out of alignment (alignment action – to get things back ‗in sync‘) 4. Yesterday‘s vision is no longer good enough (action for new vision – actions to build necessary structures, processes and culture to make new vision a reality) Academy of Management & Professional Development. 65

67.  Analyzing & planning the change  Communicating about the change  Gaining acceptance of the required changes in behavior  Making the initial transition  Consolidation & follow-up Academy of Management & Professional Development. 67

68.  What are the objectives of the change ?  What is to be accomplished  To what extent are these goals desirable?  What is the proposed methods?  How is to be introduced & implemented?  Can other method be used? Academy of Management & Professional Development. 68

69.  Communication must be done before introduction of actual change. Academy of Management & Professional Development. 69

70. Parallel Learning Structures A parallel learning structure consists of a steering committee and a number of working groups* that study what changes are needed, make recommendations of improvements, and monitor the change efforts. (* Idea groups, action groups, implementation groups etc.) One or more top executive should be part of steering committee Representatives from all parts of the organization Academy of Management & Professional Development. 70

71.  Parallel Learning Structures (also known as Communities of Practice) promote innovation and change in large bureaucratic organizations while retaining the advantages of bureaucratic design.  Groups representing various levels and functions work to open new channels of communication outside of and parallel to the normal, hierarchical structure. Parallel Learning Structures may be a form of Knowledge Management.  Knowledge Management involves capturing the organization's collective expertise wherever it resides (in databases, on paper, or in people's heads) and distributing it to the people who need it in a timely and efficient way. Academy of Management & Professional Development. 71

72.  When to use it? - To develop and implement organization-wide innovations. - To foster innovation and creativity within a bureaucratic system. - To support the exchange of knowledge and expertise among performers. - To capture the organization's collective expertise Academy of Management & Professional Development. 72

73. Organizational Development interventions are the set of structured activities where selected organizational units gets engaged with task or set of tasks that are either directly or indirectly related to the development of the organization. Academy of Management & Professional Development. 73

74. O. D. INTERVENTIONS OD 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: 1. The organization has a problem- some thing is ―broken‖, and corrective actions need to be taken i.e. it needs to be ―fixed‖. 2. The organization sees an unrealized opportunity: something it wants is beyond its reach. Enabling actions- interventions- are developed to seize the opportunity. 3. 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. 4. 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. OD interventions are planned sets of actions to change situations Academy of Management & Professional Development. 74

75. O. D. INTERVENTIONS Generally OD interventions follow a well-planned overall OD strategy and get revealed as events unfold and are answers to the following questions: 1. What are the change/improvement goals of the program? 2. What parts of the organization are most receptive to the OD program? 3. What are the key leverage points( individual or group) in the organization 4. What are the most pressing problems in the client organization? 5. What resources are available for the program in terms of client time and energy and internal and external facilitators? With the help of the above questions the OD practitioner would be able to formulate his game plan 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. Academy of Management & Professional Development. 75

76. TYPES OF INTERVENTIONS 1.Discrepancy-contradiction in action or attitude 2.Theory-behavioural science used to explain behaviour etc 3.Procedure-whether the best methods are being used 4.Relationship- focuses on interpersonal relationships-negative ones 5.Experimentation-two plans tested before final implementation of one 6.Dilemma- imposed or emergent dilemma and determining choices 7.Organizational structure-evaluation of structural causes of ineffectiveness 8.Cultural-traditions ,precedents and practices-focused approach 9.Perspective-draw away from immediate actions to past and future Blake 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 Academy of Management & Professional Development. 76

77.  Interpersonal interventions  Team  Structural  Comprehensive Academy of Management & Professional Development. 77

78.  Laboratory training  Career planning intervention: - Deciding where you are now - Deciding where you want to be - Developing plan for where you want to be.  Managerial grid(phase I)  Stress management - Stress management programme:(Biofeedback, transcendental meditation, career counselling, training programme in stress management, wellness programmes, seminars in job Burnout) Academy of Management & Professional Development. 78

80.  Work teams are of 2 types Team building interventions  Family group diagnostic meetings  FG team building meetings  Role negotiation technique  Role analysis technique  Process consultation Academy of Management & Professional Development. 80

81.  Job design  Quality of work life (QWL)  Quality circles  MBO & Appraisal  Socio technical systems  The collateral organization  Physical setting & OD Academy of Management & Professional Development. 81

82.  Third party consultation  Organization mirror  Inter-group team building Academy of Management & Professional Development. 82

83.  T-group - Objectives - Methods - Sources of change in groups - Role of trainers - Possible problems Academy of Management & Professional Development. 83

84.  Behavioral modeling - Current trends - Factors influencing behavioral modeling 1. Model characteristics 2. Observer characteristics 3. Behavior/task 4. Methods of presentation of the model 5. Method analysis 6. Personal use of method Academy of Management & Professional Development. 84

85.  Job search - Packaging - Responsiveness  Job retention - Performance of job duties - Getting along with others - Positive attitude about work - Personal philosophy Academy of Management & Professional Development. 85

86. 

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