1 - Introduction to Od

8/3/2019 1 - Introduction to Od

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-Radhika Gupta


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Setting Expectations Students: What are students expectations of me?

Professor: What are my expectations of students?

Clarifying roles: Who am I to you?


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Learning Objectives Define OD and recognize need for change.

Describe culture and understand its impact.

Understand the psychological contract.

Describe five stages of OD.


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The Workout: Organization

Changes at GE (part 1 of 2)

GE has training center for managers.

Participants said GE was slow to make changes.

Workout is program that came from sessions.


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The Workout: Organization

Changes at GE (part 2 of 2)

In workout employees take the leadership in bringingabout changes.

GE continues to useworkout so it can reinvent itself.


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Figure 1.1

The Organizational Environment


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OD is a systematic process of applying behavioralscience principles and practices in organizations toincrease individual and organization effectiveness.

Focus : Organizations total system change

Orientation : Action achieving results as aconsequence of planned activities.

Target : Human side of organizations Setting : Real organizations in the real world.

What Is OD???


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Our Changing World:

Germany in Slow-mo (part 1 of 2)Germany entering 2nd decade of stagnation.

A model of world in 70s and 80s.

Reputation as Europes unchanging core.History of blaming others for problems.


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Our Changing World:

Germany in Slow-mo (part 2 of 2)Some looking inward for causes.

Problem traced to job-protection law of 50s.

Unions block proposals to reform labor laws.


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Overview of the field of OD Organizational Improvement strategy

Emerged in late 1950s and 1960s (fm theory andpractice of planned change)

Based on knowledge from behavioral sciences.

Long-term, planned and sustained efforts.

2 major goals :

To improve the functioning of individuals, teams andtotal organization.

To teach organization members how to continuouslyimprove their own functioning.


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START POINT

Inappropriate organization structure

ORGANIZATION

Poor Morale

Unclear goals

Interpersonal conflicts

Inappropriate leadership

style

Poor team performance

Low productivity

Poor alignment to orgns strategy

Inter-group conflict

Poorly designed tasks


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Underlying themes of the theory

and practice of OD

1. PLANNED CHANGE: What is change?

Demand for change from internal and externalforces.

Change can be deliberate or accidental

Large or small magnitude

May affect many or few elements

Can be fast (revolutionary) or slow (evolutionary) First order (making moderate adjustments)

or Second order (reengineer, reinvent, rewrite)


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2. OD as a distinctive Consulting Method:

Difference between OD and other organizationimprovement programs : OD consultants role andrelationship with the clients

Co-Learners and collaborators

Role: To structure activities to help organizationmembers learn to solve their own problems andlearn to do it better over time.

Teaches Self-renewal or learning how to learn.


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3. OD as a process that focuses on organizational

Culture, Processes, and structure using the TotalSystem Perspective

Permanent change in organizational culture

Task vs Process

Structure : wiring diagram

Systems theory : Goal of OD programs is to optimize thesystem.

Organizations are open systems


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4. The Action Research Model

TAKINGACTION

DIAGNOSING

REDIAGNOSING

TAKING NEWACTION


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Action Research In OD

1. Preliminary diagnosis

2. Data gathering from the client group

3. Data feedback to the client group

4. Exploration of the data by the client group5. Action planning by the client group

6. Action taking by the client group

7. Evaluation and assessment of the results of the actions bythe client group

- with OD practitioner as facilitator throughout.

- Action Research leads to both change and new knowledge.


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Burkes Definition of OD

OD is a planned process of change in

an organizations culture throughthe utilization of behavioral sciencetechnology, research, and theory.


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Beckhards Definition of OD

OD is an effort (1) planned, (2)organization-wide, and (3) managed

from the top, to (4) increase organizationeffectiveness and health through (5)planned interventions in the

organizations processes, usingbehavioral science knowledge.


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OD is a long term effort, led and supported by top

management, to improve an organizations visioning,empowerment , learning and problem solvingprocesses, through an ongoing, collaborativemanagement of organization culture with special

emphasis on culture of intact work teams and otherteam configurations using the consultant facilitatorrole and the theory and technology of appliedbehavioral science, including action research (French

& Bell)


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Long-term : No quick fix

Led and supported by top management : may includepain and setbacks

Visioning : Creating the picture of desired future.

Empowerment: Involving large no. of people in

building the vision of tomorrow. Learning process: Avoid the trap of defensive

routines

Problem-solving processes: Ways the orgn members

diagnose situations, solve problems, make decisions,take actions on problems, opportunities andchallenges in the organization's environment and itsinternal functioning.


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Ongoing collaborative management of organizationsculture

Intact work teams and other configurations: Teams arecentral to accomplishing work.

Using the consultant facilitators role: Third party roleis powerful.

Theory and technology of applied behavioral science

Action research.


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Overall

1. OD focuses on culture and processes.

2. Encourages collaboration between organization leadersand members in managing culture and processes.

3. Teams of all kinds are important for accomplishing tasksand targets for OD activities.

4. OD focuses on human side of the organizations and indoing so intervenes with the technological and structural

sides.5. Participation and involvement in problem solving anddecision making by all levels of the organization are thehallmarks of OD.


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6. OD focuses on total system change.

7. OD practitioners are facilitators, collaborators and co-learners with the client system.

8. Makes client system capable of solving its ownproblems.

9. OD relies on action research model with extensiveparticipation by client system members.

10. OD takes developmental view that seeks betterment

of both individuals and organization.


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Difference between OD and

Management Consulting 1. OD is change in strategy, structure and/or processes of an

entire system whereas management consulting might focuson few aspects of the system

2. OD is based on the application of behavioural scienceknowledge and practice (leadership, group dynamics)

whereas change management and management consultingneglect the personal and social characteristics of the

system 3. OD manages planned change but not in the formal sense

(flexibility). Management consulting and technicalinnovation are programmatic and expert driven.


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4. OD involves creation and subsequent management

of change whereas other change efforts do not addresshow a change can be institutionalised.

5. OD focuses on improving organizationaleffectiveness. Management consulting primarily

addresses financial performance.


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OD/Change Management/ Organization

Change

OD and change management both address theeffective implementation of planned change.

Both are concerned with the sequence of activities that

produce organization improvements. Differ in the underlying value orientation

OD supports value of human potential, participationand development in addition to performance and

competitive advantage Change management focuses on values of cost, quality

and schedule.


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ODs distinguishing feature is transfer of knowledge andskills so that system can manage change in future.

Change Management does not necessarily require thetransfer of these skills.

ORGANIZATION CHANGE:

Organization change is a broader concept

Can apply to any kind of change, including technical andmanagerial innovation, organization decline, evolution ofsystem over time etc.

These changes may or may not be directed at making theorganization more developed as in OD.


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Relevance of OD 3 major trends are shaping change in organizations:

GLOBALIZATION

New markets, new economy, new leadership

INFORMATION TECHNOLOGY

Changes in how work is performed, how knowledge is used,how cost of doing business is calculated, e-comm, World wideweb etc.

MANAGERIAL INNOVATION New forms of organizations as alliances, virtual organizations

etc.

Downsizing, reengineering


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Expert information and/or service is being bought bythe client. For a successful outcome, this modeldepends on:

1. whether the manager has correctly diagnosed hisown needs

2. whether he has correctly communicated theseneeds to the consultant

3. whether he has accurately assessed the capability of theconsultant to provide the right kind of information or service

4. whether he has thought through the consequences of havingthe consultant gather information, and/or the consequencesof implementing changes which may be recommended by theconsultant."

Exchange model:


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Process Consultation

Process consultation, by contrast to both of thesemodels, focuses onjoint diagnosis, and thepassingon to the client of diagnostic skills. The keyassumption is that the client sees the problem forhimself, shares in its diagnosis, and is activelyinvolvedin generating a remedy.

Edgar Schein


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Why OD?Most cited reasons for beginning change program: The level of competition.

Survival. Improved performance.


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Primary Goals of

Change ProgramsIncrease productivity.

Increase responsiveness.

Improve competitive position.Increase employee involvement.

Increase employee morale.

Develop new managerial skills.


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Table 1.2

Major Goals of Large-Scale Change Programs


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Factors Leading to

Emergence of ODNeed for new organizational forms.

Focus on cultural change.

Increase in social awareness.


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Successful Firms

Share These Traits Faster.

Quality conscious.

Employee involvement. Customer oriented.

Smaller.


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Changing Organization of Twenty-First Century


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OD in Practice:

Trilogy Software (part 1 of 2)Trilogy Software example of shifting organizational

structures.

Workers are shareholders, managers, and partners.

Biggest worry is not facing down other businesses.


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OD in Practice:

Trilogy Software (part 2 of 2)Depends on talented people.

Economy fostering new kinds of practices.

This case shows major element in planned change isplanning for organizational culture.


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Evolution of ODEvolved since the late 1940s.NTL Laboratory-Training methods.

Survey research and feedback.


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WhoDoes

OD? (part 1 of 3)OD practitioners consist of specialists and those

applying OD in daily work:

Professionals and specialists trained in OD. Managers and leaders applying OD.


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WhoDoes

OD? (part 2 of 3)OD specialists: Internal practitioners from within

organization. External practitioners from outside

organization.


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WhoDoes

OD? (part 3 of 3)Activities include:Team leaders developing teams.

Building learning organizations. Implementing total quality management.

Creating boundaryless organizations.


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Norms (part 1 of 2)Organized and shared ideas of what members should doand feel.

How behavior is regulated.


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Norms (part 2 of 2)Pivotal norms - essential to accomplishing organizationsobjectives.

Peripheral norms - support and contribute to pivotalnorms but not essential to organizations objectives.


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Socialization ProcessProcess that adapts employees to culture.New employees become aware of norms.

Employees encounter culture.Individuals understand power, status, rewards, andsanctions.


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Figure 1.3

The Socialization Process


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Adjustment to Cultural Norms and

Socialization Occurs in 3 Ways1. Rebellion - rejection of all values and norms.

2. Conformity - acceptance of all values and norms.

3. Creative individualism - acceptance only of pivotalvalues; rejection of others.


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Figure 1.4

Basic Responses to Socialization


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Psychological ContractUnwritten agreement between individuals andorganization.

Open-ended so issues may be renegotiated.


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A Model for ChangeOD is continuing process with emphasis on viewingorganization as total system of interacting andinterrelated elements.


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Figure 1.5

Organization Developments Five Stages


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Five-stage Model for OD Process(part 1 of 5)Stage one: Anticipating need for change.

Someone recognizes need for change.

There must be felt need for change.


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Five-stage Model for OD Process(part 2 of 5)

Stage two: Developing practitioner-client relationship.

OD practitioner enters system.

Good first impressions and match important.

Practitioner establishes trust, open

communication, shared responsibility.


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Five-stage Model for OD Process(part 3 of 5)Stage three: The diagnostic phase.

Practitioner and client gather data about system.

Objective is to understand clients problems,identify forces causing situation, and selectchange strategies.


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Five-stage Model for OD Process(part 4 of 5)Stage four: Action plans, strategies, and techniques.

Series of interventions, activities, or programsaimed at increasing effectiveness.

Programs apply OD techniques.


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Five-stage Model for OD Process(part 5 of 5)Stage five: Self-renewal, monitor, and stabilize.

As OD program stabilizes, need for practitionerdecreases.

Monitor results.

Stabilize change.

Gradual disengagement of OD practitioner.

Five Stems of OD Practice


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1950 1960 1970 1980 1990 2000Today

Five Stems of OD Practice

Curre

ntPracti

ce

Laboratory Training

Action Research/Survey Feedback

Normative Approaches

Quality of Work Life

Strategic Change


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Laboratory Training Background

Laboratory training began in 1946, when Kurt Lewin wasasked 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 thebehaviors they had observed

Thus the first T-group was formed in which people reacted

to data about their own behavior


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The researchers drew two conclusion about this first T-

group experiment

Feedback about group interaction was a rich learningexperience

The process ofgroup building had potential for learning

that could be transferred to back home situations

Applying T-group techniques to organizationsgradually became known as team building


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ACTION RESEARCH AND SURVEY FEEDBACK

BACKGROUND

Began in 1940s

John Collier, Kurt Lewin and William Whyte

Research needed to be closely linked to action if theorganization members were to use it to managechange.


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NORMATIVE BACKGROUND Human Relations approach is the one best way to

manage organizations

Likerts Participative Management Program : 4 types of

management systems: Exploitative Authoritative (System 1)

Benevolent authoritative (System 2)

Consultative (System 3) Participative group systems (System 4)

Likert applied system 4 management to organizationsusing the survey feedback process.


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Blake and Moutons Grid OD


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Productivity and quality of work

life backgroundThe 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

designThe distinguishing characteristics of this program was

developing self managing groups

Th d h f QWL ti d th b f


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The second 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


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Strategic Change Background Involves improving the alignment among the

organizations environment, strategy and organizationdesign.

Include efforts to improve both the organizationsrelationship to its environment and the fit between itstechnical , political and cultural systems.


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CASE TIME : TGIF

Documents

1 - Introduction to Od