Introduction to Work and Organizational Psychology

Gerhard Ohrband15th lectureOrganizational Change and Development

Course structure

Part I Introduction1 Managing diversity2 History and context for Work and Organizational

Psychology / Roles and methods

Part IIPeople at work3 Job Analysis and Design4 Personal Selection5 Training

Course structure

6 Performance Appraisal: Assessing and Developing Performance and Potential

7 Job Stress and Health

Part IIIHuman Factors at Work8 Workload and Task Allocation9 Work Environments and Performance10 The Design and Use of Work Technology11 Safety at Work

Course structure

Part IVOrganizations at Work12 Leadership and management13 Work motivation14 Teams: the challenges of cooperative work15 Organizational development (OD)

Part IV – Organizations at Work15 Organizational Change and Development

Outline:1. Organizational Strategy, Structure

and Change2. Organizational Culture and Change3. Organizational Development: an

Approach to Lasting Change

The Nature of Change

Breakpoint evolution of personal computer industry

Diagnosing change situationsHard situations or difficulties Tend to be smaller Originate internally Are less serious in their implications Can be considered in relative isolation from

their organizational context Have clear priorities as to what might need be

done Generally have quantifiable objectives and

performance indicators Have a systems/technical orientation Generally, involve relatively few people Have facts which are known and which can

contribute to the solution Have agreement by the people involved on

what constitutes the problem Tend to have solutions of which the type at

least is known Have known timescales

Soft situations or messes Tend to be larger scale Originate externally Have serious and worrying implications for all

concerned Are an interrelated complex of problems

which cannot be separated from their context Have many people of different persuasions

and attitudes involved in the problem Have subjective and at best semi-quantifiable

objectives Not everything is known and it is not clear

what needs to be known Have little agreement on what constitutes the

problem let alone what might be possible solutions

Have usually been around for some time and will not be solved quickly, if at all, bringing about an improvement may be all that can be hoped for

Fuzzy timescales Are ‘unbounded’ in that they spread

throughout the organisation and, sometimes, beyond.

The strategy-structure ‘fit’Product/market strategy Organization structure Core activating and control

mechanisms

1800 Single product or service. Local/regional markets

Agency Personal direction and control

1850 Limited, standardized product or service line. Regional/national markets

Functional Central plan and budgets

1900 Diversified, changing product or service line. National/international markets

Divisional Corporate policies and division profit centres

1950 Standard and innovative products or services. Stable and changing markets

Matrix Temporary teams and lateral resource allocation devices such as internal markets, joint planning systems, etc.

2000 Product or service design. Global, changing markets

Dynamic network Broker-assembled temporary structures with shared information systems as basis for trust and coordination

Structures for change ‘organically’ structured organizations were

inherently more able to cope with change, whatever their strategy, than organizations structured on ‘mechanistic’ lines

Virtues of ‘project’ organizations and ‘loosely coupled organic networks’ in the context of turbulent, dynamic environments

The ‘virtual organization’

Contingency or ‘one best way’ Organizations are able, to some extent, to

manipulate their environments E.g., political decisions can be influenced

through lobbying, customers influenced by advertising and people’s expectations of employment influenced by the way groups of organizations design jobs

‘strategic choice’ (Child, 1972)

3. Organizational Culture and Change

The meaning of culture

Schein (1992, p.6): “The deeper level of basic assumptions

and beliefs that are shared by members of an organization, that operate unconsciously and define in a basic ‘taken for granted’ fashion an organization’s view of its self and its environment.”

The pervasiveness of culture

Cultural webs (Johnson and Scholes, 1997) Paradigm Symbols Stories Rituals and routines Controls Organization structure Power structures

Cultures for changeSegmentalist cultures Compartmentalize actions, events and

problems See problems as narrowly as possible Have segmented structures with large

numbers of departments walled off from one another

Assume problems can be solved by carving them up into pieces, which are then assigned to specialists who work in isolation

Divide resources up among the many departments

Avoid experimentation Avoid conflict and confrontation Have weak coordinating mechanisms Stress precedent and procedures

Integrative cultures Are willing to move beyonf received

wisdom Combine ideas from unconnected

sources See problems as wholes, related to

larger wholes Challenge established practices Operate at the edge of competencies Measure themselves by looking to

visions of the future rather than by referring to the standards of the past

Create mechanisms for exchange of information and ideas

Recognize and even encourage differences, but then be prepared to cooperate

Are outward looking Look for novel solutions to problems

Changing organizational culture to bring about organizational change

Morgan (1989, p.158):“Changing corporate culture is not like

changing a suit of clothes. One can change surface appearances, e.g. by giving the corporation a new image … and espousing new philosophies and beliefs. But to have a significant and lasting impact, basic values also have to change.”

Assessing cultural risk

Scan --

4. Organizational Development: an Approach to Lasting Change

Stage 1a and 1b: The present and the future

Stage 1a - gathering data not only about the organizational environment but also on matters internal to organizations, such as:

Individuals’ motivation and commitment to their work and organization

Recruitment practices, career paths and opportunities Prevailing leadership styles Employee training and development provision Intra- and inter-group relationships Organizational structure and culture

Stage 2: Gain commitment to the vision and the need for change

Lloyd and Feigen (1997, p.37):“Vision statements only work when the

needs of those at the bottom of the organization are integrated upwards with the needs of the market”

Jones (1994, p.49):“listening to the organization”

Stage 3: Develop an action planCompetencies of effective change agents (Buchanan and

Boddy, 1992):Goals1 Sensitivity to changes in key personnel, top

management perceptions and market conditions, and to the way in which these impact on the goals of the project at hand

2 Clarity in specifying goals, in defining the achievable3 Flexibility in responding to changes outside the control

of the project manager, perhaps requiring major shifts in project goals and management style, and risk taking

Stage 4: Implement the change

Six ways in which short-term wins can help organizational transformations (Kotter, 1996):

Provide evidence that sacrifices are worth it Reward change agents with a pat on the

back Help to fine-tune visions and strategies Undermine cynics and self-serving resisters Keep bosses on board Build momentum

Stage 5: Assess and reinforce the change

Measuring the softer issues associated with change:

1. A regular survey or cultural audit2. Interviews with individuals or focus groups3. An examination of turnover and

absenteeism rates4. An analysis (through observation or

questionnaire) of group performance5. ‘Picturing’ the organizationReinforcing and consolidating change

Discussion Points1. Discuss the proposition that ‘All change can be

categorized as either incremental or frame-breaking’. Use examples from your own experience of nature of change in institutions

2. How useful are the concepts of ‘hard’ and ‘soft’ change situations for determining an appropriate approach to designing and implementing organizational change?

3. Explain what is meant by ‘assessing cultural risk’.4. Discuss the advantages and disadvantages of using

an OD approach to design and implement organizational change.

Literature Buchanan, D. and Boddy, D. (1992). The expertise of

the change agent: public performance and backstage activity. Hemel Hemstead: Prentice Hall.

Schwartz, H. and Davis, S.M. (1981). Matching corporate strategy and business strategy. Organizational Dynamics, Summer, 30-48.

Johnson, G. and Scholes, K. (1997). Exploring corporate strategy: texts and cases. Hemel Hemstead: Prentice Hall.

Kotter, J.P. (1996). Leading change. Boston: FIBS Press.