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ORGANISATIONAL
DEVELOPMENT
Dr Bhavana Adhikari
TEST YOURSELF
1. Which of the following best describes organizational culture?A. Geographic location of the workplace B. The collective behaviors of individuals within an organization C. Organizational procedures, manuals and dress codes D. Superficial details indicating how things are done
2. Which of the following has the most significant influence on the formation of an organization’s culture?A. Union representatives and bargaining agreementsB. HR policies and proceduresC. The organization�s approach towards total rewardsD. The industry, environment and leaders of the organization
3. Which of the following best describes why it is so difficult to change organizational culture? A. People are likely to keep their belief system even if data contradicts it B. Senior management will not support changes when a company is performing successfully C. It is costly to update all the policies and proceduresD. Supervisors lack good communication skills
4. Which of the following is key to look at when diagnosing the organization�s current culture? A. Recruiting methods B. Practices and behaviors C. Employee benefitsD. Other organizations in a similar industry
What is the desired outcome of a gap analysis? A. A strategy for communicating the changes B. A detailed picture of the current situation C. A realistic picture of where the organization wants to goD. A plan that leverages things that are working well and addresses issues that need to be changed
Which of the following is most accurate when planning to communicate the change? A. Provide different messages to different audiences over several months
B. Don’t over-communicate as it could lead to confusion and frustration C. Ensure all communications are sent directly from the change agent D. Communicate multiple times using multiple communication channels
WHY DOES ONE ORGANISATION FAIL WHILE
OTHER SURVIVES AND EXCELS
?
ORGANISATION DEVELOPMENT Planned , systematic approach to
change
OD comprises the long range efforts and programs aimed at improving an organisations ability to survive by changing its problem solving and renewal processes
ORGANISATION DEVELOPMENT Richard Beckhard
OD is an effort plannedorganisation widemanaged from the topto increase orgn effectiveness and health through
planned interventions in orgn processes using behavioural science knowledge
ORGANISATION DEVELOPMENT Not a micro approach to change
More than a single technique ( TQM, Reengineering, job enrichment……)
Does not include random or adhoc changes
More than just improving morale and attitude (overall orgn health)
CHARACTERISTICS1. Change (Planned change)2. Collaborative (involvement of all)3. Performance (enhance perf and
quality)4. Humanistic (increased use of human
potential5. Systems (Systems approach)6. Scientific (based on scientific
approaches)
OD benefits both the individual and the organisation
Who is a change leader?
Name some Indian Change Leaders?
•No organisation can escape change
•In the coming decades changes in external environment will occur so rapidly that orgn will need OD techniques just to keep pace with the innovation
•Warren Bennis – leading OD pioneer
•He has identified three factors as underlying the emergence of OD
i)The need for new organisational forms (more adaptive forms)
ii)Focus on cultural change
iii)Increase in social awareness
• List out at least 7 reasons why orgn embrace change?
• Read about the culture of innovativeness at 3M
..\Story of Post It.docx
The organisation of the 21st centuryFaster Quality Conscio
usEmploy
ee Involvement
Customer
orientedSmaller
New Competitors Domestic Multi Nationals
Competitive Uncertainity
Regulation Prices Suppliers
Technology New Products Technology/ Processes
Changing Consumers Lifestyles Trends
Evolution of OD
•Term Coined in 1950’s•Based on work by Kurt Lewin•Two sources
• Work at NTL• Work at Survey Research Centre (Univ of Michigan)
Who does OD
•OD specialists or OD consultants•Internal or external•People in leadership or managerial positions who apply OD to their work•OD practitioners – people who use ,advocate and others to implement OD
Organisation culture
•System of shared belief and meaning including• language, • dress, • behaviour patterns,• value systems,• attitudes,• interactions etc
Socialisation Process
Process that adapts employees to organisation culture
Socialisation Process
New employee
expectations
Encounters organisation culture
Adjustment to cultural
norms
Result 1.Performance2. Commitment3. Obtain goals
Basic Responses to Socialisation Process
RebellionCreative
individualism Conformity
Rejection of all values and norms
Acceptance of only pivotal values and rejection of all others
Acceptance of all values and norms
Creative individualism is the ideal behaviour for a healthy and effective orgn but it is very difficult for a newcomer to differentiate b/w pivotal and periheral norms
MODEL FOR OD – 5 STAGES
Stage 1Anticipate need for change
Stage 2Develop the practitioner
client relationship
Stage 3The diagnostic
phaseStage 4
Action Plans, Strategies and
Techniques
Stage 5Self Renewal, monitor and
Stabilize
Stage 1: Anticipate need for change
•Felt need•Sensitivity to changes in environment
Stage 2: Develop the practitioner client relationship
•OD practitioner enters•Client- person/orgn that is being assisted•Build openness andtrust
Stage 3: The diagnostic phase
•After working rel has been established b/w practitioner and client , they collect data about the system and problem
•Analyse data to identify problem areas and causal relationships
Stage 4: Action Plans, Strategies and Techniques
•OD techniques- TQM, process reengineering, team building, intergroup development, job re design
•Max time spent on this stage
Approaches to change
•Organisations operate in environments ranging from relatively stable to a hyperturbulent environment
Approaches to change
•Stable environment-1. Unchanging basic
product and services2. Static level of
competition3. Low level of
technical innovationof growth
4. Slow and steady rate of growth
•Hyperturbulent environment-1. Rapidly changing
product lines2. Increasing and
changing set of competitors
3. Continual tech innovation
4. Rapid market growth
Renewing Transformational
Reactive
Satisficing Sluggish Thermostat
Model of Adaptive orientation in organisations
High Adaptive Orientation Low
Hyper turbulent
Stable
EnvironmentalStability
Sluggish-Thermostat Management
•Orgn that resists change till cost tradeoff favour it•Low risk, formalised procedures and a high degree of structure and control•Tendency to value tradition, value seniority over performance•May lead to problems in the long run•Auto industryFor some orgn slowness to to adapt
to changes comes from success rather than failure
Satisficing Management
•Centralised decision making
•High clarity of procedures and roles
•Change occurs at a rate that is good enough to keep pace with the industry
•This is because there is low pressure from the env to change
Reactive Management
•Have to deal with problems on short run crisis basis
•Style of reacting after env has changed
•Crisis management- replacement of key personnel, hasty reorganisation, salary cuts, cutting products
Renewal/ Transformational Management
•Introducing change to deal with future condn in anticipation• IBM, 3M
Todays orgn need to develop a renewal/ transformational
orientation if they are to maintain competitive edge
Renewal/ Transformational Management
•Introducing change to deal with future condn in anticipation• IBM, 3M
Todays orgn need to develop a renewal/ transformational
orientation if they are to maintain competitive edge
NIRMA STORY
Dr. Karsanbhai Patel
Started in 1969 with one man
Employs more than 15000 employees
SYSTEMS APPROACH
• Views organisaton as a unified system composed of interrelated units
•One of the most important concepts in OD because it deals with change and interrelationships in complex orgn
•Model of Horizontal Corporations- About managing across rather than vertically
•GE, DuPont , Motorola are moving towards this approach
•Flatter more adaptive organisations
Organisation as a System
• A system is a set of interrelated parts unified to achieve a goal•Characteristics of a system
i) Designed to accomplish objectiveii) Elements must have an
established arrangementiii) Interrelationships must existiv) Process ( flows of inf, energy,
matrl )
• Open System
•Closed System ( only theoritical)
INPUTS
Information
EquipmentFacilitiesMaterials
MoneyPeople
Technology
TRANSFORMATION PROCESS
OUTPUTS
ProductsGoods
Services
FEEDBACK FROM
ENVIRONMENT
EmployeesDepartment
s and Manages
CustomersInvestors
Govt
Orgaanisation as an open system
• Apply the systems model to i) Service organisationii) Manufacturing organisation
• An organisation is viewed as an open sociotechnical system of coordinated
• human and • technical activities
Approaches to a socio technical system
1. Organise around processes not tasks2. Flatten the hierarchy3. Use teams to manage everything4. Let customers drive performance5. Reward team performance
Components of organisation as a system
1. Goals and values subsystem (mission,vision)
2. Technical subsystem3. Structural Subsystem (orgn design,
policies , procedures)4. Psychosocial subsystem ( culture )5. Managerial subsystem ( integrates the
activities of the other subsystems)
British miners
“Short wall”“Long wall”
Unfortunately the longwall method resulted in lower perf and higher absenteeism- production decreased because they failed to consider the impact on sociotechnical system
High Performance systems
•High performance systems do not occur by chance or by policy – they are DESIGNED• Hannas high performance model focuses on 5
key variablesi) Business situation ( forces in the environment)ii) The business strategy ( goals and values)iii) Design elements ( technology structure etc)iv) Culturev) Business results
Contingency approach
•Systems approach gives a conceptual overview
• Contingency approach- there is no one best way of managing all situations
•OD Practitioner must design strategies accordingly
Future Shock
•Too much change in too short a time
•Strain on managers- need to be very adaptable
Organisational Transformation and OD•Two approaches to managing change
•OT•OD
Organisational Transformation and OD•Difference between OT and OD centres on the magnitude and speed of change
•OT refers to significant changes introduced in a short almost immediate time frame to deal with crisis or survival problems- changes in orgn form shape or appearance
•OD involves large scale change over a longer time frame on a more gradual basis
OD- Planned Change
•OD focuses on
•i) Individual effectiveness •Ii)Group effectiveness•Iii)Organisational effectiveness
•All OD approaches rely on some theory of planned change
•Lewin change model•Action research model•Positive model
Lewins Change Model
•Two sets of forces•Forces pushing for change•Forces striving to maintain status quo
• Change can be brought about by either • Increasing the forces pushing for change
OR• Decreasing the forces striving to maintain
status quo
•Which would be a better change strategy?
•Decreasing restraining forces or•Increasing pushing forces
Lewins Change Model
•Unfreezing
•Moving
•Refreezing
Action Research Model
•Focuses on planned change as a cyclical process
• Initial information about the organisation provides information to guide action and results of the action areassessed to provide further information to guide further action and so on
Action Research Model- 8 STAGES
1. Problem identification
2. Consultation with a behavioral science expert
3. Gathering data and preliminary diagnosis (interviews, questionnaires, process observation and organisational performance)
Action Model- 8 STAGES
4. Feedback to a key client or a group- Since it is a collaborative process the diagnostic data is usually fedback to the client usually in a group or a work team meeting
5. Joint diagnosis of the problem
6. Joint action planning (depending on the culture, technology, environment, cost, time etc)
Action Model- 8 STAGES
7. Action – May include installing new procedures and methods, re-organising structures and work, reinforcing new behaviour.
8. Data gathering after action
Action Research Model and Lewins model focus primarily on problems and how they can be solved to function better
Positive model ( through Appreciative Inquiry ) focuses on what the organisation is doing right
APPRECIATIVE INQUIRYPROBLEM SOLVING
ORIENTATION
Fill the Gap
APPRECIATIVE ORIENTATION
Realize the Possibilities
CURRENT STATE
THE QUESTIONSWhat’s wrong?
How do we fix it?
PAST FUTURE
THE QUESTIONSWhat’s working?
What’s possible?
What shall we do to achieve it?
Appreciative inquiry- 5 STAGES
1. Initiate an inquiry
2. Inquire into best practices ( collect data)
3. Discover the themes
4. Envision a preferred future
5. Design and deliver
ROLE AND STYLE OF OD PRACTITIONER
EXTERNAL & INTERNAL PRACTITIONERS
•OD practitioners who are specialists- professionals who have been trained in this field
•External
• Internal
EXTERNAL PRACTITIONERS
•Referred to as consultants
•Not a part of the client system – Hired from outside
EXTERNAL PRACTITIONERS
•Advantages•Higher degree of influence and status
•Less in awe of power wielded by orgn members
•Tend to have more independent attitude and risk taking inclination
EXTERNAL PRACTITIONERS
•Disdvantages•May not be familiar with culture,power dynamics etc
•Problems gathering information •Lack of trust
INTERNAL PRACTITIONERS
•Already a member of the orgn- either a top executive who initiates change or someone from HR deptt or OD deptt
•Many orgn have created internal OD practitioners ( Disney, GM, GE etc)
INTERNAL PRACTITIONERS
•Advantages•Familiar with culture and acceptable norms
•Less time wasted in familiarising
•Themselves have a stake
INTERNAL PRACTITIONERS
•Disadvantages•May lack adequate trg and skills
•May not have power•Taken for granted•May be more accomodating•May not have adequate time if handling other responsibilities as well
EXTERNAL INTERNAL PRACTITIONER TEAM
OD PRACTITIONER STYLES
•Change begins with Intervention
•Intervention refers to practitioners entry into the client system and includes different roles and activities
OD PRACTITIONER STYLES
• Two dimensions•Accomplishing goals i.e. effectiveness
• Degree of emphasis on relationships and participant satisfaction i.e. Morale
OD PRACTITIONER STYLES
Persuader
High
MORALE
LowLow Effectiveness High
Cheerleader
Stabilizer
Pathfinder
Analyzer
OD PRACTITIONER STYLES
• Stabilizer• Neither effectiveness nor participant satisfaction
•Practitioner maintains low profile
•Typically found in large orgn where OD is just a staff function and not highly regarded by top management
OD PRACTITIONER STYLES
• Cheerleader Style• More concerned with participant satisfaction
•Practitioner seeks warm working relationship
•Minimizes confrontation and maintains harmony
OD PRACTITIONER STYLES
• Analyzer Style• More concerned with efficiency and little
concern for participant satisfaction
• Practitioner may be quite confrontational usually relying on authority to resolve conflicts
• Based on the belief that practitioner has specialised knowledge and client does not need to know the skills to solve problems
OD PRACTITIONER STYLES
• Pathfinder Style• High degree of effectiveness and high degree
of member satisfaction
• Practitioner follows a collaborative problem solving approach by focusing on critical issues
OD PRACTITIONER STYLES
• Pathfinder Style(Contd)• Pathfinder style focuses on six processes
i) Communicationii) Member role and functionsiii) Group problem solvingiv) Group norms and growthv) Leadership and authorityvi) Intergroup cooperation and competition
FORMING PRACTITIONER- CLIENT RELATIONSHIP
PRACTITIONER- CLIENT RELATIONSHIP
• Viewed as a system of interacting elements
i) Practitioner
ii) Client sponsor or contact – Person or group in the organisation who has requested for practitioners help and interfaces with the practitioner
iii) Client target system – Actual target of the OD
Practitioner Style model
•There is often a gap between the practitioners and the clients understanding about OD and change
•Practitioner needs to understand this gap and develop his style
Practitioner Style model
Practitioner Knowledge ,
Skills Values and Experience
Practitioner Task,
Performance, Expectations and rewards
Practitioner Style and
Approaches
Client Systems expectations and Values
Target organisation’s readiness for
change
Developing a trust relationship
•Openness between client and practitioner
•Some responses the practitioner can usei) Questions – “ How do you see the
organisation”ii) Advising – “ One possible idea is team
building”iii) Reflection – “It seems that you would like to
see a participative leader”iv) Interpretation – “ From our description,
interteam conflict could be the problem”v) Self disclosure – “ I have fely discouraged
myself when ideas were rejected”vi) Silence – Say nothing let the client sort out his
own problems
Practitioner Client Relationship
High
Open to others shares ideas and feelings
LowLow Accepts personal High
responsibility for own behaviour
CharismaticOpen to others but reject responsibility
Modes of Client Practitioner relationships
ConsensusOpen to othersAccepts responsibility
ApatheticClosed to othersReject responsibility
GamesmanshipClosed to others but accepts responsibility
Apathetic mode
•Members keep their ideas to themselves assuming that expressing them would make no difference
•Follow what is instructed and take no responsibility
Gamesmanship mode
•Members keep their ideas to themselves assuming that sharing information may threaten personally desired outcomes
•Make own decisions about how to behave thus taking responsibility for their behaviour
•May conform outwardly but manipulate inwardly
Charismatic mode
•Limited number of members share their ideas openly
•However are dependent on leaders for results
Consensus mode
•Members continuouslt share feelings
•Maintain ones responsibility for action
Contract between Practioner- Client
•Psychological contract
•Formal contract specially in case of external practitioner
•Internal practitioner does not need formal contract but operating ground rules are essential
Contract between Practioner- Client
•Formal contract – It generally contains the following
i)The point of contact- Who will practitioner be contacting
ii) The role of practitioner – Is he to be an expert or an advisor or a process helper
iii)The fees – hourly, daily, project based
iv) Schedule
v) The anticipated results
Contract between Practioner- Client
•Operating ground rules–
1) The point of contact which will usually include the top manager
2) The requirements of orgn members such as being present for meetings
3) Confidentiality of information
…………………………………..
Red flags in Practioner- Client relationship
1) Level of Commitment to change – May be low or may be verbally expressed but incongruent with actions
2) Degree of leverage or power to influence change
3) Clients manipulative use of the practitioner