Organization Development

About Organization Development (OD)

Relatively new field of study 50s & 60s OD is about how organizations and people function and how to get them function better Start Point when the leader identifies an undesirable situation and seeks to change it.

Focus - Making organizations function better (total system change).

Orientation - Action (achieving results through planned activities). No unifying theory just models of practice OD is an organization improvement strategy

Focus
Change new state of things, different from old state of things Can be viewed as an opportunity or as a threat Change First order change (making moderate adjustments) Second order change (reinvent, reengineer, rewrite)

What needs to be changed and how to go about it

OD consultants are experts in organizational change

Orientation
Diagnosing Taking Action Re-Diagnosing Taking New Action This process is known as

Action Research
Three ingredients: 1. Participation 2. OD consultant (as collaborator & colearner) 3. Iterative process of diagnosis & action

Change occurs based on the actions taken New knowledge comes from examining the results of the actions.

History of OD
Four major stems of OD (1) T-group (2) Survey Feedback Technology (3) Action research (4) Sociotechnical & Socioclinical approaches

(1) T-Group (Laboratory Training) participants learn from their own actions and the groups 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.

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 accepted values and beliefs of 1960s Decentralized decision making

Collaboration and cooperation

Appropriate use of powers Authentic interpersonal relationships

Second-Generation OD
Organization Transformation Organizational Culture Learning Organization Total Quality Management Visioning and Future Search Business Process Reengineering Quality of Work Life

Organizational Development is planned change in the organizational context. In this context of change it is necessary to refer to Kurt Lewin He has provided two principle ideas viz. 1. 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.

Models and theories

2. The second contribution is the change itself. He has described a three- stage process viz. Change is a three-stage process
Kurt Lewin 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

Models and theories Contd..

Seven stage model representing the consulting process Phase 1 Developing a need for change. Phase 2 Establishing the change relationship. Phase 3 Diagnosing the client systems problem. Examining alternative routes, establishing goals Phase 4 and intentions of action. Phase 5 Transforming intentions into actual change efforts. Phase 6 Stabilizing change. Phase 7 Achieving a terminal relationship.

Models and theories Contd..

1. The culture track 2. The management skills track 3. The team-building track
Ralph Kilmann

Five critical leverage points (tracks) for organization change

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
AT&T, Eastman Kodak, Ford, General Electric, Xerox etc.

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.

ORGANIZATIONAL DEVELOPMENT The Burke-Litwin Model of Organizational Change (a) First-order change- transactional, evolutionary, adaptive, incremental, or continuous change (b) Second-order change- transformational, revolutionary, radical, or discontinuous change n.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-Order 1. Structure 1. Mission and Strategy 2. Management Practices 2. Leadership 3. Systems 3. Organizational Culture (Transactional) (Transformational) Distinguishing Organizational Climate and Organizational Culture. Climate- peoples perceptions and attitudes about the organization Culture- deep seated assumptions about values and beliefs that are enduring, often unconscious and difficult to change

ORGANIZATIONAL DEVELOPMENT( First) Management Practices

Structure

Systems Policies & Procedures

Work Unit Climate

Motivation Task Requirements & Individual Skills/Abilities

Individual &
Organizational Performance

Individual Individual Needs Needs & & Values Values

ORGANIZATION DEVELOPMENT(Second) External Environment.

Leadership

Mission & Strategy

Organizational Culture

Individual & Organizational Performance

The Burke-Litwin Model of Organizational Performance and Chang

External Environment Mission & Strategy

Structure

Leadership
Management Practices Work Unit Climate

Organizational Culture
Systems (Policies & Procedures)

Task Requires & Individual Skills/ Abilities

Motivation Individual & Organizational Performance

Individual Needs & Values

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 2

Organizing arrangements
Social factors Physical setting Technology

Work setting factors

3 4

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

Systems Theory
Organizations are open systems in active exchange with their environment
David A. Nadler

The Congruence Model

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.

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.

SYSTEM IN INTERACTION WITH ITS ENVIRONMENT

Sources of Transforming Energy Materials Inputs Mechm.Mechan Outputs Users Information Human ReExternal Interface sources Internal Interface Feedback Mechanisms Feedback Mechanisms

ISSUES REGARDING SYSTEMS THEORY 1. All open systems are input-throughput-output mechanisms 2. Every system is delineated by a boundary. What is inside the boundary and what is outside the boundary. 3. More exchange takes place inside the boundary than outside the boundary. 4. Open systems have purposes and goals 5. The law of entrophy states that all systems run down and disintegrate unless they reverse the entropic process by importing more energy than they use. 6. Information is important to systems in several ways. 7. Feedback is information to the organization from the environment. 8. Feedback can be positive or negative 9. Deviation-correcting feedback e.g. satelite mission off target(negative): or return to earth (positive) 10. 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.

CONGRUENCE MODEL SHOWING ORGN. AS A SYSTEM

INFORMAL ORGANIZATION

INPUT Environment Strategy Resources Work History

OUTPUT System Formal Organization Unit

Individual

People

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.

Teams & Teamwork

Many tasks are so complex that they cannot be performed by individuals; people must work together to accomplish them. Putting those empowered individuals into teams creates extraordinary effects on performance. Teams create synergy i.e. sum of efforts of team is far greater than sum of individual efforts.
Characteristics of successful teams
1. clear, elevating goal

2. result driven structure

3. competent members 4. unified commitment

5. collaborative climate
6. standards of excellence 7. external support and recognition 8. principled leadership ..Larson & LaFasto

A number of OD interventions are specifically designed to improve team performance. Examples team building, quality circles etc.

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

In large bureaucratic organizations : 1. 2. 3. High forces of inertia Hierarchical communication pattern Standard ways of addressing problems

Inhibit : learning Innovation Change

Here parallel learning structures are best way to initiate change

Normative-Reeducative 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.

Applied Behavioral Science

OD is an application of behavioral science Pure/ Basic Science
Generating knowledge

Applied Science
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.
Practice Research Practice Theory
Applied Science Pure/ basic science

What helps me solve this problem?

Applied Behavioral Science What helps me solve real problems? Behavioral Science Research

Behavioral Science Theory

Action Research
Data Collection
Feedback of data to client system members Action planning based on the data Taking action Evaluating results of actions Diagnostic Types Diagnostic Participant Empirical

Experimental

Researcher enters a problem situation, diagnoses it and make recommendations for remedial treatment (recommendations may not be put into effect by client group) 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)

Participant

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)

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 organizations functioning. The program management component is designed to ensure success of the program. Diagnosis involves; 1. What are its strengths? 2. What are its problems? 3. What are its unrealized opportunities?

4. Discrepancy between desired situation and current situation?

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 organizations functioning Program All activities designed to management ensure success of the program

Diagnosing Organizational Subsystems

Diagnostic targets
The total organization

Information sought
Q) What is organizations culture? Q) Are organizational goals and strategy understood and accepted? Q) What is organizations performance? Q) What are the unique demands on this subsystem? Q) Are organization structures and processes related to unique demands? Q) What are the major problems confronting this subsystem? Q) What are major problems of the team? Q) How can team effectiveness be improved? Q) Do individuals know how their jobs relate to organizational goals?

Methods of Diagnosis
Examination of organizational records rules, regulations, policies Questionnaire survey Interviews (both group & individual) Questionnaire survey Interviews Observations Organization records Individual interviews group meeting to review the interview data Questionnaires Observation of staff meetings and other dayto-day operations Interviews of each subsystem followed by sharing the data meeting Flowcharting critical processes Meetings between both groups

Large and complex subsystems

Small and simple subsystem

Intergroup subsystems Q) How does each subsystem see the other? Q) What problems do the two groups have in working together? Q) How can they collaborate to improve performance of both groups? Individuals

Q) Do people perform according to organizations Interviews expectations? Information from diagnostic meetings Q) Do they need particular knowledge or skills? Data available with HR department Q) What career development opportunities do they have/ want/ need? Q) Is the role defines adequately? Q) What is the fit between person and role? Q) Is this the right person for this role? Role analysis Observations Interviews

Roles

Diagnosing Organizational Processes

Organizational Processes
Communication patterns, styles & flows Goal setting

Information sought

Methods of Diagnosis

Q) Is communication open or closed? Observations in meetings Q) Is communication directed upward, downward, Questionnaires laterally? Interviews and discussion with group Q) Are communications filtered? .. Why? How? members Q) Do people set goals? Q) Who participates? Q) Do they possess necessary skills for effective goal setting? Q) Who makes decisions? Q) Are they effective? Q) Are additional decision making skills needed? Questionnaires Interviews Observations Observations of problem-solving meetings Analysis of videotaped sessions Organizational records Interviews Flowcharting critical processes Meetings between both groups

Decision making, problem solving & action planning

Conflict resolution and Q) Where does conflict exist? management Q) Who are involved parties? Q) How is it being managed?

Superior-subordinate relations

Q) What are the prevailing leadership styles? Q) What problems arise between superiors and subordinates?

Questionnaires Interviews

Strategic management Q) Who is responsible for looking ahead and & long range planning making long term decisions? Q) Do they have adequate tools and support? Q) Have the recent long range decisions been effective?

Interviews of key policy makers Group discussions Examination of historical records

Diagnosis The Six-Box Model

Purposes Marvin Weisbord 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 Relationships Leadership Structure

Helpful Mechanisms

Rewards

Actions
Interventions are the actions taken to produce desired changes.

Four conditions that give rise to the need for OD interventions:

1. The organisation 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. Yesterdays vision is no longer good enough (action for new vision actions to build necessary structures, processes and culture to make new vision a reality)

Interventions
Major families of OD interventions: 1. Diagnostic 2. Team-Building 3. Intergroup 4. Education and Training 5. Structural 6. Process Consultation 7. Grid Organization Development 8. Third-Party Peace Making 9. Coaching and Counseling 10.Life and Career Planning 11.Planning and Goal Setting 12.Strategic Management
Each of these families of interventions includes many activities

Example : Team Building Interventions

Diagnostic meetings Team building focused on goal setting, decision making, problem solving etc. Building & mainitaining effective interpersonal relationships Role analysis techniques for role clarification & defination

Intact work teams

Team building interventions

Team building focused on task accomplishment

Special teams

Task allocations Interunit conflicts Role negotiation

Program Management
Cummings and Worley identified 5 sets of activities required for effective change management:

Motivating Change

Creating a Vision
Developing Political Support Managing the Transition Sustaining Momentum Effective Change Management

Program Management Contd..

Kotters 8-stage process for managing organizational change:
1 2 3

Establishing a sense of urgency Creating a guiding coalition Developing a vision and strategy Communicating the change vision
John P. Kotter HBR, Mar-Apr 1995, p.61

4
5 6 7 8

Empowering a broad base of people to take action Generating short term wins Consolidating gains and producing even more change

Anchoring (institutionalizing) the new approaches into the culture

STAGES IN THE O.D. PROCESS

1. ENTRY
2. CONTRACTING 3. DIAGNOSIS 4. FEEDBACK 5. PLANNING CHANGE

6. INTERVENTION
7. EVALUATION

Summary

OD can make a difference

Good understanding Proper response Adaptability

www.odnetwork.org
An international association of professionals engaged in work that makes organizations healthier and more effective

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How much do you know about the effects of organizational development on the people affected by the change?

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