ORGANIZATIONAL DEVELOPMENT

Contents
Understanding OD Definitions History Underlying Assumptions & Values

What is OD?
Essar Group- Institutionalizing a Coaching Culture LSIP

Definitions

Definitions

OD is an effort 1) planned, 2) organization wide & 3) managed from the top to, 4) increase organization effectiveness and health through 5) planned interventions in the organizations processes, using behavioralscience knowledge (Beckhard, 1969)

O.D may be defined as a systematic, integrated and planned approach to improve the effectiveness of an enterprise. It is designed to solve problems that adversely affect the operational efficiency at all levels (Koontz,1980)
OD is a planned process of change in an organizations culture through the utilization of behavioral science technologies, research and theory (Burke, 1994)

Definition French & Bell (Pg 26-29)

OD is a long-term effort, led & supported by top management, to improve the organizations visioning, empowerment, learning and problemsolving process, through an on-going, collaborative management of organization culture with special emphasis on the culture of intact work teams & other team configurations using the consultant-facilitator role & the theory and technology of applied behavioral science, including action research.

Characteristics of OD

Focuses on culture & processes Encourages collaboration between leaders & other employees in managing culture & processes Teams are the target of most OD activities Focuses on the Human & Social side of orgn Participation in problem solving & decision making by all levels Views organizations as complex social systems Its goals is to make the orgn solve its own problems through self-analysis Developmental view for betterment of both individuals & the orgn

History

The 4 Stems of OD (Old)

Innovation in application of Laboratory Training
Tavistock Sociotechnical and Socioclinical Approach Survey Research and Feedback Methodology Action Research

1. The Laboratory Training System

T GROUP Learn from their own interactions

A small, unstructured group in which participants learn from their own interactions & evolving dynamics about issues such as interpersonal relations, personal growth, leadership & group dynamics Founded by Research Centre for Group Dynamics (RCGD) in 1945 by Kurt Lewin Later contribution by Kurt Lewin, Kenneth Benne and Leland Bradford. (leaders of learning group) Added methods like role-plays and flip charts Evolved into NTL National Training Laboratory This type of method used in adult education and group therapy.

Psychodrama Exercises - Imagery

Exercise 1: "Imagine a person with whom you have some unfinished business. If you remember two flip a coin in your mind to pick one." Help any group member who is having difficulty identifying someone. "Imagine yourself facing that person. Notice the shape of their face, their expression, their posture, what they are wearing, etc. (go through the five senses to set the scene). Talk to that person or allow them to talk to you." Exercise 2:Pictures at an Exhibition "Allow a memorable portrait to come in to your mind. Let it emerge on the wall of your mind. What are you feeling as it is emerging? Who is in it? What kind of frame does it have? Is your place in the picture or outside of it? As it becomes clearer what kind of feelings are you having? Role reverse and speak for each person in the portrait. Choose group members to represent the people in your portrait and arrange them. What would you like to change in your portrait?"

Psychodrama Exercises - Structured

Action Spectrogram: "Arrange yourself across the room in terms of how into the treatment program (this group) you are now with this wall representing being very into it and this opposite one representing being very much out of the program (or group)." Allow each member take a position and state the reason for their choice of position. Observe commonalities and themes. Human Map: "Rearrange yourselves spatially around the room to show where you were born. This way is North, this way South, and East, and West. Talk with each other to find your right place. Now move to where you were before you arrived here." The director now can work with one specific person and let them tell how they got to where they are now. Questions like "what significant things are happening there," or "what are you feeling like there," or "who did you leave behind" can lead into a psychodramatic enactment.

Contributions in Laboratory training system

ROBERT TANNENBAUM

Took sessions on team building Used vertically structured groups i.e. with all managers of a given work unit present for personal and organisational topics

CHRIS ARGYRIS

First to conduct team building sessions for CEO and Top executive teams. Worked with renowned members of National Training Laboratory (NTL) and himself contributed to laboratory training

Contributions in Laboratory training system

DOUGLAS MCGREGOR

Helped in application of T-Group skills to complex organisations. Used behavioural science knowledge to help line managers be more effective in groups..

HERBERT SHEPARD & ROBERT BLAKE

Used a combination of the case method, exrecises & lectures with the lab method Focused on inter-group as well as interpersonal relations e.g. inter-functional problem solving Rejected the stranger-type labs to inter-group projects

Contributions in Laboratory training system

ROBERT BLAKE & JANE MOUTON

Developed the Managerial Grid Focused on system rather than individuals within tehsystem

2. Survey Research & Feedback Stem

Techniques and approach developed by staff members at the Survey Research Center of the University of Michigan over a period of years. They discovered that research needed to be closely linked to action if the organization members were to use it to manage change A key component of most action research was studies was the systematic collection of survey data that was fed back to the client organization The findings are first reported to top management & then communicated through the organization The feedback sessions were conducted in task groups with bosses & subordinates discussing the data together

Contributors
RENSIS LIKERT Techniques for the measurement of attitudes. Used five point Likert scale

Contributors
FLOYD MANN, RENSIS LIKERT Evolution of the survey-feedback methodology Change occurred when managers shared survey results with subordinates and planned improvement actions with them

3. Action Research Stem

Preliminary Diagnosis Data Gathering from client Data feedback to the client Data Exploration

Action Planning by client group

4. Sociotechnical & Socioclinical stem

Provided psychotherapy based on psychoanalytic theory Integrates social requirements of employees with technical requirements needed to do work in provided environment

Contributors

W R Bion, John Rickman

o o

Group therapy Experiment on soldiers

Eric Trist
Coal mine where he applied the concept of leaderless groups & encouraged miners to form teams and run all processes rather than the traditional assemblyline structure o Work redesign & semi autonomous work teams
o

Tavistock
Included the non executive ranks of orgn, with greater focus on teams o Use of action research & greater participation
o

The 5 Stems of OD (New)

Laboratory Training CURRENT OD PRACTICE

Action Research/ Survey Feedback

Normative Approaches

Quality of Work Life

Strategic Change

1950

1960

1970

1980

1990

2000

TODAY

Second Generation of OD
1. 2. 3. 4. 5. 6. 7.

8.
9. 10.

Interest in Organizational Transformation Interest in Organizational Culture Interest in Learning Organizations Intensified interest in teams TQM Interest in visioning Large Meetings Quality of work life programmes Valuing Diversity Appreciative Inquiry

Assumption & Values in OD

Underlying Assumptions

The basic building blocks of orgns are groups, therefore the basic units of change are groups, not individuals Orgns can benefit from reducing inappropriate competition between parts of an organization & developing more collaborative conditions Decision making in healthy organizations is located where the information sources are, rather than in a particular role/ hierarchy Orgns/ depts & individuals, manage their affairs against goals Healthy orgns develop open communication, mutual trust & confidence between & across levels People support what they help create people must be allowed to participate in planning & driving change to build a sense of ownership

Underlying Values

Individual is and should be more independent and autonomous. Individual has and should have choice with regard to his work and leisure. Once the basic needs are met, Individuals strive for realizing self worth and their potential Where individual needs are in conflict with organizational requirements, individual perhaps would choose to meet his own needs rather than submerge them in organizations needs. Work should be made meaningful and stimulating thus providing for intrinsic rewards in addition to adequate extrinsic rewards. Managers should manage by influence than through force or reward power. The power vested in bosses is and should be reduced

Implications in dealing with Individuals

Assuming that a) people drive towards personal growth & development, if provided with an environment that is supportive & challenging & b) can contribute much more than orgns environments permit, then: Orgns need to support, challenge, listen, give greater autonomy, permit greater risks & failures and reward success for much higher results

Implications in dealing with Groups

Assuming that a) peoples immediate work group i.e. peers & boss, greatly influence feelings of satisfaction & competence b) most people wish to interact with & be accepted by their reference groups then: Orgns must a) let teams flourish b) leaders should invest in group development & creating a positive climate c) leaders must develop a team leadership style not a one-onone style

Implications for running the Orgn

Assuming that needs & aspirations of human beings are the reasons for organized effort in society then: Orgns must have an developmental outlook & help people experience personal & professional growth

Salient issues in OD

The OD effort should begin at the top level of the management and permeate the organization till it reaches the lower levels. The external consultant helps in problem identification, problem solving and implementing action plan without creating dependency needs in the client system. In other words, the external agent helps the client to help himself so that the latter develops ability to function independently The client is either a particular target group or the total organization. Either of them as the client system has varying implications for OD effort. Identifying the needed change depends upon determining the nature and type of the problem within the organization. This may be done in terms of diagnostic studies that also tap the felt needs among employees

Salient issues in OD

Identifying and defining the problem as accurately as possible is a must as it determines the rest of the activity such as the appropriate intervention techniques, support from the client group and evaluation of the effectiveness of OD effort The change may occur in individual behaviour, organizational behaviour or both. Some of the intervention techniques are applied at individual level, and the others at the organizational level. While the earlier approaches have concentrated on individual changes, the present trend emphasizes on the holistic approach of dealing with groups or teams However, there is no one best way to intervene. Hence, intervention techniques appropriate to problems at hand should be employed

Theories of Planned Change

Effective Management of Change

An effective manager...: anticipates the need for change as opposed to reacting after the event to the emergency; diagnoses the nature of change that is required and carefully considers a number of alternatives that might improve organisational functioning, as opposed to taking the fastest way to escape the problem; and manages the change process over a period of time so that it is effective and accepted as opposed to lurching from one crisis to another.

(Pugh, D. (1993). Understanding and managing change. In Maybey, C. and Mayon-White, B. (Eds.) Managing Change, Second edition. London, P.C.P.).

Lewins Change Model

UNFREEZING
Resistance to change lessened, need for change created (Equilibrium disturbed)

MOVING
From old behaviour to the new (Changes)

REFREEZING Change made permanent

Lewins Change Model

Stage 1:Unfreezing

Shaking up Disconfirmation of old ways of doing things Questioning & challenging of established wisdom Arouse dissatisfaction with the current state. Activate and strengthen top management support. Use participation in decision making. Build in rewards.

Lewins Change Model

Stage 2: Moving/ Changing

Making the actual changes to move to the new state of existence Includes the development of new strategies, structures, systems & responsibilities and the shedding of old ones Establish goals Institute smaller, acceptable changes that reinforce and support change Develop management structures for change Maintain open, two-way communication

Lewins Change Model

Stage 3: Refreezing

Stabilizing, institutionalizing the changes. Making sure the organisation doesn't go backwards to the old state Reinforcement of the changes through symbols, such as changed logos, dress, building design, structures Build success experiences. Reward desired behaviour. Develop structures to institutionalize the change. Make change work The term Re-freezing may not be appropriate in an era of continuous change, so maybe this stage involves something more like stabilising.

Later Ronald Lippitt, Jeanne Watson and Bruce Westley expanded this model into a 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.

Action Research Model

Problem Identification Joint diagnosis Consultation with a behavioral scientist

Joint action planning

Data gathering & preliminary diagnosis

Action

Feedback to Client

Data gathering after action

The Positive Model

Initiate the Inquiry Inquire into Best Practices Discover the themes

Envision a preferred Future Design and Deliver

The Burke-Litwin Model of Organizational Change

First order change (Transactional change) Change

Second order change (Transformational change)

OD interventions that are directed towards structure, management practices, and systems (policies & procedures) result in first order change.
OD interventions that are directed towards mission and strategy, leadership, and organization culture result in second order change.

The Burke-Litwin Model of Organizational Change

Transformational factors

Transactional factors

Porras & Robertson Model of Organizational Change

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

Work setting factors

3 4

Physical setting
Technology

Porras & Robertson Model of Organizational Change

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 All open systems are input-throughput-output mechanisms

Inputs: information, money, people, raw material , etc. Throughput: Working on the inputs through conversion process that transform the inputs Output: performance, the end product exported to the environment

Every system has a boundary, but in open systems these are permeable i.e. they permit the exchange of info/ resources & energy between the system & the environment Therefore any change within the organization or in its environment will impact the entire system. Thus when a change is desired, it is essential to consider every element in the system & ensure alignment of all elements

Systems Theory
Organizations are open systems in active exchange with their environment

The Congruence Model

Systems Theory
Sociotechnical Systems Theory (STS) All organizations comprised of two interdependent systems: 1. Social system 2. Technical system To achieve high productivity and employee satisfaction, organizations must optimize both systems.

Changes in one system affect the other system.

ADKAR Change Model

Awareness of the need for change Desire to make the change happen Knowledge about how to change Ability to implement new skills and behaviours Reinforcement to retain the change once it has been made

ADKAR Change Model in Action

Phases of a Change Project
Post Implementation

Successf ul Change

Implementation
Concept and Design

Business Need

Awareness

Desire

Knowledge

Ability

Reinforcement

Phases of Change for Employees

ADKAR

Awareness of the need for change.

What is the nature of the change? Why is the change happening? What is the risk of not changing?

Desire to support the change.

Personal motivation to support the change Organizational drivers to support the change

Knowledge on how to change.

Knowledge, skills and behaviors required during and after the change Understanding how to change

Ability to implement new skills.

Demonstrated ability to implement the change Barriers that may inhibit implementing the change

Reinforcement to sustain the change.

Mechanisms to keep the change in place Recognition, rewards, incentives, successes

Exercise: Applying ADKAR

Group 1: You wish to introduce a new Software system in your college to allow all students & their parents to see curriculum/ marks/ assignments etc. Management thinks its a waste of money. Group 2: You wish to introduce 2 new HR subjects for additional learning. The management sees this as extra burden on finances.

General Model of Planned Change

Entering and Contracting

Diagnosing

Planning and Implementing Change

Evaluating and Institutionalizing Change

Action Research using Lewin Model

ORGANIZATIONAL DIAGNOSES

Diagnoses Using Open Systems

Characteristics Of Open Systems

All open systems are input-throughput-output mechanisms

Inputs:

information, money, people, raw material , etc. Throughput: Working on the inputs through conversion process that transform the inputs Output: performance, the end product exported to the environment

Boundaries:
Defining

boundaries is difficult due to continuous inflow &

outflow Open systems have multiple sub-systems. As an OD consultant the boundaries for diagnosis keep changing

Diagnoses Using Open Systems

Characteristics Of Open Systems

Feedback

All information is not feedback Only info used to control the future functioning of the orgn is considered feedback Feedback helps to diagnose the current state and those aspects that are required to change In closed system s, there is a direct cause effect relationship between initial condition & final output In open systems similar output may be achieved with different initial conditions and by using different methods Therefore the OD consultant needs to develop multiple alternatives

Equifinality:

Diagnoses Using Open Systems

Characteristics Of Open Systems

Alignment
A

systems effectiveness depends on the degree to which the different sub-systems are aligned with each other Therefore the OD consultant needs to look at the whole system

Levels of Diagnosis

At an Overall Organization Level i.e. Company strategy, structure & process At the level of business units, divisions, subsidiary companies At a departmental level AT an individual level

Organization Level Diagnosis Using Open Systems Method

The key is to know for what to look for at each level. Organization Design Group Design Job Design The degree of alignment among the different elements will impact the effectiveness of the organization's current strategy

Levels of Diagnosis Organization Level: Ask questions around:

Input: General Environment, Industry Structure Design Components: Strategy, Structure, Technology, HR Systems, Measurement Systems, Culture Output: Organization Effectiveness i.e. Performnace, Productivity, Share price, etc.

Organization Level Diagnosis Using Open Systems Method (Contd.)

Group Level : Ask questions around:

Input: Organization Design Design Components: Task Structure, Goal Clarity, Team functioning, Performance Norms, Group Compositions Output: Team Effectiveness i.e. Quality of work life, team performance

Individual Level: Ask questions around:

Input: Organization Design, Group Design, Personal Characteristics Design Components: Task Identify, Skill variety, Autonomy, Feedback on results, Task significance Output: Individual Effectiveness i.e. Job satisfaction, performance, absenteeism, personal development, etc.

Diagnosis The Six-Box Model

Purposes

Marvin 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.

Relationships Leadership

Structure

Helpful Mechanisms

Rewards

Data Collection Methods

Questionnaire Interviews Observation Unobtrusive Methods

1. Questionnaires

Could use standardized tools which provide more valid and reliable data Or customized instruments designed by a consultant for a specific client Advantages:
Responses are easily quantified & summarized Easy to use with large samples Relatively inexpensive Can obtain large volume of data

Disadvantages:
Non-empathic & impersonal may not get honest responses Predetermined questions may lead to missing out of some important issues Over interpretation of data Response bias tendency to answer question sin a socially acceptable manner

2. Interviews

Could be unstructured, using broad questions about organizational functioning as a whole Could be highly structured, using guided questions which are very specific Could be individual or group interviews. A popular type of group interview is the focus group or sensing meeting whch is used to understand a particular issue in greater depth

Advantages:
Allows data collection on a range of issues can adapt your interview, as it throws up new data Source of rich data Empathetic- people open up Can build rapport with client orgn

Disadvantages:
Expensive Bias in interviewer responses Take time to conduct and analyze the data Biases of self-reportingperson may say things that he may not really believe in, but feels are socially acceptable

3. Observations

A direct way of collecting data is by observing organizational behaviours in their functional settings Can be done by walking through, becoming a part of a work team or may use videos or tapes.

Advantages:
Collects actual data on behavior, rather than reports of behavior, therefore not colored by perceptions Real-time, not retrospectivedescribes bahvior occurring in the present, rather than the past Adaptive consultant can modify what he chooses to observe

Disadvantages:
Coding & interpretation difficulty Sampling inconsistencies should be representative of the study group- not skewed towards any sub-group Observer bias and questionable reliability he needs to be trained & skilled Expensive

4. Unobtrusive measures

Data not collected directly from respondents, but from secondary sources like company records & reports e.g. attrition, productivity, profitability, processes, etc. Advantages:
An objective view of organizational functioning No response bias Easily quantified

Disadvantages:
Access & retrieval difficulties Validity concerns when systems / procedures change, same data may be collected differently e.g. productivity improvements may be shown, when the method for measuring changes Coding & interpretation difficulty

Techniques for Analyzing Data

QUALITATIVE TECHNIQUES Content Analysis: Identifying recurring themes in the data Force Field Analysis: Involves listing all the forces promoting the change & those resisting it and then identifying the most powerful among both categories, through a ranking or rating system.

Force Field Analysis Example

Techniques for Analyzing Data

QUANTITATIVE TECHNIQUES Means, Standard Deviations & Frequency Distribution Scattergrams & Correlations Difference tests: Used to compare the sample group against a standard norms

OD INTERVENTIONS

Types of Interventions
Human Process Interventions Coaching Training & Dev Process Consultation Third Party Intervention Team Building

Technostructural Interventions Structural Design Downsizing Reengineering

HR Mgmt. Interventions Goal Setting Performance Appraisal Reward Systems

Strategic Interventions Integrated Strategic Change Merges & Acquisitions Alliances Networks Culture Change Self Designing Orgns Orgn Learning & Knowledge Mgmt.

COACHING

Coaching

is

process

where leaders help others to develop their capacity to learn, perform and create the future they truly desire.

The Preferred Future Climate of trust Inspiring workplace Delighted stakeholders A sense of pride

Increase our effectiveness Help others as a leader to develop and grow

Building the community of leaders

Principles of Coaching

A coach does not give solutions to the coachee It is the coachee and not the coach who does most of the work in coaching The coachee must be given a trusting, conducive and warm environment where he or she can speak his /her mind freely The coach only ASKS never tells

 Topic of discussion Specific objectives Set long term aims

Commit to action Identify possible

obstacles

Invite self
assessment

Offer specific
examples for feedback

Make steps specific

and define training

Avoid/check
assumptions

Agree support

Discard irrelevant Cover the full range of

options history

Invite suggestions from

coachee

Offer suggestions carefully

GROW Model
Step 1: GOAL Agree the focus and specific objectives for the conversation Step 2: REALITY What is current situation What has contributed to current situation Step 3: OPTIONS Explore possible solutions or next steps. Potential road blocks and unintended consequences What additional resources or assistance would be required Step 4: WRAP UP What are they going to do Get a commitment to action from the mentee. Plan for possible obstacles.
2009 Skye Associates LLC
75

Sir John Whitmore, Coaching For Performance

PROCESS INTERVENTIONS

What is Process Consultation?

Deals primarily with interpersonal & group processes It attempts to describe, how organizational members interact with each other May address issues of how people communicate, how they take decisions, what norms are developed, how authority is used in the group, etc.

Types of Process Interventions

Individual Interventions May use psychological tests, feedback after meetings, etc. Feedback is aimed at increasing individual awareness of how their behavior affects others Possible tool: Johari Window

Types of Process Interventions

Group Interventions Aimed at addressing process, content or structure of group

Process interventions: sensitize the group to its own internal processes; how they work together, intra group relationships, how problems are addressed and decisions are taken, etc. Content interventions: help the group determine what they will work on. It includes goal setting & review processes, how new learning is incorporated in an on-going manner, etc. Structural Interventions: Looks at inputs required, resources available, customer inputs, etc.

Third Party Interventions

When a 3rd party in brought in to facilitate a conflict between 2 parties

Leading & Managing Change

Step 1: Motivate Change

Creating

readiness for change Overcoming resistance to change

Step 2: Creating a Vision

Describing

the Core Ideology Constructing the envisioned future

Step 3: Developing Political Support

Assessing

Chnge Agent power Identifying key stakeholders Influencing stakeholders

Leading & Managing Change (Contd.)

Step 4: Managing the Transition

Activity

planning Commitment planning Management Structures

Step 5: Sustaining Momentum

Providing

resources for change Building a support system for change agents Developing new competencies & skills Reinforcing new behaviors Staying the course