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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
agreements
B. HR policies and procedures
C. The organization�s approach towards
total rewards
D. 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
procedures
D. 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 benefits
D. 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 go
D. 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
 planned

 organisation wide

 managed from the top

 to 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)
CHARACTERISTICS
1. Change (Planned change)
2. Collaborative (involvement of all)
3. Performance (enhance perf and quality)
4. Humanistic (increased use of human
potential
5. 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

•Inthe 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


Competitive Uncertainity
New Competitors
Regulation The organisation of

Domestic
the 21st century
Faster

Prices Quality Conscious


Employee Involvement
Customer oriented
Smaller Multi Nationals
Suppliers

Technology
Changing Consumers
New Products
Lifestyles
Technology/
Trends
Processes
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

Result
New Encounters
Adjustment to 1.Performance
employee organisation
cultural norms 2. Commitment
expectations culture
3. Obtain goals
Basic Responses to
Socialisation Process

Creative
Rebellion Conformity
individualism

Rejection Acceptance of
of all only pivotal Acceptance
values and values and of all values
norms rejection of all and norms
others
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 1
Anticipate
need for
change
Stage 2
Stage 5 Develop the
Self Renewal, practitioner
monitor and client
Stabilize relationship

Stage 3
Stage 4 The diagnostic
Action Plans, phase
Strategies and
Techniques
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- •Hyperturbulent environment-


1. Unchanging basic 1. Rapidly changing product
product and services lines
2. Static level of 2. Increasing and changing
competition set of competitors
3. Low level of technical 3. Continual tech innovation
innovationof growth 4. Rapid market growth
4. Slow and steady rate of
growth
Model of Adaptive orientation in organisations

Hyper turbulent
Renewing Reactive
Transformational

Environmental
Stability Satisficing Sluggish Thermostat

Stable
High Adaptive Orientation Low
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 industry
For 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 objective
ii) Elements must have an
established arrangement
iii) Interrelationships must exist
iv) Process ( flows of inf, energy,
matrl )
• Open System

•Closed System ( only theoritical)


INPUTS

Information OUTPUTS
Equipment
TRANSFORMATION
Facilities PROCESS Products
Materials Goods
Money Services
People
Technology
FEEDBACK
FROM
ENVIRONMENT

Employees
Departments
and Manages
Orgaanisation as an open system Customers
Investors
Govt
• Apply the systems model to
i) Service organisation
ii) 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 tasks


2. Flatten the hierarchy
3. Use teams to manage everything
4. Let customers drive performance
5. Reward team performance
Components of organisation as a system

1. Goals and values subsystem


(mission,vision)
2. Technical subsystem
3. 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 variables
i) Business situation ( forces in the environment)
ii) The business strategy ( goals and values)
iii) Design elements ( technology structure etc)
iv) Culture
v) 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 INQUIRY
PROBLEM SOLVING APPRECIATIVE ORIENTATION
ORIENTATION

Realize the Possibilities


Fill the Gap

PAST CURRENT FUTURE


STATE

THE QUESTIONS THE QUESTIONS


What’s wrong? What’s working?
How do we fix it? 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
High Cheerleader Pathfinder

M
O
R
A Persuader
L
E

Stabilizer Analyzer
Low
Low Effectiveness High
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) Communication
ii) Member role and functions
iii) Group problem solving
iv) Group norms and growth
v) Leadership and authority
vi) 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 Practitioner Task,


Knowledge , Skills Performance,
Values and Expectations and
Experience rewards

Practitioner Style
and Approaches

Target
Client Systems organisation’s
expectations and readiness for
Values change
Developing a trust relationship

•Openness between client and practitioner

•Some responses the practitioner can use


i) 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
Modes of Client Practitioner
relationships

High
Charismatic Consensus
Open to Open to
others but others
reject Accepts
Open to responsibility responsibility
others
shares
ideas Practitioner Client Relationship
and
feelings
Apathetic Gamesmanship
Closed to Closed to others
others but accepts
Reject responsibility
responsibility
Low
Low Accepts personal High
responsibility for own behaviour
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

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