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Chapter 1 - Organisational Change & Development

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14 views9 pages

Chapter 1 - Organisational Change & Development

Uploaded by

Saba Zaheer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Organisational Change & Development

Organizational Development (OD) is a planned process of change within an organization,


aimed at improving its effectiveness and adaptability. It involves utilizing behavioral science
theories, research, and technology to enhance organizational culture, problem-solving
capabilities, and overall performance.

Key components of OD include:

● Change Agent: A facilitator who helps foster a supportive environment for change
and encourages employees to adopt new ways of working.
● Collaboration: Active participation and support from all levels of the organization,
from top management to frontline employees.
● Congruence/Alignment: Ensuring that all aspects of the organization, including
structure, processes, strategy, people, and culture, work together harmoniously to
achieve shared goals.

OD addresses a variety of challenges, such as:

● Financial difficulties: Helping organizations cope with economic downturns or


financial constraints.
● Mergers and Acquisitions: Facilitating smooth integration of two or more
organizations.
● Continuous Improvement: Supporting ongoing efforts to enhance efficiency,
quality, and innovation.

OD interventions can take many forms, including:

● Training and development: Providing employees with the skills and knowledge
needed to adapt to change.
● Team building activities: Strengthening team cohesion and collaboration.
● Restructuring: Reorganizing the organization's structure to improve efficiency and
effectiveness.
● Process improvement: Streamlining processes to reduce waste and increase
productivity.

Burke’s Definition of OD
Organizational development is a planned process of change in an organization’s culture
through the utilisation of behavioral science technology, research, and theory.

Focus: Planned organizational change and culture.


Key concepts: OD as a planned process of change in organizational culture. The use of
behavioral science technology and research to facilitate change.
Contribution: Developed a framework for OD that emphasized the importance of a planned
approach and the use of behavioral science techniques.

French's Definition of OD
Organization development refers to a long-range effort to improve an organization’s
problem-solving capabilities and its ability to cope with changes in its external environment
with the help of external or internal behavioral-scientist consultants, or change agents, as
they are sometimes called.

Focus: Long-range organizational development.


Key concepts: OD as a long-range effort to improve an organization's problem-solving
capabilities and ability to cope with change. The role of external or internal behavioral
science consultants.
Contribution: Emphasized the importance of a long-term perspective in OD and the need
for expert guidance.

Beckhard’s OD
Organization development is an effort (1) planned, (2) organization-wide, and (3) managed
from the top, to (4) increase organization effectiveness and health through (5) planned
interventions in the organization’s “processes,” using behavioral science knowledge.

Focus: Planned organizational change.


Key concepts: Change as a planned intervention that is organization-wide and managed
from the top. The importance of top management support and employee involvement.
Contribution: Developed a framework for planned organizational change, emphasizing the
need for a systematic approach and clear goals.

Beer’s OD
Organization development is a systemwide process of data collection, diagnosis, action
planning, intervention, and evaluation aimed at (1) enhancing congruence among
organizational structure, process, strategy, people, and culture; (2) developing new and
creative organizational solutions; and (3) developing the organization’s selfrenewing
capacity. It occurs through the collaboration of organizational members working with a
change agent using behavioral science theory, research, and technology.

Focus: System-wide OD.


Key concepts: OD as a system-wide process involving data collection, diagnosis, action
planning, intervention, and evaluation. The importance of congruence between
organizational structure, process, strategy, people, and culture.
Contribution: Developed a comprehensive model of OD that emphasized the importance of
a systematic approach and the need to address all aspects of the organization.

Organizational Development: A Comprehensive Approach


Organizational Development (OD) is a multifaceted approach to organizational change that
focuses on improving the overall effectiveness and adaptability of an organization. It
distinguishes itself from other change initiatives by its broader scope, emphasis on human
factors, and focus on long-term sustainability.
Scope:
● Systemic Perspective: OD applies to changes at various levels of the organization,
from the entire system to individual roles or jobs. This comprehensive perspective
ensures that changes are aligned and support the organization's overall goals.
● Holistic Focus: Unlike approaches that narrow their focus to specific products or
processes, OD aims to improve the entire organization's performance. This holistic
approach recognizes the interconnectedness of different elements within the
organization.

Knowledge Base:
● Behavioral Science Foundation: OD is grounded in behavioral science theories
and practices, such as leadership, group dynamics, and work design. This emphasis
on human factors differentiates OD from approaches that primarily focus on
economic, financial, and technical aspects.
● Macro and Micro Perspectives: OD incorporates both macro and micro approaches
to change. Macro approaches, such as strategy and organization design, address
broader organizational issues, while micro approaches focus on individual and team-
level dynamics.

Planned Change:
● Adaptive Process: OD is a planned change process, but it is more adaptive and
flexible than traditional management consulting or project management. It involves
planning, diagnosis, and solution, but allows for adjustments as new information
emerges.
● Collaborative Approach: OD emphasizes collaboration and participation from all
levels of the organization. This inclusive approach ensures that change initiatives are
supported and implemented effectively.

Institutionalization:
● Long-Term Sustainability: OD goes beyond the initial implementation of change
and focuses on ensuring its long-term sustainability. This involves reinforcing new
activities and behaviors to make them part of the organization's culture.
● Cultural Integration: OD aims to integrate new ways of working into the
organization's existing culture. This helps to ensure that changes are accepted and
sustained over time.

Organizational Effectiveness:
● Multidimensional Focus: OD is oriented toward improving overall organizational
effectiveness, which is measured by adaptability, financial and technical
performance, and customer and employee satisfaction.
● Human-Centered Approach: OD recognizes that organizational effectiveness is
influenced by human factors, such as employee engagement, leadership, and
culture. By addressing these factors, OD can create a more productive and satisfying
work environment.
Five stems of OD practice

1. Action Research
Action research is a collaborative inquiry approach that combines research and action to
address real-world problems. It involves a cyclical process of data collection, analysis,
planning, action, and evaluation.

● Collaborative Nature: Action research is characterized by its collaborative nature,


involving researchers and organization members working together to identify
problems, develop solutions, and implement changes. This collaboration fosters
ownership and commitment among stakeholders.
● Data-Driven Approach: Action research relies on data collection and analysis to
inform decision-making. This data-driven approach ensures that changes are based
on evidence and not just assumptions.
● Iterative Process: The action research process is iterative, allowing for ongoing
learning and refinement. This cyclical nature enables organizations to continuously
improve and adapt to changing circumstances.

Key Steps in Action Research:


1. Problem Identification: Researchers and organization members work together to
identify a problem or issue that needs to be addressed.
2. Data Collection: Data is collected through various methods, such as interviews,
surveys, observations, and document analysis.
3. Data Analysis: The collected data is analyzed to identify patterns, trends, and
underlying causes of the problem.
4. Action Planning: Based on the analysis, a plan is developed to address the
identified problem.
5. Implementation: The plan is implemented, and changes are made to the
organization.
6. Evaluation: The effectiveness of the changes is evaluated through data collection
and analysis.

Examples of Action Research:


● Lewin's Studies: Kurt Lewin's experiments at Harwood Manufacturing Company and
other organizations demonstrated the effectiveness of action research in facilitating
organizational change.
● Participative Management: Coch and French's research on overcoming resistance to
change led to the development of participative management as a means of involving
employees in planning and implementing changes.

Survey Feedback
Survey feedback is a technique that involves collecting data from organization

members through surveys and providing feedback on the results. This feedback can

be used to identify areas for improvement, foster dialogue, and drive change.

● Data Collection: Surveys are administered to employees to gather information about


their attitudes, beliefs, and perceptions.
● Data Analysis: The survey data is analyzed to identify key findings and trends.
● Feedback: The findings are shared with employees and management, often through
group discussions or workshops.
● Action Planning: Based on the feedback, action plans are developed to address
identified issues

2. Normative
In the early days of Organizational Development (OD), there was a prevailing belief in a "one
best way" to manage organizations. This normative approach suggested that certain
management practices and leadership styles were universally effective. Two prominent
examples of this normative perspective are Likert's Participative Management and Blake and
Mouton's Grid OD.

Likert's Participative Management


Rensis Likert proposed a four-system model of organizational management:

1. Exploitative Authoritative (System 1): Highly autocratic leadership, minimal


employee involvement, and fear-based motivation.
2. Benevolent Authoritative (System 2): Paternalistic leadership with some employee
involvement, but still dominated by management.
3. Consultative (System 3): Increased employee involvement and participation, but
final decisions remain with management.
4. Participative Group (System 4): High levels of employee involvement in decision-
making, goal setting, and problem-solving.
Likert argued that System 4 was the most effective management system, leading to higher
productivity, quality, and employee satisfaction. He advocated for a survey-feedback process
to help organizations move towards System 4.

Blake and Mouton's Grid OD


Blake and Mouton developed the Managerial Grid, a model that assessed managers'
concern for production and concern for people. They identified nine different leadership
styles, ranging from 1,1 (low concern for both production and people) to 9,9 (high concern
for both production and people).
According to Blake and Mouton, the 9,9 style was the most effective, as it emphasized both
task accomplishment and employee well-being. They developed a Grid OD program to help
managers develop this style and improve organizational effectiveness.
Shift to Contingency View
While the normative approach was initially dominant, a contingency view later emerged. This
perspective recognized that the most effective management style might vary depending on
the specific context, such as the organization's size, industry, and culture.

Legacy of Normative Approaches


Despite the shift towards a contingency view, Likert's Participative Management and Blake
and Mouton's Grid OD continue to have a significant influence on OD practice. They provide
valuable frameworks for understanding organizational dynamics and improving leadership
and management effectiveness. However, it is important to apply these models with caution
and consider the specific context of the organization.

The Managerial Grid


The Managerial Grid is a two-dimensional model that assesses a manager's concern for
people and concern for production. It was developed by Blake and Mouton as part of their
Grid OD program.

Concern for People Concern for Production

1 (Low) 1 (Low)

1 (Low) 9 (High)

9 (High) 1 (Low)

5 (Medium) 5 (Medium)

9 (High) 9 (High)

Explanation of the Grid:


● 1,1 (Impoverished): Managers in this category have low concern for both people and
production. They are often detached and uninterested in their work.
● 9,1 (Autocratic): These managers have a high concern for production but a low
concern for people. They are authoritarian and emphasize efficiency and control.
● 1,9 (Country Club): Managers in this category have a high concern for people but a
low concern for production. They create a pleasant work environment but may
neglect task accomplishment.
● 5,5 (Task-Oriented): These managers have a moderate concern for both people and
production. They strive for a balance between efficiency and employee satisfaction.
● 9,9 (Team): Managers in this category have a high concern for both people and
production. They create a team-oriented environment where employees are involved
in decision-making and goal-setting.

3. Quality of Work Life


First Phase: European Origins and Early Applications
The QWL movement emerged in Europe in the 1950s, driven by research conducted at the
Tavistock Institute of Human Relations in London. Early practitioners in Great Britain,
Ireland, Norway, and Sweden developed work designs aimed at better integrating
technology and people.
● Self-Managing Work Groups: A key characteristic of these early QWL programs was
the use of self-managing work groups. These groups consisted of multiskilled
workers who were given autonomy and decision-making authority over their work.
● Employee Empowerment: QWL programs empowered employees by providing them
with discretion, task variety, and feedback about results.
● Improved Productivity and Satisfaction: These early initiatives demonstrated the
potential for QWL to improve both productivity and employee satisfaction.
Second Phase: Expansion and Adaptation in the United States
The QWL movement gained momentum in the United States in the late 1970s and early
1980s, driven by increased international competition and a desire to learn from successful
foreign management practices.
● Expanded Focus: QWL programs expanded beyond work design to include other
workplace factors such as reward systems, work flows, and management styles. This
broader approach aimed to create a more supportive and motivating work
environment.
● Organizational Efficiency: In addition to improving employee satisfaction, QWL
programs also focused on enhancing organizational efficiency and competitiveness.
● Quality Circles: The concept of quality circles, popularized in Japan, was adopted by
many U.S. organizations. These employee-led groups focused on identifying and
solving problems related to quality and productivity.
Key Contributions of QWL to Organizational Development:
● Human-Centered Approach: QWL emphasizes the importance of human factors in
organizational success. It recognizes that employees are not merely resources but
active participants who can contribute significantly to organizational performance.
● Employee Empowerment: QWL promotes employee empowerment by giving
employees greater autonomy, responsibility, and decision-making authority.
● Improved Productivity and Quality: QWL initiatives have been shown to improve
productivity, quality, and employee satisfaction.
● Positive Organizational Culture: QWL can help create a more positive and supportive
organizational culture, fostering employee engagement and commitment.
Current Relevance of QWL:
While the term QWL may not be as widely used today, the principles and practices
associated with it remain relevant. Employee involvement, empowerment, and a focus on
quality and productivity continue to be important aspects of modern organizations.
In conclusion, the QWL movement has made significant contributions to organizational
development by emphasizing the importance of human factors, employee empowerment,
and a focus on both productivity and employee satisfaction. The principles and practices
associated with QWL continue to be relevant and valuable for organizations seeking to
improve their performance and create a positive work environment.
1. Strategic Change
The text you provided discusses the influence of the strategic change background on

OD's evolution. Here are the key points:

Increased Scale and Complexity of Change:

● Organizations face increasing complexity and uncertainty in their

environments, leading to larger-scale and more intricate change initiatives.

Strategic Perspective:

● OD has adopted a strategic perspective, focusing on improving alignment

between an organization's environment, strategy, and organization design.

Strategic Change Interventions:

● Interventions aim to enhance the organization's relationship with its

environment and ensure a good fit between its technical, political, and cultural

systems.

Triggers for Strategic Change:

● Major disruptions like regulatory changes, technological breakthroughs, or

new leadership can necessitate strategic change.

Open Systems Planning:

● Richard Beckhard's open systems planning model was an early application of

strategic change, focusing on aligning an organization's environment,

strategy, and response.

Strategic Change Models:

● Various models have been developed for strategic change, emphasizing its

multi-level nature, top-down leadership, and impact on performance.

Applications of Strategic Change:


● Strategic change has been applied to mergers and acquisitions, alliance

formation, and network development.

Influence on OD Practice:

● The strategic change background has broadened OD's scope, requiring

practitioners to be familiar with a wider range of disciplines like competitive

strategy, finance, and marketing.

● This has enhanced OD's relevance to organizations and their managers.

In summary, the strategic change background has significantly influenced OD by

emphasizing the importance of strategic alignment, addressing large-scale change

initiatives, and requiring OD practitioners to adopt a broader skill set.

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