Organzation development


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Organzation development

  1. 1. Dr. Virgel C. BinghaySchool of Labor & Industrial Relations, University of the Philippines, DilimanLecture Notes of Dr. V.C.Binghay 1
  2. 2. Dr. Virgel C. Binghay Associate Professor & Director, Center for Industry Productivity & Competitiveness, U.P. School of Labor & Industrial Relations Tel. #: 661-1488 Mobile Phone: 0917-8487428 E-mail: Website: Lecture Notes of Dr. V.C.Binghay 2
  3. 3. Topic Outline• Nature of OD• Definition of OD• Contractual Relationship• Change Agent• Sponsoring Organization• Applied Behavioral Science• OD Process• Systems Context• Improved Organizational Performance Lecture Notes of Dr. V.C.Binghay 3
  4. 4. • Organizational Self-Renewal• Understanding Organizations• Modern Development in OD• Action Research• OD Interventions• Types of Organizational Change• Reactions to Change• Resistance to Change• Methods of Addressing Resistance to Change• Process of Planned Change• Workshop• Recap & Integration Lecture Notes of Dr. V.C.Binghay 4
  5. 5. Nature of OrganizationDevelopment Is a planned, organization-wide effort to increase organization’s effectiveness & viability A response to change A complex organizational strategy to change the beliefs, attitudes, values, & structure of organization Lecture Notes of Dr. V.C.Binghay 5
  6. 6. A change process designed tobring about a particular kind ofend resultCan involve interventions in theorganizations processesLecture Notes of Dr. V.C.Binghay 6
  7. 7. Uses behavioral science aswell as organizationalreflection, system improvement,planning, and self analysisLecture Notes of Dr. V.C.Binghay 7
  8. 8. Definition of ODOD is a contractual relationship between a change agent & a sponsoring organization entered into for the purpose of using applied behavioral science and/or other organizational change perspectives in a systems context to improve organizational performance & the capacity of the organization to improve itself. Lecture Notes of Dr. V.C.Binghay 8
  9. 9. OD is aimed at:• Enhancing congruence among organization structure, process, strategy, people, & culture• Developing new & creative organizational solutions• Developing the organization’s self-renewing capacity Lecture Notes of Dr. V.C.Binghay 9
  10. 10. Emergence of OD• The need for organizational reforms• The focus on cultural change• The increase in social awareness Lecture Notes of Dr. V.C.Binghay 10
  11. 11. Reasons for UndergoingOD• Competition• Survival• Improved Performance Lecture Notes of Dr. V.C.Binghay 11
  12. 12. OD Values• Respect for People• Trust & Support• Power Equalization• Confrontation• Participation Lecture Notes of Dr. V.C.Binghay 12
  13. 13. Contractual Relationship Neither the sponsoring organization nor the change agent can be sure at the outset of the exact nature of the problem/s to be dealt with or how long the change agent’s help will be needed, it is essential that some tentative agreement on these matters be reached. Lecture Notes of Dr. V.C.Binghay 13
  14. 14. Sponsoring organization needs to know change agent’s: preliminary plan commitments & responsibility for the program fees Lecture Notes of Dr. V.C.Binghay 14
  15. 15. Change agent must assurehimself/herself that theorganization’s particularly the topexecutives’ commitment tochange is strong enough tosupport the kind of self-analysisand personal involvementrequisite to success of theprogram. Lecture Notes of Dr. V.C.Binghay 15
  16. 16. Change Agent In OD, change agent is not a technical expert in such functional areas as accounting, production or finance Is a behavioral scientist who knows how to get people in an organization involved in solving their own problems Lecture Notes of Dr. V.C.Binghay 16
  17. 17. Strength is a comprehensiveknowledge of human behavior,supported by a number ofintervention techniquesCan be either internal orexternal to the organizationLecture Notes of Dr. V.C.Binghay 17
  18. 18. Change Agent• External Change Agent• Internal Change Agent• External-Internal Change Agent Team Lecture Notes of Dr. V.C.Binghay 18
  19. 19. Sponsoring Organization The initiative for OD programs comes from an organization that has a problem. This means that top management is aware that a problem exists and has decided to seek help in finding a solution to his/her problems. Lecture Notes of Dr. V.C.Binghay 19
  20. 20. Applied BehavioralScience Using theory and methods drawn from such behavioral sciences (industrial relations, psychology, sociology, anthropology, political science, economics, administrative theory, organizational behavior), the change agent’s main function is to help the organization define and solve its own problems. Method used – “Action Research” Lecture Notes of Dr. V.C.Binghay 20
  21. 21. OD PROCESS2. Preliminary Diagnosis3. Collecting Data4. Feedback of the Data to the Client5. Data Exploration by the Client Group6. Action Planning based on the Data7. Taking Action Lecture Notes of Dr. V.C.Binghay 21
  22. 22. Systems Context OD deals with a total system – the organization as a whole, including its relevant environment – or with a subsystem or systems – departments or work groups – in the total system Lecture Notes of Dr. V.C.Binghay 22
  23. 23. Parts of system (likeindividuals, cliques,structures, norms, values,and products) are notconsidered in isolationPrinciple of interdependencyOD interventions focus ontotal culture and culturalprocesses of organizations Lecture Notes of Dr. V.C.Binghay 23
  24. 24. Improved OrganizationalPerformanceImprove organization’s capacity to handle its internal and external functioning and relationships such as: Improved interpersonal & group processes More effective communication Enhanced ability to cope with organizational problems of all kinds Lecture Notes of Dr. V.C.Binghay 24
  25. 25. More effective decisionprocessesMore appropriate leadershipstyleImproved skill in dealing withdestructive conflictHigher levels of trust andcooperation amongorganizational members Lecture Notes of Dr. V.C.Binghay 25
  26. 26. These objectives stem from avalue system based on anoptimistic view of the nature ofpeople – that people in asupportive environment arecapable of achieving higherlevels of and accomplishment. Lecture Notes of Dr. V.C.Binghay 26
  27. 27. Essential to OD &effectiveness is thescientific method – inquiry,a rigorous searchfor causes, experimentaltesting of hypotheses, andreview ofresults Lecture Notes of Dr. V.C.Binghay 27
  28. 28. Organizational Self-Renewal The ultimate aim of OD is to “work themselves out of a job” by leaving the client organization with a set of tools, behaviors, attitudes, and an action plan with which to monitor its own state of health and to take corrective steps toward its own renewal and development. Lecture Notes of Dr. V.C.Binghay 28
  29. 29. UnderstandingOrganizationsWeisbord’s six-box model for understanding organization:2. Purposes3. Structure4. Relationship5. Rewards6. Leadership7. Helpful Mechanism Lecture Notes of Dr. V.C.Binghay 29
  30. 30. • Purposes: The organization members are clear about the organization’s mission and purpose and goal agreements, whether people support the organization’s purpose. Lecture Notes of Dr. V.C.Binghay 30
  31. 31. • Structure: How do we divide up the work? The question is whether there is an adequate fit between the purpose and the internal structure. Lecture Notes of Dr. V.C.Binghay 31
  32. 32. • Relationship: Between individual, between units or department that perform different tasks, and between the people and requirements of their job. Lecture Notes of Dr. V.C.Binghay 32
  33. 33. • Rewards: The change agent should diagnose the similarities between what the organization formally reward or punished for doing. Lecture Notes of Dr. V.C.Binghay 33
  34. 34. • Leadership: Is to watch for blips among the other boxes and maintain balance among them. Lecture Notes of Dr. V.C.Binghay 34
  35. 35. • Helpful Mechanism: organization must attend to order to survive – like: planning, control, budgeting, information, and other systems that help organization member accomplish. Lecture Notes of Dr. V.C.Binghay 35
  36. 36. Modern Development Reinventing OD to manage change in modern organizations Emotion-based standpoint – how emotional trauma can negatively affect performance Lecture Notes of Dr. V.C.Binghay 36
  37. 37. Downsizing, outsourcing,mergers, restructuring,continual changes, invasionsof privacy, harassment, andabuses of power, manyemployees experience theemotions of aggression,anxiety, apprehension,cynicism, and fear, which canlead to performancedecreases. Lecture Notes of Dr. V.C.Binghay 37
  38. 38. OD practitioners mustacknowledge the existenceof trauma, provide a safeplace for employees todiscuss their feelings,symbolize the trauma andput it into perspective, andthen allow for and deal withthe emotional responses. Lecture Notes of Dr. V.C.Binghay 38
  39. 39. Action Research OD as organization improvement through action research If people are active in decisions affecting them, they are more likely to adopt new ways.Lecture Notes of Dr. V.C.Binghay 39
  40. 40. Rational socialmanagement proceeds in aspiral of steps, each ofwhich is composed of acircle of planning, action,and fact-finding about theresult of action. Lecture Notes of Dr. V.C.Binghay 40
  41. 41. Process of change involves three steps:4. Unfreezing5. Changing6. Refreezing Lecture Notes of Dr. V.C.Binghay 41
  42. 42. • Unfreezing: Faced with dilemma or discomfort, the individual or group becomes aware of the need to change.• Changing: The situation is diagnosed and new models of behavior are explored and tested Lecture Notes of Dr. V.C.Binghay 42
  43. 43. • REFREEZING: Application of new behavior is evaluated, and if reinforcing, adopted. Lecture Notes of Dr. V.C.Binghay 43
  44. 44. OD Interventions “Interventions” are central learning processes in the “action” stage of OD They are structured activities used individually or in combination by the members of the client system to improve their social or task performance. Lecture Notes of Dr. V.C.Binghay 44
  45. 45. They may be introduced by achange agent as part of animprovement program, orthey may be used by theclient following a program tocheck the state of theorganization’s health, or toeffect necessary changes inits own behavior. Lecture Notes of Dr. V.C.Binghay 45
  46. 46. “Structured Activities” meansuch diverse procedures asexperiential exercises,questionnaires, attitudesurveys, interviews,relevant group discussions,and even a lunch meetingsbetween the change agentand a member of the clientorganization. Lecture Notes of Dr. V.C.Binghay 46
  47. 47. Every action thatinfluences anorganization’simprovement program ina change agent-clientsystem relationship canbe said to be anintervention. Lecture Notes of Dr. V.C.Binghay 47
  48. 48. There are many possibleintervention strategies fromwhich to choose. Severalassumptions about thenature and functioning oforganizations are made inthe choice of a particularstrategy. Lecture Notes of Dr. V.C.Binghay 48
  49. 49. SIX ASSUMPTIONS OF HEALTHY ORGANIZATIONS1)The basic building blocks of an organization are groups (teams). Therefore, the basic units of change are groups, not individuals. Lecture Notes of Dr. V.C.Binghay 49
  50. 50. 2) An always relevant change goal is the reduction of inappropriate competition between parts of the organization and the development of more collaborative condition. Lecture Notes of Dr. V.C.Binghay 50
  51. 51. 3) Decision making in a healthy organization is located where information sources are, rather than in a particular role or level of hierarchy. Lecture Notes of Dr. V.C.Binghay 51
  52. 52. 4) Organizations, subunits of organizations, and individuals continuously manage their affairs against goals. Controls are interim measurements, not the basis for managerial strategy. Lecture Notes of Dr. V.C.Binghay 52
  53. 53. 5)One goal of a healthy organization is to develop generally open communication, mutual trust, and confidence between and across levels. Lecture Notes of Dr. V.C.Binghay 53
  54. 54. 6)People support what they help create. People affected by a change must be allowed active participation and a sense of ownership in the planning and conduct of change. Lecture Notes of Dr. V.C.Binghay 54
  55. 55. CATEGORIES OF INTERVENTIONS: Interventions range from those designed to improve the effectiveness of individuals through those designed to deal with teams and groups, inter- group relations, and the total organization. Lecture Notes of Dr. V.C.Binghay 55
  56. 56. There are interventions thatfocus on task issues (whatpeople do), and those thatfocus on process issues (howpeople go about doing it). Lecture Notes of Dr. V.C.Binghay 56
  57. 57. Interventions may also beclassified according to whichchange mechanism they tendto emphasize: for example,feedback, awareness ofchanging cultural norms,interaction and communication,conflict, and education througheither new knowledge or skillpractice. Lecture Notes of Dr. V.C.Binghay 57
  58. 58. A CHALLENGE OF CHANGE AGENT: “To help create in a client system a climate for learning and change.” Lecture Notes of Dr. V.C.Binghay 58
  59. 59. Some of the things that will help Change Agents:3. A real need in the client system to change4. Genuine support from management5. Setting a personal example: listening, supporting behavior Lecture Notes of Dr. V.C.Binghay 59
  60. 60. 1. A sound background in behavioral sciences5. A working knowledge of systems theory6. A belief in people as rational, self-educating being fully capable of learning better ways to do things Lecture Notes of Dr. V.C.Binghay 60
  61. 61. Effective interventiondepends on:• The extent to which it fits the needs of the organization;• The degree to which it is based on causal knowledge of intended outcomes; and• The extent to which it transfers change management competence to organization members Lecture Notes of Dr. V.C.Binghay 61
  62. 62. Few Examples ofInterventions Training Team Building Coaching Counseling Mentoring Large Group Interventions Performance Management Downsizing/Rightsizing Succession Leadership Development Lecture Notes of Dr. V.C.Binghay 62
  63. 63. Job EvaluationRole AnalysisSocio-TechStructuralManagement DevelopmentRewards ManagementGroup DynamicsCompetency-based SelectionLabor-Management CouncilsGrievance Handling Lecture Notes of Dr. V.C.Binghay 63
  64. 64. Types of OrganizationalChange Strategic Changes Technological Changes Structural Changes Changing the Attitudes & Behaviors of People Lecture Notes of Dr. V.C.Binghay 64
  65. 65. Reactions toOrganizational Change Enthusiasts Followers Objectors Underground Lecture Notes of Dr. V.C.Binghay 65
  66. 66. Top 2 Reasons forEmployee Resistance2. A lack of awareness about the change4. Comfort with the ways things are and fear of the unknown Lecture Notes of Dr. V.C.Binghay 66
  67. 67. Top 10 Reasons EmployeesResist Change1. Individual’s personal predisposition to change2. Surprise & fear of the unknown3. Climate of mistrust4. Fear of failure5. Loss of status &/or job security6. Peer pressure7. Disruption of cultural traditions &/or group relationships8. Personality conflicts9. Lack of tack &/or poor timing10. Not seeing the benefits Lecture Notes of Dr. V.C.Binghay 67
  68. 68. Methods of OvercomingResistance to Change Education Participation Negotiation Cooptation Lecture Notes of Dr. V.C.Binghay 68
  69. 69. Process of PlannedChange Assess external environment Specify objectives to be achieved Assess current organization and its history Lecture Notes of Dr. V.C.Binghay 69
  70. 70. Articulate & communicate avision for the futureDesign a strategic planImplement targeted changeeffortsEvaluate, revise, and refocus Lecture Notes of Dr. V.C.Binghay 70
  71. 71. Strategies to Change• Structural Strategy• Technological Strategy• Behavioral Strategy Lecture Notes of Dr. V.C.Binghay 71
  72. 72. Structural Strategy- An attempt to change organization’s design by modifying the lines of authority, span of control, & agreement of work functons Lecture Notes of Dr. V.C.Binghay 72
  73. 73. Technological Strategy- The use of new technologies to bring an organization up to the state of the art machinery, methods, automation, & job design Lecture Notes of Dr. V.C.Binghay 73
  74. 74. Behavioral Strategy- Focuses on human resources; it aims to increase the morale, motivation, & commitment of members to improve organization performance. Lecture Notes of Dr. V.C.Binghay 74
  75. 75. Lecture Notes of Dr. V.C.Binghay 75