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Organisational change and development


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This material is for PGPSE / CSE students of AFTERSCHOOOL. PGPSE / CSE are free online programme - open for all - free for all - to promote entrepreneurship and social entrepreneurship PGPSE is for those who want to transform the world. It is different from MBA, BBA, CFA, CA,CS,ICWA and other traditional programmes. It is based on self certification and based on self learning and guidance by mentors. It is for those who want to be entrepreneurs and social changers. Let us work together. Our basic idea is that KNOWLEDGE IS FREE & AND SHARE IT WITH THE WORLD

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Organisational change and development

  1. 1. ORGANISATIONAL CHANGE AND DEVELOPMENT by : DR. T.K. JAIN AFTERSCHO ☺ OL centre for social entrepreneurship sivakamu veterinary hospital road bikaner 334001 rajasthan, india FOR – PGPSE / CSE PARTICIPANTS [email_address] mobile : 91+9414430763
  2. 2. My words..... My purpose here is to give an introduction of organisational change and development . I welcome your suggestions. I also request you to help me in spreading social entrepreneurship across the globe – for which I need support of you people – not of any VIP. With your help, I can spread the ideas – for which we stand....
  3. 3. What are the types of changes? Evolution revolution Planned change
  4. 4. Four types of changes as per Ferguson ? 1. Exceptional changes (something different from the routine) 2 Incremental change (gradual but fast change) 3. Pendulum change (change from one extreme to opposite end and back) 4. Paradigm change (change in thinking)
  5. 5. What are change drivers ? Change must target at the following : 1. mission 2. vision 3. strategy 4. structure 5 plans and policies 6. procedures 7. technology 8. values 9. culture 10. systems
  6. 6. What are the strategies for change management ? Political strategy – if powerful people accept a change, others will accept – so contact influential persons academic approach – people are rational – so give them logic engineering approach – change the environment – people will follow economic approac – money is important fellowship strategy – develop friends, every thing will be easy military strategy – use force applied behavioural science strategy – use behavioural tools
  7. 7. What is CDS model of change ? Developed by Bechhard and Horns (1987) it has 3 stages : 1. study the current situation 2. prepare a desired situation 3. prepare a strategy for a new system
  8. 8. What is force field analysis ? It is a model of change given by Levin. Here we identify forces in favour of change and forces against change. We try to strengthen forces in favour of change and try to reduce forces against the change.
  9. 9. What are the stes in change management ? 1. create awareness and create disturbance 2 feel the need for change 3. explore the readiness of people to accept change 4. diagnosis 5. plan out interventions for changing the orgnanisation 6.introduce intervention 7 evaluation 8. follow up
  10. 10. What are the principles of change management ? Some people will always oppose change (it may be due to habit, fears, vested interests etc.) dont suppress resistance, welcome and honour resistance. Confront the situation. Confrontation is the best strategy allow people to contribute to change process. Let people take the initiative and participate in the change management process
  11. 11. How to reduce resistance to change ? Those who initiate change, will accept it also Participation in decision making will improve their understanding If we take regular feedback from people, there will be less resistance. If people participate in diagnosis process, they will understand the change process and will accept it.
  12. 12. What are the important aspects in change management ? Communication Planning Evaluation about change management Training and development Fecilitation and support Negotiation Manipulation coercion
  13. 13. What is the role of change agents? 1 they are consultants 2. they are trainers 3. they are facilitators 4. they are researchers 5. they enable the organisation to develop the vision and reach it 6. they are catalyst 7. they are problem solver, solution provider
  14. 14. What competencies are required for an effective change agent ? he should be good in interpersonal skills he should be good in communication skills he should be good in functional / technical skills he should be good in personal skills like attitude, approach, etc. he should be good in cognitive skills
  15. 15. What is cognitive skill? Cognition refers to thinking and reasoning cognitive skill refers to skills in analytical thinking, conceptual understanding, reasoning, setting priorities, anticipating obstacles etc.
  16. 16. What are contractual skills ? A change agent is a consultant and he is in contract with the organisation. He must clarify the expectations to the organisation. He must be clear about terms and conditions relating to the assignment. He must have a clear agreement about his entry and withdrawal.
  17. 17. What are consulting skills ? They (change agents) must understand the process of orgnaisational working, constraints, philosophy, vision, values, goals, ethos. They must understand the context of the organisation. They must give priority to people. They must remember that organisations are for people and ultimately people must feel happy, more satisfied, and energetic working in the organisation
  18. 18. Who are leading scholars in organisational development ? Warren Bennis, Richard Beckhard, Edgar F. Huse, Udai Pareek, Wendell L. French, Cecil H Bell, etc.
  19. 19. What is OD ? It is a planned, systematic, long term change in organisation with focus on problem solving capabilities, coping skills, self renewal capabilities and organisational values with the help of change agents, and behavioural science experts.
  20. 20. What is Levin's model of change management ? There are 3 stages in an organisation change process : 1. unfreeze 2. change 3 refreeze.
  21. 21. Levin's model ? Suppose you want to add colour to an ice, can you do it straight way? No. First you have to unfreeze it, then add colour and then refreeze it back to ice. Similarly, in any organisation, if you want to change, first make people prepared for the change then introduce change then again refreeze people (encourage them to adopt the new situation).
  22. 22. What is action research model of organisational development ? As per this model, every organisation has to change using these steps : 1. identify problems through people – research, 2. plan out the action – involving people 3 introduce change – action, 4. again assess the organisation – research this cycle will continue repeatedly, till we are able to develop organisation
  23. 23. What is organisational planning model ? It has following stages : 1. scouting for ideas for change and development by change agents 2. entry into organisation 3. diagnosis of the organisational health 4. planning for action 5. stabilisation 6. evaluation of organisation 7. termination of Organisational development process
  24. 24. Who are change agents ? These persons are experts in behavioural science. They use their behavioural science expertise in organisational development . These experts are experts in introducing change in organisation. They try to involve people in the change management process. They may be outsiders to the organisation, but they are able to introduce change in the organisation though participation of people.
  25. 25. What is an intervention ? It is a set of structured activities to develop an organisation or a part of that organisation or a group of an individual. People participate in intervations in a well planned and programmed set of activities
  26. 26. What are the various types of interventions ? Dyads : here focus is on 2 persons Triads : here focus is on three persons Team interventions : here focus is on entire group / team Total organisation interventions : here focus is on the total organisation and its development
  27. 27. What are the steps in OD Interventions ? 1. diagnose the organisation 2. plan and design the interventions 3. carry out the plan 4. evaluate the results 5. terminate the contract
  28. 28. Key issues in OD contracts? Change agents must maintain confidentiality of data of the organisation. They must study the organisation and identify key issues. They must use the interventions which enable the organisation to improve its processes. Change agents can play a very important role in organisational transformation.
  29. 29. How to undertake diagnosis ? Look at aspects like : are people clear about goals are people motivated ? Is there proper communication system ? Do people have mutual trust and support ? Do people believe that they are part of a team? Is there cohesiveness and collaboration in the organisation?
  30. 30. How to undertake OD diagnosis ? Use questionnaire to collect data Undertake interviews Use observations to further collect data undertake surveys
  31. 31. What are the levels of diagnosis ? 1. at the level of the entire organisation 2. at the level of the teams 3 at the level of diads etc. 4. at the level of individuals
  32. 32. How to do diagnosis at individual level ? Is the individual motivated, well adjusted, goal oriented, networked, well connected to people in the organisation and is able to have a satisfying relations with his colleagues / team membes for a healthy organisational comfort zone, the individual must have a sense of ownership in the organisation, sense of freedom, role clarity, understanding of organisational expectations and a well formed relationship across the organisation
  33. 33. How to do diagnosis at diad level ? Is there open, frank and adequate communication? Is there role clarity ? Is there mutual trust and support among exeuctives and subordinates and among peers? Is there clarity about how people can play an important role in development of each person – so people help each other ?
  34. 34. What are the areas for organisational improvement ? The important areas are : 1. team work 2. achievement motivation among employees 3. employee participation 4. internal customer orientation and quality focus
  35. 35. What are the different strategic interventions ? Open system planning Trans-OD Strategic change management Self designing organisations Cultural change in organisations
  36. 36. What are the different types of OD interventions ? Cultural internventions Relationship interventions Team work development interventions structural interventions Procedural interventions etc.
  37. 37. What are cultural interventions ? They improve culture of the organisation and enable people to understand their work culture and to improve it culture is developed as people evolve a responsible, collaborative, open and collegial culture
  38. 38. What are structural interventions ? Here we change the structure of the organisation Hierarchies are redefined, and organisational communication is smoothened. We try to reduce levels and improve interpersonal relations. The organisation becomes more flexible, open and dynamic. From a tall organisation, we try to develop a flat organisation
  39. 39. What are procedural interventions ? Here we improve working processes in organisations. Here we try to improve procedures in the organisations. Organisational bureaucracy is redefined and organisational work processes are simplified.
  40. 40. What are relationship interventions ? In order to improve mutual understanding, communication, role clarity, task interdependence understanding, and overall organisational development, we use these types of interventions
  41. 41. Name some important OD interventions ? Grid OD Process consultation Survey Feedback Socio-techical system Confrontation meeting Third party peace making Life goal planning T group Organisational mirroring
  42. 42. Example of Process consultation OD consultant organises 2 day workshop. He invites participants to use tools like FIRO-B, Johari Window, etc. The executives are then allowed to form group and discuss about some issue and write about these issues : 1. what is their perception about themselves 1. what is their perception about their superiors 1. what is their superiors' perception about them 1. what is their superior's perception about others
  43. 43. contd.. Thus orgnanisational processes are surfaced. The consultant summarises the perceptions of the subordinates with the superiors and the perceptions of the superiors with the subordinates. Thus there is greater openness. Perception sharing brings the two groups together. The perception sharing exercises enables executives and subordinates to openly share and discuss their perceptions. People clarify the doubts. Thus communication, leadership and motivation processes improve
  44. 44. Example of Team building exercise ..... Start with Micro Lab : with the objective that people have informal interaction, and they are aware of their energy level, enthusiasm, interpersonal skills, and wilingness to relate with others. Group status awareness : where people become aware about each other. Use questionnaires like TORI (gibbs) to identify the awareness about group goals etc.
  45. 45. contd.... Agenda building & group work decision making process & analysis in group setting (use tools like desert survival, etc. ) here we try to study the level of openness, participation and support in the group conflict management training trust building (use FIRO-B and other tools) interpersonal relationship training survey feedback , perception sharing, action planning
  46. 46. Example of organisational mirroring ..... 2-3 representative of each department are invited for a session people are divided in 5-6 groups where they share their perceptions about the organisation, its various departments, its working. These perceptions are shared by them openly in 3 stages : 1. positives 2. negatives 3. expectations Afterwards a core group is prepared to identify issues and prepare an action plan for those issues. These issues are presented to the management for implementation
  47. 47. Example of confrontation meeting It is used when there are intergroup problems in the orgnisation. People from different departments come together and discuss important issues which hinder their performance and they also share possible solutions. First discussion take place in smaller groups and later there are detailed discussions in the groups about possible solutions. Frank and open sharing is necessary. The group then prioritises the issues and tries to solve them
  48. 48. What is survey feedback ? It is a widely used tool of OD here we prepare a scale / questionnaire / schedule to know about following aspects in the organisation : openness, teamwork, leadership, motivation, innovation, creativity, customer relationship, team work etc. We collect feedback about these aspects and provide the feedback to the employees so that they can participate in organisational development processes
  49. 49. Example of confrontation meeting Convene a meeting of all department representatives Assure people about open and frank communication Divide people in small groups adn ask them to identify problems before their department and the organisation each group makes presentation problems are noted down and prioritised ...
  50. 50. contd.... Groups are formed to discuss the problems and to work out solution for the problems they prepare solutions in an open and frank discussions these solutions are forwarded to top management follow up action
  51. 51. Example of organisational mirroring
  52. 52. What is semantic differential scale ? Osgood, Suci , Tanxenbaum (1957) popularised this concept. Here we used two opposite concepts to identify the perception of the respondent example : how do you like the job of manager productive _1_- 3- - 5- - 7- -9 unproductive challenging1_- 3- - 5- - 7- -9 routine
  53. 53. What is summative scale ? It is also called Likert scale (1932) here we prepare a number of statement and ask the person to give rating for those statements the rating may be from most favourable to most unfavourable. The statements are prepared on the basis of a sample of statements, which have ability to differentiate people it is the most popular attitude measurement scale
  54. 54. How to study organisational culture / climate / job satisfaction? We can use following : questionnaire scale (like litert scale) HRD climate survey FIRO-B DIAGNOSIS STUDIES
  56. 56. How to use these resources ? These resources consist of questionnaire / scales which are given to the employees, who fill them up and then we analyse these and try to find the level of job satisfaction / HRD climate etc.
  57. 57. What are the various OD exercises that we can use ? Grid training Role analysis action research TQM BPR MBO T-GROUP Team building intergroup development
  58. 58. How should organisations restructure ? Undertake organisational analysis using various perspectives like : 1. economic analysis 2. political analysis 3. behavioural science analysis 4. sociological analysis / sociometry 5. culture / climate studies
  59. 59. What are the key dimensions of a good culture / climate / ethos ? Level of openness level of collaboration level of trust and suppor level of autonomy and freedom level of proaction in the organisation support for creativity and experimentation level of centrality / peripheral status of employee
  60. 60. What is action research ? It was developed by Kurt Levin in 1947. It is a tool for organisational study, and organisation development here we are using two things : action (change in organisation, development, collective efforts for organistional development) and research (interaction with people to know about what they like and what they dont and their perspective about how to develop organisation)
  61. 61. What is grid traininig? Blake and Mouton popularised this. There are 6 different stages for development of the organisation in grid training here we start with individual and group development and then for the entire organisation. We develop people on 2 dimensions : 1. focus on goal / task / organisational purpose 2. focus on people / communication / human relations a person who is good in both these dimensions is a good leader
  62. 62. What is BPR ? Business process reengineering : it denotes radical change in the organisational processes and practices so that we are able to completely alter the way we work here we take help of computerisation / automation / reengineering etc.
  63. 63. What is TQM? Total quality management = it is a philosophy, where we install a system, which tries to deliver what is promised. There are detailed documentation at every stage so that people work as per systems and processes and there is very high level of precision, predictability and awareness across the organisation. People care for internal and external customers and try to meet the expectations of these.
  64. 64. What is role analysis / RAT /RNT ? Role analysis technique / role negotation technique / role contribution technique Role analysis enables organisations to study people processes in an organisation. Here we look into dimensions like how well the person understands his role, likes the role, feels empowered, finds resources / support to execute the role, and how well he is able to integrate the role. This technique has been popularised by Prof Udai Pareek and Prof. T.V. Rao in India
  65. 65. What is quality circle ? It is a Japanese management technique, where employees voluntarily form a quality circle, where they discuss about organisational quality problems and try to develop solutions for those issues and suggest them to the management. It works at the initiative of people
  66. 66. What is survey feedback ? Here we take survey of employees of what they think is important / challenging / problematic / critical issue relating to organisation. This data is then given back to people, so that they can plan to change the situation and improve the organisation it enables people to think about the ideal form of their organisation and enables them to play a proactive role in development of their own organisation
  67. 67. What is assessment centre ? Here employees gather for some time and many psychometric tests ar eused to assess and develop people. It is a tool for developing people, organisation and overall work culture. A number of tools and techniques are used under expert guidance in this method. All the employees gather at a specified location for this exercise for a few days. (to some extent similar to beauty contests)
  68. 68. What is zero base budgeting ? Here we start budgeting from scratch. We dont look at what we had done earlier, but what we want to do in future. It is futuristic not historic. Traditionally people just inflate the last year's budge and present it back, but zero base bugeting requires them to think afresh.
  69. 69. What is people analysis ? Here we study people processes in the organisation and we try to study people factors. Here we look at motivation, morale, efficiency, commitment of people so that we can develop the entire organisation
  70. 70. What is benchmarking ? Here we put an external / internal organisation as benchmark for the employees so that they can develop themselves in those lines and try to change the organisation / its processes / culture / techniques citibank tried to benchmark against the work culture and commitment of workers of SEWA in India when it entered in India. (read Dabbawala case study)
  71. 71. What is right sizing? When the organisation has excess manpower, they go for right sizing. Here they retrench / transfer / relocate / restructure so that they are able to have an appropriate shape of organisation right sizing is a better work for more negative words like retrenchment
  72. 72. What is in-basket ? It is a game / tool / technique for developing people / executives in organisation. Here employee is given a number of situation and he has to take decision on each of the situations. Executive receives a basket of papers / problems on which decisions must be taken. The executive tries to take decision and thereafter receives feedback about his decision from his seniors / experts / trainers.
  73. 73. What is force field analysis ? It is a tool for organisational study / organisational development / organisaitonal diagnosis here we identify forces which are in favour / against the change issue. Here we try to look at the strength of each force. Later we try to strengthen the forces in favour of change so that we may change the organisation. It is the most important tool for organisational change management
  74. 74. Prepare a schedule for assessment centre ? Day 1 : orientation day 2 : in – basket exercise day 3 : role play day 4 group discussion day 5 : analysis, counselling and announcements
  75. 75. What are diagnostic workshops ? These help us in developing people. In diagnostic workshops, we assess the competence of people
  76. 76. What is job designing ? Preparing a job design which is stimulating, interesting, motivating and challenging to the employee and adding aspects like skill variety, task identity,task significance, etc.
  77. 77. What is QWL ? Quality of work life when we are able to improve the quality of work life, improve work culture, work environment, it is called QWL
  78. 78. What is flexibilisation and casualisation Flexibilisation= Creating flexible work culture (employee can choose work as per his convenience) casualisation = here employer may or may not give job in this case, there is a casual job
  79. 79. What is ZERO HOUR ? Employer may not give job – during zero hour – it is part of casualisation
  80. 80. What is Macdonaldisation? Here the job is broken in small components and each worker is trained in one small component and thus there is a possibility of replication of work on huge scale. Thus trained workers can produce in huge quantity. Jobs are systematically structured. Same working conditions and environment is created all over the world (it is similar to Taylorism of Scientific management)
  81. 81. What is commodification ? Today we find every product is being converted into commodities work is also converted to commodification by converting the work into a repeatitive activity
  82. 82. What is compressed workweek? Instead of 7 days work, just work for 4 day – but work more per day
  83. 84. Rescheduling work arrangement People can reschedule their time as per their requirements instead of 10 to 5 work, you may work 7 to 2
  84. 85. What is telecommuting ? Here a person can work while travelling or at home laptop and remove equipments help
  85. 86. What is job sharing ? Dividing the job between 2 or 3 persons to complete. Suppose a lady is having home responsibility, she may divide the work with another lady and continue her job and home responsibilities
  86. 87. What is call centre ? Here there is one organisation which provides BPO services and handles customer queries / grievences etc.
  87. 88. What are components of QWL Fair compensation good working condition opportunity for growth social integration human capability development social relevance of work life work and social life space
  89. 90. What is role analysis ? To study the role in which an employee works and to study the level of understanding of the employee about his / her role is called role analysis. If people are clear about their role, they will be able to get more satisfaction and organisation will also prosper. Role may be different from job.
  90. 91. What is difference between role, job, task etc. ? Role = setof expectations of colleagues, superiors, subordinates, customers, and other stakeholders Job : - a module of work assigned to an individual Task – basic element of a job work – productive activities position – a place in the formal hierarchy of the organisation
  91. 92. What are steps in role analysis ? Identify roles to study prepare a task force / team to study roles identify role sender collect information about expectation from a role identify key performance areas(KPA) (role definition) identify competencies for the KPA identify gaps between capabilities and competencies plan out development activities
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