Organizational Change and Development

Forces for Change - People Globalization has brought together diverse people with different attitudes, expectations, interpersonal relations and culture Increased Customer expectations - prompt delivery of quality products at their doorsteps, at reasonable prices High level of customer service and support from ethical and socially responsible organizations To keep pace with increasing and changing demands, companies are investing heavily in training Forces for Change - Technology Advancements in technology are reshaping jobs and industries Many manual jobs are now computerized Time for completion has decreased phenomenally Transmission of voice, data and video over a single transport network has reduced the gap between industries Yesterdays technology becomes obsolete tomorrow Organizations have to keep pace with competitors and customers

Forces for Change - Information Processing and Communication Virtual organizations are bringing in new challenges Fostering Organizational commitment, loyalty and team spirit are a challenge with employees at remote locations and no direct contact

Forces for Change - Competition Nature and intensity of competition has changed Reduced transport and communication costs Orientation to exports has made markets more global Globalization brings in new challenges Politico-economic developments and trade agreements like NAFTA and WTO have changed the economic relationship between countries

Developing countries are receiving concessions and growing and emerging as a force to reckon with Continuous search is on for new ways to produce newer, cheaper and higher quality products Survival means change which is the only constant

OD and Change A demand for change comes from forces both external and internal to the org External forces: regulators, competitors, market forces, customers, technology and society Internal forces: obsolescence of products and services, new market opportunities, new strategic directions, an increasingly diverse workforce

Managing Planned Change First order change (evolutionary/ incremental):

making moderate adjustments to the organization, people and processes Second order change (revolutionary/ fundamental):

reinventing the organization, reengineering tasks, rewriting rules of the market place Diagnostic Model of Change Sources of Resistance to Change Resistance to Change

Resistance is likely to emerge whenever employees perceive possibility of loss of position or status inequitable treatment the loss of use of present competencies duplicity futile extra work in past change efforts Employee Readiness for Change Overcoming Resistance to Change If decisions have already been made that major restructuring will occur requiring extensive sacrifice and pain associated with the change effort

it should be made clear that the sacrifice and pain will be shared across the organization and at all levels

Results Of Change It is believed that most OD efforts result in enhanced morale improved communications more mutual influence improved organizational effectiveness

Rewards of Change If extensive positive outcomes are expected Policies for sharing in the gains should be clearly articulated Individual Sources of Resistance Habit Security Economic factors Fear of the unknown Selective information processing Social factors Organizational Resistance Structural inertia Limited focus of change Group inertia Threat to expertise Threat to established power relationships Overcoming Organizational Resistance Educating employees Employee involvement Facilitation

Negotiation Manipulation and co-optation Coercion Approaches to Change Initiatives Contributing to Effective Change Management

OD and Managing Change Motivating change: creating readiness and overcoming resistance Creating a vision: mission, valued outcomes and conditions, midpoint goals Developing political support: assessing change agent power, identifying & influencing key stakeholders Managing the transition: activity and commitment planning and management structures Sustaining momentum: providing resources for change, building a support system for change, developing new competencies & skills and reinforcing new behaviors Approaches to Managing Organizational Change

Lewins Three - step Model Unfreeze: Changing the existing situation Movement to change: Shift to a different behavior or performance Refreeze: Revised behavior or performance becomes the new norm Approaches to Managing Organizational Change

Action Research - 5 step process Diagnosis Analysis Feedback Action Evaluation Diagnosis Critical information about the organization is collected by interviewing the employees

browsing through organizational records listening to employee concerns Analysis The information is analyzed and the problems identified as under The primary concerns The problem areas The possible actions to resolve them Feedback

Constant involvement of the people affected by the change program brings in regular feedback for corrective action All information is shared with participants and their assistance is sought in finding the right solutions Action The employees and the change agent work together to implement the solutions The actions are problem oriented and aimed at correcting specific problems Evaluation The change agent evaluates the effectiveness of the actions taken by measuring the outcomes of those actions Any unsatisfactory outcome follows the repeat process until correction of the problem Six Features of Lewins Action Research It was problem driven It was client-centered It challenged the status quo and was simultaneously concerned with Producing empirically disconfirmable propositions that Could be systematically interrelated into a theory designed to be Usable in everyday life What is Organizational Development ? OD is an organizational improvement strategy At its base are the theories related to planned change and their application in the context of organizations What is Organizational Development ?

Its objective is to improve the performance of individuals and groups in organizations It is multidisciplinary and draws from psychology, social psychology, sociology, anthropology, systems theory, organizational behavior, organization theory and management practice What Does OD Address?

OD deals with a range of people problems and helps individuals, teams and organizations to realize their full potential poor morale low productivity What Does OD Address? poor quality interpersonal conflict inter-group conflict poor team performance poor customer relations poorly designed tasks Organizational Development Approaches A system of planned change Takes a holistic or system wide approach to change Targets organizational processes, rather than content Is problem oriented Focuses on relationships, human, social as well as structural Organizational Development Techniques Sensitivity Training Survey Feedback Process Consultation Interventions Team Interventions Sensitivity Training Purpose is to sensitize people to perceptions and the behavior related aspects of themselves and others Sessions are unstructured, with no agenda and assisted by a facilitator

The interactions and resulting feedback help members to know more about themselves and others and learn about group dynamics Sensitivity Training

Improves listening skills, openness and acceptance of individual differences Reduces interpersonal conflicts, enhances group cohesiveness, improves productivity and efficiency, interpersonal and leadership skills Survey Feedback

Data collected systematically from large sample at al levels of an organization Usually attitude or climate surveys revealing critical information about the problems The data is then fed into the system and shared Data is then analyzed and interpreted Plans are made about introducing changes Implementation of changes carried out Process Consultation Interventions Assumes that interpersonal conflict is responsible for inefficiency, and focuses on improving a particular process at a time Looks at work flow, flow of communication, roles and responsibilities, group problem solving and decision making Process Consultation Interventions Consultant helps individuals & groups to understand processes - human and social, and their consequences Consultant plays the roles of a resource person by facilitating the entire process Team Interventions

Attempt to improve performance of work teams Team building interventions cover four substantive areas in the working of organizational teams problem diagnosis task accomplishment maintaining team relationships improving team and organization processes

Types of Team Interventions

The formal group diagnostic methods The formal group team-building meeting Gestalt approach to team building Role Analysis Technique Role Negotiation Technique Force Field Analysis Intergroup Team-building Interventions Teams and Teamwork

Work teams are the building blocks of orgs Teams must manage their culture, processes, systems, relationships if they are to be effective Much individual behavior is rooted in the socio-cultural norms and values of the work team and can be changed quickly if needed, by the team itself Many tasks are so complex they cannot be performed by individuals Teams create synergy Teams satisfy peoples needs for social interaction, status, recognition, respect Characteristics of Successful Teams A clear elevating goal A results-driven structure Competent team members Unified commitment A collaborative climate Standards of excellence External support and recognition Principled leadership The Team Performance Curve Team Building Activities

Contributing information concerning their perceptions of issues, problems, and working relationships Analyzing the information and diagnosing work-related problems

 Planning specific actions and assigning individuals to implement them Evaluating their plans and progress in achieving those plans

The Force Field Analysis Technique The force-field analysis is a device for understanding a problematic situation and planning corrective actions To move the equilibrium level from the current to the desired, a field of forces must be altered, either by driving forces or by removing restraining forces Force Field Analysis Intergroup Team-building Interventions Consultant meets the leaders of two groups to find out whether they are genuinely interested in improving mutual relations

He asks both to each prepare a list - write their attitudes and perceptions about the other group - each group tries to anticipate what the other group would write in its first list Intergroup Team-building Interventions The two groups are allowed to exchange information written in the first and second lists By sharing the information in their respective lists some differences are resolved Setting aside the problems that were resolved, the members prepare a list of priority issues that are left unresolved Intergroup Team-building Interventions An action plan is determined to resolve all issues A follow - up meeting is attended by all members Prerequisites to Organizational Development Top Management Commitment Influential Managers Success in Initial Efforts Establishing Reward Systems Constant Learning Various Models in Organizational Development Abads Model

Lawrence and Lorschs Approach Lippitts Approach Blake and Moutons Approach Warner Burkes Approach Beckhards Approach