Organizational
Development
Dr. Maria Corazon D. Segismundo, CPA, FRIAcc
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LEARNING OBJECTIVES of the COURSE
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To understand the nature of the developmental process in
organizations.
To comprehend the main drivers and approaches of change.
To realize and apply the stages of the organizational development
process.
To equip students with the knowledge & skills required for effective
change and organizational development.
To enable students to apply their knowledge of resistance to change
and techniques on handling it.
EXPECTED LEARNING OUTCOMES
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Gain knowledge about the organizational development
process.
Apply learnings on how to change and develop
organizations.
Better understanding of the change management model
Improve and enhance skills needed to develop an action
plan for the development process
Better understanding of change resistance and how to
handle it.
1.
Organizational
Development or OD
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ORGANIZATIONAL DEVELOPMENT is…
a field of research,
theory, and practice
dedicated to
expanding the
knowledge and
effectiveness of people
to accomplish more
successful
organizational change
and performance
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an effort planned,
organization-wide
and managed
from the top in order
to increase
organization
effectiveness and
health through
planned interventions
in the organization's
processes by using
behavioral-science
knowledge
a discipline that
combines
research and
experience in order to
understand people,
business systems, and
their interactions
Organizational Development (OD)
◆ OD
emerged out of human relations studies from the 1930s where
psychologists realized that organizational structures and processes
influence worker behavior and motivation.
◆ More
recently, work on OD has expanded to focus on aligning
organizations with their rapidly changing and complex environments
through organizational learning, knowledge management and
transformation of organizational norms and values.
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2.
Key Concepts of Organizational
Development Theory
Organizational systems
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Key Concepts
1. ORGANIZATIONAL CLIMATE
 Defined as the mood or
"personality" of an organization.
unique
 Attitudes
and
beliefs
about
organizational
practices
create
organizational climate and influence
members' collective behavior.
 Climate features and characteristics may
be associated with employee satisfaction,
stress, service quality and outcomes and
successful implementation of new
programs.
Climate
features
and
characteristics include: leadership,
openness
of
communication,
participative management, role clarity,
conflict resolution, leader support and
leader control.
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2. ORGANIZATIONAL CULTURE
3. ORGANIZATIONAL STRATEGIES
These are deeply seated norms,
values and behaviors that members
share.
A common OD approach used to
help organizations negotiate
change, i.e. action research,
consists of four steps:
◆ Entry
◆ Diagnosis
◆ Feedback/ Action-planning
◆ Solution/ Intervention
◆ Evaluation
The five basic elements of culture in
organizations include:
◆
◆
◆
◆
◆
Assumptions
Values
Behavioral norms
Behavioral patterns
Artifacts
ORGANIZATIONAL CULTURE
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ORGANIZATIONAL DEVELOPMENT STRATEGY
Five Phases to Designing and Implementing
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◆ Organizational system consists of
various interacting components
(people/resources) that acquire inputs
(goals) from the external environments,
processes them (structure & processes)
and produces an output
(product/service) to be consumed back
by the external environment
(customers).
◆ Two kinds of organizational system: (1)
Open system, and (2) closed system)
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3.
What Organizational
Development is NOT
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OD is not…
MANAGEMENT CONSULTING
Management consulting help leaders and managers be more productive at planning,
organizing, leading and coordinating resources in the organization. Applications for
their services might include leadership, management and supervisory
development. The types of services provided by these consultants might be referred
to as either technical assistance or organizational development activities
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OD is not…
TRAINING & DEVELOPMENT
It is not training, personal development, team development
or team building, human resource development (HRD), learning
and development (L&D) or a part of HR - although it is
often[mistakenly understood as some or all of these. OD
interventions are about change and so involve people - but OD also
develops processes, systems and structures. The primary purpose
of OD is to develop the organization, not to train or develop the
staff
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OD is not…
SHORT-TERM
OD is intended to address long-term change. Even in cases in which
the intervention is carried out over a short period (such as the
several-day workshops conducted at the cancer center described
earlier), the change is intended to be a long-term or permanent
one. OD efforts are intended to develop systemic changes that are
long lasting.
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OD is not…
THE APPLICATION OF A TOOLKIT
◆ It is more than a rigid procedure for moving anorganization,
team, or individual from point A to point B. It involves being
attuned to the social and personal dynamics of the client
organization that usually require flexibility in problem solving,
not a standardized set of procedures or tools.
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“
To become effective, productive, and satisfying to members, organizations need
to change. It will come as no surprise to any observer of today’s organizations
that change is a significant part of organizational life. Change is required at the
organizational level as customers demand more, technologies are developed
with a rapidly changing life cycle (especially high-tech products), and investors
demand results.
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4.
The Conceptual knowledge of
Organizational Development
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OD Beginnings
5 major backgrounds or stems
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Beginnings of OD
1960
1970
1980
1990
1st Stem
Laboratory Training (T-groups)
2nd
Stem
Action Research/Survey Feedback
Normative Approaches
3rd Stem
Quality of Work Life
4th Stem
Strategic Change
5th Stem
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2000
Today
CURRENT OD PRACTICE
1950
In 1966 Bennis distinguished between
theories of change and theories of changing.
Theories of change attempt to answer the question
of how and why change occurs.
Theories of changing attempt to answer the
question of how to generate change and guide it to a
successful conclusion.
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Porras and Robertson (1987) expanded on
Bennis’s notion, relabeling the two different
approaches as change process theory and
implementation theory
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Change Process theories vs Implementation Theories
CHANGE PROCESS
THEORIES
• Explain the dynamics of the
change process
• focus of academicians
• tend to draw from empirical
work grounded in academic
fields such as psychology,
sociology, economics, and
anthropology.
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IMPLEMENTATION THEORIES
• focus on activities change agents
must undertake in effecting
organizational change
• Focus of practitioners
• tend to draw from practitioneroriented experiential work; they may
emerge from the same academic
disciplines as change process
theories but do not make the
connections explicit.
The theories, practices, and beliefs of OD have influenced
organizational improvement efforts for more than half a century.
The field has evolved in scope and methods in response to client
needs, social changes, learning from experience, advances in
theory, and increasing complexities in the world of work
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At the same time, organization
development has retained a core
philosophy and logic that are reflected
consistently over time in OD’s change
model.
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5.
Central Nature of CHANGE
in OD Change models
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Change is
INTENTIONAL
It
begins
with
understanding
an
organization
or
a
subsystem, which leads to
the identification of desired
outcomes
and
the
development of a grounded
intervention strategy
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Change is
POSITIVE AND
PURPOSIVE
It is intended to improve
organizational
health
and functioning and to
enhance a system’s
overall
adaptive
capacities.
Change is
DATA-DRIVEN
It
reflects
the
particular
circumstances, needs,
and goals of the client
organization—and it is
the job of change
agents to investigate,
understand, and pay
heed to all that in their
work.
Change is VALUES-CENTERED
OD is underpinned by a deep concern for the people who make up an
organization and by a belief that organizational effectiveness, innovation, and
survival require respect for and attention to the human side of enterprise. At the
same time, however, OD is not dogmatic
Change is ACTION-ORIENTED
It is rooted in the art and science of planned intervention—a change agent enters
a social system to initiate specific activities that enhance learning and
effectiveness.
Change is BASED ON EXPERIENCE, GROUNDED ON
THEORY, AND FOCUSED ON LEARNING
OD is an action science that uses the best social and behavioral science thinking to
resolve practical problems and develop a system’s capacity for learning and
28 renewal.
6.
Kurt Lewin and the Planned
Approach to Change
Forces for resistance to organizational CHANGE
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Though Lewin’s works on field theory, group dynamics,
action research and the three-step model of change are
often treated as separate themes of his works, Lewin saw
them as a unified whole with each element supporting and
reinforcing the others and all of them necessary to understand
and bring about planned change, whether it be at the level of
the individual, group, organization, or even society
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FIELD THEORY
This is an approach to understanding group behavior by trying to
map out the totality and complexity of the field in which the
behavior takes place.
Lewin maintained that to understand any situation it was necessary
that “One should view the present situation— the status quo—as
being maintained by certain conditions or forces”
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GROUP DYNAMICS
For Lewin, it is not the similarity or dissimilarity of
individuals that constitutes a group, but the
interdependence of fate.
Two Questions:
1. What is it about the nature and characteristics of a particular group
that causes it to respond (behave) as it does to the forces which
impinge on it?
2. How can these forces be changed in order to elicit a more desirable
form of behavior?
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GROUP DYNAMICS
Group dynamics stresses that group behavior, rather than
that of individuals, should be the main focus of change.
Lewin maintained that it is fruitless to concentrate on
changing the behavior of individuals because the individual
in isolation is constrained by group pressures to conform
Understanding, however, the internal dynamics of a group is not
sufficient by itself to bring about change. Lewin also recognized the
need to provide a process whereby the members could be engaged in
and committed to changing their behavior. This led Lewin to develop
action research and the three-step model of change
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ACTION RESEARCH THEORY
In HIS ACTION RESEARCH THEORY Lewin stresses that
for change to be effective, it must take place at the
group level, and must be a participative and collaborative
process that involves all of those concerned.
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ACTION RESEARCH
However, Lewin was concerned that: change towards a higher level
of group performance is frequently short lived; after a “shot in the
arm,” group life soon returns to the previous level.
This indicates that it does not suffice to define the objective of a
planned change in group performance as the reaching of a different
level.
Permanency at the new level, or permanency for a desired period,
should be included in the objective. It was for this reason that he
developed his three-step model of change.
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7.
Lewin’s Three-Step
Change Model
Forces for resistance to organizational CHANGE
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Lewin’s
Change Model
UNFREEZING
MOVING
REFREEZING
For Kurt Lewin, the process of change entails creating the perception that a change is
needed, then moving toward the new, desired level of behavior and, finally, solidifying
that new behavior as the norm.
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Lewin’s model provides a general
framework for understanding
organizational change. Because the
three steps of change are relatively
broad, considerable effort has
gone into elaborating them.
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4.
Sigmoid Curve and the Paradox
of Change and Success
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Sigmoid Curve
a mathematical concept which has been widely used to model
the natural life cycle of many things, from biological
organisms, to schools and companies, marriages and careers.
The curve is basically a stretched out S shape lying on its side,
and can be thought of as having three sections, each of which
corresponds to a phase of growth.
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Sigmoid Curve’s Phases of Growth
The Learning Phase
First, at the bottom of the S there is
a section which rises slowly, often
dipping before starting to rise
(depending on how the curve is
drawn). This corresponds to an
initial period of learning.
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Sigmoid Curve’s Phases of Growth
The Growth Phase
The second section is a sharply
rising line in the elongated S
shape. During this phase, business
and careers move ahead quickly.
Revenues increase, relationships
mature, promotions occur easily,
and organizations become much
larger.
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Sigmoid Curve’s Phases of Growth
The Decline Phase
The third phase of the curve is a
decline, as the S shape starts to
fall. The harvest has grown to
maturity and starts to die. Morale
and energy dip, revenues decline,
the empire starts to crumble.
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But there is paradox of change here. The
paradox is that at the point where we NEED
to be changing and switching to the
technology or routines that will take us to
the future, all the messages from our
environment are sending us the exact
OPPOSITE message.
“The discipline of the second curve requires that we
always assume that we are near the peak of the first
curve and should therefore be starting to prepare for
the second”
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The paradox of success,
that what got you where
you are won’t keep you
where you are, is a hard
lesson to learn
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In a capsule:
What Got You Here Won’t Get You
There helps you overcome your
personality traits and behaviors that
stop you from achieving even more
success.
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Lesson 1
Successful leaders often mistakenly attribute
their wins to their flaws.
Marshall Goldsmith recognizes that plenty of leaders hold on to awful
character traits and unhelpful behaviors. This is additionally reinforced by
the common opinions about successful people as being competitive, selfobsessed , and even obnoxious. But at some point, these characteristics
usually get in the way of leaders and executives having even more success.
They fail to realize that they were successful
despite and NOT because of their bad behaviors.
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Lesson 2
Abandoning destructive behavior should be
celebrated and encouraged from the top.
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Lesson 3
The success of top leaders is defined by
empowering others.
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6.
External and Internal Forces
for Change
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EXTERNAL FORCES FOR CHANGE
Technology
Marketing Conditions
Social Changes
Political Forces
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Technology
Technology is the major external force which calls for change. The adoption of new technology
such as computers, telecommunication systems and flexible manufacturing operations have
profound impact on the organizations that adopt them.
Marketing Conditions
Marketing conditions are no more static. They are in the process of rapid change as
the needs, desires and expectations of the customers change rapidly and
frequently.
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Social Changes
Social and cultural environment also suggest some changes that the organizations have to adjust for.
There are a lot of social changes due to spread of education, knowledge and a lot of government efforts.
Social equality, e.g., equal opportunities to women, equal pay for equal work, has posed new challenges
for the management. The management has to follow certain social norms in shaping its employment,
marketing and other policies.
Political Forces
Political environment within and outside the country have an important impact on business
especially the transnational corporations. The interference of the government in business has
increased tremendously in most of the countries. The corporate sector is regulated by a lot of laws
and regulations. The organizations do not have any control over the political and legal forces, but
they have to adapt to meet the pressure of these forces.
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INTERNAL FORCES FOR CHANGE
Nature of the Workforce
Change in Managerial Personnel
Deficiencies in Existing
Management Structure
To avoid Developing Inertia
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Nature of the Workforce
The nature of work force has changed over a passage of time. Different work
values have been expressed by different generations. The profile of the
workforce is also changing fast
Change in Managerial Personnel
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Change in managerial personnel is another force which brings about change in
organization. Old managers are replaced by new managers which is necessitated
because of promotion, retirement, transfer or dismissal. Each manager brings his
own ideas and way of working in the organization. The informal relationships
change because of changes in managerial personnel. Sometimes, even though
there is no change in personnel, but their attitudes change. As a result, the
organization has to change accordingly.
Deficiencies in Existing Management
Sometimes change are necessary because of some deficiencies in the existing organizational structure, arrangement
and processes. These deficiencies may be in the form of unmanageable span of management, larger number of
managerial levels, lack of co-ordination among various departments, obstacles in communication, multiplicity of
committees, lack of uniformity in policy decisions, lack of cooperation between line and staff and so on. However, the
need for change in such cases goes unrecognized until some major crisis occurs.
To Avoid Developing Inertia
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In many cases, organizational changes take place just to avoid developing inertia or
inflexibility. Conscious managers take into account this view that organization should
be dynamic because any single method is not the best tool of management every
time. Thus, changes are incorporated so that the personnel develop liking for change
and there is no unnecessary, resistance when major changes in the organization are
brought about.
Thanks!
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