Evaluation Report - Organizational Development Strategies Evaluation Report - Organizational Development Strategies Dr. Shantel Anderson Leadership and Organizational Management MPH 543 Mark Thompson February 2014 1 Evaluation Report - Organizational Development Strategies 2 Introduction Organizational development (OD) is a planned, organization-wide implementation that seeks to improve organizational effectiveness using theory and intervention processes (Organizational Development Network, 2011a). The Organizational Development Network (2011b) defines OD as “…a dynamic values-based approach to systems change in organizations and communities; it strives to build the capacity to achieve and sustain a new desired state that benefits the organization or community and the world around them.” It is no secret that the healthcare industry of late has seen many changes including but not limited to the Patient Protection and Affordable Care Act (ACA), so healthcare organizations must be ready to act and react as these changes continue to present themselves. Organizational development has become a valued tool to many healthcare organizations in recent years (Borkowski, 2011), and therefore has become an important discipline for healthcare management to understand. With origins dating back to the early twentieth century, OD has developed significantly over the years, and relates to employee satisfaction, organizational structure, and organizational strategic planning (Borkowski, 2011). It continues to evolve (ODN, 2011b) and will undoubtedly remain a valued tool far into the future. As mentioned above, OD is supported by theory, but the Organizational Development Network (2011b) lists several other aspects as well. It is value-based, and these values include respect, inclusion, and empowerment. This means that OD should value the opinions of all participants and should empower clients in the implementation of the OD interventions (ODN, 2011b). There are 4 types of OD interventions developed by Cummings and Worley as cited in Borkowski (2011) - strategic interventions, technostructural interventions, human process interventions, and human resource interventions. Rothwell and colleagues as cited in Borkowski Evaluation Report - Organizational Development Strategies 3 (2011) have broken down these four interventions into 7 types – team building, process improvement, total quality management, work redesign, structural change, training, and performance management. This paper will focus the total quality management and work redesign interventions, and will compare and contrast the strengths and weaknesses of the two. The Interventions Total Quality Management The first of the two interventions, Total Quality Management (TQM), is designed to allow groups of people within an organization to focus on a problem, and, using certain types of tools, to find solutions for that problem (Borkowski, 2011). These tools may be root cause analyses, diagrams, problem solving, or brainstorming, to name just a few, but the goal is a teamoriented effort focused on process improvement (Borkowski, 2011). Nayab (2011) calls TQM “a philosophy aimed at improving business as a whole,” involving continuous improvements in processes, products, and staff. Since this intervention focuses on continuous process improvement, organizational work systems can be better prepared when encountering changes (Nayab, 2011). They will also develop better ability to identify deviations from the established standard, and will have the tools (mentioned above) and training to assess problems as they occur (Nayab, 2011). There are many benefits to initiating a total quality management intervention, but two of the most important are discussed here. Nayab (2011) says, “TQM heralds a change in the work culture by educating all employees on quality and making quality the concern of everybody, not just the Quality Control department.” This means that all levels of staff can work together to identify redundancies in processes, communication problems, and other process issues (Nayab, Evaluation Report - Organizational Development Strategies 4 2011). Identifying these issues can help create cost savings by improving communications among organizational departments, reducing non-conformities, and eliminating redundancies (Nayab, 2011). The result of cost savings means the organization can become more flexible and competitive in the cost of services it provides. Another benefit of implementing a total quality management intervention is the teamwork and camaraderie it creates. Perhaps this benefit was not intended from the start, but the team dynamics involved in a TQM intervention creates 2 interventions in one. A human process intervention involves communication and interpersonal development (Borkowski, 2011), so it stands to reason that a groups coming together to identify process problems will have to develop communication techniques, delegate responsibilities, and learn to work together. Group dynamics will also lead to the sharing of knowledge which can translate into a better understanding of the organizations parts, and can improve the knowledge base and skills sets of those involved (Nayab, 2011). Work Redesign Intervention A Work Redesign Intervention (WR) may be viewed as another type of human process intervention. Hackman and Oldman, as cited in Borkowski (2011), have identified job aspects, like task variety and autonomy, and their relationship to the psychological states of employees. Since these relationships produce different personal and professional work outcomes, organizations must be aware of the effects of employees’ job designs (Borkowski, 2011). One’s psychological state based on his/her perceived role within an organization can greatly affect workplace productivity. A WR intervention identifies job dimensions and the psychological states these perceptions be causing. Repetitive work, job ambiguity, and task significance can all Evaluation Report - Organizational Development Strategies 5 cause negative psychological states; therefore, if these problems are identified, a work redesign must occur. The benefits of a WR intervention are obvious - happy employees are generally more productive employees. This is not to say that unhappy employees cannot be productive, but understanding and changing stress and psychological strain due to job dimensions will help attract and retain quality employees. Yip & Rowlinson (2009) studied job redesign and its effect on construction workers and found that it is indeed an effective intervention on reducing employee burn-out. This may be extrapolated to other professions where repetitive work and poor feedback may lead employee lack of interest. Staff that are engaged in their work will ultimately result in cost savings resulting from a less stressed and more productive workforce. Comparison and Examples Both TQM and WR interventions discussed above are designed to improve the efficiency and effectiveness of an organization’s workforce. Efficiency is the key to reducing costs, and what business would not want to reduce costs. These two interventions are obviously different in their focus. On one hand, process efficiency is improved through quality management tools and team work; on the other, staff efficiency is improved though job redesign resulting in reduced stress. Increasing efficiency, like all OD interventions, is the main strength resulting from their implementation, but each has limitations compared to the others. The limitations of TQM and WR interventions are discussed below. A TQM intervention can be as broad or as focused as the situation requires, but the size of the group involved may hinder its efficiency. Larger groups focusing on a problem will indeed offer more perspectives than a smaller group, but keeping members focused and moving forward Evaluation Report - Organizational Development Strategies 6 with initiatives can be tricky. In this author’s experience, working with a large TQM group in an organization can be frustrating. All have the same goal of quality improvement, but many have different methods to approaching a problem. In this author’s organization, 220 persons are employed. The TQM group is comprised of members from 13 different section within the organization, each which performs a different function. In working together on problems, this group has found that solutions for some sections will not work for others, In attempting to satisfy all involved, snags, arguments, and frustration are typical. The paperwork and time required of the TQM group can also keep staff from having the time to fulfill their regular duties. A WR intervention can be very effective in defining and adjusting work roles, but problems in implementation may occur. This is because some employees affected by the WR may be satisfied or comfortable in their current roles. Change is difficult for many as some will have been working in their position for years. Those hesitant to the forthcoming changes may initially feel stressed and confused as jobs are restructured. This author has seen this happen first hand. An employee at his organization has been required to take on a number of extra duties due to job restructuring and employee vacancies. She has trouble with change and immediately perceives that the additional responsibilities will become overwhelming. Her manager’s goal is to create a more efficient unit by consolidating the similar roles of different positions to eliminate redundancies. Unfortunately, due to the employee’s comfortable position in her work, her resistance to change, and her tendencies of negative perception, she has created unnecessary stress for herself and other members of the team. Hopefully this stress will subside as the work becomes more routine. Evaluation Report - Organizational Development Strategies 7 Conclusion No OD intervention is perfect, and one cannot expect them to be, but given the rapid pace of change in business and healthcare, one must appreciate the value that these interventions hold. The interventions listed above, despite their possible limitations, have been proven in their ability to improve efficiency. Decades of theory, research, and practice support their value, as does the fact that more organizations are developing OD interventions than ever. Effectively utilizing one or several of these approaches can drastically improve the work processes, employee morale, and overall efficiency of the organizations that choose to implement them. Evaluation Report - Organizational Development Strategies 8 References Borkowski, N. (2011). Organizational behavior in health care. (2nd Eds). Sudbury, MA: Jones and Bartlett Publishers. Nayab, N. (2011). Looking at the benefits of TQM. Bright Hub PM. Retrieved from http://www.brighthubpm.com/monitoring-projects/70318-looking-at-the-benefits-of-tqm/ Organizational Development Network. (2011a). What is Organization Development? Retrieved from http://www.odnetwork.org/?page=WhatIsOD Organizational Development Network. (2011b). Principles Of OD Practice. Retrieved from http://www.odnetwork.org/?page=PrinciplesOfODPracti Yip, B. and Rowlinson, S. (2009). Job redesign as an intervention strategy of burnout: Organizational perspective. Journal of Construction Engineering Management, 135(8), 737–745.