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Organization Development

Organization Development. Professor Alexandre Ardichvili Module 3. Topics and Activities for Session 3. Definition of Organization Development (OD) OD and planned change models vs. other forms of organization change Roots of OD

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Organization Development

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  1. Organization Development Professor AlexandreArdichvili Module 3

  2. Topics and Activities for Session 3 • Definition of Organization Development (OD) • OD and planned change models vs. other forms of organization change • Roots of OD • Introduction to the planned change model (action research model) • Types of OD interventions • Case study • Video cases

  3. Burke’s Definition of OD OD is a planned process of change in an organization’s culture through the utilization of behavioral science technology, research, and theory. Cummings & Worley 9e, (c) 2008 South-Western/Cengage Learning

  4. Beckhard’s Definition of OD OD is an effort (1) planned, (2) organization-wide, and (3) managed from the top, to (4) increase organization effectiveness and health through (5) planned interventions in the organization’s “processes,” using behavioral science knowledge. Cummings & Worley 9e, (c) 2008 South-Western/Cengage Learning

  5. Discuss: • What is OD? Provide your definition • Is OD practiced in Brazilian organizations? Can you share any examples?

  6. Organization Development is defined as • the system-wide application and transfer of • behavioral science knowledge • to the planned development, improvement, and change • of strategies, structures, and processes • that lead to organizational effectiveness (Cummings & Worley, 2009)

  7. Techno-structural Interventions Restructuring Organizations Employee Involvement Work Design Human Resources Management Interventions Performance Management Developing Talent Managing Work-force Diversity & Wellness Human Process Interventions Interpersonal & Group Process Approaches Organization Process Approaches Strategic Interventions Transformational Change Continuous Change Transorganization-al Change Special Topics in Organization Development Organization Development OD in Nonindustrial Future Directions in Global Settings Settings in OD Cummings & Worley 9e, (c) 2008 South-Western/Cengage Learning

  8. Models of Planned Change • Lewin’s Model (Unfreeze, Move, Refreeze) • Positive Model • Action Research Model

  9. Lewin’s Change Model Unfreezing Movement Refreezing Cummings & Worley,9e (c) 2008 South-Western/Cengage Learning

  10. Action Research Model Problem Identification Joint diagnosis Consultation with a behavioral scientist Joint action planning Action Data gathering & preliminary diagnosis Data gathering after action Feedback to Client Cummings & Worley,9e (c) 2008 South-Western/Cengage Learning

  11. Positive Model Initiate the Inquiry Inquire into Best Practices Discover Themes Envision a Preferred Future Design and Deliver Ways to Create the Future Cummings & Worley,9e (c) 2008 South-Western/Cengage Learning

  12. General Model of Planned Change Planning and Implementing Change Evaluating and Institutionalizing Change Entering and Contracting Diagnosing Cummings & Worley,9e (c) 2008 South-Western/Cengage Learning

  13. McGregor’s Theory X & Theory Y Theory X: Managers assume that people: • Have a genuine distaste for work; Therefore: Must be prodded, coerced or threatened into work • Prefer to be closely supervised; Avoid as much responsibility as they can • Have little ambition; Value security above all else Theory Y: Leaders assume that people: • Want to work • Will exercise self-control if they are committed to the results • Will be motivated to achieve goals if they value the outcomes to be achieved • Have imagination & creativity (these are not traits reserved for those in leadership positions) • Are capable of realizing more potential than are typically given

  14. The Organization Development Practitioner • Internal and External Consultants • Professionals from other disciplines who apply OD practices (e.g., TQM managers, IT/IS managers, compensation and benefits managers) • Managers and Administrators who apply OD from their line or staff positions Cummings & Worley, 9e (c) 2008 South-Western Cengage Learning

  15. Competencies of an OD Practitioner • Intrapersonal skills • Self-awareness • Interpersonal skills • Ability to work with others and groups • General consultation skills • Ability to manage consulting process • Organization development theory • Knowledge of change processes • Business knowledge • Research methods Cummings & Worley, 9e (c) 2008 South-Western Cengage Learning

  16. Flawless Consulting (Peter Block) • Partnering with clients • Developing commitment for change • Acting authentically • Trusting yourself and your experience

  17. Action Research Model Entry Start-up Adoption Assessment and Feedback Separation Action Planning and Change Management Evaluation Intervention

  18. Entry • Take 3 minutes to write down answers to these questions: • What are the important activities on the entry stage? • What are some important issues to be mindful of at this stage? • Share your thoughts with the large group.

  19. The Entry Process • Clarifying the Organizational Issue • Presenting Problem • Symptoms • Determining the Relevant Client • Working power and authority • Multiple clients • Specify the mission for the project Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

  20. Interpersonal Issues of Entry • Client Issues • Exposed and Vulnerable • Inadequate • Fear of losing control • OD Practitioner Issues • Empathy • Worthiness and Competency • Dependency • Over identification Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

  21. Types of Clients • Contact clients: approach the consultant initially • Intermediate clients: get involved in early meetings, provide some information • Primary clients: own a problem for which they need help • Ultimate clients: may or may not be directly involved with the consultant, but their welfare and interests must be considered in planning the interventions Shein (1988)

  22. Proposal: Questions to Consider • What is the organization after? • How deep does the problem go? • How many people & levels will be touched? • What kind of organizational culture exists? • Who are the decision makers? • Are there differences of opinion in the firm? • Has the firm used consultants in the past?

  23. Starting an Action Research Project • Begins when contract is signed • Building working relationships • Becoming oriented to client’s world • Complete preliminary diagnostic scan • Develop project plan

  24. Information Gathering and Analysis • Brainstorm a list of all things you need to know about the problem (Q: What information would you need to collect in the Falcon case?) • Prioritize the list (Use the Pareto rule: 80/20) • Think how you can collect data about the things you need to know (Falcon Case)

  25. Information gathering: find the real problem and facts • Literature search: published company and industry information; government sources • Document review: • Internally generated: mission statements and related materials, financial statements, org. charts, operating plans, operating manuals and procedures books, job task analysis reports, safety procedures handbooks • Externally generated: banks, auditors, government offices (OSHA, EPA, etc.), but circulated within the company

  26. Information gathering (cont.) • Interviews: • internal personnel directly and indirectly related to project, • internal personnel unrelated to project, but who may have insights into it, • external stakeholders: customers, suppliers, investors • Surveys: internal and/or external stakeholders; standardized or created by you • Direct observation • Other, non-related information

  27. Analysis Qualitative and quantitative Qualitative--content analysis : - comparing individual answers to the same question - thematic analysis: identify common themes Quantitative: statistical analysis of survey results. Caution: are the “significant” topics really significant? Use the Pareto principle in your analysis Develop sketches, cause-effect diagrams, and flow charts to analyze the situation Ask: why? why? why? why? why?

  28. Techniques for Analyzing Data • Qualitative • Content Analysis • Force-Field Analysis • Quantitative • Descriptive statistics • Correlations • Differences between groups

  29. Force-Field Analysis of Work Group Performance Forces for Change Forces for Status Quo Group performance norms New technology Better raw materials Fear of change Current Performance DesiredPerformance Competition from other groups Member complacency Well-learned skills Supervisor pressures Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

  30. Organizational Diagnosis • Three levels: • organization-wide • group • individual job • Using systems thinking • Inputs • Design Components (Process/Transformation) • Outputs

  31. Organization Level Diagnosis • Inputs • External environment • Industry Structure • Design Component: Strategic Orientation • Strategy (Mission, Goals/Objectives, Intent/Policies) • Organization Design (Core Activities, Structure, Measurement, HR, Culture) • Outputs • Org. Performance • Productivity • Stakeholder Satisfaction

  32. Organization-Level Diagnostic Model Outputs Inputs Design Components Technology Strategy Structure HR Measurement Systems Systems General Environment Industry Structure Organization Effectiveness Culture Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

  33. Key Alignment Questions • Do the Design Components fit with the Inputs? • Are the Design Components internally consistent? Do they fit and mutually support each other? Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

  34. Organization Design Components • Strategy • the way an organization uses its resources (human, economic, or technical) to gain and sustain a competitive advantage • Technology • the way an organization converts inputs into products and services • Structure • how attention and resources are focused on task accomplishment Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

  35. Organization Design Components • Human Resource Systems • the mechanisms for selecting, developing, appraising, and rewarding organization members • Measurement Systems • methods of gathering, assessing, and disseminating information on the activities of groups and individuals in organizations Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

  36. Outputs • Organization Performance • e.g., profits, profitability, stock price • Productivity • e.g., cost/employee, cost/unit, error rates, quality • Stakeholder Satisfaction • market share, employee satisfaction, regulation compliance Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

  37. Alignment • Diagnosis involves understanding each of the parts in the model and then assessing how the elements of the strategic orientation align with each other and with the inputs. • Organization effectiveness is likely to be high when there is good alignment. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

  38. Group-Level Diagnostic Model Inputs Design Components Outputs Goal Clarity Task Group Structure Functioning Group Performance Composition Norms Group Effectiveness Organization Design Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

  39. Group-level Diagnosis • Inputs • Organization Design • Design Components • Goal Clarity, Task Structure, Group Composition, Group Norms, Team Functioning • Outputs • Team Effectiveness, as measured by: Quality decisions, productivity, team cohesiveness, etc.

  40. Group-Level Design Components • Goal Clarity • extent to which group understands its objectives • Task Structure • the way the group’s work is designed • Team Functioning • the quality of group dynamics among members • Group Composition • the characteristics of group members • Performance Norms • the unwritten rules that govern behavior Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

  41. Group-Level Outputs • Product or Service Quality • Productivity • e.g., cost/member, number of decisions • Team Cohesiveness • e.g., commitment to group and organization • Work Satisfaction Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

  42. Job-level Diagnosis • Inputs • Org. Design, Group Design, Personal Characteristics • Design Components • Skill variety, task identity, task significance, autonomy, feedback about results • Outputs • Individual effectiveness, as measured by: performance, absenteeism, job satisfaction, personal development, etc.

  43. Individual-Level Diagnostic Model Inputs Design Components Outputs Skill Variety Task Identity Autonomy Task Feedback Significance about Results Individual Effectiveness Organization Design Group Design Personal Traits Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

  44. Individual-Level Design Components • Skill Variety • The range of activities and abilities required for task completion • Task Identity • The ability to see a “whole” piece of work • Task Significance • The impact of work on others • Autonomy • The amount of freedom and discretion • Feedback about Results • Knowledge of task performance outcomes Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

  45. Individual-Level Outputs • Performance • e.g., cost/unit, service/product quality • Absenteeism • Job Satisfaction • e.g., internal motivation • Personal Development • e.g., growth in skills, knowledge, and self Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

  46. Data Feedback • Purpose of Feedback • create energy • direct energy • turn energy into action

  47. Possible Effects of Feedback Feedback occurs Is the energy created by the feedback? No Change NO Energy to use data to identify and solve problems YES What is the direction of the feedback? Energy to deny or fight data Do structures and processes turn energy into action? Failure, frustration, no change NO Anxiety, resistance, no change YES Change Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

  48. Determining the Content of Feedback • Relevant • Understandable • Descriptive • Verifiable • Timely • Limited • Significant • Comparative • Unfinalized Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning

  49. Kirkpatrick’s Levels of Evaluation • Reactions. (At point 3 mostly). "Reaction may best be defined as how well the trainees liked a particular training program." (Kirkpatrick, 1959) • Learning. (At points 1,2,3) "What principles, facts, and techniques were understood and absorbed by the conferees?“ (Kirkpatrick,1960)

  50. Kirkpatrick’s Levels of Evaluation 3. Behavior. Changes in on-the-job behavior. (No formal definition). (At point 4). 4. Results. "Reduction of costs; reduction of turnover and absenteeism; reduction of grievances; increase in quality and quantity or production; or improved morale which, it is hoped, will lead to some of the previously stated results." (Kirkpatrick, 1959). (At point 4).

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