Introduction to Organization, Change

and Organizational Development

Dr. Faiq Aziz
Impact of Covid-19
• KUALA LUMPUR – 9th Oct 2020: AirAsia Bhd and AirAsia X Bhd, have confirmed the retrenchment of 10 per
cent of their 24,000 employees last week. This confirmed a Bernama report on Sept 28 that AirAsia might be
planning a new round of layoffs.
• Exxon was laying off 1,600 employees in Europe as of October 5. The cuts represent 2% of its global
workforce.
• Oil giant Shell is cutting up to 9,000 jobs, or roughly 10% of its workforce, as of September 30. The layoffs are
meant to cut costs amid the pandemic, as well as position the company to move away from fossil fuels.
• Oilfield services company Schlumberger said it is cutting roughly 21,000 jobs on July 24. It also reported
second-quarter losses of $3.4 billion.
• Disney announced on September 29 that it was cutting 28,000 jobs from its theme parks division as the
coronavirus pandemic continues to heavily impact that side of its business. The layoffs will most heavily affect
part-time employees. CNBC reported in August that park shutdowns cost the company $3.5 billion.
• Dell told employees on September 14 that it will start eliminating an unspecified number of jobs in an effort to
cut costs, according to Bloomberg.
• Citigroup will continue laying off roughly 1% of its global workforce, the company announced on September 14.
The cuts end a previous commitment to pause layoffs amid the pandemic.
• PVH Corp, the company that owns Calvin Klein and Tommy Hilfiger among other brands, announced that it is
shuttering 162 stores and cutting 450 jobs, or 12% of its workforce, on July 14.
• HSBC, Europe's biggest bank, announced plans to cut 35,000 jobs — or 15% of its global workforce — across
the US and Europe on June 17. TREY research
Impact of Covid-19
• Despite the well-documented plight of some industries, others have been boomed during the pandemic:-
• Online Retailing – Amazon stock price closed at $1,676.61. By the end of June, it was nearly $1,000
higher than it was just a few months prior.
• Work communication apps- Zoom is leading the pack when it comes to its subset of video-conferencing
platforms, having been downloaded almost 27 million times in March, up from a modest 2.1 million times
in January
• Supermarkets - Even with stay-at-home orders in place, supermarkets remained open as “essential
businesses.”
• ‘Virus protection’ products - HanaMedic, a Bangi-based company, usually makes 400,000 bottles of hand
sanitisers a year, but since the outbreak of Covid-19, it has made 395,000 bottles in a mere three weeks.
TopGlove group achieved its highest quarterly net profit of RM2.38 billion (1Q2021) compared to
RM110.06 million (1Q2020)
• Entertainment and news media - Netflix, added nearly 16 million new subscribers during the first quarter of
2020.

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• Organization can be defined as the process of
identifying and grouping the work to be performed,
defining and delegating responsibility and authority
and establishing relationships for the purpose of
enabling people to work most effectively together in
accomplishing objectives.

1) An organization without a clear purpose or

mission soon begins to drift and become
disorganized.
2) Coordinating effort involves working together
in a way that maximizes resources.
3) Division of labor is also known as work
specification for greater efficiency.
4) Hierarchy of authority is essentially the chain
Concept
of command—a control mechanism for making
sure the right people do the right things at the of Organization.
right time.

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Organization development 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.
(Richard Beckhard)
Definition
Organizational Development…

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• It is a planned change effort.
• An OD program involves a systematic diagnosis of the organization, the
development of a strategic plan for improvement, and the mobilization of resources
to carry out the effort.
• It involves the total “system.”
• An organization-development effort is related to a total organization change such as
a change in the culture or the reward systems or the total managerial strategy.
• It is managed from the top.
• The top management of the system has a personal investment in the program and
its outcomes. They actively participate in the management of the effort. They must
have both knowledge and commitment to the goals of the program and must actively
support the methods used to achieve the goals.
• It is designed to increase organization effectiveness and health.
• To understand the goals of organization development, it is necessary to have some
picture of what an “ideal” effective, healthy organization would look like.

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Characteristic of OD

1. Programme is planned involving all the departments and subsystems

seeking their coordination.
2. The top management is committed to the programmes for
organization development.
3. It is related to organizational objectives.
4. OD is based on research. Continuous research goes on because
interventions are based on findings.
5. It utilizes change agents to motivate the group of people to accept
the changes within the organization as a part of OD.

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6. OD lays stress on changing the behavior of people.
7. It seeks interaction between various groups to cope up with
the changes that OD will incorporate.
8. Broadcasting is made so that people should know about the
developments. Feedback is taken.
9. OD through discussions solutions to the problems is sought.
All problem solving research constitute action research.
10.OD takes pretty long time to implement.

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Organizational
Development Values
➢Respect People
➢Confidence and Support
➢Employee Participation
➢Expression
➢Seeking Cooperation

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Advantages of Organization Development

➢ Organization development is not a magic to solve all the management problems but
definitely it helps in meeting the challenges thrown by change and making the
organization effective.
➢ OD processes and methods encourage team work, improve intergroup relationship.
➢ It helps employees to understand each other better and promotes cooperation and
mutual understanding.
➢ OD helps in boosting up the morale of the employees. High morale leads to greater
productivity.
➢ It helps the employees to accept changes in the technology which increase efficiency
ultimately leading to have an edge over the competitors and increase the market
share.

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Future Organization

• Increase in remote working

• Contingent worker expansion
• Increase in organization complexity
• Integrate teams of humans and technology
• Investing in Employee Well-being

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➢ Change Management is the term that is
used to refer to the change or transitioning
people, groups, companies and projects
from one state to another.
➢ When this term is applied to businesses and
projects, it may refer to a process of
transitioning the scope of the project in such
a way that it can meet changing
requirements and objectives.
➢ Change management involves the
application of structured methods and a pre-
planned framework so as to steer business
from its current state to a desired state.
➢ The main benefit or advantage of the
Concept
application of change management is that it Change Management…
helps to increase the chances of a business
staying on its budget or schedule that in turn
leads to higher ROI and realization of
benefits.
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 Why Organization
Change ?
1. Crisis
2. Performance Gaps
3. New Technology
4. Identification of
Opportunities
5. Reaction to Internal &
External Pressure

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Lewin’s Change Management Model

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 Lewin’s Change Management Model

➢ Unfreeze: The first stage involves the preparation for the change. This means that at this step, the
organization must get prepared for the change and also for the fact that change is crucial and needed.
This phase is important because most people try to resist change, and it is important to break this
status quo. The key here is to explain to people why the existing way needs to be changed and
how change can bring about profit.
➢ Change: This is the stage where the real transition or change takes place. The process may take time
to happen as people usually spend time to embrace new happenings, developments, and changes. At
this stage, good leadership and reassurance is important because these aspects not only lead to steer
forward in the right direction but also make the process easier for staff or individuals who are involved
in the process. Communication and time thus are the keys for this stage to take place
successfully.
➢ Refreeze: Now that the change has been accepted, embraced and implemented by people, the
company or organization begins to become stable again. This is why the stage is referred to as
refreeze. This is the time when the staff and processes begin to refreeze, and things start going back
to their normal pace and routine. This step requires the help of the people to make sure changes are
used all the time and implemented even after the objective has been achieved. TREY
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 ADKAR model

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Impact of Covid-19

Source:JobstreetCovid-19Report(2020)
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Salary Reduction

Source:JobstreetCovid-19Report(2020)
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Job Search Amid Covid-19

Source:JobstreetCovid-19Report(2020)
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Recommendations for Organizations
• Improve company culture
• Talent strategies
• Employee engagement
• Compensation and benefit
• Health, wellbeing and work life balance
• Leadership

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Assignment 1 (Individual) (20%)

Choose any organization that you prefer for diagnosis and provide recommendations
for its organizational development according to following details :-
1. Based on your own understanding, what is organizational development ?
2. Describe five (5) reason why the organization that you choose need to change ?
3. In your opinion, identify five (5) cause of why it’s difficult for that organization to
change ?
4. Proposed possible solution for the issues that you have identify.

Submission:
➢Times New Roman 12, spacing 1.5

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Group Assignment (20%)

Choose any organization that you prefer for diagnosis and provide recommendations
for its organizational development according to following details :-
1. Company background
2. Identify any issues related to OD perspective
3. Suggest possible solutions by using any OD models that you prefer

Submission: On 3rd Class

➢Report: Times New Roman 12, spacing 1.5
➢Group Presentation

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