Professional Documents
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STUDY GUIDE
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MANAGEMENT COLLEGE OF SOUTHERN AFRICA
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Managing Strategic Change
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1. WELCOME
Welcome to the MBA programme. As part of your studies towards the MBA Degree you are
required to study and successfully complete this module on Managing Strategic Change
(Organisation Development).
2. COURSE DESCRIPTION:
Many major companies are going through significant changes, including outsourcing,
downsizing, re-engineering, self-managed work teams, flattening organisations, and doing
routine jobs with automation and computers. In the past, managers aimed for success in a
relatively stable and predictable world. In the hyperturbulent environment of the twenty-first
century, however, managers are confronting an accelerating rate of change. They face constant
innovation in computer and information technology and a chaotic world of changing markets and
consumer demands. Today’s organisations must be able to transform and renew themselves to
meet these challenges and changing forces.
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3. AIM OF MODULE
The aim of this module is to enable students to acquire a comprehensive understanding of the
basic principles and approach to Organisational Development through application and action
learning. The ultimate goal, therefore, is to produce a reflective management practitioner who
constantly applies and challenges theoretical research constructs to a practical work oriented
situation in which he or she functions.
The object of this module is to introduce students to organisational development and is intended
to assist the student, manager, and future OD practitioner in understanding strategies and
techniques of organisational development and moves from the more basic elements to the more
complex.
4. MODULE OUTCOMES
Anticipate change by understanding planned change, what is OD, why it has emerged,
and the nature of changing corporate culture
Understand the OD process in the context of the basic roles and styles of the OD
practitioner in overcoming resistance to change
Develop excellence in individuals by discussing personal intervention skills, strategies,
and interventions on an individual level
Develop high performance in teams by focusing on team development, inter-team
interventions, and goal-setting strategies
Understand strategies to develop success in organisations by focusing on system-wide
OD approaches, organisation transformation and strategic change, and the challenges that
lie ahead
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This module, Organisational Development, must be studied using this Study Guide together with
the prescribed text.
Prescribed Text
A number of recommended text books will be listed. You are encouraged to read the
recommended texts to enhance your knowledge and learning experience.
Learning Outcomes
At the beginning of each section in this Study Guide you will find a list of learning outcomes.
These outcomes detail the level of competence which you should have achieved on completion
of the section.
Exercises
Throughout this Study Guide you will find exercises with which you need to engage. The
purpose of these exercises is to:
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In the study module, you will find the following symbols and instructions. These are designed to
help you study. It is imperative that you work through them as they also provide guidelines for
examination purposes.
You may come across self–assessment questions that test your understanding of what you have
learned so far. Answers to these questions are given at the end of each section. You should refer
to the textbook or any other relevant source to help you.
? THINK POINT
A Think Point asks you to stop and think about an issue. Sometimes you are asked to apply a
concept to your own experience or to provide an example. Think points provide excellent
starting points for developing an analytical mind and a discerning approach towards the subject
and also form a basis for examinations.
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PRESCRIBED READING
PRESCRIBED TEXT
At this point you must read the references given to you. If you are unable to acquire the
suggested readings, then you are welcome to consult any current source that deals with the
subject. This constitutes research.
GROUP QUESTIONS
It is advisable for students to form syndicate groups and to work together to share ideas and
discuss different points of view.
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CASE STUDY
It is advisable to include Case Studies after sections of the guide. This activity must give
students an opportunity to apply theory to practice.
There are two methods of assessment that will be used for this module. The first is an assignment
based on an in-depth analysis of change management themes that seeks to examine the student’s
ability to apply the Change Management concepts and principles to a practical work situation.
Students need to research the material for the assignment from various literature. Reproduction
of material from either the recommended textbook or from the module will be deemed
inadequate. The assignment will contribute 50% of your final year mark. The other 50% will be
derived from the second assessment method which will be an examination paper of 3 hours
duration. Enjoy the module!
Brown (2011) point out that learning is most effective when it is tied to direct experience which
connects theory and activity with prior or current on-the-job situations. In this respect, group
membership or association with other students, although not compulsory, is certainly
recommended for the shared experiences and effective feedback that can be disseminated.
Ultimately, you learn best from a combination of theory and experience.
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Implementing the intervention consists of both what is to be done and how it is done. The what
requires attention to three phases: unfreezing the status quo, moving to the new state, and then
refreezing the new state to make it permanent. The how refers to the way in which the agent
chooses to put the change process into effect. The change agent must choose appropriate change
models for the job at hand, bearing in mind the general principles of change. Successful change
improves the organisation’s effectiveness and, naturally, a change in one area will impact on
other areas and is likely to initiate new forces for other changes. The feedback loop illustrated in
Figure 1.1 recognises that the model is dynamic and the need for change is, therefore, both
inevitable and continuous.
What is to be
Changed ?
Intervention
Strategies Structure?
Technology?
Organisational
Processes
Change
Results Organisational
Source: Robbins (1987: 308) Effectiveness
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CHAPTER ONE
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CHAPTER ONE
INTRODUCTION TO ORGANISATION DEVELOPMENT:
REINVENTING THE ORGANISATION
LEARNING OUTCOMES
Define the concept of organisation development and recognize the need for change and
renewal.
Describe organisation culture and understand its impact on the behaviour of individuals
in an organisation.
Understand the expectations of the psychological contract formed when employees join
an organisation.
Describe the five stages of organisation development.
READING
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OVERVIEW
Chapter one introduces the concepts and techniques of organisation development and
organisational change and renewal. This includes understanding planned change, what OD
is, why it has emerged, and the nature of changing the corporate culture. The chapter
discusses organisation culture and its impact on the behaviour of individuals in an
organisation, and the expectations of the psychological contract formed by individuals when
joining an organisation. The chapter concludes with a model for organisational change with
a discussion of the five stages of organisation development.
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Because change is occurring so rapidly, there is need for new ways to manage it. This course
helps managers to learn about Organisation Development (OD) and the part it can play in
bringing about change in organisations. The purpose is twofold:
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Planned
Organisation wide
Managed from the top
Designed to increase organisation effectiveness and health
Using planned interventions
Using behavioural science knowledge
To enlarge upon the definition of OD, the basic characteristics of OD programmes are examined:
The Characteristics of OD
1. Change
OD is a planned strategy to bring about organisational change. Obviously, the change is designed
to meet some objective and is dependent on the inputs from the diagnosis of the problem.
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2. Collaborative
OD includes the involvement and participation of the organisation members affected by the
changes. It is thus a collaborative approach. The input of staff members affected by change is
important to instil a sense of ownership of the process.
3. Performance
OD programmes include ways to improve the performance and efficiency of the organisation.
After an effective OD programme the organisation must become more competitive and efficient.
4. Humanistic
OD programmes rely on a set of humanistic values about people and organisations with the
objective of opening up opportunities for the increased use of people so that the organistaion can
become more effective.
5. Systems
OD programmes are concerned with the sociotechnical system which focuses on interrelationships
between divisions, departments, individuals, groups and processes as interdependent subsystems of
the total organisation.
6. Scientific
OD programmes are based on scientific principles and approaches to increase the effectiveness
of organisations.
Why has such a fast-growing field emerged? Organisations are designed to accomplish some
purpose or function and to continue doing so for as long as possible. Because of this,
organisations are not necessarily intended to change. But no one can escape change. The most
cited reasons for beginning a change programme are:
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Other goals cited included changing the corporate culture, becoming more adaptive, and
increasing the competitive position to keep pace with the accelerating rate of innovation.
THE EMERGENCE OF OD
Organisation development is one of the primary means of creating more adaptive organisations.
Three factors have been identified as underlying the emergence of OD:
Although many organisations have been able to keep pace with the changes in information
technology, few firms have been able to adapt to changing social and cultural conditions. Given
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this increasing complex environment, it becomes even more critical for management to identify
and respond to forces of social and technical change.
Flexibility
Speed
Innovation
Constantly changing conditions
Management theorists believe that to be successful in the next century, organisations will require
changes of the kind shown in Figure 1.2 below:
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Brown (2011:2) suggest that predictability is a thing of the past, and that the winning
organisation will be based on quality, innovation, and flexibility. Successful firms will share
these traits:
Speed of service delivery
Quality conscious
Employee involvement
Customer oriented
Smaller
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It is not within the scope of this course to provide a detailed history of OD. The student needs to
read the following in the text book for background information:
OD specialists
Professionals trained in OD
Sometimes called OD consultants
Specialists are:
Internal practitioners – from within the organisation
External practitioners – from outside the organisation
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Culture refers to a specific civilization, society, or group and its distinguishing characteristics.
The term organisation culture refers to a system of shared meanings, including the language,
dress, patterns of behaviour, value systems, feelings, attitudes, interactions, and group norms of
the members.
Norms are organized and shared ideas regarding what members should do and feel, how
behaviour is regulated, and what sanctions should be applied when behaviour does not coincide
with social expectations. A look at the types of norms that exist in an organisation provides a
better understanding of the concept:
Solicalise may be defined as the process that adapts employees to the organisation’s culture. as
shown in Figure 1.3 below:
Figure 1.3 The Solicalise Process
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To function effectively, managers and employees must be aware of the organisation’s norms.
New employees become aware of the norms and the more the individual can meet expectations,
the less the feelings of anxiety and discomfort. Some organisations assign current employees to
act as mentors to new employees.
The organisation’s culture provides a way for members to meet and get along. Three important
aspects of solicalise when joining an organisation are:
To work together effectively, individuals need to understand things like power, status, rewards,
and sanctions for specific types of behaviours.
New members often find that the norms are unclear, confusing, and restrictive. As a result, they
may react in different ways when entering an organisation. See 1.4 below.
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Psychological contract
A psychological contract may be defined as an unwritten agreement between individuals and the
organisation of which they are members. It describes certain expectations that the organisation
has of the individual and the individual’s expectations of the organisation. Because the two
parties are growing and changing, the contract must be open-ended so that issues may be
renegotiated.
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Continuous Improvement
In today’s environment, companies seeking to be successful and survive are faced with the need
to continually introduce changes. A critical challenge for managers who are leading change
efforts is to inspire individuals to work as a team.
The five stage model discussed above shows how different OD methods and approaches are used
to continuously improve performance so that the vision can be achieved. The OD practitioner
acts as a facilitator to promote team problem solving and collaboration, and encourages such
values as trust, openness, and consensus, whilst being mindful of the political nature of
organisational decision-making using a problem-solving approach that is compatible with power-
oriented situations.
ACTIVITY 1.1
6. Read a book or view a video/movie (e.g., Wall Street or The Firm) and identify the
organisational culture and norms it embodies.
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CHAPTER SUMMARY
This chapter focused on several major issues. One is that organisations operate in a dynamic and
changing environment and consequently must be adaptive. You have been introduced to the
emerging field of OD and the ways it is used to improve organisational effectiveness.
Key concepts have been discussed and a thorough understanding of the following will enhance
knowledge of OD and the resulting chapters:
Change
Organisation Development
Culture
Solicalise
Psychological Contract
OD Model
? THINK POINT
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Answer: The Psychological contract involves the expectations on the part of individuals and
organisations to which they belong or in which they take part (i.e., work). Each side must
understand that such a “contract” exists and that unless these expectations are met, there will
be conflict.
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Answer: Socialisation is the process that adapts employees to the organisation’s culture. An
individual may respond to the socialisation in three basic ways. At one extreme, an individual
may conform to all the norms of the organisation, resulting in uniformity of behavior and
complete acceptance of organisation values. At the other extreme, an individual may rebel,
reject all values, or leave the organisation altogether. Another alternative between the two
previous extremes is for an individual to accept the pivotal norms and seriously question the
peripheral norms, which is called creative individualism.
Read a book or view a video/movie (e.g., Wall Street or The Firm) and identify the
organisational culture and norms it embodies.
Answer: Stage one is to anticipate a need for change. People in the organisation perceive that
the organisation is in a state of disequilibrium or needs improvement. In stage two relations
between the practitioner and organisation members (the client) develop. The practitioner
attempts to establish a pattern of open communication, a relationship of trust, and an
atmosphere of shared responsibility. Stage three is the diagnostic phase where the practitioner
and client gather data and analyze the data to identify problem areas and causal relationships.
In stage four action plans, strategies, and techniques are developed to resolve problems and
increase organisation effectiveness. The plans and techniques include total quality
management (TQM), job design, role analysis, goal setting, team building, and intergroup
development. Stage five, the last stage, is a period of self-renewal, monitoring, and stabilizing
the OD program. In this stage the change program is monitored to make sure that the new
behavior is stabilized and internalized. If this is not done, the tendency is for the system to
regress to previous ineffective modes or states. The client system needs to develop the
capability to maintain innovation without outside support.
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? THINK POINT
ACTIVITY
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CHAPTER TWO
ORGANISATION RENEWAL:
THE CHALLENGE OF CHANGE
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LEARNING OUTCOMES
OVERVIEW
Change is constant. Markets, products and competitive conditions are in a constant state of
change. Under these pressures, organisations are changing: they are downsizing, reengineering,
flattening structures, going global, and initiating more sophisticated technologies. However,
many organisational changes often have unintended consequences on the productivity of
individual work units. In the case of downsizing, morale, trust, and productivity decreases on
occasion. As the environment changes, organisations must adapt if they are to remain creative,
relevant and successful. The commitment to change and innovation becomes paramount in this
dynamic environment.
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READING
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INTRODUCTION
The pace of global, economic and technological development makes change an inevitable feature
of organisational life (Cummins & Worley, 2005:22). We live in a period in which organisation
change is so rapid that even the bad old days are beginning to look good by comparison. Change
is not just happening to companies whose job it is to change and innovate - the Microsofts,
Intels, and Volvos of this world, who come up with fresh consignments of new models and
product ideas every spring - but also to the average companies that have offered the same
product or service for several decades. Everyone is expected to renew, at least, the process by
which they produce the same old offerings.
No industry or organisation is exempt. In fact no country is isolated from this trend. To this
extent, Brown (2011: 52) begin their discussion with the statement, “Change is the name of the
game in management today.” Further on, on the same page, they assert that, “In today’s business
environment, more than at any time in history, the only constant is change.”
The upshot of all this is that the modern manager must not only learn to cope with inordinate
amounts of change but must also learn to manage it and, more importantly, to lead his
department and others to effectively cope with it. Increasingly, it is becoming a business
imperative that organisations need to respond to changes in their operating environments by
making adjustments to the whole enterprise: in other words, by becoming a learning
organisation.
In this regard, the Systems Approach, coupled with a management style which is based on
Contingency Theory, offers a more effective means of anticipating, identifying and integrating
change into the mission and culture of the organisation. We have already made the point that, for
all practical purposes, the terms Change Management and Organisation Development are
synonymous. Change that occurs in an organisation can be distinguished from change that is
planned by its members. This module focuses on planned change. Planned change is often
initiated and implemented by managers, often with the assistance of a change agent.
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Change is dynamic. Market, product, and competitive conditions are rapidly changing. Under
these circumstances, organisations are downsizing, reengineering, flattening structures, going
global, and initiating more sophisticated technologies. However, many changes have unintended
consequences on the productivity of individual work units. As the environment changes,
organisations must adapt if they are to be successful. The commitment to innovation, and
product development helps to keep organisational culture and spirit alive.
Renewal of organisations
Organisation renewal requires that managers must make adaptive changes to the environment.
The only constant is change. The focus of OD is on changing organisational systems, stressing
the situational nature of problems and their system-wide impact. The focus of organisation
development is on changing organisational systems, stressing the situational nature of problems
and their system-wide impact. Using the systems approach in solving a given problem,
managers must analyse the organisation, its departmental subsystem interrelationships, and the
possible effects on the internal environment.
Constant change
Friendly facts—the renewing companies treat facts as friends and financial controls
as liberating. They love facts and information that removes decision making from
mere opinion.
Teamwork and trust—renewers constantly use such words as teamwork and trust.
They are relentless at fighting office politics.
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RENEWING REACTIVE
TRANSFORMATIONAL
ES
ENTROPY SLUGGISH
DISORGANISATION THERMOSTAT
Stable
High Adaptive Low
Orientation
Let us now examine each of the four quadrants in turn, starting with the Sluggish Thermostat and
then moving in a clockwise direction. These quadrants reflect the various orientations used by
managers in managing their organisations and their perception of change.
Sluggish management is a management style favouring low risk, formal procedures with a high
degree of structure and control. Thus organisations depicted by this quadrant usually have more
managerial levels, and a higher ratio of managers to subordinates with significant emphasis on
control systems. High value is placed on tradition and generally there is an unwillingness to
accept new ideas. Although low risk, this style may lead to problems in the future.
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Satisficing management means a management style that is satisfactory i.e. management which is
adequate and average. It is characterised by centralised decision-making structure with problems
being referred to senior management. This entails more levels of management and change in
such organisations occur at moderate rates. Wheatley (1996), the author of the groundbreaking
treatise, “Leadership and the New Sciences”, claims that all organisations are living systems
and, as such, they have a propensity to self-organise in response to change and to move toward
greater complexity and adaptive patterns and structures, as needed to cope with change. In this
state, then, change is the organising force, not a problematic intrusion, and structures and
solutions are temporary. “Leaders emerge from the needs of the moment. There are fewer levels
of management. Experimentation is the norm . . . Involvement and participation constantly
deepen” (Wheatley, 1996: 19).
Organisations that have a low level of adaptation exist in a rapidly changing environment.
Reactive management is a style of reacting to a stimulus after conditions in the business
environment have changed. In the last quadrant we have the situation where changes are small
and occur only infrequently. It is a management style that deals with problems on a crisis basis.
This may involve reduction of personnel or product lines, hasty reorganisation, replacing of key
personnel, or freezing promotions. Fundamentally, this management style implies inaction until
problems occur. So the lack of challenge and stimulus for organisations in this area ultimately
leads to their demise, unless some form of artificial stimulation can be administered.
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Consequences of Change
When planned change is implemented in an organisation, it will inevitably have consequences,
depending on the magnitude of the planned change. Small, incremental change or renewal can be
the result. Alternatively, the change can be transformational or strategic, cutting across the whole
organisation. These two are positive changes. The consequences of change can also be negative.
Examples are chaos and entropy which can result from planned change.
Table 2.1 contrasts and illustrates a number of the functional characteristics that an organisation
may encounter in the execution of the positive changes.
Renewal/Development Transformation/Turnaround
Requires proficient Management and enhances Requires proficient Leadership and enhances
efficiency, or doing things right effectiveness, or doing the right things
Frequently low risk, trendy and short term solutions with Higher risk, longer term and comprehensive change that
a high participative content is driven from the top down
Relatively simple and one dimensional changes that do Complex, multidimensional changes that will have a
not greatly affect organisation culture profound effect on organisation culture
There is seldom any concerted resistance and the There is often a strong emotional content and resistance
emotional content is less pervasive is more forceful
Change interventions are small & incremental, and the Interventions are significant and mainly take place
results are generally predictable synchronously, while the results are frequently not
predictable
Changes required are quite small and can be introduced Changes are time consuming and momentous and require
after only one or two fairly quick and limited detailed planning as well as a number of co-ordinated
interventions interventions
A limited number of people are involved or affected and The involvement and commitment of all the stakeholders
an outside consultant can facilitate changes in processes, is essential and an outside consultant can become part of
behaviours and structural systems the change process
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? THINK POINT
Discuss the factors that characterise transformational/turnaround change and consider its
implications in a practical setting.
Brown (2011 58-59) employ an approach based on Systems Theory. The Sociotechnical
Systems, High Performance Systems, the Contingency Approach, and Future Shock and Change
which the authors discuss are all based on a Systems Approach to Change Management. The
Systems Approach to organisational change will be briefly discussed.
Basically, the systems perspective states that changes in any part of the system have a
reverberating effect on all other parts of the system. For example, if an organisation implements
a new compueter system, this will trigger a series of changes in other sections of the
organisation. Staff will need to be retrained and in some respects have their culture changed.
Some positions will become redundant (this is a form of restructuring). The new technology may
facilitate the introduction of new processes or at least the modification of existing processes.
Simply knowing that this will occur is healthy, because we will not make the mistake of
confining our problems only to one part. The Systems Approach provides a conceptual
framework for integrating the various components within the system and for linking its
subsystems with larger organisational needs (Cascio, 1995: 48).
The student is urged to study the characteristics of Open Systems, Socio-technical Systems, and
High Performance Systems in Brown (2011:58-59).
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The Contingency Approach is based on Systems Theory and its basic premise is that there is no
single best way to manage. The corollary to this principle is that there is nearly always more
than one way to achieve an organisational goal. Managers must, therefore, be flexible and adapt
to the contingencies that are present or reflected in:
(i) their external environments,
(ii) the organisation’s own capabilities,
(iii) employees’ values, goals, skills and attitudes, and
(iv) the technology used by the organisation.
The term Future Shock was coined by Alvin Toffler in 1970 and over the years it has come to be
associated, amongst other things, with a hyper-turbulent operating environment. Many experts
have argued along the lines that, in such an environment, an organisation may be required to
develop new products or services on a continuing basis, just to survive. Also, it may have to
continuously re-examine its relationships with customers, government agencies, and suppliers.
The environment that characterised the personal computer manufacturing industry in the late
1980s and early 1990s is often put forward as a good example of this type of milieu.
ACTIVITY
The horizontal corporation breaks the company into its key processes and creates teams from
different departments to run them.
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A system is a set of interrelated parts unified by design to achieve some purpose or goal.
Systems have several basic qualities:
A system must be designed to accomplish an objective
The elements of a system must have an established arrangement
Interrelationships must exist among the individual elements of a system
The basic ingredients of a process are more vital than the basic elements of a
system
An organisation’s overall objectives are more important than the objectives of its
elements (Brown 2011: 58-59).
A system consists of the flow of inputs, processes, and outputs. (See Figure 2.2)
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Open systems
This is a system of coordinated human and technical activities. (See Figure 2.3). It uses the
following approaches:
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As can be seen in Figure 2.3 above, the organisation can be seen as an open system in interaction
with its environment and consisting of five primary components discussed below:
The goals and values subsystem - the basic mission and vision of the organisation.
The technical subsystem - the primary activities, including the techniques and
equipment, used to produce the output.
The structural subsystem - the formal design, policies, and procedures.
The psychosocial subsystem (culture) - the network of social relationships and
behavioural patterns of members.
The managerial subsystem - spans the entire organisation by directing, organizing,
and coordinating all activities toward the basic mission (Brown 2011:61)
These systems occur by design and not by chance. Key variables to be considered to improve
performance are:
business situation,
strategy
design elements
culture
results
The contingency view suggests that one must consider the specific organisation and its
environmental conditions in formulating change programmes. This approach identifies “if-then”
relationships and suggests general change directions (Brown 2011:61-62)
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Future shock is too much change in too short a time. Alvin Toffler, author of Future Shock,
suggests that future shock arises from the inability to adapt to accelerating rates of change. The
capacity of management to react is strained. Managers must be more adaptable and flexible than
every before. Widespread changes are predicted throughout society. (See Table 2.2)
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This is a deliberate attempt to modify the functioning of the total organisation or one of its major
parts in order to bring about improved effectiveness. Planned change efforts can focus on
individual, team, or organisational behaviour.
Individual effectiveness
This refers to change efforts that focus on individual effectiveness. The methods range from
empowerment training programmes to high-powered executive development programmes. The
goals are improved managerial, technical skills or improved interpersonal competence.
Team effectiveness
Change efforts that focus on the team or work group. There is an emphasis on improving
problem-solving, working through conflicts, and ways the group can improve its effectiveness
and productivity. Activities are designed to focus on task activities, and team process. Task
activities is what the team does and team process is how the team works and the relationships
among team members. One technique that is often used to help teams examine their operations is
process observation. Process observations examine:
Organisation effectiveness
These are change efforts that focus on the total organisation system. These activities aim at
improving effectiveness by structural, technical, or managerial subsystem changes (Brown2011:
65-66)
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ACTIVITY
SUMMARY
Change is dynamic and too much of change in too short a time (future shock) can be a real
problem for managers. Managers and organisations face rapid changes in three areas:
technological advances, environmental changes, and social changes. Organisations must renew
and adapt to these changing situations. For an organisation to have the capacity to adapt to
change and become more effective, management must initiate and create a climate that
encourages creativity and innovation. However, every organisation must maintain a dynamic
equilibrium between stability and innovation operating in a sociotechnical system which is
viewed as an open system of coordinated human and technical activities. Organisation
development uses planned change to improve the effectiveness of the organisation. Planned
change can focus on individuals, teams or the organisation.
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RESPONSE TO ACTIVITY
3. Compare and contrast the four types of management orientations used in relating to the
environment.
Answer: Reactive—waits until something happens, then reacts.
Sluggish Thermostats—resists change and slow to adapt.
Satisficing—does only what is necessary to get by, “good enough.” Renewal
Transformation—looks ahead to prepare for change, makes necessary contingency plans in
advance
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Answer: Future shock is too much change in too short a time. Future shock affects both
managers and organisations. Management’s capacity is strained when change occurs too
rapidly. In order to overcome future shock, managers must become adaptable and flexible.
Uncertainties brought on by future shock make accurate planning more difficult and plans
sometimes become out of date before they can be fully implemented. Since life cycles of
products and services are shortened, organisations must become more adaptive and be able to
quickly change. This means that new forms and models of organisations are required in order
to meet the changing conditions.
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CHAPTER 3
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OBJECTIVES
READING
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INTRODUCTION
The subject of Corporate Culture is generally alluded to, or skirted around, in the literature of
organisation theory and change management. It has only become a subject of in-depth study,
with a view to establishing the utility of the concept, in the past two or three decades. This is
probably partly due to the runaway success of a new genre of management books, beginning
with In Search of Excellence by Peters and Waterman in 1982 and then followed by a plethora of
publications in the 1980s and 1990s on the subject of excellence. This period also saw the
emergence of Japanese industry as potential world leaders - inviting the inevitable comparisons
between Western, mainly American, and Japanese cultures.
In some instances, the subject of corporate culture has assumed faddish proportions in
management literature and it is occasionally put forward as the answer to all change management
and organisational development woes.
An issue facing managers and organisations is how to manage massive change. As change is
inevitable, the challenge of managers is to:
Companies with outstanding financial performance often have powerful corporate cultures.
Culture is often the key to an organisation’s success. Cultural change does not just happen in an
organisation. It is usually the result of a complex change strategy.
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Schein (190:111) provides one of the most widely quoted definitions of organisation culture as
“(a) a pattern of basic assumptions, (b) invented, discovered, or developed by a given group, (c)
as it learns to cope with its problems of external adaptation and internal integration, (d) that has
worked well enough to be considered valid and, therefore (e) is to be taught to new members as
the (f) correct way to perceive, think, and feel in relation to those problems.”
Another useful definition has been that of Lundberg, who is quoted by Coetsee (2000:41).
Lundberg has painstakingly constructed a combination of the major themes that are contained in
numerous definitions and has put forward a possible consensus reflection of Organisational
Culture:
“It is a shared, common frame of reference, i.e., it is largely taken for granted and is shared
by a significant portion of organisation members
it is acquired and governs, i.e., it is socially learned and transmitted by members and
provides them with rules for their organisational behaviour
it endures over time, i.e., it can be found in any fairly stable social unit of any size, as long as
it has a reasonable history
it is symbolic, i.e., it is manifested in observable things such as language, behaviour, and
things to which we attribute meanings
it is at its core typically invisible and determinant, i.e., it is ultimately comprised of a
configuration of deeply buried values and assumptions
it is modifiable, but not easily so.”
Given an environment of rapid change, a static organisational culture can no longer be effective.
A culture is a system of shared values (what is important); beliefs (how things work); and,
behavioural norms (how things are done here). Culture is derived from two subsystems,
managerial and organisational. (See Figure 3.1)
Figure 3.1 Culture Formation
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Managerial:
Through their actions and words, management defines a philosophy of how employees are
treated. A vision is usually articulated by top management.
Organisational
Factors brought in by the organisation also help define the culture. The technology that a
company utilises will influence the culture. Job descriptions and the structure of an organisation
(tall versus flat) influence the culture’s development.
High-performing companies have strong cultures. Many corporate cultures fail to adapt to
change and therefore fail as economic entities. Following corporate mergers, cultures often clash
(example Daimler-Benz and Chrysler).
Changing a culture is not easy. Time is required because culture comes from shared behaviours
and working relationships. A culture can prevent a company from adapting to a changing
environment (for example Levi Strauss & Co.). Some things bringing pressure on companies to
be adaptable:
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Recession
Deregulation
Technological upheavals
Social factors
Global competition
Outsourcing
Markets (Brown 2011: 87-88)
a) Information
Provide people with information or the ability to gather information. One method of
providing information is open-book management.
Key information is given to employees so that work teams can make job decisions
Employees learn to understand accounting and financial statements and use that
knowledge in their work and planning
b) Support
If the project will cut across organisational lines, support and collaboration from other
departments is needed. Higher management’s support is required to provide a climate that
supports people in taking risks.
c) Resources
Include funds, staff, equipment, and materials, to carry out the project. Some companies have
innovative programmes for providing resources including:
Skunk works
Venture capital
Innovation banks
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Change dos not take place quickly in a strongly established culture. Some of the key factors in
changing an ingrained culture are shown in Table 3.1.
i) Managerial effectiveness
Accomplishment of specific organisational goals and objectives
Doing the right thing
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OD implementation issues
The success of an OD programme is largely dependent upon the fit between OD values and
the organisation’s values. A key issue to resolve between the practitioner and the client is the
value orientations, including beliefs about people, methods used to reach change, and the
purpose of the change programme.
Compatibility of values
This refers to the degree to which the practitioner’s personal values are congruent with those
of the client. Some OD practitioners believe that their personal values should be compatible
to those of the client. Others believe that as long as the organisation’s operations are legal,
they have no problem in helping the client. Some practitioners offer assistance only to those
clients who can pay, while others help a client regardless of the ability to pay.
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Imposed change
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ACTIVITY
1. Describe and compare the corporate cultures of organisations you have worked in. What
makes one more effective than another?
2. Compare and contrast managerial efficiency and effectiveness.
3. Identify the key factors in cultural change.
4. Explain the role of tools for change in an OD programme
CHAPTER SUMMARY
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RESPONSE TO ACTIVITY
1. Describe and compare the corporate cultures of organisations you have worked in. What
makes one more effective than another?
Answer: Answers are dependent upon student’s experiences.
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? THINK POINT
Read the case study on Page 74 and 75 of the text and reflect on the following:
Is it reasonable to expect other companies to be abl to duplicate cultures of other organiztions?
Support your position. Can culture be bought? At what price?
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CHAPTER 4
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LEARNING OUTCOMES
INTRODUCTION
This chapter focuses on the role of the OD practitioner, OD practitioner styles and the
intervention process during planned change. OD practitioner skills and activities are discussed
with a discussion of the practitioner-client relationship building process.
In this section we focus on the person or persons who have the responsibility to lead the change
initiative in an organisation. For emphasis, we ask the question, “Who leads change in an
organisation?” The answer is simple: the change agent. In every large-scale planned change
programme, some person or group of persons is usually designated to lead the change. The
change agent is known by various terms such as the OD practitioner, the change specialist, the
change management consultant (Brown, 2011; Mourier & Smith, 2003).
With regard to the role of the change agent, the question that arises is “does the organisation
utilise an internal or external change agent?” Each situation is unique but a decision has to be
carefully made as to whether to make use of an internal change agent, external change agent or a
combination of the two. Clearly, not everyone can become a change agent. The change agent
requires certain skills in addition to some knowledge base, to carry out his task. At the disposal
of the change agent are a range of styles that he/she can adopt in effecting change. These are
discussed below.
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They are initiated with a specific purpose and require leadership to function properly.
The OD practitioner must deal proactively with these changing competitive forces.
Everyone in the organisation plays a crucial part in effective change programmes.
There are two types of change that may take place in an organisation: One type is random or
haphazard change:
The second type of change results from deliberate attempts to modify organisational operations.
In every large-scale planned change programme, some person or group is usually designated to
lead the change. The practitioner may be internal or external:
External practitioner
ii) Advantages:
Sees things from a different viewpoint and from a position of objectivity
Does not depend upon the organisation for raises, approval, or promotions
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iii) Disadvantages:
Internal practitioner
Already a member of the organisation who can be: A top executive, an organisation member
who initiates change in his or her work group or a member of the human resources or
organisation development department.
Advantages:
Familiar with the organisation’s culture and norms
Need not waste time becoming familiar with the system
Knows the power structure and who are the strategic people
Has a personal interest in seeing the organisation succeed
Disadvantages
May have a lack of the specialised skills needed for OD
Lack of objectivity
May be more likely to accept the organisational system as a given
Other employees may not understand the practitioner’s role
Other employees may be influenced by the practitioner’s previous work and
relationships in the organisation
May not have the necessary power and authority
(Brown 2011: 109-110)
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A team formed of an external practitioner working directly with an internal practitioner to initiate
and facilitate change programmes. Probably the most effective approach. Partners bring
complementary resources to the team.
The team tends to combine the advantages of both external and internal practitioners while
minimizing the disadvantages.
OD practitioner styles
Internal or external practitioners have a variety of styles or approaches. One way to view styles is
the degree of emphasis placed upon two dimensions:
Based upon the two dimensions of accomplishing goals and member satisfaction, five different
types of practitioner styles or roles can be identified. (see Figure 4.1)
Stabiliser style - maintains a low profile and it tries to survive by following directives
of top management
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The OD process involves a collaborative relationship between a practitioner and a client system.
OD practitioners perform a set of functions which include:
The practitioner needs to wait until key personnel decide whether change is really needed. Four
questions for the practitioner to answer before going further:
Are the learning goals of OD appropriate?
Is the cultural state of the client system ready for organisation development?
Are the key people involved?
Are members of the client system prepared and oriented to organisation
development?
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The intervention
Intervention refers to a coming between members or groups of an organisation for the purpose of
effecting change. It refers to planned activities participated in by both the practitioner and the
client. Interventions occur throughout the OD programme but here we are concerned with the
practitioner’s initial contact with the client system. The external practitioner generally intervenes
through a top manager (Brown 2011: 112-113).
Who the client is becomes more complex as the practitioner intervenes into more segments of the
organisation. The client may be the organisation, certain divisions, or an individual who
contracted for the services.
Operates on the belief that the team is the basic building block of an organisation. It is concerned
with how processes such as communications and leadership occur in an organisation. Operates
on the notion that assisting the client instead of taking control will lead to a more lasting solution
of the client’s problems.
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There are six key skill areas that are critical to the success of the practitioner. (See Figure 4.2)
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Initial perceptions
The initial intervention is similar to a reconnaissance on the part of both the client and
practitioner where both are evaluating each other. First impressions are important, as they tend to
set the climate for the future. Developing a relationship based on mutual trust and openness is
important.
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Figure 4.4
Perception Formation and its Effect on Relationships
(Brown 2011:118)
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This is a process whereby individuals give meaning to the environment by interpreting and
organizing sensory impressions. People behave on the basis of what is perceived versus what
really is.
Perception
The process individuals use to interpret and organize sensory impressions. What one perceives
can be substantially different from reality.
Selective perception
The selectivity of information that is perceived. The process in which people tend to ignore some
information that is in conflict with their values and to accept other information that is in accord
with their values.
Closure
The tendency of the individual to fill in missing information in order to complete the perception.
A person perceives more to the situation than is really there. Dilemma interactions that occur
include:
Questions about client’s definition of the problem
Client’s awareness of the need for change
Client’ unrealistic expectations
Client’s misuse of power
Value differences between client and practitioner
(Brown 2011: 119-121)
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The practitioner brings certain knowledge, skills, values, and experience to the situation. The
client system has its own subculture and level of readiness for change. Together these determine
the practitioner’s style and approaches.
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Apathetic - keeps quiet about true ideas with practitioner, why bother because it
won’t matter, skeptical about change.
Gamesmanship - keeps quiet about true ideas with practitioner, manipulates strategic
factors to gain.
Charismatic - view of the changes are taken from cues from leaders.
Consensus - both client and practitioner share perceptions openly. The OD
programme is seen by the client as consistent with their way of operating. Differences
are worked through. The OD practitioner attempts to operate from this mode.
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Some critical warning signals for the practitioner to consider are the following:
ACTIVITY
1. What are the pros and cons of external and internal practitioners? Why is
the team approach a viable alternative?
2. Compare and contrast five basic practitioner styles.
3. Why is it important for an organisation to be ready for an OD programme?
4. Identify the basic problems in the practitioneer-client relationship.
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RESPONSE TO ACTIVITY
1. What are the pros and cons of external and internal practitioners? Why is the team approach a viable
alternative?
Answer: External practitioners may be more objective, but have less understanding of the organisation;
internal practitioners may be afraid for their jobs and too close to situation, but more aware of problems,
familiar with the organisation (structure, power networks, nature of business, etc.). Team approach
allows for benefits of each and may help cancel out negatives. Permits sharing of different points of view.
Answer:
Stabiliser: low emphasis on effectiveness, low on morale.
Cheerleader: high emphasis on morale, low on effectiveness.
Analyser: high emphasis on effectiveness, low on morale.
Persuader: moderate emphasis on both effectiveness and morale.
Pathfinder: high emphasis on both effectiveness and morale.
Answer: Just because an organisation is in need of an OD program does not mean that it is receptive to
one. Without readiness, few changes can take place and be effective or lasting. Rather than impose
organisation development upon an organisation, the practitioner needs to wait until key personnel decide
whether change is really needed. The motivation for a change program is then built in, not artificially contrived.
Answer: The client may not be committed to change. Commitment may be based on words and not behaviours.
The client may not have the leverage or power to influence change. The client may use the practitioner in a
power struggle with other elements of the organisation or as a means to gain information about others in the
organisation.
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ACTIVITY
Think of your own organisation or an organisation with which you are familiar that has recently
undergone major changes. List the changes and the probable sources of the change.
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CHAPTER FIVE
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Learning Outcomes
Identify system parameters and recognize the symptoms, problems, and causes of
organisational ineffectiveness
Recognise the various techniques for gathering information from client systems
Describe the major diagnostic models and techniques used in OD programmes
Apply a systematic diagnosis to organisational situations
READING
Brown (2011), pages 136 to 162, on “The Diagnostic Process”, focusing on:
• What is organisational diagnosis?
• The importance of organisational diagnosis
• The Diagnostic Process
• Diagnostic Models
• Organisational Subsystems
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Introduction
A medical practitioner would not prescribe a course of treatment for a physical ailment without
first doing some form of diagnosis. Similarly, the change management agent would not
undertake a change intervention of any kind on an organisation without carrying out a
comprehensive organisational diagnosis in the first instance. Undertaking a change initiative
without carrying out a diagnosis of the organisation would substantially increase the risk of
failure of the change initiative. The identification of areas for improvement and problems is an
important element in developing a high-performance organisation (Brown, 2011:136).
It becomes obvious, then, that a thorough scientific organisation diagnosis has many advantages.
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providing organisation members with an occasion to bring their ideas and feelings to the
attention of top management in a material and objective way
leading members to become involved in problem identification and problem- solving, thus
encouraging participation, and a sense of ownership, possession and commitment
? THINK POINT
Describe the potential risks or pitfalls of effecting change before an organisational diagnosis has
been conducted.
Diagnosis has been described by French and Bell as “. . . a continuous collection of data about
the total system or its sub-units, and about system processes, culture and other targets of interest”
(Coetsee, 2000: 87). Beer (1993), on the other hand sees diagnosis as a method of analysing
organisational problems and learning new patterns of behaviour. Brown (2011;137) define
diagnosis as “a systematic approach to understanding and describing the present state of the
organisation”. These are essentially three different views of the same thing, making the term
organisational diagnosis much clearer.
The main aim of diagnosis in studying the organisation is to ascertain what the problem areas or
weaknesses are. This helps to isolate the gap between the organisation’s current situation and its
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desired future state. Diagnosis identifies the strengths, opportunities and problem areas in an
organisation. What are the organisation’s strengths? What are its problem areas? What are the
opportunities open to an organisation? A SWOT analysis will provide answers to these
questions. This analysis forms the foundation for conclusions regarding specific interventions
and action plans.
The diagnostic phase of change management is mainly a data gathering or research activity
aimed at producing useful information upon which subsequent intervention decisions can be
based. It is important, therefore, that the normal rules with respect to the validity, reliability and
consistency of scientific data gathering and data treatment are applied. In other words, the
information-gathering instrument used must accurately measure the factor that it is supposed to
measure (validity), it must measure it every time it occurs (reliability), and it must accurately
reflect multiple occurrences of the factor concerned (consistency).
Having employed scientific methods to gather the data and satisfied the requirements of the
scientific method in its treatment, the researcher will be much better placed in terms of how the
data are to be used for analysis, interpretation and reporting, both at the commencement of the
intervention and then again upon its completion. Particular attention must be given to the
interpretation of data as the same data may be open to different and sometimes contradictory
interpretation. If the correct data has been collected but interpretation is incorrect, then this may
defeat the whole purpose of the diagnosis.
? THINK POINT
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The diagnostic process is a cyclical process that involves data gathering, interpretations,
identification of problem areas and possible action programmes (Brown, 2006:139).
Figure 5:1 The diagnostic process
1.Tentative
Problem Areas
Identified
8. Diagnosis. Work on
problem causes. Result
is change.
9. Results monitored
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This refers to the difference between what the organisation could do and what the organisation is
actually doing. (See Figure 5.2)
Organisation’s strengths.
What can be done to take advantage of strengths.
Organisation’s weaknesses.
What can be done to alleviate weaknesses? (Brown 2011: 139-140)
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Diagnostic Models
Brown (2011: 147-149) set out the salient features of six different diagnostic models in terms of
which organisational functioning is theoretically explained. These models are the Analytical
Model, the Emergent-Group Behaviour Model, the Management Practitioner Model, The
Sociotechnical Systems Model, the Cause Maps and Social Network Analysis Model and the
Force-Field Analysis Model. Five of these models will be described briefly:
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c) The Management Practitioner Model analyses six basic areas - basic planning, general
business practices of the company, advertising and promotion, market research and the personnel
of the organisation.
e) Cause Maps and Social Network Analysis Model - Cause maps are mathematical
representations of perceived causal relationships between variables. The social network analysis
is also based on mathematical representation of the relations between individuals or work groups.
Analysis of the causal makeup of the organisation and the specific interdepartmental
relationships provide knowledge about key interdependencies.
Organisational Subsystems
The following two tables from the work of French and Bell (1995) are included with a view to
illustrating both the organisation subsystems (Table 5.1) and the organisation processes that
often form the units of analysis in a diagnostic exercise (Coetsee, 2000: 97-103). In practice the
consultant would work from both tables simultaneously in an effort to diagnose an organisation,
its processes, and its sub-units concurrently.
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TABLE 5.1
Diagnosing Organisational Subsystems
(With acknowledgements to French & Bell, 1995).
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Small, total Example would be a local professional organisation How the officers and the members see the Questionnaires or interviews are frequently used.
organisations that or small company. Typical problems as seen by organisation & its goals. What do they like and Descriptive adjective questionnaires can be used to
are relatively officers might be declining membership, low dislike about it? What do they want it to be like? obtain a quick reading on the culture, “tone,” &
simple and attendance, difficulty in manning special task forces, What is the competition like? What significant health of the organisation. Diagnostic group
homogeneous or poor quality and declining profits. external focus is impacting on the organisation? meetings can be useful. Organisational records can
be examined.
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DIAGNOSTIC EXPLANATION AND IDENTIFYING TYPICAL INFORMATION SOUGHT COMMON METHODS OF DIAGNOSIS
FOCUS OR EXAMPLES
TARGET
Interface or inter This concept of subsets of the total system, such as a How does each subsystem see the other? What Confrontation meetings between both groups are
group subsystems matrix organisational structure, requires an problems do the two groups have in working often the method for data gathering and planning
individual or a group to have two reporting lines. together? In what ways do the subsystems get in corrective actions. Organisation mirroring meetings
But more often this target consists of members of each other’s way? How can they collaborate to are used when three or more groups are involved.
one subsystem having common problems and improve the performance of both groups? Are goals, Interviews of each subsystem followed by a “sharing
responsibilities with members of another subsystem. subgoals, areas of authority & responsibility clear? the data” meeting or observation of interactions can
We mean to include subsystems with common What is the nature of the climate between the be used.
problems & responsibilities such as production & groups? What do the members want it to be?
maintenance overlaps, marketing and production
overlaps.
Dyads and / or Superior/subordinate pairs, interdependent peers, What is the quality of the relationship? Do the Separate interviews followed by a meeting of the
triads linking pins - i.e. persons who have multiple group parties have the necessary skills for task parties to view any discrepancies in the interview
membership - all these are subsystems worthy of accomplishment? Are they effective as a data are often used. Checking their perceptions of
analysis. subsystem? Does the addition of a third party each other through confrontation situations may be
facilitate or inhibit their progress? Are they useful. Observation is an important way to assess
supportive of each other? the dynamic quality of the interaction.
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Roles A role is a set of behaviours enacted by a person as a Should the role behaviours be added to, subtracted Usually information comes from observations,
result of occupying a certain position within the from, or changed? Is the role defined adequately? interviews, role analysis technique, a team approach
organisation. All persons in the organisation have What is the “fit” between the person and the role? to “management by objectives.” Career planning
roles requiring certain behaviours, such as Should the role performer be given special skills and activities yield this information as output.
secretaries, production supervisors, accountants, knowledge? Is this the right person for this role?
scientists, custodians.
Between An example might be the system of law and order in How do key people in one segment of the Organisational mirroring, or developing lists of how
organisation a region, including local, county, state, federal police suprasystem view the whole and the subparts? Are each group sees each other, is a common method of
systems or investigative and enforcement agencies, courts, there fractions or incongruities between subparts? joint diagnosis. Questionnaires and interviews are
constituting a prisons, parole agencies, prosecuting officers and Are there high-performing and low- performing sub- useful in extensive long-term interventions.
suprasystem - this grand juries. Most such suprasystems are so units? Why?
is the area of trans- complex that change efforts tend to focus on a pair
organisational or trio of subparts.
O.D.
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TABLE 5.2
Diagnosing Organisational Processes
(With acknowledgements to French & Bell, 1995).
ORGANISATION IDENTIFYING REMARKS AND TYPICAL INFORMATION SOUGHT COMMON METHODS OF DIAGNOSIS
PROCESS EXPLANATIONS
Communication Who talks to whom, for how long, about what? Is communication directed upward, downward or Observations, especially in meetings;
patterns, styles and Who initiates the interaction? Is it two-way or one- both? Are communications filtered? Why? In what questionnaires for large-sized samples; interviews
flows way? Is it top-down, or down-up or lateral? way? Do communications patterns “fit” the nature and discussions with group members. All these
of the jobs to be accomplished? What is the methods may be used to collect the desired
“climate” of communications? What is the place of information. Analysis of videotaped sessions by
written communications vs. oral? all concerned is especially useful.
Goal setting Setting task objectives and determining criteria to Do they set goals? How is this done? Who Questionnaires, interviews, & observation all
measure accomplishment of the objectives takes participates? Do they possess the necessary skills afford ways of assessing the goal-setting ability of
place at all organisational levels. for effective goal setting? Are they able to set long- individuals and groups within the organisation.
range and short-range objectives?
Decision making, Evaluating alternatives and choosing a plan of action Who makes decisions? Are they effective? Are all Observation of problem-solving meetings at
problem solving, and are integral and central functions for most available sources utilised? Are additional decision various organisational levels is particularly
action planning organisation members. This includes getting the making skills needed? Are additional problem- valuable in diagnosing this process. Analysis of
necessary information, establishing priorities, solving skills needed? Are organisation members videotaped sessions by all concerned is especially
evaluating alternatives, and choosing one alternative satisfied with the problem-solving and decision useful.
over all others. making processes?
Conflict resolution and Conflict: interpersonal, intrapersonal, and intergroup Where does conflict exist? Who are the involved Interviews, third-party observations, and
management frequently exists in organisations. Does the parties? How is it being managed? What are the observation meetings are common methods for
organisation have effective ways of dealing with system norms for dealing with conflict? Does the diagnosing these processes.
conflict? reward system promote conflict?
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ORGANISATION IDENTIFYING REMARKS AND TYPICAL INFORMATION SOUGHT COMMON METHODS OF DIAGNOSIS
PROCESS EXPLANATIONS
Managing interface Interfaces represent those situations where two or What is the nature of the relations between two Interviews, third-party observations, and
relations more groups (subsystems) face common problems or groups? Are goals clear? Is responsibility clear? observation of group meetings are common
overlapping responsibility. This is most often seen What major problems do the two groups face? What methods for diagnosing these processes.
where members of two separate groups are structural conditions promote/inhibit effective
interdependently related in achieving an objective interface management?
but have separate accountability.
Superior - subordinate Formal hierarchical relations in organisations dictate What are the leadership styles? What problems arise Questionnaires can show overall leadership
relations that some people lead and others follow: these between superiors and subordinates? climate and norms. Interviews and questionnaires
situations are often a source of many organisational reveal the desired leadership behaviours.
problems.
Technological and All organisations rely on multiple technologies - for Are the technologies adequate for satisfactory Generally, this is not an area of expertise of the
engineering systems production and operations, for information performance? What is the state of the art and how O.D. consultant. He or she must then seek help
processing, for planning, for marketing, etc., to does this organisation’s technology compare with from “experts” either inside the organisation or
produce goods and services. that? Should any changes in technology be planned outside. Interviews and group discussions
and implemented? focused on technology are among the best ways to
determine the adequacy of technological systems.
Sometimes outside experts conduct an audit and
make recommendations, sometimes inside experts
do so.
Strategic management Monitoring the environment, adding and deleting Who is responsible for “looking ahead” and for Interviews of key policy-makers, group
and long-range “products,” predicting future events, and making making long-range decisions? Do they have discussions, and examination of historical records
planning. decisions that affect the long term viability of the adequate tools and support? Have recent long-range give insights into this dimension.
Vision/Mission organisation must occur for the organisation to decisions been effective? What is the nature of
formulation remain competitive and effective. Vision and current and future environmental demands? What
mission establish the framework for strategy. are the unique strengths and competencies of the
organisation? Is mission clear? Widely shared?
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ORGANISATION IDENTIFYING REMARKS AND TYPICAL INFORMATION SOUGHT COMMON METHODS OF DIAGNOSIS
PROCESS EXPLANATIONS
Organisational Learning from the past successes and failures, from What are our strengths, problem areas? What Interviews, questionnaires, group methods of
learning present “blind spots” and from all organisational observations, ideas, suggestions are available from diagnosis, examination of assumptions and culture
members is essential to remain competitive, vital, all organisational members? Does our present (Schein b), games and exercises to create
and to develop new paradigms. behaviour square with what we espouse? What are awareness of organisational learning disabilities,
the “learning disabilities” (Senge a) of this examination of defensive routines (Argyris c,
organisation? Are the present paradigms changing? Senge d), visioning, including environment
What will the new paradigms be like? Are we analysis.
recording our philosophy, our learning, our
progress?
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ACTIVITY
Discuss the key issues that a change agent looks for in an organisation during an organisational
diagnosis.
ACTIVITY
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Answer: A method in the diagnostic process to determine the difference between what the
organisation could do by virtue of its opportunities and what it actually does. Data are collected
on the actual state of the organisation on a varying set of dimensions and also on the ideal or
desired state. The difference is the gap which may be the result of ineffective performance from
within the organisation or because of competitive changes. A performance gap may also occur
when the organisation fails to adapt to changes in its external environment.
2. Compare and contrast the interview and survey methods of data collection.
Answer: Interviews are more personal, surveys are less so; interviews allow for more feedback,
surveys more objective. Surveys are used to gather a large number of quantitative responses. The
data generated from surveys tend to be impersonal and anonymous and often lack feeling and
richness, but this method easily lends itself to quantitative analysis. The survey may lead the
practitioner to problem areas which can be investigated more deeply through an interview.
Interviews are more direct, personal, and flexible than surveys and are very well suited for
studies of interaction and behaviour. Interviews are flexible and can be used in many different
situations. Interviewing also provides two-way communication.
3. List some possible types of organisation data that you might find in your own organisation
or college that could be used in planning an OD programme.
Answer: Pay policies, promotion possibilities, work environment, group interactions. There are
many possible correct answers depending on the organisation.
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Answer: The symptom is the manifestation of some underlying problem. Cause is the reason for
the problem. The client is often aware of the evidence of the symptoms of a problem, such as
declining sales or high turnover. Through data collection and analysis the practitioner tries to
identify what factors are causing the problem, and therefore what needs to be changed to fix it.
Answer: It is a diagnostic technique that views organisation behaviour as a balance of forces that
push for and restrain change. Restraining forces act on the organisation to keep it stable and
driving forces put pressure on the organisation to change. If the forces for change and the forces
against change are equal, the result is equilibrium and the organisation remains stable. Change
takes place when there is an imbalance between the two types forces and continues until the
opposing forces are brought back into equilibrium.
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CHAPTER SIX
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LEARNING OUTCOMES
By the end of this section you should be able to:
Demonstrate knowledge of the importance of being able to manage the resistance to change
Explain the life-cycle of resistance to change
Describe and apply the specific phases of a selected resistance to change model, viz.:
- denial
- resistance
- exploration
- commitment
Name the different strategies to counter resistance at each phase and their implications
READING
Brown (2011), pages 164 to 189, “Overcoming Resistance to Change” focusing on:
• What is resistance to change?
• The life cycle of resistance to change
• Forces blocking implementation of change programmes
• The restraining forces
• Strategies to reduce resistance
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Introduction
The most serious challenges to improving programmes all have the same focus: people.
Managers developing and implementing programmes to keep today’s organisations competitive
in a tough, constantly changing environment must deal with resistance to change (Brown,
2011:164). However, the question to be answered is, “What is resistance to change?”. Resistance
to change is a fact of human nature. Robbins and Finley (1998: 102) describe it as an ancient
pattern which broadly models the following steps:
It does not necessarily always happen this way. The raffle winner of a R500 000 car, for
instance, is not likely to decline his prize because he cannot handle the anxiety that his car will
bring. Similarly, an increase in salary or a promotion is more likely to generate a positive
reaction in most workers. It is when a negative consequence to the change, or the continued
uncertainty surrounding a change, is perceived that resistance is encountered.
Faced with continuing economic pressures and increasing competition, many other organisations
are being forced to radically change and reinvent their processes. Organisations face a major
challenge in managing change effectively. Organisations must have the capacity to adapt quickly
in order to survive. People are the focus of some of the most serious challenges. When the
changes are on a large scale and involve many individuals and subunits, there are often
significant problems and challenges.
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On an organisational level, change means that the following will no longer be the same:
Policies
Procedures
Organisation structures
Manufacturing processes
Work flows (Brown 2011:164-165)
Resistance has a number of possible causes. Eccles (1994: 67) has summarised the following
and stressed that any management contemplating change could prudently spend some time up
front, researching the most likely causes and identifying strategies to tackle and deflate them.
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Several authors have adopted the approach set out by Brown (2011:165-166) which looks at
resistance to change as going through some sort of life cycle: from outright resistance, through
partial resistance, to partial acceptance, and, finally, to complete acceptance. The response to
change tends to move through a life cycle.
Phase 1
There are only a few people who see the need for change and take the reform
seriously.
Resistance appears massive.
Phase 2
The forces for and against the change become identifiable.
The change is more thoroughly understood.
The novelty and strangeness of the change tends to disappear.
Phase 3
There is a direct conflict and a showdown between the forces for and against
This phase will probably mean life or death to the change effort.
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Phase 4
If the supporters of the change are in power, the remaining resistance is seen as
stubborn and a nuisance.
There is still a possibility that the resisters will socialise enough support to shift the
balance of power.
Phase 5
The resisters to the change are as few and as alienated as were the advocates in the
first phase.
(Brown 2011:165-166)
Scott and Jaffe (1989: 24-30) take the view that change involves elements of both danger and
opportunity. When people approach a change their first response is usually to see it as a threat or
danger. Once the change occurs it is not unusual for those affected to start getting used to it and
to begin to see new opportunities and possibilities. These two broad stages of danger and
opportunity can be subdivided into the phases shown below:
Most people move through these four phases in every major transition. Some may go through
quite quickly while others may get bogged down in one or more phases. Effective leadership is
required to get people to move smoothly through the various phases from denial to commitment.
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DENIAL COMMITMENT
RESISTANCE EXPLORATION
Change in an organisation will transport the team through the four phases illustrated in Figure
6.2. Think of the process as descending into a valley and then climbing back out again on the
other side. The transition leads away from the familiar ways of doing things to the unfamiliar and
new ways. During this process, people will focus on the past and deny the change. Next they will
all go through a period of preoccupation and wondering how it will affect them and where they
stand. This is when resistance usually occurs. As they enter the exploration stage, they start to
look toward the future and, finally, the opportunities that may be available, before finally moving
into the commitment stage.
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? THINK POINT
Resistance is based on people’s perceptions, which are coloured by their experience and
knowledge, insight and emotional maturity, and, finally, the extent of their flexibility or
obduracy. The link with organisation climate should, therefore, be immediately apparent to you.
Therefore people’s resistance is more the result of their perceptions of the psychological and
social consequences of change. It is important to distinguish between rationalisations and
misinterpretations and the possible deeper levels of reasons for resistance.
Managing the different stages of change will call for different strategies. During any particular
period of the change process different people may well be working their individual ways through
different phases. This means that different people may be in different phases at any one time and
management will then need to employ a situational approach to guiding organisation members
through the total change process. Recognising and diagnosing each phase then assumes critical
importance so that the necessary management strategy can be applied (Scott & Jaffe, 1989: 24-
30).
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ACTIVITY
1. Outline the differences between process and content? How do these differences relate to
process consultation?
2. Process consultation skills also make up core managerial and leadership skills, and they are
skills that are of material worth in everyday interpersonal relationships.
Do you agree with this statement? Explain.
LEADING CHANGE
The major factors affecting the success of change include advocates of change, degree of change,
time frame, impact on culture, and evaluation of change. (See Figure 6.1)
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Advocates of change
The person spearheading a change programme is often the most important force for
change.
An internal or external OD practitioner may be brought in to assist in the change project.
Degree of change
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Time frame
Usually, the more gradual the change and the longer the time frame, the greater the
chance of success.
Some organisations have become so ineffective that any chance they have for survival
depends on radical change introduced swiftly.
Impact on culture
The greater the impact on the existing culture, the greater the amount of resistance
that is likely to emerge and the more difficult it will be to implement the change.
Evaluation on change
Standards of performance are developed to measure the degree of change and its
impact on the organisation.
(Brown 2011:168-169)
A CHANGE MODEL
Two major considerations in organisational change are the degree of change and the impact on
the organisation’s culture. (See Figure 6.2)
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When the change is minor and the impact on the culture is small, resistance will be at
the lowest level and success will be most probable.
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When the change is minor but the impact on the culture is high, some resistance can
be expected.
When the change is major, but the impact on existing culture is minor, some
resistance is likely.
Good management can probably overcome it.
When the change is large and the impact on the existing culture is high, the greatest
resistance can be predicted.
The probability of success is low.
(Brown 2011:168-169)
Driving forces are anything that increases the inclination of an organisation to implement a
proposed change programme.
The more intense the dissatisfaction with the present situation, the greater the
motivation to change.
Sometimes an organisation and its members are not aware of the need to change and
in other organisations the need to change may be more obvious.
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When a change programme is under way, certain forces tend to push it along.
Those involved in orchestrating the change will probably become committed to the
programme.
When an organisation has committed money to start a change programme, it likely
will want to continue in order to get its money’s worth.
Once change has begun in one part of an organisation, it may set off a chain reaction
in other parts of the organisation.
Motivation by management
Implementation of any OD change programme needs to take account of the restraining forces of
change.
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Disruption of routine
Threat to security
There may be concern about vested interests, such as loss of the job or reduced wages
or benefits.
People tend to resist change that threatens the security of their environment.
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Redistribution of power
Effective change programmes try to increase the driving forces toward acceptance of
change and simultaneously to decrease the restraining forces blocking the change.
The force-field analysis model (discussed in Chapter 5) provides a useful way to view
the driving and restraining forces.
(Brown 2011:173-174)
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Create a vision
The CEO can create a strong sense of vision.
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Power strategies
OD practitioners have historically been reluctant to deal with the use of power in
organisations.
But most organisations operate within a power structure and it may be necessary to
use it to persuade members of an OD programme’s worthiness.
(Brown 2011:178-179)
ACTIVITY
SOLUTIONS TO ACTIVITY
Answer: The answer will vary depending on the example chosen but it will generally follow the
five phases discussed in the text.
Answer: Forces can be driving and restraining. Driving forces are anything that increase the
inclination of the client system to implement the proposed change programme. Restraining
forces hinder the development of the change programme.
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CHAPTER SEVEN
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LEARNING OUTCOMES
Understand and apply the key OD process skills and determine how they can be applied.
Practice using OD process skills.
Identify and gain insights into your own OD style.
A change is occurring in leadership style that has come about largely because of the increasing
importance of teams in today’s organisation. Organisations are relying increasingly on the team
approach to managing. Major changes of managing have been thrust upon both lower and middle
managers. They will need new skills in performance management and work redesign. Also, new
skills will be required to serve as a coach where the managers support and nurture employees.
An understanding of group and team behaviour is needed.
PROCESS INTERVENTIONS
Process intervention is an OD practitioner skill for helping work groups become more effective.
Process activities help the work group or client to perceive, understand, and become more aware
of the way it operates and the way its members work with one another. The manager practising
process interventions observes individuals and teams in action and helps them learn to diagnose
and solve their own problems. The managers ask questions, focus the team’s attention on how it
is working together, teaches or provides resources where necessary, and listen. Teams become
more independent and do not have to look to the manager to solve problems.
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GROUP PROCESS
Process interventions concentrate on how groups and individuals within those groups behave.
Process is the how of the group. Content is the what of the group. Five areas crucial to effective
organisation performance are communication, member roles and functions in groups, group
problem-solving and decision-making, group norms and growth, and leadership and authority.
(See Figure 7.1)
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Communications
This refers to analyzing the communications process within a group. Examples include observing
frequency and length of time each member talks, who talks to whom, and who interrupts whom
(Brown 2011:220-221)
This involves observing the roles and functions that members have assumed. Roles can be
divided into three categories. (See Table 7.1)
Group tasks - member behaviours that directly help the group solve its task such as
seeking and giving opinions, asking questions, and summarising.
Group building and maintenance - behaviours that help the group grow and improve its
members’ interpersonal relationships such as harmonizing, encouraging, and
compromising.
Individual functions - behaviours that satisfy individual needs and are inconsequential to
the group’s task and maintenance (Brown 2011: 222-223).
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This involves helping the group understand how it makes decisions and the consequences of each
method of decision-making. A decision made by group consensus is one that all the members
have shared in making and one they will support and buy into even though they may not be
totally supportive.
These assist the group in understanding its norms and how the norms affect decision making.
The group will improve its decision-making process as members grow and become more
supportive of one another.
The group better understands the impact of leadership styles and authority.
The roles of formal and informal leaders are clarified and developed.
Leadership functions are shared among the work group members.
Process interventions differ in many ways, but they never involve the group’s task. The concern
is how the group is going about accomplishing its task. Process interventions include clarifying,
summarising, synthesising, generalising, probing, questioning, listening, reflecting feelings,
providing support, coaching, counselling, modelling, setting the agenda, feeding back
observations, and providing structural suggestions.
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Listening
Communicates nonverbally that one is listening through eye contact, nods of the
head, and body posture.
Hears the entire message including feelings.
Examples: eye contact, nod of the head, body posture.
Reflecting feelings
Communicates back to the speaker the “feeling part” of the message that has been
heard.
The listener practices empathy.
Reflecting feelings refers to communicating back to the speaker the “feeling part” of
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Modelling
Refers to learning to give process observations by observing someone else making
process observations.
Members are encouraged to take over the role of providing process interventions.
Structural suggestions
Provides suggestions pertaining to group membership, communication patterns,
allocation of work, and lines of authority.
The manager avoids stepping in and taking over.
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ACTIVITY
SOLUTIONS TO ACTIVITY
Answer: Process interventions can help a group look at how it is solving its problems and
making decisions. The objective is for the group to become more effective. The OD practitioner
can use process interventions such as feeding back observations, coaching, clarifying,
summarising, synthesising, probing, questioning, listening, reflecting feelings, providing support,
counselling, modelling appropriate behaviour, setting the agenda, and making structural
suggestions
2.What is the difference between group task functions and group maintenance functions?
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Answer: Members of existing groups take on roles that can be categorised as group task
functions and group maintenance functions. Group task functions include member behaviours
that directly help the group solve its task. These behaviours include initiating and suggesting
what is the goal of the group, how the group can proceed to accomplish its goal, seeking
opinions and information, giving opinions and information, asking questions of clarification,
summarising, and testing for group consensus. Group maintenance functions include behaviours
that help the group grow and improve its members’ interpersonal relationships. Maintenance
functions also include harmonising, compromising, and encouraging behaviours.
3. Identify and explain the communication processes that a manager can use in a work group.
Answer: The communication process largely follows process interventions. The manager can make
statements that clarify what a person has said and summarise the group’s position. When the team needs
to explore additional ideas, the manager may seek more information and ask questions. At times it may
help to pull several ideas together. The manager can reflect back what a speaker has said from both a
content and feeling point of view. The manager can practice empathy by trying to see the world from the
speaker’s point of view. The manager can often communicate best by encouraging others to talk and
express their ideas. Listening is one of the more important communication processes. Listening is an
active process that includes making eye contact and nodding of the head. Listening also involves hearing
the entire message, including the feelings of the speaker, which are communicated nonverbally (tone of
voice, facial expressions, and body posture.)
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CHAPTER EIGHT
OD INTERVENTION STRATEGIES
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LEARNING OUTCOMES
Identify and apply the range of major OD intervention techniques and how they can
be applied.
Identify the way various interpersonal, team, and intergroup techniques fit into an OD
programme.
Understand and apply the change strategies.
READING
Study Brown (2011), pages 195 to 216, “OD Intervention Strategies” including:
• Introduction
• Basic Approaches to Change
• Principles of Change
• The Ten Keys to Successful Change
• Change Models
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INTRODUCTION
In the previous section we examined the diagnostic phase of Change Management. It is the phase
that precedes the implementation of change programmes and the operations and programmes that
are directed at solving problems and boosting the organisation’s effectiveness, as well as the
quality of work life for its people. Based on the diagnosis, the change consultant puts together
specific change management strategies for consideration by the organisation’s top management.
The strategies normally address structural, technical, and behavioural change in the client
organisation. An integrated approach is thus followed and often several strategies or techniques
are implemented concurrently. Stream analysis is a practical method for planning and tracking
multiple change strategies.
ORGANISATIONAL CHANGE
The starting point for setting a change programme in motion is the definition of a total change
strategy. An OD strategy may be defined as a plan for relating and integrating the different
organisational improvement activities engaged in to accomplish objectives. There are several
major categories of OD strategies: structural, technological, and behavioural. Developing a
strategy includes the planning of activities intended to resolve difficulties and build on strengths.
The basic Change Strategies that are followed in change management programmes are normally
divided into three categories:
Structural Strategies
These are changes that relate the elements of the organisation to one another.
Other structural changes include removing or adding layers to an organisation’s
hierarchy.
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Technical Strategies
Behavioural Strategies
Emphasise the better utilization of human resources by improving the level of morale,
motivation, and commitment of members.
In the past, behavioural strategies were often neglected when organisations
implemented changes.
OD traditionally has been associated with behavioural strategies.
In practice, changes made using any one strategy will likely require some use of the other two.
Structural, technological, and behavioural change strategies are not OD change strategies per se.
The determining feature of an OD strategy is the process used to arrive at and carry out the
strategy (Brown 2011: 198-199)
OD attempts to deal with organisation change from an integrated standpoint that considers
structural, technical, and behavioural changes and how these change approaches influence one
another. (See Figure 8.1)
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(Brown 2011:199)
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STREAM ANALYSIS
Stream analysis is a method useful in planning behavioural, structural, and technical changes.
(See Figure 8.3)
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SELECTING AN OD INTERVENTION
Interventions are the range of actions designed to improve the health of the client system.
Interventions are the specific means, activities, and programmes by which change can be
determined. In selecting a specific OD technique, the practitioner and the client consider a
number of factors:
At the individual or interpersonal level: These interventions could be job design and
enrichment, goal-setting, career planning, stress management.
At the team or group level: For example team-building, job design and enrichment, quality
circles, role negotiation, role analysis.
At the intergroup level: These could be intergroup development, third party intervention,
organisation mirror.
At the level of the total organisational system: For example goal-setting, survey feedback,
action research, Likert’s System 4, quality of work life.
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An intervention may fit into several or all categories. OD programmes do not necessarily include
all of the four levels. The succeeding chapters in this text are devoted to a more detailed
discussion of these OD intervention techniques.
According to Pendlebury et al. (1998:128) there are ten keys to successful change. These ten
keys describe the activities, skills and competencies that are required for successful change
management. They are set out briefly below :
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Key 2: Mobilising
Mobilising creates the dynamic for change to take place. Its objectives are:
to sensitise organisation members to the requirement for imminent change
to reinforce the critical issues identified in Key 1
to select the appropriate change initiatives
to overcome the initial inertia and maintain the necessary momentum thereafter
Key 3: Catalysing
The process of catalysing aims to fight resistance, overcome inertia, create support. A number of
key groups may be involved in this process, including: senior management, change steering
committee, change facilitation teams, expert groups and support teams.
Key 4: Steering
The fourth key focuses on the system that will guide the process and keep it on track, forecasting
and avoiding problems and resistance and using resources effectively. The steering process
involves a number of activities:
Key 5: Delivering
Delivering is the process aimed at effecting the vision and the actual transition from the current
situation to the planned state. It consists of five phases:
Putting together a comprehensive analysis of the status quo and identifying all of the change
opportunities thus identified
Compiling a detailed implementation plan for each change initiative and spelling out the
improvements to be realised in each case for the vision to be attained
Doing pilot runs and testing where necessary
Putting the results of testing to use by a more general application of the change process
Putting in place the systems that will ensure that change is lasting
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implementation phase
effectively treating these emotional dimensions
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must be defined not only to facilitate the process, but also to put a lid on possible negative
influences.
ACTIVITY
? THINK POINT
Using the systems approach, explain how restructuring in an organisation can affect the whole
system.
SOLUTION TO ACTIVITY
Answer: Structural - changes that affect the method that the elements of the organisation relate to
one another.
Technical - changes that bring the organisation up to state-of-art in machinery, methods,
automation, and job design.
Behavioural - changes that improve the level of morale, motivation, and commitment of
members.
Each of these three change strategies cannot be isolated from one another as a change in one area
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Answer: Individual or interpersonal level - job design and enrichment, goal setting, career
planning, stress management.
Team or group level - team building, job design and enrichment, quality circles, role negotiation,
role analysis.
Intergroup level - intergroup development, third-party intervention, organisation mirror.
Total organisational system level - goal setting, survey feedback, action research, Likert’s
System 4.
Answer: Stream analysis is a method used in planning the implementation and analysis of
behavioural, structural, and technical changes. It helps the practitioner and client diagnose and
plan the interventions and keeps track of their progress once the change programme is underway.
The information may be used to redesign the change programme or to schedule time
appropriately.
Answer: A change oriented toward dealing with the total organisation through an integration of
behavioural, structural, and technical strategies. After the consultant and the client determine the
major strategy, they then decide upon the specific OD techniques to implement in the change
effort.
Answer: (1) The potential results of the technique. Will it solve the basic problems? Does it have
any additional positive outcomes? (2) The potential implementation of the technique. Can the
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proposed technique actually work in a practical application? What are the actual dollar and
human costs of this technique and the impact of costs upon the client system? How do the
estimated costs of the technique compare with the expected results (costs versus benefit)? (3)
The potential acceptance of the technique. Is the technique acceptable to the client system? Is the
technique adequately developed and tested? Has the technique been adequately explained and
communicated to members of the client system?
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CHAPTER NINE
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LEARNING OUTCOMES
READING
Study Brown (2011), pages 243 to 275, “Employee Involvement and Empowerment:
Interpersonal Interventions”.
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Introduction
Chapters 9 to 14 of the prescribed book, Brown (2011) provide a comprehensive treatment of the
main interventions and the text in most cases is sufficient for the management proficiency that is
required at this level. This study guide will, therefore, be fairly brief in its treatment of these
interventions. This chapter will deal with Employee Empowerment and Interpersonal
Interventions. The following chapters will deal with Intergroup interventions Goal Setting, and
Quality and Productivity Interventions.
There are a number of change interventions that are aimed at enhancing the development and
empowerment of individual organisation members. The object is to unlock the potential of the
individual so that they use their energy and ability to work toward the realisation of the
organisation's goals. The premise behind these approaches is that, as the individual becomes
more effective and more involved, so the organisation as a whole will benefit from the improved
levels of motivation. These behavioural interventions may take various forms but are all intended
to improve the basic abilities that enhance employee empowerment, and thus contribute to
overall managerial and organisational effectiveness.
In this section we will discuss several interpersonal techniques that can be used to assist
organisation members in becoming more empowered and involved, and to realise their full
potential. Among the techniques discussed are laboratory learning, the Johari Window Model,
Transactional Analysis, career life planning, and managing stress and burnout. It should be noted
that the techniques discussed below and in the text book are treated very superficially and that a
much deeper study would be required before expertise could be claimed. Interpersonal
interventions by their very nature are often fraught with ethical questions and so students must
take great care to apply these methods effectively and ethically.
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Empowerment is the process of giving employees the power to make decisions about their work.
Power and decision making are delegated to lower levels to engage all employees. A range of
OD intervention activities aim at enhancing the development and empowerment of the individual
members of the organisation. The interventions include helping organisation members to
improve their communication abilities, interpersonal skills, and managerial performance.
Employee empowerment
Laboratory learning
Johari Window Model
Transactional analysis
Career life planning
Stress management (Brown 2011:243)
EMPLOYEE EMPOWERMENT
The individual is one of the most critical elements in any large-scale organisational change.
Central to empowerment is:
Employees who are empowered are more proactive and self-sufficient. The individual is one of
the most critical elements in any large-scale organisational change. The purpose is to have the
individual’s purpose and vision congruent with the organisation’s. In many organisations,
employee empowerment has become a basic cornerstone of change and development
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programmes.
General Electric has a company wide version of employee involvement that they call “Work-
Out.” Empowerment concepts are interwoven through OD interventions that will be discussed in
future chapters including:
LABORATORY LEARNING
Laboratory learning provides a controlled environment within which a person can gain valuable
insight into his personal behaviour and also how he or she affects other people. The objective for
participants is to develop heightened levels of insight and self- awareness, to increase sensitivity
to their effect on others, and to become aware of information on their “blind spots” and other
hidden areas. The laboratory should provide a safe environment which is away from the work
organisation. Participants can try new behaviours and receive candid feedback from others on the
effectiveness of these new behaviours in a non-threatening situation. The downside is that these
types of experiences have occasionally proven to be deleterious for sensitive individuals,
particularly when the training was not in the hands of experts. Laboratory learning is, therefore,
fraught with ethical questions and the effective transfer of learning is also sometimes
questionable.
Laboratory learning is sometimes called encounter groups, sensitivity training, training groups,
or simply T-groups. Laboratory learning involves using a group as a laboratory for
experimenting, learning, and discovering cause-and-effect relations in interpersonal
communication. Laboratory learning grew rapidly through the mid-1970’s although though
recently it has been used less as an OD technique. Laboratory learning programmes usually
include 10 to 12 participants who typically do not know one another and one or two experienced
trainers or facilitators.
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There are no clear-cut empirical studies to document effectiveness. Organisations that use some
form of laboratory learning methods are more likely to combine it with other OD interventions
(Brown 2011:245-246).
The Johari Window Model is a technique for identifying interpersonal communication style.
If the organisation uses formal communications, most of the communication between members
may not be authentic. Communication is a critical dimension in determining the effectiveness of
organisations. The Johari Window Model is a technique for identifying interpersonal
communication style. (See Figure 9.1)
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Figure 9.1
The model presents a two dimensional, four cell figure based on the interaction of the self
and others. A brief description of the dimensions is discussed below:
The public area - behaviour, thoughts, and feelings which are known both to the person and
to others.
The blind area - aspects of the self not known to oneself but readily apparent to others.
The closed area - behaviours and feelings know only to oneself but not to others.
The unknown area - aspects of the self not known to oneself or others.
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Movement along the two dimensions of receiving feedback and disclosure of self changes an
individual’s interpersonal style. Disclosure involves the open disclosure of one’s feelings,
thoughts, and candid feedback to others. Feedback is the behavioural process used to enlarge the
public area and reduce the blind area (Brown 2011:247)
TRANSACTIONAL ANALYSIS
TA is a model for analyzing human behaviour using familiar terminology. Structural analysis is
useful to understand how we get to be who we are. A person has three sources of behaviour
called ego states discussed below:
All three ego states exist within everyone and a certain amount of each ego state is necessary for
a well-integrated personality. Structural analysis can enable people to better understand the
source of their values, behaviours, and thoughts. This increased awareness can help in improving
one’s effectiveness in an organisation.
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(Brown 2011:250)
Complementary transaction – occurs when a message sent from one ego state receives an
expected response from the other person’s appropriate ego state. Crossed transaction - occurs
when a message from one ego state receives a response from an inappropriate or unexpected ego
state. Ulterior transaction involves two ego states simultaneously: the literal words of the
transaction, which may mean one thing, and the underlying intent, which may mean something
entirely different.
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Stroking: any form of recognition including physical, verbal, and visual. Strokes may be
conditional and unconditional. Conditional strokes are tied to some type of performance by the
receiver of the stroke. Unconditional strokes are given to a person with no strings attached. Both
types of strokes are appropriate. Strokes may also be positive, negative, and crooked.
A psychological position is a person’s general outlook on life and how he or she relates to others.
Psychological positions are:
I’m OK, you’re OK. - an acceptance of self and others, a healthy outlook.
I’m OK, you’re not OK. - tendency to mistreat, blame, and put down others.
I’m not OK, you’re OK. - feelings of low self-esteem or of lack of power or
inadequacy compared to others.
I’m not OK, you’re not OK. - feelings of low self-esteem or of hopelessness and
loss of interest in living, with feelings of confusion and depression.
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These interventions are aimed at helping individuals better manage their career on an
interpersonal level. Career life planning is the process of choosing occupational, organisational,
and career paths. One of the objectives is to help individuals that feel caught in an
“organisational trap” when their career paths reach crisis points.
There is a lack of data on the results of this technique though organisations using it report
favorable results (Brown 2011: 252-253).
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Although work-related stress to some extent may improve performance, excessive work stress
and personal stress can result in dysfunctionality. Stress is an interaction between an individual
and the environment characterized by emotional strain affecting a person’s physical and mental
condition. Stressors are what causes stress. Stress requires two simultaneous events:
Stress can be traced to on-the-job activities and to events occurring away from work; however,
the two are interrelated and are complex issues. A recent study shows that jobs causing the most
problems are lower-level jobs where there is a high psychological demand coupled with little
control over the work place and little use of skills. Potential stressful work activities include:
a change in policy
reorganisation
unexpected changes in work schedules
conflicts with other people
lack of feedback
not enough time to perform duties
lack of participation
job ambiguities (Brown 2011: 254-255)
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Job burnout
Job burnout refers to the emotional exhaustion and reduced accomplishment sometimes
experienced by those who work with people or do “people work” of some kind. It is a response
to the chronic emotional strain of dealing extensively with other human beings, particularly when
they are troubled or having problems. Job burnout is more common among people in professions
who must deal extensively with other people (clients, subordinates, and customers). When job
burnout occurs, the individual is no longer able to compete with the demands of the job. The cost
to both the organisation and individuals can be high. There are a number of work activities that
are frequently regarded as potential causes for stress. The factors in potentially stressful work
activities that are most often cited include:
A stress management intervention is an activity or programme that attempts to reduce the cause
of work-related stresses or helps individuals to cope with the negative outcomes of exposure to
stress.Stress management interventions include time management, delegation, and self-
awareness. The OD programme itself is a stress management intervention in that OD tries to
create an organisation in which there are fewer harmful stressors.
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Wellness programme
Relaxation techniques - two commonly used techniques are biofeedback and meditation.
Career life planning - sessions may be one-to-one or group sessions.
Stress management training: instruction in time management, goal setting, relaxation
techniques, and conflict resolution.
Seminars on job burnout - workshops to help employees understand nature and symptoms
of job problems.
Medical research has shown the positive effect of exercise and the ability of healthy individuals
to cope with increased levels of stress. Stress management training, meditation, and biofeedback
have been found to decrease pulse rate and blood pressure (Brown 2011: 256-257)
ACTIVITY
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Answer: Laboratory training or learning provides insight into personal behaviour and how one
affects others. The goal is for participants to develop self-insight and awareness, to increase
sensitivity to one’s effect on others, and to bring to the surface data on one’s blind spots and
hidden areas. The laboratory provides a safe climate away from the work organisation where
participants can try new behaviours and receive candid feedback from others on the effectiveness
of those behaviours. Participants can then take back to their work new ways of behaving and
working with others.
2. Identify and explain the four areas of the Johari Window Model.
Answer:
1. The public area - includes behaviour, thoughts, and feelings that both the person and others
know.
2. The blind area - represents aspects of the self not known to oneself, but readily apparent to
others.
3. The closed area - involves behaviour, thoughts, and feelings known only to oneself but not to
others. For others to become aware of this area, it must be disclosed by the person.
4. The unknown area - the behaviour and feelings that are inaccessible both to oneself and to
others.
3. How can you use the Johari Window Model as a tool to understand interpersonal
communications?
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Answer: Most organisations find that poor communication is the most important problem
preventing effectiveness. The model presents a technique for identifying interpersonal
communication style. It shows an individual the extent to which they are willing to receive
feedback and disclose information about themselves. By enlarging the public area, an individual
behaves in less defensive ways and becomes more open and trusting. Others will then tend to
react toward him/her with increased openness and trust.
4. What is the interrelationship between the Johari Window Model and laboratory learning?
Answer: The ideas of the Johari Window can be used with laboratory learning to help
participants understand their effect on others (disclosure) and how their behaviour comes across
to others (feedback).
5. Explain how transactional analysis can help you better understand your communication
patterns.
Answer: TA is a way for people to understand themselves better and to improve their
communication and interpersonal relation skills. TA provides a model for analyzing and
understanding human behaviour using terminology familiar to many people.
Answer:
Step 1 Each person independently prepares a list of career life goals that usually includes career,
professional, personal, and relational goals (list 1).
Step 2 Working in pairs, the practitioner (partner) then goes through the list, reality testing (are
goals realistic?), helping set priorities, and looking for conflicting goals.
Step 3 Each person makes a list of important accomplishments or happenings, including peak
experiences and satisfaction (list 2).
Step 4 The practitioner then works through a comparison of the individual’s goals (list 1) with
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the list of achievements (list 2), looking for conflicts or differences between the two lists. The
practitioner points out the differences to his or her partner. Each person prepares a new list of
goals with relative importance of the goals (list 3) based on working with the practitioner.
Step 5 Each person prepares a detailed plan of action specifying how to get from where he or
she is to where the goals show that he or she would like to be.
Answer: A stress management intervention is any activity or programme that attempts to reduce
the cause of work-related stresses or helps individuals to cope with the negative outcomes of
exposure to stress. Stress management interventions include:
Wellness programmes – physical fitness, nutrition counseling, and smoking cessation.
Relaxation techniques - Biofeedback and meditation are commonly used relaxation techniques.
Career life planning – usually a seminar or training programme in a one-to-one or group session.
Stress management training - may include instruction in time management, goal setting,
delegation, counseling of subordinates, self-awareness, relaxation techniques, and conflict
resolution.
Seminars on job burnout - Seminars to help employees understand the nature and symptoms of
job problems.
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CHAPTER TEN
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LEARNING OUTCOMES
READING 1
INTRODUCTION
Chapter 10 of the prescribed book, Brown (2011) provides a comprehensive treatment of the
main team development interventions and the text in most cases is sufficient for the management
proficiency that is required at this level. This study guide will, therefore, be fairly brief in its
treatment of these interventions. This chapter will deal with Team Development Interventions.
The following chapters will deal with Intergroup interventions, Goal Setting, and Quality and
Productivity Interventions.
This chapter provides an overview of team development, when to use teams, the problems
associated with work teams, and how to promote group thinking in the team development
process using outdoor experiential laboratory training. The chapter ends with role negotiation
and role analysis.
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A team is a group of individuals with complementary skills who depend upon one another to
accomplish a common purpose or set of performance goals for which they hold themselves
mutually accountable. Teamwork is work done when the members subordinate their personal
prominence for the good of the team. Many management theorists see the team-based
organisation as the wave of the future.
Organisations frequently use sport teams as models. Some organisations require close teamwork
similar to basketball, whereas other organisations require team involvement similar to baseball.
A production manager at P&G says that he sees a production team working similar to that of an
ideal basketball team. One major OD technique is team building or team development. The terms
team building and team development are used interchangeably. Team building is where the
members of a work group examine such things as their goals and culture to improve their ability
to work together effectively and efficiently. Team building grew out of the application of
laboratory learning, used principally during the 1950s and 1960s (see Chapter 9).
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There are several reasons for using team development to improve organisational effectiveness.
The work group is the basic unit of the organisation and provides a supportive change
factor.
The operating problems of work groups are often sources of inefficiency (Brown
2011:282-283)
Teams are the primary unit in an organisation. There are two types of teams.
Natural work team
- People come together because they do related jobs.
- They also come together because of the structure of the organisation’s design.
Temporary task team
- Groups meet for limited periods to work on a specific project and disband
after they solve it.
- There is an increasing need for collaboration and coordination of the resources
that are brought together.
The need for team development in an organisation varies with the situation. Situations that
require interaction tend to fall into three categories: (See Figure 10.1)
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Simple Situations
o People work alone and need not to involve others.
o Little team development necessary.
Complex situations
o Information must be shared in order to complete the task but interaction is
not on a deeply personal nature.
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When individuals work together on some problem or goal they are likely to develop a
complex pattern of behaviours, interactions, and feelings. Sources of team problems are
shown in Table 10.2 below
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The sources of problems shown in figure 10.2 centre around the following elements:
Group or team cohesiveness refers to the unity that the members of a group have for one another.
A high degree of cohesiveness can be a problem for groups and results in groupthink.
Groupthink is a deterioration of reality testing and moral judgment that results from group
pressures. Likely to happen when agreement becomes such a dominant force that it tends to
outweigh consideration of alternatives. There are 8 characteristics of groupthink:
Illusion of invulnerability
Rationalization
Illusion of morality
Shared stereotypes
Direct pressure
Self-censorship
Illusion of unanimity
Mind guards
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The purpose of team development is to integrate the goals of the individual and the group with
the goals of the organisation. It involves the following:
Identifying objectives, setting priorities
Examining performance of team
Analysing group process
Improving communications
Improving problem-solving ability
Increasing cooperation
Working more effectively with other teams
Increasing respect of other team members
Teamwork and self-managed teams have assumed a position of increasing importance in modern
organisation and are today recognised as one of the most potent means for an organisation to
achieve the flexibility that is so essential in coping with a volatile global environment, while, at
the same time, empowering organisation members to effectively take charge of their own critical
decision making processes.
There are a number of approaches to the process of team building. Brown (2011: 291-293) look
at team development sessions or meetings as lasting two or three days and typically proceeding
through six steps:
Initiating the meeting
Setting objectives
Collecting data
Planning the meeting
Conducting the meeting
Evaluating the process
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Brown (2011: 290-293) base their discussion of team development around three different types
of interventions: outdoor experiential laboratory training, role negotiation, and role analysis
techniques.
Teamwork
According to Leigh (1993:6) teamwork is defined as a group of individuals working together to
reach a common goal, with the stress on “working together” and having a “common goal”. All
teams are groups but not all groups are teams. Leigh identifies two common types of teams:
1. The first common type is the project team. It is a team put together to perform a specific task
or perform a particular project. Normally the team would come together to carry out their
task and upon its completion they would disband.
2. The second type of team is the self-directed work team. In this instance the team is together
and carries responsibility for much longer periods of time, setting their own objectives and
making many of their own decisions. Self-managed work teams are covered in greater detail
in the next section of this study guide.
It is very important to realise that there are four stages of team development and any team will
invariably have to proceed through all of the stages in a sequential manner.
Stage 1. The first stage is that of getting started, also known as forming, and the identifies the
initial period when the team is organised.
Stage 2. The second stage is called the storming phase and relates to the period when the team
tends to go round in circles as they struggle with the group to team transition. There is
disagreement over the team’s objectives and members take sides as a pecking order is
sorted out. This stage could go on for a long time.
Stage 3. The third, or norming phase is when members finally realise that they need to get
together to accomplish a common goal and so competing loyalties are reconciled and
basic operating ground rules for co-operation are established.
Stage 4. The final phase is called performing and refers to a productive team that gets a lot
accomplished. The team wants to work together and they have now achieved a state
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of synergy where their collective effort is more than the sum of their individual
achievements.
Effective Teams
Effective teams are characterised by a high degree of co-operation, teamwork, and goal
attainment. There is a refined order of honesty and openness between members; they support
and trust one another and there is a high degree of co-operation and collaboration. Their
decisions are reached by consensus, and communication channels are direct and well developed.
Commitment to team objectives is strong. Efforts to increase team effectiveness are ongoing and
are normally directed at improved communication, goal clarity, and encouraging satisfaction and
contribution from all members to make them more productive and effective.
At the same time the possible negative aspects of team development, such as groupthink, can be
avoided by improving communications and nurturing group processes. At the same time
attention should be paid to key relationship issues among members, by encouraging differing
opinions, identifying and setting goals and objectives, increasing mutual respect, and improving
the problem-solving abilities of groups.
The drive is toward decentralised, flatter organisations, with fewer levels of management, a
decrease in staff positions, and a broader span of control. More decision-making authority is
pushed down to the lower levels of organisations where people are closest to the problems.
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Work groups and not the individual then become the primary medium around which work is
organised.
The team development process involves 2 types of activities. Family group diagnostic meetings
are held to identify group problems. Family group team-building meetings are held with the
intention of improving the team’s functioning. Team development is one of the most widely used
OD activities. A team development meeting has two objectives:
The task or work agenda of the group.
The processes by which members work on the task.
The general procedure of a team development training meeting follows these steps as articulated
in Brown (2011:291-292):
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Additional and more detailed information about the team is obtained through
surveys, questionnaires, interviews, etc.
The practitioner may also have a two- to four-hour pre–team development meeting
with members.
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Research findings suggest that it is very effective and is a popular intervention used in many
organisations. Research found that team building to be the most effective OD intervention.
Sometimes called outdoor labs, wilderness labs, adventure learning, or the corporate boot camp.
This type of training takes a group of people who normally work with one another and places
them in an outdoor setting where they participate in experiential exercises. The training seems to
hasten discussions surrounding leadership styles, team work, and interpersonal relationships. The
labs have participants involved in activities that require teamwork and allow opportunities to
work on leadership and team development. The learning provides participants with insights into
their leadership and interpersonal styles. After an exercise, the team and the consultant critique
the exercise with an emphasis upon what they learned and how it applies to work
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At work the team follows through with goal setting and plans for meeting goals.
The laboratories have become very popular and are widely used.
They are relatively new and need more research into their effectiveness.
Some initial research shows favourable results.
Labs should be part of a larger change programme such as OD in order to be more
effective.
ROLE NEGOTIATION
Role negotiation is directed at the work relationships among team members. During the role
negotiation, members discuss what they want from one another and why. Steps include the
following:
Contract setting - each member prepares a list of things each member should do more, less,
or the same.
Issue diagnosis - each member takes information from others about self and compiles a
master list.
Role negotiation - members work in pairs to negotiate items on lists, usually with a
consultant.
Written role negotiation agreement - outcome is a set of written agreements between parties.
(Brown 2011: 296-297)
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ROLE ANALYSIS
Role analysis technique (RAT) is designed to clarify role expectations by analyzing roles of team
members. Role ambiguity refers to the team member not fully knowing what others expect. Role
conflict occurs when there is a difference between what is expected of a team member and the
member’s actual behaviour. Role analysis is used to clarify role discrepancies. The steps in the
role analysis technique are listed below:
Role analysis - role incumbent describe their roles as they see it. Others may add or
modify list.
Role incumbent’s expectations of others - a list of role incumbent’s expectations of
other group members is set forth. Others may add to or modify list.
Role expectations - others list expectations of role incumbent.
Role profile - after agreement of role definition, the role incumbent makes a written
summary.
Repeat Process: the above steps are followed until each group member has completed
a role profile.
Role profiles are periodically reviewed.
ACTIVITY
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SUMMARY
This chapter has focused on developing team effectiveness. In the next chapter the discussion of
OD moves to examining the conditions of conflict and a discussion of the various techniques for
dealing with relations between teams.
SOLUTION TO ACTIVITY
Answer: Examples are open communication, clarity of goals, room for input from all, satisfaction
of members. One major OD technique, termed team building or team development, is used for
increasing the communication, cooperation, and cohesiveness of units to make them more
productive and effective.
3. Identify the symptoms of groupthink. Explain how groupthink can be avoided through team
development.
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CHAPTER ELEVEN
INTERGROUP DEVELOPMENT
INTERVENTIONS
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LEARNING OUTCOMES
READING 1
Introduction
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The subject of intergroup relations is a natural extension of the previous discussions on teams,
teamwork, and team building techniques and moves the discussion to the interventions and
techniques appropriate for improving relationships between teams. Conditions of
interdependence, where the effective performance of one group is dependent upon the timeous
delivery of another, are a natural outcome of complex organisations. When two such groups are
highly interdependent, misunderstandings and conflict can develop between them and then they
become dysfunctional for both themselves and for the organisation as a whole. Not surprisingly,
a range of change interventions aimed at intergroup processes has been developed to:
The three intergroup conflict management techniques discussed by Brown (2011) are: third-
party consultation, organisation mirror, and intergroup team-building.
Managers are concentrating their efforts on shared responsibilities among work teams.
Organisations create situations of team interdependence where the performance of one group is
contingent upon another group. People and groups often fail to cooperate with others and may be
in open conflict. One set of OD interventions aims specifically at improving interdepartmental
interfaces and intergroup operating problems. These OD interventions aim at developing
effective working methods between teams.
Organisational Conflict
Conflict can arise within the various units that comprise an organisation for many reasons.
Among these are limited resources, competition, power conflict, role conflict, role ambiguity,
personality conflict, goal conflict, and suboptimisation. Many people approach conflict as a
“win-lose” situation, when a “win-win” approach is far more likely to achieve a satisfactory
result. Research has indicated that co-operation generally promotes productivity. Competition
only promotes productivity in small, simple tasks as it is easier to provides an incentive. More
complicated tasks which require co-ordination and sharing of information, normally discouraged
by competition, are more productively carried out using a “win-win” approach.
When groups are in a competitive situation there are normally a number of typical behaviours
that are indicative of a level of competitive conflict. The competing groups see the best in
themselves and the worst in the other group. Communication decreases between the groups and
hostility increases. The groups themselves become more cohesive, structured and organised, and
concern for task accomplishment increases while concern for the psychological needs of
members decreases. The leadership styles become more autocratic and after the groups complete
the task and if there is a clear winner and a loser, the winning group will become more cohesive
but, with their self-image of being better than the other group, they will become complacent.
The winning group will also become more concerned about members’ psychological needs and
less concerned about task accomplishment.
The losing group on the other hand may deny the loss, particularly if the situation is ambiguous
enough, or rationalise the loss by blaming it on bad luck or unclear rules. Initially the group may
splinter, and try to find someone to blame, and the group has less concern for members’
psychological needs. Over time, however, the losing group usually learns more about itself
because its preconceived ideas about being the best group are upset. The long-term result of the
loss can have positive outcomes if the losing group realistically accepts its loss.
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An important aspect of diagnosing a conflict situation is to recognise the five styles which
represent different levels of conflict:
Avoiding - low concern for both self and others
Obliging - low concern for self and high concern for others
Dominating - high concern for self and low concern for others
Compromising - moderate concern for self and moderate concern for others
Integrating - high concern for self and others
Conflict between groups depends on how incompatible the goals are, the extent to which
required resources are scarce and shared, and the degree of interdependence of task activities.
(See Figure 11.1)
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Role conflict and role ambiguity occur when an individual belongs to two or more groups
whose goals are in conflict. Role ambiguity exists when an individual in a group is not clear
about his/her functions, purposes, and goals.
Although competition is often perceived to be beneficial, the research results of competition and
cooperation among groups is mixed. Members of competitive groups have more self-esteem for
their groups. Groups competing with one another are more highly oriented toward
accomplishing the task, but there is a lack of evidence that competition will increase
productivity. Research indicates that cooperation promotes productivity between groups when
the task is complicated and requires coordination.
MANAGING CONFLICT
Organisational conflict does not need to be eliminated but instead managed. Diagnosing conflict
situations involves learning the basic conflict styles used in dealing with interpersonal or
intergroup conflict. Conflict styles are based on 2 dimensions: (See Figure 11.2)
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Several OD intergroup techniques are available to deal with problems between groups. Dealing
with conflicts openly provides a way to manage tensions creatively. OD techniques for dealing
with intergroup problems include third-party consultation, the organisation mirror, and
intergroup team building.
Third-party consultation
Involves a third party, usually an outside practitioner, to help open communications, level power,
and confront problems between groups. The third party provides diagnostic insight, is non-
evaluative, and is a source of emotional support and skills.
Organisation mirror
Gives work units feedback on how other elements of the organisation view them. Normally
using a practitioner, the work group obtains specific information from other groups that it comes
into contact with. The units meet together to process the data with the objective of identifying
problems and formulating solutions.
Key members of conflicting groups meet to work on issues of interface. The inter-group team-
building meeting involves the following steps:
Step 1: Working separately, the two work groups make three lists:
How we see ourselves
How we think the other group sees us
How we see the other group
Step 2: Meeting with the other group, a spokesperson from each group presents their lists.
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Step 4: Subgroups of five or six are formed by mixing members of the two groups. Their
objective is to develop problem-solving alternatives with action plans.
ACTIVITY
1. Identify major sources of organisational conflict.
2. Many people approach conflict as a win-lose situation. Why is a win-win approach more
likely to work?
3. What are the anticipated behaviours of competitive conflict that occur in work teams?
4. Identify and compare the five major conflict styles.
5. Compare and contrast the methods used in the different approaches to resolving intergroup
conflict.
SOLUTION TO ACTIVITY
1. Identify major sources of organisational conflict.
Answer: Limited resources, competition, power conflict, role conflict, role ambiguity, personality
conflict, goal conflict, and sub-optimization.
2. Many people approach conflict as a win-lose situation. Why is a win-win approach more
likely to work?
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tasks, competition tends to be superior to cooperation as it provides incentive. Tasks that are
more complicated require coordination and sharing of information which competition tends to
discourage. A “win-win” approach encourages interaction and negotiation to increase frequency
of communication that in turn promotes cooperation.
3.What are the anticipated behaviours of competitive conflict that occur in work teams?
Answer: Competing groups see the best in themselves and the worst in the other group.
Communication decreases between groups and hostility increases toward the other group. The
group becomes more cohesive, structured, and organized. Also within the group, concern for task
accomplishment increases while concern for psychological needs of members decreases.
Leadership styles become more autocratic and less democratic. After the groups complete the task
and there is a winner and a loser, the winning group will become more cohesive but, with their
self-image of being better than the other group, they will become complacent. The winning group
will become more concerned for member’s psychological needs and less concerned for task
accomplishment. The losing group denies the loss if the situation is ambiguous enough or it
rationalises the loss by blaming it on bad luck or unclear rules. Initially the group splinters, tries to
find someone to blame, and has less concern for member’s psychological needs. Over time,
however, the losing group usually learns more about itself because its preconceived ideas about
being the best group are upset. The long-term result of the loss can have positive outcomes if the
losing group realistically accepts its loss.
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5. Compare and contrast the methods used in the different approaches to resolving intergroup
conflict.
Answer:
Third-party consultation - one method of increasing communication and initiating intergroup
problem solving through the use of a third party, usually an outside practitioner. In this process
the parties directly engage each other and focus on the conflict between them. Organisation
Mirror - a technique designed to give work units feedback on how other elements of the
organisation view them. This intervention is designed to improve relationships between groups
and increase effectiveness. Intergroup Team Building - an intergroup team building or
confrontation technique where key members of conflicting groups meet to work on issues or
interface. An interface is any point at which contact between groups is essential to achieving a
result.
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CHAPTER TWELVE
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LEARNING OUTCOMES
READING 1
Study Brown (2011), pages 339-358, “Goal Setting for Effective Organisations”.
INTRODUCTION
Goals give direction and purpose to organisations. OD programmes rely heavily upon the
goal-setting process. OD, by definition, is planned change. In order for change to take
place, goals need to be set. In the implementation of the OD programme, managers and
other employees develop ideas about what the organisation will like, that is, they develop
goals, which defines the series of steps that will move the organisation along to
accomplish the goals.
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communicating, and motivation. This chapter focuses on goal-setting concepts and then
discusses management by objectives.
Goal Setting
Different writers stress different factors when setting goals for both individuals and
organisations. Goals should be difficult and specific, but they should not be impossible to attain.
Frequent, relevant, and specific feedback is important. Goal-setting can be successful regardless
of the education level, position in the hierarchy, or seniority of the participant. Support from
management is critical. In summary, goals should be SMART, that is.,
The goal-setting exercise is always likely to be more successful if there is a strong element of
participation as this inevitably leads to a greater degree of participant commitment to the
formulated goals. Commitment is a crucial ingredient in effective goal-setting. An essential
element of management’s participation in a goal programme is the provision of timely and
specific feedback.
There are a number of goal-setting models and systems that have been developed over the years.
A commonly accepted model is the Latham and Locke model which is illustrated in Harvey and
Brown (2006: 346-348). The process of goal-setting includes the initial determining of the goals
by various methods. Achieving goal commitment is the next priority, and finally, overcoming
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resistance to goal acceptance. Ideally, goals have a number of attributes or characteristics which
facilitate their acceptance and achievement:
A useful model has been developed by Latham and Locke for goal setting as shown in Figure
12.1 below:
Figure 12.1 Goal Setting
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MANAGEMENT BY OBJECTIVES
Another popular goal setting model is Management by Objectives or MBO. It was designed
mainly to achieve the integration of individual and organisational objectives and is currently a
widely used technique, either in its ‘pure’ form or as a hybrid or add-on to another system of
performance management. MBO is based on the belief that joint participation of both
subordinates and their superiors in translating organisational goals into specific individual
objectives has a salutary effect on employee motivation. In other words, it is based on the belief
that you are far more likely to enthusiastically pursue the achievement of your personal goals if
you were actively involved in shaping them in the first place. The practice of MBO normally
follows a five-step procedure:
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Step 1 - The subordinate proposes to his/her manager a set of goals for the coming time period
that are formulated to be congruent with the organisation’s overall strategic goals.
Step 2 - The subordinate and the manager then jointly refine and develop specific goals and
targets.
Step 3 - A period of performance follows in which the individual involved attempts to
accomplish the agreed upon individual goals.
Step 4 - The manager provides feedback on the results to the subordinate and gives appropriate
rewards for performance.
Step 5 - The outcome of the performance review provides the basis for setting new performance
goals and recycling of the goal setting process.
Although MBO is not a perfect goal setting technique it nevertheless has a strong following,
particularly in organisations where calculated incremental effort is used to shape the direction in
which the organisation is heading.
Criticisms of MBO
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MBO may be too quantitative, and setting objectives as explicitly as possible may not
be functional.
Areas that cannot be quantified easily may be ignored.
MBO may be implemented in some organisations as the top dictating to the bottom.
Some OD practitioners question if MBO is an OD intervention.
Results of MBO
It has been difficult to measure the success of MBO, perhaps because of the
proliferation of so many different approaches in its application in organisations.
The trend of findings is generally favourable (Brown 2011:347-357).
ACTIVITY
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SUMMARY
This chapter focused on what individuals, work teams, and organisations can do through OD
goal-setting programmes to improve performance. The next chapter deals with improving work
processes for individuals and work teams through such interventions as job design, self-managed
work teams, and total quality management.
SOLUTIONS TO ACTIVITY
1. Identify and discuss the major factors in effective goal setting.
Answer: Goals should be difficult and specific, but they should not be impossible to attain.
Frequent, relevant, and specific feedback is important. Goal setting can be successful regardless
of the education level, position in the organisation, or seniority of the participant. Support from
management is critical.
Answer: The first three factors in the goal-setting process are determining the goal, achieving
goal commitment, and overcoming resistance to goal acceptance. The following goal attributes
or characteristics tend to work best in setting goals. Goals should be difficult and challenging but
not impossible to accomplish. They should be specific and measurable and they should be
compatible with goals formulated at higher levels of the organisation. The next step is a period of
performance. The results of the employees’ performance can be beneficial or negative. Higher
performance and pride in achievement of successes can be expected. Negative consequences can
be expected, particularly when the goals are not achieved.
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Answer:
Step 1 - The subordinate proposes to his/her manager a set of goals for the upcoming time period
that are formulated to be congruent with goals set at the next higher level.
Step 2 - The subordinate and the manager jointly develop specific goals and targets.
Step 3 - A period of performance in which the individual involved is attempting to accomplish
the individual goals.
Step 4 - The manager feeds back results to the subordinate and gives appropriate rewards for
performance.
Step 5 - The outcome of the performance review provides the basis for setting new performance
goals and recycling of the goal-setting process.
5. Compare and contrast the factors that make for successful and unsuccessful MBO -
programmes.
Answer: Mutual goal setting is not always possible; MBO may be expensive and time
consuming; managers may resist required changes in style. If participative and clear, it is more
likely to be successful.
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CHAPTER THIRTEEN
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LEARNING OUTCOMES
READING
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INTRODUCTION
This chapter deals with improving work processes for individuals and work teams
through such interventions as job design, self-managed work teams, and total quality
management.
JOB DESIGN
Job design involves changing the nature of jobs to improve workers’ satisfaction and
productivity based on Fredrick Taylor’s proposition of designing jobs scientifically.
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There are many techniques for improving motivational factors of jobs including:
Arranging a job into natural and complete units of work.
Adding more difficult assignments.
Granting additional authority.
Allowin employees to become experts in specialised areas.
Making information directly available.
Removing controls while still holding employee accountable.
Extrinsic rewards such as money are important but in themselves are not motivators. Job
enrichment theory holds that in order to improve worker performance, improvements in both the
quality of the work and rewards are required (Brown 2011: 364-365).
The theory attempts to develop objective measures of job characteristics that can directly affect
employee attitudes and work behaviours. Work motivation and satisfaction are affected by five
core job dimensions:
Skill variety - the number and types of skills involved.
Task identity - degree to which job is an identifiable whole piece of work.
Task significance - the degree to which job impacts lives of others, either in or out
of the organisation.
Autonomy - the degree to which job provides independence in scheduling work and
determining procedures to be used.
Job feedback - the degree to which the job results in obtaining direct feedback about
effectiveness.
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Jobs that measure high on the preceding dimensions produce increased personal and work
outcomes. A mathematical score that reflects a job’s motivational potential is based on the
formula:
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productivity. The cost of rejects, shoddy work, recalls, and expensive controls to identify quality
problems would inevitably lead to lower productivity.
TQM is the management of activities that involve improving the quality of the organisation’s
product or service. It is an organisational strategy that is committed to improving customer
satisfaction by developing techniques to carefully manage output quality.
Characteristics of TQM:
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Quality
Eight dimensions that identify quality include performance, features, reliability, durability,
serviceability, aesthetics, and perceived quality (Brown 2011: 367-368).
The Malcolm Baldrige National Quality Award is a U.S. government response to encourage
organisations to improve quality of products and services. The award is given annually form two
to five organisations. The criteria for the award includes leadership, strategic planning, customer
focus, human resource focus, and business results.
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The self-managed work team is an autonomous group whose members decide how to handle
their task. Teams are composed of people from different parts of the organisation with different
skills. Groups may be permanent work teams or temporary teams. Characteristics include:
The structure of the organisation is based on team concepts. Few management levels
and few job descriptions.
Lack of status symbols.
The team has functional boundaries that members can identify.
Number of team members are kept as small as possible, usually 5 to 15 members.
The team orders material and equipment; they set their goals and rewards.
Team members have a sense of vision for their team and organisation.
Strong partnership between members and management.
There is a diversity in team members’ backgrounds and viewpoints.
Information is openly shared.
Members are skilled and knowledgeable in their areas.
Training and cross-training is important.
Members are knowledgeable of customers, competitors, and suppliers ((Brown 2011: 369-370).
The five core job dimensions (skill variety, task identity, task significance, autonomy, and job
feedback) help in evaluating to what extent a team is self-managed. New organisation structures
usually emerge. The organisation structure is modified to accommodate the teams. It is one that
is flat and has few levels of support staff. The team provides their own management and
support including hiring and firing. The work team carries out functions that would normally be
performed by upper management. There are fewer support staff, such as engineering and
purchasing, because the work team performs these jobs.
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Internal leader - usually elected by the members. Makes sure equipment and supplies are
available. Does work similar to other team members.
Coordinator or external leader - is an encourager, teacher, and facilitator and helps the
team obtain outside resources. Usually is responsible for a few to several dozen teams.
Upper management or support team - does general planning, making broad goals, and
dealing with outside parties.
Reward Systems
Reward systems are based on team performance rather than individual performance. This type of
reward system is typically called gain sharing. A general guideline is that at least 80 percent of
the available rewards should be distributed equally among team members. Rewards may be
given to the team as a whole, and then the team decides how they should be distributed among
the members.
SELF ACTIVITY
1. Explain total quality management and how it can be used to improve quality and productivity.
2. Would you like to work in a self-managed work team? Provide reasons for your answer.
3. Discuss the characteristics of self-managed work teams?
4. Discuss the problems that organisations might have in implementing total quality
management?
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? THINK POINT
Today quality has come to be synonymous with Japanese products, Japanese management and
Japanese systems. Yet there was a time when Japanese was analogous to cheap and nasty
imitations. ‘Plastics’ was a derogatory term for Japanese products. An American, W. Edwards
Deming, is the father of Japanese quality. He taught Japanese industries statistical process
control methods which resulted in statistical control of variability and a quantum quality
improvement. Do you think these control methods and being used in Japan and China?
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1. Explain total quality management and how it can be used to improve quality and productivity.
Answer: TQM seeks to have organisation members who are committed to continuous
improvement in meeting or exceeding customer expectations. TQM applies human resources and
analytical tools. It seeks to develop a culture with a strong commitment to improving quality in
all organisational processes. TQM improves quality and productivity through several processes:
(1) it is organisation wide and supported by top managers, (2) it is part of the culture, (3) a
partnership with customers and suppliers is formed, (4) everyone in an organisation is a
customer, (5) cycle times for new products and services is reduced, (6) quality is manufactured
into the product or service at every stage, (7) the organisation values both customers, suppliers,
2. Would you like to work in a self-managed work team? Are classroom group project teams like
self-managed teams? Provide reasons for your answer.
and employees, and (8) there is no single best way to implement TQM.
4. Discuss the problems that organisations might have in implementing total quality
management?
Training and cross-training is important.
Answer: Problems follow closely, not adhering to the characteristics of TQM. This includes lack
of top management support, not organisation wide or at least an identifiable unit, not part of the
corporate culture, little or no partnership with customers and suppliers, not treating everyone in
the organisation as a customer, long development time for products and services, waiting to the
last of the assembly line before inspecting for quality, withholding respect for customers and
employees, and using a “cook-book” approach for implementing TQM.
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CHAPTER FOURTEEN
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LEARNING OUTCOMES
READING
Study Brown (2011), pages 393-416) “High-Performing Systems and the Learning
Organisation”.
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INTRODUCTION
This chapter presents system-wide approaches to OD and organisational change techniques with
special focus on research, learning organisations, reengineering, system four management, high
performing systems, grid OD and the third-wave organisation.
SYSTEM-WIDE INTERVENTIONS
Managers today are facing constant innovation and they must be able to transform and renew the
organisation to meet these changing forces. Certain OD interventions are aimed at the successful
implementation of change within the total system. OD is a systems approach to group,
functional, and interpersonal relations. A system-level intervention is a structural design
framework for viewing the organisation that examines:
Organisation design
Organisation flow patterns
Interactions of individuals and groups
The system may be an organisation or a reasonably well isolated unit such as a large segment or
subsystem within the total organisation (Brown 2011:393-394).
The key to a successful survey is for management to clearly define the purpose of the survey and
explain what will be done with the results. Employee attitude surveys serve two important
functions:
It serves as an improvement tool.
It serves as a communication tool.
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Results of Survey Research and Feedback indicate positive changes in employee attitudes and
perceptions. The greater the involvement of all members of the organisation, the greater the
change. When feedback is combined with other interventions, the effects are usually more
substantial and long range (Brown 2011:394-395).
The learning organisation is a system-wide change programme that emphasises the reduction of
organisational layers and the involvement of all employees in continuous self-directed learning
that will lead toward positive change and growth in the individual, team, and organisation. A
learning organisation is an organisation that has developed a continuing capacity to adapt and
change. An approach frequently used is to bring together key members in a collaborative process
to discover the problems and then to develop a model of the system. Learning in organisations
means the continuous testing of experience and the transformation of that experience into
knowledge accessible to the whole organisation. Members become conscious of how they think
and interact, and begin developing capacities to think and interact differently.
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Constant readiness
Continuous planning
Improvised implementation
Action learning
(Brown 2011:397-398).
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The process is criticised by some as a top-down, or numbers approach, but in its use of employee
involvement, empowerment, and teams, reengineering is similar to the sociotechnical approach
to change (Brown 2011:399).
SYSTEM 4 MANAGEMENT
Rensis Likert developed the System 4 Management Model based on his research of
organisations.
Systems 4 management describes organisations on a continuum with traditional bureaucratic
organisations (ineffective) at one end and participative (effective) organisations at the other.
The four systems are:
System 1 - Exploitive/Authoritative (autocratic, top-down).
System 2 - Exploitive/Authoritative (top-down/less coercive-autocratic).
System 3 – Consultative.
System 4 – Participative.
Likert found that system 1 organisations tend to be the least effective, whereas system 4
organisations tend to be very effectiveTo improve organisations, the OD practitioner tries to
move the pattern of functioning from System 1 organisations toward System 4 organisations.
System 4 organisations have several common elements:
Action rather than further analysis.
Decisions involving subordinates rather than by superiors.
Individual accountability rather than rigid policies.
Specific recognition of team and individual accomplishments rather than blanket
expressions of thanks (Brown 2011:399-394).
HPS calls for the removal of excessive layers of structure within the organisation and the
creation of a climate that encourages participation and communication across functional barriers.
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HPS is a term originated by Peter Vaill. The criteria used to examine systems are:
Perform excellently against a known external standard.
Perform excellently against their potential performance.
Perform excellently in relation to where they were at some earlier point in time.
Judged by observers to be doing substantially better than other systems.
Perform with significantly fewer resources than is assumed are needed.
Perceived as a source of ideas and inspiration for others.
Perceived to fulfill at a high level the ideals for the culture within which they exist.
They are the only organisations that have been able to do what they do.
HPS Characteristics
Designed by Robert R. Blake and Jane S. Mouton, grid organisation development is a systematic
approach aimed at achieving corporate excellence by changing the basic culture of the system.
Grid OD starts with a focus on individual behaviour, specifically on the managerial styles of
executives. The programme then moves through a series of sequential phases involving the work
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team, the relationships between groups, and finally the overall culture of the organisation.
Phase 2:
Teamwork development begins with the top manager and continues through the entire
organisation.
The team sets group and individual goals.
Phase 3:
Intergroup development sessions that work with people along the horizontal
dimension of the organisation.
Sessions are attended by key members of two segments or divisions where barriers
exist.
Participants leave the meetings with goals and objectives plus an increased
understanding of communication with one another.
Phase 4:
Development of an ideal strategic model that provides the organisation with the
knowledge and skills to move from a reactionary approach to one of systematic
development.
The concern is with the overall norms, policies, and structure of the organisation.
Phase 5:
Implement the ideal strategic model.
The organisation is divided into planning teams with coordinators and the model is
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implemented.
Phase 6:
There occurs a systematic examination of progress toward change goals through
survey use.
Grid OD may be implemented over a period of 5 to 10 years.
Results of Grid OD programmes are documented in anecdotal evidence that suggests an increase
in productivity, improvement in managerial style and ability to manage, and increased efficiency.
THE THIRD WAVE ORGANISATION
The third-wave organisation is a term originated by business futurist Alvin Toffler. The third
wave organisation describes companies that are evolving in the information age to meet
changing times. Third-wave organisations have the following characteristics:
Flexibility - the structure has no permanence.
Creativity - people are motivated by the commitment to a vision or cause.
Innovation - support for risk taking and innovation (Brown 2011:-402-406).
SELF ACTIVITY
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SOLUTIONS TO SELF-ACTIVITY
1. Identify and give examples from your experience of the major system-wide OD intervention
techniques.
Answer: Answers will vary but should include the following system-wide techniques.
Survey Research and Feedback: Feedback is used to diagnose problems and develop action plans
to alter organisation structure and work relationships.
The Learning Organisation: a system-wide change programme that emphasises the reduction of
organisational layers and the involvement of all employees in continuous self-directed learning
that will lead toward positive change and growth in the individual, team, and organisation.
Reengineering: the fundamental rethinking and radical redesigning of business processes to
achieve drastic improvements in performance.
System 4 Management: A continuum is used; the OD practitioner attempts to move functions
toward System 4, which is the most effective system.
High Performing Systems (HPS): An excellent human system that performs at high levels of
excellence.
The Grid OD Programme: Programme designed to change corporate culture. There are six
phases to the programme.
Third-Wave Organisation: Developed for the information age. Flexibility, creativity, and
innovation are characteristic.
2. Compare and contrast the reasons for successful and unsuccessful change programmes.
Answer: Successful change programmes consider the total organisation as well as its
subsystems. This chapter concentrated on total system interventions that view an organisation
examining (1) the way the organisation is designed, (2) the organisation’s work process, and (3)
the interaction of individuals and teams within the flows and structures of the system.
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Answer: Create teams where members have different perspectives and ideas. Break down
traditional barriers within the organisation. Build leadership skills throughout the organisation
and recognize that every member of the organisation has untapped human potential. Develop and
reward creative thinking throughout the organisation. Reduce distinctions between organisation
members including distinctions between line and staff, management and line workers, and
professional and nonprofessional. Remain nonjudgmental of others and their ideas; allow people
the freedom to take risks.
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CHAPTER FIFTEEN
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LEARNING OUTCOMES
READING 1
Study Brown (2011), pages 418-438) “Organisation Transformation and Strategic Change”.
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INTRODUCTION
This chapter will describe major OD strategic interventions and will include:
Organisation transformation
The corporate culture
Strategic change management
The success of great companies begins to work against them when the “pride of position” starts
to erode its base. Success can work against a company when it loses touch with its customers,
corporate visions then become blurred, and a large corporate bureaucracy hinders employees
from doing “productive work.” When organisations are in desperate need of change or else they
will face bankruptcy/takeover, radical changes may be the only choice. Organisational
transformation refers to drastic changes in how an organisation functions and relates to its
environment (Brown 2011:418).
ORGANISATIONAL TRANSFORMATION
The difference between organisation development (OD) and organisation transformation (OT) is:
OD strategies represent more gradual approaches to strategic change.
OT approaches are drastic, abrupt change to total structures, management processes, and
corporate cultures; they may or may not be developmental.
OT tends to use directive rather than participative approaches to change
This is usually a top-down, top-management driven process.
It requires a clear, shared vision, willingness to clean house, to reengineer and restructure,
and the ability to tackle many problems at once.
Research suggests the political dynamics of OT tend to be shaped by the use of power
rather than by collaborative, participative approaches.
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Due to immediate threat, this may be the best way (or only way) to bring the organisation
back into fit with its environment.
Strategies of Change
From these dimensions, four process change strategies have been identified:
Culture includes shared values, beliefs, and behaviours formed by the members of an
organisation over time. CEO’s words alone do not produce culture; the actions of managers do.
A corporation’s culture is its major strength when it is consistent with its strategies.
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Culture
Refers to a system of shared values held by members that distinguishes one organisation from
another. Core characteristics include:
Individual autonomy
Sensitivity to the needs of customers and employees
Support and assistance provided by managers
Interest in having employees initiate new ideas
Openness of available communication channels
Members are encouraged to be aggressive and risk-seeking
A strong culture is characterised by the organisation’s basic values being both intensely held
and widely shared. A weak culture may be seen in a relatively young company or one that
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has a high turnover of executives and employees. Culture is the product of key components:
structure, systems, people, and style (Brown 2011:423-429).
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Noel Tichy (2003) proposed the strategic change management model, which seeks to align the
organisation’s strategy, structure, and human resource systems to fit with the organisation’s
environment. Organisations are composed of technical, political, and cultural systems in
perpetual interaction with environmental change and uncertainty.
Strategic change management involves the alignment of systems to meet environment pressures.
Three steps to change are as follows:
Step 1: Develop image of desired organisation
Step 2: Separate systems and intervene separately in each one
Step 3: Plan for reconnecting three systems
An effective corporate culture can result in superior performance, but an organisation’s culture
may also inhibit the organisation from meeting competitive threats or adapting to changing
conditions. There are five reasons to justify large-scale cultural changes:
When the company has strong values that do not fit the changing environment.
When the industry is very competitive and changes with lightning speed.
When the company is mediocre or worse.
When the firm is about to join the ranks of the very largest.
When the firm is small but growing rapidly.
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Cultural change can be difficult and time consuming; major changes to the culture should be
attempted only after less difficult and less costly solutions have been ruled out (Brown 2011:429-
430).
SELF ACTIVITY
SUMMARY
Leadership in today’s fast-changing world involves developing innovative corporate culture: a
culture that recognizes employees’ needs, the firms’ history, th marketplace, and the company’s
products and services. Top managers invariably try to change. When the corporate culture is
resistant to change, OD strategies can be used to move the culture in a more innovate direction
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2. Suppose you receive a new job offer. What cultural factors would you consider in making a
decision?
Answer: Organisational culture can facilitate or inhibit change in the organisation. The strategy-
culture matrix helps managers develop strategies for implementing change. Four basic
alternatives in determining changes are: (l) manage the change; (2) reinforce the culture; (3)
manage around the culture; and (4) change the strategy to fit the culture (see Fig. 15.4).
4. Can you identify the characteristics that describe your organisation’s culture?
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CHAPTER SIXTEEN
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LEARNING OUTCOMES
READING 1
Study Brown (2011), pages 440-462) “Organisation Transformation and Strategic Change”.
INTRODUCTION
The final chapter in this module addresses the organisation of the future. In a world of global
competitiveness and technological innovation, organisations are reengineering, restructuring, and
flattening the hierarchy to meet market pressures. Leading organisations envision an endlessly
changing organisation.
There is acceptance and adoption of the change programme. It is important to guard against
deterioration and “fade out.” Reinforcement of the change is necessary and can occur with the
following: Participating employees and divisions see themselves as an elite group and sell the
benefits; they become “disciples” of the change. If the OD programme is initiated in one
division, the results are used to demonstrate the effectiveness to another division. Practice and
familiarity with the new methods help to reinforce the change and institutionalize it. Continued
assessment of change efforts during later periods helps to guard against degradation over time.
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OD efforts will more likely be successful when the following conditions exist:
Organisation is under pressure to improve.
Change begins at top of the organisation, which forces reorientation, and
reassessment of practices and problems.
Top management actively participates.
New ideas are developed at several levels of the organisation resulting in commitment
to change.
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THE FUTURE OF OD
The course of change anticipated for OD will surround the issues of a changing workforce,
global competence, and transformation within the organisation. Organisation development is an
expanding and vital technology. There is a need for more empirical studies on OD interventions.
There is a lack of ability for OD to deal effectively with external systems and power-coercive
problems. When the controversies over approaches and techniques subside, and when the
discipline becomes stagnant, then there will be an even deeper need to worry about the future of
OD (Brown 2011:449-450)
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SUMMARY
Managers need to understand that OD interventions have the potential to make the biggest
difference in human development and bottom-line performance. This module has examined the
practice and application of organisation development as an approach to planned change. It can
be concluded that OD is a growing, developing, and workable discipline. OD is not merely a
passing fad. It will continue to grow and be more widely used. The increasing need for
organisation transformation, high-performing teams, innovation, and empowerment suggests that
speed in making transitions is the critical issue facing organisations. OD practitioners must be
able to develop new and innovative ways of adapting to high-speed change.
SELF ACTIVITY
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Answer:
The organisation is under pressure to improve and top management is supportive.
Change begins at top of organisation with the support and involvement of top management.
Top management plays a direct role in the change programme. Commitment to change,
participation, and involvement is true of all levels of the organisation. A gradual change occurs.
Innovations are tested in one division before companywide introduction. Success reinforces
change.
Answer: OD is considered an emerging discipline. It has over 40 years of history. OD has also
developed several new approaches to innovations for organisations. OD has been used to
revitalize and renew companies through its approach to change.
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