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BUSN2007: Lecture 13

Introduction
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Organisational change and development

Why OD?
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Technological revolution Foreign competition Mergers, acquisitions Consumer demand Globalisation Organisation Development

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How to survive?
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What is OD?
Organization development is a long-term effort, led and supported by top management, to improve an organization’s visioning, empowerment, learning and problem-solving processes, through an ongoing, collaborative management of organizational culture —with special emphasis on the culture of intact work teams and other team configurations — utilizing the consultant-facilitator role and the theory and technology of applied behavioral science, including action research”. French & Bell, 1999

General Model of Planned Change
Planning and Implementing Change

Entering and Contracting

Diagnosing

Evaluating and Institutionalizing Change

Entering and Contracting
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What is organisational diagnosis?
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Entering an OD relationship
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Clarifying issues Collecting preliminary data

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n Preliminary diagnosis Determining relevant client

Selecting an OD practitioner Developing an OD contract
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Mutual expectations Energy and resources Ground rules

It is the collaborative process between organisational members and the OD consultant to collect pertinent information, analyse it, and draw conclusions for action planning and intervention.

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Organization-Level Diagnostic Model
Inputs
General Environme nt

Goals of Data Collection
Outputs Organization Effectiveness
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Design Components
Technology Strategy Structure

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Industry Structure

Valid information about org. functioning Rally energy for change Develop collaborative relationship

Culture

HR Systems

Measurement Systems

What is an intervention?
Feedback Occurs No NO CHANGE Yes Is energy created by the feedback? Yes What is the direction of the energy?

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Energy to deny or fight data

Energy to use data to identify and solve problems

An intervention is a set of sequenced and planned actions or events intended to help the organization increase its effectiveness. Interventions purposely disrupt the status quo.

RESISTENCE ANXIETY NO CHANGE

FRUSTRATION FAILURE NO CHANGE

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Do structures and processes exist to turn energy into action? Yes CHANGE

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Note: D. Nadler, (1977). Feedback and OD

Characteristics of Effective Interventions
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Effective interventions are:
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Is it relevant to the needs of the organization? n Valid information n Free and Informed Choice n Internal Commitment Is it based on causal knowledge of intended outcomes? Does it transfer competence to manage change to organization members?

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Based on valid information re. the organisation’s functioning Provides opportunity for members to make free and informed choice Gains members internal commitment to these choices

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Design factors:

How to design effective interventions?

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Contingencies Related to the Change Situation
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Readiness for change Cultural context Capability to change Capabilities of the Change Agent

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Contingencies Related to the Target of Change

Change Management Activities
Motivating Change Creating Vision Developing Political Support Managing the Transition Sustaining Momentum Effective Change Management

Motivating Change
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Creating Readiness for Change n Sensitize the organization to pressures for change
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Identify gaps between actual and desired states

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Convey credible positive expectations for change Overcoming Resistance to Change
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Provide empathy and support Communicate Involve members in planning and d.m.

Creating a Vision
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Discover and Describe the Organization’s Core Ideology n What are the core values that inform members what is important in the organization? n What is the organization’s core purpose or reason for being? Construct the Envisioned Future
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Managing Political Support
Assess Change Agent Power n Identify Key Stakeholders n Influence Stakeholders
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What are the bold and valued outcomes? What is the desired future state?

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Managing the Transition
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Sustaining Momentum
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Activity Planning n What’s the “roadmap” for change? Commitment Planning n Who’s support is needed, where do they stand, and how to influence their behavior? Management Structures n What’s the appropriate arrangement of people and power to drive the change?

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Provide Resources for Change Build a Support System for Change Agents Develop New Competencies and Skills Reinforce New Behaviors Stay the Course

Indicators of institutionalization Knowledge n Performance
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Degrees of institutionalization

Preferences n Normative Consensus
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Value change

Knowledge Performance Preferences Normative consensus Value change

Final Exam Questions
Please note that several multi-choice questions will be reviewed in class, some of which will appear in the final exam

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