Odib 2018

Organisational Development and
Institutional Building
Prof Tejaswini_Course Faculty ODIB

• Subject Code: C23
• Work load: 4 hours per week
• Credit Points: 4
• Subject Code - C23
• Contact Hours - 60 hours
• Internal Assessment – 50 marks
• External Assessment – 50 marks
COURSE OBJECTIVES (CO)
To develop an understanding of the

underlying concepts, strategies and
issues involved in Organizational
Development, Change Management
and Institutional Building.
To analyse the multiple perspectives of

organisational change using different
OD interventions
To make them capable of managing

the behavioural changes of the
stakeholders based on their knowledge
on OD and CM
To analyse the Role of leader in

Institutional Building and Change
Management
1. Gain a general understanding and Apply OD interventions for
Organisational Effectiveness
2. Reflect on the need for change in the current economic climate

and apply change concepts to a different case examples and
transfer this knowledge to different working environment
3. Students will be able to analyse the significant dimensions of

Institution Building Process
S. No. Evaluation Item* Unit of Evaluation Weight Time Cordinators
30th ,31st ,32nd Chaitra

1 Book Review Team 10 ,33rd Hannah
Nelson
22nd ,23rd Jecintha
Mini Project on ,24th Sameer
2 Team 5
Change Management Nanda
Sandeep
39th and 41st Neha
session
Case Analysis on
Rashmi
1. Action Research
Approach in Org
3 Change Individual 5
2. Survey Feedback
as an OD
intervention
Test 48th Suhana
4 Individual 5
Pre- reads
On – Going Swati
Starts from Amruth
day - 1 Apeksha
Activity on
Nidhi
OD –
Rajashekar
5 Training as Team 5
an
intervention
On - Going
6 CP Ongoing 5
7 Attendance 10
8 GMG 5
The Challenges
for Organisation
Prof Tejaswini_Course Faculty ODIB 7

Companies are pouring money, technology, and management expertise
into regions that were once off limits, acquiring new enterprises, forming
joint ventures, creating new global businesses from the ground up.
Many major companies are going through significant changes, including

outsourcing, downsizing, reengineering, self-managed work teams,
flattening organizations, and doing routine jobs with automation and
computers.
To increase productivity, enhance competitiveness and contain costs,

organizations are changing the way they are organized and managed.

The successful twenty-first century manager must deal with a chaotic world
of new competitors and constant innovation
In the future the only winning companies will be the ones that respond
quickly to change.
Modern manager must not only be flexible and adaptive in a changing

environment but must also be able to diagnose problems and implement
change programs.

Who has to change ???
Illustration in OD…!!

Defining Organisational
Development
Definition of Organizational Development
Beckhard’s Definition: OD is an effort (1) planned, (2)

organization-wide, and (3) managed from the top, to (4)
increase organization effectiveness and health through (5)
planned interventions in the organization’s ―processes,‖ using
behavioral science knowledge.
Globalisation
IT
Managerial Innovation
Historical Development of OD
Laboratory Training / t-group
Current Practice
Action Research/Survey Feedback
Normative Approaches
Quality of Work Life
Strategic Change
1950 1960 1970 1980 1990 2000 Today
• Able • Intelligent
• Accepting • Introverted
• Adaptable • Kind
• Bold • Knowledgeable
• Brave • Logical
• Calm • Loving
• Caring • Mature
• Cheerful • Modest
• Clever • Nervous
• Complex • Observant
• Confident • Organized
• Dependable • Patient
• Dignified • Powerful
• Energetic • Proud
• Extroverted • Quiet
• Friendly • Reflective
• Giving • Relaxed
• Happy • Religious
• Helpful • Responsive
• Idealistic • Warm
• Independent • Wise
• resourceful • Searching
• Sympathetic • Self-assertive
• Tense • Self-conscious
• Trustworthy, Sentimental, Smart, Silly, Shy • Sensible
Laboratory Training / T- group
T- group is a small, unstructured group in which

participants learn from their own interactions and
evolving dynamics about such issues as interpersonal
relations, personal growth, leadership, and group
dynamics.

Laboratory Training
• 1946 – Kurt Lewin and his staff at Research center for Group
Dynamics at the Massachusetts Institute of Technology were
asked by the congress community to train the community
leaders.
• Workshop was developed and all community leaders were

brought together to learn about leadership and to discuss
problems.
• At the end of each day, researches discussed privately what

behaviors and group dynamics they observed.

T- Group Training
• Conclusions of the program

– Feedback about group interaction was a great learning
experience.
– The Process of “ Group Building “ had potential for
learning that could be transferred to “back-home”
situations.

T-Group Training
• Naval Research and the National Education Association
provided financial backing to form the National Training
Laboratories.
• In 1950s three trends emerged

– Emergence of regional laboutories
– The expansion of summer program sessions to year-
round sessions
– The expansion of T group into industry and business.
– McGregor, Robert Blake( Exxon Mobile ), Richard
Beckhard ( General Mills) termed the word
Organizational Development

Action Research & Survey Feedback
Background
- It constitutes the second major stem in the
history of organizational development.
- This approach is developed by staff members
of survey research center of the University of
Michigan.
- There are two important contributions in this
field they are as under.
- Rensis Likert
- Floyd Mann
Survey Research
Kurt Lewin formed the Research Center for Group
Dynamics at MIT in 1945.
After he died in 1947, his staff moved to the

University of Michigan to join the Survey Research
Center as part of the Institute for Social Research.
It was headed by Rensis Likert, a pioneer in

developing scientific approaches to attitude surveys
(five-point Likert scale).

Action Research Stem
In the 1940s John Collier, Kurt Lewin, and William Whyte
discovered that research needed to be closely linked to
action if organizational members were to use it to manage
change. Action research has two results:
1) Organizational members use research on themselves to guide
action and change, while
2) Researchers were able to study the process to gain new
information.

Action Research Stem
• The major findings of the survey were first reported to the top
management and then transmitted to the organisation.
• Feedback sessions were conducted in task groups
• Repeat of the survey
• Significant positive changes were seen in terms of Job

Satisfaction.
• Data Collection, Data Feedback, Action planning,

implementation and follow-up of data collection were done in
action research and survey feedback.
Normative background
A Human Relations Approach represented “ one
best way “ to manage organizations.
This included
Likert’s Participative Management style and
Blake and Mouton’s Grid OD Program with org
Effectiveness.

Normative background
Likert’s Participative Mgt Program characterized org as having
one of four types of management systems
Exploitive authoritative system – Top Down Approach
Benevolent authoritative system – Mgt is more paternalistic and

similar to exploitative
Consultative systems – Employees are involved, final decision is

with management, employees are moderately satisfied
Participative systems

Blake and Mouton’s Grid

Productivity and Quality of Work Life
• Organizations are open sociotechnical
systems
– Organize around process – not tasks
– Flatten the hierarchy
– Use teams to manage everything
– Let customers drive performance
– Reward team performance
• Open to interact with its environment
– Five Components

– The structural subsystem
• Formal design policies and procedures – division of work and
patterns of authority
– The technical subsystem
• Techniques, equipt., used to produce the output
– The Psychosocial subsystem (culture)
• Social relationships, behavioral patterns, norms, roles
– The goals and values system
• Basic mission and vision of the organization
– The managerial subsystem
• Spans entire organization by directing, organizing, and
coordinating all activities directed toward the basic mission

• Joint participation by unions and management
• Job Enrichment
• Self managed teams
• Labor management committees
• This lead to the evolution of Employee Involvement,

Total Quality Management, Six Sigma programs
rather than QWL

Strategic Change Background
Strategic Change involves improving the
alignment among an orgs environment,
strategy, and org design.
• Merger and Acquisition

• Alliance formation
• Network Development

Steps in Organisational Develpoment
Need for change

The entry of the Change agent
Development of the consultant-client relationship by clarifying
mutual expectations and goals of the contract
Information collection by the consultant to asses the state of the
organization
Joint Diagnosis of problems by the consultant and client based on data
analyzed
Development of action plans and strategies to bring about change or
improvement
Implementation of the action plans
Monitoring and reviewing the progress of the actions
Stabilization of the changes
Termination of the client-consultant contract
OD in practice..!!
• Backward, forward, horizontal and vertical
integration from branded textiles to petrochemicals
and oil refinery.
• Restructuring
• Technology savvy, state of art technology
• Global Player
Tatas
• Tata house acquired Tetley Tea of UK
Chempcorp
• Large public corporation – Chemical industry –
Western India
• OD consultants – V Nilkant and S Ramnarayan – 1998
• New Chairman and MD was appointed by the govt.
• Diagnostic tools – Unstructured, informal interviews
• Problem identified – suspicion, discontent with
personnel policies and promotions
• He identified the need of training the staff
• Workshop for the Chairman and MD and his directors
• 1988-89 wanted to being improvements in org
culture and HRD functions
• External consultant.
• Survey was conducted by internal team
• Impression towards org structure, employee
satisfaction, communication, appraisals, training,
promotion
• The results was presented to top mgt
• Annual meetings of two days for senior managers
• Decision was taken
• Career planning
• Org Climate survey
• CEO took over company when it was not doing well
• Turnaround – downsize, increase accountabilities,
close supervision, monitoring, cost effectiveness
• Successful
• Survey on perception of leadership style
• In-depth study
• CEO shared information with all the employees
• CEO took down the line
Models in OD

Lewin’s Change Model
• According to Lewin, any living system is always in a state of
change.
• Equilibrium is achieved by two sets of forces pushing in
opposite directions.
• One set strives to maintain the status quo while the other
pushes for change.
• When the two sets are about equal, equilibrium or present
levels of behaviour are maintained.
• In order to change the equilibrium, either the set of forces
maintaining the status quo has to be weakened, or the set
pushing for change has to be strengthened, or both.
• Weakening the forces that maintain status quo brings about
less tension and resistance compared to increasing forces for
change.

• Unfreezing: This involves reducing the forces that
maintain behavior at present levels.
• In a group process, this can be initiated by getting key
individuals to brainstorm and prepare a desired state
outline, agree on where they want to take the company
in the future and what behaviors will be necessary to get
them there.
• The next step is to highlight the discrepancy between
present and desired behavior.
• This often weakens the maintaining forces and gets the
unfreezing process started.

• Moving: This step shifts the behavior of
the organization, department or
individual to a new level.
• It involves intervening in the system to
develop new behavior, values and
attitudes through changes in
organizational structure and processes

Refreezing: This step stabilizes the
organization at a new state of equilibrium. It is
frequently accomplished through the use of
supporting mechanisms that reinforce the
new organizational state, such as
organizational culture ,norms, policies and
structures.

Action Research Model
Problem Identification Joint diagnosis
Consultation with a
behavioral scientist Joint action planning
Data gathering & Action

preliminary diagnosis
Data gathering after

Feedback to Client action

• Problem Identification: This stage usually begins when a key
executive in the organization or someone with power and
influences sense that the organization has one or more
problem that might be solved with the help of an OD
practitioner.
• Consultation with a behavioral science expert: During the
initial contact, the OD practitioner and the client carefully
assess each other. The practitioner has his or her normative
development theory or frame of reference and must be
conscious of those assumptions and values. Sharing them
with the client from the beginning establishes an open and
collaborative atmosphere.

• Data Gathering and preliminary diagnosis: This step is usually
completed by the OD practitioner, often in conjunction with
organization members. It involves gathering appropriate
information and analyzing it to determine the underlying
causes of organizational problems.
• The four basis methods of data collection are interviews,
process observation, questionnaires and organizational
performance data.
• Feedback to a key client or group: Because action research is
a collaborative activity, the diagnostic data are feedback to
the client, usually in a group or work team meeting.

• The feedback step, in which members are given the
information gathered by the OD practitioner, helps them
determine the strength and weaknesses of the organization or
the department under study.
• Joint diagnosis of the problem: At this point, members
discuss the feedback and explore with the OD practitioner
whether they want to work on identified problems.
• A close interrelationship exists among data gathering,
feedback and diagnosis because the consultants summarizes
the basic data from the client members and resents the data
to them for validation and further diagnosis.

• Joint action planning: The OD practitioner and client
members jointly agree on further action to be taken. This is
the beginning of the moving process as the organization
decides how best to reach a different equilibrium.
• At this stage, the specific action to be taken depends on the
culture, technology and environment of the organization; the
diagnosis of the problem and the time and expense of the
intervention.
• Action: This stage involves the actual change from one
organizational state to another. It may include new methods
and procedures, reorganizing structures and work design and
reinforcing new behaviors.

• Data gathering after action : Because action
research is a cyclical process, data must also
be gathered after the action has been taken to
measure and determine the effects of the
action and feed the results back to the
organization . This in turn, may lead to
rediagnosis and new action.

General Model of Planned Change
Planning Evaluating
Entering and and
and Diagnosing Implementing Institutionalizing
Contracting Change Change

• Entering and contracting:
– The first set of activities in planned change concerns
entering and contracting.
– Those events help managers decide whether they want to

engage further in a planned change program and to
commit resources to such a process.
– Entering an organization involves gathering initial data to

understand the problems facing the organization or the
positive opportunities for inquiry.
– Once this information is collected, the problems or

opportunities are discussed with mangers and other
organization members to develop a contract or agreement
to engage in planned change

• Diagnosing:
– In this stage of planned change, the client system is
carefully studied.
– Diagnosis can focus on understanding organizational

problems, including their causes and consequences or an
identifying the organizations positive attributes.
– The diagnostic process is one of the most important

activities in OD.
– It includes choosing an appropriate model for

understanding the organization and gathering, analyzing
and feeding back information to managers and
organization members about the problems or
opportunities thatProfexist.
Tejaswini_Course Faculty ODIB 53
• Planning and implementing change:

– In this stage, organization members and practitioners jointly plan
and implement OD interventions.
– They design interventions to achieve the organizations vision or
goals and make action plans to implement them.
– There are several criteria for designing interventions, including the
organizations readiness for change, its current change capability,
its culture and power distribution and the change agents skills
and abilities.
- Human resource interventions at the individual, group and total
system levels.
- Interventions that modify an organizations structure and technology.
- Human resource interventions that seek to improve member
performance.
- Strategic interventions that involve managing the organizations
relationship to its external environment.
• Evaluating and institutionalizing change:
– The final stage in planned changed involves evaluating the
effects of the intervention and managing the
institutionalization of successful change programs.
– Feedback to organization members about the

interventions results provides information about whether
the change should be continued , modified or suspended.
– Institutionalizing successful changes involves reinforcing

them through feedback , rewards and training.

Case - 1
The company sees that the staff seems to be
pulling the company in separate directions
and some members have trouble cooperating
with others.

Case - 2

Process in OD
Entering & Diagnosing Diagnosing Collecting

Contracting Organizations Groups & Jobs Diagnostic
Information
Feeding Back Designing OD Managing Evaluating &

Diagnostic Data Interventions Change Institutionalizing
Change

OD experiences- A case for
enriching HRD through OD
Discussions
Analyzing definitions of OD
What qualifies to be called as an OD
activity ?
Pre – requisites for an OD activity
OD as an intervention @ TCS
The Pre-OD Scenario: Our Strengths
and Areas of Concern
Mounting revenue pressures
Selectivity in projects
Rewards and Recognitions

Voices for OD
Voice of Wealth
Voice of Employee
Voice of Customer
Voice of Technology
Scenario Building Workshops
“The TCS that can be “.

Goal Alignment & Balanced Scorecard
PROPEL – The Intervention: Culture
Building at TCS
Confluences: Listening to the voice of the employee in a team
scenario, by creating a platform for open sharing of thoughts on a
relevant theme. This is achieved through a balance of fun,
introspection and interaction, while evoking commitment to
selfdevelopment.
Camps: Platform for problem solving, focus on the Quality, Cost

and Delivery measures of throughput resulting in transfer and
adoption of best practices within and amongst relationships in the
organization.
Value Cards at the Large Relationship
1. The situation summary was charted out
2. Improvement goals, action plans and owners of
each plan were
identified
3. Success measures were identified against the
dimensions of
Valuing, Strategizing, Improving, for each actionable,
along with
timeframe for closure
4. Impact was analyzed in terms of short term and
long-term actions
Darpan - Reflect and Improve
A Questionnaire was used to collect the preliminary
data, as a structured mechanism to capture associate
feedback across 5 categories: Career & Job,
Communication, Culture & Pride, Leadership and
Supervisor.
Institution Building
Organization
• An organized group of people with a particular
purpose, such as a business or government
department
• An organization comes into existence in order

to achieve a goal or a set of goals.
• Organizations are organic, they have a birth,

growth and finally, decay.
Institution
• Institutions are more

enduring, have capacity of
continuous growth, ability
to cope and adopt under
diverse pressures and pulls
to make thrust into the
future, in addition to having
an impact on the society or
community in which they
exist.
Institution
• Institution may be defined as a
responsive, adaptive organisation
which is a product of social needs
and pressures.
• It is a part of the larger system i.e.

the community or the society and
is a forward looking, adaptive and
proactive part of the community.
What is Institution Building?
• Institution building refers to transforming an
organisation into an integrated organic part of
the community, so that the organisation can
effectively play the role of projecting new
values and become an agent of change in the
community.
Factors influencing institution
building
• Goals or Objectives - Clarity or specificity of
the goals is basic to institution building
building
• People - Selection of the people for positions in the
organization should be in terms of a right fit between the
individual and the job.
– Two aspects are important in this context: task maturity
and psychological maturity.
– Task maturity refers to the extent to which the role
incumbent has the necessary job knowledge and skills
required on the job.
– Psychological maturity refers to zeal and enthusiasm to
work, commitment to the job and the organization,
confidence in ones’ own abilities to accomplish tasks
and responsibility for ones’ job.
building
• Design - Organisation is basically a system of
input process and output subsystems
• Organisational Culture
building
• Leadership at the Top Management Level - The leadership

style should be an amalgamation of the roles of a
‘developer’s and an ‘executive’
• Ability to Establish Effective, Operative Linkages with

External Environment is necessary for Institution Building
- Such a liaison helps in understanding the needs and
expectations of the external sub-system such as clients,
customers, suppliers, other organizations etc., to which the
institution has to finally cater to carve a niche for itself in
the environment
Institution Building : The Process
• Birth of an organization - Organizations originate at first, in
the minds of individuals, as an idea
• Survival and Sacrifice - The need to survive, makes heavy

demands on the entrepreneur’s money, confidence,
commitment, effort, personal time and even family life
• Stability - Organization should strive for an efficient work

culture based on discipline, reorganization or role
relationships, adequate employee compensation structure,
team-spirit and appropriate balance between short-term
and long-term perspectives. It should also strive to stabilise
its resources, customers, clientele
Institution Building : The Process
• Self-examination - regarding where the organization
stands in the eyes of the public, customers,
competitors
• Actualise its potentialities and to achieve

uniqueness
• Organization’s responsibility to society – a desire to

gain society's respect an appreciation and to improve
the quality of life of its own employees
Significant dimensions of institution–
building: self-renewal and innovation
Self-renewal refers to concentrated and
continuing efforts on the part of the
organization to relate its technology, structure
and people to problems confronting it from
political, economic and social changes.
Stages in self-renewal process
• Sensing of change
• Identification of the implication of these changes
• Deciding an appropriate plan of action
• Introducing the change.
• Stabilising the change
• Obtaining feedback on the outcome of change for further
sensing of the state of the external environment and the
degree of integration of the internal environment.
Innovation
• Innovation may be defined as a new idea or
practice or approach that helps the system or
the individual to deal effectively with a
problem or change.
• Innovation is possible if the organization has a

conducive environment for it to occur such as
openness flexibility, decentralisation
The role of chief executive
• Optimum utilisation of resources
• Creation of team spirit and work commitment
• Achieving a positive balance between
individual expectations and organizational
goals and demands
• Networking strategy
• Trusting strategy
• Caring strategy
Concepts of Change

Nature of Change
• Evolutionary Change
• Revolutionary Change
• Proactive vs reactive Change

Evolutionary Change
• It takes place one by one, seldom promote great
inclusion, evoke deep resistance, and gives dramatic
results.
• Its very slow process and the organization falls
behind the expectations
• For ex, many hospital and healthcare providers have
evolved by transforming their paper medical record
keeping to electronic medical record keeping due to
external financial incentives.
• Retail and food chains typical evolve by outside
pressure from competition. A new salad offering at
one chain of fast food restaurants and invariably a
salad offering is picked up by all the others
Revolutionary Change
• Revolutionary change is when the organization

anticipates a market change before it happens and
views these potential market changes as a business
challenge.
• Amazon is an organization that engages in revolutionary
change. The advent of the Kindle was revolutionary to
the book publishing and reading world. What was the
result? The result was a new market share and increased
profit margin.
• Amazon’s competition quickly engaged in evolutionary
change, copying the Kindle with their own version of an
electronic reader inProforder to survive and remain
Tejaswini_Course Faculty ODIB 89
Proactive and Reactive Change
• Proactive change is the change initiated by the
company because it is desirable to do so.
• Reactive Change is the change initiated in an

organisation because it is made necessary by
the outside force.

Examples
• Distributing customer satisfaction surveys, listening to
customers' concerns, and responding to social media
interaction are ways that proactive companies can
anticipate changing customer needs.
• Strengthening connections with customers in these ways
can inspire brand loyalty.
• Conversely, companies that wait to react to bad
customer service after the fact may not get back lost
customers is reactive change.
• They also open the opportunity for more attentive
competitors to prove they’re more assertive in
anticipating customer needs. Faculty ODIB
Prof Tejaswini_Course 91
• The Toro Company, Exmark Manufacturing
and Dixon Industries Inc. collectively recalled
62,000 faulty commercial riding mowers.
• These companies worked directly with their
dealers, distributors and customers during the
recall campaign to proactively fix or replace
the affected units already on the market.
• Nike is another example of a company that
took a proactive stance, responding to
criticisms about the labor conditions in the
company´s supply chain.
• Kingfisher, a company that owns the British
• The hotel executive creates a plan to reserve
certain rooms in many hotel locations for
travelers with pets and to advertise this new
amenity, even before travelers begin asking
about such accommodations.
• This would be a proactive response to change
because it was made in anticipation of
customer demand.
• However, a reactive approach to change
would occur if hotel executives had waited to
enact such a change until many hotel
managers had received repeated requests
from guests to accommodate their pets and
Pressure for Change – 8 winds of
change
• Global – next century companies will need to
look and deal beyond national borders as the
makeup of the global economy changes.
• Deregulations and Privatization - The

reduction or elimination of government power
in a particular industry, usually enacted to
create more competition within the industry.
Ex - the telephone and airline industries
• Resizing - The recession and credit crisis are
causing precipitous declines in consumer and
business demand. In response to declining
sales, many companies need to resize their
business and reduce costs in order to maintain
acceptable margins – or even just to stay
afloat. The main question is how far to go.
• Volatility – Companies should shift from

“Focused Factories” to “Flexible factories ” –
Shifting Markets.(Companies no longer justify
concentrating production on single product )
• Convergence – Firms must learn to move
beyond their traditional areas of expertise to
survive( technology )
• Intermediate business boundaries – The lines
btw sectors will continue to blur in the next
century.
• Standards – companies will set their own
standards and the most successful will
become industry-wide.
• Disintermediation – e-commerce
• Eco-sensitivity – compliance-oriented to
business-opportunity driven
Planned Change can be effective if
?
• Qualitative change – employees should have desire to change
themselves.
• Direction-oriented change – Its not much where you stand in
life, but in what direction you are moving.
• Identification of Variations in the adoption rates
– Innovators – 2.5% - adopt change readily
– Early Adopters – 13.5% - highly mootivated and need little
persuasion
– Early majority – 34% - sometime to prepare themselves for
change
– Late majority – 34% - very late to accept change
– Laggards – 16% never accept change
Different types of planned change
• Individual – Change in job assignment,
Transfer, Change in Maturity level
• Group – Trade unions, inefficient work
redesign, lack of communication
• Organizational – Strategic, Structural, Process-
oriented, People-oriented

Organisational Change
• Strategic Change – change in basic
objectives/missions of the organisation
• Process-oriented – Recent technological
developments, information processing, and
automation
• People-oriented – performance improvement,
group cohesion, dedication and self
actualization of employees
• Structural Change – Change in internal
structure of the organisation
• Google's business goal and strategy was to power partners
such as Yahoo! with a world-class search application.
• SC1: Occurred when Google realized that Search was a strong
enough application to attract its own customers (change in
market environment). While they vowed not to compete with
its partner, Yahoo! and become a portal, they built a search
property and began attracting its own share of customers.
• SC2: Google focused on building great consumer search
application. They had a search property that was attracting a
growing audience and world class engineers to solve complex
optimization problems (change in assets and capabilities).
Google decided to leverage these capabilities to build its own
ad monetization platform called AdWords.
• SC3: Google focused its resources on driving consumer search
but eventually decided it was important to keep consumers
from leaving its search property so it began to invest in email100
Levels of change
• Knowledge
• Attitudinal
• Behavioral
• Group / Organistaional performance

Change Agent
• A change agent is a consultant who
– Identifies need for change
– Identifies area where change is required
– Identifies what change should be made
– Helps the management in the implementation
process if required

Types of change agents
• Internal change agent
• External change agent
• Need for internal and external agent

Key roles in Oragnisational Change
• Corporate Management
• Consultant(s)
• Internal Resource Persons
• Implementation team
• Chief Implementer
• Task Force

Differences between Internal and
External Change Agents
ECA ICA
• Outside consultant • Inside Consultant
• Professional • Not always professional
• Works for a limited period • Working period is not
• Hiring ICA id expensive limited
• Outlines the change process • Economical
• He recommends • Implements change
• He gives the objectives of • Linkage btw consultant and
change process organisation
• He is experienced • In-depth knowledge
• He s expert and • Less expertise
• Less experienced
knowledgeable
Characteristics of change agent
• Empathy
• Linkage
• Proximity
• Structure
• Openness
• Energy
• Synergy

What can change agents change
• Structure
• Technology
• Physical setting
• People
• Work Place

Change Management
It is the process, tools and techniques to
manage the people-side of change
processes, to achieve the required
outcomes, and to realize the change
effectively within the individual change
agent, the inner team, and the wider
system
Change Management is a two ways process
1. Change as continuous and intrinsic to an organization.

a. Change that occurs are minute in nature but take
place continuously.
b. Change arises out of change in one element impacting on
related elements and thereby the whole configuration
of the organization
2. Change as extrinsic and discontinuous
Change due to natural factors. They occur so fast that it does
not permit sufficient time for individual and organizations
to cope with them.

Force of Change
External forces Internal factors
1. Political forces 1.System
2. Economic forces 2.Inadequacy of
administrative
3. Technological process
forces 3.Resource constraints
4. Increased global 4.Person focused
competition change.

Forces of Change in Indian Petroleum products industry
Imperatives for petro-retailers

Forces of change
Revenue
Alternate revenue lines
Customer Price management
Increase throughput
Profit Increase brand equity
Forces of Reduce customer churn
change
Costs
Reduce dependence on COCO*
Reduce investment in retail
Reduce personnel intensity in retail
* COCO – Company Owned Company Operated
Resistance to Change by Employees
1. Lack of involvement in the process;

2. Lack of knowledge about the change;
3. Insecurity about the future as a result of
the change; and
4. Feelings of powerlessness to control
their own destinies.

Process to Overcome Resistance to Change –
Live Demo
Planning—Identify the issue to investigate and assemble the
change steering committee.
Assessment—Determine whether there is a gap for the
Organization between the present state and the desired state.
Analysis—Decide on the means to bridge the gap.
Design—Configure the objective for the change initiative.
Development—Prepare everything for the change: the systems,
the people, the materials.
Implementation—Put the plan into effect.
Evaluation—Track and measure the effectiveness of the change.

Overcoming Resistance to Change by Employees at
Ispat Industries Ltd
• To prevent the change process from going haywire in
an organisation, it is vital to understand the role of
communication, which is probably the most
important skill that managers need to have in order to
be effective.
• Participation which is another key to the change
process.
• Since change is unavoidable in today's business
environment, employees must be prepared to
maximize benefits and reduce negative impacts from
the change process.
Why Change Management is Essential to
the Business
1. To be competitive in the business
2. To increase the revenue of the organization.
3. To increase the employee satisfaction.
4. To increase the market share of the company.
5. To be leader in the business

Managing Change: Strategies that Work
Case of SEAT Italian Yellow Pages.
Background of the case:

SEAT Pagine, the Italian Yellow Pages. When an Internet start- up
began attacking SEAT's core business in business-to-consumer
advertising, the company was caught off-guard. SEAT CEO Lorenzo
understood the threats presented by the Internet, but he also understood
the opportunities for his business.
Process of change:
Lorenzo cut costs dramatically, yielding 100 million Euros in savings in the
first year. He introduced customer segmentation and sophisticated marketing
programs to a monopoly-oriented organization.

Process of change:
- Finally, he sold the company's main printing plant
(Europe's largest), outsourced manufacturing, and
restructured the sales force. The message was clear:
SEAT's future rested in sales, communication, and
efficiency, not industrial printing.
- As he shored up the core business, Lorenzo also
introduced a series of Internet-based initiatives,
including an audio version of the yellow pages.

Results:
In less than three years, Lorenzo transformed SEAT
from a sleepy paper-based monopoly into a consumer-
focused publisher with the leading Internet portal in
Italy. When SEAT's owners sold the company in
September 2000, investors saw a more than thirty-fold
return. As a subsidiary of Telecom Italia, SEAT has
continued to outperform other players in its industry.

Types of Change
Happened change:
This is change that is rather unpredictable and that
takes place naturally due to external factors.
For example: Political changes, in the case of
Uganda, president passed the order to foreign
companies in the country were forced to close down
and leave the country. This change was
unimaginable to foreign companies operating in
Uganda.

Types of Change
Reactive Change:
Changes that are clearly in response to an event or a
series if events are termed reactive. Generally, most
companies are engaged in reactive.
For example: The case of Shell Canada’s
polypropylene plant provides an example. In this case ,
the plant design was new in both its technical and work
design. The incorporation of the latest technology was
in reaction to the increased demand for the product.

Types of Change
Anticipatory Change:
Change carried out in expectation of an event or
a series of events is called anticipatory change.
For example: In the year 1938, Pepsi announced
that it would invest in Mexico $ 750 million over
five year to increase its market share.

Types of Change
Planned change:
Planned change or development change is undertaken to
improve upon the current ways of operating. It is calculated
change, initiated to achieve a certain desirable output
/performance and to make the organization more responsive to
internal and external Demand.
For example: In the year 1993 Volvo changed the job through
and introduced work groups this was introduced to increase the
productivity of the workers

Types of Change
Incremental Change:
Changes directed at the Micro level and focused on
units/subunits/components within an organization are
termed incremental changes. Changes are brought in
gradually and are usually adaptive in nature.
For example: Japanese organizations bring in
innovations in gradual stages.

Types of Change
Operational Change:
This is necessitated when an organization needs to
improve the quality of its products or services due to
external competition, customers changing requirements.
The change focuses on how to improve existing
operations to perform better.
For example: Quality management, better distribution
and delivery of products and enhancing
interdepartmental coordination.

Types of Change
Strategic change:
Change that is addressed to the organization as a whole
or to most of the organizations components, including
strategy .
For example: Toyota changed its overall corporate
management philosophy in an attempt to create an
organization which is less hierarchical, flexible,
Decentralized.

Types of Change
Directional Change:
A change in direction may become imperative for an
organization due to severe competition or regulatory
shifts in government policy and control. It is critical
when the organization is developing a new strategy and
make the current operations effective.
For example: Development of R & D activities for
becoming more competitive.

Types of Change
Fundamental Change:
This entails a redefinition of the current purpose or
mission of the organization. It may be necessitated by
drastic changes in the business environment , the failure
of the current corporate leadership, problems with
employee , or a low turnover

Types of Change
Total change:
For total change, the organization is constrained to
develop a new vision and a strong link between its
strategy, employees and business performance. The
organization has to achieve a turnaround or perish. Total
change is necessary to extricate the organization from
the
root that has set in due to long term failure of business.
A new vision and drastic surgery could be the only way
out for the organization.
Types of Change
Transformational Change:
Such a change involves the entire or a grater part of the
Organization. It could be a change in the shape (size),
structure( systems, ownership) or nature ( culture,
Technology). The conditions that prompt organizational
transformation are:
- Severe threat to survival.
- The current organizational strategy ,design and
functions don’t meet the external threat.

Types of Change
Transformational Change (cont..):
The types of change that could be labeled
transformational are:
- Organization could shift from being product driven to
being technology or customer driven.
- Moving from bureaucratic management.
- Introducing automation, robotics and other advanced
technology.
- A change in organizational norms and culture
Types of Change
Revolutionary change:
Abrupt changes in organizational strategy and design
represent revolutionary change, such change comprises
3 Es.
- Envisioning: which is to articulate a clear and
credible vision and a new strategy to realize the
vision.
- Energizing: which is the mobilizing of employees,
individually and collectively, as well as
demonstrating and inculcating the excitement for
change

Types of Change
Revolutionary change (cont..)
- Enabling : which is to provide the necessary
resources, support structures and processes.
For example, the appropriate information
systems, suitable changes in administrative
policy and procedures , a fitting
compensation/reward system, a task force,etc.

Managerial Role and Change Management

Change management at TCS
• TCS is in an industry where technology very frequently
changes every 18 months.
• Fortunately, TCS, as on organisation, has the capacity to
absorb technology changes in terms of training our people in
these newer technologies.
• So there is a well-ingrained process of managing change in
terms of technology management and how it is absorbed in the
institution itself.
• The other aspect of change management is how we build
project management skills in today’s context.
• Here again, we have an institutionalised system of getting
people to quickly build capabilities in new domains and with
quality.

• The curriculum development, to address the new requirements
that these changes bring about, comes to us through a number
of ways.
• First is through our client base. As they make changes and
introduce new products and services, we build change
capabilities through a continuous dialogue with them.
• It is here that long-term client relationships matter most.
• The second is our interaction programme with academic
institutions in the US, Europe and India in a research
dimension. The third is our integration with technology
companies.

• It is a combination of all these factors that determines our set
of priorities with respect to investments, training, continuing
education, asset building, marketing, and research and
development.
• So change is not something that worries us, because that’s the
industry in which we live, that’s the way we practice. We can
very quickly adopt new ways of building software. We can
quickly integrate new technology into existing applications.
That’s our business.

Difference between Change Management and
Organizational Development

The Organization Development
Practitioner

Practitioner
• Organizational development practitioner refers to at
least three sets of people.
• OD practitioners are those people specializing in OD
as a profession.
• Firstly, they may be internal or external consultants
who offer professional services to organization
clients, including top managers, functional
department heads and staff groups.

Practitioner
• Secondly, the term OD practitioners applies to people
specializing in fields related to OD, such as rewards
systems, organization design , total quality ,
information technology and business strategy.
• These content oriented fields increasingly are
becoming integrated with OD’s process orientation,
particularly as OD projects have become more
comprehensive involving multiple features and
varying parts of organizations.

Practitioner
• Third, the term OD practitioner applies to the
increasing number of managers and administrators
who have gained competencies in OD and who apply
it to their own work areas.
• Studies and recent articles state that OD applied by
managers rather than OD professionals is growing
rapidly.
• As the pace of change is fast, it is better to develop
internal resource i.e. internal skills of a managers in
managing change in the organization.

Competencies of an OD Practitioner
• The competencies of an effective OD practitioners
reveals a mixture of personality traits , experiences,
knowledge and skills are required to lead to effective
practice of OD in the organization.
• The Organization Development and Change Division
of the Academy of Management list of OD
practitioners competencies.

Foundation Competencies Core Competencies

Knowledge: -Organization design
-Organizational behavior -System dynamics
-Individual psychology -Interviewing skills
-Group dynamics -Survey skills
- Management and organization -Research models
theory -Data collection and analysis
- Research methods -Information flow and analysis
-Cultural perspective -Leadership theories and skills
-Functional knowledge of business -Change typologies

Foundation Competencies Core Competencies
Skills -Managing the consulting process
-Analyzing
-Choosing relevant interventions.
-Ability to assist an individual
- Ability to conduct change process as
the per the requirement of the client.
-Evaluating organization change.

The Professional Organization Development
Practitioner
Position:
- Organizational development professionals have positions that
are wither internal or external to the organization.
- Many large scale companies have appointed fulltime OD
professionals in their organizations – Procter and Gamble, Tata
group, HLL,etc..
- When the organization looks at these consultants may be its
internal and external consultants they bring with them
Knowledge and experience.
- The stage in which external and internal OD professional
included are provided in the table (next slide .

Practitioner

Practitioner

Practitioner

Practitioner

Practitioner

Entering and Contracting

Entering into an OD Relationship
• An OD process generally starts when a
member of an organisation or unit contacts an
OD practitioner about potential help in
addressing an organisational issues.
• Clarifying the organisational issue

• Determining the relevant client
• Selecting the appropriate OD practitioner
Clarifying the organisational
issues
• Problem v/s Symptom
• Collecting preliminary data ( company records,
interviews with key people )

Determining the relevant client
• Relevant client for addressing the
organisational issues .
• personnel, members from multiple units,
hierarchy, and even from outside the
organisation

Selecting an OD practitioner
• Expertise, Technical Skills, Openness, and
Experience
• Proposal
– Project Goals
– Outlines of action plans
– A list of roles and responsibilities
– Recommended interventions
– Proposed Fees and expenses

Developing a Contract
• Expectations of the parties, the time and
resources that will be expended and the
ground rules under which the parties work.
• Mutual Expectations – Appropriate

compensation andrecognition

Time and Resources
• Clients want to know how much time will be
necessary to complete the assignment, who
needs to be involved, how much it will cost.

Ground Rules
• Confidentiality, Organisational Politics, how to
handle sensitive information, and how to
deliver bad news.

Diagnosing Organizations

Diagnosing Organizations
• It is the process of assessing the functioning of the
organization, department, group or job to discover the
sources of problems and areas of improvement.
• It involves collecting pertinent information about

current operations, analyzing those data and drawing
conclusions for potential change and improvement.

160
Diagnosis Defined
Diagnosis is a collaborative process between

organizational members and the OD
consultant to collect pertinent information,
analyze it, and draw conclusions for action
planning and intervention

The need for diagnostic model

Open Systems Model
Environment
Inputs Transformations Outputs

• Information • Social Component • Goods
• Energy • Technological • Services
• People Component • Ideas
Feedback

Organizations as Open System
Inputs:
• Inputs consist of human or other resources
such as information, energy and materials.
• For manufacturing organization acquires raw
material from an outside supplier.
• A hospital nursing unit acquires information
concerning a patients conditions from the
attending physician.

Transformations:
• The processes of converting inputs into outputs.
• In organizations, a production or operations function
composed of both social and technological
components generally carries out transformational.
• The social component consist of people and their
work relationships. Whereas the technological
component involves tools, techniques and methods of
production or service delivery.

Transformations:
• Organizations have developed elaborate
mechanisms for transforming incoming
resources into goods and services.
• Transformations also can take place at the
group and individual level. For example,
research and development department can
transform the latest scientific advances into
new product ideas.

Outputs:
• They are the results of what is transformed by
the system and sent to the environments.

AsiaTel Case on Open System
Problem:
• AsiaTel, a leading provider of telephone services in a
Southeast Asian country, had lost its footing. In a rapidly
changing competitive environment, it was faring poorly. Profit
margins, share price were all declining.
• Internal problems were at the root of AsiaTel's financial
troubles. The company was dragged down by low employee
productivity, lack of customer focus, a monopoly culture and
paternalistic management.
• Bain Consultants were asked to help AsiaTel articulate a clear
vision and overhaul the drivers of productivity.

Approach:
• The change program at
AsiaTel spanned four
years and included
defining the redesign
project, implementing it
and tracking progress.

Recommendations:
• More than 50 cost and
service initiatives were
launched, which
improved productivity
by 400 percent.

Results:
After substantially
reducing headcount and
capital expenditures and
increasing productivity,
AsiaTel was rewarded
with investor
confidence.

Organization-Level Diagnostic Model
Inputs Design Components Outputs

Technology
General
Organization
Effectiveness
Environment Strategy Structure
Industry
Structure
HR Measurement
Systems Systems

Inputs:
General environment :PESTLE Analysis
• It represents the external elements and forces that can affect
the attainment of organization objectives.
• It can be described in terms of the amount of uncertainty
present in social ,technological,
economic,environmental,logical and political forces.
• The more uncertainty , the more difficult it is to design an
effective strategic orientation.

Industry structure:
• It is another important input into strategic orientation.
• Michael porter defines these aspects related to industry

structure.
• Five Force Model

Design Components:
Strategy
• It represents the way an organization uses its
resources to gain and sustain a competitive
advantage.
• It includes mission, goals and objectives and

functional policies.

Technology:
• It is concerned with the way an organization converts

inputs into products and services.
• It represents the core of the transformation function

and includes production methods, work flow and
equipment.

Structural system:
• It describes how attention and resources are focused
on task accomplished
• It represents the basic organizing mode chosen to

divide the overall work of an organization into
subunits that can assign tasks to individuals or
groups.

Measurement system:
• The are the methods of gathering assessing and

disseminating information on the activities of groups
and individuals in organization.
• Such data tell how well the organization is

performing and are used to detect and control
deviations from goals.

Organization Culture:
• It represents the basic assumptions, values and norms
shared by organization members.
• In diagnosis , the interest is in understanding the

current culture well enough to determine its
alignment with the other design factors.

Outputs:
• They are classified into three components.
1. Performance related to financial outputs such as
profits, return on investment.
2. Internal measurements of efficiency such as sales

per employee, waste, units produced per hour.
3. Stakeholders satisfaction such as higher dividend,

bonus issue.
Case of Nike
General Company's environment.
• There is uncertain and complex .
• Technologically , Nike is dependent on the latest
breakthroughs in shoe design and materials to keep its high
performance image.
• Socially and politically . Nike’s international manufacturing
and marketing operations require that it be aware of a variety
of stakeholders demands from several countries.
• Cultures and governments, including the U.S governments,
which might view Nike’s foreign manufacturing strategy with
some concern about U.S jobs .

Case of Nike
Industry structure:
• Nike’s industry is highly competitive and places considerable pressure on
profits.
• The threat of entry is high. It is not difficult or expensive to enter the shoe
market.
• The threat of substitute products is also high.
• The bargaining power of suppliers , such as providers of labour , shoe
materials and manufacturing is generally low because the resources are
readily available and there are many sources.
• Bargaining power of buyers is moderate, buyer are willing to pay more for
high quality.
• Rivalry among firms is severe , number of brands like Reebok, Adidas,
Puma.

Case of Nike
Company's Strategy:
• Nike’s strategy is clear on some points and nebulous on others.
• First, although the company has no formal mission statement, it has clear
sense about its initial purpose in producing high quality footwear.
• The CEO does not speak of specific goals, only general direction.
• The tension between growth and profits is a potential source of problem for
the organization.
• On the other hand, its strategic intent is fairly clear. It is attempting to
achieve its growth and profitability goals by offering a differentiated
product – a high quality , high performance show.
• Informal policies dominate the Nike organization.

Case of Nike
Company's technology , structure , measurements systems
and human resource systems :
• The technology of Nike is moderately uncertain and
interdependent.
• Nike’s products division structure appears moderately
differentiated.
• Human resources and measurement systems are
underdeveloped like there is no proper compensation policy.

Case of Nike
Nike’s Culture:
• Nike’s culture is a dominant features of the
organization design.
• The organization has norms of winning, competition ,
achievement and performance.

Case of Nike – analysis and possible solution
• The first fit between the inputs and strategic orientation. The
complex and uncertain environment fits well with Nike’s focus
on differentiation and a generally flexible organization design.
• The success during the 1970’s , 1980s and in 1990s .
• The alignments between its strategic orientation and its
environments appears sound.
• The individual elements of Nike’s strategy are not aligned.
• Growth goals and mission don’t align in Nike.
• The flexible structure , informal systems and driving culture
would seem well suited for that purpose.

Case of Nike – analysis and possible solution
• There are no direction from the Human resource point of view.
• The powerful role is its culture. It promotes coordination of a
variety of tasks , serves as a method socializing and
developing people.
• Any change effort at Nike will have to acknowledge this role
and design an intervention accordingly.
• Based on this diagnosis of the Nike organization, two
interventions – clarity about its strategy.
• Second, Nike could focus on increasing the integration and
coordination of its structure, measurement systems and human
resources system.

Diagnosing Groups and Jobs

Group-Level Diagnostic Model

Goal Clarity
Organization Task Group Group

Design Structure Functioning Effectiveness
Group Performance
Composition Norms

Group-Level Diagnostic Model
Inputs:
- Organization design is clearly the major inputs to
group design.
- It consists of the design components characterizing
the larger organization within which the groups are
embedded.
- It consists of technology, structure, measurements and
human resource policy.

Group-Level Design
Components
• Goal Clarity
– extent to which group understands its objectives
• Task Structure
– the way the group’s work is designed
• Team Functioning
– the quality of group dynamics among members
• Group Composition
– the characteristics of group members
• Performance Norms
– the unwritten rules that govern behavior

Group-Level Outputs
• Product or Service Quality
• Productivity
– e.g., cost/member, number of decisions
• Team Cohesiveness
– e.g., commitment to group and organization
• Work Satisfaction

Individual-Level Diagnostic Model

Organization Skill Variety
Design
Task Individual
Group Identity Autonomy Effectiveness
Design
Task Feedback
Personal Significance about Results
Traits

Individual-Level Design Components
• Skill Variety
– The range of activities and abilities required for
task completion
• Task Identity
– The ability to see a ―whole‖ piece of work
• Task Significance
– The impact of work on others
• Autonomy
– The amount of freedom and discretion
• Feedback about Results
– Knowledge of task performance outcomes
Individual-Level Outputs
• Performance
– e.g., cost/unit, service/product quality
• Absenteeism
• Job Satisfaction
– e.g., internal motivation
• Personal Development
– e.g., growth in skills, knowledge, and self

Data Collection - Feedback Cycle
Core Activities
Planning to Collecting Analyzing Feeding Following

Collect Data Data Data Back Data Up

Sampling
• Population vs. Sample
• Importance of Sample Size
• Process of Sampling
• Types of Samples
– Random
– Convenience

Questionnaires
• Major Advantages
– Responses can be quantified and summarized
– Large samples and large quantities of data
– Relatively inexpensive
• Major Potential Problems
– Little opportunity for empathy with subjects
– Predetermined questions -- no change to change
– Overinterpretation of data possible
– Response biases possible

Interviews
– Adaptive -- allows customization
– Source of “rich” data
– Empathic
– Process builds rapport with subjects
– Relatively expensive
– Bias in interviewer responses
– Coding and interpretation can be difficult
– Self-report bias possible
Observations
– Collects data on actual behavior, rather than
reports of behavior
– Real time, not retrospective
– Adaptive
– Coding and interpretation difficulties
– Sampling inconsistencies
– Observer bias and questionable reliability
– Can be expensive
Unobtrusive Measures- company records, archives
– Non-reactive, no response bias
– High face validity
– Easily quantified
– Access and retrieval difficulties
– Validity concerns
– Coding and interpretation difficulties

Analysis Techniques
• Qualitative Tools
– Content Analysis – Comments into meaningfull
categories
– Force-field Analysis
• Quantitative Tools
– Descriptive Statistics
– Measures of Association (e.g., correlation)
– Scatter Diagram

Force-Field Analysis Model
When forces equal, organization in quasi-
stationary state of equilibrium.
Analysis determines forces to increase or
decrease.

Force-Field Analysis of Work Group Performance
Forces for Change Forces for Status Quo
New technology Group performance norms
Desired Performance
Better raw materials Fear of change
Competition from other groups Member satisfaction
Supervisor pressures Well-learned skills

Feeding back Diagnostics
Information

Determining the
Content of Feedback
 Relevant
 Understandable(
graphs and charts)
 Descriptive(detail
illustrations)
 Verifiable(valid and
accurate)
 Timely(as quickly as
possible) Prof Tejaswini_Course Faculty ODIB 206
Effective Feedback Meetings
 People should be motivated to work with the

data
 The meeting should be appropriately
structured
 Appropriate attendance – work teams
 Appropriate power – Members need to know
on what issues they can make change

Survey Feedback
• Process of collecting and feeding back data from an
organisation or department through the use of a
questionnaire or survey.
• Members of the org including those at top are involved in

preliminary planning of the survey.
• The survey is administered to all the members of the
organization
• The OD consultant usually analyzes the survey data, tabulates
the results, suggests approaches to diagnosis and trains the
client members to lead the feedback process.
• The data is presented to the stakeholders
• The stakeholders work with the data to solve problems or
achieve vision Prof Tejaswini_Course Faculty ODIB 208
Definition of Interventions
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.

The Design of
Effective Interventions
 Contingencies Related to the Change Situation
 Readiness for Change  Capability to Change

 Cultural Context  Capabilities of the
Change Agent

Contingencies related to the target
of change
• Organisational Issues
– Strategic issues – strategic change, merger and
acquisition, alliance, network development, org
learning.
– Technology and structure issues
– Human Resource issues
– Human Process issues
• Organisational level

Intervention Overview
 Human Process Interventions

 Techno structural Interventions
 Human Resources Management Interventions
 Strategic Interventions

Human Process Interventions
 T-Groups
 Process Consultation and Team Building
 Third-party Interventions (Conflict Resolution)
 Organization Confrontation Meeting
 Intergroup Relationships
 Large-group Interventions
 Grid Organization Development

Technostructural Interventions
 Structural Design
 Downsizing
 Reengineering
 Employee Involvement
 Work Design

Human Resources Management
Interventions
 Goal Setting
 Performance Appraisal
 Reward Systems
 Career Planning and Development
 Managing Work Force Diversity
 Employee Wellness

Strategic Interventions
 Integrated Strategic Change

 Transorganization Development
 Mergers and Acquisitions
 Culture Change
 Self-designing Organizations
 Organization Learning and Knowledge
Management

Evaluating and Institutionalising
OD Interventions

Evaluation and Institutionalization
• Evaluation is concerned with providing
feedback to practioners and oragnisation
members about the progress and impact of
interventions.
• This information leads to further diagnosis
and modification of the change program.
• Institutionalization involves making a

particular change a permanent part of the
organisation’s normal functioning.
Evaluating OD interventions
• Assessing OD interventions involve judgments
about
– whether an intervention has been implemented
as intended
– Whether it is having desired results
– Whether to support the change program or to
modify or to terminate or to try something else.

Types of OD Evaluation
• Implementation of interventions
• Overall impact

Implementation and Evaluation
Feedback
Diagnosis
Design and Implementation of Implementatio Evaluatio

Implementation n n
of Interventions
Intervention
Clarify Plan for Feedback
Measures of Feedback
Measure of
Intention Next Steps the Intervention Long-term
and Immediate Effects
Alternative Effects
Interventions

Implementation Evaluation
Feedback Feedback
 Feedback aimed at  Feedback aimed at
guiding implementation
determining impact
efforts
of intervention
 Milestones, intermediate
targets  Goals, outcomes,
 Measures of the performance
intervention’s progress  Measures of the
intervention’s effect

Example – Job Enrichment

Measurement
• Selecting the variables
– How many job description are rewritten
– How many members have received cross training in
other job skills
– Employee performance and satisfaction over time
– Absenteeism
• Designing Measures
– Operational definitions
– Reliability
– Validity
– Research Design Prof Tejaswini_Course Faculty ODIB 226
Human Process Interventions
Interpersonal and Group Approaches

Organisational Process Approaches

Interpersonal and Group
Process Approaches

Coaching
• It involves working with org members,
typically managers and executives on a regular
basis to help them clarify their goals, deal with
blocks and improve their performance.
• Outcome - developing new behavioral skill,

Improve personal productivity and builds
capacity

Coaching Process
• Establishing the principles of the
relationship/engagement
• Conduct an assessment – MBIT, FIRO-B, Big5,
360 degree feedback
• Debrief the results
• Develop an action plan
• Implement the plan
• Asses the results
Training and Development
• KSAs
• Training and Development Process
– Perform a needs assessment
– Develop the objectives and design of the training
– Deliver the training
– Evaluate the training
Results – Reactions, change in behavior and

performance and return on investment
Process Consultation
A set of activities on the part of the

consultant that helps the client to
perceive, understand, and act upon
the process events which occur in
the client’s environment.

Process Consultation Process
• Process identification - reviewer identify those trigger
points that can make or break
• Information gathering
• Process Mapping- This involves sitting with each employee
and having him or her describe what it is they do. This
information is recorded using a sticky-note method. Each
step in the process is recorded on a sticky-note and built in
front of the individual completing the work
• Analysis. Analysis must really occur throughout the
review

Objectives of T-Groups
 Increased understanding about one’s own

behavior
 Increased understanding about the behavior of
others
 Better understanding of group process
 Increased interpersonal diagnostic skills
 Increased ability to transform learning into action
 Improvement in the ability to analyze one’s own
behavior
Group Processes
 Communications among group members

 Functional roles of group members
 Problem solving and decision making
 Group norms and growth
 Leadership and authority

Johari Window – Individual Intervention
Unknown to Others Known to Others
Hidden Open Known to

Spot Window Self
Unknown
Unknown Blind
to Self
Window Spot

Group Interventions
• Content Interventions – Help the group to
determine what it works on ( agenda setting,
questions, interpersonal issues and task
related topics )
• Structural Interventions – To examine the
stable and recurring methods it uses to
accomplish tasks.

Third – party Interventions
• Dispute resolution

A Cyclical Model of Conflict
Behavior Triggering Behavior

Triggering
Event
Event
Issues
Issues Consequences Consequences
Episode 1 Episode 2

Strategies for Conflict Resolution
 Prevent the conflict through mandate or

separation of the parties
 Set limits on the timing and extent of the
conflict
 Help the parties to cope differently with the
conflict
 Attempt to eliminate or resolve the basic
issues in the conflict

Team Building Activities
 Activities Related to One or More Individuals

 Activities Oriented to the Group’s Operations
and Behaviors
 Activities Affecting the Group’s Relationship
with the Rest of the Organization

Types of Teams
 Groups reporting to the same manager

 Groups involving people with common goals
 Temporary groups formed to accomplish a
specific, one-time task
 Groups consisting of people whose work roles
are interdependent
 Groups with no formal links but whose collective
purpose requires coordination

Types of Team Building
 Family group diagnostic meeting

 A set of activities designed to understand the
current structure, process, and effectiveness of the
team
 Family group team-building meeting
 A set of activities design to address and improve a
specific aspect of team functioning

Organisational Process
Approaches

Organisational Process Approaches
• System wide process interventions directed at
improving such processes as organisational
problem solving, leadership, visioning, and
task accomplishment between groups for a
major subsystem or for an entire organisation.
• Types of intervention
– Confrontation Meetings
– Intergroup Relations – intergroup conflict
resolution intervention and microcosm groups
– Large group interventions
Confrontation Meeting
• It is an intervention designed to mobilise the
resources of the entire organisation to identify
problems, set priorities and action targets,
and begin working on identified problems.
• Developed by Beckhard
• Notes to be given

Confrontation Meeting Process
Schedule the Meeting
Create a master list
Create groups representing
multiple perspectives Form problem-solving
groups
Set ground rules

Rank the issues and
opportunities, develop an
Groups identify problems action plan, specify timetable
and opportunities
Provide periodic reports

Report out to the
to large group
large group
Prof Tejaswini_Course Faculty ODIB 13-247

General Electric’s “ Work Out “
program
• Jack Welch and several managers at GE
devised a method for involving many
members of the organisation in the change
process.
• Workout is a process for gathering the
relevant people to discuss important issues
and develop clear action plan.
• Goals
– To use employee knowledge and energy to
improve work Prof Tejaswini_Course Faculty ODIB 248
• At GEMS, internal consultants conducted
extensive interviews with managers, it
revealed considerable dissatisfaction with the
existing system, including PMS,CD, and OC.
• Jach Welch spent some time listening and
trying to understand the issues.
• Based on the info complied, about 50 GEMS
employees and managers gathered for a 5 day
work out session.
• Group consisted of executives, employee
relations manager, informal leaders.
• Business problem was addressed
• Functional groups developed visions of where
their operations were headed
• Groups were asked to list the needless
approvals, policies, meetings, and reports.
• Senior managers were not the part of the
sessions.
• End of the week the senior mgt team listened
to the concerns and action plans
• Seniors GEMS members worked hard to
understand the issues, communicate with org
members and build trust
• Most of it was on reorganize work and
• The 5 days GEMS session ended with
individuals and functional teams signing close
to a 100 written contracts to implement new
process and procedures
• Changes seen
– Involving suppliers in its internal email network
– GEMS and suppliers agreed to build new product
prototypes together
– This lead to reduce costs, improved design quality
and decreased cycle time
– Since 1988 100 of workout programs have been
held
Microcosm Groups
• Small groups that solve problems in the larger
system
• Small group member characteristics must
reflect the issue being addressed (e.g., if
addressing diversity, group must be diverse)
• Primary mechanism for change is “parallel
processes – unconscious changes that takes in
an individual, when two groups interact”

Microcosm Group Process
• Identify an issue
• Convene the microcosm group
• Provide group training
• Address the issue in the group
• Dissolve the group
• Results- improved communication and race-

relations
Resolving Intergroup Conflict
• Help two group or departments
• To resolve dysfunctional conflicts
• Two or more grops grow polarised and conflict

grows and become defensive and negative
stereotypes of the other group.

Resolving Intergroup Conflict Process
• Groups and consultant agree to address issues
• Groups are asked to address three questions
– What qualities/attributes best describe our group?
– What qualities/attributes best describe their group?
– How do we think the other group will describe us?
• Groups exchange and clarify answers ( one person
presents)
• Groups analyze the discrepancies and work to
understand their contribution to the perceptions
• Groups discuss discrepancies and contributions
• Groups work to develop action plans on key areas
Johnson and Johnson’s Drug evaluation
department
• Attitudinal changes
• Behavioural changes
• Improved perceptions
• Increased trust
• Less stereotyping

Large Group Interventions
• Future Search Conference, Open-Space
Meeting, Open System Planning, Real-Time
Strategic Change,futhure searches
• Organisation wide – developing new
products/services, new technology,
environmental changes
• 100 ++ members are involved ( 50 –
2000participants )
• 2-4 days conference
• Futuring and visioning
Large-Group Method
Application Stages
• Preparing for the large-group meeting
– Identify a compelling meeting theme
– Select appropriate stakeholders to participate
– Develop relevant tasks to address meeting
theme
• Conducting the meeting
– Open Systems Methods
– Open Space Methods
• Following up on the meeting outcomes
Open system model
Open space methods
CONDUCTING MEETING

Open System Methods
• Map the current environment facing the
organization.
• Assess the organization’s responses to the
environmental expectations.
• Identify the core mission of the organization.
• Create a realistic future scenario of environmental
expectations and organization responses.
• Create an ideal future scenario of environmental
expectations and organization responses.
• Compare the present with the ideal future and
prepare an action plan for reducing the discrepancy.
Open Space Methods
• Set the conditions for self-organizing
– Announce the theme of the session
– Establish norms for the meetings
• The “Law of Two Feet.”
• The “Four Principles.”
– “Whoever comes is the right people.”
– “Whatever happens is the only thing that could have.”
– “Whenever it starts is the right time.”
– “When it is over, it is over.”
• Volunteers create the agenda
• Coordinate activity through information
postings
Open space meeting at a consulting firm
• Presenting the past records

• People wer given the empowerment to join
any of the groups they want
• General manager opened the session followed
by a consultant who briefed about what they
would be doing in 2 days
• Write an issues on a paper
• Community bulletin board – issues and places
for discussion has to mentioned
• Discussion on the same happened
• Reports were documented
• Day 2 was the same
• Day 3 – employees were asked to select ten
important issues
• Final results were announced about what
topic to be discussed
• Discussions and action steps
Techno structural Interventions
Restructuring Organizations
Employee Involvement
Work Design

Techno structural Interventions
• Change programs focusing on technology and
structure of the organisation
• Reasons – increasing global competitions,
rapid technology, environmental changes.
• Interventions are aimed at structural design
that is moving from traditional ways to
functional, divisional and matrix structure

Restructuring Organizations

Contingencies Influencing
Structural Design
Environment
Organization Worldwide
Size Structural Operations
Design
Organization
Technology Goals

Functional Organization
President
VP Research VP Operations VP Human VP Marketing VP Finance

Resources

The Self-Contained/Divisional Structure
Organization
Chief Executive
Officer
Chief Financial VP Research

Officer
Division Manager Division Manager Division Manager

Asia North America Europe
VP Human VP Operations VP Sales and

Resources Marketing

The Matrix Organization
President
CEO
VP Finance VP Human Resources
Senior VP Senior VP
Programs Operations
VP Research VP Engineering VP Manufacturing VP Marketing
Program Manager
Aircraft
Program Manager
Navigation Systems
Program Manager
Space Systems

The Process-Based Structure
Senior Management Team
Chair and Key Support Process Owners
Developing New Products Process

Process Owner
Cross Functional Team Members
Acquiring and Filling Customer Orders Process

Process Owner
Supporting Customer Usage Process

Process Owner

The Network Organization
Designer Producer
Organizations Organizations
Broker
Organization
Supplier Distributor
Organizations Organizations

Reengineering Process
• Prepare the organization
• Specify the organization’s strategy and
objectives
• Fundamentally rethink the way work gets
done
– Identify and analyze core business processes
– Define performance objectives
– Design new processes
• Restructure the organization around the
new business processes.
273
Characteristics of
Reengineered Organizations
 Work units change from functional departments to
process teams
 Jobs change from simple tasks to multidimensional work
 People’s roles change from controlled to empowered
 The focus of performance measures and compensation
shifts from activities to results.
 Organization structures change from hierarchical to flat
 Managers change from supervisors to coaches;
executives change from scorekeepers to leaders

Employee Downsizing
Restructuring Strategy

Objectives of Downsizing
• Economic slowdown during the late 1990s.
• Me- too strategy
• High demand erosion for their products
• Severe competition
• Financially sound companies followed the
strategy, which made investors feel that
Downsizing is a practice to reduce costs,
improve productivity and increase
profitability.
• To eliminate duplication of work after M and
Downsizing
The process of reducing the number of employees
on the operating payroll by way of terminations,
retirements.
The process essentially involves the dismissal of a

large portion of a company's workforce within a
very short span of time.
From the management's point of view, downsizing

can be defined as 'a set of organizational activities
undertaken by the management, designed to
improve organizational efficiency, productivity,
and/or competitiveness.'
EMPLOYEES ARE DISMISSED NOT
FOR INCOMPTENCE BUT
BECAUSE MANAGEMENT
DECIDED TO REDUCE THE
OVERALL WORKFORCE

Downsizing v/s layoffs
 In traditional layoffs, • In downsizing,
employees are asked to employees are asked
leave temporarily and
return when the market to leave permanently.
situation improves.
 Employees are • employees are

dismissed not for
incompetence but dismissed not for
because management incompetence but
decided to reduce the because management
overall work force. decided to reduce the
overall work force.
Reasons for downsizing
 Weak Companies
 To eliminate duplication of work after mergers and
acquisitions (M&As),
 To optimize resources and cut costs,
 To increase productivity and efficiency
 Companies expected the productivity of employees

after downsizing to increase as they thought it
would be easier to train and manage a smaller
workforce

MAJOR TECHNIQUES AND
STRATEGIES OF DOWNSIZING
• Attrition
Natural reduction of workforce that occurs when
employees leave the organization due to retirement,
death or resignation.
It is a normal Human Resources (HR) practice of a

downsizing company to freeze hiring totally/partially.

• Voluntary retirement and buyout benefits:
Voluntary retirement benefits encourage

employees to retire early with full or reduced
pension benefits before the stipulated retirement
age.
Buyout is a similar technique that includes

offering lump sum payment to encourage
employees (eligible/not eligible for voluntary
retirement or regular retirement) to voluntarily
leave the organization.

• Involuntary Separation/Layoff:
A layoff may be defined as the separation of an

employee from service for involuntary reasons
other than resignation, not reflecting any discredit
on the employee.
It was also defined as termination of an employee's

employment for reasons beyond the control of an
employee and which do not reflect discredit on the
employee.

• Leave without pay:
Leave without pay is granted to employees with
reduced benefits, but with the guarantee of job
when they return at the end of their leave period.
This strategy was useful for firms, which

downsized to cut costs rather than to reduce the
workforce by a certain number.

After Downsizing Effect
 Low morale of retained employees
 Loss of employee loyalty and
 Loss of expertise as key personnel/experts left to find

more secure jobs.
 negatively effect the quality of the work produced.
 'me-too' strategy

• Vast Culture Changes
• Power shift from middle management to top

management
• Shift in focus from welfare of individual to the

welfare of organisation
• Change in employee-employer relationship
• Depression, Anxiety, frustration, anger and

bitterness
• Seen in SurvivorsProf Tejaswini_Course Faculty ODIB 286
• Low Morale, high stress
• Cope with the increasing workload
• Job loss
• Relations with superiors
• Revised performance expectations
• Uncertainties regarding career advancements

Contingent workers
Contingent workers, often hired through an agency
and placed in a client firm as non-regular employees,
are known by several terms:
temporary workers, short-term hires, independent

contractors, leased employees, non-standard
workers, complementary workers, free lancers,
consultants, adjunct faculty, and contract workers

Evolution of contingent employees
• Hired directly by the company or through an external
agency on a contract basis for a specific work for a
limited period of time.
• No unemployment tax, retirement or health benefits

for contingent employees.
• Salaries paid will be very less compared to regular

employees.
• Could be downsized withoutFaculty

Prof Tejaswini_Course difficulty
ODIB 289
Effect of Contingent Employees
• Productivity suffered when these employees were
trained
• Employees were not loyal to the Org
• Controlling was a problem
• They are not aware of companies rules and
regulations
• Less commitment
• Negative effect on the morale of regular employees
• Regular employees were afraid to ask raise or other
benefits as they feared they might lose their job
Future Directions in
Organization Development

Trends Affecting OD Practice
• Environmental Trends
 Wealth is becoming more concentrated
 Economy is more globalized
 Ideologies are shifting from consumption to
coexistence and ecological sustainability

 Workforce Trends
 Workforce is becoming older, more diverse,
more educated
 Shift toward contingent employment & change
in psychological contract
 No careers

• Technology Trends
 Internet growth will increase
 E-commerce growth
 Increased rate and pervasiveness of
technological change

 Organizational Trends
 Organizations will become both smaller and
larger; more and less decentralized
 Virtual, networked, alliance based
 Truly global management structures and
cultures

The Future of OD
• More embedded in the organization’s
culture
• More technologically enabled
• Shorter OD cycle times
• More innovation and learning oriented
• More diverse client organizations
• More cross-cultural
• Clearer about values

Odib 2018

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Odib 2018

Uploaded by

Copyright:

Available Formats

Organisational Development and

Prof Tejaswini_Course Faculty ODIB

To develop an understanding of the

To analyse the multiple perspectives of

To make them capable of managing

To analyse the Role of leader in

2. Reflect on the need for change in the current economic climate

3. Students will be able to analyse the significant dimensions of

30th ,31st ,32nd Chaitra

Prof Tejaswini_Course Faculty ODIB 7

Many major companies are going through significant changes, including

To increase productivity, enhance competitiveness and contain costs,

Prof Tejaswini_Course Faculty ODIB 8

Modern manager must not only be flexible and adaptive in a changing

Prof Tejaswini_Course Faculty ODIB 9

Prof Tejaswini_Course Faculty ODIB 11

Beckhard’s Definition: OD is an effort (1) planned, (2)

Quality of Work Life

T- group is a small, unstructured group in which

Prof Tejaswini_Course Faculty ODIB 17

• Workshop was developed and all community leaders were

• At the end of each day, researches discussed privately what

Prof Tejaswini_Course Faculty ODIB 18

• Conclusions of the program

Prof Tejaswini_Course Faculty ODIB 19

• In 1950s three trends emerged

Prof Tejaswini_Course Faculty ODIB 20

After he died in 1947, his staff moved to the

It was headed by Rensis Likert, a pioneer in

Prof Tejaswini_Course Faculty ODIB 22

Prof Tejaswini_Course Faculty ODIB 23

• Feedback sessions were conducted in task groups

• Repeat of the survey

• Significant positive changes were seen in terms of Job

• Data Collection, Data Feedback, Action planning,

Prof Tejaswini_Course Faculty ODIB 25

Exploitive authoritative system – Top Down Approach

Benevolent authoritative system – Mgt is more paternalistic and

Consultative systems – Employees are involved, final decision is

Prof Tejaswini_Course Faculty ODIB 26

Prof Tejaswini_Course Faculty ODIB 27

Prof Tejaswini_Course Faculty ODIB 28

Prof Tejaswini_Course Faculty ODIB 29

• This lead to the evolution of Employee Involvement,

Prof Tejaswini_Course Faculty ODIB 30

• Merger and Acquisition

Prof Tejaswini_Course Faculty ODIB 31

Need for change

Prof Tejaswini_Course Faculty ODIB 39

Prof Tejaswini_Course Faculty ODIB 41

Prof Tejaswini_Course Faculty ODIB 42

Prof Tejaswini_Course Faculty ODIB 43

Prof Tejaswini_Course Faculty ODIB 44

Problem Identification Joint diagnosis

Data gathering & Action

Data gathering after

Prof Tejaswini_Course Faculty ODIB 45

Prof Tejaswini_Course Faculty ODIB 46

Prof Tejaswini_Course Faculty ODIB 47

Prof Tejaswini_Course Faculty ODIB 48

Prof Tejaswini_Course Faculty ODIB 49

Prof Tejaswini_Course Faculty ODIB 50