Organizational Development (OD

)

By Asst. Prof. Vichai Thosuwonchinda

Process of OD.
1. Problem recognition 2. Entry of change agent 3. Data collection and problem diagnosis 4. Development of plan for change 5. Change implementation 6. Stabilization and institutionalization 7. Feedback and evaluation

Change: Organizational and Individual Perspectives
Types

of Organizational Change

– Anticipatory changes: planned changes based on expected situations. – Reactive changes: changes made in response to unexpected situations. – Incremental changes: subsystem adjustments required to keep the organization on course. – Strategic changes: altering the overall shape or direction of the organization.

Change: Organizational and Individual Perspectives
(cont’d) 
Tuning
– The most common, least intense, and least risky type of change.

Also known as preventive maintenance and kaizen (continuous improvement). Key is to actively anticipate and avoid problems rather than waiting for something to go wrong.

Adaptation

– Incremental changes that are in reaction to external problems, events, or

Change: Organizational and Individual Perspectives
(cont’d)
Re-Orientation

– Change that is anticipatory and strategic in scope and causes the organization to be significantly redirected.
Re-Creation

– Intense and risky decisive change that reinvents the organization.

Individual Reactions to Change
How

People Respond to Changes They Like
– Three-stage process
  

Unrealistic optimism Reality shock Constructive direction

Individual Reactions to Change (cont’d)
How

People Respond to Changes They Fear and Dislike
– Stages
    

Getting off on the wrong track Laughing it off Growing self-doubt Buying in Constructive direction

Why Do Employees Resist Change?
Surprise

– Unannounced significant changes threaten employees’ sense of balance in the workplace.
Inertia

– Employees have a desire to maintain a safe, secure, and predictable status quo.
Misunderstanding

and lack of skills

– Without introductory or remedial training, change may be perceived

Why Do Employees Resist Change? (cont’d)
Emotional

Side Effects

– Forced acceptance of change can create a sense of powerlessness, anger, and passive resistance to change.
Lack

of Trust

– Promises of improvement mean nothing if employees do not trust management.
Fear

of Failure

– Employees are intimidated by change and doubt their abilities to meet new challenges.

Why Do Employees Resist Change? (cont’d)
Personality

Conflicts

– Employees who are disliked by their managers are poor conducts for change.
Poor

Timing

– Other events can conspire to create resentment about a particular change.
Lack

of Tact

Why Do Employees Resist Change? (cont’d)
Threat

to Job Status/Security

– Employees worry that any change may threaten their job or security.
Breakup

of Work Group

– Changes can tear apart established on-the-job social relationships.
Competing

Commitments

– Change can disrupt employees in their pursuit of other goals.

Overcoming Resistance to Change
Strategies

for Overcoming Resistance to Change
– Education and communication – Participation and involvement – Facilitation and support – Negotiation and agreement – Manipulation and co-optation – Explicit and implicit coercion

Making Change Happen
Two

Approaches to Organization Change
– Organization Development (OD)

Formal top-down approach An unofficial and informal bottom-up approach

– Grassroots Change

Change

Agent Characteristics

– Foresight – Responsiveness – Flexibility

Planned Change Through Organization Development (OD) 
Organization development (OD)
– Planned change programs intended to help people and organizations function more effectively.

Applying behavioral science principles, methods, and theories to create and cope with change. OD creates fundamental change in the organization, as opposed to fixing a problem or improving a procedure.

– OD programs generally are facilitated by hired consultants,

Organization Development (OD) 
Objectives of OD
– Deepen the sense of organizational purpose. – Strengthen interpersonal trust. – Encourage problem solving rather than avoidance. – Develop a satisfying work experience. – Supplement formal authority with knowledge and skill-based authority. – Increase personal responsibility for planning and implementing.

Organization Development (OD) (cont’d)
The

OD Process
Unfreezing: neutralizing resistance by preparing people for change. Changing: implementing the planned change Refreezing: systematically following a change program for lasting results.

– Unfreezing, changing, and refreezing social systems

Unofficial and Informal Grassroots Change
Grassroots

Change

– Change that is spontaneous, informal, experimental, and driven from within.
Tempered

Radicals

– People who quietly try to change the dominant organizational culture in line with their convictions.

Guidelines for tempered radicals
– – – – Think small for big results. Be authentic. Translate. Don’t go it alone.

Managing Conflict
Conflict

– Incompatible behaviors that make another person less effective
Dealing

Conflict

with the Two Faces of

– Competitive conflict: parties are pursuing directly opposite (win-lose) goals. – Cooperative conflict: a mutually reinforcing experience (win-win) that serves the best interests of both

Managing Conflict
(cont’d)
Conflict

Triggers

– Conflict trigger: any factor that increases the chances of conflict.

Types of triggers
– – – – – Ambiguous or overlapping jurisdictions. Competition for scarce resources. Communication breakdowns. Time pressure. Unreasonable standards, rule, policies, or procedures. – Personality clashes. – Status differentials. – Unrealized expectations.

Managing Conflict
(cont’d)
Resolving

Conflict: Conflict Resolution Techniques
– Problem solving – Superordinate goals – Compromise – Forcing – Smoothing

Career Advancement Behaviors
 Best

Behaviors

 Worst

Behaviors

– – –

Perspective taking Creating solutions Expressing emotions – Reaching out

– Avoidance – Winning at all costs – Displaying anger – Demeaning others – Retaliating

Case Study: Bank of Thailand Development of Future Leader
Two

significant factors on leader’s development
 Vision  Leadership

Vision of Bank of Thailand
 Purpose  Vision

(2006)

– To provide a stable financial environment for sustainable economic growth in order to achieve continuous improvement in the standard of living of the people of Thailand.

– A reputation organization commanding public trust and respect.

Strategic objectives
To

conduct monetary policy in accordance with international best practice  to ensure financial system stability, responsiveness to public needs and adaptability to dynamic environment

Strategic objectives
(cont’d)
To

develop a fully efficient payment system  To become an organization committed to excellence And to become an organization of good public image.

Leadership
 Leadership

vision

 Vision’s

– – –

envisioning visioneering sub-vision

acceptance
– – – – Direction setter Change agent spokeperson coach

Components of visionary Leadership
Strategic

management  Leadership personality and behavior  Innovation and change management  Problem solving and decision making Organization diagnosis

Pre-development Program Phase
Twenty-six

top management participants were selected as “Future Leader”  Key interview questions were asked on core visionary leadership competency. In depth interview was designed to gather information with all related participants and their direct reports..

Pre-development Phase

Development Project

Communication Session
BOT governor’s speech  Visual Leadership Situation Activity, to make the difference between the leader’s perception and intention.  Future Leader Big Picture Review.  Comparative Movie Case study, good leaders and bad leaders.

Leadership Development Program Phase
Field trip to remote and poor communities.  BOT Leadership Development Roadmap.  Development on the five modules

Leadership development modules
Organization diagnosis-TQA,TQM EQA.  Strategic management- ex-CEO Ford Thailand was invited.  Leadership personality –Brainstorming, role play, coaching, guest speakers.  Innovation and change-creativity style, change behavior exercise.  Problem solving and decision makingcase study, Fishbone analysis, force field analysis.  Project Simulation- to initiate real development project for BOT.

Post Development Program Phase
Clinic session for coaching , consultation and advisory to the real workplace implementation and development.  Overall feedback and evaluation the program on BOT Leadership Development Roadmap.

Questions
What do you think about this case study of BOT?  How to implement this program in your organization or your country?

The end

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