Organizational Development

Cummings (2013)
 Medical vs. Organisational Diagnosis
Medical Organisational
Values & The doctor determine the Both parties should be
Ethical Beliefs process by him/herself involved in all process

Something is wrong w/ Diagnosis can be

Basic
the patient, try to find the problem oriented OR
Assumption cause of the illness development oriented
Provide specification what Provide a systematic
Advantage part of the body should be understanding of
further treated organisations

Process One-time assessment All-time assessment

 Introduction

Diagnosis is the process of understanding how the organization is currently

functioning, and it provides the information necessary to design change
interventions.

Open-systems model recognizes that organizations exist in the context of a larger

environment that affects how the organization performs, and, in turn is affected by
how the organization interacts with it.
 Introduction
Open systems, organizations can be diagnosed at three levels.

The highest level is the overall organization and includes the company’s strategy,
structure, and processes.

The next lowest level is the group or department, which includes group design and
methods for structuring interactions among members.

The lowest level is the individual position or job. This includes ways in which jobs
are designed to elicit required task behaviors.
Diagnosis as a Process of Developing Organisations

Org Asses &

Intervention
 Diagnosing, Collecting,
Designing
Entering and Analyzing and Feeding Interventions
develop Back Data
Questionnaires, Interviews, Berhubungan dengan change
contract Observations, Unobstrusive situation dan target of change
Measures

Managing Change Evaluation and

Support: membuat Institutionalizing
change agent / identifikas
& Influencing key
stakeholders

The Process
 Entering and
Contracting
The manager and group members meeting to discuss
what issues to work on (even if there are several
problems) and how they will jointly meet the goals
they set. Entering and contracting tend to be more
complex and formal.1 OD practitioners may need to
collect preliminary information to help define the
problematic or development issues
 Entering and
Contracting
Seringkali ketemu middle management
dulu, membahas permasalahan jika
permasalahan strategi maka top-down,
jika permasalahan karyawan maka
down-top
 Organization-Level Diagnosis
-Inputs

General Environment
Consists of all external forces that can directly or indirectly
affect an organization. Social, technological, economic,
ecological, and political/regulatory forces

Task Environment
Porter: Supplier power, buyer power, threats of substitutes,
threats of entry, and rivalry among competitors. An
organization must be sensitive to powerful suppliers who can
increase prices, customer needs and threats of other firms.
 Organization-Level Diagnosis
-Inputs

Enacted Environment
Consists of organization members’ perception and
representation of the general and task environments also
output. Organization members must actively observe,
register, and make sense of the environment before it can
affect their decisions about what actions to take.
 Strategy

- An intermediate input

- The way an organization uses its resources to

achieve its goals and to gain a competitive
advantage. Defines organization’s position.
 Design Components
Technology
The way an organization converts inputs
into products and services.
Management Processes
Methods for processing information,
making decisions, and controlling the
operation of the organization
Structure
The basic organizing mode for (1) dividing
overall work of an organization into subunits
(2) coordinating completion of the overall
work
Human Resources System
Mechanisms for selecting, developing,
appraising and rewarding organization
members
 Culture
- An intermediate output

- The basic assumptions, values, and norms shared by

organization members.

- Example : McDonald’s culture emphasizes

efficiency, speed, and consistency. It orients
employees to company goals and suggests the kinds
of behaviors necessary for success
 Outputs

Organization Effectiiveness that can be measure from three

kinds of outcomes :

1. Financial outcomes (sales, profits, return on investment

(ROI), or earnings per share (EPS))
2. Productivity (Internal measurements of efficiency : sales
per employee, error rates, quality of product).
3. Stakeholder satisfaction (how well the organization has
met the expectations)
Group-Level Diagnosis
-Inputs Organization Design
Larger organization within which the individual
job is the smallest unit.

Culture
Can influence the norms that groups develop to
control member behavior.
 Goal Clarity
Involves how well the group
understands its objectives
Task Structure
Concerned with how the
group’s work is designed
(koordinasi + regulasi
perilaku kerja).
Team Functioning
Underlying basis of group life. It
involves group processes
(coherence). Quality of
relationships.

Group Composition Group Norms

Concerns the membership of
groups
(age, education, experience,
skill, abilities).
Member beliefs about how the
group should perform its task and
what levels of performance are
acceptable

Design Components
 Outputs

Team Effectiveness that can be measure from two kinds of

outcomes :

1. Performance (Group’s ability to control or reduce costs,

increase productivity, or improve quality.)

2. Quality of Work Life (concerns work satisfaction, team

cohesion, and organizational commitment.)
 Individual-Levels Diagnosis

Inputs

Organization Design Culture Group Design Personal Characteristics

Concerned with the The values and norms Concerns the work group
Concern in individuals
composed of four shared by organization containing the individual
occupying jobs include
components—technology, members. job. Like organization
age, education,
structure, management design, group design is an
experience, skills, and
processes,and HR systems essential part of the job
abilities.
context.
 Skill Variety
Aktivitas dan abilities yang
diperlukan untuk bisa perform
dalam pekerjaan
Task Identity
Informasi akan pekerjaan secara
utuh, end-to end.
Ex: pengrajin T.I nya tinggi
karena dia harus tau proses end-
to end pembuatan produk
Task Significance
Impact dari pekerjaan terhadap
kehidupan orang lain. Ex: TS
pada pegawai RS lebih besar
dari pegawai pabrik mainan

Autonomy
Freedom and discretion in
scheduling the work and
determining work methods
Feedback
Efektivitas: Waktu secepat mungkin
Informasi secara langsung dan
Efisiensi: Cara sebaik mungkin
jelas akan efektivitas pekerjaan
(penggunaan sumber daya agar hasil
karyawan
maksimal)

Design Components
 Outputs

Individual-Job Effectiveness

How well the job is performed and those having to do with

how people experience their job.

Can be measured from quantity, quality, time, and cost of

producing particular job outcome.
 ”
4 types of Interventions : Human Process,
HRM, Technostructure and Strategic Change
Interventions.

-- Cumming’s Open System

 Human Process Intervention
● Process Consultation : Focus on interpersonal relations and dynamics in work group. Consultant helps group
member diagnose group functioning and give appropriate solutions to process problems.

● Third Party Intervention : Process consultation aimed at dysfunctional interpersonal relations in organization. Third
party help people resolve conflict.

● Team Building : Work groups become more effective. Diagnose group process include group’s task, member roles,
strategies for performing tasks.

Organization Wide
● Organization Confrontation Meeting : Applied when organization are experiencing stress and when management
needs to organize resources for immediate problem solving. Mobilizes organizations members to identify problems,
set target action and begin working on problems.

● Intergroup Relations : Designed to improve interactions among different groups or departments in organizations.

● Large Scale Intervention :Stakeholders into a large meeting to clarify important values, to develop new ways of
working, to articulate a new vision for the organization or solve pressing org. problems.
 Technostructural Interventions
● Structural Design : Concerns the organization’s division of labor—how tasks are subdivided into work units and
how those units are coordinated for task completion

● Downsizing : Reduces costs and bureaucracy by decreasing the size of the organization through personnel layoffs,
organization redesign, and outsourcing.

● Reengineering : Radically redesigns the organization’s core work processes to create tighter linkage end
coordination among the different tasks.

Involving employees in decision making

● Parallel Structures : Provide members with an alternative setting in which to address problems and propose
solutions. Such as cooperative union management projects and quality circles.

● Total Quality Management : Continuously improving quality as part of normal work operations. It includes
extensive training in total quality management knowledge and skills, expertise to improve quality at work.

● High Involvement Organizations : This comprehensive intervention designs . almost all features of the
organization. Changes in structure, work design, information and control systems, and human resource practices
jointly support member involvement
 Technostructural Interventions
Designing Work for individual jobs and interactive groups

● Job Enrichment : Based on motivational principles, this intervention creates jobs that employees are likely to
experience as meaningful with high levels of autonomy and feedback from performing the work. Job enrichment
results in high job satisfaction and performance quality, especially for those individuals who have needs for growth
and learning at work.

● Self managed work teams : This intervention designs work for teams. Self-managed work teams are typically
responsible for a complete product or service and members are able to make decisions and control their own task
behaviors without a lot of external controls.
 Human Resources Management Interventions
Concern in Performance Management

● Goal Setting : Setting clear and challenging goals. It attempts to improve organization effectiveness by establishing
a better fit between personal and organizational objectives.

● Performance Appraisal : Systematic process of jointly assessing work-related achievements, strengths, and
weaknesses. Providing performance feedback to individuals and work groups.

● Reward System : The design of organizational rewards to improve employee satisfaction and performance. Includes
innovative approaches to pay, promotions, and fringe benefits.

Concern in Managing, Developing and Retaining Talent

● Coaching and Mentoring : Focuses on personal learning that gets transferred into organizational results and more
effective leadership skills. Helps clarify their goals, deal with potential stumbling blocks and improve their
performance.

● Management and Leadership Program : Among the oldest strategies for organizational change, training and
development interventions increase organization members’ skills and knowledge.

● Career Planning and Development : This intervention helps people choose organizations and career paths and attain
career objectives.
 Human Resources Management Interventions
Concern in Supporting Organization Members

● Managing workforce diversity : This change program makes human resources practices more responsive to a
variety of individual needs. Important trends, such as the increasing number of women, ethnic minorities, and
physically and mentally challenged people in the workforce. Requires flexible set of policies and practices.
(mengurangi diskriminasi termasuk di dalamnya)

● Employee stress and wellness : Include employee assistance programs (EAPs) and stress management.

EAP : Counseling programs that help employees deal with personal problems (substance abuse and mental health,
marital, and financial problems) that affects work performance

Stress Management Programs : Help employees cope with the negative consequences of stress at work (role conflict and
ambiguity also provide methods for reducing such stress symptoms as hypertension and anxiety)
 Strategic Change Interventions
Transformational change

● Organization Design : Address the different elements that comprise the “architecture” of the organization, including
structure, work design, human resources practices, and management processes. aligns these components with the
organization’s strategy and with each other so they mutually direct behavior to execute the strategy.

● Integrated Strategic Change : How planned change can make a value-added contribution to strategic management
in response to external and internal disruptions. This helps members manage the transition between a current
strategy and organization design and the desired future strategy and design.

● Culture Change : Develop a culture (behaviors,values,beliefs,and norms)appropriate to its strategy and competitive
environment. It focuses on developing a strong organization culture to keep organization members pulling in the
same direction.
 Strategic Change Interventions
The increasing need for organizations to change continuously in response to rapidly changing environments

● Dynamic Strategic Change: Build a strategic system that can adapt continually to changing conditions. It involves
both the content (the “what”) of strategy formulation and the process (the “how” and “who”) of strategy
implementation.

● Self Designing Organizations: Helps organizations gain the capacity to alter themselves fundamentally.
Organizations learn how to design and implement their own strategic changes.

● Learning Organizations : Increasing the organization’s capability to acquire and develop new knowledge. This
intervention enables organizations to move beyond solving existing problems to learn how to improve themselves
continuously.

● Built-to-change Organizations: Assume that the source of effectiveness is the ability to change continuously. The
features, skills and knowledge, and processes of leading and managing these adaptable organizations are described
 Strategic Change Interventions
Shape how organizations collaborate with each other

● Mergers and Acquisition: OD practitioners can assist two or more organizations to form a new entity. Addressing
key strategic, leadership, and cultural issues prior to the legal and financial transaction helps to smooth subsequent
operational integration of the organizations.

● Alliances: Helps two organizations pursue common goals through the sharing of resources, including intellectual
property, people, capital, technology, capabilities, or physical assets.

● Networks: Helps to develop relationships among three or more organizations to perform tasks or solve problems
that are too complex for single organizations to resolve. It helps organizations recognize the need for partnerships
and develop appropriate structures for implementing them.
 ”
Three major criteria define an effective OD intervention: (1)
the extent to which it fits the needs of the organization; (2) the
degree to which it is based on causal knowledge of intended
outcomes; and (3) the extent to which it transfers change
management competence to organization members.

-- Effective Interventions
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