Subtitle

WEEK 14
ORGANIZATION
DEVELOPMENT
AGENDA
HUMAN RESOURCES SLIDE 2

Defining Changes and Or-

ganization Development

OCD Theories and Con-

cepts

Four Types of Interven-

tions
 ORGANIZATION
DEVELOPMENT

A process used to enhance both the

effectiveness of an organization and the
well-being of its members through
planned interventions

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 THREE KEY POINTS
OD enhances the effectiveness of the
organization
• Effectiveness, in this context, is
defined as achieving organizational
goals and objectives
OD enhances the well-being of
organization members
OD is used to enhance the effectiveness of
organizations and individual well-being
through planned interventions

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PLANNED
INTERVENTIONS
Sets of structured activities in which
selected organizational units (target
groups or individuals) engage with a task
or sequence of tasks where the task goals
are related directly or indirectly to
organizational improvement

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 LO2: OD THEORIES
Implementation theory
 Focuses on specific intervention strategies that are
designed to induce changes
 Four Types of Interventions
 Human process-based
 Techno-structural
 Socio-technical systems (STS) designs
 Large system

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 IMPLEMENTATION THEORY
HUMAN PROCESS-BASED
INTERVENTION THEORY
• Place a heavy emphasis on the
process of change, and focus on
changing behaviors by modifying
• individual attitudes
• values
• problem-solving approaches
• interpersonal styles
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TECHNO-STRUCTURAL
INTERVENTION THEORY
• Focuses on improving
• work content
• work method
• work flow
• performance factors
• relationships among workers
• A key concept is job design
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IMPLEMENTATION THEORY

TECHNO-STRUCTURAL
THE JOB
INTERVENTION THEORY

• A job has several distinguishing

characteristics, including
• individual tasks or duties
• responsibilities
• authority
• relationships
• skill requirements

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IMPLEMENTATION THEORY
SOCIO-TECHNICAL SYSTEMS ORGANIZATION
(STS) INTERVENTION TRANSFORMATION CHANGE
 Directed at the fit between the technological
configuration and the social structure of work Views organizations as complex, human systems,
units … each possessing a unique character, culture, and
 (which) results in the rearrangement of
value system, along with information and work
relationships among roles or tasks or a
sequence of activities to produce self- procedures that must be continually examined,
maintaining, semiautonomous groups analyzed, and improved if optimum productivity
 Empowering the worker to assume more and motivation are to result.
lateral responsibility for the work. These
innovations include quality circles, total
quality management, and self-managed teams

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 IMPLEMENTATION THEORY

ORGANIZATIONAL
OUTCOMES
Focuses on how individual behavioral
changes can lead to two possible outcomes
• improved organizational performance
• enhanced individual development

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 LO4: TYPES OF
INTERVENTION
• Human Intervention
• Work Intervention
• Team Intervention
• Organization Intervention

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 FOUR TYPE OF INTERVENTION
Human Process Based 1. SURVEY FEEDBACK
Interventions • Systematic feedback of survey data to groups with
• Directed at improving interpersonal, the intent of stimulating discussion of problem
areas, generating potential solutions, and stimulating
intra-group, and inter-group relations motivation for change
• Two Major Types • Data provide a snapshot of an existing situation
• survey feedback 1.1 DEVELOPING A SURVEY
• team building Prior to doing survey, all must agree on
• What organizational variables they are trying to
measure
• How the survey will be designed and implemented
to ensure the data will be reliable and valid
• How best to present the survey results to the
intended audience
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 FOUR TYPE OF INTERVENTION
Human Process Based
Interventions
2. TEAM BUILDING
Actions Prior to Team Building
• Process used to improve a work group’s • A preliminary diagnosis of the group’s need for
problem-solving ability and effectiveness
team building
• Groups experience problems
• A change agent should be selected
• Groups can become dysfunctional
• Change manager and change agent should develop
• When a group becomes dysfunctional a general approach to the team-building sessions
• relationships are strained
• conflicts increase among the members
• group output declines
• members are more likely to quit

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 FOUR TYPE OF INTERVENTION
Techno-Structural Interventions
(TSI)
• Purpose of techno-structural
interventions is to
• improve work content, work method, and
relationships among workers
• lower costs by replacing inefficient
materials, methods, equipment, work-
flow designs, and costly unnecessary
labor with more efficient technology
• The most common techno-structural
intervention strategies are
• job enlargement
• job enrichment
• alternative work schedules
JOB ENLARGEMENT
• Attempts to increase satisfaction and performance by consolidating work functions from
a “horizontal slice” of the work unit to provide greater variety and a sense of the whole
task
JOB ENRICHMENT
 Involves varying some aspect of the job in order to increase the potential to
motivate workers
 Core job dimensions affect work outcomes, such as job satisfaction and
intrinsic motivation, by determining the extent to which employees experience
 meaningfulness of the work itself
 responsibility for the work and its outcomes
 knowledge of actual results of the work
ALTERNATIVE WORK SCHEDULE
• Allow employees to modify their work requirements to satisfy their personal
needs
• Two most common AWS interventions
• compressed workweek
• flextime
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 EFFECTIVENESS OF TECHNO-STRUCTURAL
INTERVENTIONS
• Alternative work schedules and job
❇️
redesign had a moderate effect on
measures of work output, such as
quality and quantity of production
❇️• Work rescheduling interventions had a
small but significant effect on measures
of withdrawal behavior
❇️• Techno-structural interventions had less
effect than human process-based
interventions
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❇️ Alternative work schedules had a
greater effect on attitude than did job
design/ enlargement or job enrichment
❇️ Job enlargement and job enrichment
interventions brought about the same
amount of overall change (42 percent
change), with enrichment having a
greater effect on productivity
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 SOCIO-TECHNICAL SYSTEMS (STS)

• STS interventions focus on the 3a. The Quality Circle (QC) Approach
combination of organizational Gets employees involved in making
structural demands meaningful work decisions including,
• e.g., work flow, task but not limited to, solving job-related
accomplishment, and problems
performance) and social
demands
• e.g., relationships among
workers

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 SOCIO-TECHNICAL SYSTEMS (STS)
3b. Total Quality Management (TQM)
A set of concepts and tools for getting all
employees focused on continuous
improvement, in the eyes of the customer.
Five basic components
• total commitment from senior management
• quality standards and measures
• training for employees
• communication
• reward, recognition, and celebration
3c. Self-Management Team (TQMs)
• Formal groups in which the group
members are interdependent and can have
the authority to regulate the team’s
activities.
• Common SMT Characteristic
• Productivity increases
• Better quality products and services
• Higher employee morale
• Reduced or flatter management hierarchy
• More responsive organizational structures
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 SOCIO-TECHNICAL SYSTEMS (STS)
Self-Management Team (TQMs)
Demonstrates SMT Benefit SMT Effectiveness Indicators
• Productivity increases • Self-managed teams were more effective
• Better quality products and services on a variety of indicators:
• Higher employee morale • productivity

• Reduced or flatter management • quality

hierarchy • safety
• More responsive organizational • customer complaints
structures • absenteeism

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 4. ORGANIZATION TRANSFORMATION (OT)

• A system of shared values, beliefs, and Types of Change

norms that are used to interpret
elements in the environment and to
• Cultural changes involve a complex
guide all kinds of behavior
process of replacing an existing
paradigm or way of thinking with
another

• Strategic changes are any

fundamental changes in the
organizational purpose or mission
requiring system-wide changes
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 4. ORGANIZATION TRANSFORMATION (OT)
Strategic Changes
• System-wide changes can have three • Key components of a successful TQM
dimensions intervention is an emphasis on
• The size of the change refers to the learning
number of employees affected by the
change
• The depth of the change refers to the • Managers and employees are asked to
extent to which the change involves • learn a common language for
limited structural changes or goes to
improvement,
core values of the organization.
• learn new tools and techniques, and
• The pervasiveness of the change refers
to how many functions and hierarchical • learn to take the initiative in
levels of the organization will be improving work outcomes
directly impacted by the change
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 4. ORGANIZATION TRANSFORMATION (OT)
Organizational Learning Information Learning
• Key components of a •
Transfer
Need to develop the capacity
Organization
• An organization in
successful TQM intervention to transfer knowledge across which everyone is
is an emphasis on learning the organization
engaged in identifying
• TQM focuses on specific and solving problems,
• Managers and employees are processes and tasks enabling the
asked to • does not lead to flexible
organization to
• learn a common language and adaptive thinking continuously
for improvement, • lessons learned are often
experiment, improve,
• learn new tools and not shared and applied
techniques, and and increase its
outside of the specific
• learn to take the initiative in area
capability
improving work outcomes

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 4. ORGANIZATION TRANSFORMATION (OT)
Dimensions that Support Organizational
Structure LearningInformation
HRM practices
• One of the key acquisition,
dimensions of • number of practices that
organizational learning
sharing, and are necessary to support
is the reduction or retention organizational learning
removal of hierarchical • management must
institute structures • performance
barriers that divide
managers and employees and practices that appraisal and reward
encourage systems that
information sharing reinforce long-term
• In their place, learning and retention
organizations have performance and the
• Knowledge can be
implemented more acquired from both development and
collaborative structures internal and external sharing of new skills
like self-managed teams sources and knowledge
and cross-functional
teams 22
 4. ORGANIZATION TRANSFORMATION (OT)
Dimensions that Support Organizational
Learning Leadership
Organization culture
• Executive leaders are top managers who
• the shared beliefs, create a vision that embraces
expectations, and behavioral organizational learning principles, create
patterns that define the a new culture, and provide support to
organization’s identity to its local line leaders
members • Local line leaders, (change managers)
provide the impetus for change by
experimenting with new learning
• The culture needs to contain capabilities that may produce desired
elements that increase results
knowledge sharing • Internal Networkers or Community
throughout the organization Builders (change agents) “seed carriers”
who assist local line leaders in
experimenting and diffusing of new
ideas 23
 4. ORGANIZATION TRANSFORMATION (OT)
High Performance Work System (HPWS)

HPWS intervention strategy

HPWS - Multifaceted,
involving different
combinations of the
intervention strategies
discussed earlier
includes
• self-managed teams
• quality circles
• flatter organizational
structures
• new flexible technologies
• innovative compensation
schemes
• increased training
• continuous improvement
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 8 cores HPWS Principles
• Organization is by work units that are linked to processes
• They are aligned to an organization’s competitive
• - which enhances ownership, problem solving, and
strategy
1 5 learning

• Clear goals and outcomes are customer driven

• Workplace structures and systems facilitate focus,
• individual, team, and organizational goals and
accountability, cycle time, and responsiveness
2 outcomes are aligned 6

• Work is organized around processes that create products • They are characterized by collaboration, trust, and mutual
and services support
3 7

• They include process-oriented tracking and management

• Strategic change management is key
of results
4 8
 8 Factors for Successful
OCD
• Build external support (where
• Ensure the need
1 5 needed)

• Provide a plan • Provide resources

2 6

• Build internal support for change • Institutionalize change, i.e., make

3 and overcome resistance 7 it stick (“refreezing”)

• Ensure top management support

• Pursue comprehensive change
4 and commitment 8
 THANK YOU

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