TOPIC 6

ORGANIZATIONAL
DEVELOPMENT
AND CHANGE
DEFINITION

• A planned, systematic, and collaborative process that seeks to improve organizational

effectiveness and facilitate change through the use of behavioral science theories,
research, and technology.
• ODC involves interventions aimed at improving organizational systems, processes,
and culture, and enhancing employee skills and abilities to achieve strategic goals
and objectives.
• ODC is an ongoing process that requires continuous monitoring, evaluation, and
adaptation to ensure sustainability and success.
COMPETENCIES OF AN OD PRACTITIONER
• Intrapersonal skills
o Self-awareness
• Interpersonal skills
o Ability to work with others and groups
• General consultation skills
o Ability to manage consulting process
• Organization development theory
o Knowledge of change processes
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.
ORGANIZATION-LEVEL DIAGNOSTIC MODEL

Inputs Design Components Outputs

Technology
General

Effectiveness
Organization
Environment Strategy Structure
Industry
Structure

HR Measurement
Systems Systems

• Strategy • Human Resource Systems

– the way an organization uses its resources (human, economic,
or technical) to gain and sustain a competitive advantage – the mechanisms for selecting, developing, appraising, and
• Technology rewarding organization members
– the way an organization converts inputs into products and • Measurement Systems
services
• Structure – methods of gathering, assessing, and disseminating information
– how attention and resources are focused on task on the activities of groups and individuals in organizations
accomplishment
GROUP-LEVEL DIAGNOSTIC MODEL

Inputs Design Components Outputs

Goal Clarity

Organization Task Group Group

Design Structure Functioning Effectiveness

Group Performance
Composition Norms

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

Inputs Design Components Outputs

Organization Skill Variety
Design
Individual
Task Identity Effectiveness
Group Design Autonomy

Personal Task Feedback

Traits Significance about Results

• 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
THE DESIGN OF EFFECTIVE INTERVENTIONS
Contingencies Related to the Contingencies Related to the
Target of Change Change Situation
• Strategic
• Readiness for Change
Issues/intervention
• Capability to Change
• Technology and structure
• Cultural Context
issues
• Capabilities of the Change
• Human resources issues
• Human process issues Agent
MANAGING WORKFORCE DIVERSITY STRATEGY
AGE DIVERSITY GENDER DIVERSITY DISABILITY DIVERSITY
• Trends • Trends • Trends
– Median age up – The number of people with
– Percentage of women in
– Distribution of ages disabilities entering the
work force increasing work force is increasing
changing
– Dual-income families • Implications
• Implications
increasing – Job skills and challenge
– Health care
– Mobility • Implications issues
– Security – Childcare – Physical space design
• Interventions – Maternity/paternity leaves – Respect and dignity
– Wellness programs – Single parents • Interventions
– Job design – Performance management
• Interventions
– Career development and – Job design
planning – Job design
– Career planning &
– Reward systems – Fringe benefit rewards development
 ORGANIZATION DESIGN
Mechanistic Design Organic Design
Strategy • Cost minimization • Innovation
Structure • Formal/hierarchical • Flat/lean and flexible
• Functional • Matrix/process and network
Work Design • Traditional jobs • Enriched jobs
• Traditional work groups • Self manage team
Human Resource • Selection to fit job • Selection to fit organization
Practices • Upfront training • Continuous training and
• Standard reward development
• Par for performance and individual • Individual choice rewards
merit • Pay for performance and business
• Job based pay success
• Skill based pay
Management and • Command and control • Employee involvement
Information Systems • Closed, exclusive and centralized • Open, inclusive and distributed
information information
CHARACTERISTICS OF TRANSFORMATIONAL CHANGE

• Triggered by environmental and internal disruptions

• Aimed at competitive advantage
• Systemic and revolutionary change
• Demands a new organization paradigm
• Driven by senior executives and line management
• Involves significant learning
 ORGANIZATION LEARNING:
AN INTEGRATIVE FRAMEWORK (CONTINUOUS
LEARNING)
Organization Learning Knowledge Management Competitive
Strategy

Organization Organization Organization Organization

Characteristics Learning Processes Knowledge Performance
Structure Discovery Tacit
Information Invention Explicit
Systems Production
HR Practices Generalization
Culture
Leadership
TRANSORGANIZATIONAL RATIONALE
• Transorganizational strategies allow organizations to
perform tasks that are too costly and complicated for single
organizations to perform
• Goods and services are exchanged between organizations
and transactions occur
• Transorganizational strategies work best when transactions
occur frequently and are well understood
• Eg: merger and acquisitions
HR ANALYTIC - DATA
• There are three basic categories of data:
1. people;
2. process; and
3. performance.
• People data includes basic demographic information such as age, gender and
nationality as well as specific qualifications and skills the employee may have.
• This data can be gathered from a range of sources including questionnaires
and surveys.
• Data pertaining to individual reward and remuneration also falls within this
category.
HR ANALYTIC - DATA
• Processes level data which includes information on aspects such as employee
attendance, participation in training and development activities, leadership
development and key projects.
• Performance data encapsulates performance ratings from supervisors and
even peers or customers captured via 360 feedback, together with data
regarding goal attainment, talent and succession plans, and assessments.
VIEWS ON HR ANALYTICS
• Analytics is used not just to analyse past behaviour but also to shape future behaviour.
• HR adopt analytics in relation to data collection on employee behaviour and
organisational factors, it should be noted that the growing use of algorithms and
artificial intelligence in management will lead to further changes in how HR operate
and amend practices based on the findings derived from analytics.
• Indeed, Kellog et al. (2018) argue that management scholarship and research to date
has been more focused on the implications of big data for organisational strategy and
design (see for example Loebbecke and Picot, 2015) rather than focusing on the
effects on manager-worker dynamics.
• Kellogg et al. (2018) argue that the widespread implementation of algorithmic
technologies in organisations will reshape the nature of organisational control.
VIEWS ON HR ANALYTICS
• Godard (2019) points to the nature in which new technologies have
significantly altered the HRM terrain where advanced technology can
essentially attempt to eliminate the need for judgement or expertise in areas
such as selection, monitoring, and evaluation (Head, 2014: 66–71).
• Outright elimination of human intervention may not, in fact, be the best
course of action in all circumstances.
• It has implications beyond HR, on the workforce and employment
relationship, where the employee advocate role played by HR ceases to
function.