Organizational Development & Change

Strategic
Interventions
 1.Meaning
2.Transformational change
Contents 3.Continuous change
4.Transorganizational change

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 Meaning
Strategic interventions involve a
deliberate attempt to move
organizations towards a more
effective state and improve
performance.

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Some of the basic interventions are:

Transformational
change

Continuous change

Trans organizational
change

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1. Transformational change

Transformational change are those

which are made to thoroughly
reshape the business strategy and
processes.

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For instance:

1 2 3 4 5
Restructuring Retrenchme Turnaround Outsourcing Spin-off
nt

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Restructuring
Changing your business’s structural chart by adding, removing, or
combining departments. It can be done when a company is struggling to
survive or looking to maximize its already profitable business.

Retrenchment
The process of terminating employees when the company is forced to
downsize its no. of employees.

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Turn around
Act of replacing all top management within a failing business to turn
things around.
Its types are voluntary turnover, involuntary turnover, retirement and
internal transfers.

Example:
If you have an average of 140 employees working during a month’s
time and 26 employees left, then the turnover rate would be 18.6%.

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 Outsourcing
It is the practice of hiring another company to complete tasks of
your own company. This is common in customer service
departments.
 
Example:
Google is a technology company and that’s what the strength and
heart of its business. They are one of the major companies that
outsource and have been outsourcing non core functions like admin
and IT work for years.

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 Spin-off
When a company creates a new independent company by selling or
distributing new shares of its existing business, its spin-off.
Example:
eBay and PayPal
eBay is a ecommerce company, which was in best interests of all
stakeholders for the two companies to operate separately.
Previously, PayPal, the financial payment processing company, had
been acquired by eBay aand had been a subsidiary since.

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 2. Continuous
change
This intervention encourages
companies to improve gradually over
time by making small changes.
The best-known example of
continuous change is start ups.

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Example
Startups are a great example of continuous change. Instagram started as
a location-based social network, and Groupon originated as a site for
collective activism. Through continuous experimentation and change,
these companies were able to evolve their offering to what it is today.
Successful startups create the first version of their
product, show it to prospective customers, collect feedback, and further
evolve their product based on that feedback. By repeating this process
many times in rapid succession, successful ventures are able to create a
product or service that is extensively validated by its customers. This is
continuous, or agile, change.

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3. Trans organizational change
Trans organizational change involves
interventions that include two or
more organizations. This can be in
the form of mergers or acquisitions
but also businesses working together
to achieve their objectives.

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Example
It stretch across such large and small granular entities as the
banking systems, financial institutions, health care delivery
systems, government policy-making bodies, the green
movement, and citizens advocacy movements. Each trans
organization has its own unique clusters of features, members,
resources, relations, activities, stage of development, processes,
structures and purposes.

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Thank you

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