OD A Unique Change Strategy

CHAPTER #2
Semester: 8th
Organization Development- OD
BBA- Fall 2023
Lecturer: Habib Saleemi
 OD: A Unique Change Strategy

Consulting to organizations can take many forms.

For example, Edgar Schein describes three consulting models:
i. Purchase of Expertise Model
ii. Doctor-patient Model
iii. Process Consultation Model

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 i. Purchase of Expertise Model

• In the “purchase of expertise model,” a leader or group identifies

a need for information or expertise that the organization cannot
supply.
• The leader hires a consultant to obtain the information and make a
report, often including recommendations for action.
• Example would be (1) surveying consumers or employees about
some matter, (2) finding out how best to organize the company after
a merger, or (3) developing a marketing strategy for a new product.
• This is a typical consulting approach that is widely used.
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 ii. Doctor-patient Model

• In the “doctor-patient model,” a leader or group detects symptoms

of ill health in some part of the organization, and calls in a
consultant who diagnoses the situation, identifies the causes of
problems and then, like a physician, prescribes a cure.
• Examples would be calling in “the doctor” to examine (1) low
morale at a particular plant, (2) being over budget and behind
schedule on a major project, or (3) a high performing manager who
suddenly becomes a low-performer.
• This too is a well-known, traditional approach to consultation.

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 iii. Process Consultation Model

• In the “process consultation model,” the consultant works with the

leader and group to diagnose strengths and weaknesses, identify
problems and opportunities, and develop action plans and methods
for reaching desired goals.
• In this model the consultant assists the client organization in
becoming more effective at examining and improving its own
processes of problem solving, decision-making and action taking.

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 iii. Process Consultation Model

• This third model, typical in OD, encourages greater collaboration

between clients and consultants, engages the resources and talents
of the clients, and strengthens clients’ abilities to improve their
work processes.
• Examples would include working on any of the previously
mentioned problems, but using a collaborative, participative, you-
can-figure-out-the-right-answer-yourselves approach.
• An organization development consultant typically suggests general
processes and procedures for addressing problems and issues.
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 “Hallmarks/primary distinguishing characteristics
of organization development”

1. Change: OD is a planned strategy to bring about organizational

change. The change effort focuses on the human and social side of the
organization and in so doing, also intervenes in the technological and
structural sides.
2. Collaborate: OD typically involves a collaborative approach to
change that includes the involvement and participation of the
organization members most affected by the changes. Participation and
involvement in problem solving and decision making by all levels of
the organization are hallmarks of OD.

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 “Hallmarks/primary distinguishing characteristics
of organization development”

3. Performance: OD programs include an emphasis on ways to

improve and enhance performance and quality.

4. Humanistic: OD relies on a set of humanistic values about people

and organizations that aims at making organizations more effective by
opening up new opportunities for increased use of human potential.

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 “Hallmarks/primary distinguishing characteristics of
organization development”

5. Systems: OD represents a systems approach concerned with the

interrelationship of divisions, departments, groups, and individuals as
interdependent subsystems of the total organization.

6. Scientific: OD is based upon scientific approaches to increase

organization effectiveness. While the rest of characteristics, described
above, describe organization development, let us add another means
of identifying OD.

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 Phases in Change Process

Phases in Change Process

• Managers need to know in which phase they have to expect what
types of situations and problems.
• Most successful organizations are those that are able to adjust
themselves to new conditions quickly. This requires planned
learning processes that lead to improved organizational
effectiveness.
• Normally, people perceive change processes in seven typical stages
(Figure)

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The Psychodynamic Approach to Change

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 Phase Description
Shock and Surprise Confrontation with unexpected situations. This can happen ‘by accident’ (e.g. losses in particular
business units) or planned events (e.g. workshops for personal development and team performance
improvement).
Thus, their perceived own competence decreases.

Denial and Refusal People activate values as support for their conviction that change is not necessary. Hence, they
believe there is no need for change; their perceived competency increases again.
Rational Understanding People realize the need for change. According to this insight, their perceived competence decreases
again. People focus on finding short term solutions, thus they only cure symptoms. There is no
willingness to change own patterns of behavior.

Emotional Acceptance This phase, which is also called ‘crisis’ is the most important one. Only if management succeeds to
create willingness for changing values, beliefs, and behaviors, the organization will be able to exploit
their real potentials. In the worst case, however, change processes will be stopped or slowed down
here.
Exercising and Learning The new acceptance of change creates a new willingness for learning. People start to try new behaviors and processes.
They will experience success and failure during this phase. It is the change managers’ task to create some early wins
(e.g. by starting with easier projects). This will lead to an increase in peoples perceived own competence.

Realization. People gather more information by learning and exercising. This knowledge has a feedback-effect. People understand
which behavior is effective in which situation. This, in turn, opens up their minds for new experiences. These extended
patterns of behavior increase organizational flexibility. Perceived competency has reached a higher level than prior to
change.

Integration People totally integrate their newly acquired patterns of thinking and acting. The new behaviors become routine.
 A Model for Organizational Development:

• Organization development is a continuing process of long-term

organizational improvement consisting of a series of stages;

The emphasis is placed on a combination of individual, team, and

organizational relationships.

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Figure: 05 Organization Development’s Five Stages

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 Stage One: Anticipate a Need for Change:

• Before a program of change can be implemented, the organization must

anticipate the need for change.
• The first step is the manager's perception that the organization is somehow in a
state of disequilibrium or needs improvement.
• The state of disequilibrium may result from growth or decline or from
competitive, technological, legal, or social changes in the external environment.
• There must be a felt need, because only felt needs convince individuals to adopt
new ways.
• Managers must be sensitive to changes in the competitive environment, to
"what's going on out there."

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 Stage Two: Develop the Practitioner-Client Relationship:

• After an organization recognizes a need for change and an OD

practitioner enters the system, a relationship begins to develop
between the practitioner and the client system.
• The client is the person or organization that is being assisted.
• The development of this relationship is an important determinant of
the probable success or failure of an OD program.

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 Stage Two: Cont.…

• As with many interpersonal relationships, the exchange of

expectations and obligations (the formation of a psychological
contract) depends to a great degree upon a good first impression or
match between the practitioner and the client system.
• The practitioner attempts to establish a pattern of open
communication, a relationship of trust and an atmosphere of shared
responsibility.
• Issues dealing with responsibility, rewards, and objectives must be
clarified, defined, or worked through at this point.
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 Stage Three: The Diagnostic Phase:

• After the OD practitioner has intervened and developed a working

relationship with the client, the practitioner and the client begin to
gather data about the system.
• The collection of data is an important activity providing the
organization and the practitioner with a better understanding of
client system problems: the diagnosis.

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 Stage Four: Action Plans, Strategies, and Techniques:

• The diagnostic phase leads to a series of interventions, activities, or

programs aimed at resolving problems and increasing organization
effectiveness.
• These programs apply such OD techniques as total quality
management (TQM), job design, role analysis, goal setting, team
building, and inter-group development to the causes specified in the
diagnostic phase.
• In all likelihood, more time will be spent on this fourth stage than on
any of the other stages of an OD program.

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 Stage Five: Self-Renewal, Monitor, and Stabilize:

• Once an action program is implemented, the final step is to monitor

the results and stabilize the desired changes.
• This stage assesses the effectiveness of change strategies in
attaining stated objectives.
• Each stage of an OD program needs to be monitored to gain
feedback on member reaction to the change efforts.
• The system members need to know the results of change efforts in
order to determine whether they ought to modify, continue, or
discontinue the activities.
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• Once a problem has been corrected and a change program is
implemented and monitored, means must be devised to make sure
that the new behavior is stabilized and internalized.
• If this is not done, the system will regress to previous ineffective
modes or states.

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Thank you

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