Ch- 1 Organization Development and Reinventing the Organization: Ch- 1 Organization Development and Reinventing the Organization By: Radhika Gandhi Points to be covered: Points to be covered Meaning and Evolution of OD Who does OD? The Organizational Culture The Socialization Process Psychological Contracts A model for OD Meaning of OD: Meaning of OD OD comprises the long-range efforts and programs aimed at improving an organization’s ability to survive by changing it’s problem-solving and renewal processes. According to Richard Beckhard, Organization Development is an effort: (1)planned, (2) organization-wide, (3) managed from the top, (4) to increase organization effectiveness and health, through (5) planned interventions in the organization’s processes using behavioral science knowledge. Major Characteristics of OD: Major Characteristics of OD Planned by Managers to achieve goals Involves Involvement Emphasis on ways to improve and enhance performance Emphasis upon increased opportunity and use of human potential Relationships among Elements and Excellence Scientific Approaches supplement practical experience Change 2. Collaborative Approach Performance Orientation Humanistic Orientation Systems Approach Scientific Method Why OD?: Why OD? Organizations initiating large-scale change programs found that most cited reasons for beginning the change program are as follows: The level of competition Survival Improved performance The study also identified primary goals of change program as shown in the next slide. Slide 6: Primary Goals for change Program: Increase productivity Increase responsiveness Improve competitive position Increase employee involvement Increase employee morale Develop new managerial skills The Emergence of OD: Warren Bennis, a leading OD pioneer, has identified three factors as underlying the emergence of OD. The need for new Organizational forms The focus on cultural change The increase in Social Awareness The Only Constant Is Change : The Only Constant Is Change Today's managers need new mind-set Flexibility Speed Innovation Constantly changing conditions Successful Firms Share These Traits :
Successful Firms Share These Traits Faster Quality conscious Employee involvement Customer oriented Smaller In the next slide, we can see the figure showing the changing
of the twenty-first century.
Slide 9: Competitive uncertainty Regulations Prices Suppliers Changing consumers Lifestyles Trends Technology New Products New Technologies New Competitors Domestic Multinational The Org. of the Twenty-first century Faster Quality conscious Employee Involvement Customer Oriented Smaller Evolution of OD: Evolution of OD OD has evolved over the past 50 years from its beginnings as the application of behavioral science knowledge and techniques to solving organizational problems. The term Organization Development is widely attributed to Robert Blake and Jane Mouton (the originators of the Managerial Grid) and Herbert Shepard (a leading OD pioneer); but Richard Beckhard claims the distinction as well. OD emerged about 1957 and is generally conceded to have evolved from two basic sources: the application of laboratory methods by the National Training Laboratories (NTL) and the Survey Research methods originated by the Survey Research Center. Both methods were pioneered by Kurt Lewin around 1945. NTL Laboratory- Training Methods: NTL Laboratory- Training Methods In the late 1940s and early 1950s, laboratory-training methods were developed and applied by a group of behavioral scientists in bethel, Maine, Douglas McGregor, working with Richard Beckhard, began applying laboratory- training methods to industry at General Mills in 1956 and at Union carbide in 1957. About the same time, Herbert Shepard and Robert Blake were initiating a series of applied Behavioral science interventions at Esso, mainly using Laboratory- Training techniques to improve work team processes. Survey Research and Feedback: Survey Research and Feedback Meanwhile, a group at the Survey Research Center at the University of Michigan began to apply Kurt Lewin’s action Research Model to Organizations, Rensis Likert and Floyd Mann administered an Organization wide survey at Detroit Edison co. involving the systematic feedback of data to participating departments. They used what is termed an ‘Interlocking series of conferences’ feeding data back to Top management group and then down to work teams throughout the Organizations. Who Does OD?: Who Does OD? OD practitioners consist of specialists and those applying OD in daily work: Professionals and specialists trained in OD. Managers and leaders applying OD. OD specialists: Internal practitioners – from within organization External practitioners – from outside organization Cont….: Cont…. Activities include: Team leaders developing teams. Building learning organizations. Implementing total quality management. Creating boundary less organizations. The Organizational culture: The Organizational culture The term Organizational culture refers to a system of shared meanings, including the following: Dress Patterns of behavior Language Value system Feelings Attitudes Interactions Group norms What are Norms?: What are Norms? Organized and shared ideas of what members should do and feel How behavior is regulated Pivotal norms -essential to accomplishing organization’s objectives. Peripheral norms - support and contribute to pivotal norms but not essential to organization’s objectives. The Socialization Process: The Socialization Process Process that adapts employees to culture New employees become aware of norms Employees encounter culture Individuals understand power, status, rewards, and sanctions Slide 18: The Socialization Process Adjustment to Cultural Norms and Socialization Occurs in 3 Ways : Adjustment to Cultural Norms and Socialization Occurs in 3 Ways Rebellion - rejection of all values and norms Conformity - acceptance of all values and norms Creative individualism - acceptance only of pivotal values; rejection of others Slide 20: Rebellion Creative Individualism Conformity Rejection of All Values and Norms Acceptance of All Values and Norms Acceptance only of Pivotal Values; Rejection of all others Basic Responses to Socialization Psychological Contracts : Psychological Contracts Unwritten agreement between individuals and organization Open-ended so issues may be renegotiated A Model for OD: OD is continuing process with emphasis on viewing organization as total system of interacting and interrelated elements. Slide 22: The Model of OD Organization Development’s Five Stages:
Organization Development’s Five Stages Stage one: Anticipating need for change Someone recognizes need for change There must be felt need for change Stage two: Developing practitioner-client relationship OD practitioner enters system Good first impressions and match important Practitioner establishes trust, open
, shared responsibility
Slide 24: Stage three: The diagnostic phase Practitioner and client gather data about system Objective is to understand client’s problems, identify forces causing situation, and select change strategies Stage four: Action plans, strategies, and techniques Series of interventions, activities, or programs aimed at increasing effectiveness Programs apply OD techniques Stage five: Self-renewal, monitor, and stabilize As OD program stabilizes, need for practitioner decreases Monitor results Stabilize change Gradual disengagement of OD practitioner