reinventing the organization

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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.

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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 environment of the twenty-first century.

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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…. 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

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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

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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.

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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 communication, shared responsibility

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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

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