© 2009 Jones and Bartlett Publishers Chapter 17 Organization Development.

© 2009 Jones and Bartlett Publishers

Chapter 17Chapter 17

Organization DevelopmentOrganization Development


Organization Organization DevelopmentDevelopment

Organization development (OD) is Organization development (OD) is (1) a planned process of change (2) (1) a planned process of change (2) using behavioral science (3) in an using behavioral science (3) in an organization-wide process (4) organization-wide process (4) utilizing a systematic approach (5) utilizing a systematic approach (5) to problem solving with the goal of to problem solving with the goal of improving the effectiveness of the improving the effectiveness of the organization. organization.


Organization Organization DevelopmentDevelopment

To achieve the goals of improving To achieve the goals of improving organizational effectiveness through process organizational effectiveness through process change techniques, OD is:change techniques, OD is:

1.1. supported by multidisciplinary theories,supported by multidisciplinary theories,2.2. views organizations as open systems,views organizations as open systems,3.3. recognizes that if one part of the organization recognizes that if one part of the organization

is impacted by change, an effect will be felt in is impacted by change, an effect will be felt in another part of the organization,another part of the organization,

4.4. based on action research which is a based on action research which is a continuous examination of the progress of the continuous examination of the progress of the interventions, andinterventions, and

5.5. based on data. based on data.


The OD ProfessionalThe OD Professional

The OD professional’s primary The OD professional’s primary responsibility is to facilitate an responsibility is to facilitate an organization through a change organization through a change initiative. initiative.


Planning and Planning and Implementing ChangeImplementing Change

• Strategic Strategic • TechnostructuralTechnostructural• Human processHuman process• Human resource managementHuman resource management


InterventionsInterventions

• Team BuildingTeam Building• Process ImprovementProcess Improvement• Total Quality ManagementTotal Quality Management• Work RedesignWork Redesign• Structural ChangeStructural Change• TrainingTraining• Performance Management SystemsPerformance Management Systems


Appreciative InquiryAppreciative Inquiry

Appreciative Inquiry is designed to be a Appreciative Inquiry is designed to be a paradigm shift from the traditional action paradigm shift from the traditional action research model. research model.

Appreciative Inquiry suggests that for Appreciative Inquiry suggests that for organizational change to take place, it organizational change to take place, it needs to begin with the viewpoint of its needs to begin with the viewpoint of its positive attributes, and then ask the positive attributes, and then ask the questions that will take it in the direction questions that will take it in the direction of which it visualizes itself. of which it visualizes itself.



Resistance to Change and Resistance to Change and Change ManagementChange Management


Resistance to ChangeResistance to Change

““Change is a very complex Change is a very complex phenomenon involving the phenomenon involving the multiplicity of man’s motivations in multiplicity of man’s motivations in both micro and macro systems and both micro and macro systems and that a man gets satisfied with his that a man gets satisfied with his equilibrium and is resistant to equilibrium and is resistant to changing his changing his status quostatus quo.” .”

(Lippitt, 1973)(Lippitt, 1973)


Drivers of ChangeDrivers of Change

• External / socialExternal / social• Industry / taskIndustry / task• InternalInternal


Drivers of ChangeDrivers of Change


Organizational Barriers to Organizational Barriers to ChangeChange

• Lack of change agentLack of change agent• Inadequate financial and/or physical Inadequate financial and/or physical

resourcesresources• Poor leadership and resistance to Poor leadership and resistance to

change by senior managementchange by senior management• Lack of the necessary technologyLack of the necessary technology• Time constraintsTime constraints• Poor market conditionsPoor market conditions


Individual Barriers to Individual Barriers to ChangeChange

• Feelings of uncertainty based on the Feelings of uncertainty based on the unknownunknown

• Reduction in personal need fulfillmentReduction in personal need fulfillment• Real or perceived stressReal or perceived stress• Loss of status or “personal comfort Loss of status or “personal comfort

zones”zones”• Loss of equilibrium and personal Loss of equilibrium and personal

powerpower


Lewin’s Change ModelLewin’s Change Model

• Driving forces (the force for change)Driving forces (the force for change)• Restraining forces (the force for Restraining forces (the force for

resisting change)resisting change)

•UnfreezeUnfreeze•ChangeChange•RefreezeRefreeze


Kotter’s Eight Steps for Kotter’s Eight Steps for Successful Organizational Successful Organizational

ChangeChange1.1. Establish a sense of urgencyEstablish a sense of urgency2.2. Create a powerful guiding coalitionCreate a powerful guiding coalition3.3. Develop a visionDevelop a vision4.4. Communicate the visionCommunicate the vision5.5. Empowering others to act on the visionEmpowering others to act on the vision6.6. Planning for and creating short-term Planning for and creating short-term

winswins7.7. Consolidate improvements and produce Consolidate improvements and produce

more changemore change8.8. Institutionalizing new approachesInstitutionalizing new approaches


Costs and Benefits of Costs and Benefits of Organizational ChangeOrganizational Change

• The costs and benefits of making changes The costs and benefits of making changes within an organization are often difficult to within an organization are often difficult to measure. measure.

• Organizations should make every attempt to Organizations should make every attempt to evaluate the real savings obtained from a evaluate the real savings obtained from a planned change by creating measurable planned change by creating measurable goals. goals.

• Proposed changes in products, processes and Proposed changes in products, processes and service activities should be quantified, if service activities should be quantified, if possible, before the desired modifications are possible, before the desired modifications are implemented. implemented.



Overview and History of Overview and History of Organizational TheoryOrganizational Theory


History of Organization History of Organization TheoryTheory

The historical roots of organization theory The historical roots of organization theory can be found in the concepts developed can be found in the concepts developed during the Industrial Revolution in the late during the Industrial Revolution in the late 19th and early 20th centuries. 19th and early 20th centuries.

–Max Weber (1864-1920)Max Weber (1864-1920)–Henry Fayol (1841-1925)Henry Fayol (1841-1925)–Frederick Taylor (1856-Frederick Taylor (1856-1915) 1915)


What is Organizational What is Organizational Theory?Theory?

1.1. Organization theory (OT) is commonly referred to as the Organization theory (OT) is commonly referred to as the study of the behavior and nature of organizations in study of the behavior and nature of organizations in their environments.their environments.

2. Although organization theory emerged from the 2. Although organization theory emerged from the disciplines of sociology, economics, political science, disciplines of sociology, economics, political science, and psychology, similar to organizational behavior, the and psychology, similar to organizational behavior, the focus of OT is the organization as a whole.focus of OT is the organization as a whole.


What is an Organization?What is an Organization?

An organization is a collection of people An organization is a collection of people working together (i.e., social entity) under working together (i.e., social entity) under a defined structure to achieve a defined structure to achieve predetermined outcomes through predetermined outcomes through coordinated activities (i.e., processes).coordinated activities (i.e., processes).


Organization’s Formal Organization’s Formal StructureStructure

Kast and Rosenzweig (1985, p. 234) defines an Kast and Rosenzweig (1985, p. 234) defines an organization’s formal structure as:organization’s formal structure as:

• The pattern of formal relationships and duties – The pattern of formal relationships and duties – the organization chart plus job descriptions.the organization chart plus job descriptions.

• The way in which the various activities or tasks The way in which the various activities or tasks are assigned to different departments and/or are assigned to different departments and/or people in the organization (differentiation).people in the organization (differentiation).

• The way in which these separate activities or The way in which these separate activities or tasks are coordinated (integration).tasks are coordinated (integration).

• The power, status, and hierarchical The power, status, and hierarchical relationships within the organization (authority relationships within the organization (authority system).system).

• The planned and formalized policies, The planned and formalized policies, procedures, and controls that guide the procedures, and controls that guide the activities and relationships of people in the activities and relationships of people in the organization (administrative system).organization (administrative system).


Organization StructureOrganization Structure

• The formal structure of a company is The formal structure of a company is reflected by its organization chart reflected by its organization chart which reveals the complexity of the which reveals the complexity of the organization. organization.

• The more differentiated and diverse The more differentiated and diverse the activities (i.e., size, technology, the activities (i.e., size, technology, strategies) of the organization - the strategies) of the organization - the more integration is required, which more integration is required, which will result in a more complex structure. will result in a more complex structure.


Environmental Forces and the Environmental Forces and the Organization’s StructureOrganization’s Structure

The stability/instability and certainty/uncertainty The stability/instability and certainty/uncertainty of environmental forces greatly affect an of environmental forces greatly affect an organization’s structure.organization’s structure.

Questions to be answered:Questions to be answered:

1.1. How many forces does an organization How many forces does an organization need to deal with on a regular basis?need to deal with on a regular basis?

2.2. How diverse are these forces? How diverse are these forces?

3.3. How rapidly are these forces changing? How rapidly are these forces changing?


End

© 2009 Jones and Bartlett Publishers Chapter 17 Organization Development.

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