Organizational development + change

CH-14 Copyright 2008 Werner et al 1

Organization Development and Change

Chapter 14


Learning Objectives

• Define organization development (OD).

• Understand the basic theories and concepts of OD.

• Describe the planned-change model.

• Explain the roles of the change agent, manager, and people within the system in developing an intervention strategy.


Learning Objectives

• Understand the basic steps involved in• designing an implementation strategy• Explain the different types of intervention

strategies: – Human-process based– Techno-structural – Socio-technical– Organizational transformation

• Describe the role of HRD practitioners in OD interventions


Organization Development (OD)

• A process used to enhance both the effectiveness of an organization and the well-being of its members through planned interventions


Three Key Points

• OD enhances the effectiveness of the organization– Effectiveness, in this context, is defined as

achieving organizational goals and objectives

• OD enhances the well-being of organization members

• OD is used to enhance the effectiveness of organizations and individual well-being through planned interventions


Planned Interventions

• Sets of structured activities in which selected organizational units (target groups or individuals) engage with a task or sequence of tasks where the task goals are related directly or indirectly to organizational improvement


OD Theories and Concepts

• Change Process theory

• Implementation theory


Change Process Theory

• Seeks to explain the dynamics through which organizational improvement and changes take place

• Three stages– Unfreezing (readiness) – Moving (adoption)– Refreezing (institutionalization)


Unfreezing Stage

• Involves the process of getting people to accept that change is inevitable, and to stop doing certain things that resist change


Moving Stage

• Involves getting people to accept the new, desired state (e.g., new policies and practices)


Refreezing Stage

• Involves making the new practices and behaviors a permanent part of the operation or role expectations


Schein’s Three-Stage ModelTable 14-1

SOURCE: From Schein, E. H. (1987). Process consultation (vol. 2, p. 93). Reading, MA: Addison-Wesley.

Stage 1 Unfreezing—Creating motivation and readiness to change through

a. disconfirmation or lack of confirmation

b. creation of guilt or anxiety

c. provision of psychological safety




Stage 2 Changing through cognitive restructuringHelping the individual to see, judge, feel, and react differently based on a new point of view obtained througha. identifying with a new role model, mentor, and so on

b. scanning the environment for new relevant information




Stage 3 Refreezing—Helping the individual to integrate the new point of view into

a. his or her total personality and self-concept

b. significant relationships


Promoting Readiness to Change

• Discrepancy– the gap between the current and an ideal state;

addresses the question: “Why change?”

• Efficacy– confidence in the individual and group’s ability to

make the change; addresses the question: “Can we do this?”

• Appropriateness– perception that this is the right response to correct the

discrepancy identified; addresses the question: “Why this change?”


Promoting Readiness to Change

• Principal support– key organizational leaders support this

change; addresses the question: “Is management walking the talk?”

• Valence– the intrinsic and extrinsic benefits of the

change; answers the question: “What is in it for me?”


Implementation theory

• Focuses on specific intervention strategies that are designed to induce changes

• Four Types of Interventions– Human process-based– Techno-structural– Socio-technical systems (STS) designs– Large system


Human Process-Based Intervention Theory

• Place a heavy emphasis on the process of change, and focus on changing behaviors by modifying – individual attitudes– values– problem-solving approaches– interpersonal styles


Techno-Structural Intervention Theory

• Focuses on improving – work content – work method – work flow – performance factors– relationships among workers

• A key concept is job design


The Job

• A job has several distinguishing characteristics, including – individual tasks or duties– responsibilities – authority – relationships– skill requirements


Socio-Technical Systems (STS) Interventions

• Directed at the fit between the technological configuration and the social structure of work units … – (which) results in the rearrangement of relationships

among roles or tasks or a sequence of activities to produce self-maintaining, semiautonomous groups

• Empowering the worker to assume more lateral responsibility for the work. These innovations include quality circles, total quality management, and self-managed teams


Organization Transformation Change

• Views organizations as complex, human systems, each possessing a unique character, culture, and value system, along with information and work procedures that must be continually examined, analyzed, and improved if optimum productivity and motivation are to result


Limitations of OD Research

• The lack of true experimental designs in most OD research

• The lack of resources available to many OD practitioners

• The limitations of field research designs• Potential bias by OD evaluators (who are

often the designers of the intervention)• Simply a “lack of motivation” by the OD

evaluator to do the job correctly


Model of Planned Change

• Four distinct parts to this model– Distinguishes two types of intervention

strategies: OD and Organization Transformation (OT)

– Shows the relationship between change interventions and organizational target variables


Four Parts of Model

• Change Intervention

• Organizational Target Variables

• Individual Organization Member

• Organizational Outcomes


Model of Planned ChangeFig. 14-1

SOURCE: From Porras, J. I., & Silvers, R. C. Organization development and transformation. Reprinted, with permission, from the Annual Review of Psychology, Volume 43. Copyright 1991 by Annual Reviews. www.annualreviews.org.

Organizationtransformation

(OT)

Organizationdevelopment

(OD)

Vision Guiding beliefs and principles Purpose Mission

Working Setting Organizing arrangements Social factors Technology Physical setting

Alphachange

Betachange

Gamma(A)

change

Gamma(B)

change

COGNITIVE

CHANGE

Behaviorchange

Improvedorganizationalperformance

Enhancedindividual

development

ChangeIntervention

OrganizationalTarget

Variables

IndividualOrganizational

Member

OrganizationalOutcomes


Two Sets of Variables

• Vision Variables – which are the underlying organizational values, beliefs, and

principles that guide management decisions – provide the foundation for the purpose and mission of the

organization

• Work Setting Variables– directly related to or influenced by OD interventions and vision

variables– variables include

• policies, procedures, work rules, job descriptions, formal reporting lines, social factors, and communication patterns.

• In essence, these form the framework for organization structure


Types of Individual Cognitive Change

• Alpha changes are possible when individuals perceive a change in the levels of variables (e.g., a perceived improvement in skills) within a paradigm, without altering their configuration (e.g., job design)

• Beta changes are possible when individuals perceive a change in the value of variables (e.g., a change in work standards) within an existing paradigm, without altering their configuration



• Gamma (A) changes are possible when individuals perceive a change in the configuration of an existing paradigm, without the addition of new variables (e.g., changing the central value of a “product-driven” paradigm from “cost-containment” to “total quality focus;” this results in the reconfiguration of all variables within this paradigm)



• Gamma (B) changes are possible when individuals perceive a replacement of one paradigm with another that contains new variables (e.g., replacing a product driven paradigm with a customer-responsive paradigm)


Gamma Changes

• Gamma A and B changes refer to changes occurring at the organization level– Gamma A changes are directed at the

manner in which the operation’s mission or philosophy is accomplished, but where the core mission remains intact

– Gamma B changes are directed at the core mission or philosophy


Organizational Outcomes

• Focuses on how individual behavioralchanges can lead to two possible outcomes– improved organizational performance– enhanced individual development


Designing an Intervention Strategy

• Specific roles in the design and implementation phases

• Steps in designing an intervention strategy

• The role of the HRD practitioner in this process


Specific Roles

• Three distinct sets of roles that must be fulfilled when designing and implementing intervention change strategy– the change manager– the change agent– individuals within the system that is being

changed


Role of Change Manager

• Oversees the design of the intervention strategy.

• Has overall responsibility for – assessing the need for change – determining the appropriate intervention

activities – implementing the strategy– evaluating the result


Change Agent

• Assists the change manager in designingand implementing change strategy.

• Has primary responsibility for – facilitating all of the activities surrounding the

design – implementation of the strategy

• Must have the diagnostic skills needed to understand the culture of the group or system that is targeted for change


Roles of the Change AgentTable 14-2

SOURCE: From Burke, W. W. (1987). Organization development (pp. 146–148). Reading, MA: Addison-Wesley.

Role Definition When Appropriate

Advocate Highly directive role in which the change agent tries to influence the client to use a certain approach

When client is not sure of

the approach to take and

needs a lot of direction





Technical Specialist

Provides specific technical knowledge on special problems

When client seeks direction on a special problem.





Trainer or

Educator

Provides information about OD or different intervention strategies

When client needs training in some aspect of OD





Collaborator

in Problem

Solving

Provides assistance in problem analysis, identifying solutions, and action steps

When client needs assistance in decision making





Alternative

Identifier

Same as above, but does not collaborate

When client needs assistance in developing a decision making process





Fact Finder Serves as a research or data collector

When client needs are very specific





Process

Specialist

Facilitates meetings and group processes

When client’s needs are for process consultation





Reflector Helps client to understand

situation by reacting to

information

When client is not sure of the data and seeks clarification


Roles of Individuals

• Determined by the change manager


Time for a Change

• When need for change overcomes desire for status quo

Fig. 14-2Forces for Change Forces against Change

Increased competition

Supervisorysupport

Top management

STANDARDS

CURRENT

STANDARDS

NEW

Labor contract

Cost of implementation

Employees fear loss of jobs


Steps for Designing an Intervention Strategy

• Diagnose the Environment

• Develop an Action Plan– action plan specifies the intervention strategy

• Evaluate results of the intervention


Role of HRD Practitioners

• Two primary roles in the design of OD interventions– serve as change agents– serve as the evaluator of intervention

strategies


The Role of Labor Unions

• Management must first view union leaders as partners in change and emphasize that their commitment to long-term goals for change is as important as that of the top managers

• Both must be willing to make fundamental changes in accountability and in the ways employees perform their jobs

• Generally known as a cooperative agreement


Human Process Based Interventions

• Directed at improving interpersonal, intra-group, and inter-group relations

• Two Major Types– survey feedback – team building


Survey Feedback

• Systematic feedback of survey data to groups with the intent of stimulating discussion of problem areas, generating potential solutions, and stimulating motivation for change

• Data provide a snapshot of an existing situation


Developing a Survey

• Prior to doing survey, all must agree on– What organizational variables they are trying

to measure– How the survey will be designed and

implemented to ensure the data will be reliable and valid

– How best to present the survey results to the intended audience


Team Building

• Process used to improve a work group’s problem-solving ability and effectiveness

• Groups experience problems• Groups can become dysfunctional• When a group becomes dysfunctional

– relationships are strained– conflicts increase among the members– group output declines– members are more likely to quit


Group effectiveness

Depends on at least three main elements– the degree to which the group’s productive output

meets the standards of quantity, quality, and timeliness of the people who receive, review, and/or use the output

– the degree to which the process of carrying out the work enhances the capability of members to work together interdependently in the future

– the degree to which the group experience contributes to the growth and personal well-being of team members


Actions Prior to Team Building

• A preliminary diagnosis of the group’s need for team building

• A change agent should be selected

• Change manager and change agent should develop a general approach to the team-building sessions


Effectiveness of Human Process-Based Interventions

• Team building was the most effective human process-based intervention for modifying satisfaction and other attitudes

• Team building showed strong effects on productivity measures


Techno-Structural Interventions

• Purpose of techno-structural interventions is to – improve work content, work method, and

relationships among workers– lower costs by replacing inefficient materials,

methods, equipment, work-flow designs, and costly unnecessary labor with more efficient technology


Three Methods of TSI

• The most common techno-structural intervention strategies are – job enlargement– job enrichment– alternative work schedules


Job Enlargement Interventions

• Attempts to increase satisfaction and performance by consolidating work functions from a “horizontal slice” of the work unit to provide greater variety and a sense of the whole task


Job Enrichment

• Involves varying some aspect of the job in order to increase the potential to motivate workers

• Core job dimensions affect work outcomes, such as job satisfaction and intrinsic motivation, by determining the extent to which employees experience– meaningfulness of the work itself– responsibility for the work and its outcomes– knowledge of actual results of the work


Alternative Work Schedules (AWS)

• Allow employees to modify their work requirements to satisfy their personal needs

• Two most common AWS interventions – compressed workweek– flextime


Effectiveness of Techno-Structural Interventions

• Alternative work schedules and job redesign had a moderate effect on measures of work output, such as quality and quantity of production

• Work rescheduling interventions had a small but significant effect on measures of withdrawal behavior

• Techno-structural interventions had less effect than human process-based interventions


Effectiveness of Techno-Structural Interventions

• Alternative work schedules had a greater effect on attitude than did job design/ enlargement or job enrichment

• Job enlargement and job enrichment interventions brought about the same amount of overall change (42 percent change), with enrichment having a greater effect on productivity


Socio-Technical Systems (STS)

• STS interventions focus on the combination of organizational structural demands– e.g., work flow, task accomplishment, and

performance) and social demands• e.g., relationships among workers


The Quality Circle (QC) Approach

• Gets employees involved in making meaningful work decisions including, but not limited to, solving job-related problems


Common Characteristics

• QC roles—the steering committee, the facilitator, and the circle leader

• Participants receive training in group process, diagnosing problems, and problem-solving skills

• Each circle meets on a regular basis to discuss issues like improvement of the work procedures and product quality, working conditions and facilities


Overall Effectiveness of QCs

• Mixed reviews• There were significant effects on cognitive

measures of a sense of competence and interpersonal trust, and on some measures related to properties of the task environment, such as goal congruence

• QC participants reported significantly greater attachment to the organization as the study progressed

• The QC process generally produced little overt enhancement in participants’ work performance


Total Quality Management (TQM)

• A set of concepts and tools for getting all employees focused on continuous improvement, in the eyes of the customer


Five Basic TQM Components

• Five basic components– total commitment from senior management– quality standards and measures– training for employees– communication– reward, recognition, and celebration


Implementing TQM

• Senior management needs to guide the implementation of TQM

• Quality standards and measures serve as benchmarks for TQM

• TQM emphasizes the role of each manager in terms of reducing cost, particularly nonconformance cost cause by deviations from performance standards


Providing Critical TQM Training

• Providing quality training to participants is critical to overall success

• Organizations that seek to implement TQM must make a major investment in training


TQM Training

• Begin with sensitizing managers at all levels to the philosophy and principles of TQM.

• All managers need training in both TQM awareness and how to implement TQM principles

• Employees may need training in statistical process control (SPC) techniques or other aspects of “Six Sigma” interventions

• Because problem-solving teams are almost always a part of a TQM intervention, team-building training should be included in quality training


Rewards, Recognition, and Celebration

• Three kinds of rewards – Individual monetary rewards– Group monetary awards– Non-monetary rewards


Self-Managed Teams (SMTs)

• Formal groups in which the group members are interdependent and can have the authority to regulate the team’s activities


Common SMT Characteristics

• There is an interdependent relationship between members of the team

• Members have discretion over such things as work assignment, work methods, work schedules, training, and dealing with external customers and suppliers

• Team members have a variety of skills that allow them to perform several tasks

• The team receives performance feedback


Demonstrated SMT Benefits

• Productivity increases

• Better quality products and services

• Higher employee morale

• Reduced or flatter management hierarchy

• More responsive organizational structures


SMT Effectiveness Indicators

• Self-managed teams were more effective on a variety of indicators:– productivity– quality – safety – customer complaints– absenteeism


Differences Between TQM and SMT Interventions

• TQM is a participative process – participation per se does not always equalize power

and may even increase discrepancies

• SMT: each team is empowered with the authority to make decisions without the concurrence of a supervisor

• TQM: do not have the authority to implement changes

• SMT approach requires significant changes in organizational structure


Role of HRD in STS

• HRD practitioners can be responsible for– designing and implementing the training

programs needed to make STS interventions work.

– helping employees adjust to new roles within the STS design

– determining the appropriate level of employee participation


Two Types of Participation

• Representative programs allow employee participation on organizational committees such as advisory committees, employee councils, grievance committees, safety committees, and even boards of directors

• Consultative programs allow employees to participate directly in job-related issues that affect their daily work life– This is the approach used by most SMTs


Organization Transformation (OT)

• A system of shared values, beliefs, and norms that are used to interpret elements in the environment and to guide all kinds of behavior


Types of Change

• Cultural changes involve a complex process of replacing an existing paradigm or way of thinking with another

• Strategic changes are any fundamental changes in the organizational purpose or mission requiring system-wide changes


Cultural Changes

• Involve a complex process of replacing an existing paradigm or way of thinking with another


Mechanisms that Sustain Organizational Culture

Table 14-3

• What managers pay attention to• The ways managers react to critical incidents• Role modeling, coaching, and organizational

training programs• Criteria for allocating rewards and status• Criteria for recruitment, selection, promotion,

and removal from the organization

SOURCE: From Woodman, R. W. (1989). Organization change and development: New areas for inquiry and action. Journal of Management, 15(2), 217.


Strategic Changes

• System-wide changes can have three dimensions– The size of the change refers to the number of

employees affected by the change– The depth of the change refers to the extent to which

the change involves limited structural changes or goes to core values of the organization.

– The pervasiveness of the change refers to how many functions and hierarchical levels of the organization will be directly impacted by the change


Organizational Learning

• Key components of a successful TQM intervention is an emphasis on learning

• Managers and employees are asked to – learn a common language for improvement,– learn new tools and techniques, and – learn to take the initiative in improving work

outcomes


Information Transfer

• Need to develop the capacity to transfer knowledge across the organization

• TQM focuses on specific processes and tasks– does not lead to flexible and adaptive thinking– lessons learned are often not shared and

applied outside of the specific area


Learning Organization

• An organization in which everyone is engaged in identifying and solving problems, enabling the organization to continuously experiment, improve, and increase its capability


Three Different Levels of Learning

• Single-loop learning – emphasizes the identification of problems and then

taking corrective action

• Double-loop learning – emphasizes understanding and changing the basic

assumptions and core values that led to a particular problem

• Deuterolearning – directed at the learning process by improving how the

organization performs single- and double-loop learning


Single-Loop Learning

• Commonplace in continuous improvement programs– Because employees are taught to identify

problems and correct them– This type of learning is still important in the

day-to-day performance of a learning organization


Double-Loop Learning

• Involves changing basic assumptions and core values about how they work


Deuterolearning,

• The highest level of learning

• Essentially learning to learn


Dimensions that Support Organizational Learning

• Structure – One of the key dimensions of organizational

learning is the reduction or removal of hierarchical barriers that divide managers and employees

– In their place, learning organizations have implemented more collaborative structures like self-managed teams and cross-functional teams



• Information acquisition, sharing, and retention– management must institute structures and

practices that encourage information sharing and retention

– Knowledge can be acquired from both internal and external sources



• HRM practices– number of practices that are necessary to

support organizational learning• performance appraisal and reward systems that

reinforce long-term performance and the development and sharing of new skills and knowledge



• Organization culture – the shared beliefs, expectations, and

behavioral patterns that define the organization’s identity to its members

– The culture needs to contain elements that increase knowledge sharing throughout the organization



• Leadership– Executive leaders are top managers who create a

vision that embraces organizational learning principles, create a new culture, and provide support to local line leaders

– Local line leaders, (change managers) provide the impetus for change by experimenting with new learning capabilities that may produce desired results

– Internal Networkers or Community Builders (change agents) “seed carriers” who assist local line leaders in experimenting and diffusing of new ideas

• This is a role that HRD practitioners can fill


High Performance Work Systems

• Multifaceted, involving different combinations of the intervention strategies discussed earlier


Common HPWS Characteristics

• HPWS intervention strategy includes – self-managed teams– quality circles– flatter organizational structures– new flexible technologies– innovative compensation schemes– increased training– continuous improvement


Eight Core HPWS Principles• They are aligned to an organization’s competitive strategy• Clear goals and outcomes are customer driven

– individual, team, and organizational goals and outcomes are aligned

• Work is organized around processes that create products and services

• They include process-oriented tracking and management of results• Organization is by work units that are linked to processes

– which enhances ownership, problem solving, and learning• Workplace structures and systems facilitate focus, accountability,

cycle time, and responsiveness• They are characterized by collaboration, trust, and mutual support• Strategic change management is key


HPWS Framework

Fig. 14-3

SOURCE: Van Buren, M. E., & Werner, J. M. (1996). High performance work systems. Business & Economic Review, 43(1), October–December, 15–23. Reprinted by permission.


Role of HRD in OT

• Serve on strategic change committees– give advice on training and development– help strategic planners look at various

alternatives and their potential impact on people

• Address impact of impact of mergers, acquisitions, and downsizing on workers


HRD Applications as OD Interventions

Table 14-4

Level Emphasis HRD Application

Human Process

Based

Human

Needs

Job

Satisfaction

Individual differences

Norms and values

Team effectiveness

Career development; stress

management; coaching

Cross-cultural training

Orientation; socialization

Team training



Table 14-4


Techno- structural

Job competencies Skills and technical training



Table 14-4


Socio-technical

Self-managed teams

Total quality management

Team training

Quality training



Table 14-4


Organization

Transform-ation

Reorganization

(downsizing)

Continuous learning

Employee assistance programs

Management Development

High performance work systems


Eight Factors for Successful Organizational Change

1. Ensure the need2. Provide a plan3. Build internal support for change and

overcome resistance4. Ensure top management support and

commitment5. Build external support (where needed)6. Provide resources7. Institutionalize change, i.e., make it stick

(“refreezing”)8. Pursue comprehensive change

Organizational development + change

Education

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