Organization
Development and
Change
Fathul Himam
What is an organization?
a consciously coordinated social entity
with a relatively identifiable boundary
functions on a relatively continuous
basis
to achieve a common goal
Why organization exist?
Increase specialization
and division of labor
use large scale of
technology
The use of an
organization
allows people
jointly to:
manage the external
environment
economize on transaction
cost
exert power and control
Which increase
the value that
organization
can create
Approach to Measuring Organizational
Effectiveness
Approach
External
resource
approach
description
goals to set to measure
effectiveness
Lower cost of input
Evaluate the organizations
Obtain high-quality input & raw
ability to secure, manage,
material & employees
and control scare and valued
Increase market share
skill and resource
Increase stock price
Gain support of stockholder such as
government or environmentalist
Internal
system
approach
Evaluate the organizations
ability to innovate and
function quickly and
responsively
Cut decision making time
Increase rate of product innovation
Increase coordination & motivation of
employees
Reduce conflict
Reduce time to market
Technical
approach
Evaluate the organizations
ability to convert skills and
resource into goods and
services efficiently
Increase product quality
Reduce number of defects
Reduce production cost
Increase customer service
Reduce delivery time to customer
Life Cycle Perspective
Pattern of predictable stages through which
organization proceeds:
1.
2.
3.
4.
5.
Entrepreneurial stage
Formation stage
Infancy
Collective stage
Clarification of missions
Commitment to goals
Formalization-and-control stage
Stabilization
Roles are defined
Elaboration-of-structure stage
Diversifies its product and service
Growth opportunities are searched
Decentralization
Decline stage
Maturity
ec
lin
e
ro
wt
h
at
Form
i on
1. Entrepreneurial
stage:
Ambiguous
goals
High
creativity
2. Collectivity
Stage:
Informal
communicati
on and
structure
High
commitment
3. Formalizationand-control
stage:
4. Elaboration-ofstructure stage:
Formaliza
More complex
structure
tion of rules
Decentralization
Stable
structure
Diversified
markets
Emphasis of
5. Decline stage:
High
employee
turnover
Increased
conflict
centralization
ENVIRONMENT
System
Inputs
Transformation
Process
Output
Environment
Individual
cognitions
On-the-job
behavior
Members
Work setting
Members
Social
factors
Technology
Organization
Organizational
performance
Individual
development
Organization
Organizing
arrangement
Physical
setting
Work setting
Organization
Purpose
Environment
Purpose
Physical
setting
Organizing
arrangement
Technology
Social
factors
1.
2.
3.
4.
Goals
Strategies
Structure
Administrative
policies and
procedures
5. Administrative
systems
6. Reward systems
7. Ownership
1. Culture
2. Management
style
3. Interaction
process
4. Informal patterns
and network
5. Individual
attributes
1. Space
configuration
2. Physical
ambience
3. Interior design
4. Architectural
design
Factors Constituting the Organizational Work Setting
1. Tool equipment,
and machinery
2. Information
technology
3. Job design
4. Work flow design
5. Technical expertise
6. Technical
procedures
7. Technical systems
A glossary of some open systems concepts
The concept of an open system. Organic systems, complex organism
and population of organisms exist in a continuous exchange with their
environment.
Homeostasis. Self-regulation and the ability to maintain a steady state.
Entropy/negative entropy. Closed systems are entropic - a tendency
to deteriorate, while open systems attempt to sustain by importing
energy to offset entropy
Structure, function, differentiation and integration. The
relationship between these concepts is of crucial importance for
understanding living organism.
Requisite variety. Internal regulatory mechanism of a system must be
as diverse as the environment with which it is trying to deal
Equifinality. There may be many different ways of arriving at a given
end state
System evaluation. The capacity of a system to evolve depends on an
ability to move to more complex forms of differentiation and integration,
and greater variety in the system facilitating its ability to deal with
challenges and opportunities posed by environment.
Why is it Important to Adapt to
Change?
Individuals, teams, or organizations that
do not adapt to change in timely ways
are unlikely to survive.
18-11
Adapting to Change
Individuals, teams and
organizations that
recognize the
inevitability of change,
learn to adapt to it, and
attempt to manage it,
will be the most
successful.
18-12
What is Change?
Coping process of moving from a
unsatisfactory present state to a desired
state
18-13
Organization Development
(French, W.L. and Bell, C.H, 1995)
Organization development (OD) is a long term effort,
led and supported by top management, to improve an
organizations visioning, empowerment, learning, and
problem-solving processes, through an ongoing,
collaborative management of the organization culture with special emphasis on the culture of intact work
teams and other team configurations - utilizing the
consultant-facilitator role and the theory and technology
of applied behavioural science, including action
research.
(French, W.L. and Bell, C.H, (1995). Organization Development:
Behavioural Science Interventions for Organization Improvement, Fifth
Organization Development
(McCalman, J & Paton, R (1992)
Organization development is an ongoing process of
change aimed at resolving issues within an
organization through the effective diagnosis and
management of the organizations culture. This
development process uses behavioral and social science
techniques and methodologies through a consultant
facilitator and employs action-research as one of the
main mechanism for instigating change in
organizational groups.
(McCalman, J & Paton, R (1992). Change Management Guide to Effective
Implementation, London, P.C.P. p 131).
Basic Assumptions of OD as a Model for
Change - 1
It emphasises goals and processes with
emphasis on processes
It deals with change over medium and longterm
It is about people and recognizes their worth
It involves the organisation as a whole as well
as its parts
It emphasises the concept of a change
agent/facilitator
Basic Assumptions of OD as a Model for
Change - 2
It uses action research as a means of
intervention
It is participative, drawing on theory and
practices of the behavioural sciences
It subscribes to a humanistic philosophy of
openness
It is a process of facilitation at the individual,
group and organisational level
It has top-management support and
involvement
What is Organization Development?
CUMMINGS & WORLEY (2005)
ORGANIZATION DEVELOPMENT
is a process that applies behavioral social
knowledge and practices to help
organizations build their capacity to change
and to achieve greater effectiveness: increased
financial performance and improved quality
of work life.
SPECIFIC OBJECTIVES OF OD
WARREN BENNIS:
to improve interpersonal competence
to encourage a shift in employees values
to enhance mutual understanding
among and within groups
to develop better methods of conflict
resolution involving rationality and openness to replace
the bureaucratic
method (e.g. suppression,
compromise, power)
to emphasis on group, mutual trust, shared
responsibility and control,
multi-group
membership, extensive bargaining
SPECIFIC OBJECTIVE OF OD
MICHAEL BEER
to generate valid data about the state of the
organization in relation to its environment
to clarify the desired outcomes of
organization and individual employee
to help organizations make strategic choices
based on a diagnosis of the current situation
and desired outcomes
So, whats OD related to?
OD applies to changes in the strategy, structure, and
processes of an organization and its dimensions
OD is based on the application and transfer of behavioral
science knowledge and practice; including micro-concepts
(leadership, group dynamics) and macro-approaches
(strategy, organization design)
OD is concerned with managing planned change; an adaptive
process for planning and adapting to change
OD involves in creation of reinforcement of change as an
instrumental process to stabilize and institutionalize change in
a longer-term
OD is oriented to improving organizational effectiveness and
quality of work life
SIMPLIFYING THE OBJECTIVES
TO ENHANCE PRODUCTIVITY AND
ORGANIZATIONAL EFFECTIVENESS
TO PROMOTE QUALITY OF WORK
LIFE
FOUR DIMENSIONS OF ORGANIZATION
EFFECTIVENESS
DIMENSIONS
DEFINITION
An organization is effective to the extent
that it .
WHEN USEFUL
The definition is preferred
when .
GOAL
ATTAINMENT
Accomplishes its stated goals
Goals are clear, time bound,
and measurable
SYSTEM
It acquires needed resources
A clear connection exists
between inputs and outputs
STRATEGIC
CONSTITUENCI
ES
All strategic constituencies are at least
minimally satisfied
Constituencies have powerful
influence on the organization,
and the organization must
respond to their demands
COMPETING
VALUES
The emphasis of the organization in the
four major areas (i.e. return on
investment, market share, new-product
innovation, job security) matches
constituent preferences
The organization is unclear
about its own emphases, or
changes in criteria over time
are of interest
Quality of Work Life
Initiated by Eric Trist at the Tavistock
Institute of Human Relations
Providing employees with high levels of
discretion, task variety, and feedback
about results
Discovery of self-managing work group
design
Employee Involvement, empowerment
are the main concerns
CRITERIA OF ORGANIZATION
EFFECTIVENESS
CRITERIA
FLEXIBILITY
ACQUISITION OF
RESOURCES
PLANNING
PRODUCTIVITY AND
EFFICIENCY
AVAILABILITY OF
INFORMATION
STABILITY
COHESIVE WORK
FORCE
SKILLED WORK
FORCE
DEFINITION
ABLE TO ADJUST WELL TO SHIFTS IN EXTERNAL
CONDITIONS AND DEMANDS
ABLE TO INCREASE EXTERNAL SUPPORT AND EXPAND
SIZE OF WORK FORCE
GOALS ARE CLEAR AND WELL UNDERSTOOD
VOLUME OF OUTPUT IS HIGH, RATIO OF OUTPUT TO
INPUT IS HIGH
CHANNELS OF COMMUNICATION FACILITATE
INFORMING PEOPLE ABOUT THINGS THAT AFFECT
THEIR WORK
SENSE OF ORDER, CONTINUITY, AND SMOOTH
FUNCTIONING OF OPERATIONS
EMPLOYEES TRUST, RESPECT, AND WORK WELL WITH
EACH OTHER
EMPLOYEES HAVE THE TRAINING, SKILLS, AND
CAPACITY TO DO THEIR WORK PROPERLY
NEW CHALLENGES
DYNAMIC GLOBAL ECONOMY
BE CUSTOMER RESPONSIVE
PROFITABILITY THROUGH COST AND GROWTH
REDEFINITION OF ORGANIZATION CAPABILITIES
AS THE DNA OF COMPETITIVENESS
LEARNING TO CHANGE: ADAPTATION AND
TRANSFORMATION
MANAGERIAL INNOVATION
KEEPING UP TO TECHNOLOGY INNOVATION
ATTRACTING, RETAINING, AND MEASURING
COMPETENCE AND INTELLECTUAL CAPITAL
CHANGING EMPLOYEE DEMOGRAPHICS, E.G.
MORE WOMEN IN THE WORKFORCE
THEMES IN CHANGING AND
DEVELOPING ORGANIZATION
SPEED
FLEXIBILITY
INTEGRATION
INNOVATION
MINDSET: ALLOW IDEAS, COMPETENCIES
EMERGE AT ALL LEVELS THROUGH:
- LEARNING
- SHARING KNOWLEDGE
- GROUPING PHYSICAL AND INTELLECTUAL
ASSETS
Research Findings
MASSAGING CHAOTIC SITUATIONS: UNDERSTANDING THE
PROCESS OF INDIVIDUAL ADAPTIVE STRATEGIES TO CHANGE.
A META-ETHNOGRAPHIC ANALYSIS
ASIAN APPLIED PSYCHOLOGY INTERNATIONAL-REGIONAL CONFERENCE BANGKOK - 14 - 16 OF NOVEMBER 2005
FATHUL HIMAM
FACULTY OF PSYCHOLOGY
UNIVERSITAS GADJAH MADA
JOGJAKARTA, INDONESIA
FATHULHIMAM@YAHOO.COM
Cloaking Tactic
Develop
Collegiality
Individual
Sense-making
Adaptive
Entrepreneurship
strategies
Acquisition of Skills
SelfDiscovery
Levels of Behavioral Strategies to Change
Actual Behavior
End-Result
Action
-
Purpose
Basic Ground
Latent Behavior
Integrative Summary of Themes
Theme
Cloaking Tactic
Basic Ground
Psychological
adjustment
Resistence to
change
Hostility and
ambivalence
Confusion
Uncertainty
Sense-making
Problem
identification
Sensing the
situation
Willingness to
change
Be rational
Purpose
Action
End-Result
Masking true
intent
Personal
agenda
Control
Rationalization
Pretending
Withdrawl
Ignorance
Avoidance
Self-contained
Express hurt
Survive
Sense of
integrity
New insight
Status vs.
objective
Integrative
scheme
Re-frame
conception
Repairing
mistakes
Re-evaluation
A change in
thinking
Tolerance to
uncertainty
Experiencing
new situation
Theme
Basic Ground
Purpose
Action
Acquisition of
skills
Learning
New view point
Ability
measurement
Response new
needs
Self development
Establish
expertise
Increase ability
New experiences
Adaptation
More education
Training and
development
Transfer
Maximization
efforts
Vulnerable
position
Independence
Career
advancement
Self-employed
Production
Selfdiscovery
Psychological
adjustment
Inner strength
Emotional
energy
Spiritual
significance
Experimentation
Survival
Hope
Be sensitive
Proactive
Changing
attitude and
Acceptance
Commitment to
change
Comfortable
working
Enthusiasm
behavior
Internalization
new reality
End-Result
Theme
Basic Ground
Purpose
Action
End-Result
Entrepreneurship
Competitive
mind-set
Confront the
challenge
Control and
autonomy
Entering new
market
Be political
Negotiate
Socialize
Enter labor
market
Gain power
New
opportunity
Improvement
Develop
collegiality
Harmony
Trust
Relationship
Commitment
Collective
actions
Tactic and
strategy
Consensus
Buffering
function
Work together
Team spirit
Support
Connection
Facilitative
Alliance
People fullcircle
Integrative Summary of the Concepts Involved
Strategies
Individual
Maintenance
Cloaking tactic
Sense-making
Acquisition of skills
Self-discovery
Adaptiveness
Entrepreneurship
Develop collegiality
Parameters
Efficiency
Effectiveness
The Process of Individual Adaptive Strategies to Change
TIME
INTERMEDIATERUN
SHORT-RUN
LONG-RUN
ADAPTATION PROCESS
Maintenance
Adaptiveness
INVENTING
Individual
THE FUTURE
Maintenance
Adaptiveness
CHANGING SITUATION
PARAMETER OF THE PROCESS
Effectiveness
Efficiency
ENVIRONMENT
COMPONENTS OF REFLECTIVE LEARNING (BOYD & FALES,
1983) IN RELATION WITH THEMES
COMPONENT
INDIVIDUAL
THEMES
1.SENSE OF DISCOMFORT
CLOAKING TACTIC
2. IDENTIFICATION/ CLARIFICATION OF THE CONCERN
SENSE-MAKING
3. OPENNESS TO NEW INFORMATION
ACQUISITION OF NEW
SKILLS, SELF-DISCOVERY
4. RESOLUTION
ENTREPRENEURSHIP,
DEVELOPMENT OF
COLLEGIALITY
5. ESTABLISHING THE CONTINUITY OF SELF
INVENTING THE FUTURE
6. DECISION TO TAKE ACTIONS
INVENTING THE FUTURE
MODELS IN PLANNING CHANGE
FOCUS:
- HOW CHANGE CAN BE IMPLEMENTED IN
ORGANIZATION
- WHAT ACTIVITIES MUST BE CARRIED OUT
MODELS:
- LEWIN CHANGE MODEL
- ACTION RESEARCH MODEL
- POSITIVE MODEL
Planned Change Models
Lewin
Lewins Planned
Change Model
Unfreezing
Action Research
Model
Positive Model
Problem Identification
Initiate Inquiry
Consultation with Behavioral
Science Expert
Inquire into Best Practices
Data Gathering and Preliminary
Diagnosis
Feedback to Key Client or Group
Moving
Discover Themes
Joint Diagnosis of Problem
Envision a Preferred Future
Joint Action Planning
Action
Data Gathering after Action
Refreezing
Design and Deliver
Ways to Create the Future
LEWIN CHANGE MODEL
CHANGE IS A MODIFICATION OF FORCES THAT KEEP A SYSTEMS
BEHAVIOR STABLE
THE FORCES ARE THOSE THAT:
- MAINTAIN THE STATUS QUO
- PUSH FOR CHANGE
MODIFYING THOSE FORCES THAT MAINTAIN THE STATUS QUO
PRODUCE LESS TENSION AND RESISTENCE THAN INCREASING
FORCES FOR CHANGE
STEPS:
UNFREEZING:
- REDUCING THE MAINTENANCE FORCES
- PSYCHOLOGICAL DISCONFIRMATION: CONTRASTING DESIRED
AND CURRENT BEHAVIOR
MOVING:
- DEVELOPING NEW BEHAVIOR
- CHANGES IN STRUCTURE AND PROCESS
REFREEZING:
- REINFORCE NEW STATE OF EQUILIBRIUM
- ESTABLISH NEW CULTURE, NORMS, POLICIES, STRUCTURE
Lewins Three Step Process to Changing
Behavior
UNFREEZING
Resistance to change lessened,
need for change created
(Equilibrium disturbed)
MOVING
From old behavior
to the new
(Changes)
REFREEZING
Change made
permanent
Unfreezing
Shaking up
Disconfirmation of old ways of doing things
Questioning & challenging of established
wisdom
Moving
Making the actual changes to move to the
new state of existence.
Includes the development of new strategies,
structures, systems & responsibilities and
the shedding of old ones.
Refreezing
Stabilizing, institutionalizing the changes.
Making sure the organization doesn't go
backwards to the old state.
Reinforcement of the changes through
symbols, such as changed logos, dress
code , building design, structures.
Refreezing???
Re-freezing may not be appropriate in an
era of continuous change, so maybe this
stage involves something more like
stabilizing.
LEWIN MODEL
UNFREEZING
EXISTING
BEHAVIOR
CREATION OF
QUESTIONS AND
UNCERTAINTY
REFREEZING
MOVING
INTRODUCTION
OF NEW
BEHAVIOR
CONSOLIDATION
OF NEW
BEHAVIOR
NEW
BEHAVIOR
ACTION RESEARCH MODEL
CYCLICAL PROCESS OF CHANGE
INITIAL STEPS OF CHANGE WILL ESTABLISH INFORMATION
FOR THE NEXT STEPS
STEPS:
- PROBLEM IDENTIFICATION
- CONSULTATION WITH A BEHAVIORAL
SCIENTIST
- DATA GATHERING AND PRELIMINARY
DIAGNOSIS
- FEEDBACK TO KEY CLIENT OR GROUP
- JOINT DIAGNOSIS OF PROBLEMS: ESTABLISH A
COMMON FRAME OF THINKING
- JOINT ACTION PLANNING
- ACTION: ACTUAL CHANGE
- DATA GATHERING AFTER ACTION
Action Research
Action research is central to EACH STAGE
of the OD process.
It is a collaborative effort between the
leaders and facilitators of any change and
those who have to enact it.
It involves data gathering, feedback of data
to the client group, data discussion, action
planning, and action.
Therefore, action research is, as its name
suggests, a combination of research and
action.
Action Research
Action research involves collecting data
relevant to the situation of interest, feeding
back the results to those who must take
action, collaboratively discussing the data
to formulate an action plan, and finally,
taking the necessary action.
POSITIVE MODEL
DEVELOP A CHANGE PROCESS FOR MORE COMPLEX SYSTEM
PROMOTING:
- COORDINATION ACROSS MULTIPLE CHANGE PROCESES
- TAILORED TO FIT CULTURAL ASSUMPTIONS
- SOCIAL CHANGE AND INNOVATION
STEPS:
- CHOOSING POSITIVE ASPECTS OF THE
ORGANIZATION TO
BE EXAMINED
- GATHERING DATA ABOUT THE BEST OF WHAT IS
- MEMBERS EXAMINE THE DATA TO FIND STORIES
(THEMES)
THAT REPRESENT A PICTURE OF THE FUTURE
- DEVELOP A VISION WITH BROAD PARTICIPANT
- DEVELOP ACTION PLAN
- EVALUATION
The OD model for change
PRESENT STATE
(1a)
Diagnose current
situation
FUTURE STATE
(1b)
Develop a
vision
for change
(5)
Assess and
reinforce
change
(2)
(4)
Implement
change
(3)
Develop an
action plan
JOURNEY TO THE FUTURE
Gain
commitment
to the vision
CHANGE AGENTS
change agents are people with the responsibility for
implementing change in an organization
two types of change agents:
- internal (i.e. internal top
performer who will transfer their own
credibility to the change effort) and
- external (i.e. external consultant
who has proven credentials to
assist the change effort)
EXTERNAL VS. INTERNAL CHANGE AGENT
ADVANTAGES
DISADVANTAGES
EXTERNAL
CREDIBILITY AS AN EXPERT
NO NEGATIVE HISTORY WITH
ORGANIZATIONAL MEMBERS
OBJECTIVE OUTSIDER
WIDE EXPERIENCE OF
ORGANIZATIONS AND OD
PERCEIVED AS AN
OUTSIDER
LACK KNOWLEDGE OF
ORGANIZATION AND ITS
CULTURE
LIMITED AVAILABILITY
AND TIME CONSTRAINTS
INTERNAL
CREDIBILITY AS AN INSIDER
KNOWS THE CULTURE, NORMS,
AND PEOPLE IN THE
ORGANIZATION
HAS PERSONAL RELATIONSHIPS
WITH ORGANIZATIONAL
MEMBERS
ALWAYS AVAILABLE
IS DOUBTED AS AN EXPERT
ON OD
MAY HAVE NEGATIVE
ORGANIZATIONAL HISTORY
HAS LIMITED OD
EXPERIENCE
HAS LIMITED EXPERIENCE
WITH OTHER ORGANIZATION
MAY LACK OBJECTIVITY
THE SCOPE OF CONSULTING PROJECTS
HIGHLY POLITICAL
D
PERFORMANCE SYSTEMS
INCENTIVE SYSTEMS
INFORMATION SYSTEMS
A
CULTURE CHANGE
DIVERSITY
EXECUTIVE COACHING
PRODUCT
PROCESS
B
SPEAKERS
FACILLITATION FOR TEAMS
EXPERT ADVICE
C
TRAINING PROGRAMS
INSTRUCTIONAL DESIGN
PRODUCT AND MATERIALS
COMPUTER-BASED TRAINING
LESS POLITICAL
SKILLS FOR EFFECTIVE OD
PRACTITIONERS
1. INTRAPERSONAL SKILLS:
INTEGRITY
MATURITY
LEARNING SKILLS
2. INTERPERSONAL SKILLS:
LISTENING
EMPHATY
PERSUASION
3. GENERAL CONSULTATION SKILLS:
DIAGNOSTIC KNOWLEDGE AND SKILLS
4. OD THEORY
ETHICS:
INCREASING DESIRE TO OPTIMIZE
HUMAN BENEFITS AND PRODUCTION
OBJECTIVES
ETHICAL DILEMMAS:
1. MISREPRESENTATION:
A FALSE CLAIM THAT AN INTERVENTION WILL PRODUCE
POSITIVE RESULTS
2. MISUSE OF DATA:
INFORMATION IS USED PUNITIVELY
3. COERCION:
MEMBERS ARE FORCED TO PARTICIPATE
4. VALUE AND GOAL CONFLICTS:
- THE PURPOSE OF CHANGE EFFORT IS NOT CLEAR
- CLIENT AND PRACTITIONER DISAGREE OVER HOW TO
ACHIEVE THE GOAL
5. TECHNICAL INEPTNESS:
- OD PRACTITIONERS ATTEMPT TO IMPLEMENT
INTERVENTIONS FOR WHICH THEY ARE NOT SKILLED
- THE CLIENTS ATTEMPT A CHANGE FOR WHICH THEY ARE NOT
READY YET
THE CHANGE ACTION SEQUENCE
DIAGNOSIS
DESIGN AND
IMPLEMENTATION
OF INTERVENTION
ALTERNATIVE
INTERVENTION
IMPLEMENTATION
EVALUATION
INSTITUTIONALIZATION
