Organisational Change
Organisational Change
Organisational Change
AND DEVELOPMENT
- Semester 3
• This can provide them with the motivation to perform well and
develop professionally.
d. Dynamic processes
• Organisations comprise people and expand their
knowledge and experience over time.
• Changes can influence various functions of an
organisation.
• As a result, organisations may not behave or function
the same way for extended periods of time.
• Successful organisations evolve in response to changing
consumer demands and business situations.
• For example, new technology often has the potential to
create or eliminate job roles in an organisation.
e. Hierarchy
• An organisation comprises several positions in a
hierarchy with well-defined powers and
responsibilities for each.
• A central authority is typically present, from which a
chain of authority extends throughout the
organisation.
• The routes of communication and patterns of
interaction follow the relative hierarchy of
organisational positions or designations.
Different Perspectives
Key Concepts:
• Strategy: This perspective prioritizes strategic planning and the
development of clear goals and objectives. Organizations analyze
their external environment, set strategic directions, and make
decisions accordingly.
• Structure: Organizational structures are designed to align with the
chosen strategy. This includes the allocation of resources, roles and
responsibilities, and reporting relationships.
• Efficiency: A key goal is to maximize efficiency and effectiveness in
pursuing the organization's objectives. This perspective often relies on
data, analysis, and performance metrics.
• Examples: A corporation focusing on market expansion might adopt a
hierarchical structure and invest heavily in research and development.
• Organisations are machines
• An organisation is a mechanical system crafted to
achieve a defined goal
• Parts must fit well together and match the demands of
the environment
• based upon the future Action comes through planning
b. Political perspectives
• Focus: The political perspective views organizations as arenas for
power struggles and conflict. It recognizes that individuals and
groups within an organization have different interests and engage
in political behavior to advance their agendas.
Key Concepts:
• Power: This perspective places a strong emphasis on power
dynamics. Who has power, how it is used, and how it is
distributed within the organization are critical considerations.
• Conflict: Conflicts and disputes are seen as inherent to
organizational life. They can arise from competition for
resources, differences in goals, or clashes of personalities.
• Influence: Political behavior involves tactics such as coalition-
building, manipulation, and negotiation to influence decisions and
outcomes.
• Examples: In a nonprofit organization, different departments may
compete for limited funding, leading to internal power struggles
c. Cultural Perspective:
• Focus: The cultural perspective highlights the role of shared values,
norms, and beliefs in shaping organizational behavior and identity. It
views organizations as social systems driven by culture.
Key Concepts:
• Organizational Culture: The culture of an organization reflects its
shared values, customs, and rituals. It influences how employees
interact, make decisions, and perceive their roles.
• Socialization: New members of an organization are socialized into its
culture. They learn the unwritten rules and norms that guide
behavior.
• Cultural Change: Organizations can actively work to shape and
change their culture, which can impact employee engagement,
innovation, and adaptability.
• Examples: A tech startup might have a culture that values risk-taking,
experimentation, and informality, fostering an environment where
employees feel encouraged to innovate
Organizational development
• Organizational development is a planned,
systematic change in the values or operations of
employees to create overall growth in a company or
organization.
• It differs from everyday operations and workflow
improvements in that it follows a specific protocol that
management communicates clearly to all employees.
• It encompasses a range of planned interventions and
strategies designed to enhance an organization's capacity
to achieve its goals, adapt to change, and thrive in a
dynamic environment.
• OD is closely tied to the concepts of growth, relevance,
and the history and evolution of organizations.
• Critical and science-based process.
• Build capacity to change and achieve greater effectiveness.
• Developing, improving, and reinforcing strategies,
structures, and processes.
• Organizational change and development can be a long,
sometimes overwhelming process, but companies usually
begin with several goals in mind:
a. Ongoing improvement.
• Changing company culture to view new strategies as a
positive growth opportunity allows for ongoing improvement
and encourages employees to become more open to change
and new ideas.
• New strategies are introduced systematically through
planning, implementation, evaluation, improvement, and
monitoring.
b. Better or increased communication.
• Organizational development that leads to increased feedback
and interaction in the organization aligns employees with the
company’s vision.
• Employees feel that they have more ownership in the
company’s mission and may be more motivated as a result.
c. Employee development.
• In today’s business world, employees must constantly adapt to
changing products, platforms, and environments.
• Employee development comprises training and work process
improvements that help everyone keep up with shifting demands.
e. Increased profit.
• Organizational development helps increase profits by optimizing
communication, employee processes, and products or services.
• Each serves to increase a company’s bottom line.
Process of Organizational Development
• During this stage the diagnosed problem is translated into ideas about
change.
• Lippitt et al. (1958) caution that as the change agents begins
formulating actual intentions and specified actions problems related to
motivation may arise in the process.
• These motivation problems occur due to anxiety about the change or
fear of failure.
• Such anxieties can however be overcome to some extent by use of trial
procedure involving the change.
• This may help to alleviate all anxieties and foster the adoption of the
idea.
• Unfortunately, most of the time, many change relationships are broken
off before this phase is reached and client system is left to cope alone
with the diagnosis & recommendations which have to be otherwise
presented by the change agent.
f. The transformation of intentions into actual change efforts
• During this phase, the change agent works to ensure that the
intended goals are transformed into actual change efforts.
• In this stage the change agent also ensures that the dynamic
system should feel fully supported and encouraged.
• Success at this stage means that the plans and intentions are
transformed into actual achievements.
• The problems at this stage may be securing acceptance for
change process by the various subparts of the system.
• Many times the relationship between change agent and client
system may have indeed ended.
• In such a situation either the client system imagines what a
change agent may have done at this juncture or re-elicits
support from the change agent for continued action.
• In cases where relationship continues between the change
agent and the client system they may need to change their
modus operandi, or way of functioning in a manner that there
may be no direct contact of the system with the change agent.
• Another problem may be is obtaining adequate feedback on
the effect, outcome or consequences of change effort.
g. The generalization and stabilization of change and achieving
a terminal relationship
• Problem Identification:
• Data Collection:
• Action Planning
• Action Implementation:
• Data Analysis:
• Reflection and Feedback:
• Evaluation:
• Adoption or Adaptation:
• Documentation and Sharing:
4. Positive Model
• The positive model aids members in understanding their
organization when it is at its best, and then builds up
those capabilities for the achievement of better results
(Cummings and Worley, 1997).
• Through the process of appreciative inquiry, the positive
model has been applied to planned change
• Appreciative enquiry encourages a positive orientation
to the way change is conceived and managed.
• It promotes broad member involvement in creating a
shared vision about the organization’s shared potential.
• The positive model of planned change involves five phases:
initiate the inquiry (determines the subject of change),
inquiry into the best practice,
discover key themes,
envision a preferred future,
design and deliver ways to create the future (describes the
activities and creates the planes necessary to effectuate the
vision)
Phases of a positive model of planned
change
1. Discovery: This phase involves identifying and understanding
an organization's strengths, successes, and positive aspects. It
encourages individuals within the organization to share their
stories of success and explore what is working well. Discovery
typically involves interviews, surveys, and other methods to
gather positive stories and insights.
2. Dream: In this phase, stakeholders are encouraged to envision
an ideal future for the organization based on the strengths and
successes identified in the discovery phase. This process
encourages creativity, innovation, and collective visioning.
Participants are asked to describe the organization they want to
create.
3. Design: With the dream in mind, participants work
together to design concrete strategies and action plans for
achieving the envisioned future. This phase includes
brainstorming, planning, and decision-making to outline the
steps and resources needed for change.
4. Destiny (or Delivery): In this phase, the designed
strategies are put into action. Change initiatives are executed,
and progress is monitored. Leadership plays a key role in
supporting and facilitating the implementation of the change
efforts.
5. Appreciation: Throughout the entire process, it is
important to continuously appreciate and celebrate the
positive aspects and achievements of the organization. This
helps reinforce the positive mindset and creates a culture of
General Model of Planned Change
• The framework describes the four basic activities that
practitioners and organization members jointly carry out
in organization development.
• The arrows connecting the different activities in the
model show the typical sequence of events, from
entering and contracting, to diagnosing, to planning and
implementing change, to evaluating and
institutionalizing change.
• The lines connecting the activities emphasize that
organizational change is not a straightforward, linear
process but involves considerable overlap and feedback
among the activities
General Model of Planned Change
• The framework describes the four basic activities that
practitioners and organization members jointly carry
out in organization development.
a. Entering and Contracting:
• The first set of activities in planned change concerns entering and
contracting.
• Those events help managers decide whether they want to engage
further in a planned change program and to commit resources to
such a process.
• Entering an organization involves gathering initial data to
understand the problems facing the organization or the positive
opportunities for inquiry.
• Once this information is collected, the problems or opportunities
are discussed with managers and other organization members to
develop a contract or agreement to engage in planned change.
• The contract spells out future change activities, the resources that
will be committed to the process, and how OD practitioners and
organization members will be involved.
• In many cases, organizations do not get beyond this early stage
of planned change because disagreements about the need for
change surface, resource constraints are encountered, or other
b. Diagnosing:
• In this stage of planned change, the client system is carefully studied.
Diagnoses can focus on understanding organizational problems,
including their causes and consequences, or on identifying the
organization's positive attributes.
• It includes choosing an appropriate model for understanding the
organization and gathering, analyzing, and feeding back information to
managers and organization members about the problems or
opportunities that exist.
• Analyzing problems explore three levels of activities.
– Organization issues represent the most complex level of analysis
and involve the total system.
– Group-level issues are associated with department and group
effectiveness.
– Individual-level issues involve the way jobs are designed.
• Gathering, analyzing, and feeding back data are the central change
activities in diagnosis.
• Describes how data can be gathered through interviews, observations,
survey instruments, or such archival sources asmeeting minutes and
organization charts.
c. Planning and Implementing Change
a. Magnitude of Change
• Planned change efforts can be characterized as falling along a
continuum ranging from incremental changes that involve fine-
tuning the organization to fundamental changes that entail radically
altering how it operates.
• .
Types of planned change
for
both employees and the overall structure of the organization.
Implications for Managing Change:
1. Resistance to Change:
– Employees often resist change due to fear of the unknown, loss of
familiarity, or concerns about their roles. Effective change
management involves acknowledging and addressing this resistance
through communication, involvement, and support.
2. Communication Strategy:
– Clear and transparent communication is crucial during times of
change. Leaders should communicate the reasons for the change, the
expected benefits, and the impact on individuals and teams.
3. Leadership Involvement:
– Strong leadership is essential for successful change management.
Leaders should actively champion the change, set an example, and
provide support to employees as they navigate through the transition.
4. Employee Involvement:
– Involving employees in the change process fosters a sense of
ownership and can lead to more successful implementation. Seek
input, address concerns, and provide opportunities for collaboration.
Implications for Managing Change:
5. Training and Development:
– Change often requires new skills and competencies.
Providing training and development opportunities ensures
that employees have the tools they need to adapt to new
processes and technologies.
6. Cultural Alignment:
– Ensure that the proposed changes align with the
organization's values and culture. Misalignment can lead to
resistance and hinder the successful integration of new
practices.
7. Flexibility and Adaptability:
– Cultivate a culture of flexibility and adaptability within the
organization. This helps employees embrace change as a
constant, making future transitions more manageable
The human relations, social
A. Human Relations in Organizational Development:
1. Employee Engagement:
Human relations play a vital role in employee engagement, a key aspect of
organizational development. Engaged employees are more likely to
contribute to the success of OD initiatives, as they feel a stronger connection
to the organization.
2. Team Dynamics:
Effective team dynamics, a part of human relations, are crucial for
successful organizational development. Teams that communicate well, trust
each other, and collaborate effectively are better positioned to adapt to
change.
3. Leadership Development:
Human relations principles are often applied in leadership development
programs within OD. Developing leaders who understand and value positive
interpersonal relationships contributes to a healthy organizational culture.
4. Communication Strategies:
Human relations theory emphasizes the importance of clear and open
communication. In OD, effective communication is essential for conveying
the purpose and goals of development initiatives, reducing resistance, and
fostering understanding.
B. Social Aspects in Organizational Development
1. Cultural Transformation:
Social aspects, such as organizational culture, are a focus of many OD efforts. Transforming
or shaping the culture of an organization often involves addressing social norms, values, and
behaviors to align them with strategic goals.
2. Change Management:
Social dynamics come into play during change management processes. Understanding how
people interact, their social networks, and the informal structures within an organization is
crucial for navigating change successfully.
3. Diversity and Inclusion:
Incorporating diversity and inclusion practices is a social aspect that is increasingly
recognized in organizational development. Ensuring that OD initiatives consider diverse
perspectives contributes to innovation and effectiveness.
4. Social Responsibility:
OD can include efforts to enhance an organization's social responsibility. This may involve
aligning development initiatives with ethical practices, sustainability goals, and community
engagement.
5. Stakeholder Relationships:
Social relationships extend beyond the organization's boundaries.
Managing relationships with external stakeholders, such as
customers, suppliers, and the community, is a social aspect that can
impact organizational development.
6. Learning Organizations:
Building a learning culture, a key component of OD, involves social
aspects. Encouraging knowledge sharing, collaboration, and a
willingness to learn from failures contribute to the development of a
learning organization.
7. Social Media and Technology:
The integration of social media and technology in OD can facilitate
communication, collaboration, and knowledge sharing. Leveraging
these tools effectively requires an understanding of social dynamics
in the digital space.
OD and reinventing the organization.
• Organizational Development (OD) and reinventing the organization
are closely connected concepts, both aimed at enhancing an
organization's effectiveness, adaptability, and overall success.
• Organizational Development is a planned, systematic process of
implementing effective organizational change. It involves diagnosing
organizational issues, developing strategies for improvement, and
implementing interventions to enhance organizational effectiveness.
• OD typically addresses areas such as leadership development, team
building, change management, employee engagement, and cultural
transformation. The goal is to create a more agile and resilient
organization capable of responding to internal and external challenges.
• The OD process often follows a structured approach, including
assessment, planning, implementation of interventions, and evaluation.
It is driven by a commitment to continuous improvement and learning
within the organization
• Reinventing the organization involves a fundamental and often radical
transformation of its structure, processes, and culture. It goes beyond
incremental improvements and seeks to create a fundamentally different
and more innovative organization.
• The focus of reinvention is on creating an organization that is agile,
innovative, and responsive to changing market conditions. This may
involve reimagining business models, embracing new technologies, and
fostering a culture of experimentation.
• Reinvention often requires strategic shifts, such as entering new markets,
adopting disruptive technologies, or redefining the organization's core
purpose. It involves challenging existing assumptions and being willing
to depart from traditional ways of doing things.
OD and reinventing the organization.
1. Cultural Transformation:
Both OD and reinvention involve cultural transformation. OD initiatives
may focus on creating a culture of continuous improvement, while
reinvention often demands a cultural shift towards innovation, risk-taking,
and adaptability.
2. Change Management:
Change management principles are integral to both OD and reinvention.
Effectively managing the human aspects of change, including
communication, training, and addressing resistance, is crucial for success.
3. Learning Organizations:
The concept of a learning organization, promoted in OD, aligns with the
need for continuous learning and adaptation in a reinvented organization.
Both emphasize the importance of fostering a culture of learning and
improvement.
4. Leadership Development:
Leadership development is a common element in both OD and reinvention.
Leaders must guide the organization through change, inspire innovation, and
create an environment that supports the reinvention process.
5. Flexibility and Adaptability: