Transcript MBA 545 OD - Moodle USP do Stoa

Organization Development
Professor Alexandre Ardichvili
Module 3
Topics and Activities for Session 3
• Definition of Organization Development (OD)
• OD and planned change models vs. other forms of
organization change
• Roots of OD
• Introduction to the planned change model (action research
model)
• Types of OD interventions
• Case study
• Video cases
1-2
Burke’s Definition of OD
OD is a planned process of change in
an organization’s culture through the
utilization of behavioral science
technology, research, and theory.
Cummings & Worley 9e, (c)
2008 SouthWestern/Cengage Learning
1-3
Beckhard’s Definition of OD
OD is an effort (1) planned, (2)
organization-wide, and (3) managed from
the top, to (4) increase organization
effectiveness and health through (5)
planned interventions in the organization’s
“processes,” using behavioral science
knowledge.
Cummings & Worley 9e, (c)
2008 SouthWestern/Cengage Learning
1-4
Discuss:
• What is OD? Provide your definition
• Is OD practiced in Brazilian organizations? Can
you share any examples?
Organization Development is defined as
•
•
•
•
the system-wide application and transfer of
behavioral science knowledge
to the planned development, improvement, and change
of strategies, structures, and processes
• that lead to organizational effectiveness
(Cummings & Worley, 2009)
Human
Process
Interventions
Technostructural
Interventions
Human
Resources
Management
Interventions
Interpersonal
& Group
Process
Approaches
Restructuring
Organizations
Performance
Management
Organization
Process
Approaches
Employee
Involvement
Work Design
Strategic
Interventions
Transformational
Change
Continuous
Change
Developing
Talent
Managing Workforce Diversity &
Wellness
Transorganizational Change
Special Topics in Organization Development
Organization Development
in Global Settings
Cummings & Worley 9e, (c)
2008 SouthWestern/Cengage Learning
OD in Nonindustrial
Settings
Future Directions
in OD
1-7
Models of Planned Change
• Lewin’s Model (Unfreeze, Move,
Refreeze)
• Positive Model
• Action Research Model
Lewin’s Change Model
Unfreezing
Movement
Refreezing
Cummings & Worley,9e (c)
2008 SouthWestern/Cengage Learning
2-9
Action Research Model
Problem Identification
Consultation with a
behavioral scientist
Joint diagnosis
Joint action planning
Data gathering &
preliminary diagnosis
Feedback to Client
Cummings & Worley,9e (c)
2008 SouthWestern/Cengage Learning
Action
Data gathering after
action
2-10
Positive Model
Initiate the Inquiry
Inquire into Best Practices
Discover Themes
Envision a Preferred Future
Design and Deliver Ways to
Create the Future
Cummings & Worley,9e (c)
2008 SouthWestern/Cengage Learning
2-11
General Model of Planned Change
Entering
and
Contracting
Cummings & Worley,9e (c)
2008 SouthWestern/Cengage Learning
Diagnosing
Planning
and
Implementing
Change
2-12
Evaluating
and
Institutionalizing
Change
McGregor’s Theory X & Theory Y
Theory X:
Managers assume that people:
• Have a genuine distaste for work; Therefore: Must be prodded,
coerced or threatened into work
• Prefer to be closely supervised; Avoid as much responsibility as
they can
• Have little ambition; Value security above all else
Theory Y:
Leaders assume that people:
• Want to work
• Will exercise self-control if they are committed to the results
• Will be motivated to achieve goals if they value the outcomes to be
achieved
• Have imagination & creativity (these are not traits reserved for
those in leadership positions)
• Are capable of realizing more potential than are typically given
The Organization Development
Practitioner
• Internal and External Consultants
• Professionals from other disciplines who apply OD
practices (e.g., TQM managers, IT/IS managers,
compensation and benefits managers)
• Managers and Administrators who apply OD from
their line or staff positions
Cummings & Worley, 9e (c)
2008 South-Western
Cengage Learning
3-14
Competencies of an
OD Practitioner
• Intrapersonal skills
– Self-awareness
• Interpersonal skills
– Ability to work with others and groups
• General consultation skills
– Ability to manage consulting process
• Organization development theory
– Knowledge of change processes
• Business knowledge
• Research methods
Cummings & Worley, 9e (c)
2008 South-Western
Cengage Learning
3-15
Flawless Consulting (Peter Block)
•
•
•
•
Partnering with clients
Developing commitment for change
Acting authentically
Trusting yourself and your experience
Action Research Model
Entry
Start-up
Adoption
Assessment and Feedback
Separation
Action Planning
and Change Management
Evaluation
Intervention
Entry
• Take 3 minutes to write down answers to
these questions:
• What are the important activities on the entry stage?
• What are some important issues to be mindful of at
this stage?
•Share your thoughts with the large group.
The Entry Process
• Clarifying the Organizational Issue
– Presenting Problem
– Symptoms
• Determining the Relevant Client
– Working power and authority
– Multiple clients
– Specify the mission for the project
Cummings & Worley, 9e (c)
2008 SouthWestern/Cengage Learning
4-19
Interpersonal Issues of Entry
• Client Issues
– Exposed and Vulnerable
– Inadequate
– Fear of losing control
• OD Practitioner Issues
– Empathy
– Worthiness and Competency
– Dependency
– Over identification
Cummings & Worley, 9e (c)
2008 SouthWestern/Cengage Learning
4-20
Types of Clients
• Contact clients: approach the consultant initially
• Intermediate clients: get involved in early
meetings, provide some information
• Primary clients: own a problem for which they
need help
• Ultimate clients: may or may not be directly
involved with the consultant, but their welfare
and interests must be considered in planning the
interventions Shein (1988)
Proposal: Questions to Consider
•
•
•
•
•
•
•
What is the organization after?
How deep does the problem go?
How many people & levels will be touched?
What kind of organizational culture exists?
Who are the decision makers?
Are there differences of opinion in the firm?
Has the firm used consultants in the past?
Starting an Action Research Project
•
•
•
•
•
Begins when contract is signed
Building working relationships
Becoming oriented to client’s world
Complete preliminary diagnostic scan
Develop project plan
Information Gathering and Analysis
• Brainstorm a list of all things you need to
know about the problem (Q: What
information would you need to collect in
the Falcon case?)
• Prioritize the list (Use the Pareto rule:
80/20)
• Think how you can collect data about the
things you need to know (Falcon Case)
Information gathering: find the real problem and
facts
• Literature search: published company and industry
information; government sources
• Document review:
– Internally generated: mission statements and related
materials, financial statements, org. charts, operating
plans, operating manuals and procedures books, job
task analysis reports, safety procedures handbooks
– Externally generated: banks, auditors, government
offices (OSHA, EPA, etc.), but circulated within the
company
Information gathering (cont.)
• Interviews:
– internal personnel directly and indirectly related to
project,
– internal personnel unrelated to project, but who may
have insights into it,
– external stakeholders: customers, suppliers, investors
• Surveys: internal and/or external stakeholders;
standardized or created by you
• Direct observation
• Other, non-related information
Analysis
Qualitative and quantitative
Qualitative--content analysis :
- comparing individual answers to the same question
- thematic analysis: identify common themes
Quantitative: statistical analysis of survey results.
Caution: are the “significant” topics really significant?
Use the Pareto principle in your analysis
Develop sketches, cause-effect diagrams, and flow
charts to analyze the situation
Ask: why? why? why? why? why?
Techniques for Analyzing Data
• Qualitative
–Content Analysis
–Force-Field Analysis
• Quantitative
–Descriptive statistics
–Correlations
–Differences between groups
Force-Field Analysis of Work Group Performance
Forces for Change
Better raw materials
Competition from other groups
Supervisor pressures
Cummings & Worley, 9e (c)
2008 SouthWestern/Cengage Learning
Group performance norms
Fear of change
Member complacency
Well-learned skills
7-29
Desired Performance
New technology
Forces for Status Quo
Organizational Diagnosis
• Three levels:
–organization-wide
–group
–individual job
• Using systems thinking
–Inputs
–Design Components (Process/Transformation)
–Outputs
Organization Level Diagnosis
• Inputs
– External environment
– Industry Structure
• Design Component: Strategic Orientation
– Strategy (Mission, Goals/Objectives, Intent/Policies)
– Organization Design (Core Activities, Structure, Measurement, HR,
Culture)
• Outputs
– Org. Performance
– Productivity
– Stakeholder Satisfaction
Organization-Level
Diagnostic Model
Inputs
Design Components
Outputs
Technology
Strategy
Structure
Industry
Structure
HR
Systems
Cummings & Worley, 9e (c)
2008 SouthWestern/Cengage Learning
Measurement
Systems
5-32
Organization
Effectiveness
General
Environment
Key Alignment Questions
• Do the Design Components fit with the
Inputs?
• Are the Design Components internally
consistent? Do they fit and mutually support
each other?
Cummings & Worley, 9e (c)
2008 SouthWestern/Cengage Learning
5-33
Organization Design Components
• Strategy
– the way an organization uses its resources (human, economic, or
technical) to gain and sustain a competitive advantage
• Technology
– the way an organization converts inputs into products
and services
• Structure
– how attention and resources are focused on task
accomplishment
Cummings & Worley, 9e (c)
2008 SouthWestern/Cengage Learning
5-34
Organization Design Components
• Human Resource Systems
– the mechanisms for selecting, developing,
appraising, and rewarding organization
members
• Measurement Systems
– methods of gathering, assessing, and
disseminating information on the activities of
groups and individuals in organizations
Cummings & Worley, 9e (c)
2008 SouthWestern/Cengage Learning
5-35
Outputs
• Organization Performance
– e.g., profits, profitability, stock price
• Productivity
– e.g., cost/employee, cost/unit, error rates,
quality
• Stakeholder Satisfaction
– market share, employee satisfaction, regulation
compliance
Cummings & Worley, 9e (c)
2008 SouthWestern/Cengage Learning
5-36
Alignment
• Diagnosis involves understanding each of the parts in the
model and then assessing how the elements of the
strategic orientation align with each other and with the
inputs.
• Organization effectiveness is likely to be high when there
is good alignment.
Cummings & Worley, 9e (c)
2008 SouthWestern/Cengage Learning
5-37
Group-Level Diagnostic Model
Inputs
Design Components
Outputs
Goal Clarity
Organization
Design
Task
Structure
Group
Composition
Cummings & Worley, 9e (c)
2008 SouthWestern/Cengage Learning
Group
Functioning
Performance
Norms
6-38
Group
Effectiveness
Group-level Diagnosis
• Inputs
– Organization Design
• Design Components
– Goal Clarity, Task Structure, Group Composition, Group Norms, Team
Functioning
• Outputs
– Team Effectiveness, as measured by: Quality decisions,
productivity, team cohesiveness, etc.
Group-Level Design Components
• Goal Clarity
– extent to which group understands its objectives
• Task Structure
– the way the group’s work is designed
• Team Functioning
– the quality of group dynamics among members
• Group Composition
– the characteristics of group members
• Performance Norms
– the unwritten rules that govern behavior
Cummings & Worley, 9e (c)
2008 SouthWestern/Cengage Learning
6-40
Group-Level Outputs
• Product or Service Quality
• Productivity
– e.g., cost/member, number of decisions
• Team Cohesiveness
– e.g., commitment to group and
organization
• Work Satisfaction
Cummings & Worley, 9e (c)
2008 SouthWestern/Cengage Learning
6-41
Job-level Diagnosis
• Inputs
–Org. Design, Group Design, Personal Characteristics
• Design Components
–Skill variety, task identity, task significance, autonomy,
feedback about results
• Outputs
–Individual effectiveness, as measured by: performance,
absenteeism, job satisfaction, personal development, etc.
Individual-Level Diagnostic Model
Inputs
Design Components
Skill Variety
Organization
Design
Group
Design
Personal
Traits
Cummings & Worley, 9e (c)
2008 SouthWestern/Cengage Learning
Outputs
Task
Identity
Task
Significance
Autonomy
Feedback
about Results
6-43
Individual
Effectiveness
Individual-Level Design Components
• Skill Variety
– The range of activities and abilities required for
task completion
• Task Identity
– The ability to see a “whole” piece of work
• Task Significance
– The impact of work on others
• Autonomy
– The amount of freedom and discretion
• Feedback about Results
– Knowledge of task performance outcomes
Cummings & Worley, 9e (c)
2008 SouthWestern/Cengage Learning
6-44
Individual-Level Outputs
• Performance
– e.g., cost/unit, service/product quality
• Absenteeism
• Job Satisfaction
– e.g., internal motivation
• Personal Development
– e.g., growth in skills, knowledge, and self
Cummings & Worley, 9e (c)
2008 SouthWestern/Cengage Learning
6-45
Data Feedback
• Purpose of Feedback
–create energy
–direct energy
–turn energy into action
Possible Effects of Feedback
Feedback occurs
No
Change
NO
Energy
to deny or
fight data
Anxiety,
resistance,
no change
Is the energy created
by the feedback?
Energy to use
data to identify and
solve problems
YES
What is the direction
of the feedback?
Failure,
frustration,
no change
NO
Do structures and
processes turn energy
into action?
YES
Change
Cummings & Worley, 9e (c)
2008 SouthWestern/Cengage Learning
8-47
Determining the
Content of Feedback
•Relevant
•Understandable
•Descriptive
•Verifiable
•Timely
Cummings & Worley, 9e (c)
2008 SouthWestern/Cengage Learning
•Limited
•Significant
•Comparative
•Unfinalized
8-48
Kirkpatrick’s Levels of Evaluation
1. Reactions. (At point 3 mostly). "Reaction may best
be defined as how well the trainees liked a
particular training program." (Kirkpatrick, 1959)
2. Learning. (At points 1,2,3) "What principles, facts,
and techniques were understood and absorbed by
the conferees?“ (Kirkpatrick,1960)
Kirkpatrick’s Levels of Evaluation
3. Behavior. Changes in on-the-job behavior. (No formal
definition). (At point 4).
4. Results. "Reduction of costs; reduction of turnover and
absenteeism; reduction of grievances; increase in quality
and quantity or production; or improved morale which, it is
hoped, will lead to some of the previously stated results."
(Kirkpatrick, 1959). (At point 4).
Questions to Ask at Each of the Levels
Level 1 (Reaction): Were the participants pleased? What do
they plan to do with what they learned?
Level 2 (Learning): What skills, knowledge, or attitudes have
changed? By how much?
Level 3 (Behavior): Did the participants change their behavior
based on what was learned in the program?
Level 4 (Results): Did the change in behavior positively affect
the organization?
Organization Change
Learning Objectives
• To understand the elements of a
successful change program
• To understand the role of an OD
practitioner in a change program
• To understand the process of
institutionalizing OD interventions and
the factors that contribute to it
OD Practitioner’s Role
Three minute paper
Write down:
• What are some major change management
activities?
• What can an OD practitioner do to help an
organization implement a change initiative?
Change Management Activities
Motivating Change
Creating Vision
Developing
Political Support
Managing the Transition
Sustaining Momentum
Effective
Change
Management
John Kotter, Harvard
Motivating Change
• Creating Readiness for Change
– Sensitize the organization to pressures for change
– Identify gaps between actual and desired states
– Convey credible positive expectations for change
• Overcoming Resistance to Change
– Provide empathy and support
– Communicate
– Involve members in planning and decision making
Creating a Vision
• Discover and Describe the Organization’s Core
Ideology
– What are the core values that inform
members?
– What is the organization’s core purpose or
reason for being?
• Construct the Envisioned Future
– What are the bold and valued outcomes?
– What is the desired future state?
Developing Political Support
• Assess Change Agent Power
• Identify Key Stakeholders
• Influence Stakeholders
Managing the Transition
• Activity Planning
– What’s the “roadmap” for change?
• Commitment Planning
– Who’s support is needed, where do they stand, and
how to influence their behavior?
• Change-Management Structures
– What’s the appropriate arrangement of people and
power to drive the change?
Change as a Transition State
Current
State
Transition
State
Desired
Future
State
William Bridges: “Managing
Transitions”
Sustaining Momentum
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Provide Resources for Change
Build a Support System for Change Agents
Develop New Competencies and Skills
Reinforce New Behaviors
Stay the Course
Institutionalization Processes
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Socialization
Commitment
Reward Allocation
Diffusion
Sensing and Calibration
Indicators of Institutionalization
• Knowledge
• Performance
• Preferences
• Normative Consensus
• Value Consensus
OD Practitioner’s Role in Change
Process
What roles can OD practitioners play in change
management?
OD Practitioner’s Roles
• Strategy and implementation: Help the
organization to manage the change process
(using Kotter’s steps or other models)
• Human systems: Work with employees to
change their attitude towards change, provide
empathy, support
OD Practitioner’s role
“What do I do? I turn people’s anxiety into fear”
Harry Woodward, Woodward Learning
International
Definition of Anxiety (Wikipedia)
“Anxiety is a generalized mood condition that
can often occur without an identifiable
triggering stimulus.
As such, it is distinguished from fear, which is an
emotional response to a perceived threat.”
Perceptions of Change (H. Woodward)
Common view:
OLD
More realistic View of Change:
NEW
Same
Loss
Gain
LOSS – Something we used to do that we don’t do anymore.
GAIN – Something we’re doing that we haven’t done before.
Context Meeting
•
Present the Model
•
List and Answer
– What things are staying the same?
– What things will we lose?
– What things will we gain?
Additional Questions:
• What do we need to invent?
• What are the “new rules?”
From now on we need to …
• Given the change, we should consider …
• We can no longer assume …