ORGANIZATIONAL CHANGE

ECONOMIC PRESSURES ARE FORCING ORGANIZATIONS TO

CHANGEDRIVING FORCES TOWARDS ACCEPTANCE OF A CHANGE PROGRAMME

a) DISSASTISFACTION WITH THE PRESENT SITUATION

b) EXTERNAL PRESSURES TOWARDS CHANGE LIKE ISO 9000 / OS 9000 ETC.

DRIVING FORCES TOWARDS ACCEPTANCE OF A CHANGE

PROGRAMME Cont’dc) MOMENTUM TOWARDS CHANGE

THE CHANGE PROGRAMME IN ONE PART OF THE ORGANIZATION MAY SET OFF A CHAIN REACTION REQUIRING CHANGES IN OTHER PARTS

d) MOTIVATION BY THE CONSULTANT ASSURANCE AND ENCOURAGEMENT FROM CONSULTANTS CAN HAVE STRONG IMPACT.

RESISTING FORCESa) UNCERTAINTY REGARDING CHANGEb) FEAR OF THE UNKNOWNc) DISRUPTION OF THE ROUTINE

(FAMILIAR IS PREFERRED)d) LOSS OF EXISTING BENEFITS

ORGANIZATIONAL CHANGE FOCUSES ON “WHAT IS IN IT FOR ORGANIZATION”. BUT TO COUNTER RESISTANCE THERE HAS TO BE FOCUS ON “WHAT IS IN IT FOR THE INDIVIDUAL”.

RESISTING FORCES Cont’d

e) THREAT TO POSITION POWERf) THREAT TO SECURITYg) REDISTRIBUTION OF POWERh) DISTURB EXISTING SOCIAL

NETWORKi) CONFORMITY TO NORMS &

CULTURE

Lewin’s Three Step Model

a) Unfreezing means that old ideas and practices need to be cast aside so that new ones can be learned. Rewards for current behavior are eliminated.

b) Changing involves helping an employee think, reason and perform in new ways. Employees should be informed about the vision for change.

c) Refreezing means that what has been learnt is integrated into actual practice. The new ways of operating are reinforced.

Lewin’s Three Step Model (Contd.)

• The driving forces that direct behaviour away from the status quo can be increased. On the other hand, the restraining forces that hinder movement from the existing equilibrium can be decreased. For change effort to be successful the Three - Stage Process must be completed.

WHAT IS OD ?

Organizational Development (OD) is an EFFORT :

1) PLANNED2) ORGANIZATION WIDE3) TO INCREASE ORGANIZATIONAL

EFFECTIVENESS & HEALTH4) THROUGH PLANNED INTERVENTION IN

THE ORGANIZATION’S PROCESSES USING BEHAVIOURAL SCIENCE KNOWLEDGE

WHAT OD IS NOT ?

OD is not a MICRO approach to change. It is organization wide improvement.OD is more than any single technique. The consultant may use job enrichment programme or sensitivity training. No single technique represents OD.OD does not include RANDOM changes. It is based on systematic diagnosis – OD is more than raising moral.

CHARACTERISTICS OF THE FIELD OF OD

1) PLANNED CHANGE: By Managers to achieve goals.

2) COLLABORATIVE APPROACH: Involvement of affected members of the organization.

3) PERFORMANCE ORIENTATION: To enhance performance

4) HUMANISTIC ORIENTATION: Use of Human Capital.

CHARACTERISTICS OF THE FIELD OF OD Cont’d

5) SYSTEMATIC APPROACH: Relationship among Elements & Excellence.

6) SCIENTIFIC METHOD: Use of Scientifically established method.

EVOLUTION OF OD

NTL – LABORATORY – TRAINING METHOD

In the late 1940s and early 1950s lab. Training methods were applied at Bethel by a group of behavioural scientists McGregor & John Paul Jones formed the first integral OD consultant group at Union Carbide.

SURVEY RESEARCH & FEEDBACK

LIKERT of Survey Research Center Michigan used Survey Research Method. He administered an organization wide survey to Detroit Edison Company involving the systematic feedback of data to participating departments.

CONSULTANTS – EXTERNAL or INTERNAL

ACTION RESEARCH

A Change Process based on Systematic Collection of data and then selection of a change action based on what the analyzed data indicate.STEPS:

1. DIAGNOSIS2. ANALYSIS

STEPS Cont’d

3. FEEDBACK: Sharing with employees what has been found from steps 1 & 2.

4. ACTION: Specific Actions are carried out to correct problems.

5. EVALUATION: Compare initial data and effects of subsequent changes.

BENEFITS: a) OBJECTIVE ANALYSISb) NEED BASED CHANGE PROGRAMME

ROLE NEGOTIATIONDuring the Role Negotiation managers frankly discuss what they want from each other and explain why.

1. CONTRACT SETTING: Each member prepares a list for each other member with three headings.

a) THINGS to do MOREb) THINGS to do LESSc) THINGS to do the SAME

ROLE NEGOTIATION Cont’d

2. ISSUE DIAGNOSIS: Each member writes out a Master List related to the issues.

3. ROLE NEGOTIATION: After the clarification, members decide which items they want most and form into pairs to negotiate.

LIKERT’S 4 SYSTEMS1. EXPLOITATIVE AUTOCRATIC:

EXPLOITS SUBORDINATES2. BENEVOLENT AUTOCRATIC:

STRICT CONTROL, NEVER DELEGATES3. PARTICIPATIVE:

CONSULTATIVE BUT TAKES FINAL DECISION

4. DEMOCRATIC: TOTAL PARTICIPATION DECISION BY CONSENSUS