MGT8033: LEADING ORGANISATIONAL CHANGE - … · 22/7/2009 · MGT8033: LEADING ORGANISATIONAL CHANGE ... On successful completion of this module, ... Alignment • Does the organisation’s

MGT8033: LEADING ORGANISATIONAL CHANGE

Diagnosis and interventions

DR AHMAD FAISAL

Doc: MGT8033 – M2 July 2009 Dr Ahmad FaisalNon-Commercial Use Only

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Module Objective

On successful completion of this module, you should be able to:

• explain the importance of diagnosis in the overall organisational change process

• understand principles that facilitate effective diagnosis

• understand the three levels of diagnostic analysis that can be performed

• understand the basic principles of data collection and analysis

• explain why change agents feed back diagnostic information

• understand how diagnostic information is best fed back to the organisation members

• discuss criteria for effective interventions

• discuss issues, considerations, constraints, ingredients, and processes associated with intervention design

• define what an intervention is

• detail the four types of targets of change

• give an overview of the various interventions

• identify which interventions should be used with which targets of change and at what level or levels of analysis the interventions apply.


• diagnosis is a broad concept that is collaborative in its application and can be used in assessing overall performance for future development in addition to identifying problems

• Effective diagnosis enables change agents to determine an appropriate organisational change path to follow

• Diagnosis is a process involves data collection and problem analysis using diagnostic models to better understand the variables or components of organisations are and understand their relationships.

• Look into the feedback and feed-in leading to intervention design and implementation.

Overview


Tip of the iceberg - It is important to note that visible signs of a problem are usually just symptoms of a hidden problem.

Diagnosis is a process of data collection and analysis. In undertaking the steps of problem-solving,

• develops hypotheses

• testing the hypotheses to establish what the problems and issues are and to better understand the operation of the organisation.

• problem identification then provides a more objective basis for developing strategies for change.

Given the considerable stakes, and the resources used in any organised change activity, the rationale and justifications for change really must be robust, if the energies, time, budgetary allocation and other resources have to be redirected. Diagnosis provides this necessary rigour.

Diagnosis


Diagnosis takes various forms. However, there are a number of key characteristics which, in combination, maximise the chances of an effective, accurate and relevant diagnosis. These characteristics are:

• Simplicity: Keep data as simple as possible and use simplicity in presentations

• Visibility: Use visible measures of what is happening

• Involvement: Emphasise the participation and involvement of organisation members in the diagnosis phase

• Primary factors: Use undistorted collection of primary operating variables in diagnosis

• Measure what is important: Pursue the straightforward assessment of variables that are critical to success

• A sense of urgency: During diagnosis, engender an overall sense of urgency for change.

Diagnosis


diagnosis occurs at more than one level within an organisation, and what constitutes proper diagnosis at the organisation-wide or strategic level doesn't transfer readily to other levels

Waddell et al. (2007) use an open systems approach to view organisations and propose that diagnosis may be done at three levels:

• organisation, which includes strategy, structure and processes

• group, which includes the design and devices for structuring interaction among members such as norms and work schedules

• the individual level or job level, which includes how jobs are designed to evoke desired behaviours.

The key to effective diagnosis then is to know what to look for at each level, and the interrelationships among levels.

Diagnosis


Open System ApproachWaddell et al. (2007)

Properties of open systems:Inputs, transformations and outputs Boundaries Feedback Alignment

InputResources acquired from external sources

BoundariesHelp to distinguish between systems and environments. Closed systems: rigid boundaries. Open systems: permeable boundaries

FeedbackCan be used to maintain the system in a steady state Helps the organisation adapt to changing circumstances

Alignment• Does the organisation’s strategic

orientation fit with the inputs?• Do the elements of the strategy fit with

each other?• Do the elements of the organisation

design fit with each other?• Do the elements of the organisation

design support the strategy?Doc: MGT8033 – M2 July 2009 Dr Ahmad FaisalNon-Commercial Use Only

Harvey and Brown (2005) define diagnosis as a way of determining the performance gap difference between what it does and what it could or should do by virtue of the opportunities that arise from the environment

examination of organisational structure, culture, strategies, goals and objectives, work design, policiesand systems. must consider the organisational politics.

Debate: Fundamental flaw – process of diagnosis presumes that those people managing the process, that is the change agents, have a sound understanding of how organisations function and what’s involved in organisations.

Diagnosing organisations



InputGeneral Environment PEST

InputIndustry Forces: Customers, suppliers, buyers, new entrants, new products/services, and rivalry among competitors

Strategy: How an organisation uses resources to gain and sustain competitive advantageOrganisation Design: Design factors are organisation subsystems or change leversOrganisation Culture

Design Factors:Core activity system: Inputs into products and servicesStructural system: Dividing work into sub-units Measurement System: Data gathering and assessingHuman resources system: Methods for appraising and rewarding members

Waddell et al. (2007)


A key problem with much of the study of change management in organisations is that the authors active in the field tend not to discuss, explicitly, the theoretical models and frameworks which guide their analysis. This is a crucial oversight. Theoretical models are essential to our thinking. Any type of thinking about our world requires some kind of theoretical model, implicit or otherwise, which structures and guides our thinking and renders it meaningful.

(Source: Collins 1998, p. 1)



groups can include large groups such as departments, divisions or regions, or small work groups or teams (Smither, Houston & McIntire 1996).

Just as organisations consist of groups, groups consist of individuals. Collecting information about individuals and individual jobs within an organisation allows us to gain an understanding of personal characteristics such as job satisfaction, skill levels, attitudes and perceptions.

Individual analysis may also allow us to collect information about jobs. In particular, we may be interested in the individuals’ perceptions of their skill variety, task identity, autonomy, task significance and job feedback.

Diagnosing groups and jobs

Groups have five major componentsthat impact their effectiveness:

• goal clarity, • task structure, • group composition,• group norms and • interpersonal relationships

between members.

Considerations that affect effectiveness:

• organisational design

• organisational policies or practices

• individual aspects such as personalities, values and attitudes.

In this regard it is not always possible to make distinct separations between the various levels of analysis.Doc: MGT8033 – M2 July 2009 Dr Ahmad Faisal

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Diagnosing groups and individualsWaddell et al. (2007)


Collecting and analysing diagnostic informationGeneral Process



• Data collection is crucial to the success of any change intervention. Data can be in primary or secondary – in most cases primary data will be utilised.

• Qualitative or Quantitative data depend on the change agent’s preference. quantitative data are easy to collect and analysestatistically, but do not provide the same depth as qualitative data. However, the analysis of qualitative data is generally more time consuming and subjective.

• Some common methods of data collection include questionnaires, focus groups, interviews, observations and unobtrusive methods; which ever the method, effort must be made to collect accurate data.

• Managers make decisions based on the data they can collect. It follows then that inaccurate data can easily lead to poor problem resolution.

Collecting and analysing diagnostic information


The diagnostic relationship

• Who is the OD practitioner and why are they here?

• Who does the practitioner work for?

• What does the practitioner want and why?

• How will my confidentiality be protected?

• Who will have access to the data?

• What’s in it for me and can the practitioner be trusted?

Major methods for collecting data

• Questionnaires

• Interviews

• Observations

• Unobtrusive methods

Collecting and analysing diagnostic information Waddell et al. (2007)

© acclaim imagesDoc: MGT8033 – M2 July 2009 Dr Ahmad FaisalNon-Commercial Use Only

Questionnaires

• One of the most efficient ways to collect data

• Contain fixed-response questions

• Administered to large numbers of people simultaneously

• Can be analysed quickly

• Permit quantitative analysis

• Data can easily be fed back to employees


Advantages

• Large quantities of data

• Relatively inexpensive

Drawbacks

• Little opportunity for empathy with subjects

• Rigid structure


Interviews

• Interviews may be highly structured – resembling questionnaires

• Interviews may be highly unstructured – starting with general questions that allow the respondent to lead the way


Advantages

• Adaptive

• Empathic

• Builds rapport with subjects

Drawbacks

• Relatively expensive

• Coding and interpretation can be difficult


Observations

• A more direct way of collecting data

• Observe organisational behaviours in their functional settings


Advantages

• Yields data on actual behaviour

• Real time, not retrospective

Drawbacks

• Difficulties in interpretation

• Sampling inconsistencies and observer bias

• Expensive


Unobtrusive measures

• Data is collected from secondary sources

• Records of absenteeism, tardiness, grievances, quantity and quality of production or service, financial performance, correspondence with key stakeholders

• Helpful in diagnosing group and individual outputs


Advantages

• Non-reactive, no response bias

• High face validity

• Easily quantified

Drawbacks

• Access and retrieval difficulties

• Validity concerns

• Coding and interpretation difficulties


Sampling

• Population vs. sample

• Importance of sample size

• Process of sampling

• Types of samples

•Random

•Convenience



Qualitative tools

• Content analysis

• Force-field analysis

Quantitative tools

• Means, standard deviations and frequency distributions

• Scatter diagrams and correlation coefficients

• Difference tests



Offering to feed back information is also a useful tool to encourage organisational members to provide data in the first instance.

The feedback of data and information must be understood by all members of the organisation – even those with little or no knowledge of organisational change.

helps the employees to feel – being kept informed, they have ownership of the changes that are occurring, hence, resistance to change is less likely to be a problem.

is also a useful way of clarifying that the data have been correctly interpreted by the change agent.

Feeding back diagnostic informationUSQ (2009), Waddell et al. (2007)


Characteristics of effective feedback

• Relevant and specific

• Understandable

• Descriptive

• Verifiable

• Timely

• Comparative

• Un-finalised

Feeding back diagnostic informationWaddell et al. (2007)

Characteristics of the feedback process

• Motivation to work with the data

• Structure for the meeting

• Appropriate membership

• Appropriate power

• Process help


Limitations of survey feedback

• Ambiguity of purpose – difficulty reaching consensus

• Distrust – high levels of distrust in the organisation can render the survey feedback ineffective

• Unacceptable topics

• Organisational disturbance

Feeding back diagnostic informationWaddell et al. (2007)

Survey feedback steps

• Involve organisation in preliminary planning

• Administer survey instrument

• Analyse the survey data, tabulate results and give suggestions for diagnosis

• Feedback usually begins at the top of the organisation and trickles down.


Summary

We have discussed

• diagnosis and data collection to be difficult and time consuming and their accuracy is also of paramount importance to the change programme. A number of important considerations have been highlighted.

• organisational diagnosis can be conducted at varying levels, namely individual, group, and organisation wide.

• change agents must recognise the difference between these and ensure that the data collection techniques used are appropriate.

• feeding back of diagnostic information to the organisation. One important suggestion which can be added to our earlier discussion is that information regarding the process can also be diffused throughout the organisation.

This is particularly relevant in the context of organisational learning, and can assist organisational members in becoming less dependent upon the ‘change agent’.


MGT8033: LEADING ORGANISATIONAL CHANGE

Designing and implementing interventions

DR AHMAD FAISAL


Overview

Waddell et al. (2007, p. 133), define intervention as ‘a set of sequenced planned actions or events intended to help an organisation increase its effectiveness. Interventions purposelydisrupt the status quo; they are deliberate attempt to move an organisation or sub-unit towards a different or more effective state.’

© pmpedia.comDoc: MGT8033 – M2 July 2009 Dr Ahmad FaisalNon-Commercial Use Only

Characteristics of an effective intervention Waddell et al. (2007)

There are a number of criteria for effective interventions. These criteria are largely based on information gathered during the diagnosis stage. Therefore a change agent cannot expect to design a successful intervention without diagnosing the organisation in the first instance.

Characteristics:

• Relevant

• Free and informed choice

• Internal commitment

• Valid data rather than intended outcomes

• Transference of competence to organisation members


Designing effective intervention

Contingencies related to the change situation

• Readiness for change

• Capability to change

• Cultural context

• Capabilities of the change agent


Contingencies related to the target of change

• Organisational issues

• Strategy

• Technology and structure

• HR

• Interpersonal

• Organisation levels

• Individual

• Group

• Organisation wide


Intervention CategoryBased on the diagnosis, the change manager must develop interventions that address the issues identified. Since there are range of interventions, this can mean that a number of interventions are implemented across different time periods to address the different issues.

Technostructural InterventionChapter 8

•How to divide labour•How to coordinate departments•How to produce products or services

•How to design work

HRM InterventionChapter 9

•How to attract competent people

•How to set goals and reward people

•How to plan and develop people’s careers

Interpersonal InterventionChapter 7

•How to communicate•How to solve issues•How to make decisions•How to interact•How to lead

Strategic InterventionChapter 10

•What functions, product, services, market

•How to gain competitive advantage

•How to relate to the environment•What Values will guide organisational functioning

Waddell et al. (2007: 138)

focuses on people within organisations and the processes through which they accomplish goals e.g. T-Group, Grid organisation development …

focuses on personnel practices used to integrate people into the organisation e.g. career planning…

focuses on technology and structure of the organisation e.g. downsizing …

focuses on linking the internal functioning of the organisation to the external environment e.g. open systems planning …


Intervention TypeWaddell et al. (2007:140)

Interpersonal interventions (chapter 7) Individual Group Organisation

T-Group x xProcess Consultation xThird-party intervention x xTeambuilding xOrganisation Confrontation Meeting x xIntergroup relations x xLarge-group interventions xGrid Organisation Development x x

Technostructural Interventions (chapter 8) Individual Group Organisation

Structural design xDownsizing xRe-engineering x xParallel structures x xHigh-involvement organisations x x xTQM x xWork design x

Primary Organisational Level affected


Intervention TypeWaddell et al. (2007:140)

HRM interventions (chapter 9) Individual Group Organisation

Goal setting x xPerformance appraisals x xReward systems x x xCareer planning & development xManaging workforce diversity x xEmployee wellness x

Strategic interventions (chapter 10) Individual Group Organisation

Open system planning x xIntegrated strategic change xTransorganisation development xCulture changeSelf-designing organisation x xOrganisation learning x x

Primary Organisational Level affected


Summary

We have discussed:

• the importance of diagnosis as well as outlining some of the basic principles involved in diagnosis

• three levels of analysis that we use when diagnosing: organisation-wide, group and individual

•collection and data analysis is fundamental and cannot be played down.

•discussion on feeding back diagnostic information is imperative.

•effective intervention should be tailor-made, it should be based on valid information and should assist members in developing skills related to change.


Documents

MGT8033: LEADING ORGANISATIONAL CHANGE - … · 22/7/2009 · MGT8033: LEADING ORGANISATIONAL CHANGE ... On successful completion of this module, ... Alignment • Does the organisation’s