Organitational Development and Change.ppt

7/25/2019 Organitational Development and Change.ppt

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OrganizationDevelopment and

Change

Fathul Himam


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What is an organization?

a consciously coordinated social entity

with a relatively identifiable boundary

functions on a relatively continuousbasis

to achieve a common goal


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The use of anorganizationallows peoplejointly to:

Increase specializationand division of labor

use large scale oftechnology

manage the externalenvironment

economize on transactioncost

exert power and control

Which increasethe value thatorganizationcan create

Why organization exist?


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Approach to Measuring OrganizationalEffectiveness

Externalresourceapproach

Evaluate the organizationsability to secure, manage,and control scare and valuedskill and resource

Lower cost of input

Obtain high-uality input ! rawmaterial ! employees

"ncrease market share

"ncrease stock price

#ain support of stockholder such as

government or environmentalist

"nternalsystemapproach

Evaluate the organizationsability to innovate andfunction uickly andresponsively

$ut decision making time

"ncrease rate of product innovation

"ncrease coordination ! motivation ofemployees

%educe conflict

%educe time to market

&echnicalapproach

Evaluate the organizationsability to convert skills andresource into goods andservices efficiently

"ncrease product uality

%educe number of defects

%educe production cost

"ncrease customer service

%educe delivery time to customer

Approach description goals to set to measure

effectiveness


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Life Cycle Perspective

Pattern of predictable stages through which

organization proceeds:

1. Entrepreneurial stage Formation stage Infancy

2. Collective stage Clarification of missions Commitment to goals

3. Formalization-and-control stage Stabilization

Roles are defined4. Elaboration-of-structure stage Diversifies its product and service Growth opportunities are searched Decentralization

5. Decline stage


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'orma

tion

#rowth

(aturity

)ecline

*+ Entrepreneurialstage

.mbiguous

goals

/igh

creativity

0+$ollectivity

1tage

"nformal

communicati

on and

structure

/igh

commitment

2+'ormalization-

and-controlstage

'ormaliza

tion of rules

1table

structure

Emphasis of

3+Elaboration-of-

structure stage

(ore complex

structure

)ecentralization

)iversified

markets

4+)ecline stage

/igh

employee

turnover

"ncreased

conflict

centralization


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"nputs &ransformation5rocess

Output

1ystem

ENVIRONMENT


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Environment

Worksetting

Work

settin

g

Organization

Or

ga

n

izatio

n

Organizational

performance

Individual

development

Onthe!ob

behavior

Individual

cognitions

Organization

"e

mbers "

em

b ers

Organizing

arrangement#echnology

$urpose

%ocial

factors

$hysical

setting


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Factors Constituting the Organizational Work Setting

Environment

&' (oals

)' %trategies

*' %tructure

+' ,dministrative

policies andprocedures

-' ,dministrative

systems

.' /eward systems

0' Ownership

$urpose

Organizing

arrangement#echnology

%ocial

factors

$hysical

setting

&' Culture

)' "anagement

style

*' Interaction

process+' Informal patterns

and network

-' Individual

attributes

&' %pace

configuration

)' $hysical

ambience

*' Interior design+' ,rchitectural

design

&' #ool e1uipment2

and machinery

)' Information

technology

*' 3ob design+' Work flow design

-' #echnical e4pertise

.' #echnical

procedures

0' #echnical systems


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Aglossary 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 theirenvironment.

Homeostasis. Self-regulation and the aility to maintain a steady state.

Entropy/negative entropy.!losed systems are entropic - a tendencyto deteriorate, while open systems attempt to sustain y importingenergy to o"set entropy

Structure function !i"erentiation an! integration. #herelationship etween these concepts is of crucial importance forunderstanding living organism.

#e$uisite variety. $nternal regulatory mechanism of a system must eas diverse as the environment with which it is trying to deal

E$ui%nality.#here may e many di"erent ways of arriving at a given

end state System evaluation.#he capacity of a system to evolve depends on an

aility to move to more complex forms of di"erentiation and integration,and greater variety in the system facilitating its aility to deal withchallenges and opportunities posed y environment.


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*6-**

7hy is it "mportant to .dapt to7hy is it "mportant to .dapt to

$hange8$hange8 "ndividuals, teams, or organizations that

do not adapt to change in timely ways

are unlikely to survive+


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*6-*0

.dapting to $hange.dapting to $hange

"ndividuals, teams and

organizations that

recognize the

inevitability of change,

learn to adapt to it, and

attempt to manage it,

will be the mostsuccessful+


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*6-*2

7hat is $hange87hat is $hange8

$oping process of moving from a

unsatisfactory present state to a desired

state


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Organization Development56rench2 W'7' and 8ell2 C'92 &::-;

Organization development (OD) is a long term effort,led and spported !y top management, to improve an

organization"s visioning, empo#erment, learning, and

pro!lem$solving processes, throgh an ongoing,

colla!orative management of the organization cltre $#ith special emphasis on the cltre of intact #or%

teams and other team configrations$ tilizing the

consltant$facilitatorrole and the theory and technology

of applied !ehavioral science, inclding action

research&"

56rench2 W'7' and 8ell2 C'92 5&::-;' Organization Development:

Behavioural Science Interventions for Organization Improvement2 6ifth


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Organization Development5"cCalman2 3 = $aton2 / 5&::);

Organization development is an ongoing process of

change aimed at resolving isses #ithin an

organization throgh the effective diagnosis and

management of the organization"s cltre& 'hisdevelopment process ses !ehavioral and social science

technies and methodologies throgh a consltant

facilitator and employs action$research as one of the

main mechanism for instigating change inorganizational grops&"

5"cCalman2 3 = $aton2 / 5&::);' Change Management Guide to ffective

Implementation2 7ondon2 $'C'$' p &*&;'


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8asic ,ssumptions of OD as a "odel for

Change &

t emphasises goals and processes #ithemphasis on processes

t deals #ith change over medim and long$

term

t is a!ot peopleand recognizes their #orth

t involves the organisation as a #hole as #ell

as its parts

t emphasises the concept of a changeagent*facilitator


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8asic ,ssumptions of OD as a "odel for

Change )

t ses action research as a means ofintervention

t is participative, dra#ing on theory and

practices of the !ehavioral sciences

t s!scri!es to a hmanisticphilosophy of

openness

t is a process of facilitation at the individal,

grop and organisational level t has top$management spportand

involvement


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What is Organization Development?

CUMMINGS & WORLEY (2005)

ORGANIZATION DEVELOPMENT

is a process that applies behavioral socialknowledge and practices to helporganizations build their capacity to changeand to achieve greater effectiveness: increasedfinancial performance and improved qualityof work life.


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SPECIFIC OBJECTIVES OF OD

WARREN BENNIS:

to improve interpersonal competenceto encourage a shift in employeesvaluesto enhance mutual understandingamong and within groups

to develop better methods of conflictresolution involving rationality and openness to replacethe bureaucratic method (e.g. suppression,compromise, power)to emphasis on group, mutual trust, shared

responsibility and control, multi-groupmembership, extensivebargaining


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SPECIFIC OBJECTIVE OF OD

MICHAEL BEER

to generate valid data about the state of theorganization in relation to its environmentto clarify the desired outcomes oforganization and individual employee

to help organizations make strategic choicesbased on a diagnosis of the current situationand desired outcomes


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+o, #hats OD related to?

OD applies to changes in the strategy2 structure2 andprocesses of an organization and its dimensions

OD is based on the application and transfer of behavioral

science knowledge and practice> including microconcepts5leadership2 group dynamics; and macroapproaches5strategy2 organization design;

OD is concerned with managing planned change> an adaptiveprocess for planning and adapting to change

OD involves in creation of reinforcement of change as aninstrumental process to stabilize and institutionalize change ina longerterm

OD is oriented to improving organizational effectiveness and1uality of work life


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SIMPLIFYING THE OBJECTIVES

TO ENHANCE PRODUCTIVITY ANDORGANIZATIONAL EFFECTIVENESS

TO PROMOTE QUALITY OF WORKLIFE


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O-. D/01+O1+ O O.23143'O1

00C'5010++

D/01+O1+ D01'O1

,n organization is effective to the e4tent

that it ?'

W601 -+0-L

#he definition is preferred

when ?'

2O3L

3''31/01'

,ccomplishes its stated goals (oals are clear2 time bound2

and measurable+7+'0/ It ac1uires needed resources , clear connection e4ists

between inputs and outputs

+'.3'02CCO1+''-01C

0+

,ll strategic constituencies are at leastminimally satisfied

Constituencies have powerfulinfluence on the organization2

and the organization mustrespond to their demands

CO/P0'1253L-0+

#he emphasis of the organization in thefour ma!or areas 5i'e' return oninvestment2 market share2 newproductinnovation2 !ob security; matches

constituent preferences

#he organization is unclearabout its own emphases2 orchanges in criteria over timeare of interest


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Quality of Work Life

Initiated by Eric Trist at the TavistockInstitute of Human Relations

Providing employees with high levels ofdiscretion, task variety, and feedbackabout results

Discovery of self-managing work group

designEmployee Involvement, empowermentare the main concerns

C.'0.3 O O.23143'O1


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C,$,CI#F #O DO #9EI/ WO/ $/O$E/7F


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NEW CHALLENGES

DYNAMIC GLOBAL ECONOMYBE CUSTOMER RESPONSIVEPROFITABILITY THROUGH COST AND GROWTHREDEFINITION OF ORGANIZATION CAPABILITIESAS THE DNA OF COMPETITIVENESS

LEARNING TO CHANGE: ADAPTATION ANDTRANSFORMATION

MANAGERIAL INNOVATIONKEEPING UP TO TECHNOLOGY INNOVATION

ATTRACTING, RETAINING, AND MEASURINGCOMPETENCE AND INTELLECTUAL CAPITALCHANGING EMPLOYEE DEMOGRAPHICS, E.G.MORE WOMEN IN THE WORKFORCE


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THEMES IN CHANGING AND

DEVELOPING ORGANIZATION %$EED

67EBI8I7I#F

IA#E(/,#IOA

IAAO,#IOA

"IAD%E#G ,77OW IDE,%2 CO"$E#EACIE%E"E/(E ,# ,77 7EE7% #9/O@(9G

7E,/AIA(

%9,/IA( AOW7ED(E

(/O@$IA( $9F%IC,7 ,AD IA#E77EC#@,7,%%E#%


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!esearch Findings

(.11.#"9# $/.O&"$ 1"&:.&"O91 :9)E%1&.9)"9# &/E

5%O$E11 O' "9)";"):.L .).5&";E 1&%.&E#"E1 &O $/.9#E+

. (E&.-E&/9O#%.5/"$ .9.L


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Cloaki! Ta"#i"D$%$lo&

Coll$!iali#'

S$($)*aki!

A"+i(i#io o- Skill(

S$l-)

Di("o%$'

E#$&$$(/i&

I0i%i0al

A0ai%$

(#a#$!i$(

L$%$l( o- 1$/a%ioal S#a#$!i$( #o C/a!$


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L$%$l( o- 1$/a%ioal S#a#$!i$( #o C/a!$

)

1a(i" Go0

P&o($

A"#io

E0)R$(l#

A"#al 1$/a%io

La#$# 1$/a%io

ntegrative +mmary of 'hemes


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ntegrative +mmary of 'hemes

T/$*$ 1a(i" Go0 P&o($ A"#io E0)R$(l#

$loaking &actic 5sychologicalad=ustment%esistence to

change/ostility andambivalence$onfusion:ncertainty

(asking trueintent5ersonal

agenda$ontrol

%ationalization5retending7ithdrawl

"gnorance.voidance

1elf-containedExpress hurt1urvive

1ense-making 5roblemidentification1ensing thesituation7illingness to

change>e rational

1ense ofintegrity9ew insight1tatus vs+ob=ective

"ntegrativescheme

%e-frameconception%epairingmistakes%e-evaluation

. change inthinking&olerance touncertaintyExperiencing

new situation


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T/$*$ 1a(i" Go0 P&o($ A"#io E0)R$(l#

.cuisition ofskills

Learning9ew view point

.bilitymeasurement%esponse newneeds

1elf developmentEstablish

expertise"ncrease ability9ew experiences.daptation

(ore education&raining and

development&ransfer(aximizationefforts;ulnerableposition

"ndependence$areer

advancement1elf-employed5roduction

1elf-discovery

5sychologicalad=ustment"nner strengthEmotionalenergy

1piritualsignificanceExperimentation1urvival/ope

>e sensitive5roactive$hangingattitude and

behavior"nternalizationnew reality

.cceptance$ommitment tochange$omfortableworkingEnthusiasm


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T/$*$ 1a(i" Go0 P&o($ A"#io E0)R$(l#

Entrepreneurship $ompetitivemind-set$onfront thechallenge

$ontrol andautonomyEntering newmarket

>e political9egotiate1ocializeEnter labormarket#ain power

9ewopportunity"mprovement

)evelopcollegiality

/armony&rust%elationship$ommitment$ollective

actions

&actic andstrategy$onsensus>ufferingfunction

7ork together&eam spirit1upport$onnection'acilitative

.lliance5eople full-

circle


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I#$!a#i%$ S**a' o- #/$ Co"$( I%ol%$0

S#a#$!i$( Mai#$a"$ A0ai%$$(( Paa*$#$(

"ndividual $loaking tactic1ense-making

.cuisition of skills1elf-discovery

Entrepreneurship)evelop collegiality

EfficiencyEffectiveness

T/$ Po"$(( o- I0i%i0al A0ai%$ S#a#$!i$( #o C/a!$


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T/$ Po"$(( o- I0i%i0al A0ai%$ S#a#$!i$( #o C/a!$

TIME

SHORT)RUN INTERMEDIATE)

RUN

LONG)RUN

INVENTING

THE FUTURE

ADAPTATION PROCESS

Mai#$a"$ A0ai%$$((

A0ai%$$((Mai#$a"$

CHANGING SITUATION

PARAMETER OF THE PROCESS

E--$"#i%$$((

E--i"i$"'

ENVIRONMENT

I0i%i0al


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COMPONENTS OF REFLECTIVE LEARNING 21OYD 3 FALES,

45678 IN RELATION 9ITH THEMES

COMPONENT INDIVIDUAL

THEMES

*+1E91E O' )"1$O('O%& $LO.?"9# &.$&"$

0+ ")E9&"'"$.&"O9@ $L.%"'"$.&"O9 O' &/E $O9$E%9 1E91E-(.?"9#

2+ O5E99E11 &O 9E7 "9'O%(.&"O9 .$A:"1"&"O9 O' 9E71?"LL1, 1EL'-)"1$O;E%

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Organitational Development and Change.ppt