Some Notes on Organisational Development (based on Waddell, Cummings and Worley 2004)

Transcription

1 Some Notes on Organisational Development (based on Waddell, Cummings and Worley 2004) Associate Professor Shanton Chang Department of Computing and Information Systems University of Melbourne

2 What is Organisational Devt.? Organisational development is a systematic application of behavioural science knowledge to the planned development and reinforcement of organisational strategies, structures, and processes for improving an organisations effectiveness. Waddell, Cummings, and Worley (2004)

3 Various Models of OD Lewin s Model Action Research Contemporary Action Research Lippitt, Watson, and Wesley s Model For this course, we combine a number of different OD Models to present a Generic model of planned change

4 Generic Model of Planned Change Entering and Contracting Diagnosing Planning and Implementing Evaluating And Institutionalising Waddell, Cummings, & Worley (2004)

5 Entering into the OD Process I What is/are the issue(s) in the situation? Eg. We need team building Could this also be due to problems with reward systems, personality differences, inappropriate structure and bad leadership, or bad job design What are the ACTUAL problems? Initial data collection about the extent of the problem

6 Entering into the OD Process II WHO is the client? Generally those organisational members who are directly impacted by the change issue. Why identify who they are? May be internal or external (eg. Union officials) Who is the OD Practitioner responsible to?

7 Entering into the OD Process III Who is the OD Practitioner? Implies that the process involves an OD Practitioner (Change Agent?) Do they have the skills and references? (Eg. Why did previous employers like or dislike them?) Internal or external? Which field of expertise? Consider politics involved. How effective has OD Practitioner been in the past for which types of organisations, dealing with what sorts of problems (ie. hard or soft) using what techniques? Are these compatible with the current context?

8 Contracting Process I Developing a Contract (see agency theory from Org Processes) Formal or informal Mutual expectations (What are the needs, wants and expectations of BOTH parties?) Time and resources Ground rules (issues of confidentiality, termination, responsibilities of OD Practitioners)

9 Contracting Process II Ground Rules (continued) Ground rules have to be clearly set out because you cannot rely on assumptions in such situations. For internal consultants, organisational politics make it especially important to clarify issues of how to handle sensitive information and how to deliver bad news. Waddell, Cummings, and Worley (2000: 73)

10 Diagnosis I Understanding the context! (past, current, and potential) Inputs, transformations, and outputs Levels of diagnosis Organisational level Group level Individual level

11 Diagnosis Org. level Grp. level Ind. level Inputs General External Environment (e.g. PETS) Industry Structure (including labour infrastructure) Inputs Organisational design (organisational culture, systems, structure, etc.) Inputs Personal characteristics Organisational and group design Transformation Organisational design and processes Organisational goals, mission, strategies Transformation Task structure, team functioning, clarity of goals, group composition, group norms and cultures Transformation Skills, nature of task, autonomy, feedback Outputs Organisational performance Productivity Shareholder satisfaction Reputation Outputs Team effectiveness (cohesiveness, quality of decisions, productivity) Outputs Individual performance (e.g. effectiveness, satisfaction, development)

12 Dealing with information Plan to collect data Collecting data Analyse data Feedback data Follow up Nadler (1977)

13 Collecting data Sample (who?) Aim (why?) Purpose (for whom and how will you use the data?) Confidentiality (who has access? Ethics) Time (how much time are you going to take from the sample?) Benefits (for the sample) Why should the sample trust YOU?????

14 Method of data collection Qualitative or Quantitative Soft or Hard Problems? Cross-sectional or longitudinal studies?

15 Method of data collection Questionnaires Surveys (mass sampling) Impersonal Anonymous? Primary tool for quantitative data Use of scales (established measures?)

16 Method of data collection Interviews Structured, semi-structured, open-ended One on one interview or focus groups Fluid and adaptive Time consuming Dependent on skill of interviewee (which has to be sophisticated) Dependent on interaction between interviewer and interviewee

17 Method of data collection Observations Observing behaviours around organisation Real time data Incidence reporting Difficulties with interpreting meaning of observances Non-obtrusive methods Secondary sources of information Archives and Annual reports Objective information Questions of validity and relevance

18 Method of data collection You have the different methods for data collection. The methods are NOT mutually exclusive and you may use a combination of methods. It depends on the nature of the problem you are studying Therefore, understanding the nature of the problem you are investigating allows you to pick a more appropriate method of data collection

19 Analysis of data Quantitative analysis Descriptive statistics (means, std dev., frequency distributions) Correlation coefficients Difference tests (t-tests, z-tests) Qualitative Content analysis Software

20 Feedback of diagnostic information Why feedback diagnostic information to organisation? The organisation has to have ownership over the information The ensure you have the correct information That you have understood the information To create further opportunities to get new information during feedback sessions

21 Content of feedback information Information should be: relevant understandable to organisational members (your audience) descriptive and explain organisational behaviour verifiable in that organisational members can relate it to the organisation in reality

22 Feedback session Who has access to the information? (Top down or bottom up?) Do you give the same information to different levels of the organisation and gauge the reaction separately? Do you provide adequate opportunities for discussion? Structure the meeting rather than open discussion? Provide and agenda the purpose is not to CHANGE the information but to explain the information you have.

23 Issues to consider in feeding back diagnostic information Organisational culture (Any unacceptable topics?) Power and politics (Any sense of distrust between organisational members and with you as Change Agent?) Organisational Disturbance (How much time have you taken up from organisational members already?) Acknowledging the limitations of YOUR methodologies

24 Feedback of information helps To ensure you have understood the data you collected (Verification and Clarification) Better information means you can plan better and design more relevant interventions subsequently

25 What happens after feedback? Is there a need for change? If yes, is there resistance to change and deny the need, or is there an effort ( energy ) to identify and solve problem? If there is an effort to solve problem, do structures and process exist to turn the energy into actions? If there are structures and processes that help, then you have change, if not Frustration may result.

26 Generic Model of Planned Change Entering and Contracting Diagnosing Planning and Implementing Evaluating And Institutionalising Waddell, Cummings, & Worley (2004)

27 Interventions A set of sequenced planned action Aims to increase effectiveness of organisation (its processes, culture, productivity etc.) Effectiveness of interventions may be judged using 3 main criteria: Does it suit the needs of the organisation? Is it based on causal knowledge about the desired outcomes? Does it enable organisational members to manage the change competently?

28 How to design effective interventions? Readiness for change (attitude, resources, infrastructure) Capability for change (competence and ability of management / change agent) Analysis issues have to be considered: Cultural context Structure and level

29 Types of interventions Human process interventions Human resource management interventions Technostructural interventions Strategic interventions

30 Types of interventions Human process interventions Relates to interpersonal relationships and group dynamics Team Building Examining more effective ways of interacting and working with group members Communication Functional roles of group members Expectations of group members Problem solving processes Group norms Leadership and authority Inter-group relations Power, politics, interaction, resources, expectations, intergroup understanding

31 Types of interventions Human resource management interventions Relates to human resource management practice Recruitment and Selection Goal Setting Performance Appraisal Training and Development Reward Systems and Promotions Retrenchment and Placement Workplace diversity issues Culture, age, sexuality, disability, educational background, tenure, health and safety

32 Types of interventions Technostructural interventions Refers to change programmes that address technology and structure of organisations Consider the relationships between organisational structure AND the environment, organisational goals, organisation size, worldwide operations, and technology BPR and TQM are examples Work Design (See the Kling article from Week 2)

33 Types of interventions Strategic interventions Open systems planning Analysis of environment and the organisation Addressing the environmental issues in relation to organisational goals Compare the present with the desired future outcome in specific terms Bridging the gap between vision and reality Transorganisational development Relfects the belief that issues facing organisations today are too complex and multifacted to be faced by one organisation Therefore, inter-organisational collaborations. Joint ventures, mergers, sharing of resources, etc.

34 So what issues are there to consider in planning intervention? Organisational Transformation Organisational culture Organisational structure Technology Human resource External environment Etc.

35 Implementing Interventions: Managing Change Effective Change Management involves Creating a Vision Motivating Change Developing Political Support Managing Transition Sustaining Momentum

36 Creating Vision What is the vision (the mission and objectives)? Does the vision represent desired and valued outcomes? Whose vision is it anyway? Do people believe in and subscribe to the vision? Ownership of goals, and objectives Energising commitment achieving excitement and enthusiasm for the vision (involves emotions)

37 Motivating Change Creating readiness for change Create understanding of need for change Reveal and explain the gap between vision and desired outcome Show and explain feasible options (i.e., how can the individual, group, organisation get to the desired outcome or goal?) These are not general grandiose ideas such as We will conquer the World with this new Strategy BUT specific goals.

38 Motivating Change Overcoming resistance to change Empathy and support - understanding why people are resistant to the particular changes Communication - to clarify consequences of change and to effectively communicate with stakeholders about the change process and expected outcomes. (NOTE: Communication is a 2 way interactive process) Participation and involvement To create ownership of change process

39 Developing Political Support Assessing change agent s power Identifying stakeholders (and their sources of power) Influencing Stakeholders BUT HOW?

40 Developing Political Support Understanding why people hang on to their power and how important it is to them, and understanding the position they are in and the extent to which they will go to preserve their position. What is YOUR potential role in maintaining, strengthening, or weakening that position for them? (i.e., Are you a defender, a friend, or a foe to them?) Remember : The human EGO is a very powerful and sensitive thing

41 Developing Political Support Expert Power Appealing to their knowledge and respecting their knowledge. Be clear and use straight plan language (not blunt) Referrent Power Appeal to social networks and understanding the personalities involved

42 Developing Political Support Control of Resources Be clear on how you are affecting the value of the resources and minimise threat where possible Position Power Appeal to responsibility and the need to validate standing within the organisation

43 Managing Transition Activity planning = planning for the change process. Need to be cost-effective, have the support of top management, and be flexible Visions and Missions are general in nature. In managing the transition (the change period), you may need more specific goals. Specific mid-point goals are more manageable Attention to detail may be important

44 Managing Transition You may need a checklist or a road map of activities that have been planned ahead Remembering that the road map must be flexible as well to respond to unforeseen circumstances Road maps of the activities you have planned are clearly set out so that the OD practitioner has a guiding framework which acts as a reminder of things they MAY forget in the heat of debate, and a flurry of activities

45 Managing Transition Change Management Structure WHO is in charge? Do you have the involvement of all levels within the organisation? The commitment of top management is important for successful change management as they have access to resources that OD practitioners may not have Representatives from stakeholder groups are important as they have to own the change process too. Do they believe in the change?

46 Managing Transition In Summary Clear plan of activities Clear understanding of WHO is doing what Clear understanding of whether the people in charge have the skills (including communication skills) to carry the change through Follow the time-table Be flexible and be prepared for reasonable CHANGES to the original plans

47 Sustaining Momentum Once the change is underway, the initial excitement and energy will need to be sustained till the process is complete It is always EASY to go back to old habits So, sustained effort at persisting in the new ways are important BUT HOW?

48 Sustaining Momentum Providing resources for change Sometimes organisations seriously underestimate the amount of resources needed for change (MUCH like how students underestimate the time needed to do a GOOD report) So, there may be a need to budget for additional pool of resources (just in case)

49 Sustaining Momentum Building a support network for the change agents Maintaining emotional and psychological distance from the rest of the organisation can be very taxing, but may be important in order to remain objective Your change agents need continued support emotionally, psychologically, and intellectually (People to bounce ideas off)

50 Sustaining Momentum Developing new competencies and skills Your change agents have to continually upgrade their skills as they progress along the change process (because new skills may be required) The stakeholders (employees and managers) will also need their skills and competencies UPDATED as the change is implemented. New competencies allow stakeholders to adapt and cope better to new work context and technology

51 Sustaining Momentum Reinforcing new behaviours Pay attention to reward structures (formal and informal) Don t leave this to the end the reward structure has to complement the new work context from the start to show the organisation s commitment to the new ways of doing things

52 Generic Model of Planned Change Entering and Contracting Diagnosing Planning and Implementing Evaluating And Institutionalising Waddell, Cummings, & Worley (2004)

53 Practical reasons for evaluation (see change failure lecture) Need to know if the interventions are successful Need to know the relevance of interventions Need to know what people feel about the change process Need to know WHAT ELSE has to be done Need to know if the OD Practitioner has done the job Need to know if what the OD Practitioner has done is good (or not) The OD Practitioners needs performance appraisal too

54 Rationale behind IS evaluation Practicalities What dimensions of IS exactly are you evaluating? How will you separate the impact of IS from other aspects of the organisation?

55 Rationale behind IS evaluation Let s talk politics At the start, in the tendering process, do you say We will cost you less? (In order to gain contracts do you make yourself look the cheapest?) The success of the new IS and change process can make or break the OD practitioner politically With whom/what do you credit successes and who/what do you blame for failures?

56 Rationale behind IS evaluation Let s talk MORE politics According to Waddell, Cummings, and Worley (2000), managers are increasingly asked to justify expenditure in terms of hard, bottom-line outcomes In light of this do you say a system is WONDERFUL when it is good, and GOOD when it is bad??? What does this do for the EGOS involved (especially the OD Practitioner s?)

57 Rationale behind IS evaluation Understanding the purpose of evaluation What are you measuring the IS in relation to? Does management understand the value of the IS? Does failure mean you move on? How can OD Practitioners/IS Specialists economically justify future investment in IS in the event of failure?

58 More reasons for evaluation To understand the impact of IS on the organisation To determine the most suitable IS for the organisation (which may or may not be the current new one that you have just implemented) Not to assign blame but to explain how it can work better So, how do we do it?

59 Evaluating Evaluation can and should occur throughout the OD Process, not just after the implementation of interventions This implies that there are two types of evaluations: To guide interventions To assess the overall impact of the interventions

60 Evaluating to guide interventions Implementation feedback Clarification of intervention Evaluation of ongoing process Gauging the mood of the organisation Development of plans for the next implementation step or activity Measuring IMMEDIATE / short term results of interventions Helps avert potential disasters that are foreseeable in the short run Keeps the organisation and the OD Practitioner going

61 Evaluating to assess overall impact of interventions Evaluation feedback Measures of long term effects and include issues of satisfaction, performance, costs and benefits etc. Guides future strategy Allows greater understanding of the processes, work culture, and attitudes of the organisation

62 Measures I At what level are you evaluating? Organisational, group, individual? Are you measuring outcomes or processes? Selecting your variables (what are you measuring?) Effectiveness? Efficiency? Speed of system? Task variety? Satisfaction?

63 Measures II Variables are usually (but not always) driven by the strategy of the organisation For example, - Effectiveness of a person. Effectiveness overall? Effectiveness in particular tasks? Effectiveness rated by supervisors? Or peers? Or subordinates? Effectiveness or productivity? Effectiveness or useability?

64 Measures III Measures should also reflect: the aims and objectives of the organisation the aims and objectives of the interventions and the OD process the climate/environment of the organisation

65 Measures IV Measures must be: Valid Validity refers to the extent to which a measure reflects what it is intended to measure Reliable Reliability refer to the extent to which a measure accurately measures the value of the variable Well defined operationally How exactly does the measure work what is it measuring or is being observed?

66 CHECKPOINT Go back to your notes of diagnosis and data collection. Use the same principals Consider sample, aim, confidentiality, data collection method etc. Consider your research design. i.e., longitudinal, cross-sectional, statistical analysis, comparison studies? Quantitative or qualitative? (see your Henderson and McAdam, 1998 Reading 4 pages) Compare with initial diagnostic information?

67 After evaluation If it is a failure what happens? Are there enough resources to keep going? Do you cut losses and move on? Who or what is to be held accountable? How does the organisation move on? Strategic choices are involved here. If it is a success what happens?

68 Institutionalising interventions If the interventions are successful then let s make it a permanent part of the organisation s normal functioning (as far as it can be permanent until the next change) It is what Lewin terms refreezing, but you are now more sophisticated and can understand that it is the institutionalising of the changes and interventions OD practitioners have just introduced but HOW?

69 Institutionalising framework As suggested by Waddell, Cummings and Worley (2000) What affects the ability of the organisation to insitutionalise the change? Organisation characteristics Intervention characteristics Institutionalising processes Indicators of institutionalising

70 Organisation Characteristics Organisation characteristics Congruence (match) between the organisation s philosophy and culture AND the type of intervention Stability of environment and technology Consider the interaction between the organisation and Unions

71 Intervention Characteristics Intervention characteristics Goal specificity specific goals help direct focus and behaviours Programmability clear stages and that different aspects of the interventions are clearly specified and followable Level of Change Target have you just changed a small group and how sustainable is this? Or does the intervention involve the whole organisation?

72 Institutionalising Interventions I Socialisation process information about new beliefs, preferences, norms, and values. Also consider the needs of new members to the organisation. Commitment over time to new ways of working through involvement of employees in programmes Reward system and allocation link rewards to new behaviours required by new interventions

73 Institutionalising Interventions II Diffusion of intervention throughout the whole organisation (not just ONE section) Monitoring and re-calibration putting in processes that enable change agents to detect deviations from the desired interventions and taking corrective actions

74 Indicators of Institutionalisation Do people know what are the behaviours associated with the interventions? Do people actually perform those behaviours? Do people prefer the new behaviours or the old? Do they accept the new behaviours? Do people think the new behaviours are appropriate? Are they convinced? Do people socially value the new behaviours and recognise any positive impact of new behaviours?

75 OD in summary I Some assumptions That you have a good OD practitioner That you have time to plan That you have a LOT of time That you have resources at your command That you know what the organisation wants That what the organisation wants is CLEAR and uniform (the whole one vision thing) That the environment is relatively stable

76 OD in summary II Are the assumptions realistic? It depends on: The product or service The environmental factors Nature of the industry Life cycle of the organisation Expertise of the OD practitioner Ability to use the model in conjunction with other models