Organization Development & Change

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1 Question Paper solution Module 1: 1. Define OD. OD is a top management supported, long range effort to improve an organisation s problemsolving & renewal processes, 2. Explain OD characteristics. Leadership Openness of Communication Participative Management Role Clarity Conflict Resolution Leader Support Leader Control 3. What are Steps in Planned Change a) Recognize the need for change. Recognition of the need for change may occur at the top management level or in peripheral parts of the organization. The change may be due to either internal or external forces. b) Develop the goals of the change. Remember that before any action is taken, it is necessary to determine why the change is necessary. Both problems and opportunities must be evaluated. Then it is important to define the needed changes in terms of products, technology, structure, and culture. c) Select a change agent. The change agent is the person who takes leadership responsibility to implement planned change. The change agent must be alert to things that need revamping, open to good ideas, and supportive of the implementation of those ideas into actual practice. d) Diagnose the current climate. In this step, the change agent sets about gathering data about the climate of the organization in order to help employees prepare for change. Preparing people for change requires direct and forceful feedback about the negatives of the present situation, as compared to the desired future state, and sensitizing people to the forces of change that exist in their environment. e) Select an implementation method. This step requires a decision on the best way to bring about the change. Managers can make themselves more sensitive to pressures for change by using networks of people and organizations with different perspectives and views, visiting other organizations exposed to new ideas, and using external standards of performance, such as competitor's progress. f) Develop a plan. This step involves actually putting together the plan, or the what information. This phase also determines the when, where, and how of the plan. The plan is like a road map. It notes specific events and activities that must be timed and integrated Dept of MBA, SJBIT Page 1

2 to produce the change. It also delegates responsibility for each of the goals and objectives. g) Implement the plan. After all the questions have been answered, the plan is put into operation. Once a change has begun, initial excitement can dissipate in the face of everyday problems. Managers can maintain the momentum for change by providing resources, developing new competencies and skills, reinforcing new behaviors, and building a support system for those initiating the change. h) Follow the plan and evaluate it. During this step, managers must compare the actual results to the goals established in Step 4. It is important to determine whether the goals were met; a complete follow up and evaluation of the results aids this determination. Change should produce positive results and not be undertaken for its own sake. 4. Who is an OD Practitioner? What are his competencies? The OD practitioner is responsible for bringing their whole self to the task in hand, and build their reputation as a trusted advisor with their clients. Not only must the practitioner be an advocate of development, but must focus on continuously improving and developing their own learning and understanding of their practice. Key Competencies of an OD Practitioner 1. Theoretical and Technical expertise which can be applied 2. Influencing Skills 3. Spot and energise engagement in others 4. Innovative, Creative and Critical thinking 5. Ability to tackle difficulties and problems with positivity 6. Self-Confident 7. Credible communicators 8. Interpersonal and Facilitation skills, with an ability to stand back 9. Emotionally Tuned in 10. Ethical, value driven and acts with integrity Dept of MBA, SJBIT Page 2

3 Module 2: 5. Explain OD process. Entry Diagnosis Action Planning Implementation Termination 6. Explain the various models of OD Diagnostics. Diagnostic Models: In a study of OD practitioners, 70 % reported using a model to assist identifying problems. Diagnostic models may used to analyze the structure, culture, and behavior of the organization. The Analytical Model Used for interdepartmental issues Examines four characteristics of departments Degree of department structure Time orientation of members toward others Interpersonal member s orientation toward goals The model s objective is to help departments achieve integration. The Management Practice Model Six Basic Factors Basic planning General Business practices Finance Advertising and promotion Market research Personal Asking a few basic questions in each area, it is possible to get an indication of where the client s problems may be located. Open Systems model: Exchanges information & resources with their environment. They display a hierarchical order. Systems vary in size & complexity. Common inouts are: 1. i/p Dept of MBA, SJBIT Page 3

4 2. Transformation 3. o/p 4. boundaries 5. feedback 6. equifinality 7. alignment The Sociotechnical System Model Two systems contained in each organization: Social system, which consists of interpersonal relationships. Technical system, which consists of task, tools, and activities of organization. The systems are interrelated. The diagnosis determines how the systems are interrelated and what types of feedback is required between the subsystems. The Force Field- Analysis Model Organizational behavioral is a balance between forces working in opposite directions. Restraining forces act to keep organization stable. Driving forces act to change organization. When two forces are equal, the organization is in quasi-stationary state of equilibrium. Analysis of forces determines which force to increase or decrease to bring about change. Module 3: 1. WHAT ARE EFFECTIVE OD INTERVENTIONS? The term intervention refers to a set of sequenced planned actions or events intended to help an organization increase its effectiveness. Interventions purposely disrupt the status quo; they are deliberate attempts to change an organization or subunit toward a different and more effective state. In OD, three major criteria define an effective intervention: (1) the extent to which it fits the needs of the organization; (2) the degree to which it is based on causal knowledge of intended outcomes; and (3) the extent to which it transfers change management competence to organization members. 2. Which are the different Types of OD Interventions? Dept of MBA, SJBIT Page 4

5 Types of OD Interventions Broadly OD interventions can be classified into: 1. Technology related interventions 2. Human process interventions 3. Define Structural design, Downsizing, Reengineering. Structural design. This change process concerns the organization s division of labor how to specialize task performances. Interventions aimed at structural design include moving from more traditional ways of dividing the organization s overall work (such as functional, self-contained unit, and matrix structures) to more integrative and flexible forms (such as process-based, customer-centric, and networkbased structures). Diagnostic guidelines exist to determine which structure is appropriate for particular organizational environments, technologies, and conditions. Downsizing. This intervention reduces costs and bureaucracy by decreasing the size of the organization through personnel layoffs, organization redesign, and outsourcing. Each of these downsizing methods must be planned with a clear understanding of the organization s strategy. Reengineering. This recent intervention radically redesigns the organization s core work processes to create tighter linkage and coordination among the different tasks. This workflow integration results in faster, more responsive task performance. Reengineering is often accomplished with new information technology that permits employees to control and coordinate work processes more effectively. Reengineering often fails if it ignores basic principles and processes of OD. Module 4: What are Strategic Interventions? Strategic Interventions, is a strategic, results-oriented, management consulting method. Strategic Interventions competes based on its ability to produce extraordinary "bottom line" results. We achieve those results for our clients by "re-imagining" their business (not their business processes) to reconfigure assets, construct"road maps" for implementation and execute those plans to build sustainable competitive advantage in their marketplace. Strategic Dept of MBA, SJBIT Page 5

6 Interventions, Inc is a "beginning to end" organization that believes our work is complete when the identified returns are realized. What are the Interventions under HRM Interventions? Interventions under HRM Interventions 1. Performance management 2. G o a l S e t t i n g 3. P erfo rm ance Ap prai s al 4. R eward S ys t ems 5. D e v e l o p i n g a n d a s s i s t i n g M e m b e r s 6. C a r e e r P l a n n i n g a n d D e v e l o p m e n t i n t e r v e n t i o n s 7. W o r k F o r c e D i v e r s i t y i n t e r v e n t i o n s 8. Em p l o y e e s t r e s s a n d W e l l n e s s i n t e r v e n t i o n s What is Career Planning? Career Planning Career planning is a subset of career management. Career planning applies the concepts of Strategic planning and Marketing to taking charge of one's professional future. The word career refers to all types of employment ranging from semi-skilled through skilled, and semiprofessional to professional. The term career has often been restricted to suggest an employment commitment to a single trade skill, profession or business firm for the entire working life of a person. In recent years, however, career now refers to changes or modifications in employment during the foreseeable future. There are many definitions by management scholars of the stages in the managerial process. The following classification system with minor variations is widely used: 1. Development of overall goals and objectives, 2. Development of a strategy (a general means to accomplish the selected goals/objectives), 3. Development of the specific means (policies, rules, procedures and activities) to implement the strategy, and 4. Systematic evaluation of the progress toward the achievement of the selected goals/objectives to modify the strategy, if necessary. Dept of MBA, SJBIT Page 6

7 Module 5: What is family Business? A family business is a business in which one or more members of one or more families have a significant ownership interest and significant commitments toward the business overall wellbeing. What are educational organizations meant for in the society? Educational organizations are expected to be vehicles for social change, as well as preserving and transmitting values. To change schools, we must change the power relationships in schools. What is a Learning Organization A Learning Organization adapts to unfolding changes in the environment. This process is often called organizational development (OD). Module 6: DEFINE Organisational Change Organisational Change can be defined as, a concerted, planned effort to Increase organisational effectiveness &health through changes in the organization's dynamics using behavioral science knowledge. Which are the different TYPES OF ORGANISATIONAL CHANGE? To change is to move, from the present future, from a known state to a relatively unknown state. Types of changes are as follows: Ø Happened Change. Ø Reactive Change. Ø Anticipatory Change. Ø Incremental change. Ø Operational Change Ø Strategic Change. Dept of MBA, SJBIT Page 7

8 Ø Directional Change. Ø Fundamental Change. Ø Total Change. Which are the different TYPES OF FORCES? 1.External forces. 2.Internal Forces. External Forces Ø Demographic Characteristics Ø Market Changes. Ø Technological Advancements Ø Social Pressures. Ø Political Events. Internal Forces Ø Human resource Problems. Ø Managerial Behavior & Problems. Explain Kurt Lewin s Theory. Lewin's Three Step Change Model Phases are: Unfreeze: Reducing the forces that are striving to maintain the status quo, and dismantling the current mind set. Usually by presenting a provocative problem or event to get people to recognize the need for change and to search for new solutions. Transition: Developing new behaviors, values, and attitudes, sometimes through organizational structure and process changes and development techniques. There may be a period of some confusion as we move from the old ways of doing things to the new. Freeze: The final stage of crystallizing and the adaptation of ownership of the new 'as is'. The organization may revert to former ways of doing things at this point unless the changes are reinforced through freezing. Dept of MBA, SJBIT Page 8

9 Module 7: Which are the two forces of change? The Internal Environment The internal environment of an organization refers to events, factors, people, systems, structures and conditions inside the organization that are generally under the control of the company. The company's mission statement, organizational culture and style of leadership are factors typically associated with the internal environment of an organization. As such, it is the internal environment that will influence organizational activities, decisions and employee behavior and attitudes. Changes in the leadership style, the organization's mission or culture can have a considerable impact on the organization. The External Environment The external environment are those factors that occur outside of the company that cause change inside organizations and are, for the most part, beyond the control of the company. Customers, competition, the economy, technology, political and social conditions and resources are common external factors that influence the organization. Even though the external environment occurs outside of an organization, it can have a significant influence on its current operations, growth and long-term sustainability. Ignoring external forces can be a detrimental mistake for managers to make. As such, it is imperative that managers continually monitor and adapt to the external environment, working to make proactive changes earlier on rather than having to take a reactive approach, which can lead to a vastly different outcome. Which are the Five Learning Disciplines? In 1990, Peter Senge published "The Fifth Discipline" (later followed by "The Fifth Discipline Fieldbook: Strategies and Tools for Building a Learning Organization" in 1994). His books pulled together his extensive research into what different organisations do to build learning capacity and why some organisations use learning better than others. Senge codified these practices into what he called 'The 5 Learning Disciplines' as well as coming up with the concept-label of 'learning organisations'. The 5 Learning Disciplines Shared Vision, Mental Models, Personal Mastery, Team Learning and Systems Thinking Dept of MBA, SJBIT Page 9

10 Explain the 'Industry Lifecycle' A concept relating to the different stages an industry will go through, from the first product entry to its eventual decline. There are typically five stages in the industry lifecycle. They are defined as: i. Early Stages Phase - alternative product design and positioning, establishing the range and boundaries of the industry itself. ii. Innovation Phase - Product innovation declines, process innovation begins and a "dominant design" will arrive. iii. Cost or Shakeout Phase - Companies settle on the "dominant design"; economies of scale are achieved, forcing smaller players to be acquired or exit altogether. Barriers to entry become very high, as large-scale consolidation occurs. iv. Maturity - Growth is no longer the main focus, market share and cash flow become the primary goals of the companies left in the space. v. Decline - Revenues declining; the industry as a whole may be supplanted by a new one. Module 8: What are parallel Organizations? Parallel organizations are different from hierarchical organizations A parallel organization differs from a traditional, hierarchical organization in that it actively solicits employee input. It's possible -- and sometimes advantageous -- to blend a bureaucratic structure with a parallel structure. For example, a subset of employees can act as a parallel structure to develop solutions to specific problems without changing the overall organizational structure. 1. Business 2. Business Management 3. Managing Employees 4. The Structure of a Parallel Organization Which are the 4 Approaches to Organizational Change Working on the System Cultivating Consciousness Creating Alternatives Working in the system Dept of MBA, SJBIT Page 10

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