MASTER OF BUSINESS ADMINISTRATION Organisational Development

MASTER OF BUSINESS ADMINISTRATION Organisational Development Contact details: Regenesys Business School Tel: +27 (11) 669-5000 Fax: +27 (11) 669-5001 Email: info@regenesys.co.za www.regenesys.co.za

Version Control: 7.3_f Date of Publication: May 2014 Publisher: Regenesys Management Place of Publication: Sandton Document Change History Date Version Initials Description of Change 19 July 2013 6 Typographical amendments 23 August 2013 7.1 CT Revised learning outcomes; additional and revised content; and referencing style changes 19 February 2014 7.2_f FVS Formatting 6 May 2014 7.3 CT New prescribed textbook; Emerald articles; continuous improvement; and concluding case study. 6 May 2014 7.3_f SK Formatting This study guide highlights key focus areas for you as a student. Because the field of study in question is so vast, it is critical that you consult additional literature. Copyright Regenesys, 2014 All rights reserved. No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording or otherwise) without written permission of the publisher. Any person who does any unauthorised act in relation to this publication may be liable for criminal prosecution and civil claims for damages.

CONTENTS 1. WELCOME TO REGENESYS... 5 2. INTRODUCTION... 6 2.1 TEACHING AND LEARNING METHODOLOGY... 6 2.2 ALIGNING ORGANISATIONAL, TEAM AND INDIVIDUAL OBJECTIVES... 7 3. ICONS USED IN THIS STUDY GUIDE... 8 4. STUDY MATERIAL FOR THE MODULE... 9 5. RECOMMENDED RESOURCES... 9 5.1 RECOMMENDED READING... 9 5.2 RECOMMENDED ARTICLES... 9 5.3 RECOMMENDED MULTIMEDIA... 10 5.4 ADDITIONAL SOURCES TO CONSULT... 11 6. LEARNING OUTCOMES... 12 7. SCOPE AND LEARNING GUIDANCE... 12 7.1 UNDERSTANDING THE ORGANISATIONAL DEVELOPMENT CONTEXT... 13 7.1.1 THE HISTORY OF ORGANISATIONAL DEVELOPMENT... 13 7.1.2 DEFINING IMPORTANT CONCEPTS... 17 7.1.3 THE ROLE OF CULTURE IN ORGANISATIONAL DEVELOPMENT... 28 7.1.4 RATIONAL, EMOTIONAL AND SPIRITUAL INTELLIGENCE REQUIRED FOR OD... 35 7.1.5 CONGRUENCE ALIGNING THE DRIVERS OF ORGANISATIONAL PERFORMANCE... 36 7.2 ORGANISATIONAL DEVELOPMENT MODELS AND PROCESSES... 39 7.2.1 FEW ABSOLUTES (AND STRAIGHTFORWARD CAUSE-AND-EFFECT RELATIONSHIPS)... 39 7.2.2 ORGANISATIONAL DEVELOPMENT STRATEGIES AND BUSINESS STRATEGIES... 40 7.2.3 TEXTBOOK OD VS. REAL LIFE OD... 41 7.2.4 WHAT IS A MODEL?... 41 7.2.5 DEVELOPING AN OD MODEL... 43 7.2.6 TRANSFORMATION MODEL... 46 7.2.7 SIMPLE INTERVENTION-FOCUSED PROCESS... 48 7.2.8 THE ORGANISATIONAL DEVELOPMENT PROCESS... 48 7.2.9 SYSTEMS THEORY... 50 7.2.10 A FOCUS ON PROCESS, STRUCTURE OR PEOPLE?... 51 7.2.11 TAKING COGNISANCE FOR THE NEED FOR CHANGE... 53 7.2.12 CHANGE AS LEARNING... 54 7.2.13 WHO IS RESPONSIBLE FOR OD?... 57 7.2.14 ETHICAL STANDARDS IN OD... 61 7.3 ORGANISATIONAL DEVELOPMENT INTERVENTIONS... 63 7.3.1 OD INTERVENTIONS AT THREE LEVELS INDIVIDUAL, TEAM, ORGANISATION... 63 7.3.2 HOW TO ENSURE SUCCESSFUL OD INTERVENTIONS... 68 7.3.3 TERMINATION... 72 8. CASE STUDY: BECOMING A COMPANY THAT QUESTIONS EVERYTHING... 74 9. REFERENCES... 77 10. GLOSSARY OF TERMS... 80

List of Tables TABLE 1: THE 'FATHERS' OF OD... 15 TABLE 2: ORGANISATIONAL CULTURE - COMMON CHARACTERISTICS... 29 TABLE 3: COMPONENTS OF A MODEL... 42 TABLE 4: WHEN WE USE MODELS... 43 TABLE 5: ORGANISATIONAL DEVELOPMENT PROCESS... 49 TABLE 6: TYPES OF 'SYSTEMS'... 51 TABLE 7: DESIGNING ORGANISATIONAL STRUCTURES... 52 TABLE 8: FORCES OF CHANGE... 54 TABLE 9: ASSESSING AN ORGANISATION'S LEARNING CULTURE... 55 TABLE 10: INTERVENTIONS AIMED AT DEVELOPING THE INDIVIDUAL EMPLOYEE... 64 TABLE 11: EMPLOYEE INVOLVEMENT PROGRAMMES... 65 List of Figures FIGURE 1: ORGANISATIONAL BEHAVIOUR (OB) DISCIPLINES... 18 FIGURE 2: ORGANISATIONAL DEVELOPMENT'S FIVE STAGES... 21 FIGURE 3: AN INTEGRATED APPROACH TO OD... 23 FIGURE 4: MODEL OF ACTION RESEARCH PROCESS... 24 FIGURE 5: THE OD LOOP... 26 FIGURE 6: STAGES OF SOCIALISATION... 33 FIGURE 7: COMPONENTS OF THE CONGRUENCE MODEL... 37 FIGURE 8: COMPONENTS OF A MODEL... 42 FIGURE 9: BASIC OB MODEL... 45 FIGURE 10: TRANSFORMATION MODEL... 46 FIGURE 11: ORGANISATION DEVELOPMENT PROCESS... 48 FIGURE 12: ORGANISATIONAL DEVELOPMENT (OD) PROCESS... 49 FIGURE 13: OD CONSULTANT STYLES... 60 FIGURE 14: CHARACTERISTICS OF CHANGE... 68 FIGURE 15: THE PROCESS OF TRANSITION... 69 FIGURE 16: STRATEGIES FOR DEALING WITH CHANGE... 70 FIGURE 17: STAKEHOLDER ANALYSIS... 71

1. WELCOME TO REGENESYS Have a vision. Think big. Dream, persevere and your vision will become a reality. Awaken your potential knowing that everything you need is within you. Dr. Marko Saravanja At Regenesys we help individuals and organisations achieve their personal and organisational goals by enhancing their management and leadership potential. We approach education and development holistically, considering every interaction not only from an intellectual perspective but also in terms of emotion and spirituality. Our learning programmes are designed to transform and inspire your mind, heart and soul, and thus allow you to develop the positive values, attitudes and behaviours required for success. Having educated more than 100 000 students based in highly reputable local and international corporations across more than 160 countries since the inception of Regenesys in 1998, we are now one of the fastest growing and leading institutions of management and leadership development in the world. Regenesys ISO 9001:2008 accreditation bears testimony to our quality management systems meeting international standards. Regenesys is accredited with the Council on Higher Education. Our work is rooted in the realities of a rapidly changing world and we provide our clients with the knowledge, skills and values required for success in the 21st century. At Regenesys you will be treated with respect, care and professionalism. You will be taught by business experts, entrepreneurs and academics who are inspired by their passion for human development. You will be at a place where business and government leaders meet, network, share their experiences and knowledge, learn from each other and develop business relationships. You will have access to a campus in the heart of Sandton, with the tranquillity of a Zen garden, gym and meditation room. We encourage you to embark on a journey of personal development with Regenesys. We will help you to awaken your potential and to realise that everything you need to succeed is within you. We will be with you every step of the way. We will work hard with you and, at the end, celebrate your success with you. Areas of Expertise Regenesys Business School 5

2. INTRODUCTION Welcome to your module on Organisational Development (OD). The purpose of this module is to develop your understanding and use of the concepts of organisational development and the models and processes required. OD values collaborative and participative processes to achieve improved and sustainable performance. It is useful to begin by reflecting on the following principles by two leading authors on the subject (Robbins and Judge, 2008): Respect for people individuals are perceived as responsible, conscientious and caring and should be treated with dignity and respect. Trust and support the effective and healthy organisation is characterised by trust, authenticity, openness and a supportive climate. Power equalisation effective organisations de-emphasise hierarchical authority and control. Confrontation problems are not swept under the rug, they should be confronted openly. Participation the more the people who will be affected by the change are involved in the decisions surrounding that change, the more they will be committed to implementing those decisions. 2.1 TEACHING AND LEARNING METHODOLOGY Regenesys uses an interactive teaching and learning methodology that encourages self-reflection and promotes independent and critical thinking. Key to the approach utilised is an understanding of adult learning principles, which recognise the maturity and experience of participants, and the way that adult students need to learn. At the core of this is the integration of new knowledge and skills into existing knowledge structures, as well as the importance of seeing the relevance of all learning via immediate application in the workplace. Practical exercises are used to create a simulated management experience to ensure that the conceptual knowledge and practical skills acquired can be directly applied within the work environment of the participants. The activities may include scenarios, case studies, self-reflection, problem solving and planning tasks. Training manuals are developed to cover all essential aspects of the training comprehensively, in a user-friendly and interactive format. Our facilitators have extensive experience in management education, training and development. Please read through this Study Guide carefully, as it will influence your understanding of the subject matter and the successful planning and completion of your studies. Regenesys Business School 6

2.2 ALIGNING ORGANISATIONAL, TEAM AND INDIVIDUAL OBJECTIVES This module will draw on a model developed by Regenesys Management, demonstrating how the external environment, the levels of an organisation, the team and the components of an individual are interrelated in a dynamic and systemic way. The success of an individual depends on his or her self-awareness, knowledge, and ability to manage these interdependent forces, stakeholders and processes. The degree of synergy and alignment between the goals and objectives of the organisation, the team and the individual determines the success or failure of an organisation. It is, therefore, imperative that each organisation ensures that team and individual goals and objectives are aligned with the organisation s strategies (vision, mission, goals and objectives, etc); structure (organogram, decision-making structure, etc); systems (HR, finance, communication, administration, information, etc); culture (values, level of openness, democracy, caring, etc). An effective work environment should be characterised by the alignment of organisational systems, strategies, structures and culture, and by people who operate synergistically. REGENESYS INTEGRATED MANAGEMENT MODEL Regenesys Business School 7

3. ICONS USED IN THIS STUDY GUIDE Icons are included in the Study Guide to enhance its usability. Certain icons are used to indicate different important aspects in the Study Guide to help you to use it more effectively as a reference guide in future. The icons in this Study Guide should be interpreted as follows: Definition The definitions provide an academic perspective on given terminology. They are used to give students a frame of reference from which to define a term using their own words. Examples The example icon is used to indicate additional text that illustrates the content under discussion. This includes templates, simple calculations, problem solutions, etc. Video clip or presentation This icon indicates a hyperlink to a video clip or presentation on the subject matter for discussion. It is recommended that students follow the link and listen to or read the material it provides. Interesting source to consult The source icon is used to indicate text sources, from the internet or resource centre, which add to the content of the topic being discussed. In a nutshell This icon indicates a summary of the content of a section in the workbook and is used to emphasise an important issue. Calculations This icon indicates mathematical or linguistic formulae and calculations. Self-reflection Students complete the self-reflection activity in their own time. It requires students to think further about an issue raised in class or in the learning material. In certain instances students may be required to add their views to their assignments. Tasks The task icon indicates work activities that contact students must complete during class. These tasks will be discussed in class and reflected upon by students and facilitators. E-learning students can use these tasks simply to reinforce their knowledge. Note This icon indicates important information of which to take note. Regenesys Business School 8

4. STUDY MATERIAL FOR THE MODULE You have received material that includes: Study guide Recommended reading Assignment These resources provide you with a starting point from which to study the contents of this module. Additional resources to help you complete this module will be provided online via the link to this module. Guidance on how to access the material is provided in the Academic Handbook you received when you registered for this qualification. 5. RECOMMENDED RESOURCES A number of recommended resources have been identified to help you complete this module. 5.1 RECOMMENDED READING The following textbook is recommended and must be used to complete the module: Brown, D. 2013, Experiential Approach to Organisational Development, International Edition, 8 th ed., Pearson Education Limited. Please ensure you order or download your textbook before you start with the module. 5.2 RECOMMENDED ARTICLES Barner, R. 2006, 'Managing Complex Team Interventions', Team Performance Management, 12 (1/2), 44-54. Hubbell, L. 2004, 'Struggling with the Issue of Who the Client is in Organization Development Interventions', Leadership and Organization Development Journal, 25 (5), 399-410. Kotter, J. 1995, 'Leading Change. Why Transformation Efforts Fail', Harvard Business Review, 85 (1), 96-127. Regenesys Business School 9

Lurey, J.S., and Griffin, M. 2002, 'Action Research: The anchor of OD practice', OD Practitioner. 34 (3), 15-20, http://www.plusdelta.net/articles/action_research_od_practice.pdf (accessed 2 May 2014). Rowland, H. 2007, 'Organizational Development: The New Buzz Word', Strategic Direction, 23 (1), 3. Tee Suan Chin, S., Yoon Kin Tong, A., and Yoon Kin Tong, D. 2011, 'The Roles of Emotional Intelligence and Spiritual Intelligence at the Workplace', Journal of Human Resources Management Research, Vol. 2011. Vemić, J. 2007, 'Employee training and development and the learning organization', Economics and Organization, 4 (2), 209-216. http://facta.junis.ni.ac.rs/eao/eao200702/eao200702-13.pdf (accessed 2 May 2014). Additional articles that may prompt discussions and further assist you in completing this module will be saved on Regenesys Online under the relevant course. Please visit the site regularly to access these additional sources. 5.3 RECOMMENDED MULTIMEDIA Amabile, T., 2011, 'The Power of Progress' [video], http://www.youtube.com/watch?v=byct7xb2pc&list=pl017549c9d4822c59 (accessed 16 August 2013). Anderson, D. 2009, 'The Future of Organisation Development' [video], http://www.youtube.com/watch?v=0nmz1ux5xue (accessed 16 August 2013). Blanchard, K. 2008, 'Ken Blanchard change strategy' [video], http://www.youtube.com/watch?v=rmk6yy-zfie (accessed 10 September 2012). Denison, D., 2010, 'What is organisational culture? Why culture matters to your organisation' [video], http://www.youtube.com/watch?v=rd0kf3wd120 (accessed 16 August 2013). Regenesys Business School 10

5.4 ADDITIONAL SOURCES TO CONSULT As a higher education student, you are responsible for sourcing additional information that will assist you in completing this module successfully. Below is a list of sources that you can consult to obtain additional information on the topics to be discussed in this module: Emerald NetMBA: MindTools: Brunel Open Learning Archive: ProvenModels: 12manage.com: Alliance Online: The Free Management Library: The Charity Village: TEDx This is an online database containing journal articles that are relevant to your modules. Please refer to the attached Emerald manual to assist you to download required articles. Information on how to access Emerald is provided in your Academic Handbook. You will receive access to the database once you register as a student. This is one of several web sites that provide a selection of MBA constructs and discussion. It is one of the better of these addresses. http://www.netmba.com/ MindTools.com is a very useful source of ideas, constructs, management models, etc with even more useful commentary and description. http://www.mindtools.com/ A Brunel University support-site that provides an easily accessible library of ideas, concepts, constructs techniques, tools, models, etc. http://www.brunel.ac.uk/ ProvenModels' Digital Model Book presents digitalised management models categorised in a clear, consistent and standardised information structure to improve the usability and reusability of management literature. Management models are important generalisations of business situations when applied in context and are powerful tools for solving business issues. http://www.provenmodels.com/ This is a website on which one can access numerous models as well as global comments on the models and principles. This could also serve as a place for you to voice your ideas and get feedback from all over the world. http://www.12manage.com/ The Alliance for Non-profit Management's general introduction to strategic planning is built around 15 questions that cover just about all aspects in brief (click on Strategic Planning.) http://www.allianceonline.org/faqs.html The Free Management Library can be used to improve your organisation, and for your own personal, professional and organisational development. This is by far the most comprehensive overview of all aspects of strategic planning covering all stages of the process. http://www.managementhelp.org/np_progs/sp_mod/str_plan.htm A series of 12 very short articles by Ron Robinson, an independent Canadian consultant, appeared on Charity Village between November 2001 and October 2002. These articles are refreshing in that they do not advocate a one best way for all types of nonprofit organisations. They discuss various ways of approaching the strategic planning process. https://charityvillage.com/topics/management/planning/strategic-planning.aspx?page1424=2 The TEDx programme (Technology, Entertainment and Design) was created to help communities, organisations and individuals to spark conversation and connection through local TED-like experiences. It includes topics from science to business to global issues in more than 100 languages their mission is to spread ideas ("to make great ideas accessible and spark conversation"). https://www.ted.com/about/our-organization There are many more sites and articles available that can help you to successfully complete this module. You are encouraged to post the website addresses or URLs of any additional interesting sites that you come across on the Regenesys Learning Platform. In this way, you can assist other students to access the same wonderful information that you have discovered. Regenesys Business School 11

A word of caution not all information available on the Internet is necessarily of a high academic standard. It is therefore recommended that you always compare information that you obtain with that contained in accredited sources such as articles that were published in accredited journals. 6. LEARNING OUTCOMES Upon completing this module, participants should be able to: Select and apply appropriate knowledge and skills in evaluating organisational development models and processes; Design and propose organisational development and change management tools and processes across different business sectors; Evaluate the role organisational culture plays in organisational development; Understand and review critical success factors of organisational development; Critique current and preferred organisational development interventions; Understand and evaluate the intricate interface between organisational development strategies and business strategy; and Examine ethical issues in the identification, formulation and implementation of organisational development interventions. 7. SCOPE AND LEARNING GUIDANCE A number of topics will be covered to help you achieve the learning outcomes of this module. It is important to study each of these sections to ensure that you expand your knowledge in the subject and are able to complete the required assessments. The sections that will be dealt with include: Section 1 Section 2 Section 3 Understanding the Organisational Development Context Organisational Development Models and Processes Organisational and Development Interventions A more detailed framework of what is required for each of these topics follows under each section heading. A number of questions to probe discussion and guide you towards comprehension and insight are also provided. The timetable under each section heading provides guidance on the time to be spent to study each section. It is recommended that you follow the given timetable to ensure that you spend the appropriate amount of time on each section. Following the timetable will ensure that you have covered the required sections relevant to each assignment and have appropriate time to prepare for the examination. Regenesys Business School 12

7.1 UNDERSTANDING THE ORGANISATIONAL DEVELOPMENT CONTEXT Timeframe: Learning Outcomes: Recommended Book: Recommended Articles: Recommended Multimedia: Section Overview Minimum of 40 hours Evaluate the role organisational culture plays in organisational development; and Understand and evaluate the intricate interface between organisational development strategies and business strategy. Chapters 1 to 5 in Brown, D. 2013, Experiential Approach to Organisational Development, International Edition, 8 th ed., Pearson Education Limited. Lurey, J.S., and Griffin, M. 2002, 'Action Research: The anchor of OD practice', OD Practitioner. 34 (3), 15-20, http://www.plusdelta.net/articles/action_research_od_practice.pdf (accessed 2 May 2014). Anderson, D. 2009, The Future of Organisation Development [video], http://www.youtube.com/watch?v=0nmz1ux5xue (accessed 16 August 2013). Denison, D., 2010, What is organisational culture? Why culture matters to your organisation [video], http://www.youtube.com/watch?v=rd0kf3wd120 (accessed 16 August 2013). Tee Suan Chin, S., Yoon Kin Tong, A., and Yoon Kin Tong, D. 2011, 'The Roles of Emotional Intelligence and Spiritual Intelligence at the Workplace', Journal of Human Resources Management Research, Vol. 2011. In this opening section we explore the context within which Organisational Development (OD) takes place. Beginning with the history of OD, we move to a range of important considerations including: organisational behaviour, change, and culture. Keep in mind, the aim of this Study Guide is to complement the texts provided in your recommended textbook (Brown, 2013). The activities in this Study Guide, together with Brown's (2013) hands-on tasks are designed to provide you with a rich and comprehensive understanding of the topic and prepare you to complete your assignment and examination. Ensure you set aside sufficient time to engage meaningfully with these learning opportunities. 7.1.1 The History of Organisational Development Organisational Development (OD) is a field of Human Resource Management and has its foundations in the behavioural and social sciences with the intention of delivering sustainable organisational performance. The process has become synonymous with change or process improvement (generally in organisations that have a problem). Regenesys Business School 13

Chrysler Motor Company OD initiative In the early 1990s, Chrysler had terrible customer service and marketing, with a history of innovation, but at the present time, out-dated products. Its market share was falling, and its overhead and losses were high. Bob Lutz, then president, wanted Chrysler to become the technology and quality leader in automobiles a clearly global vision. A programme of cultural change known as 'Customer One' was built around it. The results were impressive: overhead was cut by almost $5 billion in under four years, the stock price quadrupled, and the company reversed its slide into bankruptcy and became profitable. A completely new and competitive line of cars and trucks has appeared each year since. They did this with the same people, but working in different ways. (Fox, 2013) The examples of OD below are not exhaustive, but they do point out the range of activities for which OD applies. Examples of OD situations (Adapted from McLean, 2005): To develop or enhance the organisation's mission statement (statement of purpose) or vision statement (what it wants to be) To help align functional structures in the organisation so they are working together for a common purpose To create a strategic plan (including goals) for how the organisation is going to make decisions about its future and achieving that future To manage conflict that exists among individuals, groups, functions, sites/branches, etc., when such conflicts disrupt the ability of the organisation to function in a healthy way To put in place policies, procedures and processes that will help improve operations on a continuous basis To create a collaborative environment that helps the organisation to be more effective and efficient and responsive To create reward systems that are compatible with the goals of the organisation To assess the working environment and identify strengths on which to build and areas in which change and improvement are needed To provide help and support for employees (coaching and mentoring) To assist in creating systems for providing feedback on individual and group performance Whilst many organisations have invested heavily in organisational development interventions (also known as transformational change) many have also failed to deliver performance in a sustainable way. More recently, OD practitioners have recognised that "every part of an organisation is integral to a system that relies on and impacts other elements of the internal and external environment in which the organisation operates," (Organisational Development Practitioners, 2012). This implies that OD is strongly linked to people and systems and it is argued that those who practice OD successfully have strong humanistic and democratic approaches to organisational change people and collaboration are key features of OD interventions (ibid, 2012). Regenesys Business School 14

Through retracing the steps of the 'Founding Fathers' of OD this connection between people and collaboration becomes more evident. OD founding fathers The following table summarises the evolvement of OD major contributors. TABLE 1: THE 'FATHERS' OF OD Kurt Lewin (1998-1947) From Lewin came the ideas of group dynamics and action research, which underpin the basic OD process. As early as World War II, Lewin experimented with the 3-step process of planning, taking action, and measuring results (this became the forerunner to OD). In the mid 1950s the concept of OD became popular Douglas McGregor and Richard Beckhard Rensis Likert Edgar Schein Bob Tannenbaum Whilst consulting together in the 1950s, the two coined the term 'Organisational Development' to describe an innovative bottom-up change effort that did not fit traditional consulting categories at that time. As a consequence of their early work and working with groups in organisations, the realisation that culture was an important factor in influencing group members (along with other developments in the behavioural sciences) combined to support the move to organisational development. Likert developed quantitative and pragmatic approaches to social problems and social measurements (e.g. the famous Likert scale). His research interests and collaborative efforts with other researchers focused on participative management (i.e. supportive relationships between organisational members, multiple overlapping structures with groups consisting of superiors and their subordinates, group problem solving by consensus, and overlapping memberships between groups by members or serve as 'linking pins'). Schein is one of the most well known theorists working with organisational culture and credited with inventing the term 'corporate culture'. His research shows how national, organisational and occupational cultures influence organisational performance. His models are used to analyse all forms of cultures and presumes that cultures can be explained and understood by looking at the core values and assumptions of a given culture (i.e. visible elements, espoused values and artefacts, behaviours, expected behaviours, dress codes, etc.). His humanist vision profoundly affected the field of organisational development starting from a deep-seated belief about the importance of personal consciousness and the capacities of people to grow themselves psychologically (i.e. interpersonal sensitivity). Tannenbaum's work was the forerunner of human capital as a corporate asset (e.g. utilising of group dynamics as an important pedagogy for promoting increased awareness of self and impact on others as essential to team play in the corporate environment). He argued that leadership effectiveness derives from awareness of one's own basic assumptions about human nature and the testing out and revision of those assumptions. (Adapted from Organisational Development Practitioners, 2012) Regenesys Business School 15

Task Questions 1. We have selected three conceptual areas from the above text, e.g. 'individual', 'team' and 'organisation'. Discuss the existence and potential linkages (cohesion) between these in your organisation using the following guidelines: a) Individuals (i.e. personal consciousness/awareness of self and impact on others, collaborative, humanistic and democratic) b) Teams (i.e. group problem solving by consensus) c) Organisational systems (i.e. participative management) 2. In your opinion, what is the link between 'sustainable performance' and the concepts discussed in 1.? 3. Do you agree that, "Every part of an organisation is integral to a system that relies on and impacts other elements of the internal and external environment in which the organisation operates"? Why/why not? It is useful at this point to reflect on Beckhard's assumptions about the functioning of organisations including (Beckhard in Organisational Development Practitioners, 2012): 1. The fundamental building blocks of an organisation are groups (teams), and therefore the basic units of change are groups and not individuals. 2. One of the most relevant change goals is the reduction of inappropriate competition between parts of the organisational and the development of more collaborative conditions. 3. Decision-making in a healthy organisation is located where the information sources are rather than in a particular role or level of hierarchy. 4. Organisations, sub units of the organisation, and individuals continuously manage their work against goals. 'Controls' are the interim measures, not the basis of managerial strategies. 5. One goal of a healthy organisation is to develop open communication, mutual trust, and confidence between and across levels. 6. People support what they help create. People affected by a change must be allowed active participation and a sense of ownership in the planning and conduct of the change. Beckhard's assumptions (ibid, 2012) give us an indication of some of the principles conducive to organisational change readiness. Task Questions Review the Beckhard's assumptions and then complete the following: 1. Discuss why Beckhard draws attention to these assumptions in the context of organisational development and change. 2. Reflect on organisational behaviour in your organisation against these assumptions. 3. What have you learned from Beckhard's assumptions? How does it make you think differently about organisational behaviour conducive to organisational development, i.e. sustained performance? Regenesys Business School 16

7.1.2 Defining Important Concepts Before we consider the definition of OD it is useful to reflect on the important concept of organisational behaviour (OB). Organisational Behaviour (OB) Organisational Behaviour (OB) incorporates research into the impact of individuals, groups, and structure (systems) on behaviour within organisations for the purpose of applying such knowledge toward improving organisational effectiveness. "Organisational Behaviour (OB) is the study of what people do in an organisation and how their behaviour affects the organisation's performance." (Robbins and Judge, 2013:44) Simply put, OB suggests the following key elements contribute to organisational behaviour: Organisation behaviour (OB) is a field of study. It studies three determinants of behaviour: o Individuals o Groups o Structure (systems) It applies the knowledge obtained to make the organisation more effective. OB is built on the behavioural science disciplines of psychology, social psychology, sociology, and anthropology. Consider Figure 1 below. Psychology focuses on the individual, in particular measuring and explaining human behaviour. Industrial and organisational psychologists have made a particularly strong contribution to OB (as listed under contributions in the figure below). Social psychology (a branch of psychology) blends concepts from both psychology and sociology to focus on people's influence on one another. Robbins and Judge (2013:48) point out that one major area of study is change how to implement it and how to reduce barriers to its acceptance. Sociology is the study of people in relation to their social environment or culture, most importantly, organisational culture. Anthropology is the study of societies a still broader focus. Anthropologists have helped us to understand differences in fundamental values, attitudes and behaviour between people from different national cultures. Regenesys Business School 17

Task Questions Using the diagram below (Figure 1) to guide you complete the following tasks: 1. Discuss why it is important to think about the three units of analysis: Individual Group Structure (systems) 2. What are the potential consequences of ignoring any one of these in the study of organisational behaviour? FIGURE 1: ORGANISATIONAL BEHAVIOUR (OB) DISCIPLINES (Adapted from Robbins and Judge, 2013:47) Regenesys Business School 18

Organisational Development (OD) It is useful to think of OD as a collection of change methods aimed at improving and sustaining organisational effectiveness and employee well being. As the fathers of OD found, together with modern writers (Robbins and Judge, 2013:621), OD methods value human and organisational growth, collaborative and participative processes and a spirit of enquiry. It is notable, that contemporary OD borrows heavily from the postmodernist philosophy of placing a heavy emphasis on the subjective ways in which people see their environments (particularly across generations and cultures in the workplace). The change manager (or agent) may take the lead in OD, however, each of us make sense of our world of work through different lenses. This means we need to collaborate to achieve shared understanding. Collaboration infers an underlying set of values: respect for other people's ideas, deemphasising hierarchical authority and control, open confrontation of problems (not swept under the rug), and active participation in decision making. OD is planned change designed and facilitated to improve organisational effectiveness, i.e. sustained performance. It is specifically interested in applying the knowledge of OB to the actual change process within the organisation (Robbins et al., 2009:490). The fundamental characteristics of OD programmes: Change a planned strategy bringing about organisational change Collaborative approach includes the involvement and participation of the organisational members most affected by the changes Performance emphasis on ways to improve performance Humanistic orientation relies on humanistic values about people while opening up opportunities for increased use of human potential Systems approach concerned with the interrelationship of divisions, departments, groups/teams, individuals as interdependent sub systems of the whole Scientific methods based on scientific approaches to increase organisational effectiveness (e.g. rigorous action research process) (Brown, 2013:3) Brown (2013:2) emphasise that OD comprises: "long-range efforts and programmes aimed at improving an organisation's abilities to survive by changing its problem-solving and renewal processes". This infers a solution-focused culture that requires planned effort. "Organisational development is an effort: (1) planned, (2) organisation-wide, (3) managed from the top, (4) to increase organisational effectiveness and health, through (5) planned interventions in the organisation's processes using behavioural science knowledge." (Beckhard in Brown, 2013:2) Regenesys Business School 19

Bennis (in Brown, 2013:4) emphasise three factors that underlie the emergence of OD: 1. The need for new organisational forms (organisations tend to adopt forms appropriate to a particular time; in today's world the rate of change is frequent in which case organisations must be more adaptive); 2. The focus on cultural change (every organisation forms its own culture; the only real way to change is to alter the organisational culture); and 3. The increase in social awareness (due to the changing social climate, tomorrow's employee will no longer accept autocratic styles of management and therefore greater social awareness is required; think specifically of Generation Y). Think critically about the three statements made by Brown (2013:4). Can you identify the need for these three factors in your organisation: New organisational form? Cultural change? Increased social awareness? What OD is not (Brown, 2013:2-3): OD is not a micro approach to change (management development is aimed at changing individual behaviour whereas OD is focused on the macro goal of developing organisationwide improvement in managerial style); OD is not any single technique (OD uses multiple techniques, eg total quality management and performance management); OD does not include random or ad hoc changes (OD uses a system-wide diagnosis of problems that result in change efforts); and OD is not exclusively aimed at raising morale or attitudes (OD is aimed at overall health and effectiveness). Brown's (2013) approach to OD Brown (2013:12) recommends a 5-stage approach to OD as shown in Figure 2 below. Within this process the emphasis is placed on "a combination of individual, team, and organisational relationships" (Ibid). As with other authors and documented organisational practice, organisational development programmes use the action research model. "Action research involves collecting information about the organisation, feeding it back to the client system, and developing and implementing action programmes to improve system performance." (Brown, 2013:13) We will consider this research model in more detail later in this Study Guide. Regenesys Business School 20

FIGURE 2: ORGANISATIONAL DEVELOPMENT'S FIVE STAGES Stage 1 Anticipate need for change Stage 5 Self-renewal, monitor and stabilise Stage 2 Develop the practitionerclient relationship Stage 4 Action plans, strategies and techniques Stage 3 The Diagnostic phase (Brown, 2013:13) Brown (2013-2014) describes the stages as follows: Stage 1 Anticipate a need for change leadership recognises the impending need for change since the organisation is somehow entering into a state of disequilibrium or needs improvement. Disequilibrium may be a consequence of several things including the result of growth or decline; or from competitive, technological, legal, or social changes. Leadership is responsible for 'sensing' this need for change. Stage 2 Develop the practitioner-client relationship the practitioner (internal or external to the organisation) or practitioners are identified and the roles clarified. Brown (2013:13) provides the example of one organisation where OD started at the vice president level, and by using internal OD practitioners the OD programme was gradually expanded to include line managers and workers. OD practitioners may also be external to the organisation. Stage 3 The diagnostic process once the roles are clarified the organisation and OD practitioner start gathering data about the system for diagnosis. Key to success is the depth of problem analysis (root causes). As Brown (2013:14) points out: "A weak, inaccurate, or faulty diagnosis can lead to a costly and ineffective change programme." The diagnosis provides the basis for selecting effective change strategies and techniques. Stage 4 Action plans, strategies and techniques here interventions, activities, or programmes aimed at resolving problems and increasing organisational effectiveness are determined. OD techniques might include total quality management, job design, role analysis, goal setting, team building, and intergroup development. This is essentially the implementation stage and consequently one of the longest stages. Regenesys Business School 21

Stage 5 Self-renewal, monitor and stabilise in this stage the programme has been implemented and now it is time to monitor results and stabilise the desired change. Perhaps one of the most difficult stages since it is here that the results of the preceding efforts become evident. Further, means must be devised to make sure the new behaviours are stabilised and internalised and hence the system must be able to sustain itself. Task Questions 1. Reflect critically on the following statement by Brown (2013:15): "The most important lesson managers need to learn is that there are only two kinds of companies those that are changing, and those that are going out of business." Discuss why sensing change is a critical competence of leadership. 2. Using examples from your workplace and the following statement, discuss what OD is not: "OD is focused on the macro goal of developing organisation-wide improvement". Your recommended textbook is structured around the model described above. To understand and appreciate the significance of each of the stages you are encouraged to read Brown's (2013) work critically and synthesise key learning points as they apply to each stage. Some students might find it useful to place this model on a single sheet and use it as the starting point of a mind map. Using an integrated approach to OD As with all our modules, we do not prescribe a single view of learning. Harvey and Brown (in Bagraim, Cunningham, Potgieter, and Viedge, 2007:384) distinguish between three approaches to OD as shown in Figure 3 below: structural, technical and behavioural. Together these combine to form an integrated approach to OD. It is argued that if you make changes in any one of the approaches this impacts on the other approaches, which in turn impacts on organisational effectiveness and efficiency, sustained performance, customer satisfaction and employee satisfaction. Notably, top management, an OD consultant, OD cross-functional task team/s and all other members of the organisation drive the OD process. Regenesys Business School 22

FIGURE 3: AN INTEGRATED APPROACH TO OD (Adapted from Bagraim, Cunningham, Potgieter, and Viedge, 2007:385) French and Bell (1999:25) emphasise OD is aligned to the organisation's vision, which infers strategic purpose: Organizational development is a long-term effort, led and supported by top management, to improve an organization s visioning, empowerment, learning, and problem-solving processes, through an ongoing, collaborative management of organization culture with special emphasis on the culture of intact work teams and other team configurations using the consultant-facilitator role and the theory and technology of applied behavioural science, including action research. This definition emphasises that OD takes time a few years in most cases. Top management must lead and champion the change process initiated by the analysis of the organisational behaviour. Visioning forms part of this definition and draws our attention to the process through which the organisation creates a shared understanding of the organisation s products and/or services, how it will deliver these, and what members of the organisation can expect from each other. The emphasis on empowerment is a reminder to consult and engage with a wide range of people in creating and delivering on the strategy. Learning processes are those processes that enhance learning in an organisation, especially through interacting, listening and self-examination. OD is also about problem solving in that one goal of OD is to help organisations and their people to solve their own problems. The definition emphasises culture as a key element in organisations that requires management, which should be collaboratively managed. Regenesys Business School 23

Changing processes are often a starting point for OD changing how people do things but unless it is backed up by the cultural change to support and institutionalise the process changes, the change will not be permanent. French and Bell (1999) also recognise that work teams are central to accomplishing organisational work they are the building blocks of organisations. OD can be performed by internal change managers or change agents/od leaders, but French and Bell s definition conveys their belief that leaders benefit from external professional assistance in planning and implementing OD. The definition includes homage to the behavioural sciences as discussed in the section above, affirming that OD is an applied discipline, and a participative model of action research. Refer to the figure below (Figure 4). Action research involves three steps (McGinty, 2011): 1. Unfreezing faced with a problem, the individual, group or organisation becomes aware of a need to change. 2. Changing The situation is diagnosed and new models of behaviour are explored and tested and where appropriate the process is repeated by returning to the planning stage (feedback loop A). 3. Refreezing Application of the new behaviour is evaluated and where appropriate the process is repeated either by returning to the planning stage (feedback loop C) or the action stage (feedback loop B). Therefore, we can say that action research provides for a cyclical process of change that involves the 'client system' in a diagnostic, active learning, problem finding, and problem-solving process. It is unlike standard research that identifies the problem and culminates in a report on which decisions are based rather it is a 'living and breathing' form of research that sets in motion a long-range, cyclical, self-correcting mechanism for maintaining and enhancing effectiveness of the 'client system' (McGinty, 2011). FIGURE 4: MODEL OF ACTION RESEARCH PROCESS (McGinty, 2011) Regenesys Business School 24

Read the article below for a detailed description of action research used in OD practice. Lurey, J.S., and Griffin, M. 2002, 'Action Research: The anchor of OD practice', OD Practitioner. 34 (3), 15-20, http://www.plusdelta.net/articles/action_research_od_practice.pdf (accessed 2 May 2014). In summary, distinguishing features of OD include: 1. OD focuses on culture and processes. 2. OD encourages collaboration between leaders and members in managing culture and processes. 3. Teams are important for OD activities. 4. OD focuses on the human and social side of the organisation but also, in so doing, has an impact on and considers the technological and structural sides. 5. Participation and involvement at all levels in problem solving and decision-making are hallmarks of OD. 6. OD focuses on total system change. 7. OD practitioners are facilitators, collaborators, and co-learners. 8. An overarching goal of OD is for the 'client system' to solve its problems on its own. 9. OD relies on an action research model. 10. OD takes a developmental view it seeks the betterment of individuals and the organisation. Task Questions Identify initiatives in your organisation that demonstrate similar features to the ten points given above. What is the Difference between OD and Change Management? Whilst we have alluded to OD being a collection of change management strategies, some authors prefer to see change 'management' as playing a part in the overall process. In this case, it is useful to place change management within the context of OD using the diagram below (Figure 5). As the loop suggests, change management follows leadership initiatives, bottom diagnosis, situation awareness, and the OD interventions. Regenesys Business School 25

FIGURE 5: THE OD LOOP (Author Unknown, 2013) Task Questions Discuss the following statements (Brown, 2013:13): 1. OD uses change management principles to effect the changes required. 2. The primary difference between OD and other behavioural science techniques is the emphasis upon viewing the organisation as a total system of interacting and interrelated elements. OD is the application of an organisation-wide approach to the functional, structural, technical, and personal relationships in organisations of which change management is a part. Value-driven Behaviour Organisations are essentially a network of relationships. The way people work with each other, as driven by their values, is critical to organisational effectiveness (Bolsmann, Rugunanan, and Routledge, 2003:44). The consequences of not evaluating values during an OD intervention are described as follows: failing to take values into account leaves OD as a list of intervention techniques to be studied without understanding the reasons why those interventions were developed or when the practitioner should apply them" (Anderson, 2012:38) Regenesys Business School 26

Values allow OD practitioners to (Anderson, 2012:38-39): Guide choice on how to proceed Identify and enhance the vision of the organisation and drive the intervention further than individual interventions Extend the intervention beyond change management Assist in the promotion of communication and clarifying positions Inform evaluation Some values driving OD are (Anderson, 2012:45): Participation, involvement and empowerment The importance of groups and teams Growth, development and learning Valuing the individual holistically Communication and collaboration Authenticity, openness and trust OD, a value-driven discipline, underlines the importance of aligning OD interventions to the strategy of the organisation (which underlies the organisational values). OD interventions need to be linked to organisational values to ensure organisational growth and therefore organisational strategic success. The fact that most textbooks talk about OD propose that it be guided by a set of values which leads us to consider that areas of research and practice are values-laden. They are not free of ideological positions about humanness or principles of what is right or good. Donald Anderson provides insight into the need for OD practitioners in the clip below. Visit the website below and listen to his views concerning the future of organisational development: Anderson, D. 2009, 'The Future of Organisation Development', http://www.youtube.com/watch?v=0nmz1ux5xue (accessed 16 August 2013). Task Questions 1. Do you agree with the way in which 'change' is described in the video clip? 2. How much change is involved in your job? 3. What is the future of OD in your organisation? Regenesys Business School 27