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Lecture slides and notes Organization Development - Master SHOP UU
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Organization DevelopmentMonitoring and changing culture and behavior
Notes
Lecture 1
Defining OD, Culture, and Team Design
Aim
“The overall aim of this course is to teach students to diagnose organizational cultures and to
develop theoretically sound and evidence-based advice on interventions to improve these
cultures and contribute to organization development”
Encourage you to use theories from social, organisational psychology. Diagnose, think about
ways you can intervene.
Defining OD
• OD is a planned process of change in an organization’s culture through the utilization
of behavioral science, research and theory – Warner Burke
• OD is a long-range effort to improve an organization’s problem-solving capabilities
and ability to cope with change in its external environment, with the help of external
or internal behavioral scientist consultants (change agents) – Wendell French
• OD is a system-wide application and transfer of behavioral science knowledge to the
planned development, improvement and reinforcement of the strategies, structures,
cultures and processes that lead to organisational effectiveness – Thomas
Cummings
C&W chapter 1
Key ingredients: planned, about culture, behavioral science perspective, environment,
optimizing organisational effectiveness.
You are doing OD if you are …
1. Bringing planned change to align the structure, culture, strategy, and individual jobs
of people in an entire organisation (not accidental). Holistic approach.
2. Applying behavioral science knowledge to diagnose, to facilitate and to evaluate
organisational change (evidence-based).
3. Analyzing the effectiveness of an organisation and how to improve that by involving
members of the organisation (interviews, focus groups): gather evidence on the
change needed and the course to take (not intuitive). Go into the organisation to
collect data in different ways.
4. Supporting increase of organisational effectiveness on all levels (high quality and
productivity, financial performance, optimizing teamwork, improving well-
being/health of workers). On organizational level, intermediate level, individual level.
5. Facilitating organizations’ response to change in a flexible, adaptive and often
participative way. People from the organisation are always part of the change.
6. Developing sustainable change that continues (not tactics or short-term). If
professionals leave after the change, the organisation should know how to keep the
change without your help.
C&W chapter 1
, Why do organisations need continuous development?
Globalization
Technological changes
Changing markets and consumer demands
Competitors
Climate change
Diversification
Environment
Environment that puts pressure on an organization to keeps on changing.
14 General and task (specific) environment
General and task (specific) environment
C&W chapter 5
C&W Chapter 5
General environment: global, etc. orange circle. Organizations feel this in a similar manner.
Influences all types of organizations.
Specific environment: to specific organizations, sectors (customers, suppliers, competitors,
public pressure groups). Some organizations need to respond faster than others (e.g., to oil
prices)
Important trends in the general environment
• Economic
o Globalization: as an organization you can be in consumer markets all over the7
world. For example, war in Ukraine makes it difficult.
• Demographic
o Diversification of labour force: lots of immigration, very clear how difficult our
political systems finds it to deal with, to keep people on the job market.
• Technological
o IT revolution.
o Increased automation: some people do not longer have to do their job,
working with robots.
• Political/legal
, 88% of the Fortune 500 firms that existed in 1955 are gone..
o Tightened
Three companies that (financial)
failed to supervision.
adapt & why
o Governmental changes (taxes, regulations).
• Sociocultural
o Increased focus on Corporate Social Responsibility (people, planet, profit):
´ Kodak (1889-2012) ´ Did not anticipate digital camera
idea that companies are responsible for the wellbeing of the people and the
´ “Success trap”: exploiting what has been
planet, while also still be
historically able to make a profit.
working
´ outperformed by competitors such as Canon
“It is not the strongest of the species that survives, nor the most intelligent, but the one most
´responsive to change.” – Charles Darwin, 1809
Toys R us (1948-2017)
´ Missed opportunity to develop e-commerce
Survival of the organizations.
´ Only kept physical stores (outperformed by
online companies like Amazon)
88% of the Fortune 500 firms that existed in 1955 are gone…
Three companies that failed to adapt & why
´ General Motors (1908-2009) ´ Activists started pointing out that Hummer was
• Kodak (1889-2012) the worst car to drive environmentally.
o Did not anticipate digitalalternatives
´ Eco-friendly camera were brought to market
o “Success trap”: (Outperformed
exploiting what by Tesla)
has been historically working. Sticking to a
product, not adapting.
17
o Outperformed by competitors such as Canon
• Toys R us (1948-2017)
o Missed opportunity to develop e-commerce
o Only kept physical stores (outperformed by online companies like Amazon)
• General Motors (1908-2009)
o Activists started pointing out that Hummer was the worst car to drive
environmentally.
18 o Types ofalternatives
Eco-friendly change were brought to market (outperformed by Tesla)
Types of change
Incremental Fundamental
1. Magnitude of change
Overorganized Underorganised
“loosen up” 2. Degree of organisation “tighten up”
Local 3. Setting of the change Global
C&W Chapter 2
18 1. Magnitude of change: incremental (only small changes that you need). Fundamental:
changes where you get your role materials, employers, specialists. Major change that
requires an organization to fundamentally think about a new strategy, new consumer
markets, structure, etc. totally different business.
2. Degree of organisation. Overorganized: very bureaucratic, where people become
emphatic, don’t come up with own ideas. Or totally underorganized organisation,9 not
organized.
, 3. Setting of the change: local or global. Global: much more difficult, different cultural
habits (national culture, politics).
Models of Planned Change
Models of Planned Change
Commonalities
• Planned change has phases
• Three phases are similar (diagnose,
action, close)
• Application of behavioral science
• Involvement of organisation is
neccecary to achieve change
Differences
• Lewin’s model is holistic/simplistic;
Action & Postive more concrete
implement OD activities
• Lewin & Action: OD consultant is
most involved in the diagnosis
/evaluation part, less so in the
change process itself; Positive: OD
consultant and organisation are
‘co-learners’
• Lewin & Action: Focus on ‘fix
problems’; Positive: ‘leverage
strengths’
• Lewin’s Planned Change Model: as a professional, you can come into an organization,
19 study groups, give feedback. Unfreezing -> movement -> refreezing. Good model, but
overly simplistic. Focused on problems.
• Action Research Model: whole participative element came into play. Cycles of
analyzing, discussing with clients. Focused on problems.
• Positive Model: rather than fixing problems, thinking about best practices. What is
going really well, what is a dream for future organization?
Commonalities:
- Planned change has phases
- Three phases are similar (diagnose, action, close)
- Application of behavioral science
Model of Planned change
- Involvement of organisation is necessary to achieve change
20
Differences
- Lewin’s model is holistic/simplistic; Action & Positive more concrete implement OD
activities
- Lewin & Action: OD consultant is most involved in the diagnosis/evaluation part, less
so in the change process itself; Positive: OD consultant and organisation are ‘co-
learners’
- Lewin & Action: focus on ‘fix problems’; Positive: ‘leverage strengths’
Model of Planned Change
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