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Summary Organizational Development and Change
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SAMENVATTING ORGANIZATION DEVELOPMENT & CHANGE – CUMMINGS ANDWORLEY 2008
CHAPTER 1 GENERAL INTRODUCTION TO ORGANIZATION DEVELOPMENT
OD to help organizations build their capacity to change and to achieve greater
effectiveness including increased financial performance, customer satisfaction,
and organization member engagement. OD differs from other planned change
efforts, such as project management or innovation, because the focus is on
building the organization’s ability to assess its current functioning and to achieve
its goals. OD is oriented to improving the total system – the organization and its
parts in context of the larger environment that affects them.
Organization development defined: different definitions (pag. 2).
- Burk: (focus on culture)
- French (OD’s longterm interest and use of consultants)
- Beckhard and Beer (process of OD)
- Worley and Feyerherm suggested that for a process to be called OD, 1) it
must focus on or result in the change of some aspect of the organizational
system, 2) there must be learning or the transfer of knowledge or skill to
the client system, and 3) there must be evidence of improvement in or an
intention to improve the effectiveness of the client system.
Overall Organization development is a systemwide application and transfer of
behavioral science knowledge to the planned development, improvement and
reinforcement of strategies, structures, and processes that lead to organization
effectiveness.
Different than other approaches to organizational change and improvement (e.g.
management consulting (financial performance), operations management
(productivity focus):
1. OD applies to changes n the strategy, structure, and or processes of an
entire system, such as an organization, single plant, department, individual
or job.
2. OD is based on the application and transfer of behavioral science
knowledge and practice, including microconcepts ( e.g. leadership, group
dynamics, work design) and macroapproaches (e.g. strategy, organization
design, international relations)
3. OD is concerned with managing planned change, but not in the formal
sense typically associated with management consulting or project
management, which tends to comprise programmatic and expert-driven
approaches to change. OD is more an adaptive process for planning and
implementing change rather than a blueprint for how things should be
done.
4. OD involves the design, implementation, and the subsequent
reinforcement of change. it moves beyond initial efforts to implement a
change program to a longer-term concern for appropriately
institutionalizing new activities (change) within the organization.
5. OD is oriented to improving organizational effectiveness. An effective
organization is adaptable (able to solve own problems and focus attention
and resource on achieving key goals; helps organization members gain
skills and knowledge necessary to conduct these activities by involving
them in the change process), high financial and technical performance (OD
helps in leveraging social science practices to lower costs, improve
products and services, increase productivity), satisfied and loyal customer
or external stakeholders and an engaged, satisfied and learning workforce
(respond to external needs; attract and motivate employees).
1
,OD can be distinguished from change management and organizational change:
OD and change management both address the effective implementation of
planned change and want to produce organization improvements. They differ, in
underlying value orientation
- OD: values of human potential, participation and development in addition
to performance and competitive advantage.
- Change management: more narrowly on values of cost, quality, and
schedule.
OD transfer of knowledge and skill so that the system is more able to manage
change in future, change management does not necessarily require the transfer
of these skills.
All OD involves change management, but change management may not involve
OD.
Similarly, organizational change is a broader concept than OD. OD can be applied
to managing organizational change, primarily concerned with managing change
that knowledge and skills are transferred to build the organization’s capability to
achieve goals and solve problems. Organizational change can apply to any kind
of change.
The growth and relevance of organization development: OD helps
organizations to create effective responses to changes, and in many cases to
proactively influence the strategic direction of the firm.
Three major trends are shaping change in organizations:
- Globalization: a new global economy with opportunities and threats (e.g.
trade unions, ethical and legal considerations, spread of diseases, etc.)
- Information technology: changing how work is performed, how knowledge
is used and how the cost of doing business is calculated (e.g. move
information easily and inexpensively).
- Managerial innovation: has responded to the globalization and information
technology rends and has accelerated their impact on organizations. New
forms of organization with new ways of thinking about how to manufacture
goods and deliver series.
Growing number of organizations are undertaking the kinds of organizational
changes needed to survive and prosper in today’s environment (e.g. innovating
and managing change; responsive). OD key role in helping organizations change
themselves. It helps organizations assess themselves and their environments and
revitalize and rebuild their strategies, structures, and processes.
OD has been more responsive and practically relevant to organizations’ needs to
operate effectively in highly complex and changing world. Demand for OD
professionals is high. OD can help the whole organization be more flexible,
adaptable and effective (important for managers).
A short history of organization development: OD emerged from five major
background or stems:
Laboratory training background: growth of the National Training Laboratories
(NTL) and development of training groups (sensitivity training or T-groups): in
which participants learn from their own interactions and evolving group
processes about such issues as interpersonal relations, personal growth,
leadership and group dynamics (Lewin 1946 - Tgroups: 1) feedback about group
interaction was a rich learning experience; 2) process of group building had
potential for learning and could be transferred to back-home situations – 1950s –
regional laboratories; expansion of summer programs to year-round sessions;
expansion of Tgroup into business and industry). T-group method as OD, over
2
, time declined as OD intervention, but practical aspects of Tgroup know as team
building (most common and institutionalized forms of OD today).
Action research and survey feedback background: social scientists applying
research to managing change (1940s: organization members were able to use
research to guide action and change, and social scientists were able to study that
process to derive new knowledge that could be used elsewhere). Participative
management: getting employees involved in planning and managing change.
Survey feedback (Likert and Mann): positive (org) change in departments
receiving feedback.
Kurt Lewin: researcher in group dynamics and social change, instrumental in
development of T-groups, survey feedback, and action research. His work led to
OD and still serves as major source of its concepts and methods.
Normative background: human relations approach represented a ‘one best way’
to design and operate / manage organizations. Rensis Likert’s participative
management program; characterized organizations as having one of four types of
management systems:
1) exploitive authoritative systems (exhibit an autocratic, top-down approach to
leadership and control; employee motivation based on punishment and
occasional rewards),
2) benevolent authoritative systems (similar to system 1, but management is
more paternalistic; employees are allowed a little more interaction,
communication, and decision making but within boundaries defined by
management)
3) consultative system (increase employee interaction, communication, and
decision making, but management makes final decisions. Productivity is good;
employees are moderately satisfied).
4) participative group systems (almost opposite of system 1: group methods of
decision making and supervision. Foster high degrees of member involvement
and participation; e.g. in decision making, setting goals , improve methods,
appraise results. High productivity, quality, members satisfaction.
- using a survey-feedback process to apply the systems to organizations, 1) by
asking members their opinions about both the present and ideal conditions of six
organizational features: leadership, motivation, communications, decisions, goals
and control, and 2) examine discrepancy between present and ideal situation.
Still used in organizations today.
Blake and Mouton’s OD: two foremost barriers to excellence are planning and
communications Managerial Grid to examine leadership style. Objectives of the
Grid OD are to improve planning by developing a strategy for organizational
excellence based on clear logic, and to help managers gain the necessary
knowledge and skills to supervise effectively. Still used in organizations today.
Productivity and quality-of-work-life background: First phase: EU 1950s USA
1960s, QWL programs involved joint participation by unions and management in
the design of work and resulted in work designs (also self-managing work groups)
giving employees high levels of discretion, task variety, and feedback about
results. QWL focused primarily on personal consequences of work experience
and how to improve work to satisfy personal needs. QWL as specific techniques
and approaches used for improving work (job enrichment, self-managed teams,
labor-management committees).
Second phase: 1979, because of the growing international competition (e.g.
cheap labor costs and high quality of foreign-made goods). QWL programs
expanded beyond initial focus on work design to include other features of the
workplace that can affect employee productivity and satisfaction, such as reward
systems, work flows, management systems and physical work environment –
organizational efficiency (quality circles within many companies). Today, this
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