Organization Development and Change

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Organization Development and Change

• MGMT 550
• Spring, 2001

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Agenda

• Why Change?
• Organization Development and Change
• Personal Change
• Organization Change
• Application
• Debate Must pain precede organization change?

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Why do Organizations Change?
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Economic and Social Forces Driving the Need for
Major Change and Interventions in Organizations

• Technological
• Change
• Faster and better
• communication
• Faster and better
• transportation
• More information
• networks connecting
• people globally

• International
• Economic
• Integration
• Fewer tariffs (GATT)
• Currencies linked via
• floating exchange rates
• More global capital flows

• Maturation of
• Markets in
• Developed
• Countries
• Slower domestic
• growth
• More aggressive
• exporters
• More deregulation

• Fall of Communist
• and Socialist Regimes
• More countries linked to the
• capitalist system
• More privatization

The Globalization of Markets and Competition

• More Hazards
• More competition
• Increased speed

• More Opportunities
• Bigger markets
• Fewer barriers

More Large-Scale Change
in Organizations To avoid hazards and/or
capitalize on opportunities, firms must become
stronger competitors. Typical transformation
methods include -Reengineering -Mer
gers and acquisitions
-Restructuring -Strategic change
-Quality programs -Cultural change
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Organization Development and Strategy

• Planned long-term, system-wide changes and
  interventions that enable strategies to be
  developed and implemented.

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Change Targets

• Organizational goals and objectives
• Organizational structure
• Human resources
• Technological improvements
• Job design
• Budgets

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Change Impacts

• Cultural
• Work methods
• Motivation and performance
• Psychological/emotional issues
• Social relationships

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Change and Transition
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Lewins Change Model
Unfreeze
Change
Refreeze
Decrease strength of old values, attitudes,
behaviorsdisconfirming data
Institutionalize and stabilizereinforce the
change through new norms and operating procedures
Facilitation and training to minimize resistance
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Strategic Change Model
Hitchin and Worley
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What Affects Organizational Transition and
Transformation?

• Absorption rate
• Transition period
• Alignment

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OD - The Softer Side of Business

• Personal capability and development
• Group and team capability development
• Interpersonal and group relations
• Organization climate and capability
• Structural development and alignment
• Communication processes and effectiveness
• Collaboration

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OD Approaches

• Data collection, assessment, analysis, and
  feedback
• Training and education using multiple modalities
  (experiential, case, classroom, et al.)
• Task analysis
• Process analysis
• Gap analysis
• Role play/simulation
• Empowerment through participation

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OD and Organization Health

• Openness
• Problem-solving atmosphere
• Trust
• Participation
• Self-control
• Self-direction
• Ability to deal with change and resistance to
  change

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Resistance to Change???!!!
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Implications of Change

• We must
• Understand change
• Prepare for the constancy of change
• Learn how to manage transitions now and on an
  ongoing basis

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Change and Transition

• Change
• A situational event
• External
• Often starts with a
• new beginning

• Transition
• A process over time
• Internal
• Must start with an
• ending

Unless transition management occurs, change will
not work.
William Bridges
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What are the reactions to change?
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Reactions to Change
Endings
New Beginnings
Denial
Energy
Anger
Enthusiasm
Shock
Hope
Fear
Anxiety
Frustration
Impatience
Depression
Acceptance
Chaos
Confusion
Skepticism
Relief
Creativity
Stress
Approach-Avoidance
Neutral Zone
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What do people need in times of change?
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What People Need

• During each phase of transition, people need
• Support
• Information
• Structure
• Why do they need these things?

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What are the phases of transition?
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3 Phases of Transition
Whether you perceive the change as positive or
negative, you will always experience a
transition.

• Phase 1
• Endings
• Loss
• Grieving
• Letting go

• Phase 2
• Neutral Zone
• Temporary state
• between old and new
• Exploration
• Creativity and chaos

• Phase 3
• New Beginnings
• Energy and
• uncertainty
• New
• opportunities
• Renewal and
• realignment

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A View of Endings

• Endings
• Characteristics
• Loss of
• Identity
• Control
• Meaning
• Belonging
• Turf
• Relationships
• Structure

• Endings Reactions
• Denial
• Anger
• Shock

• Endings Goal
• Letting go of what youre losing

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A View of the Neutral Zone

• Neutral Zone Reactions
• Fear
• Anger
• Frustration
• Confusion
• Approach-Avoidance
• Creativity
• Skepticism
• Acceptance
• Impatience
• Hope

• Neutral Zone Characteristics
• Resistance to change and
• the unknown
• Exploration of new opportunities

• Neutral Zone Goals
• Managing fear
• Beginning to explore
• Trying out future possibilities

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A View of New Beginnings

• New Beginnings Reactions
• Energy
• Anxiety
• Enthusiasm

• New Beginnings Characteristics
• Commitment
• Actions

• New Beginnings Goal
• Achieve the new beginning

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How important is productivity, employee
satisfaction and organization climate?
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OD Emphases

• Diagnosing the needs of a system
• Planning intervention
• Gaining managerial sponsorship
• Assessing sociopolitical and technical dimensions

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Large Scale Change
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Beckhard and Harris
Why Change?
Define Desired Future State
Describe Present State
Getting From Here to There Assess the Present in
Terms of the Future to Determine the Work to be
Done
Manage During the Transition State
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Process for Creating Change

• Establish a sense of urgency
• Create a coalition
• Develop a vision and strategy
• Communicate the change vision
• Encourage broad-based action
• Generate short-term wins
• Keep track of gains and create more change
• Embed new approaches into the culture

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Establish a Sense of Urgency

• Examine the market and competitive realities
• Identify and discuss crises, potential crises and
  major opportunities

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Create a Coalition

• Put together a group with enough power to lead
  the change
• Get the group to work together as a team

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Develop a Vision and Strategy

• Create a vision to help direct the change effort
• Develop strategies for achieving that vision

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Communicate the Vision

• Use every vehicle possible to constantly
  communicate the new vision and strategies
• Have coalition model the behavior expected of
  others

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Encourage Broad-Based Action

• Get rid of obstacles
• Change systems or structures that undermine the
  change vision
• Promote risk taking and nontraditional ideas,
  activities, and actions

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Generate Short-Term Wins

• Plan for visible improvements in performance, or
  wins
• Create those wins
• Visibly recognize and reward people who made the
  wins possible

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Keep Track of Gains and Create More Change

• Use increased credibility to change all systems,
  structures, and policies that dont fit together
  and dont fit the transformation vision
• Hire, promote, and develop people who can
  implement the change vision
• Reinvigorate the process with new projects,
  themes, and change agents

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Embed New Approaches into the Culture

• Create better performance through customer- and
  productivity-oriented behavior, more and better
  leadership, and more effective management
• Articulate the connections between new behaviors
  and organizational success
• Develop means to ensure leadership development
  and succession