Organizational Development and Change Management

Organizational Development and Change Management Models and Tools

Adnan Shabbir Mirza

Friday, June 21, 2013

OD and Change Management

Organizational Development and Change Management

Introduction
Development is the process of progress and positive change. As in this ever changing business world nothing is stationary, need of change arises due to the failure or antiquation of some process or system. Change is a cord that goes through any kind of organization, no matter what is size, industry or age of the business. Our world is changing so rapidly so its important for organizations to respond rapidly to changes. The organizations that cope well with change flourish and thrive but those who fail to do so will have to struggle. Due to everyday change in technology organizations need to be proactive to change and keep them developing. Commonly organizational development (OD) is an individual based change process, where some intervention with individuals is used for the organizational change. So it is generally assumed that OD is the process of change that must come from bottom of organizational hierarchy. Change is generally viewed as a base of OD by people, regardless of planned or unplanned change. However OD is a very broad and powerful process that it can be used in many fields and situations. So first of all we need to understand the term organizational development. Bennis (1969) defined OD as reaction of change and declared it as educational strategy to update the structure and values of organization. Beckhard (1969) defined OD as an effort that is; planned, organization-wide and managed from the top to increase organization effectiveness and health through planned interventions in the organizations processes, using behavioral science knowledge. However this definition is criticized by many other authors and researchers in the field, saying that the business situation is so complex now that planning is very hard thing to do and change cannot be planned in this situation that change just forces itself from many directions. Schein (1980) presented the cultural iceberg in which he showed that change in organization can occur at many lavels. According to iceburg of organizational culture, behaviors, norms, and artifacts are visible to everyone just like the tip of an iceburg, while underling core believes, values and unconscious assupmtions are not perceptible and so are very hard to change. Furthermore he also describe organizational culture as a challege for OD practitioners. According to him OD practitioner have to peel off the layres of culture just like an onion to get to the bottom of organizational norms and believes. Organization development is any process or activity, based on the behavioral sciences, that, either initially or over the long term, has the potential to develop in an organizational setting enhanced knowledge, expertise, productivity, satisfaction, income, interpersonal relationships,

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OD and Change Management

and other desired outcomes, whether for personal or group/team gain, or for the benefit of an organization, community, nation, region, or, ultimately, the whole of humanity (McLean, 2006). Now that we have the definition of OD, question is how an organization is going to channel the change into organizational development process. According to McLean (2006) organization development process need to be; Aligned with organizational objectives. System oriented. Based on behavior science. Long-time oriented. Focus on process orientation for goal attainment. Based on teamwork.

The OD has progressed into many different approaches all aimed at enabling great improvements in organizational performance through specific and planned interventions. There are four major OD interventions that are: 1. 2. 3. 4. Action Search Appreciative Inquiry Future Search Whole System Intervention

Action Search
Most of organizations tank some OD initiatives because they are not happy with the working and how things are being run at the time. There would be any stronger desire for change if the current track on which organization is running the everyday activities is meeting goals. The Action Search approach focuses to determine what is wrong and then fixing it swiftly. The first stage of the approach is to gather data about what is going wrong in the business and how it can be improved? Using this approach management should be careful that the process should not become useless witch hunt and should not be used against others. Interventions of this approach take place regularly in most of organizations. However this technique should be used only under very tight constraints and rules supporting moral values. But most of time organizations just use some intervention without any careful evaluation. So action research can go really bad if it is not managed effectively.

Appreciative Inquiry
This approach is the reflection of action research technique. Appreciative Inquiry starts with deciding what is working well and what the positive and strong aspects of organizational culture are? The OD professionals focus on what is going right instead of what is going wrong. The process is to focus on doing more things the correct way avoiding to correct the wrongs.

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OD and Change Management

However this approach can lead to problem of gloating over positive things and ignoring the huge failures. For example once in an organization a business unit was failing very miserably and was on the threshold of elimination. Management forced them to do a three day appreciative inquiry. At the end of inquiry they were celebrating about their wonderful opportunities and the things they can do while they were actually failing. Six months after vigorous celebrations they were all looking for new jobs. However appreciative inquiry can be a very successful approach than action research if it is traded very carefully avoiding overly sanguine approach toward bitter reality.

Future Search
Future search process concentrates on the vision rather than the current position. In this approach change group and OD professionals focus in defining an enthralling picture of future. It helps identifying the gaps between current situation and the desired future position. An exceptional vision is a powerful driving force for organizations and individuals. According to (Whipple, 2003), without a well-defined vision organization is just like a ship without a rudder completely on the powerful wind looking to anchor somewhere safely, but failing miserably to do so. This approach can also do wonders but also needs be handled carefully.

Whole System Intervention

In this approach, activities of the organization are viewed through a systems approach. In this intervention a team of OD professional and organizations change agents set to work together on redefining the business activities, culture, values, believes and behaviors etc. This is a better technique than others in way that it focuses on what and how and not one who like in other approaches. But still this approach can get very complicated as understanding the organization culture is very difficult. All four OD interventions described above are the very important for organizational improvement. But they are required to be applied with care to be effective. If not the OD intervention can make the situation horribly worse. In addition to these OD interventions there are many other OD models that can be used to better understand and implement the OD process in an organizational setup. Following are some OD models that we can use to effectively manage organization development and change process.

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OD and Change Management

Organization Development Models

PlanDoCheckAct Cycle Model
Shewhart presented PlanDoCheckAct (PSCA) cycle in 1920, also known as plando studyact (PDSA) cycle, Deming cycle and Shewhart cycle. It presented OD as an ongoing process for continuous organizational improvement. In this model there are four steps that an organization needs to take and repeat continuously for the purpose of OD. First they need to identify an opportunity and then make a plan for change, second they need to test run the change (any small scale survey), third they will need to check and review the change process results and feedbacks and in the end they need to act according to the checking of change. If the change was successful then they can implement the change in whole organization and if the change didnt worked out well they will need to start again from planning according to checking results and what they have learned from it. However regardless of success or failure of change the PDCA cycle must be continuous. A New York school, school uses the PDCA cycle to define work processes for their classrooms. First of all they plan the curriculum map by analyzing the needs of students individually and collectively. In second step do, they provide instructions to teachers to teach according to each students learning abilities and rates using different teaching methods and styles. After that at third step they continuously throughout the school year assess the student performance. In case of any shortcomings in goals, midcourse alterations in teaching process are made. And in the final step act, if the goals are met the curriculum and teaching methods are standardized.

Act

Plan

Check

Do

Figure 1: PlanDoCheckAct Cycle Model

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OD and Change Management

The PDCA cycle can be used when there is need for a model for continuous development, when carrying out some change, starting a project, introducing new product, improving product, highlighting continuous work flow.

Lewin's Unfreeze-Change-Refreeze Management Model

Kurt Lewin developed unfreeze-change-refreeze model in 1940s to better understand the organizational change. This model is a three stages change management model. Lewin used example of changing the shape of ice cube by unfreezing it then changing shape and then again freezing it (Fig.2).

Figure 2: Unfreeze-Change-Refreeze Model

According to Lelwin, Motivation for change must be generated before change can occur. One must be helped to re-examine many cherished assumptions about oneself and ones relations to others. From here starts the first stage of unfreezing. Unfreeze: - In this stage organization is prepared to accept the necessary change. This stage means breaking down existing status quo before starting up the change process. While preparing organization for the change process the OD professional need to test the values, beliefs, attitudes and behaviors that makes the organization. Unfreezing process is a kind of crisis creation, but controlled one. While unfreezing OD professionals need to; Decide what needs to be changed. Make sure change is supported by the organization management. Formulate a need for change. Understand and manage the concerns from change.

Change: - After the creation of an uncertainty crisis in previous stage people here start to solve their problems by looking for new processes and organizational directions. Change process is a time taking stage. Here people will need to understand the benefits and costs of the change before accepting it. While change process OD professionals need to communicate effectively with others, dismiss and repel rumors and involve other people in the change. Refreeze: - When the change is taking shape and people have accepted the changed processes and ways of working, the organization shows its readiness for refreeze. Refreeze shows stable

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OD and Change Management

organization hierarchy and stable job tasks. In refreeze stage the change is institutionalized, means change is incorporated in to everyday tasks of organization and way the things are handled in the organization. While refreezing OD professionals must transfer and lead the change into the culture, develop ways of sustaining change, provide support and necessary training and must not forget to celebrate the success.

Organization Development Process (ODP) Model

Organization development process model was by McLean and Sullivan in 1989. ODP comprises eight steps, that are; entry, start-up, assessment and feedback, action planning, implementation, evaluation, adoption, and separation. Figure.3 shows the sequence of ODP model. Entry: - In the first stage OD advisor meet the client organization and decide if the can work together, analyze the organizations readiness for change and decide the terms of their cooperation. Start-up: - At second stage a team of client team is formed after agreeing on terms of work. Assessment and Feedback: - In this stage also known as analysis and diagnosis, consultant and client determine the organizations culture, do cultural SWOT analysis and inform the organizations members. Assessment can also be focused on any particular area or department. Action Plan: - In this phase keeping in view the findings of assessment client organization and OD professional decide and plan how they want to proceed. They develop the organizational goals and objectives and strategize the achievement of them. Implementation: - At this stage action plan decided in previous stage is implemented. Evaluation: - The action plan is evaluated in this stage of process. And it is decided that how well our intervention worked out. Adoption: - If the previous stage that is evaluation, indicates success in achieving intervention objectives, than the changes that were implemented will be adopted and standardized. In case of failure of intervention the change will not be adopted. Regardless of failure or success of intervention the whole process will continuously keep on repeating. Separation: - In last stage OD consultant will leave the organization change process due to total transfer of change intervention capability, completion of organizations need for change or consultant do not possess more OD skills.

Adnan Shabbir Mirza

OD and Change Management

Figure 3: Organization Development Process (ODP) Model

Burke-Litwins Drivers for Change

Bruke & Litwin (1992), presented the various drivers of the change and then ranked them according to their importance. Fig.4 shows the Burke-Litwin model. In this model all the factors are interrelated and the most important factors for change are highlighted on top of the model. According to Burke and Litwin change in one factor will affect all of factors. Model focuses on identifying and dealing with the drivers of change. Burke and Litwin presented.

Appreciative Inquiry
Cooperrider and Srivastva (1987) presented appreciative inquiry model. This model essentially uses the all same steps as ODP model, but instead of doing complete analysis of organizations strengths and weaknesses in assessment and feedback stage, it only focuses on positive part of cultural aspects.

Adnan Shabbir Mirza

OD and Change Management

Figure 4: The Burke-Litwin model

Beckhard and Harriss Change Equation

Beckhard & Harris (1977) presented change equation. According to this equation change will be successful if the following equestion will be true;

Dissatisfaction: First the organization management needs to feel dissatisfied with the current situation in order to bring about some change. No one will be willing for the change if everything is going according to their desire and they are not remotely dissatisfied about process. Desirability: If the people are dissatisfied with the current system and process than the proposed change must need to be appealing. The envisioned change should be attractive that it develops the desirability of people for change. Practicality: Most importantly the change should be practical and realistic and it needs to be convincing. Resistance to Change: Its in human nature to be reluctant to change the habits. Especially old experienced people will be reluctant to accept any technological change in processes. People may feel reluctant to change when they;

Adnan Shabbir Mirza

OD and Change Management Feel they will lose something valuable like status, competence and possessions. Lacking trust in change agents. Lack of knowledge about change implications. Feel they might not fit into organization after change. Dont see change good for organization. They are provided little time.

Leavitt's Diamond
Leavitts diamond is widely used, organizational change model that consists of four interlinked components.

Figure 5: Leavitt's Diamond

People

In Leavitts model of OD, people are the employees of the organization. When using this approach OD professionals look at their skills, efficiency, knowledge and productivity. According to this model change in tasks, structure and use of technology must be made keeping people in mind. This may involve hiring new employees.
Tasks

This component focuses on tasks and organizational goals. This component includes looking firstly how things are being done and secondly what are the achievements. According to Leavitt OD professional should focus on qualitative aspects of the tasks and goals. When looking at tasks they need think about relevance and benefits, and about yield and productivity when looking at goals. According to him tasks and goals can be affected by other factors in following ways;

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OD and Change Management

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Changing of manpower will make organization to make changes in tasks or goals to effectively utilize their skills and knowledge. For instance organization will have to adopt new computerized database system if they are employing new computer skilled accountant. Change in Structure will also force organization to change the processes of doing tasks and then they will have to change the goals too accordingly. Technology Change: Usage of newer technology would also require organization to make changes. Tasks and goals should be changed and raised so the maximum benefits could be taken out of new technology.

Structure

The structure component includes not only the hierarchical structure, but also the relationships, communication patterns and coordination between different management levels, departments and employees. It also includes the flow of authority and responsibility in organization. According to Leavitt organizational structure must also be changed when making changes to any other component of the diamond. The style of supervision, empowerment, customer relations, communication and technology must also be changed.
Technology

Technology plays a very important role in todays business. It facilitates the employees in performing their job tasks. According to the model technology as a facilitator will be required to be changed in case of change in any other factor of diamond.

Bridges' Transition Model

The transition model was developed by Bidges in 1991. This model focuses on transition instead of change. According to this model transition is something that goes in peoples minds when they are going through any change. Model encompasses three stages of transition; 1. Ending, losing and letting go. 2. The neutral zone. 3. The new beginning. According to Bridges people will go through transition stages at their own pace, some might accept change quickly but other who do not like it will simply take more time or reject it altogether.
Stage 1: Ending, Losing, and Letting Go

People enter this initial stage of transition when management or OD professionals first present them with change. At this stage people usually feel uncomfortable and resist to it because people are asked to leave their comfort zone.

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OD and Change Management

Stage 2: The Neutral Zone

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People who underwent the change remain unfocused and confused in this stage. In this stage people might feel resentment toward change initiatives, might have low morale and productivity, and might not feel comfortable with their role. However these problems can be overcome by carefully planning and executing the change initiatives.
Stage 3: The New Beginning

At this stage people accept the change initiatives. At this stage people will show high level of energy, openness to learning and show commitment to their job role.

Conclusion
After going through all the models above, I cant say these are the all models that can be used while facilitating change in the organization while keeping OD in view. There are still a lot of OD and change models that can help organization for development and change management. However I can say these are the most commonly known and used OD models that can help managing change in organization. The objective of this paper was to look at ways and methods that as a HR professional I can use to facilitate the OD and Change in my organization. Know answering to this challenge I as a HR professional can select and incorporate any of above review models to facilitate OD and change management according to my organization. Above discussed models can be modified and used according to different situations in different organizations.

Adnan Shabbir Mirza

OD and Change Management

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Bibliography
Beckhard, R. (1969). Organization Development: Strategies and Models. Addison-Wesley Longman, Inc. Beckhard, R., & Harris, R. (1977). Orgnizational Transition: Managing Complex Change. Bennis, W. G. (1969). Organizational Development: Its nature, origins, and prospects. California: Addison-Wesley Pub.Co. Bridges, W. (1991). Managing Transitions. Bruke, & Litwin. (1992). A Causal Model of Organization Performance and Change. Journal of Management, 18(3), 523-545. Church, A. H., Gilbert, M., Oliver, D. H., Paquet, K., & Surface, C. (2002, November). The Role of Technology in Organization Development and Change. Advances in Developing Human Resources, 4(4), 493-511. McLean, G. N. (2006). Organization Development. California: Berrett-Koehler Publishers, Inc. Schein, E. H. (1980). Organizational Psychology (3rd ed.). Prentice Hall. The Jossy-Bass Business & Management Series. (2006). Organization Development. (J. V. Gallos, Ed.) San Francisco, USA: John Wiley & Sons, Inc. Waclawski, J., & Church, A. H. (2001). Organization Development: A Data-Driven Approach to Organizational Change. Wiley,2001.

Adnan Shabbir Mirza