Organizational Development and Change Theories

Study Notes

The Nature of Planned Change

Change is a constant element in organizational life due to global, economic, and technological influences.
Organizations can experience unplanned change, while planned change is intentional and initiated by members to enhance effectiveness.
Organizational Development (OD) facilitates planned change aimed at improving an organization’s ability to adapt and grow.

Theories of Planned Change

Lewin’s Change Model

Change is viewed as a balance between forces maintaining current behaviors and those advocating for change.
Three steps of the change process:
- Unfreezing: Reduces forces preserving the current state, often through "psychological disconfirmation" by revealing discrepancies in behaviors.
- Moving/Changing: Involves altering organizational behaviors, structures, and processes to foster new attitudes and values.
- Refreezing: Stabilizes the organization at a new level through reinforcement mechanisms like rewards and organizational culture.

Action Research Model

Emphasizes a cyclical approach to planned change, integrating research, action, and reflection.
Eight steps in the model:
- Problem Identification
- Consultation with a Behavioral Science Expert
- Data Gathering and Preliminary Diagnosis
- Feedback to a Key Client or Group
- Joint Diagnosis of the Problem
- Joint Action Planning
- Action Implementation
- Data Gathering After Action

Positive Model

Focuses on organizational strengths and best practices to facilitate improvement.
Five phases:
- Initiate the Inquiry
- Explore Best Practices
- Identify Common Themes
- Envision a Preferred Future
- Design and Deliver Strategies for Change

General Model of Planned Change

Change involves various interrelated activities: entering and contracting, diagnosing, planning, implementing, evaluating, and institutionalizing.
The process is not linear; it encompasses significant overlaps and feedback loops among activities.

Entering and Contracting

Initial data collection to grasp problems or opportunities for change.
Discussion with managers to establish a contract outlining change activities, resource commitments, and participant roles.

Diagnosing

In-depth study of the organization to identify problems or leverage strengths.
Diagnosis involves selecting models for understanding, collecting and analyzing data, and providing feedback to stakeholders.

Planning and Implementing Change

Interventions are crafted to achieve the organization’s vision through detailed action plans.
Types of interventions include:
- Human process interventions focused on individual and group dynamics
- Modifications to organizational structure and technology
- Human resource initiatives aimed at enhancing performance and well-being
- Strategic interventions managing relations with external environments and supporting business strategies

Evaluating and Institutionalizing Change

Evaluation of intervention outcomes is vital for understanding impact and ensuring changes are integrated into the organization’s culture and processes.

Organizational Development Defined

Organizational Development (OD) is a systematic process aimed at enhancing an organization's effectiveness and health through planned change.
Focus areas include improving organizational performance, facilitating employee development, and enhancing organizational culture.
Typically involves bottom-up change strategies.

Growth and Relevance of Organizational Development

Emerged in the mid-20th century, significantly influenced by behavioral science and systems theory.
Key drivers include:
- Increasing complexity in organizational structures
- The necessity for continuous improvement and adaptability
- A growing focus on employee engagement and satisfaction
Current trends emphasize agility, technology integration, and diversity within organizations.

Major Factors Driving Growth

Globalization: Organizations expand their influence and operations internationally, affecting market dynamics and operational functionality.
Information Technology: IT transforms traditional business models, affecting work processes, knowledge management, and cost structures.
- Fosters innovation in business through methods like e-commerce and electronic data exchange.
Managerial Innovation: Emerges in response to globalization and IT, creating new organizational forms such as networks, strategic alliances, and virtual corporations.
- Introduces new change methods, including downsizing and reengineering, enhancing flexibility while reducing organizational size.

Short History of Organizational Development

1950s-1960s: Establishment of OD as a field, shaped by behavioral science and systems theory.
1970s-1980s: Expansion into strategic management with a focus on organizational culture and change management.
1990s-Present: Integration with technology, emphasizing global organizations and virtual teams.

Evolution of Organizational Development

Kurt Lewin (1898-1947): Pioneer in group dynamics and social change theory.
1950s: The term "Organizational Development" was popularized by Douglas McGregor and Richard Beckhard.
1945: Rensis Likert utilized surveys to drive foundational changes in OD.
Second Generation Contributors: Influential figures include Warren Bennis, Edgar Schein, and Richard Beckhard.
Third Generation Contributors: Key contributors include Warner Burke, Larry Greiner, Edward Lawler III, Newton Marguiles, and Antony Raia.
Fourth Generation Contributors: Prominent figures are Dave Brown, Thomas Cummings, Max Elden, and Jerry Porras.

Description

Explore the concepts of planned change and the role of Organizational Development in enhancing organizational effectiveness. Learn about Lewin's Change Model, its three critical steps, and how organizations can adapt to ongoing changes in their environment. This quiz will deepen your understanding of how managed change can lead to improved organizational performance.