Organizational Change and Development - Chapter 5 - PDF

Fall Semester Organizational Change and Development Dr/shaimaa elgendy  Chapter 5 Entering and Contracting  Introduc 3 tion  The planned change models described in the previous module are usually used when one or more managers or administrators sen...

Fall Semester Organizational Change and Development Dr/shaimaa elgendy  Chapter 5 Entering and Contracting  Introduc 3 tion  The planned change models described in the previous module are usually used when one or more managers or administrators sense an opportunity for their organization, believe that new capabilities need to be developed, or decide that performance could be improved through organization development.  Entering and contracting are the initial steps in the OD process. They involve defining in a preliminary manner the organization’s problems or opportunities for development and establishing a collaborative relationship between the OD practitioner and members of the organization about how to work on those issues.  Entering into an Organizational Change Developm Relations and Learning ent hip 5 Objectives After Studying this lesson you will be able to:  Describe the activities carried out in the entering and contracting stage.  Clarify the organizational issues that need development.  Determine the relevant member(s) within the organization who can directly impact the change issues.  Entering into an Organizational Change and Development Relationship 6 Topic 1: Steps in Entering and Contracting  Stage An OD process generally starts when a member of the organization or unit contacts an OD practitioner about potential help in addressing an organizational issue.  The organization member may be a manager, staff specialist, or some other key participant.  The practitioner may be an OD professional from inside or outside the organization.  Determining whether the two parties should enter in an OD relationship is the first step in an OD process.  In this step organizational issues need to be determined: The OD practitioner needs to collect preliminary data about the organization and how it functions. Similarly the organization may need to collect information about the practitioner competence and experience. This will help the two parties to decide whether they should proceed to develop a contract for working together.  Entering into an Organizational an Developm Relations Topi 1 Change Ste i Enteri an Contract Sta d ent hip c : ps n ng d ing ge 7 Clarifying the Organizational Issue The first step in the entering and contracting stage in any OD process is to Clarify the organizational issues or problems that need to be addressed.  Entering into an Organizational an Developm Relations Change Topi 1 Ste i Enteri an Contract Sta d ent hip c : ps n ng d ing ge 8 Clarifying the Organizational Issue To adapt to such rapid growing environment.  Entering into an Organizational Change and Development Relationship Topic 1: Steps in Entering and Contracting Stage 9 Clarifying the Organizational Issue  Entering into an Organizational Change and Development Relationship Topic 1: Steps in Entering and Contracting Stage 10 Clarifying the Organizational Issue  Entering into an Organizational Change and Development Relationship Topic 1: Steps in Entering and Contracting Stage 11 Determine the Relevant Client  Entering into an Organizational Change and Development Relationship Topic 1: Steps in Entering and Contracting Stage 12 Determine the Relevant Client  Developm Relations Entering into an Organizational Change and ent hip Topic 1: Steps in Entering and 13 Contracting Stage Difficulties Determine the Relevant Client Determining the relevant client is more complex when the organizational issue cannot readily be addressed in a single unit. Here, it may be necessary to expand the definition of the client to include members from multiple units, from different hierarchical levels, and even from outside of the organization. For example the manager of the production department may seek help in solving conflicts between his or her unit and other departments in the organization. The relevant client would extend beyond the boundaries of the production department because the department alone cannot resolve the issue. If that interdepartmental conflict also involved key suppliers and customers from outside of the firm, the relevant client might include members of those groups.  Entering into an Organizational Change and Development Relationship Topic 1: Steps in Entering and Contracting Stage 14 Difficulties Determine the Relevant Client In such complex situations, OD practitioners need to gather additional information about the organization to determine the relevant client. They can ask questions such as: Who can have a direct impact on the organizational issue? Who has the power to approve or reject the OD effort? Answers to those questions can help determine who the relevant client is for the entering and contracting stage  Selecting an OD Practitioner The last activity involved in entering an OD relationship is selecting an OD practitioner who has the expertise and experience to work with members on the organizational issue. To help lower the uncertainty of choosing from among external OD practitioners, organizations may request that formal proposals be submitted. The OD practitioner must take all of the information gathered in the prior steps and create an outline of how the process might unfold. A client may not like the consultant’s work, but it is critical to know the reasons for both pleasure and displeasure. One important consideration is whether the consultant approaches the organization with openness and an insistence on diagnosis or whether the practitioner appears to have a fixed program that is applicable to almost any problem or organization. In selecting an OD practitioner perhaps the most important issue is the fundamental question, “How effective has the person been in the past, with what kinds of organizations, using what kinds of techniques?” In other words, references must be checked. Interpersonal relationships are important.  Entering into an Organizational Change and Development Relationship 15  Develop a Contract Learning Objective 30 After Studying this lesson you will be able to:  Define the goal of the contracting stage.  Identify the key areas in the contracting stage.  Develop a Contract Topic 1: The 31 Contacting Process What is contracting?  Develop a Contract Topic 1: The 32 Contacting Process The Goal of contracting The goal of contracting is to make a good decision about how to carry out the OD process. It can be relatively informal and involve only a verbal agreement between the client and the OD practitioner. In other cases contracting can be more protracted and result in a formal contract. That typically occurs when organizations employ external OD practitioners. Unless there is a mutual understanding and agreement about the process, there is a considerable risk that someone's expectations will be unfulfilled. That may cause termination of the OD process.  Develop a Contract Topic 1: The 33 Contacting Process The contracting step in an OD process generally addresses three key areas: for working together  Develop a Contract Topic 1: The 34 Contacting Process 1- Mutual Expectations This part of the contracting process focuses on the expectations of the client and the OD practitioner. The client states the services and outcomes to be provided by the OD practitioner and describes what the organization expects from the process and the consultant. Clients usually can describe the desired outcomes, such as lower costs or high job satisfaction. Encouraging them to state their wants in the form of outcomes within working relationships can facilitate the development of a good contract. The OD practitioner also should state what he or she expects to gain from the OD process. This can include opportunities to try new interventions, report the results to other potential clients, and receive appropriate compensation or recognition.  Develop a Contract Topic 1: The 35 Contacting Process 2- Time and Resources To accomplish change, the organization and the OD practitioner must commit time and resources to the effort. Each must be clear about how many resources will be dedicated to the change process. Failure to make explicit the necessary requirements of a change process can quickly ruin an OD effort. Resources can be divided into two parts:  Develop a Contract Topic 1: The 36 Contacting Process 3- Time and Resources Essential requirements are things that are absolutely necessary if the change process is to be successful From a practitioner's perspective they can include access to key people or information, enough time to do the job, and commitment from certain stakeholder groups. The organization's essential requirements might include a speedy diagnosis or assurances that the project will be conducted at the lowest price. Being clear about the constraints on carrying out the assignment will facilitate the contracting process and improve the chances for success. Desirable requirements are those things that would be nice to have but are not absolutely necessary, such as access to special resources or written rather than verbal reports.  Develop a Contract Topic 1: The 37 Contacting Process Ground Rules  Develop a Contract 38  Interpersonal Processi Enteri an Contract Issues n ng d ing 40 Learning Objective After Studying this lesson you will be able to:  Define the factors affecting client- practitioner dynamics.  Interpersonal Process Issues in Entering and Contracting 41 Topic 1: The Relationship between the organization and the OD Practitioner Establishing a healthy relationship between a client and an OD practitioner is an important step in entering and contracting. This makes it more likely that the client's desired outcomes will be achieved and that the OD practitioner will be able to improve the organization's capacity to manage change in the future.  Interpersonal Process Issues in Entering and Contracting 42 Topic 1: The Relationship between the organization and the OD Practitioner Factors affecting the client organization practeOrganization This initial stage is full of uncertainty and ambiguity. The client is likely to feel exposed, inadequate, or vulnerable. The organization's current ineffectiveness and the request for help may seem to the client like an admission that they are incapable of solving the problem or providing the leadership necessary to achieve a set of results. Moreover, they are entering into a relationship where they may feel unable to control the activities of the OD practitioner. As a result, they feel vulnerable because of their dependency on the practitioner to provide assistance. Consciously or unconsciously, feelings of exposure, inadequacy, or vulnerability may lead the client to resist coming to closure on the contract.  Interpersonal Process Issues in Entering and Contracting 43 Topic 1: The Relationship between the organization and the OD Practitioner Factors affecting the OD Practitioner The practitioner's desire to be seen as competent and worthy may lead to an agreement on a project for which the practitioner has few skills or experience In response to reasonable client requests, the practitioner may challenge the client's motivation and become defensive. A number of complex emotional and psychological issues are in play such as:  Interpersonal Process Issues in Entering and Contracting 44  Summary 45