Organizational Behavior & Development

Topic 7
Organizational Development
Ahmad Bayiz Ahmad, PhD
[email protected]
Learning Objectives

❖To provide a definition of Organization Development (OD)

❖To distinguish OD and other forms of organization change.
❖To understand three popular models of change:
✓ Lewin’s three stage model of change.
✓ Kotter’s 8-stem model of change.
✓ Action Research Model.
❖To describe and compare three major perspectives on changing
organizations.
❖To introduce a General Model of Planned Change.

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

What is Organization Development (OD)?

• “Most important factor for survival is neither size, nor intelligence nor
strength. It is adaptability”
----Darwin---

• “The velocity of change is so rapid, so quick, that if you don’t accept

the change and move with the change, you’re going to be left behind.”
----BHP Billiton CEO”----
• E.g., Nokia had 40% market share in 2007!

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

 Case 1

• ABC company was established in 2009 in Hawler. ABC is highly

selective when it comes to hiring new employees. Applicants go
through several interviews and tests before being offered the position.
The company also pays its employee 10% above the market rate. Also,
ABC continuously provides training sessions for both new hires and
those in need of further developing their skills and knowledge. The
company known among its competitors for having a relatively low
employee turnover rate (just 8%) compared to others in the same
industry (which is 22%). However, the top manager aims to further
reduce turnover rate by 2% by the end of Dec 2025.

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

Burke’s Definition of OD

• OB is an applied behavioral science that is built upon

contributions from a number of behavioral disciplines.
• OD is a planned process of change in an organization’s culture
through the utilization of behavioral science research and theory.
• Burke focuses attention on culture as the target of the change.

• Organizational Culture is the invisible force that guides an organization, shaped by shared
beliefs, values, and practices.

• Behavioral science includes:

• Anthropology.
• Behavioral economics.
• Organizational and social psychology.
• Consumer behavior.
• Sociology.
Copyright © 2022 Pearson Education Ltd. All Rights Reserved.
French’s Definition of OD

• OD refers to a long-range effort to improve an organization’s

problem-solving capabilities* and its ability to cope with
changes in its external environment with the help of external or
internal behavioral-scientist/consultants.

• French’s definition is concerned with OD’s long-term focus and the use of consultants.

• * “Don’t give me a fish, teach me how to fish”

------Laozi-----

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

Beckhard’s Definition of OD
• OD is an effort that is:
– planned,
– organization-wide,
– managed from the top,
– to increase organization effectiveness through
– planned interventions in the organization’s “processes,” using behavioral
science knowledge.
• Addresses the ‘process’ of OD.

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

Three Levels of Analysis in The OB Model

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

Organization Development is...
• A systemwide application and transfer of behavioral science knowledge to the
planned development, improvement, and reinforcement of the strategies,
structures, and processes that lead to organization effectiveness.
1. OD applies to changes in the strategy, structure, and/or processes of an organization, a department or
work group, or individual role or job.

2. OD is based on the application and transfer of behavioral science knowledge and practice, including
microconcepts, such as leadership, group dynamics, and work design, and macro-approaches, such as
strategy, organization design, and culture change.

3. OD is concerned with managing planned change; which involves a systematic diagnosis of the
organization, the development of a strategic plan for improvement, and the mobilization of resources to
carry out the effort.

4. OD involves the design, implementation, and subsequent reinforcement of change. It moves beyond the
initial efforts to implement a change program to a longer-term concern for making sure the new
activities sustain within the organization. E.g., MHESR changes in 2010.

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

Organization Development is...

5. OD is oriented to improving organizational effectiveness.

1. Effective organizations are able to solve their own problems and to continually
improve itself.
❑ Organizational members gain the skills and knowledge necessary to conduct these
activities by involving them in the change process.
2. An effective organization has high financial and technical performance,
including sales growth, acceptable profits, quality products and services, and
high productivity.
3. Has an engaged, satisfied, and learning workforce as well as satisfied and loyal
customers or other external stakeholders.

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

 OD versus change management
• OD and change management differ in their underlying value orientation:

– OD’s behavioral science foundation supports values of human potential, participation, and
development in addition to performance and competitive advantage.
– Change management focuses more narrowly on values of cost, quality, and schedule.
– OD is concerned with the transfer of knowledge and skill so that the organization is able to
manage change in the future.
– Change management does not necessarily require the transfer of these skills.
– OD is a planned effort initiated and implemented by its members (with help from OD
practitioners)
– Change Management can happen to the organization or be planned by its members.

• In short, all OD involves change management, but change management may not involve OD.

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

 Lewin’s Change Model
• Kurt Lewin argued that successful change in organizations should follow three steps:

1. Unfreezing the status quo: reducing those forces maintaining the organization’s behavior at its
present level.

2. Movement: intervening in the system to develop new behaviors, values, and attitudes through
changes in organizational structures and processes.

3. Refreezing the new change to make it permanent. Stabilizes the organization at a new state of
equilibrium.

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

Lewin’s Change Model

❑ Unfreezing is sometimes accomplished through a process of “psychological

disconfirmation”.
✓ By introducing information that shows discrepancies between behaviors desired
by organization members and those behaviors currently exhibited, members can
be motivated to engage in change activities.

❑ Decreasing those forces maintaining the status quo produces less tension and
resistance than increasing forces for change and consequently is a more
effective change strategy.

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

 Kotter’s Eight-Step Change Model
1. Establishing a sense of urgency: Half of all change efforts fail at the start. 75% of management must be convinced
that the status quo is, more dangerous than launching into the unknown.
– “I have learned that we are standing on a burning platform…..And, we have more than one explosion—we have multiple points
of scorching heat that are fueling a blazing fire around us.” Nokia CEO.

2. Forming a powerful guiding coalition: Top management plus another five to 50 other most influential people
develop a shared commitment to renewal.

3. Creating a vision: Without a coherent and sensible vision, a change effort dissolves into a list of confusing and
incompatible projects.

4. Communicating the vision: Use every existing communication vehicle to get the vision out. Incorporate the vision
into routine discussions about business problems.

5. Empowering others to act on the vision: Getting rid of obstacles to change: Changing systems or structures that
seriously undermine the vision; & Encouraging risk taking and nontraditional ideas, activities, and actions

6. Planning for and creating short-term wins: Clearly recognizable victories within the first year or two of a change
effort help convince doubters that the change effort is going to be worth all the trouble.

7. Declaring victory too soon: It’s fine to celebrate a short-term win, but it’s catastrophic to declare the war over.

8. Institutionalizing new approaches: If they are to stick, new behaviors must be rooted in the social norms and shared
values of an organization.

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

Action Research Model

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

Action Research Model
1. Problem identification. Begins when an executive in the organization or someone with power and influence senses that the
organization has one or more problems that might be solved with the help of an OD practitioner.

2. Consultation with a behavioral science expert. During the initial contact, the OD practitioner and the client carefully assess each
other. AR involves considerable collaboration among organization members and OD practitioners.

3. Data gathering and preliminary diagnosis. This step is usually completed by the OD practitioner, in conjunction with
organization members. It involves collecting appropriate information (through observation, interviews, questionnaires, and
organizational performance data) and analyzing it to determine the underlying causes of organizational problems.

4. Feedback to a key client or group. Because action research is a collaborative activity, the diagnostic data are fed back to the
client.

5. Joint diagnosis of the problem. At this point, members discuss the feedback and explore with the OD practitioner whether they
want to work on identified problems. AR is not a doctor-patient model.

6. Joint action planning. The OD practitioner and the client members jointly agree on further actions to be taken. This is the
beginning of the moving process (described in Lewin’s change model). The specific action to be taken depends on the culture,
technology, and environment of the organization.

7. Action. Involves the actual change from one organizational state to another. It may include installing new methods and
procedures, reorganizing structures and work designs, and reinforcing new behaviors.

8. Data gathering after action. As AR is a cyclical process, data must also be gathered after the action has been taken to measure
and determine the effects of the action and to feed the results back to the organization. This, in turn, may lead to rediagnosis and
new action.

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

 Positive Model

• Choose positive subjects. E.g., Da Farmu

• Collect positive stories with broad participation

• Examine data and develop possibility propositions

• Develop a vision with broad participation

• Develop action plans

• Evaluate

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

 Comparison of Change Models
All three models – Lewin’s change model, the action research model, and positive
model – describe the phases by which planned change occurs in organizations.

First ◼ The models overlap in that their

emphasis on action to implement
organizational change is preceded by a
preliminary stage (unfreezing, diagnosis,
or examining positive aspects of the
organization) and is followed by a
closing stage (refreezing, evaluation, or
data gathering after action).

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

 Comparison of Change Models

First ◼ All three approaches emphasize the

application of behavioral science
Second knowledge, involve organization
members in the change process to
varying degrees.

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

 Comparison of Change Models

First ◼ However, Lewin’s change model differs

from the other two in that it focuses on
Second the general process of planned change,
rather than on specific OD activities.
Third

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

 Comparison of Change Models

First ◼ Lewin’s model and action research

model differ from positive model in
Second terms of the level of involvement of the
participants and the focus of change.
Third ◼ The first two models emphasize the role
Fourth of the consultant with limited member
involvement in the change process.

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

 Comparison of Change Models

First ◼ Positive models treat both OD

practitioners and participants as co-
Second learners who are heavily involved in
planned change.
Third ◼ Lewin’s model and action research are
Fourth more concerned with fixing problems
than with focusing on what the
Fifth organization does well and leveraging
those strengths.

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

 2-23

General Model of Planned Change

Planning Evaluating
Entering and and
and Diagnosing Implementing Institutionalizing
Contracting Change Change

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

 General Model of Planned Change
The General Model of Planned Change is based on the three models of planned change.
This model describes the four basic activities that OD practitioners and organization
members jointly carry out in OD.
◼ This stage help managers decide whether they
Entering and Contracting want to engage in a planned change and to
allocate resources to it.
◼ It involves understanding the problems facing
the organization.
◼ The possibility of developing a contract or
agreement to engage in planned change is
discussed.
◼ The contract highlights further change
activities, the resources that will be allocated
to the process, and how OD practitioners and
members will be involved.
Copyright © 2022 Pearson Education Ltd. All Rights Reserved.
 General Model of Planned Change
◼ Focus on understanding
Entering and Contracting organizational problems,
including their causes and
consequences, or on identifying
Diagnosing the organization’s positive
attributes.

◼ Gathering, analyzing, and feeding

back information to managers and
members about the problems or
opportunities that exist.

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

 General Model of Planned Change

◼ Organization members and OD

Entering and Contracting
practitioners jointly plan and
implement OD intervention to
achieve the organization’s vision
Diagnosing
or goals.

Planning & Implementing

Change

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

 General Model of Planned Change

◼ Evaluating the effects of the

Entering and Contracting intervention and managing the
institutionalization of successful
change program.
Diagnosing ◼ Feedback the intervention results to
organization members provides
information whether the changes
Planning & Implementing should be continued, modified, or
Change
suspended.
◼ Institutionalizing successful changes
Evaluating &
and reinforcing them through
Institutionalizing ChangeCopyright © 2022 Pearson Education Ltd. All Rights Reserved.
feedback, rewards, and training.
Next class

First stage of the general

model of Planned
Change: Entering and
Contracting

Copyright © 2022 Pearson Education Ltd. All Rights Reserved.