1. Managing Organizational Change and Development
Chapter 18
Managing Organizational Change and Development
Learning Objectives
After completing Chapter 18, you should be able to:
Define
The concept and practice of organizational development
Describe
Sources of change and alternative change management approaches
Discuss
The ethical issues that arise in organizational development practice
Compare
Alternative interventions that management can implement to improve performance
Identify
The important steps in organizational development programs

2. Chapter Outline Alternative Change Management Approaches
Organizational Development
Learning Principles & Change Agents
A Model for Managing Organizational Development
Forces for Change
Diagnosis of a Problem & Interventions
Overcoming Limiting Conditions
Implementing & Evaluating the Program
Ethical Issues
Guidelines for Managing Change through OD

3. CHANGE MANAGEMENT APPROACHES
Managing change through power
Managing change through reason
Managing change through education 2

4. ORGANIZATIONAL DEVELOPMENT
A planned, managed, systematic process to change the culture, systems, & behavior of an organization. It seeks to improve the organization’s effectiveness in solving its problems & achieving its objectives. 3

5. OD LEARNING PRINCIPLES
Unfreezing old learning requires people who want to learn new ways to think & act.
Movement to new learning requires training, demonstration, & empowerment.
Refreezing the learned behavior occurs through applying reinforcement & feedback. 4

6. OD CHANGE AGENTS
A change agent is a person or group who enters an organization to facilitate a change process
External change agents are temporary employees, usually a university professor or private consultant
Internal change agents are ongoing employees who know something about the organization
External-internal change agents make up a change team put together by the organization 5

7. FIGURE 18-1: MODEL FOR THE MANAGEMENT OF ORGANIZATIONAL DEVELOPMENT
Forces for change
Environmental
Market
Technology
Resources
Internal
Behavior
Processes
Performance
outcomes
Organizational
Group
Individual
Diagnosis of the
problem
Information
Participation
Change agent
Selection of best
intervention
Structural
Skill/attitude
Behavioral
Focus of
Leads to
Affect
As constrained by
Limiting Conditions
Leadership climate
Formal organization
Organization culture
Implementation
Timing
Scope
Experimentation
Evaluation of method
Feedback
Adjustment
Revision
Reinforcement
Followed by
Provision
for
Feedback
Feedback

8. ENVIRONMENT FORCES FOR CHANGE Social & political forces
Economic forces
Technological forces
Social & political forces 6

9. QUESTIONS FOR DIAGNOSING THE PROBLEM
What is the problem distinct from the symptoms of the problem?
What must be changed to resolve the problem?
What outcomes are expected from the change, & how will these outcomes be measured? 7

10. Examining organizational documents
DATA COLLECTION APPROACHES FOR PROBLEM DIAGNOSIS
Direct observations
Questionnaires
Examining organizational documents
Interviews with key individuals
Group workshops 8

11. FIGURE 18-3: TARGETS OF ORGANIZATIONAL DEVELOPMENT
Structural
targets
Job tasks
Department bosses
Operating policies
Personnel policies
Intergroup behavior
Intragroup behavior
Individual behavior
Individual group behavior
Low
Depth of change
Behavioral
targets
High

12. TARGETS OF INTERVENTIONS
Formal-target interventions
Informal-target interventions
Multitarget interventions 9

13. LIMITING CONDITIONS OF AN INTERVENTION
Leadership climate: Managers’ leadership style & administrative practices.
Formal organization: Top management’s philosophy & policies, legal precedent, organizational structure, & control systems.
Organizational culture: The pattern of beliefs resulting from group norms, values, & informal activities. 10

14. SIX STEPS OF AN OD EVALUATION MODEL
Determine the program’s objectives.
Describe the activities undertaken to achieve the objectives.
Measure the program’s effects.
Establish baseline points against which changes can be compared.
Control extraneous factors, preferably by using a control group.
Detect unanticipated consequences. 11

15. SOME GUIDELINES FOR MANAGING CHANGE THROUGH OD
All involved must have high and visible commitment to the effort
People who are involved need advance information
The effort must be connected to other parts of the organization
The effort needs to be directed by line managers and assisted by a change agent if necessary
The effort must be based on good diagnosis and must be consistent with the conditions in the organization
Management must remain committed to the effort
Evaluation is essential
People must see the relationship between the effort and the goals
The change agent must be clearly competent