Organizational Development and Change Management
Organizational Development
Organizational Development (OD) focuses on the operation, development, and effectiveness of human organizations. An organization is defined as two or more people working towards a common goal or goals.
OD is a continuous effort by management and all members to ensure the organization’s long-term credibility, sustainability, and functionality. It emphasizes human capital, streamlines processes, and establishes a clear direction.
OD can be viewed as a tool that uses internal and external analysis to inform strategic decision-making and guide change. This ensures efficiency and prepares the organization for success in a competitive environment.
Organizational Process Management
All OD programs have three core components:
- Diagnosis: Continuous data collection on the system, its sub-units, processes, culture, and other relevant targets.
- Action: Activities and interventions designed to improve organizational functioning.
- Program Management: Activities ensuring program success, developing the overall OD strategy, monitoring progress, and addressing complexities.
The process involves diagnosing the system’s state, developing action plans to address issues and capitalize on strengths, and evaluating the results of these actions.
Model and Theory of Planned Organization
OD involves planned organizational change. Models and theories represent key features of phenomena as variables and specify their relationships. Kurt Lewin’s three-stage model uses the analogy of a smoker quitting:
- Unfreezing: Recognizing the need for change (e.g., smoking is harmful).
- Moving: Changing behavior (e.g., refraining from smoking).
- Refreezing: Integrating the new behavior (e.g., not smoking becomes the new norm).
Unfreezing creates discomfort, motivating change. Moving involves cognitive restructuring and requires information to support the change. Refreezing stabilizes the change by integrating it into the individual’s personality and attitudes.
The Lippitt, Watson, and Westley model, a “total system change” model, consists of five stages:
- Program initiation
- Problem diagnosis
- Planning interventions
- Implementing interventions
- Evaluating results
Organizational theories, using a systemic approach, recognize that organizations are dynamic systems responding to environmental changes. This limits the application of universal theories and necessitates new approaches to explain organizational dynamics and network formation.
Changes in Large-Scale Systems and Organizational Transformation
Large-scale change refers to massive organizational change involving many units or people, and/or deep cultural shifts (e.g., restructuring objectives, reducing hierarchical levels, shifting to participative leadership).
Large-scale system change includes second-order change or organizational transformation, defined as “a multidimensional, multilevel, qualitative, discontinuous, and radical change involving a paradigm shift.”
Organizational transformation requires multiple interventions over time, such as:
- Replacing senior management
- Redefining the business
- Using cross-functional teams for change planning
- Reducing hierarchical levels
- Downsizing
- Team building
- Process consulting
- Continued use of cross-functional teams