management of organizational development and change

Rijal on OD (2015); for Shinawatra University MBA – 2015; Global College International, Kathmandu, Nepal

GLOBAL COLLEGE INTERNATIONAL

In Affiliation with

Shinawatra University, Thailand

MBA [2015]

Organization Development (OD)

Course Code: MGT 2007 Credit Hour: 1 Teaching hours: 18

Course Brief: This course focuses on organizations and organization theory; strategy,

organization design and effectiveness; fundamentals of organization structure; external

environment; inter-organizational relationship; designing organizations for international

environment; manufacturing and service technologies; organization size and life cycle;

organization culture and ethical values; innovation and change; decision making

processes; and conflict, power and politics. The course emphasizes the application of the

concepts by using the case studies and real life examples.

Course Objective: This course aims at developing in graduates the relevant conceptual

and practical skill competence, ability and willingness with empowerment of your

maturity to visualize new organizational systems, transform existing ones and take

leadership for project management initiatives under changing environment, all as part of

planned change.

More specifically, on completion of this course, the graduates will be able to --

1. correctly understand and use the basic concepts related to OD,

2. transform their ability to analyze facts, recognize organizational culture,

effectiveness, issues related to organization diagnosis, and apply applicable

theoretical and conceptual realities of OD,

3. perform effectively the organizational and environmental analyses,

4. make effective choices of required organization development and change (ODC)

interventions as part of planned change, and

5. contribute ethically in the process of organizational development and

transformation.

In addition to this all, the graduates will have opportunity to improve their interpersonal

and communication skills, problem solving skills, and more importantly, the leadership

skills required to manage the organizations in more competitive and dynamic work

environment.

Course Details: For the simplicity of teaching learning and meaningful classroom

discourses, the entire course has been transformed into five units of learning.

UNIT I: INTRODUCTION

Meaning of organizational development (OD), organizational development and change

(ODC), significance of OD/C in organizations, issues and challenges facing the job of

ODC today, outcomes of effective ODC interventions, evolution of various concepts and

models in OD, system approach to OD and historical development of OD.


UNIT II: DIAGNOSES FOR OD INTERVENTION

Meaning and importance of organizational diagnoses, models of organizational

diagnoses, open system model, diagnosing organizational systems, strategic diagnostic

postulates, methods of organizational diagnoses.

UNIT III: ORGANIZATIONAL CHANGE

Meaning and importance of organizational change, forces of organizational change,

classifications of change, resistance to change, managing change activities, motivating

change in organizations, creating a shared vision, developing and gaining political

support, managing transition, sustaining momentum, creating ODC initiatives,

managerial challenges and implications of organizational change.

UNIT IV: MANAGING PLANNED CHANGE

Meaning, forces, levels and classifications of planned change, managing planned change,

implications of planned change, theories and models of planned change, challenges and

managerial implications of planned change.

UNIT V: THE OD PROCESS

The OD process, OD practitioner skill competence requirements, personal process issues

in OD process, and practicum on OD interventions.

Teaching Learning Methodology

Structured class lectures, case studies, group project works, individual and group

presentation will be used as the dominant methods of teaching learning of this course.

Learning Performance Evaluation Criteria

1. Class participation: 50 marks [10% for final grading]

2. Take home assignments: 50 marks [10% for final grading]

3. Individual/group presentation: 50 marks [10% for final grading]

4. Case studies: 50 marks [15% for final grading]

5. Project work: 50 marks [15% for final grading]

6. Structured examinations: 100 marks [40% for final grading]

Tentative Days/Time of Teaching-Learning

Day Shift: Thursday, 10:30 AM to 2:30 PM [Commencing from July 9, 2015]

Evening Shift: Thursday, 5:45 PM to 9:00 PM [Commencing from July 9, 2015]

Total duration of course delivery: 6 weeks

Expected Academic Honesty

All the graduates attending this course at Global College International are strictly

informed to respect the global spirit and norms of intellectual property rights at all times,

with appropriate acknowledgement of the sources of information used while preparing

for this course, as plagiarism will be considered as an intellectual offence; apply APA

style guidelines for citation and referencing of the learning resources; and provide with

references for additional learning of the materials that they prepare for rest of members of

the learning community.


TABLE OF CONTENTS

UNIT I: INTRODUCTION.................................................................................................4

UNIT II: DIAGNOSES OF OD INTERVENTION…………………………………….21

UNIT III: ORGANIZATIONAL CHANGE…………………………………………….33

UNIT IV: MANAGING PLANNED CHANGE………………………………………..42

UNIT V: THE OD PROCESS…………………………………………………………..73


UNIT I: INTRODUCION

Learning Objectives

1. Understand the meaning and importance of organizational development.

2. Explore the various levels of organizational diagnoses as the foundation of ODC

interventions

3. Learn about the applications, relevance, values, assumptions and beliefs in ODC.

4. Understand the meaning and importance of organizational change and its impact

business.

5. Explain the historical development leading the emergence of the concept of OD.

6. Understand the implications of ODC.

7. Explore about the emerging issues and challenges in ODC in today’s dynamic

global business environment.

1.1. MEANING OF OD

Organization development and change (ODC) stands for promoting a more scientifically

planned approach to organizational development and transformation. Precisely speaking,

it serves for dual functions -- first, it is a professional field of social action in an

organizational setting, and second, it serves as a scientific inquiry to make the

organizational development interventions more evidence-based.

The bottom-line activities included within the scope of OD include team building with

top management in institutions, structural systems management and change, employee

job enrichment and enlargement, and creating and continuing with group and

organizational transformation.

OD is relatively a new field of pragmatic study that formally emerged in the 1950s and

1960s keeping in view the prime objective of improving organizations and people to get

them better, continually. In OD, the starting point is that when the leader identifies an

undesirable situation and seeks to change it. Its focus will be on making organizations

function better leading to total system change. Process orientation remains on action for

achieving results through planned activities. That’s it… there is no unifying theory; it

works on just models of practices. Thus, it may be referred to as an organization-wide

improvement strategy.

Organization development is an effort (1) planned, (2) organization-wide, and (3)

managed from top, to (4) increase organization effectiveness and health through (5)

planned interventions in organization’s “processes”, using behavioral-science knowledge

- Beckhard, 1969.

Organization development is a process of planned change – change of an organization’s

culture from one which avoids an examination of social processes (especially decision

making, planning and communication) to one which institutionalizes and legitimizes this

examination - Burke and Hornstein, 1972.


Organization development is a systematic application of behavioral science knowledge to

the planned development and reinforcement of organizational strategies, structures, and

processes for improving an organization’s effectiveness - Cummings and Worley, 1993.

Organization development is a planned process of change in an organization’s culture

through the utilization of behavioral science technologies, research, and theory - Burke,

1994.

What exactly OD focuses is about creating more conducive institutional culture,

improving the entire institutional processes, and transforming organizational design and

structure – all three to contribute effectively to improve quality of work life in an

organization.

Bruke (1982) has emphasized on improving organizational culture as the target of

planned change as the key to OD intervention. This scholar has argued that change

induces cultural shifts through the fuller utilization of behavioral science technology,

research and theory. French (1969) has placed higher emphasis on long-term interest of

organizational transformation by using consultants. Beckhard (1969) and Beer (1980)

have focused on generic functional process of OD initiated by the top management.

In the words of Edgar Schein, an organization is the planned coordination of the activities

of a number of people for the achievement of some common explicit purpose or goals

through the division of labor and function, and through a hierarchy of authority and

responsibility. Development is the act, process, result or state of being developed - which

in turn, means to advance, to promote the growth, to evolve the possibility or potential, to

further improve, or to enhance something.

This definition emphasizes two key concerns -- i. development may be an act, process or

an end-state, and ii. development means improving something in a continually

coordinated manner.

Keeping in view the concepts shared by these scholars, the term OD should be

understood as a systems approach to organizational behavioral science knowledge

relevant for planned development, improvement or transformation, reinforcement of

structures, people, process and strategies applicable for the improved organizational

effectiveness.

Thus, OD is the act, process or result of furthering, advancing, or promoting the growth

of an organization. In other words, OD may be defined as the collectively planned efforts

initiated by process specialists to help an organization to develop its diagnostic skills,

coping capabilities, linkage strategies -- in the form of temporary and semi-permanent

systems -- and a culture of mutuality. Simply, ODC provides with continuity to OD under

dynamic operating and governing environments.

A planned effort focuses on thinking and planning within and beyond the organizational

process climate and system. Mostly, the job of OD is initiated by process specialists who

have non-biased diagnostic skills -- data collection, processing and interpretation for


enhancing the organization’s coping capabilities -- problem solving, confrontation and

coping. An effective OD intervention also works on linking strategies by attempting to

align individual and organizational goals. To promote the culture of mutuality, an OD

intervention intends to fostering certain values and open and proactive systems that

comprise of openness, confrontation, trust, authenticity, pro-activeness, autonomy,

collaboration and experimentation (OCTAPACE) – these all serve as the key elements of

a vibrant learning organizational system.

More functionally, OD may be defined as a systems approach to establish OD relations,

diagnose the environment, people, processes and structural sets, develop feedback for

interventions, develop and implement interventions, monitor, evaluate and improve the

interventions so as to guarantee quality of work life in organization with sound impact to

the society at large.

1.2. KEY CONSIDERATIONS OF OD

Primarily, there are five key considerations in OD system intervention:

1. OD implies to the strategy, structure, and overall process of entire system. A

change program may be initiated aiming at any level of its strategy, structure or

process.

2. OD is based on behavioral science knowledge and practice related to the micro

concepts including leadership, work design, group dynamics, institutional

communication, and macro concepts including institutional strategy,

organizational design and international relations.

3. OD is primarily concerned with managing planned change.

4. OD is concerned with creation and reinforcement of change.

5. OD is concerned with improving organizational effectiveness by managing its

operation-wide costs and social relationships.

For any OD intervention to take place successfully, some of the key requisites include – i.

top management visioning, ii. continuous empowerment and improvement of learning

process, iii. team-based problem-solving approach, iv. collaborative management, and v.

highly effective work teams.

1.3. IMPORTANCE OF OD

Effective OD intervention in place will result in proactive organizational process climate

and culture conducive for learning organizational systems. Timely and effective

development and change initiatives will result in high level of organization-wide

productivity, improved level of employee job satisfaction as a result of pride of being

associated to such organizations. Similarly, the employee absenteeism and job turnover

rates will come down due to increased level of employee loyalty towards the work teams,

management and rest of stakeholders. Finally, these all results will further contribute to

organization’s institutional image in the society where it operates.

1.4. SIGNIFICANCE OF KNOWLEDGE OF OD

At the crux, effective OD knowledge and its intervention is highly relevant to address the

needs of organizational transformation whereby maintaining organization’s upper footage


in changing context of globalization, rapid evolution of information and technology and

taking benefit from its application in organizations, and pushing up managerial

innovations in organizations by transforming the traditional organizational structure and

designs into newer and more innovative forms, creating more functional alliances, and

maintaining robust communication and other functional communication within and

beyond organization.

1.5. OD VALUES, ETHICS & APPLICATIONS

OD Values: The entire functioning of a well managed OD interventions rely on basically

three value systems – i. humanistic values, ii. optimistic values, and iii. democratic

values.

Humanistic values in the sense that any OD intervention is initiated by creating a

functional human interface for the implementation. The socio-ethical considerations are

well thought up on before initiating any structural or procedural change. In dealing with

people, groups and organizational system’s approach thorough consideration is made

whether the intervention has any adverse effect upon the people working in that

organization, or if the intervention will have such effects upon any group of stakeholders

even outside the organization.

Each intervention for change is initiated with an optimistic vision that change will bring

in positive changes and will have no or very less adverse effect to the entire

organizational system and its stakeholders. The concept of OD is, in fact, deeply rooted

with the thought patterns that research, innovation and development are positive carriers

of organizational transformation and OD relies on these elements. Precisely, OD relies on

the concept of positive transformation with a positive hope for development.

For any OD interventions to take place in an organization, it should be initiated as a

collective mission rather than coming through one or two single individuals to make

things turn around. The democratic values in OD make it a more collective mission and

deeply rooted within the thought patterns of each individual and his or her expectations

for organizational change.

The above stated are the organizational values of OD intervention. Equally important is

the practitioner’s values for OD intervention. An OD practitioner is expected to work

being guided by a number of specific value systems which are grounded on effectiveness

and efficiency to produce cost-effective results with lasting impact, fostering open

communication with all agencies having common concern on change mission,

empowering people, group and organizational systems, working for enhancing the

organization-wide productivity, and helping to promote organizational participation in

different social avenues for impacting causes.

More thematically, Bennis (1969) has proposed with a set of six normative goals that an

OD interventionists should share. These include:

1. Improvement in interpersonal competence.


2. A shift in values so that human factors and feelings come to be considered

legitimate.

3. Development of increased understanding between and within work groups in

order to reduce tensions.

4. Development of more effective ‘team management’ that is, the capacity for

functional groups to work more competently.

5. Development of better methods of conflict resolution. Rather than the usual

bureaucratic methods which rely mainly on supervision, compromise, and

unprincipled power, more rational and open methods of conflict resolution are

sought.

6. Development of more organic rather than mechanical systems. This is a strong

reaction against the idea of organizations as mechanisms which managers ‘work

on’ like pushing buttons.

Similarly, Beckhard (1969) has prescribed several assumptions regarding the nature and

functioning of organizations held by OD interventionists. A few of them are as follows:

1. The basic building blocks of the organization are work groups or teams. Thus, the

basic unit of intervention should be the teams; not the individuals.

2. A more relevant goal of change is to reduce the inappropriate competition

between the parts of the organization and the development of a more collaborative

condition.

3. Decision-making in a healthy organization is located where the sources of

information are rather than in a particular role or level of hierarchy.

4. Organizations, their units, subunits, and individuals continuously manage their

affairs against goals. Controls are interim measurements, but not the basis of

managerial strategy.

5. One goal of a healthy organization is to develop generally open communication,

mutual trust, and confidence between and across levels.

6. ‘People support what they help create.’ People affected by a change must be

allowed to have active participation and a sense of ownership in the planning and

conduct of the change.

These all values have direct implications on dealing with people, groups and organization

on its way to transformation and prosperity.

Value-Driven Functions: Use OCTAPACE Situations in Sales/Marketing Functions

As suggested by French, Bell, and Vohra (1999), following are some of the

organizational value-laden examples of the application of OCTAPACE situations in

dealing with sales or marketing functions of an institution:

Openness

1. Inform the superiors in advance about the likely shortfall in targets to be achieved.

2. Communicate in time the market representative provided feedback to the

concerned product or service management team on effectiveness of the strategies

deployed.

3. Inform to the distribution units or systems regarding any outstanding or expiry of

products and services.


Confront – The Problem

1. Discuss with distribution function/channels regarding any non-availability of

stocks in any segment of the markets.

2. Defend the product/service-wise targets set based on potential of each market and

its segments.

3. Appeal or request to the R&D division for cost reduction of products/services in

comparison with competitors’ pricing strategies.

Trust

1. Restrict improper utilization of information and data available on the

product/service marketing strategies.

2. Appreciate the representatives for any suggestions made by them in regards with

product improvement, strategic change, etc.

3. Seek for delivery of the products/services as per the agreed schedule of supply.

4. Sales managers should follow-up on actions or problems as reported by the sales

force in the markets.

Authenticity

1. Sales managers should establish procedures for experts.

2. Avoid any sort of false or exaggerated sales forecast or production planning for

new products.

3. Set and apply more consistent criteria for selecting High Fliers/Experts for

investments.

4. Implement in-clinic performance as per the guidance of the superiors.

Proactive move

1. Prepare a focused Doctors’ list for new product or service to be launched.

2. Prepare contingency plans to maintain sales targets to be achieved, and to check

the counter-variations.

3. Initiate effective actions to reduce the expiry/breakage costs.

4. Recommend aggressive strategies to increase the market share of the

products/services.

Autonomy

1. Allow line managers to take decisions on investment on experts within the

framework of the policy.

2. Respect the rejection of new combination of goods and services by R&D

department.

3. Make realistic targets based on last year/business cycle performance supported by

the market/s.

4. Improve the quality of inputs/resources to the field by the help of market planning

team.

Collaborations

1. Departmental heads should identify the developmental needs of the sales force

with emphasis on their training needs.


2. Provide necessary inputs to the sales administration for quicker settlement of the

grievances of the field employees.

3. Follow-up joint accountability with employees of the concerned departmental

goals to remove fear of losing points in the final appraisal.

4. Initiate joint field working with the representatives.

Experimentation

1. Encourage newer marketing strategies for introducing newer products or services.

2. Identify suitable training or developmental programs for sales force and

effectively plan and administer them.

3. Deploy newer methods for capturing the field-wide effectiveness of the sales

representatives.

Ethics in OD: ‘Promise only what you can deliver’ is one of the biggest ethical roots in

OD intervention from the provider’s perspective. False claim and false promises will

finally damage the entire credibility and relationship.

A caring OD interventionist has to customize the services as per the requirements of the

client. The interventionist has to show him or herself in the form of ‘person selling work

is person doing the work’ to prove that the intervention is worth implementing. Thorough

teaching of the client on how to engage in OD will result in more effective impact and

relationship.

‘Service first’ should be the key mantra of an OD interventionist. An OD interventionist

should not try to sell his/herself short for fads; should try to figure out what the client is

looking for, or what they are willing for. Insourcing of solution and training leadership

for solution may not always be a good idea. An OD interventionist has to provide a first

service of external touch that binds with relationships.

Cost effectiveness has to be considered at every instance. Any extra cost to the client is

always an extra burden to his/her customers. Thus, an OD interventionist has to be

concerned on making services more cost effective for the clients.

Other equally importance ethical considerations may include no forceful change

intervention; create and promote non-collusion behavior; become true and honest to the

source/s of problems; give total credit of changes to the client; take on only those works

that you can handle; maintain your worth at every instance by noble deeds; remember!

Your whole system is the client only.

Applications of OD: The concept of OD is applicable for at least three levels of an

institutional system – individuals, groups, and organizational system.

Redesign of job, management of employee behavior, transformation of individual skill

competencies, etc. may be considered as applications of OD at individual level.


At group level, the OD interventions may be applicable for many purposes including

team development, group processes improvement, behavioral change communications

(BCC), conflict mitigation, promoting team leadership, etc.

The organizational level OD applications may include revisits on organizational thrusts,

promoting cultures, making technological changes, initiating intergroup interventions,

revisiting the organizational priorities and values.

1.6. EVOLUTION OF OD

Current practice in organization development is strongly influenced by those five

backgrounds and by the trends shaping change in organizations. The laboratory training,

action research and survey feedback, and participative management stems of OD are

evident in the strong value focus that underlies its practice. More recent results indicate

that the quality-of-work-life and strategic change backgrounds have greatly improved the

relevance and rigor of OD in practice. They have added financial and economic

indicators of effectiveness to OD’s traditional measures of work satisfaction and personal

growth.

Today, the field is being influenced by globalization and information technology trends

as well. OD is carried out in across the countries and among many high performing

organizations on worldwide basis. This is generating a whole new set of interventions as

well as adaptations to traditional OD practices. In addition, OD must adapt its methods to

the technologies being used in organizations. As information technology continues to

influence organization environments, strategies and structures, OD needs to manage

change processes in cyber space as well as face-to-face. The diversity of this evolving

discipline has led to tremendous growth in the number of professional practitioners, in the

kind of organizations evolved in OD, and in the range of countries within which OD is

practiced.

The expansion of the OD Network http://www.odnet.org, which began in 1964, is one

indication of this growth. It has grown from 200 members in 1970 to more than 3,700 OD

practitioners today. At the same time, Division 14 of American Psychological

Association, formerly known as Division on Industrial Psychology, has changed its title

to the Division of Industrial and Organizational Psychology. In 1968, the American

Society of Training and Development set up an OD division, which currently has more

than 2,000 members. In 1971, the Academy of Management established Division of

Organization Development and Change, which currently has more than 2,000 members.

Pepperdine University, http://bschool.pepperdine.edu, Bowling Green State University,

http://www.bgsu.edu, and Case Western Reserve University, http://www.cwru.edu,

offered the first degree program in OD in 1975 and Case Western Reserve University

began the first Doctoral programs in OD. Organization Development is now taught in

graduate and undergraduate levels in a large number of universities across the world.

In addition to the growth of professional societies and educational programs in OD, the

field continues to develop new theorists, researchers and practitioners who are building

http://www.odnet.org/

http://www.bgsu.edu/

http://www.cwru.edu/


the works of the early pioneers extending it to contemporary issues and conditions.

Included in the first generation of contributors are Chris Argyris who developed a

learning and action science approach to OD, Warren Bennis who tied executive

leadership to strategic change, Edga Schein who continues to develop process approaches

to OD, including the key role of organizational culture in change management, Richard

Beckhard, who focused attention on importance of managing transitions, and Robert

Tannenbaum who continues to sensitize OD to the personal dimension of participants’

lives.

Among the second generation contributors are Warner Burke, whose work has done

much to make OD a professional field, Larry Greiner who has brought the ideas of power

and evolution into mainstream OD, Edward Lawyer III, who extended OD to reward

systems and employee involvement, Anthony Raia and Newton Margulies who together

have kept out attention on the values underlying OD and what those mean contemporary

practice, and Peter Vill and Craig Lundberg continue to develop OD as practical science.

Included in the newest generation of OD contributors are Dave Brown whose work on

action research and development organizations has extended OD into community and

societal change. Similarly, Thomas Cummings’ work on sociotechnical systems, self

designing organizations and trans-organizational development has led OD beyond the

boundaries of single organization to groups of organizations and their environments.

Additionally, Max Elden’s international work in industrial democracy draws attention to

the political aspects of OD. William Passmore and Jerry Porras also have done much to

put OD on a sound research and conceptual base. Peter Block has focused attention on

consulting skills, empowerment processes and reclaiming individuality.

Others making important contribution to the field include Ken Murrel and Joanne

Preston, who have focused attention on the internationalization of OD. Sue Mohrman and

Gerry Ledford have focused on team based organizations and compensation. David

Cooper Rider has turned the world attention towards the positive aspects of

organizations. These academic contributors are joined by large number of internal OD

practitioners and external consultants leading at the fore fronts of organizational change.

Many organizations undertake a wide variety of OD efforts. In many cases, organizations

have been at the forefront of innovating new change techniques and methods as well as

new organizational forms. Larger corporations that have engaged in organizational

development include General Electric, Boeing, Texas Instruments, American Airlines,

DuPont, Intel, Hewlett Packard, GTE, John Hancock Mutual Life Insurance, Polariod,

Ralston Purina, General Foods, Procter and Gamble, IBM, TRW Systems, Bank of

America and Cummins Engine. Traditionally, much of the work was considered

confidential and not publicized. Today, however organizations have gone public with

their OD efforts, sharing lessons with others.

OD work is being done in schools, communities and local, state and federal governments.

A recent review of OD projects was directed primarily at OD in Public Administration.

Extensive OD work was done in the armed services including the Army, Navy, Air Force


and Coast Guard, although the OD activity and research has declined significantly with

the reduction of the size of military. Public schools began using both group training and

survey feedback relatively early in the history of OD. Usually, the projects took place in

suburban middle schools, where stress and strains of urban environment were not

prominent and ethnic and socioeconomic development between and consultants and

clients were not high. In more recent years, OD methods have been extended to urban

schools and to colleges and universities.

Organization development has been increasingly internationalized. It has been

extensively applied in Canada, Sweden, Norway, Germany, Japan, Australia, Israel,

South Africa, Mexico, Venezuela, The Philippines, China, Hong Kong, Russia, New

Zealand and the Netherlands. In fact, there is not a single country in this world, which

does not apply OD in its mission to public sector reform and transformation. Nepal is

currently undergoing a massive nation-wide reform.

1.7. A SYSTEMS APPROACH TO OD

The OD approach to change treats the organization as a system. A system is an orderly

group of logically related parts, principles and beliefs. Alternatively, it is a grouping or

arrangements that relate or interact with each other in such a way to form a whole system.

Thus, this approach has the following characteristics:

1. OD serves as a total view, not a limited view.

2. OD considers the relationship between the organization and the environment and

the internal dynamics of the organization.

3. OD focuses on transformation of teams -- temporary, semi-permanent and

permanent through continuous improvement.

4. Interpersonal communication is one of the central aspects of OD interventions in

place.

5. The individual development dimensions of OD interventions include self

awareness and self acceptance by developing individual skills, knowledge and

ability to lead the change initiatives in organizations.

1.8. HISTORICAL DEVELOPMENT OF OD

The concept of OD of the present day practice emerged from five major evolutionary

backgrounds, known as stems -- i. laboratory training background, ii. action research and

survey feedback background, iii. participative management background, iii. productivity

and quality-of-work life background, and iv. strategic change background.

The first stem was the development of National Training Laboratories (NTL) that

initiated for the development of training groups known as T-groups. The second stem

emerged out of classical action research works by social scientists who were interested to

apply research in managing institutional change. The third step is related to Rensis

Likert’s application of participative management used to enhance the organizational

effectiveness achieved through organizational restructure and design. The fourth stem is

related to gaining quality of work life and productivity. Finally, the fifth and the latest

stem of development advocates on strategic change and organizational transformation.


1. Laboratory Training Background: In the summer of 1946, Kurt Lewin and his

associates working at Research Center for Group Dynamics at the Massachusettes

Institute of Technology (MIT) were asked by the Connecticut Interracial Commission

and the Committee on Community Interrelations of the American Jewis Congress for

help in research on training community leaders. As it applies with the concept of working

with small and unstructured training groups in which the participants learn through

interaction with the group members, a workshop was developed, and community leaders

were brought together to learn about leadership and to discuss upon different problems

and challenges.

As an integral part of T-group intervention, every day the researchers sat with the training

group participants and discussed with the social leaders on the basis of various behaviors

and group dynamics they had observed. Though they were reluctant in the beginning,

gradually the community leaders started to take it positively when asked to sit for

feedback sessions. In this way, the first T-group was formed and used for exploring their

personal behaviors and group dynamics, the prevailing problems and other challenging

issues. From this first T-group experiment, the researchers drew two key conclusions – i.

the feedback about the group interaction was a rich learning experience, and ii. the

process of group building had potential of learning that could be transferred to ‘back-

home’ situations.

As a highly positive result of this experiment, the Office of Naval Research and the

National Education Association provided financial support to form the National Training

Laboratories, and Gould Academy in Bethal, Maine, was selected as a site for further

work and since then Bethal has played important part in NTL. The first Basic Skill

Groups were offered in Summer, 1947. As a result of success of this intervention, the

Carnegie Foundation financially supported in 1948 and 1949 giving a permanent program

for NTL within the frameworks of National Education Association.

An experimental shift appeared in the 1950 as attempts were made to have T-groups in

the morning and cognitive-skill groups (A-groups) in the afternoon. However, the staff

found that high level of carry-over from the morning sessions turned the afternoon A-

groups into T-groups, despite the resistance of the afternoon staff members, who were

committed to cognitive skill development. This all supported for the commencement of a

new decade of learning experimentation and frustration, especially in the attempt to

transfer skills learned in the T-group setting to the ‘back-home’ situation.

As a result of the T-group interventions, at least three trends emerged in 1950s – i.

emergence of regional laboratories, ii. expansion of summer program sessions to year-

around sessions, and iii. expansion of T-groups into business and industry, with NTL

members becoming increasingly involved with industry programs. Later, the application

of T-group techniques in organizations gradually evolved as a means of effective team

building and making work groups more effective in accomplishing their assigned tasks.

For further exploration of managerial implications of the T-groups, main credit goes to

McGregor and Beckhard. Douglas McGregor at Union Carbide of Herbert Shephard and


Robert Blake at Esso Standard Oil, now Exxon, and McGregor and Richard Beckhard at

General Mills used these training groups as more effective means of ‘organization

development’, and equally important for employee and industrial relations.

2. Action Research and Survey Feedback Background: In 1940s John Collier, Kurt

Lewin, and William Whyte were involved in the second movement of development

leading to the emergence of OD as a practical science that heavily relies on action

research and survey feedback. The study team identified that the research needed to be

closely linked to the actions of organizational members so as to manage change more

effectively.

As part of working strategy of the study team a collaborative effort was made by the

organizational members and the team social scientists to collect relevant research data

about organization’s functioning to analyze it for the causes of problems and corrective

measures to be taken so as to address the problems more effectively. After

implementation of the corrective measures suggested through research, further research

was conducted to assess results. Such cycle continued with a number of repetitions.

The action research results appeared to be instrumental in two-fold – i. the organizational

members who participated as the units of study in the action research were able to use the

research results on themselves to guide their managerial action for organizational

development and change, and ii. the social scientists were able to study the entire process

to derive new knowledge that could be used elsewhere.

The key components of the action research included i. systematic collection and analyses

of survey data, and a more robust feedback system to feed the information back to

organizations, ii. closer monitoring of the effects of the implementation of the feedback

and tracking the effects, and iii. closer alignment of research with implementation process

as a continued intervention. Figure 1.1 presents with a set of interrelated activities

performed to accomplish the task of action research as a system’s approach.

Figure 1.1: Process of Action Research

1 Preliminary

Diagnoses

3Data

Feedback

4Exploration

of Information5

Action Planning

6Action

7Evaluation

2 Data

Gathering


As presented in figure 1.1, action research-based OD intervention comprises of at least

seven activities performed in a continually cyclic manner. These actions follow a number

of coherent steps that involve preliminary diagnoses, data gathering by observation, data

feedback or verification and confirmation, exploration of information for decision

making on change, action planning for change, implementation of change initiative,

evaluation of the effects of change initiatives, and repeating the cycle forever, always.

Lewin has claimed that there is no action without research, and no research without

action.

A few of the pioneering and notable action researches of that time included – i. the work

of

Lewin and his graduates at the Harwood Manufacturing Company, ii. the classic research

by Lester Coch and John French on overcoming resistance to change; this study

supported in a great deal in bringing change in action through team management skills,

iii. Whyte Hamilton’s study on Chicago’s Tremount Hotel, and iv. Collier’s efforts to

apply action research techniques to improving race relations when he was the

Commissioner of Indian affairs from 1933 to 1945. These all studies contributed in a

great deal to establish action research as an integral element to effective organizational

change. Today, action research serves as a backbone of most of the OD interventions in

organizations.

Following the death of Lewin in 1947, his Research Center for Group Dynamics at MIT

moved to Michigan State University and joined with the Survey Research Center team as

part of Institute of Social Research. The team was headed by Rensis Likert, a well known

behavioral scientist of the era. By that time, Likert had already pioneered in developing

scientific approaches to attitude surveys. His doctoral dissertation at Columbia

University, “A Technique for the Measurement of Attitudes,” which was crafted on his

very popular five-point rating scales known as Likert’s Rating Scales.

In an early study of Institute of Social Research, Likert and Fayol Mann administered a

companywide survey of management and employee attitudes at Detroit Edison taking a

period of over two years beginning in 1948. Three sets of data were developed – i.

viewpoints of 8,000 nonsupervisory employees about their supervisors, promotion

opportunities, and work satisfaction with fellow employees, ii. similar responses from

first-line and second-line supervisors, and iii. information from higher levels of

management.

The feedback process that evolved through this research was an ‘interlocking chain of

conferences.’ The major findings of the survey were first reported to the top management

and then transmitted throughout the organization. The feedback sessions were conducted

in task groups, with supervisors and their immediate subordinates discussing the data

together. Although there was hardly any research-based evidence already established, the

research team intuitively believed that this was a powerful process for initiating change in

organizations.


In 1950, eight accounting departments asked for a repeat of the survey, which ultimately

generated a new cycle of feedback meetings. Out of these departments, feedback

approaches were used in four departments with varying methods of administration, with

two of the remaining departments receiving feedback only at the departmental level. As a

result of frequent change in key personnel in rest of two departments, nothing was done.

Another follow-up study revealed more significant and positive changes. For example,

the employee job satisfaction was higher in departments that received feedback compared

to that of non-receiving ones. Following those findings, Likert and Mann derived several

conclusions about the effects of survey feedback on organizational change. This led to

extensive application of survey feedback methods in a variety of settings. The researchers

used common pattern of data collection, data feedback, action planning, implementation

and follow-up data collection in both action research and survey feedback.

3. Participative Management Background: The advent of laboratory-based T-group

research stem and action research/survey feedback stem opened up a number of

managerial implications with advancement in thinking on intellectual capital dimension

of an organization. These studies were conducted with a belief that a human relations

approach represented a one-best-way to manage organizations. This belief was further

exemplified in a research that associated Likert’s Participative Management, widely

known as ‘Likert’s System Four’ style with organizational effectiveness. The alternative

management characters in organizations envisioned in Likert’s System Four types of

management included i. exploitive authoritative systems (System 1), ii. benevolent

authoritative systems (System 2), iii. consultative systems (System 3), and iv.

participative group systems (System 4). So, what’s the difference between these all?

Subsequent discourses provide some information to address this query.

Exploitive authoritative systems (System 1): The leaders and managers of this character

exhibit an autocratic, top-down approach; employee motivation is based on the effect of

punishment, coercion and occasional rewards; communication is primarily one-way,

downward with hardly some evidence of lateral interaction and teamwork; decision-

making and control is heavily centralized; these all cause for only a little or mediocre

level of performance.

Benevolent authoritative systems (System 2): With hardly some exceptions, System 2

characters are almost similar to that of System 1. Management is more paternalistic in

this system; employees are allowed a little more interaction, communication, and

decision-making but within the premises defined by the management. Employee

performance is slightly better than that of System 1 management.

Consultative systems (System 3): These systems increase employee interaction,

communication and decision-making. Though the employees are consulted about the

problems and required decisions, management still reserves for making final decision-

making. Employee productivity and motivation is fairly good and employees are fairly

satisfied with the organization and its leadership.


Participative group systems (System 4): These are almost opposite of System 1 as the

entire working methods are designed around group methods of decision-making and

supervision. This system fosters a high degree of member empowerment by means of

involvement and participation. There is wider evidence of work group involvement in

setting goals, making decisions, improving methods, and appraising results. There is high

evidence of all-directional communication and organizational decisions are linked

throughout all departments and operational units by overlapping group membership.

System 4 is witnessed with high level of productivity, quality of work life and member

satisfaction.

4. Productivity and Quality-of-Work Life (QWL) Background: The development of

productivity and QWL background in OD has primarily happened in two phases of

evolution. The first phase of development is described by the original projects developed

in Europe in the 1950s and their emergence in United States in the 1960s. Based on the

research of Eric Trist and his associates at Tavistock Institute of Human Relations in

London, the early practitioners in UK, Ireland, Norway and Sweden developed the work

designs aimed at better integrating technology and people. These programs provided with

ample room for joint participation of the union and management making sure that

employee is given with high discretion in work design, task variety and feedback on

operational results.

In addition to bringing in technology at workplace, the concept of QWL also brought

forth the formulation of self-managed work groups as a new form of work design. The

groups were composed of multi-skilled workers exercising ample amount of autonomy to

design and manage their own task performances.

Soon after, these programs migrated to United States with adoption of a variety of

concepts and techniques making it a new blend rather than taking them purely as

European models. Then QWL was first defined as people’s reaction to work in respect

with individual outcomes, for example, job satisfaction and mental health as the entire

concept of QWL was focused on human dimension and its consequences.

Further, it was defined as an approach or method as it was considered as system of

scientific techniques and approaches used for improving work. Job enrichment, self

managed teams, and labor-management committees came in action as a result of

continued focus on QWL. The then corporate conglomerates including General Motors

used this concept extensively and the relevance was further testified.

The excitement and popularity of the concept of QWL in US lasted till 1970s, as other

equally pressing issues, such as inflation and energy costs, diverted national attention.

From 1979 onwards, the second phase of QWL started with focus on low cost and high

quality philosophy, basically from the Japanese origin of total quality management

(TQM) practices in management.

As a result, the original school of thought on QWL was revisited with the emphases on

number of other features, such as job satisfaction, reward system, work flows,


management styles, physical work environment management, operational focus,

economies of scale, low cost strategy, and so on.

Today, we have quality circles, quality monitoring, confirmation and improvement

programs, and proper process monitoring and feedback systems to constantly improve

every type of operational process in organizations.

5. Strategic Change Background: The most recent influence on OD interventions is the

strategic change background that evolved along the realization of the importance and

influence of macro constructs of organizational management. As organizations and the

environmental forces surrounded them became more and more complex and

unpredictable, the scales of intensity and diversity of organizational increased

significantly. Strategic change stem of OD intervention came in existence to address this

need.

Practically, strategic change involved improving the alignment among an organization’s

environment, strategy, and organization design. Strategic change interventions include

the efforts to improve both the organization’s relationship to its environment and the fit

between its technical, political and cultural systems. Need for strategic compliance was

further reinforced as a result of regulatory compliance requirements, technological

breakthrough, and globalization of human resource practices.

One of the first applications of strategic change was Richard Beckhard’s use of open

systems planning. In this system, Beckhard has proposed that based on the organization’s

core mission, the differences what the environment demanded and how organization

responded could be reduced to improve performance. Following this concept, many

change experts have proposed a variety of large-scale or strategic change models by

recognizing the need of change at different levels of organization including its core

values and cultural dimensions.

The strategic change background has significantly influenced OD interventions. For

example, implementing strategic change requires OD practitioners to be familiar with

competitive strategy, finance, marketing, team building, action research, and survey

feedback. This all demanded more qualified, dynamic, and skilled as well as more

futuristic OD interventionists.

Unit-end Exercise

1. Define OD and discuss its importance and functional relevance in organizations

today.

2. Do you think the concept of OD is applicable for only the organizations that are

already in business? Discuss.

3. Elaborate with relevant institutional examples of the key considerations of OD.

4. OD in action may be considered as a behavioral science-based intervention in an

organization. Comment.

5. Discuss briefly the cost and benefits of OD interventions in an organization.

6. How do you relate the concepts learning organization and OD interventions?


7. Discuss briefly the OD values, their implications and different levels of

applications of OD values in organizations.

8. As an OD interventionist, how would you like to make your services more

ethical? Discuss.

9. Discuss briefly the system approach to OD and explain its relevance in

organizational change and development.

10. Present a brief account of various evolutionary insights of OD as discipline

governing institutional transformation.

11. Briefly discuss the various stems of backgrounds of the development of OD as an

applied science.


UNIT II: DIAGNOSES FOR OD INTERVENTION

Learning Objectives

1. Assess the environment posing organizational development.

2. Understand the significance and various technical aspects and process of

organizational diagnoses to initiate relevant OD interventions.

3. Perform organizational and environmental diagnoses in real-life ODC

intervention cases.

2.1. DIAGNOSING THE ORGANIZATIONS

Preliminary understanding of basic concepts before diagnoses

I. What is Diagnosis?

When does diagnosis occur?

What is diagnosis?

Are we there to cure a symptom?

What is the underlying value of OD?

Explain how the “medical model” of consulting can get mixed up with OD.

II. Need for Diagnostic Models

Why are models important?

III. Open Systems Model

Explain the open systems model

What are the major parts of an open systems? And what holds each of these parts

together?

What are boundaries? And what is equifinality?

What is alignment?

IV. Diagnosing Organizational Systems

Units of analyses in organizations.

For example:

1. What are the three major levels of any organization, which we will refer to as units of

analyses?

2. What is the relationship among these units? Say, does the organization impact

individuals or vice-versa? To what extent does an individual unit of analysis impact

the others?

3. Can we go across levels of analyses when conducting research? Say, can we study

organizational effectiveness and presume that the findings are applicable to the

individual level? When IBM was at its all time best, was every employee at his/her all

time best?

4. What might the practitioners diagnose at the organizational level?

5. What might the practitioners diagnose at the group level?

6. What might the practitioners diagnose at the individual level?

7. How would you determine these areas for improvement?

8. Why are OD practitioners sought?


9. What methods would we use to diagnose these areas for improvement or change?

10. When diagnosing an organization, groups, or individuals, what must we look for?

2.2. WEISBORD’S SIX-BOX MODEL

To perform organizational diagnoses in a more holistic manner, Weisbord has presented

with a more pragmatic model of inquiry having focus on as many as six areas of

assessment – 1. purpose, 2. relationships, 3. leadership, 4. structure, 5. extent of helpful

mechanism, and 6. rewards – known as boxes of analyses, as presented in figure 2.1.

In the first box, as presented in figure 2.1 below, Marvin Weisbord has suggested a

simplified understanding that assessment of organization’s purpose includes knowing

about its mission, vision, objectives, goals and development and business strategies. This

assessment makes clear about the firm’s reason of existence, intended business or service,

expected market position occupancy of the firm and existing business realities that the

firm has gained. This is all about knowing the purpose of the firm.

Figure 2.1: Weisbord’s Six-Box Model

In the box second, we have to assess the existing team structure, power and position

exchanges, patterns of communication, connecting and operating technologies in use, and

leader-member relationships within team structures.

In the box three, we assess the entire organizational leadership and its effectiveness in

terms of trustworthiness among the members across the departments, leadership

orientation on people and productivity, vision for success, expected external support for

organizational transformation.

E N V I R O N M E N T

PURPOSES Q1. What business is the

firm in?

RELATIONSHIPS Q2. How do they

manage conflict among people, and also with

the technologies?

HELPFUL MECHANISMS Q5. Have they adequately coordinated the operating

technologies?

REWARDS Q6. Do all needed tasks

have incentives?

STRUCTURE Q4. How do they divide

up the work?

LEADERHIP Q3. How does someone in this organization keep the

boxes in balance?

E N V I R O N M E N T

E NV I RONME N T

E NV I RONME N T


Equally important component of the preliminary organizational diagnosis is to assess the

nature and content of job design, structuring, division and allocation of resources across

the operating units and corporate center. Such an assessment helps for the identification

of organization’s immediate change and developmental needs. Wisebord’s box four

serves for this purpose.

In the box five of organizational assessment, we need to assess the available information

system and operating technologies and their effectiveness in terms of coordination. We

have to check how the available technologies can be adequately coordinated so as to

make each unit capable and accessible to take benefit of such technologies for improving

the overall organizational operating system at large.

Finally, assessment of the existing reward and punishment system and its effectiveness in

motivating each task performed by all units of the organization is another equally

important dimension of preliminary diagnosis of the organization, as outlined in the sixth

box of assessment.

On top of these six boxes, we also have to see from the macro environmental perspectives

so as to make a firm understanding about the existing national political legal, socio-

cultural and economic frameworks which govern the entire business system. Equally

important is to assess the technological, broad demographic and global contextual

developments and changes outside the organization and sometimes beyond the countries

of its operation. Such an assessment is instrumental to identify the likely environmental

support as well as their probable resistances against the firm.

We must ask TWO questions for everything while performing diagnoses:

1. Are the arrangements and processes called for by the formal system correct for

each box?

2. Are the arrangements and processes developed by the informal system correct

for each box?

2.3. LEVEL-WISE STRATEGIC DIAGNOSTIC POSTULATES

Basically, organizational diagnoses comprises of systematic observation of overall

organizational process climate and behavioral exchanges at least there levels – individual,

group and organizational system at input and process transformation level and also

observation of end-results and outcomes of the results at output level. Study of

organizational behavior (OB) exchanges provides with better understanding of such

insights. A systems model of OB comprises of the systematic portray of various

behavioral exchanges of behavioral constructs at individual, group and organizational

systems levels so as to assess the impact of such exchanges on expected organizational

outcomes (Robbins, Judge, & Sanghi, 2009). Figure 2.2 best illustrates the relationship

between various dependent and independent constructs at different levels of analyses.

Here, as presented in figure 2.2, the basic assumptions in OB comprise that a more

rationalized exchange or execution of any of these variables at each level will have

positive impact on functioning of rest of the variables in all levels and finally such a


system will yield the highest level of institutional productivity, employee job satisfaction,

reduced level of absenteeism and turnover of the employees, and increased institutional

goodwill and image as the expected OB Outcomes.

Organizational behavior can be viewed from different levels of analysis. At one level, the

organization can be viewed as consisting of individuals working on tasks in the pursuit of

organizational goals. A second level of analysis focuses upon the interaction among

organizational members as they work in teams, groups and departments. Finally,

organizational behavior can be analyzed from the perspective of the organization as a

whole system.

Figure 2.2: Systems approach to organizational behavioral exchanges

Adapted from: Robbins, Judge, & Sanghi (2009). Organizational Behavior. (13th

ed.). p.

37.

Basically, the analyses of organizational behavior is performed at three levels of human

input and transaction leading to organizational outcomes as the collective results of

Individual Level Variables Personal demography Biographical characteristics Values and norms Attitudes Personality Perception Skill competence Learning Individual decision-making

H u m a n I n p u t s

Motivation

Group Level Variables Communication Work groups Work teams Interpersonal conflict Group decision-making

Leadership

Systems Level Variables HR policies/practices Structure and design Change and development Organizational culture Work stress Power and politics

Strategic thrusts

Change or Transformation

Expected OB Outcomes Increased productivity Increased job satisfaction Decreased turnover Decreased absenteeism

Feedback

Corporate Citizenship


behavioral exchanges at each level of OB system. The study of individual characteristics,

interpersonal relationship, group dynamics, intergroup behavior, and organizational

systems level operations’ analyses are the key levels of analyses in OB.

The human input level analysis specializes on how the improvement of individual human

characteristics including interpersonal characteristics influences the rest of the exchanges

or transformation leading to desired institutional outcomes.

Organizational behavior can be studied in the perspective of individual members of the

organization. This approach to organizational behavior draws heavily on the discipline of

psychology and explains why individuals behave and react the way they do to different

organizational policies, practices and procedures.

Within this perspective, psychologically based theories of learning, motivation,

satisfaction and leadership are brought to bear upon the behavior and performance of

individual members of an organization. Factors such as attitudes, beliefs, perceptions and

personalities are taken into account and their impact upon individuals’ behavior and

performance on the job is studied.

Similarly, the transformational level analyses studies the impact of group dynamics and

systems approach to institutional development and leadership affecting its desired

outcomes.

People rarely like to work independently in organizations. Rather, they have to

necessarily work in coordination to meet the organizational goals. This frequently results

in people working together in teams, committees and groups. How do people work

together in groups? What factors determine whether group will be cohesive and

productive? What types of tasks could be assigned to which groups, and of what

composition? These are some of the questions that can be asked about the effective

functioning of groups in organizations. An important component of OB involves the

application of knowledge and theories from social psychology to the study of groups in

organizations.

Finally, outcome level analyses attempts to establish the direction and magnitudes of each

OB outcome achieved as a result of rationalized input and transformation system within

the organization.

Some OB researchers take the organization as a whole as their object of study. This

macro perspective on OB draws heavily on theories and concepts from the discipline of

'sociology'. Researchers seek to understand the implications of the relationship between

the organization and its environment for it functional effectiveness. Emphasis is placed

upon understanding how organizational structure and design influences the effectiveness

of an organization. Other factors such as the technology employed by the organization,

the size of the organization and the organization's age are also examined and their

implications for effective organizational functioning are explored.


These different perspectives on the study of OB are not in conflict with one another.

Instead, they are complementary. A more complete understanding of the nature of

organizations and the determinants of their effectiveness requires a blending of

knowledge derived from each perspective.

In the case of OD intervention, such levels of analyses will slightly altered. In fact, there

are three levels of organizational analyses to be used while performing the organizational

diagnoses – i. organizational level diagnoses, ii. group level diagnoses, and iii. individual

level diagnoses. Following are the key elements of analyses:

i. Organizational Level Diagnoses

Inputs

1. What is the company’s general environment?

2. What is the company’s industry structure?

Design Components

3. What is the company’s strategy?

4. What are the company’s technology, structure, measurement systems, and

human resources systems?

5. What is the company’s culture?

Outputs

6. How is financial performance measured?

7. How is efficiency determined?

8. How does the company assess stakeholders’ satisfaction with having met

expectations?

Assessment/Alignment

9. How well is the fit between the inputs and the throughputs (strategic

orientation)?

10. How well do the design components align?

ii. Groups and Jobs Level Diagnoses

Inputs

1. What is the level of person-job-fitness?

2. What is the level of member motivation?

3. To what extent do they trust to their leadership?

4. Is the group size/membership rightly enough?

5. Do they have enough resources?

6. Are the members rightly trained? Experienced and interested in the job

assigned?

Design/Job Dimension

7. How clear are the group’s goals?

8. What is the group’s task structure?


9. What is the composition of the group?

10. What are the group’s performance norms?

11. What is the nature of team functioning in the group?

Outputs

12. How is performance measured?

13. How is QWL?


14. How well is the fit between the inputs and the design components?

15. How well do the design components align?

iii. Individual Level Diagnoses

Inputs

1. What is the design of the larger organization within which the individual jobs

are embedded?

2. What is the design of the group containing the individual jobs?

3. What are the personal characteristics of jobholders? Person-job-fitness…

Design/Job Dimensions

4. How much skill variety is included in the jobs?

5. How much task identity do the jobs contain?

6. How much task significance is included in the jobs?

7. How much feedback about results do the jobs contain?

Outputs

8. What are employee attitudes and feelings toward the organization?

9. How do employees perceive their relationship with their employing

organization?


10. How well is the fit between the inputs and the job design components?

11. How well does the job design fit the personal characteristics of the

jobholders?

The key elements of operation in any organizational system are the people, structure,

technology and the environment in which the organizations operate (Rijal, 2012).

People: People make up the internal and social system of the organization. They consist

of individuals and groups. The groups may be big or small, formal or informal, and

official or unofficial. Groups are dynamic and they work in the organization to achieve

their objectives.

Structure: Structure defines the formal relationships of the people in organizations.

Different people in the organizations are performing different type of jobs and they need

to be treated such a way that their work can be effectively coordinated.


Technology: Technology such as machines and work processes provide the resources

with which people work and affects the tasks that they perform. The technology used has

a significant influence on working relationships. It allows people to do more and work

better but it also restricts people in various ways.

Environment: All organizations operate within an external environment. It is the part of a

larger system that contains many other elements such as government, society, market,

and other sub-systems. All of these mutually influence each other in a complex system

that creates a context for a group of people.

2.4. METHODS OF DIAGNOSES

The organizational diagnoses can be performed using a blend of at least four methods – i.

key informant interviews, ii. administration of survey questionnaires, iii. observation of

people, process and overall organizational way of operations, and iv. review of

organizational records that may include documents, accounts, journals, legal papers,

regulatory policies, newspapers, etc.

2.5. VALUES, ASSUMPTIONS & BELIEFS IN OD DIAGNOSES

Organizational Values and Assumptions: The concept of organization development

closely works on a set of three distinctive values and assumptions.

Humanism: This assumption enforces to respect for people, give importance of the

person’s intrinsic worth, strive to create the potential for growth, maintain person-job

fitness, and induce change for individual development.

Optimism: The general assumption is that the people are good and they take

organizational initiatives more rationally. And thus, the progress is possible and desirable

through collective and genuine efforts guided by the philosophy of ‘together, we can.’

Democracy: Promotion of right to be free from misuse of power; justice, and equity;

empowerment; equality and inclusion will drive organization towards the destiny of

success.

Practitioner’s Values and Assumptions: The rigorous involvement in the OD

interventions sharpens expert’s working efficiency and effectiveness. It harmonizes with

prominent skill competencies for open Communication and confrontation. It helps

experts gaining success in empowering people and empowering equity in action. It also

promotes the experts with tangible roles to enhance organizational productivity,

participation and mutual trust.

Beliefs: The entire concept of OD intervention relies on a single belief that change is

only the permanent facet of a living organization and rest of all things are temporary and

they need be changes or transformed at certain point of time, always.


2.6. AGENCIES RESPONSIBLE IN OD

Organization development and change are synonymous and change is almost impossible

without consent and commitment of organizational leadership, its key managers and rest

of employees. Similarly, the role of OD thematic experts is equally important to excel

organizational transformation by means of OD intervention.

Sometimes, the macro environmental requirements also act as one of the most powerful

drivers of OD interventions. For example, if the Government of Nepal effectively

implements the town development policies whereby making it mandatory for all high rise

buildings to have electrical elevators, the builders of such buildings will be compelled to

change their architectural designs by complying the stated norms.

In fact, all the educational institutional facilities have to be easily assessable to all type of

people, including those who have physical difficulties. What, if the Government of Nepal

implements such a policy in near future?

2.7. PROFESSIONAL ETHICS IN OD

An OD interventionist should not promise what he/she cannot deliver, or what is

impossible; promise only what you can deliver.

An OD interventionist should act as a caring partner of the organization. Service

customization, personal selling, teaching and coaching client how to engage in OD is

very a much essential duty of an OD interventionist.

Service first should be the guiding principle of each OD expert, who should not sell

him/herself short for fads. An OD consultant should always think upon the issue that a

consultant should deliver only what the client is willing to buy. But the offer should not

try to replace of the people working out there since long as organization’s loyal internal

members.

Providing training to leadership isn’t necessarily a good solution in OD interventions.

Thus, an OD interventionist should never approach with proposals to train the

organizational leadership for taking up OD initiatives.

2.8. OD IMPLICATIONS

OD implications should be viewed from at least four perspectives, viz. i. implications for

individuals, ii. implications for groups, iii. implications for organizations, and

implications from the perspectives of operating environment.

Individuals: The successful OD experts should be able to listen to the people, support

them in their professional discourses, challenge the failure and resistance, encourage for

innovation, participation and improvement, allow failure to happen – in times required,

remove barriers to change, induce autonomy, inculcate responsibility, introduce high

performance standards and reward systems.


Most individuals believe in their personal growth. Even today, training and development,

promotion to the next higher position sometimes intends to dominate the organizational

philosophy. OD managers need to be more watchful in such cases.

Majority of the people are desirous of making greater contributions to the organizations

they are serving. Achievements of organizational goals are however, subject to

limitations or environmental constraints. It is for the organizations to tap the skills that

are available in abundance.

Following are some of the strategies to be adopted to gear up employee morale through

OD interventions at individual level:

• Ask questions to resolve doubts.

• Listen to superior’s advice.

• Support employees in their venture.

• Accept challenge.

• Leaders should encourage creativity and promote risk taking.

• Give additional responsibility to subordinates.

• Set high standards of quality.

• Empower employees.

• Initiate suitable reward system that are compatible to or more than the industry

norms.

Groups: Let teams flourish, leaders should invest time and effort in developing effective

work teams as team leadership guides and develops interactions toward a goal.

One of the most important factors in the organization is the ‘work group’ around whom

the organization functions. This includes the peer group and the leader (boss). More

people prefer to be part of the group because the group accepts them. Most of the people

are capable of making higher contributions to the group’s effectiveness. But it all requires

formation of effective groups.

Following are the strategies required to be adopted for group development based on the

above assumptions:

Invest in training and development of the group. Money and time spent on it is an

investment for the organization. Leaders should also invest in development of

skills and thus help create a sound position of organizational climate.

Let the team flourish. Teams are the best approach to get the work done. Apart

from the above teams enjoy emotional and job satisfaction when they work in

groups.

Leaders should adopt team leadership style and not autocratic leadership style. To

do this, jobs should be allotted to the team and not to the individual/s.

It is not possible for one individual (leader) to perform both, the leadership and

maintenance functions. It is therefore necessary for the team members to assist

leader in delivering his or her duties.

Groups should be trained in conflict management, stress management, collective

decision-making, collaboration, and effective interpersonal communication. This


will improve organizational effectiveness. Empowerment of groups is the corner

stone of the successful organizations.

Leaders should pay adequate attention to the feelings of the employees. It should

be understood that suppressed feeling and attitudes adversely affect problem-

solving, personal growth and job satisfaction.

Development of group cohesiveness is equally important to make a group more

effectively functional.

Organizations: People make the workplace, so they are the most precious assets of it.

Encourage cooperation and competition; induce quality work cultures and practices;

provide functional autonomy; power and position to the deserving people, who in turn,

will give the results in the form of performance.

Some of the useful strategies to be opted to make organizational implications more

effective include the following:

Create and promote organization-wide learning culture.

Adopt win-win strategy for a sustained organizational growth.

Create cooperative dynamics rather than competitive organizational dynamics in

the organization.

Try to meet and exceed the needs and aspirations of the employees in the

organization. This leads to greater participation of the employees. Organizations

should adopt developmental outlook and seek opportunities in which people can

experience personal and professional growth. Such orientation creates a self-

fulfilling prophecy.

People must be treated with due respect and considered important. The credit of

success must be given to the employees unconditioned.

Promote organizational citizenship.

In real business, it is possible but not so easy to create organizations that are humane,

democratic and empowering on one hand and high performing in terms of productivity,

quality of output, profitability, and growth on the other hand. It is the responsibility of

every entrepreneur to ensure that the needs of the society are met.

Environment: The organization’s vision should align with the environmental needs.

Resource arrangement for the organization resources should reciprocate the

environmental expectations. The institutional development should also take into account

the social expectations and deprivations. Supply of technology and other resources should

not affect the society adversely; rather it should create a number of opportunities to the

society.

Unit-end Exercise

1. What does it mean by organizational diagnoses? Discuss the basic concepts

underlying organizational diagnoses.

2. Discuss briefly the Wisebord’s Six-Box Model of organizational diagnoses.

3. Discuss briefly the various levels of organizational diagnoses and different

concerns to be accomplished while performing diagnoses at these levels.


1. Who are the agencies responsible for the evolution and development of OD in

organizations? And why? Discuss.

2. How do you observe the significance of the use of OD interventions in present

Nepalese public and private institutions? Discuss with relevant examples to

elaborate on what can be done to transform our organizations.

3. Write short notes on:

a. Values, assumptions and beliefs in OD

b. Professional ethics in OD

c. OD implications


UNIT III: ORGANIZATIONAL CHANGE

Learning Objectives

1. Discuss the meaning, importance and classifications of organizational change

2. Recall the basic change activities, and learn how to motivate change in

organizations

3. Understand how to create a vision, core ideologies, and envisioned future

4. Learn to develop and gain political support

5. Discuss how to manage the transition, sustain the momentum, and develop impact

of organizational change in business

6. Recall the managerial challenges in ODC, and learn the HR implications of ODC

3.1. MEANING OF ORGANIZATIONAL CHANGE

Change is a structured approach to shifting or transitioning individuals, teams,

and organizations from a current state to a desired future state. It is an organizational

process aimed at helping employees to accept and embrace changes in their current

business environment.

Organizational change may happen at two orders – the first order change that makes

moderate adjustments, and the second order change that aims to reinvent, reengineer, or

rewrite.

Organizational Change: Change in an organizational setting refers to the overall nature

of activities, for example, their extent and rate that occur during a project that aims to

enhance the overall performance of the organization. The activities are often led by a

change agent, or person currently responsible to guide the overall change effort. The

activities are often project-oriented (a one-time project) and geared to address a current

overall problem or goal in the organization.

Organizational Development (OD): This phrase refers to the evolution of the

organization during the overall organizational change activities. For example, evolution

of its members to be able to resolve a major problem, achieve an overall project goal

and/or achieve overall organizational goals. Organizational development is an outcome of

organizational change activities.

In other words, OD is a system-wide application of behavioral science knowledge to the

planned development and reinforcement of organizational strategies, structures, and

processes for improving an organization's effectiveness.

An OD system values respect for people, trust and support, power equalization,

confrontation and wider organization-wide participation.

An ODC intervention serves for managing employee turnover, keeping organizational

operations up to date, promoting product or service innovation, managing organizational

growth and diversification, improving work processes, address operational and strategic

problems, promoting new income stream, improving overall operational and product or

service quality, and enhancing organization-wide work efficiency.


3.2. IMPORTANCE OF ORGANIZATIONAL CHANGE

Effective ODC interventions in place will result in institutional transformation, leveraged

innovation and technological development, enhanced organization-wide performance,

increased level of felt pride among all stakeholders, motivated and happy workers, and

efficiency of work at all levels. For these all reasons and beyond, change plays a crucial

role in an organization.

Effective implementation of organizational change helps organizations to be not only

more innovative, but also it helps them for cost-cutting, taking preemptive move,

responding to changing needs of consumers, and fulfilling environmental requirements

and expectations of overall stakeholders.

Change gears up with more confirmed organizational sustainability, growth and

diversification – all important pre-requisites for globalization of a firm and its offerings.

3.3. KEY FORCES FOR CHANGE

Globalization and national macro environmental change involves technological,

economic, political, and cultural exchanges made possible largely by advances in

communication, transportation, and infrastructure developments within the country and

abroad. For example, Nepal’s accession to WTO has resulted in Nepalese enterprise

systems to upgrade their system capacity and technologies so as to be able to compete in

a more competitive global operating environment.

Technological change is the term that is used to describe the overall process of invention

innovation diffusion. Any change in existing technology that is in use of a firm, will lead

to a number of process as well as structural changes in the organization so as to take

benefit of newly emerging and developing features of technology.

Knowledge management is a concept in which an enterprise consciously and

comprehensively gathers, organizes, shares, and analyzes its knowledge in terms of

resources, documents, and people skills.

An important part of knowledge management is effectively managing organization-wide

cross-departmental collaborations. Use of appropriate technology and applications such

as a virtual private networks, VoIP, e-mail, social networking websites such as Facebook,

and even company sponsored blogs are such examples.

Similarly, change in consumer attitude and preferences will lead to numerous changes

in an organization so as to get intact with changing life of consumers or users of the

market offerings of a firm.

3.4. CLASSIFICATIONS OF ORGANIZATIONAL CHANGE

Basically, there are two bases of classifications of organizational change – i. planning,

and ii. order and magnitude of change.

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Change vs planned change Both of them are concerned with making things different. Change inevitably happens to

all organizations. Planned change involves changing activities of the organizations that

are intentional and goal oriented. The focus of planned change is primarily on intentional

goal-oriented organizational change.

Non-planned change is rather forced or situational. For example, the cigarettes

manufacturing companies in Nepal are now forced to change their promotional strategies

following a legal complication in promoting tobacco-based products.

Planned change may be considered as an organization’s internal policy of developing its

products or services, expanding its coverage by product or market, and overall systemic

growth at institutional level.

Non-planned change may be referred to as real-time response to unexpected changes in

the operating environment of the firm.

Order and magnitude of planned change Planned change can also be viewed from the perspectives of different order and

magnitudes. They are:

First-order change: It is linear and continuous. It implies no fundamental shifts in the

assumptions that organizational members hold about the world. Improving or further

smoothing an ongoing system is an example of first order change.

Second-order change: As against first order change, it is multi-dimensional and brings

in organizational re-engineering and rewriting of organizational approaches to its

business. Replacement of an existing technology with a new one is an example of

second-order change.

3.5. RESISTANCE TO CHANGE

It is the general tendency of human beings to resist change, no matter how much

beneficial the program is. It is always difficult to implement change programs. Almost all

organizational change efforts face one or more forms of resistance to change. In other

words, resistance to change appears to be a natural and positive reaction to change.

The main sources of resistance to change are:

Individual: Habit, security, economic factors, fear of the unknown perception, and

selective information processing.

Organizational: Threats to established resource allocation, threat to established power

relations, structural inertia, limited focus of change, group inertia, and threat to expertise.

Again, there are two key forms of resistance to change -- overt or immediate, and implicit

and deferred. An overt or immediate resistance refers to the state of immediate voicing

complaints, engaging in job actions. On the other hand, implicit or deferred resistance

creates loss of employee loyalty and motivation, increased errors or mistakes, increased


absenteeism as a result of stagnated organizational operations. Deferred resistance clouds

the link between source and reaction.

Overcoming Resistance to Change

1. Education and Communication: Show the effect the logic behind the change.

2. Participation: Promote employee participation in the decision making process of

the organization; it lessens the level of resistance.

3. Build support and commitment: Counseling, therapy, or new-skills training.

4. Implementing change fairly: Be consistent and procedurally fair to implement

change.

5. Manipulation cooptation: Spinning the message to gain cooperation.

6. Selecting people who accept change: Hire people who enjoy change in the first

place.

7. Coercion: Direct threats and force when essential.

3.6. MANAGING CHANGE ACTIVITIES

In organizations, the change activities may take up different forms and routes. The study

of such activities can be made more systematic by exploring the unit on which it occurs

and the procedural systems how it occurs.

Change may occur on individuals, groups, organization’s structural systems, operating

procedures, products or services, inbound and out-bound logistical systems, and different

functional strategies of the firm. Such changes may be witnessed in the form of

transformation of organizational thrusts, structure and design over time, introduction of

employee training and development programs, leadership grooming, change in line of

products or services in offer, change in price, re-branding, re-packaging, technological

upgrading or introduction of newer technologies, and so on. These changes are inevitable

for organizational innovation and prosperity.

Following are more commonly performed change related activities in organizations:

1. Change in organizational governance

2. Organizational restructuring or reengineering and innovation

3. Strategic shifts

4. Product or service innovation, development and modifications

5. Change in operating system, technology and environment

6. Change in approaches to responding to environmental stakeholders

Whatever the level of change be, it is a more systematic endeavor and requires a coherent

set of initiatives, which are discussed as follows:

Step I: Perform organizational diagnoses and collect data or information pertaining to

different change requirements of the organization at different levels – individual, group

and organizational levels

Step II: Process the collected data and prepare information on needs for change


Step III: Estimate the change requirements, its procedures and organizational

affordability and sustainability by means of change

Step IV: Prepare a plan of action to execute the change.

Step V: Implement the plan of action on change and closely supervise and monitor the

process of change in action.

Step VI: Evaluate the impact of change and produce feedback for further improvement.

3.7. MOTIVATING CHANGE IN ORGANIZATIONS

To motivate effectively the intensity and diversity of change with lasting impact, the OD

interventionists and top management has to work closely with an assurance that the entire

organizational mission is effectively motivated.

For this, the first and foremost requirement is that each member associated in the process

of change has to have a feeling of ownership of everything that has been undergoing

change.

It requires high level of commitment of the top management to motivate organization-

wide change process. Top management has to take accountability of each failure and give

credit to the implementing agencies in each success they achieve. Such a practice boosts

morale of the people on the assembly line.

The change leaders should be swift enough to respond with change interventions so that

all members involved will remain motivated and impressed to be intact with the change

system at large.

There should be adequate reward and development provisions at each level of

organizational life for gearing up change process as a life-long institutional proposition.

Management should give priority to more innovative and newer ideas and procedural

advents so as to keep up high morale of all change agents involved in the system.

Building a culture of adequate celebrations on each success and innovation will help

motivate change agents.

Inducing a system of two-way and multi-way communication on change requirements,

and responding in time with effective change initiatives will further motivate the entire

organizational mission for transformation.

3.8. CREATING VISION FOR CHANGE

Setting the organization’s vision, core ideologies and envisioned future provide the

organizational citizenship. For this, the top management has to work closely in

collaboration with the OD interventionists and set organization’s mission, vision,

objectives, goals, strategies, plan of action, measures and task initiatives. In fact, these all


collectively communicate the organizational thrusts which are also referred to as

envisioning the organizational future.

Figure 3.1: Crafting Organizational Thrusts

STRATEGIC THINKING: DOWN TO ACTION

Mission

Vision

Goals

Objectives

Measures

Why we exist

Where we want to reach

Indicators and monitors of success

Desired level of performance

and timelines

Planned Actions to achieve objectives

O1 O2

AI1 AI2 AI3

M1 M2 M3

T1 T1 T1

Specific outcomes expressed in

measurable terms (NOT activities)

Strategic Plan

Action Plans

Evaluate Progress

Targets

Initiatives

What we must achieve to be successful

5

Setting a mission means establishing the reason of existence of an organization, whereas

the vision intends to communicate a desired destination of success intended in course of a

defined period of institutional life. The organizational goals and objectives communicate

the tangible results and purpose of achievements to be made in course of time. Initiatives

are the action programs and measures are the benchmarks of measuring the intended

performance. Finally, the targets are the time-bound quantified results expected at all

levels of operation. In course of time, an organization may witness change in all elements

of its strategic thrusts on its way to maintain high performing and innovative institutional

status.

3.9. DEVELOPING & GAINING POLITICAL SUPPORT

An organization is a social institution and will have deeper social roots, so does the

politics that governs the society and nation at large. In this context, a firm has to be able

to receive ample political support for its development and prosperity.

Creating sound functional ties with the society and the influential members of the society,

contributing for social welfare, providing with value-laden services to the customers,

maintaining financial transparency and paying taxes in time, taking accountability of each

functional failure, involving local people in organization’s quality circles, are giving

priority to the local resources are some of the strategies to be opted to win and sustain

political support.

Additionally important is to do the business which is permitted by political legal system,

complying with social values and norms, initiating with environment friendly operations,

and partnering with development missions in the communities helps organizations gain

and retain political support at different levels.


3.10. MANAGING TRANSITION

Organizations undergo changes due to a number of internal and external reasons. The

competitors will be closely watching each development under transition and they will

likely act swiftly creating quick adverse effect on organization. Thus, we should be

tactful, intelligent enough and politically correct in managing development under

transition.

Any violation of existing laws of the land, inability to meet and exceed the stakeholder

expectations and failure to win the investor and shareholder trust may result in

unexpected pressure and resistance against ODC mission.

Timely communication of the reason of change under transition, wider participation,

gaining the consent of the key stakeholders on change initiatives are some of the

strategies to be opted so as to achieve wider stakeholder support.

Some examples of such transitions include socio-economic and political revolutions in

the countries of firm’s operation, change in company’s governance system, change of top

management, merger and acquisition, national calamities, etc.

3.11. SUSTAINING MOMENTUM

A well thought change initiative will create a powerful momentum of overall

organizational development and prosperity at its various levels across the units and

specializations. Once a change is effectively initiated, the organization receives another

height of its momentum. The earlier established basic requisites turn to be absolute as a

result of new attainment of the height. Now, it is a crucial job of an OD interventionist to

closely observe the cross effect of each momentum and help the top management in the

process of upgrading the people, process, technologies and institutional strategies

accordingly so as to sustain the momentum of institutional development.

Sustaining momentum is a very vague and multi—functional task as change may create

impact on any number of people, departments, operating systems, products and services,

markets served, buyers and marketers, and beyond.

Wider collaboration, continuous systems improvement, organization-wide commitment

to change and innovation, operation focused approaches to organizational development

will serve instrumental in maintaining momentum of success.

3.12. INITIATING IMPACTFUL ODC INITIATIVES IN ORGANIZATIONS

Any change we make today should have long term effect on organizational services for

long run. For this reason, an OD interventionist should always think on following

considerations:

1. An OD intervention initiated for organizational and business or service

development should have least impact on its overall cost of operation.

2. Any change initiated in one department should have positive cross-effect to not

only to this department, but also to the rest of the departments.


3. Change managers should be appealing enough so as to motivate people in the

mission of ODC intervention.

4. There should be thorough teaching of each and every minor element of new

change initiative for all members responsible for implementing such change.

5. Any positive outcomes generated as a result of new change should immediately

be communicated and the sole credit should be given to the people and groups

responsible in implementing such change.

6. Appreciation, rewarding and celebration of success should be made general

cultural phenomenon of the organization.

7. Organizations should be promoted as open system based learning entities whereby

attracting a sense of innovation throughout its institutional life.

These are not the sole strategies to create an impactful change initiative through ODC

intervention. Rather, these are a few among many examples. Now, work in group and

think of at least ten ideas all useful in promoting ODC interventions more effectively.

3.13. MANAGERIAL CHALLENGES IN ODC

The biggest challenge today is that the world of works has witnessed swift changes in

workforce attitude and preferences as a result of global exposure, advent of newer

technologies and rights based approaches in job markets round the world.

Responding to macro and micro environmental expectations has become tougher and

tougher day by day today. Nothing works as a quick and permanent fix for a problem.

The best business solutions created for future may not last for longer period as the world

has been credited by rigorous and constant innovation and development. The most

favorable policies at one point of time may quickly turn into most unfavorable ones.

Predicting future is a quite tough task for OD interventionist as well as corporate leaders.

Changing needs of customers and unpredictable stakeholder expectations from the

institutions make it very tough to estimate a more sustainable plan of organizational and

business development.

All firms are under tense pressure to respond with effective strategies so as to accomplish

their expected institutional social responsiveness and accountability towards the society.

It is a common sense that not all senior managers are equally receptive to change and

development. Such a mindset affects quite adversely to an OD interventionist. Equally,

the people on the floor line also mostly tend to oppose any change in their operating

system. Thus, facing the resistances to change is another equally powerful challenge in

ODC intervention today.

3.14. MANAGERIAL IMPLICATIONS OF ODC

All ODC interventions should be crafted keeping in view the wider spectrum of

organizational development and prosperity by means of creating the choice of ‘fitness’ of

the people, their groups, and organizational systems at large in changing environmental

contexts.


Development of individual skill competencies, perception, attitude, motivation, and

willingness and ability to perform are the key managerial implications of ODC

interventions at individual level.

Similarly, promoting group dynamics, communication, information and technological

exchanges across the functional units and teams, providing team leadership and

improving group synergy are some of the managerial implications of ODC at group level.

At systems level, creating attractive and motivating organizational thrusts, structure and

designs, power and positional exchanges, organizational culture, and operating

philosophies that are attractive and worth contributing for individual, group,

organizational and social development at large.

Unit-end Exercise

1. Define organizational change and discuss its importance in today’s complex

operating environment. How does it apply to the management of human resources

in an organization? Discuss.

2. In course of changing HR system and practices in an organization, you may face a

number of resistances. Estimate at least five resistances and work out at least one

strategy to respond to each resistance.

3. Illustrate with relevant examples the key classifications of organizational change.

4. Discuss with examples the change activities and the process of initiating change

in organizations.

5. Suppose, you are appointed in the position of CEO of Rastriya Banijya Bank Ltd.,

a Nepal based national banking institution that is undergoing several structural

and service level changes to sustain its market share and corporate identity.

Develop a check list of your action plan for next five years. Remember, the

change initiatives should be motivating enough to gain wider political legal, and

social support. Equally important is to restore the faith of the employees,

depositors and borrowers of the bank.

6. Suppose, in near future you are going to establish a new company to provide

business process outsourcing services for various telecommunication service

providers in Nepal and abroad. Develop the proposed institution’s mission, vision,

goals, objectives, initiatives, measures and targets for next five years.


UNIT IV: MANAGING PLANNED CHANGE

Learning Objectives

1. Perform the classifications of organizational change – planned vs. unplanned.

2. Recall the organizational levels of change [HR, work, technology, organization

and strategy].

3. Discuss the with relevance of a selected theories of planned change with focus on

system theory, employee participation and empowerment, teams and team work,

parallel learning structures, normative-reeducative strategy

4. Recall the general models of planned change, and different types of planned

change

5. Demonstrate understanding of the application of behavioral science and action

research in initiating change

6. Estimate the managerial implications and challenges facing planned change in

organizations.

7. Understand implications of various theories of planned change.

8. Recall the general model of planned change, and discuss different types of

planned change.

4.1. MEANING OF ORGANIZATIONAL CHANGE

More recently, Fiat Group Automobiles hired an outsider as a change agent to return the

ailing company to profitability. As Fiat’s new CEO, Sergio Marchionne led a turnaround

by changing a hierarchical, status-driven firm into a market-driven one. Marchionne

reduced the layers of Fiat’s management and fired 10 percent of its 20,000 white-collar

employees. He improved relationships with union employees, reduced car development

time, and introduced new car designs. He hopes that the newly redesigned compact Fiat

500 version will serve for the company just like for what iPod was for Apple.

A group of housekeeping employees who work for a small hotel confronted the owner:

“It’s very hard for most of us to maintain rigid 7-to-4 work hours,” said their

spokesperson. “Each of us has significant family and personal responsibilities. And rigid

hours don’t work for us. We’re going to begin looking for someplace else to work if you

don’t set up flexible work hours.” The owner listened thoughtfully to the group’s

ultimatum and agreed to its request. The next day, the owner introduced a flextime plan

for these employees. The employees continued not only happily after the introduction of

flextime plan, but also worked for one extra hour a day.

So, what is change? It’s simply making things different. The course of making things

different may take any direction and magnitude - alteration of design and structure,

change in power and authority, change in technology and operating procedure,

introduction of new departments or positions, change in branding, product and service

repackaging, and so on. By all these means change brings difference in organizational

life.

Change may have different facets; for example, it can be deliberate (planned) or

accidental (unplanned). Its magnitude can be small-to-large. It may affect many or only a

few aspects or elements of the organization. It can be fast (abrupt, revolutionary), or slow


(evolutionary). The new state of things following change can have entirely different

nature from the old state of things (fundamental, quantum, or ‘second-order’ change).

Each of these facets calls for different actions from leaders, corporate managers and OD

interventionists.

Whatever be the direction, intensity and magnitude of the change, the role of OD

consultant is to structure activities to help organization members learn to solve their own

problems and learn to do it better over time.

4.2. FORCES FOR ORGANIZATIONAL CHANGE

A number of internal and external forces result in organizational change. Changing nature

of workforce, technological innovation or shifts, economic shocks, competition, trends in

social development, change in world politics, knowledge management, cross-

departmental collaborations within an organization play major roles in pushing

organizational change.

Change in technology pushes up change in jobs and organizations. As soon as the firm

has responded to one technological change by upgrading itself, another technological

change and challenge will appear with almost no lead time. Thus, not all organizations

can afford it and as a result, they remain backward. It is technology that serves as a

backbone of operation imperfection in today’s intense competitive business environment

globally. Some examples of technological changes taking place today include availability

of faster, cheaper and more mobile computers, online music sharing or transaction,

deciphering of the human genetic code. Thus, technology is regarded as one of the

biggest drivers of organizational change globally.

Economic shocks have continued to impose changes on organizations. For example,

creation of the new dot-com businesses has turned tens of thousands of business investors

into overnight millionaires, then crashed, and others rose in their wake. And record low

interest rates first stimulated a rapid rise in home values, helped sustain consumer

spending, and benefitted many industries, especially construction and banking. But when

the bubble burst, businesses in these same industries suffered.

Both the intensity and magnitude of competition is changing these days more than ever as

competition is always changing. Operating in the global economy means that the

competitors having differing capabilities are more likely to join the battle field from any

part of the world. Emergence of global competitors, more happening of global and local

merger and consolidations, and growth of e-commerce are a few outcomes of competition

imperfection globally today. Heightened competition means that successful organizations

will be the ones that can change in response to the competition at any time with any level

of opposing power to competition. They will be fast on their feet, capable of developing

new products and services, able to rapidly get them into markets, skillful in managing

short production runs and marketing cycles, and more importantly, coming up with an

ongoing stream of new products and services and process innovation. By all these means

they will be more flexible. So, what is the key to this flexibility? Managing change to


cope with an environment that witnesses ‘competition imperfection’ which is the reality

of global business today.

Alike any other socio-economic indicators, the social trends do not remain static in a

more competitive, global economy. For example, the traditional postal communication

habits are taken over by the advent of Internet-based social networks and lively

interactive, chatrooms. The social consumption patterns, ways of looking at the world,

and expectations form the companies have been changing drastically. A company cannot

at all prohibit such evolutions in the society. Maximum what it can simply do is to

estimate, predict, and follow the trends established or expected to be established. The

baby boomers, the foundation of newer economy are today at the verse of retirement and

their expectations on retirement schemes will of course be different from the traditional

ones. Similarly, the increase in retail stores across the cities has given rise to single door,

premium shopping as a common fashion of the general consumers globally. At this

discourse, a company like CG Electronics has to closely keep its eyes on changing

pattern of social behavior. The traditionally made, strong Hattichhap Chappals have

already vanished from the market despite the fact that Hattichhap is a quite popular brand

in Nepal and India. Texas-based consumers will be less interested in Basmati Rice till

they have another option to consume their localized brand Texamati.

The move to ODC interventions is also influenced by world politics. The Iraq-US war,

Indo-Pak relations, China-US business and trading policies, global movement on

democratization and economic liberalization, advent of free trading concepts have

resulted in a number of sensitive issues on ODC. These situations strongly demand for

robust information and security systems, participatory management, strong sense of

collaboration across the nations and companies located in different parts of the world. For

example, Chinese government has been constantly facing anti-dumping charges from

international communities, European and American governments are under pressure for

reducing agricultural subsidies, Pakistan and Bangladesh based consumers are reluctant

to consume the products produced in India, and so are the European Pashmina users on

Nepali brands. The organization system, its philosophies and structural designs all have

to ‘fit’ into global requirements and expectations so as to survive.

Knowledge management is a concept in which an organization consciously and

comprehensively gathers, organizes, shares, and analyzes its knowledge in terms of

resources, documents, and people skills so as to gear up change. More effective the

knowledge management within an organization, better will be the change impact.

An important part of knowledge management is effectively managing organization-wide

collaborations. Use of appropriate technology and applications, such as a virtual private

networks; VoIP, e-mail, social networking websites such as Facebook, and even

company-sponsored blogs helps promote organizational change more effectively. This all

requires more perfect cross-departmental collaborations.

Now, you, as responsible change agents or OD interventionists, have an important role to

act as the change process catalysts and assume the responsibility for addressing the need


for change by suggesting with relevant activities to manage organizational change more

effectively.

Can you guess, what else are the other equally important drivers of organizational

development and change, besides the above-stated situations?

4.3. LEVELS OF ORGANIZATIONAL CHANGE

Basically, change may happen at individuals and groups representing human resources of

an organization. In addition to people, change in work is another equally important level

of organizational change. The organizational change may be initiated by means of

technological change or up-gradation. More often, the organizational change may be

witnessed in the form of change in organizational design and structure. Finally, change in

firm’s strategy is another very important level of organizational change.

In times, an organization requires its individual employees and managers to change their

level of learning, attitude, personality, skill competencies, ability, willingness, motivation

or desire to excel in assigned job, capacity to take individual decisions, and sense of

feeling ‘content’ on the job. Here, content means satisfaction from the job. You as an OD

interventionist, have very special role dispositions to find ways to help management in

transforming people, always and constantly.

Similarly, as an OD interventionist, you have to seek changes at second layer of people

arrangement in an organization, i.e., managing for group dynamics. Assessing team

effectiveness, team leadership, harmonizing interpersonal communication and conflict

within and beyond the work teams, improving the process of group decision-making are a

few tasks to be performed to initiate rational changes at group level.

Work itself undergoes frequent change in all high performing organizations. At this level

of change, you need to explore more innovative and cost effective approaches to process

rationalization to improve the overall system efficiency. As an effective OD

interventionist, your contribution will not be counted effective unless you can reduce the

operating time lags, control resource costs, reduce defective production and improve

work process.

Change in technology also pushes up ODC interventions. As a result of change in

technology, organizations transform their production and operations systems, right sizing

of workforce, and ICT enabled work environment is made possible through technological

advents.

Another equally important level of organizational change is the change in design and

structure. More mechanistic and bureaucratic organizations are turning into more organic

and network-based systems. Jobs outsourcing, employee layoff, job sharing, etc. result in

shrinking the traditional design and structures into modern, more lean and flexible

structures.


Quite often the organizations undergo change at their strategic level. Change in strategy

is a powerful driver of organizational change and development. The firms operating

locally may extend their market coverage with national territories, and national firms may

get into international business. Time again, the firms may alter their product, place,

pricing and promotions decisions as a result of alteration in their business strategies.

Accordingly, the firms may get into newer business areas which may require change in

their organizational design and structure. For example, Agricultural Development Bank

Nepal has now revisited its business strategies whereby it has incorporated commercial

banking as its one new and autonomous service.

Thus, we can conclude that there are six key bases or levels on which organizational

change rests. There are i. individuals, ii. groups, iii. work, iv. technology, v. design and

structure, and vi. strategy.

4.4. CLASSIFICATIONS OF ORGANIZATIONAL CHANGE

It has been already stated in previous section that the organizational change may have

different facets – i. it can be deliberate (planned) or accidental (unplanned), ii. it can be

first order (transactional) or second order (transformational), iii. its magnitude can be

small-to-large, iv. it may affect many or only a few aspects or elements of the

organization, v. it can be fast (abrupt, revolutionary), or slow (evolutionary), and vi. the

new state of things following change can have entirely different nature from the old state

of things (fundamental, quantum, or ‘second-order’ change) or it may follow minor

modifications. Here, the most common element in these all classifications of

organizational change is that each type of change is either planned or unplanned.

4.5. MEANING OF PLANNED CHANGE & ITS IMPORTANCE

A major automobile manufacturer spent several billion dollars to install state-of-the-art

robotics. The change consultants worked day night and envisioned that the assembly line

would be reengineered. As part of the intervention, quality control segment would be the

most touched aspect of the new intervention. Sophisticated computer-controlled

equipment would be put in place to significantly improve the company’s ability to find

and correct defects. The consultants also sensed that as a result of sophistication in

operations technology, the managers would face resistance from the employees. For this,

the executives were asked to develop a program to help people become familiar with the

equipment and to deal with anxieties they might be feeling.

A group of Metropolitan City Corporation sanitation employees in Kathmandu who work

for cleaning the streets complained to their supervisor that they were facing difficulties in

cleaning the streets as a result of very poor waste material collection equipment. They

also warned the supervisor, if the management was unable to replace the traditional

equipment and offer them newer and easy to handle equipment, they were planning to

quit the jobs. Now, the supervisor is unknown what to do. Neither there is any such plan

of action with the Metropolitan City Corporation. Spontaneously, an idea rang up in his

mind – there were numerous hand gloves and rubber boots lying in the stores since quite

long time. He distributed them to each cleaning staff. He also made a request to the top


management to consider a small package for sanitation kits to be distributed among these

employees in a monthly basis. It was approved. They got it. Happily they went to work.

Both of these are examples of change. Among these two examples, what do you think is

the key difference? It is simple, the first example is about a planned change and the

second one is unplanned or accidental change. Many changes in organizations are like the

one at Metropolitan City Corporation – they just happen and managers are bound to work

the contingency solutions without following prior set plans. At the same time, high

performing organizations are quite popular as they are proactive and purposeful in

planning the change. And more importantly, change in OD means planned change, most

of the time.

So, what does it mean by planned change? It refers to the change activities that are

intentional, goal oriented, and pre-planned or deliberate.

Organizational development and planned change are quite interdependent as

organizational development is directed at bringing about planned change to increase an

organization’s effectiveness. It is generally developed by the OD experts and managers

and implemented by the respective managers. Organizations can use planned change to

solve problems, to learn from experience, to reframe shared perceptions, to adapt to

external environmental changes, to improve performance, and to influence future

changes.

As it is stated above, the field of OD was introduced to help leaders address and embrace

change, to view change as an opportunity rather than a threat.

The demand for change comes from a number of forces within and outside the institution.

The external forces include regulators, competitors, market forces, market opportunities,

customers, technology, socio-economic and cultural factors within the society. Similarly,

the internal forces include obsolescence of products and services, leadership competence

and direction, workforce competence and diversity, and shared culture of the

organization. To sum up, there are at least eight major forces driving or gearing up the

organizational change in any social setting – i. nature of workforce, ii. technology, iii.

economic shock, iv. competition, v. social trends, vi. national and world politics, vii.

knowledge management, and viii. Cross-departmental collaborations. We have already

discussed these elements in earlier section of this session. Please go back and revisit

once.

A planned change may be deliberate, can take small-to-large shape of event, may affect

many or only a few aspects or elements of the organization, can be fast (abrupt,

revolutionary), or slow (evolutionary), and the new state of things following change can

have entirely different nature from the old state of things (fundamental, quantum, or

‘second-order’ change) or may result in minor modifications at any level of the

organization.


The early OD interventions were primarily focused on first-order change – making

moderate adjustments to the organization, its people, and processes. It is linear and

continuous. It implies no fundamental shifts in the assumptions that organizational

members hold about the world. It is also known as transactional change.

Today, the demand on organizational change is being reinvented, work tasks are

reengineered, the rules of marketplace are rewritten, and the nature and complexity of

workforce is completely diverse as a result of globalization, advent of information and

technology, change in socio-cultural and economic status across the countries. These all

take up second-order change, known as transformational change.

To explore the importance of planned change, you must relate it with the goals of

planned change. A planned change may have two distinctive goals – i. it seeks to improve

the ability of organization to adapt to changes in its environment, ii. it seeks to change

employee behavior and response to organizational change.

More specifically, ODC interventions bring in sense of innovation, external orientation,

organization-wide feeling of goodness – all resulting in firm’s capability to meet and

exceed the competition. Planned change helps in gearing up ODC interventions by

improving organizational process climate, culture, structure and strategic and operational

revisits.

Who is more responsible for planned change to take place in an organization? Primarily,

it is the change agent who brings or manages changes in organization. Change agents can

be managers or non managers, employees of the organization or outside consultants. Past

experience in change programs indicates that outside consultants can offer the

organization with specialized knowledge in the theory and method of change but they

lack inside the organization knowledge they are hired for short time period. The

responsibility for sustaining the change programs remains with inside members. It is easy

to bring change but difficult to sustain.

What can change agents change? Robbins has explained four major categories of change

options that the change agents can opt -- changing the organizational design and

structure, changing the technology, changing the physical settings, and changing the

people working out there.

4.6. THEORIES OF PLANNED CHANGE

The conceptions of planned change have tended to focus on how change can be

implemented in organizations. Known as ‘theories of change’, these frameworks describe

the activities that must take place to initiate and carryout successful organizational

change. There are many prominent theories and a number of other emerging conceptual

approaches of organizational change. These include:

1. Lewin’s Three-Step Change Model

2. Kotter’s Eight-Step Model Change

3. Lippitt, Watson and Westley’s Revisit on Lewin’s Three-Step Model

4. The Bruke-Litwin Model of Organizational Change


5. Action Research Model

6. Systems Theory

7. Applied Behavioral Science Model

8. Other Contemporary Approaches to Change

Lewin’s Three-Step Change Model

Unfreeze–Movement–Refreeze is the sole essence of working proposition of Lewin’s

Three-Step Model of Change.

Most theories of organizational change are originated from the landmark works of social

psychologist Kurt Lewin. Lewin developed a three-stage model of planned change, which

explains how to initiate, manage and stabilize the change process. The three stages are

unfreezing, movement or changing and refreezing.

Before reviewing each stage, it is important to highlight the assumptions on which, this

model is based:

1. The change process involves learning something new, as well discontinuing

current attitudes, behaviors and organizational practices.

2. Change will not occur unless there is motivation to change. This is often the most

difficult part of the change process.

3. People are the hub of all organizational changes. Any change, whether in terms of

structure, group process, reward systems or job design requires individuals to

change.

4. Resistance to change is found even when the goals of change are highly desirable.

5. Effective change requires reinforcing new behaviors, attitudes and organizational

practices.

Unfreezing: The focus of this stage is to make organization open to change. In doing so

individuals are encouraged to replace old behaviors and attitudes with those desired by

management. Managers also need to devise ways to reduce the barriers to change during

this stage.

Unfreezing, as it applies to its meaning, is sometimes accomplished through a process of

‘psychological disconfirmation.’ By introducing information that shows discrepancies

between behaviours desired by organization members and those behaviours currently

exhibited, members can be motivated to engage in change activities.

As the first step of the change process, the techniques to reinforce unfreezing include

acknowledging the feelings and empathizing with the members, giving people as much

information about the change as possible, saying what will not change, treating the past

with respect and helping others to see the gap.

Movement or changing: This stage focuses on providing employees with new

information, new behavioral models, or new ways of looking at things. The purpose is to

help employees learn new concepts to implement change. Role models, mentors, experts,


benchmarking organization against world-class organizations and training are useful

mechanisms to facilitate change.

More specifically, this stage involves the techniques to reinforce movement. It provides

with instructions on operational focus and direction. This stage focuses on how to

strengthen peoples' connections to one another, open up two-way communications,

provide the individual with a specific role in the change process and provide leadership

and tenacity.

In other words, this step shifts the behaviour of the organization, department, or

individual to a new level. It involves intervening in the system to develop new

behaviours, values and attitudes through changes in organizational design, structures and

processes.

Re-freezing: The focus of this stage is stabilizing the change during refreezing by helping

employees integrate the changed behavior or attitude into their normal way of doing

things. This is accomplished by first giving employees the chance to exhibit the new

behaviors or attitudes. Once exhibited, positive reinforcement is used to reinforce the

desired change. Additional coaching and modeling are also used at this point to reinforce

the stability of the change.

Techniques to reinforce re-freezing before reverting to the old point of view include

ensuring that the individuals and leaders are reinforced for new behaviour, implementing

quick results and highlighting successes, building feedback mechanisms, and celebrating

the success once the system leaps one step ahead.

To be precise, this step stabilizes the organization at a new state of equilibrium. It is

frequently accomplished through the use of supporting mechanisms that reinforce the

new organizational state, such a organizational culture, norms, policies, and structures.

Kotter’s Eight-Stem Model of Change Management

Kotter (1995) of Harvard Business School built on Lewin’s Three-Step Model to create a

more detailed approach for implementing change. Kotter began by listening common

failures that managers make when trying to initiate change. These included the inability

to create a sense of urgency about the need for change, failure to create a coalition for

managing the change process, the absence of a vision for change and failure to effectively

communicate that vision, failure to provide short-term and achievable goals, he tendency

to declare victory too soon, and not anchoring the changes into the organization’s culture.

After assessing these problems, Kotter then established a set of eight sequential steps to

be followed to overcome these problems. These steps are as follows:

Step I: Increase sense of urgency by creating a common reason why change is needed.


Step II: Build the guiding team to form a coalition with enough power to lead the

change. Get the right people in place with the right emotional commitment, and the right

mix of skills and levels.

Step III: Get the vision right by creating a new vision to direct the change and strategies

for achieving the vision. Get the team to establish a simple vision and strategy with focus

on emotional and creative aspects necessary to drive service and efficiency.

Step IV: Communicate the vision for buy-in throughout the organization and involve

as many people as possible, communicate the essentials, simply, and to appeal and

respond to people's needs. De-clutter communications – make technology work for you

rather than against.

Step V: Empower action of all people on new vision by removing obstacles and by

enabling all people for constructive feedback and lots of support from leaders; encourage

adequate risk taking and creative problem-solving; adequately reward and recognise

progress and achievements.

Step VI: Create short-term wins by planning, creating and implementing the aims that

are easy to achieve in bite-size chunks; manageable numbers of initiatives; finish current

stages before starting new ones; immediately move towards new vision once the existing

one is achieved.

Step VII: Don't let up by fostering and encouraging the determination and persistence;

push ongoing change; encourage ongoing progress reporting; highlight achieved and

future milestones; consolidate improvements, reassess changes, and make necessary

adjustments in the new programs.

Step VIII: Make change stick and reinforce the changes by demonstrating the

relationship between new behaviours and organizational success; reinforce the value of

successful change via recruitment, promotion, and new change leaders; weave change

into ongoing organizational culture.

If we closely notice on these eight steps, in fact, these are built on Lewin’s Three-Step

Model. The first four steps are related to unfreezing, the steps five through seven

represent movement, and step eight corresponds to refreeze.

Lippitt, Watson and Westley also revisited Lewin’s three-step model of change. They

have suggested with a set of simplified seven phases of change by further defusing earlier

established three steps of change process.

Phase I: Develop a need for change. This phase corresponds to Lewin’s unfreezing

phase.

Pase II: Establish a change relationship. In this phase a client system in need of help and

a change agent from outside the system establish a working relationship.

Phase III: Clarify or diagnose the client system’s problem.


Phase IV: Examine alternative routes and goals. Establish goals and intentions of action.

Phase V: Transform intentions into actual change efforts.

Phases III-V correspond to Lewin’s moving phase.

Phase VI: Generalize and stabilize change. It applies just like Lewin’s refreezing phase.

Phase VII: Achieve a terminal relationship, that is, terminate the client-consultant

relationship, or close the account by ending with sound relationship after the task is over.

The Bruke-Litwin Model of Organizational Change

Warner Bruke and George Litwin created a model to facilitate first-order (transactional)

and second-order (transformational) change by improving individual and organizational

performance. As provisioned in the model, the first-order change seeks a transactional,

evolutionary, adaptive, incremental, or continuous change whereby keeping the core

organizational values and identities almost the same over time. Whereas, the second-

order change seeks fundamental shifts in organizational design and structure as well as its

entire operating system by means of revolutionary changes. Some of the important levels

used for describing this order are transformational, revolutionary, reengineering, radical,

or discontinuous change. Figures 41 through 4.3 provide the detailed accounts on both

the orders of change and their impact on organizational performance and change.

Figure 4.1: Transactional Factors Involved in First-Order Change

Source: Bruke, W. W. (1994). Organizational Development. (2nd

ed.). p. 131.

As presented in figure 4.1 above, the basic elements of focus for gradual improvement

leading to transactional change in an organization include improvement in organizational

structure and design, introduction of newer and more effective management practices,

improvement in organizational policies and procedures, gradual modification in work

unit process climate, employee motivation, employee training and development for

improving skills and abilities, recognizing individual needs and values as the keys to

Management Practices

Structure

Systems (Policies and Procedures)

Work Unit Climate

Motivation

Individual and Organizational Performance

Task Requirements and Individual Skills/Abilities

Individual Needs and

Values


achieve individual and organizational performance. As the name applies, the first-order

changes are sought to bring in continuous, gradual and minor changes in organization

throughout its life so as to maintain a more sustainable position of the organization. Thus,

the changes in this order are initiated as a lifelong proposition of the organization.

Figure 4.2: Transformational Factors Involved in Second-Order Change


ed.). p. 130.

Figure 4.2 illustrates that leadership commitment and vision plays very crucial role in

transforming organizational process climate and culture. Adjusting organization’s

mission and vision in line with the new developments in the macro environment and

likely happenings in near future may require a prompt, preemptive, and radical response

to inject organizational change. Organizational restructuring, reengineering, e-

engineering, overhauling are some of the key approaches to bring in transformational

change in an organization during the transitions. As the name applies, the second-order

changes are sought to bring in radical changes in organizations. Initiating a radical

change itself is a quite risky proposition and organizations cannot afford the cost of such

overhauling time again. Thus, the changes in this order are initiated with definite time

and structural gaps and cannot be continued forever like the ones in first-order.

Second-order changes normally follow several transitions in national and global

environment. These transitions may include transformation in national and global

political and institutional governance systems. Similarly, the shifts in social structure

leading to the change in general consumption patterns, lifestyle and behavior, and change

in national and international economy and economic policies also influence the need for

second-order change. Additionally, the advent of newer technologies and business

concepts also result in obsolescence of existing technologies and operating procedures.

Other unavoidable circumstances including natural disaster, famine, and calamities also

may cause drastic social change and require organizational restructuring through radical

changes. Whatever the cause be, the ultimate purpose or objective of initiating second-

External Environment


Leadership Organizational

Culture

Mission and

Strategy


order change in an organization include strengthening the organizational competencies,

taking full benefit of the opportunities created due to changes in external environment;

introduce newer technologies and operating cultures – all contributing to maintain the

firm’s fitness in changing environment.

Figure 4.3: The Bruke and Litwin Model of Organizational Performance and Change


ed.). p. 128.

According to Bruke and Litwin, organizational change and performance carries a two-

fold purpose – i. organizational transformation, and ii. improved organizational

transaction, performance, or productivity. To achieve such a two-fold status, a firm needs

External

Environment

Leadership

Management

Practices

Work Unit

Climate

Motivation


Organizational

Culture

Mission and

Strategy

Systems (Policies and Procedures)

Structure

Individual Needs and

Values

Task Requirements and Individual Skills/Abilities

Feedback Feedback


to focus on both transactional and transformational changes, i.e., first-order as well as

second-order changes.

Now, the question arises, what is the timing of initiation of these two orders of change?

In fact, an effectively managed organization will witness a more congruent happening of

such changes. Say, for example, a firm’s finance department may be undergoing

reengineering, whereas the Kaizening will be enough to sustain its marketing functions.

Thus, a balanced marriage between these two philosophies of organizational change is

very essential to develop, sustain and maintain high operating footage of the institution in

long-run.

Action Research Method

Action research method takes into account the systematic observation of people on the

job and providing feedback to improve the operating system after closely observing it. In

other words, this method of OD intervention allows the interventionists to observe the

jobs in action and provide survey feedback and improve the critical areas of tasks as

observed.

The intervention provides data and information to the managers. Information on attitudes

of employees about wage level, and structure, hours of work, working conditions and

relations are collected and the results are supplied to the top executive teams. They

analyze the data, find out the problem, evaluate the results and develop the means to

correct the problems identified. The teams are formed with the employees at all levels in

the organizational hierarchy.

Action research model focuses on planned change as a cyclical process in which initial

research about the organization provides information to guide subsequent action. The

results of the action are assessed to provide further information to guide further action.

And the process continues, cycle-by-cycle. The interactive cycle of research and action

involves considerable collaboration among organization members and OD practitioners.

It places heavy emphasis on data gathering and diagnoses prior to action planning and

implementation, as well as careful evaluation of results after action is taken.

Action research is traditionally aimed both at helping specific organizations to implement

planned change and at developing more general knowledge that can be applied to other

settings.

In 1940s John Collier, Kurt Lewin, and William Whyte identified that the OD research

needed to be closely linked to the actions of organizational members so as to manage

change more effectively.

As part of working strategy of the study team a collaborative effort was made by the

organizational members and the team of social scientists to collect relevant research data

about organization’s functioning to analyze it for the causes of problems and corrective

measures to be taken so as to address the problems more effectively. After


implementation of the corrective measures suggested through research, further research

was conducted to assess results. Such cycle continued with a number of repetitions.

The action research results appeared to be instrumental in two-fold – i. the organizational

members who participated as the units of study in the action research were able to use the

research results on themselves to guide their managerial action for organizational

development and change, and ii. the social scientists were able to study the entire process

to derive new knowledge that could be used elsewhere.

The key components of the action research included i. systematic collection and analyses

of survey data, and a more robust feedback system to feed the information back to

organizations, ii. closer monitoring of the effects of the implementation of the feedback

and tracking the effects, and iii. closer alignment of research with implementation process

as a continued intervention.

A few of the pioneering and notable action researches of that time included – i. the work

of Lewin and his graduates at the Harwood Manufacturing Company, ii. the classic

research by Lester Coch and John French on overcoming resistance to change; this study

supported in a great deal in bringing change in action through team management skills,

iii. Whyte Hamilton’s study on Chicago’s Tremount Hotel, and iv. Collier’s efforts to

apply action research techniques to improving race relations when he was the

Commissioner of Indian affairs from 1933 to 1945. These all studies contributed in a

great deal to establish action research as an integral element to effective organizational

change. Today, action research serves as a backbone of most of the OD interventions in

organizations.

The feedback process that evolves through the research serves as an ‘interlocking chain

of conferences.’ The major findings of the survey are first reported to the top

management and then transmitted throughout the organization. The feedback sessions are

conducted in task groups, with supervisors and their immediate subordinates discussing

the data together.

In fact, action research model shares closer relationship with Lewin’s three-step model

and contemporary action research. Figure 4.4 presents the comparative display of the key

change models and their relationship with action research model.


Figure 4.4: Comparison of Planned Change Models

Source: Cumming & Worley (2001). Organizational Development and Change. P. 24.

As presented in figure 4.4 above, following accounts serve for a comparative discussion

of various steps involved in three selected models of planned change:

1. Problem identification: This stage usually begins when a key 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. The

task in this stage is equivalent to unfreezing of Lewin’s three-step model and choice

of positive subjects in contemporary action research model.

2. Consultation with the behavioral science expert: At this stage, the practitioner and

the client carefully assess each other. The practitioner uses own knowledge of

behavioral science from normative and developmental perspectives and makes an

assumption on organization’s values and norms and shares them with the key people

in the organization to confirm his/her learning about it. The early discourse sets up

Refreezing

Develop action plans

Lewin’s Change Model Action Research Model Contemporary Action Research

Movement

Problem Identification

Consultation with behavioral science

expert

Data gathering and preliminary diagnosis

Feedback to key

client or group

Joint diagnosis of the problem

Joint action planning

Action

Data gathering after action

Choose positive subjects

Collect positive stories

with broad participation

Examine data and develop

possibility propositions

Develop a vision with broad participation

Evaluate

Unfreezing

Develop action plans

Refreeze


the foundation for open communication between the client and the practitioner. And

effective discourses result in the formation of a more collaborative atmosphere

between them. The overall tasks are equivalent to unfreezing in Lewin’s model and

choosing of positive subjects plus a part of making initial data gathering of

contemporary research model.

3. Data gathering and preliminary diagnosis: In consultation with key organizational

members, the OD practitioner completes this step and gathers appropriate information

and closely analyzes them to determine the underlying causes of organizational

problems. There are four basic methods of collecting primary data – i. employee

interviews, ii. process observation, iii. employee survey questionnaires, iv.

organizational performance data check. Any combination of these methods shall be

executed in real ODC project works. To make it more complete, all these methods

should be executed as each of these helps in collecting different types of information

about the organization. This step is equivalent to unfreezing the problem as stated in

Lewin’s three-step model, and completing the task of collecting positive stories with

broad participation as stated in contemporary action research approach.

4. Feedback to key client or group: Since an action research is a more collaborative

discourse, time again the diagnostic data are fed back to the client usually in a group

or work team consultation meeting. At this stage, the information provided by the

practitioner helps executives assess the departmental and operational strengths and

weaknesses as the consultant provides with all relevant data, free from any personal

biases. The consultant also takes into account the basic norms of confidentiality and

privacy of the participating individuals, groups and departments. The overall task of

this step serves as equivalent to concluding stage of unfreezing and initial stage of

movement in Lewin’s three-step model and examine data and develop possibility

propositions as stated in contemporary action research model.

5. Joint diagnosis of the problem: At this stage, the members discuss the feedback and

explore with the OD practitioner whether they want to work on identified problems.

There exists a closer relationship among data gathering, feedback, and diagnosis

because the expert summarizes the basic data from the client members and presents

them for validation and further diagnosis. An important point to remember, as Schein

suggests, is that the action research process is very different from the doctor-patient

model, in which the consultant comes in, makes a diagnosis, and prescribes a

solution. Schein notes that the failure to establish a common frame of reference in the

client-consultant relationship may lead to a faulty diagnosis or to a communications

gap whereby the client is sometimes ‘unwilling to believe the diagnosis or accept the

prescription.’ He believes “most companies have drawers full of reports by

consultants, each loaded with diagnoses and recommendations which are either not

understood or not accepted by the ‘patient’.” This step serves as part of entry into

movement process in Lewin’s three-step model and a part of action before developing

a vision with broad participation in contemporary action research model.


6. Joint action planning: On clients’ acceptance and readiness to go ahead, the OD

practitioner and key members of the organization jointly agree on further actions to

be taken in to consideration of organizational change. This is the real beginning of

moving process, as described in Lewin’s change model. It serves as the execution of

joint vision as proposed in contemporary action research model. At this stage, the

organization decides how best to reach a different quasi-stationary equilibrium. The

specific actions taken at this step depends on the culture, technology, and

environment of the organization; the diagnosis of the problem; and the time and

expense of the intervention.

7. Action: This stage involves the actual change initiated from one organizational state

to another, the newer one. It may include numerous actions – reorganizing

organizational design and structure, installing new methods and procedures, work

redesign, and reinforcing new behaviors. Such actions typically cannot be

implemented immediately but require a transition period as the organization moves

from the present to a desired future state.

8. Data gathering after action: As action research is a cyclical process, data must also

be gathered after the action has been taken to measure and determine the effect of the

action and to feed the results back to the organization. This in turn, may lead to re-

diagnosis and new action. The organizations with learning cultures, never give an end

to this process; it continues cycle-by-cycle, to give a more sustainable life and process

climate to the organization. This is all about refreezing.

Systems Theory Another equally important foundation in thematic learning of organizational development

and change is the advent of System Theory, which views organization as an open system

having active exchange interface with its environments.

First of all, you need to understand what a system is all about. There are different views

on it. For example, in the words of Fagen, a system is a set of objects together with

relationships between the objects and between their attributes. For Bertalanffy, a system

represents the elements standing in interaction. Kast and Rosenzweig have defined the

system as an organized, unitary whole composed of two or more than two interdependent

parts, components, or subsystems, and delineated by identifiable boundaries from its

environmental supra-system. In the words of Hanna, a system is an arrangement of

interrelated parts that work as interdependent elements forming an entity that is the

system.

The key to learning from these definitions is that when we talk about systems approach,

we should begin with identifying the individual parts and then seek to understand the

nature of their collective interaction. Thus, a system denotes interdependency, i.e.,

interconnectedness among elements in a set that constitutes an identifiable whole or

gestalt.


First articulated by Ludwig von Bertalanffy (1950), Kartz and Kahn (1966) were the first

scholars to apply open systems theory to organizations. This theory serves as one of the

most powerful tools available for understanding the dynamics of organizations and

organizational change.

Nature of systems, congruence among system elements, socio-ethical systems theory and

open systems planning, and open systems thinking are the key components of

consideration in Systems Theory.

Nature of systems: The nature, dynamics and characteristics of open systems are very

well known. For example, the drawings from the expositions of Kartz and Kahn, and

Hanna confirm that all open systems are input-throughput-output mechanisms. Figure 4.5

presents with the detailed information on nature of systems approach to organizational

development and change.

Figure 4.5: A System in Interaction with Its Environment

Sources of Synergy, Materials, Information and Human Resources

Users

External Interface Feedback Mechanisms

Inputs

Transforming Mechanism

Outputs

Internal Interface Feedback

Mechanisms


The above figure conveys the meaning that the organizational systems input-process-

output partly rests on the environmental expectation, support and internal as well as

external feedback. The organization cannot operate in isolation from its environment,

which contains varying types of stakeholders. Almost all the factors of input come from

the external environment, and in return, the organization supplies with finished goods and

services for the consumption or use of the society, at large.

Similarly, internal management information systems, marketing intelligence systems and

a number of other subsystems established within the organization and the networks of

suppliers and distributors as well as marketers of the goods and services also provide with

relevant information for the use of organizational change and development at any level.

Such open communication loops within and beyond the organizational structural system

play vital roles in organizational transactions and transformations.

Another equally important element of systems thinking is to establish a perfect

coordination and interdependence among each component of the system within the

framework of input-process-output and beyond it and making timely alteration as per the

operational requirements of the system and social expectations.

Congruence among system elements: To explore further how system thinking applies in

OD, it is quite relevant to review the works of David Nadler and associates. While

working at Delta Consulting Group, they developed the congruence model for

understanding organizational dynamics and change. This model depicts the organization

as an input-throughput-output system. Figure 4.6 provides with necessary illustrations of

the integral elements of this model.

Figure 4.6: The Congruence Model Showing the Organization as a System

Source: Nadler, D. A.(1998). Champions of Change. P. 41

Input

Environment Resources History

Output

System

Unit

Individual

Strategy

Work

Formal

Organization

Informal

Organization

People


Figure 4.6 depicts that the three major input factors include i. the environment, which

often imposes constraints and opportunities about what the organization can and cannot

do, ii. resources available to the organization, such as capital, people, knowledge,

property, and technology, and iii. history, which consists of memories of past successes,

failures, important events, and critical decisions that still influence behavior today. The

outputs are considered as the performances at the overall organizational level, unit/group

level, and individual level. The elements of the organization per se are labeled strategy,

what the organization has been trying to achieve and how it plans to do it. Work includes

the tasks people perform to create products and service and their markets. People include

formal structures, processes, and systems for performing the work. Informal organization

includes the organization’s culture, informal rules and understandings, and how things

really work and how they are supposed to work as defined by the formal organization.

This model shares two important significances – i. assessing the characteristics and

functioning of each of the elements, and ii. evaluating the ‘goodness of fit’ or how well

the elements ‘go together.’

The working premise of his model is that alignment or harmony – known as fitness –

must be present among the system’s components for the organization to produce

satisfactory outputs.

This model can be used on any organization of which you are familiar – the company

could be high performing or poorly performing – you can use this model to examine the

fitness of the elements so as to yield the best expected results or any deviations due to

poor exchange or interdependence among the several variables. The congruence will

serve as an essential tool for OD practitioners to identify the areas of improvement and

initiating systems transformation from such areas, as observed when the system is in

process of its operations.

Socio-technical systems theory and open systems planning: Sociotechnical system

theory (STS) and open systems planning (OSP) are the two major variations that play

important role in organization development.

Sociotechnical systems theory (STS) was developed by Eric Trist, Fred Emery, and

associates in 1950s while working at Tavistock Institute. The thesis of STS is that all

organizations comprise two interdependent systems, a social system and a technical

system, and that changes in one system affect the other system. To achieve high

productivity and employee satisfaction, organizations must optimize both the systems. In

fact, STS serves as the conceptual base for efforts in work redesign and organization

restructuring, which are in fact, the two very crucial elements of OD interventions.

As a result of importance of STS, a number of design principles have been developed and

widely used these days to implement sociotechnical theory in organization development

and change. For example, optimizing and social and technical systems, forming

autonomous work groups, training group members in multiple shills, giving information

and feedback to the people doing the work, and identifying the core tasks are a few


examples of STS implementation by OD interventionists in organizational development

and change.

High performing organizations widely use STS related principles to make work groups

self-regulated and self-directed, to impart multi-task skills on workers, to provide

information to the point of operation, to induce socio-ethical considerations and

responsibilities of the organization, and to enhance work technology – these all contribute

to organizational development.

The scholars and OD interventionists giving further continuity to STS theories and

principles include Pasmore, Pava, Cummings, Hanna, Bushe and Shani.

On the other hand, open systems planning (OPS) emphasizes on i. environmental

scanning to identify the stakeholders and to determine their expectations, ii. developing

possible future scenarios – both likely to happen and realistic ones, and iii. developing

action plans to ensure that a desirable future occurs.

Today, most of the OD practitioners engaged in organizational restructuring and redesign

projects use a combination of sociotechnical and open systems planning to help

organizations promote into high performing organizations.

Open systems thinking: Open system thinking is essential for creating learning

organizations. Peter Senge is one of the pioneers of this concept. The underlying concept

of open systems thinking is that the learning organizations can cope effectively with

rapidly changing environmental demands. Senge has suggested with five distinctive

disciplines to be mastered so as to induce open systems thinking more effectively and

transform the organization into a learning organization. These disciplines include i.

personal mastery, ii. mental models, iii. building shared vision, iv. team learning, and v.

systems thinking. Among these all, the fifth discipline, systems thinking, is more popular.

To conclude from these all discussions, the systems theory introduces a number of

theories and practices useful in organizational development and change including all key

functions – diagnosis, development, implementation or intervention, and evaluation of

the change results or impacts.

Among the several consequences of viewing organizations from the perspectives of

systems theory, top five of them are – i. issues, events, forces and incidents in one setting

are not viewed as isolated phenomenon but seen in relation to other issues, events,

incidents and forces in other setting, ii. most phenomenon have more than one cause, a

systems approach engages analyses of events in terms of multiple causation rather than

single causation, iii. changing one part of a system influences other parts; therefore OD

practitioners expect multiple effects, not the single effect from other activities, iv.

according to field theory (Kurt Lewin), the forces in the field at the time of the event are

the relevant forces for analyses; this idea moves the OD practitioner away from analyzing

historical events and toward examining contemporary events and forces, and v. to change

a system, one changes the system, not just its component parts.


Applied Behavioral Science Model

In fact, OD is all about the application of behavioral science knowledge, practices, and

skills on ongoing systems in collaboration with system members. The rational exchange

of behavior at individual, group and systems level creates significant impact on

organizational effectiveness.

Basically, behavioral science serves as integration between conventional pure sciences

and applied and emerging behavioral disciplines. The pure sciences include sociology,

psychology, anthropology and social anthropology. Similarly, the applied and emerging

disciplines that are deeply rooted with the behavioral science include general

administration, education, general management, marketing, economics, information and

communication theory, cybernetics, game theory, power and politics. In common, these

all disciplines may be distinguished on the basis of level of behavioral knowledge

imparted, known as ‘pure’ discourse and the ‘information and technology’ in use of

application of such disciplines. Applied model of behavioral science attempts to build an

interface between these aspects. Figure 4.7 presents with the detailed components of

interaction to form the Model of Applied Behavioral Science.

Figure 4.7: Components of Applied Behavioral Science

Source: French, Bell, & Vohra. (2006). Organization Development: Behavioral Science

Interventions for Organization Development. (6th

ed.). p. 60.

The above figure intends to explain that the OD practitioner is customarily a state of

disequilibrium that requires rectification. The practitioner examines the problem

situation, on the basis of which he or she prescribes a solution that, hopefully,

Practice Research Practice Theory

Behavioral Science Research

Behavioral Science Theory

Screened against the criteria of what works, what fits, and what is relevant to

practical situations, i.e., what helps me solve real problems?

Screened against the criteria of what is applicable to this specific situation,

i.e., what helps me solve this problem?

APPLIED BEHAVIORAL SCIENCE


reestablishes the equilibrium, thereby solving the problem. This process is customarily

referred to as diagnosis and treatment. Both diagnosis and treatment consist of observing

a situation and, on the basis of selected variables, placing it in a classification scheme or

typology. The diagnostic typology allows the practitioner to know what category of

situation he or she has examined; the treatment typology allows the practitioner to know

what remedial efforts to apply to correct the problem.

Numerous behavioral scientists have closely observed and studies different dimensions of

applied approaches to behavioral science. These scientists include Likert, Barnes,

Greiner, Porras, Bennis, Benne, Chin, Argyris, Blake, Mouton, Cartwright, Kelley,

Skinner, Homans, Gloudner, and many others. The contributions of these scholars form

the applied behavioral science approach can be studied from at least four theoretical and

applied perspectives – i. contributions from behavioral science theory, ii. contributions

from behavioral science research, iii. contributions from practice theory, and iv.

contributions from practice research.

Contributions from behavioral science theory: As social theory works on establishing

social norms, such norms are important in determining perceptions, motivations, and

behaviors. Additionally, behavioral science theory promotes the exchange of behaviors

that postulate the people who tend to exchange approximately equivalent units to

maintain a balance between what is given and received. Behavioral science theory

intends to transform behaviors for life, with lasting impact. This theory motivates people

for setting more rational goals that lead to increase in organizational productivity. As part

of social cognitive theory, this theory serves instrumental in inducing impressive reward

and punishment mechanisms.

Contributions from behavioral science research: It establishes relevant information on

causes, conditions, and consequences of induced competition on behavioral exchanges

within and between the groups. It serves instrumental in setting cooperative and

competitive group goal structures and mutual understanding to achieve them. Attempts to

establish the influence of leadership approach and styles to promote a healthy

organizational process climate. Closely analyzes the communication effectiveness among

the members of the organization and team members.

Contributions from practice theory: It enhances the managerial implications from theory

and practices of the laboratory training methods. It also serves instrumental in promoting

group dynamics and client relationships. This theory provides with codification of

various management practices and injects newer ideas of education process. This theory

helps in promoting the participatory and employee empowerment concepts like MBO and

MBWA as well as team management skills among the members of the organization. The

biggest implication of this theory is social learning and supervisors’ behavioral

modification through social learning. Additionally, this theory is highly useful in

introducing wider expert consultation, newer management interventions to contribute in

gearing up planned changes in an organization.


Contributions from practice research: This works on the concept of survey research and

feedback systems and promotes effective feedback system for organizational

development and change. This concept also closely observes the effectiveness of the

group activities at workplace and serves crucial in providing congruent and post-

performance feedback for further improvement. It also serves effective in leveraging the

efficacy of grid organizations. The concept is highly useful in behavioral modeling and

improving supervisory level human relations.

Other Contemporary Approaches to Change

A number of contemporary approaches to ODC have been created by OD professionals.

Single organization or consultant cannot use all interventions. They use these

interventions depending upon the need or requirement. Among many of them more

important ones are as follows:

1. Process kaizen, re-engineering and e-engineering

2. Process consultation

3. Sensitivity training

4. The managerial grid

5. Goal setting and planning

6. Management by objectives (MBO) and team building

7. Job enrichment, changes in organizational structure and participative management

8. Quality circles

9. TQM

10. Employee participation and empowerment

11. Teams and team work

12. Parallel learning structures

13. Normative-reeducative strategy

Kaizen, Re-engineering and E-engineering: Kaizen as it implies, is a change concept

that applies slow and steady, step-by-step, minor changes to make major changes over a

certain span of time. This is an evolutionary concept to making organizational change.

On the other hand, re-engineering is just opposite to the concept of Kaizen as it attempts

to make revolutionary changes by quickly overhauling the organizational system. Since it

attempts to bring in drastically revolutionary changes in the overall organizational

system, the change managers are likely to face very tough friction in the initial stage.

Similarly, as the generic meaning implies, e-engineering is a concept that promotes

organizational change and development by means of optimal use of science and

technology and information communication system at different functional levels of the

organization.

Process consultation: The process in which the consultant meets the members of the

department and work teams observes their interactions, problem identification skills,

solving procedures etc. S/he provides feedback to the team with the information collected

through observations, coaches and counsels individuals and groups in transforming their

behavior.


Sensitivity training: It is called a laboratory process as it is conducted by creating an

experimental laboratory situation in which employees are brought together. The team

building technique and training is designed to improve the ability of the employees to

work together as team members.

The managerial grid: This identifies a range of management behaviors based on the

different ways how production/service oriented and employee oriented states interact

with each other. Managerial grid is also called as instrumental laboratory training as it is

a structured version of laboratory training. It consists of individual and group exercises

with a view to developing awareness of individual managerial style interpersonal

competence and group effectiveness. Thus grid training is related to the leadership styles.

The managerial grid focuses on the observations of behavior in exercises specifically

related to work. Participants in this training are encouraged and helped to appraise their

own managerial styles.

There are 6 phases in grid OD which are presented as follows:

First phase is concerned with studying the grid as a theoretical knowledge to understand

the human behavior in the organization.

Second phase is concerned with team work development. A seminar helps the members

in developing each member’s perception and the insight into the problems faced by

various members on the job.

Third phase is inter-group development. This phase aims at developing the relationship

between different departments.

Fourth phase is concerned with the creation of a strategic model for the organization

where the Chief Executive and immediate subordinates participate in this activity.

Fifth phase is concerned with implementation of strategic model. Planning teams are

formed for each department to know the available resources, required resources,

procuring them if required and implementing the model.

Sixth Phase is concerned with the critical evaluation of the model and making necessary

adjustment for successful implementation.

Goal setting and planning: Each division in an organization sets the goals or formulates

the plans for profitability. These goals are sent to the top management which in turn

sends them back to the divisions after modification. A set of organizational goals thus

emerge thereafter.

Management by Objectives (MBO) is a successful philosophy of management. It

replaces the traditional philosophy of “Management by Domination.” MBO leads to a

systematic goal setting and planning. Peter Drucker (1959), the eminent management

Guru, first propagated the philosophy and then it became a movement. MBO is a process


by which the managers at different levels and their subordinates work together in

identifying goals and establishing objectives consistent with organizational goals and

perform planning for attaining them.

Job enrichment is currently practiced all over the world. It is based on the assumption in

order to motivate workers, job itself must provide opportunities for achievement,

recognition, responsibility, advancement and growth. The basic idea is to restore to jobs

the elements of interest that were taken away. In a job enrichment program the worker

decides how the job is performed, planned and controlled and makes more decisions

concerning the entire process.

Quality circles: QCs are the work teams and the members of such teams closely observe

the organizational processes and people behavior and they provide suggestions for

improvement so as to help organization move onto its road to quality management

system.

Total quality management (TQM): It is an organization-wide operating philosophy

whereby the organization attempts to achieve and maintain quality status by means of

customer focus, total participation, system standardization and measurements, continuous

improvement of the entire organizational system, and organization-wide commitment for

quality enhancement.

Employee participation and empowerment: It is an employee centered, one of the most

important foundations of OD approach to management whereby the employees are

allowed to actively participate in each stage of organizational decision-making, tracking

performance and taking necessary actions. The concept is underlined by giving power

and autonomy to the employees so as to motivate them for increased level of involvement

and participation. Creation of autonomous work groups, team building, quality circles,

survey feedback systems, introduction of quality work life programs, search conferences

and culture audit systems enhances the level of employee participation.

Kouze and Posner have developed a manual on employee empowerment known as

Leadership Challenge, and it focuses on five key areas of challenging the system that

comprise of – i. challenge the process by searching for opportunities and experimenting

and taking risk, ii. inspire a shared vision by envisioning the future and enlisting others,

iii. enable others to act through fostering collaboration and strengthening others, iv.

model the way by setting examples and planning for small wins, and v. encourage the

heart through recognition of individual efforts and widely celebrating the success.

Teams and team work: The concept to team-based management promotes the creation of

autonomous work teams and decision-making is decentralized making each team and all

its members accountable for rational decision-making. Normally, work teams take up one

issue at a time and collectively address it and move ahead with another issue. Team

ownership pays off its implementation in team-based organizations.


Parallel learning structures: First introduced by Dale and Zand (1974) in the form of

collateral organization, the parallel learning structures supported significantly in the

field of organizational development, especially in planning and guiding change programs.

Parallel learning, as its name implies, is a supplemental organization coexisting with the

usual, formal organization. The primary purpose of a collateral organization is to deal

with ‘ill-structured’ problems that the formal organization is unable to resolve.

Considerable experimentations happened on this concept in 1970s and 1980s. For

example, Gervase Bushe and Abraham (Rami) Shani summarized and extended the work

on this concept in their comprehensive work entitled Parallel Learning Structures,

presented as an alternative proposition to facilitate changes in large, bureaucratic

organizations where forces of inertia, hierarchical communication patterns, and standard

ways of addressing problems inhibit learning, innovation, and change. In other words,

parallel structures are a vehicle how to change the system, and then leading the change

process.

More specifically, the term parallel learning is referred to OD intervention where – i. a

‘structure’, i.e., specific division and coordination of labor, is created that ii. operates

‘parallel’, i.e., tandem or side-by-side with the formal hierarchy and structure, and iii. has

the purpose of increasing an organization’s ‘learning’, i.e., the creation and or

implementation of new thoughts and behaviors by employees.

More commonly, a parallel learning structure exists in the forms of steering committee,

and a number of work groups that study what changes are needed, make

recommendations for improvement, and monitor the change efforts. These serve as the

microcosms of large organizations.

Parallel structures help people break free of the normal constraints imposed by the

organization, engage in genuine inquiry and experimentation, and initiate necessary

changes for improving the overall performance of the organizations.

Normative-reeducative strategy: Normally, OD has been positioned as an intervention

means for organizational change. There are numerous strategies to be used for creating

change. For example, Chin and Benne have suggested three major types of strategies for

making change. The first type of strategies is based on empirical-rational that focus on

self-interest, and assume that people will change only when they come to realize change

is advantageous to them. The second group of strategies is normative-reeducative

strategies, based on the assumptions that norms form the basis for behavior, and change

comes through reeducation in which old norms are discarded and supplemented by new

ones. The third group of strategies is related to power coercion strategies, which is based

on assumptions that change is compliance of those who have less power with the desires

of those who have more power. Evaluated against these three groups of strategies, OD

clearly falls within the normative reeducative and the empirical-rational strategies.

According to Chin and Benne, the normative reeducative strategies are built upon

assumptions about human motivation different from those underlying the first, but the

human rationality and intelligence cannot be denied. These scholars firmly believe that


the pattern of human actions and practices are mostly supported by socio-ethical and

cultural norms and commitments on part of individuals to those norms. Socio-cultural

and ethical norms are supported by the attitude and value systems of individuals –

normative outlook which undergird their commitments. Change will not take place until

the individuals involved in change process are changed themselves. This is all about

reeducation, and change in normative components involves changes in attitudes, values,

skills, and relationships – not just the changes in knowledge, information, or intellectual

rationales for action and practice.

4.7. GENERAL MODEL OF PLANNED CHANGE

By now, you have already reviewed several theories and emerging concepts dealing with

organizational change, especially planned change. There is at least one thing common in

these all models, i.e., change is a collective task in which the OD experts and the

organization members work collectively to identify the problems, design and develop the

decision alternatives, implement the change decisions and evaluate the impact of change.

The general model of planned change attempts to systematically present these all

activities equally applicable in the course of bringing each theory into practice.

Figure 4.8 presents with the general model that guides effective implementation of all

theories in planned change.

Figure 4.8: General Model of Planned Change

Source: Cummings, & Worlley. (2001). Organization Development and Change. (7

th ed.).

p. 28.

The general model of initiating planned change intervention as presented in figure 4.8

reveals that creating a new professional relationship between the OD experts and key

members of the organization and entering into a formal contract for initiating OD

intervention project is the very first step of planned change.

Once the formal contract has been established for expert services, the expert or the

consultant performs detailed organizational and environmental diagnoses, finds the

critical areas of improvement and produces feedback for improvement. Then the people

on top management closely assess the feedback of the consultant, internalize the

problems and make decision whether they want to go for intervention.

Enter into relationship and sign the contract

Perform organizational and environmental diagnoses

Plan and implement change

Feedback

Evaluate the impact of change and institutionalize it


On management acceptance to intervention, the consultant is asked to develop a plan of

action. There is another option too. They may do it themselves. Once the plan of action is

developed, it is implemented maintaining close coordination among all agencies involved

in the change process.

Following the implementation of OD intervention, periodic monitoring, supervision and

evaluation – mid-term as well as project-end evaluation is performed to confirm the

impact of change and identify the future courses of actions to institutionalize change as

an ongoing part of organizational culture.

4.8. DIFFERENT TYPES OF PLANNED CHANGE

Basically, the types of planned change can be contrasted in terms of three fundamental

aspects that include i. magnitude and intensity of organizational change, ii. the degree to

which the client system is organized, and iii. whether the setting is domestic or

international.

Magnitude and intensity of organizational change: It could be first-order or second

order change and may fall along a continuum ranging from incremental changes that

involve fine-tuning the organization to quantum changes that entail fundamental shifting

or process or technological alteration; could be slow or rapid ones; may happen one

change at a time or many changes going on simultaneously; and operationally minor or

major changes.

Degree to which the client system is organized: Planned change efforts may vary across

the type of organizational structural systems the clients possess. Changes may happen in

overorganized situations and traditionally managed. Defusing from mechanistic to

organic structures requires change in organizations core value and operating philosophies

as well as shifting in its power and politics. Similarly, the change may happen in loosely

organized, organic model-driven organizations too. No matter, how big or small the

organization be, change is obvious in all type of organizations.

Domestic vs. international change: A planned change made in North America or Europe

may easily be benchmarked by a company located in Nepal or China with or without any

modifications at the same time of after following the evaluation of change impact in first

tested country. Multinational companies may not implement all changes in all aspects in

their all facilities located in different parts of the continents; they will rather closely

assess a number of other internal and external factors and then may make selective

change decisions. For example, Cocacola may not use the same amount of sugar and

Coca in its Coke blending in India and Canada; it will observe the consumer taste,

preference and consumption behavior and then determine accordingly the ratio of its

product blending.

4.9. CHALLENGES FACING PLANNED CHANGE

It is obvious that no change initiative will remain free of resistance from within and

beyond the organization due to many reasons. The technology that has been used to


leverage change may undergo obsolescence over time and organization may not always

be in position to update or replace the existing technology with newly advanced one. The

environmental changes, responses, uncertainty may not only bring in opportunities, more

they will create obstacles or threats which the managers are bound to face. Not always,

but sometimes, the luck also may not favor despite all things going okay. Intense

competition, ever increasing supplier, marketer, customer and employee expectations

from the organizations also are mostly challenging to meet and exceed the minimum

requirements and strengths. Biggest challenge, in some cases, is the management rigidity

against change. Discuss in group and identify at least five other such challenges facing

the mission of planned change in organizations.

4.10. MANAGERIAL IMPLICATIONS OF PLANNED CHANGE

If implemented successfully, the planned change harmonizes management employee

harmony, system standardization, and it leads to the development and promotion of

innovative and learning culture across the organization. It is planned change that

promotes operational quality of the organization and helps in maintaining efficiency and

effectiveness at all levels of organization. Moreover, the planned change, after its

institutionalization, gives birth to a new culture in an organization. Discuss in group and

identify at least five other such managerial implications of planned change in

organizations.

Unit-end Exercise

1. Define organizational change and illustrate with examples the various classifications

of organizational change.

2. Recall with examples the various levels of organizational change.

3. Discuss with examples the various forces motivating organizational change.

4. Define planned change and discuss its importance in today’s business environment.

5. Change is an opportunity rather than a threat. Comment.

6. Except the word change itself, everything needs to undergo change for its sustainable

continuance. Comment.

7. Define organizational development and change and highlight its importance for

heightened organizational performance.

8. Discuss at least three theories of organizational change and establish their relevance

in Nepalese public sector institutions.

9. Identify and elaborate the applications of at least 10 ODC interventions applicable to

the banking institutions.

10. How do you apply OD interventions in an organization as an open system? Discuss.

Discuss briefly the general model of planned change and try to relate its significance

in the entire process of learning about the process of OD intervention.

11. Discuss with examples the various types of planned change.

12. Discuss the key challenges facing planned change in context of Nepalese public and

private sector organizations.

13. How do you assess the managerial implications of planned change in context of

Nepalese banking industry


UNIT V: THE PROCESS OF OD

Your Learning Objectives of the Unit

1. Explain the OD process and roles of OD practitioner to get into OD relationship,

develop a contract.

2. Take into account the personal process issues in entering and contracting,

diagnosing organizations, diagnosing group and jobs, collecting and analyzing

diagnostic information, feeding back diagnostic information, designing

interventions [program, and organizational level].

3. Learn to lead and manage change, evaluate and institutionalize organization

development.

4. Learn to apply personal process issues in entering and contracting, diagnosing

organizations, diagnosing group and jobs, collecting and analyzing diagnostic

information, feeding back diagnostic information, designing interventions

[program, and organizational level].

5.1. THE OD PROCESS

The entire process of organizational development follows a more systematic and

scientific discourse of organizational transformation. In fact the entire task of ODC

represents a mutual, collaborative approach adopted by the management and the

consultant involved in it. Right from the stage of identification of the key issues to be

taken into consideration of change through the process of assessing the post change

intervention impact, the client and consultant have to thoroughly cooperate to each other

with high degree of interdependence and the entire process works alike an action research

supported by T-group counseling.

In true sense, the overall functioning of OD process works like an in house research

project which may be initiated by firm’s internal and/or external members.

The experts involved in the process of organizational development and change may

include internal as well as external members. In many instances, the organizations may

not involve external members as experts on the sensitive grounds of strategic

confidentiality.

The overall science ODC follows a set of coherent activities that include client selection,

entry into organizational relationship and contracting, formation of an ideal model

diagnosis and analyses, design of alternatives and goal selection for intervention,

developing a plan of action for development intervention, implementation of

development plan, monitoring and evaluation of the process fitness, relevance, and

impact of development intervention, and stabilizing the change, if it has followed a

successful, second-order change process.

Keeping in view the aforesaid sequential functions, figure 5.1 presents a simplified

portray of the key steps involved in the process of organizational development and

change in an organization.


Figure 5.1: The Process of Organizational Development and Change

Step I: Enter into an OD relationship and establish a contract for service 1. Clarify the organizational issues to be addressed for development and change 2. Determine the relevant client to be responsible for addressing the organizational issues 3. Select an OD practitioner to help organization address the issues for development and change.

Step II: Perform organizational diagnoses 4. Diagnose the organization 5. Diagnose the groups 6. Diagnose the individuals 7. Diagnose the works and operating systems 8. Diagnose the environment

Step III: Perform data collection and analyses 9. Develop instruments (questionnaires, checklists, observation checklists, etc.) 10. Perform diagnostic research (observation, interviews, survey, etc.) 11. Collect existing information from internal databases 12. Analyze the data 13. Triangulate information

Step IV: Provide feedback 14. Determine the contents of feedback 15. Communicate the feedback to the respective counterpart 16. Confirm from the counterpart the authenticity and relevance of the feedback provided 17. Gain management ownership and commitment for change as directed by the feedback

Step V: Design intervention for organizational development and change 18. Design and confirm the effectiveness of the intervention 19. Communicate the process interventions including procedural, human, structural, technical, and

strategic aspects of changes

Step VI: Provide leadership for managing change 20. Develop a shared vision for change 21. Motivate change initiatives 22. Gain wider support on change mission 23. Manage transition, monitor and supervise the change in progress 24. Sustain momentum of change

Step VII: Evaluate the impact and institutionalize ODC interventions 25. Evaluate the impact and sustainability of change 26. Institutionalize the change interventions


As presented in figure 5.1 above, it can be inferred that ODC is a systematic and

continuous process of bringing shifts in organizational process climate. The process

starts with establishing professional relationship with the client organization, followed by

signing the service contract and performing initial diagnoses and confirmation of tools

and techniques of data collection and analyses. As the entire process works just like a

research project, data collection, processing, analyses, and providing feedback for

change. Based on the feedback provided by the consultant, relevant policies and

programs are designed and implemented to execute change. Such action needs be closely

supported by continuous monitoring, supervision and evaluation to make sure that the

change initiatives take place as designed and also to confirm if the expected change

outcomes are achieved as a result of change.

5.2. OD PRACTITIONER SKILL COMPETENCE REQUIREMENTS

First of all, a question may arise – who is known as an OD practitioner? An OD

practitioner could be an internal or external person who serves as an expert of ODC

interventions for the organization. Most of the cases, the OD practitioners are known as

the professionals from other disciplines who apply OD practices, e.g., TQM managers,

IT/IS managers, compensation and benefits managers. Managers and administrators who

apply OD from their line or staff positions, e.g., project managers, product managers also

serve as the OD practitioners.

So, another question arises – can everybody serve as an OD practitioner? Of course, not!

To perform successfully as an OD practitioner, one needs to possess some distinctive

knowledge, skill competencies and ethical compliance that may include as follows:

Knowledge Domain: An OD interventionist should possess adequate knowledge of a

number of specialized areas that include –

a. individual psychology: requires depth understanding of perception theories,

learning theories, and motivation theories.

b. organizational psychology: should include but not limited to the understanding of

organizational culture, comparative cultural practices, work design and work

group dynamism, interpersonal relations and communication, power and politics,

leadership and decision-making, goal setting, managing conflict and ethical

dilemmas in an organization.

c. management and organization theory: hands on knowledge about planning,

organizing, leading and controlling; organizational structure and design;

information, communication and contingency theory; modeling organizational

offerings in line with environmental changes; knowledge on operating with ICTs

and innovation.

d. research and innovation: needs depth understanding of applied and basic

statistical applications, research methodologies, sampling techniques, developing

and administering management research, treating data, presenting and analyzing

the information, and producing convincing research information and report.

e. functional knowledge of doing business: project management, collaboration,

problem solving, using technology, and teaching, training and coaching

employees involved in change process.


Skill Competence Domain: In addition to above stated areas of knowledge, an OD

interventionist should possess hands on skill competencies in following areas so as to be

able to best utilize the scholastic knowledge that he or she possesses:

Intrapersonal skills with self-awareness and knowledge about the organization, its

strategies, core competencies and awareness about the job of an ODC consultant will

serve instrumental in the process of delivering the ODC services to the client

organization.

On ODC consultant should possess adequate interpersonal skills so as to work more

successfully with others and groups. Capacity to lead a diverse work force, understanding

of cross-cultural diversity and ability to read and assess others’ sentiments and aspirations

will help maintain better relationships.

General consultation skills include ability to perform proper diagnosis, process

observation and individual and group counseling. The person should be able to get skills

and knowledge used in the discourse of ODC intervention.

In addition to this, an ODC interventionist should have depth understanding of

organization development theory so as to be able to design and implement right ODC

interventions for the client organizations. Hands on practical knowledge of change

processes will be an added advantage.

Some of the most frequently demanded roles of OD practitioners include following:

1. Positional roles: internal vs. external

2. Marginality: ability to straddle boundaries

3. Emotional role demands: emotional intelligence, understanding of alternative

ways to work with different clients.

4. Use of knowledge and experience: Attend to all phases of the business. Focus on

how we are working with the clients. Learn from experience and apply it in

identical situations.

As a change consultant, an OD practitioner should possess the following styles:

1. Stabilizer: forced upon practitioner.

2. Cheerleader: employee motivation/morale; non-confrontational; maintaining

harmony.

3. Analyzer: efficiency; rationality; confrontational; authoritative; expert; clients’

properly diagnosed problem; individual satisfaction not as important.

4. Persuader: effectiveness and morale; low risk; avoids confrontation with forces;

“good enough;” satisfy different forces; weak change intervention.

5. Pathfinder: effectiveness, satisfaction, participation, collaboration;

confrontation/conflict = means to an end.

The need of these all specialties in an OD interventionist demands some specific core

competencies that include expertise in organization design, research and innovation,

system thinking and system management, and proven expertise in ODC interventions.


Similarly, the person should be highly skilled in managing and facilitating the consulting

process; systems analyses and diagnoses; visualizing, prioritizing, choosing and

designing ODC interventions; developing and empowering client capabilities in initiating

ODC interventions; and monitoring and evaluating organizational development and

change projects and assessing the outcomes and estimating future impacts of change.

Ethical Domain: Similarly, an OD practitioner also should put due consideration on his

or her professional ethics. For example, misrepresentation of skills will lead to

professional and technical ineptness. Misuse of data may cause serious and unwanted

employee punishment, layoffs and breaching confidentiality of the organization. In some

cases, the OD consultants may create organizational obstacles as they tend to create

collusion and coercion among the people. Another equally important dilemma is that

most of the cases, the OD consultants are blamed on their promises to unrealistic and

impossible outcomes. Time again, the OD practitioners’ actions may lead to the formation

of conflict over organizational values and goals.

Using the information provided in figure 5.2 below, please produce a detailed discussion

on ethical dilemmas of an OD practitioner:

Figure 5.2: Model of Ethical Dilemmas

As presented in figure 5.2, basically, an OD practitioner has to play a dual role – he or

she has to act as a change agent for an organization and at the same time, there is another

equally important role to act as integral part of client system – both guided by

organizational and professional values, goals and needs of the institution, at large.

Similarly, an OD interventionist will have to face numerous situations demanding his or

her clarity of purpose and active initiative taking for managing conflict that may arise as

a result of change initiatives undertaken.

Finally, an OD interventionist also has to act with purity to maintain highest level of

ethical standards in respect with proper organizational representation, use of information

gathered, maintenance of ineptness, coercion and goal directedness of the change

mission.


Any adverse effect created due to malfunctioning or irrational act of OD interventionist

damaging organizational image, confidentiality, process and technical ownership, and

stakeholder relationship will never be tolerated.

5.3. PERSONAL PROCESS ISSUES IN OD PROCESS

Entering and contracting are the initial steps in OD process. The steps involve

preliminary problem definition and explanation of opportunities for developing and

establishing a collaborative relationship between the OD practitioner and members of the

client organization. Entering and contracting help establish preliminary parameters for

carrying out the subsequent phases of OD intervention.

Entering and contracting may vary in terms of task complexity and assignment

contractual formality depending on a number of situational constructs that may include

client and practitioner’s reputation, image of the client organization, urgency of service,

etc.

Issues related to step I: Clarifying the organizational issues, determining the relevant

client, and selecting the appropriate OD practitioner are the key personal process issues

related to entering into relationship and OD service contracting.

Issues related to step II: Similarly, diagnosing the organization should consist of

performing depth observation to build up appropriate understanding of the various

elements of input, process or transformation and output components of the organization

under consideration. Such diagnosis should cover individual level, group level and

systems level analyses of input, process and output or operational outcomes.

Issues related to step III: Additionally, diagnosing the groups and jobs involves closer

observation and analyses of organizational structure and design at input level; goal

clarity, task structure, group composition, team functioning, and group norms and values;

and finally, the level of team effectiveness in terms of quality of work life and

performance and the elements to be observed at output level.

Issues related to step IV: After the diagnoses of groups and jobs, another role of OD

interventionist is to collect and analyze the diagnostic information. It involves a

complete cycle of data collection and feedback including planning to collect data,

performing core activities of data collection (collection, analyzing, and feeding back) and

following up.

Issues related to step V: As a matter of sequential and systematic personal process

function, feeding back the diagnostic information comprises of determining the contents

of feedback and offering the survey feedback.

Issues related to step VI: Based on the feedback provided on the basis of diagnostic

information, there starts another equally important role of an OD interventionist –

designing the intervention that may include a number of issues pertaining to strategic,


structural, technological, human and operational aspects related to OD interventions to be

initiated.

Issues related to step VII: After the change and development interventions are ready, it is

followed by leading and managing the change implementation which includes creating

a vision, motivating change, developing political support, managing the transition, and

sustaining momentum – all leading to effective change management in organization.

Issues related to step VIII: Finally, evaluating and institutionalizing the change

intervention is the last personal process function of an OD interventionist. This step

needs due consideration on a number of important issues including all three levels of

analyses.

5.4. OD INTERVENTIONS Practicum/Seminar/Workshop Proceedings Required: Organizational level [classifying

OD interventions, organizational confrontation meetings, intergroup relationship

interventions for smaller and larger groups, grid organization development, leading and

managing change, selected theories of organizational change – overview of change

activities, motivating change]; Human process interventions [interpersonal and group

process approaches: T-groups, process consultation, third party interventions, team

building]; Human resource management interventions [performance management, and

developing and assisting member]; Technological interventions [restructuring

organizations, employee involvement, work design]; Strategic interventions

[management of organization environment relationship, initiating organizational

transformation and change, inducing and transforming organizational culture, strategic

revisits].

Unit-end Exercise

1. Discuss with relevant examples the different steps involved in the process of

ODC.

2. Produce detailed accounts of expected skill competencies, roles, and ethical

considerations of an OD practitioner.

3. Discuss in detail the personal process issues in entering and contracting,

diagnosing organizations, diagnosing group and jobs, collecting and analyzing

diagnostic information, feeding back diagnostic information, designing

interventions [program, and organizational level].


REFERENCES

Beckhard, R. (1969). Organization development: strategies and models.

Bennis, W. (1969). Organization development: its nature, origins, and prospects.

Cummings, T. G., & Worley, C. G. (2001). Organization development and change. (7th

ed.). Singapore: South-Western College Publishing.

French, W. L., Bell, Jr. C. H., & Vohra, V. (1999). Organization development:

behavioral science interventions for organization improvement. (6th

ed.). New

Delhi: Pearson education.

Kotter, J. P. (1995). Leading change: why transformation efforts fail. Harvard Business

Review, March-April 1995, pp. 59-67.

Rijal, C. P. (2012). Graduate manual of OB. Kathmandu: Nepal Academy of Tourism

and Hotel Management (NATHM).

Robbins, S. P., Judge, T. A., & Sanghi, S. (2009). Organizational behavior. (13th

ed.).

New Delhi: Dorling Kindersley (India) Private Limited, a licensees of Pearson

Education.

DISCLAIMER

The course coverage and its syllabus may undergo changes in course of time to

accommodate changing circumstances within and beyond our teaching learning system.

However, such a change will be informed to all the graduates in right time. The class

schedule also may change as per developing circumstances. The contents will be covered

in the order presented in course details, the actual timing and duration of delivery may

change from week to week as the course progresses. The schedule of delivery may also

be altered as per the availability of course instructor in particular days. Additional

sessions are likely to happen in this course as there is a need to fix many issues within

limited number of credit hours.

PROFESSIONAL MOTIVATION OF THE COURSE INSTRUCTOR

My aim is to serve as a visionary leader in transforming institutions, professionalism, and ethical

practices by means of innovation for total quality management systems development and

implementation for prosperity and lasting positive impact in humanity.

I am interested in, and competent for undertaking systematic inquiry and developing new

paradigms in the areas of strategic thinking, governance and policy interventions, institutional

incubation, organizational development and change, team leadership, research and development,

and professional development.

As an outcome of more than twenty years of involvement in providing leadership for continuous

research and innovation, institutional leadership, professional and institutional development, and

working closely with responsive institutions in Nepal and abroad, I have derived three new

models for promoting institutions by injecting in them with total quality management (TQM)

process climate. I wish these models can be used in various organizations with slight

customization to initiate the design and implementation of quality management system in

organizations for the attainment of systems innovation, change and transformation. My works are

mostly guided by the philosophy and operating principles and value systems in reflection from

these models. The models are briefly portrayed in my Resume.


I have already served many institutions and missions with best performance results in everything

I have done in these institutions during my almost two-decade professional career. Undertaking

welfare initiatives is my passion, I am a team player and capable of managing single handedly,

even large scale research and development projects. I am passionate in designing and facilitating

world class learning opportunities through various training and seminar/workshop delivery. I am

good at professional and research writing, people and projects management, mobilizing

community and work teams, and above all – providing with visionary insights. People always

appreciate my multi-tasking and inspirational leadership style.

My early schooling started from a home-based Gurukul Learning and then shifted to formal

education from an ordinary community school in Dailekh district of Nepal, obtained the masters

degree from one of the finest business schools in the world, and finally earned an MPhil and

doctoral degree from one of the best universities in the South Asia.

Started as a freelance school teacher almost 25 years ago, my major areas of works specialization

today include institutional incubation, system design and visionary leadership, university level

teaching and academic guidance, policy advocacy, research and innovation, project management,

and institutional and professional development.

I am now looking for an opportunity to undertake a more challenging and long-term career with

depth scope for system design and strategic thinking, research and development, institutional and

professional development, working with community interface, partnership with international

development organizations with cross-cultural diversity. I am confident of my interpersonal and

professional skill, competence, maturity, ability and willingness for such careers.

In the recent times, a vision has been provocation me for Nepal to be known by rest of the world

as a ‘vibrant economy’ whereby there would be dynamism in place in the 1. national politics, 2.

national public administration and bureaucracy, 3. national security and defense, 4. private

service, trade and commerce, 5. social development, and 6. international advocacy by means of

truthful youth development and promotion for taking flights of these sectors to claim my

motherland a ‘vibrant economy’ in the times of global competition imperfection.

Chanakya P. Rijal, PhD

Kathmandu, Nepal

July, 2015