Final Discourse Paper: May 31- June 1, 2019
By: Kristine Salvador
Organizational Development
A management initiative wherein the organization undergoes “change” - change can be through
changing the company’s structure, strategies, operational methods, technologies, or
organizational culture.
Change has to be maintained by “people” and done by “people” of the organization - reason why
it is tucked in Human Resource (HR). It is indispensable for HR not to be involved.
Talking about change, OD deals with the never ending pursuit to convince people in the
organization. You have to convince them to adapt to the change. This can be done by being on
the personal level - you have to have them “buy in” your idea.
Organizational Development is about creating “change” and gaining “competitive advantage”.
When talking about competitive advantage, Porter’s Vale Chain Analysis can be of great help.
Value Chain Model
Developed by Michael Porter. He further discussed this in his book (“Competitive Advantage”,
1985).
It is a set of activities that help in understanding how value is basically created within
organizations.
VALUE CREATED and CAPTURED - COST of CREATING that VALUE = MARGIN
Ex: Manufacturing Companies - Acquire raw materials and produce
Value Created
something (product) out of it.
Margin
The above shows that the more value an organization creates, the more profitable it is likely to
be.
More Value to Competitive
Customers Advantage
Competitive Advantage - is what makes an entity’s goods or services superior to all of a customer’s
other choices.
- all things being equal, what sets your organization apart and above the rest?
The Value Chain Model focuses on “systems” how inputs are changed into outputs
purchased by customers.
Elements of Porter’s Generic Value Chain:
Primary Activities - relates directly to the physical creation, sale, maintenance & support of a
product or service.
> Inbound Logistics
> Operations
> Outbound Logistics
> Marketing & Sales
> Service
Support Activities - supports the primary functions.
> Procurement
> Human Resource Management
> Technological Development
> Infrastructure
The Primary and Support activities are the “building blocks” used by companies to create a
valuable product/service.
Michael Porter’s Value Chain Model is significant in the field of Organizational Development in a
way that it helps the organization understand and develop strategies that will create more value to
its customers which will let them achieve competitive advantage thus, development of the
organization.
Talking about Organizational Development, one question that comes into mind is - can we stop
Organizational Change from happening?
“Change” as we all know it is inevitable. Just as long as there is “time” - which never runs out,
there will always be change. The world continuously revolve and with every second that move -
there is change already. This can also be related to Organizational Development. OD cannot be
stopped from happening because there are a lot of factors that affect it. These factors are also
constantly happening as the trends in the industry also develop and change (technological
advancements, etc). The movement of people also in the organization doesn’t stop as well. We
can therefore categorize these factors into two:
Internal Factors External Factors
Systemic Forces Political Forces
Inadequate Existing Administrative Economic Forces
Processes Technological Forces
Individual/Group Speculations Governmental Forces
Structural Changes Competitive Pressures
Changes in the Technology Changes in the Needs and
People Focused Change Preferences of Customers
Issues with the Profitability
Resource Constraint
The way you can manage change in an organization differs on how the change happened/will
happen. These are:
1. Planned Approach to Change
process of preparing the entire organization/part of it, for new goals or a new direction (culture,
internal processes & structures, metrics, rewards, other related aspects).
foresee clearly the difference between the present and the desired state and the means to reach
the desired state
assumes smooth sailing from current state to the desired state without significant disruption
from internal/external factors
2. Emergent Approach to Change
based on the assumption that change is a continuous, open-ended and unpredictable process of
aligning and realigning an organization to its changing environment (Burnes, 2009)
believes in natural emergence of factors during the change implementation phase that has never
been forecast earlier
3. Incremental Approach to Change
small adjustment made to an end result
making an incremental change to the way things are done typically does not significantly
threaten existing structures/current methods
Looking at how Organizational Change evolved throughout the years, we can look at - the First
Generation OD and Second Generation OD. As the changes and development in the work
environment emerge, the distinction among the generations of organization change also becomes
evident. The impact on whether the change is more of a more recent or older generation is seen as
to when was the time of the initiated change.
First Generation of OD:
Behavioral Science
Organizational Development
Earliest OD Theories can be traced back from the frameworks and theories of Behavioral
Scientists and applied in the Organizational Context.
External experts were being engaged to facilitate enhancing the efficiency and productivity of
organizational members through understanding and experimenting with the individuals’
behaviors and social relationships.
Second Generation of OD:
Incremental Changes at a Radical/Revolutionary Changes
smaller unit at a larger scale
Focus was on Organizational Transformation (as a whole).
OD was interested in helping the organizations to change perspective about itself and the
environment it was operating in.
The organizational transformation required major changes in the structure, processes, systems,
strategy and culture of the organization.
As Organizational Change evolved throughout the years, the approaches to these changes also
evolved - the Humanism and the Systems Approach.
1. Humanism Approach
Organizational Humanism Intrinsic Motivation of Organization’s Economic
Personnel Efficiency
(personal growth &
well-being)
Organizational Humanism was based on
Hawthorne’s Experiments
(1930)
need for organization’s to
adopt humane
management skills and
interactions to BUILD
SOCIAL RELATIONSHIPS
Organizational Humanism integrates employee morality and ethics with the organization’s
needs.
Humanism focused on creating authentic relationships among workers, increasing individual
competence, promoting more inter group cooperation and flexibility.
2. Systems Approach
Systems Approach Repeated Cycles of:
Input, Throughput, Output, Organizational
Feedback Behavior
of an Organization & its External
Environment
First applied by Katz and Kahn to organizational behavior.
The significance of the systems approach to organizational development is that it measures
effectiveness based on long-term growth/sustainability.
As Organizational Development is about developing strategies for the company that will create
more value to its customers which will let them achieve competitive advantage, interventions has to
be made so we can move from status quo to the company’s objectives. The SWOT and TOWS
Analysis can help in coming up with interventions and strategies.
SWOT Analysis
It is a useful technique for understanding your strengths & weaknesses, and for identifying both
the opportunities open to you and the threats you face.
It is also called as the IE Matrix (Internal-External Analysis)
Planning Tools
INTERNAL: Strengths EXTERNAL: Opportunities
Threats
Weaknesses
Looking at SWOT Analysis in the Business Context, it helps you carve a sustainable niche in your
market.
Looking at SWOT Analysis in a Personal Context, it helps you develop your career making best use
of your talents, opportunities, abilities.
TOWS Matrix
It is a useful technique in developing strategies from External-Internal Analysis.
Action Tool
EXTERNAL: Opportunities INTERNAL: Strengths
Threats
Weaknesses
SWOT is a method in which the internal strengths and weaknesses of a company as well as its
external environment of opportunities and threats are being analyzed for the development of
strategies of the company. On the other hand, TOWS extends a SWOT Analysis. TOWS examines a
company’s external opportunities and weaknesses and compares them to the company’s strengths
and weaknesses. The analysis forms the basis to also develop strategies to form actionable tactics.
Strategies can be implemented by first doing a diagnosis in the organization - knowing what to
change, what is the problem is and what intervention could be done. The diagnosis includes the
gathering and analyzing of data and drawing conclusions based on the findings, with the goal to
implement the necessary changes to solve these problems.
DIAGNOSIS
(bridges the gap)
“what is” “what it should be”
With this, several diagnostic models could be used.
Force Field Analysis Model
developed by Kurt Lewin
states that there are lots of different factors (forces) for and against making change that we
need to be aware of (analysis)
weighing up the 'pro's' and 'con's' of the change
if the 'pro's' (factors FOR change) outnumber the 'con's' (factors AGAINST change), more likely
we will be pushed to change
Likert’s Model
Rensis Likert “Likert System”
facilitated the measurement (quantified) of the "soft" areas of
management, such as trust and communication
&
recognized the four management
styles/systems
1. Exploitative-authoritative: Characterized by decision-making in the upper echelons of the
organization, with no teamwork and little communication other than threats.
2. Benevolent-authoritative: Based on a master-servant relationship between management and
employees, where rewards are the sole motivators and both teamwork and communication are
minimal.
3. Consultative: Managers partly trust subordinates, use both rewards and involvement to inspire
motivation, foster a higher level of responsibility for meeting goals, and inspire a moderate amount of
teamwork and some communication.
4. Participative-group: Based on managerial trust and confidence in employees; collectively
determined, goal-based rewards; a collective sense of responsibility for meeting company objectives;
collaborative teamwork and open communication.
Likert’s studies confirmed that the departments or units employing management practices within
Systems 1 and 2 were the lease productive, and the departments or units employing management
practices within Systems 3 and 4 were the most productive.
Likert Scale
Type of scale in which a statement about something is made and is then followed by a series of
numbers which people can choose to show how much they agree with something.
Ex: The Police are always impartial in their treatment of suspects.
Strongly agree 1 2 3 4 5 Strongly disagree.
If you then sum the numbers for several statements and you can come up with a score that
represents the person’s attitude towards the subject.
Weisbord’s Six-Box Model
Marvin Weisbord “Weisbord Six-Box Model”
diagnose organizational issues that might otherwise
go unnoticed by senior management
enables the management of an organization to evaluate the organization’s performance in a
structured way by focusing on issues such as scheduling, motivation and rewards, the role of
support functions, internal competition between organizational units, partnerships, hierarchies,
and the delegation of authority, organizational rewards and performance evaluation
complies with the basic system approach of organizational performance and allows managers to
examine the organization’s input and output
Purposes: The organizational objective (vision) of the company has to be clear to the employees. They
need to know why they need to abide by them even if their individual philosophies are completely
different.
Structure: This is the bigger picture of power relationships and formal relationships between
functional groups in an organization. Structure should give a clear idea of the legal power, and it
should also provide an accurate and fitting overview of how the goals of the organization need to be
achieved and who is responsible.
Relationships: Relationships include individuals, groups, technological and other functional sections
that effectively work together.
Rewards: Reward systems include both official and unofficial rewards and have to be analyzed in
order to ensure sufficient (extrinsic) motivation among employees.
Leadership: Managers need to use the human resources they have at their disposal as effectively as
possible. They also use materials and other equipment from the organization in order to try and
achieve the organization’s goals. They have to optimize collaboration between employees, in order to
jointly work towards their goal or on the production of a single product. The intensive leadership style
they will employ for this is aimed at tasks and relationships, managing and monitoring goals,
identifying problems, and be highly adaptive to their environment, both internal and external.
Helpful Mechanisms: These are methods that help employees to coordinate their activities (ex:
descriptions of organizational approaches, procedures, seminars, notes, reports, perspectives, or
integrated information systems).
McKinsey’s 7-S Model
Tom Peters
"McKinsey 7-S Framework”
Robert Waterman
Julien Philips Richard
Pascale Anthony Athos
7 internal aspects of an organization that need to
be aligned to be successful
gives emphasis on human resources (Soft S), rather than the traditional mass production
tangibles (capital, infrastructure and equipment), as a key to higher organizational performance
shows that all the seven areas are interconnected and a change in one area requires change in
the rest of a firm for it to function effectively
used to facilitate organizational change
used to help implement new strategy
used to identify how each area may change in a future
used to facilitate the merger of organizations
Nadler-Tushman Congruence Model
David Nadler
“Nadler-Tushman Congruence Model”
Michael Tushman
an organization’s performance is based on four
elements
task people
structure culture
the higher the compatibility or congruence, the greater is the performance of the organization
if one element is out of balance (under represented/over represented), it can have a negative
effect on performance
thoroughness of the model allows companies to adjust it’s structure in order to correct problems
that arise
Trist’s Socio-Technical System Theory
Eric Trist
Fred Emery “Socio-Technical System Approach”
harnessing the people & technical aspects of an
organizational structure and processes to
achieve joint optimization and excellence
Burke-Litwin Causal Model of Organization Performance & Change
W. Warner Burke “Burke-Litwin Causal Model of Organization Performance &
George Litwin Change”
cause-and-effect "open system theory”
relationship
Burke Litwin Model: 12 Elements
The 12 elements are grouped according to the element groups and are connected to each other. Due
to them being connected, the 12 elements can also influence each other.
1. External Environment
According to the model, it is especially external influences that are important for organizational
changes. Think of the economy, competition, customer behaviour and politics and legislation. When
the influences from the external environment can be identified, this helps organizations to better
understand the direct or indirect impact and act accordingly. An organization has no control over
external influences.
2. Mission and Strategy
This describes the organization’s goal and the processes that ensure the goal and course can be
realized. The vision, mission and accompanying strategy are defined by the highest level of
management. It is recommended that the organization always checks whether these suit the position
of the employees.
3. Leadership
This concerns the responsible positions that give direction to the rest of the organization. Managers
are responsible for developing a vision and motivating employees. By having insight into key positions,
this can be addressed in the event of a change.
4. Organizational Culture
Every organizations has its own values. This is less formal than the Mission and Strategy element, but
is present across the entire organization. An organisation’s culture includes both explicit and implicit
rules, including regulations, practices, principles and manners.
5. Structure
This concerns the hierarchical structure of the organization, recognizable departments and formal
communication channels. It also includes the position-oriented structure, such as responsibilities,
authority, communication, decision-making and control.
6. Systems
This is about policy and procedures; mechanisms that are in place to help and support employees.
Think of IT services, facility departments and internal customer support. It covers both employees and
the organization’s activities.
7. Management Practice
This is about the behaviour and activities of managers, which are generally aimed at implementing
the overall strategy. How well do managers comply with the strategy and how do they deal with the
resources at their disposal? How is their relationship with the employees? These are all questions that
arise when discussing management practice.
8. Working Climate
This relates to employees’ experiences when it comes to the work environment. How do they
experience mutual cooperation, how comfortable do they feel, and do they feel sufficiently rewarded
for their effort? The mutual relationship with colleagues and the extent to which an organization
makes employees happy are very important when discussing the working climate.
9. Tasks and skills
This is about the (individual) task requirements and the alignment of the job description with
employees’ expertise. What are the requirements of a specific job, and does this fit with the skills and
knowledge of an individual employee? It is all about linking the right positions to the right employees.
10. Individual values and needs
This relates to the demands and expectations that employees have, including their remuneration,
work-life balance, their role within the organization and their responsibilities. It is about the opinion
employees have about the quality of their work and aims to discover their needs. In some cases, this
may result in task expansion or even job enrichment, meaning the employee is given more
responsibility.
11. Motivational Level
Motivation is about setting goals and inspiring and stimulating employees. The more motivated
employees are, the more willing they are to dedicate themselves to the organization.
12. Individual and General Performance
This dimension considers the performance level of both the individual employee and on a
departmental and organizational level. As mentioned earlier, this can be measured on the basis of
turnover, productivity, quality requirements, efficiency and customer satisfaction.
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ent/understanding_drivers_for_change.pdf
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