Organization Design

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UN IT-1

Organizational Development (O.D):

OD is a set of behavioral science-based theories, values, strategies and techniques aimed at the planned
change of the organizational work setting for the purpose of enhancing individual development and
improving organizational performance, through the alteration of organizational members on the job
behaviors.
Organization Development is a systematic process for applying behavioral science principles and practices
in organization to increase individual and organizational effectiveness.
Objectives of Organizational Development:
(a) Improvement in the performance of the organization.
(b) Improvement in the ability of the organisation to adapt to its environment, and
(c) Improvement in inter-personal and inter-group behavior to secure team work.
(d) Improve organizational performance as measured by profitability, market share, innovativeness, etc.
(e) Improve internal behavior patterns such as interpersonal relations, intergroup relations, level of trust and
support among the role players.
Characteristics of Organizational Development:
1. Organizational development is an educational strategy for bringing a planned change.
2. It is related to real problems of the organization.
3. Laboratory training methods based on experienced behavior are primarily used to bring change.
4. O.D. uses change agent (or consultant) to guide and affect the change. The role of change agent is to guide
groups towards more effective group processes rather than telling them what to do. Change agents simply
assist the group in problem solving processes and the groups solve the problems themselves.
5. There is a close working relationship between change agents and the people who are being changed.
6. O.D. seeks to build problem-solving capacity by improving group dynamics and problem confrontation.
Steps in Organizational Development (O.D):
Lawrence and Lorsch have provided the following steps in organizational development:-
1. Problem identification—Diagnosis:
O.D. program starts with the identification of the problem in the organization. Correct diagnosis of the
problem will provide its causes and determine the future action needed.
2. Planning Strategy for Change:
O.D. consultant attempts to transform diagnosis of the problem into a proper action plan involving the
overall goals for change, determination of basic approach for attaining these goals and the sequence of
detailed scheme for implementing the approach.
3. Implementing the Change:
O.D. consultants play an important role in implementing change.
4. Evaluation:
0. D. is a long-term process. So there is a great need for careful monitoring to get process feedback whether
the O.D. programme is going on well after its implementation or not. This will help in making suitable
modifications, if necessary. For evaluation of O.D. programme, the use of critic sessions, appraisal of
change efforts and comparison of pre- and post-training behavioural patterns are quite effective.
Belief, Values and Assumptions of OD
Belief:
A belief is a proposition about how the world works that the individual accepts as true; it is a cognitive fact
for the person.
Assumptions:
Assumptions are beliefs that are regarded as so valuable and obviously correct that they are taken for
granted and rarely examined or questioned.
Values:
Values are also beliefs and are defined as “beliefs about what is desirable or a ‘good’ and what is undesirable
or a ‘bad’.
Three types of OD Values
 Humanistic
 Optimistic
 Democratic

• Humanistic Values proclaim the importance of the individual; respect and dignity, assume that everyone
has intrinsic worth, view all people as having the potential for growth and development.
• Optimistic Values states that people are basically good, that progress is possible and desirable in human
affairs, and that rationality, reason , and goodwill are the tools for making progress.
• Democratic values assert the sanctity of the individual, the right of people to be free from I llogical misuse
of power, the importance of fair and equitable treatment for all.
Thus, values, assumptions, and beliefs are all cognitive facts or propositions, with values being beliefs about
good and bad, and assumptions being strongly held, relatively unexamined belief accepted as the truth.

UNIT-2

Organizational change
Organizational change management (OCM) is a framework for managing the effect of new business
processes, changes in organizational structure or cultural changes within an enterprise. Simply put, OCM
addresses the people side of change management.

A systematic approach to OCM is beneficial when change requires people throughout an organization to
learn new behaviors and skills. By formally setting expectations, employing tools to improve
communication and proactively seeking ways to reduce misinformation, stakeholders are more likely to buy
into a change initially and remain committed to the change throughout any discomfort associated with it.

1. ADKAR model
ADKAR is a change management model that’s goal focused. According to the model, everything you do
during the change management process is sequential: you must achieve cumulative goals during the process
to achieve your overall change goal. Successful change happens when phases of change for your business
and your employees happen simultaneously.
Here are the change steps to achieve in the ADKAR model.
A - Awareness
Recognize the need for change.
D – Desire
Participate and support the change.
K – Knowledge
Know how to change and identify what the change will look like in terms of skills and behaviors.
A – Ability
Implement the change on a daily basis.
R – Reinforcement
Sustain the change over the long term.
2. Lewin’s change management model
Kurt Lewin developed his change management model during the 1950s, and it’s based on three simple stages:

 Unfreeze
 Change
 Freeze

Lewin’s model is easily understood with a metaphor of ice. Let’s say you had a cube of ice but you needed a
cone. You would melt the cube of ice (Unfreeze), shape the water into a cone using a model (Change), and
freeze the water once again (Freeze). Let’s break down each stage for a better idea.
Unfreeze
This is the preparation stage. Show your employees that change is necessary. Next, challenge the processes,
values and culture of your company. Is your company’s present state conducive to your change goals?
According to Lewin, the unfreeze stage is the most difficult of the entire process. And it’s no surprise. You’ll
challenge everything you and your employees know about your company, leading to uncertainty.
Change
This is where your employees begin accepting and adopting the change. This can be an intense period as
employees acclimate to change and flex their problem solving muscles in new ways. To ease this process,
provide plenty of support.
Freeze
Change stabilizes how your company will operate going forward. Employees are now acclimated to new
business processes and accept new ways of performing duties. Your company supports and practices the
changes entirely.
3. Kotter’s 8-step change model
John Kotter introduced his Eight Steps to Change in 1996 after analyzing 100 changing organizations.
Kotter revised his top-down change model in 2015 to reflect the increased pace of organizational change
since the 1990s. Here’s a quick breakdown of his eight steps.
1. Create sense of urgency
Recognize a big opportunity and spark excitement among employees.
2. Build a guiding coalition
Create an internal team to manage the change. Your team will guide, coordinate and communicate its
activities across the entire organization.
3. Form strategic visions and initiatives
Your change should align with your business’s strategic vision. If your company’s vision is to sell the most
bottle caps in North America, for example, make changes that enable that goal.
4. Enlist volunteer army
Inspire employees to support change. Engage volunteers with activities and provide meaningful ways they
can contribute to your company’s success.
5. Enable action by removing barriers
Remove barriers like inefficient processes and hierarchies so your coalition and volunteers can work with
the freedom to effect change.
6. Generate short term wins
Don’t let your long-term change goal diminish the effects of daily, weekly or monthly short-term wins. Set
incremental goals and celebrate your organization’s achievements.
7. Sustain acceleration
Balance change management with change leadership to adapt quickly and often. Manage by planning,
budgeting and organizing; lead by establishing direction, motivating and aligning employees with their
strengths.
8. Institute change
Communicate the connection between your employees’ new, changed behaviours and your company’s
success. Transparency will help show employees why change is valuable and keep them on track.
4. Kubler-Ross five-stage model – the Change Curve
Originally proposed as the five stages of grief in the 1960s, Kubler-Ross’s change curve eventually earned
widespread recognition as a business change model by the 1980s. The Change Curve isn’t an independent
change model but rather a model to help you empathize with your employees as you implement change.
The Change Curve is represented with these five steps:

 Denial
 Anger
 Depression
 Bargaining
 Acceptance

One downside of this model: It assumes that your employees will only react negatively to change, and of
course, not all change is bad, especially when it’s helping improve your business. Ensure your change
management plan addresses each of the five stages as you implement your change.

Change, going forward


Each change management model has its advantages and disadvantages, but the goal is to ensure you understand
the impact that change will have on your employees and that you keep the transition as smooth as possible.
Allow proper time for adaptation and be transparent about how change will improve your company and
benefit your employees.

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