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Unit Two

This document discusses approaches to organizational change and renewal. It covers topics like understanding organizational culture, approaches to managing change like transformation and development, and systems-based approaches. Organization development focuses on improving individual, team, and organizational effectiveness through planned change processes like modifying structures, management, and technologies. The goal of organizational renewal is to build continuous innovation and adaptation through a flexible approach to managing the challenging environment.

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Sasha Mac
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13 views

Unit Two

This document discusses approaches to organizational change and renewal. It covers topics like understanding organizational culture, approaches to managing change like transformation and development, and systems-based approaches. Organization development focuses on improving individual, team, and organizational effectiveness through planned change processes like modifying structures, management, and technologies. The goal of organizational renewal is to build continuous innovation and adaptation through a flexible approach to managing the challenging environment.

Uploaded by

Sasha Mac
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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ORGANIZATION

DEVELOPMENT
UNIT TWO: ORGANIZATION CHANGE AND RENEWAL
OBJECTIVES
By the end of this unit participants should be able :
• Explain organization culture and cultural resistance to change
• Evaluate approaches to management of change.
• Distinguish between organization transformation and
organization development
• Indicate elements of the systems and socio-technical approaches
to organizational renewal
UNIT TOPICS

• Understanding corporate culture


• Factors in Corporate renewal
• The challenge of change and tools for change.
• Adaptive orientation to Change
• The organization as a system.
• The planned change process
ORGANIZATION CULTURE
A system of shared meanings including:
• Language
• Dress
• Patterns of behavior
• Value system
• Feelings
• Attitudes
• Interactions
• Group norms
THE CHALLENGE OF CHANGE

• Downsizing
• Reengineering
• Flattening structures
• Going global
• Market
• Product
• Competition
THE CHALLENGE OF CHANGE

• Organizations exist in a changing environment and


therefore must have the capacity to adapt.
• Managers must do more than just react to
change…….they must be able to anticipate the
changing patterns of people, markets, products and
technology.
APPROACHES TO CHANGE

Two dimensions:
• Adaptive orientation.
• Environmental stability.
ADAPTIVE ORIENTATION

• Sluggish Thermostat Management.


• Satisficing Management.
• Reactive Management.
• Renewing/Transformation Management
ADAPTIVE ORIENTATION
SLUGGISH THERMOSTAT MANAGEMENT

• Stable environment, low adaptation.


• Management style based on low risk.
• Organizations using this style:
• Have very stable goals.
• Highly centralized structure
SATISFICING MANAGEMENT

• Stable environment, high adaptation.


• Adequate and average.
• Planning and decision-making concentrated at top
REACTIVE MANAGEMENT

• Hyper-turbulent environment, low adaptation.


• Reacting after conditions change.
• Short-term, crisis type of adaptation.
• Usually involves:
• Replacing key people.
• Hasty reorganization.
RENEWING/TRANSFORMATION MANAGEMENT

• Hyper-turbulent environment, high adaptation.


• Deal with future conditions before they occur.
• Faster at developing new ideas.
• More participative.
ORGANIZATION RENEWAL

• “There are organizations who effectively manage change,


continuously adapting their bureaucracies, strategies,
systems, products and cultures to survive the shocks and
prosper from the forces that decimate their
competition…………They are masters of renewal
(Brown & Harvey, 2006).
ORGANIZATION RENEWAL

• Defined as an ongoing process of building innovation and


adaptation into the organization. (Brown & Harvey, 2006).
• Organizational renewal is important. If a company is to survive
in an increasingly competitive market place, the organization
must continuously adapt to its environment. Without renewal,
management cannot maintain excellence.
ORGANIZATION RENEWAL

• Make adaptive changes to environment.


• The only constant is change.
Focus on:
• Changing systems
• Situational nature of problems
• System-wide impact
Approaches to
organizational renewal
THE ORGANIZATION AS A SYSTEM

• Breaks company into key processes.


• Creates teams from different departments to run them.
• System is set of interrelated parts.
• Unified by design to achieve purpose or goal.
QUALITIES OF SYSTEMS

• Designed to accomplish objectives.


• Elements have established arrangement.
• Interrelationships exist among elements.
• Ingredients of process more vital than elements.
• Organization more important than elements.
THE SYSTEMS APPROACH –OPEN SYSTEM
1. In continual interaction
with environment.

2. Continually receives
feedback from
environment.
SYSTEMS APPROACH- THE SOCIOTECHNICAL
SYSTEM

OD may be seen as a systems approach to change


• Coordinated human and technical activities.
• Consists of:
• Goals and values.
• Technical subsystem.
• Structural subsystem.
• Psychosocial subsystem (culture).
• Managerial subsystem.
SYSTEMS APPROACH – HIGH PERFORMANCE
SYSTEMS
An application of the sociotechnical systems approach in designing a high
performance organization:
• Occur by design, not by chance.
• Key variables are:
• Business situation.
• Strategy.
• Design elements.
• Culture.
• Results.
CONTINGENCY APPROACH

No best way of managing in all situations


• Considers organization and environment.
• Identifies “if-then” relationships.
• Suggests change in directions
FUTURE SHOCK AND CHANGE

• Too much change in too short a time.


• Inability to adapt to accelerating change.
• Management reaction to change strained.
• Managers must be adaptable and flexible.
ORGANIZATION TRANSFORMATION (OT) AND
ORGANIZATION DEVELOPMENT

• OT and OD are approaches to managing change.


• Both are major ways of managing change.
ORGANIZATION TRANSFORMATION

• OT changes organization’s form or appearance.


• OT is a revolution.
• Transforms framework of organization.
• Unplanned changes in response to pressures.
• Change occurs in short time frame.
ORGANIZATION DEVELOPMENT

• OD is like an evolution.
• Planned change on large scale.
• Longer time frame than OT.
• Gradual implementation.
• Modifies total organization or major parts.
WHAT OD FOCUSES ON- PLANNED CHANGE
PROCESS

• Individual effectiveness.
• Team effectiveness.
• Organization effectiveness.
FOCUS ON INDIVIDUAL EFFECTIVENESS

The goals are to improve:


• Managerial skills.
• Technical skills.
• Interpersonal competence.
FOCUS ON TEAM EFFECTIVENESS

Emphasis on:
• Improving problem-solving
• Working through conflicts
• Team activities are:
• Task activities—what the team does.
• Team process—how the team works.
• Process observations examine:
• The way the group functions.
• Leadership, decision making, communication.
FOCUS ON ORGANIZATION EFFECTIVENESS

• Focus on total organization system.


• Improve effectiveness by changes in:
• Structure.
• Technology.
• Management.
REFERENCE

• Brown, D. R., & Harvey, D. (2006). An experiential approach to Organization


Development (7thth ed.). N.p.: Pearson Education

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