Hrm Reviewer Midterm.docx

ORGANIZATIONAL DEVELOPMENT Management - consists of the interlocking functions of creating corporate policy and organizing, planning, controlling, and directing an organization's resources in order to achieve the objectives of that policy The organization and coordination of the activities of a business in order to achieve defined objectives. 5 M´s - Manpower, Machines, Materials, Methods and Money The directors and managers who have the power and responsibility to make decisions and oversee an enterprise. Organization- Is a social unit of people that is structured and managed to meet a need to pursue collective goals. Development - The systematic and technical knowledge to meet specific objectives or requirements. Organizational Development - is a process of improving organizational performance by making organization-wide rather than individual changes (Burke, 2008) is an effort planned, organization-wide, and managed from the top, to increase organization effectiveness and health through planned interventions in the organizations "processes,” using behavioral-science knowledge (Beckhard, 1969) The process of helping organizations improve through change in policies, power, leadership, control and or job redesign.

Practice of planned efforts to change the values of employees through creation and reinforcement of long-term training programs. It starts with a careful organization-wide analysis of current situations and then employs techniques of behavioral sciences. THEORETICAL & HISTORICAL BASES OF ORGANIZATION DEVELOPMENT French & Bell (1999) provide an extensive reprise of the events and major players over nearly four decades History of Organization Development This is summarized with the identification of four important "trunk stems" that make up this history. 1. Kurt Lewin: The innovations in applying the insights from laboratory training to complex organizational issues 2. Group of Rensis Likert: The development of the survey research and feedback methodology 3. The emergence of action research which is a collaborative, client-consultant inquiry. 4. The socio-technical approach developed in Tavistock Institute for Social Research in London for work redesign and quality of work-life programs.

In the last two decades, the practice of OD has found extensive application in helping organizations cope with fast-paced and turbulent environment. Contemporary OD, which may well be the 5th stem has focused on organizational transformation, studies of organization culture and learning organizations.

It also gives legitimacy to expression of feelings, just as they are permitted to express thoughts and ideas. Optimistic values: people are innately good and rational, and that they are capable of making progress. (e.g. Douglas McGregor's Theory Y)

Values, Assumptions and Beliefs Espoused by OD

Democratic values: assert the sanctity of the individual, the significance of fairness and equitable treatment for all, and the importance of choice and due process.

What makes OD unique from other organization improvement strategies is the set of values and assumptions on which it rests. These help define OD and guide its implementation (French & Bell,1999).

The OD processes promote participation and involvement of as many organization members on issues that affect them.

These values and assumptions were developed over the years through research and theory by behavioral scientists, as well as through experiences and observations by practitioners.

Transparent communication recognizes that individuals in organization are entitled to know what is going on so that they can make informed decisions about their situation and their future. Foundations of OD

Burke (1997) suggests that despite the historical context wherein these values developed, research into the actual practice of consultants today reflect adherence/support for these values. Humanistic values of OD proclaim the importance of the individual and respect for the whole person. Thus, any intervention that is implemented must be consistent with this. Recognizes that it is worthwhile for people to have the opportunity to learn and develop their full potential.

The uniqueness of organization development also strongly founded on certain concepts that may be considered as pillars of the field (French and Bell, 1999). 1. Planned change model The process of change: unfreezing, changing & refreezing. This draws heavily on Kurt Lewin's adoption of the systems concept of homeostasis or dynamic stability. Gives rise to thinking about a staged approach to changing things. An individual/system will only change when it is ready.

Once the change takes place, it must be the new state & will require supporting systems that will restore the balance and harmony. (e.g. a person trying to quit smoking) Unfreeze- ensures that employees are ready for change Change - execute the intended change Refreeze - ensures that the change become permanent 2. Systems Theory An organization is an open system that is in active exchange with its environment (Kaiz & Kahn, 1966). System, up of parts that are interconnected and interdependent on one another. A change is one part would have an effect on the entire system, and on the other parts. As an open system, its reason for existence must be aligned with the purpose and goals of the environment. Thus, it provides its products or services to the environment, but also takes from it. 3. Empowerment & participation A change effort must encourage participation at all levels to be labeled as OD. There must be increased involvement and empowerment of the organizational members who are not typically consulted. 4. Normative re-educative change Strategies for effecting change may be categorized into three types depending on the underlying assumptions (Bennis et al., 1969):

* Power-coercive- those w/ less power will comply with the will of those with more. * Empirical rational- people are rational and once knowledge is revealed to them, they will act to protect their self interest. * Normative re-educative - change is not exclusively at cognitive/intellectual level, nor can it be forced, but rather it is a process of internalization through values attitudes and habits. 5. Action Research Learning and doing Primary mode of problem-solving in OD It is data-based and involves three main processes participated in by the "problem owners." > System data gathering, >feedback of the data to the "problem owners," and >action planning based on the data. 6. Teams and teamwork Primary unit of change is in the team rather than the individual because the work situation is a social system, individuals respond strongly to team interaction. Influences are strong within the team and changes in norms almost certainly affect individual behavior.

The OD Process:

Preliminary Steps: Recognizing the Need for Change and Establishing Change Relationship

helpful information or criticism that is given to someone to say what can be done to improve a performance, product etc. (Merriam-Webster Dictionary)

The Organization Development Process I. recognizing the need for change II. establishing change relationship III. diagnosing the organization IV. feedback and action planning V. identifying appropriate interventions VI. managing change / implementation VII. evaluation DIAGNOSIS Helps consultants and clients determine the issues to focus and prioritize. DIAGNOSTIC FRAMEWORKS Provides a structure that makes the sometimes unconnected information more coherent and understandable. SWOT ANALYSIS Synthesizing information regarding present situation. RELATIONAL ANALYSIS Prioritizes the most important factors surfaced in the data gathering Seven S(McKinsey) Shared values, strategy, structure, style, staff, skills, and systems WEISBORD’S SIX-BOX MODEL Purpose, structure, rewards, helpful mechanisms, relationships, and relationships IV. Feedback and Action Planning Feedback

Survey feedback is a process in which organizational members complete questionnaires on various organizational issues, receive feedback on the results, then take appropriate actions to address the critical needs and concerns. (Mann, 19571965) Elements needed to ensure feedback’s effectiveness: SPECIFICITY -Feedback works best when it relates to a specific goal. -Establishing employee performance expectations and goals before work begins is the key to providing tangible, objective, and powerful feedback. TIMELINESS -Employees should receive information about how they're doing as timely as possible. -If they need improvement, the sooner they find out about it the sooner they can correct the problem. -the sooner they receive positive feedback, the more rewarding it is to them. MANNER -Since people respond better to information presented in a positive way, feedback should be expressed in a positive manner. -It must be accurate, factual, and complete. When presented, however, feedback is more effective when it reinforces what the employee did right and then identifies what needs to be done in the future.

-Constant criticism eventually will fall upon deaf ears. If effective feedback is designed into a performance management program, individual and team performance will improve, which will make your organization more effective. With effective feedback processes, employees won't be working blind and, hopefully, will reach their destinations successfully. FEEDBACK MEETING- give the clients an opportunity to see the data and validate the analysis. CONSULTANT’S ROLE- aid the audience make sense of the data and OD diagnostic frameworks may be used. After understanding the results of the diagnosis, the group is invited to participate in designing the actions. ROLE OF CONSULTANT 1.) facilitate the exploration and identification of the appropriate actions 2.) educate the client system on the possible intervention options. IV. Intervention comes from the Latin intervenire, meaning "to come between, interrupt.“ Signifies an interruption or interference. taking action to change the course of events or to move out of the status quo. specified activity that occur as a result of diagnosis and feedback. involves client in the planning and implementing of the change and leads to change in the organization’s culture.

Every action that influences an organization´s improvement program in a change agent-client system relationship can be said to be an intervention. Classifications of Interventions ● ● ● ●

STRATEGIC TECHNOLOGICAL AND STRUCTURAL HUMAN RESOURCE HUMAN PROCESS

3 Criteria for Effective Interventions 1.) based on valid and useful information; must address real needs of the organization 2.) allows free choice; alternatives for action 3.) internal commitment CHANGE MANAGEMENT -- application of the set of tools, processes, skills and principles for managing the people side of change to achieve the required outcomes of a change project or initiative. Requirements for Successful Organizational Change MOTIVATING CHANGE - This phase includes creating a readiness for change in your client organization and developing approaches to overcome resistance to change CREATING A VISION - Leaders in the organization must articulate a clear vision that describes what the change effort is striving to accomplish. The vision should clearly depict how the achievement of the vision will improve the organization. DEVELOPING POLITICAL SUPPORT

often overlooked, yet it is the phase that often stops successful change from occurring.

-A recent survey of OD as practiced in the Philippines shows that it is one of the tools used by organizations to face the business challenges.

- Power is important among members of the organization when striving for the resources and influence necessary to successfully carry out their jobs.

-A number of organizations have dedicated specialists in handling the OD function, but the most common set-up is for the HR department to take the role of OD.

MANAGING THE TRANSITION

How has Organization Development helped the local organizations?

This phase occurs when the organization works to make the actual transition from the current state to the future state. SUSTAINING MOMENTUM Often, the most difficult phase in managing change is this phase when leaders work to sustain the momentum of the implementation and adjustment of plans

Most organizations implemented human processes, and human resource management interventions. The most widely used interventions are team-building, training and education, and HR Systems (Presbitero, 2006).

EVALUATION

Study also showed that there were few organizations engaged in these, especially those multinational organizations with more evolved HR systems and processes.

Evaluating change effort is important and desired. Evaluation results give confidence and guide future efforts.

- The recent study, may not provide the true picture of OD in the Philippines, as the actual number of respondents was less than 5% of the targeted OD practitioners.

Organization Development in the Philippines

- However, it gives a glimpse of where OD is, and that inadequate involvement of top management in OD would result to a narrower perspective, and a more limited impact. GLOBAL IMPLICATIONS

In a study conducted among HR heads (Franco, 2005), respondents from various organizations reported the following priority responses to the challenges: A. Facilitating change B. Developing an HR Information System C. New HR competencies D. Becoming a business partner

Some realities in the globalized environment are driving the practice of OD to take on a new identity. The constant quest for a leaner and agile organization has led many to implement reengineering and downsizing programs.

The development of a new form of employment called contingent workers (or rental employees) whose place in the organization is unclear. Advanced technology has changed the nature of jobs, spawning many roles that perform very routine work. Newly created positions are self-navigating and hardly require human interaction with anyone. How does these developments changed the focus of OD practitioners? Trust level expectedly drops in the process of restructuring, and downsizing. The role of the OD consultant may be as the adviser to the top executives in the design of interventions both for the separated, and those who remain. The new workplace also requires community building and uses skills of the OD consultant not just for facilitating, but also for organizing and forcing interactions for various assemblies. Workers need to be part of the team and must continue to receive attention. Merged organizations require compensation policies that are equitable and viable. Hence, OD creates innovative HR systems that features the traditional processes, but packaged to meet the demands of nontraditional structures. What does it take to be an OD person? 1. Mastery of the phases of OD process. 2. Knowledge, belief and advocacy of the foundations of OD

3. Mastery of the theories of human behavior such as motivation, learning, and well-being 4. Knowledge of leadership and management principles 5. Familiarity with the organization's main business or purpose 6. Excellent facilitation and communication skills 7. Interpersonal competence, not only to “deal with”, but to fully engage individuals of different levels 8. Cultural sensitivity and openness to diversity 9. Openness to ambiguity 10. Humility and integrity Some common violations of ethical standards: Misinterpretation of competencies, accepting engagements that are not within the realm of one’s capability or expertise Professional ineptness and delivering poor quality work Misuse or manipulation of data and information accessed or entrusted during the engagement Collusion, or allowing one’s self to be used by powerful members of the organization Promising unrealistic outcomes that are clearly not deliverable.

“If organization development practitioners want to sleep better at night, they need to live the basic values of their profession, challenge actions they know are immoral, and play a more expansive role in improving organizational life”. MANAGING CHANGE Sacred Cow Hunts

first step towards organizational change (Kriegel & Brandt, 1996) in which employees look for practices and policies that waste time and are counterproductive TYPES: The Paper Cow (TPC) The Meeting Cow (TMC) The Speed Cow (TSC) Employee Acceptance Stages: a. Kurt Lewin (1958) theorized that organizations go through three stages: UNFREEZING, MOVING, REFREEZING b. Carnall (2008) suggests that employees typically go through five stages: DENIAL, DEFENSE, DISCARDING, ADAPTATION, INTERNALIZATION Type of Change (Burke, 2008) Evolutionary Change vast majority of change and a continual process of upgrading or improving processes Revolutionary Change real jolt to the system and a drastically change of the way things are done The extent to which the employees readily accept and handle the change is dependent on: Reasons behind the change

History of successful change Personality being changed Change Agents Change Analysts Receptive Changers Reluctant Changers Change resisters Implementing Change Steps: 1: Creating an atmosphere for change 2: Communicating details communicating change is hard work training is needed two-way communication is essential honesty is the best policy 3: Time Frame change mode should not be longer than 2 years 4: Training Needs Organizational Culture referred to as corporate culture or corporate climate comprises of the shared values, beliefs and the traditions that exist among the individuals in the organization it is the culture that establish the workplace norms of appropriate behavior and defines roles and expectations that employees and management have of each other.

>Legitimate - financial reasons - external mandates - productivity improvement

Steps in Changing Organizational Culture

>Whim >Everybody else is doing it

MAINTAINING THE NEW CULTURE IMPLEMENTING THE CHANGE ASSESSING THE NEW CULTURE

Person making the change Popularity Degree of respect

ASSESSING THE NEW CULTURE Steps 1: Needs assessment

2: Determining Executive Directions 3: Implementation Consideration 4: Training 5: Evaluation of the New Culture IMPLEMENTING THE CHANGE Creating Dissatisfaction with Existing Culture Communicating to the employees Distribute attitude surveys MAINTAINING THE NEW CULTURE Develop new reward systems Selection of employees Organizational socialization Empowerment process of enabling or authorizing an individual to think, behave, take action and control work and decision making in autonomous ways. It is the state of feeling self-empowered to take control of one’s own destiny desirable management and organizational style that enables employees to practice autonomy, control their own jobs and use their skills and abilities to benefit both their organization and themselves Factors in Making the Decision to Empower 1. Importance of decision quality 2. Leader knowledge of problem area 3. Problem structure 4. Importance of decision acceptance 5. Probability of decision acceptance 6. Subordinate trust and motivation 7. Probability of subordinate conflict Hanggang dito nalang tayo, pagod na ako