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Introduction to Work and Organizational Psychology
Gerhard Ohrband15th lectureOrganizational Change and Development
Course structure
Part I Introduction1 Managing diversity2 History and context for Work and Organizational
Psychology / Roles and methods
Part IIPeople at work3 Job Analysis and Design4 Personal Selection5 Training
Course structure
6 Performance Appraisal: Assessing and Developing Performance and Potential
7 Job Stress and Health
Part IIIHuman Factors at Work8 Workload and Task Allocation9 Work Environments and Performance10 The Design and Use of Work Technology11 Safety at Work
Course structure
Part IVOrganizations at Work12 Leadership and management13 Work motivation14 Teams: the challenges of cooperative work15 Organizational development (OD)
Part IV – Organizations at Work15 Organizational Change and Development
Outline:1. Organizational Strategy, Structure
and Change2. Organizational Culture and Change3. Organizational Development: an
Approach to Lasting Change
The Nature of Change
Breakpoint evolution of personal computer industry
Diagnosing change situationsHard situations or difficulties Tend to be smaller Originate internally Are less serious in their implications Can be considered in relative isolation from
their organizational context Have clear priorities as to what might need be
done Generally have quantifiable objectives and
performance indicators Have a systems/technical orientation Generally, involve relatively few people Have facts which are known and which can
contribute to the solution Have agreement by the people involved on
what constitutes the problem Tend to have solutions of which the type at
least is known Have known timescales
Soft situations or messes Tend to be larger scale Originate externally Have serious and worrying implications for all
concerned Are an interrelated complex of problems
which cannot be separated from their context Have many people of different persuasions
and attitudes involved in the problem Have subjective and at best semi-quantifiable
objectives Not everything is known and it is not clear
what needs to be known Have little agreement on what constitutes the
problem let alone what might be possible solutions
Have usually been around for some time and will not be solved quickly, if at all, bringing about an improvement may be all that can be hoped for
Fuzzy timescales Are ‘unbounded’ in that they spread
throughout the organisation and, sometimes, beyond.
The strategy-structure ‘fit’Product/market strategy Organization structure Core activating and control
mechanisms
1800 Single product or service. Local/regional markets
Agency Personal direction and control
1850 Limited, standardized product or service line. Regional/national markets
Functional Central plan and budgets
1900 Diversified, changing product or service line. National/international markets
Divisional Corporate policies and division profit centres
1950 Standard and innovative products or services. Stable and changing markets
Matrix Temporary teams and lateral resource allocation devices such as internal markets, joint planning systems, etc.
2000 Product or service design. Global, changing markets
Dynamic network Broker-assembled temporary structures with shared information systems as basis for trust and coordination
Structures for change ‘organically’ structured organizations were
inherently more able to cope with change, whatever their strategy, than organizations structured on ‘mechanistic’ lines
Virtues of ‘project’ organizations and ‘loosely coupled organic networks’ in the context of turbulent, dynamic environments
The ‘virtual organization’
Contingency or ‘one best way’ Organizations are able, to some extent, to
manipulate their environments E.g., political decisions can be influenced
through lobbying, customers influenced by advertising and people’s expectations of employment influenced by the way groups of organizations design jobs
‘strategic choice’ (Child, 1972)
3. Organizational Culture and Change
The meaning of culture
Schein (1992, p.6): “The deeper level of basic assumptions
and beliefs that are shared by members of an organization, that operate unconsciously and define in a basic ‘taken for granted’ fashion an organization’s view of its self and its environment.”
The pervasiveness of culture
Cultural webs (Johnson and Scholes, 1997) Paradigm Symbols Stories Rituals and routines Controls Organization structure Power structures
Cultures for changeSegmentalist cultures Compartmentalize actions, events and
problems See problems as narrowly as possible Have segmented structures with large
numbers of departments walled off from one another
Assume problems can be solved by carving them up into pieces, which are then assigned to specialists who work in isolation
Divide resources up among the many departments
Avoid experimentation Avoid conflict and confrontation Have weak coordinating mechanisms Stress precedent and procedures
Integrative cultures Are willing to move beyonf received
wisdom Combine ideas from unconnected
sources See problems as wholes, related to
larger wholes Challenge established practices Operate at the edge of competencies Measure themselves by looking to
visions of the future rather than by referring to the standards of the past
Create mechanisms for exchange of information and ideas
Recognize and even encourage differences, but then be prepared to cooperate
Are outward looking Look for novel solutions to problems
Changing organizational culture to bring about organizational change
Morgan (1989, p.158):“Changing corporate culture is not like
changing a suit of clothes. One can change surface appearances, e.g. by giving the corporation a new image … and espousing new philosophies and beliefs. But to have a significant and lasting impact, basic values also have to change.”
Assessing cultural risk
Scan --
4. Organizational Development: an Approach to Lasting Change
Stage 1a and 1b: The present and the future
Stage 1a - gathering data not only about the organizational environment but also on matters internal to organizations, such as:
Individuals’ motivation and commitment to their work and organization
Recruitment practices, career paths and opportunities Prevailing leadership styles Employee training and development provision Intra- and inter-group relationships Organizational structure and culture
Stage 2: Gain commitment to the vision and the need for change
Lloyd and Feigen (1997, p.37):“Vision statements only work when the
needs of those at the bottom of the organization are integrated upwards with the needs of the market”
Jones (1994, p.49):“listening to the organization”
Stage 3: Develop an action planCompetencies of effective change agents (Buchanan and
Boddy, 1992):Goals1 Sensitivity to changes in key personnel, top
management perceptions and market conditions, and to the way in which these impact on the goals of the project at hand
2 Clarity in specifying goals, in defining the achievable3 Flexibility in responding to changes outside the control
of the project manager, perhaps requiring major shifts in project goals and management style, and risk taking
Stage 4: Implement the change
Six ways in which short-term wins can help organizational transformations (Kotter, 1996):
Provide evidence that sacrifices are worth it Reward change agents with a pat on the
back Help to fine-tune visions and strategies Undermine cynics and self-serving resisters Keep bosses on board Build momentum
Stage 5: Assess and reinforce the change
Measuring the softer issues associated with change:
1. A regular survey or cultural audit2. Interviews with individuals or focus groups3. An examination of turnover and
absenteeism rates4. An analysis (through observation or
questionnaire) of group performance5. ‘Picturing’ the organizationReinforcing and consolidating change
Discussion Points1. Discuss the proposition that ‘All change can be
categorized as either incremental or frame-breaking’. Use examples from your own experience of nature of change in institutions
2. How useful are the concepts of ‘hard’ and ‘soft’ change situations for determining an appropriate approach to designing and implementing organizational change?
3. Explain what is meant by ‘assessing cultural risk’.4. Discuss the advantages and disadvantages of using
an OD approach to design and implement organizational change.
Literature Buchanan, D. and Boddy, D. (1992). The expertise of
the change agent: public performance and backstage activity. Hemel Hemstead: Prentice Hall.
Schwartz, H. and Davis, S.M. (1981). Matching corporate strategy and business strategy. Organizational Dynamics, Summer, 30-48.
Johnson, G. and Scholes, K. (1997). Exploring corporate strategy: texts and cases. Hemel Hemstead: Prentice Hall.
Kotter, J.P. (1996). Leading change. Boston: FIBS Press.