Organizational

Development (OD)

By
Asst. Prof. Vichai Thosuwonchinda
 Process of OD.
1. Problem recognition
2. Entry of change agent
3. Data collection and problem diagnosis
4. Development of plan for change
5. Change implementation
6. Stabilization and institutionalization
7. Feedback and evaluation
Change: Organizational
and Individual Perspectives
Types of Organizational Change
– Anticipatory changes: planned
changes based on expected situations.
– Reactive changes: changes made in
response to unexpected situations.
– Incremental changes: subsystem
adjustments required to keep the
organization on course.
– Strategic changes: altering the overall
shape or direction of the organization.
Change: Organizational and
Individual Perspectives
(cont’d)
Tuning


– The most common, least intense, and

least risky type of change.
 Also known as preventive maintenance and
kaizen (continuous improvement).
 Key is to actively anticipate and avoid
problems rather than waiting for something to
go wrong.
Adaptation

– Incremental changes that are in reaction

to external problems, events, or
Change: Organizational and
Individual Perspectives
(cont’d)
Re-Orientation

– Change that is anticipatory and

strategic in scope and causes the
organization to be significantly
redirected.

Re-Creation

– Intense and risky decisive change

that reinvents the organization.
Individual Reactions to
Change
HowPeople Respond to Changes
They Like
– Three-stage process
 Unrealistic optimism
 Reality shock
 Constructive direction
Individual Reactions to
Change (cont’d)
HowPeople Respond to Changes
They Fear and Dislike
– Stages
 Getting off on the wrong track
 Laughing it off
 Growing self-doubt
 Buying in
 Constructive direction
Why Do Employees
Resist Change?
Surprise

– Unannounced significant changes

threaten employees’ sense of balance in
the workplace.
Inertia

– Employees have a desire to maintain a

safe, secure, and predictable status quo.
Misunderstanding and lack of skills
– Without introductory or remedial
training, change may be perceived
 Why Do Employees Resist
Change? (cont’d)
Emotional Side Effects
– Forced acceptance of change can create a
sense of powerlessness, anger, and
passive resistance to change.
Lack of Trust
– Promises of improvement mean nothing if
employees do not trust management.
Fear of Failure
– Employees are intimidated by change and
doubt their abilities to meet new
challenges.
Why Do Employees
Resist Change? (cont’d)
Personality Conflicts
– Employees who are disliked by their
managers are poor conducts for
change.
Poor Timing
– Other events can conspire to create
resentment about a particular
change.
Lack of Tact
–
Why Do Employees
Resist Change? (cont’d)
Threat to Job Status/Security
– Employees worry that any change
may threaten their job or security.
Breakup of Work Group
– Changes can tear apart established
on-the-job social relationships.
Competing Commitments
– Change can disrupt employees in
their pursuit of other goals.
Overcoming
Resistance to Change
Strategiesfor Overcoming
Resistance to Change
– Education and communication
– Participation and involvement
– Facilitation and support
– Negotiation and agreement
– Manipulation and co-optation
– Explicit and implicit coercion
Making Change
Happen
TwoApproaches to Organization
Change
– Organization Development (OD)
 Formal top-down approach
– Grassroots Change
 An unofficial and informal bottom-up
approach
Change Agent Characteristics
– Foresight
– Responsiveness
– Flexibility
Planned Change Through
Organization Development
(OD)
Organization development (OD)


– Planned change programs intended

to help people and organizations
function more effectively.
 Applying behavioral science principles,
methods, and theories to create and
cope with change.
 OD creates fundamental change in the
organization, as opposed to fixing a
problem or improving a procedure.
– OD programs generally are facilitated
by hired consultants,
Organization Development
(OD)
Objectives of OD


– Deepen the sense of organizational

purpose.
– Strengthen interpersonal trust.
– Encourage problem solving rather than
avoidance.
– Develop a satisfying work experience.
– Supplement formal authority with
knowledge and skill-based authority.
– Increase personal responsibility for
planning and implementing.
Organization Development
(OD) (cont’d)
The OD Process
– Unfreezing, changing, and refreezing
social systems
 Unfreezing: neutralizing resistance by
preparing people for change.
 Changing: implementing the planned
change
 Refreezing: systematically following a
change program for lasting results.
Unofficial and Informal
Grassroots Change
Grassroots Change
– Change that is spontaneous, informal,
experimental, and driven from within.
Tempered Radicals
– People who quietly try to change the
dominant organizational culture in line with
their convictions.
 Guidelines for tempered radicals
– Think small for big results.
– Be authentic.
– Translate.
– Don’t go it alone.
Managing Conflict
Conflict

– Incompatible behaviors that make

another person less effective
Dealing with the Two Faces of
Conflict
– Competitive conflict: parties are
pursuing directly opposite (win-lose)
goals.
– Cooperative conflict: a mutually
reinforcing experience (win-win) that
serves the best interests of both
Managing Conflict
(cont’d)
Conflict Triggers
– Conflict trigger: any factor that
increases the chances of conflict.
 Types of triggers
– Ambiguous or overlapping jurisdictions.
– Competition for scarce resources.
– Communication breakdowns.
– Time pressure.
– Unreasonable standards, rule, policies, or
procedures.
– Personality clashes.
– Status differentials.
– Unrealized expectations.
Managing Conflict
(cont’d)
Resolving Conflict: Conflict
Resolution Techniques
– Problem solving
– Superordinate goals
– Compromise
– Forcing
– Smoothing
Career Advancement
Behaviors
 Best Behaviors  Worst Behaviors
– Perspective taking – Avoidance
– Creating solutions – Winning at all
– Expressing costs
emotions – Displaying anger
– Reaching out – Demeaning others
– Retaliating
Case Study: Bank of
Thailand
Development of Future
Leader
Two significant factors on leader’s
development

 Vision

 Leadership
Vision of Bank of
Thailand
 Purpose  Vision (2006)
– To provide a – A reputation
stable financial organization
environment for commanding
sustainable public trust and
economic growth respect.
in order to achieve
continuous
improvement in
the standard of
living of the
people of
Thailand.
Strategic objectives
To conduct monetary policy in
accordance with international best
practice
 to ensure financial system
stability, responsiveness to public
needs and adaptability to dynamic
environment
Strategic objectives
(cont’d)
To develop a fully efficient
payment system
 To become an organization
committed to excellence
And to become an organization of
good public image.
Leadership
 Leadership vision  Vision’s

– envisioning acceptance
– visioneering – Direction setter
– sub-vision – Change agent
– spokeperson
– coach
Components of
visionary Leadership
Strategic management
 Leadership personality and
behavior
 Innovation and change
management
 Problem solving and decision
making
Organization diagnosis
Pre-development
Program Phase
Twenty-six top management
participants were selected as
“Future Leader”
 Key interview questions were
asked on core visionary leadership
competency.
In depth interview was designed
to gather information with all
related participants and their
direct reports..
Pre-development
Phase
Development Project
Communication
Session
 BOT governor’s speech
 Visual Leadership Situation
Activity, to make the difference
between the leader’s perception
and intention.
 Future Leader Big Picture Review.

 Comparative Movie Case study,

good leaders and bad leaders.
Leadership
Development Program
Phase
 Field trip to remote and poor
communities.
 BOT Leadership Development
Roadmap.
 Development on the five
modules
Leadership
development modules
 Organization diagnosis-TQA,TQM EQA.
 Strategic management- ex-CEO Ford
Thailand was invited.
 Leadership personality –Brainstorming,
role play, coaching, guest speakers.
 Innovation and change-creativity style,
change behavior exercise.
 Problem solving and decision making-
case study, Fishbone analysis, force
field analysis.
 Project Simulation- to initiate real
development project for BOT.
Post Development
Program Phase
 Clinic session for coaching ,
consultation and advisory to the
real workplace implementation
and development.
 Overall feedback and evaluation
the program on BOT Leadership
Development Roadmap.
Questions
 What do you think about this case
study of BOT?
 How to implement this program in
your organization or your country?
The end