Organization

Development and
Change
Fathul Himam

What is an organization?
a consciously coordinated social entity
with a relatively identifiable boundary
functions on a relatively continuous
basis
to achieve a common goal

Why organization exist?

Increase specialization
and division of labor
use large scale of
technology
The use of an
organization
allows people
jointly to:

manage the external

environment
economize on transaction
cost
exert power and control

Which increase
the value that
organization
can create

Approach to Measuring Organizational

Effectiveness
Approach
External
resource
approach

description

goals to set to measure

effectiveness

Lower cost of input

Evaluate the organizations
Obtain high-quality input & raw
ability to secure, manage,
material & employees
and control scare and valued
Increase market share
skill and resource

Increase stock price

Gain support of stockholder such as
government or environmentalist

Internal
system
approach

Evaluate the organizations

ability to innovate and
function quickly and
responsively

Cut decision making time

Increase rate of product innovation
Increase coordination & motivation of
employees
Reduce conflict
Reduce time to market

Technical
approach

Evaluate the organizations

ability to convert skills and
resource into goods and
services efficiently

Increase product quality

Reduce number of defects
Reduce production cost
Increase customer service
Reduce delivery time to customer

Life Cycle Perspective

Pattern of predictable stages through which
organization proceeds:
1.
2.
3.
4.

5.

Entrepreneurial stage
Formation stage
Infancy
Collective stage
Clarification of missions
Commitment to goals
Formalization-and-control stage
Stabilization
Roles are defined
Elaboration-of-structure stage
Diversifies its product and service
Growth opportunities are searched
Decentralization
Decline stage

Maturity

ec

lin
e

ro
wt
h

at
Form

i on

1. Entrepreneurial
stage:
Ambiguous
goals
High
creativity

2. Collectivity
Stage:
Informal
communicati
on and
structure
High
commitment

3. Formalizationand-control
stage:

4. Elaboration-ofstructure stage:

Formaliza

More complex
structure

tion of rules

Decentralization

Stable
structure

Diversified
markets

Emphasis of

5. Decline stage:
High
employee
turnover
Increased
conflict
centralization

ENVIRONMENT

System

Inputs

Transformation
Process

Output

Environment

Individual
cognitions
On-the-job
behavior

Members

Work setting
Members

Social
factors

Technology

Organization

Organizational
performance

Individual
development

Organization

Organizing
arrangement

Physical
setting

Work setting

Organization

Purpose

Environment
Purpose
Physical
setting

Organizing
arrangement

Technology

Social
factors
1.
2.
3.
4.

Goals
Strategies
Structure
Administrative
policies and
procedures
5. Administrative
systems
6. Reward systems
7. Ownership

1. Culture
2. Management
style
3. Interaction
process
4. Informal patterns
and network
5. Individual
attributes

1. Space
configuration
2. Physical
ambience
3. Interior design
4. Architectural
design

Factors Constituting the Organizational Work Setting

1. Tool equipment,
and machinery
2. Information
technology
3. Job design
4. Work flow design
5. Technical expertise
6. Technical
procedures
7. Technical systems

A glossary of some open systems concepts

The concept of an open system. Organic systems, complex organism
and population of organisms exist in a continuous exchange with their
environment.
Homeostasis. Self-regulation and the ability to maintain a steady state.
Entropy/negative entropy. Closed systems are entropic - a tendency
to deteriorate, while open systems attempt to sustain by importing
energy to offset entropy
Structure, function, differentiation and integration. The
relationship between these concepts is of crucial importance for
understanding living organism.
Requisite variety. Internal regulatory mechanism of a system must be
as diverse as the environment with which it is trying to deal
Equifinality. There may be many different ways of arriving at a given
end state
System evaluation. The capacity of a system to evolve depends on an
ability to move to more complex forms of differentiation and integration,
and greater variety in the system facilitating its ability to deal with
challenges and opportunities posed by environment.

Why is it Important to Adapt to

Change?
Individuals, teams, or organizations that
do not adapt to change in timely ways
are unlikely to survive.

18-11

Adapting to Change
Individuals, teams and
organizations that
recognize the
inevitability of change,
learn to adapt to it, and
attempt to manage it,
will be the most
successful.
18-12

What is Change?
Coping process of moving from a
unsatisfactory present state to a desired
state

18-13

Organization Development
(French, W.L. and Bell, C.H, 1995)
Organization development (OD) is a long term effort,
led and supported by top management, to improve an
organizations visioning, empowerment, learning, and
problem-solving processes, through an ongoing,
collaborative management of the organization culture with special emphasis on the culture of intact work
teams and other team configurations - utilizing the
consultant-facilitator role and the theory and technology
of applied behavioural science, including action
research.

(French, W.L. and Bell, C.H, (1995). Organization Development:

Behavioural Science Interventions for Organization Improvement, Fifth

Organization Development
(McCalman, J & Paton, R (1992)
Organization development is an ongoing process of
change aimed at resolving issues within an
organization through the effective diagnosis and
management of the organizations culture. This
development process uses behavioral and social science
techniques and methodologies through a consultant
facilitator and employs action-research as one of the
main mechanism for instigating change in
organizational groups.
(McCalman, J & Paton, R (1992). Change Management Guide to Effective
Implementation, London, P.C.P. p 131).

Basic Assumptions of OD as a Model for

Change - 1
It emphasises goals and processes with
emphasis on processes
It deals with change over medium and longterm
It is about people and recognizes their worth
It involves the organisation as a whole as well
as its parts
It emphasises the concept of a change
agent/facilitator

Basic Assumptions of OD as a Model for

Change - 2
It uses action research as a means of
intervention
It is participative, drawing on theory and
practices of the behavioural sciences
It subscribes to a humanistic philosophy of
openness
It is a process of facilitation at the individual,
group and organisational level
It has top-management support and
involvement

What is Organization Development?

CUMMINGS & WORLEY (2005)
ORGANIZATION DEVELOPMENT
is a process that applies behavioral social
knowledge and practices to help
organizations build their capacity to change
and to achieve greater effectiveness: increased
financial performance and improved quality
of work life.

SPECIFIC OBJECTIVES OF OD
WARREN BENNIS:

to improve interpersonal competence

to encourage a shift in employees values
to enhance mutual understanding
among and within groups
to develop better methods of conflict
resolution involving rationality and openness to replace
the bureaucratic
method (e.g. suppression,
compromise, power)
to emphasis on group, mutual trust, shared
responsibility and control,
multi-group
membership, extensive bargaining

SPECIFIC OBJECTIVE OF OD
MICHAEL BEER
to generate valid data about the state of the
organization in relation to its environment
to clarify the desired outcomes of
organization and individual employee
to help organizations make strategic choices
based on a diagnosis of the current situation
and desired outcomes

So, whats OD related to?

OD applies to changes in the strategy, structure, and
processes of an organization and its dimensions
OD is based on the application and transfer of behavioral
science knowledge and practice; including micro-concepts
(leadership, group dynamics) and macro-approaches
(strategy, organization design)
OD is concerned with managing planned change; an adaptive
process for planning and adapting to change
OD involves in creation of reinforcement of change as an
instrumental process to stabilize and institutionalize change in
a longer-term
OD is oriented to improving organizational effectiveness and
quality of work life

SIMPLIFYING THE OBJECTIVES

TO ENHANCE PRODUCTIVITY AND
ORGANIZATIONAL EFFECTIVENESS
TO PROMOTE QUALITY OF WORK
LIFE

FOUR DIMENSIONS OF ORGANIZATION

EFFECTIVENESS
DIMENSIONS

DEFINITION
An organization is effective to the extent
that it .

WHEN USEFUL
The definition is preferred
when .

GOAL
ATTAINMENT

Accomplishes its stated goals

Goals are clear, time bound,

and measurable

SYSTEM

It acquires needed resources

A clear connection exists

between inputs and outputs

STRATEGIC
CONSTITUENCI
ES

All strategic constituencies are at least

minimally satisfied

Constituencies have powerful

influence on the organization,
and the organization must
respond to their demands

COMPETING
VALUES

The emphasis of the organization in the

four major areas (i.e. return on
investment, market share, new-product
innovation, job security) matches
constituent preferences

The organization is unclear

about its own emphases, or
changes in criteria over time
are of interest

Quality of Work Life

Initiated by Eric Trist at the Tavistock
Institute of Human Relations
Providing employees with high levels of
discretion, task variety, and feedback
about results
Discovery of self-managing work group
design
Employee Involvement, empowerment
are the main concerns

CRITERIA OF ORGANIZATION
EFFECTIVENESS
CRITERIA
FLEXIBILITY
ACQUISITION OF
RESOURCES
PLANNING
PRODUCTIVITY AND
EFFICIENCY
AVAILABILITY OF
INFORMATION
STABILITY
COHESIVE WORK
FORCE
SKILLED WORK
FORCE

DEFINITION
ABLE TO ADJUST WELL TO SHIFTS IN EXTERNAL
CONDITIONS AND DEMANDS
ABLE TO INCREASE EXTERNAL SUPPORT AND EXPAND
SIZE OF WORK FORCE
GOALS ARE CLEAR AND WELL UNDERSTOOD
VOLUME OF OUTPUT IS HIGH, RATIO OF OUTPUT TO
INPUT IS HIGH
CHANNELS OF COMMUNICATION FACILITATE
INFORMING PEOPLE ABOUT THINGS THAT AFFECT
THEIR WORK
SENSE OF ORDER, CONTINUITY, AND SMOOTH
FUNCTIONING OF OPERATIONS
EMPLOYEES TRUST, RESPECT, AND WORK WELL WITH
EACH OTHER
EMPLOYEES HAVE THE TRAINING, SKILLS, AND
CAPACITY TO DO THEIR WORK PROPERLY

NEW CHALLENGES

DYNAMIC GLOBAL ECONOMY

BE CUSTOMER RESPONSIVE
PROFITABILITY THROUGH COST AND GROWTH
REDEFINITION OF ORGANIZATION CAPABILITIES
AS THE DNA OF COMPETITIVENESS
LEARNING TO CHANGE: ADAPTATION AND
TRANSFORMATION
MANAGERIAL INNOVATION
KEEPING UP TO TECHNOLOGY INNOVATION
ATTRACTING, RETAINING, AND MEASURING
COMPETENCE AND INTELLECTUAL CAPITAL
CHANGING EMPLOYEE DEMOGRAPHICS, E.G.
MORE WOMEN IN THE WORKFORCE

THEMES IN CHANGING AND

DEVELOPING ORGANIZATION

SPEED
FLEXIBILITY
INTEGRATION
INNOVATION
MINDSET: ALLOW IDEAS, COMPETENCIES
EMERGE AT ALL LEVELS THROUGH:
- LEARNING
- SHARING KNOWLEDGE
- GROUPING PHYSICAL AND INTELLECTUAL
ASSETS

Research Findings

MASSAGING CHAOTIC SITUATIONS: UNDERSTANDING THE

PROCESS OF INDIVIDUAL ADAPTIVE STRATEGIES TO CHANGE.
A META-ETHNOGRAPHIC ANALYSIS

ASIAN APPLIED PSYCHOLOGY INTERNATIONAL-REGIONAL CONFERENCE BANGKOK - 14 - 16 OF NOVEMBER 2005

FATHUL HIMAM
FACULTY OF PSYCHOLOGY
UNIVERSITAS GADJAH MADA
JOGJAKARTA, INDONESIA
FATHULHIMAM@YAHOO.COM

Cloaking Tactic

Develop
Collegiality

Individual

Sense-making

Adaptive
Entrepreneurship

strategies

Acquisition of Skills
SelfDiscovery

Levels of Behavioral Strategies to Change

Actual Behavior

End-Result

Action
-

Purpose

Basic Ground

Latent Behavior

Integrative Summary of Themes

Theme
Cloaking Tactic

Basic Ground
Psychological
adjustment
Resistence to
change
Hostility and
ambivalence
Confusion
Uncertainty

Sense-making

Problem
identification
Sensing the
situation
Willingness to
change
Be rational

Purpose

Action

End-Result

Masking true
intent
Personal
agenda
Control

Rationalization
Pretending
Withdrawl
Ignorance
Avoidance

Self-contained
Express hurt
Survive

Sense of
integrity
New insight
Status vs.
objective
Integrative
scheme

Re-frame
conception
Repairing
mistakes
Re-evaluation

A change in
thinking
Tolerance to
uncertainty
Experiencing
new situation

Theme

Basic Ground

Purpose

Action

Acquisition of
skills

Learning
New view point
Ability
measurement
Response new
needs

Self development
Establish
expertise
Increase ability
New experiences
Adaptation

More education
Training and
development
Transfer
Maximization
efforts
Vulnerable
position

Independence
Career
advancement
Self-employed
Production

Selfdiscovery

Psychological
adjustment
Inner strength
Emotional
energy

Spiritual
significance
Experimentation
Survival
Hope

Be sensitive
Proactive
Changing
attitude and

Acceptance
Commitment to
change
Comfortable
working
Enthusiasm

behavior
Internalization
new reality

End-Result

Theme

Basic Ground

Purpose

Action

End-Result

Entrepreneurship

Competitive
mind-set
Confront the
challenge

Control and
autonomy
Entering new
market

Be political
Negotiate
Socialize
Enter labor
market
Gain power

New
opportunity
Improvement

Develop
collegiality

Harmony
Trust
Relationship
Commitment
Collective
actions

Tactic and
strategy
Consensus
Buffering
function

Work together
Team spirit
Support
Connection
Facilitative

Alliance
People fullcircle

Integrative Summary of the Concepts Involved

Strategies
Individual

Maintenance
Cloaking tactic
Sense-making
Acquisition of skills
Self-discovery

Adaptiveness
Entrepreneurship
Develop collegiality

Parameters
Efficiency
Effectiveness

The Process of Individual Adaptive Strategies to Change

TIME
INTERMEDIATERUN

SHORT-RUN

LONG-RUN

ADAPTATION PROCESS

Maintenance

Adaptiveness
INVENTING

Individual

THE FUTURE
Maintenance

Adaptiveness

CHANGING SITUATION
PARAMETER OF THE PROCESS
Effectiveness
Efficiency
ENVIRONMENT

COMPONENTS OF REFLECTIVE LEARNING (BOYD & FALES,

1983) IN RELATION WITH THEMES

COMPONENT

INDIVIDUAL
THEMES

1.SENSE OF DISCOMFORT

CLOAKING TACTIC

2. IDENTIFICATION/ CLARIFICATION OF THE CONCERN

SENSE-MAKING

3. OPENNESS TO NEW INFORMATION

ACQUISITION OF NEW
SKILLS, SELF-DISCOVERY

4. RESOLUTION

ENTREPRENEURSHIP,
DEVELOPMENT OF
COLLEGIALITY

5. ESTABLISHING THE CONTINUITY OF SELF

INVENTING THE FUTURE

6. DECISION TO TAKE ACTIONS

INVENTING THE FUTURE

MODELS IN PLANNING CHANGE

FOCUS:

- HOW CHANGE CAN BE IMPLEMENTED IN

ORGANIZATION

- WHAT ACTIVITIES MUST BE CARRIED OUT

MODELS:

- LEWIN CHANGE MODEL

- ACTION RESEARCH MODEL

- POSITIVE MODEL

Planned Change Models

Lewin
Lewins Planned
Change Model
Unfreezing

Action Research
Model

Positive Model

Problem Identification

Initiate Inquiry

Consultation with Behavioral

Science Expert
Inquire into Best Practices
Data Gathering and Preliminary
Diagnosis
Feedback to Key Client or Group
Moving

Discover Themes

Joint Diagnosis of Problem

Envision a Preferred Future
Joint Action Planning
Action
Data Gathering after Action

Refreezing

Design and Deliver

Ways to Create the Future

LEWIN CHANGE MODEL

CHANGE IS A MODIFICATION OF FORCES THAT KEEP A SYSTEMS

BEHAVIOR STABLE
THE FORCES ARE THOSE THAT:
- MAINTAIN THE STATUS QUO
- PUSH FOR CHANGE
MODIFYING THOSE FORCES THAT MAINTAIN THE STATUS QUO
PRODUCE LESS TENSION AND RESISTENCE THAN INCREASING
FORCES FOR CHANGE
STEPS:
UNFREEZING:
- REDUCING THE MAINTENANCE FORCES
- PSYCHOLOGICAL DISCONFIRMATION: CONTRASTING DESIRED
AND CURRENT BEHAVIOR
MOVING:
- DEVELOPING NEW BEHAVIOR
- CHANGES IN STRUCTURE AND PROCESS
REFREEZING:
- REINFORCE NEW STATE OF EQUILIBRIUM
- ESTABLISH NEW CULTURE, NORMS, POLICIES, STRUCTURE

Lewins Three Step Process to Changing

Behavior
UNFREEZING
Resistance to change lessened,
need for change created
(Equilibrium disturbed)
MOVING
From old behavior
to the new
(Changes)

REFREEZING
Change made
permanent

Unfreezing
Shaking up
Disconfirmation of old ways of doing things
Questioning & challenging of established
wisdom

Moving
Making the actual changes to move to the
new state of existence.
Includes the development of new strategies,
structures, systems & responsibilities and
the shedding of old ones.

Refreezing
Stabilizing, institutionalizing the changes.
Making sure the organization doesn't go
backwards to the old state.
Reinforcement of the changes through
symbols, such as changed logos, dress
code , building design, structures.

Refreezing???
Re-freezing may not be appropriate in an
era of continuous change, so maybe this
stage involves something more like
stabilizing.

LEWIN MODEL

UNFREEZING

EXISTING
BEHAVIOR

CREATION OF
QUESTIONS AND
UNCERTAINTY

REFREEZING
MOVING
INTRODUCTION
OF NEW
BEHAVIOR

CONSOLIDATION
OF NEW
BEHAVIOR

NEW
BEHAVIOR

ACTION RESEARCH MODEL

CYCLICAL PROCESS OF CHANGE
INITIAL STEPS OF CHANGE WILL ESTABLISH INFORMATION
FOR THE NEXT STEPS
STEPS:
- PROBLEM IDENTIFICATION
- CONSULTATION WITH A BEHAVIORAL
SCIENTIST
- DATA GATHERING AND PRELIMINARY
DIAGNOSIS
- FEEDBACK TO KEY CLIENT OR GROUP
- JOINT DIAGNOSIS OF PROBLEMS: ESTABLISH A
COMMON FRAME OF THINKING
- JOINT ACTION PLANNING
- ACTION: ACTUAL CHANGE
- DATA GATHERING AFTER ACTION

Action Research
Action research is central to EACH STAGE
of the OD process.
It is a collaborative effort between the
leaders and facilitators of any change and
those who have to enact it.
It involves data gathering, feedback of data
to the client group, data discussion, action
planning, and action.
Therefore, action research is, as its name
suggests, a combination of research and
action.

Action Research
Action research involves collecting data
relevant to the situation of interest, feeding
back the results to those who must take
action, collaboratively discussing the data
to formulate an action plan, and finally,
taking the necessary action.

POSITIVE MODEL

DEVELOP A CHANGE PROCESS FOR MORE COMPLEX SYSTEM

PROMOTING:
- COORDINATION ACROSS MULTIPLE CHANGE PROCESES
- TAILORED TO FIT CULTURAL ASSUMPTIONS
- SOCIAL CHANGE AND INNOVATION
STEPS:
- CHOOSING POSITIVE ASPECTS OF THE
ORGANIZATION TO
BE EXAMINED
- GATHERING DATA ABOUT THE BEST OF WHAT IS
- MEMBERS EXAMINE THE DATA TO FIND STORIES
(THEMES)
THAT REPRESENT A PICTURE OF THE FUTURE
- DEVELOP A VISION WITH BROAD PARTICIPANT
- DEVELOP ACTION PLAN
- EVALUATION

The OD model for change

PRESENT STATE
(1a)
Diagnose current
situation

FUTURE STATE
(1b)

Develop a
vision
for change

(5)
Assess and
reinforce
change
(2)

(4)
Implement
change

(3)
Develop an
action plan
JOURNEY TO THE FUTURE

Gain
commitment
to the vision

CHANGE AGENTS
change agents are people with the responsibility for
implementing change in an organization
two types of change agents:
- internal (i.e. internal top
performer who will transfer their own
credibility to the change effort) and
- external (i.e. external consultant
who has proven credentials to
assist the change effort)

EXTERNAL VS. INTERNAL CHANGE AGENT

ADVANTAGES

DISADVANTAGES

EXTERNAL

CREDIBILITY AS AN EXPERT
NO NEGATIVE HISTORY WITH
ORGANIZATIONAL MEMBERS
OBJECTIVE OUTSIDER
WIDE EXPERIENCE OF
ORGANIZATIONS AND OD

PERCEIVED AS AN
OUTSIDER
LACK KNOWLEDGE OF
ORGANIZATION AND ITS
CULTURE
LIMITED AVAILABILITY
AND TIME CONSTRAINTS

INTERNAL

CREDIBILITY AS AN INSIDER
KNOWS THE CULTURE, NORMS,
AND PEOPLE IN THE
ORGANIZATION
HAS PERSONAL RELATIONSHIPS
WITH ORGANIZATIONAL
MEMBERS
ALWAYS AVAILABLE

IS DOUBTED AS AN EXPERT
ON OD
MAY HAVE NEGATIVE
ORGANIZATIONAL HISTORY
HAS LIMITED OD
EXPERIENCE
HAS LIMITED EXPERIENCE
WITH OTHER ORGANIZATION
MAY LACK OBJECTIVITY

THE SCOPE OF CONSULTING PROJECTS

HIGHLY POLITICAL

D
PERFORMANCE SYSTEMS
INCENTIVE SYSTEMS
INFORMATION SYSTEMS

A
CULTURE CHANGE
DIVERSITY
EXECUTIVE COACHING

PRODUCT

PROCESS
B
SPEAKERS
FACILLITATION FOR TEAMS
EXPERT ADVICE

C
TRAINING PROGRAMS
INSTRUCTIONAL DESIGN
PRODUCT AND MATERIALS
COMPUTER-BASED TRAINING
LESS POLITICAL

SKILLS FOR EFFECTIVE OD

PRACTITIONERS
1. INTRAPERSONAL SKILLS:
INTEGRITY
MATURITY
LEARNING SKILLS
2. INTERPERSONAL SKILLS:
LISTENING
EMPHATY
PERSUASION
3. GENERAL CONSULTATION SKILLS:
DIAGNOSTIC KNOWLEDGE AND SKILLS
4. OD THEORY

ETHICS:
INCREASING DESIRE TO OPTIMIZE
HUMAN BENEFITS AND PRODUCTION
OBJECTIVES

ETHICAL DILEMMAS:

1. MISREPRESENTATION:
A FALSE CLAIM THAT AN INTERVENTION WILL PRODUCE
POSITIVE RESULTS
2. MISUSE OF DATA:
INFORMATION IS USED PUNITIVELY
3. COERCION:
MEMBERS ARE FORCED TO PARTICIPATE
4. VALUE AND GOAL CONFLICTS:
- THE PURPOSE OF CHANGE EFFORT IS NOT CLEAR
- CLIENT AND PRACTITIONER DISAGREE OVER HOW TO
ACHIEVE THE GOAL
5. TECHNICAL INEPTNESS:
- OD PRACTITIONERS ATTEMPT TO IMPLEMENT
INTERVENTIONS FOR WHICH THEY ARE NOT SKILLED
- THE CLIENTS ATTEMPT A CHANGE FOR WHICH THEY ARE NOT
READY YET

THE CHANGE ACTION SEQUENCE

DIAGNOSIS

DESIGN AND
IMPLEMENTATION
OF INTERVENTION

ALTERNATIVE
INTERVENTION

IMPLEMENTATION

EVALUATION

INSTITUTIONALIZATION