ORGANIZATIONAL CHANGE AND DEVELOPMENT

ORGANIZATIONAL CHANGE

refers to the action by which a company or business alters major components of its organization, such as culture, technology, infrastructure, etc

Sacred Cow Hunt

is an organization-wide attempt to get rid of practices that serve no useful purpose

Types of Sacred Cow Hunt - Paper Cow

unnecessary paperwork

Types of Sacred Cow Hunt - Meeting Cow

number and length of meetings

Types of Sacred Cow Hunt - Speed Cow

unnecessary deadlines

Carnall’s Stages of Change Acceptance - Stage 1: Denial

Employees deny that any changes will actually take place, try to convince themselves that the old way is working, and create reasons why the proposed changes will never work

Carnall’s Stages of Change Acceptance - Stage 2: Defense

They become defensive and try to justify their positions and ways of doing things

Carnall’s Stages of Change Acceptance - Stage 3: Discarding

Employees begin to realize not only that the organization is going to change, but that the employees are going to have to change as well

Carnall’s Stages of Change Acceptance - Stage 4: Adaptation

Employees test the new system, learn how it functions, and begin to make adjustments in the way they perform

Carnall’s Stages of Change Acceptance - Stage 5: Internalization

Employees have become immersed in the new culture and are comfortable with the new system, and have accepted their new coworkers and work environment

Evolutionary Change

a continual process of upgrading or improving processes

Revolutionary Change

“real jolt to the system” that drastically changes the way things are done

ORGANIZATIONAL DEVELOPMENT

a system-planned intervention designed to change an organization’s structure and/or processes to achieve a higher level of functioning

ORGANIZATIONAL DEVELOPMENT

The greater strength of environmental pressures prompting change

ORGANIZATIONAL DEVELOPMENT

The speed at which change must occur

ORGANIZATIONAL DEVELOPMENT

The acceptance that responsiveness to change is a continuous organizational process

ORGANIZATIONAL DEVELOPMENT

The pervasiveness of organizations caught up in and affected by changing environmental conditions

Survey Feedback

the systematic collection of data via a survey

Survey Feedback

Top management supports and actively participates in the survey process

Survey Feedback

An anonymous survey is administered to organization members, tapping their attitudes, perceptions, and beliefs

Survey Feedback

Survey results are compiled by department, plant, or demographic segment

Survey Feedback

The consultant provides feedback to organizational members in the form of a data compilation and summary

Survey Feedback

Managers, task forces, and other employees meet with the consultant to identify potential changes for implementation

Team Building

a technique used by organizations to develop teams or to enhance the effectiveness of existing teams

Team Building

Clarifying role expectations and responsibilities among team members

Team Building

Improving supervisor-subordinate relations

Team Building

Improving problem-solving, decision-making, and planning by team members

Team Building

Reducing conflict among team members

Team Building

Developing a vision, mission, or set of goals

Team Building

Building cohesion and unity within the team

Total Quality Management (TQM)

focuses on employee involvement in the control of quality in organizations

Gainsharing

is an OD intervention that involves paying employees a bonus based on improvements in productivity

Technostructural Interventions

focus on the technology and structure of organizations have increased in popularity as organizations have become more and more focused on effectiveness, efficiency, and productivity

Functional Organizational Design

according to the various functions of the employees

Product-based Organizational Design

structured by product rather than function

Matrix Organizational Design

combines the function and product structures

Reengineering

involves the fundamental rethinking and redesign of business processes to improve critical performance as measured by cost, quality, service, and speed

Fundamental Element

an examination of what the company does and why

Radical Element

a willingness to make crucial and far-reaching organizational changes rather than merely superficial changes

Dramatic Element

focuses on making striking performance improvements rather than slight performance improvements

Technostructural Interventions

The last element is the idea that the reengineering intervention is centered on the processes of the organization, not just the tasks, jobs, or structures

Positive Psychology

focuses on the strengths and virtues of individuals rather than on their weaknesses and impairments

Appreciative Inquiry (AI)

which engages employees by focusing on positive messages, the best of what the employees have to offer, and the affirmation of past and present strengths and successes

Define

identify the key areas of focus or questions for inquiry

Discover

explore past successes and best practices, and identify what is working

Dream

imagine and envision a positive future based on the discoveries

Design

develop strategies and plans to bring the envisioned future to life

Deliver

implement the plans and work towards achieving the desired future

Organizational Transformation

refers to any intervention primarily directed toward creating a new vision for an organization and changing its beliefs, purpose, and mission

Culture Change

the alteration of a pattern of beliefs, values, norms, and expectations shared by organizational members

Knowledge Management

method in which organizations enhance their operations through attempts to generate, transform, disseminate, and use knowledge

ORGANIZATIONAL TRANSFORMATION

intended to move your organization from where it is currently to a desired future state

ORGANIZATIONAL TRANSITION

implementation of change through systematic planning, organizing, and implementation of change to reach a desirable future state without affecting the continuity of business

Organizational Change

Can be narrow or broad, affecting a department, a specific process, or the entire organization

Organizational Change

Can be planned or unplanned, reactive (responding to a problem) or proactive (seizing an opportunity)

Organizational Change

Primarily, on implementing specific modifications to achieve a particular outcome

Organizational Change

Can be short-term, focusing on the efficient implementation of a defined change

Organizational Development

Holistic and organization-wide, aiming to improve the entire system

Organizational Development

Planned, ongoing, and focuses on long-term growth and continuous improvement. It often involves a deep understanding of human behavior and organizational systems

Organizational Development

Enhancing organizational capacity, fostering adaptability, improving communication, developing leadership, and promoting a positive culture. It often emphasizes employee engagement and participation

Organizational Development

Long-term process, involving continuous adjustments and improvements that can take years

Organizational Transformation

Comprehensive and all-encompassing, impacting the entire organization from the ground up, including its fundamental “DNA”

Organizational Transformation

Usually, a response to significant market disruptions, technological advancements, or a need for a complete strategic overhaul. It’s often iterative, experimental, and more unpredictable than typical change

Organizational Transformation

Redefining the company’s core identity, purpose, and how it delivers value. It involves significant shifts in mindset, values, and capabilities

Organizational Transformation

Typically, a lengthy and complex process, often spanning multiple years, with effects that may not be immediately apparent

Internal Factors - Changes in Leadership/Management

new leaders often bring fresh perspectives, strategies, and visions, which can lead to significant organizational changes in structure, culture, and priorities

Internal Factors - Poor Financial Performance

decreasing revenues, profits, or market share often necessitate changes in strategy, operations, or cost structures

Internal Factors - Operational Inefficiencies

bottlenecks, outdated processes, or low productivity can trigger a need for process improvement or technological upgrades

Internal Factors - Low Employee Morale/Productivit

dissatisfaction, high turnover, or lack of engagement can indicate a need for changes in leadership styles, HR policies, or organizational culture

Internal Factors - Changes in Corporate Strategy

when an organization revises its mission, vision, or strategic goals (e.g., entering new markets, launching new products, shifting business models), it requires corresponding changes in structure, processes, and resource allocation

Internal Factors - Growth

rapid expansion often demands restructuring, new communication channels, increased hiring, and formalization of processes

Internal Factors - Decline/Downsizing

contraction may require layoffs, streamlining operations, and a re-evaluation of core competencies

Internal Factors - New Technology Adoption

implementing new internal systems, software, or automation tools to improve efficiency, communication, or data management often necessitates changes in workflows, roles, and employee skills

Internal Factors - Organizational Culture Issues

a culture that is resistant to change, siloed, or does not support innovation can become a driver for cultural change initiatives to foster adaptability and collaboration

Internal Factors - Innovation & New Product/Service Development

the pursuit of new ideas and offerings can lead to changes in R&D processes, market strategies, and internal capabilities

Internal Factors - Employee Demands and Workforce Dynamics

changes in employee expectations regarding work-life balance, flexible work arrangements, diversity and inclusion, or career development can push organizations to adapt their policies and culture

External Factors - Disruptive Technologies

the emergence of AI, automation, big data, or new digital platforms can fundamentally alter industries, forcing companies to innovate or risk obsolescence

External Factors - New Tools & Software

constant evolution of software, hardware, and communication tools requires organizations to regularly update their systems and train their workforce

External Factors - New Entrants

new competitors with innovative business models or lower costs can force established players to adapt

External Factors - Competitor Actions

new product launches, aggressive marketing, or strategic alliances by rivals often necessitate a response from an organization

External Factors - Globalization

increased global competition means organizations must constantly innovate and improve to remain competitive on an international scale

External Factors - Evolving Needs

changes in what customers want, their buying habits, or their expectations for service can compel organizations to change products, services, or customer interaction models

External Factors - Social Media & Transparency

the rise of social media means customer feedback (both positive and negative) can spread rapidly, putting pressure on companies to respond quickly and adapt

External Factors - Recessions/Booms

economic downturns can force cost-cutting, restructuring, and a focus on survival, while periods of growth may lead to expansion and investment

External Factors - Inflation/Deflation

changes in purchasing power or material costs can impact pricing strategies, supply chain management, and overall business models

External Factors - Interest Rates/Capital Availability

the effect on investment decisions, mergers, and acquisitions

External Factors - Demographic Shifts

changes in population age, diversity, or education levels can impact workforce availability, consumer markets, and organizational culture

External Factors - Changing Values

growing emphasis on sustainability, ethical practices, social responsibility, or work-life balance can influence corporate policies and brand image

External Factors - Government Regulations

new laws, industry standards, or regulatory frameworks (e.g., environmental regulations, data privacy laws like GDPR) can force organizations to alter operations, products, or reporting

External Factors - Political Stability

changes in government policies or political climates can create uncertainty or new opportunities, demanding organizational adaptation

External Factors - Trade Agreements

international agreements can impact supply chains, market access, and competitive landscapes

External Factors - Crises

natural disasters, pandemics, or other unforeseen crises can force rapid and often drastic organizational changes to ensure business continuity, employee safety, or adaptation to new realities

Transformational Change

involves a major overhaul of an organization’s strategies, processes, systems, and structures, often resulting in a significant shift in how the company operates

Incremental Change

focuses on making small, continuous improvements to existing practices and routines, building upon current strengths rather than introducing radical shifts

Developmental Change

aims to enhance existing capabilities and performance levels within the organization, often involving training and development initiatives

Remedial Change

addresses existing problems or weaknesses within the organization, aiming to fix issues and improve performance

Process and System Change

involves modifications to the way work is done within the organization, including changes to workflows, procedures, and the systems used to support those processes

People and Culture Change

focuses on altering employee behaviors, attitudes, skills, and the overall organizational culture

Structural Change

involves modifications to the organizational structure, such as reporting lines, departmental configurations, or the overall hierarchy

Merger and Acquisition Change

occurs when two or more organizations combine or one acquires another, leading to significant changes in ownership, structure, and operations