Structural Interventions -Restructuring organization, BPR Vs TQM, employee involvement, work design. Strategic Interventions. Organisation and environment relationships, competitive and collaborative strategies, Organization transformational strategies.

1. Organizational Change and Development
Module 4 - MG University

2. Prepared By
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Please seek permission to reproduce the same in public forms and presentations.
Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com

3. Contents
• Structural Interventions -Restructuring
organization, BPR Vs TQM, employee
involvement, work design.
• Strategic Interventions.
• Organisation and environment relationships,
competitive and collaborative strategies,
• Organization transformational strategies.

5. Sig Sigma
• Six Sigma is a disciplined,
data-driven approach and
methodology for
eliminating defects (driving
toward six standard
deviations between the
mean and the nearest
specification limit) in any
process – from
manufacturing to
transactional and from
product to service.

6. TQM / Continuous process
improvement
• Total Quality Management
(TQM) is a management
approach that originated in
the 1950s and has steadily
become more popular since
the early 1980s.
• Total quality is a description
of the culture, attitude and
organization of a company
that strives to provide
customers with products and
services that satisfy their
needs.

7. Process Re engineering
• Business Process
Reengineering involves the
radical redesign of core
business processes to achieve
dramatic improvements in
productivity, cycle times and
quality.
• In Business Process
Reengineering, companies
start with a blank sheet of
paper and rethink existing
processes to deliver more
value to the customer.

8. Cummings & Worley, 7e (c) 2001 South-
Western College Publishing
14-8
• Prepare the organization
• Specify the organization’s strategy and
objectives
• Fundamentally rethink the way work gets
done
– Identify and analyze core business processes
– Define performance objectives
– Design new processes
• Restructure the organization around the
new business processes.
Process Re engineering

9. Cummings & Worley, 7e (c) 2001 South-
Western College Publishing
14-9
 Work units change from functional departments to
process teams
 Jobs change from simple tasks to multidimensional work
 People’s roles change from controlled to empowered
 The focus of performance measures and compensation
shifts from activities to results.
 Organization structures change from hierarchical to flat
 Managers change from supervisors to coaches;
executives change from scorekeepers to leaders
Characteristics of
Reengineered Organizations

10. Bench Marking
• Benchmarking is the process of
comparing one's business
processes and performance
matrics to industry bests or best
practices from other companies.
• Dimensions typically measured
are quality, time and cost. In the
process of best practice
benchmarking, management
identifies the best firms in their
industry, or in another industry
where similar processes exist,
and compares the results and
processes of those studied (the
"targets") to one's own results
and processes.

11. Socio technical systems
• Sociotechnical systems (STS)
in organizational
development is an approach
to complex organizational
work design that recognizes
the interaction between
people and technology in
workplaces.
• The term also refers to the
interaction between society's
complex infrastructures and
human behaviour.

12. Structural Intervention

13. Structural Intervention
• These interventions deal with an
organization’s technology (for
examples its task methods and
job design) and structure (for
example, division of labor and
hierarchy).
• These interventions are rooted in
the disciplines of engineering,
sociology, and psychology and in
the applied fields of socio-
technical systems and
organization design. Practitioners
place emphasis both on
productivity and human
fulfillment.

14. Structural Design
• This change process
concerns the organization’s
division of labour – how to
specialize task
performances.
• Diagnostic guidelines exist
to determine which
structure is appropriate for
particular organizational
environments, technologies,
and conditions.

15. Self-managed teams.
• A self-managed team is a group
of employees that's responsible
and accountable for all or most
aspects of producing a product
or delivering a service.
• A self-managed team carries out
supporting tasks, such as
planning and scheduling the
workflow and managing annual
leave and absence, in addition to
technical tasks. Management
and technical responsibilities are
typically rotated among the
team members.

16. Quality circles
• A quality circle is a participatory
management technique that
enlists the help of employees in
solving problems related to
their own jobs.
• Circles are formed of employees
working together in an
operation who meet at intervals
to discuss problems of quality
and to devise solutions for
improvements.

17. Downsizing
• This intervention
reduces costs and
bureaucracy by
decreasing the size of
the organization
through personnel
layoffs, organization
redesign,
and outsourcing.

18. • Clarify the organization’s
strategy
• Assess downsizing options
and make relevant choices
• Implement the changes
• Address the needs of survivors
and those who leave
• Follow through with growth
plans
Downsizing Process

19. Cummings & Worley, 7e (c) 2001 South-
Western College Publishing
14-19
Downsizing Tactics
Tactic Characteristic Examples
Workforce
Reduction
 Reduces headcount
 Short-term focus
 Fosters transition
 Attrition
 Retirement/buyout
 Layoffs
Organization
Redesign
 Changes
organization
 Medium-term focus
 Fosters transition &
transformation
 Eliminate functions,
layers, products
 Merge units
 Redesign tasks
Systemic
 Changes culture
 Long-term focus
 Fosters
transformation
 Change
responsibilities
 Foster continuous
improvement
 Downsizing is normal

20. High-involvement Organizations
• This intervention
reduces costs and
bureaucracy by
decreasing the size of
the organization
through personnel
layoffs, organization
redesign,
and outsourcing.

21. Work redesign
• This refers to OD
interventions aimed at
creating jobs, and
work groups that
generate high levels of
employee fulfilment and
productivity.

22. Quality of Work Life (QWL)
• Organizational
improvement efforts.
– Attempt to restructure
multiple dimensions of the
organization.
– To institute a mechanism
which introduces and
sustains changes over time.
• An increase in participation
by employees and increase
in problem solving between
the union and
management.

23. Parallel Structures
• Some companies stand to gain
improved employee effectiveness
though peer communication and
sharing experiences encountered
throughout the working day.
• This behavior happens naturally, to an
extent, wherever the staff gathers for
breaks and shares conversation.
• Formalizing the process ensures that
all employees in a similar department,
regardless of their position in the
traditional hierarchy, have the chance
to contribute ideas to the broader
organization.

24. Management by objectives (MBO).
• Management by objectives (MBO), also
known as management by results (MBR), is
a process of defining objectives within an
organization so that management and
employees agree to the objectives and
understand what they need to do in the
organization in order to achieve them.
• The essence of MBO is participative goal
setting, choosing course of actions and
decision making. An important part of the
MBO is the measurement and the
comparison of the employee’s actual
performance with the standards set. Ideally,
when employees themselves have been
involved with the goal setting and choosing
the course of action to be followed by them,
they are more likely to fulfill their
responsibilities.

25. HR management intervention

26. Goal Setting
• Goal Setting: This change
program involves setting
clear and challenging
goals. It attempts to
improve organization
effectiveness by
establishing a better
fit between personal and
organizational objectives.

27. Performance Appraisal
• Performance Appraisal:
This intervention is a
systematic process of
jointly assessing work-
related achievements,
strengths and
weaknesses.

28. Reward Systems
• Reward Systems: This
intervention involves
the design of
organizational
rewards to improve
employee satisfaction
and performance.

29. Career Planning and development
• Career Planning and
development: It
generally focuses
on managers and
professional staff and is
seen as a way of
improving the quality
of their work life.

30. Managing workforce diversity
• Managing workforce
diversity: Important
trends, such as the
increasing number of
women, ethnic
minorities, and physically
and mentally challenged
people in the workforce,
require a more flexible
set of policies and
practices.

31. Employee Wellness
• Employee Wellness:
These interventions
include employee
assistance
programs (EAPs) and
stress management.

32. Comprehensive OD interventions

33. INTRODUCTION
• Comprehensive interventions are
those in which the total
organization is involved and depth
of the cultural change Is addressed.
• Phrases like “getting the whole
system in the room” are appearing
in greater OD practice.
• Beckhard’s confrontation
meeting and Strategic
management activities involving
top management, in the case of
smaller organizations ,the entire
management group like survey
feedback is an important and
widely used interventions for OD.

34. Whole system can be described as-
• Managers of all of the
functional areas in a
business.
• Representatives of top
management, a cross section
of employees from all levels,
and supplier and customer
representatives.
• Directors of all of the social
service agencies in a
community.

35. BECKHARD’S CONFRONTATION
MEETING
• The confrontation meeting is
developed by Richard Beckhard, is a
one day meeting of the entire
management of an organization, in
which they take a reading of their own
organizational health.
• In a series of activities, the mgt group
generates information about its major
problems, analyzes the underlying
causes, develops action plans to correct
the problems, and sets a schedule foe
completed remedial work.
• This intervention is an important one in
OD. It is quick, simple, and reliable
way in which to generate data about an
organization and to set the action plans.

36. Contd…
The steps involved in confrontation meeting
are as follows:
1. Climate setting (45-60 min). The top
manager introduces the session by stating
his or her goals for the meeting, citing the
necessity for free and open discussion of
issues and problems, and making it clear
that individuals will not be punished for
what they say.
2. Information collecting (1 hour). Small
groups of 7-8 members are formed on the
basis of heterogeneity of composition
that is maximum mixture of people from
different functional areas and working
situations compose each team. The only
rule is that bosses and subordinates
cannot be put together on the same team.

37. Contd..
3. Information sharing (1 hour).
Reporters from each small group
reports the group’s complete findings
to the total group, which are placed on
newsprint on the walls. The total list of
items is characterized usually by the
meeting leader, into few major
categories that may be based on type
of problems (e.g.. Communication
problems), type of relationships (e.g..
Troubles with top management), or
type of area (e.g. problems with the
accounting deptt.)

38. Contd..
4. Priority setting & Goal Action
Planning (1 hour and 15 min.). This step
typically follows a break during which
time the items from the lists are duplicated
for distribution to everyone. In a 15 min
general session, the meeting leader goes to
the list of items. The groups are asked to
do three tasks. First they are to identify
the problems they think should be the
priority issues for top mgt. Second to find
the solutions to the problems. Third, they
are to determine how they will
communicate the results of the
confrontation meeting to their subordinates
. This activity completes the confrontation
meeting for all the managers except for the
top mgt. group.

39. Contd..
5. Immediate follow up by top team (1
to 3 hours). The top mgt team meets the
rest of the participants have left to plan
the first follow-up actions steps and to
determine what actions should be taken
on the basis of what they have learned
during the day. These follow up action
plans are communicated to the rest of
the mgt group within several days.
6. Progress Review (2 hours). A follow
up meeting with the total mgt group is
held 4-6 weeks later to the report
progress and to review the actions
resulting from the confrontation
meeting.

40. Strategic Management Activities
• It is defined as the development and
implementation of the organization’s
grand design or overall strategy for
relating to its current and future
environmental demands.
• The concept is described by
Schendel and Hofers as- It comprises
of six major tasks as:
i. Goal Formulation- Defining
Mission & purpose
ii. Environmental analysis- SWOT
Analysis
iii. Strategy formulation
iv. Strategy evaluation
v. Strategy implementation
vi. Strategic control

41. Stream Analysis
• Developed by Jerry Porras is a valuable model
for thinking about change and for managing
change.
• It is a system for graphically displaying the
problems of an organization, examining the
interconnections between the problems,
identifying core problems and graphically
tracking the corrective actions taken to solve
the problems.
• Porras categorized organization work in four
classes-
a) Organizing arrangements- goals, structure,
policies etc.
b) Social factors- Culture, mgt style, interaction
process etc.
c) Technology- tools, equipment, job design,
technical systems.
d) Physical Setting- space configuration,
physical ambience,
interior design etc.

42. Contd..
• A thorough diagnosis of the
organization’s problems and barriers to
effectiveness is performed via
brainstorming sessions, interviews,
questionnaires and other methods.
• Each problem is categorized in one
stream.
• The interconnections between the
problems are noted. Problems that have
many interconnections are identified as
core problem.
• Action plans are developed to correct the
core problems.
• In stream analysis, OD programs change
the work setting, which leads to
organizational improvement.

43. Survey Feedback
• Collecting data about the system and
feeding back the data for individuals and
groups at all levels of the organization to
analyze, interpret meanings, and design
corrective action steps.
• These are having two components- the use
of Attitude Survey and the use of
Feedback workshops.
• Survey feedback has been shown to be an
effective change technique in OD.
• A well designed survey helps organization
members to develop valid models of how
organizations work and also provide
feedback about progress towards goals.

44. Survey Feedback

45. Steps of Optimal survey
• Organization members at the top of the
hierarchy are involved in the preliminary
planning.
• Data are collected from all organizations.
• Data are fed back to the top executive
team and then down through the
hierarchy is functional teams.
• Each superior presides at a meeting with
their subordinates in which the data are
discussed.
• Most feedback meetings include a
consultant who has helped prepare the
superior for the meeting and who serves
as a resource person.

46. Grid Organizational Development
• Designed by Robert R. Blake and Jane S.
Mouton.
• Six phase program lasting about 3-5
years.
• An organization can move systematically
from the stage of examining managerial
behavior and style to the development
and implementation of an ideal strategic
corporate model.
• It enable individuals and groups to assess
their own strengths and weaknesses.
• Based on two dimension-
a) Concern for people
b) Concern for production

47. Phases in Grid OD
Phase 1: The Managerial Grid- Grid
seminar is conducted by the company
manager. Attention is given to
assessing an individual’s managerial
styles; problem solving; and
communication skills etc.
Phase 2: Teamwork Development- The
goal is perfecting teamwork in the
organization through analysis of team
culture, traditions etc.. Feedback given
to each manager about their individual
team behavior .
Phase 3: Intergroup Development- The
goal is to move groups from their
ineffective ways towards an ideal
model. The phase includes building
operational plans for moving the two
groups.

48. Cont..
• Phase 4: developing an ideal strategic
corporate model- the focus shifts to
corporate planning. Top management
design an ideal strategic corporate model
that would define what the corporation
would be like.
• Phase 5: Implementing the Ideal Strategic
Model- the organization implement the
model developed in phase 4. Each
component appoints a planning team
whose job is to examine every phase of
the component’s operation . After the
planning and assessment steps are
completed, conversion of the organization
to the ideal condition is implemented.
• Phase 6: Systematic Critique- Systematic
critiquing, measuring, and evaluating lead
to knowledge of what progress has been
made, what barriers still exist and must
be overcome.

49. Large scale change and High
Performance systems
• When a number of OD and other
interventions are combined to create major
changes in the total culture of an
organization, the term large scale is used.
• The creation of high-performance systems,
high-performance organizations, high-
involvement organizations, or self
designing organizations- usually involve a
broad array of interventions, and typically
extensive member participation and
involvement.
• Changes in areas as job design and work
flow, staffing procedures, training, and
compensation are usually combined with
such interventions.