Z Ismail 185506 MBA 5248D ODB 04072012

ORGANISATIONAL BEHAVIOUR AND DEVELOPMENT

ZINAT ISMAIL

STUDENT NUMBER 185506

MBA5248D – OBD

DUE DATE 4 JULY 2012

TOTAL NUMBER OF PAGES: 33 INCL. COVERPAGE

PEOPLE TEND TO BE VERY EFFECTIVE AT MANAGING RELATIONSHIPS WHEN THEY CANUNDERSTAND AND CONTROL THEIR OWN EMOTIONS AND CAN EMPATHIZE WITH THE

FEELINGS OF OTHERS. [DANIEL GOLEMAN]

.

5248D – OBD STUDENT NO. 185506ZINAT ISMAIL

CONTENTS

ORGANISATIONAL BEHAVIOUR AND DEVELOPMENT 1

ORGANISATIONAL BEHAVIOUR AND DEVELOPMENT 3ASSIGNMENT OUTLINE 3

QUESTION 1 4DEFINING ORGANISATIONAL BEHAVIOUR AND ORGANISATIONAL DEVELOPMENT 4ORGANISATIONAL BEHAVIOUR (OB) 4ORGANISATIONAL DEVELOPMENT (OD) 5

QUESTION 2 6CONTEMPORARY THEORIES AND MODEL OF ORGANISATIONAL DEVELOPMENT (OD) 6ELEMENTS OF THE MODEL AS AN UNDERSTANDING OF OD 6

FIGURE 1: THE MCKINSEY 7S MODEL 7THE HARD S'S 8THE SOFT S'S 9

QUESTION 3 10ORGANISATIONAL DEVELOPMENT CONSULTANTS 10INTRODUCTION 10EFFECTIVE OD CONSULTANTS AND THEIR BEHAVIOURS 11CONCLUSION 16

QUESTION 4 17TECHNIQUES/ INTERVENTIONS 17INTRODUCTION 17

THE MANAGEMENT BY OBJECTIVES (MBO) PROCESS INTERVENTION 18FIGURE 3 MBO PROCESS MODEL 18EFFECTIVE INTERVENTIONS 22CONCLUSION 24

QUESTION 5 24CULTURE 24INTRODUCTION 24

ORGANISATIONAL CULTURE 25


AN UNDERSTANDING OF CULTURE CAN ASSIST AN OD CONSULTANT FACILITATE CHANGE IN AN ORGANISATION 28CONCLUSION 31

BIBLIOGRAPHY 32


ORGANISATIONAL BEHAVIOUR AND DEVELOPMENT ASSIGNMENT OUTLINE

Organisational Behaviour (OB) is defined as the study andapplication of knowledge about how people, individuals, and groupsact in organisations. That is, it interprets people-organisationrelationships in terms of the whole person, whole group, wholeorganisation, and whole social system. Its purpose is to buildbetter relationships by achieving human objectives, organisationalobjectives, and social objectives. [Clar, 1998].

In business science it may be considered as the study of the waypeople interact within a group [Investopedia ULC, 2011].

Organisational Development (OD) is defined as the attempt toinfluence members of an organisation to expand their candidness witheach other about their views of the organisation and theirexperience in it, and to take greater responsibility for their ownactions as organisation members. [Nielsen. 1984]

The above theories explain the relationship between OB and OD as anassumption that when people pursue both of these objectivessimultaneously, they are likely to discover new ways of workingtogether, resulting that they experience a more effective way forachieving their own and shared goals.

Human behaviour in organisations is unpredictable because itoriginates in needs and value systems deeply rooted in people.[Davis, 1999].

There are no simple formulae and practices for working with people,nor is there an ideal solution to the problems of an organisation.Thus, various strategies are implemented to improve productivity andensuring that organisational goals are achieved.

In today’s economic situation, the turbulence facing modern man andorganisations brings forward many technological, social, politicaland economic changes. As a result, individuals and organisationsare forced to change their approach in many ways, often times morethan once.

This paper includes the following focus areas of organisationalbehaviour and development:

1. Defining OB and OD, and highlighting the key elements andprinciples of organisational behaviour and development.


2. A model of OD with an explanation of each element

3. Behaviours and approaches of an effective OD consultant

4. OD techniques and interventions for challenges faced

5. How an OD consultant can facilitate change by understanding theculture of an organisation

QUESTION 1

DEFINING ORGANISATIONAL BEHAVIOUR AND ORGANISATIONALDEVELOPMENT

ORGANISATIONAL BEHAVIOUR (OB)

“Organisational behaviour is a field of study that investigates theimpact that individuals, groups and structure have on behaviourwithin organisations, for the purpose of applying such knowledgetoward improving an organisation’s effectiveness”. [Robbins,2009:7]

OB seeks to emphasize the understanding of behaviour inorganisations so as to develop competencies in foreseeing how peopleare likely to behave. It is an interdisciplinary field thatincludes sociology, psychology, communication and management. Mostorganisational behaviour strategies are eventually meant tooptimally utilize the capabilities of individuals and groups towardsachievement of organisational objectives.

Various models and philosophies of OB include areas of research forimproving job performance, increasing job satisfaction, promotinginnovation and encouraging leadership. In order to achieve thedesired results, managers may adopt different tactics, including re-organizing groups, modifying compensation structures and changingthe way performance is evaluated.[Investopedia]


The fundamental concept of OB relates to the nature of people(individual differences, perception, motivated involvement, andvalue of the person) and the nature of the organisation (socialsystem, mutual interest and ethics).

OB focuses on organisational problems such as lack of knowledge andskills, occupational injuries, productivity improvement, and qualitydeficits.

Organisational behaviour management is similar to human resourcemanagement, with more emphasis on applied behaviour analysis andsystems-level focus. Areas of application may include: systemsanalysis1, management, training, and performance improvement.

KEY ELEMENTS AFFECTING ORGANISATIONAL BEHAVIOUR

OB is shaped by principles such as the organisation’s environment,the choice its leaders make about strategy, the oganisation’sdesign, the people selected and promoted, and the behaviour ofleaders and top management. Organisations evolve towards thesealignments.

The key elements in OB are people, structure, technology and theexternal elements in which the organisation operates.

PeoplePeople make up the internal social system of the organisation. Theyconsist of individuals and groups. People are the living, thinking,feeling beings who created the organisations. People exists toachieve the organisation’s objectives.

StructureStructure defines the official relationships of people inorganisations. Different jobs are required to accomplish all of an

1 Behavioural systems analysis is a set of concepts and techniques thathelp establish healthy workplace environments. The concept originated intwo disciplines: behaviour analysis and general systems theory. Thetechniques borrow freely from many areas but are selected, focused, andguided by behaviour analysis and general systems theory. Two professionalsocieties include the International Association for Behaviour Analysis(which includes the Organizational Behaviour Management Network) and theInternational Society for Performance Improvement.[Cambridge Center forBehavioural Studies]


organisation’s activities. There are managers and employees,accountants and assemblers. These people have to be related in somestructural way so that their work can be effectively completed.

TechnologyOrganisations have technologies for transforming inputs and outputs.These technologies consist of physical objects, activities, processand knowledge, all of which are brought to bear on raw materialslabour and capital inputs during a transformation process.Technology provides the physical and economic resources with whichpeople work. They cannot accomplish much with their bare hands, sothey build buildings, design machines, create work processes andassemble resources. The technological advancement has a significantinfluence on working relationships.

EnvironmentAll organisations operate within an internal and externalenvironment. A single organisation does not exist alone. It is partof a larger system that contains thousands of other elements. Allthese mutually influence each other in a complex system that becomesthe lifestyle of the people.

Every organisation interacts with other members of its environment.The interactions allow the organisation to acquire raw material,hire employees, secure capital, obtain knowledge, and build, leaseor buy facilities and equipment.

ORGANISATIONAL DEVELOPMENT (OD)

OD is the planned process of developing an organisation to be moreeffective in accomplishing its desired goals. [Shaffer, R]

OD is an application of behavioural science to organisationalchange. It includes a wide range of theories, processes, andactivities, all of which are oriented toward the goal of improvingindividual organisations through pro-active activities andtechniques.

OD focuses on developing structures, systems and processes within anorganisation to improve organisational effectiveness.

KEY ELEMENTS AND PRINCIPLES OF OD

The practice of OD is grounded in a distinctive set of core valuesand principles that guide behaviour and actions.


The key values include respect and inclusion (value the perspectiveand opinions of all employees and stakeholders), authenticity, selfawareness and empowerment (focus efforts on helping everyone in theorganisation to increase their autonomy and empowerment to levelsthat make the workplace satisfying and productive).

OD draws from multiple disciplines that inform an understanding ofhuman systems, including applied behavioural and physical sciences.It approaches organisations as open systems.2

In today’s times profitability, productivity, morale and quality ofwork-life are of concern to most organisations because they impactachievement of the organisational goals. Thus, there is anincreasing trend to maximize an organisation's investment in itsemployees. Jobs that previously required physical dexterity nowrequire more mental effort.

Trends and surveys3 have proven that employees expect more from aday's work than simply a day's pay. They want challenge,recognition, a sense of accomplishment, worthwhile tasks andmeaningful relationships with their managers and co-workers. When these needs are not met, it is proven that performancedeclines.

Today's customers demand improved quality, rapid product or servicedelivery, fast turnaround time on changes and competitive pricing.These are usually achieved in environments with innovativeorganisational practices.

Adaptability and responsiveness to these demands are essential tosurvive in the 21st century. Organisations are therefore expected to"work smarter" and to apply creative ideas.

QUESTION 2

CONTEMPORARY THEORIES AND MODEL OF ORGANISATIONALDEVELOPMENT (OD)

2 French & Bell stated that organisations are open systems that exchangewith the environment [French & Bell, 1999, p.82]3 As in the Avusa Media 2011 work in life survey, half of all respondentsstated that they were seriously seeking a new job. The dominant reason forwhich was money, at the expense of both career prospects and jobsatisfaction.


ELEMENTS OF THE MODEL AS AN UNDERSTANDING OF OD

OD models have the capabilities to illustrate work that needs to bedone and helps understand the various OD theories.

All systems have interdependent parts, with inputs and outputs.When operating together the system interaction is towards a specificset of goals. OD goals may include increased effectiveness andefficiency of an organisation, creating an open communication withinthe organisation, empowering employees to act and facilitateownership of processes and outcomes, enhancing productivity,organisational participation and a continuous learning culture. Thesystem is regulated by feedback mechanisms.

There are a variety of OD models that can be used, some modelsinclude the McKinsey 7S approach4, the Burke-Litwin Change Model5,the congruence model6 and the Action Research model7. Even thoughthese models are based on different approaches, all of them providevalue to business leaders performing organisational assessments.

These assessments are done to determine areas of improvement,opportunities for growth and competitive advantages.

The focus areas include workflow processes, revenue streams,organisational structure, cultural transformation, clientsatisfaction and employee engagement.

4 Developed in the early 1980s by Tom Peters and Robert Waterman, two consultants working at the McKinsey & Company consulting firm.5 A useful model for understanding the organizational change processpublished by George H Litwin and W Warner Burke in 1992. The model is usedas a guide for identifying and linking factors that are critical to asuccessful change initiative.6 The Congruence model was first developed by David A Nadler and M L Tushmanin the early 1980s. It is based on the principle that an organization'sperformance is derived from four elements: work, people, structure, andculture.7 Lewin’s Action Research Model has always been the organizing approach forOD, and is deeply embedded within the practice. Kurt Lewin played a keyrole in the evolution of organization development as it is known today. Asearly as World War II, Lewin experimented with a collaborative changeprocess (involving himself as consultant and a client group) based on athree-step process of planning, taking action, and measuring results. KurtLewin is one of the widely recognised founders, he forwarded the ActionResearch Model concept in mid-1940.


Action learning is a powerful method for sustaining individual, teamand organisational learning, and for creating a learning culturewithin the organisation. Managers and team leaders master actionlearning facilitation as a key skill for ensuring ongoingperformance improvement. It is also the basis, for effectiveindividual and team performance management and coaching.

Action learning empowers staff and teams to take responsibility forongoing service and quality improvement. It enables integration ofworking and learning, and it motivates staff and enriches any job asthey identify challenges and areas for improvement, and takeinitiatives to address these.

The following OD model can be used in a variety of situations, forexample it can be used for the improvement of performance of anorganisation, to examine the likely effects of future changes withinthe organisation, or to align departments and processes during amerger or acquisition and to determine how best to implement aproposed strategy.

FIGURE 1: THE MCKINSEY 7S MODEL

The 7S model can be used to help analyze the current situation, aproposed future situation and to identify gaps and inconsistenciesbetween them. One can adjust and tune the elements of the 7S modelto ensure that the organisation works effectively and well once youreach the desired endpoint

Page10


The basic premise of the model is that there are seven internalaspects of an organisation that need to be aligned. The model canbe used to understand how the elements of the organisation areinterrelated and considers the impact of the change implemented.

This model is a valuable tool to initiate a change process and togive the organisation direction. A helpful application is todetermine the current state of each element and to compare this withthe ideal state.

The way the model is presented in Figure 1 above, depicts theinterdependency of the elements and indicates how a change in one,affects all the others. For example, a change in HR-systems likeinternal career plans and management training will have an impact onorganisational culture (management style) and thus will affectstructures, processes, and finally characteristic competences of theorganisation.

These seven elements are distinguished in the so called hard S's andsoft S's. The hard elements (grey circles) are feasible and easy toidentify. They can be found in strategy statements, corporate plans,organisational charts and other documentation.

The soft elements (blue circles) are less tangible and moreinfluenced by culture. They are difficult to describe sincecapabilities, values and elements of corporate culture arecontinuously developing and changing. They are highly determined bythe people who work in the organisation. Therefore it is much moredifficult to plan or to influence the characteristics of the softelements. Although the soft factors are below the surface, they canhave a great impact on the hard structures, strategies and systemsof the organisation.

Shared values in the middle of the model emphasizes that thesevalues are central to the development of the other elements. It isimportant that one understands that as the values of an organisationchanges so do the other elements.

THE HARD S'S

StrategyAnalysing strategy in OD is important as it provides direction forthe organisation`s activities and its human resources within thecontext of its mission statement`s objectives.

Page11


Proper alignment of the organisation’s resources is essential toplan change in response to or anticipation of changes in itsexternal environment. This assists with giving the organisation itscompetitive edge. The strategy must consider the internalstrengths, weaknesses, opportunities and threats of an organisation,this allows the opportunities to be maximised for accomplishment ofgoals.

Sound strategy is a key to organisational success. Strategy review,evaluation and planning processes should be undertaken on a regular basis (annual and three year cycles), with external facilitation, and should include stakeholder feedback and input.

An integrated approach to strategic planning includes ensuring thatthe organisation’s vision, mission and values are appropriate andinspiring. It includes identifying and addressing capacity buildingneeds as well, to endure that a good strategy can be successfullyimplemented.

An integrated approach to strategy development includes and balancesan outer and inner dimension. The external challenge is how best torelate and connect to those which the organisation serves. Theinternal challenge is to develop the organisation and its capacityto deliver improved service and greater benefits.

StructureThis element involves looking at the formal structure that supportsthe organisation. This describes how the organisation is organiseand includes roles, responsibilities and accountabilityrelationships.

This is important as the structure determines how the differentparts of the organisation is functioning in terms of laid downgoals. My perception is that this element also measures feelingsabout constraints and freedom to act in the working atmosphere.

SystemsThe systems element includes the daily activities and proceduresthat staff members engage in to get the job done. This is thebusiness and technical infrastructure that employees use on a day today basis to accomplish their aims and goals.

Researching and evaluating the systems is important as it helpsunderstand dysfunctions and goals in the organisation.

Page12


THE SOFT S'S

Shared ValuesThis is a set of traits, behaviours and characteristics that theorganisation believes in. This would include the organisation’smission and vision.

Values are important as they are the guiding concepts andfundamental ideas around which a business is built. The valuessystem is critical in developing a successful business strategy.

Style / CultureThis is the behavioural elements which the organisational leadershiphas adopted.

Organisational culture is important, as these values, beliefs andnorms develop over time and become enduring features oforganisational life. Behaviour of one member can have an impact,directly or indirectly on the behaviour of others. In myunderstanding, people depend on culture as it gives them stability,security, understanding and the ability to respond to a givensituation.

StaffThis element includes the employees, their general capabilities andincludes the employee base, staffing plans and talent management

“Work teams are the building blocks of organisations” [French andBell, 1999, p.91]The staff element is important as staff are expected to implementstrategy, and complete the processes that will help improve theongoing operations of the organisation on a continuous basis.

Good individual managers are not enough to ensure organisationaleffectiveness, they also need to be able to work together and co-operate well in teams. This requires an understanding of individualdifferences and temperaments, good listening, good communicationskills and the ability to understand and resolve tensions andconflicts.

The above may apply to governance structures such as boards andcouncils and to top management teams as well, these structures havethe power to ‘make or break’ an organisation.

Page13


It is also necessary to develop ways to resolve differences and todevelop commitment to identifying and addressing problems and issueswithin the group. This is never easy, as personal dispositions,styles and deficiencies are usually involved, which only few groupshave the maturity to deal with openly. Independent facilitation canhelp to address such situations in constructive ways that lead todevelopment rather than conflict.

SkillsThis element takes into consideration the actual skills andcompetencies of the employees working for the company.

It is important as it reflects in the performance of theorganisation.

The above model can be used together with the Active Research modelto analyse and consider effective interventions.

In change processes, many organisations focus their efforts on thehard S's; strategy, structure and systems. One should bear in mindthat it is the soft factors that can ‘make or break’ a successfulchange process, since new structures and strategies are difficult tobuild upon inappropriate cultures and values. These problems oftencome up in the dissatisfying results of spectacular mega-mergers.The lack of success and synergies in such mergers is often based ina clash of completely different cultures, values, and styles whichmake it difficult to establish effective common systems andstructures.

QUESTION 3

ORGANISATIONAL DEVELOPMENT CONSULTANTS

INTRODUCTION

“The process consultant should not withhold his expertise on mattersof the learning process itself; but he should be very careful not toconfuse being an expert on how to help an organisation to learn withbeing an expert on the actual management problems which theorganisation is trying to solve.” [French & Bell, 1999: 259]

OD consultants are considered the change agents to facilitate thepractice of changing people and organisations for positive growth.

Page14


They bring a broad range of experiences and a consistent, thoughtfulapproach to helping clients solve organisational problems.

Their services may include change management, group problemsolving, talent management, business process redesign, training toachieve sustainable and competitive advantage through changing thebehaviour of employees, giving people meaning and direction in theirwork, placing leadership at the centre of management approach,improving the design and effectiveness of employee relatedprocesses, increasing and building new performance capabilities,energising and changing the culture and creating high ownership andaccountability throughout the organisation.

OD is an evolving field of practice. As with any developmentactivity or intervention, the ultimate objective of an OD consultantshould be sustained improvement in performance and not establishingexcellence of theory and concept. There should be a clearcommitment to evaluate all OD projects and to test theireffectiveness.

OD consultants are not necessarily guided by universal standards orcriteria, one needs to evaluate them on track record and accordingto what the consultant has achieved in other similar settings. ODconsultants should also be evaluated on how well the organisationand consultant can join together to define and achieve desiredoutcomes.

The OD process seeks to replicate the processes involved in creatingand sustaining a healthy, resilient and innovative business. Itfocuses on the organisation’s development through engagement andinteraction of the OD consultant in conjunction with the peopleinvolved.

EFFECTIVE OD CONSULTANTS AND THEIR BEHAVIOURS

OD consultants are brought in as change agents, to help theorganisation with its people. They assist organisations to developa leadership team that works effectively together to create acommunication strategy for roll out to or to embed a culture thatfosters innovation and sharing of information. OD consultants alsoassist organisations to make sense of changes taking place in theexternal environment.

Page15


Key beliefs that differentiate OD consultants from other management consultants/project managers include the following:

Systems thinkingAn organisation is comprised of various performance levers that worktogether to achieve outcomes.

Long-term (the long view)Organisational success comes from making decisions today, in light of their impact over the long term.

Long-term (root cause)Making decisions based on the knowledge of the root cause of organisational problems, rather than looking only at their symptoms.

Leadership sponsoredLeaders are made responsible for OD work in their areas, and OD resources that they leverage have to be in support of the sponsorship of a key leader who is accountable for the work.

Data-basedData must be leveraged to derive root-cause analysis and intervention selection.

Whole-system focusThe whole system must be engaged in diagnosis and solution, because a high level of employee involvement leads to buy-in, sustainabilityand ownership.

There are a number of core competencies that an OD consultant shouldacquire in order to be effective. It is essential that the ODconsultant has a good understanding of the business context andchallenges; this includes the organisational history, short-termfinancial expectations, external market-driven pressures andstrategic vision for the future.

OD consultants should focus on joining the organisation and becominga member-at-large in order to understand and empathize with itsconstituents.

They should effectively assess opportunities for growth anddevelopment, for closing the gap between the current and the desiredstate for the organisation, and for putting in place a process forongoing renewal and revitalization.

Page16


They should influence key stakeholders to take ownership for thesuccess of change initiatives and the development of theorganisation and its people.

OD consultants should instil coaching for leadership at every leveland have the skill set to assess, define and implement personal andprofessional development strategies to achieve desired outcomes.

They should enrol the organisation in a process of self-discoveryand identity formation; generating excitement and interest instrategic questions that foster self-reflection and broad inquiry.

Effective OD consultants should keenly observe the relationships andinteractions that form part of the complex adaptive system that isknown as “the organisation.”

Various principles of practice and core values are intended to serveeffective OD consultants in their purpose. These include respectand inclusion (equitably values the perspective and opinions ofeveryone), collaboration (build collaborative relationships betweenthe practitioner and the client while encouraging collaborationthroughout the client system), authenticity (strive for authenticityand congruence and encourages these qualities in their clients),self-awareness (commit to developing self-awareness andinterpersonal skills. OD consultants engage in personal andprofessional development through lifelong learning) and empowerment(focus efforts on helping everyone in the client organisation orcommunity to increase their autonomy and empowerment to levels thatmake the workplace and/or community satisfying and productive).

Effective OD consultants need to use a big-picture perspective, theyneed to understand how small and large, or hard and soft elementsinterconnect and influence the business. They need to help theorganisation disrupt the ‘status quo’ and introduce change.

Effective OD consultants may use a variety of models, theories,methodologies and approaches to guide their work, but in essencethey have to ensure ‘change from within’. This is done througheffective engagement with the organisation’s leadership and employeeteams to transform fear and apprehension into creative energy and are-affirmed sense of purpose.

An effective OD consultant’s processes is supported by theory whichthey draw from multiple disciplines that inform as an understanding

Page17


of human systems, including applied behavioural and physicalsciences.

Effective OD consultants are systems focused. They approachcommunities and organisations as open systems; i.e. they act withthe knowledge, that change in one area of a system always results inchanges in other areas; and change in one area cannot be sustainedwithout supporting changes in other areas of the system.

Effective OD consultants are guided by action research, they areable to continuously re-examine, reflect and integrate discoveriesthroughout the process of change in order to achieve desiredoutcomes. In this way, the client members are involved both in doingtheir work, and in dialogue about their reflection and learning inorder to apply them to achieve shared results.

Effective OD consultants are process focused, they are able tointervene in organisational or community processes to help bringabout positive change and help the client work toward desiredoutcomes

Effective OD consultants are well-informed by data, this involvesproactive inquiry and assessment of the internal and externalenvironment in order to discover and create a compelling need forchange and the achievement of a desired future state of theorganisation or community. Some methods include survey feedback,assessment tools, interviewing, focus groups, storytelling, processconsultation and observation.

Effective OD consultants are client centred, they focus on the needsof the client in order to continually promote client ownership ofall phases of the work and support the client’s ability to sustainchange after the consultant engagement ends.

Effective OD consultants are focused on effectiveness and health,they help to create and sustain a healthy effective human system asan interdependent part of its larger environment.

OD consultants help organisations initiate and manage the humandimensions of change that occur from time to time, these includeleadership transition, transfer of leadership, addition of newtechnology, moving locations and sudden change from outside sourcesthat effect the organisation’s strategies, products and people.

In business, as in life, change is the only constant. Sometimeschange is thrust upon us by external factors such as shifts in the

Page18


economy or technology may demand a response if the business is toremain viable.

OD consultants should avoid being influenced by their own beliefsand principles, their strategy should match that of the business andconsider that sometimes change may be initiated because there is aneed for a new product or service, or a new strategic direction, ora merger or acquisition may be needed to give the business acompetitive edge.

OD consultants should avoid being drawn in by organisationalpolitics that are unsupported, they should not be afraid of hurtingpeople’s feelings or fear that they may offend certain managers orindividuals. They must consider all morale or communicationsproblems, inefficient processes, ineffective people, retirements andpremature leave-takings that can compromise the organisation’ssuccess.

Change is rarely easy because changing an organisation involvespeople, and most people resist change. Determining how to change canbe an enormous challenge. OD consultants should not neglectunderstanding the implications of the change for the organisation’speople and implementing it efficiently and effectively can be aneven greater challenge.

It is critical that the OD consultant does not use incorrect orinappropriate interventions, he must ensure that the interventionsselected are implemented effectively, with the right group ofpeople, and with the right facilitation and support.

OD consultants must realise that they should not use other peoplefor their own benefits or for their own purposes. The best way toresolve ethical dilemmas is for OD consultants to discuss them whenthey arise with other consultants. (Snell, 1986)

It is important to learn and develop ethical fluency as one way ofthe developmental process. To develop these ethical issues, an ODconsultant will need to have an understanding and a commitment toprepare the consultant to make rational decisions. The rationaldecisions should be based on well structured problem analysis andethical analysis. Ethical sensitivity is developed through intuitionand reflections of an OD consultant’s belief, values and experienceon ethical dilemmas. Therefore the ability to resolve ethicaldilemmas depends on the OD consultant’s ability to choose his or hervalues and standards consciously, with the ability to clarify ones

Page19


personal values and how to apply these values systematically.(Gellerman, et al, 1990).

There is need for OD consultants to understand that there is asignificant difference between the theories of OD and what happensin reality (McLean, et al, 1982).

There are various studies which have been carried out in the fieldof OD and these studies are aimed at determining some of the mostcommon dilemmas that are faced by OD consultants.(DeVogel, 1992).

OD consultants may face the following dilemmas and should avoidbeing trapped:

Illusion of participationThis is a situation whereby employees get the impression that theyare involved in decision making while in actual sense, the employerhas already made up his or her mind. This dilemma is faced by manyconsultants and it occurs frequently. They result to solving itthrough confronting the client.

Skip the diagnosisThis is whereby one is asked to skip a diagnosis or a needsassessment but instead to intervene through training or teambuilding. The consultants who faced this dilemma handle it bynegotiating an alternative approach or by confronting the client.

Inappropriate interventionThis situation occurs when one is asked to conduct an organisationdevelopment intervention like team building which the consultantknows very well that it is not appropriate for the organisation. Theconsultant solves this dilemma through action research andnegotiations.

Stretching the limits of competenceThis is whereby a consultant tries a new intervention with a clientbut this intervention may stretch beyond his or her skills orcompetencies. The consultants solve this problem through the use ofresearch action or taking independent action.

CoercionThis is whereby the employees are forced to participate in an ODintervention without their will. This dilemma is solved throughnegotiation, confronting the problem or using action research togather more information.

Page20


Political pressureThis is whereby the behaviour of the consultant is shaped by theclient organisation’s internal policies. Taking independent actionsand using action research are the most commonly used approaches tosolving this dilemma. There are however others who use negotiation,indirect response or did not consider it a problem.

Informed consentThis is whereby the employees find themselves being drawn into anintervention when they are not aware of what they are gettingthemselves into. This problem is dealt with using negotiation,action research, and confrontation or through independent action.

Client has misled the consultantThis is whereby the consultant has been misled by the client onissues involving organisations problems. Also the client may beunwilling to co-operate or may be unwilling to give out all theinformation. Many consultants respond to this through confrontationand action research.

Misuse of informationThis is whereby the consultant is asked by the manager to revealinformation and the manager has intent of using this information forpromotion or dismissal of the employees. The consultant solves thisproblem by refusing to give the information, negotiating analternative approach, confronting the approach or conducting anaction research.

Violate confidentialityThis is where the manager asks the consultant to share with himinformation that the consultant has promised not to share. Acompetent consultant will refuse to comply.

Priority of interestsThis is where the consultant is in a dilemma on whose interestsshould come first between the management’s and employees’ interests.Action research and negotiation are used to solve this problem.

Role expectationsThis is where the consultant is caught between his view of his roleas a consultant and the view of the client on what the role of aconsultant is. Negotiation and confrontation are the methods used tosolve this dilemma.

Page21


Conflict with co- consultantThis is when a disagreement occurs between co-consultants on whatshould be done about a client. This is resolved through negotiation,action research or confrontation.

In general, the core principles, practices and values that anethical OD consultant should practice include autonomy, freedom,collaboration, objectivity, independence, anonymity, truthfulness,professional development, social justice and recognition of limits.

The consultant should honour the preferences, pace, direction,judgment and decision of a client. He or she should ensure thatevery person involved in the intervention is willing to participateand he or she understands the reasons for carrying out theintervention. It is the duty of the consultant to offer advice,choices and recommendation instead of giving prescriptions.Therefore, the consultant should not act as an expert but as amediator and facilitator whose main aim is to help the client inproblem identification and solutions. He should be neutral on issuesaffecting the company’s politics. He or she should not share anyinformation regarding the client, the organisation, an employee orabout the intervention without the consent of the individualsinvolved. The consultant should be open on issues like costs, risksinvolved, estimated time, his or her experience, concerns anddoubts. He should also be truthful in his assessment of thepotential effectiveness of the intervention that he has proposed.

The OD consultant should be in a position to refuse any work from aclient who is involved in work that violates the client’s values.

An OD consultant should also be competent in all human processesthat include team building and conflict resolution. A competent ODconsultant will also have good interpersonal skills and goodcommunication skills. Competence will also make him or her haveexcellent training and coaching skills. It also enables one to haveemotional intelligence.

Choosing the appropriate approach to organisational change dependson the nature of the problem, the objectives of the change, thepeople implementing the change, the people affected by the change,and the resources available. Several strategies are often thought ofas effective techniques for organisation development, these mayinclude team building, total quality management, job enrichment, andsurvey feedback.

Page22


OD consultants must model the behaviours the client organisationwants and needs to learn. He must provide a special presence thatencourages and supports the people in the organisation to beconstantly aware of the health of their system.

As part of the OD process, teams are used as a way of respondingquickly to changing work processes and environments. They should beencouraged and motivated to take the initiative in makingsuggestions for improving work processes and products. The term‘team’ can refer to intact work groups, new work units, or peoplefrom different parts of an organisation who must work together toachieve a common goal. Often team building begins with a diagnosticsession, held away from the workplace, where the team's membersexamine their strengths and weaknesses. The goal of team building isto improve the effectiveness of work teams by refining interpersonalinteractions, improving communication, and clarifying goals andtasks in order to improve overall effectiveness in accomplishinggoals. In ideal circumstances, team building is a continual processthat includes periodic self-examination and development exercises.OD consultants must continually develop and maintain strategies foreffective team performance by building trust and keeping lines ofcommunication open.

The success or failure of planned change depends on the correctidentification of the problem and on recognition of possibleresistance to change. It is critical for the OD consultant torecognize the need for change, diagnose the extent of the problemsthat create this need, and implement the most effective changestrategy.

Organisational culture could also influence people's reactions to ODefforts. Organisational culture can be thought of as theorganisation's personality. The culture is defined by the sharedbeliefs, values, and patterns behaviours that exist in theorganisation. Sometimes the definition and strength of anorganisation's culture aren't evident until it undergoes change.

CONCLUSION

OD consultants help organisations manage change and align people,processes and practices for success. In its simplest form, OD workaims to be a catalyst that helps the organisation get from where itis today to its desired state. The OD consultant or change agent is

Page23


the catalyst facilitating this change process. Thus the process is apractitioner-driven intervention-oriented approach to effectingorganisational change via individual change, with a view toincreasing effectiveness.

External OD consultants may provide a different perspective and havea less biased view of the organisation's problems and needs, but itis essential that an effective OD consultant has an in-depthunderstanding of key issues particular to the company.

An individual's low tolerance for change is largely a personalmatter and can often be overcome with support and patience. Opencommunication can go a long way toward overcoming resistance tochange based on misunderstanding, lack of trust, or differentviewpoints. Those who will be affected by the change must beidentified, and the reasons for and details about the change must beconveyed accurately to them. Keeping this information "secret" isbound to cause resistance. Also, the people who are the targets ofthe change should be involved in the change process. This isparticularly important when true commitment to, or "ownership" of,the change is critical and those affected have unique knowledgeabout the processes or jobs that may be altered.

Successful OD efforts require an accurate analysis of the neededchanges and an identification of the potential resistance to theproposed changes. There are two critical points that should beaddressed concerning the areas in which organisations can introducechange.

First, changes made in one area often trigger changes in other areasas well. Managers and those proposing the change must be aware ofthis systemic nature of change.

Second, changes in goals, strategies, technology, structure,process, and job design require that people change. Seriousattention must be given to the reactions of employees and possibleresistance to changes in these areas.

The personality and style of the OD consultant is as important ashis or her experience and expertise. The OD consultant must be aperson who can work within the organisation’s corporate culture.The OD consultant must be able to sit on the boundary of theorganisation as an interested, objective, informed observer and beable to provide accurate, informed feedback.

Page24


QUESTION 4

TECHNIQUES/ INTERVENTIONS

INTRODUCTION

The term Intervention refers to a set of sequenced, planned actionsor events intended to help an organisation to increase itseffectiveness. Interventions purposely disrupt the status quo; theyare deliberate attempts to change an organisation or sub-unit towarda different and more effective state.

Companies are joined nearly every day, but often two companies endup weaker together than they were separately. A KPMG study showedthat 83% of mergers and acquisitions failed to produce any benefits,and over half actually ended up reducing the value of the companiesinvolved, the main problem is that mergers and acquisitions areoften planned and executed based on perceived cost savings or marketsynergies; rarely are the “people” and cultural issues considered.Yet, it is the people who decide whether an acquisition or mergerworks. Customer and employee reactions determine whether the newlycombined organisation will sink or swim.

THE MANAGEMENT BY OBJECTIVES (MBO) PROCESS INTERVENTION

MBO is a widely used approach for enhancing organisationaleffectiveness, the way organisations use this intervention may varyconsiderable. Companies such as IBM and Hewlett-Packard have madeMBO an integral part of their cultures. In general research on theeffectiveness of MBO has produced mixed results. To some degree, thesuccess of an MBO intervention depends on the culture of theorganisation.

In keeping with the principles of OD, implementing a MBO program canbe seen as an opportunity for employee development for managers toassist employees in setting professional work, designing their workand participating in decision making. MBO seems to work better inorganisations that have a consultative environment.

For a MBO program to be an effective organisation-wide ODintervention, senior management must support and activelyparticipate in its implementation. It begins with the top managementproviding a clear statement of organisational purpose or mission sothat individual members can align their goals with critical

Page25


organisational objectives. This statement can then serve as a guidefor developing long range goals and strategic planning.Departmental and individual goals can then be derived from theorganisational goals.

FIGURE 2 MBO PROCESS MODEL

Step1 Formulating Long Range GoalsGuided by the organisation’s mission statement, senior managementdefines critical long term objectives and determines how availableresources will be used to accomplish these goals. This process thenleads to strategic planning activities which describe how theorganisation will cope with its changing environment.

Before the merger takes place, the leaders of both organisationsshould have a strategy mapped out, including communications toemployees and customers, where layoffs will take place (if any do),and how the cultures should be merged.

A SWOT (strengths, weaknesses, opportunities, and threats) analysisshould be done for the combined company. If possible, a briefculture survey (preferably done via interviews as well as paper orWeb/e-mail) should be undertaken in both companies to discover whatthe cultural differences are. Sometimes this will be obvious in someaspects e.g. one culture values teams and bottom-up innovation, theother favours command-and-control tactics, but not in others, such

Page26


as how and whether individuals and teams are rewarded forinnovations, how failure is dealt with, whether conflict isaddressed openly, etc. This will prevent disconcerting delaysbetween the announcement and the implementation of themerger/takeover.

If the real purpose of the merger is to acquire another company’sassets, in terms of a particular product or brand, its factories orpatents, etc., that should be acknowledged and dealt with up front.If employees are fooled at first by pleasant words, they will reactmore strongly when those words become taunts.

Finally, before the merger or acquisition takes place, the leadershipteams should consider the non-financial issues. Will people in thetwo companies be able to work together? Will acquiring a company, ormerging with it, destroy the properties or drive away the talentthat made it worth having? Can a simple partnership, alliance, oreven stock ownership without integration provide more benefits thancombining the two companies? These issues may be overlooked by theleadership teams as they are often ignored or downplayed byinvestment bankers who want to do the deal.

Step 2 Developing Specific ObjectivesIn this step, broad organisational objectives are translated into specific measurable outcomes with clearly stated timeframes. Although organisational objectives may include areas such as profitability, market share, and quality, all objectives must be stated in clear terms.

In many ways, it makes sense to consider mergers in the same lightas acquisitions. It has become a truism that there is no such thingas a merger, one side will come out dominant in each function, evenin the friendliest of “mergers.” There can, in the end, only be oneCEO, one head of each function, one head of each department.Therefore, we will generally consider mergers and acquisitions to beinterchangeable.

Power issues should be confronted directly to avoid drawn-outconflicts and confusion for employees. Conflicts must be controlledbut addressed, to avoid protracted turf wars, lasting bitterness,and employee withdrawal and retention. (Withdrawal can bepsychological as well as physical - employees can simply not go thatextra mile, and do the absolute minimum required of them. They canalso sabotage change efforts and new initiatives. This can last formany years, long after outsiders have forgotten about the merger.)

Page27


Step 3 Developing departmental objectivesOnce organisational objectives are clearly specified, each divisionor department must develop a set of specific goals that will enablethe organisation to achieve its objectives. Again, thesedepartmental goals must be clearly stated in terms of measurableoutcomes.

Mergers can be a profoundly demoralizing time, especially ifcommunications from the leaders are sparse or misleading. Many agreethat the best way to handle this is to constantly communicate toeveryone in the company, using a variety of methods such as face toface communication, e-mail communication, written communication,group discussions and / forums etc. so that people understand thereasons for the acquisition.

The communication should include the combined companies’ strategyand how the two companies will combine. If layoffs need to be made,they should be announced quickly and directly, again with thereasons and rationale clearly expressed.

As the integration of the company’s proceeds, many may feel thattheir past ways of working and their contributions are not valued.

In addition to celebrating success, the company must show in wordand indeed that it value the best of the old ways, the tradition andheritage of the company being taken over. If the new organisationshows total disregard for the heritage of groups being taken over,people will take longer to get over the shock of transition, and maysabotage change or simply “vote with their feet.”

Step 4 Setting Group and Individual GoalsThis step is focused on developing and implementing group andindividual level goals in a coordinated manner. This processencourages vertical and horizontal communication in the organisationsince individuals must clarify their roles and take responsibilityfor specific results. Individual’s goal setting is done in acollaborative manner and will include both, personal andprofessional development objectives. Research indicates thatindividual goals produce the most positive results when they arechallenging and specific.

Culture is the shared values, beliefs, and preferred ways to behave,it is hard to control, and in most mergers, it seems that nobodytries very hard to do it. The end result is that the culture usually

Page28


is not as productive as it should be in the combined organisation,moulded primarily by the leader’s actions and politically adept orpowerful people in each organisation.

The goal in a merger is for the better of two companies to bepreserved, resulting in synergy and continued profit. This appliesto culture as well as to operational processes and technologies. Thecultures of each company should be carefully examined, and caretaken to guide the combined organisation’s culture so itincorporates the best of each.

One interesting note on cultural change is that it often seems tocome about only when an organisation feels that its very survival isthreatened. A merger or acquisition provides a fine opportunity forchange!

Step 5 Formulating and Implementing Action PlansAlthough clearly stated goals provide a precise description ofdesired outcome, action plans are needed to provide a way ofattaining goals. Action plans systematically identify the methods,activities and resources required to accomplish objectives.

OD consultants may help the leaders to agree on a clear and specificset of goals for the merger. Setting up measures helps theleadership team to focus on tangible, measurable results, whichbrings misunderstandings and conflict into the open.

Measurement is also an excellent communication tool, since it is anaction which gives the words more credibility. Measuring theresults at a number of milestones can also point to potentialproblems before they become crises, helping to make themerger/acquisition smoother and increasing the likelihood ofsuccess. It also helps to keep leaders focused on a balanced set ofissues.

Scenario planning is important, will the merger work if there is amarket decline? What are the likely responses of customers andregulators? We wonder if, in the Daimler-Benz takeover of Chrysler,anyone considered reactions to Chrysler no longer being an Americancompany, including a loss of sales (since most of its customers arein the United States) and the de-listing from many indexed mutualfunds.

The OD consultant should not usually lead the scenario planning, butthey should be there as a process consultant to ensure that every

Page29


team member’s contribution is heard, and that people are honest witheach other and with themselves.

Various options should be explored and consideration should be givento other possible ways to accomplish the same goals without amerger. Again, going back to Chrysler, the company was seekinginternational expansion and financial security. A partnership withDaimler-Benz, or acquiring an Asian or European automaker, wouldprobably have served the company more than becoming a division of aculturally very different conglomerate. Once more, the OD consultantmay be most effective as a process consultant rather than as aleader.

The OD consultant should ensure there is effective communication anda that steady stream of information is released by theorganisation’s leaders; keeping that information balanced, direct,clear, and accurate; and preventing undesirable subtexts from beingcommunicated. The OD consultant should also probe leaders when theirwords and actions contradict each other, to clarify one or changethe other.

Rewards and compensation systems should be evaluated. Research showsthat most people are generally not motivated by money, though theymay take a job (or keep a job) for financial reasons. Even wherebonuses or profit sharing help to increase motivation, the moneyitself is often considered symbolic for a measuring stick ofachievement. The OD professional should help the organisation to setup milestones and celebrate small and large successes along theroute to integration, so that people not only feel progress, butalso feel that their achievements are being rewarded. Otherwise,integration may seem like a very long road.

A Cultural assessment should be completed clarifying eachorganisation’s culture to make the task of integration easier, andto ensure that communications and actions do not accidentally causemore harm than good.

OD consultants should work with both organisations to clarify theirshared vision of what the culture should be, and then working tomake it that way. Johnson & Johnson maintains a shared culture amonga large number of companies, some acquired and some home-grown. Theydo it by having a clear, shared vision and values, and by workingwith newly acquired firms to ensure that their culture is brought tothe J&J way.

Page30


Leader coaching can be integrated to the leadership team, it addressconflicts, and assures mutual involvement and dedication to themerging process. OD professionals should work at every level of theorganisation where the merger is taking effect. The goal is to buildthe ability of the leaders to communicate their intentionsaccurately, build trust, and manage conflict and tension. Strongleader credibility is key to successful integration.

Working with process teams is important to identify the bestpractices in each organisation and assure that they are notovertaken by less effective standard procedures from the dominantcompany, but to become the standard procedures for both. Thisincludes operational and service processes, but can also be appliedto aspects of the culture.

Integrating initiatives should be pursued. Managers may beoverwhelmed with not just the merging of two organisations, but alsoquality initiatives, customer projects, SAP implementation, etc. Oneof the more challenging projects for an OD professional isintegrating initiatives and helping leaders to make tough judgementcalls on which ones should be suspended, eliminated, or combined.

Step 6 Reviewing Goal ProgressFinally, OD consultants and managers must review progress towardsachieving the goal by meeting with subordinates in a group orindividually. During these meetings, managers and subordinatesdiscuss problems and difficulties involved in completing the goalsand evaluate individual performance based on a degree to whichtargeted goals were actually achieved. These meetings may alsoprovide an opportunity to review and modify goals that have becomeoutdated or unobtainable. Once this assessment is complete, thefocus shifts from past performance to planning future goals andaction plans. Together, managers and subordinates develop mutuallyagreed upon goals and formulate a strategy to achieve them.

Key processes should be monitored. Integration key processes such asnew hire orientation, training, and even compensation systems shouldbe consistently monitored. These processes all support or sabotageboth the present and desired culture. OD professionals understandthe various roles of each organisational system, and especially therole it plays in the culture. OD consultants should keep an eye onall important systems and processes by remembering what makesmergers succeed and fail. They should keep an eye on the humanissues as well as the financials, and use the most appropriateorganisational development tools.

Page31


EFFECTIVE INTERVENTIONS

The above intervention is appropriate for the challenge presented asit meets the three major criteria that define the effectiveness ofan intervention:

1. The Extent to which the Intervention fits the needs of theorganisation

This criterion concerns the extent to which the intervention isrelevant to the organisation and its members. Effectiveinterventions are based on valid information about theorganisation’s functioning; they provide the organisation’s memberswith opportunities to make free and informed choices and gainmembers’ internal commitment to those choices.

Valid information is the result of an accurate diagnosis of theorganisation’s functioning. It must reflect fairly whatorganisation members perceive and feel about their primary concernsand issues.

Free and informed choice suggests that members are actively involvedin making decisions about changes that will affect them. It alsomeans that interventions will not be imposed on them. Internalcommitment means that organisation members accept ownership of theintervention and take responsibility for implementing it. Ifinterventions are to result in meaningful changes, management,staff, and other relevant members must be committed to carrying themout.

2. The degree to which it is based on causal knowledge of intendedoutcomes

Interventions are intended to produce specific results and must bebased on valid knowledge, with a confirmation that these outcomescan be produced. The OD intervention method should be evaluated togain the ability to predict the outcome. Many research studies haveconfirmed that the MBO process is one of the most appropriateinterventions for integrating companies in the case of mergers andacquisitions.

3. The extent to which the OD intervention transfers change-management competence to organisation members

Page32


The MBO process intervention can be said to be effective, as itallows for the the organisation members to initiate, implement andmonitor change on their own. The values underlying OD suggest thatorganisation members should be better able to carry out plannedchange activities on their own, following the intervention. Theyshould gain knowledge and skill in managing change from activeparticipation in designing and implementing the intervention.Competence in change management is essential in today’s environment,where technological, social, economic, and political changes arerapid and persistent.

Factors relating to change situation relate to the environment ofthe organisation and include the physical and human environment.This intervention takes this into account.

Intervention success depends heavily on the organisation being readyfor planned change. Indicators for readiness for change includesensitivity to pressures for change (higher sensitivity meansgreater readiness to change); dissatisfaction with the status quo;availability of resources to support change; and, commitment ofsignificant management time.

Managing planned change requires particular knowledge and skillsincluding the ability to motivate change, to lead change, todevelop political support, to manage transition, and to sustainmomentum. If organisation members do not have these capabilities,then a preliminary training intervention may be needed to preparethe members for the major change.

The national culture within which an organisation is embedded canexert a powerful influence on members’ reactions to change. Thisintervention design accounts for the cultural values and assumptionsheld by the organisation’s members.

Case Example (A practical example of an effective OD interventionused in a post-merger transformation and integration of two largeservice provider organisations.)

The analysis completed showed a need for integration of twocompanies and cultures that needed to align all employees to thepurpose, values, goals and new customer-centric strategy of themerged organisation.

Intervention and technique used

Page33


Close partnership with the executive team used process consultationto create shared vision, mission and values. A key catalyst in thetransformation was a two-day whole-systems event. The event brought employees from both organisations together tocelebrate their history and envision their future Employeesparticipated in identifying and aligning key actions to support thenew strategic direction. For full engagement of all participants, ODconsultants drew on an old African method of ensuring that allvoices are heard called lekgotla (creative dialogue). The lekgotlaprocess helps individuals to be heard in groups, groups build acommon point of view and become teams, and teams to pursue commongoals. Diversity is celebrated and built on, as individuals practicethe art of listening and building on each other’s views.

Results of the interventionTrust, understanding and commitment to the integration effort werebuilt. Values were examined and aligned and foundational changeactions planned. The leadership team witnessed the beginning of aprofound organisational transformation and renewal.(http://www.odnetwork.org)

CONCLUSION

OD is hard for the average leader to understand and see an immediateuse for. That’s because the field isn’t as clear as other stafffunctions such as Finance, Human Resources or InformationTechnology. However, once OD is engaged in an organisation, resultscan be dramatic. All other staff groups focus on their specificfunction and look at the organisation almost myopically from thatperspective. OD, on the other hand, facilitates an overall, bird’s-eye view that positively affects the entire organisation by helpingthe leader become more effective, as well as helping to unleashhuman potential so that business results are achieved in anengaging, motivating work environment.

OD is a long range effort to improve an organisation’s problemsolving and renewal processes, particularly through a more effectiveand collaborative management of the organisation’s culture. Inmerger and acquisition scenarios there should be a special emphasison the culture. OD consultants or change agents are consideredcatalysts that use theory and technology of applied behaviouralscience and action research.

Page34


It is clear that a merger is not something that happens merely toorganisations, but something that happens to people in theorganisations. It is necessary for people implementing mergers tofocus on the human side as much as the financial side. In most takeovers, both companies’ staff lose some productivity (andpeople) as employees divert their attention to their own place inthe future, merged company. Will they still have a job? Will theyhave advancement prospects? What will be their role? Will thecompany gain or lose? This is the time when the best employees mayjump ship, because they will find it easiest to get jobs elsewherewhich strengthens the competition even as it weakens the integratedcompany. As people devote more time to exchanging rumours, ortrying to find out their status, and dwelling on the change,productivity tends to drop. In the absence of credible, continuedinformation, the grapevine will spread inaccurate rumours withamazing ease. For that reason, the transition should be as short aspossible. If there are layoffs, the role and situation of thesurvivors should be addressed.

The success of the OD intervention used depends to a great extent onthe expertise, experience and talents of the consultant. Noconsultant should undertake to implement interventions that arebeyond their level of competence or their area of expertise. Theethical guidelines under which OD practitioners operate require fulldisclosure of the applicability of their knowledge and expertise tothe client’s situation.

QUESTION 5

CULTURE

INTRODUCTION

Culture may be considered as the shaping of the mind that candistinguish the members of one group or category of people fromthose of another (Grobler, Warnich,Carrell, Elbert, Hatfield, 2011:638).

In OD terms, culture may be the characteristic between members of agroup that is expressed as the collective values, traditions, andmyths within organisations. Culture defines people, context, humanrelationships and leaderships and incorporates close relationshipsto all aspects of business within an organisation (Grobler et., al2011: 638).

Page35


Culture is assumed to be the primary vehicle for change within theOD tradition, although the relationship between culture and thechange process in most cases are not well understood. Mostconsultants are interested in management by measurement andmanipulation of culture. Theoreticians of culture, however, aim tounderstand the depth and complexity of culture. Unresolved issuesremain on how to define culture, the difference between culture andclimate, measurement/levels of analysis, and the relationshipbetween organisational culture and performance.

OD consultants provide the organisation with expert advice foradapting an established social science theory and model forincreasing profitability, productivity, and quality of work life.(http://www.odnetwork.org/odnc/whatis.htm)

ORGANISATIONAL CULTURE

In OD there is a reciprocal influence between culture, strategy,structure and processes. Each is important and each influences eachother.

There is no single definition for organisational culture. The topichas been studied from a variety of perspectives ranging fromdisciplines such as anthropology and sociology, to the applieddisciplines of organisational behaviour, management science, andorganisational commitment.

Edgar Schein defines culture as “a pattern of basic assumptions,discovered or developed by a given group, as it learns to cope withits problems of external adaptation and internal integration thathas worked well enough to be considered valid and, therefore is tobe taught to new members as the correct way to perceive, think, andfeel in relation to those problems”.

Robbins (2000:34) postulates that culture, as a concept, has had along history. In the last decade it has been used by someorganisational researchers and managers to indicate the climate andpractices that organisations develop around their handling of peopleor to refer to the supported values of an organisation.

Mullins (1999:53) defines organisational culture as the collectionof traditions, values, beliefs, policies and attitudes thatconstitute a pervasive context for everything one does and thinks inan organisation.

Page36

http://www.odnetwork.org/odnc/whatis.htm


Aswathappa (2003:479) refers to culture as a complex whole whichincludes knowledge, belief, art, morals, law, custom and othercapabilities and habits acquired by man in a society.

Organisational culture may be defined as shared assumptions ofvalues and beliefs that guide the actions of its members. It tendsto be shaped by the founder’s values, the industry and businessenvironment, the national culture, and the senior leader’s behaviourand vision.

Basic assumptions relate to values and norms of behaviours whichorganisations can invent, discover or develop over a period of time.These values and norms may be considered to be valid over time andtherefore practiced by the members of the organisation.

The profile of organisational culture may be identified asautocratic, bureaucratic8, entrepreneurial9 or technocratic.(Hellriegel, Slocum and Woodman (2001:523))

A research study conducted by JA Chatman and KA Jehn in 1994identified seven characteristics that define an organisation’sculture. They are innovation, stability, people orientation,outcome orientation, easy goingness, detail orientation and teamorientation.

Organisational culture can be considered the glue that helps holdthe organisation together. It provides a sense of identity to

8 An organisation that values formality, rules, standard operatingprocedures, and hierarchical co-ordination has a bureaucratic culture. Lon-term concerns of bureaucracy are predictability, efficiency, and stability.Its members highly value standardized goods and customer service.Behavioural norms support formality over informality. Managers view theirroles as being good co-ordinators, organizers, and enforcers of certainrules and standards. Tasks, responsibilities, and authority for allemployees are clearly defined. The organisation’s many rules and processesare spelled out in thick manuals and employees believe that their duty isto .go by the book. and follow legalistic processes.

9 High levels of risk taking, dynamism, and creativity characterize an entrepreneurial culture. There is a commitment to experimentation, innovation, and being on the leading edge. This culture doesn’t just quickly react to changes in the environment . it creates change. Effectiveness means providing new and unique products and rapid growth. Individual initiative, flexibility, and freedom foster growth and are encouraged and well rewarded.

Page37


employees. It enhances commitment to the organisation’s mission andclarifies or reinforces standards of behaviour.

Culture is created and sustained through recruitment and selectionprocesses, actions of top management and the organisation’ssocialisation method. These are amongst the many practices withinthe organisation that tend to keep the culture alive.

The socialisation method assists in sustaining organisation culturewith the process where the organisation identifies theorganisational culture for new employees and helps them adapt orconform to the organisational culture. The reason the organisationuses this approach is because of the different values that newemployees may have, and these new values can disturb the beliefs andcustoms that have been established within the organisation (Robbinset., al 2009: 428).

Many of the human resource practices such as selection, performanceappraisal, training and career development reinforce theorganisation’s culture.

Organisational beliefs, communication practices and philosophicalstances influence the work norms.

Once the culture is defined and implemented within the organisation,the organisation emphasises similar experiences for the employees.These experiences ensure that the employees fit into theorganisation and can include the selection process, performanceevaluation criteria, training and career development activities, andpromotion procedures.Organisational culture is learned10 through interaction with otheremployees and the organisations conveys its cultural valuesexplicitly by means of mission statements, policy statements, use ofsymbols, and displayed artefacts. Leaders act as role models andshow what the organisation values by what they say and do, what theyreward, who they make allies and how they motivate compliance.

Employees learn the culture of the organisation from the founder’svision. Where the organisation is large, not all the employees havesimilar cultural values. The employees learn the organisationalculture through a number of methods. These methods include cultural10 Aswathappa (2003:481) believes that culture is essentially learnt. Shecontends that culture is created around critical incidents; where norms andbeliefs arise around the way members respond to these critical incidents.

Page38


processes which incorporate the regulations for interpreting theenvironment and the organisation attaches values and priorities tothese regulations. These elements of the cultural process are thenpassed from one generation to the next (Grobler et., al 2011: 638).

South African companies have a very unique culture due to thediversity of language, religion and race of the people that occupySouth Africa11.

Ways that culture can be taught include stories told to newemployees about the organisation. These stories represent thesequence of events that the founders have achieved in relation tothe organisation such as rags–to–riches successes. These storiessupport the present in the past and provide explanations andlegitimacy for current practices, as well as teaching the newemployees about the organisational culture.

Rituals is also a method to teach the new employees theorganisational culture that basically emphasises the repetition ofactivities that support and demonstrate the key values of anorganisation, the goals that have high priority status, and thepeople who are important and not expendable within the organisation.

The material symbols are items such as the size of the office, theexecutive, and dress attire and perks. These symbols allow employeesto determine who is important, the degree of egalitarian wanted bytop management and the type of behaviour that is appropriate.

Language is also used to identify members of a culture or sub–culture. Members who learn the languages used, demonstrate that theyaccept the culture demonstrated and help preserve it (Robbins et., al2009: 433).

Mullins (1999:807) attests that culture helps to account forvariations among organisations and managers, both nationally andinternationally. Culture helps to explain why different groups ofpeople perceive things in their own way and perform thingsdifferently from other groups. Culture can help reduce complexity

11 South Africa's self-style epithet of the 'Rainbow Nation' is accurate anduseful to bear in mind. Although all South Africans share a love of their country, within the one country there are a number of diverse and distinct sub-cultures. All South Africans are acutely aware of the ethnic and racialdivisions and these divisions can make it difficult to build teams which cross these boundaries.

Page39


and uncertainty. It provides a consistency in outlook and values andmakes possible the process of decision-making, co-ordination andcontrol. .There is nothing accidental about cultural strengths.Considering this it is safe to assume that there is a relationshipbetween an organisation’s culture and its performance.

The core values reflect the basic principles that guide theorganisation’s interactions with every stakeholder of theorganisation. They also establish the boundaries of behaviour forall associates of the culture or sub-culture. Highly effectiveorganisations share a common quality that sustains their success andsets them apart as great places to work. They all have a strong setof deeply imbedded and broadly held core values.

Positive values allow us to identify with an organisation. They tellus where we stand in relation to the goals of the organisation andempower us to ensure the credibility of the organisation in the eyesof customers. Values espoused or not, exist in every organisation.

Values establish the foundation of the culture. Until OD consultantsdecide what those values are, and how they will interact with eachother, it’s very difficult to do anything else, such as settinggoals, establishing measurements, solving problems or even makingdecisions effectively. Societal values respect open communication,in the same way organisational values determine whether people workin an open and trusting environment where opinions are valued, or inan environment that is tainted by suspicion and tension.

AN UNDERSTANDING OF CULTURE CAN ASSIST AN OD CONSULTANTFACILITATE CHANGE IN AN ORGANISATION

The importance of corporate culture is emphasized by Peters andWaterman (1999:808), who state that without exception, the dominanceand coherence of culture proved to be an essential quality of theexcellent companies. Moreover the stronger the culture, the more itwas directed to the marketplace, the less need was there for policymanuals, organisation charts, detailed procedures or rules. In thesecompanies, people way down the line know what they are supposed todo in most situations because the handful of guiding values iscrystal clear.

Cummings and Worley acknowledge the importance of understanding thecultural context when considering OD interventions. This includesculture on a national, regional, tribal, religious and ethnic

Page40


dimension. Interventions in one area may not be appropriate in adifferent area.

Organisational culture is pervasive and powerful. For business, it is either a force for change or a definite barrier to it. Thereforethere is the need for an OD consultant to understand this culture toeffectively facilitate change in an organisation.

Organisational culture has assumed considerable importance in the21st century, because of its impact on employee performance and jobsatisfaction. Considering that the culture of an organisation hasan important impact on its performance, it is the imperative for theOD consultant to understand it so that they can capitalise on theinsights generated by the cultural perspective to wield greatercontrol over the organisation.

This cultural context must be considered in terms of definingappropriate roles for OD consultants, as they must consider thedegree to which the culture requires or permits partnership statusfor stakeholders, the political culture and its accommodation forpower or authority and the value system by which interventions willbe judged.

Understanding organisational culture from the perspective of systemsthinking and evolutionary theory can enable OD consultants to guidetheir clients toward cultural evolution within the organisation.

For OD consultants to maintain human development as a keyorganisational strategy, they must understand the culture to balancefinancial viability with human and cultural well-being.

In line with Saiyadin’s (2003:258)12 explanation, my opinion is thatan OD consultant who understands culture may effectively performtheir functions effectively such as through an understanding ofculture the OD consultant can facilitate induction andsocialization. Effective induction ensures new entrants to anorganisation are socialized and indoctrinated in the expectations ofthe organisation through its cultural norms and undefined conduct.The newcomer imbibes the culture of the organisation, which mayinvolve changing their attitudes and beliefs to achieving aninternalised commitment to the organisation.

12 Saiyadin (2003:258) explains that culture supplements rational management. The creation of work culture is a time-consuming process and therefore, organization culture cannot suddenly change the behaviour of people in an organization.

Page41


The OD consultant through effective intervention, may promote theorganisation’s code of conduct. A strong culture in an organisationexplicitly communicates modes of behaviour so that people areconscious that certain behaviours are expected and others wouldnever be visible. The presence of a strong culture would be evidentwhere members share a set of beliefs, values, and assumptions whichwould influence their behaviour in an invisible way. Where culturehas been fully assimilated by people, they persistently indulge in atypical behaviour in a spontaneous way. Promotion of the culture ofquality can help achieve good business results.

Through an understanding of sub-cultures, the OD consultant maycontribute to organisational diversity. Sub-cultures, and sub-systems of values and assumptions, which may be based ondepartmentalisation, activity centres, or geographical locationsprovide meaning to the interests of localized and specific groups ofpeople within the macro organisation. Sub-cultures can affect theorganisation in many ways. They may perpetuate and strengthen theexisting culture, promote something very different from thoseexisting, they may promote a totally opposite sub-culture (beliefsand values) or counter culture when in a difficult situation.

National boundaries are often inappropriately used as surrogatedefinitions of culture. However, the ‘nominal’ and impoverished useof culture in this sense stems from a lack of a theoreticalframework for investigating culture at a broader level. It is commonto use Hofstede’s (1980) work to describe cultural variation basedon national differences. He identified (based on data from over116,000 employees of IBM across 40 countries) four culturaldimensions: power distance (the degree to which members accept anunequal distribution of power); avoidance of uncertainty (the degreeto which members are able to cope with ambiguous or anxiety-provoking situations); individualism–collectivism (an emphasis onstriving and initiative versus belonging and following) andmasculinity–femininity (the relative extent to which members valuetraits conventionally associated with masculinity and femininity).Some multi-national corporations like IBM have responded to thediversity issue by seeking to create a homogenous and unifyingculture transcending national boundaries. Other organisations allowcultural differences to flourish, seeking only to exert financialregulation and control.

The story of British Airways is described as one of the most widelyused inspirational accounts of changing culture (Grugulis &

Page42


Wilkinson, 2002). British Airways brought together thousands ofpeople in the shape of a globe to create a compelling image for oneof its television commercials, and more recently imposed a giantmodel of Concorde on Times Square. According to BA, the company’snew identity was ‘based on what is believed to be the largestconsumer research exercise in the history of the travel industry’.It was introduced through ‘what is believed to be the world’slargest satellite corporate television broadcast’ using 13satellites, transmitting pictures from almost 25 different places to126 locations in 63 countries across five continents. According toCEO Bob Ayling, ‘Some people abroad saw the airline as staid,conservative and a little cold’ – characteristics used to describeBritain as a whole. ‘We need a corporate identity that will enableus to become not just a UK carrier but a global airline that isbased in Britain,’ said Ayling. ‘The identity we unveiled is that ofa global, caring company, more modern, more open, more cosmopolitan,but proud to be based in Britain.’ However, it is now well knownthat the whole enterprise was a big flop. (Grugulis & Wilkinson,2002).

Engineering culture change is becoming an increasingly popular (andlucrative) role for OD consultants. Whilst myriad obstacles tochange exist in a typical organisation, many writers have attemptedto provide the consultant with advice on how to achieve a successfulchange in a company’s culture. The OD consultant needs to understandculture to assume a perspective on culture as a measurable andmanageable aspect of an organisation.

The culture change literature also assumes a direct link betweenculture and performance, which is as yet merely a hypothesis ratherthan an established fact. Again, the OD consultant must understandthe culture so that these assumptions can be taken intoconsideration when reviewing ‘recipes’ for culture change.

Many companies have turned themselves around, converting imminentbankruptcy into prosperity. Some did it through financial gimmickry,but the ones who have become stars did it by changing their ownculture. Few remember that companies like British Airways or Volvoonce had a poor reputation. That’s a credit to their drastic changesin customer (and employee) satisfaction, quality, and profits and inmy opinion the use of an effective OD consultant (be he internal orexternal).

The underlying causes of many companies’ problems are not in thestructure, CEO, or staff; they are in the social structure and

Page43


culture. Because people working in different cultures act andperform differently, changing the culture can allow everyone toperform more effectively and constructively. This applies tocolleges and schools as much as it applies to businesses.

Cultural change is neither easy nor foolproof. It can take time,effort and vigilance. A great deal of patience and long-term supportis needed. Communication may be key, as small successes are used tosupport larger efforts. Sometimes, it is necessary to start changingsmall parts of an organisation first. The proponents of change mustcarefully model the behaviour they want to see in others. If they donot send a consistent message and keep that message clear anddominant over time, cultural change may be seen as just another fad.

Experts in organisational change assert that it is critical forconsultants to understand the culture of their client’sorganisation. They assert that successful organisational changeoften means successful change in the culture, as well. One of theapproaches that they might use to understand the nature oforganisations, and others with whom they work in the organisation,is to tactfully ask them about their biases on organisations, their“lens” through which they view organisations, the style they preferwhen working with others, and their preferred approach to problemsolving.

Ashforth (1985: 843) argues that the underlying assumption onculture is that it can be changed. Culture strongly influences thebehaviour of individuals and groups, i.e. how they perceive, thinkand act, and interventions that can alter the culture of anorganisation ultimately has the ability to change the behaviour ofindividuals and groups, and should therefore have the ability tochange performance and enhance effectiveness (Adler & Jelinek, 1986:82).

According to Burke (1994: 12) OD is “a planned process of change inan organisation’s culture through the utilization of behaviouralscience technologies, research, and theory “.

“Organisation development is a response to change, a complexeducational strategy intended to change beliefs, attitudes, values,and structures of organisations so that they can better adapt to newtechnologies, markets, and challenges, and the dizzying rate ofchange itself” (Bennis, 1969)

Page44


Warren Bennis’s (1969) and Bekhard’s definition positions OD asreactive to change, rather than proactive. Bennis also introducedthe concept that organisation culture is still core to ourunderstanding of OD today. Bennis used four words that are seentoday as key components of organisational culture: beliefs,attitudes, values, and structures.

It is important for the OD consultant to acquire an understanding ofthe employee’s and the organisations culture, so that the consultantcan accurately predict and manage the reactions of the employeesrelating to the change intended for the organisation. People whoshare the same culture do not have to be constantly aware of theimplications of their behaviour. This is because they can accuratelypredict the reaction of the people they react with. This view hasbeen supported in the work of Grobler et.al (2011).

If the OD consultant has an understanding of the cultures of theorganisation and the employees that make up the organisation theycan predict if the employees will be receptive or hostile to theplanned changes and processes desired for the organisation.Considering this, the OD consultant can effectively manage thechange process within the organisation.

According to Fagenson-Eland and Ensher, OD is now practiced in everyregion of the world as the global expansion of many organisationshas generated complex and rapid growth. Issues of global culturaldifferences are not new to the OD field. OD has its roots indiversity and globalization for more than 25 years.

Given the complexity and rapid growth brought about byglobalization, it has become even more important for OD consultantsto examine their assumptions, frameworks, and biases. ODconsultants have to understand the culture so that they may adjusttheir way of working to be effective in different cultures.

In global companies where there is an intersection of local culturesand company cultures, it creates added complexity for an ODconsultant. It may be difficult for the OD consultant tounderstand the meaning of the reactions and interactions around him,thus it is important for the OD consultant to understand both theculture of the company and the cultures of the employees, especiallyin countries like South Africa where there is great diversity.

Schein (1999: 110) suggests that organisational culture is even moreimportant today than it was in the past. Increased competition,

Page45


globalization, mergers, acquisitions, alliances and variousworkforce developments have created a greater need for co -ordination and integration across organisational units in order toimprove efficiency, quality, and speed of designing, manufacturingand delivering products and services, product and strategyinnovation, process innovation and the ability to successfullyintroduce new technologies and programmes, effective management ofdispersed work units and increase workforce diversity, crosscultural management of global enterprises and multi-nationalpartnerships, construction of net or hybrid cultures that mergeaspects of culture from what were distinct organisations prior to anacquisition or merger, management of workforce diversity; andfacilitation and support of teamwork.

Thus to implement change in line with the above, cultural valuesneed to be understood, respected and acknowledged if OD consultantsis to add value in cultures. Strength of OD has always been that itis values-based. Consultants must be sensitive to the culturalcontext they are working in while grounding their work in valuesthat can guide them to make honourable and ethical decisions thathelp create healthy organisations.

CONCLUSION

Organisational culture is the workplace environment formulated fromthe interaction of the employees in the workplace. It is defined byall of the life’s experiences, strengths, weaknesses, education andupbringing of employees. While executive leaders play a large rolein defining organisaional culture by their actions and leadership,all employees contribute to the organisational culture.

The interest in organisational culture was in part a response to thesuccess of Japanese organisations in fostering quality andexcellence. Influential works by Hofstede (1980) also highlightedthe impact of national cultures at a time of increasingglobalisation.

The organisational values are determined by the founder’s perceptionof his or her understanding of what is right, good or desirable forthe organisation. The organisation’s values therefore influence theorganisations culture, based on the fact that the founders of theorganisation tend to hire people with similar values as themselvesso as to maintain their organisation culture.

Page46


The personality and style of the OD consultant is as important ashis experience or expertise. The OD consultant must be a person whocan fit in with the corporate culture. An understanding of cultureassists the OD consultant to introduce change in a ‘cultural andbehavioural’ system which allows them to account for all activitiesthat arise from a particular action.

BIBLIOGRAPHY

Adler, N.J. & Jelinek, M. 1986. Is organisation culture “Culture Bound?”Human Resource Management, 25 (2): 73 – 90

Aswathappa, K. (2003). Organizational Behaviour. Bangalore: Publishing House.

Bradford, D. L., & Burke, W. W. (2005). Reinventing organisation developmentnew approaches to change in organisations. San Francisco, CA: John Wiley &Sons.

Cascio, W. F., & Aguinis, H. (2005). Applied Psychology in Human ResourceManagement (6th ed.). Upper Saddle River, New Jersey: Prentice Hall.

Chatman, J.A. and K.A. Jehn. Assessing the relationship between industrycharacteristics and organisational culture: How different can you be?.” Academy ofmanagement journal 37 (1994)

Conner, Daryl R. (1993). Managing at the Speed of Change: How ResilientManagers Succeed and Prosper Where Others Fail. New York: Villard Books.

Cook, S.D.N. & Yanow, D. 1993. Culture and organisational learning.Journal ofManagement Inquiry, 2: 373 – 390.

French, W.L. & Bell, C.H. Jnr. (1999) Organisation Development: behaviouralscience interventions for organisational improvement. 6th edition. New Jersey, NJ:Prentice Hall.

Hammer, Michael, and Champy, James. (1994). Reengineering the Corporation: AManifesto for Business Revolution. New York: HarperBusiness.

Hofstede, G. and G. J. Hofstede (2005). Cultures and organisation:Software of the mind,2nd edition. New York, McGraw-Hill.

Page47


Hunt, V. Daniel. (1996). Process Mapping: How to Reengineer Your BusinessProcesses. New York: Wiley.

Johns, Gary. (1996). Organisational Behaviour: Understanding and Managing Life atWork, 4th ed. New York: Harper-Collins.

Jones, B. B., & Brazzel, M. (2005). The NTL handbook of organisationdevelopment and change principles, practices, and perspectives. San Francisco, CA:Pfeiffer

Kotter, John P. (1996). Leading Change. Boston, MA: Harvard BusinessSchool Press.

Moerdyk, A. & van Aardt, C. (Eds.) (2003) Organisational Development: NewMethods and Models for Southern Africa. Glosderry, South Africa: New AfricaBooks. pp. 16, 17 & 58

Neilsen, E. (1984).Becoming an OD Practitioner. Englewood Cliffs,CA: Prentice Hall.

Robbins, S. P., Judge, T. A., Odendaal, A. & Roodt, G. (2009)Organisational Behaviour: Global and Southern African Perspectives. 2nd edition.Cape Town: Pearson Education South Africa.

Schein, Edgar H. (1999). The Corporate Culture Survival Guide: Sense and NonsenseAbout Culture Change. San Francisco: Jossey-Bass.

Schermerhorn, J.R. Jnr. (2004) Core Concepts of Management. Academy ofManagement Journal, 14(2). pp. 241 – 248.

Senge, Peter M. (1999). The Dance of Change: The Challenges of SustainingMomentum in Learning Organisations. New York: DoubledayWebsites

http:// www.odnetwork.org

http:investopedia.com/terms/o/organisational-behavior

http://www.skillsportal.co.za/page/human-resource/672069-Despondent-job-seekers-at-an-all-time-low

Page48

http://www.odnetwork.org/

Z Ismail 185506 MBA 5248D ODB 04072012

Documents

Transcript of Z Ismail 185506 MBA 5248D ODB 04072012