Organizational Development: Phases, Models, and Overcoming Resistance

Posted on Aug 30, 2024 in Social sciences

Organizational Development

Organizational Development (OD) is a systematic approach to improving and solving problems within a company. Implementing OD often requires changes to the organizational culture and administrative processes. An objective agent, either internal or external, is involved to assess areas for improvement and problem-solving.

Phases of Organizational Development

1. Contact

The process begins when a company seeks to implement OD with an external agent (consultant). Both parties, the manager and the consultant, assess the feasibility and rationale for the project. The consultant evaluates the necessary information, the level of trust for information sharing, the required time, and payment terms. The manager assesses their compatibility with the consultant, evaluates their expertise, and ultimately, a contract outlining the terms of their relationship is established.

2. Analysis of Documents and Interviews

Documents: The consultant analyzes information about the company’s history, including successes, failures, critical issues, and any documents that contribute to understanding the company’s mechanics. This includes examining internal documents like newsletters, magazines, employee communications, union agreements, and union requests to gain insights into the company’s operations and employee relations.

Interviews: The number of interviews conducted depends on the size and organizational structure of the company. The consultant gathers necessary information from both internal and external sources, utilizing different analytical models based on the data source.

3. Problem Detection

After analyzing internal and external data, the consultant presents the findings to company representatives. This initiates a feedback process where the results are discussed, and the consultant conducts further analysis based on the new information gathered. The consultant then formulates a proposal outlining the company’s situation. It’s important to note that this proposal identifies the problem, not the solution. The manager is responsible for finding the solution to the problem identified by the consultant, often with the consultant’s involvement, but the ultimate decision-maker is the manager.

4. Control

The manager evaluates the implementation of the solution to the identified problem. This is typically done without the consultant’s involvement to avoid creating dependency.

Diagnostic Models

1. Weisbord’s Six-Box Model (Internal Aspects)

This model focuses on six key factors: Purpose, Structure, Rewards, Supporting Mechanisms, Relationships, and Leadership.

  • Purpose: Clarity of goals (mission and objectives) and the degree of agreement on these objectives. All purposes should be aligned and non-contradictory. The mission should be defined in the general plan and long-term vision, allowing for potential adjustments if necessary.
  • Structure: Alignment between the purpose and the structure for achieving those purposes. This includes how work units are organized and the activities performed within the company. For example, routine activities suggest a rigid structure, while creative activities require a more flexible structure.
  • Relationships: Interactions between individuals, units, or departments performing different tasks, considering the nature and demands of their jobs. Conflict is more likely when there’s significant interaction between departments. Organizations with team-based structures prioritize individual relationships within teams, as each team handles specific activities.
  • Rewards: Alignment between the organization’s formal reward system and what employees perceive as rewarding or punishing. This assesses whether the stated rewards match the actual rewards provided.
  • Leadership: The extent to which leaders define and achieve organizational purposes. This includes their role in setting objectives, maintaining order amidst internal conflicts, and effectively fulfilling their leadership responsibilities.
  • Supporting Mechanisms: Mechanisms that help or hinder the achievement of organizational objectives. This includes processes like planning, monitoring, budgeting, and information systems.
    • Budget: How realistic and accurate the budget projections are.
    • Planning/Control: The type of control implemented and its timing. Reactive control (addressing errors after they occur) is more expensive than proactive control (preventing errors).
    • Information System: Provides timely and understandable information to support management decisions. The effectiveness of the information system can be assessed by its response times, timeliness, and clarity.

This model is useful when:

  1. The desired state is not clearly defined.
  2. The organization has a simple service delivery structure.
  3. The client is not accustomed to thinking in terms of systems.

2. Nadler and Tushman Congruence Model

This model views the organization as an open system with four key components:

  1. Inputs:
    • Environment: Direct and indirect influences.
    • Resources: Human, technological, financial, physical (infrastructure), and information.
    • History: Past experiences and events.
    • Strategies: Developed and evolving over time.
  2. Outputs:
    • System Operation: Overall company performance, including financial performance (financial ratios), profitability, debt percentage, and sales percentage.
    • Group and Intergroup Behavior: The work environment and how it’s influenced by the type of work performed and how employees are organized.
    • Individual Behavior: Characteristics of employees beyond technical skills, such as their work pace, responsibility, creativity, and overall demeanor.
  3. Transformation Process:
    • Task Component: The type of work performed in the company.
    • Individual Component: The knowledge and expertise of employees.
    • Informal Organization: Social connections, friendships, and informal groups based on shared interests or characteristics.
  4. Fit: Adaptation to organizational change.

Difficulties in Implementing Organizational Development

The biggest challenge in implementing OD is resistance to change. This resistance can be explicit or implicit, immediate or deferred.

  • Explicit and Immediate Resistance: Openly expressed displeasure, such as complaints, work delays, or strike threats. This type of resistance is easier to address as it’s readily apparent.
  • Implicit and Deferred Resistance: More subtle and difficult to address, manifesting as decreased loyalty, loss of motivation, increased errors, and higher absenteeism. This resistance can surface weeks, months, or even years later, often accumulating and resulting in a disproportionate response.

Sources of Resistance:

  • Individual Resistance:
    • Habit
    • Economic Security
    • Fear of the Unknown
  • Organizational Resistance:
    • Structural Inertia
    • Limited Focus on Change
    • Threat to Power Relations
    • Threat to Resource Allocation

Overcoming Resistance to Change:

  • Education and Communication
  • Participation
  • Facilitation and Support
  • Negotiation (Incentives)
  • Handling (Addressing Concerns)