Organisational development (OD) and organisational transformation (OT) are different approaches to change that can co-exist. OD is a structured, methodical approach that gains participation, while OT is a short-term, reactive approach. Both are needed as organizations must change quickly due to external factors, but also use OD's participative approach. Behavioural science is important in OD to understand human factors and implement change successfully. Practitioners must consider strategic, cultural, financial, and competitive factors when creating strategic change through OD or OT.
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Waddle Chapter Review Question Answers for Chapter 1.
Organisational development (OD) and organisational transformation (OT) are different approaches to change that can co-exist. OD is a structured, methodical approach that gains participation, while OT is a short-term, reactive approach. Both are needed as organizations must change quickly due to external factors, but also use OD's participative approach. Behavioural science is important in OD to understand human factors and implement change successfully. Practitioners must consider strategic, cultural, financial, and competitive factors when creating strategic change through OD or OT.
Organisational development (OD) and organisational transformation (OT) are different approaches to change that can co-exist. OD is a structured, methodical approach that gains participation, while OT is a short-term, reactive approach. Both are needed as organizations must change quickly due to external factors, but also use OD's participative approach. Behavioural science is important in OD to understand human factors and implement change successfully. Practitioners must consider strategic, cultural, financial, and competitive factors when creating strategic change through OD or OT.
1. Define organisation development and organisation transformation.
How are they different? Is it possible for these approaches to co-exist?
Why or why not? Organisational transformation (OT) is a short term or instantaneous approach to change whereas organisational development (OD) is a structured, methodical and mostly seamless approach to change. OD tends to gain the buy-in of the majority of the organisation through active consultation and participation. In my opinion, I believe that both these approaches can co-exist in a given organisation. Most organisations are not immune from external factors which may significantly influence the direction organisations take. To allow for prompt recovery or re-alignment of organisational objectives due to changing external factors the organisation must be ready to apply the OT approach to change. The key to applying OT is knowing when to stop and return to an OD approach. Constant management of the pendulum swing between OT and OD can assist in both these approaches coexisting in an organisation. 2. Organisation development attempts to help an organisation cope with various aspects of the organisation's environment. What are these aspects? Describe current examples of OD and explain its value to the organisation. Organisational development applies behavioural science methodologies to assist with change. This change can be caused due to bother external and internal environmental factors such as public perception, technological advances, leadership, culture, economic conditions to name a few. Coca-Cola can be used as a good recent example of OD. OD is currently ongoing at Coca-Cola. A recent article featuring the President of Coca-Cola North America in the Bloomberg Businessweek states that the company is in the process of tackling the decline in global soda sales. He addresses the cultural change undergone by the American population to healthier beverage options. To address this shift in the environment, Coca-Cola is investing a significant portion of its resources to diversification and a significant shift to addressing the portion size of its products. Without this long term OD approach, the decline in soda sales could affect the future of the company. 3. What role does behavioural science play in OD? Is it an important element of OD? OD utilises the human element as a key factor to successfully implement change. Each interaction in an organisation is different due to the human component. Understanding behavioural science can assist in how each situation can be approached and hence, increase the chance of successful OD. 4 The metaphor of a pendulum for change has been used to describe the constantly changing demands for change. List examples of each spectrum (extreme) of the pendulum. OT is change that is reactive, unplanned and usually forced upon. As the text book suggests, it does have a pendulum effect, whereby the change initiated utilising the OT method can eventually transform into OD. A good example of OT is the Pathway to Change program within Defence. This program was initiated as
an initial reaction to the Skype incident at the Australian Defence Force
Academy. Defence adapted to meet the expectations of the Australian public by initiating this review. This initial reaction and the follow on immediate action taken by Defence can be determined to be OT. Few years post the initial review, the Pathways to Change program is heavily embedded in most aspects of Defence. Continuous consultation occurs at all levels to determine if the change is being implemented appropriately and policies are being updated to better address the Culture within Defence. This change is now moving toward an OD model. 5 It has been stated that if you change any one of strategy, structure or process in a change implementation, this has an impact on the other components. Provide an example of how this can occur. Change management in an organisation is expected to be a holistic approach. Each section or department is involved and is working together to achieve the organisations goals. The coordination of the change should be based on an agreed plan or process. Deviating from the agreed change implementation process can impact on other sections. 6 Likerts participative management (System 4) suggests that organisations have one of four types of management systems. Provide examples from your own experience of each system. Explosive Authoritative: Benevolent Authoritative: you can see this approach in a lot of small businesses. An example could be the relationship between a restaurant owner and their employees Consultative Systems: the modern day ADF can be used as an example of this. The Maintenance Productivity Improvement Plan can be a prime example of this approach. Continuous consultation is occurring with technicians in the cold face to determine what changes need to be implemented to improve maintenance efficiency. The overall decision to implement change still remains with management. Participative: New start-up companies are a good example of this approach. Collaborative thinking is used heavily when developing the company or implementing improvements and change. This fosters a level of ownership within the whole team. 7 With what functional considerations do practitioners need to be familiar if they are to create strategic change? Strategic change often has been confused with organisational transformation why has that been the case? Practitioners need to understand the all the internal and external factors that affect the organisation. For example, an understanding of the organisations internal culture can help identify how the overall strategy can be implemented. Customer base, financial outlook of the industry, competition can be other facets. Strategic change looks at change in the long term and is aligned with OD
where organisational transformation many not necessarily allow enough time to
consider all aspects which gets taken into consideration during strategic change. 8 Why should one study OD? What are the major contributions OD can bring to an organisation? OD takes into account the human factor. Currently humans are a key enabler for organisations to successfully function. OD can use the human factor to achieve the overall strategic goals with minimal disruption to the workforce.