A manual of organizational development psychology of change

A MANUAL OF ORGANIZATIONAL DEVELOPMENT The Psychology of Change CLARE HUFFINGTON CAROL COLE HALINA BRUNNING KARNAC BOOKS A MANUAL OF ORGANIZATIONAL DEVELOPMENT A M A N U A L OF ORGANIZATIONAL DEVELOPMENT The Psychology of Change Clare Huffington, Carol Cole, & Halina Brunning London KARNAC BOOKS Published in 1997 by H Karnac (Books) Ltd, 118 Finchley Road, London NW3 5HT Based on The Change Directory, published by The British Psychological Society, 1990 Copyright © 1997 by Clare Huffington, Carol Cole, and Halina Brunning All rights reserved The rights of Clare Huffington, Carol Cole, and Halina Brunning to be identified as authors of this work have been asserted in accordance with §§ 77 and 78 of the Copyright Design and Patents Act 1988 Illustrations by Kristof Bien All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher British Library Cataloging in Publication Data A C.I.P record for this book is available from the British Library ISBN: 978 85575 128 Edited, designed, and produced by Communication Crafts 10987654321 Printed in Great Britain by BPC Wheatons Ltd, Exeter ACKNOWLEDGEMENTS W e w o u l d like to acknowledge the m a n y authors and practi­ tioners i n the w o r l d of organizational behaviour on whose w o r k w e have d r a w n O u r material has been derived from a variety of sources and, whenever possible, these have been attributed H o w e v e r , it has not always been possible to trace the geneses of all our ideas W e w o u l d , therefore, like to take this opportunity to a c k n o w l ­ edge all those whose work, i n one form or another, has influenced or enriched our thinking a n d hence contributed to this m a n u a l CONTENTS ACKNOWLEDGEMENTS V ABOUT ix THE AUTHORS by Dr K i m James FOREWORD xi xiii INTRODUCTION Chapter The w o r l d of change and organizations Chapter Organizations and organization development Chapter Consulting to organizations 27 Chapter External and internal consultancy 43 Chapter The consultancy process Chapter Change management REFERENCES 49 73 83 APPENDIX Further reading 87 APPENDIX Resources 91 INDEX 95 vii ABOUT THE AUTHORS C L A R E H U F F I N G T O N M.Sc., P G C E , AFBPsS, C.Psychol A Chartered Psychologist w o r k i n g as a C o n ­ s u l t a n t to o r g a n i z a t i o n s i n the p u b l i c private sectors She is a Senior with the which human Tavistock specializes side particular of Consultancy in working organizational addressing and Consultant Service, with the change; psychological cesses b e n e a t h the s u r f a c e — i n i n d i v i d u a l s , i n g r o u p s , in pro­ and in t h e o r g a n i z a t i o n a s a w h o l e — w h i c h c a n get i n t h e w a y o f f u n d a ­ mental change Clare has developed sultants, and human consultancy resource t r a i n i n g for m a n a g e r s , professionals in a con­ variety of o r g a n i z a t i o n s S h e h a s w r i t t e n a n u m b e r of articles a n d six b o o k s o n c o n s u l t a n c y , organizational change, a n d related topics C A R O L C O L E M A H o n s , M.Sc., P h D , AFBPsS, C.Psychol A n independent consultant i n Organization Development w i t h extensive experience in the U n i t e d K i n g d o m a n d o v e r s e a s i n b o t h the p u b l i c a n d p r i v a t e sectors, i n c l u d i n g the health, oil, a n d communications industries C a r o l has w o r k e d as a C h a n g e Management C o n s u l t a n t w i t h the N a t i o n a l H e a l t h S e r v i c e a n d a s a n O r g a n i z a t i o n C o n s u l t a n t w i t h S h e l l I n t e r n a t i o n a l , for whom s h e c o n t i n u e s to c o n s u l t R e c e n t a s s i g n m e n t s h a v e in­ c l u d e d the i m p l e m e n t a t i o n of m a j o r c u l t u r a l changes, s t r u c t u r a l ix APPENDIX 2: RESOURCES Journals — Professional associations — Further training — Miscellaneous • JOURNALS Harvard Business Review H a r v a r d Business School Publishing Corporation, 60 H a r v a r d W a y , B o s t o n , M A , U S A Journal of Management Development M C B University Press L t d M a n a g e m e n t D e v e l o p m e n t Professionals, 62 Trailer L a n e , Bradford, West Yorkshire B D B Y tel ( + 4 ) ^ 7 - 0 Leadership & Organisational Development Journal M C B University Press L t d M a n a g e m e n t D e v e l o p m e n t Professionals, 62 Trailer L a n e , Bradford, West Yorkshire B D B Y tel (+44) - 7 - 0 Management VNV Consultancy Journal Business Publications V N V H o u s e , - B r o a d w i c k Street, L o n d o n S W A H G tel (+44) - - 0 Management, Education & Development U n i v e r s i t y of Lancaster Lancaster LA14YX t e l (+44) - Management Review American Management Association B o x 408, S a r a n a c L a k e , N Y 122983-0408, U S A 91 92 • APPENDIX PROFESSIONAL American Management AMA ASSOCIATIONS Association Headquarters 1601 B r o a d w a y , N e w Y o r k , N Y 10019-7420, U S A tel 2 - - fax 2 - - 8 A s s o c i a t i o n for M a n a g e m e n t Education and Development P r e m i e r H o u s e , 7 O x f o r d Street, L o n d o n W R R B tel (+44) ^ - 1 8 T h e British Psychological Society D i v i s i o n of O c c u p a t i o n a l Psychology St A n d r e w ' s H o u s e , 48 P r i n c e s s R o a d E a s t , Leicester L E I D R tel (+44) 1 - - T h e Industrial Society Carlton H o u s e Terrace, L o n d o n S W D G tel (+44) - - 0 I n s t i t u t e of T r a i n i n g a n d D e v e l o p m e n t IPD House C a m p Road, Wimbledon SW19 U N tel (+44) - - 0 NOWME N a t i o n a l O r g a n i s a t i o n for W o m e n ' s M a n a g e m e n t 12a W e s t b e r e R o a d , L o n d o n N W Education tel (+44) - - T h e O r g a n i z a t i o n D e v e l o p m e n t Institute 11234 W a l n u t R i d g e R o a d , C h e s t e r l a n d , O H 44026, U S A tel - ^ 3 fax 216-729-9319 93 RESOURCES • FURTHER TRAINING Ashridge Management College Berkhamsted, Hertfordshire, H P I N S tel (+44) 4 - 4 Brunei Institute of Organisation and Social Studies (BIOSS) H e a l t h Service Centre BIOSS, Brunei University, Uxbridge, Middlesex U B P H tel (+44) 01895-270-072 Cranfield School of Management C r a n f i e l d , B e d f o r d M K 43 O A L tel (+44) ^ 1 2 The Grubb Institute C l o u d e s l e y Street, L o n d o n N l O H U tel (+44) - - Innovation Associates Inc T h r e e S p e e n S t r e e t , S u i t e 140, F r a m i n g h a m , M A , U S A Kensington Consultation Centre W y r i l C o u r t , T r e n c h o l d Street, L o n d o n S W T G tel (+44) - - Kings Fund 11-13 C a v e n d i s h Square, L o n d o n W M O A N tel (+44) - - 0 The Open Business School The O p e n University P O B o x 222, M i l t o n K e y n e s M K Y Y tel (+44) - 4 Roffey Park Management College Forest R o a d , H o r s h a m , West Sussex R H T D tel ( + 4 ) - 4 94 APPENDIX Sloan School of Management 50 M e m o r i a l D r i v e , C a m b r i d g e , M A 02142, U S A Sundridge Park Management Centre Plaistow Lane, Bromley, Kent BR1 T P tel (+44) 0181-313131 T h e Tavistock Centre 120 B e l s i z e P a r k , L o n d o n N W B A tel (+44) - - 1 T h e Tavistock Institute of H u m a n Relations 30 T a b e r n a c l e Street, L o n d o n E C A D E tel (+44) - - • MISCELLANEOUS Aspire Consultants 299 E c c l e s h a l l R o a d , S h e f f i e l d S l l N X tel (+44) 0114 -268-081 fax (+44) 0114r -267-1267 I T S , International T r a i n i n g Services L t d T h e Beeches, 37 Parkfield, Coleshill B46 L D tel (+44) - 6 6 INDEX abilities, consultancy, 42 Adams, J D., 13 Basset, T.,46,53 Beckhard, R.,75 Bell,W H , 69 Brunning, H , 46,48,53,59 Burke, W W , 32,42,65 Campbell, D., 35 change: actively managing, agent, see consultant equation, 64 conditions for successful, 81 content of, 74-75 external, 12 management of, 73-82 assumptions for, 76-77 future, by client, 71 orientation, of organization development, 26 process of, 20 strategic options for, 74 successful, guidelines for, 78-82 Chell,E.,22,35 commitment, 80 consultancy: decisions for accepting request for, 52-55 definition of, 27 doctor-patient model of, 30 ending, 71-72 external and internal, 43-48 appropriate tasks for, 46 definitions of, 42 legitimate, conditions for, 38 process, 49-72 model of, 30-32 purchase/expert model of, 29 styles, continuum of, 28-32 unsanctioned, 37 consultant {passim): associated skills of, 33-34 as expert, 29 facilitative style of, 28 independence of, 38,39 internal vs: external, 37,43-48 legitimacy of, 37-38 legitimized, 51 personal ground rules for, 82 sources of, 40 contract, psychological, 58-59 contracting, 50-51,58-59,79 control, locus of, 13 creative thinking, 13 Cronen, V., 35 culture, of organization, xi, 20,21 data-gathering, 50-51,60-61 De Board, R., 35 development, self-managed, 18-19 diagnosis, 50-51,62-63 diagnostic orientation, of organization development, 24 Draper, R., 35 entry, to client/consultant relationship, 50-51,56-57 environment, assessment of, 74 changing, of healthy organization, 17 equilibrium, dynamic, 13 evaluation, of interventions, 50-51, 69-70 FabanJ., 34 feedback, 11,62 Fisch,R.,35 Fisher, D French, W\, 69 v Garratt, B.,4 95 96 Gleicher,D., 64 global changes, impact of, Hackmah, J R., Harris, R T., 75 Harrison, E G., 18,19 healthy organization, 14,15-17 Hirschhorn, L., 35 history, of organization, Huffington, C., 35,48,59 human resources, 21 professionals, xi, xiii innovators, change agent, 52-53 internal consultancy: vs external, 37 increasing relevance of, 45 internal consultants, challenges for, 47-48 intervention, 50-51,65-67 combined approaches to, 35 definition of, 65 interventions orientation, of organization development, 25 James, K., xi-xii Johnston, A V., 28 Kanter, R M , knowledge: base, 41-42 as basic economic resource, Kolb, D A., 18 Lawler, E E , 8,62 learning organization, 14,18-19 learning, cycle of, 19 self-managed, 20 Legge,K.,52 legitimacy, of consultant 37-38,51 life cycle, of organization, 65,68 management, international mobility of, manager, relationship of with consultant, xi-xii INDEX market-place, globalization of, marketing activities, 74 MacIntyre,J.M.,18 McCaughan,N.,35 mega-trends: impact of, world class, Miles, M., 22,23 Miller, E J., 35 Morgan, G., 5,35 Nadler, D., 8,12 Nielsen, E H., 52 Obholzer, A.,35 operational perspective, 13 organization (passim): core elements of, culture of, 10-11 definition of, developing, 19 dynamics of, 12-13 effective, 14 life-cycle of, 65,68 policies of, 21 purposeful, 15 size of, 12 and structure, 15 transitions of, organization development (passim): consulting, key stages in, 50-51 cube, classification of interventions, 23,65 definition of, 20-21 developing, 14 interventions, 22-26 objective of, 20 organizational/business orientation, 25 practitioner orientation of, 24 process orientation of, 26 research, 69 successful, factors associated with, 70 theoretical approaches to, 35-36 organizational wheel [ITS], 63 organizations: consulting to, 27-42 97 INDEX model of [Nadler & Tushman], 8-11, Schmidt, W H 63 Schmuck, R., 22,23 and organizational development, scouting, to assess possibility of 7-26 consultancy, 50-51,52-55 perceptions of, self-renewal, 18 in transition, 4-5 skills, of consultant, 41-42 and world of change, 1-5 Spencer, S., 13 staff, empowering, xii Palmer, B., 35 Stewart, V., 68 Pearce,W.B.,35 strategic intent, 74-75 planning, 50-51,64 strategic perspective, 13 Porter, L W., strategic plans, 21 strategy, 10 process of change, managing, xi-xii successful change efforts, conditions process consultancy roles, 33-34 process plan, developing, 79 for, 81 Swartz, D.,34 process, in healthy organization, 16 reactive thinking, 13 reality, in healthy organization, 16­ time perspective, organizational, 13 Torbert,W R.,4 17 training, 18 resources, transformation process, 8,10-11 improved utilization of, 20 in healthy organization, 16 Turrill,E, A., 8,64 Tushman, M L,, 8,12 Revans, R., Rice, A K 35 Vaughan,S.,24 Roberts, V., 35 Watzlawick, P., 35 Robertson, M J., 18,19 Weakland, J., 35 Rubin, I.H., 18 withdrawal, from consultancy relationship, 50-51,71-72 Schein, E H., 29 v v I A Manual of Organizational Development: The Psychology of Change by Clare Huffington, Carol Cole and Halina Brunning 'This manual is a major contribution to the field of organization development and applied behavioural science It will be a must for practitioners entering the field; teachersand students of organizational behaviour; organization, management and OD consultants I wish I'd written it." Richard Beckhard Professor of Management Sloan School of Management, MIT - retd Principal Richard Beckhard Assoc "This book is written in a down-to-earth style in a form that makes complex concepts accessible to managers, consultants and human resources professionals The text is alive with diagrams, tables and graphics so that the information is available at a glance The authors also know that many readers will be fascinated with this topic and want to follow it up; the end section provides a directory for further sources of information and assistance The authors are all experienced psychologists as well as consultants This puts them in an excellent position to provide the reader with a practical guide to the essentials of organizational change without avoiding the difficult issue of guiding people through the process of transition For those with responsibility for facilitating and actioning organizational change, this updated and expanded edition of their manual will provide an invaluable asset." Dr Kim James Senior Lecturer in Organizational Behaviour Cranfield School of Management, Cranfield University Karnac Books, 58, Gloucester Road, London SW7 4QY ISBN 85575 128 Cover Illustration by Kristof Bien Cover Design by Malcolm Smith .. .A MANUAL OF ORGANIZATIONAL DEVELOPMENT A M A N U A L OF ORGANIZATIONAL DEVELOPMENT The Psychology of Change Clare Huffington, Carol Cole, & Halina Brunning London KARNAC BOOKS Published... r e s e a r c h xiii CHAPTER THE WORLD OF CHANGE AND ORGANIZATIONS Global changes & mega-trends Organizations in transition MANUAL OF ORGANIZATIONAL DEVELOPMENT • GLOBAL CHANGES & MEGA-TRENDS... groups and teams achieving balance relative/contextual MANUAL OF ORGANIZATIONAL DEVELOPMENT • ORGANIZATIONS IN TRANSITION Those individuals a n d organizations a n d t h r i v e o n these m e g a