Organisational Development Assignment

I POL POYTECHNIC OF NAMIBIA Harold Pupkewitz Graduate School of Business ASSIGNMENT COVER SHEET ————————————————- HP-GSB STAMP Assignments must be submitted in hard copy to:- The Secretary HP-GSB Reception Tel 061 207-2850 Date Received: †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Time Received: †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. ————————————————- I declare that this assignment is our own work. I further declare that where material has been used from other sources, whether by paraphrasing or by direct quotation, it has been fully acknowledged and referenced.I have retained a copy of this assignment for my records. ————————————————- Student’s Signature†¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦ (Signed below) †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Date: 28 September 2012 SURNAME &| Mr. Anton Scheun | †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ | FIRST NAME:| | | STUDENT NUMBER:| | | COURSE TITLE:| Masters in Leadership and Change Management| | MODULE TITLE| ODOrganisational Development| | MODULE FACILITATOR:| Dr. S. Pillay| | ASSIGNMENT DUE DATE:| 10 October 2012| | This is to certify that the assignment is the work of the student, Mr A. Scheun and where sources were consulted; reference was made to them under he reference table. ii Mr. ANTON SCHEUN 9328548 ORGANISATIONAL DEVELOPMENT ASSIGNMENT iii EXECUTIVE SUMMARY 1. Learning Organisation A Learning Organisation is organisations or enterprises that continuously needs to learn and renew themselves. This indeed has many advantages for both the individual and organisation in that continuous transferring of knowledge and changing of behaviours takes place. The best way to implement such intervention, to become a learning or ganisation, is to link it to the Strategic, Tactical, Operational and Individual Plans of staff members in the organisation.This will ensure integration and everyone contributing to the achievement of the goals and objectives of the enterprise. By so doing, members and the organisation become learning organisations, because this create dialogue, debate, problem solving skills, communication, buy-in and a win-win combination to all parties. 2. Performance Management System The purpose of Performance Management systems for organisations is to measure the achievement and performance of both individuals and the organisation as a whole. The PSN has already implemented a PMS at Offices, Ministries, Agencies and Regional Councils.A Performance Management System can only â€Å"survive† if all staff members are committed, trained and have the culture to effectively implement such a system. The advantages are enormous of which individual as well as organisational goals are met at the e nd of the day. The effective implementation of a PMS for the OPM will indeed contribute to effective and efficient customer needs and satisfaction levels. 3. Total Quality Management Total Quality Management is an area which has been neglected in the past by the Public Service of Namibia (PSN).As an example, all secretaries, institutional workers, drivers and courier’s individual performance plans are integrated and aligned to the Strategic Plan of the OPM for the support and attainment of corporate functions. 2. 2. 4 Team Learning; Team learning involves relevant thinking skills that enable groups of people to develop intelligence and an ability that is greater than the sum of individual members’ talents. As an example, team meetings are conducted during Annual Management Strategic formulation and development sessions by all team unit members.This indeed creates team learning, because all ideas, inputs and strategies being formulated are considered and the best are in corporated in respective plans. By so doing, all team members are buy-in and all sub-units contribute to the achievement of the overall goal and objectives of the OPM. 2. 2. 5 Systems Thinking: Systems thinking involve a way of thinking about, and a language for describing and understanding forces and interrelationships that shape the behaviour of systems.It helps managers and employees alike to see how to change systems more effectively and to act more in tune with the larger processes of the natural and economic world. For example, all unit members of the OPM were involved with the formulation and /or review of their business re-engineering processes. These business processes, such as the recruitment process, were amended to consider and improve time, manpower needs, costs and approval authorities in order to improve, integrate and streamline such processes to the betterment of the OPM.Through this process, policies, structure and budgets were identified for further amendment and alignment to the organisations systems and strategic plans. System thinking also involves the identification of appropriate systems that should be upgraded, such as an appropriate Human Resources Information Management System in order to accommodate personal particulars, performance appraisals, rewards and salary increments to mention a few. 4 3. The under-mentioned interventions are recommended for the Permanent Secretary (PS) of the Office of the Prime Minister (OPM): 3. That the OPM’s Strategic Plan be amended to incorporate a goal: â€Å"Creating a Learning Organisation by 2015†, and objectives with strategies or initiatives, as spelled out below, be included. 3. 2 That the following strategies/interventions be considered: (a) That all management cadre and managers/supervisors be included in the review of the Annual Management Plan of the OPM on a yearly basis. This will allow for buy-in, developing of intellectual stimulating, argumentation and strategy formulatio n for the respective tactical, operational and individual plans of the units. b) That the same team retreat to review, amend and/or formulate all business re-engineering processes of the OPM. This will allow for team building, building a sense of commitment system thinking and creating mental models based on reflecting of where the units are and where they want to be in terms of business processes. (c) That a Training needs assessment be conducted by the training components in order to identify competency, skills and behavioural deficiencies. This will enable the OPM to identify and ectify these deficiencies and also to build capacity in the OPM and Public Service of Namibia. (PSN) (d) That staff members be identified and trained as mentors and coaches to affect mentorship programmes in the OPM and to become coaches in their respective units. This will enable transfer of knowledge, skills and change in behaviours of staff. Further that mentors and coaching will contribute to persona l mastery of individual needs and objectives with OPM’s objectives. e) That units should developed in-service –training programmes in areas of identified deficiencies, such as policy formulation, disciplinary procedures, recruitment and placement, etc. This will contribute to capacity building and attention to day-to-day deficiencies in the work place. It will allow for cross cultural and unit team building and problem solving issues. (f) That the training budget be utilised to accommodate for short courses and leadership/ management development for individuals, teams and the broader organisation.This will indeed contribute a link between individual and organisational goal achievement, capacity building, inputs, innovation and team learning. (g) That as part of career development, managers be transferred, every five years to new posts. Further, that job rotation and job enlargement is implemented in job descriptions to stretch the work and employee capacities for devel opment of prospective staff members to higher posts as part of the succession plan of the OPM. 5 (h) That a Bursary Scheme be created to allow staff members to study in identified fields where capacity is needed in the OPM.This will assist the OPM in skills shortages and to develop capacity of staff and the organisation. (i) That focus groups, tasks teams and committees be created as a stimulus for ideas, problem solving, creating of new innovations in the fields of disaster management, employment creation and measures to retention staff members at the OPM. (j) That a more generative learning approach be adopted by the OPM, whereby staff has the opportunity to take risks, make mistakes, reflect on their decisions they had taken and change their behaviours accordingly. 3. 3. Conclusion:The OPM, as well as any organisation are facing constant challenges in the creation of themselves to become a learning organisation. The creation of a learning organisation is not a short term strategy and cannot be done overnight, but should rather be long-termed focused and be part of any strategic plan of a given enterprise. In its guest to become a learning organisation, the Public Service of Namibia and the OPM are facing the problem to be used as a springboard to obtain relevant experience and qualifications, where after staff members resign to look for greener pastures.The organisational interventions that were recommended will definitely assist the OPM to become a more effective learning organisation in the near future. 1. 2 Performance Management 1. 2. 1 The following definitions are postulated: (a) Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organization†. (www. humanresources. about. com ,cited 6/10/2012) b) Performance means:† the act or process of performing or carrying out†. (Oxford Dictionary, page 885) (c) â€Å"An assessment of an employee, process, equipment or other factor to gauge progress toward predetermined goals† (www. businessdictionary. com,cited 6/10/2012) (d) The students own definition is: â€Å"Performance management is a management system, used by managers, to appraise employees with relation to goal achievement, corrective measures to be implemented and identifying future knowledge, skills and behaviours to improve performance of people†. 6 1. 2. What are the challenges with regard to a Performance Management System (PMS)? The challenges are: (a) Line managers are not always totally committed to the implementation processes of the PMS. (b) It requires total commitment from top management, management cadres, line managers, supervisors, performance champions and staff members. (c) It requires a mind shift to a new performance culture. (d) It is an integrated approac h that links to Directives, Rules, and Regulations.(e) It identifies and needs coaching, mentoring, training and in-service training programmes. f) It provides for an integrated budget approach. (g) Performance champions and drivers should be identified and trained. (h) PMDS Moderating Committees should be established to monitor, evaluate and provide corrective actions. (i) It is time consuming to conduct performance appraisals and keep records of performance and behaviours of employees. (j) It should be benchmark with other organisations to effect total quality management and to keep abreast with latest developments and performance management computerized systems. 1. 2. What are the benefits of a Performance Management System? The benefits are: (a) To generate information that supports other human resources activities, i. e. recruitment and selection, rewards and special treatment, disciplinary and grievances,HIV/AIDS and wellbeing, bursary, training and development to mention a fe w. (b) It serves as a two way communication channel between line managers and staff members through which clarity is obtained regarding the achievement of goals and objectives and what each party expects from the other. 7 c) It helps to clarify job descriptions, organisational goals and objectives. (d) It is a long term (continuous) process in which performance improves over time. (e) It relies on consensus and cooperation between employer and employee, rather than control or coercion. (f) It requires a management style which is open and honest and encourages two-way communication and constant feedback on level of staff members’ performances. (g) It assists managers and staff members to measure and assess performance against jointly agreed objectives, standards and key performance indicators. h) It contributes to organisational learning, organisational renewal and total quality management and to the achievement of Vision 2030 of Namibia. 1. 2. 4 The under-mentioned interventi ons are recommended for the Permanent Secretary (PS) of the OPM: (a) The PSN should establish and operationalized a PMS, based on the Balance Score card approach of Dr’s Kaplan and Norton. To do this, a PMS Policy framework and guiding manual for staff members should be compiled and linked to the Public Service Act, Act No. 13 of 1995.(b) In order to roll-out the PMS, the following sub-interventions are needed: 1) Strategic Plans need to be developed and explained to all staff members in order to get buy-in and change mind sets of public servants. (2) Strategic Plans should be cascaded to tactical, operational and group/individual performance plans and performance contracts to legalise and create accountability for the achievement or non- achievement of organisational goals, objectives and activities. (3) Strategic Plans should be supplemented by structural changes, job analysis, manpower planning to effectively integrate PMS with other main and sub-systems of the PSN. 4) The PMS should be market through a vision, mission, values, communication and training strategy. To this performance champions should be identified, trained and use to train –the –trainer in Offices, Ministries, Agencies and Regional Councils (OMARC’s). Training interventions should be develop to train ministers, permanent secretaries and management cadres to obtain buy-in and commitment. (5) Different committees should be established to oversee the implementation, monitoring, evaluation, corrective action, appeal procedures and reward systems of the PSN.To this, a PMS Management Committee, a PMS Working Committee and a PMS Training and Champion Committee should be established to effect implementation with terms of references. 8 (6) In order for PMS to be effectively and efficiently implemented, it should be rolled-out as a project. To this J. P. Kotter’s Eight- Step model is recommended to implement the PMS as a change management initiative. (Robbins & Judge, 2011). Refer to Appendix: A- a presentation which was given by Group 2. (c) Performance Agreements or Packs should be compiled and sign-off between the supervisors and staff member. d) Job profiles or descriptions should be compiled and attached to performance agreements. These two elements display the incumbent position to what is required, whereby the performance agreement emphasized the goals and objectives that need to be achieved by the individual or group. (e) The Disciplinary Policy should be amended to cater for under performers and staff who fail to perform at all. (f) Rewards, both intrinsic and extrinsic should form part of the PMS Policy framework. (g) The appraisal procedure, assessment marks and template to enter performance data should form part of the PMS Operational Manual. h) Recognition to staff should be given, annually, on the 23 June of each year, to coincide with the celebration of Africa Public Service Day. (i) A budget vote should be given to OMARCâ⠂¬â„¢s to cater for financial expenses. (j) The appraisal of staff should be conducted on a quarterly basis. (k) OMARC’s should submit a performance report to the OPM on an annual basis as part of their Annual Report on their respective performances. 1. 2. 5. Conclusion: It is the opinion of the student that the OPM and any organisation should have a PMS system to track performances of people against those objectives in their performance contracts.The PMS system will not only contribute to performance per se, but will encourage open communication, feedback, problem solving issues which inter alia contribute to organisational learning and a system of total quality management. The effective implementation of a PMS for the OPM will indeed contribute to effective and efficient customer needs and satisfaction levels. 9 3. Total Quality Management 3. 1 Introduction: Total Quality Management (TQM) has started in the USA in the mid-1970’s. Philip Crosby, one of the founders of TQM claimed that over 90% of TQM initiatives failed.Studies in European countries found a failure rate of 70% or more. The reason for this is that managers experience problems how to manage the change process in implementing a total TQM system. (Burnes, 2009). TQM exceeds the product quality approach, involves all employees in the organisation and encompasses all functions, i. e. administration, communications, distribution, manufacturing, marketing, planning, training, etc. (www. businessdictionary. com ,cited 2012) 3. 2 The following definitions are postulated: a) TQM can be defined: â€Å"as an executive commitment to a management culture which fosters the improvement of quality of all activities and products via the prioritisation of quality plus companywide organisational development and training†. (Hill, 2011). (b) â€Å"Total Quality Management or TQM is an integrative philosophy of management for continuously improving the quality of products and processes†. ( www. wikipedia. com ,cited 2012) (c) â€Å"TQM is an improvement program which provides tools and techniques for continuous improvement based on facts and analysis; and if properly implemented, it avoids counterproductive organisational infighting†. www. acounting4management. com/total _quality management. htm, 2012). 3. 3 The meaning of Total QualityManagement: TQM has different meanings that include the following features: (a) The commitment and direct involvement of the highest-level executives in setting quality goals and policies, allocation of resources, and monitoring of results. (b) Realisation that transforming and organisation means fundamental changes in basic beliefs and practises and that this transformation is everyone’s job. (c) Building quality into products and practices right from the beginning. d) Understanding of the changing needs of the internal and external customers, stakeholders, and satisfying them in a cost effective manner. 10 (e) Institutin g leadership in place of mere supervision so that every individual performs in the best possible manner to improve quality and productivity, thereby reducing total cost. (f) Eliminating barriers between people and departments so that they work as teams to achieve common objectives. (g) Instituting flexible programs for training and education, and providing meaningful 3. 4 The advantages and disadvantages of Total Quality Management: .4. 1 The advantages are: (a) Lower costs. â€Å"TQM lower costs throughout the business infrastructure and organisation. Because it is an all-encompassing quality management programme, TQM helps different departments to communicate their needs, problems and desires with each other, so that workable solutions can be found that will help the organisation cut costs throughout the supply chain, distribution chain, shipping and receiving, accounting and management departments without losing productivity or the ability to operate rapidly in the face of chang e. (www. ehow. com ,cited 7/10/2012) (b) Improved Reputation. â€Å"TQM has the advantage of improving corporate as well as product reputations in the marketplace, because errors and defective products are discovered much more rapidly than other a non-TQM system, and often before they are ever sent to market or found in the hands of public†. (www. ehow. com ,cited 7/10/2012) (c) Higher employee morale. â€Å"Workers are motivated by extra responsibility, team work and involvement in decisions of TQM†. (www. ehow. om ,cited 7/10/2012) (d) Quality control inspectors. â€Å"Inspectors will ensure that the products and services meet the requirements and standards of the client and organisation, which indeed contribute to better service delivery†. 3. 4. 2 The disadvantages are: (a) Resistance to change. † Workers may feel that their jobs or occupations within the company are at risks under a comprehensive TQM program, and as a result, they may be slow or resist ant to making the necessary changes for the TQM to work properly.In addition, skilled workers may be lost as they decide to leave because of their unease at the direction that things are headed within the company, or they may not implement things properly, costing increase cost†. (www. ehow. com ,cited 7/10/2012) 11 (b) High cost of time. The high cost of implementing a TQM program, and the fact that it may take several years for the program to be fully implemented before results and benefits are seen, can be a huge disadvantage to a TQM program, especially in today’s uncertain economic conditions.TQM should be considered a long-term investment†. (www. ehow. com ,cited 7/10/2012) (c) Resistant to change. Workers may be resistant to change and may feel less secure in their jobs†. (www. ehow. com ,cited 7/10/2012) 3. 5 The under-mentioned interventions are recommended for the Permanent Secretary (PS) of the OPM: The Total Quality Management System is highly re commended for the Public Service due to the following reasons: (a) The PSN needs an instrument which can measure products (i. e. annual reports, speeches, etc. and services(i. e. Health, identity cards, Namibian passports, birth and death certificates, vehicle fleet services, maintenance and fuel consumption, the return on investment of training ) to improve service delivery clients, customers and the public at large. (b) Total Quality Management will ensure the minimisation of wastage. (c) TQM will contribute to effective and efficient service delivery to internal and external clients, and especially to the Presidents Office, Prime Minister, and cabinet. d) TQM will ensure that the food donated to crisis areas, such as Katima Mulilo and Oshikoto Region, during the extreme rainy seasons as well as drought relief programmes, be monitored and/or not get rotten. (e)TQM will contribute to team building and cross functional interaction, problem solving and sound debate between Offices, M inistries, Agencies and Regional Councils (OMASRC’s). (f) It will ensure that product and services could be branded which in turn will have a positive impact on the OMASRC’s and government as a whole. g) It will create stimulus to team work, higher sensitivity levels, greater responsibilities and even empowerment of staff members in the execution of this specific function. It may also make staff members proud to see the end results of product and services in which they were directly involved in. (h) It will force the OPM to set standards and requirements for products and services which will eventually lead to the creation of Namibia’s own government brand, such as the SABS standards. (i) It will create further employment of specialist as inspectors that will not only be utilised for inspection of such products and services, but can also 2 be incorporated in a Department of Inspectorate for the Public Service of Namibia. Such a Department doesn’t exist and need serious consideration. (j) As with resistance to change, it’s recommended that Kotter’s eight step plan be followed, as indicated in Appendix: A. (k) That a vote is created and the Ministry of Finance be assigned to allocated funds for the implementation of TQM in the PSN. (l) That the OPM, Ministry of Defence, Ministry of Transport and Communications be used as pilot ministries in the first two years during roll-out of the project. 3. 6.Conclusion: The PSN and the government need a quality software system to evaluate its products and services. There is a public outcry that the PSN and Government should improve customer satisfaction by bringing their services to the public and that they should change. It’s the opinion of the student that TQM, as a management tool will provide for such a measurement in order to provide effective and efficient service delivery to clients, customers and stakeholders. TQM will significantly help to improve the standard and mea surement of performance management in the PSN. . Six Sigma: 4. 1 Introduction: The originator of the Six Sigma concept was Bill Smith in 1986. Quality improvement controls, such as TQM, were used to pioneer this concept. Six Sigma is the process of eliminating and perfect data entry. This concept is based on project methodologies used to strengthen performance levels, according to www. insigma. com. In 2006, Motorola issued a press release stating that they had $17 billion saved from Six Sigma†. (www. ehow. com ,cited 7/10/2012)4. 2 Definition: a) The project definition of TQM is defined as;† Six Sigma projects have clearly defined deliverables, are management approved, are not so big that they’re unmanageable and not so little that they’re unimportant or uninteresting, and relate directly to the organisation,s mission, according to www. isixsigma. com†. (www. ehow. com ,cited 7/10/2012) 13 4. 3 Advantages and disadvantages of six sigma: 4. 3. 1 The a dvantages are: (a) â€Å"The advantage is that Six Sigma is a quality standard that establishes a goal of no more than3. 4 defects per million units or procedures â€Å". b) â€Å"Six Sigma aims to maximize customer satisfaction and minimize defects†. (c) â€Å"Six Sigma is a tool that if used correctly, can identify key areas of business processes that need attention to lower effect rates. One of the greatest advantages is that all the measured improvements achieved through this technique can be directly converted into financial results†. (d) â€Å"Research proves that firms that successfully implement Six Sigma perform better in virtually every business category, including return on sales, return on investment, employment growth and stock value growth†.Source: (www. ehow. com , cited 7/10/2012). 4. 3. 1 The disadvantages are: (a) The eventual costs to implement Six Sigma are very high. To this, Becthel Corporation in the USA has spent USD 30 million to imple ment Six Sigma. (b) According to a quality expert, Joseph M. Duran, Six Sigma is described as â€Å"a basic version of quality improvement† stating that â€Å"there is nothing new there†¦they have adopted more flamboyant terms, like belts with different colors† Source: (Integrating Organisational Development and Six Sigma. Jeffrey, B. ) 4. Recommendations to the Permanent Secretary: (a) Six Sigma should not be implemented in the Public Service of Namibia in the short to medium term, but it should be considered whether the Namibia Defence Force can do research and conduct a feasibility study to determine the viability of Six Sigma for the PSN. Research indicated that the United States of America has introduced it in their Navy with success. Source: www. accounting4management. com, 2012). (b) The TQM intervention should be given first priority in OMASRC’s, before Six Sigma is considered in the PSN. c) It is further recommended that financial and manpower be a llocated to conduct such a feasibility study and that the Ministry of Finance release funds and a vote to source this research. 14 (d) The above should be carried out according to project management principles and procedures. (e) The feasibility study should be submitted, after presentation to the Permanent Secretaries meeting on 30 June 2013. During this meeting it can further be recommended whether Six Sigma should be introduced and be roll-out to the PSN. 4. 5 Conclusions:Although Six Sigma is widely used, especially in the USA and Europe, no evidence could be found that Namibia is using it currently. This may be, because it is not cost effective and/or there is not yet a market for it. It is strongly recommended that the NDF, especially the Navy should conduct a research and feasibility study to determine whether it is viable for Namibia and if the Defence Force may benefit in the long run. This report will indicate whether Six Sigma can be roll-out to the rest of the Public Ser vice of Namibia.REFERENCES Burnes, B. Managing Change. Fifth Edition. 2009. Pearson Education Limited. England. Nel, P. S. , Gerber, P. D. , Van Dyk, P. S. , Haasbroek, G. D. , Schultz, H. B. , Sono, T. , Werner, A. Human Resources Management. 5th Edition. 2011. Oxford University Press. Southern Africa. Hill, M. Study material on Managing People and Organisations. July 2011. Windhoek. Robbins, S. P. , & Judge, T. A. A. , Organisational Behavior. Global Edition. 2011. Prentice Hall. New Jersey. www. acounting4management. com/total quality management. htm, Definition and Explanation of the Concept of Total Quality Management System. Cited 7/10/2012. www. businessdictionary. om. Definition of Total Quality Management System. Cited 7/ 10/2012. www. businessdictionary. com . Cited 6/10/2012 www. ehow. com. Advantages and disadvantages of TQM. Cited 7/10/2012. www. humanresources. about. com. Cited 6/10/201 www. hrfolks. com. The Learning Organisation. Review- Rohan Nagwekar. Cited 1/ 10/2012. www. see. ed. ac. uk. Learning organisations. Cited 1/10/2012. www. wikipedia. com. Cited 6/10/2012. 15 APPENDIX Appendix: A- Leading change: Why transformational efforts fail. Presented by Group 2 of Masters in Leadership and Change Management, dated September 2012