‫المملكة العربية السعودية‬ ‫وزارة التعليم‬ ‫الجامعة السعودية اإللكترونية‬ Kingdom of Saudi Arabia Ministry of Education Saudi Electronic University College of Administrative and Financial Sciences Assignment 1 Organization Design and Development (MGT 404) Due Date: 01/03/2024 @ 23:59 Course Name: Student’s Name: Course Code: MGT404 Student’s ID Number: Semester: Second CRN: Academic Year:2024-25-2nd For Instructor’s Use only Instructor’s Name: Students’ Grade: Marks Obtained/Out of 10 Level of Marks: High/Middle/Low General Instructions – PLEASE READ THEM CAREFULLY • • • • • • • • Restricted - ‫مقيد‬ The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. Assignments submitted through email will not be accepted. Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page. Students must mention question number clearly in their answer. Late submission will NOT be accepted. Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). Submissions without this cover page will NOT be accepted. Learning Outcomes: 1. Describe the basic steps of the organizational development process. 2. Evaluate the strategic role of change in the organization and its impact on organizational performance. Assignment Question(s): Please refer to the case study titled “Planned Change at The San Diego County Regional Airport Authority” given on Page number 31, Chapter 2 in your textbook and answer the following questions: 1. Discuss the key success factors that played a major role in accomplishing the task in your opinion. (3 marks) 2. Discuss the impact of the change on the overall performance of the Airport. (2 marks) 3. Discuss the main challenges faced by the transition team during the planning and implementation phases. (2 marks) 4. Critically evaluate the change process and if you were the consultant what would you have done differently? (3 marks) Note: • • Restricted - ‫مقيد‬ You must include at least 5 references. Format your references using APA style. Answers 1. Answer2. Answer3. Answer- Restricted - ‫مقيد‬ application 2 1 CHAPTER 2 THE NATURE OF PLANNED CHANGE PLANNED CHANGE AT THE SAN DIEGO COUNTY REGIONAL AIRPORT AUTHORITY T he San Diego County Regional Airport Authority (SDCRAA) was created by a California state law in October 2001; this gave it the responsibility to establish and operate airports within San Diego County. Most importantly, from Thella Bowens’s perspective, the law required the San Diego Unified Port District (Port of San Diego) to transfer operation of San Diego’s international airport to the SDCRAA by January 2003. Bowens was the current senior director of the Aviation Division within the Port of San Diego that was responsible for operating the San Diego International Airport. When the law was passed, she was named Interim Executive Director of the SDCRAA, and assigned an interim advisory board to help manage the transition. Bowens’s tenure with the organization gave her an important understanding of the organization’s operations and its history. For example, the San Diego International Airport accounted for about $4.3 billion or roughly 4% of San Diego’s regional economy. Forecasts called for air travel to more than double to 35 million passengers by 2030, and contribute up to $8 billion to the regional economy. In addition, Bowens had participated in the Aviation Division’s strategic planning process in 2001. She was well positioned to lead this effort. As she thought about managing the startup of the SDCRAA, two broad but interdependent categories of initial activity emerged: developing the transition plan and dealing with the legal and regulatory issues. DEVELOPING THE TRANSITION PLAN In April 2002, Bowens took the senior team from the old Aviation Division to an off-site workshop to discuss the creation and management of an effective transition process. This group understood the importance of SDCRAA quickly becoming a stand-alone agency and the need to be seen differently in the marketplace. The group recommended revising the existing strategic plan, to hire staff to research, discuss, and create a transition plan, and to conduct retreats with employees from multiple organizational levels. In response, Bowens chartered the Airport Transition Team to ensure the smooth and seamless transfer of operations and public services provided by the airport without regard to which agency was responsible for their provision. In May 2002, seven employees were handpicked from the Aviation Division to become members of the Airport Transition Team and relieved of their day-to-day job responsibilities so they could focus on the transition. The selection criteria included the ability to work within a process yet think outside of the box, to communicate well with others in a team, and to influence directors and managers without having formal authority. A one-and-a-half-day kick-off meeting was held to set expectations, to communicate goals and responsibilities, and to initiate the team. A “war room” was established for the team to keep records, hold meetings, and serve as a communication hub. The team named themselves the “Metamorphs.” Many Metamorph members came from different parts of the organization and, having never worked together, needed to rely on each other to effectively design the transition process. Senior team member Angela Shafer-Payne, then director of Airport Business and Administration, worked closely with the Metamorphs and led formal team-building activities throughout the year. Through their work together, the Metamorphs discovered how large and daunting the organizational change was and yet appreciated the unique, once-in-a-lifetime opportunity to make an impact. As one member put it, “How many times in your life can you say that you helped put together a brand-new organization?” The Metamorphs decided that to meet their charter, any transition plan had to be designed specifically to minimize disruption to customers and service, minimize airport and nonairport financial impacts, and properly address and resolve all legal and regulatory matters. These 31 32 PART 1 OVERVIEW OF ORGANIZATION DEVELOPMENT criteria guided the creation of 12 functional teams (which expanded later to 19). Responsibility for the teams was divided among the transition team members, and each team was composed of employees from the old Aviation Division and other Port of San Diego departments. Their mission was to collect data, establish new or parallel functions for the SDCRAA, and highlight any issues related to the start-up of that particular function. Once the teams were in place, they were given tools to use and questions that needed to be addressed. Each team set aside time to review all of the records in each functional area. For example, the human resources functional team consisted of Aviation Division employees, HR professionals from the Port of San Diego, and Port attorneys; it was charged with developing the actual transition mechanism, HR operations, and HR organizational structure. Another team focused on the environmental issues involved in the transition. They examined over 100 different environmental permits held by the Port of San Diego to understand if SDCRAA needed a similar permit, needed to be a copermittee with the Port of San Diego, or if the SDCRAA could stand alone. If it were a stand-alone situation, then documentation would be prepared to transfer the permit. To ensure that no issues fell through the cracks, three distinct peer reviews were held in the summer and fall of 2002. The peer review panels were staffed by professionals within the aviation industry, people who had experienced a transition of some type within an organization, or those who were integral to the start-up of the organization. The first peer review panel examined the transition plan and offered advice on whether to add any other critical and/or missing components. The second peer review panel, consisting of mostly human resources professionals, examined the proposed organizational structure. The final peer review panel focused on the IT systems portion of the transition plan because of technology’s critical role in the overall success of many of the internal processes. DEALING WITH THE LEGAL AND REGULATORY ISSUES By January 2002, the SDCRAA was not yet a full agency and had only one employee, Thella Bowens. Despite all the work of the Metamorphs and the functional teams, and sometimes because of it, Bowens also had to interface with the California legislature. The original legislation (California Senate Bill AB93 [2001–2002]) provided a framework for setting up the new agency but left many questions unanswered, including issues relating to property transfer (SDCRAA would lease land from the Port on a 66-year lease) and the transitioning of employees from one public agency to another. To provide clarity and another layer of understanding, “clean-up” legislation (SB 1896) was passed in mid-2002. Together with the original bill, the legislation protected employees to ensure no loss of jobs or benefits. This gave the Metamorphs additional information and guidance to deal with employee contract issues. For example, in the middle of the transition planning process, the Port District had to renegotiate its union contract. The Metamorphs had to work closely with the airport’s external counsel, the Port of San Diego counsel, and state senators to ensure a smooth negotiation. Finally, Bowens and the Metamorphs had to address changes to federal security regulations outlined in the Aviation and Transportation Security Act that resulted from the September 11, 2001, attacks. Those events caused a number of disruptions for many stakeholders in the air transportation industry. They required the transition plan to include a component that focused on keeping costs contained to enable aviation partners, the airlines, the gate gourmets, and tenants, to weather the storm. IMPLEMENTATION AND EVALUATION The final transition plan was presented to the interim board and then to the Board of Port Commissioners for approval in October 2002. The approved plan was comprised of several components, including an IT conversion plan and the process for formally transferring responsibility to the SDCRAA, but the key elements were human resources and communication plans. The human resources plan specified the transition of 145 budgeted Aviation Division employees to 52 vacancies plus the 90 other positions identified by the Metamorphs to make the organization whole. The plan called for all of the positions to be filled by mid-2005. The human resources plan also provided for the purchase of services, like the Harbor Police, from the Port of San Diego until mid-2005. CHAPTER 2 THE NATURE OF PLANNED CHANGE The communication plan was critical to the implementation phase. The Metamorphs regularly carried information about their progress to coworkers in their respective departments. In addition, communication meetings with the entire organization, called “all hands meetings,” were held to provide information about the transition. The Airport Transition Plan contained a special emphasis on the needs of the employee. Bowens understood the sociotechnical nature of change and did not want the human factor to be forgotten in the midst of all the legal, technical, and other transitions. She included a number of changemanagement education sessions for all employees. The change-management education sessions were developed to reassure employees; to encourage genuine, candid, frequent, high-quality communications; and to neutralize anxiety and fears. During the sessions, employees were (1) updated on the progress of the transition; (2) introduced to change theories, models, and concepts; and (3) encouraged to share their issues, fears, anxieties, concerns, and creative ideas. Employee input was organized into themes, then documented and communicated to Bowens and her direct reports. The leadership team was committed to answering questions and addressing concerns that emerged from the changemanagement sessions. Airport managers met regularly to select and answer questions for publication 33 in the organization newsletter or live communication at “all hands meetings.” In addition, the employee satisfaction survey was updated with questions to learn about transition concerns. Thella Bowens was named President and CEO of the SDCRAA on January 1, 2003. By June 2003, the SDCRAA had received awards based on superb customer service and outstanding levels of performance. The SDCRAA, based on all available metrics, is successfully operating San Diego’s international airport and serving over 15.2 million passengers on 620 daily flights in and out of the airport. Part of the success is due to the way the transition plan was developed. Because of the broad participation in its creation, many employees understood the plan. When issues arose, identifying the personnel to become part of an ad hoc problem-solving group already familiar with the topic was easy. “Ms. Bowens accomplished the extraordinary job of leading a successful transition of the airport from the Unified Port of San Diego to the Authority,” said Joseph W. Craver, Authority (SDCRAA) Chairman. “She is highly regarded and respected for both her breadth of knowledge of aviation management issues and her visionary leadership.” Thella Bowens added, “Fortunately, we’ve been supported by very dedicated professional employees who have exhibited great resolve and sheer hard work through the transition process, and continue to do so as we create a ‘world-class’ organization.” limited to the defined issues, although additional problems may be uncovered and may need to be addressed. Similarly, the change process tends to focus on those organizational systems having specific problems, and it generally terminates when the problems are resolved. Of course, the OD practitioner may contract to help solve additional problems. In recent years, OD has been increasingly concerned with fundamental change. As described in Chapter 1, the greater competitiveness and uncertainty of today’s environment have led a growing number of organizations to alter drastically the way in which they operate. In such situations, planned change is more complex, extensive, and long term than when applied to incremental change.30 Because fundamental change involves most features and levels of the organization, it is typically driven from the top, where corporate strategy and values are set. OD practitioners help senior executives create a vision of a desired future organization and energize movement in that direction. They also help them develop structures for managing the transition from the present to the 
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