THE ORGANIZATIONAL DEVELOPMENT IN THE VUCA ERA: THE CONCEPTION, TECHNOLOGY, AND POTENTIAL

Author
, associate professor, Kharkiv, Pushinska, 77

In heading

 Economic theory;

Signed print

 20.11.2020

Issues number

 2020 - № 4 (43)

Page

 46-72

Type of articles

 Scientific article

Code UDK

 005.942:330.341.1

ISSN print

 2411-5584

Abstract

 Problem setting. The VUCA contemporary business environment requires organizations to adhere principles of flexibility and adaptiveness. This actualizes the research of the content and technologies of the organizational development (OD).
Analysis of recent research and publications. Problems of the OD are considered in numerous scientific papers. It is worth mentioning papers of І. Adizes, L. Greiner, J. Kotter, and A. Prigozhin.
Objective of the paper. The objective of the paper is to specify the content and tendencies of development of the OD conception in the context of the VUCA conditions and to reveal the potential of its system implementation.
Main findings. Organizational development (OD) is planned, managed, and evolutionary transformations of formed business systems for enhancing / maintaining the organizational efficiency. Organizational transformations of companies under the VUCA are permanent. Organizational flexibility is an ability of a business system to constantly
«self-configure» according to changes of the environment at the minimum managerial influence.
Scientists indicate structural (the organizational structure, business processes) and social (the organizational culture, employees) components of the OD. The OD conception is an alternative of reengineering. A methodological approach to managing the OD of business organizations under the VUCA is strategic; the VISION is a reference point for
drawing up programs and projects. A system of interventions planned in a specific sequence creates the OD program. The OD management model emphasizes the priority of a change in «mental models» of employees, forming their vision, and understanding the content of changes by employees. The compliance of the organizational structure with the OD aims is a compulsory precondition of success. Models for managing the VUCA-risks correspond to the context of the OD conception. However, the OD technologies require adaptations, taking into account contemporary changes in the business environment. With regard to key directions of changes, the OD trends in the context of the VUCA requirements may be divided into: flexible structures;
networks of dynamic teams; new requirements for competencies; ecosystem platform thinking and «live systems»; startup culture (the VUCA culture innovations). Technologies of the Agile-transformations integrate provisions of approaches such as the Lean start-up, Scrum, design thinking, and digital solutions on optimizing business processes.
Holacracy (self-organized teams) is the flexible structure, which enables to operatively perceive market signals, to frequently reveal and eliminate «stress points» and selforganizes; integrates the maximum number of the VUCA-trends. The successive implementation demands the formation of the VUCA organizational culture at a company
aimed at adaptive innovative behaviour. Implementing values of such culture, there is a need to take into consideration contradictions («paired» values) of the culture of innovations. Conclusions. The OD is a way for ensuring properties of an organization such as flexibility and adaptiveness for competition within a dynamic environment. There are the transformation of the OD conception according to the VUCA requirements and the formation of new managerial technologies and tools.
Short abstract for an article
Abstract. The author has formulated a problem of redefinition of the organizational development conception under the VUCA business environment. The author has specified the essence of organizational development (ОD), its components, principles, purposes. The article discloses the content of the strategic approach to managing organizational changes.
The article has demonstrated the adherence of the models for managing the VUCA risks to the OD conception. The author has determined contemporary trends and managerial technologies in the context of the VUCA requirements by the OD directions. The author has analysed a mechanism for functioning of holacracy as the organizational design, which maximally integrates all the trends. The author has indicated conditions for forming the VUCA culture of an organization.

Keywords

 organizational development, VUCA environment, flexibility, adaptiveness, organizational design, holacracy, culture of innovations, digitalization.

Reviewer

External reviewer

Article in PDF

 46-71

Bibliography

 1. Bud byistryim ili umri. Chto neset Chetvertaya industrialnaya revolyutsiya. (2019, October, 7). [Be fast or die. What the fourth industrial revolution brings]. Retrieved from https://www.epravda.com.ua/rus/projects/techiia/2019/10/7/651957/ [in Russian].
2. Adizes, I. (2014). Upravleniye zhiznennym tsiklom korporatsii [Corporate life cycle management]. Moskva: Mann, Ivanov, Ferber [in Russian].
3. Pichuhina, T. S., Tkachova, S. S., & Tkachenko, O. P. (2017). Upravlinnia zminamy [The change management]. Kharkiv: KhDUKhT [in Ukrainian].
4. Nestik, T. D. (2016). Materialyi po kursu «Organizatsionnoe razvitie i upravlenie izmeneniyami» [The Course materials: Organizational development and change management]. Moskva: RANHiGS. Retrieved from https://docplayer.ru/53925467‑Materialy-po-kursu-organizacionnoe-razvitie-i-upravlenie-izmeneniyami.
html [in Russian].
5. Prigozhin, A. I. (2003). Metody razvitiya organizatsiy [The organization development methods]. Moskva: MCFER. Retrieved from http://www.amac.md/Biblioteca/ data/26/03/Management/Prigojin. pdf [in Russian].
6. Kameron, K., & Kuinn, R. (2005). Diagnostika i izmerenie organizatsionnoy kulturyi [The organizational culture¥s diagnostics and management]. Sankt-Peterburg: Piter [in Russian].
7. Tsarenko, A. S. (2013). Upravlenie organizatsionnyimi izmeneniyami: razvitie teorii i instrumentariya [The organizational change management: development of theory and tools]. Gosudarstvennoe upravlenie. Elektronnyiy vestnik – Public administration. Electronic bulletin, 39. Retrieved from https://istina.msu.ru/publications/
article/4617935/ [in Russian].
8. Kutsevol, N. G. (2011). Organizatsionnoe razvitie i upravlenie izmeneniyami [Organizational development and change management]. Kazan. Retrieved from https:// kpfu.ru/docs/F1426824522/4_Kuts_pos_2. pdf [in Russian].
9. Kharichkov, S. K. (Ed.). (2016). Doroshuk, H. A. Upravlinnia orhanizatsiinym rozvytkom: teoretychni ta kontseptualni osnovy [The organizational development management]. Odesa: Bondarenko M.O. Retrieved from https://economics.opu.ua/ files/scientific-base/monogr/doroshuk_upravlinnya. pdf [in Ukrainian].
10. Zabrodska, L. D., & Pichuhina, T. S. (2019). Upravlinnia orhanizatsiinym rozvytkom pidpryiemstva. Kurs lektsii [The enterprise¥s organizational development management. The lecture course]. Kharkiv: KhDUKhT [in Ukrainian].
11. Robertson, B. J. (2018). Holakratiya. Revolyutsionnyiy podhod v menedzhmente [Holacracy. A revolutionary approach to management]. Moskva: «Izdatelstvo «Eksmo». Retrieved from https://neurons. kg/tpl/library/92. pdf [in Russian].
12. Pizano, G. (2019, March 03). Gorkaya pravda o kulture innovatsiy [The bitter truth about a culture of innovation]. Retrieved from https://hbr-russia.ru/innovatsii/ upravlenie-innovatsiyami/794907 [in Russian].
13. Deloitte. (2017). Organizatsiya buduschego: buduschee nastupilo [The future¥s organization: the future has come]. Retrieved from https://www.talent-management. com.ua/3144‑organizatsiya-budushhego-glava-deloitte-2017/ [in Russian].
14. Staryiy novyiy VUCA-mir: kak otvechat na ego vyizovyi. (2020, July 17). [The old-new VUCA world: how to answer his calls]. Retrieved from https://habr.com/ru/company/ netologyru/blog/511358/ [in Russian].
15. Korovkin, V., & Orlovskiy V. (2020, June 10). Lovushka Stiva Dzhobsa: kak ponyat, chto u vashey kompanii vse ploho [How to understand that everything is bad at your company]. Retrieved from https://hbrrussia.ru/innovatsii/upravlenieinnovatsiyami/832376 [in Russian].
16. Tsimbalyuk, E. (n. d.). Upravlenie izmeneniyami v mire VUCA [The change management in VUCA world]. Retrieved October 10, 2020, from https://www.trn.ua/ articles/13748/ [in Russian].
17. Chuhno, Yu. (n. d.). Upravlenie izmeneniyami v VUCA-mire: kak vovlech lyudey i pomoch im stat liderami novyih resheniy [The change management in VUCA world: how to engage people and help them become leaders of new solutions]. Retrieved October 10, 2020, from http://novaterracoaching.su/change-management-in-vuca/ [in Russian].
18. Gayovich, I. (n. d.). «Mir neprost, sovsem neprost». Ili kak byit menedzheru v slozhnom mire VUCA? [«The world is not easy, not easy at all». Or what about a manager in the complex world of VUCA?]. Retrieved October 10, 2020, from https://newrealgoal.com.ua/kak-byt-menedzheru-v-slozhnom-mire-vuca-3. html [in Russian].
19. Luzin, A. (n. d.). Rezina i plastilin: pochemu gibkost i adaptiruemost nuzhnyi dlya vyizhivaniya organizatsii [Rubber and plasticine: why flexibility and adaptability are essential for the organization¥s survival]. Retrieved October 10, 2020, from http://www.management.com.ua/cm/cm190. html [in Russian].
20. Voynovyan, V. (n. d.). Upravlenie izmeneniyami v VUCA-mire: kak pomoch yuristam stat innovatorami [The change management in VUCA world: how to help lawyers be innovators]. Retrieved October 10, 2020, from http://legalinsight.ru [in Russian].
21. Kostenko, E. P. (2018). Sovremennyie trendyi v upravlenii personalom: otechestvennyiy i zarubezhnyiy opyit [The modern trends in HR-management: domestic and foreign experience]. Voprosyi regulirovaniya ekonomiki – Economic regulation issues, 9 (4). Retrieved from https://cyberleninka.ru/article/n/sovremennye-trendy-v-upravleniipersonalom-otechestvennyy-i-zarubezhnyy-opyt [in Russian].
22. Deloitte. (2018). Global Human Capital Trends 2018. Retrieved from https://www2. deloitte.com/ua/uk/pages/press-room/press-release/2018/human-capital-trends-2018. html.
23. Deloitte. (2020). 2020 Human Capital Trends. Retrieved from https://www2.
deloitte.com/ua/uk/pages/about-deloitte/press-releases/gx-2020‑global-human-capitaltrends-report. html.
24. Robischon, N. (2017, May 19). Pochemu Amazon yavlyaetsya samoy innovatsionnoy kompaniey 2017g. [Why Amazon is the most innovative company in 2017]. Retrieved from http://www.management.com.ua/gm/gm227. html [in Russian].
25. Sekretyi uspeha Amazon: BEZOSlovnyiy reflex. (2018, June 27). [The Amazon¥s success secret]. Retrieved from https://retailer.ru/sekrety-uspeha-amazon-bezoslovnyjrefleks/ [in Russian].
26. Evlyutina, E. (2018, June 15). Bossov bolshe net: chem opasno otsutstvie ierarhii vnutri kompanii [There are no more bosses: why is the lack of hierarchy within the company dangerous?]. Forbes. Retrieved from https://www.forbes.ru/karera-i-svoy-biznes/ 360753‑bossov-bolshe-net-chem-opasno-otsutstvie-ierarhii-vnutri-kompanii [in Russian].
27. Li, M., Bernstayn, J. & Kanner, N. (2016, October 18). Holakratiya po zakonam byurokratii [Holacracy according to the laws of bureaucracy]. Harvard Business Review. Retrieved from https://hbr-russia.ru/management/prinyatie-resheniy/a18224 [in Russian].
28. Serdyuk, A. (n. d.). Holakratiya v deystvii [Holacracy in action]. Retrieved October 10, 2020, from https://ceoclub.com.ua/holocracy [in Russian].

Code DOI

 10.31359/2411‑5584‑2020‑43‑4‑46

20.11.2020