Business improvement and organizational development in cuba

Introduction

The rapidity of economic, political and social changes currently taking place in the world, such as globalization processes, new approaches to the market and production, the development of informatics, among others, make companies find themselves in a complex situation which profoundly affects our institutions, which not only face new advances in science and technology, but also changes in principles, approaches and concepts on the role of man in organizations.

Organizations have to operate in a poorly defined and constantly changing environment that requires administrators to create capacities to manage the uncertainty and complex processes they face and to create and integrate work teams. Institutional power based on authority (command and command, coercion, communication in one direction), gradually becomes a style based on collaboration (participation, involvement, broad communication, commitment). Man ceases to be one more element of the process and becomes the most complex and important resource.

All this entails making important changes in the administration and business organization that implies a Development of Organizations.

In Cuba, taking into account this world economic situation, a series of important modifications have been made and a group of measures have been taken with an impact on the administration and business organization, among which we have:

The process of rectifying errors and negative trends in the 1980s Transformations in the country's business activity as a consequence of the situation in the 1990s Transformation in the National Banking system Functional and structural reorganization of the Central State Administration Bodies (OACE). Decriminalization of the dollar, Openness to foreign investment, Application of Business Improvement in the FAR

All these elements have their culmination with the Economic Resolution of the V Congress of the PCC, where the decision is made to extend to the whole country the results of the FAR in Business Improvement, a process aimed at the search for maximum efficiency and competitiveness of the Cuban state company, on the basis of granting it powers and establishing principles and procedures that stimulate the initiative and creativity of leaders and workers in organizations.

This process that is experienced in the Cuban company, assimilates the most modern procedures and techniques of business management in the world, adjusted to the Cuban context, bringing with it a new management system, which will be implemented in all companies in the country of Gradually and gradually, on bases, objectives and principles different from previously developed experiences.

This work aims to:

Demonstrate how the actions to be carried out in Business Improvement, leads to a process of Organizational Development. Analyze which could constitute barriers in this OD process.

Development

Organizational Development or OD, as it is commonly known, is essentially a process of systematic and planned change, aimed at improving the effectiveness, in the short, medium and long term, of organizations. It is a "… philosophy, a method, a technology and an art of creating and maintaining a state of self-renewal in the living organism of the company" (Fernando Archile), taking into account the active and concerted competition of all the elements that make up the organization.

This intervention for change, as Villanueva Mirta et al called it when citing Garmendía in 1998, is “… aimed at making better use of the synergy of the system based on a communication strategy of people and groups within the framework of the organization and its culture".

Stoner (year?) Defines Organizational Development as a “… wide-ranging effort supported by senior management to improve the organization's problem solving and renewal processes… through effective management of the culture of the organization. organization". This ensures that organizations can better adapt to new technologies, markets and challenges, as well as rapidly changing environments.

It is a "… systemic, integrated and planned approach to improve short and long term productivity - of a company and its human resources - using different approaches…" (Woihrich, cited by Otero Dania, 1993), this same author citing to Bennis, emphasizes that OD is "… a response to change, a complex educational strategy, the purpose of which is to change the beliefs, attitudes, values and structures of organizations" (Bennis, cited by Otero Dania, 1993).

On the other hand Sheinstated that "… are all the activities carried out by managers, employees and assistants directed towards building and maintaining the health of the organization as a total system." Aimed at promoting "… the change in people's values …" and consequently, a "… change in people's reciprocal behavior". (Hamptem).

“Organizational development is a long-term educational program, oriented to improve the processes of problem solving and renewal of an organization, in particular, through a more collaborative and effective administration with the culture of the organization, with the assistance of an agent of change, or catalyst, and with the use of theory and technology pertinent to the science of organizational behavior ”. (Orellana C et al, 2002).

This endeavor, which must be projected for the entire organization and directed by top management, must be developed “… through planned interventions in the organization's processes using the discoveries made by the behavioral sciences. (Beckchar)

Taking into account these definitions, we can summarize that Organizational Development are processes for improving the culture of the organization, which are carried out with a systemic, integrated and planned approach; where a broad and complex educational strategy must be developed that affects changes in beliefs, perceptions, values and therefore in culture. Its main objective is to maintain the health of the organization, so that it is in constant development.

Starting from these aspects, we can define that Organizational Development is a system of integrated methods and techniques, applied with a systemic approach, aimed at achieving changes in the organization. Therefore, it is necessary to point out that the DO processes:

They take into account the processes of interrelation of people with the culture of the organization. They focus fundamentally on the change of people. They are actions that managers must lead. They have more human than technical elements, therefore it must be carried out by and with the organization's human resources. In their implementation, these processes make extensive use of all the conceptual and methodological elements of communication, perception and group dynamics. They need a systemic, integrated and planned approach for their execution. They are continuous processes, not a Program; For this, it is necessary to develop a philosophy of renewal author. The procedures to be developed in the DO, follow an action-research model, that is, it is investigated and at the same time it is acted upon on the elements that are being investigated.

The other element to conceptualize in this article in order to fulfill the proposed objective is Business Improvement, this process in its conception takes into account all the elements outlined above, it is aimed at the search for maximum efficiency, effectiveness and competitiveness of the Cuban state company, on the basis of granting it powers and establishing principles and procedures that stimulate initiative and creativity of leaders and workers in organizations, reflected in the correct use of resources, a favorable balance in its economy and the application of new approaches in its management.

In the General Bases of Improvement of MINFAR (1998) it is defined as "… Continuous improvement process…"

Tristá Grisell (2002) in a conference given on this subject analyzes the central objectives that are proposed for this process of change, stating that its “… supreme objective is to increase the efficiency and competitiveness of companies, on the basis of granting them the powers they require to be able to carry out their activity in the complex conditions in which our economy develops… to make the socialist state enterprise efficient and competitive ”. What is wanted to demonstrate is that the socialist state enterprise can be competitive and can be inserted in the complex system of economic relations that develops in the world.

Coinciding with Recio, it is noteworthy that the Business Improvement brings with it great transformations and significant changes in the Cuban business system, in this regard, he said with the Improvement, “… the most profound, radical and significant transformations of the Cuban economy are being developed in recent years. years… ”(Recio. R, 2002)

This far-reaching change requires a new system of thought and action by all the actors, in each of the processes that are practiced in the organization, becoming a new work philosophy for the Cuban business system. In this regard, Villanueva Mirta stated (2002) it can be considered as "… a very strong cultural process, aimed at changing the norms and patterns of behavior, in accordance with the times we are living".

Taking these aspects into account, we can define that business improvement is a Cuban experience that assimilates the most modern procedures and techniques of business management in the world, adjusted to our conditions and characteristics, with emphasis on the search for greater and better economic results through a change in the behavior patterns, modes of action and therefore in the organizational culture.

It is to say “The only viable way to change organizations is to change their culture, that is, to change the systems within which men work and live. (Claudio Orellana F. & Gabriela Nazar C, 2002), that is why they coincide with Lage C. (2000) when he states that Business Improvement is “… it is the most profound, extensive and transcendent economic change that has taken place in the Cuban economy… "

Taking into account the above, it is necessary to specify:

It is a process of change. It requires a new work philosophy. It is aimed at a change in people's behavior and therefore requires new behaviors. It needs management leadership in organizations and new work methods and styles. a process that focuses on the efforts made by Human resources, where workers are the strategic factor. Emphasizes the search for the best economic results and changes in the way of thinking. Considers man as the main strategic element change It is a process carried out within the company with a strategic focus.

When analyzing the conceptualization that is carried out of Business Improvement and Organizational Development, we can define as points of agreement between these two processes the following:

They require a new work philosophy, change in norms and patterns of behavior. They implicitly change the culture of the organization. They need leadership in management to be able to develop transformations. They use integrated methods and techniques with a focus. systemic. They need a planned, organized, coordinated effort of all members of the organization and others involved. They use an action research approach. The essence of both processes is change.

If we take into account that its essence is change, it is precise:

That it responds to the change needs experienced by the organization (Burker W), it cannot be imposed by external agents. That it involves the members in the planning and implementation of the change (CECM). That the change is brought to the culture of The organization: That the change project does not focus on changing things, but on the people who change things. (Sousa), it is a more human than technical process. Let it be a continuous process, it begins but does not end, as stated in the Bases of Business improvement in its principle 17.

If we start from the fact that the essence of OD and Business Improvement is change, we can synthesize its stages in the three moments defined by Kurt Lewin in his book "Almost stabilized equilibria and the problem of permanent changes." Lewin suggested that change goes through three steps which are:

Defrost, Operations and Refreeze; They were later defined by other authors (Ronal Lipptt Jeanne Watson, Bruce Westley., French Shephard) as Thaw, Change and Refreeze or as defined by Willian Brite in 1991: transition and change.

The steps that companies must go through in Business Improvement are defined in Decree Law 187/98 (see table 1), where 8 key moments are defined for a company to be authorized to implement. Due to the accumulated experience in consulting processes, all the actions to be carried out can be grouped into four fundamental stages: Awareness, Diagnosis, Projection, and Monitoring and evaluation (see Figure 1).

Steps in the Business Improvement process.

(Decree law 187/1998)

Preparation of all workers, the Union, the Party and the Company's UJC to develop the Business Improvement process. Initial business diagnosis. Analysis of the diagnosis by the Government Group and authorization to start the studies. Development of the Business Improvement study. Evaluation of the organization and system that the Company will apply. Preparation of the Business Improvement file. Approval, by the Government Group, of the Business Improvement file, and authorization of the beginning of the implementation. Implementation of the Business Improvement. Supervision and adjustment of the designed system.

Fig. 1: Process of Change and Improvement

What barriers can prevent Business Improvement from being an Organizational Development process?

Insufficient awareness of senior management in these processes. French Wendel stated “… undoubtedly DO efforts are more effective when they start at the top”

Do not use a systems approach throughout the process. That it becomes a program and not an ongoing process. That the organization starts the process in an imposed way or because of "unfounded enthusiasm." That there is no broad participation in the entire process That there is more concern about reviewing and changing external regulations and regulations than the internal modes of action themselves Poor coordination of all actions Little clarity of the role of organizations and branch agencies in the process Limited information to everyone involved Insufficient teamwork.

Among the main shortcomings that this process has had in agriculture are:

Little coordination between the provincial direction and branch. Little clarity on the role of branch offices or associations in this process. Lack of integrity in the analyzes that are carried out. The process with workers is limited to information and does not reach awareness. The organization is not analyzed with a systems approach. Insufficient feedback to the Board of Directors. Insufficient teamwork of the improvement committee.

Bibliography

• Recio R. Business Improvement: Tortoise or Hare? Newspaper workers. 2000

• Betancour P. Mini answers that should not remain in the inkwell. Newspaper workers. 2000

• CECM. Decree Law 187/98 General Bases of Business Improvement. - Havana, 1998.

• Tristá Grisell Conference given at the Strategic Integration Workshop. March 16, 2002.

• MINFAR. General bases of Improvement in MINFAR. Group for the Improvement of business organizations and institutions of MINFAR. 1998.

• Orellana C et al. Classified psycho-files. Organizational development Chapter 13.Universidad Concepción 2000 Chile.

• Otero Dania. Organizational development. CEEC. 1993

• Lage C. Speech delivered at the Meeting with the directors of companies in business improvement. Pedagogical Convention Center. 2000

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Cited by Villanueva Mirta et al in Material El DO as a process of change. Year 1998

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