ORGANIZATION DEVELOPMENT

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OD is a planned process of change in an organization’s culture through the

utilization of behavioral science technology, research, and theory.

Burke’s Definition of OD

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OD refers to a long-range effort to improve an organization’s problem-solving capabilities and its ability to

cope with changes in its external environment with the help of

external or internal behavioral-scientist consultants.

French’s Definition of OD

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OD is an effort (1) planned, (2) organization-wide, and (3) managed

from the top, to (4) increase organization effectiveness and health through (5) planned interventions in the organization’s “processes,” using

behavioral science knowledge.

Beckhard’s Definition of OD

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OD is a system-wide process of data collection, diagnosis, action planning, intervention, and

evaluation aimed at: (1) enhancing congruence between organizational structure, process, strategy,

people, and culture; (2) developing new and creative organizational solutions; and (3)

developing the organization’s self-renewing capacity. It occurs through collaboration of

organizational members working with a change agent using behavioral science theory, research,

and technology.

Beer’s Definition of OD

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a systemwide application and transfer of behavioral science knowledge to the planned development, improvement, and reinforcement of the strategies,

structures, and processes that lead to organization effectiveness.

Organization Development is...

C O N T E N T S :

O R G A N I ZAT I O N A L D E V E L O P M E N T.

M E A N I N G A N D D E F I N I T I O N S O F O D .

O B J E C T I V E S O F O D .

A S S U M P T I O N S A N D VA L U E S O F O D .

P R O C E S S O F O D .

E F F E C T I V E N E S S O F O D .

ORGANIZATIONAL DEVELOPMENT(OD)

INTRODUCTION TO OD:

The term organizational development was coined by Richard

Beckhard in the mid-1950s.Organizational development is an acronym of two

words i.e., organization and development.

Organization: A social unit of people that is structured and managed to meet

a need or to pursue collective goals.

Development: The systematic use of scientific and technical knowledge to

meet specific objectives or requirements.

ORGANIZATION DEVELOPMENT:

Organization development (OD) is a deliberately planned effort to increase an

organization's relevance and viability.

Organizational development is the framework for change, and often times a

manager helps to lead this change.

MEANING OF OD:

Organization development is known as both a field of applied

behavioral science focused on understanding and managing organizational

change and as a field of scientific study and inquiry.

OD is a systemic learning and development strategy intended to change

the basics of beliefs, attitudes, and relevance of values and structure of the current

organization to better absorb disruptive technologies, market opportunities, and

ensuing challenges and chaos.

DEFINITIONS OF OD:

According to Middlemist and Hitt define “organizational development is a

systematic means for planned change that involves the entire organization and is

intended to increase organizational effectiveness.”

Cummings and Huse define OD “A system wide application of behavioral

science knowledge to the planned development and reinforcement of

organizational strategies, structure, and processes for improving an organization’s

effectiveness.”

Bennis. W define “Organizational development is a response to change, a

complex educational strategy intended to change beliefs, attitudes, values, and

structures of organizations so that they can better adapt to new technologies,

markets, and challenges, and the dizzying rate of change itself.“

Cummings and Worley define “"Organization development is a system-

wide application of behavioral science knowledge to the planned development

and reinforcement of organizational strategies, structures, and processes for

improving an organization's effectiveness."

OBJECTIVES OF OD:

According to somil aseeja, the objective of od is:

To increase the level of inter-personal trust among employees.

To increase employee's level of satisfaction and commitment.

To confront problems instead of neglecting them.

To effectively manage conflict.

To increase cooperation among the employees.

To increase the organization problem solving.

To put in place process that will help improve the ongoing operation of theorganization on a continuous basis.

ASSUMPTIONS AND VALUES OF OD:

ASSUMTIONS Individuals:

People want to grow and mature . Employees have much to offer (e.g.creativity and energy) that is notbeing used at work . Most employees desire theopportunity to contribute (they desire,seek and appreciate empowerment).

Groups:

Groups and teams are critical toorganizational success and individualneed satisfaction. Groups have powerful influenceson individual behaviour . The complex roles to be played ingroups require skill development.

VALUES Individuals:

OD aims to overcome obstacles tothe natural human tendency to grow,enabling employees to contributemore to the organization. OD stresses open communication,Treating employees with genuinedignity and respect is emphasized.

Groups:

Hiding feelings or not beingaccepted by the group diminishesindividual willingness to solveproblems constructivelyAcceptance, collaboration andinvolvement lead to expressions offeelings and perceptions.

Organization:

Excessive controls, policies and

rules are detrimental Conflict can be

functional if properly channeled

Individual and organizational goals

can be compatible .

In most organizations, the level of

interpersonal support, trust and

cooperation is lower than desirable

and necessary

Organization:

The way groups are linked,

influences their Effectiveness, change

should start at the top and gradually

be introduced through the rest of the

organization.

The group links the top and bottom

of the organization

THREE major trends are shaping their relevance of OD in

this drastically changing environment:

1. Globalization: It changed the market and

environments in which organization operates as well as

the way function. New government, new leadership,

new market, new countries are emerging and creating

new global economy with opportunities and threats.

Growth & Relevance:

2. Information Technology: The way an

organization collects, stores, manipulates uses

and transi …..

3. Managerial Innovation:

(strategic HRM, organization design, proactivity &

customer focus, learning organizations)

Growth & Relevance: Contid…

Why OD in Indian Settings

• With the opening of economy intense competition from

internal & external corporate

• Indian minds are less systems-driven & more people &

relationship driven

•Indian mindsets are tradition bound, fatalistic and

resistant to change

• Tendency to work for short term than long term goals

• Therefore a need for OD

Kurt lew in (1898–1947) is w ide ly recognized as the

founding fa ther o f OD, a l though he d ied before the

concept became current in the mid -1950s .

f rom lew in came the ideas of group dynamics and

act ion research which underp in the bas ic OD process

as w el l as provid ing i ts co l laborat ive consul tant /c l ient

e thos .

Ins t i tu t iona l ly, lew in founded the "research center for

group dynamics" (RCGD) a t MIT, which moved to

michigan af ter h is death .

RCGD col leagues were among those who founded the

nat iona l t ra in ing laborator ies (NTL) , f rom which the t -

groups and group -based OD emerged.

HISTORY AND EVOLUTION

Kurt Lewin played a key role in the evolution of organization development as it is known today.

As early as World War II, Lewin experimented with a collaborative change process (involving himself as consultant and a client group) based on a three-step process of planning, taking action, and measuring results.

This was the forerunner of action research, an important element of OD,

HISTORY AND EVOLUTION

HISTORY AND EVOLUTION

Lewin then participated in the beginnings of laboratory

training, or T-groups, and, after his death in 1947, his

close associates helped to develop survey-research

methods at the University of Michigan.

Douglas McGregor and Richard Beckhard : while

"consulting together at General Mills in the 1950s, the

two coined the term organization development (OD) to

describe an innovative bottoms-up change effort that fit

no traditional consulting categories"

Laboratory Training

Known as T-groups & defined as a small unstructured group in which participants learn from their own interactions & evolving dynamics about issues like interpersonal relations, personal growth, leadership & group dynamics

Began with Lewin & asso. in MIT (Massachusetts Institute of Technology) studying community interrelations of American Jews

Results showed the following.1. Feedback from group interaction was rich learning

experience2. The process of group building had potential for

learning that could be transferred to ‘backhome’ situations

Laboratory Training (contd..)

In 1947 NTL (National Training Laboratory) was setup in Bethel, Maine (northeastern state in USA)

In 1950s three trends emerged

1. Emergence of regional labs.

2. Converting summer program sessions to year round sessions

3. Expansion of t-groups to business & industry with NTL members contributing significantly (McGregor-Union Carbide, Shephard & Blake in Esso Standard Oil now Exxon, McGregor & Beckhard at General Mills)

Application of T group was later called team building exercises

Action Research/Survey Feedback

Began in 1940s, major work by Lewin, Collier & Whyte Research needed to be closely linked to action if

organization members were to use it to manage change A collaborative effort was initiated between organization

members & social scientists to collect research data about organization’s functioning, to analyze it for causes & to devise & implement solutions. After implementation further data was needed to assess the results & thus the cycle of data collection & assessment continued.

Major researches in this field- overcoming resistance to change (Coch & French) & participative mgt. as a means of getting employees involved in planning & managing change.

Action Research/Survey Feedback (contd..)

The chief point of action research was systematic collection of survey data that was fed back to the client organization.

After Lewin, major contribution by Likert (measurement of attitudes, creation of Likert-type scale).

Normative Approaches (Participative Management )

Based on the belief that human relations approach was the best way to manage organizations It was exemplified in the research that associated Likert’s participative management (system 4) style with organizational effectiveness

The four types of management systems are as follows1. Exploitative authoritative (S1) autocratic(relating to rule), top down,

carrot & stick(combination of rewards and punishment to induce behavior), resulting in mediocre (not very good)performance

2. Benevolent authoritative (S2) mgt. little paternalistic, employees allowed a little more interaction & freedom in decision making but within limits

3. Consultative (S3) increased employee interaction in decision making but mgt. still makes the final decision. productivity good, employees moderately satisfied.

4. Participative group (S4) fosters high involvement, communication laterally & vertically, work groups involved in goal setting, decision making & appraisal.

Normative Approaches (Participative Management (contd..)

Likert applied system 4 mgt. to organizations using survey feedback process with the foll. Steps

1. Employees completing the form of ‘profile of organizational characteristics’ about both the present & ideal conditions of six organizational features: leadership, motivation, communication, decisions, goals & control

2. Data was fed back to different work groups within the organization3. The discrepancy between the present & the ideal situation was

examined using S4 as the ideal benchmark4. Action plans were generated to move the organization toward S4

condition.

Productivity & Quality of Work Life (QWL)

The impact on OD took place in two phases

In phase I the movement began in Europe (1950) & US (1960)

Based on the works of Eric Trist et al. at Tavistock Institute of Human Relations, London

Developed work designs aimed at integrating technology & people.

Involved joint participation of union & management

Productivity & Quality of Work Life (QWL) contd…

Phase II began in 1979

Chief reason was international competition faced by US at home & abroad

Low cost high quality foreign goods (Japanese) & Japanese management expanded the initial focus from work design to reward, management styles, work settings

Led to the rise of quality circles & TQM

Now emphasis has shifted from TQM to employee involvement (EI) to employee empowerment (power to the lower levels)

Strategic Change

Recent influence

Emphasis on competitive strategy,finance & marketing,team buliding & action research

Theories of Planned change:

Organizational Climate - the mood or unique “personality” of an organization which can be

observed in the attitudes and beliefs about organizational practices create organizational

climate and influence members’ collective behaviour.

Climate features and characteristics may be associated with employee satisfaction,

stress, service quality and outcomes and successful implementation of new programs.

Climate features and characteristics include:

Leadership

Openness of Communication ·

Participative Management

Role Clarity

Conflict Resolution

Leader Support ·

Leader Control

Organizational Culture - Deeply seated norms,

values and behaviours that members share. The five

basic elements of culture in organizations include:

Assumptions · Values

Behavioral norms

Behavioral patterns · Artifacts

Theories of Planned change:

General Model of Planned change

One of the foundational definitions in the field of organizational development (OD) is planned change:

“Organization Development is an effort planned, organization-wide, and managed from the top, to increase organization effectiveness and health through planned interventions in the organization's 'processes,' using behavioral-science knowledge.”--Richard Beckhard, “Organization development: Strategies and Models”,

To understand the practice of OD, some of the key terms, embedded in Beckhard's formulation, include:

Planned - carefully thought through; based on data; documented

Effectiveness - as measured by actual organizational performance versus desired organizational performance

Health - as measured by the organization's ability to respond, grow and adapt in its environmental context

Intervention - the specific action(s) selected for implementation that are intended to bring about the envisioned change

Processes - how work gets done in an organization; e.g. delivery of service, billing, repair, etc.

General Model of Planned change

Once managers and an organization commit to

planned change, they need to create a logical step‐by

step approach in order to accomplish the objectives.

Planned change requires managers to follow an

eight‐step process for successful implementations,

which is illustrated in Figure 1.

Steps in Planned Change

Steps in Planned Change

Steps in Planned Change

Recognize the need for change

Develop the goals of the change

Select a change agent

Diagnose the current climate

Select an implementation method

Develop a plan

Implement the plan

Follow the plan and evaluate it

Theories of Planned Change

The development of theories or model of planned change facilitated the development OD.

These theories describes the different stage though which planned change may be effected and explain the temporal process of applying OD methods to help organisation members in managing organisation change.

Lets see the various planned change

Theories of Planned Change

Theories of planned change

Kurt Lewin ModelAction Research Model

Positive Model

Bruke-Litwin Model

Kurt Lewin Model

Force Field Analysis: Driving Forces

Driving Forces are the forces that push in a direction that causes change to occur.

They cause a shift in the equilibrium towards change.

Force Field Analysis: Restraining Forces

Restraining forces are forces that counter driving forces. They oppose change.

Restraining forces cause a shift in the equilibrium which opposes change

Force Field Analysis: Equilibrium

Equilibrium is a state of being where driving forces equal restraining forces and no change occurs.

Equilibrium can be raised or lowered by changes that occur between the driving and restraining forces.

Lewin’s Change Theory

Consists of three distinct and vital stages:

“Unfreezing”

“Moving to a new level or Changing”

“Refreezing”

Theories of Planned Change

Case of a Government office where typewriters are going to be replaced by computers

Here, apprehension about learning computer and unwillingness to accept the change can be restraining force.

And, up-gradation of knowledge and increase in productivity can be a positive driving force.

“Unfreezing”

This starts by challenging many of the beliefs, attitudes, and behaviour of people within the organization.

Motivation for change should be generated before change can occur.

During this everyone feels that things are becoming off balance as new system will make their job difficult.

We need to sell the benefits of the change to everyone involved i. e. benefits of replacing type-writers with computers

Also address any doubts or concerns.

Introducing Change/Moving to the New Level

Once the organization has gone through the unfreeze stage, effective change can begin within the organization.

Time and frequent communication are two key factors for the change to occur.

People need to understand the changes as they occur and feel that they are part of the change.

Some take a long time to learn the computers.

This can lead to fear and rumours that need to be handled quickly which should be taken care of.

“Refreezing”

It is the process to integrate the new behavior into the person’s thinking and attitude.

Once the changes have taken effect, we need to make them believe that their productivity and knowledge will go up as the start learning computer.

One should make sure that people get comfortable in using the computers.

Also to provide clear communications, support and training.

And to celebrate the successful completion of changes.

THEORIES OF PLANNED CHANGE

2. Action Research Model Problem identification

Consultation with behaviouralscience experts

Data gathering and preliminary diagnosis

Feedback to a key client or group

Joint diagnosis of the problem (with the management by OD expert)

Joint action planning

Data gathering after action

Action

THEORIES OF PLANNED CHANGE

3. The Positive Model – focuses on “what the organization is doing right” and not problems.

a. Initiate the inquiry

b. Inquire into best practices of the organization and get details of the same

c. Discover the themes – based on stories of people, i.e., how managers managed

d. Envision a preferred future – employees identify themes and change status quo

e. Design and deliver – design & deliver ways to create future – describe activities and create plans to bring about the vision.

THEORIES OF PLANNED CHANGE

3. The Positive Model

Bruke - Letwin Organisational Model

General Model of Planned Change

Evaluatingand

InstitutionalizingChange

Planningand

ImplementingChange

DiagnosingEnteringand

Contracting

THEORIES OF PLANNED CHANGE

4. General Model of Planned Change

a. Entering & contracting – with OD expert with the organization.

b. Diagnosing issues– at organization level, group level and individual level (Gathering, analysing and feeding back

data re the central change activities in diagnosis)

c. Planning & Implementing change – to be carried out jointly by the OD expert and the organization.

d. Evaluating and institutionalizing change – providing feedback and evaluating the effects of change, and make it regular feature which should continue

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Critique of Planned Change

Conceptualization of Planned Change

Change in not linear

Change is not rational

The relationship between change and performance is unclear

Practice of Planned Change

Limited consulting skills and focus

Quick fixes vs. development approaches

Who is the OD Practitioner?

They may be internal or external consultants who offer professional services to organizations, including their top managers, functional department heads, and staff groups.

They may be those specializing in fields related to OD, such as reward systems, organization design, total quality, information technology, and business strategy.

Who is the OD Practitioner?

The increasing number of managers and administrators who have gained competence in OD and who apply it to their own work areas.

Role of OD Practitioners

OD practitioners My need play variety ofroles which change according to whatneeded. Various roles are as fallowes

1. As a teacher

2. As Change agent

3. As Helper and Catalysts

4. As third party agent

Professional Ethics for OD Practitioners

Professional Ethics:

Ethical issues in OD are concerned with how practitioners performtheir helping relationship with organization members.

Inherent in any helping relationship is the potential for misconduct and client abuse.

Professional Ethics for OD Practitioners

1. Responsible to Self

2. Responsible for professional Development and competence

3. Responsible to Client and Significant others

4. Responsible to the Profession

5. Social Responsibility

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Competencies of an OD Practitioner

Intrapersonal skills Self-awareness

Interpersonal skills Ability to work with others and groups

General consultation skills Ability to manage consulting process

Organization development theory Knowledge of change processes

THANK YOU

PROCESS OF OD:

Organization Development (OD) is a planned approach to improve employee

and organizational effectiveness by conscious interventions in those processes and

structures that have an immediate bearing on the human aspect of the organization.

A normal OD process can be phased in following manner:

.Problem Identification

Data Collection

Diagnosis

Planning and Implementation

Evaluation and Feedback

Problem identification:

The first step in OD process involves understanding and identification of

the existing and potential problems in the organization. The awareness of the

problem includes knowledge of the possible organizational problems of

growth, human satisfaction, the usage of human resource and organizational

effectiveness.

Data Collection:

Having understood the exact problem in this phase, the relevant data is

collected through personal interviews, observations and questionnaires.

Diagnosis:

OD efforts begin with diagnosis of the current situation. Usually, it is not

limited to a single problem. Rather a number of factors like attitudes,

assumption, available resources and management practice are taken into

account in this phase. There are four steps in organizational diagnosis:

Structural analysis:

Determines how the different parts of the organization are functioning

in terms of laid down goals.

Process analysis:

Process implies the manner in which events take place in a sequence. Itrefers to pattern of decision making, communication, group dynamics andconflict management patterns within organization to help in the process ofattainment of organizational goals.

Function analysis:

This includes strategic variables, performance variables, results,achievements and final outcomes.

Domain analysis:

Domain refers to the area of the organization for organizationaldiagnosis.

Planning and implementation:

After diagnosing the problem, the next phase of OD, with the ODinterventions, involves the planning and implementation part of the changeprocess.

Evaluation and feedback:

Any OD activity is incomplete without proper feedback. Feedback is aprocess of relaying evaluations to the client group by means of specific reportor interaction

EFFECTIVENESS OF OD:

Humanistic values underlie OD. Margulies and Raia articulated thehumanistic values of OD as follows:

Providing opportunities for people to function as human beings rather than asresources in the productive process.

Providing opportunities for each organization member, as well as for theorganization itself, to develop to his full potential.

Seeking to increase the effectiveness of the organization in terms of all of itsgoals.

Attempting to create an environment in which it is possible to find exciting andchallenging work.

Providing opportunities for people in organizations to influence the way inwhich they relate to work, the organization, and the environment.

Treating each human being as a person with a complex set of needs, all ofwhich are important in his or her work and life.

ORGANIZATION INTERVENTIONS(OI)

CONTENTS

INTRODUCTION TO OI.

MEANING OF OI.

ASSUMPTIONS OF OI.

FACTORS THAT HELPS CHANGE AGENT.

EXAMPLES OF INTERVENTIONS.

INTRODUCTION TO OI:

They may be introduced by a change agent as part of an improvement

program, or they may be used by the client following a program to check on

the state of the organization's health, or to effect necessary changes in its own

behavior. "Structured activities" mean such diverse procedures as experiential

exercises, questionnaires, attitude surveys, interviews, relevant group

discussions, and even lunchtime meetings between the change agent and a

member of the client organization.

Every action that influences an organization's improvement program in a

change agent-client system relationship can be said to be an intervention.

There are many possible intervention strategies from which to choose.

MEANING OF OI:

"Interventions" are principal learning processes in the "action" stage of

organization development. Interventions are structured activities used

individually or in combination by the members of a client system to improve

their social or task performance.

Interventions range from those designed to improve the effectiveness of

individuals through those designed to deal with teams and groups, intergroup

relations, and the total organization.

There are interventions that focus on task issues (what people do), and

those that focus on process issues (how people go about doing it). Finally,

interventions may be roughly classified according to which change mechanism

they tend to emphasize: for example, feedback, awareness of changing cultural

norms, interaction and communication, conflict, and education through either

new knowledge or skill practice.

ASSUMPTIONS OF OI:

Several assumptions about the nature and functioning of organizations

are made in the choice of a particular strategy. Beckhard lists six such

assumptions:

The basic building blocks of an organization are groups (teams). Therefore, the

basic units of change are groups, not individuals.

An always relevant change goal is the reduction of inappropriate competition

between parts of the organization and the development of a more collaborative

condition.

Decision making in a healthy organization is located where the information

sources are, rather than in a particular role or level of hierarchy.

Organizations, subunits of organizations, and individuals continuously manage

their affairs against goals. Controls are interim measurements, not the basis of

managerial strategy.

One goal of a healthy organization is to develop generally open

communication, mutual trust, and confidence between and across levels.

People support what they help create. People affected by a change must be

allowed active participation and a sense of ownership in the planning and

conduct of the change

FACTORS THAT HELP CHANGE AGENT:

Some of the things which will help him are:

A real need in the client system to change.

Genuine support from management.

Setting a personal example: listening, supporting behavior.

A sound background in the behavioral sciences.

A working knowledge of systems theory.

A belief in man as a rational, self-educating being fully capable of learning

better ways to do things.

EXAMPLES OF INTERVENTIONS:

A few examples of interventions include

Team Building.

Coaching.

Large Group Interventions.

Mentoring.

Performance Appraisal.

Downsizing.

TQM And

Leadership Development.

References:

www.wikipedia.com

www.businessdictionary.com

www.boundless.com

www.msu.edu.com

Thank you