HUMAN REOURCE MGT-7

Organization Development
Definitions
As per Warren G Bennis “A complex educational strategy
intended to change the beliefs ,attitudes, values,
structure of organizations so that they can better adapt
to new technologies, markets and challenges.
As per Dale Beach “ a complex educational strategy
designed to increase organizational effectiveness and
wealth through planned intervention by consultant using
theory and techniques of applied behavioural science.
As per Wendell L.French “a long range effort to improve an
organization’s problem solving and renewal processes
with special emphasis on the culture of formal teams.
 FACTORS OF OD
• OD is broader concept, includes management
development and training as it subsystems as
the primary objective of OD is to change the
nature of total organization
• OD is not separate discipline but it draws from
other other disciplines like psychology,
sociology, anthropology etc
• OD is based on research and theory
• OD is concerned with people for increasing
organizational effectiveness
 FACTORS OF OD
• OD is broader concept, includes management
development and training as it subsystems as the
primary objective of OD is to change the nature of total
organisation
• OD is not separate discipline but it draws from other
other disciplines like psychology, sociology, anthropology
etc
• OD is based on research and theory
• OD is concerned with people for increasing
organisational effectiveness
• OD is also concerned with improving organisational
climate and culture
• OD- It’s a response to change
• OD-It’s a Educational strategy to change
the beliefs, attitudes, values and structure
• OD- It uses bahavioural
science,knowledge system, improvement
in planning and self analysis.
• OD happens with change Agent, or
Catalyst
 Characteristics of OD
• OD focuses on the whole organisation to assure that all
parts of the organisation are well co-ordinated
• It interacts and interrelates among its sub systems
• It uses one or more change agents who stimulate and
coordinate the change with in group
• It’s a problem solving approach, not just discussing
• It emphasizes learning by experience
• It utilizes group processes group discussion, intergroup
conflicts, collaborate and cooperate
• OD is long term approach to organizational effectiveness
• Most interventions on research based
 VALUES OF OD MOVEMENT
• Assumption of people are Basically good
• Need for Confirmation and Support: New employee is to
be taken into confidence, is associated with private
meetings and discussions
• Accepting Differences among People: People have
different backgrounds, experiences opinions and ideas,
personality, Orgn should benefit from it
• Expressing Feelings and Emotions: Allow the people to
rational, express feelings sentiments emotion anger
tenderness. Full range of expression of feelings result in
high motivation, commitment and creative ability.
• VALUES
• Authenticity, Openness and Directness: Honesty and
directness enable people to put their energies into the
real problems and improve effectiveness. Most of the
people tell half truths and mask their truth.
• Fostering Cooperation: Should develop and create
cooperation among employees
• Giving Attention; For process activities
• Confronting Conflict: Identifying the root causes of the
problem and working out a satisfactory solution rather
suppressing the conflict.
 OD PROCESS
• It takes minimum of one year and may continue
further. Following steps are important
1)Initial Diagnosis: Inadequacies are corrected.
The consultants adopt various methods
including interviews, questionnaires, direct
observation, analysis of documents and reports
for diagnosing
2)Data Collection: Survey method is used collect
the data and information for determining
organisational climate and identifying the
behavioural problems.
• OD process
3)Data feed back and confrontation: Collected data
is analyzed and reviewed by various work
groups formed from this purpose and mediate in
the area disagreement or confrontation of ideas
or opinions
4)Selection and Design of Interventions:
Introduced into the system to accomplish
desired changes and improvements.
• OD processes
5)Implementaion of Intervention: Selected intervention is
implemented in the form of workshops, feedback of data
to the participants, group discussions, written exercises,
on the job activities etc. Interventions are implemented
steadily to achieve lasting change.
6)Action Planning and Problem Solving: Data collected
used for recommending specific action planning
7)Team Building: Consultants encourage the employees to
form groups and teams for action planning ,explaining
the advantage of teams, by arranging joint meetings with
employees and managers
• OD process
8)Inter group Development: The consultants
encourage the intergroup meetings and
interaction etc after the formation of
groups/teams
9)Evaluation and Fallow up: To find out their
utility ,develop the programes further for
correcting the deviations and improved
results.
 OD Intervention Techniques
Techniques created by OD professionals.
• Single organisation or consultants use all
• They use intervention depending on requirement and
need
1) Survey Feedback: Provides data information to
managers. Attitudes about wage level, and structure
,hours of work, working conditions and relations are
collected
2) Process Consultation: Process consultants meet the
members of work teams observes their interactions,
problem identification skills, problem solving
procedures. He coaches and counsels individuals and
groups in moulding their behaviour
• Intervention Techniques
3)Goal setting and Planning: Each division
unit sets the goals or formulates the plans
relating to profitability, market share,
human resource productivity. A set of
organisation-wide goals thus thereafter
4)Managerial Grid: Blake Mountan
developed this on Ohio state study
 ORGANIZATION STRUCTURE

• An organization Structure consists of activities

Task allocation, coordination and supervision
which are directed towards organisational aims
• Organization structures are mostly hierarchical
structures.
• The Organization structure will determine the
modes in which operates and performs
• It allows the expressed allocation of
responsibilities for different functions for different
functions and processes to different entities such
as branch, department, work group and
individual
 Definition
• “Formal and Informal frame work of policies and
rules, within which an organization arranges its
lines of authority and communications, and
allocates rights and duties. Organizational
structure determines the manner and extent to
which roles, power , and responsibilities are
delegated, controlled , and coordinated, how
information flows between levels of
management. An Organization chart illustrates
the organizational structure”.
Types of Organizational structures
• The form of structure determines the hierarchy
and reporting structure in the organization.
Nothing but Organization chart
• It based on geographical regions, products or
hierarchy.
• Its planned work and systematic arrangement of
work
• Company chooses the one that best suits their
needs
 Traditional Structures
Based on functional division and department
1)Line structure: Approvals and Orders come from
top to bottom in line. Hence line structure. Easy
decision making, informal in nature and
decentralised
2) Line and staff Structure: suitable for small one.
It is centralized, Decision making becomes
slower because of line staff layers
3)Functional Structure: Classifies as per
professional functions, sales ,customer services,
accounting and administration
 Divisional structures
• Based on the Divisions
1) Product Structure: Based on organizing
employees and type of work on products. If
the company produces three different types of
products, they will have different divisions for
these products
2) Market Structure: Grouped into on the basis of
specific market company sells. Market wise
divisions will be made
3) Geographic Structure: Offices could be a north
zone, west zone and east zone, then structure
will fallow a zonal region structure
• Some more structures
1)Pre-Bureaucratic structures:Not involved in standardized tasks and their
hierarachy is centralized
2)Bureaucratic Structures:
s Tall organisation structures, enforce standardization
of tasks and best for complex and large organisations
3)Matrix Structure: Characterized by grouping employees on the basis of
products and function. Three Types

a)Weak Matrix: project manger is given limited authority to supervise cross

functional project

b)Balanced Matrix: Authorities and responsibilities are equally shared

between project n functional mangers

c) strong matrix: Project Manager is whole and sloe authority with functional
managers extending tech. assistance and resources
• Some more structures

• Team Structures: Vertical and horizontal working teams

decided based on individual processes and functions

• Network structures: Project Managers are given

responsibility of coordinating and controlling external
collaborations and relations via Electronic media

• Virtual Structures: Net work structure basically. It

maintain the different divisions of all over world. No
maitenance of phisical and manual infrastructure. Its
boundary less organisation and depends on internet
 Business Process Reengineering
• Its an analysis and design of work flow and processes
within Organization
• Its set of logically related tasks performed to achieve a
defined out come.
• Some of the subjects of BPR are “enterprise resource
planning, supply chain management, groupware and
collaborative systems, knowledge management systems,
Human Resource management systems, customer
relationship management.
• Cross functional teams to integrate processes.
• Known as Business Process Redesign, Business
Transformation, Business Process Change Management
• Business process reengineering

-Michael Hammer(1990) Professor of computer science

brought the concept
-Should obliterate non value adding work rather using
technology automating it.
-Most of the work customer does not pay, such work
should be removed
-Companies should reconsider their processes to
maximise customer value.
-Thomas H Davenport and J Short (1990), E&Y also
advocated to review the business processes
BPR

• Began in private sector technique help organization to rethink how

they do their work to improve customer service, cut operational
costs and become world class competitors.

• Deployment sophisticated information system.

• This has become a boon for those companies which are striving for
renewed competitiveness to gain lost business due to entry of
foreign competitors.

• With accelerating pace, all fortune 500 companies implemented this,

by 1993.
BPR

• Reengineering starts with high level assessment of

Organization’s mission, strategic goals and customer
needs.

• It’s a fundamental redesign and rethinking on existing

resources.

• Its a assessment about what it should be doing and go

to decide how best we should we do it
BPR
• Reengineering identifies, analyses, and radical redesign,
made to organisation’s existing resources. Its more than
business improving.

• Within the frame work of assessment of Goals ,Mission,

reengineering focusses on the steps and procedures
how resources are used to create products and services
that meet the customer needs and markets.

• Total attention on cost, quality, service and speed

 CRITIQUE-BPR
• It resulted in massive lay offs
• Companies have downsized for Reengineering
• Reengineering starts the process of
performance improvement in ‘clean slate’
ignoring status quo.
• It does not provide an effective remedies on
constraints.
• It never changed management thinking which is
larger cause for failure
Critique-BPR
• Under estimation of resistance to change
• Exaggerated expectations regarding the
potential benefits from BPR initiative and
consequently failure to achieve the expected
results.
• Poor Project management
• Over trust in technology solutions
• So called best practice does not fit specific
company needs
 MULTI SKILLING
• In work systems and business processes,
working for company with variety of skills.
• Its compatible with computer and internet.
• This is possible because system replaces the
people
• What is used to take in months now done in
minuts
• Distances have shrunk and homogeneity of
products and services replaced ethinicity
Multi skilling
• Managers are happy to recruit multi talented
work force to orgnl challenges
• Multi skilling is strategy in meeting challenges
market scenarios and competition.
• Multi skilling is gaining importance as companies
spread out, mergers and takeovers have made
companies enter into unknown sectors.
• Companies have become multi dimension
requiring multi skills
• Multi Skilling

-With changing industry scenario, globalization, Employees have to

multi skill themselves to make more talent available.

-Multi skilling has helped influx of new ideas, out box thinking
creative solution generation by role reversal and lateral moves.

-Drawbacks may be to stretch to limits, lead to frustration.

-Without proper counselling, and training ,Multiskilling may backfire,

,uncomfortable with changes, employees to be guided and
supported.