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UNIT25

Organisational Development
The concept of change has already been dealt with in detail in a separate Chapter. Organisational Development (OD) is a contemporary approach to management of change. It seeks to change the values, beliefs, attitudes, strategies, structures and practices to enable the organisation to better adapt to changes in the environment. Meaning of Organisational Development (OD) Organisational Development is the systematic application of the knowledge gained from behavioural science to bring about planned change. The basic objective of ODD is to prepare the organisation to meet the challenges of changes. Definition of OD A couple of definitions of OD are given below: 1. OD is a complex educational strategy to increase organisational effectiveness and wealth through planned intervention by a consultant using theory and techniques of applied behavioural science Dale S. Beach. 2. It is a complex educational strategy intended to change the beliefs, attitudes, values and structure of organisations so that they can better adapt to new technologies , markets and challenges and the dizzying rate of change itself Warren G. Bennis.

It is clear from these definitions that OD aims at changing the entire organisation so that it can face any kind of further challenges. Characteristics of OD The salient features of OD are given below: 1. Its primary objective is to change the nature of the entire organisation OD brings about changes throughout the organisation so that it can adapt itself better to meet further challenges. 2. It applies the knowledge of the behavioural sciences OD seeks to apply the knowledge of behavioural sciences like psychology, sociology etc., to change the values, beliefs, attitudes, practices and so on. 3. It is systems oriented It makes use of the systems approach. The entire organisation is considered as a system and its various parts as sub-systems. OD is a comprehensive programme that is concerned with the interactions of the various parts of the organisation. It is concerned with the behavioural of employees in different departments and groups. 4. It uses Change Agents OD makes use of one or more change agents who stimulate and co-ordinate the change within a group. Some organisations have their own change agents while others employ consultants from outside. Employing change agents from outside has its own advantages. Such outside consultants will be able to work independently and without consultants will be able to wok

independently and without the influence of the politics in the organisation. 5. It aims at Problem Solving OD seeks to solve the problems rather just discussing these. It trains the individuals to identify and solve organisational problems. This enables the employees to learn from their experiences. In further when such problems arise, they will be able to solve on their own. 6. It emphasises on learning by experience When participants learn by experience, it is sure to produce better results than the conventional lecture approach in which the individuals only hear and talk about abstract theories and concepts. Theory, in doubt, is important. But what is even more important is its application in a real situation. 7. OD strategy is developed with one or more interventions OD recognises the fact that problems may arise at the individual, group or total organisation level. The overall OD strategy is developed with one or more innervations, which are structured activities, deigned to help individuals or groups improve their work effectiveness. 8. It is contingency oriented OD practitioners, usually, do not confine to one option. They consider all the viable alternatives. Objectives of OD The objectives of OD may be stated as follows: 1. To increase openness of communication among the members. 2. To increase the level of trust and support among employees. 3. To enhance the personal enthusiasm and satisfaction levels.

4. To increase the level of individual and group responsibility in planning and implementation. 5. To increase commitment, self-direction and self-control. 6. To encourage the confrontation regarding organisational problems with a view to arriving at effective decisions. 7. To develop strategic solutions to problems with higher frequency. 8. To improve the organisations capability to cope with change. 9. To ensure proper resolution of organisational conflicts. Assumptions in OD The OD programme is subject to the following assumptions: 1. The employees are ambitious. 2. They have greater capabilities. 3. Most employees await the right opportunity to prove their mettle. 4. The groups in the organisational have powerful influence on individual behaviour. 5. Groups are vital to organisational success. 6. The complex roles to be played in groups require skill development. 7. The individual and organisational goals can be compatible. 8. Use of excessive controls can be detrimental to the interests of the organisation.

The OD Process (Steps in OD) The process of OD involves the following stages: 1. Initial diagnosis

2. Data collection 3. Date analysis and review 4. Preparation of Action plans 5. Use of interventions 6. Evaluation and follow-up Initial Diagnosis Once the inadequacies in an organisation are noticed, it is noticed, it is necessary to correct the same. This can be done by means of the OD programme. If the organisation has people who have knowledge of OD activities, the task if planning and executing the OD programme can be undertaken by them. In case, such persons are not available within the organisation, consultants can be employees from outside to diagnose the problem and to prepare the OD programme. These consultants adopt all the necessary methods to diagnose the problem including direct observation, interviewers, analysis of documents and so on.

Data Collection The data necessary for determining the organisational climate and identifying the behavioural problems can be collected by means of the survey method. Such questions as what conditions contribute most to the job effectiveness of individuals and groups and what sort of changes they except for better performance and so on are posed.

Data Analysis and Review After the relevant data have been collected, the next step is to analyse and review the same. This task will be entrusted to various work groups formed for this purpose. During review the work groups mediate the areas of disagreement and establish priorities for change. Preparation of Action Plans At this stage, the work groups prepare the necessary action to solve the specific problems identified. Such plans also fix responsibilities on individuals and groups. Use of Interventions Interventions are the structure activates designed to help individuals and groups improve their work effectiveness. These interventions may take different forms as stated below: (i) (ii) Workshops Group discussions

(iii) Brainstorming sessions (iv) (v) Role-plays Written exercises and so on.

Evaluation and Fellow-up This is the last phase of the OD process. At this stage, the results of OD programme are evaluated. Additional programmes may also be developed to improve results in areas where the progress is not satisfactory. The OD consultants may help the organisation in this regard.

Managerial Grid OD programme is all about changes. It does not contemplate change in the attitudes, beliefs and perceptions of the employee alone. The managers too need to have a balanced outlook towards their employees and their work. A manager who thinks that alone is important may be poor in human relations and on the other hand a manner who has greater concern for his employees may not achieve much by way of work performance. In this context, it is relevant to mention what is called Managerial Grid an idea conceived by Robert R. Blake and Jane S. Mouton. The grid shows on a 9-point scale the relationship between two dimensions concern for people and concern for production. The 1.9 managers have a greater concern for people but a lesser concern for production. The output, as a result, is bound to be low. But human relations are sure to be very good with such a managerial approach. The 1.1 managers neither give importance for production nor for employees. The 9.1 managers attach much importance to production but ignore employees. They are authoritative in their approach. A more desirable balance of the two dimensions is from 5.5 to 9.9. 9.9 level, of course, is the most effective approach.

Evaluation of OD Merits The plus point if OD are given below: 1. OD focuses attention on the whole organisation. It prepares the organisation to face any kind of change in further. 2. The employees are able to work with greater motivation, as the work environment has become conducive for work. 3. When employees work with greater motivation and commitment, there ais bound to be an increase in both production and productivity. 4. As the employees are exposed to better and newer methods of work, the quality of work is sure to improve. 5. Better work environment, better motivation and higher quality of work should result in greater job satisfaction among employees. 6. The overall change brought about by the OD interpersonal also paves way for improves teamwork. 7. With improvement in superior-subordinate and interpersonal relationships, it is also possible to resolve organisational conflicts easily. 8. As the employees have access to everything they wanted they are able to work with their attention focused on the enterprise objective. 9. OD prepares the employees to accept change. Thus, the problem of resistance is overcome. 10. In view of the various benefits of OD mentioned above, the rate of absenteeism turnover and labour turnover is bound to be low.

Demerits Some of the limitations of OD are: 1. OD is an elaborate process. It is, therefore, a time consuming affair. 2. OD contemplates change at the entire organisational level. This it does with the help of consultants employed from outside. Such a mammoth exercise involves heavy financial commitment. 3. The change brought about by OD may not pay rich dividends at once. The benefits of OD will become available to the organisation over a period of time. 4. There is no guarantee that the OD programme will be a cent percent success. There is also a possibility of failure. 5. It may not be possible to measure the benefits of OD programme objectively. 6. Even with a programmed like OD, it may not be possible to change the beliefs, values, sentiments and attitudes of certain individuals and groups .