BHARATI VIDYAPEETH

(Deemed to be University)

SCHOOL OF ONLINE EDUCATION

Name of Student: Sanu Kumar

Date of submission: 28/06/21

Registered Email ID: kumar.sanu568@gmail.com

MASTER OF BUSINESS ADMINISTRATION

BATCH -: JANUARY 2021
SEMESTER - I

Subject: Organizational Behaviour

Topic: Organizational Development

Registration No:
BVP20212891
(Starting with BVP)
ORGANIZATIONAL DEVELOPEMENT

➢ IN WHICH OF THE FOLLOWING SITUATION WOULD

ORGANIZATIONAL DEVELOPMENT TEND TO BE MOST EFFECTIVE
AND WHY?

• TEACHERS OF UNIVERSITY
• MARKETING EXECUTIVES OF HEAVY PLATES AND VESSELS
INDUSTRY
• OFFICERS OF A COMMERCIAL BANK

Organizational Development

Organizational development (OD) is an application of behavioral science to

organizational change. It encompasses a wide array of theories, processes, and
activities, all of which are oriented toward the goal of improving individual
organizations. Generally speaking, however, OD differs from traditional
organizational change techniques in that it typically embraces a more holistic
approach that is aimed at transforming thought and behaviour throughout an entity.
Definitions of OD abound, but they are all predicated on the notion of improving
organizational performance through proactive activities and techniques. It is also
worth noting that organizational development, though concerned with improving
workforce performance should not be mistaken for human resource development.

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Organizational Development Basics

Although the field of OD is broad, it can be differentiated from other systems of

organizational change by its emphasis on process rather than problems. Indeed,
traditional group change systems have focused on identifying problems in an
organization and then trying to alter the behaviour that creates the problem.

OD initiatives focus on identifying the behavioural interactions and patterns that

cause and sustain problems. Then, rather than simply changing isolated behaviours,
OD efforts are aimed at creating a behaviourally healthy organization that will
naturally anticipate and prevent (or quickly solve) problems.

OD programs usually share several basic characteristics. For instance, they are
considered long-term efforts of at least one to three years in most cases. In
addition, OD stresses collaborative management, whereby managers and
employees at different levels of the hierarchy cooperate to solve problems. OD also
recognizes that every organization is unique and that the same solutions cannot
necessarily be applied at different companies—this assumption is reflected in an
OD focus on research and feedback. Another common trait of OD programs is an
emphasis on the value of teamwork and small groups. In fact, most OD systems
use small teams—or even individuals—as a vehicle to implement broad
organizational changes.

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The catalyst—whether a group or individual—that facilitates the OD process is
known as the "change agent." Change agents are often outside consultants with
experience managing OD programs, although companies sometimes utilize inside
managers. The advantage of bringing in outside OD consultants is that they often
provide a different perspective and have a less biased view of the organization's
problems and needs. The primary drawback associated with outside change agents
is that they may lack an in-depth understanding of key issues particular to the
company. In addition, outside change agents may have trouble securing the trust
and cooperation of key players in the organization. For these reasons, some
companies employ an external-internal team approach, which seeks to combine the
advantages of internal and external change agents while minimizing the drawbacks
associated with the two approaches. "Are change agents necessary for
organizational development to take place?" "Once we recognize that organizational
development involves substantial changes in how individuals think, believe, and
act, we can appreciate the necessity of someone to play the role of change agent.
But who should play the role, existing managers or new managers, or individuals
hired specifically for that purpose? Depending upon the situation, any of these can
be called upon to orchestrate the organizational development process. The point is
that the role of the change agent is necessary for organizational development to
occur."

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Managing Change through Organizational Development

Organization development initiatives do not automatically succeed. The benefits of

effective OD programs are myriad, as many executives, managers, and business
owners will attest. But OD interventions that are pursued in a sloppy, half-hearted,
or otherwise faulty manner are far less likely to bring about meaningful change
than those that have the full support of the people involved. Several conditions that
had to be present if an OD intervention could have any meaningful chance of
bringing about the desired change: Ownership and all involved personnel needed to
be genuinely and visibly committed to the effort. People involved in OD have to be
informed in advance of the nature of the intervention and the nature of their
involvement in it. The OD effort has to be connected to other parts of the
organization; this is especially true of such areas as the evaluation and reward
systems. The effort has to be directed by appropriate managers and guided by
change agents (which, if used, must be competent). The intervention should be
based on accurate diagnosis of organizational conditions. Owners and managers
should show their commitment to OD at all stages of the effort, including the
diagnosis, implementation, and evaluation. Evaluation is a key to success, and
should consist of more than asking people how they felt about the effort. Owners
and managers need to show employees how the OD effort relates to the
organization's goals and overriding mission.

According to me, Organizational Development will be most effective in officer of

commercial bank. It can be better explained from the below given example of
organizational development in ICICI Bank.

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By 1994, the impact of the economic reforms initiated by the Narasimha Rao
government were beginning to show, albeit rather slowly. The same year, ICICI
Limited had set up its subsidiary -- ICICI Bank. Two years later, in 1996, Vaghul's
protege K.V. Kamath rejoined ICICI as its new Managing Director and CEO.

Kamath immediately initiated strategic initiatives and structural changes across the
ICICI Group that helped redraw its boundaries and take it to the next level. MD
&CEO, ICICI Bank, K.V. Kamath says, "An organisation, which is 40 years old,
you need to move some people into some positions, in which you think they would
be better off and that's what was on top of my mind."

He introduced flexibility in the bank's functions and shaped them to respond to

new market reactions. The next year, ICICI Bank followed suit and its ADRs made
a debut at $14 on the NYSE, at a premium of over 27% over its issue price of $11.
Most significantly, it acquired Bank of Madhura at a time when its own revenues
stood at Rs 2,500 crore (Rs 25 billion) and that of the bank at Rs 100 crore (Rs
1billion), it was time for the next courageous move.

The entire banking and financial operations of the group was bought under one
roof. It was a reverse merger and quite rare in corporate India, where a parent
company merged with its subsidiary and adopted the later's identity.

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K.V. Kamath explains, "The bank was the entity into which ICICI Ltd went
backwards into. You did not then have to address the issues of regulatory clearance
to do a whole lot of things because the bank already had those approvals and that
facilitated the whole process and that was the critical reason. The other reason to
use this route was to clean up ICICI Ltd at the time of the merger and the only way
we could do it was, if ICICI Bank was the entity into which ICICI Ltd merged."

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Conclusion:

ICICI Bank under the leadership of Mr. K.V. Kamath brought some dynamic
changes in their organization from man management to bringing new innovation to
their organization, which helps ICICI Bank to serve its customer in a better way
and thus helps in expanding its business. Organizational development has taken
place in ICICI Bank in a rapid pace which gave the bank an extra edge over any
other private bank and soon it becomes the India’s largest private bank

Organizational development is essential for every organization. Organizational

change is a ongoing process and must be embedded in the organization and its
interactive sub-system. The challenge today is to create a friendly organizational
responsive to discontinuous and unpredictable change in the environment.
Organization Development is a planned change strategy that aims at improving the
internal capability of an organization to continuously seek to align the individual
organization and environment. Organization research has strong roots in action
research in which organization members identify, diagnose, choose appropriate
intervention and evaluate the outcomes and consequence. The target of change is
the total system or identifiable sub-system. Involvement and support of top
management is considered critical to effective implementation of the
organizational interventions. Organizational development has a strong value
orientation with belief in humanism, democratization, employee participation and
multi dimension approach to individual and organizational effectiveness.

Organizational development will be effective to an extent in the other two

organisations too which are heavy plates and vessel industry and teaching staff of

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university. As Organizational development is essential for every organization.
Organizational change is an ongoing process and must be embedded in the
organization and its interactive sub-system. Organization Development is a
planned change strategy that aims at improving the internal capability of an
organization to continuously seek to align the individual organization and
environment. Organization research has strong roots in action research in which
organization members identify, diagnose, choose appropriate intervention and
evaluate the outcomes and consequence. The target of change is the total system or
identifiable sub-system. Involvement and support of top management is considered
critical to effective implementation of the organizational interventions.
Organizational development has a strong value orientation with belief in
humanism, democratization, employee participation and multi dimension approach
to individual and organizational effectiveness but in both the cases teachers of a
university as well as marketing executives any organization are not at top most
hierarchy level of that particular organisation where as organisational development
takes place at the top management level. Also OD is a long range effort to improve
organization's problem solving and renewal processes, particularly through more
effective and collaborative management of organizational culture, often with the
assistance of a change agent or catalyst and the use of the theory and technology of
applied behavioural science.

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