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LESSON HANDOUT NO 1-
HRMP 7 ORGANIZATION DEVELOPMENT
Topic : Introduction to Organization Development
INTRODUCTION:
Welcome to the world of Organizational Development (OD)!

Everyone has an experience of being part of an

organization. You may have multiple experiences of being in
an organization. Some of these experiences maybe positive or
negative one. . That’s the nature of the world in which we live.
In this course, we will learn the approaches professionals in
the field of OD use to turn negative experiences into positive
ones, and how good OD practice that relies on solid OD theory
can help organizations to be more productive, more satisfying,
and more effective and efficient.

The purpose of OD is to enable an organization to better

respond and adapt to industry/market changes and
technological advances.

The key to organizational development, once the strategy and

goals have been set, is to focus on values.
These values include inclusion and respect, authenticity,
collaboration, empowerment and self-awareness

LEARNING OBJECTIVES:
At the end of the lesson, you should be able to:

1. Define Organizational Development

2. Discuss the historical background of values and statements, assumptions of Organizational
development
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LESSON:

ORGANIZATION
DEVELOPMENT DEFINED
Organization development is both a
professional field of social action and an
area of
scientific inquiry. The practice of OD covers
a wide spectrum of activities, with seem-
ingly endless variations upon them. Team
building with top corporate management,
structural change in a municipality, and job
enrichment in a manufacturing firm are all
examples of OD. Similarly, the study of OD
addresses a broad range of topics, including
the effects of change, the methods of
organizational change, and the factors
influenc-
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ing OD success.
What is an Organization?

The dictionary provides the following formal definition of an organization: a) the act or process of
organizing; the state or manner of being organized: a high degree of organization; b) something that
has been organized or made into an ordered whole; c) something made up of elements with varied
functions that contribute to the whole and to collective functions; an organism; d) a group of persons
organized for a particular purpose; an association: a benevolent organization; e) a structure through
which individuals cooperate systematically to conduct business; the administrative personnel of such a
structure. (American Heritage Dictionary of the English,)

A more informal definition can include any situation in which two or more persons are involved in a
common pursuit or objective. Given the broad-ranging and all-encompassing definitions of
organization, it ieasy to understand the complexity of OD and the large number of situations in which it
can be applied. Now, as you begin to think about your experience in past and cur

What is organizational development?

One of the most frequently cited definitions of OD comes from Richard Beckhard (1969), an early
leader in field of OD:

Organization development is an effort planned, organizationwide, and managed from the top,
to increase organization effectiveness and health through planned interventions in the
organization’s “processes,” using behavioral-science knowledge.

Also, Organizational development is a critical and science-based process that helps organizations build their
capacity to change and achieve greater effectiveness by developing, improving, and reinforcing strategies,
structures, and processes.

Beckhard’s definition has many points that have survived the test of time, including his emphasis on
organizational effectiveness, the use of behavioral science knowledge, and the inclusion of planned
interventions in the organization’s functions. Some critique this definition, however, for its emphasis on planned
change (many organizational changes, and thus OD efforts, are in response to environmental threats that are
not so neatly planned) and its emphasis on the need to drive organizational change through top management.
Many contemporary OD activities do not necessarily happen at the top management level, as increasingly
organizations are developing less hierarchical structures.
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A more recent definition comes from Burke and Bradford (2005):

‘Based on (1) a set of values, largely humanistic; (2) application of the behavioral sciences; and (3) open
systems theory, organization development is a systemwide process of planned change aimed toward
improving overall organization effectiveness by way of enhanced congruence of such key organizational
dimensions as external environment, mission, strategy, leadership, culture, structure information and reward
systems, and work policies and procedures. (p. 12)

There are a few elements in this definition (adapted from Cummings & Worley, 2009) that stand out.
 Critical and science-based process. OD is an evidence-based and structured process. It is not about
trying something out and seeing what happens. It is about using scientific findings as input and creating
a structured and controlled process in which assumptions are tested. Lastly, it is about testing if the
outcomes reflect the intention of the intervention.
 Build capacity to change and achieve greater effectiveness. Organizational development is aimed
at organizational effectiveness. It, therefore, has a number of (business) outcomes. These can differ
between organizations, but usually, they do include financial performance, customer satisfaction,
organizational member engagement, and an increased capacity to adapt and renew the organization.
These are not always clear-cut. Sometimes it is about building a competitive advantage, in whichever
way that is defined. We will explore these outcomes later in this article
 Developing, improving, and reinforcing strategies, structures, and processes. The last part of our
definition states that organizational development applies to changes in strategy, structure, and/or
processes. This implies a system-approach, where we focus on an entire organizational system. This
can include the full organization, one or more locations, or a single department.

Organizational design has become more crucial over time. Today’s world is characterized by Volatility,
Uncertainty, Complexity, and Ambiguity (VUCA). This VUCA world requires new agility from organizations, and
organizational development is the means to that end.

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The Goals Of Organizational Development

We already briefly touched on the goals of organizational development. The goals differ per organization.
Goals can include increasing profits, profit margins, market share, moral and/or cultural values, and the
general adaptability (or agility) of the organization.

If there would be one central goal, it would be increasing the organization’s competitiveness.

Competitiveness is the idea that every organization has unique resources and competencies that help the firms
to win in the marketplace. This can be the people (a business leader like Elon Musk, or the Google team), an
innovative product (Space X), superior service (Four Seasons Hotels), or culture (Zappos). It can also be how
reactive the organization is to changing market demands. If you’re the first to capitalize on an opportunity, for
instance, it may solidify your revenue in the next five years. 

The goal of OD is to develop these aspects, as they can help a business win in the marketplace.

This means that organizational development differs from the incidental change process. OD focuses on
building the organization’s ability to assess its current functioning and tweak it to achieve its goals. It is,
therefore, a continuous process, whereas change processes are often temporarily.

GENERALIZATION:

Organization Development is a system-wide process of planned change aimed toward improving

overall organization effectiveness by way of enhanced congruence of such key organizational dimensions as
external environment, mission, strategy, leadership, culture, structure, information and reward systems, and
work policies .OD is the practice of planned, systemic change in the beliefs, attitudes and values of employees
for individual and company growth. The purpose of OD is to enable an organization to better respond and
adapt to industry/market changes and technological advances.

REFERENCES:
1. Organization Development Principles, Processes, Performanceby Gary N. McLean Autor Gary N.
McLean
2. Organization Development -The Process of Leading Organizational Change,Donald L. Anderson, 4th
Edition