Evolution of Organization Structure, Theory & Design: DR Debasis Dash

JBIMS-MHRD Nov-Dec 2022 - Jan 2023
Evolution of
Organization
Structure, Theory &
Design
Dr Debasis Dash
JBIMS-MHRD
Faculty - Dr Debasis Dash 1

Evolution Theory
Design Environment
Organization
Design
Determinants &
Parameters
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Unit-III: Evolution of Organizational Theory and Design JBIMS-MHRD
Dr Debasis Dash

Topics: Unit-III
 Organizational Culture & Ethical Values  Unit-I
 Unit-II
 Organizational Failure and Pathology
 Unit-III
 Organizational Change & Development  Unit-IV
 Organizational Learning and Transformation
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Unit-III Evolution of Organizational Theory and Design JBIMS-MHRD
Dr Debasis Dash

Organizational Culture &

Ethical Values
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Organizational Culture
 Social Capital (Goodwill):
 Refers to the quality of interactions among people and whether
they share a common perspective.
 In organizations, with a high degree of social capital, people
(inside and outside the organization) cooperate and coordinate
their activities to achieve organizational goals.
 In such organizations relationships are based on;
- trust,
- mutual understanding,
- shared norms,
- values
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 Culture:
 Refers to the set of values, norms, guiding beliefs, and
understandings that is shared by members of an organization and
are taught to new members.
 Organizational culture operates on two levels:
- Visible artefacts and observable behaviour: ceremonies,
stories, slogans, behaviour, dress code, and physical settings.
- Values in the minds of organization members: underlying
values, assumptions, beliefs, attitudes, and feelings.
 These form the true culture
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 Culture:
 Simply, it is the way you do things. E.g.,
 To what degree do executives tolerate mistakes?
 How much and what type of financial information is shared?
 To what degree do employees trust management?
 How do people communicate?
 What performance is rewarded?
 Where does the real power lie?
 What is the dress code?
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Video on Supervision and Employee Behaviour

 Emergence and Purpose of Culture:
 Provides members with a sense of organizational identity
 Generates in them a commitment to beliefs and values that are
greater than themselves.
 Begins with a founder or early leader who articulates and
implements ideas and values as a vision, philosophy or business
strategy.
 When these ideas and values lead to success, they become
institutionalized.
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Shared Value Harder to
Invisible E.g., Care for Customers Change
Group Behavior Easier to

Visible Quick Response to Customer Needs Change
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 Two Critical Functions Served by Culture:
 Internal integration:
- to integrate members so that they know how to relate to one
another;
 External adaptation:
- to help the organization adapt to the external environment.
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 Interpreting Culture: Identifying and interpreting culture requires
that people make inferences based on observable artefacts.
 Rites and ceremonies
 Culture of discipline
 Symbols
 Language
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 Rites and Ceremonies:
 Important artefacts for culture.
 Elaborate, planned activities that make up a special event and
are often conducted for the benefit of an audience.
 Four types of rites that appear in organizations are:-
Type of Rite Example Social Consequences
Rites of passage Induction and basic Facilitate transition of persons into social roles and
(passage new function) Training in the armed forces statuses that are new for them.
Rites of enhancement Enhance social identities and increase status of
Annual awards night
(prestige) employees
Organization Refurbish social structures and improve organization
Rites of renewal
development parties functioning
Office holiday party, Encourage and revive common feelings that bind
Rites of integration
cheering members together and commit them to the organization
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Org. Culture – Founder’s Belief & Philosophy

McDonald – Ray Kroc ‘s philosophy of fast food experience
Hallmark – Joyce Hall - good taste is good business
Walt Disney - family entertainment
Wal-Mart- Sam Walton – How the employees and customers
should be treated.
Bill Hewlett & Dave Packard – focus on Innovation.
Sony – Akito Morita – Discovering the needs of customers
Southwest Airlines - Herb Kelleher – employee fun at work
as a route to customer satisfaction
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Org. Culture – Founder’s Belief & Philosophy
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Video

 Need for Champions:
 Culture improvement is like any other change, as it requires
champions.
 The champion needs to be someone who is passionate about
creating a new culture.
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 Keys to Cultural Change:
1. Understand your old culture
2. Encourage innovative employees
3. Promote the best subcultures
4. Don’t confront culture directly
5. Live the culture you want
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 Move Towards Empowerment:
From To
Powerless……………………….. empowered
Waiting for orders…………… taking actions
Doing things right…………… doing right things
Blaming………………………..… problem-solving
Boss responsible……………. all responsible
Reactive……………………..……creative
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How to Create an Empowered Org. Culture?

Step-1
-Develop a corporate philosophy that fosters respect
for human dignity, ingenuity, and potential.
Step-2
- Create a job-secure environment where people are
not afraid to take risks and fail.
Step-3
-Create communication systems that provide
opportunities for employee input.
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How to Create an Empowered Org. Culture?

Step-4
- Incorporate pay-for-performance programs that reward
productivity at all levels.
Step-5
- Give awards and recognition for individual and team
quality efforts.
Step-6
- Promote career opportunities and encourage promotion
from within.
Step-7
- Redesign jobs to increase employee power.
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 Pay attention to corporate culture.

 Understand the underlying values,
assumptions, and beliefs on which culture is
based as well as its observable manifestations.
 Evaluate corporate culture based on rites and
ceremonies, stories and heroes, symbols and
language.
Discussion
1
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 Culture of Discipline:
 According to Collins, this defines truly great companies.
 Some of the key factors are:-
- Level 5 leadership: Have an almost complete lack of ego, selfishness,
greed and arrogance and a strong will and ambition for the success of
the organization.
- The right values: Individual freedom and responsibility within a
framework of organizational purpose, goals, and systems.
- The right people in the right jobs: self-disciplined people, determined,
diligent, precise, systematic, consistent, focused, accountable and
responsible.
- Knowing where to go: knowing what they do best, are passionate
about, and what makes economic sense for the organization. 22
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 Symbols:
 Is something that represents another thing.
 In one sense, ceremonies, rites, stories and slogans are all
symbols.
 The physical artefact is also a symbol and focuses attention on
a specific item.
 Language:
 Many companies use a specific saying, slogan, metaphor or
other forms of language to convey a special meaning to
employees
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Organizational Design and Culture

 Dimensions of Culture:
 Corporate culture should reinforce the strategy and structural
design that the organization needs to be effective within its
environment.
 The dimensions are;
1. The adaptability culture
2. The mission culture
3. The clan culture
4. The bureaucratic culture
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1. Adaptability Culture:
 Characterized by strategic focus on the external environment
through flexibility and change to meet customer needs.
 This type of company actively creates change.
 Innovation, creativity and risk-taking are valued and rewarded.
 Most e-commerce companies, as well as companies in the
marketing, electronics and cosmetics industries, use this type of
culture because they must move quickly to satisfy customers
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2. Mission Culture:
 Characterized by an emphasis on following to help achieve the
purpose;
- a clear vision of the organization’s purpose.
- goals achievement (sales growth, profitability, market share).
 Suitable for an organization concerned with serving specific
customers in the external environment but without the need for
rapid change.
 In some cases, the mission cultures reflect a high level of
competitiveness and a profit-making orientation.
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3. Clan Culture:
 Has a primary focus on the involvement and participation of
the organization’s members and on rapidly changing expectations
from the external environment.
 This culture focuses on the needs of employees as the route to
high performance in fashion, retail etc.
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4. Bureaucratic Culture:
 Has an internal focus and a consistent orientation for a stable
environment.
 Personal involvement is lower, but that is outweighed by a high
level of consistency, conformity & collaboration among members.
 Companies that follow this culture may have difficulties
keeping pace with the demands of the external environment.
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 Culture Strength:
 Refers to the degree of agreement among members of an
organization about the importance of specific values.
 If widespread consensus exists, the culture is cohesive & strong.
 A strong culture is typically associated with the frequent use of
ceremonies, symbols, stories, heroes and slogans.
 Employees are selected and socialized.
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 Organization Sub-culture:
 Develop to reflect the common problems, goals and
experiences that members of a team, department, or another
unit share.
 An office, branch, or unit of a company that is physically
separated from the company’s main operations may also take on
a distinctive subculture.
 Subcultures typically include;
- the basic values of the dominant culture.
- additional values unique to members of the subculture.
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 Make sure corporate culture is consistent with

strategy and the environment.
 Culture can be shaped to fit the needs of
both.
 Four types of culture are adaptability culture,
mission culture, clan culture and bureaucratic
culture.
Discussion
2  Consciously manage culture to shift values
toward high performance and goal
accomplishment.
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 Adaptive and Non-Adaptive Corporate Culture:
 A strong culture that encourages constant adaptation and
change enhances organizational performance (aligning everyone’s
actions with strategic priorities) by;
- energizing and motivating employees
- unifying people around shared goals
- a higher mission
- shaping and guiding employee behaviour
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 Creating and influencing an adaptive culture is one of the most
important jobs for organizational leaders.
 Non-adaptive cultures encourage rigidity and stability.
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 Strong Adaptive Culture: Often incorporate the following values:
1. The whole is more important than the parts, and boundaries
between parts are minimized.
- people are aware of the whole system.
- although subcultures may form,
- the organization’s dominant culture is reflected by;
- everyone’s primary attitudes & behaviours.
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 Strong Adaptive Culture: Often incorporate the following values;
2. Equality and trust are primary values.
- The culture creates a sense of community and caring for one
another.
- Honest and open communication is a way to build trust.
3. The culture encourages risk-taking, change, and improvement.
- A basic value is to question the status quo.
- The culture rewards and celebrates the creators of new ideas,
products and work processes.
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Adaptive Corporate Culture Non-adaptive Corporate Culture
• Managers care deeply about • Managers care mainly about themselves,
customers, stockholders and their immediate work group or some product/
Core employees. technology associated with that workgroup.
Values • They also strongly value people and • They value orderly and risk-reducing
processes that can create useful management processes much more highly
change. than leadership initiatives.
• Managers pay close attention to all • Managers tend to be somewhat isolated,
their constituencies, especially political and bureaucratic.
Common customers. • As a result, they do not change their
Behaviour • They initiate change when needed strategies quickly to adjust to or take
to serve their legitimate interests, advantage of changes in their business
even if it entails taking some risks. environment.
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Adaptive Culture Non-Adaptive Culture

 Ensures risk-taking,  Highly bureaucratic
trusting, proactive
 People are reactive, risk-averse,
approach
and not very creative
 Members are receptive
 Emphasis on control dampens
to change & innovation
motivation and enthusiasm
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 Ethical Values and Social Responsibility:
 Ethics is the code of moral principles and values that governs
the behaviours of a person or group with respect to what is right
or wrong.
 Ethical values set standards as to what is good or bad in
conduct and decision-making.
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 Ethical Values and Social Responsibility:
 Individual ethics and actions:
- First, historical influences like national culture, religion,
philosophy and geographical environment exist.
- History leads to the development of societal morality with its
norms and values, laws, codes and regulations.
- Society shapes the local environment, which concerns
organizations, families etc.
- The local environment shapes individual behaviour.
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 To support a learning orientation, emphasize

cultural values of openness and collaboration,
equality and trust, continuous improvement, and
risk-taking.
 Build a strong internal culture that encourages
adaptation to change environmental conditions.
 Take control of ethical values in the organization.
Discussion Ethics is not the same as following the law.
3  Ethical decisions are influenced by management’s
personal background, organizational culture and by
organizational systems 40
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 Managerial Ethics and Social Responsibility:
 Rule of Law
 Managerial Ethics
 Social Responsibility
 Ethical Dilemma
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 Rule of Law
- Arises from a set of codified principles and regulations
- That describes how people are required to act, that is
generally accepted in society, and that is enforceable in the
courts.
- Ethical standards, for the most part, apply to behaviour not
covered by the law, and
- The rule of law applies to behaviours not necessarily covered
by ethical standards.
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 Managerial Ethics
- principles that guide the decisions and behaviours of
managers with regard to whether they are right or wrong
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 Social Responsibility
- Is an extension of this idea.
- Refers to management’s obligation to make choices and take
action so that the organization contributes to the welfare and
interest of all organizational stakeholders.
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 Ethical Dilemma
- Arises in a situation concerning right and wrong in which
values are in conflict.
- Studies have provided varying results, but
- Generally have found that there is a small positive
relationship between ethical & socially responsible behaviour
and financial results
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 Sources of Ethical Values in Organizations: Forces that shape
managerial ethics, dealing with the question of decisions and
behaviour are ethical and socially responsible:
1. Personal ethics – beliefs and values, moral development,
ethical framework.
2. Organizational culture – rituals, ceremonies, stories, heroes,
language, slogans, symbols, founder, history.
3. Organizational System – structure, policies, rules, code of
ethics, reward system, selection, training.
4. External Stakeholders – government regulations, customers,
special interest groups, global market forces. 46
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 Value-Based Leadership:
 The relation between the leader and followers that is based on
shared, strongly internalized values that are advocated and acted
upon by the leader.
 Value-based leadership develops and strengthens organizational
values.
 Leaders must formulate and communicate a clear vision.
 Managers should remember that every statement and action
has an impact on culture and values.
 Value-based leaders engender a high level of trust and respect
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Leaders Can Shape Values
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Video


 Tools Leaders Can Use to Shape Values:
1. Structure
2. Disclosure mechanisms
3. Code of ethics
4. Training programs
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1. Structure:
 For instance, introducing an ethics committee, a cross-
functional group of executives overseeing company ethics.
 Provides ruling on ethics.
 Ethics departments are headed by a chief ethics officer, a
high-level company executive overseeing all aspects of ethics.
 Ethics offices have confidential ethics hotlines.
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2. Disclosure mechanisms:
 Organizations can establish policies and procedures to support
and protect whistle-blowers.
 Create an environment in which;
- employees feel free to point out problems.
- managers take swift action to address concerns about
unethical or illegal activities.
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3. Code of ethics:
 a formal statement of the company’s values concerning ethics
and social responsibility.
4. Training programs:
 to ensure that ethical issues are considered in daily decision-
making.
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 Corporate Culture and Ethics in a Global Environment:
 The greater complexity of the environment and organizational
domain create a greater potential for ethical problems or
misunderstandings.
 Corporate culture and national culture are often intertwined.
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 Corporate Culture and Ethics in a Global Environment:
 Specific components that characterize a global culture include;
- an emphasis on multicultural rather than national values,
- basing status on merit rather than nationality,
- being open to new ideas from other cultures,
- showing excitement rather than trepidation when entering new
cultural environments,
- being sensitive to cultural differences without being limited to
them.
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 Social Audit:
 One of the most useful mechanisms for building global ethics.
 It measures and reports the ethical, social and environmental
impact of a company’s organization.
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Video

 How leaders shape culture and ethics:

 Managers signal and implement values
through leadership as well as through the
formal system of the organization.
 Act as a leader for the internal culture and
Assignment ethical values that are important to the
1 organization.
 Influence the value system through value-
based leadership, including the use of
ceremonies, slogans, symbols and stories.
 Communicate important values to employees
to enhance organizational effectiveness, and
remember that actions speak louder than
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Unit-III: Evolution of Organizational Theory and Design words.
Dr Debasis Dash JBIMS-MHRD

Organizational Learning
& Transformation
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 Let’s Discover-
 What is organizational learning?
 What is organizational learning theory?
 Why is organizational learning important?
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 What is Organizational Learning?
 The process by which an organization improves itself over time;
- through gaining experience and,
- using that experience to create knowledge,
- the knowledge created is then transferred within the org.
 There are three main actions to consider:
• Conceive
• Act
• Reflect
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What is Organizational Learning?

Organizational learning is important for all companies, as the creation, retention
and transfer of knowledge within the organization will strengthen the organization
as a whole.
An idea or product is conceived, the company creates the idea or product, then
the company must reflect. It is through this reflection of both process and
outcome that learning will occur. In addition to those actions, there are three key
processes that occur in organizational learning:
•Knowledge creation
•Knowledge retention
•Knowledge transfer
It is important that the organization ensures that the knowledge gained from this
process is retained within the organization and is transferable. Knowledge
retained by individuals cannot be properly retained, as individuals can leave,
taking their knowledge with them. Embedded knowledge can be kept within the
organization and shared with all individuals.
To define organizational learning is to understand the importance of creating a
learning culture within an organization. This type of learning benefits both
individuals, teams, and the organization as a whole. There are also positive intra-
organizational benefits to this approach.

 What is Organizational Learning Theory?
 Focuses on the creation of knowledge and the use of that
knowledge within an organization.
 Key aspects of organizational learning theory are that learning
happens when people interact while finding and solving problems.
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 What is Organizational Learning Theory?
 Stresses the importance of developing a learning culture within
an organization.
 The organizations should:
• Develop a culture that prizes knowledge sharing
• Take time to learn the lessons that failure can teach
• Encourage employees of all levels to engage in lifelong learning
• Allow individuals and teams to challenge the status quo of the
organization
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 Why Organizational Learning Important?
 For the following benefits:
1. Increased employee job satisfaction
2. Lower turnover rates
3. Increased productivity, profits and efficiency
4. Developing leaders at all levels
5. Enhanced adaptability throughout the organization
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Why Organizational Learning Important?

When organizations dedicate time and resources to developing a learning culture
and implementing organizational learning, they are more competitive.
This increased ability to react quickly to fast-changing market conditions is just
one of the reasons why organizational learning is important.
An organization that embraces the lessons that can be learned from failure and
study its own processes will be an organization that contains more knowledge
about best practices and will be much more able to adapt.
By creating the basis for continuous learning where all employees are teachers
and students, there is an equal exchange of information that allows each person
to contribute in a substantial manner.

Organizational Change &

Development
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Organizational Change & Development

 Learning Goals (Contd.):
 Discuss the pressures on managers to change their
organizations
 Describe different types of organizational change
 Explain the phases and targets of planned organizational
change
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 Learning Goals:
 List some reasons for resistance to change in organizations
 Describe the organizational development techniques
managers can use to change their organizations
 Understand some international aspects of organizational
change and development
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 Topics:
 Introduction
 Forces For and Against Change
 Unplanned and Planned Organizational Change
 Targets of Organizational Change
 Planned Organizational Change
 Resistance to Change
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 Topics (Contd.):
 Organizational Development
 International Aspects of Organizational Change and
Development
 Ethical Issues About Organizational Change and Development
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 Introduction:
 Organizational change involves movement from the present
state of the organization to some future or target state
 Future state can include;
- a new strategy,
- new technology,
- changes in the organization’s culture
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 Introduction (contd.):
Organizational change:
Moving from the present state of the organization to
some future or target state.
A Time A’
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 Introduction (Contd.):
 Many sources of pressure on managers to change their
organizations exist and will continue in the future
 Identify the pressures on organizations and their managers
to change
 Want to know the probable effects on you as a member of a
changing system
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 Introduction (Contd.):
 Know how to deliberately change an organization
 Understand the sources of resistance to change
 Learn how to manage the change process to reduce
resistance
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 Forces For and Against Change:
 External forces for change -
• Competitors and markets
• Acquisition threats
• International: global markets
• Workforce diversity
• Quality management
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 Forces For and Against Change (Contd.):
 Internal forces for change -
• High dissatisfaction
• Felt stress
• Loss of control of processes
• Dysfunctional high conflict
• Slow decision making
• High turnover and absenteeism
• Communication dysfunctions
Unit-III: Evolution of Organizational Theory and Design
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 Forces Against Change (Contd.):
 Internal - resistance to change from individuals and groups
 External - special interest groups such as consumer groups
and unions
View the forces for and against change as a force field

working on the organization
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 Forces Against Change (Contd.):
A Force Field
Present state of Desired state of
the organization the organization
Forces for change Forces against change
A Time A’ 77
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 Unplanned & Planned Organizational Change:
 Unplanned organizational change
- Forces for change overwhelm resistance to change
 Planned organizational change
- A deliberate, systematic change effort
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 Unplanned & Planned Organizational Change (Contd.):
 Unplanned organizational change -
- Forces for change overwhelm resistance to change
- Usually unexpected
- Chaotic, uncontrolled change effects
- Example: economic changes leading to reductions in
workforce
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 Planned organizational change -
- A deliberate, systematic change effort
- Change organizational design, information systems, job
design, and people’s behavior
- Although managers try to follow a plan, the change does
not always move smoothly
- The change effort often hits blockages, causing managers to
rethink their goals and plan
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 Planned organizational change (contd.) -
- Phases
• Define the desired future state of the organization
• Diagnose the present state of the organization
• Move the organization to the desired future state
- A change agent helps managers to bring about planned
change. An external or internal consultant
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 Targets of Planned Organizational Change:
 Organizational culture
 Decision processes
 Communication processes
 Job design
 Organizational design
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 Targets of Planned Organizational Change (contd.):
 Technology
 Strategy
Managers should choose the target only after

careful assessment of the current state of the organization
and the need for change.
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 Targets of Planned Organizational Change (contd.):
A model for thinking about planned organizational change
Targets
External
Strategy Mission
environment Culture
Technology
Organizational design
Job design
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 Planned Organizational Change:
 Reasons include;
- Managers react to environmental shifts
- They anticipate the future state of the external
environment
- Often a difficult task.
- As noted by an organizational change scholar, “planned
organization change is messy and never as clear as we have
written in our books and articles.”
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 Planned Organizational Change (contd.):
 Different Models are;
 Evolutionary model
• Incremental change
• Example: changing the organization’s pay scale to stay
market competitive
 Revolutionary model
• Change many parts of an organization
• Example: strategic shift
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 Evolutionary model of organizational change -
• Three phases with no distinct boundaries.
• Each phase blends into the next phase.
• A manager or other change agent develops a need for
change among those affected.
• The change agent then tries to move the organization or
part of it toward the changed state.
• The change agent tries to stabilize the change and make it
a part of the organization.
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 Evolutionary model of organizational change (contd.)-
• Sees change happening in small bits that add to a total
amount of change
• Unexpected events can occur along the way, forcing a
return to an earlier phase
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 Revolutionary model of organizational change -
• Organizational change unfolds over long periods of stability
followed by bursts of major change activities
• Uses three concepts;
 Equilibrium period: organization moves steadily toward
its mission and goals
 Revolutionary period: a major change in the strategic
direction of the organization
 Deep structures: enduring features of the organization
that let it succeed 89
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 Revolutionary model of organizational change (contd.) -
• Two events trigger a revolutionary period;
 Dissatisfaction with the organization's performance
 Strong feelings among organization members that it is
time for change
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• Dissatisfaction with the organization's performance
 Misfit between the organization’s deep structure and its
current environment
 Follows a clear organizational failure or when many
believe failure is imminent
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• Strong feelings among organization members that it is time
for a change;
 Organization members feel uneasy with the current
equilibrium period
 Develop feelings of little forward movement
 Characterizes organizations that must shift direction
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 Resistance to Change:
 No matter what the target, changes affect the social system
of an organization
People develop long-standing, familiar patterns of social
interaction
Strong resistance develops when organizational change
affects these social networks
93
Dr Debasis Dash


 Resistance to Change (Contd.):
 Resistance can take many forms;
• Lack of cooperation with the change effort
• Sabotage of the change effort
• Dysfunctional high conflict levels
94
Dr Debasis Dash


 Reasons for resistance to change;
• Perceive the loss of something valued, such as social status
• Misunderstand the goal of the change
• Distrust the change agent
• No common perception of the value of the change
• Low tolerance for change
95
Dr Debasis Dash


 Manager’s orientation to resistance to change;
• Problem to overcome
- Forcefully reduce resistance
- Can increase resistance
• Signal to get more information
- Affected targets may have valuable insights into the
change’s effects
- Change agents can involve the targets in diagnosing the
reasons for the resistance 96
Dr Debasis Dash


 Manager’s orientation to resistance to change (contd.);
• Absence of resistance
- Also a signal to get more information
- Low commitment to the change can make the change less
effective
- Resisters can focus the change agents on potentially
dysfunctional aspects of a proposed change
97
Dr Debasis Dash


 Managing the change process to reduce resistance;
• Use change agents with characteristics similar to the
change target
• Use dramatic ceremonies and symbols to signal
disengagement from the past
• Widely communicate information about the change
98
Dr Debasis Dash


 Managing the change process to reduce resistance (contd.);
• Involve those affected by the change
• Commit enough resources
• Negotiation may be necessary when a powerful person or
group is a potential source of resistance
99
Dr Debasis Dash


 Managing the change process to reduce resistance (contd.);
• Cooptation: a political tactic that aims to gain the
endorsement of the change from important individuals or
groups
• Sometimes no choice other than to force change onto the
target system
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Dr Debasis Dash

Organizational Development (OD)

 OD is a long-term, systematic, and prescriptive approach to
planned organizational change
 Although OD uses a system-wide view, it can focus on single
subsystems of an organization
 OD applies the theories and concepts of the social and
behavioral sciences to organizational change
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Dr Debasis Dash

Organizational Development
 Organizational Development (OD);
 OD is a long-term, systematic, and prescriptive approach to
planned organizational change
 Although OD uses a system-wide view, it can focus on single
subsystems of an organization
 OD applies the theories and concepts of the social and
behavioral sciences to organizational change
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Dr Debasis Dash

 Phases of Organizational Development (OD);
 Organizational development unfolds in a series of phases
- Entry
- Contracting  These are phases, not steps,
because no clear boundaries
- Diagnosis exist between them
- Feedback  Phases can repeat. For
- Planning the change example, during the evaluation
phase, managers may discover a
- Evaluation need for more data from the
- Termination diagnosis stage
103
Dr Debasis Dash

Phases of OD
 Entry;
 First contact of the consultant with the client
 Usually client initiates contact
 Building a client-consultant relationship
 Mutual evaluation of each other
 Decide they can develop a compatible working relationship
104
Dr Debasis Dash

Phases of OD (Contd.)
 Contracting;
 Develop an agreement between the consultant and the client
 Can range from an oral agreement to a legally binding
agreement
 Describes mutual expectations and each party’s duties
 Not static. Subject to renegotiation as the organizational
development program unfolds
105
Dr Debasis Dash

 Diagnosis;
 Consultant gets information about the client system and
diagnoses its current state
• Observe the client’s behavior and reactions
• Observe the physical characteristics of a system
• Systematic data collection using surveys, interviews, and
company records
 Consultant summarizes this phase’s results for feedback to
the client system
Unit-III: Evolution of Organizational Theory and Design
106

 Feedback;
 Consultant has a series of feedback meetings with client
system members
 The number of meetings varies according to the scope of the
organizational development program
 Several steps:
1. consultant’s analysis;
2. discussion;
3. consultant’s preliminary diagnosis
4. actively work with members of the client system to arrive
at a collaborative diagnosis 107
Dr Debasis Dash

 Planning the change;
 A collaborative activity between the consultant and client
system
 Identify alternative courses of action and the effects of each
 Lay out the steps in the change program
 Client decides the nature of the change program--not the
consultant
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Dr Debasis Dash

 Intervention;
 Collaborative intervention to move the client system to the
desired future state
 Includes job and organizational design changes, conflict
reduction programs, and the like.
 Consultant’s role: help the intervention and forecast
dysfunctional results
 Earlier client involvement helps reduce resistance to change
in the intervention phase
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Dr Debasis Dash

 Evaluation;
 Focuses on whether the organizational development effort
had the desired effect
 Ranges from simply asking how the client feels to a well-
designed research effort
 Done independently of the consultant
 Should also give the client system information about the next
steps to take
110
Dr Debasis Dash

 Termination;
Ends at some point
• Client terminates consultant
• As the client system changes and develops, the external
consultant reduces the involvement
 Internal consultants are part of the organization and can
continue contact
 The goal is the independence of the client system from the
consultant. Build client system self-reliance
111
Dr Debasis Dash

OD Interventions
 Many interventions exist for organizational development
programs:-
 Human process interventions
 Structural and technological interventions
 Human resource management interventions
 Strategy interventions
 Systematic techniques are drawn from the behavioral sciences.
112
Dr Debasis Dash

OD Interventions (Contd.)
 Human process interventions
 Focus on interpersonal, intra-group, and intergroup processes
 Includes conflict, communication and decision making
 Goal: improve human processes to get more effective
organizational functioning
113
Dr Debasis Dash

114
Dr Debasis Dash
Video
Group Dynamics-Forming, Storming, Norming, Performing, & Adjourning (Movie-
Fellowship of The Ring)

 Structural and Technological Interventions
 Focus on organizational design, job design, and the addition
of new technology
 New technology focuses on improving organizational
processes
 Goal: improve human productivity and organizational
effectiveness
115
Dr Debasis Dash

 Human Resource Management Interventions
 Draws on the human resource management or personnel
practices of an organization
 Includes motivation and rewards, career planning and
development, and stress management
 Goal: change individual behavior and performance to get
improved organizational effectiveness
116
Dr Debasis Dash

 Strategy Interventions
 Changes in an organization’s strategic position to better align
it with the external environment
 Includes changes in the organization’s culture to create values
and beliefs more congruent with the new environment
 Goal: strategic shifts to gain competitive advantage
117
Dr Debasis Dash

• Multiple interventions have the strongest effects
• Structural/technological interventions and human resource
management interventions had the strongest effects
• Effects are stronger in small organizations than in large
organizations
• Survey feedback has weaker effects than other interventions
118
Dr Debasis Dash

International Aspects - Organizational Dev.(OD)

• Intellectual roots of OD are mainly in the United States, England,
northern Europe, and Scandinavia.
• Values and assumptions of OD consultants likely reflect these
cultural values.
• Nature of interventions also reflects these cultural values.
119
Dr Debasis Dash


 Cultural differences and effect of OD approaches;
 Latin American workers often accept a directive management style
 France and Italy: view organizations as hierarchical systems that
use power and political behavior
 Sweden and the United States: view organizations as less
hierarchical
 Conflict management approaches vary depending on the tolerance
of uncertainty
 Tend to use nonconfrontational approaches to conflict reduction
120
Dr Debasis Dash


 Ethical dilemmas can undermine an OD effort;
 Misrepresentation of consultant’s capabilities, skills, or
experience
 Misrepresentation of client’s problems
Data confidentiality and voluntarism in providing data
Full awareness of and consent to the behavioral changes asked
of participants
121
Dr Debasis Dash

Thank you
Dr Debasis Dash
dashdebasis76@gmail.com
+(91)8019126104

Evolution of Organization Structure, Theory & Design: DR Debasis Dash

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JBIMS-MHRD Nov-Dec 2022 - Jan 2023

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 Organizational Learning and Transformation

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Organizational Culture &

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Video on Supervision and Employee Behaviour

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Group Behavior Easier to

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Org. Culture – Founder’s Belief & Philosophy

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Org. Culture – Founder’s Belief & Philosophy

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1. Understand your old culture

2. Encourage innovative employees

3. Promote the best subcultures

4. Don’t confront culture directly

5. Live the culture you want

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How to Create an Empowered Org. Culture?

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How to Create an Empowered Org. Culture?

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 Pay attention to corporate culture.

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Organizational Design and Culture

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Organizational Design and Culture

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Organizational Design and Culture

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Organizational Design and Culture

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Organizational Design and Culture

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Organizational Design and Culture

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Organizational Design and Culture

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 Make sure corporate culture is consistent with

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Organizational Design and Culture

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Organizational Design and Culture

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Organizational Design and Culture

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Organizational Design and Culture

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