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Organizational Development

Amit Sharma Business Analyst B. Tech, MBA, PGDM, SAP (HR/HCM),

1. 2. 3.


Books to be Read: Organization Development French & Bell Organization Development V. G. Kondalkar Organization Development & Change Cummings & Worley Organizational Development & Transformation- French, Bell & Zawacki

Organizational Development or O.D. is a planned effort initiated by process specialists to help an organization develop its diagnostic skills, coping capabilities, linkage strategies( in the form of temporary and semi-permanent systems) and a culture of mutuality. A planned effort thinking and planning initiated by process specialists Diagnostic skills- data collection-overtime Coping capabilities-problem-solving,confront and cope Linking strategies-Indl.& Organl. Goals Culture of Mutuality-OCTAPACE-fostering of certain values and open and proactive systems viz. openness,confrontation, trust, authenticity,pro-activeness, autonomy, collaboration and experimentation.

Definition of Edgar Schein

An organization is the planned coordination of the activities of a number of people for the achievement of some common explicit purpose or goals through the division of labour and function, and through a hierarchy of authority and responsibility. Development is the act, process, result or state of being developed-which in turn means to advance, to promote the growth of, to evolve the possibility of, to further, to improve or to enhance something Two elements stand out viz. (a)Development may be an act, process or an end state (b)Development means bettering something O. D. is the act, process or result of furthering,advancing, or promoting the growth of an organization

The O. D. Approach to Change treats the organization as a system.

A system is an orderly group of logically related parts, principles and beliefs. Alternatively, it is a grouping or arrangement that relate or interact with each other in such a way as to form a whole.

Thus this approach has the following characteristics:

(a) Total view not a limited view (b) Relationship between the Orgn. and the environment

and the internal dynamics of the Orgn.

Teams-temporary, semi-permanent and permanent-continous improvement (d) Inter-personal Communication (e) Individuals- self awareness and self acceptance-developing skills, knowledge and ability of individuals

Inter-teams-inter face-manage conflicts, developing collaboration, attainment of goals. Organization-stable entity which sets the goals. To carry on the efforts begun by the outside consultant/ expert through an internal O. D. Facilitator. From a Behavioural science perspective: O.D. is a long range effort to improve an Orgns problem solving and renewal processes, particularly through a more effective and collaborative management of organizational culture with special emphasis on the culture of formal work teams- with the assistance of a change agent, or catalyst, and the use of theory and technology of applied behavioural science including Action Research. Renewal is the process of initiating , creating and confronting needed changes to make it possible for organizations to become more viable, to adapt to new conditions, to solve problems, to learn from experiences and to move towards greater maturity.

ORGANISATIONAL DEVELOPMENT O. D. is a systemic and systematic change effort, using behavioural science knowledge and skill, to transform an orgn. to a new state. O.D. is system-wide and value-based collaborative process of applying behavioural science knowledge to the adaptive development , improvement and reinforcement of such organizational features as the strategies, structures, processes, people and cultures that lead to organizational effectiveness The characteristics of O. D. are: 1. It is a system-wise process 2. It is value-based 3. It is collaborative 4. It is based on behavioural science knowledge 5. It is concerned with strategies, structures, processes, people and culture 6. It is about organizational effectiveness

ORGANIZATIONAL DEVELOPMENT Organizational Development is a long-term effort, led and supported by top management, to improve an organizational visioning, empowerment, learning, and problem-solving processes,through an ongoing, collaborative management of organizational culture- with special emphasis on the culture of intact work teams and other team configurations-using the consultant-facilitator role and the theory and technology of applied behavioural science, including action research. The important aspects include: (a) Long-term effort (b) Led and supported by top management (c) Visioning processes-viable, coherent and shared picture (d) Empowerment processes (e) Learning processes (f) Problem solving processes (g) Ongoing collaborative management of the organizational culture (h) Intact work teams and other configurations (i) Cross- functional teams (j) Consultant- facilitator role (k) Theory and technology of applied behavioural science (l) Action research

Organization transformation can occur in response to or in anticipation of major changes in the organizations environment or technology. In addition these changes are often associated with significant alterations in the firms business strategy, which, in turn, may require modifying corporate culture as well as internal structures and processes to support the new direction. Such fundamental change entails new paradigm for organizing and managing organizations. It involves qualitatively different ways of perceiving, thinking, and behaving in the organizations.

Beer (1980), the aim of OD are (1) enhancing congruence between organizational structure, processes, strategy, people, and culture; (2) developing new and creative organizational solutions; and (3) developing the organizations self-renewing capacity.

OD is a system wide application of behavioural science knowledge to the planned development and re-enforcement of organizational strategies, structures, and processes for improving an organizations effectiveness (Cummings and Worley, 1993). Organizational Development is a long-term behavioural philosophy initiated by the top management. It relates to use of latest technologies and organizational processes to affect planned change by establishing cultural framework based on vision, empowerment and employee well being leading to attainment of quality of work life and organizational effectiveness thus creating a learned organization.


1.Individual and group development.

2.Development of organization culture and processes by constant interaction between members irrespective of levels of hierarchy. 3.Inculcating team spirit. 4.Empowerment of social side of employees.

5.Focus of value development.


6. Employee participation, problem-solving and decisionmaking at various levels.

7. Evaluate present systems and introduction of new systems thereby achieving total system change if required.
8. Transformation and achievement of competitive edge of the organization. 9. Achieve organization growth by total human inputs by way of research and development, innovations, creativity and exploiting human talent. 10.Behaviour modification and self managed team as the basic unit of an organization.

1.For Individuals

a) Most individuals believe in their personal growth. Even today, training and development, promotion to the next higher position dominates the organization philosophy. b) Majority of the people are desirous of making greater contributions to the organizations they are serving. Achievements of organizational goals are however, subject to limitations or environmental constraints. It is for the organizations to tap the skills that are available in abundance.

This leads to adopt the following organization strategy for development:

Ask questions to resolve doubts.

Listen to superiors advice.

Support employees in their venture. Accept challenge.

Leaders to encourage creativity and promote risk taking.

Give additional responsibility to subordinates.

Set high standards of quality.

Empower employees. Initiate suitable reward system that should be compatible, if not more than the industry norms.

2. For Groups
a) One of the most important factors in the organization is the work group around whom the organization functions. This includes the peer group and the leader (boss) b) More people prefer to be part of the group because the group accepts them. c) Most people are capable of making higher contributions to the groups effectiveness.


Following strategy is required to be adopted for group development based on the above assumptions:
a) Invest in training and development of the group. Money and time spent on this is an investment for the organization. Leaders should also invest in development of skills and thus help create a position organizational climate.

b) Let the team flourish. Teams are the best approach to get the work done. Apart from the above teams enjoy emotional and job satisfaction when they work in groups. c) Leaders should adopt team leadership style and not autocratic leadership style. To do this, jobs should be allotted to the team and not to the individual. Contd..

d) It is not possible for one individual (leader) to perform both, the leadership and maintenance functions. It is therefore necessary for team members to assist leader in performance of his duties.

e) Group should be trained in conflict management, stress management, group decision-making, collaboration, and effective interpersonal communication. This will improve organizational effectiveness. Empowerment is the corner stone of the successful organizations.
f) Leaders should pay particular attention to the feelings of the employees. It should be understood that suppressed feeling and attitudes adversely affect problem-solving, personal growth and job satisfaction. g) Development of group cohesiveness.

3. For Organizations
a) Create learning organization culture.

b) Adopt win-win strategy for sustained growth.

c) Create cooperative dynamics rather than competitive organizational dynamics in the organization. d) Needs and aspirations of the employees in the organization must be met. This leads to greater participation of the employees. Organizations should adopt developmental outlook and seek opportunities in which people can experience personal and professional growth. Such orientation creates a self-fulfilling prophecy. Contd..

f) People must be treated with due respect and considered important. The credit of success must be given to the employees unconditioned. g) Promote organizational citizenship.

4. It is possible to create organizations that are humane, democratic and empowering on one hand and high performing in terms of productivity, quality of output, profitability, and growth on the other. It is the responsibility of every entrepreneur to ensure that the needs of the society are met.

ORGANIZATIONAL DEVELOPMENT Top values associated with O. D. today: 1. Increasing effectiveness and efficiency 2. Creating openness in communication 3. Empowering employees to act 4. Enhancing productivity 5. Promoting organizational participation Values considered to be most important: 1. Empowering employees to act 2. Creating openness in communication 3. Facilitating ownership of process and outcome 4. Promoting a culture of collaboration 5. Promoting inquiry and continuous learning

ORGANISATIONAL DEVELOPMENT Organizational Development is planned change in the organizational context. In this context of change it is necessary to refer to Kurt Lewin He has provided two principle ideas viz. 1. What is occurring at any point of time is a resultant in a field of opposing forces e. g. production level at a particular point of time is the resultant equilibrium of some forces pushing towards higher levels of production and other forces pushing towards lower levels of production. The production levels tend to remain at the same levels as the field of forces remains constant. Another example could be the level of morale. 2. The second contribution is the change itself. He has described a three- stage process viz. (a Unfreezing the old behaviour (b)Moving to a new level of behaviour (c )Refreezing the behavior at the new level

ORGANIZATIONAL DEVELOPMENT Kurt Lewins Three Stage Model : as modified by Lippitt & others 1. Developing a need for change. (Lewins unfreezing phase) 2. Establishing a change relationship. In this phase a client system in need of help and a change agent from outside the system establish a working relationship 3. Clarifying or diagnosing the clients systems problem 4. Examining alternative routes and goals; establishing goals and intentions of actions 5. Transforming intentions into actual change efforts.Phases 3, 4 and 5 correspond to Lewins moving phase 6. Generalizing and stabilizing change. This corresponds to Lewins refreezing phase 7. Achieving a terminal relationship, that is, terminating the clientconsultant relationship

ORGANIZATIONAL DEVELOPMENT The Burke-Litwin Model of Organizational Change (a) First-order change- transactional, evolutionary, adaptive, incremental, or continuous change (b) Second-order change- transformational, revolutionary, radical, or discontinuous change n.b.. O. D. programs are directed toward both first-order and second order change with an increasing emphasis on second order transformational change. First-Order Second-Order 1. Structure 1. Mission and Strategy 2. Management Practices 2. Leadership 3. Systems 3. Organizational Culture (Transactional) (Transformational) Distinguishing Organizational Climate and Organizational Culture. Climate- peoples perceptions and attitudes about the organization Culture- deep seated assumptions about values and beliefs that are enduring, often unconscious and difficult to change



Systems Policies & Procedures

Work Unit Climate

Motivation Task Requirements & Individual Skills/Abilities

Individual &
Organizational Performance

Individual Individual Needs Needs & &Values Values

ORGANIZATION DEVELOPMENT(Second) External Environment.


Mission & Strategy

Organizational Culture

Individual & Organizational Performance

The Burke-Litwin Model of Organizational Performance and Change

External Environment Mission & Strategy


Management Practices Work Unit Climate

Organizational Culture
Systems (Policies & Procedures)

Task Requires & Individual Skills/ Abilities

Motivation Individual & Organizational Performance

Individual Needs & Values

O. D. PROCESS: Diagnosis,Action & Program Management

The O. D. process consists of three components-diagnosis, action and program management.

Diagnosis component consists of continuous collection of data about the total system, its sub-units its processes, and its culture. The action component consists of all the activities and interventions designed to improve the organizations functioning. The program management component is designed to ensure success of the program. Diagnosis involves; 1. What are its strengths? 2. What are its problems? 3. What are its unrealized opportunities?

4. Discrepancy between desired situation and current situation?

O. D. PROCESS Action Plans are developed to correct problems, seize opportunities and maintains areas of strengths .These are interventions specifically to address issues at the individual, group, inter-group, or organizational levels. Results- this stage consists of a fact-finding about the results of the actions. Did they have the desired effects? Have the problems been solved or the opportunities exploited? The process is diagnosis-action-evaluation-action An O. D. Programme thus starts with diagnosis and employs data collecting and data analyzing throughout. These activities are required to provide an accurate account of things as they are needed for two reasonsfirst to know the state of things or what is: the second is to know the effects or consequences of actions The first area of diagnosis is that of various sub-systems of the total organization e.g. teams The second area are the organizational processes e.g. decision-making communication styles , relationships between groups, management of

Porras & Robertson Model of Organizational Change

Environment Vision Physical Setting Technology Social Factors
1.Goals 1. Culture 1. Space confign. 1.Tools etc. 2.Strategies 2. Mgt. Style 2. Phyl. Ambience 2. I. T. . 3.Structure 3. Interaction 3. Interior Design 3. Job Design . 4.Admn.(p& p) 4. Informal patterns 4. Architl design 4. Work Flow D 5.Adm. Systems 5.Indl. Attributes 6. Tech. Proc. 7.Ownership 5. Tech.Expert. 6.Reward systm 7. Tech. systms

Organizing Arrangements




SYSTEMS THEORY-foundation of O. D. This theory views organizations as open systems in active exchange with their environments. Systems theory is one of the most powerful conceptual tools available for understanding the dynamics of organizations and organizational change. Definitions of Systems: A system is a set of objects together with relationships between the objects and between their attributes. A System is a set of elements standing in interaction. A system is an organized, unitary whole composed of two or more independent parts,components, or sub-systems, and delineated by identifiable boundaries from its environmental supra system A system is an arrangement of interrelated parts. A system denotes interrelatedness, interconnectedness and interdependency among elements in a set that constitutes an identifiable whole or gestalt.


Sources of Transforming Energy Inputs Mechan Outputs Materials Mechm. Information Human Resources Internal Interface Feedback Mechanisms

Users External Interface Feedback Mechanisms

ISSUES REGARDING SYSTEMS THEORY 1. All open systems are input-throughput-output mechanisms 2. Every system is delineated by a boundary. What is inside the boundary and what is outside the boundary. 3. More exchange takes place inside the boundary than outside the boundary. 4. Open systems have purposes and goals 5. The law of entrophy states that all systems run down and disintegrate unless they reverse the entropic process by importing more energy than they use. 6. Information is important to systems in several ways. 7. Feedback is information to the organization from the environment. 8. Feedback can be positive or negative 9. Deviation-correcting feedback e.g. satelite mission off target(negative): or return to earth (positive) 10. Steady-state or dynamic homeostatis.Systems maintain a steady state or equilibrium point and seek to maintain this equilibrium against disruptive forces, either internal or external. 11. All systems tend to get elaborated, differentiated,specialized &



INPUT Environment Strategy Resources History Work Formal Organization

OUTPUT System Unit Individual


THE SIX-BOX MODEL-a diagnostic tool(Marvin Weisbord)

How do we manage conflict among people? with technologies? What business are we in? Purpose

How do we divide the work?



Does someone keep Helpful the boxes in balance? Rewards Mechanisms Have we adequate Do all needed tasks coordinating have incentives? technologies? Environment

O. D. INTERVENTIONS OD interventions are sets of structured activities in which selected organizational units engage in a series of tasks which will lead to organizational improvement. Interventions are actions taken to produce desired changes. There are one of four reasons why there is need for OD interventions: 1. The organization has a problem- some thing is broken, and corrective actions need to be taken i.e. it needs to be fixed. 2. The organization sees an unrealized opportunity: something it wants is beyond its reach. Enabling actions- interventions- are developed to seize the opportunity. 3. Features of the organization are out of alignment: parts of the organization are working at cross-purposes.Alignment activitiesinterventions- are developed to get things back in tune. 4. The vision guiding the organizational changes: yesterdays vision is no longer good enough. Actions to build the necessary structures, processes, and culture to support the new vision- interventions- are developed to make the new vision a reality. n.b. OD interventions are planned sets of actions to change situations

O. D. INTERVENTIONS Generally OD interventions follow a well-planned overall OD strategy and get revealed as events unfold and are answers to the following questions: 1. What are the change/improvement goals of the program? 2. What parts of the organization are most receptive to the OD program? 3. What are the key leverage points( individual or group) in the organization 4. What are the most pressing problems in the client organization? 5. What resources are available for the program in terms of client time and energy and internal and external facilitators? N. B.. With the help of the above questions the OD practitioner would be able to formulate his gameplan and sequence of interventions etc. Furthermore, OD has two goals- one educational and the other accomplishinga-task goal.Normally learning takes place in one setting e.g. a classroom whereas action takes place at the workplace.Secondly, OD deals with real life problems and uses several learning models.

O. D. INTERVENTIONS Planning a Workshop on a Strategic Plan: 1. Explore the need of a long-range plan for the organization 2. Learn how to formulate such a strategy by analyzing other strategies determining the strategic variables, being shown a sequence of steps for preparing a comprehensive plan, and so forth 3. Actually make a three-year strategic plan n.b.The above involves learning and action each part playing a predominant role at different times. OD programs are closely linked with explicit goals and objectives.OD programs all have linkages with Diagnosis, Action Taking and Goal Setting. OD is a continuous process of setting goals, collecting data about status quo, planning and taking actions based on hypotheses and on the data, and evaluating the effects of action through additional data collection.

OD INTERVENTIONS-DISCREPANCIES ANALYSIS A useful model of diagnosis and interventions could be termed as discrepancies analysis-examining the discrepancies or gaps between what is happening and what should be happening. Discrepancies define both problems and goals. Discrepancies require study( diagnosis and planning) and action to eliminate the gaps. Where one is and where wants to go. Study of problems and opportunities A good part of OD process is problem solving and provides technologies for studying and closing gaps. A problem analyzer has an expected standard of performance, a should against which to compare actual performance. A problem is a deviation from the standard of performance. A problem is a gap; problem-solving is discovering the cause of the gap; decision-making is discovering a solution- a set of actions- to close the gap Goals also represent gaps-between where we are and where we want to be. Goal-setting is the process of imposing the gap;goal accomplishment is made possible by taking actions to close the gap.

Target Group Interventions Designed to Improve Effectiveness Life-and career-planning activities Coaching and counseling T-group(sensitivity training) Education & training to increase skills, knowledge in the areas of technical task needs, relationship skills, process skills, decision making, problemsolving,planning, goal-setting skills Grid OD phase1 Work redesign Gestalt OD Behaviour modeling Process consultation Third- party peacemaking Role negotiation technique Gestalt OD



TYPE OF INTERVENTIONS Target Group Interventions Designed to Improve Effectiveness Teambuilding-task directed, process directed Gestalt OD Grid OD phase 2 Interdependency exercise Appreciative inquiry Responsibility charting Teams and Groups Process consultation Role negotiation Role analysis technique Startup team-building activities Education in decision making, problem solving planning, goal setting in group settings Team MBO Appreciations and concerns exercise Search conferences Quality of work life(QWL) programs Quality circles


Target Group

Interventions Designed to Improve Effectiveness

Intergroup activities-Process directed -Task directed Organizational mirroring Partnering Process consultation Third- party peacemaking at group level Grid OD phase 3 Survey feedback

Intergroup Relations

Target Group

Total Organization

OD INTERVENTIONS Interventions Designed to Improve Effectiveness Sociotechnical systems (STS) Parallel learning structures MBO (participation forms) Cultural analysis Confrontation meetings Visioning Strategic planning/strategic management activities Real-time strategic change Grid OD phases 4, 5, 6 Interdependency exercise Survey feedback Appreciative inquiry Search conferences Quality of worklife (QWL) programs Total quality management(TQM) Physical settings Large-scale systems change






Eight Steps to Successful Organizational Transformation Establishing a sense of urgency -Examining market and competitive realities -Identifying and discussing crises,potential crises, or major opportuni Forming a powerful guiding coalition -Assembling a group with enough power to lead the change effort -Encouraging the group to work together as a team Creating a vision -Creating a vision to help direct the change effort -Developing strategies for achieving the vision Communicating the vision -Using every vehicle possible to communicate the new vision and strategies -Teaching new behaviours by the example of the new coalition Empowering others to act on the vision -Getting rid of obstacles to change -Changing systems or structures that seriously undermine the vision -Encouraging risk taking and non-traditional ideas, activities, and actions

INTERVENTIONS-Presentations on any one of the following topics 1. Role Analysis 2. Quality of Work Life(QWL) 3. Team Building 4. Inter-group Conflict Resolution 5. Self-Managed Teams 6. T-Group ( Sensitivity Training) 7. Appreciative Enquiry 8. Visioning 9. Grid-OD 10. Quality Circles 11. MBO 12. Total Quality Management (TQM) 13. Cultural Analysis 14. Work Redesign 15. Coaching and Counseling N. B. Presentations to be made in groups of 5 for 10/15 min. covering theoretical and practical sides of the topics. (Marks will be 20)

INTERVENTIONS OD Practitioners have to consider the following in the planning and implementation of OD: 1. Develop an overall game plan or intervention strategy 2. Structure activities to promote learning and change for better as under: (a) Structure to include the relevant people (b) Structure so that it is problem-oriented or opportunity-oriented OR oriented to the problems and opportunities generated by the client (c )Structure so that the goal is clear and the way to reach it is clear (d) High probability of success (e) Structure so that it contains both experienced-based learning and conceptual learning (f) Structure so that individuals are freed up rather than anxious and defensive (g) Structure so that participants learn how to solve a particular problem and how to learn to learn.

INTERVENTIONS(contd.) (h) Structure so that individuals learn about both TASK and PROCESS task-is what the group is working on process-how the group is working and what else is going on ie group processes and dynamics, styles and behaviour (i) Structure so that individuals are engaged as whole persons not segmented persons 3. The other set of concerns are: (1)Maximize diagnostic data (2)Maximize effectiveness (3)Maximize efficiency (4)Maximize speed (5)Maximize relevance (6)Minimize psychological and organizational strain

TYPES OF INTERVENTIONS 1.Discrepancy-contradiction in action or attitude 2.Theory-behavioural science used to explain behaviour etc 3.Procedure-whether the best methods are being used 4.Relationship- focuses on interpersonal relationships-negative ones 5.Experimentation-two plans tested before final implementation of one 6.Dilemma- imposed or emergent dilemma and determining choices 7.Organizational structure-evaluation of structural causes of ineffectiveness 8.Cultural-traditions ,precedents and practices-focused approach 9.Perspective-draw away from immediate actions to past and future Blake and Mouton-Consulcube-Consultants Interventions -acceptant-gives client a sense of worth,value acceptance,support -catalytic-helps client to generate information for clearer perception -confrontation-clients value discrepancies, beliefs and assumptions -prescriptions-client told what to do for solving the problem -theories and principles-teaches behavioural science theory so that the client can diagnose the problem on his own and solve them as well

INTERVENTIONS-Blake and Mouton(contd.) Focal Issues: power/authority,morale/cohesion, norms/standards and goals/objectives Target: individual, group, intergroup, organization, community, society N. B. So Blake and Mouton have 5 kinds of interventions,4 focal issues and 5 different units of change in the form of the Consulcube to guide the Consultant in the use of his interventions Interventions do different things; they cause different things to happen Results caused by interventions could be as under: 1. Feedback 2. Awareness of changing sociocultural norms or dysfunctional current norms 3. Increased interaction and communication 4. Confrontation 5. Education 6. Participation 7. Increased Accountability 8. Increased Energy and Optimism