Unit - I

Organization Development

DEFINITION
Organization development is a system wide application of behavioral science knowledge to the planned development , improvement, and reinforcement of the strategies , structure and process that lead to organization effectiveness

DEFINITION
It involves both 'hard' and 'soft' issues. The 'hard' issues for OD are strategies and policies, structures and systems. The 'softer' issues are developing appropriate skills, behaviours and attitudes to achieve optimum performance. Both the 'harder' and 'softer' issues of OD need to be addressed to avoid conflict between goals and needs.

Organization Theory
The objective of study of organizational theory is to direct the members in the organization for efficient functioning, create mutual understanding between the employees, to create a favorable organizational climate so that various goals of the organization could be achieved

Classification of Organization Theory

1. Classical Organizational Theory

Based on the traditional views An organization is the structure of the relationships, power, objectives, roles, activities, communications and other factors that exist when persons work together The classical concept includes bureaucracy, administrative theory and scientific management.
The administrative theory comprises of 14 principles given by Henri Fayol these include division of work, authority and responsibility, unity of command, unity of direction, centralization, scalar chain, order, equity, stability, etc.

2. Administrative Theory

Classification of Organization Theory

3. Scientific Management the policy of scientific management was introduced by F.W. Tayolr. The was the first person who introduced scientific methods in management. He introduced time and motion studies, standardization of tools, methods and working conditions. Neoclassical Viewpoint- Neo classical theory is the modification of the classical approach. This approach is known as the Human Relation Approach, it considers each worker as an individual and takes into account his aspirations, his need, his expectations etc. and considers various factors which can raise the productivity of the firm.

4.

Classification of Organization Theory

5. Behavioral Science Approach- this approach studies of human behavior in organizations and their group relations, their mode of leadership, flow of communication, workers participation in management, motivation, group dynamics etc. 6. Modern Organization Theory (MOT)- It has been developed since the 1930s. in this method organization is viewed as a system consisting of five parts: inputs, process, output, feedback, and environment. System Theory is a proper arrangement of various components in a planned manner to achieve certain objectives.

Organization Structure
Organization structure refers to the arrangement of various components of parts of the organization and studies their relationships with each other. Organizational structure may also be defined as a system which interacts continuously with environment, and brings about a change in its task, technology, people, and goals.

Advantages of Organization Structure

1. Allocation of authority and responsibility organizational structure involves job description and helps in classification of various tasks. 2. Allotment of various Function organization structure helps in the allotment of various functions to individuals or group for achieving goals of the organization. 3. Proper flow of communication and information 4. Coordination of various tasks, activities and functions -

Advantages of Organization Structure

5. Centralization and Decentralization centralization refers to a situation where the power of authority is in few hands. On the other hand when decision making power is given to the lower managers by the top management then it refers to the decentralization.

Kinds of Organization structure

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Formal-Informal structure Centralized or decentralized Structure Vertical and Horizontal Structure Mechanistic and organic Structure Line and Staff Organization Functional Organization Project Organization Committee Organization Matrix Organization Free form Organization

Centralized or decentralized Structure

Vertical and Horizontal Structure

In vertical organization structure, flow of information and directions are form top to the bottom or form bottom to the top but in Horizontal structure the decision making power is scattered. Horizontal the position of personnel is at the same level.

Concept/meaning of OD
OD may be defined as a systematic integrated and planned approach to improve the effectiveness of the enterprises. OD is practical and systematic approach to launching and diffusing change in organization to improve the overall organizational efficiency. It is scientific awareness of human behavior and organization dynamics. It is also directed towards more participative management and integration of individual goals with organizational goals.

Aim of OD
The aim of OD is to improve the work effectiveness of individuals, Groups & total organizational system, also it is a planned approach to respond effectively to changes in its external and internal environment.

Characteristics of OD
Long range effect (3-5 years) Comprehensive (complete) change in the organization structure, philosophies, skills of individuals. It is an ongoing interactive and cyclic process not one time training and development program. Planned approach OD involvement are research based on surveys, collecting data, evaluating & taking decision

Characteristics of OD
It is a process of goal setting and planning Exclusively concerned with people Overall performance of the organization It consists of four interacting sub systems structure, Task, Technology, communication

Object of the OD
1. Improve the interpersonal relation 2. Improve the overall performance 3. Adapting and coping with the changes in the external and internal environment of the organization 4. To face the organizational problems and contributing solutions to the problems. 5. Communication 6. Improve the new opportunities to the people

History of OD
1. The history of OD is enriched with the contributions of the behavioral scientists and practitioners and contributions of many people in client organizations: It has four major stems / steps / events:
1. 2. 3. 4.

2.

Invention of T- Group Invention of survey feedback technology Emergence of Action Research Evolution of the Tavi stock. Social technical and social clinical approach

1 The Laboratory Training Stem (T- Group)

Laboratory training, essentially unstructured small group situations in which participants plants learn form their own actions and the groups evolving dynamics, began to develop about 1946 from various experiments in using discussion groups to achieve change in behaviour in back home situations In particular, an Inter Group Relations workshop held at the state Teachers college in New Britain

(1) T- Group
Technique of organization development It is a small group of 10 to 12 people The group has no pre planned task or agenda. People comes from different organization The expert mearly creates opportunity for group members to express their ideas and feelings freely. Individuals are allowed to focus on behaviour The desired result of T Group is effective relationships and resultant benefit to the organization

T- Group
Advantage of T- Group Participation becomes more open and self understanding Improvement on communication and leadership People aware of their weakness, norms of the group Limitations of T- Group Decline of self confidence Anxiety and frustration Its utility to the total organization is limited

(2) Invention of survey - feedback technology

The basic purpose of survey feedback is to assist the organization in identifying problems and developing action plans for problem solving.

Invention of survey - feedback technology

It is one of the earliest interventions of organization development. A questionnaire based analysis like leadership, motivation A summary of the results is prepared for group discussions. Generally feedback of results is given Survey feedback is well organized

Steps of survey
1. Collection of data 2. Feedback the information it means
reporting the information and key findings to employees,

3. Developing the action plan 4. Follow up -

Principals for effective survey feedback

1. Questionnaire must be reliable 2. Employees must be willing to report their views 3. The organization Development consultant must be skilled 4. Top management must use the information 5. Participants must not misrepresent

(3)Emergence of Action Research

Acton research is the process of systematically collecting research data about an ongoing system relative to some objective, goal or need of that system deeding these data back into the system, taking actions by altering selected variables within the system based both on data and hypothesis and evaluating the results of actions by collecting more data

(4) Evolution of the Tavi stock. Social technical and social clinical approach

Tavistock clinic had been founded in 1920 in England as an outpatient facility to provide psychotherapy based on psychoanalytic theory

assumptions of Organization Development Assumptions are beliefs Value assumption and beliefs provide structure and stability for people as they attempt to understand the world around them Organization Development interventions are based on a number of underlying assumptions and values play a large role in understanding the process that are used in organization Development.

assumptions of Organization Development

1.
1.

Assumption of dealing people as individual

People desire to develop their potential 2. Most people desire to make & are capable of making, a higher level of contribution to the organization goal Thus it attempts to provide a constructive environment and to create enthusiasm in employees for the attainment of organization goals.

2.

Assumption of dealing people in group it relates to the importance of work- teams and the collaborative management of team culture. Working in groups greatly influences feelings of satisfaction and competence and to satisfy their social and emotional need at work.

assumptions of Organization Development

3. Assumption of dealing people in organization- the implication is that people are an organizations most important resource they are the source of productivity and profits and should be treated with care
Value and Beliefs in organization Development Value, assumption and beliefs constitutes and integral part of organization development Organization Development values and assumptions are developed from research and theory by behavioral scientists and from the experiences and observations of practicing managers.

assumptions of Organization Development

Values in organization development

A high value is placed on the dignity and worth of human being. Individuals do not exist to serve the organization A high value is also placed on personal growth and development.