You are on page 1of 33

Unit 3

Organization Development
OD : Concept
• Organization Development is a
systematic application and transfer
of behavioral science knowledge to
the Planned development ,
improvement , and reinforcement
of the strategies, structures ,and
processes that lead to organization
Organization Development
• OD is a planned ,systematic,
organized and collaborative effort
where behavioral science and
organization theory principles and
practices are continuously applied
,in order to increase the quality of
life which is reflected in increased
organizational health and vitality,
enhanced individual and group
member’s competence and self
worth , and the general overall well
• OD refers to a long range effort to improve an
organization’s problem solving capabilities and
its ability to cope with changes in its external
environment with the help of external or
internal behavioral scientist consultants,or
change agents ,as they are sometimes called
Wendell French
• OD is an effort (1) planned,(2)organization
wide ,and (3)managed from the top
,to(4)increase organization effectiveness and
health through (5) planned interventions in the
organization’s “processes”,using behavioural
science knowledge .

OD comprises…..Examples.
• Does the organization meet the needs of its employees?
• Do the employees work effectively to make the organization
a success?
• How can the symbiotic relationship between employee
satisfaction and organizational success be optimized?

 Organizational development places emphasis on the human

factors and data inherent in the organization-employee
relationship. Organizational development strategies can be
used to help employees become more committed and more
adaptable, which ultimately improves the organization as a
Growth and Relevance of
• Globalization
• New markets …New Govt….new global
economy with opportunities and threats

• Information Technology
• How work is performed….how to use
knowledge …how to evaluate cost of
doing business….e-commerce etc.

• Managerial innovation
• Strategic alliances …New thought
process….downsizing …more efficient
and effective ways
• Influence of globalization and
Information Technology on OD

• Growth of Professional societies ,

educational programme ,
researchers , practitioners….

• OD work is also being done in

Schools , communities ,armed
services etc .
OD Practitioner

Ø Specialize OD as profession….they may be

internal or external consultants who offer
professional services to organization
clients ,including top managers
,functional department heads and staff

Ø Applies to people specializing in field

relating to OD ,such as reward
systems ,organization design , total
quality , Information technology ,
business strategy

Ø Applies to increasing no. of managers and

administrators who have gained
OD History: 5 Stems
Laboratory Training

Action Research / Survey Feedback

Normative Approach
Current OD Practice

Quality of Work Life

Strategic change
Laboratory Training
• Also known as T- group ( training
groups )
– A small unstructured group in which
participants learn from their own
interactions and evolving dynamics
about such issues as
– Interpersonal skills
– Personal growth
– Leadership
– Group dynamics
Action Research and Survey
• A collaborative effort initiated between
the Organization members and social
scientists ……
1.Problem identification
2.Consultation with Behavioral science expert
3.Data Gathering and preliminary diagnosis
4.Feedback to Key client or Group
5.Joint diagnosis of the Problem
6.Joint Action Planning
8.Data Gathering after Action
9.Further Feedback to Key Client
Normative Background

 “One best way “ to manage

Likert’s participative Management

• Exploitive authoritative systems - 1
• Benevolent authoritative systems- 2
• Consultative systems -3
Managerial Grid
Managerial Grid
• Concern for Production:
– Range of behaviors like :
• Accomplishing productive tasks
• Developing creative ideas
• Work load measurements
• High quality staff services
• Concern for People :
– Individual’s personal growth
– Good working conditions
– Fair salary structure

Managerial Grid
• Here's a snapshot of the five different leadership styles resulting
from the grid:
(1,1) 'Impoverished' The leader exerts (and expects) minimal
effort and has little concern for either staff satisfaction or work
targets. This is a leader who is going through the motions is
indifferent, non-committal, resigned and apathetic. S/he is
doing just enough to keep their job
(1,9) 'Country Club' The leader is attentive to his/her people's
needs and has developed satisfying relationships and work
culture - but at the expense of achieving results. The leader is
defined as agreeable, eager to help, non-confrontational,
comforting and uncontroversial.
(5,5) 'Middle of the Road' (Politician) This leader is a
compromiser who wants to maintain the status quo and avoid
any problems. Is aware of and wants a focus on productivity but
not at the expense of the morale of his/her team.
Managerial Grid
• (9,1) 'Authoritarian' The leader concentrates almost
exclusively on achieving results. People are viewed as a
commodity to be used to get the job done.
Communication is de-emphasized and conflict is resolved
by suppressing it. Leadership is controlling, demanding
and over-powering.
(9,9) 'Team' The leader achieves high work
performance through 'leading' his/her people to become
dedicated to the organizational goals. There is a high
degree of participation and teamwork, which satisfies the
basic need of people to be involved and committed to
their work. The leader may be characterised as open-
minded, flexible and one who inspires involvement.
Cautionary note: This model could lead you to think
there is one best style. Please avoid that mistake. Certain
styles work extremely well in different circumstances.
Quality of Work Life
• Specific techniques and approaches used
for improving work …

• Work design …job enrichment ..reward

systems…work flows …management
styles ….

• Focus shifted from individual programs to

work groups ….human dimension for
organizational efficiency

• Employee involvement …employee

empowerment …TQM…Six sigma
programs ….
Strategic Change Background

• Involves improving the alignment

among an organization’s environment
,strategy and organization design

• Need for strategic change is due to

external or internal force

• Implementing strategic change requires

practitioners to be familiar with
competitive strategy, finance and
marketing as well as team building ,
survey feedback etc .

OD in Practice
♦ Leveraging Technology and Worldwide Integration
■ Leveraging and aligning technology with business strategies
■ Speed, flexibility and innovation
■ Learning and Knowledge Management

♦ Implications
■ OD Profession
► Marry capabilities of technology with individual and organizational
► Understand best practices in technology integration and implementation
► Model virtual training and learning in professional activities
► Recognize and address challenges of technology from a people
(e.g., virtual teams and meetings )
■ OD Practitioner
► Support business leaders in implementing new technologies
► Build resiliency into organizations as they integrate new technologies
► Foster continuous learning and knowledge sharing in organizations
► Stay current with technology advances and incorporate them in our

♦ Value to Business Leaders and Businesses

■ Leveraging and alignment of technology with business and people
■ Exploit technology and readily adapt to the latest technological
advances for competitive advantage
■ Use technology to support learning and innovation for better
Thank you
Q1.What do you understand by OD ?

What are the important

characteristics of OD

Q2 : What is the future of OD in India ?

Q3 : Elaborate the Action Research

Model .
Process of OD
Process of OD
• Entering and Contracting
• Diagnosing Organizations
• Diagnosing groups and jobs
• Collecting and Analyzing diagnostic
• Feeding back diagnostic information
• Designing interventions
• Leading and Managing change
• Evaluating and institutionalizing
Entering and Contracting
Contd …..
• Clarifying the Organizational issue
– Clarity on the issue/problem is of
prime importance
• ….preliminary data collection…
examine company records …
– Duration of collection of this data may
be few hours or 1-2 days
Determining the Relevant
• Defining /identifying the relevant
– Active involvement of the client is
– Who has the direct impact on the
organizational issue ?
– Simple process if problem is in a
specific unit …..complex in case of
multiple units /different hierarchical
levels /outside the organization…
inter-departmental conflicts
Selecting an OD practitioner
• Has the expertise and experience to
work on the organizational issue
• How to select a practitioner
– Proposals to be submitted
• Goals , recommended action,
specification, strategy, fees , terms
and conditions etc .

Developing a contract
• Contracting clarifies how the OD
process will
understanding and agreement of the
OD process
• Establishes expectations of the
parties…Eg decreased turnover, high
job satisfaction
• Time and resources that will be
• Ground rules under which the parties
will operate .
• May be a verbal or written agreement
b/w the client and OD practitioner
Diagnosing Organizations
• Process of understanding a system’s
current functioning
• Provides the information necessary
to design the change intervention
• Determines organizational issues to
focus on , how to collect and
analyze data to understand them
• Assesses current functioning to
discover areas for future
Diagnosing Organization
Organization Level

 Design Components Output

O rg a n iza tio n e ffe ctive n e s

Te ch n o lo g y , S tru ctu re ,
G e n e ra l e n viro n m e n t
M e a su re m e n t S yste m s , H u m a n R e so u rce S yste m s , C u ltu re , S tra te g y
Pe rfo rm a n ce p ro d u ctivity , cu sto m e r
Diagnosing Groups and Jobs
Group Level

G o a lC laO ri
rgtya n, iTe
zaatimo nfudnecti
sigonn in g , G ro u p n o rm s , G ro
Te ua pm co
E ffe
m pcti
o si
vetino en ss
, ta
, pske rfo

In d ivid u a l Le ve l

O rg a n iza tio n d e sig n

Ta sk id e n tityG ro
, ski
u pllDVeasi
rigenty , A u to Innodmivi
a lsk
E ffe
n ive
n enss
ce, j,oFe
b esad ti
b sfa
a ckcti
a ob no ,u pt ererso
Pe rso n a l C h a ra cte ristics
The Steinway Organization
• What is the company’s general
environment ?
• What is the Company’s industry
structure ?
• What is the Company’s strategy?
• What are the company’s technology
,structure ,measurement systems and
HR systems ?
• What is Steinway’s Culture ?
• What are the Concerns?

MSOD Program
• What is the design of larger organization
within which individual jobs are embedded
• What is the design of the group containing
individual jobs ?
• What are personal characteristics of job
holders ?
• How much is the task significance and task
identity in PA’s job ?
• How much autonomy is included in the job ?
• How much feedback about results does the
job contain ?
• Comment about the proposed change .