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Organizational Development (OD) is

the systematic application of
behavioral science at various
levels(groups, intergroup and total
organization) to bring about planned


OD includes a higher quality of work life,

productivity, adaptability and
It changes all parts of the organization
in order to make it more humanly
responsive, more effective and more
capable of organizational learning and
self renewal.
It relies on a systems orientation, casual
models and a set of key assumptions.

Foundations of OD:
They are three types of functions in OD,

Systems Orientation
Understanding Causality
Assumptions Underlying Organization


In modern society, change is so

abundant that organizations needs all
their parts working together in order to
solve the problems.
Maintaining coordinating effort among
their parts is difficult in some large
OD is concerned with the interplay of
structures, technology, and people.


OD is concerned with the behavior of

employees in different departments
and locations.
It focuses on answering the question,
How effective are all these parts as
they combine to work together?.

Contribution of the systems orientation
is to help managers to view their
organizational processes in terms of a
model with three types of variables.
Causal variable.
Intervening variable and
End result variables.

Causal variables

They are the significant ones, because

they affect both intervening and endresult variables.
Causal variables are the one that
management can change most
directly; that include organizational
structure, controls, policies, training, a
board range of leadership behaviors,
and OD efforts.

Intervening variables

Which are immediately affected by the

causal variables.
They include employee attitudes,
perceptions, motivation, and skilled
variables, as well as teamwork and
even intergroup relationships.

End-result variables

Represents the objectives sought by

They usually include improved
productivity, increased sales, lower
costs, more loyal customers, and
higher earnings. They represent the
reason that OD program was initiated.

Variables in OD approach

Characteristics of OD

Characteristics of OD differ
frequently from traditional change.
They are already designed and
Humanistic values
Use of a change agent
Problem solving
Interventions at many levels
Contingency orientation

Humanistic values

OD is based on humanistic values,

which are positive beliefs about the
potential and desire for growth among
To be effective and self renewing, an
organization needs employees who
wants to expand their skills and
increase their contribution.


Best situation for such growth is one

that stresses collaboration, open
communication, interpersonal trust,
shared power and constructive

Use of a change agents:

OD generally use one or more change agents,

whose role is to stimulate, facilitate and coordinate change. The change agents usually acts
as a catalyst while others are independent of it.
Change agents may be 1.external or 2. internal.
Advantages of using external change agents are:
usually a consultants of other company, they are
more objectives and have desire experiences.
They are able to operate independently without
ties to the hierarchy and politics of the firm.

Problem solving

Participants identify the problem and to

The process of using research to guide
action, which generates new data as
the basis of new actions, is known as
action research or action science.

OD process

Benefits of OD

Change throughout organization

Greater motivation
Increased productivity
Better quality of work
Higher job satisfaction
Improved teamwork
Better resolution of conflict
Commitment to objectives
Increased willingness to change
Reduced absences
Lower turnover
Creations of learning individuals and group.

Limitations of OD

Major time requirements

Substantial expense
Delayed payoff period
Possible failure
Possible invasion of privacy
Possible psychological harm
Potential conformity
Possible conceptual ambiguity
Difficulty in evaluation
Cultural incompatibility.