ORGANIZATIONAL DEVELOPMENT

 Books to be Read:
1. Organization Development – French & Bell
2. Organization Development – V. G. Kondalkar
3. Organization Development & Change – Cummings & Worley
4. Organizational Development & Transformation- French, Bell & Zawacki
History

 Concept of OD- emerged from sensitivity

training or T-groups of NTL(1946).
 Strengthened by survey,feedback and
research
 Pioneering work by Kurt Lewin who has given
many theory model for OD.
 Third phase by London-Tavistock Instititute
of Human Relations.
Definition

 ASTD-American Society of Training and

Development
 “an effort (a)planned,(b) organisation wide
,©managed from the top to ,(d) increase
organisation effectiveness and health
through (e)planned intervention in the
organisations processes using behavioral
science knowledge.”
ORGANIZATIONAL DEVELOPMENT

Organizational Development or O.D. is a planned effort

initiated by Change Agent(HR)/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 bring about a culture of mutuality.
Contd.
 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 O.D.by 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 in the definition of Organization given by
Edgar Schein 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
.
From a Behavioral science perspective:

‘O.D. is a long –range effort to improve an Orgn’s 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 behavioral science including Action Research.’

Why??????? Sustainability in the dynamic Industry environment

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.
Characteristics of ORGANISATIONAL DEVELOPMENT

1. Change- a planned strategy to bring out OD…a system-wise

process to bring out specific changes-based on a diagnosis of
some problem areas—planned interventions
2. It is value-based
3. It is collaborative of most people who are affected by the
changes being brought out…
4. It is based on behavioral science knowledge
5. Performance orientation- it is structured to bring
enhancement/improvement in performance and quality
6. Humanistic Orientation- values of people to make new
opportunities and increased use of human potential.
7. System approach- where interrelations of departments,
groups ,divisions , individuals as interdependent ---
bringing out a relations between excellence and elements
Source- Human Resource Development: Today and Tomorrow
By Ronald R. Sims
Areas effected through OD.

Organizational Relationship change to their environment-markets

Major stakeholders-redefine identity-mission-boundaries, mergers
Acquisitions, divestitures or Sas and patnerships

The way the people operate,relate internally-culture and structure

The nature of control structure-parties involved in dominant coalition

Of interest and benefits – how this can be distributed amongst them
 GOALS AND OBJECTIVES OF ORGANIZATIONAL
DEVELOPMENT PROGRAMME

1.To emphasis on the need to change from closed system to open

system-internal-
2.Individual and group development.-Inculcating team spirit.
3 Development of organization culture and processes by constant
interaction between members irrespective of levels of hierarchy.
4.Empowerment of social side of employees. AND Focus of
value development.
5.To develop a reward system based on achievement of goals and
bring in transparency-OCTAPACE- openness , confrontation, trust,
authenticity , pro-activeness, autonomy, collaboration and experimentation
4.Employee participation, problem-solving and decision-
making at various levels.
5.Evaluate present systems and introduction of new systems
thereby achieving total system change if required.
6. Achieve organization growth by total human inputs by
way of research and development, innovations, creativity
and exploiting human talent.
7. Behavior modification and self managed team as the basic
unit of an organization.
8. Transformation and achievement of competitive edge of
the organization.
Where OD professionals are primarily employed?
OD professionals or consultants can be employed by the
organization or can be hired on a contract basis.
WHAT ARE the
qualifications for doing OD
work?
The OD Institute IS
the only professional
organization that provides
specific certification in
OD. The OD Institute has two
levels of credentials: RODP
(Registered
Organization Development
Professional) and RODC
(Registered
OD Consultant).
 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 Lewin’s Three –Stage Model : as modified by Lippitt & others
1. Developing a need for change. (Lewin’s 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 system’s 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 Lewin’s moving phase
6. Generalizing and stabilizing change. This corresponds to Lewin’s
refreezing phase
7. Achieving a terminal relationship, that is, terminating the client-
consultant 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- people’s perceptions and attitudes about the organization
Culture- deep seated assumptions about values and beliefs that are
enduring, often unconscious and difficult to change
 ORGANIZATIONAL DEVELOPMENT( First)
Management
Practices
Systems
Structure Policies &
Procedures

Work
Unit Climate

Motivation
Task Individual
Individual
Requirements & Individual & Needs &
Needs
Individual &Values
Values
Skills/Abilities Organizational
Performance
 ORGANIZATION DEVELOPMENT(Second)
External
Environment.

Leadership
Mission & Organizational
Strategy Culture

Individual &
Organizational
Performance
The Burke-Litwin Model of Organizational Performance and Change
External
Environment

Mission & Leadership Organizational

Strategy Culture
Management Systems
Structure Practices (Policies &
Procedures)
Work Unit
Climate

Task Requires Motivation Individual

& Individual Needs & Values
Skills/ Abilities Individual &
Organizational
Performance
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 organization’s 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 reasons-
first 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
Organizing Setting
Arrangements 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 5. Tech.Expert.
6.Reward systm 6. Tech. Proc.
STAGES IN THE O.D. PROGRAMS
1. ENTRY
2. CONTRACTING
3. DIAGNOSIS
4. FEEDBACK
5. PLANNING CHANGE
6. INTERVENTION
7. EVALUATION
 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.
SYSTEM IN INTERACTION WITH ITS ENVIRONMENT

Sources of Transforming
Energy
Materials Inputs Mechan
Mechm. Outputs Users
Information
Human Re-
sources External Interface
Internal Interface Feedback Mechanisms
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 &
 CONGRUENCE MODEL SHOWING ORGN. AS A SYSTEM

INFORMAL
ORGANIZATION

INPUT OUTPUT

Environment System
Strategy
Resources Formal Unit
Work
Organization
History Individual

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

How do we manage What business

conflict among people? are we in?
How do we
with technologies?
Purpose divide the work?
Relation-
Structure
ships

Leadership

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 activities-
interventions- are developed to get things back in tune.
4. The vision guiding the organizational changes: yesterday’s 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
accomplishing–a-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.
 TYPES OF INTERVENTIONS

Target Group Interventions Designed to Improve Effectiveness

Life-and career-planning activities
Coaching and counseling
T-group(sensitivity training)
Individuals Education & training to increase skills, knowledge
in the areas of technical task needs, relationship
skills, process skills, decision making, problem-
solving,planning, goal-setting skills
Grid OD phase1
Work redesign
Gestalt OD
Behaviour modeling
Process consultation
Third- party peacemaking
Dyads/Triads 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
 OD INTERVENTIONS

Target Group Interventions Designed to Improve Effectiveness

Intergroup activities-Process directed

-Task directed
Organizational mirroring
Intergroup Partnering
Relations Process consultation
Third- party peacemaking at group level
Grid OD phase 3
Survey feedback
 OD INTERVENTIONS
Target Group Interventions Designed to Improve Effectiveness
Sociotechnical systems (STS)
Parallel learning structures
MBO (participation forms)
Cultural analysis
Confrontation meetings
Visioning
Total Strategic planning/strategic management activities
Organization 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
1. Establishing a sense of urgency
-Examining market and competitive realities
-Identifying and discussing crises,potential crises, or major opportuni
2. 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
3. Creating a vision
-Creating a vision to help direct the change effort
-Developing strategies for achieving the vision
4. Communicating the vision
-Using every vehicle possible to communicate the new vision and
strategies
-Teaching new behaviours by the example of the new coalition
5. 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-Consultant’s 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
 CLASSISIFICATION OF INTERVENTIONS
1. DIAGNOSTIC Activities
2. TEAMBUILDING Activities
3. INTERGROUP Activities
4. SURVEY FEEDBACK Activities
5. EDUCATION and TRAINING Activities
6. TECHNOSTRUCTURAL or STRUCTURAL Activities
7. PROCESS CONSULTATION Activities
8. GRID ORGANIZATION DEVELOPMENT Activities
9. THIRD-PARTY PEACEMAKING Activities
10. COACHING and COUNSELING Activities
11. LIFE and CAREER-PLANNING Activities
12. PLANNING and GOAL-SETTING Activities
13. STRATEGIC MANAGEMENT Activities
14. ORGANIZATIONAL TRANSFORMATION Activities