Organization Development (OD)

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Organization Development (OD)

• presented by
• Meditha Karunatillaka
• MBA, Dip in HRM, Dip in T D, AMTD, MHRP

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Definition-what is an organization

• An organization is the planned coordination of
  the activities of a number of people for the
  achievement of some common explicit purpose or
  goal, through division of labor and function,
  and through a hierarchy of authority and
  responsibility (Edgar Shein)

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DefinitionOrganization Development (OD)

• OD is an effort (1) planned (2) organization wide
  (3)managed from the top (4) increase organization
  effectiveness and health through (5) planned
  interventions in the organizations processes,
  using behavioral science knowledge. (Richard
  Beckhard)

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Why Study OD ?

• Can improve individual performance
• Create better morale
• Increase organizational profitability

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Related to OD

• Vision and Mission
• Behavior of the Organization
• Individual Behavior
• Structure of the Organization
• Culture of the Organization

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WHY DO OD?

• Human resources
• Changing nature of the workplace
• Global markets
• Accelerated rate of change

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Distinctive Features of OD

• an OD program is a long range, planned and
  sustained effort that is based on an overall
  strategy.
• consultant establishes a unique relationship with
  the client system the consultant seeks and
  maintains a collaborative relationship of
  relative equality with the organization members

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OD interventions are..........

• Unique in nature
• Reflexive
• Self-analytical
• Self-skill building in nature

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Benefits

• It mainly tries to deal with the changes
  throughout the organization or in any one of the
  major units.
• It develops greater motivation.
• It increases productivity.
• A better quality of work.
• It creates higher job satisfaction
• Team work is improved and encouraged
• It finds better solution for conflicts
• Commitment to objectives
• Increases the willingness to change
• Absenteeism is reduced.
• Turnover is lower

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Limitations

• Organizational development is long-way process
  and requires more time.
• It consists of substantial expense, delayed
  payoff periods
• Failures are possible
• Possibility for invasion of privacy
• Possible for psychological harms
• It emphasizes only in group process compared to
  performance
• Conceptual ambiguity is possible.

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Elements of the OD process

• Entering and contracting
• Diagnosing ( Organization, groups and jobs)
• Planning and implementing change
• Evaluating and institutionalizing

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Entering and contracting

• Entering Contracting are the initial steps in
  the OD process
• Entering and Contracting set the initial Para
  meters for carrying out the subsequent phases of
  OD
• Diagnosing the organization
• Planning Implementation changes
• Evaluating and Institutionalizing them

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• Entering into an OD relationship comprises of
  three (3) elements- i.e.
• - Clarifying the Organizational Issue
• - Determining the relevant Clients
• - Selecting the appropriate OD Practitioner

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Clarifying the Organizational Issues

• An Organization generally starts an OD programme
  by presenting the problem. i.e. the issue that
  caused them to consider an OD process. It may be
  Specific,( e.g. decrease in market share,
  increase in absenteeism, Increase in industrial
  disputes or General (eg Organization growing
  too fast, needs a rapid change)
• At this stage, presenting the problem is only a
  symptom of an underlined problem

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Determining the relevant client

• Generally the relevant client includes those
  organization members who can directly impact on
  the change issue.
• Unless these Members are identified and included
  in the entering and contracting process, they may
  with hold their support for and commitment to
  the OD process.
• E.g. In trying to improve the productivity of a
  unionized plant the relevant client may include
  union officials as well as Managers and staff
  personnel.
• It is not unusual for an OD project to fail
  because the relevant client was inappropriately
  defined.

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Diagnosing Organization

• Diagnosis is the process of understanding current
  functioning of the organization. It will provides
  the information necessary for designing change
  interventions. It generally follows from
  successful entry and contracting.
• This is a collaborative process between
  organization members and OD consultants to
  collect pertinent information, analyze it and
  draw conclusions of action planning and
  interventions .
• Diagnosis may be aim uncovering causes for
  specific problems or it may be directed at
  assessing the overall functioning of the
  organization / department to discover the areas
  for future development.

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Organizational Diagnosis

1. Think of visiting your health care, computer or
   auto mechanic professional. What is a diagnosis?
2. What does s/he do to diagnose (Dx) your
   condition?
3. What are the uses/purposes of a Dx What does it
   allow you to do?
4. What, therefore, are the criteria for a sound Dx?
5. How is a diagnosis derived?

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Planning and implementing change

• In this stage ,organization members and
  practitioners jointly plan and implement OD
  interventions.
• They design interventions to achieve the
  organization's vision or goals and make action
  plans to implement them.
• There are several criteria for designing
  interventions ,including the organization's
  readiness for change ,its current change
  capability, its culture and power distributions
  and change agents kills and abilities .
• Depending on the outcomes of diagnosis, there are
  four major types of interventions in OD

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Comparison of Planned Change Model
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Major Types of Interventions in OD .

• Human Process Interventions
• Techno structural Interventions
• Human Resources Management Interventions
• Strategic Interventions

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Human Process Interventions

• Coaching
• Training and Development
• Process Consultation and Team Building
• Third-party Interventions (Conflict Resolution)
• Organization Confrontation Meeting
• Intergroup Relationships
• Large-group Interventions

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Techno structural Interventions

• Structural Design
• Downsizing
• Reengineering
• Employee Involvement
• Work Design

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Human Resources Management Interventions

• Goal Setting
• Performance Appraisal
• Reward Systems
• Career Planning and Development
• Managing Work Force Diversity
• Employee Stress and Wellness

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Strategic Interventions

• ntegrated Strategic Change
• Mergers and Acquisitions
• Alliances and Networks
• Culture Change
• Self-designing Organizations
• Organization Learning and Knowledge Management

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Evaluating and Institutionalizing

• The final stage in planned change involves
  evaluating the effects of the intervention and
  managing the institutionalization of successful
  change programs .
• Feed back to organization members about the
  interventions results provide information about
  whether the changes should be continued ,modified
  or suspended.
• There are several criteria for designing
  interventions ,including the organization's
  readiness for change ,its current change
  capability, its culture and power distributions
  and change agents kills and abilities .
• Depending on the outcomes of diagnosis, there are
  four major types of interventions in OD

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Organizational Development Techniques
Sensitivity Training Training groups (T-groups)
that seek to change behavior through
unstructured group interaction Provides increased
awareness of others and self Increases empathy
with others, improves listening skills, greater
openness, and increased tolerance for others
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Organizational Development Techniques (contd)
Survey Feedback Approach The use of
questionnaires to identify discrepancies among
member perceptions discussion follows and
remedies are suggested
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Organizational Development Techniques (contd)
Process Consultation (PC) A consultant gives a
client insights into what is going on around the
client, within the client, and between the client
and other people identifies processes that need
improvement.
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Organizational Development Techniques (contd)
Team Building High interaction among team members
to increase trust and openness

• Team Building Activities
• Goal and priority setting
• Developing interpersonal relations
• Role analysis to each members role and
  responsibilities
• Team process analysis

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Organizational Development Techniques (contd)
Intergroup Development OD efforts to change the
attitudes, stereotypes, and perceptions that
groups have of each other

• Intergroup Problem Solving
• Groups independently develop lists of perceptions
• Share and discuss lists
• Look for causes of misperceptions
• Work to develop integrative solutions

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Open Systems Model
Environment

• Inputs
• Information
• Energy
• People

• Outputs
• Goods
• Services
• Ideas

• Transformations
• Social Component
• Technological
• Component

Feedback

• Source Waddell, Cumming and Worley (2007)
  Organisation Development Change. Thomson, South
  Melbourne Australia

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Organisation-Level Diagnostic Model
Outputs
Inputs
Design Components
General Environment Uncertainty in social,
technological, economic , ecological and
political forces Industry Structure Five forces
suppliers, buyer, threats of entry, threats of
substitutes and rivalry among competittors
Organisation performance Productivity Stakeholde
r satisfaction

Strategy The way a company uses its resources
human economic or technical to gain and sustain
competitive advantage
Organisation design

• Source Waddell, Cumming and Worley (2007)
  Organisation Development Change. Nelson, South
  Melbourne Australia

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Group-Level Diagnostic Model
Design Components
Outputs
Inputs
Goal Clarity Task
Team Structure Functioning
Group Group Composition Norms
Organisation Design
Team Effectiveness

• Source Waddell, Cumming and Worley (2007)
  Organisation Development Change. Thomson, South
  Melbourne Australia

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Individual-Level Diagnostic Model
Inputs
Design Components
Outputs
skill Variety Task Identity
Autonomy Task Feedback
Significance about Results
Organisation Design Group Design Personal Traits
Individual Effectiveness

• Source Waddell, Cumming and Worley (2007)
  Organisation Development Change. Thomson, South
  Melbourne Australia

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Journey of Life
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