MBA 9661

(Based on PTU Syllabus)

ORGANIZATION DEVELOPMENT-

AN INTRODUCTION

MB 966

By: Monika Singla

Faculty: Gian Jyoti Institue, Mohali

MBA 9662

AN ORGANISATION IS….

An organisation is a system consisting of

four interacting subsystems

STRUCTURE, TASK, TECHNOLOGY,

PEOPLE

Organisation as a system can be changed

and developed to achieve its goals in the

best possible way

MBA 966

OD

3

• Organization development is a process of planned change- change

of an organization’s culture from one which avoids an examination of

social processes(especially decision making, planning and

communication) to one which instituonalizes and legitimizes this

examination.

• Organization development is a response to change, a complex

educational strategy intended to change the beliefs, attitudes, values

and structure of organizations so that they can better adapt to new

technologies, markets and challenges.

MBA 9664

• Organization Development Definition Organization

Development (OD) is an applied discipline that supports

the creation of effective and healthy organizations

consisting of competent, satisfied, and productive

employees.

• Other definitions from other OD practitioners are:

"Organization development (OD) is defined as a long-

range effort to improve an organization’s ability to cope

with change and its problem-solving and renewal

processes through effective management of organization

culture."

MBA 966

SOME CHARACTERISTICS OF

ORGANIZATION-DEVELOPMENT EFFORTS

Most successful organization-development efforts have the

following

characteristics:

1. There is a planned program involving the whole system.

2. The top of the organization is aware of and committed

to the program and to the management of it. (This does not

necessarily mean that they participate exactly the same

way as other levels of the organization do, but that they

accept the responsibility for the management.)

MBA 966

SOME CHARACTERISTICS OF

ORGANIZATION-DEVELOPMENT EFFORTS

3. It is related to the organization’s mission. (The organization development effort

is not a program to improve effectiveness in the abstract. Rather it is an effort to

improve effectiveness aimed specifically at creating organization conditions that

will improve the organization’s ability to achieve its mission goals.)

4. It is a long-term effort.

Usually at least two or three years are required for any large organization change

to take effect and be maintained. This is one of the major problems in

organization-development efforts, because most reward systems are based on

rewarding the achievement of short-term “profit” objectives. Most organization

leaders are impatient with improvement efforts which take extended time. Yet, if

real change is to occur and be maintained, there must be a commitment to an

extended time, and a willingness to reward for the process of movement toward

goals, as well as toward the specific achievement of short-term goals.

MBA 966

SOME CHARACTERISTICS OF

ORGANIZATION-DEVELOPMENT EFFORTS

5. Activities are action-oriented.

(The types of interventions and activities in which organization

members participate are aimed at changing something after the

activity.)

In this respect, OD activities are different from many other training

efforts where the activity itself, such as a training course or a

management workshop, is designed to produce increased

knowledge, skill, or understanding, which the individual is then

supposed to transfer to the operating situation. In OD efforts, the

group builds in connections and follow-up activities that are aimed

toward action programs.

MBA 966

SOME CHARACTERISTICS OF ORGANIZATION-DEVELOPMENT

EFFORTS

6. It focuses on changing attitudes and/or behavior. (Although processes, procedures,

ways of work, etc., do undergo change in organization-development programs, the

major target of change is the attitude, behavior, and performance of people in the

organization.)

7. It usually relies on some form of experienced-based learning activities. The reason

for this is that, if a goal is to change attitudes and/or behavior, a particular type of

learning situation is required for such change to occur. One does not learn to play golf

or drive a car by getting increased knowledge about how to play golf or drive a car.

Nor can one change one’s managerial style or strategy through receiving input of new

knowledge alone. It is necessary to examine present behavior, experiment with

alternatives, and begin to practice modified ways, if change is to occur.

8. OD efforts work primarily with groups.

An underlying assumption is that groups and teams are the basic units of organization

to be changed or modified as one moves toward organization health and effectiveness.

Individual learning and personal change do occur in OD programs but as a fallout—

these are not the primary goals or intentions.

MBA 966

Characteristics of OD

9

• OD focuses on culture and processes

• OD encourages collaboration between organization leaders and

members in managing culture and processes.

• OD relies on an action research model with extensive participation by

client system members.

• OD focuses on total system change and views organizations as

complex social systems.

• Participation and involvement in problem solving and decision making

by all levels of organisation are hallmarks of OD.

• Attempting to create win-win solution

MBA 966

Characteristics of OD

10

• Behavior science base

• Normative approach

• Deliberate interventions in organization

• Normative Re educative strategy

• Legitimacy of organization and management

• System approach to change

• Use of action research model

• Use of external consultants

• Long term focus

MBA 96611

GOALS OF AN ORGANISATION

The goals of an organisation, generally, are: survival, stability, profitability, growth and service to society.

From one organisation to another, the goal or goals may differ depending upon at what stage of development the organisation is

An organisation can achieve its goal if it is able to respond to changes within the external and internal environment

MBA 96612

ORGANISATION DEVELOPMENT (OD) is a planned approach to respond effectively to changes in external and internal environments.

MBA 96613

ORGANISATIONAL

ENVIRONMENTS

External Environment

The external environment is in terms of forces in the social, political, economic and cultural factors. Competition from similar organisations, changing needs of the public, knowledge explosion, rapid growth of technology- all constitute threat to organisational effectiveness

MBA 96614

INTERNAL ENVIRONMENT

Organisation has also to take into cognizance its internal environment which includes existing structure, technology, needs and expectations of its people, and the changing scenario of labour force

MBA 96615

SCHOOLS OF THOUGHT

Essentially there are two schools of thought in OD

1) Programme – Procedure School

2) System- Process School

MBA 96616

PROGRAMME-PROCEDURE

SCHOOL

It is older approach. According to it, OD is theeffective implementation of the organisation’spolicies, procedures and programmes. It isconcerned with personnel activities andcontribute to the overall growth anddevelopment of the organisation such asrecruitment, training, career development,compensation, welfare and benefits, labourrelations, etc.

Personnel development is primarily concerned with OD activities

MBA 96617

SYSTEM- PROCESS SCHOOL

While personnel programmes demand conformity for prescribed policies and procedures, the system process school encourages openness and collaborative ways of solving problems so that the outcomes as advantageous to both individuals and organization.

This school considers organization development in the context of both its internal and external environment

Proponents(supporters) of this approach view organization as a system which can be changed and developed to best achieve its goals and objectives

An emerging role for OD is a system based and focuses on total organization effectiveness and hence goes beyond the traditional personnel programme

The emphasis is much more on work groups within andacross departments rather than individuals as such

MBA 96618

Differences between the two schools

Programme Procedure System Process

Internal Internal and

external

Personnel oriented Department

Individual Group

Sectional Holistic

Prescriptive Open

System internal Interdisciplinary

MBA 96619

WHAT OD IS?

OD may be defined as a systematic, integrated and planned approach to improve the effectiveness of the enterprise

It is designed to solve problems that adversely effect the operational efficiency at all levels.

It is based on scientific awareness of human behaviour and organisation dynamics

Being an organisation wide effort, it is directed towards more participative management and integration of individual goals and organisational goals

MBA 966

Organization Development is a systematic application

of behavioral science knowledge to the planned

development and reinforcement of organizational

strategies, structures, and processes for improving an

organization’s effectiveness.

…Cummings & Worley, 1993

Organization development is a planned process of

change in an organization’s culture through the

utilization of behavioral science technologies,

research, and theory.

…Burke, 1994

OD: DEFINITIONS

MBA 96621

• Objectives of OD?????

MBA 96622

OBJECTIVES OF ORGANIZATIONAL

DEVELOPMENT PROGRAMME

1.Individual and group development.

2.Development of organization culture and processes by

constant interaction between members irrespective of levels of

hierarchy.

3.Inculcating team spirit.

4.Empowerment of social side of employees.

5.Focus of value development.

.

MBA 96623

6. Employee participation, problem-solving and decision-

making at various levels.

7. Evaluate present systems and introduction of new systems

thereby achieving total system change if required.

8. Transformation and achievement of competitive edge of the

organization.

9. Achieve organization growth by total human inputs by way

of research and development, innovations, creativity and

exploiting human talent.

10.Behavior modification and self managed team as the basic

unit of an organization.

MBA 96624

Benefits of planned effort

The benefits of the planned effort tothe organisation are measured in termsof improvements noticed in theperformance of the sub-system wherethe change has been implemented,related sub-systems that have aninterface with the changed sub-system,and the organisation as a whole.

MBA 96625

Organization Development

• System-Wide Organizational Development

– Structural Change

• Is a comprehensive system-wide rearrangement of task division, authority, reporting relationships

• Affects performance appraisal and rewards, decision-making, communication, information-processing systems

MBA 96626

Organization Development (cont’d)

• Task and Technological Change

– Task redesign

• Changing tasks involved in doing the work, the technology, or both

– Technological change

• Changing how inputs are transformed into outputs

MBA 96627

Organization Development (OD)

• Relatively new field of study – 50’s & 60’s

• OD is about how organizations and people

function and how to get them function better

• Start Point – when the leader identifies an

undesirable situation and seeks to change it.

• Focus - Making organizations function better

(total system change).

• Orientation - Action (achieving results through

planned activities).

• No unifying theory – just models of practice

MBA 96628

History of Organization Development

MBA 96629

HISTORY OF OD:

1960S : OD was implemented in organizations via

consultants.

1970s-1980s : OD became a more established field.

1990s-till now : OD continued to grow & evolve.

MBA 96630

Four major stems of OD:

T-group/Laboratory Training

Action Research and Survey Feedback

Participative Management background

Productivity & QWL background

MBA 96631

Laboratory training stem

• The T-group: (T for training) it is an unstructured small-group situations in which participants learn from their own actions.

• An Inter-group Relations workshop held at State Teachers College in New Britain, Connecticut in 1946.

• Series of events at the new Britain Workshop of 1946 was later called T-group.

• T-Group consisted of Kurt Lewin, Kenneth Benne, Leland Bradford and Ronald Lippitt.

MBA 96632

• Each group in addition to group members and a leader, had an observer who made notes about interactions among members.

• End of the day, observer met with the staff and reported what they had seen.

• These sessions soon became the most significant learning experience of the conference.

MBA 96633

LABORATORY TRAINING BACKGROUND:

• Laboratory training began in 1946, when Kurt

Lewin was asked for help in research on

training community leaders.

• A workshop was developed & the community

leaders were brought together.

• At the end of each session, the researchers

discussed the behaviours they had observed.

• Thus, the first T-group was formed in which

people reacted to data about their own

behavior.

MBA 96634

The researchers drew two conclusions about this first

T-group experiment-

Feedback about group interaction was a rich

learning experience.

The process of ‘group building’ had potential for

learning that could be transferred to ‘back home’

situations.

Applying T-group techniques to organizations

gradually became known as team building.

MBA 96635

Robert Tannenbaum

• Some of the early sessions of what would now be called “team building” were conducted by him in 1952 and 1953.

• According to him, term vertically structured groups was used with groups dealing with “personal topics” as interpersonal relations and organizational topics as responsibilities etc.

MBA 96636

Douglas McGregor

• He was the first to talk about the transfer problem and to talk systematically about implementation of T-group skills in complex organizations.

• He along with others established a small internal consulting group which used behavioural science knowledge to help line managers and their subordinates learn how to be more effective in groups.

MBA 96637

Herbert Shepard and Robert Blake

• After initiating a series of two week laboratory, they emphasized on intergroup as well as interpersonal relations.

• Although working on interpersonal problems affecting work performance was clearly an organizational effort, but between group problem solving had even greater organizational development implications because it involved a broader and more complex segment of the organization.

MBA 96638

ACTION RESEARCH & SURVEY

FEEDBACK BACKGROUND:

• The action research contribution began in 1940

• The research needed to be closely linked to the

actions.

• A collaborative effort was made, to collect the

organizational data.

• To analyze the cause of the problem & then to

devise & implement a solution.

• Further data was collected to assess the results.

MBA 96639

Focus

Change – new state of things, different from old state of

things

Can be viewed as an opportunity or as a threat

Change (making moderate adjustments)

First order change

Second order change

(reinvent, reengineer)

MBA 96640

Three ingredients:

1. Participation

2. OD consultant (as collaborator & co-learner)

3. Iterative process of diagnosis & action

• Change occurs based on the actions taken

• New knowledge comes from examining the

results of the actions.

MBA 96641

Orientation

Diagnosing

Taking Action

Re-Diagnosing

Taking New Action

This process is known as

‘Action Research’

MBA 96642

Survey Research and Feedback stem

• It is specialized form of action research, the history of this stem revolves around the techniques and approaches developed over a period of years.

• Survey Research Center was founded by Rensis Likert, who is also famous for giving us the five point rating scale also known as Likert scale.

MBA 96643

PARTICIPATIVE MANAGEMENT

BACKGROUND:

Participative Management is a means of getting

employees involved in planning & managing changes.

Four types of management systems are:-

• Exploitative authoritative system

• Benevolent authoritative system

• Consultative authoritative system

• Participative group

MBA 96644

PRODUCTIVE & QWL BACKGROUND:

• The contribution of QWL(Quality of work life) is explained in

two phases.

• The first phase was developed in Europe in 1950 based on the

research of Eric Trist.

• This program involved developing a work design which aimed at

better integrating technology & people.

• Participation by unions & management in work design.

• The distinguishing characteristics of this program was developing

self-managing groups.

MBA 96645

• The second phase of QWL continues under the

banner of employee involvement.

• Employee contribution helps in running the

organization so that it can be more flexible,

productive & competitive

MBA 96646

• W.R. Bion, Rickman and others had been involved with a six-week “Northfield Experiment” at a military hospital during world war II. In this experiment each soldier was required to join a group that performed some task such as handicrafts as well as discuss feelings, interpersonal relations.

• Eric Trist in1947 visited a British coal mine, and observed that the teams that the workers themselves are better organized and different. Also result of the team approach was remarkable in safety and productivity both.

MBA 96647

• Role of OD practitioner

MBA 96648

Role of OD practitioner

– Problem identification

– Consultation/collaboration with OD consultant

– Data gathering and problem diagnosis

– Feedback

– Joint problem diagnosis (with group)

– Joint action planning (with group)

– Change actions

– Further data gathering

MBA 96649

RELEVANCE OF OD

3 major trends are shaping the changes in organizations:

• Globalization– changing markets & environment &

the way they function

• Information technology– has changed the traditional

way of doing business, how work is performed, how

knowledge is used, etc.

• Managerial innovation– new organizational forms,

such as networks, strategic alliances, large

corporations, etc are leading to new methods of

manufacturing goods and providing services.

MBA 96650

WHAT OD CAN DO:

• Helps in bringing change in organizations.

• Helps organizations to assess themselves & their

environment & build their strategies, structures &

processes.

• Helps in changing the assumptions & values in their

behavior.

• Helps in making organizations more responsive to the

needs of operating in highly complex & changing

world.

• Helps managers & staff to perform their tasks more

effectively. Provide skills & knowledge necessary for

effective relations.

MBA 96651

Second-Generation OD

• Organization Transformation

• Organizational Culture(To know more)

• Learning Organization (Senge developed workshops,exercises and games to create awareness of these disabilities)

• TQM(Total Quality Management)

• Visioning and Future Search(Marvin Weisbord has developed a“future search conferences” )

• Business Process Reengineering

• Quality of Work Life

MBA 96652

Interest in Organizational

Transformation

• “second-order change (organizational transformation) is a multi-dimensional, multi-level, qualitative, discontinuous, radical organizational change involving a practical shift.” (Amir Levy and Uri Merry)

• Increasingly, OD professionals distinguish between the more modest, or evolutionary efforts towards organization improvement such as: transitions, fundamental large-scale change in the organization etc.

MBA 96653

Interest in Organizational Culture

• Schein in particular has written extensively about culture, he has devised interventions to help leaders and employees identify those cultural assumptions that will assist the organization in attaining its goal and those that hinder goal attainment.

• The intervention may involve exploration of artifacts, values and assumptions as well as use of questionnaires to identify old norms and form new ones.

MBA 96654

Interest in Learning Organizations

• Senge writes extensively about the importance of systems thinking and also about learning disabilities that plague organizations.

• Some of the learning disabilities faced by the organizations are focusing on one's own job with little sense of collective product, another is blaming the “enemy out there”, Senge developed workshops, exercises and games to create awareness of these disabilities.

MBA 96655

Intensified interest in teams

• The recent years have seen a widening and deepening interest in teams specially high-performing teams, cross-functional teams, self-managed teams.

MBA 96656

TQM

• The past decade has seen a mushrooming interest in total quality management world-wide.

• “ Total Quality is typically a companywide effort seeking to install and make permanent a climate where employees continuously improve their ability to provide on demand products and services that customers will find of particular value”

MBA 96657

Visioning and Future Search

• In this approach interventions have been designed to help organizational members look to the future.

• Marvin Weisbord has developed a “future search conferences” in which organizational members work together on data by analyzing and drawing conclusions for future action steps.

MBA 96658

Extent of Application

MBA 96659

Extent of Application

• Business and industry are not the only kind of institutions involved.

• From public schools to medical schools, social welfare agencies, police departments, government units all are using the OD interventions.

• The rage of occupational roles that have been involved in OD is limitless ranging form managers, soldiers, psychologist, teachers, engineers, lawyers etc.