Organisation Development

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ORGANIZATION ORGANIZATION DEVELOPMENTDEVELOPMENT

The New Approach to change


What is ODWhat is ODA series of planned processes by which human resources are identified, utilized, and developed in ways that strengthen organizational effectiveness by increasing problem-solving capabilities and planning

OD IMPLIES:

• planning • identification and use of human

resources

• strengthening of organizational effectiveness


How does OD affect top How does OD affect top management?management?• It is long-range in perspective• Requests support from the top

managers, because they control resources and rewards

• Expands their ideas, beliefs, and behavior


How does OD affect How does OD affect employees?employees?

• diagnosing problems

• considering solutions

• selecting a solution

• identifying change objectives

• implementing planned change

• evaluating results


OD brings MANAGERS

and EMPLOYEES together

holding them all responsible for the success and failure of a change effort.


Key terms in ODKey terms in ODCHANGECHANGE = a departure from the status quoa) Alpha change – constant progressb) Beta change – variable progressc) Gamma change – variable progress combined with a radical change =

transformational change

1.1. CHANGE AGENT CHANGE AGENT = the person responsible for beginning and maintaining a change effort

2.2. CLIENTCLIENT = organization, group, individual whose interests the change agent primarily servers

3.3. CULTURECULTURE = basic assumption and beliefs shared by the members of an organization

4.4. INTERVENTIONINTERVENTION = a change effort


5.5. ORGANIZATIONAL DEVELOPMENTORGANIZATIONAL DEVELOPMENT (different from OD) = any effort to improve an organization

6.6. SPONSORSPONSOR = one who underwrites, legitimizes and champions a change effort or OD intervention

7.7. STAKEHOLDERSTAKEHOLDER = one who has an interest in an OD intervention8.8. SUBSYSTEMSUBSYSTEM = part of a system (e.g. work units, department, divisions, activities,

processes, structures)9.9. SYSTEMSYSTEM = inputs, transformation processes, outputs

Key terms in ODKey terms in OD


Philosophical Influence on the OD: Philosophical Influence on the OD: Schools of Management ThoughtSchools of Management Thought

THE CLASSICAL SCHOOLAssumptions1. Work is inherently distasteful to

most people2. What workers do is less

important than what they earn for doing it

Policies1. The manager’s basic task is to

supervise and closely control subordinates.

2. The manager must break down tasks into simple, repetitive, easily-learned operations.

THE HUMAN RESOURCES SCHOOLAssumptions1. Work is not inherently distasteful.

People want to contribute to meaningful goals which they have helped establish.

2. Most people can exercise far more creative, responsible self-direction and self-control than their present jobs demand.

Policies1. The manager’s basic task is to coach

and to make use of “untapped” human resources.

2. The manager must create an environment in which all members may contribute to the limits of their abilities.

THE HUMAN RELATIONS SCHOOL

Assumptions

1. People want to feel useful and important.

2. People desire to belong and to be recognized as individuals.

Policies

1. The manager’s basic task is to make each worker feel useful and important.

2. The manager should keep subordinates informed and listen to their objections to the manager’s plans.


THE CLASSICAL SCHOOL1. The manager must establish work

routines and procedures and enforce these firmly and fairly.

Expectations

1. People can tolerate work if the pay is decent ant the boss is fair.

2. If tasks are simple enough and people are closely controlled, they will produce up to standards.

THE HUMAN RELATIONS SCHOOL

1. The manager should allow subordinates to exercise some self-directions and self-control on routine matters.

Expectations

1. Sharing information with subordinates and involving them in routing decisions will satisfy their basic needs to belong and feel important.

2. Satisfying these needs will improve morale and reduce resistance to formal authority; subordinates will “willingly cooperate”.

THE HUMAN RESOURCES SCHOOL1. The manager must encourage full

participation on important matters, continually broadening subordinate self-direction and control.

Expectations

1. Expanding subordinate influence, self-direction, and self-control will lead to direct improvements in operating efficiency.

2. Work satisfaction may improve as a “by-product” of subordinates’ making full use of their resources.

Source: Miles, R.E.(1975), Theories of Management: Implications for Organizational Behavior and Development, New York: McGraw-Hill, p. 35.


Methodological Influences to ODMethodological Influences to OD• Laboratory training

• Survey Research and Feedback – Rensis Likert

Likert’s Four Types of OrganizationsLikert’s Four Types of OrganizationsSystem 1: Exploitive - Authoritarian

• Dogmatic leadership

• Manipulative use of rewards

• Top-down communication

System 2: Benevolent - Authoritative

• Parental approach of management

System 3: Consultative

• Management listens to employees, but reserves the right to male decisions

• Some reliance on intrinsic rewards; most rewards are based on extrinsic (money rewards)

System 4: Participative

• Leadership based in influence

• Intrinsic rewards predominate

•Two-way communication


Newer contributions to the Newer contributions to the development of ODdevelopment of OD

TQM = Total Quality Management drives attention on the creative human

potential and on people’s ability to improve their work

BPR = Business Process Reengineering brings interest to the radical

organizational change and restructuring


Human Relations FieldsHuman Relations Fields1. HR Development

a) Training

b) Education

c) Development

Common Goal: to bring about “the possibility of performance improvement and/of personal growth”

2. HR Management

a) Recruitment

b) Selection

c) Placement

d) Compensation

e) Benefits

f) Appraisal

g) HR information systems

Common Goal: to increase organizational productivity by using the talents of its current employee

3. HR Environment

a) Organization Development

b) Job redesigning

Common Goal: to improve the work environment through planned, long-term, and group-oriented change in organizational structures or interpersonal relations


The Human Relations Wheel (McLagan, 1989)The Human Relations Wheel (McLagan, 1989)HR Development represents the integrated use of:

TRAINING AND DEVELOPMENT

ORGANIZATION DEVELOPMENT

CAREER DEVELOPMENT

TO IMPROVE INDIVIDUAL, GROUP AND ORGANIZATIONAL EFFECTIVENESS


Knowledge Requirements for OD Knowledge Requirements for OD specialistsspecialists

• Organization Development• HR planning• Training and development• Employment and personnel practices• Compensation and benefits

• Personnel research• Collective bargaining• HR information system• Health and safety


OD can only intervene in situations of:OD can only intervene in situations of:• Need for change felt at the top of the management• Problems in the work environment• Managers committed to long-term improvement• Managers and employees are all willing to listen to the OD’s key

assumptions formulated by internal or external consultants• Trust and cooperation• Top managers are willing to provide all necessary resources for expertise


Alternatives to ODAlternatives to OD1.1. THE LEGALISTIC APPROACH THE LEGALISTIC APPROACH –

intervenes when there are differences between the legal standards and the organization’s practices

2.2. THE DIALECTIC APPROACH THE DIALECTIC APPROACH – public debate between two persons or groups analyzing the same problem from two different perspectives

3.3. THE LEADERSHIP CHANGE THE LEADERSHIP CHANGE APPROACH APPROACH – the temporary change of the leader

4. THE PERSUASIVE APPROACH THE PERSUASIVE APPROACH – convincing people that change is needed

5. THE COERCITIVE APPROACH THE COERCITIVE APPROACH – imposing change by force; it is generally counterproductive and it is considered as a last alternative


BRASOV

Str. Zizinului bl. 9, ap. 3Tel: 0742 [email protected]

SIBIU

Str. Somesului nr.7Tel: 0723 774455

[email protected]

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