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Management and Organisational Development Unit 4
Sikkim Manipal University Page No. 72
Unit 4 Process of OD
Structure:
4.1 Introduction
Objectives
4.2 Process of OD
Components of OD program
OD program phases
4.3 Making an Entry
4.4 Developing Contract
4.5 Launch
Assessment
Action planning
Implementation
Follow-up
4.6 Situational Evaluation
4.7 Closure
4.8 Summary
4.9 Glossary
4.10 Terminal Questions
4.11 Answers
4.12 Case Study
4.1 Introduction
In the previous unit, you studied about OD Practitioner and various related
aspects such as role, competencies, strengths and career prospects of an
OD practitioner. In this unit, we will introduce you to OD process.
Organisations need to continuously introduce positive changes with the help
of the organisation development process for their survival in today’s
competitive environment. You should know that any organisational
development process begins with the understanding of problems in the
organisation that have to be solved. This process includes different stages
and phases. The process is cyclic and ends only when required result is
achieved. It is how you manage an OD program that makes the difference
between success and failure.
Management and Organisational Development Unit 4
Sikkim Manipal University Page No. 73
Therefore, in this unit you will able to provide guidelines which helps the
organisation to ensure success in managing OD Program.
In this unit, you will study many of the common techniques and approaches
associated with OD process. Our goal in this unit is to provide you a basic
framework for understanding OD process. We focus primarily on process of
OD, making an entry, developing contract and launching. We will conclude
this unit with a discussion of situational evaluation and finally closure.
Objectives:
After studying this unit, you should be able to:
describe the OD process
identify and give examples of different components of OD process
discuss the phases in the OD Program
4.2 Process of OD
Nowadays, one of the most challenging tasks for the organisation is to bring
out change by selecting and implementing the appropriate methods. The
process of OD is very complex and it takes around a year or more for its
completion.
4.2.1 Components of OD Programs
All OD Programs have three basic components as you can see in figure
4.1.These are – Diagnosis, Action and Programming.
(Source: http://www.authorstream.com/Presentation/Bharathisunagar-347048-5-
managing-od-process-entertainment-ppt-powerpoint/)
Figure 4.1: Components of OD Program
DIAGNOSIS
ACTION
PROGRAMMING
Management and Organisational Development Unit 4
Sikkim Manipal University Page No. 74
1. The diagnosis component: An OD program starts with the diagnosis,
collection and analysing the data throughout. It represents the collection
of data about its processes, total system, its subunits and its culture.
You can collect data via Questionnaires, Interviews, Observations and
Unobtrusive method (Unobtrusive methods means observing the people
in their lifelike settings and avoiding being obvious about observing them
because this can impact the conditions and thus the data being
collected).
For any planned change, continuous diagnosis is compulsory for any
organisation and is therefore basic to all goal seeking activities. The
diagnostic activities are designed to provide an accurate account of
things as they are needed for two reasons:
first is to know the state of things, i.e. “what is”
second to know the effects or consequence of the actions
Diagnosis is basically concerned with an organisation’s –
strengths
opportunities
problem areas
discrepancy between current situation and vision of desired future
With the help of following example, you are going to get better
understanding of the diagnostic component.
Example: If program is to be implemented in a manufacturing
organization, it needs to be started from the assembly line and then
move on to other staff and supporting activities.
2. The action component: These plans are designed in such a way that it
helps the organisation to:-
correct the problems
seize new and better opportunities
build and maintain areas of strength
OD components and interventions are sets of structured activities in
which selected organisational units engage in a sequence of tasks that
will lead to organisational improvement. Planning action, executing the
action and evaluating the consequences are part to OD. Thus, the
desired changes are produced by the actions of OD interventions.
Management and Organisational Development Unit 4
Sikkim Manipal University Page No. 75
The strategies of the intervention are based on the result of the
diagnostic process and the client system goals. It basically solves the
real problems instead of hypothetical problems. With the help of
following example, you will understand the action component.
Example: In human relations class, if a manager is having trouble
understanding and working with minority employees then he or she
would perhaps role play the situation with the instructor or fellow
students. In OD, the manager would probably interact with the minority
employees with whom he or she was having the difficulties but would do
so in carefully structured activities that have a high profitability of
learning for both parties of being a “success experience” for both parties.
3. The programming component: This component helps to improve the
functioning of the organisations which is executed with the help of
behavioural science principles and practices by the OD practitioners
which are then applied to manage the OD Programs.
Effectively managing the OD program reflects the success and failure of
the organisation. With the help of following example, you are going to
get a better understanding of the programming component.
Example: The Chrysler Group Company is an American automobile
producer based in Auburn Hills, Michigan. In the year 1925, it was first
formed as Chrysler Corporation. From years 1998 until 2007, the
company and its subordinates were among the Daimler Chrysler AG,
which is now called Daimler AG.
Before 1998, the Chrysler Corporation marketed under the symbol “C”
on New York Stock Exchange. In the early 1990s, Chrysler had terrible
customer service and press relations, with a history of innovation but
current reputation for out dated products. Its market share was falling,
and its fixed costs and losses were high.
Bob Lutz, the president, proposed a programme, Customer One. The
result was impressive as overhead was cut by $4.2 billion in less than 4
years. The company reversed its slide into bankruptcy and became
profitable.
Management and Organisational Development Unit 4
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4.2.2 OD Program phases
A logical progression of events is observed by OD Programs. Good
execution is an important part of the OD program. You can better
understand the various phases of OD program with the help of following
figure 4.2:
(Source: http://mcleanglobal.com/public/MGC/ODP%20Figure%20
Revision%201.pdf)
Figure 4.2: OD Process Model
You can see in the figure various stages of the OD process. All these
phases can be summarised as:
1. Making an entry (Entry)
2. Developing the contract (Start up)
3. Launch
Assessment(Assessment and feedback)
Action Plans(Action planning)
Implementation
4. Situational Evaluation (Evaluation, Adoption, Separation)
Management and Organisational Development Unit 4
Sikkim Manipal University Page No. 77
Case-Let :
JetBlue Airways & Organisational Development-Partners for Change
In JetBlue Airways Flight, the System Operations Centre (SOC) is the
heart of the airline – the epicentre where effective decision making,
communication, teamwork, and leadership are critical to ensure that
crewmembers are able to meet and exceed customer needs.
The 150 crewmembers of the SOC were at the forefront of these
organisational changes, which included turnover in leadership, expansion
into international markets, increased number of departures, and the
introduction of a new fleet type. Compounding the stress of these internal
changes were the external pressures of competing carriers emerging
from bankruptcy, increased fuel prices, as well as an increasing number
of low-fare carriers entering the marketplace.
JetBlue basically focused on the development of leaders with the
expectation that they will in turn treat their crewmembers right and lead
the company to prosperity. This model was appealing and easy to
interpret; more importantly, it linked to bottom-line business performance,
Management and Organisational Development Unit 4
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including market share, sales growth, and employee and customer
satisfaction.
40 interviews and focus groups from all departments and all levels within
the SOC were conducted to gain insight into the perceived strengths and
weaknesses of the department. After synthesizing the data, the OD
consultant met with SOC leadership to interpret the data during a one-
day working session.
The leadership team spent time anticipating and discussing what their
results may look like before seeing them. Once some initial hypotheses
were presented, the results were reviewed and the group was able to
focus their attention on two things that were working well (high scores on
the survey) and two things that were not working well (low scores on the
survey). The group then reviewed specific information about the gap in
scores between directors and managers. This gap illustrated important
perception differences between these leadership levels, about the SOC
department as a whole, as well as their respective team results.
The OD consultant stressed to the leadership team that focusing on a
few relevant areas was much more effective than creating a laundry list
of opportunities. Collecting and analysing the data was only the first step
in the change process. The OD consultant met regularly with each
member of the SOC leadership team individually to educate them about
the role of leadership during the change process, reasons why people
resist change, and how to develop strategies to overcome that
resistance.
The organisational development and culture change work in the SOC
continues today. The SOC leadership team owns the process and the
culture of the department, making the OD team’s involvement very low
and leadership’s involvement very high. No longer is the kind of work that
resulted from this project considered additional duties that leadership
“must” perform.
Because the OD consultant set the foundation from the beginning by
delegating key tasks to stakeholders, having clear sponsorship and
having accountable leaders, a mindset shift has occurred – the idea that
creating a high performing culture is part of every leader’s job. The action
Management and Organisational Development Unit 4
Sikkim Manipal University Page No. 79
plan that resulted from the Culture Change Monitor Survey is underway
and bi-weekly working sessions are held to execute the plan. JetBlue
plans to continue their work with the Denison Organisational Culture
Survey, administering the survey annually to assess strengths and
weaknesses.
The crew is upbeat as they know exactly where and when they are
supposed to report for their flight. The possible disruption to the flight due
to the late-arriving aircraft is avoided as the leaders of each team within
the SOC communicate to each other in an efficient, effective manner.
The customers, unaware of the activity behind the scenes now driven by
improved processes, tools, and more satisfied crewmembers, sit back
and enjoy JetBlue’s leather seats, DIRECTV® programming and award-
winning service.
(Source: http://www.denisonconsulting.com/Libraries/Resources/CS-2007-
JetBlue-System-Operations.sflb.ashx)
Self Assessment Questions
1. Collection of data about its processes, total systems, subunits and
culture is Diagnostic component. (True/False)
2. Which is not the component of OD Program?
(a) Diagnosis
(b) Situational evaluation
(c) Programming
(d) Action
3. Desired changes in the organisations are produced by the actions of
____________________.
4.3 Making an Entry
OD Program represents the following components:
initial contact between consultant and client
exploring the situation which help the client to seek a consultant
determining good match between the problem or the opportunity and
consultant and the client
The first phase of consulting is generally also called the “contact and
contract phase” in which the establishing of a consulting relationship is the
Management and Organisational Development Unit 4
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main objective. In this phase, the most important aim and also the question
is “Is it possible to accomplish the kind of cooperative relationship that is
required for consulting to start?”
This phase usually starts out when a key decision-maker in the organisation
or someone with influence and power feels that the organisation has various
problems that could be resolved with the assistance of an OD practitioner.
Contact between the client and the OD consultant is what starts the entry
phase. After the initial contact, the OD consultant and the client start the
procedure of exploring the possibilities of a functioning relationship.
During this process, the OD consultant evaluates:
the prospect of associating with the client
the inspiration and values of the client
the client’s preparation for change
the level of resources available
possible leverage points of change
During this initial contact, OD consultant and the client carefully appraise
each other. The specialist has his own prescriptive developmental theory
and reference frame and must be mindful of these values and assumptions.
Sharing these values and assumptions with client from the root launches a
collaborative, open and productive atmosphere.
After completion of the necessary initial activities, the first step both
consultant and client take is to meet together to discuss the various issues
such as – whether they will work together or not, evaluate the willingness of
the organisation to change and be in the agreement on the same conditions
under which they will going to work together.
Identifying the basic needs for change is the first phase in the organisation
that reflects the nature of organisation, identifying the appropriate decision
maker and building up trust and maintaining the smooth and cordial
relationship which help the organisation to achieve its goals. The final
outcome of this step is joint decision made by the client and practitioner
about whether the relationship is worth pursuing or not. In table 4.1 given
below, you can study various entry tasks and actions for client/consultant
meeting.
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Table 4.1: Entry Tasks and Actions for Client/Consultant Meeting
Tasks Actions
1. Introductions Share and acknowledge personal and professional information for building client/practitioner relationship. Engage client with genuine interest and curiosity. Track what is being said and how information is being shared; attend to process and content; observe information about the culture, morale, and relationships.
2. Clarify meeting boundaries
Model effective meeting management: time, pace, outcomes, who needs to be present, roles.
3. Identify client(s) Identify contracting client(s), the client making use of the consultation, and the client with the authority to control the process and implement outcomes.
4. Invite client to “tell their story”
Ask questions and seek examples to understand concerns and issues, what the client system wants to change, the need behind the request to meet, other change efforts, current and previous strategies, successes and failures. Actively listen and reflect back to the client understanding of issues and concerns. Learn, adapt to, and appropriately use the language of the organisation.
5. Inquire about client wants, expectations, hopes
Engage in dialogue about wants, expectations, hopes, fears, and risks for the work and client/practitioner relationship. Attend to feelings in client and in self -- warmth, excitement, hostility, and disinterest.
6. Explore diversity issues
Explore client/practitioner differences and how they might impact the work and relationship. Inquire and share about organisational patterns and impacts for different groups; what is being tracked, heard, seen, and felt; and the meaning being made of it so far.
7. Explore values and ethics
Share values and ethical boundaries and inquire about those for the client. Foresee potential value conflicts or ethical dilemmas embedded in the consultation and explore them with the client
8. Surface resistance Explore the forces that will help and hinder success. Identify, name, and explore resistance in self and the client. Inquire about what is not being discussed.
9. Assess client/ practitioner “fit” and decide to proceed, recycle, or tell the client no
Assess fit between the client/practitioner needs, values, interests, time requirements, credibility, confidence, trust, readiness, and commitment to the work.
Management and Organisational Development Unit 4
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Self Assessment Questions
4. ______________ is the first phase of the OD process.
5. Which of the following are the components of the entry phase of the
OD program?
(a) contact between client and consultant
(b) exploring the situation
(c) determining the good match between the problem or the
opportunity and consultant and the client constitute
(d) all of the above
6. Making an entry determines the cordial relationship and contact
between client and consultant. (True/False)
4.4 Developing Contract
When the entry stage has been successfully accomplished by the client and
consultant about their needs, values, interests, time required, credibility,
confidence, trust readiness and commitment to work, the next step is to
develop the contract.
The contract involves:
a general agreement having first description preferably keeping open as
many options as possible for future changes
a mutual commitment by consultant and client to work towards
betterment
conditions necessary to start a successful collaboration, particularly in
terms of mutual roles and responsibilities.
Contracting basically involves – establishing mutual expectations reaching
agreement on expenditures of time, money, resources and energy and
clarifying what each party expects to get from the other and give to the
other.
In those cases where the manager of a work group or department serves as
his or her own OD practitioner, entering and contracting typically involve the
manager and group members meeting to discuss what issues to work on
and how they will jointly accomplish that. Here, entering and contracting are
relatively simple and informal. They involve all relevant members directly in
the process without a great number of formal procedures. In situations
where manager and administrators are considering the use of professional
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OD practitioners, either from inside or from outside the organisation,
entering and contracting tend to be more complex and formal.
Thus, there should be clarity in the agreement regarding the work related
issues i.e. who will going to address it, how it will going to achieve it , the
other stages of the OD process are likely to be confusing and create the
complexity in the organisation.
The basic objective of Contracting is to make good decisions so as it will
help the organisation to carry out the OD process successfully. The three
key areas in OD process are:
the expectations that each party gain from OD Process
time and resources spent on it
ground rules of working together
Example: Internal practitioners are often asked by one manager to “go fix”
another manager. This is clearly a set-up for a very difficult first meeting.
The practitioner’s role must still be to work through the stages of entry and
contracting and find those places where the manager is determined,
committed, involved, and feels ownership. Mutuality must be achieved or
there is no contract. And if there is no contract, there is no client.
In table 4.2, you can see various contracting tasks and actions between a
client and the consultant.
Table 4.2: Contracting Tasks and Actions for Client/Consultant Meeting
Tasks Actions
1. Clarify client goals and outcomes
Collaboratively develop clear statement of consultation goals and outcomes.
2. Describe consultation and requirements for success
Collaboratively develop description of the consultation/change process, possibilities and dilemmas embedded in it, implications for individual, interpersonal, group, and organisation levels of the system, and what is needed from the client, organisation, and practitioner for a successful consultation.
3. Clarify wants, needs, wishes
Explore and share client/practitioner wants, needs, wishes..... for contact, control, information, and involvement in the consultation. Make affirming statements and demonstrate understanding and empathy. Provide reassurance.
Management and Organisational Development Unit 4
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4. Clarify roles, responsibilities, commitment
Clarify and define client/practitioner roles, responsibilities, and levels of commitment. Agree about joint client/practitioner responsibility for consultation outcomes.
5. Define project/consultation scope
Collaboratively define the scope of the project, including initial strategies, objectives, steps, critical success factors, stakeholders, participants, products (if any) and delivery time lines, external factors that can impact the consultation, and who else needs to be involved in defining the details of the project.
6. Negotiate consultation resources
Negotiate time, money, support services, and involvement of personnel required for successful project completion. Discuss costs openly, including practitioner fee structure, expenses, and payment schedule.
7. Establish process for feedback, evaluation, and termination
Establish ongoing process for evaluating all aspects of the consultation, including outcomes, deliverables, client/practitioner relationship, time lines. Provide for re-contracting at appropriate intervals. Establish ground rules for terminating the consultation.
8. Summarise contract and put it in written form
Collaboratively develop a written agreement summarising the consultation, including: client/practitioner expectations, process and scope, outcomes, deliverables, client/practitioner relationship, time lines, nature and frequency of client/practitioner communication, practitioner fee structure, expenses, and payment schedule. Determine next steps – who, what, when, where, how, how much, how long.
Self Assessment Questions
7. While developing a contract there should be clarity in ______________
related issues.
8. Select the important key areas in OD Process?
(a) the expectations that each party gain from OD Process
(b) time and resources spent on it
(c) ground rules of working together
(d) All of the above
Management and Organisational Development Unit 4
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9. The basic objective of OD is to make good and appropriate decisions.
(True/False)
Activity 1
With the help of diagnostic framework, analyse the culture of a major
retailer by consulting (1) the company/organisation’s website; (2)
company publications/ documentation/ advertisement; (3) the retail outlet
(customer face): and (4) observing the behaviour of staff.
4.5 Launch
After entering and developing the contract, the next step in the OD process
is to Launch which involves Assessment, Action plans, Implementation and
Follow-up of those plans (See figure 4.3).
Figure 4.3: Steps in Launch of OD Process
4.5.1 Assessment
It is a fact finding phase which is also known as diagnostic or analysis
phase. In this phase both the consultant and the client work together which
determine the norms and culture which reflects the strength and weakness
of the organisation and finally deliver the appropriate information to the other
members of the organisation.
This picture of organisation is shown with the help of the data gathered
through interviews, questionnaires, observations, examination of
organisation documents and information.
Management and Organisational Development Unit 4
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With the help of following example, you can better understand why
consultant applies the assessment approach in the organisation.
Example: a consultant can use a business assessment approach that looks
at what is working/not working from customer, employee and financial
perspectives. From there, a consultant makes choices on how to conduct
the assessment. Some consultants choose an appreciative inquiry approach
that boils down to what is working instead of asking questions about what is
not working.
Thus, it helps the consultant to diagnose the problems and troubles that
arise in the organisation and accordingly recommend the appropriate
interventions and looking out for better opportunities that helps the
organisation to be successful in achieving its objectives.
4.5.2 Action planning
It refers to the activities that help the organisation to know:
what requirements are to be needed
when this requirement is to be needed
by whom this requirement is to be done
with the help of which resources or inputs these requirements are to be
carried out
Planning is made in order to build the strength and opportunities for the
following purposes in the organisation:
enhancement
challenges
cultural norms
concerns
Developing and adopting the best strategies and to manage the transition
between present and future states are the important key areas of action
planning. The guidelines needed for action plan are as follows:
There should be linkages between goals and activities
There should be clear identification of activities
Activities should be time sequenced
Top management must support the change plan
Plan must be cost effective
Management and Organisational Development Unit 4
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Thus, it guides the organisation to move ahead so as to achieve its goals
and objectives for its success. Therefore, making the advance planning
helps the organisation in achieving long term results with the help of loading
the process of deliberate success.
4.5.3. Implementation
This is also known as Intervention which helps the organisation to develop
and adopt the plans that were made in the above phase. Thus, with the help
of implementation of plans, the organisation will able to find out correct and
accurate problems and seize out better opportunities.
If the implementation is not adopted properly then the whole process will
again start. Various forms of Implementations are shown with the help of
following table 4.3.
Table 4.3: Different Types of Implementation
Organisational Development
values, mission and values must be specified and clarified
clarification in the strategic direction
unity of purpose
strategy identification
implementation of plans
While working through resistance, mutual understanding, cooperation and commitment is necessary for strategic change
Team
Development
build up the committed, trusted and empowered teams
facilitate decision making and solving the problems of the team
finding out the requirement of the talented people for the present and future and prepare them to close the gap
For the new direction, team synergy, creativity and commitment must be structured.
Individual
Development
balancing career and matter related to life
develop personal and professional development plans
4.5.4 Follow-up
It provides the opportunity for the members of the organisation to become
the part of the change process, to learn about how one part of the
organisation affects the other and to become the participant in the selection
of appropriate change intervention.
Management and Organisational Development Unit 4
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Self Assessment Questions
10. Which of the following are the categories of Launching?
(a) Assessment
(b) Action planning
(c) Implementation
(d) All of the above
11. Implementation is a fact finding phase. (True/False)
12. _____________ guides the organisation to move forward for achieving
its goals and objectives.
4.6 Situational Evaluation
After the implementation of the plan, the next step in the OD process is to
evaluate the situation which represents the assessing effects of the plans.
This phase answers the following questions:
Was it successful?
What changes occurred?
What were the techniques used?
Are we satisfied with the results?
Thus, it reflects whether the developed plan has helped the organisation in
achieving its goals and objectives or not.
To evaluate the situation the following things need to be identified:
success of the organisation
appropriate and meaningful changes in the efficiency and performance
of the organisation
identify needs for new OD activities
bring out changes in the process of OD which helps to make future
interventions more successful
Thus, situational evaluation helps to identify the effectiveness and the
efficiency of the proper utilisation of all its resources in achieving the
organisational goals. Therefore, organisational effectiveness is influenced
by the evaluation based on the series of situations.
Management and Organisational Development Unit 4
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Self Assessment Questions
13. After implementation, the next important stage in the OD Process is
_________.
14. What analysis the organisation needs to do after evaluation:
(a) Is it successful?
(b) Occurrence of any changes
(c) Techniques used
(d) All of the above
15. Evaluation represents the assessing effects of the plans adopted by the
organisation. (True/False)
4.7 Closure
After the implementation and evaluation is done, the last and the final stage
in the OD Process is to find out whether the goals of the intervention that
have been evaluated in the above stage has been achieved or not.
If yes then the change that was implemented becomes the part of the
business of the organisation and will be institutionalised.
Self Assessment Questions
16. The last stage of the OD Process is __________________.
17. Implementation of plan that has been institutionalised in the
organisation has been done while developing the contract. (True/False)
18. Which of the following are included in the OD Process?
(a) Developing the contract
(b) Implementation
(c) Closure
(d) All of the above
Activity 2
Select an organisation of which you would you like to work and become
OD Practitioner. Give your opinion whether you want to work with it as an
Internal Consultant or External Consultant. Why?
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4.8 Summary
Effectively managing the OD Program decides the success or the failure
of the organisation.
To bring out change with the help of selection and implementation is the
most challenging task for any organisation.
The three basic components of OD Program are: Diagnosis, Action and
Programming.
The various steps that are the part of the OD phase are: Making an
entry, Developing a contract, Assessment, Action Planning,
Implementation, Situational Evaluation and finally Closure.
The way through which OD is to be carried out in the organisation is the
most important and essential factor of the Organisational change.
4.9 Glossary
Action plan: It is series of steps that must be taken for achieving the goal.
Change: Change means the new state of things and is different from the old
state of things.
Consultant: He is an advisor or a mentor or guide.
Contract: It is an agreement between two or more parties which must be
written and enforceable by law.
Diagnosis: It is a mutual effort done by the consultant and the organisation
members by gathering and organising the data and finally feed the data
back to the client system.
Organisational Development: OD is a planned approach to improve
employee and organisational effectiveness by conscious interventions in
those processes and structures that have immediate bearing on the human
aspects of the organisation.
4.10 Terminal Questions
1. Explain various components of OD Programs?
2. Why maintaining contract is essential for the organisational change?
3. What is diagnosis in OD?
4. Describe the steps in OD Process. Explain with the help of diagram.
Management and Organisational Development Unit 4
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4.11 Answers
Self Assessment Questions
1. True
2. (b)
3. OD Intervention
4. Making an entry
5. (d)
6. True
7. Work
8. (d) All of the above
9. True
10. (d)
11. False
12. Action Planning
13. Situation Evaluation
14. (d)
15. True
16. Closure
17. False
18. (d)
Terminal Questions
1. The various components of OD Programs are: Diagnosis, Action and
Programming. For more details refer to section 4.2.
2. Developing the contract between the consultant and the client is the
important phase in the OD Program. For more details refer to section
4.4.
3. Diagnosis in OD is a mutual effort done by the consultant and the
organisation members by gathering and organising the data and finally
feed the data back to the client system. For more details refer to section
4.2.
4. The various steps that are the part of the OD phase are: Making an
Entry, Developing a Contract, Assessment, Action Planning,
Implementation, Situational Evaluation and finally Closure. For more
details refer to sections 4.3- 4.7.
Management and Organisational Development Unit 4
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4.12 Case Study
Case: The Old Family Bank
The Old Family Bank is a large bank in the south-eastern city of California.
As a part of a comprehensive internal management study, H. Day, the data
processing vice president, examined the turnover, absenteeism, and
productivity figures of all work groups in the organisation. The results Day
obtained contained no real surprises except in the case of the check-sorting
and data processing departments.
The Study
The study revealed that in general the department displaying high turnover
and absenteeism rates had low production figures, and those with low
turnover and absenteeism were highly productive. When analysis began not
he check sorting and data processing figures, Day discovered that both
departments were tied for the lead for the lowest turnover and absenteeism
figures. What was surprising was that the check-sorting department ranked
first as the most productive unit, whereas the electronic data-processing
department ranked last.
The inconsistency was further complicated by the fact that the working
conditions for check-sorting employees are extremely undesirable. They
work in a large open room that is hot in the summer and cold in the winter.
They work alone and operate high-speed check-sorting machines requiring
a high degree of accuracy and concentration. There is little chance for
interaction because they all take rotating coffee breaks. The computer room
is air-conditioned, with a stable temperature the year round; it has perfect
lighting and is extremely quiet and convertible. It was known that both
groups are highly cohesive and that the workers function well with others in
their department. This observation was reinforced by the study’s finding of
the low levels of turnover and absenteeism.
The Interview Data
In an effort to understand this phenomenon, vice president Day decided to
interview the members of both departments. Day hoped to gain some insight
into the dynamics of each group’s behavior. It was discovered that the
check-sorting department displayed a great deal of loyalty to the company.
Most of the groups are unskilled or semiskilled workers, although they have
no organised union, and each person felt that the company had made
Management and Organisational Development Unit 4
Sikkim Manipal University Page No. 93
special efforts to keep their wages and benefits in line with organised
operations. They knew that their work required team effort and were
committed to high performance.
A quite different situation existed in the data-processing department.
Although the workers liked their fellow employees, there was a uniform
feeling among this highly skilled group that management placed more
emphasis on production than on staff units. It was their contention that pay
increases had been better for operating department and that the gap
between the wage earners and salaried employees did not reflect the skill
differences. Because of that, a large percentage of the group displayed little
loyalty toward the company, even though they were very close among
themselves.
Questions:
1. Discuss the role of OD consultant. Identify the possible modes through
which consultant and client relate to each other.
2. What are the possible assumptions in the initial relationship between the
consultant and client?
3. What are the implications of these assumptions on the consultants
behaviour?
4. Identify the issues that need to be considered while developing the
effective client – consultant relationship.
Source: http://www.papercamp.com/group/old-family-bank-southeastern-city/page-
1200
References:
Lenny T Ralphs. (2004). Organization Development (A Practicioner’s
Tool Kit). New Delhi, India: Viva Books Private Limited.
Kavita Singh. (2010). Organisation Change and Development. New
Delhi, India: Excel Books Pvt. Ltd.
Carter McNamara. (2005). Consulting and Organizational Development
– A Collaborative and Systems Approach Performance, Change, and
Learning. Minnesota, USA: Authenticity Consulting, LLC.
Wendell L French, Jr. Cecil H Bell. (1998). Organization Development,
1/E. New Delhi, India: Pearson Education
Management and Organisational Development Unit 4
Sikkim Manipal University Page No. 94
E-References:
http://mcleanglobal.com/public/MGC/ODP%20Figure%20Revision%201.
pdf/ Retrieved 13 June 2012, Time: 10:25 AM
http://www.authorstream.com/Presentation/Bharathisunagar-347048-5-
managing-od-process-entertainment-ppt-powerpoint/ Retrieved 13 June
2012, Time: 12:50 PM
http://my.safaribooksonline.com/book/hr-organizational
management/9780749460945/04-the-diagnostic-
phase/what_is_diagnosis_in_od_what_a/ Retrieved 14 June 2012,
Time: 11:25 AM
http://www.bkconnection.com/static/mcleanexcerpt.pdf/ Retrieved 14
June 2012, Time: 02:10 PM