Organization Development (OD)

Organization Development (OD)

presented by

Meditha KarunatillakaMeditha KarunatillakaMBA, Dip in HRM, Dip in T & D, AMTD, MHRPMBA, Dip in HRM, Dip in T & D, AMTD, MHRP

Definition-what is an organizationDefinition-what is an organization

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

DefinitionDefinitionOrganization Development (OD)Organization Development (OD)

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

Why Study OD ?

Can improve individual performance Create better morale Increase organizational profitability

Related to OD

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

WHY DO OD?

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

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

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

• Unique in nature

• Reflexive

• Self-analytical

• Self-skill building in nature

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

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.

Elements of the OD process• Entering and contracting

• Diagnosing ( Organization, groups and jobs)

• Planning and implementing change

• Evaluating and institutionalizing

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

• 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

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

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.

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.

Organizational Diagnosis1. 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?

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 agent’s kills and abilities .

• Depending on the outcomes of diagnosis, there are four major types of interventions in OD

Comparison of Planned Change Model

Problem identificationProblem identification

Consultation with Behavioural Science Expert

Consultation with Behavioural Science Expert

Data gathering and Preliminary Diagnosis

Data gathering and Preliminary Diagnosis

Feedback to Key Client of Group

Feedback to Key Client of Group

Joint Diagnosis of Problem

Joint Diagnosis of Problem

Joint Action PlanJoint Action Plan

ActionAction

Data Gathering after Action

Data Gathering after Action

UnfreezingUnfreezing

MovementMovement

RefreezingRefreezing

Initiate the InquiryInitiate the Inquiry

Inquiry into Best Practices

Inquiry into Best Practices

Discover ThemesDiscover Themes

Envision a Preferred Future

Envision a Preferred Future

Design and Deliver Ways to

Create the Future

Design and Deliver Ways to

Create the Future

(A)Lewin’s Planned Change Model

(A)Lewin’s Planned Change Model

(B)Action Research

Model

(B)Action Research

Model

(C)PositiveModel

(C)PositiveModel

Major Types of Interventions in OD .

• Human Process InterventionsHuman Process Interventions

• Techno structural InterventionsTechno structural Interventions

• Human Resources Management Human Resources Management InterventionsInterventions

• Strategic InterventionsStrategic Interventions

Human Process InterventionsHuman Process Interventions• CoachingCoaching• Training and DevelopmentTraining and Development• Process Consultation and Team BuildingProcess Consultation and Team Building• Third-party Interventions (Conflict Resolution)Third-party Interventions (Conflict Resolution)• Organization Confrontation MeetingOrganization Confrontation Meeting• Intergroup RelationshipsIntergroup Relationships• Large-group InterventionsLarge-group Interventions

Techno structural InterventionsTechno structural Interventions

• Structural DesignStructural Design

• DownsizingDownsizing

• ReengineeringReengineering

• Employee InvolvementEmployee Involvement

• Work DesignWork Design

Human Resources Management InterventionsHuman Resources Management Interventions

• Goal SettingGoal Setting

• Performance AppraisalPerformance Appraisal

• Reward SystemsReward Systems

• Career Planning and DevelopmentCareer Planning and Development

• Managing Work Force DiversityManaging Work Force Diversity

• Employee Stress and WellnessEmployee Stress and Wellness

Strategic InterventionsStrategic Interventions

• ntegrated Strategic Changentegrated Strategic Change

• Mergers and AcquisitionsMergers and Acquisitions

• Alliances and NetworksAlliances and Networks

• Culture ChangeCulture Change

• Self-designing OrganizationsSelf-designing Organizations

• Organization Learning and Knowledge ManagementOrganization Learning and Knowledge Management

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 intervention’s 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 agent’s kills and abilities .

• Depending on the outcomes of diagnosis, there are four major types of interventions in OD

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

Organizational Development Techniques (cont’d)

Survey Feedback Approach

The use of questionnaires to identify discrepancies among member perceptions; discussion follows and remedies are suggested


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.


Team Building Activities

• Goal and priority setting

• Developing interpersonal relations

• Role analysis to each member’s role and responsibilities

• Team process analysis

Team Building Activities

• Goal and priority setting

• Developing interpersonal relations

• Role analysis to each member’s role and responsibilities

• Team process analysis

Team Building

High interaction among team members to increase trust and openness


Intergroup Problem Solving:

• Groups independently develop lists of perceptions

• Share and discuss lists

• Look for causes of misperceptions

• Work to develop integrative solutions

Intergroup Problem Solving:

• Groups independently develop lists of perceptions

• Share and discuss lists

• Look for causes of misperceptions

• Work to develop integrative solutions

Intergroup Development

OD efforts to change the attitudes, stereotypes, and perceptions that groups have of each other

Open Systems Model

Inputs• Information• Energy• People

Transformations• Social Component• Technological Component

Outputs• Goods• Services• Ideas

Environment

Feedback

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

Organisation-Level Diagnostic Model

Inputs

GeneralEnvironment

Uncertainty in social, technological, economic ,

ecological and political forces

IndustryStructure

Five forces – suppliers, buyer, threats of entry,

threats of substitutes and rivalry among competittors

Design Components Outputs

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

StrategyThe way a company uses its resources human economic or technical to gain and sustain competitive advantage

Organisation design

Organisation performance

Productivity

Stakeholder satisfaction

Goal Clarity

Task TeamStructure Functioning

Group GroupComposition Norms

Design Components Outputs

OrganisationDesign

TeamEffectiveness

Group-Level Diagnostic Model

Inputs


skill Variety

Task Identity Autonomy

Task Feedback Significance about Results

Individual-Level Diagnostic Model

Inputs Design Components Outputs

Organisation

Design

Group Design

PersonalTraits

IndividualEffectiveness


Journey of Life……

Documents

Organization Development (OD)