Organizational development

ORGANIZATIONAL DEVELOPMENT

• Organization Development (OD) concerns system wide planned change, uses behavioral science knowledge, targets human and social process of organizations, and intends to build the capacity to adapt and renew organizations.• The “O” is about organizations (systems) of all kinds; the units throughout society that are human organizations existing to accomplish some purpose• The “D” is about change & improvement; growing towards something, getting better at one’s mission, improving how work gets done & people live their lives• A mindset (way of seeing the organization world)• A set of value-based perspectives• A philosophy of organizing, managing and changing organizations that include the human element.• An integration, across disciplines, of theories, concepts and methods, for understanding & changing human systems (anthropology, psychology, sociology, behavioral science)• A field of study & practice

ORGANIZATIONAL DEVELOPMENT

• Human Relations work that highlighted the primacy of social factors, attitudes, and feelings in organization behavior, influencing productivity and morale • Leadership that brought legitimacy to participative and democratic methods• Group Dynamics and focus on group behavior, interpersonal relations, and self-awareness• Organization Development is aimed creating the Business Structure, Systems and Procedures, Competencies and Cultures that will ensure the business achieves its goals. • Organizational development (OD) is a field of study that addresses change and how it affects organizations and the individuals within those organizations. Effective organizational development can assist organizations and individuals to cope with change.• Professional development attempts to improve an individual’s effectiveness in practice, while organizational development focuses on ways to improve an organization’s overall productivity, human fulfillment, and responsiveness to the environment

ORGANIZATIONAL DEVELOPMENT: CONCEPTUAL FRAMEWORK

• Action Research•Data based•Action derived from data•“No Action without Research, No research without Action” (Kurt Lewin)• Individual Perspective• Motivation / need theories• Job satisfaction• Positive Reinforcement• Group Perspective• Group norms and values• Interpersonal competence• Changing Values• Organizational Learning• Group Process• Total System perspective• Participative, consensus management• Contingency Theory• Strategy• Inter-unit relations• Employee-organization “contracts”

ORGANIZATIONAL DEVELOPMENT: NATURE

• OD is a lifelong, built-in mechanism to improve immunity of organization's health to renew itself, often with the assistance of a "change agent" or "catalyst" and the use of enabling appropriate theories and techniques from applied behavioral sciences, anthropology, sociology, and phenomenology. • More importantly, the terms "change agent" or "catalyst" are synonymous with the notion of a leader who is engaged in leadership – a transformative or effectiveness process – as opposed to management, a more incremental or efficiency-based change methodology.• Although behavioral science has provided the basic foundation for the study and practice of OD, new and emerging fields of study have made their presence felt. • Experts in systems thinking and organizational learning, mind maps, body mind synchronicity, structure of intuition in decision making, and coaching (to name a few) have emerged as OD catalysts.

ORGANIZATIONAL DEVELOPMENT: NATURE

• The strategic nature of organization development as an integral part of HRM arises because it can play a significant role in the implementation of business strategy. For example, a strategy for business model innovation (the process followed by an organization to develop a new business model or change an existing one) could result in the need for new organization structures and processes. • Although behavioral science has provided the basic foundation for the study and practice of OD, new and emerging fields of study have made their presence felt. •Experts in systems thinking and organizational learning, structure of intuition in decision making, and coaching (to name a few) whose perspective is not steeped in just the behavioral sciences, but a much more multi-disciplinary and inter-disciplinary approach, have emerged as OD catalysts or tools.• OD deals with a total system — the organization as a whole, including its relevant environment — or with a subsystem or systems — departments or work groups — in the context of the total system. Parts of systems, for example, individuals, cliques, structures, norms, values, and products are not considered in isolation; the principle of interdependency, that is, that change in one part of a system affects the other parts, is fully recognized.

ORGANIZATIONAL DEVELOPMENT: CORE VALUES

• Providing opportunities for people to function as human beings rather than as resources in the productive process.•Providing opportunities for each organization member, as well as for the organization itself, to develop to his full potential.•Seeking to increase the effectiveness of the organization in terms of all of its goals.•Attempting to create an environment in which it is possible to find exciting and challenging work.•Providing opportunities for people in organizations to influence the way in which they relate to work, the organization, and the environment.•Treating each human being as a person with a complex set of needs, all of which are important in his work and in his life.

ORGANIZATIONAL DEVELOPMENT: OBJECTIVES

• To increase the level of inter-personal trust among employees.•To increase employee's level of satisfaction and commitment.•To confront problems instead of neglecting them.•To effectively manage conflict.•To increase cooperation among the employees.•To increase the organization problem solving.•To put in place process that will help improve the ongoing operation of the organization on a continuous basis.

ORGANIZATIONAL DEVELOPMENT: ASSUMPTIONS

• Organizations are systems composed of component parts.• It is better to improve performance and productivity than to accept low effectiveness.• Accurate information is helpful; knowledge can lead to health.• Informed, free choices are good for people and organizations.• People should have some ownership and responsibility for their own jobs.• Adapting to new conditions is good.• Opening up conflicts can lead to productive growth if handled skillfully.• Change does not have to be haphazard, but the results of change efforts are not always 100% predictable or controllable.• It is O.K. for us to make mistakes along the way and learn from them how to improve our efforts.• Both formal and informal relationships are important components for change.

ORGANIZATIONAL DEVELOPMENT: ASSUMPTIONS

• Most individuals have drives towards personal growth and development. However, the work habits are a response to work environment rather than personality traits. Accordingly, efforts to change work habits should be directed towards changing how the person is treated rather than towards attempting to change the person.• Highest productivity can be achieved when the individual goals are integrated with organizational goals. Also with such integration, the quality of the product is highly improved.• Cooperation is more effective than competition. Conflict and competition tend to erode trust, prohibit collaboration and eventually limit the effectiveness of the organization. In healthy organizations, “efforts are made at all levels to treat conflict as a problem subject to problem solving methods.• The suppression of feelings adversely affects problem solving, personal growth and satisfaction with one’s work. Accordingly, free expression of feelings is an important ingredient for commitment to work.• The growth of individual members is facilitated by relationships, which are open, supportive and trusting. Accordingly, the level of interpersonal trust, support and cooperation should be as high as possible.• The difference between commitment and agreement must be fully understood. Agreeing to do something is totally different from being committed to do something. Sense of commitment makes it easy to accept change and the implementation of change for the purpose of organi zational development is even easier when such a commitment is based upon participation in the process.• OD programs, if they are to succeed, must be reinforced by the organization’s total human resources system.

ORGANIZATIONAL DEVELOPMENT: CHARACTERISTICS

• It is an educational strategy which attempts to bring about a planned change.• It relates to real organizational problems instead of hypothetical classroom cases.• It uses sensitivity training methods and emphasizes the importance of experimentally based training.• Its change agents are almost external consultants outside of the organization.• External change agents and internal organization executives establish a collaborative relationship involving mutual trust and influence, and jointly determined goals.• External change agents are humanists seeking to establish a social and altrustic philosophy within an organization.• The goals that the change agent seeks to accomplish through O.D. tend to reflect "Theory Y," he aims for better conflict resolution, increased understanding, and more considerable leadership.• The organizational changes sought are usually the result of some "exigency or outside problem"


• OD is an interdisciplinary and primarily behavioral science approach that draws from such fields as organization behavior, management, business, psychology, sociology, anthropology, economics, education, counseling, and public administration.• A primary, though not exclusive, goal of OD is to improve organizational effectiveness.• The target of the change effort is the whole organization, departments, work groups, or individuals within the organization and, as mentioned earlier, may extend to include a community, nation, or region.• OD recognizes the importance of top management's commitment, support, and involvement. It also affirms a bottom-up approach when the culture of the organization supports such efforts to improve an organization.• It is a planned and long-range strategy for managing change, while also recognizing that the dynamic environment in which we live requires the ability to respond quickly to changing circumstances


• The major focus of OD is on the total system and its interdependent parts. • OD uses a collaborative approach that involves those affected by the change in the change process.• It is an education-based program designed to develop values, attitudes, norms, and management practices that result in a healthy organization climate that rewards healthy behavior. OD is driven by humanistic values.• It is a data-based approach to understanding and diagnosing organizations.• It is guided by a change agent, change team, or line management whose primary role is that of facilitator, teacher, and coach rather than subject matter expert.• It recognizes the need for planned follow-up to maintain changes.• It involves planned interventions and improvements in an organization's processes and structures and requires skills in working with individuals, groups, and whole organizations.

ORGANIZATIONAL DEVELOPMENT: TECHNIQUES

• Action Search:- Most organizations contemplating an OD initiative, do so because they are not satisfied with how things are going. If the current trajectory of business is meeting or exceeding goals, there is little impetus for change. The Action Search approach takes on a somewhat negative spin from the outset. The idea is to determine what is wrong and fix it quickly.• Appreciative Inquiry:- This approach is the mirror image of the “action research” technique. The process starts by asking what is working well. Groups focus on what is going right rather than what is going wrong. The idea is to find ways of doing more of the right stuff, thus providing less reinforcement for doing the wrong stuff.• Future Search:- In this process, the focus is on the vision rather than the current state. The idea is to get groups engaged in defining a compelling view of the future. When compared to the present, this allows clarification of the gaps between current practices and organizational goals. Outstanding vision is the most powerful force for all individuals and organizations.• Whole System Intervention:- This is a kind of zero-based approach to OD. In this case, the activities of the organization are viewed through a “systems” approach. The emphasis is on getting a critical mass within the organization to redefine the business. Processes become the focal point for redesign efforts. This is less threatening than the action research technique because of focuses on the “what” and “how” rather than the “who.”

ORGANIZATIONAL DEVELOPMENT: TECHNIQUES

• Management by Objectives (MBO):- MBO focuses on attempts by managers and their subordinates to work together at setting important organizational goals and developing a plan to help meet them.• Survey Feedback:- Survey feedback is an OD technique in which questionnaires and interviews are used to collect information about issues of concern to an organization. This information is used as the basis for planning organizational change.• Action Labs:- It is an OD intervention in which teams of participants work off-site to develop and implement new ways of solving organizational problems by focusing on the ineffectiveness of current methods. • Strategic Planning:- One technique for organizational development that a company may choose is that of strategic planning, also referred to as scenario planning. This technique is dependent upon the type of organization and the leadership, complexity, culture, expertise and size of the organization.• Organization Wide:- If a company intends to undergo organizational development, one technique might be through an organization-wide change. For example, adding or taking away a product or service offered.• Transformational:- Also occasionally referred to as quantum change, transformational change is the act of changing the interior workings of a company such as changing the management structure from a hierarchy to a team-oriented structure.

BASIC STEPS IN OD PROCESS

• Needs Assessment• Diagnosis • Design• Implementation• Evaluation

STEPS IN OD PROCESS

• a) Initial Consultation: The first step in the organizational development process is to approach the organizational development consultant to determine the types of OD program to be developed. The consultant may be a professional consultant from outside or he may internal service personnel, expert in organization development program.• At this point, the consultant may have consultation with person from various levels in the organizations in order to gain the knowledge of imports. For this purpose, he may interview such persons or he may adopt any other way to be acquainted with the necessary information. • b) Data collection: The next step in the process is data collection. The consultant meets various groups away from the work in order to determine the organizational climate and behavior problems faced by the organization. They gather information through surveys and develop information through interviews etc.• c) Data feedback and confrontation: Data, so collected are made known to work groups concerned and are asked to review the data collected. They so through the data and locate the points of disagreement, discuss such points and take the decision and then suggest the priorities for change.

STEPS IN OD PROCESS• d) Action planning and problem solving: Data are made known to work groups concerned and are asked to review the data collected. They so through the data and locate the points of disagreement, discuss such points and take the decision and then suggest the priorities for change.• e) Team building: During the whole process, group meetings are convened to discuss the program and the consultant in the whole process as a team. The consultant helps them to see the value of open communication and trust them.• These are essential prerequisites for improved group functioning. Consultant also encourage team building through organizing meeting with managers and their immediate subordinates so that they can improve the functioning of the work group with the guidance of consultant.• f) Inter group Development: With the development of natural team (i.e. a manager and his subordinates), the larger groups comprising several team may be developed. In this way, it will include the whole organization.• g) Appraisal and follow up: The consultant further helps the organization in making an appraisal of the program and find out deficiencies if any. He can develop additional programs in are where the original program is felt ineffective and results are poor and that requires improvement.

ORGANIZATIONAL DEVELOPMENT: ROLE OF MANAGERS

• Organizational development manager is usually the one who manages design and implementation policies and procedures of the organization. He initiates appropriate changes within organizational transaction activities.• Manager supports the establishment and improvement of human capital for critical success of organization. Generally he manages the group of specialists who are considered experts in organizational decision making and in planning goals.• An OD manager can also serve as advisor to utilize organizational methodologies and tools. He works closely with design and implementation goals of organization leadership. • An effective manager will utilizes the people, structure, strategy and process in the best way to build the organization. He is not a solo leader. Instead, he maximizes the use of teams to achieve organizational goals.


• Day to day management of strategy and functional planning. • He initiates policies, procedures, programs and budgeting. • Manages department staff and ensures accountability. • Designs functional programs to improve organization effectively. • Responsible for adaptability, employee development, employee satisfaction and retention • Manages legal and financial risks of the organization. • Acts as consultant to the executive management, president and CEO. • Responsible for the creation of programs to solve highest level complexity. • He works with HR leaders to design, develop and implement corporate learning programs.


• Train the HR team members and business managers on design and implementation solution • He identifies and develops various training programs to prepare successor candidates. • He trains business managers on job rotation, formal training and development coaching programs. • Works closely with business managers and senior leaders to develop leadership skills. • Manage projects, employees and business leaders. • He gives practical exposure of different organizational activities to all people associated with the business. • Performs job analysis, evaluation, business mapping culture and team based interventions.


• Managers have the responsibility to recognize the need for change, this is recognized after much deliberation and analysis of different aspects of change that might affect organizational running• Managers act as a bridge between organizations and OD consultants by providing OD consultants valuable inputs, this subsequently helps the OD consultant to highlight the problem and solve it grass root level• Managers are also responsible for making sure people have adjusted to change or adjust to change in an effective manner• Managers are responsible for implementing change programs with ease in such a manner that the organizational running or setting is not disturbed

FACTORS AFFECTING ORGANIZATIONAL DEVELOPMENT

• Top management support or no support• Organizational culture• Leadership• Vision of the organization• Resistance to Change• Level of formalization• Organizational structure• Policies and procedures• Team and group dynamics• Interpersonal/ Intrapersonal relationships

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Organizational development