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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
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DefinitionDefinitionOrganization Development (OD)Organization Development (OD)
OD is an effort (&) planned (')OD is an effort (&) planned (')organization wide ()managed fromorganization wide ()managed from
the top () increase organizationthe top () increase organizationeffectiveness and health through (*)effectiveness and health through (*)planned interventions in theplanned interventions in the
organization+s processes! usingorganization+s processes! usingbehavioral science knowledge,behavioral science knowledge,(ichard .eckhard)(ichard .eckhard)
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/h" %tud" OD 0
1an improve individual performance
1reate better morale
2ncrease organizational profitabilit"
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elated to OD
3 4ision and Mission
3 .ehavior of the Organization
3 2ndividual .ehavior
3 %tructure of the Organization
3 1ulture of the Organization
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WHY DO OD?
3 Human resources
3 Changing nature of the workplace
3 Global markets
3 Accelerated rate of change
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Distinctive 5eatures of OD
3 an OD program is a long range! planned and sustained
effort that is based on an overall strateg",
3 consultant establishes a uni6ue relationship with the
client s"stem7 the consultant seeks and maintains acollaborative relationship of relative e6ualit" with the
organization members
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OD interventions are,,,,,,,,,,
3 8ni6ue in nature
3 efleive
3 %elf-anal"tical
3 %elf-skill building in nature
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Benefits
It mainly tries to deal with the changes throughout theorganization 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 eam work is improved and encouraged It !nds better solution for con"icts #ommitment to objectives
Increases the willingness to change Absenteeism is reduced. urnover is lower
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imitations
$rganizational development is long%wayprocess and requires more time.
It consists of substantial e&pense' delayed
payo( periods )ailures are possible *ossibility for invasion of privacy *ossible for psychological harms
It emphasizes only in group processcompared to performance #onceptual ambiguity is possible.
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$lements of the OD process
3 $ntering and contracting
3 Diagnosing ( Organization! groups and 9obs)
3 :lanning and implementing change
3 $valuating and institutionalizing
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$ntering and contracting
3 $ntering ; 1ontracting are the initial steps in the ODprocess
3 $ntering and 1ontracting set the initial :ara meters for
carr"ing out the subse6uent phases of OD 7
#Diagnosing the organization#:lanning ; 2mplementation changes
#$valuating and 2nstitutionalizing them
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3 $ntering into an OD relationship comprises
of three () elements- i,e,
- 1larif"ing the Organizational 2ssue
- Determining the relevant 1lients
- %electing the appropriate OD :ractitioner
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1larif"ing the Organizational 2ssues
3 An Organization generall" starts an ODprogramme b" presenting the problem, i,e, theissue that caused them to consider an ODprocess, 2t ma" be !pecific"( e,g, 7decrease in
market share! increase in absenteeism!2ncreasein industrial disputes or General (eg7Organization growing too fast! needs a rapidchange)
3 At this stage! presenting the problem is onl" as"mptom of an underlined problem
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Determining the relevant client
3
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Diagnosing Organization
3 Diagnosis is the process of understanding currentfunctioning of the organization, 2t will provides the
information necessar" for designing change
interventions, 2t generall" follows from successful entr"
and contracting,
3 =his is a collaborative process between organization
members and OD consultants to collect pertinent
information! anal"ze it and draw conclusions of action
planning and interventions ,
3 Diagnosis ma" be aim uncovering causes for specific
problems or it ma" be directed at assessing the overall
functioning of the organization > department to discover
the areas for future development,
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Organizational Diagnosis&, =hink of visiting "our health
care! computer or auto
mechanic professional, /hat
is a diagnosis0
', /hat does s>he do to diagnose
(D) "our condition0, /hat are the uses>purposes of
a D? /hat does it allow "ou to
do0
, /hat! therefore! are the
criteria for a sound D0
*, @ow is a diagnosis derived0
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:lanning and implementing change
3 2n this stage !organization members and practitioners9ointl" plan and implement OD interventions,
3 =he" design interventions to achieve the organizations
vision or goals and make action plans to implement
them,
3 =here are several criteria for designing interventions
!including the organizations readiness for change !its
current change capabilit"! its culture and power
distributions and change agent+s kills and abilities ,
3 Depending on the outcomes of diagnosis! there are four
ma9or t"pes of interventions in OD
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1omparison of :lanned 1hange Model
:roblem identification
Consultation with
Beha#ioural !cience $%pert
Data gathering and
&reliminar' Diagnosis
5eedback to Ke" 1lient of
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Ma9or ="pes of 2nterventions in OD ,
3 @uman :rocess 2nterventions@uman :rocess 2nterventions3 =echno structural 2nterventions=echno structural 2nterventions
3 @uman esources Management@uman esources Management2nterventions2nterventions
3 %trategic 2nterventions%trategic 2nterventions
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@uman :rocess 2nterventions@uman :rocess 2nterventions
3 1oaching1oaching3 =raining and Development=raining and Development
3 :rocess 1onsultation and =eam .uilding:rocess 1onsultation and =eam .uilding
3 =hird-part" 2nterventions (1onflict esolution)=hird-part" 2nterventions (1onflict esolution)
3 Organization 1onfrontation MeetingOrganization 1onfrontation Meeting3 2ntergroup elationships2ntergroup elationships
3 Carge-group 2nterventionsCarge-group 2nterventions
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=echno structural 2nterventions=echno structural 2nterventions
3 %tructural Design%tructural Design3 DownsizingDownsizing
3 eengineeringeengineering
3 $mplo"ee 2nvolvement$mplo"ee 2nvolvement
3 /ork Design/ork Design
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Human +esources *anagement /nter#entionsHuman +esources *anagement /nter#entions
3
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%trategic 2nterventions%trategic 2nterventions
3 ntegrated %trategic 1hangentegrated %trategic 1hange3 Mergers and Ac6uisitionsMergers and Ac6uisitions
3 Alliances and etworksAlliances and etworks
3 1ulture 1hange1ulture 1hange
3 %elf-designing Organizations%elf-designing Organizations
3 Organization Cearning and Knowledge ManagementOrganization Cearning and Knowledge Management
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$valuating and 2nstitutionalizing
3 =he final stage in planned change involves evaluatingthe effects of the intervention and managing the
institutionalization of successful change programs ,
3 5eed back to organization members about the
intervention+s results provide information about whether
the changes should be continued !modified or
suspended,
3 =here are several criteria for designing interventions
!including the organizations readiness for change !its
current change capabilit"! its culture and power
distributions and change agent+s kills and abilities ,
3 Depending on the outcomes of diagnosis! there are four
ma9or t"pes of interventions in OD
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Organizational Development
=echni6ues
%ensitivit" =raining
=raining groups (=-groups) that
seek to change behavior through
unstructured group interaction
:rovides increased awareness of
others and self
2ncreases empath" with others!
improves listening skills! greateropenness! and increased tolerance
for others
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Organizational Development
=echni6ues (cont+d)
%urve" 5eedback Approach
=he use of 6uestionnaires to identif" discrepancies
among member perceptions? discussion follows and
remedies are suggested
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Organizational Development
=echni6ues (cont+d)
:rocess 1onsultation (:1)
A consultant gives a client insights into what is going
on around the client! within the client! and between the
client and other people? identifies processes that needimprovement,
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Organizational Development
=echni6ues (cont+d)
=eam .uilding Activities
3
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Organizational Development
=echni6ues (cont+d)
2ntergroup :roblem %olving7
3
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$pen +ystems ,odel
InputsInformation-nergy*eople
ransformations+ocial #omponentechnological
#omponent
$utputsoods+ervicesIdeas
-nvironment
)eedback
Source Waddell, Cumming and Worley (2007) Organisation Development & ChangeSource Waddell, Cumming and Worley (2007) Organisation Development & Change!homson, South "el#ourne $ustralia!homson, South "el#ourne $ustralia
O i ti L l
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Organisation-Level/iagnostic ,odel
Inputs
eneral-nvironme
nt0ncertainty in social'
technological'economic ' ecological
and political forces
Industry
+tructure)ive forces suppliers'buyer' threats of entry'threats of substitutes
and rivalry amongcompetittors
/esign#omponents
$utputs
Source Waddell, Cumming and Worley (2007) Organisation Development & ChangeSource Waddell, Cumming and Worley (2007) Organisation Development & Change
%elson, South "el#ourne $ustralia%elson, South "el#ourne $ustralia
+trategyhe way a company uses its resourceshuman economic or technical to gainand sustain competitive advantage
$rganisation design
$rganisatio
nperformance
*roductivity
+takeholdersatisfaction
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Goal Clarity
TaskTeam
Structure Functioning
Group Group
Composition Norms
Design Components Outputs
Organisation
Design
Team
Effectiveness
Group-Level Diagnostic Moel
!nputs
Source Waddell, Cumming and Worley (2007) Organisation Development & ChangeSource Waddell, Cumming and Worley (2007) Organisation Development & Change!homson, South "el#ourne $ustralia!homson, South "el#ourne $ustralia
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skill "ariety
Task
!entity #utonomy
Task Fee$ack
Significance a$out %esults
!niviual-Level Diagnostic Moel
!nputs Design Components Outputs
Organisation
Design
Group Design
&ersonal
Traits
!niviual
Effectiveness
Source Waddell, Cumming and Worley (2007) Organisation Development & ChangeSource Waddell, Cumming and Worley (2007) Organisation Development & Change!homson, South "el#ourne $ustralia!homson, South "el#ourne $ustralia
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Journey of Life
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