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Organization Development (OD)
presented by
Naresh Sukhani
NET, M.Com- MGMT, Masters in HRM, MBA Human Rights, B.Sc Comp Science,
ORGANIZATIONAL DEVELOPMENT
Objectives
1. To understand the concept of Organisational
Development and its Relevance in the organisation
2. To Study the Issues and Challenges of OD while
undergoing Changes
3. To get an Understanding of Phases of OD Programme
4. To Study the OD Intervention to meet the Challenges
faced in the Organisation
5. To get an Insight into Ethical Issues in OD
ORGANIZATIONAL DEVELOPMENT
Syllabus
1 Organisational Development – An Overview
2 Organisational Diagnosis, Renewal and Change
3 OD Interventions
4 OD Effectiveness
ORGANIZATIONAL DEVELOPMENT
• Books to be Read:
1. Organization Development – French & Bell
2. Organization Development – V. G. Kondalkar
3. Organization Development & Change – Cummings & Worley
4. Organizational Development & Transformation- French, Bell &
Zawacki
Prof. Naresh Sukhani
Definition-what is an organization
An organization is the planned coordination
of the activities of a number of people for
the achievement of some common explicit
purpose or goal, through division of labor
and function, and through a hierarchy of
authority and responsibility –(Edgar Shein)
Definition
Organization Development (OD)
OD is an effort (1) planned (2)
organization wide (3)managed from
the top (4) increase organization
effectiveness and health through (5)
planned interventions in the
organization’s processes, using
behavioral science knowledge.
(Richard Beckhard)
Why Study OD ?
 Can improve individual performance
 Create better morale
Increase organizational profitability
Journey of Life……
Why Study OD ?
• Organizational Development or O.D. is a planned
effort initiated by process specialists to help an
organization develop its diagnostic skills, coping
capabilities, linkage strategies( in the form of temporary
and semi-permanent systems) and a culture of mutuality.
• A planned effort – thinking and planning
• initiated by process specialists
• Diagnostic skills- data collection-overtime
• Coping capabilities-problem-solving,confront and cope
• Linking strategies-Indl.& Organl. Goals
• Culture of Mutuality-OCTAPACE-fostering of certain
values and open and proactive systems viz.
openness,confrontation, trust, authenticity,pro-activeness,
autonomy, collaboration and experimentation.
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
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.
Basic Organization Development
Model
Adapted from Exhibit 14-4: Basic Organization Development Model
Diagnosis of
Situation
Introduction of
interventions
Progress
Monitoring
Feedback
Organization Development
Interventions
Organization
Development
Structural TechniquesRelationship Techniques
T-group Training
Team Building
Survey Feedback
Job Redesign
Management by Objectives
Supplemental Organizational
Processes
Adapted from Exhibit 14-5: Organization Development Interventions
Definition of Interventions
An intervention is a set of sequenced and
planned actions or events intended to help
the organization increase its effectiveness.
Interventions purposely disrupt the status
quo.
Characteristics of
Effective Interventions
• Is it relevant to the needs of the organization?
– Valid information
– Free and Informed Choice
– Internal Commitment
• Is it based on causal knowledge of intended
outcomes?
• Does it transfer competence to manage change
to organization members?
The Design of
Effective Interventions
• Contingencies Related to the
Change Situation
• Readiness for Change
• Capability to Change
• Cultural Context
• Capabilities of the Change Agent
Contd…………..
• Contingencies Related to the Target of
Change
– Strategic Issues
– Technology and structure issues
– Human resources issues
– Human process issues
Intervention Overview
• Human Process Interventions
• Techno structural Interventions
• Human Resources Management
Interventions
• Strategic Interventions
Major Types of Interventions in OD .
• Human Process Interventions
• Techno structural Interventions
• Human Resources Management
Interventions
• Strategic Interventions
Human Process Interventions
• Coaching
• Training and Development
• Process Consultation and Team Building
• Third-party Interventions (Conflict Resolution)
• Organization Confrontation Meeting
• Intergroup Relationships
• Large-group Interventions
Techno structural Interventions
• Structural Design
• Downsizing
• Reengineering
• Employee Involvement
• Work Design
Human Resources Management Interventions
• Goal Setting
• Performance Appraisal
• Reward Systems
• Career Planning and Development
• Managing Work Force Diversity
• Employee Stress and Wellness
Strategic Interventions
• Integrated Strategic Change
• Mergers and Acquisitions
• Alliances and Networks
• Culture Change
• Self-designing Organizations
• Organization Learning and Knowledge Management
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
Organizational Development
Techniques (cont’d)
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.
Organizational Development
Techniques (cont’d)
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
Organizational Development
Techniques (cont’d)
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
Human Process Interventions
• Coaching
• Training and Development
• Process Consultation and Team Building
• Third-party Interventions (Conflict Resolution)
• Organization Confrontation Meeting
• Intergroup Relationships
• Large-group Interventions
Techno structural Interventions
• Structural Design
• Downsizing
• Reengineering
• Employee Involvement
• Work Design
Human Resources Management
Interventions
• Goal Setting
• Performance Appraisal
• Reward Systems
• Career Planning and Development
• Managing Work Force Diversity
• Employee Stress and Wellness
Strategic Interventions
• Integrated Strategic Change
• Mergers and Acquisitions
• Alliances and Networks
• Culture Change
• Self-designing Organizations
• Organization Learning and Knowledge
Management
Relationship Techniques
T-group Training
Team Building
Survey Feedback
Team Building Tips
Get the right people together for a large block
of uninterrupted time to work on high-priority
problems or opportunities that they have
identified and have them work in ways that are
structured to enhance the likelihood of realistic
solutions and action plans, which are then
implemented enthusiastically and followed up
to assess actual versus expected results.
Structural
Techniques
Job Redesign
Management by
Objectives (MBO)
Supplemental
Organizational
Processes
OD interventions are..........
• Unique in nature
• Reflexive
• Self-analytical
• Self-skill building in nature
•Interpersonal
Interventions
What are T-Groups?
• T-groups (“T” for training) are unstructured
small-group situations in which participants learn
from their own actions
• T-groups evolved from the laboratory training
research of Kurt Lewin (1945)
• T-groups focus on the what, how and why of
interpersonal communication.
• T-groups are used by consultants to help
managers learn about the effects of their
behavior on others
Goals of T-groups
• Increased understanding about one’s own
behavior
• Increased understanding about the behavior of
others
• Better understanding of group process
• Increased interpersonal diagnostic skills
• Increased ability to transform learning into action
• Improvement in the ability to analyze one’s own
behavior
Sensitivity training
• Aim is to:
(1) encourage participants to recognize the effects
of their behavior on others (e.g. by developing
good observation and listening skills)
(2) get participants to know themselves (e.g. by
asking others for feedback) and to share aspects
of themselves to others (self-disclosure)
Diagnostic skills
• Encourage participants to perceive accurately
relationships between each other
• The focus is on recording/observing who is
taking an active role in the discussion (and who
is not and WHY)
• How satisfied do participants feel in the group
discussion?
Group action skills
• Encourage participants to select and act out (role play)
behaviors required by the situation – to learn from the
experience
• Aim is to support coaching/counseling skills
• Common interventions are role plays, team building
meetings, adventure games
Johari Window
• Technique for illustrating the quality of
interpersonal communication – identifiers a
person’s interpersonal style of communication
• Process consultants use the model to help
people process data about themselves in terms
of how they see themselves and how others see
them
• Interpersonal communication judged more
effective when there is fit (congruence) between
how we see ourselves (private face) and how
others see us (public face).
Johari Window
• Unknown to Others Known to others
Hidden
Spot
Open
Window
Unknown
Window
Blind
Spot
Known to
Self
Unknown
to Self
Improving Communications
Using the Johari Window
Reduce Hidden
Area Through
Disclosure to
others
Open
Window
Reduce Blind
spot through
feedback from
others
Unknown to
Others
Known to Others
Known to
Self
Unknown
to Self
Process Consultation
An OD method that helps managers and employers
improve the processes that are used in organizations
Outside consultant:
Enters organization
Defines the relationship
Chooses an approach
Gathers data
Diagnoses problem
Intervenes
Leaves organization
Process Consultation
• In process consultation, the consultant observes
individuals and groups in action – helping them
learn to diagnose and solve their own problems
• Often used in conjunction with teambuilding, self-
directed work teams, quality circles, and other
interpersonal interventions
Process Consultation: How is it
Done?
• Consultant observes the communication processes
between individuals and workgroups
• Interventions used such as listening, probing,
questioning, clarifying, reflecting, synthesizing and
summarising
Process Consultation:
Key Questions
• How well do group members seek and give information?
Ask questions? Summarize? Listen to others?
• How well do group members perform ‘group
maintenance roles’ such as compromising?
Harmonizing? Supporting?
• How well do group members solve problems? Make
decisions?
• How well do group members deal with power and
authority issues?
• How well do group members exercise leadership?
Third Party Peace Making
• Intermediaries (or "third parties") are people,
organizations, or nations who enter a conflict to
try to help the parties de-escalate or resolve it.
WALTON’S APPROACH TO
THIRD PARTY PEACEMAKING
• Walton has presented a statement of theory and practice
for third-party peace making interventions that is
important in its own right and important for its role in
organization development.
WALTON’S MODEL IS BASED ON FOUR
ELEMENTS
The conflict issues.
Precipitating circumstances.
Conflict relevant acts.
The consequences of the conflict.
SOURCES OF CONFLICT
 Sustentative issues.
 Emotional issues.
WALTON’S HAS OUTLINED THE INGREDIENTS
OF A PRODUCTIVE CONFRONTATION
Mutual positive motivation.
Balance of power.
Synchronization of confrontation efforts.
Differentiation and integration of different
phases of the intervention must be well
paced.
Conditions that promote openness should
be created.
Reliable communicative signals.
Optimum tension in the situation .
ORGANIZATION MIRROR
INTERVENTION
It is a technique designed to work
units feedback on how other elements
of organization view them.
Designed to improve relationships
between teams.
What is a “confrontation meeting?”
• One day meeting of entire management of an
organization in which they take a reading of their own
organizational health
• Organizational confrontation meeting: brings together
all of the managers of an organization to meet to
confront the issue of whether the organization is
effectively meeting its goals
Process
1. Climate setting 45-60 min.
2. Information Collecting 60 min.
3. Information Sharing 60 min
4. Priority setting and group action planning 75
min.
5. Action Planning 60-120 minutes
6. Immediate follow-up by top team 60-180 min.
7. (Four-six weeks later) Progress review 120
minutes
When is it appropriate to conduct a
confrontation meeting?
• Need for the total management group to
examine its own workings
• Very limited time available for the activity
• Top management wishes to improve conditions
quickly
• Enough cohesion in the top team to ensure
follow-up
• Real commitment by top management to
resolve the issue
• Organization is experiencing , or has recently
experienced, some major change
Coaching & Mentoring
The main reasons why organizations need coaching
and mentoring activities are as follows:
To maximize knowledge transfer
To increase the skill levels
For succession planning
Contd……..
To maximize knowledge transfer
 Coaching & Mentoring provides a learning channel that
effectively transfers knowledge within the organization
 Critical knowledge is maintained in the organization
 Contextual learning is evident
Contd…….
To increase skill levels
 The coaches and mentors can very effectively transfer core skills
 Customization of skills in relation to the core activities of the
business is retained
 Cross training of staff can be achieved
Contd….
For succession planning
 The ability for the organization to identify ‘fast track’ candidates
and prepare them for new jobs is enhanced by coaching &
mentoring
 Coaching & Mentoring can ensure continuity of performance
when key staff leave the organization because core skills have
been transferred
Beneficiaries of Coaching & Mentoring
The Coach / Mentor
The Employee
The Department
The Organization
Benefits to The Coach / Mentor
Benefits to the Coach / Mentor can be described
as:
 Job Satisfaction
 Further development of own skill level
 Involvement in strategic activity
What does a mentor actually do?
• Encourage
• Convey sincere belief in protégé ability to
succeed
• Give advice
• Give constructive feedback
• Give formal and informal instruction (technical,
clinical, political)
• Introduce to colleagues, etc.
• Provide opportunities for protégé to demonstrate
his/her skills
Contd….
• Serve as career and lifestyle role model
• Attend meetings, conferences, and other events
together
• Provide observation experience
• Provide role-playing experience
• Exchange/discuss ideas
• Co-authoring
• Challenge protégé to and assist with career
planning and development; emphasis on
planning!
Contd..
• Review resumes, cover letters
• Provide sense of direction/focus
• Help in problem solving
• Practice communication/interpersonal skills
• Assist in career planning
• Help set goals
What about mentees?
• Potential to succeed
• Capacity for self-disclosure
• Willing to learn
• Confident to try new things
• Communicate well
• Trust others
• Ambitious
• Internal focus of control
• High job investment
• Values relationships
• Sees relationship between personal and professional growth
• Active learner
• Focused
• Learn from, but not have to please the mentor
• Knows limits/ when to get help
• Ethical
• Takes initiative
• Goal oriented
• Organization/ time management skills
• Open minded
What Coaching and Mentoring Are
• Coaching is a core competency necessary for knowledge
transfer
– Mentoring is a two-way process of dialogue and planning
– – People helping each other to find their way on
the job, in the organization and over a lifetime
Both require . . . . . .
• observation, dialogue, and agreement. . . . .
targeted at building individual and team
capabilities. . . . . .to foster continuous
improvement in organizations.
STRATEGIC IMPORTANCE OF
COACHING AND MENTORING
Coaching and mentoring as knowledge transfer:
Everyone has unique knowledge to exchange with others
Insist on the discipline of a 50/50 split in time
Structural interventions
• Socio technical systems (STS).
• Self-managed teams.
• Work redesign.
• Management by objectives (MBO).
• Quality circles.
• Quality of work life projects (QWL).
• Parallel learning structures (or collateral organizations).
• Physical settings.
• Total quality management (TQM).
• Reengineering.
• Large-scale systems change.
Socio technical Systems (STS)
• Largely associated with experiments that emerged under the
auspices of the Travistock Institute in Great Britain.
• Efforts generally attempted to create a better “fit” among the
technology, structure, and social interaction of a particular
production unit in a mine, factory, or office.
• Two basic premises:
– Effective work systems must jointly optimize the relationship between
their social and technical parts.
– Such systems must effectively managed the boundary separating and
relating them to the environment.
– Highly participative among stakeholders: Employees, engineers, staff
experts, and managers.
– Feature the formation of autonomous work groups (i.e. self-managed).
– Theory suggested that effectiveness, efficiency, and morale will be
enhanced.
Self-Managed Teams
• Problems in implementation:
– What to do with the first-line supervisors who are no
longer needed as supervisors.
– Managers that are now one level above the teams will
likely oversee the activities of several teams, and their
roles will change to emphasize planning, expediting,
and coordinating.
• They need considerable training to acquire skills
in group leadership and ability to delegate; skills
to have participative meetings, planning, quality
control, budgeting, etc.
Work Redesign
• Hackman and Oldham – theoretical model of
what job characteristics lead to the psychological
states that produce what they call ‘high internal
work motivation.’
• Model approach has the characteristics of OD;
use of diagnosis, participation, and feedback.
• Model suggested that organizations analyze
jobs using the five core job characteristics; then
redesign of group work: skill variety, task
identity, task significance, autonomy, feedback
from job.
MBO and Appraisal
• Management by objective (MBO) programs
evolve from a collaborative organization
diagnosis and are systems of joint target setting
and performance review designed to increase a
focus on objectives and to increase frequency of
problem solving discussions between
supervisors and subordinates and within work
teams.
• MBO programs are unilateral, autocratic
mechanisms designed to force compliance with
a superior’s directives and reinforce a one-on-
one leadership mode.
Quality Circles
• The concept is a form of group problem solving
and goal setting with a primary focus on
maintaining and enhancing product quality.
• Extensively used in Japan.
• Quality circles consist of a group of 7 – 10
employees from a unit; who have volunteered to
meet together regularly to analyze and make
proposals about product quality and other
problems.
• Morale and job satisfaction among participants
were reported to have increased.
• Quality circles contributes toward total quality
management.
Quality of Work Life (QWL)
• Organizational improvement efforts.
– Attempt to restructure multiple dimensions of the organization.
– To institute a mechanism which introduces and sustains
changes over time.
• An increase in participation by employees and increase
in problem solving between the union and management.
Parallel Learning Structures
• Consists of a steering committee and a number of
working groups that:
– Study what changes are needed in the organization,
– Make recommendations for improvement, and
– Then monitor the resulting change efforts.
Physical Setting and OD
• Physical settings are an important part of organization
culture that work groups should learn to diagnose and
manage, and about which top management needs input
in designing plants and buildings.
• Sometime, physical setting were found to interfere with
effective group and organizational functioning.
• Examples: A personnel director having a secretary share the same
office; resulting lack of privacy and typewriter noise, thus adversely
affect the productivity of the director.
• Management encouraged group decision making, yet providing no
space for more than 6 people to meet at one time.
Total Quality Management (TQM)
• Also called continuous quality improvement.
• A combination of a number of organization improvement techniques
and approaches, including the use of quality circles, statistical
quality control, statistical process control, self-managed teams and
task forces, and extensive use of employee participation.
• Features that characterize TQM:
– Primary emphasis on customers.
– Daily operational use of the concept of internal customers.
– An emphasis on measurement using both statistical quality control and statistical
process control techniques.
– Competitive benchmarking.
– Continuous search for sources of defects with a goal of eliminating them entirely.
– Participative management.
– An emphasis on teams and teamwork.
– A major emphasis on continuous learning.
– Top management support on an ongoing basis.
Reengineering
• Definition – the fundamental rethinking and radical
redesign of business processes to achieve dramatic
improvements in critical, contemporary measures of
performance, such as cost, quality, service, and speed.
• Reengineering focuses on visualizing and streamlining
any or all business processes in the organization.
• Reengineering seeks to make such processes more
efficient by combining, eliminating, or restructuring
activities without regard to present hierarchical or control
procedures.
• Reengineering is a top-down process; assumes neither
an upward flow of involvement nor that consensus
decision making.
Self-Design Strategy
• It is a “learning model” to help organization develop “the
build-in capacity to transform themselves to achieve high
performance in today’s competitive and changing
environment.
• Basic components:
– An educational component consisting of readings, presentations,
visits to other companies, and attendance at conferences.
– Clarification of the values that will guide the design process.
– Diagnosis of the current state of the organization using the
values as template.
– Changes are then designed and implemented in an interactive
manner.
Large-Scale Systems Change and
Organizational Transformation
• Large-scale systems change; mean
organizational change that is massive in terms of
the number of organizational units involved, the
number of people affected, the number of
organizational subsystems altered, and/or the
depth of the cultural change involved.
– Example: a major restructuring with objectives
including a reduction in hierarchical levels from 8 to 4.
• Organizational transformation; second-order
change – requires a multiplicity of interventions
and takes place over a fairly long period of time
(5-year plan).
Do’s Of OD Interventions
Inform in advance of the nature of
the intervention and the nature
of their involvement.
OD effort has to be connected to
other parts of the organization.
Directed by appropriate
managers.
Based on accurate diagnosis .
Contd….
• commitment to OD at all stages.
• Evaluation is the key to success.
• Show employees how the OD effort
relates to the organization's goals and
overriding mission.
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.
Thomson, South Melbourne Australia
Organisation-Level
Diagnostic Model
Inputs
General
Environment
Uncertainty in social,
technological, economic ,
ecological and political
forces
Industry
Structure
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.
Nelson, South Melbourne Australia
Strategy
The 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 Team
Structure Functioning
Group Group
Composition Norms
Design Components Outputs
Organisation
Design
Team
Effectiveness
Group-Level Diagnostic Model
Inputs
 Source Waddell, Cumming and Worley (2007) Organisation Development & Change.
Thomson, South Melbourne Australia
skill Variety
Task
Identity Autonomy
Task Feedback
Significance about Results
Individual-Level Diagnostic Model
Inputs Design Components Outputs
Organisation
Design
Group Design
Personal
Traits
Individual
Effectiveness
 Source Waddell, Cumming and Worley (2007) Organisation Development & Change.
Thomson, South Melbourne Australia
O. D. PROCESS: Diagnosis, Action & Program Management
The O. D. process consists of three components-diagnosis, action and
program management.
Diagnosis component consists of continuous collection of data about the
total system, its sub-units its processes, and its culture.
The action component consists of all the activities and interventions
designed to improve the organization’s functioning.
The program management component is designed to ensure success of
the program.
Diagnosis involves;
1. What are its strengths?
2. What are its problems?
3. What are its unrealized opportunities?
4. Discrepancy between desired situation and current situation?
Elements of the OD process
1. Entering and contracting
2. Diagnosing ( Organization, groups and jobs)
3. Planning and implementing change
4. Evaluating and institutionalizing
1. 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.
2. 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.
2. Organizational Diagnosis (Contd.)
1. 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?
3. 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 identification
Consultation with
Behavioural Science Expert
Data gathering and
Preliminary Diagnosis
Feedback to Key Client of
Group
Joint Diagnosis of
Problem
Joint Action Plan
Action
Data Gathering after
Action
Unfreezing
Movement
Refreezing
Initiate the Inquiry
Inquiry into Best
Practices
Discover Themes
Envision a
Preferred Future
Design and
Deliver Ways to
Create the Future
(A)
Lewin’s Planned
Change Model
(B)
Action Research
Model
(C)
Positive
Model
4. 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
Kurt Lewin’s Three –Stage Model : as
modified by Lippitt & others
1. Developing a need for change. (Lewin’s
unfreezing phase)
2. Establishing a change relationship. In this
phase a client system in need of help and
a change agent from outside the system
establish a working relationship
3. Clarifying or diagnosing the clients
system’s problem
4. Examining alternative routes and goals;
establishing goals and intentions of
actions
ORGANIZATIONAL DEVELOPMENT
Kurt Lewin’s Three –Stage Model : as
modified by Lippitt & others
5.Transforming intentions into actual
change efforts.Phases 3, 4 and
5 correspond to Lewin’s moving phase
6.Generalizing and stabilizing change.
This corresponds to Lewin’s refreezing
phase
7.Achieving a terminal relationship, that
is, terminating the client-consultant
relationship
ORGANIZATIONAL DEVELOPMENT
The Burke-Litwin Model of Organizational
Change
(a)First-order change- transactional,
evolutionary, adaptive, incremental, or
continuous change
(b)Second-order change-
transformational, revolutionary, radical,
or discontinuous change
n.b.. O. D. programs are directed
toward both first-order and second order
change with an increasing emphasis on
second –order transformational change.
ORGANIZATIONAL DEVELOPMENT
The Burke-Litwin Model of Organizational Change
First-Order Second-Order
1. Structure 1. Mission and Strategy
2. Management Practices 2. Leadership
3. Systems 3. Organizational Culture
(Transactional) (Transformational)
Distinguishing Organizational Climate and
Organizational Culture.
Climate- people’s perceptions and attitudes about the
organization
Culture- deep seated assumptions about values and
beliefs that are enduring, often unconscious and
difficult to change
ORGANIZATIONAL DEVELOPMENT( First)
Management
Practices
Structure
Systems
Policies &
Procedures
Work
Unit Climate
Motivation
Individual
Needs
& Values
Task
Requirements &
Individual
Skills / Abilities
Individual &
Organizational
Performance
Individual
Needs &
Values
ORGANIZATION DEVELOPMENT(Second)
External
Environment.
Leadership
Mission &
Strategy
Organizational
Culture
Individual &
Organizational
Performance
The Burke-Litwin Model of Organizational Performance and Change
External
Environment
Leadership
Organizational
Culture
Mission &
Strategy
Structure
Management
Practices
Systems
(Policies &
Procedures)
Work Unit
Climate
Motivation
Individual &
Organizational
Performance
Task Requires
& Individual
Skills/ Abilities
Individual
Needs & Values
Od 1 - Organisation Development

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Od 1 - Organisation Development

  • 1. Organization Development (OD) presented by Naresh Sukhani NET, M.Com- MGMT, Masters in HRM, MBA Human Rights, B.Sc Comp Science,
  • 2. ORGANIZATIONAL DEVELOPMENT Objectives 1. To understand the concept of Organisational Development and its Relevance in the organisation 2. To Study the Issues and Challenges of OD while undergoing Changes 3. To get an Understanding of Phases of OD Programme 4. To Study the OD Intervention to meet the Challenges faced in the Organisation 5. To get an Insight into Ethical Issues in OD
  • 3. ORGANIZATIONAL DEVELOPMENT Syllabus 1 Organisational Development – An Overview 2 Organisational Diagnosis, Renewal and Change 3 OD Interventions 4 OD Effectiveness
  • 4. ORGANIZATIONAL DEVELOPMENT • Books to be Read: 1. Organization Development – French & Bell 2. Organization Development – V. G. Kondalkar 3. Organization Development & Change – Cummings & Worley 4. Organizational Development & Transformation- French, Bell & Zawacki Prof. Naresh Sukhani
  • 5. Definition-what is an organization An organization is the planned coordination of the activities of a number of people for the achievement of some common explicit purpose or goal, through division of labor and function, and through a hierarchy of authority and responsibility –(Edgar Shein)
  • 6. Definition Organization Development (OD) OD is an effort (1) planned (2) organization wide (3)managed from the top (4) increase organization effectiveness and health through (5) planned interventions in the organization’s processes, using behavioral science knowledge. (Richard Beckhard)
  • 7. Why Study OD ?  Can improve individual performance  Create better morale Increase organizational profitability
  • 9. Why Study OD ? • Organizational Development or O.D. is a planned effort initiated by process specialists to help an organization develop its diagnostic skills, coping capabilities, linkage strategies( in the form of temporary and semi-permanent systems) and a culture of mutuality. • A planned effort – thinking and planning • initiated by process specialists • Diagnostic skills- data collection-overtime • Coping capabilities-problem-solving,confront and cope • Linking strategies-Indl.& Organl. Goals • Culture of Mutuality-OCTAPACE-fostering of certain values and open and proactive systems viz. openness,confrontation, trust, authenticity,pro-activeness, autonomy, collaboration and experimentation.
  • 10. Related to OD • Vision and Mission • Behavior of the Organization • Individual Behavior • Structure of the Organization • Culture of the Organization
  • 11. WHY DO OD? • Human resources • Changing nature of the workplace • Global markets • Accelerated rate of change
  • 12. 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
  • 13. 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
  • 14. 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.
  • 15. Basic Organization Development Model Adapted from Exhibit 14-4: Basic Organization Development Model Diagnosis of Situation Introduction of interventions Progress Monitoring Feedback
  • 16. Organization Development Interventions Organization Development Structural TechniquesRelationship Techniques T-group Training Team Building Survey Feedback Job Redesign Management by Objectives Supplemental Organizational Processes Adapted from Exhibit 14-5: Organization Development Interventions
  • 17. Definition of Interventions An intervention is a set of sequenced and planned actions or events intended to help the organization increase its effectiveness. Interventions purposely disrupt the status quo.
  • 18. Characteristics of Effective Interventions • Is it relevant to the needs of the organization? – Valid information – Free and Informed Choice – Internal Commitment • Is it based on causal knowledge of intended outcomes? • Does it transfer competence to manage change to organization members?
  • 19. The Design of Effective Interventions • Contingencies Related to the Change Situation • Readiness for Change • Capability to Change • Cultural Context • Capabilities of the Change Agent
  • 20. Contd………….. • Contingencies Related to the Target of Change – Strategic Issues – Technology and structure issues – Human resources issues – Human process issues
  • 21. Intervention Overview • Human Process Interventions • Techno structural Interventions • Human Resources Management Interventions • Strategic Interventions
  • 22. Major Types of Interventions in OD . • Human Process Interventions • Techno structural Interventions • Human Resources Management Interventions • Strategic Interventions
  • 23. Human Process Interventions • Coaching • Training and Development • Process Consultation and Team Building • Third-party Interventions (Conflict Resolution) • Organization Confrontation Meeting • Intergroup Relationships • Large-group Interventions
  • 24. Techno structural Interventions • Structural Design • Downsizing • Reengineering • Employee Involvement • Work Design
  • 25. Human Resources Management Interventions • Goal Setting • Performance Appraisal • Reward Systems • Career Planning and Development • Managing Work Force Diversity • Employee Stress and Wellness
  • 26. Strategic Interventions • Integrated Strategic Change • Mergers and Acquisitions • Alliances and Networks • Culture Change • Self-designing Organizations • Organization Learning and Knowledge Management
  • 27. 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
  • 28. Organizational Development Techniques (cont’d) Survey Feedback Approach The use of questionnaires to identify discrepancies among member perceptions; discussion follows and remedies are suggested
  • 29. Organizational Development Techniques (cont’d) 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.
  • 30. Organizational Development Techniques (cont’d) 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
  • 31. Organizational Development Techniques (cont’d) 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
  • 32. Human Process Interventions • Coaching • Training and Development • Process Consultation and Team Building • Third-party Interventions (Conflict Resolution) • Organization Confrontation Meeting • Intergroup Relationships • Large-group Interventions
  • 33. Techno structural Interventions • Structural Design • Downsizing • Reengineering • Employee Involvement • Work Design
  • 34. Human Resources Management Interventions • Goal Setting • Performance Appraisal • Reward Systems • Career Planning and Development • Managing Work Force Diversity • Employee Stress and Wellness
  • 35. Strategic Interventions • Integrated Strategic Change • Mergers and Acquisitions • Alliances and Networks • Culture Change • Self-designing Organizations • Organization Learning and Knowledge Management
  • 37. Team Building Tips Get the right people together for a large block of uninterrupted time to work on high-priority problems or opportunities that they have identified and have them work in ways that are structured to enhance the likelihood of realistic solutions and action plans, which are then implemented enthusiastically and followed up to assess actual versus expected results.
  • 38. Structural Techniques Job Redesign Management by Objectives (MBO) Supplemental Organizational Processes
  • 39. OD interventions are.......... • Unique in nature • Reflexive • Self-analytical • Self-skill building in nature
  • 41. What are T-Groups? • T-groups (“T” for training) are unstructured small-group situations in which participants learn from their own actions • T-groups evolved from the laboratory training research of Kurt Lewin (1945) • T-groups focus on the what, how and why of interpersonal communication. • T-groups are used by consultants to help managers learn about the effects of their behavior on others
  • 42. Goals of T-groups • Increased understanding about one’s own behavior • Increased understanding about the behavior of others • Better understanding of group process • Increased interpersonal diagnostic skills • Increased ability to transform learning into action • Improvement in the ability to analyze one’s own behavior
  • 43. Sensitivity training • Aim is to: (1) encourage participants to recognize the effects of their behavior on others (e.g. by developing good observation and listening skills) (2) get participants to know themselves (e.g. by asking others for feedback) and to share aspects of themselves to others (self-disclosure)
  • 44. Diagnostic skills • Encourage participants to perceive accurately relationships between each other • The focus is on recording/observing who is taking an active role in the discussion (and who is not and WHY) • How satisfied do participants feel in the group discussion?
  • 45. Group action skills • Encourage participants to select and act out (role play) behaviors required by the situation – to learn from the experience • Aim is to support coaching/counseling skills • Common interventions are role plays, team building meetings, adventure games
  • 46. Johari Window • Technique for illustrating the quality of interpersonal communication – identifiers a person’s interpersonal style of communication • Process consultants use the model to help people process data about themselves in terms of how they see themselves and how others see them • Interpersonal communication judged more effective when there is fit (congruence) between how we see ourselves (private face) and how others see us (public face).
  • 47. Johari Window • Unknown to Others Known to others Hidden Spot Open Window Unknown Window Blind Spot Known to Self Unknown to Self
  • 48. Improving Communications Using the Johari Window Reduce Hidden Area Through Disclosure to others Open Window Reduce Blind spot through feedback from others Unknown to Others Known to Others Known to Self Unknown to Self
  • 49. Process Consultation An OD method that helps managers and employers improve the processes that are used in organizations Outside consultant: Enters organization Defines the relationship Chooses an approach Gathers data Diagnoses problem Intervenes Leaves organization
  • 50. Process Consultation • In process consultation, the consultant observes individuals and groups in action – helping them learn to diagnose and solve their own problems • Often used in conjunction with teambuilding, self- directed work teams, quality circles, and other interpersonal interventions
  • 51. Process Consultation: How is it Done? • Consultant observes the communication processes between individuals and workgroups • Interventions used such as listening, probing, questioning, clarifying, reflecting, synthesizing and summarising
  • 52. Process Consultation: Key Questions • How well do group members seek and give information? Ask questions? Summarize? Listen to others? • How well do group members perform ‘group maintenance roles’ such as compromising? Harmonizing? Supporting? • How well do group members solve problems? Make decisions? • How well do group members deal with power and authority issues? • How well do group members exercise leadership?
  • 53. Third Party Peace Making • Intermediaries (or "third parties") are people, organizations, or nations who enter a conflict to try to help the parties de-escalate or resolve it.
  • 54. WALTON’S APPROACH TO THIRD PARTY PEACEMAKING • Walton has presented a statement of theory and practice for third-party peace making interventions that is important in its own right and important for its role in organization development.
  • 55. WALTON’S MODEL IS BASED ON FOUR ELEMENTS The conflict issues. Precipitating circumstances. Conflict relevant acts. The consequences of the conflict.
  • 56. SOURCES OF CONFLICT  Sustentative issues.  Emotional issues.
  • 57. WALTON’S HAS OUTLINED THE INGREDIENTS OF A PRODUCTIVE CONFRONTATION Mutual positive motivation. Balance of power. Synchronization of confrontation efforts. Differentiation and integration of different phases of the intervention must be well paced. Conditions that promote openness should be created. Reliable communicative signals. Optimum tension in the situation .
  • 58. ORGANIZATION MIRROR INTERVENTION It is a technique designed to work units feedback on how other elements of organization view them. Designed to improve relationships between teams.
  • 59. What is a “confrontation meeting?” • One day meeting of entire management of an organization in which they take a reading of their own organizational health • Organizational confrontation meeting: brings together all of the managers of an organization to meet to confront the issue of whether the organization is effectively meeting its goals
  • 60. Process 1. Climate setting 45-60 min. 2. Information Collecting 60 min. 3. Information Sharing 60 min 4. Priority setting and group action planning 75 min. 5. Action Planning 60-120 minutes 6. Immediate follow-up by top team 60-180 min. 7. (Four-six weeks later) Progress review 120 minutes
  • 61. When is it appropriate to conduct a confrontation meeting? • Need for the total management group to examine its own workings • Very limited time available for the activity • Top management wishes to improve conditions quickly • Enough cohesion in the top team to ensure follow-up • Real commitment by top management to resolve the issue • Organization is experiencing , or has recently experienced, some major change
  • 62. Coaching & Mentoring The main reasons why organizations need coaching and mentoring activities are as follows: To maximize knowledge transfer To increase the skill levels For succession planning
  • 63. Contd…….. To maximize knowledge transfer  Coaching & Mentoring provides a learning channel that effectively transfers knowledge within the organization  Critical knowledge is maintained in the organization  Contextual learning is evident
  • 64. Contd……. To increase skill levels  The coaches and mentors can very effectively transfer core skills  Customization of skills in relation to the core activities of the business is retained  Cross training of staff can be achieved
  • 65. Contd…. For succession planning  The ability for the organization to identify ‘fast track’ candidates and prepare them for new jobs is enhanced by coaching & mentoring  Coaching & Mentoring can ensure continuity of performance when key staff leave the organization because core skills have been transferred
  • 66. Beneficiaries of Coaching & Mentoring The Coach / Mentor The Employee The Department The Organization
  • 67. Benefits to The Coach / Mentor Benefits to the Coach / Mentor can be described as:  Job Satisfaction  Further development of own skill level  Involvement in strategic activity
  • 68. What does a mentor actually do? • Encourage • Convey sincere belief in protégé ability to succeed • Give advice • Give constructive feedback • Give formal and informal instruction (technical, clinical, political) • Introduce to colleagues, etc. • Provide opportunities for protégé to demonstrate his/her skills
  • 69. Contd…. • Serve as career and lifestyle role model • Attend meetings, conferences, and other events together • Provide observation experience • Provide role-playing experience • Exchange/discuss ideas • Co-authoring • Challenge protégé to and assist with career planning and development; emphasis on planning!
  • 70. Contd.. • Review resumes, cover letters • Provide sense of direction/focus • Help in problem solving • Practice communication/interpersonal skills • Assist in career planning • Help set goals
  • 71. What about mentees? • Potential to succeed • Capacity for self-disclosure • Willing to learn • Confident to try new things • Communicate well • Trust others • Ambitious • Internal focus of control • High job investment • Values relationships • Sees relationship between personal and professional growth • Active learner • Focused • Learn from, but not have to please the mentor • Knows limits/ when to get help • Ethical • Takes initiative • Goal oriented • Organization/ time management skills • Open minded
  • 72.
  • 73.
  • 74. What Coaching and Mentoring Are • Coaching is a core competency necessary for knowledge transfer – Mentoring is a two-way process of dialogue and planning – – People helping each other to find their way on the job, in the organization and over a lifetime
  • 75. Both require . . . . . . • observation, dialogue, and agreement. . . . . targeted at building individual and team capabilities. . . . . .to foster continuous improvement in organizations.
  • 76. STRATEGIC IMPORTANCE OF COACHING AND MENTORING Coaching and mentoring as knowledge transfer: Everyone has unique knowledge to exchange with others Insist on the discipline of a 50/50 split in time
  • 77. Structural interventions • Socio technical systems (STS). • Self-managed teams. • Work redesign. • Management by objectives (MBO). • Quality circles. • Quality of work life projects (QWL). • Parallel learning structures (or collateral organizations). • Physical settings. • Total quality management (TQM). • Reengineering. • Large-scale systems change.
  • 78. Socio technical Systems (STS) • Largely associated with experiments that emerged under the auspices of the Travistock Institute in Great Britain. • Efforts generally attempted to create a better “fit” among the technology, structure, and social interaction of a particular production unit in a mine, factory, or office. • Two basic premises: – Effective work systems must jointly optimize the relationship between their social and technical parts. – Such systems must effectively managed the boundary separating and relating them to the environment. – Highly participative among stakeholders: Employees, engineers, staff experts, and managers. – Feature the formation of autonomous work groups (i.e. self-managed). – Theory suggested that effectiveness, efficiency, and morale will be enhanced.
  • 79. Self-Managed Teams • Problems in implementation: – What to do with the first-line supervisors who are no longer needed as supervisors. – Managers that are now one level above the teams will likely oversee the activities of several teams, and their roles will change to emphasize planning, expediting, and coordinating. • They need considerable training to acquire skills in group leadership and ability to delegate; skills to have participative meetings, planning, quality control, budgeting, etc.
  • 80. Work Redesign • Hackman and Oldham – theoretical model of what job characteristics lead to the psychological states that produce what they call ‘high internal work motivation.’ • Model approach has the characteristics of OD; use of diagnosis, participation, and feedback. • Model suggested that organizations analyze jobs using the five core job characteristics; then redesign of group work: skill variety, task identity, task significance, autonomy, feedback from job.
  • 81. MBO and Appraisal • Management by objective (MBO) programs evolve from a collaborative organization diagnosis and are systems of joint target setting and performance review designed to increase a focus on objectives and to increase frequency of problem solving discussions between supervisors and subordinates and within work teams. • MBO programs are unilateral, autocratic mechanisms designed to force compliance with a superior’s directives and reinforce a one-on- one leadership mode.
  • 82. Quality Circles • The concept is a form of group problem solving and goal setting with a primary focus on maintaining and enhancing product quality. • Extensively used in Japan. • Quality circles consist of a group of 7 – 10 employees from a unit; who have volunteered to meet together regularly to analyze and make proposals about product quality and other problems. • Morale and job satisfaction among participants were reported to have increased. • Quality circles contributes toward total quality management.
  • 83. Quality of Work Life (QWL) • Organizational improvement efforts. – Attempt to restructure multiple dimensions of the organization. – To institute a mechanism which introduces and sustains changes over time. • An increase in participation by employees and increase in problem solving between the union and management.
  • 84. Parallel Learning Structures • Consists of a steering committee and a number of working groups that: – Study what changes are needed in the organization, – Make recommendations for improvement, and – Then monitor the resulting change efforts.
  • 85. Physical Setting and OD • Physical settings are an important part of organization culture that work groups should learn to diagnose and manage, and about which top management needs input in designing plants and buildings. • Sometime, physical setting were found to interfere with effective group and organizational functioning. • Examples: A personnel director having a secretary share the same office; resulting lack of privacy and typewriter noise, thus adversely affect the productivity of the director. • Management encouraged group decision making, yet providing no space for more than 6 people to meet at one time.
  • 86. Total Quality Management (TQM) • Also called continuous quality improvement. • A combination of a number of organization improvement techniques and approaches, including the use of quality circles, statistical quality control, statistical process control, self-managed teams and task forces, and extensive use of employee participation. • Features that characterize TQM: – Primary emphasis on customers. – Daily operational use of the concept of internal customers. – An emphasis on measurement using both statistical quality control and statistical process control techniques. – Competitive benchmarking. – Continuous search for sources of defects with a goal of eliminating them entirely. – Participative management. – An emphasis on teams and teamwork. – A major emphasis on continuous learning. – Top management support on an ongoing basis.
  • 87. Reengineering • Definition – the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed. • Reengineering focuses on visualizing and streamlining any or all business processes in the organization. • Reengineering seeks to make such processes more efficient by combining, eliminating, or restructuring activities without regard to present hierarchical or control procedures. • Reengineering is a top-down process; assumes neither an upward flow of involvement nor that consensus decision making.
  • 88. Self-Design Strategy • It is a “learning model” to help organization develop “the build-in capacity to transform themselves to achieve high performance in today’s competitive and changing environment. • Basic components: – An educational component consisting of readings, presentations, visits to other companies, and attendance at conferences. – Clarification of the values that will guide the design process. – Diagnosis of the current state of the organization using the values as template. – Changes are then designed and implemented in an interactive manner.
  • 89. Large-Scale Systems Change and Organizational Transformation • Large-scale systems change; mean organizational change that is massive in terms of the number of organizational units involved, the number of people affected, the number of organizational subsystems altered, and/or the depth of the cultural change involved. – Example: a major restructuring with objectives including a reduction in hierarchical levels from 8 to 4. • Organizational transformation; second-order change – requires a multiplicity of interventions and takes place over a fairly long period of time (5-year plan).
  • 90. Do’s Of OD Interventions Inform in advance of the nature of the intervention and the nature of their involvement. OD effort has to be connected to other parts of the organization. Directed by appropriate managers. Based on accurate diagnosis .
  • 91. Contd…. • commitment to OD at all stages. • Evaluation is the key to success. • Show employees how the OD effort relates to the organization's goals and overriding mission.
  • 92. 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. Thomson, South Melbourne Australia
  • 93. Organisation-Level Diagnostic Model Inputs General Environment Uncertainty in social, technological, economic , ecological and political forces Industry Structure 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. Nelson, South Melbourne Australia Strategy The way a company uses its resources human economic or technical to gain and sustain competitive advantage Organisation design Organisation performance Productivity Stakeholder satisfaction
  • 94. Goal Clarity Task Team Structure Functioning Group Group Composition Norms Design Components Outputs Organisation Design Team Effectiveness Group-Level Diagnostic Model Inputs  Source Waddell, Cumming and Worley (2007) Organisation Development & Change. Thomson, South Melbourne Australia
  • 95. skill Variety Task Identity Autonomy Task Feedback Significance about Results Individual-Level Diagnostic Model Inputs Design Components Outputs Organisation Design Group Design Personal Traits Individual Effectiveness  Source Waddell, Cumming and Worley (2007) Organisation Development & Change. Thomson, South Melbourne Australia
  • 96. O. D. PROCESS: Diagnosis, Action & Program Management The O. D. process consists of three components-diagnosis, action and program management. Diagnosis component consists of continuous collection of data about the total system, its sub-units its processes, and its culture. The action component consists of all the activities and interventions designed to improve the organization’s functioning. The program management component is designed to ensure success of the program. Diagnosis involves; 1. What are its strengths? 2. What are its problems? 3. What are its unrealized opportunities? 4. Discrepancy between desired situation and current situation?
  • 97. Elements of the OD process 1. Entering and contracting 2. Diagnosing ( Organization, groups and jobs) 3. Planning and implementing change 4. Evaluating and institutionalizing
  • 98. 1. 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
  • 99. • 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
  • 100. 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
  • 101. 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.
  • 102. 2. 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.
  • 103. 2. Organizational Diagnosis (Contd.) 1. 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?
  • 104. 3. 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
  • 105. Comparison of Planned Change Model Problem identification Consultation with Behavioural Science Expert Data gathering and Preliminary Diagnosis Feedback to Key Client of Group Joint Diagnosis of Problem Joint Action Plan Action Data Gathering after Action Unfreezing Movement Refreezing Initiate the Inquiry Inquiry into Best Practices Discover Themes Envision a Preferred Future Design and Deliver Ways to Create the Future (A) Lewin’s Planned Change Model (B) Action Research Model (C) Positive Model
  • 106. 4. 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
  • 107. ORGANIZATIONAL DEVELOPMENT Kurt Lewin’s Three –Stage Model : as modified by Lippitt & others 1. Developing a need for change. (Lewin’s unfreezing phase) 2. Establishing a change relationship. In this phase a client system in need of help and a change agent from outside the system establish a working relationship 3. Clarifying or diagnosing the clients system’s problem 4. Examining alternative routes and goals; establishing goals and intentions of actions
  • 108. ORGANIZATIONAL DEVELOPMENT Kurt Lewin’s Three –Stage Model : as modified by Lippitt & others 5.Transforming intentions into actual change efforts.Phases 3, 4 and 5 correspond to Lewin’s moving phase 6.Generalizing and stabilizing change. This corresponds to Lewin’s refreezing phase 7.Achieving a terminal relationship, that is, terminating the client-consultant relationship
  • 109. ORGANIZATIONAL DEVELOPMENT The Burke-Litwin Model of Organizational Change (a)First-order change- transactional, evolutionary, adaptive, incremental, or continuous change (b)Second-order change- transformational, revolutionary, radical, or discontinuous change n.b.. O. D. programs are directed toward both first-order and second order change with an increasing emphasis on second –order transformational change.
  • 110. ORGANIZATIONAL DEVELOPMENT The Burke-Litwin Model of Organizational Change First-Order Second-Order 1. Structure 1. Mission and Strategy 2. Management Practices 2. Leadership 3. Systems 3. Organizational Culture (Transactional) (Transformational) Distinguishing Organizational Climate and Organizational Culture. Climate- people’s perceptions and attitudes about the organization Culture- deep seated assumptions about values and beliefs that are enduring, often unconscious and difficult to change
  • 111. ORGANIZATIONAL DEVELOPMENT( First) Management Practices Structure Systems Policies & Procedures Work Unit Climate Motivation Individual Needs & Values Task Requirements & Individual Skills / Abilities Individual & Organizational Performance Individual Needs & Values
  • 113. The Burke-Litwin Model of Organizational Performance and Change External Environment Leadership Organizational Culture Mission & Strategy Structure Management Practices Systems (Policies & Procedures) Work Unit Climate Motivation Individual & Organizational Performance Task Requires & Individual Skills/ Abilities Individual Needs & Values