Topic

Organisation
Development

LEARNING OUTCOMES
By the end of this topic, you should be able to:
1.

State the different definitions of organisation development (OD);

2.

Describe the common characteristics of OD;

3.

Describe and compare various models of OD;

4.

Relate some models of OD to Lewins three-step model; and

5.

Explain the strengths and weaknesses of OD.

X INTRODUCTION
The previous topics describe the planned approach to change and various
models of planned change. In fact, the planned approach to change management
is closely associated with the practice of organisation development (OD). OD is a
company-wide improvement strategy which emerged in the late 1950s and early
1960s. It is about planned change; its aim is to get individuals, groups and
organisations to function better. OD covers various activities and techniques
used to achieve organisational effectiveness.
This topic first describes what OD is in terms of its definitions and characteristics.
Then, we will go through an overview of the OD process, followed by an
evaluation of the status of OD.

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6.1

ORGANISATION DEVELOPMENT

61

DEFINITIONS AND CHARACTERISTICS OF

OD

OD is a planned, systematic process of change. It is a collection of planned

change interventions designed to improve an organisations long-term health
and performance. It uses behavioural science knowledge and techniques to
enhance the total system by improving its problem-solving capabilities and the
ability to cope with environmental changes (Certo & Certo, 2009; Daft, 2010).
A number of definitions exist in the literature and are presented in Table 6.1.
Each definition has a slightly different emphasis:
The first definition focuses on culture as the target of change.
The second definition is concerned with ODs long-term interest in change effort
and the use of change agents.
The third and fourth definitions address OD as an organisation-wide process.
And the fifth definition refers OD as a soft approach emphasising on small
incremental changes with employee participation.
Table 6.1: Definitions of Organisation Development
1.

Organisation development is a planned process of change in an organisations culture

through the utilisation of behavioural science technology, research and theory.

2.

Organisation development refers to a long-range effort to improve an organisations

problem-solving capabilities and its ability to cope with changes in its external
environment with the help of external or internal behavioural-scientist consultants, or
change agents, as they are sometimes called.

3.

Organisation development is an effort (1) planned, (2) organisation-wide, and (3)

managed from the top to (4) increase organisation effectiveness and health through
(5) planned interventions in the organisations processes, using behavioural science
knowledge.

4.

Organisation development is a system-wide process of data collection, diagnosis,

action planning, intervention and evaluation aimed at: (1) enhancing the congruence
among organisational structure, process, strategy, people and culture; (2) developing
new and creative organisational solutions; and (3) developing the organisations selfrenewing capacity. It occurs through the collaboration of organisational members
working with a change agent using behavioural science theory, research and
technology.

5.

Organisation development is a soft approach which describes a process of change

undertaken in small incremental steps managed participatively.
Source: Waddell, Cummings & Worley (2004)

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Upon incorporating the different views of OD, Waddell, Cummings and Worley
(2004) presented their definition as follows:
Organisation development is a system-wide application of behavioural science
knowledge to the planned development and reinforcement of organisational
strategies, structures and processes for improving an organisations
effectiveness. (p. 4)

Waddell, Cummings, and Worley (2004) further described the following

characteristics of OD:
(a)

OD applies to an entire system such as the whole organisation, a single

plant, a division, a department or a work group.

(b)

OD is based on behavioural science knowledge and practices such as

leadership, group dynamics, job design and organisational culture,
structures and strategy.

(c)

OD is about planned change. It involves planning to diagnose and solve

organisational problems. However, such plans are often revised based on
the progress feedback of the change intervention. Therefore, OD is an
adaptive process for planning and implementing organisational changes.

(d)

OD involves both the creation and the subsequent reinforcement of change.

The new change intervention will be reinforced and institutionalised to
become the norm of the organisation.

(e)

OD has a wider focus encompassing changes in strategy, structure and

processes at different organisational levels. A change programme aimed at
modifying existing organisation strategy at the organisational level, for
example, might include changes in the group decision-making structure
(e.g., from centralisation to decentralisation) and in the methods of
individual solving problems (process). Consequently, OD involves change
interventions at different levels: organisational, group and individual.

(f)

OD is long-range oriented with the aim of improving organisational

effectiveness and health.

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ORGANISATION DEVELOPMENT

63

Paton and McCalman (2008) define OD as follows:

Organisation development is an ongoing process of change aimed at
resolving issues through the effective diagnosis and management of the
organisations culture. This development process uses behavioural and social
science techniques and methodologies through a consultant facilitator and
employs action-research as one of the main mechanisms for instigating
change in organisational groups. (p. 213)

Paton and McCalman (2008) also listed 13 characteristics common to OD as

identified by Margulies and Raia (1978):
(a)

It is a total organisational system approach;

(b)

It adopts a systems approach to the organisation;

(c)

It is positively supported by the top management;

(d)

It uses third party change agents to develop the change process;

(e)

It involves a planned change effort;

(f)

It uses behavioural science knowledge to instigate change;

(g)

It sets out to increase organisational competence;

(h)

It is a long-term change process;

(i)

It is an ongoing process;

(j)

It relies on experiential learning techniques;

(k)

It uses action research as an intervention model;

(l)

It emphasises goal setting and action planning; and

(m) It focuses on changing attitudes, behaviour, and performance of work

groups rather than individuals.

SELF-CHECK 6.1
1. Define OD using your own words.
2. Describe the common characteristics of OD.

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ACTIVITY 6.1
Consult a few managers from several companies to find out their
understanding of the OD concept.

6.2

ORGANISATION DEVELOPMENT PROCESS

OD is about bringing progress change through more than one element and level
within the organisation. It is seen as a long-term, strategic mechanism for
initiating change that places emphasis on the process of attaining change. In
terms of the process of OD, there are a number of phases that an organisation
will go through. There are many models of the process in the OD literature and
these usually involve distinct stages or phases. Although there are some variation
in describing the OD process, the phases involved are quite similar. This section
presents the OD process as defined by Bullock and Batten (1985), Cummings and
Worley (2005) and Warner Burke (1994).

6.2.1

Bullock and Battens Four-Phase Model of

Planned Change

Bullock and Batten (1985) developed an integrated four-phase model of planned

change based on a review and synthesis of over 30 models of planned change in
the literature. This model has a broad applicability as it can be applied to most
change situations used in OD. There are two distinct major dimensions in this
model:
(a)

Change Phases
These are different stages an organisation moves through as it undertakes
planned change.

(b)

Change Processes
These refer to the methods used to move an organisation from one phase or
stage to another.

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65

The four phases of Bullock and Battens (1985) model of planned change are
summarised in Table 6.2:
Table 6.2: Bullock and Battens (1985) Four-phase Model of Planned Change
Change Phase
1.

Exploration Phase

2.

4.

Organisation to explore whether

specific changes are needed in
the system.
If so, decide how much
resources need to be committed
to plan the changes.

Recognise the need for change.

Searching for professional assistance (a

change agent or consultant) to develop the
appropriate change interventions.

Establishing a contract with the change agent

to define each partys roles, duties and
responsibilities.

Collecting data to analyse the problem.

Establishing the goals of the change

intervention.

Designing appropriate action plan to achieve

these goals.

Persuading all key parties involved to

approve and support the proposed changes.

Making arrangements to manage the change

process.

Gaining support from all relevant parties for

the intervention to be taken.

Evaluating the implemented change

intervention.

Providing feedback about the results so that

any necessary adjustments to the action plan
can be made.

Reinforcing new behaviour among

employees through reward systems.

Transferring the change intervention from

one part to another part of the organisation.

Training managers and employees to

monitor and improve the changes.

Planning Phase

3.

Change Process Involved

This phase involves identifying

and understanding the
organisations problems and
concerns.
An intervention plan is then
developed to solve the problem.

Action Phase

The organisation implements

the changes based on the action
plan developed previously.

This phase moves the

organisation from its existing
state to a desired future state.

Integration Phase

This phase is concerned with

stabilising the changes so that
they become part of an
organisations normal routine.

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SELF-CHECK 6.2
1.

Describe Bullock and Battens (1985) four-phase model for planned

change.

2.

Differentiate between change phase and change process as

defined by Bullock and Batten (1985).

6.2.2

Cummings and Worleys General Model of

Planned Change

Cummings and Worley (2005) suggested a general framework for planned

change. This general model of planned change describes four basic activities to
be carried out in organisation development and change. The four activities or
stages are:
(a)

Entering and Contracting

The first stage is about entering into and contracting for change initiatives
with the change agent. Entering into a change intervention requires data
gathering to understand the problems faced by the organisation. Upon
recognising the need for change, managers and the change agent discuss
the problem and develop a contract or agreement to engage in planned
change. The contract spells out the specific change intervention, the time
and resources needed to implement the change intervention, and the extent
to which the change agent and employees will be involved. Entering and
contracting help to define what issues will be addressed in the change
activities, who will carry them out, and how they will be accomplished.

(b)

Diagnosing
The diagnosis process is an important activity in planned change. The current
situation of the organisation is carefully studied. It involves identifying and
understanding organisational problems, gathering and analysing data, and
providing feedback to the managers and employees about the causes and
consequences of organisational problems. Organisation members and the
change agent will jointly discuss the data and their implications for change.

(c)

Planning and Implementing Change

This stage involves action planning and implementation of the action plan.
Organisation members and the change agent will jointly design interventions
to achieve organisational goals and make action plans to implement them.

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67

Several factors may be taken into consideration in designing a change

intervention. They are:
(i)

Organisations readiness for change;

(ii)

Organisations current change capabilities;

(iii) Supporting the culture for change; and

(iv) The change agents skills and abilities.
(d)

Evaluating and Institutionalising Change

The final stage in planned change is evaluating the outcomes of the change
intervention. This involves assessing the degree to which the changes have
accomplished the desired objectives. For example, managers can compare
production costs before and after the change to see whether cost efficiency
has been increased. Or, they can survey customers to see whether they are
more satisfied with the quality of the products and services. Feedback from
the evaluation provides information about whether the changes should be
continued or modified.
Successful change interventions must be institutionalised so that they
become the norm of the organisation. Institutionalisation makes the desired
change permanent so that it persists in the organisation. The desired
changes can be reinforced or refreezed through feedback, rewards and
training.

Figure 6.1 shows the general model of planned change depicted by Cummings
and Worley (2005):

Figure 6.1: General model of planned change

Source: Cummings & Worley (2005)

SELF-CHECK 6.3
Describe Cummings and Worleys (2005) general framework for planned
change used in OD.

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6.2.3

ORGANISATION DEVELOPMENT

Warner Burkes Seven-Phase OD Change Process

Warner Burke (1994) identified seven phases which an organisation goes through
during a typical OD change process. These seven phases were also described in
Paton and McCalman (2008) when they discussed the development of
organisations. These phases are described below in Table 6.3.
Table 6.3: Warber Burkes Seven-Phase OD Change Process
Phase
Phase 1:
Entry

Explanation
At this phase, an initial contact is made between the organisation
and the consultant or change agent. Both parties will explore the
issues and establish a rapport for working on the OD intervention. It
is important for both the consultant and the organisation to have a
clear understanding of their respective roles engaged in the change
process. The organisation needs to determine whether the consultant
is the right person for the job and the consultant also needs to decide
whether he can work with the organisation.

Phase 2:
Formalising the
Contact

The initial contact between the consultant and the organisation is

formalised by drafting a contract that explains and clarifies what will be
done. The consultant lays out what he intends to do and explains what
the organisation is contracting to do. The client organisation also
discusses the consultants proposal internally with its key people, and
may propose amendments before agreeing to the terms and conditions.

Phase 3:
Information
Gathering and
Analysis

Upon successfully negotiating a contract, the consultant begins the

diagnosis phase in conjunction with the client organisation. OD is at
heart an action programme which relies heavily on data collection
and analysis. Hence, formal gathering of information is necessary;
and this usually comes in the form of interviews, surveys and
organisational records and documentations.

Phase 4:

Having gathered the data, the consultant will analyse it and

summarise the findings in a format that can be easily understood by
the members of the client organisation. A feedback session is
conducted in this phase. The feedback session should cover the
following three elements:

Feedback

(a) Presentation of the summary of the data gathered and the

findings of the consultants initial analysis;
(b) A general discussion which clarifies any points of confusion;
and
(c) The interpretation of what has taken place and how this will be
carried forward.
The feedback session provides an opportunity for the consultant to
make changes to his analysis and interpretation upon discussion
with the relevant parties.

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Phase 5:
Planning the
Change Process

ORGANISATION DEVELOPMENT

69

Upon the completion of the feedback session, both the consultant

and the client organisation jointly plan for a change intervention
programme. The aim of this planning stage is to search for
alternative actions available to the organisation and to consider the
best way forward, that is, the most appropriate course of action to
take. It is important that the consultant go through this phase in
collaboration with the client organisation to gain commitment to
both the plan for change and its implementation.

Phase 6:
Implementing
the Change

Implementation of change takes place once the organisation has

decided what action to be taken. The consultant may or may not be
involved at this implementation stage depending on the type of
action to be taken, the experience required from the client
organisation to take the action, and the consultants own assessment
of his role at this stage. It is suggested that the consultant keeps an
eye on the development of the intervention even though he is not
actively involved in this phase.

Phase 7:
Assessment

The final phase of the OD change process is to evaluate the results of

the change intervention. An assessment of the OD intervention
should take the form of a review to look at what has been done, what
the current state is, and what further action is needed to move the
organisation forward to the desired state.

Table 6.4 provides a comparison of the three OD models of planned change

discussed above.
Table 6.4: Comparison of OD Models of Planned Change
Bullock and Battens (1985)
Four-Phase Model

1. Exploration

Cummings and Worleys

(2005) General Model

1. Entering and

Warner Burkes (1994)

Seven-Phase Process

1. Entry

Contracting

2. Planning

2. Diagnosing

2. Formalising the Contact

3. Action

3. Planning and

3. Information Gathering

Implementing Change

4. Integration

4. Evaluating and

and Analysis

4. Feedback

Institutionalising Change

5. Planning the Change

Process

6. Implementing the
Change

7. Assessment

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SELF-CHECK 6.4
Compare and contrast the phases of OD models by Bullock and Batten
(1985), Cummings and Worley (2005), and Warner Burke (1994).

ACTIVITY 6.2
How do you relate Lewins three-step model (unfreezing, moving and
refreezing) to the following models of planned change?
(a)

Bullock and Battens (1985) four-phase model.

(b)

Cummings and Worleys (2005) general model.

6.3

AN EVALUATION OF ORGANISATION
DEVELOPMENT: IDENTIFYING STRENGTHS
AND WEAKNESSES

Managers have been employing OD techniques for several decades. OD

techniques apply not only to business organisations, but also to other types of
organisations such as religious organisations. Moreover, OD is increasingly going
international with OD applications being documented throughout the world. OD
has been employed in the United States, Canada, Mexico, United Kingdom,
Sweden, Norway, the Netherlands, Germany, Poland, Hungary, Russia,
Venezuela, South Africa, Israel, Japan, China, Hong Kong, and the Philippines.
OD efforts have involved such organisations as Saab (Sweden), Norsk Hydro
(Norway), Imperial Chemical Industries (England), Shell Oil Company (the
Netherlands), Orrefors (Sweden), and Alcan Canada Products.
Although OD has vastly expanded in recent years, relatively few organisations,
especially in Malaysia, are actively involved in formal OD programmes. Many
companies may be applying OD approaches and techniques without knowing
that such a term exists.

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71

There are four major situations where OD is needed:

(a)

The organisation is experiencing a problem which is leading to its failure in

meeting objectives;

(b)

Change is required to react or adapt to the external environment;

(c)

Where the introduction of one form of change (e.g., new technology)

requires change in other parts of the organisation (e.g., organisational
structure, reward systems, etc.); and

(d)

Where the introduction of change acts as the trigger for consideration of

other new interventions.

OD can be an expensive and time-consuming process; hence, it is important to

examine its utility. Does OD deliver the benefits that it promises? The definitions
of OD given earlier in this chaper make it clear that its implicit promise is to
deliver two major things:
(a)

A more effective organisation; and

(b) A happier, more satisfied and committed workforce.

Unfortunately, it is difficult to tell whether these aims can be achieved. A review
of the previous studies on OD shows little support for ODs objective to improve
organisational performance and human process variables. In fact, several
commonly voiced weaknesses of OD include the following:
(a)

The benefits of an OD programme are difficult to evaluate;

(b)

OD intervention programmes are generally too time consuming;

(c)

OD objectives are usually too vague;

(d)

The total costs of an OD intervention programme are difficult to gauge; and

(e)

OD intervention programmes are generally too expensive.

These weaknesses, however, should not eliminate OD from consideration.

Instead, managers can improve the quality of OD efforts by doing the following:
(a)

Systematically tailoring OD intervention programmes to meet the specific

needs of the organisation;

(b)

Continually demonstrating exactly how people should change their

behaviour; and

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(c)

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ORGANISATION DEVELOPMENT

Ensuring employees who change their behaviour in ways suggested by the

OD intervention programme are rewarded.

In conclusion, OD is a planned approach involving various change activities and

techniques to help organisations achieve greater effectiveness. OD helps
organisations to cope with rapid changes in the external environment. With the
help of a change agent or OD practitioner, managers can diagnose problems and
devise appropriate solutions to the problems. The role of the change agent is
discussed in the next topic.

SELF-CHECK 6.5
Explain briefly the strengths and weaknesses of OD intervention
programmes.

OD is a system-wide planned approach to change; it focuses strongly on the

process of initiating change.

OD is about changing the organisation from one state, which is considered as

unsatisfactory, to another by means of behavioural science techniques and
knowledge for change.

OD is a collection of planned change interventions designed to improve an

organisations effectiveness.

There are various definitions of OD.

OD has a number of characteristics that distinguish it from other approaches

to change that focus on one or few aspects of a system, such as technological
innovation.

Bullock and Battens (1985) OD model of change includes the following four
phases: exploration, planning, action and integration.

Cummings and Worleys (2005) OD model involves four basic sets of

activities: entering and contracting for change, diagnosing the organisation,
planning and implementing change, and evaluating and institutionalising
change.

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73

Warner Burke (1994) identified seven phases in a typical OD process: entry,

formalising the contract, information gathering and analysis, feedback,
planning the change process, implementing the changes and assessment.

There are four major situations where OD is needed:

The organisation is experiencing a problem which is leading to its failure

in meeting objectives;

Change is required to react or adapt to the external environment;

Where the introduction of one form of change (e.g., new technology)

requires change in other parts of the organisation (e.g., organisational
structure, reward systems, etc.); and

Where the introduction of change acts as the trigger for consideration of

other new interventions.

However there are also several weaknessess of OD:



The benefits of an OD programme are difficult to evaluate;

OD intervention programmes are generally too time consuming;

OD objectives are usually too vague;

The total costs of an OD intervention programme are difficult to gauge;

and

OD intervention programmes are generally too expensive.

ODs implicit promise is to deliver two things: a more effective organisation;

and a happier, more satisfied and more committed workforce.

Although OD is increasingly going international, many organisations are

applying OD approaches and techniques without knowing the term
organisation development.

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Behavioural science

Feedback session

Change phases

Organisation development

Change processes

Planned change interventions

Consultant

Bullock, R. J., & Batten, D. (1985 December). Its just a phase were going through:
A review and synthesis of OD phase analysis. Group and Organization
Studies, 10, 383-412.
Certo, S. C., & Certo, S. T. (2009). Modern management: concepts and skills (11th
ed.). Upper Saddle River, NJ: Merrill Prentice Hall.
Cummings, T. G., & Worley, C. G. (2005). Organization development & change.
Mason, Ohio: South-Western Thomson.
Daft, R. L. (2010). New era of management (9th ed.). South-Western, Cengage
Learning.
Margulies, N., & Raia, A. (1978). Conceptual Foundations of Organizational
Development. New York: McGraw-Hill.
Paton, R. A., & McCalman, J. (2008). Change management: A guide to effective
implementation (3rd ed.). London: Sage Publications.
Waddell, D. M., Cummings, T. G., & Worley, C. G. (2004). Organisation
development and change (2nd ed.). Southbank Victoria: Thomson.
Warner Burke, W. (1994). Organization Development: A Normative View (2nd
ed.). Reading, MA:Addison-Wesley.