THE NATURE AND EFFECTIVENESS OF ORGANISATION DEVELOPMENT(OD)

Introduction

South African organisations are being exposed to intensely dynamic internal and
external environments on all levels of the political, social and economic scale. Up
until now the competitive position of South African organisations has closely mirrored
that of other developing countries. As sanctions disappear and as we fully re-enter
the global economy, together with the workings of a more integrated South African
society, organisations will have to make adaptions and changes in order to continue
along the path of competitiveness, effectiveness and survival.

This current socio-economic environment of South Africa has called for organisations
to redress attitudes and perceptions, to move towards new technologies, and to
place emphasis on the bottom line issues of productivity (Van Eynde et al, 1992).
Programmes which intend to bring about such change which is planned, is known as
organisation development (OD). This essay will address the subject of Organisational
Development and its interventions, and review the research dealing with its
effectiveness in order to assess organisation development as an instrument for
implementing positive planned change.

Definition

Organisation development can be defined as "the deliberate, reasoned, introduction,

establishment, reinforcement, and spread of change for the purpose of improving an
organisation's effectiveness and health. Effectiveness refers to setting and attaining
appropriate goals in a changing environment. Health refers to the motivation,
utilisation, and integration of human resources within the organisation" (Huse, 1980
p23). Organisation development therefore consists of a set of actions applied from
the theory of psychology and organisational behaviour to improve organisational
effectiveness and employee well being (Beer & Walton, 1987).

The Theoretical Basis of Organisation Development

The theoretical problem that surrounds organisation development is that there is no

single all encompassing theory. It draws from many sources and has its roots in more
than one methodology and in a variety of theories and concepts about individuals,
groups, people and organisations (Burke, 1987). Therefore, the areas that OD theory
and practice draws on includes motivation theory, personality theory, learning theory,
group dynamics, general systems theory, research on leadership and power as well
as experimentation on organisational design (Huse, 1980). These theoretical areas
contribute to the foundations of organisational development programmes.

The programmes of organisation development are based upon a systematic analysis

of problems, resulting from the perceived need to change, the purpose of which to
increase the organisation's effectiveness through the application of OD interventions
or techniques (Harvey & Brown, 1988). The process by which this systematic
analysis of problems takes place can be represented by the use of an action
research model. It is an underlying and guiding frame of reference for any OD effort
(Burke, 1987). Although other models exist like Lewin's three step model and phases
of plan change by Lippitt, Watson & Westley, these models are not mutually
exclusive, and thus do not deviate very much in principal from the action research
model chosen to be discussed. See appendix 1 for a summary comparison of the
three models.

Action Research

The first step in the action research model and in any OD effort, is problem
recognition. This stage usually begins when a key executive senses that the
organisation has a problem that might be alleviated by a change agent (Drory, 1986).
At this stage, the problem need not be well defined, but is perceived to include some
human behavioural aspects (Drory, 1986).

Consultation with a behavioural scientist expert follows who then proceeds to collect
information about the organisational system (Drory, 1986). Techniques such as
observations, interviews, and questionnaires or surveys are employed for the
collection of this data which provides the organisation and the consultant with a
better understanding of the system disequilibrium and allows for the formulation of
interventions needed in order to address and solve the problem(s) experienced in the
organisation (Harvey & Brown, 1988).

Thomas (1987) has stated that despite the popularity of surveys in OD data
collection, serious questions arise about the validity of measuring such intangibles as
attitudes, values and beliefs. Also, satisfaction surveys tend to be narrowly focused,
and they ignore the rootedness of employee expectations in the work situation itself.
However, when surveys are followed by other methods like individual interviews or
participant observation, it forms a more phenomenological sort of knowledge and
permits employees to join the conversation and even argue their views, thus allowing
for a more wholistic and effective approach to OD data collection (Thomas, 1987).

Feedback to the client and diagnosis constitutes the next step in the action research
model. In this phase the consultant provides the client with all the relevant and useful
data which is then jointly analysed so as to define the specific problems to be
addressed (Drory, 1986). This phase leads to a series of intervention techniques or
activities aimed at resolving the problems related to increasing organisation
effectiveness and health. These may be human-process interventions,
technostructural or multifaceted interventions - the nature of which will discussed
later.

The final step once the interventions are implanted is to monitor the results and
stabilise the desired changes (Harvey & Brown, 1988). "The evaluation is carried out
by means of collecting new data in terms of soft or hard measures on a relevant
parameter like performance, in order to determine the success of the actions taken"
(Drory, 1986 p131).

In practice, these phases of an OD effort are not discreet but overlap and blend
together. These phases are guides for consultation and should not be considered as
discreet rigid steps to follow or as the only phase of consultation in OD (Burke, 1987).

Organisation Development Interventions

As noted earlier, interventions are formulated in order to address and solve the
problems experienced in the organisation. The aim of these change interventions is
to alter key organisational target variables that impact on organisational members
and their work behaviours, resulting in changes in organisational outcomes (Porras &
Silvers, 1991).

Outcomes representing different aspects of productivity can include output,

withdrawal and distribution (Guzzo et al, 1985). Output measures include quality and
quantity of production and of cost effectiveness. Withdrawal measures typically
consist of turnover and absenteeism, while measures of distribution include
accidents, strikes and other costly disturbances (Guzzo et al, 1985).

The interventions can be categorised in terms of human-processes, technostructural

approaches, and multifaceted designs (Neuman, Edwards & Raju, 1989). The
effectiveness of specific interventions and classes of interventions is of much concern
in OD, as its validity and relevance is dependent on how effectively OD is able to
solve organisational problems.

Thus, a review of specific interventions as well classes of interventions will follow in

order to access the effectiveness of OD.

Human-Processes Interventions

The human-process interventions attempt to enhance organisational performance

and effectiveness by improving human functioning and processes, and altering
attitudes and perceptions that retard organisational effectiveness (Neuman et al,
1989). These variables are of immediate concern in South Africa as organisations
move towards functioning in a more integrated, but culturally diverse social
environment, which often calls for a redressing of attitudes and perceptions in order
to enhance employee effectiveness. Some of these human-process intervention
techniques may include team building, laboratory training, participation in decision
making, management by objectives and survey feedback.

Team Building:

The general purpose of this human process intervention is to help the work team
become more effective in attaining its task orientated goals (Drory, 1986). The
argument behind team building is that effective work procedures cannot be
maintained and implemented successfully unless the emotional needs of the team
are met and an acceptable level of inter-personal trust, support and cooperation
exists in the group (Drory, 1986). In team building, this objective may be achieved
through open group discussions to clarify goals, and through role expectations and
other activities such as circles, briefing groups, role playing and counselling to
facilitate communication (Patten, 1981).

A meta-analysis conducted by Neuman et al (1989) found that when examining the

effectiveness of single interventions, team building was the most effective OD
intervention for modifying satisfaction and other attitudes, followed closely by
laboratory training. This may be, because, these techniques are the most structured
of all the human processes designs, therefore serving to help focus participants on
translating experiences to the work environment. The greater success of team
building and laboratory training may also be explained due to the fact that they
provide employees with the most direct experiences of improvement and self
development (Nicholas, 1982).

Porras & Silvers (1991) have also reported that on examining the effectiveness of
team building on performance, it appears that narrowly focused team building
interventions could have a positive effect on performance, as it was found that the
impact of individual training in problem solving on group performance revealed
significantly positive effects. Thus team building has been found to be an effective
intervention in an OD programme.

Laboratory Training:

This process serves to facilitate group interaction and participation, and the
observation of group dynamics (Dory, 1986). Through this intervention, employees
are expected to develop new insights into themselves, others and into group
dynamics. It serves to identify problems facing the group or its members, to find
solutions to these problems and to plan relevant implementation procedures (Drory,
1986).

Although there are no clear cut empirical studies documenting laboratory training
effectiveness, research to determine the effect of laboratory training performance has
been done (Harvey & Brown, 1988). Some evidence has suggested that laboratory
training can provide increased self-insight and awareness of impact upon others and
that observable behaviour changes can occur on the job (Harvey & Brown, 1988). As
yet though, very little hard evidence exists relating laboratory training to increased
productivity and organisation results (Harvey & Brown, 1988). However, laboratory
training has been found to be an effective attitude modifying intervention (Nicholas,
1982).

Participation in Decision Making and Quality Circles:

This procedure allows employees on all levels to contribute and participate in solving
organisational problems. The areas of participation may include employee
compensation, appraisal systems and plan development (Neuman et al, 1989).
Quality circle is also included in this area of intervention as it attempts to increase
worker involvement in production issues by encouraging participation in quality circle
meetings (Neuman et al, 1989). Quality circles may have valuable contribution to
make in improving the effectiveness of organisations, but the majority of results on
quality circles have come from anecdotal reports and the lack of any published
scientific investigation makes it very difficult to draw any conclusions as to its
effectiveness (Harvey & Brown, 1988).

Management by Objectives (MBO):

In this process managers and subordinates jointly identify common organisational

goals and define each individuals' major area of responsibility in terms of the results
expected of him or her (Neuman et al, 1989). This approach emphasizes participation
and power sharing in order to satisfy individual as well as organisational needs
(Drory, 1986).

Although the trend on MBO findings is generally favourable, the research on the
effectiveness on MBO is not conclusive (Harvey & Brown, 1988). Some studies have
found that goal setting results in improved performance and increased motivation, as
those working under MBO programmes are more likely to take specific actions to
improve performance than those who continue with the traditional performance
appraisal approach (Harvey & Brown, 1988). Evidence also indicates that MBO
seems to be associated with positive attitudes towards the work environment, as it
allows for subordinates to participate in decision making which can lead to improving
performance and job satisfaction (Harvey & Brown, 1988).

Survey Feedback:

It is used to identify organisational problems through data gathering and feedback

(Drory, 1986). Survey Feedback makes use of questionnaires and interviews
designed for the measurement of attitudes towards important organisational
variables. Its main purpose is to locate meaningful problems and to increase the
awareness of the need to change. This technique can be used in the final process of
organisational development interventions by evaluating the effects of the actions
taken through data gathering, rediagnosis and feedback (Drory, 1986).

Results on survey feedback methods have indicated positive changes in employee

attitudes and perceptions (Harvey & Brown, 1988). It has also been observed to be a
powerful process for creating and reporting changes within an organisation.
Research has found that when survey feedback interventions are the only type of
intervention being used, then success is usually short range, but when combined with
other interventions, the effects are usually more substantial and long range (Harvey &
Brown, 1988). "Although relatively little empirical evidence has been generated, the
results seem to indicate that survey feedback can be an effective intervention
approach to organisation development" (Harvey & Brown, 1988 p69).

Human processes interventions like team building, laboratory training management

by objectives and survey feedback has been found to have a more beneficial effect in
modifying attitudes and satisfaction which may impact on productivity (Neuman et al,
1989). The reason for this is that because human process interventions aim to affect
changes in organisations through employees, and given that satisfaction and other
attitudes are internal states, it would seem that they would be more directly
influenced by interventions seeking to modify the employee (Neuman et al, 1989).

Technostructural Interventions