An Introduction to Organizational

Development

Introduction
This module will give an overview of what organizational development is and how
it is differ from other related subjects such as change management and organization
change. It will also discuss the different theories of planned change.

Student Learning Objectives (SLO)

• Give the meaning of organizational development
• Discuss the growth and relevance of organizational development
• Explain the different theories of planned change

Content

Organizational Development Defined

Worley and Feyerherm suggested that for a process to be called organization

development, (1) it must focus on or result in the change of some aspect of the
organizational system; (2) there must be learning or the transfer of knowledge or skill
to the client system; and (3) there must be evidence of improvement in or an intention
to improve the effectiveness of the client system.

Organization development is a system-wide application and transfer of

behavioral science knowledge to the planned development, improvement, and
reinforcement of the strategies, structures, and processes that lead to organization
effectiveness. This definition emphasizes several features that differentiate OD from
other approaches to organizational change and improvement, such as management
consulting, innovation, project management, and operations management. The
definition also helps to distinguish OD from two related subjects, change management
and organization change.

Organization development can be distinguished from change management

and organizational change. OD and change management both address the effective
implementation of planned change. They are both concerned with the sequence of

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activities, processes, and leadership issues that produce organization improvements.
They differ, however, in their underlying value orientation. OD’s behavioral science
foundation supports values of human potential, participation, and development in
addition to performance and competitive advantage. Change management focuses

more narrowly on values of cost, quality, and schedule. As a result, OD’s distinguishing
feature is its concern with the transfer of knowledge and skill so that the system is more
able to manage change in the future. Change management does not necessarily
require the transfer of these skills. In short, all OD involves change management, but
change management may not involve OD.

Similarly, organizational change is a broader concept than OD. As discussed

above, organization development can be applied to managing organizational change.
However, it is primarily concerned with managing change in such a way that knowl edge
and skills are transferred to build the organization’s capability to achieve goals and
solve problems. It is intended to change the organization in a particular direction, toward
improved problem solving, responsiveness, quality of work life, and effectiveness.
Organizational change, in contrast, is more broadly focused and can apply to any kind

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of change, including technical and managerial innovations, organization decline, or the
evolution of a system over time. These changes may or may not be directed at making
the organization more developed in the sense implied by OD.

THE GROWTH AND RELEVANCE OF ORGANIZATION DEVELOPMENT

Three major trends are shaping change in organizations: globalization,

information technology, and managerial innovation.

First, globalization is changing the markets and environments in which

organizations operate as well as the way they function. New governments, new
leadership, new markets, and new countries are emerging and creating a new global
economy with both opportunities and threats. The toppling of the Berlin Wall symbolized
and energized the reunification of Germany; the European Union created a cohesive
economic block that alters the face of global markets; entrepreneurs appeared in
Russia, the Balkans, and Siberia to transform the former Soviet Union; terrorism has
reached into every corner of economic and social life; and China is emerging as an
open market and global economic influence. The rapid spread of Severe Acute
Respiratory Syndrome (SARS) and its economic impact clearly demonstrated the
interconnectedness among the social environment, organizations, and the global
economy.

Second, information technology is redefining the traditional business model by

changing how work is performed, how knowledge is used, and how the cost of doing
business is calculated. The way an organization collects, stores, manipulates, uses,
and transmits information can lower costs or increase the value and quality of products
and services. Information technology, for example, is at the heart of emerging e-
commerce strategies and organizations. Amazon.com, Yahoo!, and eBay are among
the survivors of a busted dot-com bubble, Google has emerged as a major competitor
to Microsoft, and the amount of business being conducted on the Internet is projected
to grow at double-digit rates. Moreover, the underlying rate of innovation is not expected
to decline. Electronic data interchange—a state-of-the-art technology application a few
years ago—is now considered routine business practice. The ability to move
information easily and inexpensively throughout and among organizations has fueled
the downsizing, delayering, and restructuring of firms. The Internet has enabled a new
form of work known as telecommuting; organization members from Captial One and
Cigna can work from their homes without ever going to the office. Finally, information
technology is changing how knowledge is used. Information that is widely shared
reduces the concentration of power at the top of the organization.

Third, managerial innovation has responded to the globalization and information

technology trends and has accelerated their impact on organizations. New
organizational forms, such as networks, strategic alliances, and virtual corporations,
provide organizations with new ways of thinking about how to manufacture goods and
deliver services. The strategic alliance, for example, has emerged as one of the

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indispensable tools in strategy implementation. No single organization, not even IBM,
Mitsubishi, or General Electric, can control the environmental and market uncertainty it
faces. Sun Microsystems’ network is so complex that some products it sells are never
touched by a Sun employee. In addition, change innovations, such as downsizing or
reengineering, have radically reduced the size of organizations and increased their
flexibility; new large-group interventions, such as the search conference and open
space, have increased the speed with which organizational change can take place; and
organization learning interventions have acknowledged and leveraged knowledge as a
critical organizational resource. Managers, OD practitioners, and researchers argue
that these forces not only are powerful in their own right but are interrelated. Their
interaction makes for a highly uncertain and chaotic environment for all kinds of
organizations, including manufacturing and service firms and those in the public and
private sectors. There is no question that these forces are profoundly affecting
organizations.

The Nature of Planned Change

Theories of planned change describe the activities necessary to modify

strategies, structures, and processes to increase an organization’s effectiveness.
Lewin’s change model, the action research model, and the positive model offer different
views of the phases through which planned change occurs in organizations.

Lewin’s change model views planned change as a three-step process of

unfreezing, moving, and refreezing. It provides a general description of the process of
planned change.
1. Unfreezing. This step usually involves reducing those forces maintaining the
organization’s behavior at its present level. Unfreezing is sometimes accomplished
through a process of “psychological disconfirmation.” By introducing information that
shows discrepancies between behaviors desired by organization members and those
behaviors currently exhibited, members can be motivated to engage in change
activities.
2. Moving. This step shifts the behavior of the organization, department, or
individual to a new level. It involves intervening in the system to develop new behaviors,
values, and attitudes through changes in organizational structures and processes.
3. Refreezing. This step stabilizes the organization at a new state of equilibrium.
It is frequently accomplished through the use of supporting mechanisms that reinforce
the new organizational state, such as organizational culture, rewards, and structures.

The action research model focuses on planned change as a cyclical process

involving joint activities between organization members and OD practitioners. It
involves multiple steps that overlap and interact in practice: problem identification,
consultation with a behavioral science expert, data gathering and preliminary diagnosis,
feedback to a key client or group, joint diagnosis of the problem, joint action planning,
action, and data gathering after action. The action research model places heavy
emphasis on data gathering and diagnosis prior to action planning and implementation,
and on assessment of results after action is taken. In addition, change strategies often

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are modified on the basis of continued diagnosis, and termination of one OD program
may lead to further work in other areas of the firm.

The positive model is oriented to what the organization is doing right. It seeks
to build on positive opportunities that can lead to extraordinary performance. The
positive model has been applied to planned change primarily through a process call ed
appreciative inquiry (AI). As a “reformist and rebellious” form of social
constructionism, AI explicitly infuses a positive value orientation into analyzing and
changing organizations.

Planned change theories can be integrated into a general model. This model is
composed of four sets of activities—entering and contracting, diagnosing, planning and
implementing, and evaluating and institutionalizing—can be used to describe how
change is accomplished in organizations. These four sets of activities also describe the
general structure of the chapters in this book. The general model has broad applicability
to planned change. It identifies the steps an organization typically moves through to
implement change and specifies the OD activities needed to effect change. Although
the planned change models describe general stages of how the OD process unfolds,
there are different types of change depending on the situation. Planned change efforts
can vary in terms of the magnitude of the change, the degree to which the client system
is organized, and whether the setting is domestic or international. When situations differ
on those dimensions, planned change can vary greatly. Critics of OD have pointed out
several problems with the way planned change has been conceptualized and practiced,
and specific areas where planned change can be improved.

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OD Practitioner

The term organization development practitioner refers to at least three sets of

people. The most obvious group of OD practitioners are those people specializing in
OD as a profession. They may be internal or external consultants who offer
professional services to organizations, including their top managers, functional
department heads, and staff groups. OD professionals traditionally have shared a
common set of humanistic values promoting open communications, employee
involvement, and personal growth and development. They tend to have common
training, skills, and experience in the social processes of organizations (for example,
group dynamics, decision making, and communications).

The second set of people to whom the term OD practitioner applies are those
specializing in fields related to OD, such as reward systems, organization design,
total quality, information technology, and business strategy.

The third set of people to whom the term applies are the increasing number of
managers and administrators who have gained competence in OD and who apply
it to their own work areas.

Assessment and Evaluation

References

Cummings, T. & Worley, C. (2009). Organization Development & Change (9 th ed.).

Cengage Learning

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