NOTES ORGANIZATIONAL DIAGNOSIS AND DEVELOPMENT

Organizational development (OD) is a planned and systematic approach to improving an

organization's effectiveness and overall health. It's a field of practice that draws from
various disciplines, including behavioral science, psychology, sociology, and management.
The primary goal of OD is to create a more adaptive, responsive, and productive
organization that can navigate change and achieve its objectives

Function of organization
The functions of an organization refer to the distinct activities that it carries out to achieve
its objectives or mission. These functions are often interrelated, with each playing a unique
role in ensuring the smooth operation and success of the organization. Here's an overview
of the primary functions:
1. Strategic Planning: This involves setting the organization's long-term vision and
mission, defining objectives, and developing strategies to achieve these objectives. It
also entails foreseeing potential challenges and preparing for them.
2. Operations: This function ensures that the day-to-day activities of the organization
run smoothly. It involves managing resources, processes, equipment, and
technologies to produce goods or deliver services efficiently.
3. Human Resource Management: This function manages all aspects related to the
organization's employees, from recruitment, training, and development to
compensation, benefits, and conflict resolution.
4. Financial Management: This involves managing the organization's financial resources,
including budgeting, forecasting, accounting, and financial reporting.
5. Marketing and Sales: This function aims to promote and sell the organization's
products or services. It involves market research, product development, promotions,
advertising, and sales strategies.
6. Customer Support and Service: This ensures that customers have a positive
experience with the organization, handling inquiries, and complaints, and providing
after-sales support.
7. Administrative Functions: This encompasses tasks like clerical work, maintenance of
physical infrastructure, and other routine activities that support the organization's
core functions.

Causes Of Organizational change

Organizational change can be spurred by numerous internal and external factors.
Understanding the root causes of these changes can help organizations navigate and adapt
more effectively. Here's an elaboration on the causes you've listed:
 Government Policies: Changes in government regulations, tax laws, labor laws, and
industry-specific regulations can compel organizations to adapt. These policies might
require companies to alter their practices, reporting, or compliance measures.
1. Regulations and Compliance: Governments can introduce new regulations or laws
which organizations must adhere to. This can affect various aspects, from operations
and finance to HR practices.
2. Taxation Policies: Changes in taxation can affect profitability and business strategies.
3. Trade Policies: Tariffs, import/export regulations, and trade agreements can impact
international operations and supply chains.
 Competition: Intense competition within an industry can force organizations to
change to remain competitive. To stay ahead, businesses often need to innovate,
improve products or services, or cut costs.
1. New Entrants: New competitors entering the market can disrupt existing market
dynamics and force organizations to adapt.
2. Global Competition: With globalization, companies now compete on an international
scale, which can necessitate changes in strategy or operations.
3. Innovative Business Models: Rivals might introduce novel business models or
strategies that challenge the status quo.
 Technology: Rapid technological advancements can disrupt industries and necessitate
change. Organizations that fail to adopt new technologies risk falling behind. On the
other hand, adopting the latest tech can lead to process improvements and increased
efficiency.
1. Digital Transformation: The shift towards digital platforms, tools, and operations can
lead to significant organizational change.
2. Automation and AI: As tasks get automated or augmented by AI, roles and structures
within an organization might evolve.
3. Communication Technologies: Advances in communication tools can change the way
teams collaborate and work.
 Change in Customer Requirements: As customer preferences evolve, organizations
must adapt to meet new demands. This often involves altering product features,
service delivery methods, or marketing strategies to align with what customers want.
1. Shifting Preferences: As societal values and trends evolve, customer preferences can
change, requiring companies to adapt their products or services.
2. Demand for Innovation: Customers may demand newer, better, or more sustainable
products, pushing companies to innovate.
 Change in Managerial Personnel: New leadership, whether due to promotions,
hirings, or retirements, can bring about shifts in the organization's strategies, culture,
and priorities. A change in leadership often leads to a different vision for the
organization.
1. New Leadership Vision: New leaders might bring different perspectives, strategies, or
priorities.
 2. Management Reforms: Sometimes, a shake-up in management is required to address
inefficiencies or to revitalize an organization.
 Deficiency in Existing Organization: If an organization identifies inefficiencies,
performance issues, or weaknesses in its current structure, it may initiate change to
address these deficiencies. This could involve restructuring, process improvements,
or skill development.
1. Operational Inefficiencies: If the current structure or processes are inefficient, a
change might be needed to enhance productivity.
2. Misalignment with Goals: If the organization's structure or strategy is misaligned with
its goals, a reorganization might be required.
3. Internal Conflicts: Inter-departmental conflicts or misalignment of visions can
necessitate changes to restore harmony.

Evolution Organization development

1. Emergence and Early Development (1940s-1950s): The origins of OD can be traced
back to the 1940s and 1950s. This period marked the emergence of social scientists
and psychologists who started applying their expertise to the field of management
and organizations. Early pioneers like Kurt Lewin and Ronald Lippitt introduced
concepts related to group dynamics and change in organizations.
2. Sensitivity Training and T-Groups (1950s-1960s): During the 1950s and 1960s, a
significant development was the introduction of sensitivity training and T-groups.
These experiential learning methods aimed at improving interpersonal skills and
group dynamics. This period was characterized by an emphasis on humanistic
psychology and the importance of human relations in organizations.
3. Action Research and Survey Feedback (1960s-1970s): The 1960s saw the emergence
of action research as a prominent OD method. Action research involves conducting
systematic investigations within organizations to identify areas for improvement and
implementing changes based on research findings. Around the same time, survey
feedback gained popularity as a means of collecting data to facilitate organizational
change.
4. Behavioral Science and Organizational Development (1970s-1980s): In the 1970s and
1980s, the field of OD became more established. Practitioners began applying
behavioral science concepts to address organizational issues. This period also saw the
development of diagnostic models and interventions aimed at improving
organizational effectiveness and problem-solving.
5. Quality Movement and Total Quality Management (TQM) (1980s-1990s): The quality
movement, with approaches like Total Quality Management (TQM), became a
significant focus in the 1980s and 1990s. Organizations began to adopt TQM
principles to improve quality and performance, and OD played a role in facilitating
these changes.
 6. Team Building and Interpersonal Interventions (1980s-1990s): Team-building
interventions, including team development activities and conflict resolution methods,
became popular as organizations recognized the importance of effective teamwork in
achieving their goals. The 1980s and 1990s saw a surge in team-building programs
and activities.
7. Techno-Structural Interventions (1990s-Present): As technology and globalization
transformed the business landscape, OD adapted to address new challenges. Techno-
structural interventions, such as business process reengineering and the adoption of
digital technology, have become important components of OD.
8. Diversity and Inclusion (2000s-Present): In more recent years, there has been a
growing emphasis on diversity and inclusion as part of OD. Organizations have
recognized the value of diverse workforces and have sought to create inclusive
environments through cultural competency training, bias reduction, and equity
initiatives.
9. Agile and Change Management (2000s-Present): The concept of agility in
organizations and the need for effective change management has gained prominence.
OD professionals are increasingly involved in helping organizations navigate change,
including technological advancements and shifts in work culture.

Kurt Lewin's
Kurt Lewin's three-step model, often referred to as the "unfreezing, changing, and
refreezing" model, is a fundamental concept in the field of organizational change and
change management. Lewin was a psychologist and a pioneer in the study of group
dynamics and organizational behavior. His model is widely used to understand and manage
change within organizations. Here are the three steps in the model:
Unfreezing:
In this first stage, the status quo is disrupted to prepare the organization for change. This
involves breaking down the existing mindset, attitudes, and behaviors that are resistant to
change. Unfreezing can be achieved through various means, such as creating awareness of
the need for change, gathering relevant data and information, and reducing complacency.
Changing:
The second step involves implementing the actual changes that are necessary for the
organization's improvement. During this phase, new processes, structures, or behaviors are
introduced. It is essential to communicate the changes clearly, provide training and support
to employees, and actively involve them in the change process. Lewin believed that people
are more likely to accept change when they are part of the decision-making process and
understand the reasons behind it.
Refreezing:
After the changes have been successfully implemented, the organization enters the
refreezing stage. In this stage, the new behaviors, processes, or structures are stabilized and
integrated into the organization's culture. The aim is to make the new way of doing things
the new norm. This stage helps prevent employees from reverting to old habits and ensures
that the changes become a permanent part of the organization.

McGregor Change
It seems like you're looking for information related to Douglas McGregor's theory of
management and its relationship to change. Douglas McGregor was a management theorist
known for his Theory X and Theory Y, which are two contrasting views of how managers
perceive and interact with their employees. These theories can be related to how change is
approached in an organization.
Theory X:
Theory X is based on a pessimistic view of human nature. Managers who adhere to Theory X
tend to believe that employees are inherently lazy, dislike work, and need to be closely
controlled and motivated through strict supervision, rules, and punishment.
In the context of change, Theory X managers may approach it with skepticism and
resistance, believing that employees will resist change and need to be coerced into
accepting new ways of doing things.
Theory Y:
Theory Y, in contrast, is based on a more optimistic view of human nature. Managers
following Theory Y assume that employees are intrinsically motivated, creative, and capable
of self-direction. They believe that employees can be trusted and should be given the
autonomy to make decisions.
When it comes to change, Theory Y managers are more likely to involve employees in the
change process, seeking their input and commitment. They believe that employees can
adapt to change and even welcome it if it is introduced in a participative and engaging
manner.
So, the McGregor Theory X and Theory Y framework can provide insights into how
managers approach change within their organizations. Theory Y management is generally
more conducive to facilitating and managing change, as it aligns with principles of employee
involvement, empowerment, and motivation. In contrast, Theory X management may
encounter more resistance and challenges when implementing change initiatives, as it
assumes a more controlling and coercive approach. Organizations often aim to shift their
management style towards Theory Y principles to create a more adaptive and change-
friendly environment.
Need for organizational development
Organizational diagnosis and development are important processes for organizations to
identify issues, make informed decisions, and implement changes that enhance their
effectiveness and overall health. Here are some reasons why organization diagnosis and
development are needed:
1. Identifying Problem Areas: Organization diagnosis allows organizations to
systematically identify problems and challenges, whether they are related to
performance, processes, culture, or other aspects. By pinpointing these issues,
organizations can develop targeted solutions.
2. Understanding Root Causes: Diagnosis goes beyond identifying symptoms and helps
uncover the root causes of problems. It allows organizations to understand the
underlying factors contributing to their issues.
3. Data-Driven Decision-Making: Organization diagnosis relies on data and evidence.
This approach ensures that decisions are based on facts and analysis rather than
assumptions or opinions, which can lead to more effective solutions.
4. Prioritizing Issues: Not all problems are of equal importance or urgency. Diagnosis
helps organizations prioritize the most critical issues that require immediate
attention, making better use of resources.
5. Aligning with Goals: Diagnosis helps organizations ensure that their strategies and
operations are aligned with their goals and objectives. It ensures that the
organization is moving in the right direction.
6. Improving Performance: Once problems are identified and analyzed, the
development phase focuses on implementing solutions to improve performance. This
could include process optimization, skill development, and performance
management.
7. Cultural Transformation: Diagnosis can reveal cultural issues that impact the
organization's health. Development efforts can target cultural transformation to align
with evolving values and goals.
8. Change Management: Organizations often need to adapt to changes in the external
environment. Diagnosis and development help manage these changes effectively,
reducing resistance and ensuring smooth transitions.
9. Enhancing Employee Engagement: Diagnosis can uncover issues related to employee
satisfaction and engagement. Development efforts can create a more supportive and
engaging work environment, which, in turn, boosts productivity and retention.
10.Innovation and Adaptation: In a fast-changing world, organizations need to
continuously innovate and adapt. Diagnosis helps organizations identify areas where
they can become more innovative and adaptive.
11.Strategic Planning: Organization diagnosis is often a key component of the strategic
planning process. It provides the insights and data needed to make informed
decisions about the organization's future direction.
 12.Risk Management: Identifying potential risks and vulnerabilities through diagnosis
allows organizations to put in place measures to mitigate those risks, ensuring the
organization's stability and sustainability.
13.Learning and Continuous Improvement: The diagnosis and development process is a
learning opportunity for the organization. It encourages a culture of continuous
improvement and learning from past experiences.

Understanding personal change within the context of organizational development involves

recognizing how individual change processes intersect with and contribute to broader
organizational goals. In organizational development, personal change refers to changes in
individual behavior, skills, attitudes, and mindset that contribute to the organization's
overall transformation and success

Components of personal change

1. Self-awareness: Self-awareness is the foundation of personal change. It involves
having a clear understanding of one's own thoughts, feelings, behaviors, strengths,
weaknesses, and values. Being self-aware enables individuals to recognize the need
for change and understand how it aligns with their personal goals and values.
2. Self-Analysis: Self-analysis goes beyond self-awareness and involves a deeper
examination of one's beliefs, motivations, and the factors that influence one's choices
and actions. It may include reflecting on past experiences and assessing how they
have shaped one's current mindset and behavior.
3. Self-Efficacy: Self-efficacy is the belief in one's ability to successfully accomplish tasks
and achieve goals. High self-efficacy is associated with greater motivation,
persistence, and a proactive approach to change. It plays a crucial role in personal
change because individuals with strong self-efficacy are more likely to take action and
persist in the face of challenges.
4. Self-esteem: Self-esteem relates to one's self-worth and self-acceptance. Healthy self-
esteem is essential for personal change because individuals who feel confident and
positive about themselves are more likely to take risks, set ambitious goals, and
embrace change as a means of self-improvement. Conversely, low self-esteem can
hinder personal change by generating self-doubt and fear of failure.

Force Field Analysis

Force Field Analysis is a framework and decision-making tool developed by psychologist Kurt
Lewin. It is widely used in change management and organizational development to analyze
and visualize the forces for and against a proposed change. Force Field Analysis helps
organizations and individuals assess the driving and restraining forces related to a specific
change initiative, allowing for a better understanding of the change's feasibility and
potential obstacles.
Here's how Force Field Analysis works:
1. Identify the Change Objective: Start by defining the specific change you want to
implement. This could be a new process, policy, project, or any other change
initiative.
2. List Driving Forces: Driving forces are the factors or elements that support or promote
the change. These are the "pros" of the change initiative. Identify and list all the
factors and stakeholders that are in favor of the change.
3. List Restraining Forces: Restraining forces are the factors or elements that oppose or
resist the change. These are the "cons" of the change initiative. Identify and list all the
factors and stakeholders that are against or hesitant about the change.
4. Assign Weights: To make the analysis more meaningful, you can assign weights to
each driving and restraining force. This indicates the relative importance or influence
of each force. For example, you can use a scale from 1 (least influential) to 5 (most
influential).
5. Visualize the Analysis: Create a Force Field Analysis diagram, which is typically a two-
column chart. In one column, list the driving forces, along with their assigned
weights. In the other column, list the restraining forces and their weights. You can use
symbols like arrows or plus/minus signs to indicate the direction and strength of each
force.
6. Calculate the Net Force: Subtract the total weight of the restraining forces from the
total weight of the driving forces. The result is the "net force," which indicates the
overall strength and direction of the forces at play. A positive net force suggests that
the driving forces outweigh the restraining forces, making the change more feasible.
A negative net force suggests that the restraining forces are stronger, making the
change more challenging.
7. Analyze the Results: Depending on the net force, you can draw conclusions about the
change initiative's feasibility. If the net force is positive, it's more likely that the
change will succeed. If it's negative, you may need to address or mitigate the
restraining forces to improve the change's chances of success.
8. Develop Action Plans: Based on the analysis, you can create action plans to
strengthen the driving forces and reduce the impact of the restraining forces. This
might involve communication strategies, training, incentives, or other interventions
to support the change.

Intervention strategies
In organizational development (OD), intervention strategies are planned actions and
approaches designed to bring about positive change within an organization. These
strategies are implemented to enhance the organization's effectiveness, solve problems,
and achieve specific objectives. Organizational development intervention strategies can vary
based on the organization's unique needs and goals. Here are some common intervention
strategies used in organizational development:
1. Team Building: Team-building interventions aim to improve teamwork,
communication, and collaboration within teams. Activities such as team-building
workshops and exercises can help foster stronger working relationships.
2. Leadership Development: Leadership development interventions focus on enhancing
leadership skills at various levels of the organization. Leadership programs, coaching,
and mentoring can help develop effective leaders.
3. Change Management: Change management interventions assist in planning and
implementing major organizational changes, such as mergers, restructurings, or new
processes. These interventions include communication plans, training, and support
for employees and leaders during transitions.
4. Culture Change: Culture change interventions target the organization's culture,
values, and norms. These may involve defining and reinforcing desired cultural
elements, promoting inclusivity, and aligning the culture with the organization's
strategic goals.
5. Process Improvement: Process improvement interventions focus on optimizing and
streamlining business processes. Techniques like Lean Six Sigma and Total Quality
Management (TQM) help identify and eliminate inefficiencies.
6. Training and Development: Training and development interventions aim to enhance
employee skills and knowledge. They encompass technical training, soft skills
development, and leadership programs.
7. Conflict Resolution: Conflict resolution interventions help address conflicts within the
organization, whether they are interpersonal, departmental, or leadership-related.
Mediation, conflict coaching, and conflict management training can be utilized.
8. Feedback and Surveys: Feedback and survey interventions involve collecting and
analyzing data from employees, customers, or stakeholders to gain insights into
organizational strengths and areas for improvement. The results inform decision-
making and change initiatives.
9. Diversity and Inclusion Initiatives: These interventions focus on creating a diverse and
inclusive work environment. They may include diversity training, recruitment
practices, and support networks for underrepresented groups.
10.Job Redesign: Job redesign interventions aim to improve job satisfaction and
productivity by altering job roles, responsibilities, and tasks to better match employee
skills and interests.
11.Organizational Communication: Communication interventions address
communication gaps and improve information flow within the organization. These
interventions often involve creating more effective communication channels,
feedback mechanisms, and transparent communication strategies.
 12.Innovation and Creativity: Innovation interventions aim to foster creativity and idea
generation. These can include innovation labs, brainstorming sessions, and incentives
for innovative thinking.
13.Employee Engagement: Employee engagement interventions aim to increase
employee satisfaction, motivation, and commitment. They often involve measuring
and addressing engagement factors through surveys and feedback mechanisms.
14.Mentoring and Coaching: Mentoring and coaching interventions provide employees
with guidance, support, and skills development through one-on-one relationships
with experienced mentors or coaches.
15.Strategic Planning: Strategic planning interventions help organizations define their
long-term goals and strategies. They include the development of mission and vision
statements, setting objectives, and creating action plans.
16.Capacity Building: Capacity-building interventions focus on strengthening the abilities
and resources of organizations, communities, or individuals to achieve their goals
more effectively.

Organizational Culture and Organizational Change

Organizational Culture:
Definition: Organizational culture refers to the shared values, beliefs, attitudes, behaviors,
and norms that shape the way individuals and groups interact within an organization. It is
the collective "personality" of the organization and influences how employees perceive and
respond to various aspects of their work environment.
Organizational Change:
Definition: Organizational change refers to the planned efforts and strategies an
organization undertakes to modify its structure, processes, policies, practices, or culture in
response to internal or external pressures. Change can be driven by various factors,
including technological advancements, market shifts, customer demands, competitive
pressures, and internal inefficiencies.

formal & informal components of organizational culture

Formal Components of Organizational Culture:
1. Mission Statement and Vision: The formal mission statement and vision of an
organization articulate its core values, purpose, and long-term objectives. These
documents are typically developed and approved by organizational leadership.
2. Policies and Procedures: Formal policies and procedures provide a structured
framework for how tasks and activities should be carried out within the organization.
They often reflect the organization's values, expectations, and compliance
requirements.
 3. Rules and Regulations: Organizations may have specific rules and regulations that
govern employee behavior and conduct. These rules can be codified in employee
handbooks or contracts.
4. Organizational Structure: The formal structure of an organization, including reporting
hierarchies, departmental divisions, and job roles, is a significant component of its
culture. The structure affects communication patterns and the distribution of power
and authority.
5. Official Communications: Formal communications, such as memos, official emails,
and announcements, are part of the formal culture. These communications convey
important information, organizational updates, and changes in policies or procedures.
6. Rituals and Ceremonies: Certain formal rituals and ceremonies, such as awards
banquets, annual meetings, or milestone celebrations, are designed to reinforce the
organization's values and achievements.
7. Dress Code: Formal dress codes, whether business casual, professional attire, or
uniform requirements, are part of the formal culture and reflect the organization's
professional standards.
8. Training Programs: Formal training programs, including onboarding, technical
training, and leadership development, convey the organization's commitment to skill
development and employee growth.
Informal Components of Organizational Culture:
Employee Behavior and Norms: The informal culture is primarily shaped by the day-to-day
behavior of employees and the unwritten norms that govern how people interact,
collaborate, and communicate within the organization.
1. Values and Beliefs: Informal culture often consists of shared values and beliefs that
guide decision-making and actions. These values may or may not align perfectly with
the organization's formal values.
2. Language and Jargon: Informal culture includes the use of specific language, phrases,
and jargon that are unique to the organization. This linguistic shorthand fosters a
sense of belonging among employees.
3. Social Interactions: The way employees interact socially, both within and outside the
workplace, contributes to the informal culture. Social gatherings, friendships, and
informal mentorships are examples.
4. Stories and Anecdotes: Informal culture is enriched through stories and anecdotes
that capture the history, legends, and shared experiences of the organization. These
stories often exemplify cultural values.
5. Traditions and Habits: Informal traditions and habits, whether they involve casual
dress days, potluck lunches, or other practices, create a sense of community and
shared identity.
6. Leadership Style: The leadership style of top executives and managers influences the
informal culture. Leaders set the tone for the organization and impact the behaviors
and attitudes of employees.
7. Innovation and Creativity: Informal culture can encourage or inhibit innovation and
creativity. In organizations where experimentation and risk-taking are valued,
employees are more likely to embrace creative solutions.

Designing a strategy for cultural change.

Designing a strategy for cultural change in an organization is a complex task that
requires careful planning, patience, and dedication. Cultural change often means
altering deeply ingrained behaviors, values, and beliefs, which can be resistant to
transformation. Here’s a step-by-step guide to designing a strategy for cultural
change:

1. Define the Desired Culture: Before you can change the culture, you need to clearly
define what the new culture should look like. This could be based on organizational
goals, market changes, or other strategic necessities.
2. Assess the Current Culture: Use surveys, interviews, and observations to understand
the current organizational culture. Identify which aspects support the desired culture
and which do not.
3. Identify Key Drivers of Culture: Understand what drives your current culture. This
could be leadership behavior, organizational systems, or employee beliefs and
behaviors.
4. Engage Leadership: Cultural change should start at the top. The leadership team
should be role models for the desired behavior and values. Their buy-in is essential
for the change initiative.
5. Develop a Clear Communication Plan: Ensure that every employee understands the
reasons for the change, the benefits of the new culture, and their role in achieving it.
Regular updates and transparency can prevent rumors and resistance.
6. Align Organizational Systems: Review and adjust HR processes like recruitment,
performance management, and reward systems to align with the desired culture. For
instance, if collaboration is a new cultural value, then reward systems should
incentivize teamwork.
7. Provide Training and Development: Equip employees with the skills and behaviors
necessary for the new culture. This could involve communication training, leadership
development, or other skills workshops.
8. Engage Cultural Ambassadors: Identify and engage champions of the new culture.
These should be influential individuals who can persuade and inspire their peers.
9. Celebrate Small Wins: Recognize and reward behaviors that align with the new
culture. This can reinforce the desired behaviors and demonstrate the organization's
commitment to change.
10.Gather Feedback: Regularly solicit feedback on the change process. This can help in
identifying areas of resistance and developing strategies to address them.