ORGANIZATION

DEVELOPMENT
The New Approach to change

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 What is OD
A series of planned processes by which human resources are identified,
utilized, and developed in ways that strengthen organizational effectiveness
by increasing problem-solving capabilities and planning

OD IMPLIES:
• planning • identification and • strengthening of
use of human organizational
resources effectiveness

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 How does OD affect top
management?
• It is long-range in perspective
• Requests support from the top
managers, because they control
resources and rewards
• Expands their ideas, beliefs, and
behavior

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 How does OD affect
employees?
• diagnosing problems
• considering solutions
• selecting a solution
• identifying change objectives
• implementing planned change
• evaluating results

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 OD brings
MANAGERS
and
EMPLOYEES together

holding them all responsible for the success

and failure of a change effort.

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 Key terms in OD
CHANGE = a departure from the status quo
a) Alpha change – constant progress
b) Beta change – variable progress
c) Gamma change – variable progress combined with a radical change =
transformational change

1. CHANGE AGENT = the person responsible for beginning and maintaining a

change effort
2. CLIENT = organization, group, individual whose interests the change agent
primarily servers
3. CULTURE = basic assumption and beliefs shared by the members of an
organization
4. INTERVENTION = a change effort
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 Key terms in OD
5. ORGANIZATIONAL DEVELOPMENT (different from OD) = any effort to improve
an organization
6. SPONSOR = one who underwrites, legitimizes and champions a change effort or
OD intervention
7. STAKEHOLDER = one who has an interest in an OD intervention
8. SUBSYSTEM = part of a system (e.g. work units, department, divisions, activities,
processes, structures)
9. SYSTEM = inputs, transformation processes, outputs

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 Philosophical Influence on the OD:
Schools of Management Thought
THE CLASSICAL SCHOOL
Assumptions
1. Work is inherently distasteful to
most people
2. What workers do is less
important than what they earn
for doing it
Policies
1. The manager’s basic task is to
supervise and closely control
subordinates.
2. The manager must break down
tasks into simple, repetitive,
easily-learned operations.
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THE HUMAN RELATIONS SCHOOL THE HUMAN RESOURCES SCHOOL
Assumptions Assumptions
1. Work is not inherently distasteful.
1. People want to feel useful and People want to contribute to
important. meaningful goals which they have
2. People desire to belong and to be helped establish.
recognized as individuals. 2. Most people can exercise far more
creative, responsible self-direction and
Policies
self-control than their present jobs
1. The manager’s basic task is to make demand.
each worker feel useful and Policies
important. 1. The manager’s basic task is to coach
2. The manager should keep and to make use of “untapped” human
subordinates informed and listen to resources.
their objections to the manager’s 2. The manager must create an
plans. environment in which all members may
contribute to the limits of their abilities.
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 THE CLASSICAL SCHOOL
1. The manager must establish work
routines and procedures and
enforce these firmly and fairly.
Expectations
1. People can tolerate work if the
pay is decent ant the boss is fair.
2. If tasks are simple enough and
people are closely controlled,
they will produce up to
standards.
Source: Miles, R.E.(1975), Theories of Management: Implications for Organizational Behavior and Development, New York: McGraw-Hill, p. 35.
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THE HUMAN RELATIONS SCHOOL
1. The manager should allow
subordinates to exercise some
self-directions and self-control
on routine matters.
Expectations
1. Sharing information with
subordinates and involving
them in routing decisions will
satisfy their basic needs to
belong and feel important.
2. Satisfying these needs will
improve morale and reduce
resistance to formal authority;
subordinates will “willingly
cooperate”.
THE HUMAN RESOURCES SCHOOL
1. The manager must encourage full
participation on important
matters, continually broadening
subordinate self-direction and
control.
Expectations
1. Expanding subordinate influence,
self-direction, and self-control will
lead to direct improvements in
operating efficiency.
2. Work satisfaction may improve as
a “by-product” of subordinates’
making full use of their resources.
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 Methodological Influences to OD • Laboratory training
• Survey Research and Feedback – Rensis Likert

Likert’s Four Types of Organizations

System 1: Exploitive - Authoritarian System 2: Benevolent - Authoritative
• Dogmatic leadership • Parental approach of management
• Manipulative use of rewards
• Top-down communication

System 3: Consultative System 4: Participative

• Management listens to employees, but reserves the • Leadership based in influence
right to male decisions
• Intrinsic rewards predominate
• Some reliance on intrinsic rewards; most rewards are
•Two-way communication
based on extrinsic (money rewards)
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 Newer contributions to the
development of OD
TQM = Total Quality Management
drives attention on the creative human
potential and on people’s ability to
improve their work
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BPR = Business Process Reengineering
brings interest to the radical
organizational change and
restructuring
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 Human Relations Fields
1. HR Development 2. HR Management 3. HR Environment

a) Training a) Recruitment a) Organization Development

b) Education b) Selection b) Job redesigning
c) Development c) Placement
d) Compensation
e) Benefits
f) Appraisal
g) HR information systems
Common Goal: to improve the work
Common Goal: to bring about Common Goal: to increase environment through planned, long-
“the possibility of performance organizational productivity by term, and group-oriented change in
improvement and/of personal using the talents of its current organizational structures or
growth” employee interpersonal relations

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 The Human Relations Wheel (McLagan, 1989)
HR Development represents the integrated use of:

TRAINING AND ORGANIZATION CAREER DEVELOPMENT

DEVELOPMENT DEVELOPMENT

TO IMPROVE INDIVIDUAL, GROUP AND

ORGANIZATIONAL EFFECTIVENESS

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 Knowledge Requirements for OD
specialists
• Organization Development • Personnel research
• HR planning • Collective bargaining
• Training and development • HR information system
• Employment and personnel practices • Health and safety
• Compensation and benefits

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 OD can only intervene in situations of:
• Need for change felt at the top of the management
• Problems in the work environment
• Managers committed to long-term improvement
• Managers and employees are all willing to listen to the OD’s key
assumptions formulated by internal or external consultants
• Trust and cooperation
• Top managers are willing to provide all necessary resources for expertise

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 Alternatives to OD
1. THE LEGALISTIC APPROACH –
intervenes when there are
differences between the legal
standards and the organization’s
practices
2. THE DIALECTIC APPROACH –
public debate between two
persons or groups analyzing the
same problem from two
different perspectives
3. THE LEADERSHIP CHANGE
APPROACH – the temporary
change of the leader
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4. THE PERSUASIVE APPROACH –
convincing people that change
is needed
5. THE COERCITIVE APPROACH –
imposing change by force; it is
generally counterproductive
and it is considered as a last
alternative
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brasov@analytics.ro office@analytics.ro

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