Organization Development:

Concept and Process

-Tarak Bahadur KC, PhD

tarakbkc@gmail.com
Shilu Pradhan
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Presentation Outline
 OD: Meaning, Characteristics,
Objectives, Elements
 OD: System Change or Culture

Change?
 Steps in OD / OD as a Process
 Conditions for Success

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Forethought
“It is not the strongest of the species that
survive, nor the most intelligent but, the
one most responsive to change”

Charles Darwin
Organisation
 is an establishment or a workplace where activities
are carried out in order to achieve a defined
purpose.
 is an entity with:
 Specific objectives
 Structure of authority
 Division of work
 Resources
 System of communication
 A set of customs (culture)
Development
 is the notion that an organization may become
more effective over time at achieving its goals.
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Reasons for Difficulties in Organisations
 No clear vision / direction
 Lack of response to environmental

influences
 Poor management / organisation

structure
 Failure to select appropriate

technology
 Communication
 Misfit between organisation and staff

goals, etc. 6
Organizational Issues
Organizational members do not behave in
the way required by the formal structure of
their organization, because,
 the formal structure of the organisation is not
designed according to the common
behavioural pattern of organisational members
(organizational culture), and
 the organizational culture is not compatible
with the type of structure that exists in the
organization.
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Reasons for Change in Organisations
Why organisations need change?
Survival / Growth

Composition of Work force / Diversity Increased Public Consciousness

Globalisation
Union / Staff
ORGANISATION

Regulation / Govt. Policies

Merger
Technology

Cost Pressure Donors

New Management

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Exercise:
The Organisational Style Index

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 Approaches to change
 Lewin’s three step model
 Action Research

 Organizational Development
Lewin’s three step model

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Action Research

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Organisation Development
 OD is a complex strategy intended to change
the beliefs, attitudes, values, and structure of
organizations so that they can better adapt to
new technologies, markets, and challenges. -
Warren Bennis

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 OD is an effort, planned, organisation wide, and
managed from the top, to increase organisational
effectiveness and health through planned
interventions in the organisation’s processes, using
behavioural science knowledge.-Richard Beckhard
 OD is a long term effort, led and supported by top
management, to improve an organization's
visioning, empowerment, learning and problem
solving processes, through an ongoing,
collaborative management of the organisation
culture.

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 OD is defined as a…

Requires Aims to Goals flow

Effects
support improve from
Planned entire
from all organisational deliberate
activity organis
levels effectiveness interventio
ation
and health n

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Characteristics
 Long range in perspective against
'quick fix' – coupled with strategic
planning,
 Supported by top managers,
 Emphasizes employee participation,
 Focuses on structure, culture and
processes,
 Initiated in response to need / problem
like turnover, absenteeism, low job
satisfaction, etc., and 16
Objectives of OD
 Increase the level of trust and support
among organizational members,
 Increase the incidence of confrontation of
organizational problems, both within
groups and among groups, in contrast to
sweeping problems under the rug,
 Improve the ability of the organisation to
adapt to its environment,
contd…..

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 Objectives …
 Increase the openness of communications
laterally, vertically and diagonally,
 Increase the level of personal enthusiasm

and satisfaction in the organization,

 Find synergistic solutions to problems

with greater frequency, and

 Increase the level of self and group

responsibility in planning and

implementation.
“Improve the overall effectiveness of the organisation.”
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Elements of an OD Programme
 Technical- work flow, job design,
required task roles, etc.
 Managerial- organisation’s structure
and policies, decision making approach,
etc.
 Human- informal organisation,
behavioural norms, satisfaction of
personal needs, motivational level and
attitude of employees, etc.
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Exercise: ABC Department

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OD: System Change or Culture Change?
Most OD focuses on changing organisation’s system,
not its culture.
System Analysis
An organization is a complete functioning unit
made up of integrated systems that allow it to
operate to accomplish its goals. The subsystems
of an organization include:
 the social system,
 the technical or operational system, and
 the administrative system.

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Culture Analysis
Culture is a system of shared values (what
is important) and beliefs (how things work)
that interact with an organisation’s people,
organisational structures and control system
to produce behavioural norms (the way
people do things). Components of
organizational culture:
values,

norms, and

artifacts.

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 System Change vs. Culture Change
System Change Criteria Culture Change
Problem Oriented Orientation Value oriented
More easily controlled Control Largely uncontrollable
Involves making Degree Involves transforming basic
incremental changes in assumptions
systems
Improving organization Focus On the quality of life in an
output / measurable organization
outcomes
Involves discovering non- Diagnosis Involves examining
alignments between dysfunctional effects of core
subsystems assumptions
Leadership change is not Leadership Leadership change is
essential crucial
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System Change or Culture Change?
The chosen approach should be contingent
on the type of problem being considered
since the system and culture approaches
employ different change strategies and
technologies. Those interested in managing
change in organisations often need both
lenses to diagnose problems in organisations
and select appropriate change strategies most
effectively.
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OD Process
 The OD Process is based on the action research
model which begins with an identified problem or
need for change. The process proceeds through
 assessment,
 planning of an intervention,
 implementing the intervention,
 gathering data to evaluate the intervention, and
 determining if satisfactory progress has been made or
if there is need for further intervention.
 The process is cyclical and ends when the desired
developmental result is obtained.
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Problem Identification
The OD process begins when an
organization recognizes that a problem
exists which impacts the mission or health
of the organization and change is desired. It
can also begin when leadership has a vision
of a better way and wants to improve the
organization. An organization does not
always have to be in trouble to implement
organization development activities.
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Situation / Needs Assessment
 Once the decision is made to change
the situation, the next step is to assess
the situation to fully understand it.
 A Needs Assessment is a systematic

exploration of the way things are and

the way they should be. These
"things" are usually associated with
organizational and/or individual
performance.
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 Needs Assessment
 This assessment can be conducted in

many ways including:

 documentation review,
 organizational sensing,
 focus groups,
 interviewing, or

 surveying.

 The assessment could be conducted by

outside experts or by members of the

organization. 29
Types of Need
 Normative
 Defined as falling below a standard
criterion established by custom,
authority, or general consensus
 Relative

 Measured by the gap between the

level of service between similar
communities
Types …
 Expressed
 Defined in terms of the number of
people who actually have sought
help
 Perceived
 Defined in terms of what people
think their needs are or feel their
needs to be
Steps in Assessment
Step 1.Perform a "gap" analysis
Step 2.Identify priorities and
importance
Step 3.Identify causes of performance
problems and/or opportunities
Step 4.Identify possible solutions and
development opportunities

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Needs Assessment Exercise
 Work in 4 groups
 Share your individual experience

in your group about situation that

requires improvement in your
organization
 Build consensus in group the area

of problem or need
Needs …
 Frame the problem as to be resolved in the four
level as follows:
1. Individual

2. Job/ Task
3. Teams/Departments/Divisions
4. Organizational
 A group will work in any one level
 Prepare 3-5 concrete points of the stated needs
for OD
 Present your work in plenary
Action Planning
 After the situation is assessed, defined, and
understood, the next step is to plan an
intervention. The type of change desired
would determine the nature of the
intervention. Interventions could include:
 training and development,
 team interventions, such as
 team building for management or employees or
 the establishment of change teams,
 structural interventions, or
 individual interventions.
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OD Interventions
 A set of planned change activities intended to
improve organization's effectiveness, including
quality of work life and productivity.
 In a sense, intervention is any event, directed
toward improving organizational effectiveness,
that disrupts an organization’s normal way of
operating. - Smither, R. et al.
 Interventions sometimes involve a consultant
from outside the organization, but many times
management itself intervenes to make
organizational changes.
 Conceptual Framework
OD Interventions Output Outcome
Individual
Intervention
• Selection
• T&D
• Counseling
• Promotion
• QWL

Structural
Intervention Human Output Perceived Org.
• Org. design • Individual Performance
• Job design commitment & • Improvement in
• Right sizing Involvement cereal production

Process
Intervention
• Goal setting
• Team building
• Decision making
• Manuals Based on Beer, 1980
 Integrated Approach to Change

Integration of these three strategies for successful OD intervention is

must.
Implement the Plan
Once the intervention is planned, it is
implemented.
Gather Data
During and after the implementation of the
intervention, relevant data is gathered. The data
gathered would be determined by the change
goals. For example, if the intervention were
training and development for individual
employees or for work groups, data to be
gathered would measure changes in knowledge
and competencies. 39
Analyse Results and Feedback
This data is used to determine the
effectiveness of the intervention. It is reported
to the organization’s decision-makers. The
decision-makers determine if the intervention
met its goals. If the intervention met its goals,
the process can end, which is depicted by the
raising of the development bar. If it did not,
the decision is made whether to continue the
cycle and to plan and carry out another
intervention or to end it.
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Conditions for Success of OD
 Top management must support strongly,
 Changes must be made in structures and

policies and must be committed with any

changes in attitudes which the programme
produces,
 All portions of the organisation must

change in a synchronised manner, and

 Sufficient time must be allowed for all

those involved to workout their problems.

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Conclusion
 OD is concerned with the development of
whole organization or improving it’s
effectiveness, and
 It is like a ‘health check’ where one
diagnoses how healthy the organisation is
and how well it is performing. On this basis,
right decision and measures taken to
improve the performance of organisation by
developing technical skills and leadership,
and changing structure and culture for
achieving objectives. 42
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