ORGANIZATION

DEVELOPMENT
The practice of changing people and
organizations for positive growth

ORGANIZATION DEVELOPMENT
 Examples
• Team building
• Job enrichment
• TQM
• It applies knowledge of behavioral science to
improve overall organization performance in a
broader context through change and
interventions.
• It is different from project management and
product innovation
 Significance
• Although both change management and OD
deal with effective implementation of change
and they both involve processes leadership
and activities.
• BUT OD focuses on values, human potential
development and participation while change
management narrowly focuses on cost, quality
and schedule.
 Cont..
• OD focus is more on the knowledge and skills
so that the change process can be maintained
in future, while change management is least
concerned with such transfer.
• OD also emphasizes the role of OD
practitioners both internal and externals for
bringing a planned change process so that
organizations continuously adapt evolve and
embrace external environmental.
Organization Development (OD) is "an
effort, planned, organization-wide, and
managed from the top, to increase
organization effectiveness and health
through
planned interventions in the
organization's processes, using
behavioral-science knowledge."
-Beckhard

ORGANIZATION DEVELOPMENT
To thrive in tomorrow's business environment
—characterized by a dynamic work force, rapid
changes in technology, changing nature of the
workplace and the increasing instability of the global
environment—organizational development must
be an ongoing effort.

Encouraging continual examination and

readiness for change must be part of the
organization's culture.
ORGANIZATION DEVELOPMENT
OD Strategies
Action Research - An assessment and problem solving process
aimed at improved effectiveness for the entire organization or
specific work units.

Conflict Management - Bringing conflicts to the surface to discover

their roots, developing a common ground from which to resolve or
better manage conflict.

Executive Development - One-on-one or group developmental

consultation with CEO's or VP's to improve their effectiveness.

Goal Setting - Defining and applying concrete goals as a road map

to help an organization get where it wants to go.

ORGANIZATION DEVELOPMENT
WHAT IS ACTION
RESEARCH?

ORGANIZATION DEVELOPMENT
 STEPS IN ACTION RESEARCH
Entry
finding needs for change within an organization

Start-up and Contracting

identify critical success factors; clarify roles for the
consultant(s) and employees; deal with resistance within the
organization

Assessment and Diagnosis

collect data in order to find the opportunities and
problems in the organization

ORGANIZATION DEVELOPMENT
 STEPS IN ACTION RESEARCH
Feedback
two-way process serves to tell those what one found out, based
on an analysis of the data

Action Planning
distill recommendations from the assessment and feedback;
consider alternative actions

Intervention
carry out the change process

ORGANIZATION DEVELOPMENT
 STEPS IN ACTION RESEARCH

Evaluation
evaluation procedure to verify this success, identify needs for
new or continuing OD activities, and improve the OD process
Adoption
implementing processes to insure that OD remains an ongoing
activity within the organization

Separation
recognize when it is more productive for the client and
consultant to undertake other activities

ORGANIZATION DEVELOPMENT
WHY DO OD?

Human resources
employees in the company; large fraction of the
costs of doing business

Changing nature of the workplace

workers today want feedback on their performance,
they want a sense of accomplishment;
they need to be more efficient

ORGANIZATION DEVELOPMENT
WHY DO OD?

Global market
the competition is so stiff; our environments are
changing, so our organizations must also change
to survive and prosper

Accelerated rate of change

thinking has changed radically about
organizational structures to emphasize faster
customer response, lower costs and continuous
learning

ORGANIZATION DEVELOPMENT
 WHO DO OD?
CHANGE AGENTS

Internal Consultants External Consultants

employees of the organization people from outside the organization

 
To be successful, OD must have the involvement of all employers.

ORGANIZATION DEVELOPMENT
 WHEN IS AN
ORGANIZATION READY
FOR OD?

ORGANIZATION DEVELOPMENT
FORMULA FOR CHANGE

Dissatisfaction

X
Resistance
Vision to
Change
X

First Steps

ORGANIZATION DEVELOPMENT
THANKS