Organization Development (OD)

presented by
Meditha Karunatillaka
MBA, Dip in HRM, Dip in T & D, AMTD, MHRP
Definition-what is an organization

An organization is the planned coordination

of the activities of a number of people for
the achievement of some common explicit
purpose or goal, through division of labor
and function, and through a hierarchy of
authority and responsibility –(Edgar Shein)
Definition
Organization Development (OD)

OD is an effort (1) planned (2)

organization wide (3)managed from
the top (4) increase organization
effectiveness and health through (5)
planned interventions in the
organization’s processes, using
behavioral science knowledge.
(Richard Beckhard)
Why Study OD ?
 Can improve individual performance
 Create better morale
Increase organizational profitability
Related to OD
• Vision and Mission
• Behavior of the Organization
• Individual Behavior
• Structure of the Organization
• Culture of the Organization
WHY DO OD?
• Human resources
• Changing nature of the workplace
• Global markets
• Accelerated rate of change
Distinctive Features of OD

• an OD program is a long range, planned and sustained

effort that is based on an overall strategy.
• consultant establishes a unique relationship with the
client system: the consultant seeks and maintains a
collaborative relationship of relative equality with the
organization members
OD interventions are..........

• Unique in nature
• Reflexive
• Self-analytical
• Self-skill building in nature
Benefits

• It mainly tries to deal with the changes throughout the organization

or in any one of the major units.
• It develops greater motivation.
• It increases productivity.
• A better quality of work.
– It creates higher job satisfaction
– Team work is improved and encouraged
– It finds better solution for conflicts
– Commitment to objectives
– Increases the willingness to change
– Absenteeism is reduced.
– Turnover is lower
Limitations
• Organizational development is long-way process and
requires more time.
• It consists of substantial expense, delayed payoff
periods
• Failures are possible
• Possibility for invasion of privacy
• Possible for psychological harms
• It emphasizes only in group process compared to
performance
• Conceptual ambiguity is possible.
Elements of the OD process
• Entering and contracting

• Diagnosing ( Organization, groups and jobs)

• Planning and implementing change

• Evaluating and institutionalizing

Entering and contracting
• Entering & Contracting are the initial steps in the OD
process
• Entering and Contracting set the initial Para meters for
carrying out the subsequent phases of OD :
– Diagnosing the organization
– Planning & Implementation changes
– Evaluating and Institutionalizing them
• Entering into an OD relationship comprises
of three (3) elements- i.e.
- Clarifying the Organizational Issue
- Determining the relevant Clients
- Selecting the appropriate OD Practitioner
Clarifying the Organizational Issues
• An Organization generally starts an OD
programme by presenting the problem. i.e. the
issue that caused them to consider an OD
process. It may be Specific,( e.g. :decrease in
market share, increase in absenteeism, Increase
in industrial disputes or General (eg:
Organization growing too fast, needs a rapid
change)
• At this stage, presenting the problem is only a
symptom of an underlined problem
Determining the relevant client
• Generally the relevant client includes those organization
members who can directly impact on the change issue.
• Unless these Members are identified and included in the
entering and contracting process, they may with hold
their support for and commitment to the OD process.
• E.g. In trying to improve the productivity of a unionized
plant the relevant client may include union officials as
well as Managers and staff personnel.
• It is not unusual for an OD project to fail because the
relevant client was inappropriately defined.
Diagnosing Organization
• Diagnosis is the process of understanding current
functioning of the organization. It will provides the
information necessary for designing change
interventions. It generally follows from successful entry
and contracting.
• This is a collaborative process between organization
members and OD consultants to collect pertinent
information, analyze it and draw conclusions of action
planning and interventions .
• Diagnosis may be aim uncovering causes for specific
problems or it may be directed at assessing the overall
functioning of the organization / department to discover
the areas for future development.
Organizational Diagnosis
1. Think of visiting your health
care, computer or auto
mechanic professional. What
is a diagnosis?
2. What does s/he do to diagnose
(Dx) your condition?
3. What are the uses/purposes of
a Dx; What does it allow you to
do?
4. What, therefore, are the
criteria for a sound Dx?
5. How is a diagnosis derived?
Planning and implementing change
• In this stage ,organization members and practitioners
jointly plan and implement OD interventions.
• They design interventions to achieve the organization's
vision or goals and make action plans to implement
them.
• There are several criteria for designing interventions
,including the organization's readiness for change ,its
current change capability, its culture and power
distributions and change agent’s kills and abilities .
• Depending on the outcomes of diagnosis, there are four
major types of interventions in OD
Comparison of Planned Change Model
(A) (B) (C)
Lewin’s Planned Action Research Positive
Change Model Model Model

Unfreezing Problem identification Initiate the Inquiry

Consultation with
Behavioural Science Expert
Inquiry into Best
Data gathering and Practices
Preliminary Diagnosis

Feedback to Key Client of

Movement Group
Discover Themes
Joint Diagnosis of
Problem

Joint Action Plan Envision a

Preferred Future

Action
Design and
Data Gathering after Deliver Ways to
Action Create the Future
Refreezing
Major Types of Interventions in OD .

• Human Process Interventions

• Techno structural Interventions
• Human Resources Management
Interventions
• Strategic Interventions
Human Process Interventions
• Coaching
• Training and Development
• Process Consultation and Team Building
• Third-party Interventions (Conflict Resolution)
• Organization Confrontation Meeting
• Intergroup Relationships
• Large-group Interventions
Techno structural Interventions
• Structural Design
• Downsizing
• Reengineering
• Employee Involvement
• Work Design
Human Resources Management Interventions
• Goal Setting
• Performance Appraisal
• Reward Systems
• Career Planning and Development
• Managing Work Force Diversity
• Employee Stress and Wellness
Strategic Interventions
• ntegrated Strategic Change
• Mergers and Acquisitions
• Alliances and Networks
• Culture Change
• Self-designing Organizations
• Organization Learning and Knowledge Management
Evaluating and Institutionalizing
• The final stage in planned change involves evaluating
the effects of the intervention and managing the
institutionalization of successful change programs .
• Feed back to organization members about the
intervention’s results provide information about whether
the changes should be continued ,modified or
suspended.
• There are several criteria for designing interventions
,including the organization's readiness for change ,its
current change capability, its culture and power
distributions and change agent’s kills and abilities .
• Depending on the outcomes of diagnosis, there are four
major types of interventions in OD
 Organizational Development
Techniques
Sensitivity Training
Training groups (T-groups) that
seek to change behavior through
unstructured group interaction
Provides increased awareness of
others and self
Increases empathy with others,
improves listening skills, greater
openness, and increased tolerance
for others
Organizational Development
Techniques (cont’d)
Survey Feedback Approach
The use of questionnaires to identify discrepancies
among member perceptions; discussion follows and
remedies are suggested
Organizational Development
Techniques (cont’d)
Process Consultation (PC)
A consultant gives a client insights into what is going
on around the client, within the client, and between the
client and other people; identifies processes that need
improvement.
Organizational Development
Techniques (cont’d)
Team Building
High interaction among team members to
increase trust and openness

Team
TeamBuilding
BuildingActivities
Activities
•• Goal
Goaland
andpriority
prioritysetting
setting
•• Developing
Developinginterpersonal
interpersonalrelations
relations
•• Role
Roleanalysis
analysistotoeach
eachmember’s
member’srole
roleand
and
responsibilities
responsibilities
•• Team
Teamprocess
processanalysis
analysis
Organizational Development
Techniques (cont’d)
Intergroup Development
OD efforts to change the attitudes, stereotypes, and
perceptions that groups have of each other

Intergroup
IntergroupProblem
ProblemSolving:
Solving:
•• Groups
Groupsindependently
independentlydevelop
developlists
listsofofperceptions
perceptions
•• Share
Shareand
anddiscuss
discusslists
lists
•• Look
Lookfor
forcauses
causesofofmisperceptions
misperceptions
•• Work
Worktotodevelop
developintegrative
integrativesolutions
solutions
 Open Systems Model

Environment

Inputs Transformations Outputs

• Information • Social Component • Goods
• Energy • Technological • Services
• People Component • Ideas

Feedback
 Source Waddell, Cumming and Worley (2007) Organisation Development & Change.
Thomson, South Melbourne Australia
 Organisation-Level
Diagnostic Model

Inputs Design Components Outputs

Organisation
General Strategy performance
Environment The way a company uses its resources human
Uncertainty in social, economic or technical to gain and sustain
technological, economic ,
ecological and political
competitive advantage Productivity
forces
Organisation
Industry
design Stakeholder
Structure
Five forces – suppliers, satisfaction
buyer, threats of entry,
threats of substitutes and
rivalry among competittors

 Source Waddell, Cumming and Worley (2007) Organisation Development & Change.
Nelson, South Melbourne Australia
 Group-Level Diagnostic Model

Inputs Design Components Outputs

Goal Clarity

Organisation Task Team Team

Design Structure Functioning Effectiveness

Group Group
Composition Norms

 Source Waddell, Cumming and Worley (2007) Organisation Development & Change.
Thomson, South Melbourne Australia
 Individual-Level Diagnostic Model

Inputs Design Components Outputs

Organisation skill Variety
Design
Task Individual
Group Design Identity Autonomy Effectiveness

Personal Task Feedback

Traits Significance about Results

 Source Waddell, Cumming and Worley (2007) Organisation Development & Change.
Thomson, South Melbourne Australia
Journey of Life……