Organizational Development

Session 01

Shamalka Uduwella
Senior Consultant/ Lecturer
National Institute of business Management
Kandy Capmus
 Introduction to OD
The term organizational development was coined by Richard Beckhard in
the mid-1950s.Organizational development is an acronym of two words
i.e., organization and development.
Organization: A social unit of people that is structured and managed to
meet a need or to pursue collective goals.

Development: The systematic use of scientific and technical knowledge to

meet specific objectives or requirements.
 Introduction to OD
 ORGANIZATION DEVELOPMENT:

Organization development (OD) is a deliberately planned effort to

increase an organization's relevance and viability.

Organizational development is the framework for change, and often times

a manager helps to lead this change.
Organizational Development

• According to Richard Burkhard; OD is planned process of

change in an organization’s culture through the utilization of
behavioral science , technology, research and theory
Organizational Development
• Middlemist and Hitt define “organizational development is a
systematic means for planned change that involves the entire
organization and is intended to increase organizational effectiveness.”

• Cummings and Huse define OD “A system wide application of

behavioral science knowledge to the planned development and
reinforcement of organizational strategies, structure, and processes for
improving an organization’s effectiveness.”
 Growth & Relevance
• THREE major trends are shaping their relevance of OD in this
drastically changing environment:

1. Globalization
2. Information Technology
3. Managerial Innovation
 Growth & Relevance

• Globalization: It changed the market and environments in

which organization operates as well as

• the way function. New government, new leadership, new

market, new countries are emerging and creating new global
economy with opportunities and threats.
 Growth & Relevance

2.Information Technology: The way an organization collects,

stores, manipulates uses
3.Managerial Innovation:
•(strategic HRM, organization design, proactivity & customer
focus, learning organizations)
Intervention Overview

• Human Process Interventions

• Techno structural Interventions
• Human Resources Management Interventions
• Strategic Interventions
Human Process Interventions
• Coaching
• Training and Development
• Process Consultations and Team Building
• Intergroup Relationship
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 Intervention
• Integrated strategic change
• Merge & Acquisitions
• Alliance and Network
• Culture change
• Self- designing Organizations
• Organization Learning & Knowledge Management
 Objective of OD
1. To increase the level of inter-personal trust among employees.

2. To increase employee's level of satisfaction and commitment.

3. To confront problems instead of neglecting them.

4. To effectively manage conflict.

5. To increase cooperation among the employees.

6. To increase the organization problem solving.

7. To put in place process that will help improve the ongoing operation of the organization on a continuous
basis.