Module-II

Organization Development
Points to be covered
Meaning and Evolution of OD
Major characteristics of OD
Why OD?
Who does OD?
The Organizational Culture
The Socialization Process
Psychological Contracts
A model for OD

2
 Meaning of OD

OD comprises the long-range efforts and programs aimed

at improving an organization’s ability to survive by changing
it’s problem-solving and renewal processes.

According to Richard Beckhard, Organization

Development is an effort: (1)planned, (2) organization-wide,
(3) managed from the top, (4) to increase organization
effectiveness and health, through (5) planned interventions in
the organization’s processes using behavioral science
knowledge.

3
Cont….
Another way of explaining OD is to
understand what it is not:
OD is not a micro approach to change.
OD is more than any single technique.
OD does not include random or adhoc
changes.
OD is more than changing morale or
attitudes.

4
 Major Characteristics of OD
1. Change Planned by Managers to achieve goals

2. Collaborative Involves Involvement

Approach
3. Performance Emphasis on ways to improve and
Orientation enhance performance
4. Humanistic Emphasis upon increased opportunity
Orientation and use of human potential
Relationships among Elements and
5. Systems Approach Excellence
Scientific Approaches supplement
6. Scientific Method practical experience

5
Why OD?
Organizations initiating large-scale change
programs found that most cited reasons for
beginning the change program are as
follows:
 The level of competition
 Survival
 Improved performance
The study also identified primary goals of
change program as shown in the next slide.
6
 Primary Goals for change Program:
 Increase productivity
 Increase responsiveness
 Improve competitive  position
 Increase employee  involvement
 Increase employee  morale
 Develop new  managerial skills

The Emergence of OD:

 Warren Bennis, a leading OD pioneer, has identified three factors as
underlying the emergence of OD.
 The need for new Organizational forms
 The focus on cultural change
 The increase in Social Awareness

7
The  Only Constant Is Change 
Today's managers  need new mind-set 
Flexibility
Speed
Innovation
Constantly changing  conditions

8
 Successful  Firms Share These Traits 

 Faster
 Quality conscious
 Employee involvement
 Customer oriented
 Smaller

In the next slide, we can see the figure showing the

changing environment of the twenty-first century.

9
 Competitive
uncertainty New Competitors
• Regulations • Domestic
• Prices • Multinational
• Suppliers

The Org. of the

Twenty-first century
• Faster
• Quality conscious
• Employee
Involvement
• Customer Oriented
• Smaller

Technology Changing consumers

• New Products • Lifestyles
• New Technologies • Trends

10
Evolution of OD
 OD has evolved over the past 50 years from its beginnings as the
application of behavioral science knowledge and techniques to solving
organizational problems.

 The term Organization Development is widely attributed to Robert

Blake and Jane Mouton (the originators of the Managerial Grid) and
Herbert Shepard (a leading OD pioneer); but Richard Beckhard claims
the distinction as well.

 OD emerged about 1957 and is generally conceded to have evolved from

two basic sources: the application of laboratory methods by the National
Training Laboratories (NTL) and the Survey Research methods
originated by the Survey Research Center. Both methods were pioneered
by Kurt Lewin around 1945.
11
NTL Laboratory- Training Methods
In the late 1940s and early 1950s, laboratory-training
methods were developed and applied by a group of
behavioral scientists in bethel, Maine, Douglas
McGregor, working with Richard Beckhard, began
applying laboratory- training methods to industry at
General Mills in 1956 and at Union carbide in 1957.
About the same time, Herbert Shepard and Robert
Blake were initiating a series of applied Behavioral
science interventions at Esso, mainly using Laboratory-
Training techniques to improve work team processes.

12
Survey Research and Feedback
Meanwhile, a group at the Survey Research
Center at the University of Michigan began to
apply Kurt Lewin’s action Research Model to
Organizations, Rensis Likert and Floyd Mann
administered an Organization wide survey at
Detroit Edison co. involving the systematic
feedback of data to participating departments.
They used what is termed an ‘Interlocking series
of conferences’ feeding data back to Top
management group and then down to work teams
throughout the Organizations.
13
 Who Does OD?
OD practitioners 
consist of specialists and those applying 
OD in daily work:
 Professionals and specialists trained in OD.
 Managers and leaders applying OD.
 OD specialists: 
◦ Internal practitioners – from within organization
◦ External practitioners – from outside organization

14
Cont….

Activities include:
Team leaders developing teams.
Building learning organizations.
Implementing total quality management.
Creating boundary less organizations.

15
The Organizational culture
The term Organizational culture refers to a system of
shared meanings, including the following:
 Dress
 Patterns of behavior
 Language
 Value system
  Feelings
 Attitudes
 Interactions
 Group norms

16
What are Norms?
Organized and 
shared ideas of what members should do 
and feel
How behavior  is regulated
Pivotal norms  -
essential to accomplishing organization’s 
objectives.
Peripheral norms 
- support and contribute to pivotal norms 
but not essential to organization’s objectives.
17
 The Socialization Process
Process that  adapts employees to culture
New employees  become aware of norms
Employees encounter  culture
Individuals understand 
power, status, rewards, and sanctions

18
 The Socialization Process

Results:
New Encounters Adjustment
employee Organization to cultural 1.Performance
Expectations culture Norms 2.Commitment
3. Obtain Goals

19
Adjustment  to Cultural Norms and Socialization Occurs  in 3 Ways 

Rebellion  - rejection of all values and norms
Conformity - acceptance of all values and
norms
Creative individualism - acceptance only of
pivotal values; rejection of others

20
 Basic Responses to Socialization

Creative
Rebellion Conformity
Individualism

Rejection of Acceptance of
All Values All Values
and Norms and Norms
Acceptance only of
Pivotal Values;
Rejection of all others
21
 Psychological  Contracts 
 Unwritten agreement  between individuals and organization
 Open-ended so  issues may be renegotiated
 An organization has certain expectations of its members. For
the organization to be satisfied, the individual will need to
comply to some degree with its expectations.
 In other words, the organization has certain requirements and
the individual must do certain things to meet those requirements
if there is to be a lasting and healthy relationship.
 Similarly, the individual has certain expectations of the
organizations.
 For individuals to be satisfied and stay, the organization will
have to meet the individual’s expectations.
22
 A model for od
 OD is continuing  process with emphasis on viewing
organization 
as total system of interacting and interrelated  elements.
 The Primary difference between OD and other
behavioral techniques is the emphasis upon viewing the
organization as a total system of interacting and
interrelated elements.
 In this model, each stage is dependent on the preceding
one, and successful change is more probable when each
of these stages is considered in a logical sequence.

23
The Model of OD Stage 1:
Anticipate Need
for Change

Stage 2:
Stage 5:
Develop the
Self-Renewal,
Practitioner
Monitor, and
client-
Stabilize
Relationship

Stage 4:
Stage 3:
Action Plans,
The Diagnostic
Strategies, and
Phase
Techniques
24
 Organization Development’s Five Stages

Stage one:  Anticipating need for change
◦ Someone recognizes need for change
◦ There must be felt need for change
Stage two:  Developing practitioner-
client relationship
◦ OD practitioner enters system
◦ Good first impressions and match important
◦ Practitioner establishes trust, open communication,
shared responsibility
25
 Stage three:  The diagnostic phase
◦ Practitioner and client gather data about system
◦ Objective is to understand client’s problems, identify forces
causing situation, and select change strategies
 Stage four:  Action plans, strategies, and techniques
◦ Series of interventions, activities, or programs aimed at
increasing effectiveness
◦ Programs apply OD techniques
 Stage five:  Self-renewal, monitor, and stabilize
◦ As OD program stabilizes, need for practitioner decreases
◦ Monitor results
◦ Stabilize change
◦ Gradual disengagement of OD practitioner
All these stages lead to a continuous improvement.
26
 Module-ii
OD practitioner: role, styles
Points to be covered
Haphazard vs Planned change
External and Internal Practitioners
Od Practitioner Styles
The Intervention Process
Forming the Practitioner-Client Relationship
The Formalization of Operating Ground
Rules
Red Flags in the Practitioner-Client
Relationship
28
Haphazard v/s Planned Change

Haphazard Change:
It is forced on the organization by the external
environment.
This type of change is not prepared in advance at all.
It simply occurs and is dealt with as it happens, a
practice sometimes called firefighting.

29
Haphazard v/s Planned Change

Planned change:
It results from deliberate attempts to modify
organizational operations in order to promote
improvement.
For e.g. TQM [Total quality manangement] which
focuses on continuous improvement.

30
External and Internal Practitioners
External Practitioners Internal Practitioners

 Not previously associated A member of the

with the client system organization, either a top
 Have increased leverage and executive or a member of
greater freedom of HR department.
operations  Familiar with the
 Do not depend upon the organization’s culture and
organization for raises, norms and behave
approval or promotions accordingly
 More independent attitude  Know the Power-structure,

about risk-taking and are known to employees and

confrontation with the client personal interest in org’s
system. success.
31
 Disadvantages
External Practitioners Internal Practitioners

 Unfamiliar with the  Lack of specialized skills

organization culture needed for org. development
 No sufficient knowledge of  Being known to the
the technology workforce is also a
 Unfamiliar with the culture, disadvantage
communication network,  Do not possess the
formal and informal power necessary power and
system authority, are sometimes in
 Difficulty in gathering a remote-staff position and
Information because they report to a mid-level
are outsiders manager.
32
 Styles of Practitioners

OD Practitioner Styles can be viewed upon

two dimensions:
Effectiveness - degree of emphasis upon goal
accomplishment.
Morale - degree of emphasis upon
relationships and participant satisfaction.

33
 The Stabilizer Style
Maintains low profile
Tries to survive by following directives

34
 The Cheerleader Style
Places emphasis on member satisfaction
Does not emphasize organization
effectiveness

35
 The Analyzer Style
Places emphasis on efficiency.
Little attention to satisfaction of members.

36
 The Persuader Style
Seeks compromise between cheerleader and
analyzer styles.
Achieves average performance.

37
 The Pathfinder Style
Seeks high organization efficiency and high
member satisfaction.
Desired style for OD practitioner.

The Pathfinder Style focuses on six

processes:
 Communication

 Member roles in groups

 Group problem-solving

 Group norms and growth

 Leadership and authority

 Intergroup cooperation
38
 High

Cheerleader Pathfinder

Morale
Persuader

Stabilizer Analyzer

Low

Low Effectiveness High

39
 The Intervention Process

 The Readiness of the organization for OD

 The Intervention
 Who is the client?
 The OD practitioner role in the Intervention
 OD Practitioner skills and Activities

40
The Readiness of the organization for OD
Key personnel first decide if change is
needed.
Are Learning goals of OD appropriate?
Is Cultural state of client ready for OD?
Who are the Key people involved?
Are Members prepared and oriented to
OD?

41
The Intervention
Intervention comes between members of
organization for purpose of change.
Planned activities must be implemented.
External practitioner usually intervenes
through top manager.

42
Who is the client?
Who client is becomes complex as
practitioner intervenes.
Client may be organization, certain
divisions, or an individual.

43
The OD practitioner role in the
Intervention
Operates on belief that team is basic
building block.
Concerned with how processes occur.
Believes that assisting client, not taking
control, will lead to lasting solution.

44
OD Practitioner skills and Activities
Team development
Corporate change
Strategy development
Management development
Employee development
Technology integration

45
Six key skill areas critical to success of
practitioner
Leadership
Project management
Communication
Problem-solving
Interpersonal
Personal

46
Forming the Practitioner-client Relationship

 InitialPerceptions
 Practitioner style model
 Developing a trust Relationship
 Creating a climate for change
 Practitioner-client Relationship Modes

47
 Initial perceptions
 Initial intervention includes an evaluation by client and
practitioner of each other.
 First impression is important.
 Relationship is based on mutual trust and openness.
Selective Perception:
 Selectivity of information that is perceived.
 Process in which people tend to ignore information that conflicts
with their values.
 Accepts other information that agrees with their values.
Closure:
 Tendency of individual to fill in missing information in order to
complete perception.
 A person perceives more in the situation than is really there.
48
 Organization system
(culture, climate)

OD
Client Internal External
program
Sponsor Practitioner Practitioner
Goals

Client Client
Target Target
A B

Organization Environment
49
Perception formation and its effect on Past Experience
Relationships

Mechanisms of
perception
formation
Interpretation

Information Selectivity Perception

Closure
Relationships

Org. position Stress

Interaction
and Job group
reward design Pressure role

50
Practitioner Style Model

Practitioner brings knowledge, skills,

values, and experience.
Client system has own subculture and
readiness for change.
Together they determine practitioner’s
style and approaches.

51
Practitioner Style Model

Practitioner Practitioner Task,

Knowledge, Skills, Performance,
Values and Expectations, and
Experience Rewards

Practitioner Style
and Approaches

Target
Client System’s
organization’s
Expectations and
Readiness for
Values
change

52
Developing a Trust Relationship
Openness and trust between practitioner and client
becomes essential.

 Several basic responses that the Practitioner may use in

the communication Process:
 Questions
 Applied Expertise (Advising)
 Reflection
 Interpretation
 Self-Disclosure
 Silence
53
Creating a climate for Change

Practitioner “practice
what he or she preaches.”

Create climate of
openness, authenticity,
and trust.

54
 Four Practitioner-Client Relationship Modes
High

CHARISMATIC CONSENSUS
Open to others Open to others

Rejects Accepts
Responsibility Responsibility
Open to
others,
shares Practitioner
ideas Client
and Relationship
feelings

APATHETIC GAMESMANSHIP
Closed to others Closed to Others

Rejects Accepts
Responsibility Responsibility
Low
Accepts personal responsibility for own Behavior
Low High
55
Formalization of Operating Ground rules

The Formalization or contract normally specifies such items:

 The point of contact
 The role of the practitioner
 The Fees
 The schedule
 The anticipated results
 The operating ground rules

56
Red Flags in the Practitioner-client
Relationship

 The level of commitment to change

 The degree of leverage or power to influence
change
 The client’s manipulative use of the practitioner

57
Diagnostic process
Points to be covered
Diagnosing Problem Areas
What is Diagnosis?
The Data Collection Process
The Implementation of Data Collection
Diagnostic Models
Red Flags in the Diagnosis

59
Diagnosing Problem Areas
 An important element in developing a high-performance organization
is identification of areas for improvement and problems.
 Provides information that allows a faster reacting organization to
emerge, one that can deal proactively with changing forces.
 The most critical element in OD process
 Rigorously analyzes the data on the structure, administration,
interaction, procedures, interfaces, and other essential elements of the
client system.
 It is a good rule for the organization development practitioners to
follow.
 To make a sound diagnosis, it is important to have valid information
about the situation and to arrange available data into a meaningful
pattern.
60
What is Diagnosis?
 Michael Beer sees diagnosis as a method of analyzing
organizational problems and learning new patterns of behavior.
 It can help organization by doing the following:
 Enhancing the organization’s capacity to assess and change its
culture.
 Providing an opportunity for organization members to acquire
new insights.
 Ensuring that the organization remains engaged in a process of
continuous improvement.
 The Diagnosis usually examines two broad areas:
 The first area comprises of various interacting sub elements
 The second area the organizational processes
61
Cont….
 The critical issues in diagnosis include:
 Simplicity
 Visibility
 Involvement
 Primary factors
 Measure what is important
 Sense of urgency
 Diagnosis is a systematic approach to understanding and
describing the present state of the organization. It is usually
divided into two parts:
 The Process
 The Performance Gap
62
Tentative problem
areas identified The Diagnostic Process

Collect Analyze Data

data data feedback

More Problem areas

data identified
needed
now?

Client
target
No change
motivated
at present
to work on
problem

Diagnosis. Work
Results on problem
monitored causes. Result is
change 63
The Performance Gap
 One method in the diagnostic process is to identify the
performance gap- the difference between what the organization
could do by the virtue of its opportunity in its environment and
what it actually does.
 One OD practitioner suggests a self-assessment version of gap
analysis using questionnaires to gather information in four-key
areas:
 The organization’s strengths
 What can be done to take advantage of the strengths
 The organization’s weaknesses
 What can be done to alleviate the weaknesses

64
 The Performance Gap

Desired
performance
Performance
Gap
Actual
performance

65
The Data Collection Process
 An OD program based upon a systematic and explicit
investigation of the client system has a much higher probability of
success because a careful data collection phase initiates the
organization’s problem-solving processes and provides a
foundation for the following stages:
 The Definition of Objectives
 The Selection of Key Factors
 The Selection of a Data-Gathering Method
It includes:
- Secondary Sources of Data
- Employee Surveys
- Other Types of Instruments, Direct Observation, Interviews
66
The Implementation of Data Collection
 The implementation of data collection consists of two steps:
 The Analysis of Data
 Evaluating the effectiveness of Data Collection
A number of criteria can be used to compare data collection
techniques which are as follows:
- The Validity of the Data
- The Time to Collect Data
- The Cost of Data Collection
- The Organizational Culture and Norms
- The Hawthorne effect in Data Collecting

67
Diagnostic Models
 Diagnosis is based on an understanding of how an organization
functions. OD Practitioners use diagnostic models to assess
organizations. Each of the Various Diagnostic Models can be used
to analyze the structure, culture, and behavior of the organization.
These models are:
 The Analytical Model
 The Emergent-Group Behavior Model
 The Management Practitioner Model
 The Socio-Technical Systems Model
 Cause Maps and Social Network Analysis Model
 The Force-Field Analysis Model

68
The Analytical Model
 The, Analytical Model sometimes referred to as the difference-
integration model, stresses the importance of a sound
analytical diagnosis as the basis for planned change in
organizations.
 The Model was developed to study and understand
interdepartmental issues by conducting a careful diagnosis of
the organization’s problem areas.
 This Model can be used in respect to four characteristics of the
organization’s environment:
 The Degree of Departmental Structure
 The time of orientation of members
 The Interpersonal orientation of members towards others
 Organization members’ orientation towards goals
69
 Orientation of functional departments

Organization Degree of Member’s Member’s Member’s

Units Departmental Orientation Orientation Goal
Structure Towards Time Towards Orientation
Others

Finance High Short Controlling Investment

Research Low Long Permissive Science

Marketing Medium Short Permissive Market

Production High Short Directive Product

70
 The Emergent-Group Behavior Model

 This Model provides a conceptual framework for analyzing behavior

in work groups, particularly the interdependence of groups.
 According to this model, a complex pattern of behavior consisting of
activities, interactions, sentiments, and norms develop from the set of
behaviors and relationships required to perform the work of the
group.
 Another complex set of behaviors emerges in addition to those that
are required, such as a social activity.
 These behaviors may or may not assist the group members in the
performance of their duties.
 This model helps to understand how teams operate.

71
 The Management Practitioner Model

 In a study of over 900 practitioner cases, Terry Armstrong and Walter

Wheatley Developed a model that analyzes six basic factors:
 Basic Planning: Do they have a vision, mission and goals?
 General Business Practices: Do they have appropriate management
systems?
 Finance: Are they operating with timely, accurate financial data, and
plans?
 Advertising and Promotion: Are they aware of the link between
advertising and sales?
 Market Research: Are they aware of the competitor’s strategies and
policies and their customer’s needs?
 Personnel: Do they have appropriate systems for recruiting, training,
and retaining human resources?
72
 The Socio-Technical Systems Model

 The Sociotechnical Systems model, developed from the work of Eric

Trist and others at the Tavistock Institute, analyzes the organization as
a Sociotechnical system interacting with its external environment.

73
 Cause Maps and Social Network Analysis
Model
 Reed E. Nelson and Michael Mathews have proposed this Model.
 Cause Maps are mathematical representations of perceived causal
relationships among variables. First a list of most important factors
(quantity, speed, frequency, quality and morale) is generated through
discussion. Then participants are asked to identify the causal
relationships among these variables.
 The Social network analysis Model is based upon a mathematical
representation of the relations between individuals or groups (
such as a marketing department).

74
The Force-Field Analysis Model
 The Model, originated by Kurt Lewin, is a general purpose diagnostic
technique.
 This Model views the behavior not as a static pattern, but as a
dynamic balance of forces working in opposite directions.
 In any organization, there are driving forces as well as restraining
forces. When these forces become equal, the result is equilibrium.
Lewin termed this state as quasi-stationary equilibrium.

Restraining Forces

Quasi-Stationary Equilibrium

Driving Forces
75
 In
Lower % Forces tending to Restrain (Increase) Absentee Rate
Absentee 0
Rate
1 Inclement
Inadequate Below
Weather & Standard
Supervision
2 Cold vacation
Climate Time
Desired 3
Rate No Personal
No Monetary
4 ownership in
Leave Policy
company
5
6
Present
Rate 7
8 Interest in
Work
9 Promotion
Pay Scale Policy
1
0
1
1 Present Fear of
Higher Sick Leave Losing Job
Absentee 1 Policy
Rate 2 Forces tending to Improve (Decrease) Absentee Rate 76
Red Flags in the Diagnosis
 The Diagnostic phase presents some special problems. Because
diagnosis is one of the most important stages in the OD process,
the practitioner should be aware of the following warning signals.
 Confidentiality
 The Over-Diagnosis
 The Crisis-Diagnosis
 The Threatening and Overwhelming Diagnosis
 The Practitioner’s Favorite Diagnosis
 The Diagnosis of Symptoms

77
Process intervention skills
Points to be covered
A New Paradigm
Process Interventions
Group Process
Types of Process Interventions
Results of Process Interventions

79
A New Paradigm
 The new role of the manager will not come easy.
 Organizations often put their managers in difficult and no-
win situations.
 Managers are expected to coach their employees and let
them learn and grow from their failures and successes, but
at the same time, they are expected to deliver evaluations,
promote employees, and adjust salaries.
 A better understanding of group and team behaviour is
needed to help managers adapt the new role of coach.
 The traditional manager was probably an expert on the task
of the group. Managers knew the “what and how” of the job
positions reporting to them, and probably had been
promoted because of their expertise about the job.
80
Process Interventions
 Process Interventions are an OD skill used by OD
practitioners, whether managers or OD professionals, to
help work groups become more effective.
 The purpose is to help the work groups become more aware
of the way it operates and the way its members work with
one another.
 The work group uses this knowledge to develop its own
problem-solving ability.
 Process Interventions, then aim at helping the work group to
become more aware of its own processes, including the way
it operates, and to use this knowledge to solve its own
problems.

81
Cont….
 The manager practicing process interventions observes
individuals and teams in action and helps them learn to
diagnose and solve their own problems.
 The manager refrains from telling them how to solve their
problems but instead asks questions, focuses their attention
on how they are working together, teaches or provides
resources where necessary or listens.
 One of the major advantages is that teams learn to identify
problems and then initiate their own solutions.
 The teams become more independent and do not rely
themselves on managers.

82
 Group Process
Communications

Member Roles
& Functions

Group
Leadership Process
& Authority

Problem Solving
&
Decision Making

Group Norms
& Growth

83
Group Processes
 The interventions here focuses on five crucial areas:
 Communication
- Observe
- Identify
- Interruptions
 Member roles and Functions in Groups
- Group Task Functions
- Group Building and Maintenance Functions
- Individual Functions

84
Group Task Functions Group Building And
Maintenance Functions
•Initiating and Suggesting
•Seeking Opinions •Harmonizing
•Asking Questions •Compromising
•Elaborating •Encouraging
•Summarizing •Gatekeeping
•Testing for Consensus •Following

Individual Functions

•Dominating
•Acting the playboy
•Blocking
•Seeking Recognition
•Pleading for special interest
85
Cont….
 Group Problem solving and Decision making
- Voting system
- Through Group Consensus
 Group Norms and Growth
- common belief or ideas shared by members of the same
group
 Leadership and Authority

86
Types of Process Interventions
A manager’s process interventions should be as
brief and crisp as possible and should focus on only
one level of behaviour at a time.
These interventions include:
 Clarifying and Summarizing
 Synthesizing and Generalizing
 Probing and Questioning
 Listening
 Reflecting Feelings

87
Cont….
 Providing Support, Coaching, and Counseling
 Modeling
 Setting the Agenda
 Feeding Back Observations
 Structural Suggestions

88
Results of Process Interventions
 Process Intervention skills can be helpful to managers in
dealing with sub-ordinates and peers.
 A method useful in relating to people where organization
members can learn to solve their own problems.

89
Thank You

90