Introduction to

Organizational Development
Introduction to Organizational Development
Concept:
Organizational Development or O.D. is a planned effort initiated by process
specialists to help an organization develop its diagnostic skills, coping
capabilities, linkage strategies (in the form of temporary and semi-
permanent systems) and a culture of mutuality.

A planned effort - thinking and planning
initiated by process specialists
Diagnostic skills - data collection-overtime
Coping capabilities - problem-solving, confront and cope
Linking strategies - Individual & Organizational Goals
Culture of Mutuality - OCTAPACE-fostering of certain values and
open and proactive systems viz. openness, confrontation, trust,
authenticity, pro-activeness, autonomy, collaboration and
experimentation.
Definition of O.D. by Edgar Schein:

An organization is the planned coordination of the activities of a number of
people for the achievement of some common explicit purpose or goals
through the division of labour and function, and through a hierarchy of
authority and responsibility.

Development is the act, process, result or state of being developed-which in
turn means to advance, to promote the growth of, to evolve the possibility
of, to further, to improve or to enhance something.

Two elements stand out viz.:
(a) Development may be an act, process or an end state
(b) Development means bettering something

Thus, O.D. is the act, process or result of furthering, advancing, or
promoting the growth of an organization.
Organizational Development:

O.D. is a systemic and systematic change effort, using behavioral science
knowledge and skill, to transform an organization to a new state.

O.D. is system-wide and value-based collaborative process of applying
behavioral science knowledge to the adaptive development , improvement
and reinforcement of such organizational features as the strategies,
structures, processes, people and cultures that lead to organizational
effectiveness.

The characteristics of O.D. are:
1. It is a system-wise process
2. It is value-based
3. It is collaborative
4. It is based on behavioral science knowledge
5. It is concerned with strategies, structures, processes, people and culture
6. It is about organizational effectiveness
Objectives of Organizational Development Program:

1.Individual and group development.
2. Development of organization culture and processes by constant interaction
between members irrespective of levels of hierarchy.
3.Inculcating team spirit.
4.Empowerment of social side of employees.
5.Focus of value development.
Role of Organizational Development:
To place emphasis on humanistic values

To Treat each human being as a complex person

To increase the level of trust among members

To increase the level of enthusiasm at all levels

To increase the level of self & group responsibility in planning

Problems in organizational development:
Discrepancy between ideal and real situations

Lack of open system concept

Resistance to change

Lack of motivation among members

Costly programmes

Values, Beliefs and Assumptions:

A set of values, assumptions, and beliefs constitutes an integral part of OD,
shaping the goals and methods of the field and distinguishing OD from other
improvement strategies.

Most of these beliefs were formulated early in the development of the field, and
they continue to evolve as the field itself evolves.

A belief is- a proposition about how the world works that the individual accepts
as true;- a cognitive fact for the person.

Values are also beliefs, and are defined as Beliefs about what is a desirable or
a good (e.g., free speech) and what is an undesirable or a bad (e.g., dishonesty)
values.

Assumptions are beliefs that are regarded as- so valuable and obviously correct,-
that they are taken for granted, and- rarely examined or questioned. Academy of
Management & Professional Development.


Values, Beliefs and Assumptions..Contd.

Thus, values, assumptions, and beliefs are all:- cognitive facts or
propositions, with- values being beliefs about being good and bad, and-
assumptions being strongly held, relatively unexamined beliefs accepted
as the truth.

Values, assumptions, and beliefs provide structure and stability for people
as they attempt to understand the world around them.

OD values and assumptions developed from:- research and theory by
behavioral scientists, and- from the experiences and observations of
practicing managers.

OD values tend to be humanistic, optimistic, and democratic.

Values, Beliefs and Assumptions..Contd.

Humanistic values proclaim the importance of the individual: respect the
whole person, treat people with respect and dignity, assume that everyone
has intrinsic worth, view all people as having the potential for growth and
development,- these beliefs flow from humanistic values.

Optimistic values post that: people are basically good, that progress is
possible and desirable in human affairs, and that rationality, reason, and
goodwill are the tools for making progress.

Values, Assumptions and Beliefs in OD:

OD Values and Assumptions Early Statements: OD practitioners share a set of
normative goals based on their humanitarian/democratic philosophy:

1. Improvement in interpersonal competence.
2. A shift in values so that human factors and feelings come to be considered
legitimate.
3. Development of increased understanding between and within groups in order to
reduce tensions.
4. Development of more effective team management", that is, the capacity for
functional groups to work more competently.
5. Development of better methods of conflict resolution. Rather than the usual
bureaucratic methods which rely mainly on suppression, compromise, and
unprincipled power, and more rational and open methods of conflict resolution
are sought.
6. Development of organic rather than mechanical systems. This is a strong
reaction against the idea of organizations as mechanisms in which managers
work on, like push buttons.
Top values associated with O. D. today:

1. Increasing effectiveness and efficiency
2. Creating openness in communication
3. Empowering employees to act
4. Enhancing productivity
5. Promoting organizational participation

Values considered to be most important:

1. Empowering employees to act
2. Creating openness in communication
3. Facilitating ownership of process and outcome
4. Promoting a culture of collaboration
5. Promoting inquiry and continuous learning
Process of Organisational Development
Evaluation/ Program Management
Intervention
Planning Strategy for Change
Problem Identification & Diagnosis
Managing the OD Process:
Three basic components of OD programs:
Diagnosis Continuous collection of data about total system,
its subunits, its processes, and its culture
Action/ Intervention All activities and interventions designed to
improve the organizations functioning
Program Management All activities designed to ensure success of the
program
O.D. Process: Diagnosis, Action & Program Management
The O.D. process consists of three components - diagnosis, action and program
management.
Diagnosis component consists of continuous collection of data about the total
system, its sub-units its processes, and its culture.
The action component consists of all the activities and interventions designed
to improve the organizations functioning.
The program management component is designed to ensure success of the
program.

Diagnosis involves:
1. What are its strengths?
2. What are its problems?
3. What are its unrealized opportunities?
4. Discrepancy between desired situation and current situation?
O.D. Process..Contd.

Action Plans are developed to correct problems, seize opportunities and
maintains areas of strengths. These are interventions specifically to address
issues at the individual, group, inter-group, or organizational levels.

Results- this stage consists of a fact-finding about the results of the actions. Did
they have the desired effects? Have the problems been solved or the
opportunities exploited?

The process is diagnosis-action-evaluation-action.
An O. D. Program thus starts with diagnosis and employs data collecting and
data analyzing throughout. These activities are required to provide an accurate
account of things as they are needed for two reasons-first to know the state of
things or what is: the second is to know the effects or consequences of actions.
The first area of diagnosis is that of various sub-systems of the total organization
e.g. teams
The second area are the organizational processes e.g. decision-making
communication styles , relationships between groups, management of conflicts,
setting of goals and planning methods.
Diagnosis:

The purpose of a diagnosis is to identify problems facing the organization
and to determine their causes so that management can plan solutions.

Aimed at providing rigorous analysis & data on structure, administration,
instruction, procedures, interfaces & other essential elements of the client
system.
Diagnosis then provides a basis for structural, behavioral, technical
interventions to improve organizational performance.
To make sound diagnosis it is important to have valid information about the
situation.
Reliance on valid information about current problems & possible
opportunities of improvement.
Organizational Diagnosis is an effective ways of looking at an organization
to determine gaps between current and desired performance and how it can
achieve its goals.
Interventions:

OD interventions are sets of structured activities in which selected
organizational units engage in a series of tasks which will lead to organizational
improvement.
Interventions are actions taken to produce desired changes.
There are one of four reasons why there is need for OD interventions:
1. The organization has a problem- some thing is broken, and corrective
actions need to be taken i.e. it needs to be fixed.
2. The organization sees an unrealized opportunity: something it wants is
beyond its reach. Enabling actions- interventions- are developed to seize
the opportunity.
3. Features of the organization are out of alignment: parts of the organization
are working at cross-purposes. Alignment activities- interventions- are
developed to get things back in tune.
4. The vision guiding the organizational changes: yesterdays vision is no
longer good enough. Actions to build the necessary structures, processes,
and culture to support the new vision- interventions- are developed to make
the new vision a reality.
Thus, OD interventions are planned sets of actions to change situations.
Interventions..Contd.

Generally OD interventions follow a well-planned overall OD strategy and get
revealed as events unfold and are answers to the following questions:
1. What are the change/improvement goals of the program?
2. What parts of the organization are most receptive to the OD program?
3. What are the key leverage points (individual or group) in the organization
4. What are the most pressing problems in the client organization?
5. What resources are available for the program in terms of client time and
energy and internal and external facilitators?

With the help of the above questions the OD practitioner would be able to
formulate his game plan and sequence of interventions etc.
Furthermore, OD has two goals- one educational and the other
accomplishing a task/goal.
Normally learning takes place in one setting e.g. a classroom whereas
action takes place at the workplace. Secondly, OD deals with real life
problems and uses several learning models.
Steps to Successful Organizational Transformation/ Program
Management:

1. Establishing a sense of urgency
-Examining market and competitive realities
-Identifying and discussing crises, potential crises, or major opportunities
2. Forming a powerful guiding coalition
-Assembling a group with enough power to lead the change effort
-Encouraging the group to work together as a team
3. Creating a vision
-Creating a vision to help direct the change effort
-Developing strategies for achieving the vision
4. Communicating the vision
-Using every vehicle possible to communicate the new vision and strategies
-Teaching new behaviors by the example of the new coalition
5. Empowering others to act on the vision
-Getting rid of obstacles to change
-Changing systems or structures that seriously undermine the vision
-Encouraging risk taking and non-traditional ideas, activities, and actions