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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)
DefinitionOrganization 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 • Think of visiting your health care, computer or auto mechanic professional. What is a diagnosis? • What does s/he do to diagnose (Dx) your condition? • What are the uses/purposes of a Dx; What does it allow you to do? • What, therefore, are the criteria for a sound Dx? • 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) Lewin’s Planned Change Model (B) Action Research Model (C) PositiveModel Unfreezing Problem identification Initiate the Inquiry Consultation with Behavioural Science Expert Inquiry into Best Practices Data gathering and Preliminary Diagnosis Feedback to Key Client of Group Movement Discover Themes Joint Diagnosis of Problem Joint Action Plan Envision a Preferred Future Action Design and Deliver Ways to Create the Future Data Gathering after Action 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 Building Activities • Goal and priority setting • Developing interpersonal relations • Role analysis to each member’s role and responsibilities • Team process analysis
Organizational Development Techniques (cont’d) Intergroup Development OD efforts to change the attitudes, stereotypes, and perceptions that groups have of each other • Intergroup Problem Solving: • Groups independently develop lists of perceptions • Share and discuss lists • Look for causes of misperceptions • Work to develop integrative solutions
Open Systems Model Environment • Inputs • Information • Energy • People • Outputs • Goods • Services • Ideas • Transformations • Social Component • Technological • Component Feedback • Source Waddell, Cumming and Worley (2007) Organisation Development & Change. Thomson, South Melbourne Australia
Organisation-LevelDiagnostic Model Outputs Inputs Design Components General Environment Uncertainty in social, technological, economic , ecological and political forces Industry Structure Five forces – suppliers, buyer, threats of entry, threats of substitutes and rivalry among competittors Organisation performance Productivity Stakeholder satisfaction Strategy The way a company uses its resources human economic or technical to gain and sustain competitive advantage Organisation design • Source Waddell, Cumming and Worley (2007) Organisation Development & Change. Nelson, South Melbourne Australia
Group-Level Diagnostic Model Inputs Design Components Outputs Goal Clarity Task Team StructureFunctioning Group Group Composition Norms Team Effectiveness Organisation Design • Source Waddell, Cumming and Worley (2007) Organisation Development & Change. Thomson, South Melbourne Australia
Individual-Level Diagnostic Model Inputs Design Components Outputs skill Variety Task Identity Autonomy Task Feedback Significance about Results Individual Effectiveness Organisation Design Group Design Personal Traits • Source Waddell, Cumming and Worley (2007) Organisation Development & Change. Thomson, South Melbourne Australia