ORGANIZATIONAL DEVELOPMENT

Definition:

Organizational Development (OD) is the systematic application of behavioral science at various levels(groups, intergroup and total organization) to bring about planned change.

Objective:

OD includes a higher quality of work life, productivity, adaptability and effectiveness.

It changes all parts of the organization in order to make it more humanly responsive, more effective and more capable of organizational learning and self renewal.

It relies on a systems orientation, casual models and a set of key assumptions.

Foundations of OD:

They are three types of functions in OD, Systems Orientation Understanding Causality Assumptions Underlying Organization

Development

1. SYSTEMS ORIENTATION:

In modern society, change is so abundant that organizations needs all their parts working together in order to solve the problems.

Maintaining coordinating effort among their parts is difficult in some large organizations.

OD is concerned with the interplay of structures, technology, and people.

Contd… OD is concerned with the behavior of

employees in different departments and locations.

It focuses on answering the question, ”How effective are all these parts as they combine to work together?”.

2. UNDERSTANDING CAUSALITY:

Contribution of the systems orientation is to help managers to view their organizational processes in terms of a model with three types of variables.

Causal variable. Intervening variable and End – result variables.

Causal variables

They are the significant ones, because they affect both intervening and end-result variables.

Causal variables are the one that management can change most directly; that include organizational structure, controls, policies, training, a board range of leadership behaviors, and OD efforts.

Intervening variables

Which are immediately affected by the causal variables.

They include employee attitudes, perceptions, motivation, and skilled variables, as well as teamwork and even intergroup relationships.

End-result variables

Represents the objectives sought by management.

They usually include improved productivity, increased sales, lower costs, more loyal customers, and higher earnings. They represent the reason that OD program was initiated.

Variables in OD approach

CAUSAL VARI

ABLE

Organizations structuresControlsPolicies TrainingLeadership behaviorOrganization development

Interveni

ng variabl

es

AttitudesPerceptionMotivationSkilled behaviorTeam workInter-group relations

End-result variabl

es

Improved productivityIncreased salesLower costsCustomer loyaltyHigher earnings

Characteristics of OD

Characteristics of OD differ frequently from traditional change. They are already designed and presented.

Humanistic values Use of a change agent Problem solving Interventions at many levels Contingency orientation

Humanistic values

OD is based on humanistic values, which are positive beliefs about the potential and desire for growth among employees.

To be effective and self renewing, an organization needs employees who wants to expand their skills and increase their contribution.

Contd…

Best situation for such growth is one that stresses collaboration, open communication, interpersonal trust, shared power and constructive confrontation.

Use of a change agents:

OD generally use one or more change agents, whose role is to stimulate, facilitate and co-ordinate change. The change agents usually acts as a catalyst while others are independent of it. Change agents may be 1.external or 2. internal.

Advantages of using external change agents are: usually a consultants of other company, they are more objectives and have desire experiences. They are able to operate independently without ties to the hierarchy and politics of the firm.

Problem solving

Participants identify the problem and to solve.

The process of using research to guide action, which generates new data as the basis of new actions, is known as action research or action science.

OD process

Diagnosis

Data collection

Data feedback

Action planning

OD intervention

Evaluation and follow-

up

Benefits of OD

Change throughout organization Greater motivation Increased productivity Better quality of work Higher job satisfaction Improved teamwork Better resolution of conflict Commitment to objectives Increased willingness to change Reduced absences Lower turnover Creations of learning individuals and group.

Limitations of OD

Major time requirements Substantial expense Delayed payoff period Possible failure Possible invasion of privacy Possible psychological harm Potential conformity Possible conceptual ambiguity Difficulty in evaluation Cultural incompatibility.

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