UNIVERSIDAD AUTÓNOMA DE YUCATÁN

FACULTAD DE ECONOMÍA
ORGANIZATIONAL CULTURE & LEADERSHIP
L.C.I. JOSUE OMAR VERDEJA DORANTES, M.P.A.D.O.
Value and Organizational Development – Part I

ORGANIZATION DEVELOPMENT (OD)

Definition: Organizational development (OD) is a field of applied behavioral science focused on

understanding and managing organizational change to increase an organization's effectiveness and
health. It involves planned interventions in the organization’s processes using a systematic
approach and behavioral science knowledge.

Why Choose OD?

Enhanced Organizational Health: OD promotes a healthier work environment by addressing issues

like employee morale, collaboration, and job satisfaction.

Improved Performance: By targeting inefficiencies and bottlenecks, OD helps in streamlining

operations, leading to better organizational performance.

Adaptability: In an ever-evolving business landscape, OD ensures that organizations remain flexible

and adaptable to external changes.

Employee Development: OD places emphasis on human potential and can provide avenues for
training, development, and growth of employees.

Conflict Resolution: OD techniques can be instrumental in resolving interpersonal and inter-

departmental conflicts, leading to a more harmonious workplace.

Systematic Change Management: OD provides a structured framework for managing change,

ensuring smoother transitions with fewer disruptions.

Internal vs. External Practitioners:

Internal Practitioners: Employees within the organization who are trained or specialized in OD.
They could be HR professionals, managers, or a dedicated OD team.

Advantages:

• Deep understanding of the organization's culture, history, and internal dynamics.

• Established relationships with other employees, which can facilitate trust and
communication.
• Cost-effective in the long run as they are already part of the payroll.

Disadvantages:

• Potential bias as they are part of the organization.

• Might face resistance from peers when implementing change.
• May lack exposure to a variety of organizational issues compared to external practitioners.

External Practitioners: Specialists or consultants from outside the organization hired for their OD
expertise.
 UNIVERSIDAD AUTÓNOMA DE YUCATÁN
FACULTAD DE ECONOMÍA
ORGANIZATIONAL CULTURE & LEADERSHIP
L.C.I. JOSUE OMAR VERDEJA DORANTES, M.P.A.D.O.
Value and Organizational Development – Part I

Advantages:

• Bring fresh perspectives and solutions that might not be apparent to internal teams.
• Less likely to have biases related to the company's history or politics.
• Broad experience from working with various organizations can be beneficial.

Disadvantages:

• May take time to understand the unique challenges and dynamics of the organization.
• Might be more expensive than using internal resources.
• Potential lack of long-term commitment to the organization once the consultancy period is
over.

Choosing between internal and external practitioners will largely depend on the specific needs,
budget, and objectives of the organization. Sometimes, a combination of both can provide a
balanced approach to OD.

Elements of the OD Concept:

Planned Effort: OD is not spontaneous or random; it involves a systematic and intentional strategy
designed to bring about desired changes in the organization.

Organization-wide: Rather than focusing on isolated units or functions, OD targets the entire
organization to ensure that changes are cohesive and aligned with the broader corporate vision.

Managed from the Top: Successful OD initiatives are led and endorsed by top management. Their
commitment is essential to ensure that change is accepted and implemented throughout the
organization.

Increase Organization Effectiveness: The primary objective of OD is to boost the performance and
efficiency of an organization. This includes refining processes, enhancing employee skills, and
improving overall productivity.

Behavioral Science Intervention: OD leverages knowledge from behavioral sciences (like

psychology, sociology, and anthropology) to understand human behavior in organizations.
Interventions may include training programs, team-building exercises, and leadership development
strategies.

Key Characteristics of OD:

Change: OD revolves around planned, purposeful modifications. These alterations are driven by
specific objectives and are grounded on an accurate diagnosis of areas that require transformation.

Collaborative Approach: OD emphasizes teamwork and partnership. Employees at all levels

collaborate in the change process, ensuring that those affected by alterations are also participants
in crafting the solution.
 UNIVERSIDAD AUTÓNOMA DE YUCATÁN
FACULTAD DE ECONOMÍA
ORGANIZATIONAL CULTURE & LEADERSHIP
L.C.I. JOSUE OMAR VERDEJA DORANTES, M.P.A.D.O.
Value and Organizational Development – Part I

Performance Orientation: The focus of OD is not just change for its own sake but change that leads
to heightened performance and quality. It’s result-driven, with clear metrics to gauge
improvements.

Humanistic Orientation: OD recognizes the importance of the individual. It values human potential
and seeks to create organizations where people can thrive, grow, and find personal and
professional fulfillment.

Systems Approach: OD views organizations as a system of interrelated parts. Changes in one part
can impact others, so the approach ensures all components harmoniously align.

Scientific Method: OD relies on evidence-based strategies. Interventions are grounded in data, and
regular feedback loops are established to assess the effectiveness of implemented changes and to
make necessary adjustments.

Case Study: Adapting to Change – The Tale of Two Companies

In the heart of Silicon Valley, two tech firms, AlphaTech and BetaSoft, embarked on
transformational journeys, both aiming to evolve in a rapidly changing digital world. Despite being
founded around the same time and facing similar challenges, their paths to adapt to change starkly
differed. In AlphaTech the process went as follows:

Elements of OD in AlphaTech

1. Planned Effort: AlphaTech’s CEO, Lisa, recognized the need for a company-wide evolution. She
meticulously planned a roadmap, outlining the timeline, key milestones, and stakeholders'
responsibilities.

2. Organization-wide: Every department, from R&D to marketing, was involved. Monthly townhalls
were initiated to discuss challenges and progress.

3. Managed from the Top: Lisa collaborated closely with her leadership team to monitor the
transition, ensuring the alignment of company objectives.

4. Increase Organization Effectiveness: By focusing on streamlining processes, improving team

collaborations, and fostering innovation, AlphaTech aimed to enhance its overall productivity.

5. Behavioral Science Interventions: Lisa brought in OD consultants who employed behavioral

science techniques, holding workshops, and training sessions to understand employee motivations
and tailor interventions accordingly.

Key Characteristics of AlphaTech's OD:

• Change: Addressing specific objectives based on identified problem areas, such as declining
employee morale and stagnating product innovation.
• Collaborative Approach: Employees at all levels were engaged, ensuring that those affected by
the changes were active participants in the process.
 UNIVERSIDAD AUTÓNOMA DE YUCATÁN
FACULTAD DE ECONOMÍA
ORGANIZATIONAL CULTURE & LEADERSHIP
L.C.I. JOSUE OMAR VERDEJA DORANTES, M.P.A.D.O.
Value and Organizational Development – Part I

• Performance Orientation: New metrics were introduced to gauge performance improvements

and quality enhancement.
• Humanistic Orientation: Leadership training programs emphasized the importance of
employee well-being and growth.
• Systems Approach: Interdepartmental meetings ensured collaboration and understanding of
the organization as a unified entity.
• Scientific Method: Periodic surveys and feedback mechanisms were used to gather data and
refine the OD interventions.

By the end of the transformational year, AlphaTech saw a 25% increase in productivity and a
significant boost in employee morale.

Elements of OD in BetaSoft

1. Planned Effort: While BetaSoft’s CEO, Tom, recognized the need for change, his plans were
sporadic and often impulsive, lacking a clear roadmap.

2. Organization-wide: Changes were mostly restricted to specific departments, creating a

disconnect in the company's vision.

3. Managed from the Top: Tom was often too engrossed in day-to-day operations, handing off the
transformational efforts to mid-level managers without clear directives.

4. Increase Organization Effectiveness: BetaSoft tried to adapt to new technologies but lacked a
unified approach to streamlining their operations.

5. Behavioral Science Interventions: Though BetaSoft hired consultants, their suggestions were
often disregarded or only partially implemented.

Key Characteristics of BetaSoft's OD:

• Change: Without a clear diagnosis of problem areas, change efforts were misdirected.
• Collaborative Approach: The top-down approach limited employee engagement, breeding
resistance to change.
• Performance Orientation: Without new metrics, there was no clarity on what 'improvement'
looked like.
• Humanistic Orientation: Employee well-being was often overlooked, leading to increased
turnover rates.
• Systems Approach: Siloed departments led to miscommunication and redundancy.
• Scientific Method: Feedback was rarely collected, and when it was, it was not acted upon.

By the year's end, BetaSoft had lost valuable talent and saw a decline in its market share.
 UNIVERSIDAD AUTÓNOMA DE YUCATÁN
FACULTAD DE ECONOMÍA
ORGANIZATIONAL CULTURE & LEADERSHIP
L.C.I. JOSUE OMAR VERDEJA DORANTES, M.P.A.D.O.
Value and Organizational Development – Part I

Instructions: Creating a Comparison Table of AlphaTech and BetaSoft's OD Strategies

1. Introduction:

Comapare the OD strategies of AlphaTech and BetaSoft using a table format (1 page).

2. Table Setup:

Create a table with the following columns:

• Aspects (Key areas to compare)

• AlphaTech (Key points of AlphaTech's OD strategy)
• BetaSoft (Key points of BetaSoft's OD strategy)

3. Fill in the Table:

For each aspect, complete the table by summarizing the relevant information for AlphaTech and
BetaSoft. Use keywords:

• Elements of OD
• Key Characteristics of OD

4. Compare and Contrast:

Examine the table and note the differences between AlphaTech and BetaSoft in each aspect.
Highlight the strengths and weaknesses of each company's OD strategy.

5. Lessons Learned:

Summarize the lessons that can be derived from comparing both strategies

6. Conclusion