ACHARYA INSTITUTE OF GRADUATE STUDIES

(NAAC Re Accredited ‘A’ Grade & Affiliated to Bengaluru City University)

Soladevanahalli, Bengaluru-560107

DEPARTMENT OF MANAGEMENT
ACADEMIC YEAR 2023-2024 ODD

FACULTY NAME : MANJULA BK

COURSE : BBA
SEMESTER : III SEM
SECTION : D
SUBJECT : ORGANISATIONAL BEHAVOIUR

LECTURE NOTES

MODULE NO. 4: ORGANIZATIONAL DEVELOPMENT

What Is Organizational Development?

Organizational development can be defined as an objective-based methodology
used to initiate a change of systems in an entity. Organizational development is
achieved through a shift in communication processes or their supporting
structure. Studying the behaviour of employees enables professionals to examine
and observe the work environment and anticipate change, which is then effected
to accomplish sound organizational development.
Organization development (OD) is an effort that focuses on improving an
organization's capability through the alignment of strategy, structure, people,
rewards, metrics, and management processes
French and Bell: Organization development is a systematic process for applying behavioral
science principles and practices in organizations to increase individual and organizational
effectiveness.
Schmuck and Miles: Organization development can be defined as a planned and sustained
effort to apply behavioral science for system improvement using reflective and self analytic
methods.

NATURE OF ORGANIZATIONAL DEVELOPMENT

Organizational development (OD) is a dynamic process that focuses on improving the

effectiveness of an organization by enhancing its structures, processes, and people. 😊

The primary goal of OD is to facilitate positive change within an organization, ensuring its
growth, adaptability, and overall success. It involves interventions and strategies aimed at
improving various aspects, such as communication, leadership, teamwork, culture, and
performance.

OD typically involves a systematic approach and considers various factors, including the
organization's goals, values, and external environment. It often includes activities like
organizational assessment, team building, leadership development, change management, and
improving employee engagement.

The nature of organizational development can be characterized by the

following key aspects:

1. Continuous improvement: OD recognizes that organizations need to constantly

evolve and adapt to remain competitive in a changing world. It emphasizes ongoing
learning, innovation, and the development of new skills and practices.
2. Systemic focus: OD views organizations as complex systems with interconnected
parts. It takes a holistic approach, considering the interrelationships between different
elements and how changes in one area can affect others. It aims to create synergy across
departments and align organizational systems for improved performance.
3. Participatory approach: OD values the active involvement and participation of
employees at all levels. It promotes collaboration, open communication, and a sense of
ownership among individuals, teams, and the organization as a whole. This
involvement helps foster a positive and inclusive culture.
 4. Evidence-based practice: OD relies on data and evidence to inform decision-
making and interventions. It emphasizes the importance of collecting and analyzing
relevant information to identify areas for improvement, set goals, and measure progress
over time.
5. Change management: OD recognizes that change is a constant in organizations
and helps managers and leaders effectively navigate and manage change processes. It
provides frameworks and methodologies to facilitate smooth transitions, minimize
resistance, and maximize the chances of successful implementation.

Overall, the nature of organizational development is dynamic, collaborative, and forward-

looking, aiming to enhance organizational effectiveness, employee satisfaction, and overall
performance.

Organizational Development – Process (With 7 Steps)

The OD process is complicated and it takes long time to complete the process. It takes
minimum of one year and sometimes continues indefinitely. There are different approaches to
OD process but the typical process consists of seven steps, viz., initial diagnosis, data
collection, data feedback and confrontation, action planning and problem solving, team
building, intergroup development and evaluation and follow-up.
(1) Initial Diagnosis:
If executives recognise that there are inadequacies within organisation which can be corrected
by OD activities, it is necessary to find out the professional and competent people within the
organisation to plan and execute OD activities.
If competent people are not available within the organisation the services of the outside
consultants to help in diagnosing the problem and developing OD activities are to be taken.
The consultants adopt various methods including interviews, questionnaires, direct
observation, analysis of documents and reports for diagnosing the problem.
(2) Data Collection:
Survey method is used to collect the data and information for determining organisational
climate and identifying the behavioural problems.
(3) Data Feedback and Confrontation:
Data collected are analysed and reviewed by various work groups formed from this purpose in
order to mediate in the areas of disagreement or confrontation of ideas or opinions and to
establish priorities.
(4) Selection and Design of Interventions:
The interventions are the planned activities that are introduced into the system to accomplish
desired changes and improvements. At this stage the suitable interventions are to be selected
and designed.
(5) Implementation of Intervention:
The selected intervention should be implemented. Intervention may take the form of
workshops, feedback of data to the participants, group discussions, written exercises, on-the-
job activities, redesign of control system, etc. Interventions are to be implemented steadily as
the process is not a “one-shot, quick cure” for organisational malady. But it achieves real and
lasting change in the attitudes and behaviour of employees.
(6) Action Planning and Problem Solving:
Groups prepare recommendations and specific action planning to solve the specific and
identified problems by using data collected.
(7) Team Building:
The consultants encourage the employees throughout the process to form into groups and teams
by explaining the advantages of the teams in the OD process, by arranging joint meetings with
the managers, subordinates, etc.
(8) Intergroup Development:
The consultants encourage the intergroup meetings, interaction etc., after the formation of
groups/teams.
(9) Evaluation and Follow-Up:
The organisation evaluates the OD programmes, find out their utility, and develop the
programmes further for correcting the deviations and/or improved results. The consultants help
the organisation in this respect.
All the steps in the OD processes should be followed by the organisation in order to derive full
range of OD benefits.
 Overview of Entering and Contracting
Entering and Contracting Are the initial steps in the OD process they involve defining in a
preliminary manner the organization’s problem or opportunities for development and
establishing a collaborative relationship between the OD practitioner and member of the client
system about how to work on those issues.
Entering into an OD relationship An OD process generally starts when a member of an
organization or in unit contacts an OD practitioner about potential help in addressing an
Organization issue.
Entering into an OD relationship comprises of three elements
• Clarifying the organizational issue
• Determining the relevant client
•Selecting an OD Practitioner

Developing a Contract
The activities of entering an OD relationship are a necessary
Prelude to developing an OD contract. They define the major focus for contracting including
the relevant parties. Contracting is a natural extension of the entering process and clarifies how
the OD process will proceed.
The contracting step in OD generally addresses 3 key areas:
• Mutual Expectations
• Time and Resources
• Ground Rules

Diagnosing:
Meaning of Diagnosing: The diagnosis phase in organisation is often regarded as an
overall organisational development process, but commonly known as consulting process. The
purpose of a diagnosis is to identify problems facing the organisation and to determine their
causes so that management can plan solutions.

In the context of Organizational Development (OD), "diagnosing" refers to the process of

systematically collecting, analyzing, and interpreting data to understand the current state
of an organization. This diagnostic phase is a critical step in the OD intervention process
as it helps identify areas that require improvement, change, or development. The primary
goal of diagnosing is to gain insights into organizational strengths and weaknesses, as well
as to understand the underlying dynamics that influence organizational effectiveness.

Comprehensive Model for Diagnosing Organizational

Systems (Organizational Level, Group Level and Individual Level).

What is the organizational level diagnostic model?

The organizational level diagnostic model is another type of diagnostic model
that looks at an organization from an external or high level viewpoint. Similar models
can be followed at a more detailed level which focus in on group level diagnosis and
individual level diagnosis