ORGANIZATIONAL

DEVELOPMENT
DR.PRAMOD M
Meaning of Organisational Development
(O.D):
■ Organisational (or organization) Development or simply O.D. is a technique of planned
change. It seeks to change beliefs, attitudes, values and structures-in fact the entire
culture of the organization—so that the organization may better adapt to technology and
live with the pace of change.
■ O.D. is a comprehensive strategy for organization improvement.
■ O.D. is a long range effort to improve an organization’s problem solving and renewal
processes, particularly through a more effective and collaborative management culture.
Meaning of Organisational Development
(O.D):
■ R. Beckhard defines O.D. as a change strategy which is:
– (i) Planned.
– (ii) Organization-wide.
– (iii) Managed from the top to increase organization effectiveness and health through
planned interventions in the organization’s processes, using behavioural science
knowledge.
Objectives
■ Objectives of Organisational Development:
– (a) Improvement in the performance of the organisation.
– (b) Improvement in the ability of the organisation to adapt to its environment, and
– (c) Improvement in inter-personal and inter-group behaviour to secure team work.
Characteristics of Organisational
Development:
■ 1. Organisational development is an educational strategy for bringing a planned change.
■ 2. It is related to real problems of the organisation.
■ 3. Laboratory training methods based on experienced behaviour are primarily used to
bring change.
■ 4. O.D. uses change agent (or consultant) to guide and affect the change. The role of
change agent is to guide groups towards more effective group processes rather than
telling them what to do. Change agents simply assist the group in problem solving
processes and the groups solve the problems themselves.
■ 5. There is a close working relationship between change agents and the people who are
being changed.
■ 6. O.D. seeks to build problem-solving capacity by improving group dynamics and
problem confrontation.
Characteristics of Organisational
Development:
■ 7. O.D. reaches into all aspects of the organization culture in order to make it more
humanly responsive.
■ 8. O.D. is a long term approach (of 3 to 5 years period) and is meant to elevate the
organization to a higher level of functioning by improving the performance and
satisfaction of organization members.
■ 9. O.D. is broad-based and describes a variety of change programmes. It is concerned not
only with changes in organizational design but also with changes in organizational
philosophies, skills of individuals and groups.
■ 10. O.D. is a dynamic process. It recognises that the goals of the organization change and
hence the methods of attaining them should also change.
Characteristics of Organisational
Development:
■ 11. O.D. utilizes systems thinking. It is based on open, adaptive systems concept. The
organization is treated as an interrelated whole and no part of the organization can be
changed without affecting other parts.
■ 12. O.D. is research based. Change agents conduct surveys, collect data, evaluate and
then decisions are taken.
■ 13. O.D. uses group processes rather than individual process. It makes efforts to
improve group performance.
■ 14. O.D. is situational and contingency oriented.
■ 15. Organization Development and Management Development are complementary
rather then con­flicting.
Org. development and Mgmt Development
Steps in Organisational Development (O.D):
■  Lawrence and Lorsch have provided the following steps in organisational development:-
■ 1. Problem identification—Diagnosis:
– O.D. program starts with the identification of the problem in the organisation. Correct diagnosis of
the problem will provide its causes and determine the future action needed.
■ 2. Planning Strategy for Change:
– O.D. consultant attempts to transform diagnosis of the problem into a proper action plan involving
the overall goals for change, determination of basic approach for attaining these goals and the
sequence of detailed scheme for implementing the approach.
■ 3. Implementing the Change:
– O.D. consultants play an important role in implementing change.
■ 4. Evaluation:
– 0. D. is a long-term process. So there is a great need for careful monitoring to get process feedback
whether the O.D. programme is going on well after its implementation or not. This will help in
making suitable modifications, if necessary
Planned Change
■ Bringing change in a planned manner is the prime responsibility of all
managers who are forward looking. Planned change aims to prepare the total
organization to adapt the significant changes in the organization’s goals &
direction.
■ “Planned change is deliberate design & implementation of a structural
innovation, a new policy or goal, or a change in operating philosophy,
climate or style”.
■ Planned change attempts at all aspects of the organization which are closely
interrelated; technology, task, structure, people.
Technology related change
■  Technology refers to the sum total of knowledge providing ways to do
things.
■ It may include invention & techniques which affect the way of doing things,
ie., designing, producing, distributing products. Technology related changes
may include:
– Changing problem solving & decision making procedures
– Introduction of automated data processing Devices
Task related change
■  Technology related changes determine the types of tasks that may be
number of ways ranging from job simplification to job enrichment. Task
related changes must focus on

– High internal work motivation

– High quality work performance

Structure related change
■  Structural changes redefined nature of relationships among various
organizational positions & may include:

– Changing the no. of hierarchical levels

– Changing one form of organization to another form

– Changing span of management

– Changing line staff & functional authority

People related change
■ Changes of any type as pointed out ie., technology, task & structural
require changes in people in a organization.

■ These changes may be of two types; ie., skills & behavior.

■ For example, If there is a change in technology from manual to automated,

it requires different types of skills in the operators as compared to the
previously used skills.
Process of planned change
■ Management of organizational change is a complex process. Major
organizational change requires considerable planning. The change is
successful if it is taken in planned way which proceeds in a sequential form.

Identifying need for change

Elements to be changed

Planning for change

Assessing change forces

Action for change

Process 1- Identifying need for change
■ The 1st basic step in planned change is to identify when change in
organization is required because change for the sake of change may produce
much stronger resistance while useful & necessary. Though there are
various external forces necessitating change in an organization.
Process 2-  Elements to be changed
■ What elements of the organization should be changed will largely decided
by need & objectives of change.
■ While the process of the identification of change will provide clue why
change should take place, this stage takes the analysis further by diagnosing
the problems caused because of which the change is necessary.
■ For example, declining profit may require change but does not specify what
elements are to be changed. Therefore, it is necessary to diagnose the factors
which are responsible for declining profit. Planning for change At this
stage, managers should plan about how the change can be brought in the
light.
Process 3- Planning for change

■ Planning for change includes who will bring change, when to bring change,
& how to bring change
Process 4- Assessing change forces
■ In a group process, there are some forces favoring change & some opposing
it to maintain equilibrium.
■ In a situation, there are both driving & restraining forces which influence
any change that may occur.
■ Driving forces are those which affect a situation by pushing it in a particular
direction; they tend to initiate a change & keep it go.
■ Restraining forces act to restrain change or to decrease the driving forces.
Equilibrium is reached when the sum of driving forces equals the sum of
restraining forces.
Process 5- Action for change
■ Actions for change comprise three stages:
– Unfreezing
– Changing
– Refreezing
■ Unfreezing is the process in which a person casts aside his old behavior which
might be inappropriate, irrelevant, or inadequate to the changing demands of
the situation.
■ Changing is the stage at which the individual being changed learn new
behavior methods of working, new thinking, perception of new roles, etc.
■ Refreezing means that what has been learned is integrated into actual practice.
At this stage, the individuals internalize the new beliefs, feelings, & behavior
learned during the changing phase. They adopt these elements as a permanent
part of their behavior repertoire.
Resistance to change
■ Resistance to change is understood to be a natural phenomenon. But not all change is
resisted
■ Accepting the fact that people have a natural instinct to adapt to their environment is the
first step towards effective management of change
■ Failure to understand this characteristic of resistance can cause many managers to
attempt to run through changes rather than try to understand the sources of the resistance
■ Sources of resistance to change may be rational or emotional.
– Rational resistance occurs when people do not have the proper knowledge or
information to evaluate the change.
– Emotional resistance involves the psychological problems of fear, anxiety,
suspicion, insecurity, and the like. These feelings are evoked because of people’s
perception of how the change will affect them.
Causes of Resistance
■ All changes are not resisted. Some are wanted by the workers. For instance, if the
workers have to stand before a machine throughout the shift, they will like the
introduction of a new machine which will allow them to sit while working. Thus,
resistance to change is offset by their desire to have better working conditions.
■ Sometimes, people themselves want change and new experience as they are fed up
with the old practices and procedures.
■ Resistance to change is caused by individual’s attitudes which are influenced by many
economic, psychological and social factors
■ Economic Factors
■ Psychological Factors
■ Social Factors
Causes of Resistance….Economic Factors
■ These factors relate to the basic economic needs of the workers like necessities of life,
job security and safety.
■ These factors are:
– (i) Workers apprehend technological unemployment. General new technology is
expected to reduce the proportion of labour input and, therefore, people resist such
change as it will affect their jobs security;
– (ii) Workers fear that they will be idle for most of the time due to increased
efficiency by new technology;
– (iii) Workers may fear that they will be demoted if they do not possess the new skills
required for the new jobs; and
– (iv) Workers resist the change of getting higher job standards which may reduce
opportunity for bonus or pay incentive.
Causes of Resistance…. Psychological Factors
■ These factors arise when workers perceive that factors relating to their psychological needs will be
affected adversely by the proposed changes. These needs are sense of pride, achievement, self-fulfilment,
etc.
■ These factors are
– (i) Workers may not like criticism implied in a change that the present method is inadequate and
unsuitable;
– (ii) Workers may fear that there will be fewer opportunities for developing their personal skills
because new work changes will do away with the need for much manual work. This will lead to
reduction of their personal pride;
– (iii) Workers may apprehend boredom and monotony in the new jobs as a result of specialisation
brought by the new technology;
– (iv) They may fear that harder work will be required to learn and adapt to new ideas;
– (v) Workers may resist a change because they do not want to take trouble in learning the new
things; and
– (vi) Workers may not have the knowledge of entire change or they may be incapable of the
implications of new ideas or methods.
Causes of Resistance…. Social Factors
■ Individual do have certain social needs like friendship, belongingness, etc. for the
fulfilment of which they develop informal relations in the organisation. They become
members of certain informal groups and act as members of the group to resist change.
■ The social reasons for resistance to change are:
– (i) New organisational set up requires new social adjustments which are not liked
by people because these involve stresses and strains. This also means discarding
old social ties which is not tolerable to the workers.
– (ii) Workers are carried by the fear that the new social set-up arising out of the
change will be less satisfying than the present set up.
– (iii) Workers also resist the changes which are brought abruptly and without
consulting them.
Symptoms of Resistance
■ How does resistance to change manifest itself? There are several ways. But it does not mean that these
symptoms always indicate resistance.
■ Sometimes they may be indicators of other difficulties in the organisation.
– 1. Hostility or aggression is the immediate reaction of an individual to change. The hostility may only
be expressed verbally, in the way the individual strikes at the boss, a fellow workers, or even at
subordinates, but hostility and aggression can also take physical forms where the striking out is of a
more intense character.
– 2. The individual may develop apathy towards his work. He loses interest in his work. There is more
spoilage of materials, excessive idling of time, and decline in performance.
– 3. Absenteeism and tardiness are often signs of resistance. Perhaps these are forms of apathy or
attempts on the part of the individual to escape his work environment. Separation, for example, may
be an extreme illustration of this attempt to escape.
– 4. The development of anxiety and tension is a sure sign that resistance exists. The individual finds
himself uncomfortable, shaky, and tensed up on his job.
– 5. At the group level additional signs of resistance are exhibited. Slow downs and strikes are the
usual symptoms of group resistance.
Symptoms of Resistance
■ Another strategy adopted by a group to resist change is “restriction of output”.
■ Often great care is exercised in timing operations, setting standards, and otherwise
working out details of a wage incentive system, and yet at least part of the work group
forms into an informal group, under a leader of its own choice.
■ This group decides what a fair days work is and develops methods of keeping the non-
conformist in line.
■ The individual who starts to respond to the incentive is held in a check by sanctions
which the informal group is able to bring to bear against him.
Benefits of Resistance
■ It may encourage the management to re-examine its change proposals so that they are
appropriate
■ the management may be encouraged to do a better job of communicating the change, an
approach that in the long-run should lead to better acceptance.
■ Resistance also gives management information about the intensity of employee
emotions on an issue, provides emotional release for pent up employee feelings, and
may encourage employee to think and talk more about a change so that they understand
it better