Organizational Change &

Development

UNIT IV
FOUNDATIONS OF
ORGANIZATION
DEVELOPMENT
1-1
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After studying this chapter you should be able
to:

1. Defining OD,
2. characteristics of OD,
3. Nature and Scope of OD,
4. Objectives of OD ,
5. value, Assumptions and in OD,
6. Benefits and Limitations of OD
7. Competencies and Ethics of OD Practitioner

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Introduction
 What makes one organization a winner, whereas
another fails to make use of the same
opportunities? The key to survival and success lies
not in rational, quantitative approaches, but rather
in a commitment to irrational, difficult-to-measure
things like people, quality, customer service, and
most important, developing the flexibility to meet
changing conditions. Employee involvement and
commitment is the true key to successful change.
 Organizations are using OD techniques to increase
their effectiveness and their adaptability to
changing conditions.

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Cont’d
 The concept of Organizational Development was
originated in 1950’s and 1960’s. It was popularized
by theories like Blake and Mouton, Sphepard and
Bectihard.
 The basic, purpose of Organizational Development
is to alter each employee’s entire formal or informal
role set to support the change.
 Due to organizational Development the
organizational can better adapt to the technology
and line with the fast pace of change. It is just like
a training to the employees to mold themselves in a
planned way so that necessary changes may be
introduced in the organisation without much
resistance from workers.
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Cont’d
 Organizational development is an acronym of two
words i.e., organization and development.
 Organization: A social unit of people that
is structured and managed to meet a need or to
pursue collective goals.
 Development: The systematic use of scientific
and technical knowledge to meet specific objectives
or requirements.
 ORGANIZATION DEVELOPMENT:
 Organization development (OD) is a deliberately
planned effort to increase an organization's relevance
and viability.
 Organizational Development (OD) aims to create
long-lasting positive changes in an organization’s
culture, structure, systems, and processes.
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Organizational Development is-----

 a system wide application and transfer of behavioral

science knowledge to the planned development,
improvement, and reinforcement of the strategies,
structures, and processes that lead to organization
effectiveness.
 Techniques or programs to change people and the
nature and quality of interpersonal work
relationships.
 A collection of planned interventions, built on
humanistic-democratic values, that seeks to improve
organizational effectiveness and employee well-
being.
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The Need for Development
 Changing nature of the workforce
 Rapidly changing technology
 Economic changes
 Changes in social trends

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Why Study OD ?
 Can improve individual performance
 Create better morale

Increase organizational profitability

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 Definition of Organization Development
 OD is an effort (1) planned, (2) organization-wide, and (3)
managed from the top, to (4) increase organization effectiveness
and health through (5) planned interventions in the
organization’s “processes,” using behavioral science knowledge.
Richard Beckhard
 Organisation Development (OD) is a complex strategy intended
to change the beliefs, attitudes, values, and structure of
organizations so that they can better adapt to new technologies,
markets, and challenges. Warren Bennis
 OD is a systematic application of behavioral science knowledge
to the planned development and reinforcement of organizational
strategies, structures and processes for improving an
organization's effectiveness. Cummings and Worley

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Cont’d
 OD is a planned process of change in an
organization’s culture through the utilization of
behavioral science technology, research, and
theory. Burke
 OD refers to a long-range effort to improve an
organization’s problem-solving capabilities and its
ability to cope with changes in its external
environment with the help of external or internal
behavioral-scientist consultants. French

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The Defining Characteristics of OD

1. OD focuses on culture and processes.

2. OD focuses on the human and social side of the
organisation.
3. OD realize on the action research model with
extensive participation by client system participation.
4. OD takes a developmental view that aims at the
betterment of both individual and the organisation
i.e., “win-win” solutions. 
5. It encourages the involvement and participation by
all the level of organisation in the problem solving
and decision-making.

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 Nature and Scope of OD
1. OD is a Long-term Effort: which means that
organizational change and development take long
time in fact it is a never ending journey of continuous
change for organisation effectiveness.
2. Supported by Top Management: The OD programmers
seeks the serious attention and commitment from the
top management for achieving it’s objectives of
improvements.
3. OD is a Learning Process: which means the process
of interaction, listening and self-examining which
facilitates individual, team and organizational learning.
4. OD is visioning Processes: which mean the
organisation members develop a picture of the desired
future that includes the humanistic approach to make
that picture a reality.
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Cont’d
5. OD is an Empowerment Process: which means those
leadership behaviors and human resource practices
that enable organisation members to develop and
use their talents as fully as possible towards
organizational growth and success.
6. System Context: OD deals with a total system — the
organisation as a whole, including its relevant
environment — or with a sub-system or systems —
departments or work groups — in the context of the
total system.
7. Improved Organizational Performance: The objective
of OD is to improve the organization's capacity to
handle its internal and external functioning and
relationships

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Objectives of OD
 According to Somil Aseeja, the objective of OD is:
1. To increase the level of inter-personal trust among
employees.
2. To increase employee's level of satisfaction and
commitment.
3. To confront problems instead of neglecting them.
4. To effectively manage conflict.
5. To increase cooperation among the employees.
6. To increase the organization problem solving.
7. To put in place process that will help improve the
ongoing operation of the organization on a continuous
basis.

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Five Stems of OD Practice
Laboratory Training

Current Practice
Action Research/Survey Feedback

Normative Approaches

Quality of Work Life

Strategic Change

1950 1960 1970 1980 1990 2000 Today

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Assumptions and Values in OD
 OD Assumptions
People react to how they are treated. (Better treatment
results in better productivity.)
1. Work must meet the individual’s needs and the organization's
needs.
2. Most people are motivated by challenging and meaningful
work; not controls threats and punishment.
3. Organizations suppress feelings, but this also suppresses
commitment.
4. Groups that learn to work using open and constructive
feedback become better able to be productive.
5. People work best in supportive and trusting environments.
6. Change is best implemented when people are part of the
change process.
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 Cont’d
 OD Values
1. Respect People: People are the heart, limbs and
brain of the organization. Hence they must be
treated with respect and dignity.
2. Confidence and Support: Organizations are made
up of people and they are to be believed and
supported in order to have effective organisation.
3. Confrontation: Any conflict on any issue should
not be suppressed. It should be dealt with openness.
4. Employee Participation: The participation of
employees who will be affected by the OD should be
sought in decision-making.
5. Power equalization: Effective organizations
deemphasize hierarchal authority and control.
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Benefits of OD
 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

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Limitations of OD
 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
 Conceptual ambiguity is possible.

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The Organization Development
Practitioner
 Internal and External Consultants
 Professionals from other disciplines who
apply OD practices (e.g., TQM managers,
IT/IS managers, compensation and benefits
managers)
 Managers and Administrators who apply OD
from their line or staff positions

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Competencies of an OD
Practitioner
 Intrapersonal skills
 Self-awareness

 Interpersonal skills
 Ability to work with others and groups

 General consultation skills

 Ability to manage consulting process

 Organization development theory

 Knowledge of change processes

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Competencies of an OD Practitioner
 Intrapersonal Skills or Self-Management Competence
1. Must process complex, ambiguous information and make
informed decisions about its relevance to organizational issues.
2. Know one's values, feelings, and purposes
 Interpersonal Skills
1. Ability to create and maintain effective relationships with
individuals and groups
2. Practice of "active listening" skills to understand others
perspectives and feelings
3. Serve as a credible role model for others to learn new skills and
behaviors
 General Consultation Skills
1. Ability to manage the consulting process
2. Ability to design and execute interventions
3. Know how to carry out an effective diagnosis in an organization

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Professional Ethics
 Ethical Guidelines
 Ethical Dilemmas
 Misrepresentation
 Misuse of Data
 Coercion
 Value and Goal Conflicts
 Technical Ineptness

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 A Model of Ethical Dilemmas
Antecedents Process Consequences
Role of
Role Episode Ethical Dilemmas
the
Change
Values Agent • Role conflict •
Goals • Role ambiguity Misrepresentation
Needs • Misuse of data
Abilities Role of • Coercion
the • Value and goal
Client conflict
System • Technical
ineptness

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Approaches to Organization Change & Development

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