UNIT 1

DEFINITION AND INTRODUCTION

TO ORGANISATIONAL
DEVELOPMENT
 Section
Subtitle

Organisation is a
Introduction framework in
which the human
resources
function and
thus has a major
influence on it.
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 Organisational
development can also be
Section
Subtitle

termed as the modern

approach to
Introduction management of change
for human resources
development.
The development of an
organisation thus is a
key issue for the overall
development of the
human resource and to
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enhance the goal
Organisational development can be 20XX

described as a long range effort to

improve organisation’s problem
solving and renewal processes,
particularly through more effective
and collaborative management of
organisational culture, often with the
assistance of a change agent or
catalyst and the use of the theory
and technology of applied
behavioural science.
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 1.2 What is ORGANISATIONAL
DEVELOMENT?

Organisation is the core concept of

organisational development.
Organisation can be defined as two
or more people working together
toward one or more shared goal(s).

Presentation Title 5
 Weisbord presents a sixstep
model for understanding 20XX

organisations:

1. Purposes: 2. Structure: 3. Relationship:

The organisation members How do we divide up Between individual,
are clear about the the work? The question between units or
organisation’s mission and is whether there is an department that perform
purpose and goal adequate fit between different tasks, and
agreements, whether the purpose and the between the people and
people support the internal structure. requirements of their job.
organisation’ purpose.
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 Weisbord presents a sixstep
model for understanding 20XX

organisations:

4. Rewards: 5. Leadership: 6. Helpful

mechanism:
The consultant should Is to watch for blips Is a helpful organisation that
diagnose the similarities among the other boxes must attend to in order to
between what the and maintain balance survive which as planning,
organisation formally among them control, budgeting, and other
reward or punished for information systems that help
doing. organisation member
accomplish.
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 Organisational Development can be
described as the systematic process to
change the culture, system and
behaviour of organisation.
It is process that helps in solving
organisational problems and achieving
organizational objectives.
It works as important mechanism that helps in
impressing the organisation and its employee
through planned and established system.

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 Warran Bennis has referred to
organisational development as a
response to change,
a complex educational strategy
intended to change the beliefs,
attitudes, values, and structure of
organisation so that they can better
adapt to new technologies, marketing
and challenges, and the dizzying rate of
change itself.

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 Organisational development (OD)
can play a vital part in harnessing
the collective talent of an
organisation, bringing about
change and improving
performance.

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 It involves taking planned steps to
create an environment that will
enable the staff to understand and
deliver the organisation’s objectives.
These steps include developing
appropriate skills, behaviours and
attitudes, culture and a style of
leadership that will enable the
organisation to achieve optimum
performance.
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 A clear sense of direction, strong
leadership and a focus on people
management issues including the
management of performance and the
promotion of learning, development,
creativity and innovation are essential.

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 For organisational development to
deliver significant performance
improvement, there is a need to develop
staff with the right skills to help
champion OD throughout the
organisation and encourage wide
participation and ownership of the
continuous improvement process among
staff and other stakeholders.

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 1.3 The definitions of organisationa
development can be classified
in to two categories,
the old definition and new
definition.

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 Old Definition of Organisational
Development
The nature and needs of organisations are
changing dramatically. Correspondingly, the
profession of organisational development
has been changing to meet the changing
needs of organisations.
Therefore, it may be most useful to
consider several definitions of
organisational development.

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 Old Definition of Organisational
Development
“Organisational development is an effort
planned, organisation-wide, and managed
from the top, to increase organisation
effectiveness and health through planned
interventions in the organisation’s
‘processes,’ using behavioural-science
knowledge” (Beckhard, 1969).

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 New Definitions of Organisational
Development
“Organisational development is a
system-wide application of behavioural
science knowledge to the planned
development and reinforcement of
organizational strategies, structures,
and processes for improving an
organisation’s
effectiveness.”(Cummings and Worley)

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 New Definitions of Organisational
Development
“Organisational development is a body of knowledge and
practice that enhances organisational performance and
individual
development, viewing the organisation as a complex
system of systems that exist within a larger system, each
of which has its own attributes and degrees of
alignment.
Organisational development interventions in these
systems are inclusive methodologies and approaches to
strategic planning, organisation design, leadership
development, change management, performance
management, coaching, diversity, and work/life balance.”
(Matt Minahan, MM & Associates, Silver Spring, Maryland).

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 New Definitions of Organisational
Development

“Cummings and Worley (2002) defined

organisational development as “a system
wide application of behavioural science
knowledge to the planned development,
improvement, and reinforcement of the
strategies, structures and processes that
lead to organisation effectiveness”.

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 Five important factors that
need to be highlighted while
defining organisational
development.

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1. It is planned
change effort: Section
Subtitle

An organisational 2. It involves the total

development system:
programme involves It is related to the change
a systematic system of the organisation
such as a culture change and
diagnosis of the the changes in the rewards
organisation, the system. There may be
development of a tactical efforts which work
strategic plan for with subparts of the
improvement, and organisation but the system
the mobilisation of to be change is total,
resources to carry relatively autonomous
out the effort. organisation.
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 Section
Subtitle

3. It is managed from 4. It is designed to

the top: increased organisation
The top management effectiveness and health:
of the system has a The total organisation, the
personal investment significant subparts, and
in the program and individuals, manage their
its outcomes. They work
actively participate against goals and plans for
in the management achievement of these
of the effort. goals.

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5. Organisational development Section
Subtitle

achieves its goals through planned

interventions using behaviour science
knowledge:

A strategy is developed of intervening

or moving into the existing
organisation and helping its present
ways of work, norms, and values, and
look at alternative ways of working, or
relating, or rewarding.
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 Section
Subtitle

A strategy is developed of intervening or

moving into the existing organisation and
helping its present ways of work, norms, and
values, and look at alternative ways of
working, or relating, or rewarding.

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 1.4 GOALS OF
ORGANISATIONAL
DEVELOPMENT

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 solving atmosphere in the
organisation:

An open and problem solving

atmosphere in an organisation
will not only facilitate the overall
functioning in the organisation
but will also promote
employee satisfaction and
motivation.
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 2. The authority should be
associated with their role,
status, knowledge
and competence:
This goal will help develop a
positive relationship between
superiors and subordinates, thus
creating a conducive
environment in the organisation
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 3. Decision making and sources of
information should be clear:
This goal will help employees have a
clear idea about the functioning of the
organisation, about various
opportunities for career development
and issues and problems existing in the
organisation. This will not only make
employees more aware but will also
promote organisational citizenship
amongst the employees.
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 4. Build trust and values amongst
employees throughout the
organisation:

This will not only enhance the

interpersonal relationship and
communication amongst the
employees but will lead to
development of a positive
organisational culture.
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 5. Create healthy competitive
atmosphere amongst the employees
to maximize collaborative efforts:

Creating and maintaining healthy

competition amongst the employees
not only promotes team work but
will also enhance the overall
functioning of the organisation.

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 6. Develop a reward or promotion
system to motivate the personnel and
increase the performance:

This is one of the most relevant goals of

organisational development as
employee performance is key to
organisational development and in order
to promote maximum performance on
the part of the employees, it is
important to use varied motivational
techniques.
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 7. Improve the effectiveness
of the organisation:

Another important goal of

organisational development is
to use varied techniques and
promote organisational
effectiveness.
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 8. Enhance achievement of the
organisational goals:

Various techniques under

organisational development can
be used to help enhance the
achievement of organisational
goals.

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 1.5 IMPORTANCE OF
ORGANISATIONAL
DEVELOPMENT

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 Profitability, productivity, morale and
quality of work life are of concern to
most organisations because they impact
achievement of organisation goals.
There is an increasing trend to maximize
an organisation’s investment in its
employees. Jobs that previously
required physical dexterity now require
more mental effort. Organisations need
to “work smarter” and apply creative
ideas.

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 The work force has also changed.
Employees expect more from a day’s
work
than simply a day’s pay.
They want challenge, recognition, a
sense of accomplishment, worthwhile
tasks and meaningful relationships with
their managers
and co-workers. When these needs are
not met, performance declines.

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 The effective organisation must be able
to meet today’s and tomorrow’s
challenges.

Adaptability and responsiveness are

essential to survive and thrive.

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 Functions of OD
Consultants
OD consultants custom tailor established
social science theory and methods to
organisations seeking to improve profitability,
productivity, morale and/or quality of work
life.

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 Examples of activities which are facilitated by OD consultants are:
1) Team building
2) Goal Setting
3) Group Facilitation
4) Creative Problem solving
5) Strategic Planning
6) Leadership Development
7) Management Development
8) Career Management
9) Conflict Resolution
10) Developmental Education
11) Interpersonal Communication
12) Human Resources Management
13) Managing Workforce Diversity
14) Organisation Restructuring
15) High Involvement Work Teams
16) Socio technical Systems Design
17) Technical Training
18) Total Quality Management

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 Often described as “change agents,” OD
consultants come from varied
backgrounds
with experience and training in
organisation development, organisation
behaviour,
psychology, education, management
and/or human resources. Many have
advanced
degrees and most have experience in a
variety of organisational settings.

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 There are both internal and external OD
consultants. An internal OD consultant is
a full-time employee with a given
organisation. External consultants may
be selfemployed or on the staff of a
consulting firm. “Externals” work with
one or more
clients contracting for specific projects.

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 Organisation Development (OD)
consultants provide services to improve
organisation effectiveness and/or
individual employee effectiveness. The
purposes
are to increase productivity, work
satisfaction and profit for the client
company

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 Organisation Effectiveness

Consultants apply organisation effectiveness

strategies such as those shown below when
here are needs for assessment, planning,
growth, quality improvement, teamwork and
other organisational changes.

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 1) Action Research : An assessment and
problem solving process aimed at
improved effectiveness for the entire
organisation or specific work units. The
consultant helps the client organisation
identify the strengths and weaknesses
of organisation and management issues
and works with the client in addressing
problem opportunities.

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 2) Conflict Management :
Bringing conflicts to the surface to
discover their roots, developing a
common ground from which to
resolve or better manage conflict.
Consultants serve as facilitator in a
conflict situation or train employees
to better understand and manage
conflict.

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 3) Executive Development :

One-on-one or group developmental

consultation with CEO’s or VP’s to
improve their effectiveness.

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 4) Goal Setting :

Defining and applying concrete

goals as a road map to help an
organisation get where it wants to
go.

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 5) Group Facilitation :

Helping people learn to interact

more effectively at meetings and to
apply group guidelines that foster
open communication, participation
and accomplishment.

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 6) Managing Resistance to Change :

Helping clients identify,

understand, and begin to manage
their resistance to planned
organisational change.

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 7) Organisational Restructuring :

Changing departmental and/or

individual reporting structures,
identifying roles and
responsibilities, redesigning job
functions to assure that the way
work gets done in the organisation
produces excellence in production
and service.
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 8) Project Management :

The general management of specific

work, blending diverse functions
and skills, usually for a fixed time
and aimed at reaching defined
outcomes.

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 9) Self-Directed Work Teams :

Developing work groups to be fully

responsible for creating a well
defined segment of finished work.

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 10) Socio technical Systems Design :

Designing and managing

organisations to emphasise the
relationship between people’s
performance, the workplace
environment and the technology
used to produce goods and services
in order to effect high level
productivity.
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 11) Strategic Planning :

A dynamic process which defines

the organisation’s mission and
vision, sets goals and develops
action steps to help an organisation
focus its present and future
resources toward fulfilling its vision.

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 12) Teambuilding :

Improving how well organisation

members help one another in
activities where they must interact.

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 13) Total Quality Management :

Through work process analysis,

teambuilding, defining quality and
setting measurable standards, the
consultant assists the organisation
in becoming more cost effective,
approach zero-defects and be more
market-driven

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 ORGANISATIONAL
DEVELOMENTAND
ORGANISATIONAL CHANGE

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 Organisational change is equally
significant area that needs to be
focused on in an organisational set
up.
Though both the terms seem to be
similar, they are different to a
greater extent.
This distinction will be clear with
the help of following points.

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 Organisational development applies
to the strategy, structure, and
processes of an entire system, such
as an organisation, a single plant of
a multiplant firm, or a department
or work group.

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 A change program on the other hand
aims at modifying an organisation’s
strategy, for example, it might focus on
how the organisation relates to a wider
environment and on how those
relationships can be improved.
It might include changes both in the
grouping of people to perform tasks
(structure) and in methods of
communicating and solving problems
(process) to support the changes in
strategy
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 Organisational development is
based on behavioural science
knowledge and practice, including
micro concepts such as leadership,
group dynamics, and work design,
and macro approaches such as
strategy, organisation design, and
international relations.

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 Organisational development is
concerned with managing planned
change, but not in the formal sense
typically associated with management
consulting or technological innovation,
which tend to be programmatic and
expert-driven approaches to change,
rather, organisational development is
more an adaptive process for planning
and implementing change than a
blueprint for how things should be done.

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 Organisational development involves
both the creation and the subsequent
reinforcement of change. It moves
beyond the initial efforts to implement a
change
program to a longer-term concern for
stabilizing and institutionalising new
activities
within the organisation.

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 Organisational Change

Organisational change is defined as

change that has significant effects on
the way work is performed by the staff
of an organisation. Organisational
change may be apparent when there is a
gap between how the work area is
operating and how it should be
operating to ensure successful future
growth.
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 The organisation considers that where
organisational change is implemented
correctly the benefits include:
• employee participation
• a greater understanding of the change
• a better informed decision is made
• trust is maintained throughout the
process
• loss of productivity is minimised.

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 It is imperative that the work
area understands that
organisational change is
about allowing employees to
influence the decision maker
through a consultative
process.

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 Leaders and managers
continually make efforts to
accomplish successful and
significant change. It is
inherent in their jobs. Some
are very good at this effort
while others continually
struggle and fail.
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 Managing change and
management are important .
Today, teams and organisations
face rapid change like never
before.
Globalisation has increased the
markets and opportunities for
more growth and revenue.

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 ORGANISATIONAL CULTURE

Organisation culture is the

important factor in any
organisational development. A
good culture of the organisation
makes the organisation effective
and successful.

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 A good culture is also contribute to
implement the effective policy of
an organisation.
Organisation culture means the
prevailing patterns of activities,
interactions norms, sentiments,
feelings, beliefs, attitudes, values,
informal systems and products.

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 Organisational development efforts
focuses on both the formal and the
informal system. The initial
intervention strategy is usually
through the informal system in the
sense that perceptions, attitudes
and feelings are usually the first
data to be confronted.

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 Organisational culture plays an
extremely important role in the
process of organisational development.
It is also initially important to assess
organisational culture before initiating
the process of organisational
development, as organisational culture
will provide the conducive environment
necessary for the successful
implementation of organisational
development.
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 20XX

Thank you!
Group 1