Unit 4

MEANING
 Organisational Development is a process that helps organisations improve
their performance and achieve their goals.
 It aims at improving the people side of the organisation by plant change

 It focuses on people relationship, process, norms, organizational structure

and improving the very culture of the organization.

Definition
According to Warner Burke,” Organization development is a plant process of
change in an organisation’s culture through the utilization of behavioural
science technology, research and theory”
 Enhancing organizational performance: It interventions aim to improve the
performance of an organization by enhancing productivity, quality, and
efficiency. This can help organizations achieve their goals more effectively
and efficiently.

 Encouraging collaboration: OD interventions encourage teamwork and

collaboration among employees, managers, and stakeholders. This can
lead to better communication, problem-solving, and decision-making,
which can improve the organization’s overall effectiveness.
 PROCESS OF ORGANISATION
DEVELOPMENT
1.Initial Diagnosis of the Problem
 In the first step, the management should try to find out an overall view of the situation to

find the real problem and evaluate the degree of change needed to meet the requirements.
 the consultants will meet various persons in the organisation and interact with them to

collect some information.

2. Data Collection
 In this stage, the consultant will make the surveys through various methods to determine

the climate of the organisation and the behavioural problems of the employees.
Collect some answers to questions such as:
 What specific job environment contributes most to their job effectiveness?

 What kind of work conditions interferes with their job effectiveness?

 What changes would they like to make in the working process of the organisation?
3. Data Feedback and Confrontation
 The data which has been collected in the second step of Organizational

Development Process will be given to the work groups, who will be assigned the
job of reviewing the data.
 Any areas of disagreement or conflicts will be mediated among themselves only

and priorities will be established for change.

4. Planning Strategy for Change

 In this stage, the consultant will recommend the strategy for change. The

attempt will be to transform diagnosis of the problem into a proper action plan
involving the overall goals for change, determination of basic approach for
achieving these goals and the sequence of detailed steps for implementing the
approach.
5.Intervening in the System
 Intervening in the system refers to the planned programmed activities during an

Organizational Development Process.

 These planned activities bring certain changes in the system, which is the basic

objective of Organizational Development Process.

 There may be various ways through which external consultant intervene in the

system such as education and laboratory training, process consultation, team

development etc.
6. Team Building
 During the entire Organizational Development Process, the consultant

encourages the groups to examine how they work together.

 The consultant will educate them about the value of free

communication and trust as essentials, for group functioning as well

as problem solving methodology.
 The consultant can have team managers and their subordinates to

work together as a team in Organizational Development sessions to

further encourage team building.
 Following the development of small groups, there may be

development among larger groups comprising several teams with

diverse work profiles.
7.Evaluation
 Organizational Development is a very long process. So, there is a great

need for careful monitoring to get precise feedback regarding what is going
on after the programme starts. This will help in making suitable adjustments
whenever necessary.
 For evaluation of Organizational Development programme, the use of

critique sessions, appraisal of change efforts and comparison of pre and

post training behavioural patterns are quite effective.
GOAL/OBJECTIVES OF OD
 Ongoing improvement. Changing company culture to view new strategies as a positive
growth opportunity allows for ongoing improvement and encourages employees to become
more open to change and new ideas. New strategies are introduced systematically through
planning, implementation, evaluation, improvement, and monitoring.

 Better or increased communication. Organizational development that leads to increased

feedback and interaction in the organization aligns employees with the company’s vision.
Employees feel that they have more ownership in the company’s mission and may be
more motivated as a result.

 Employee development. In today’s business world, employees must constantly adapt to

changing products, platforms, and environments. Employee development comprises
training and work process improvements that help everyone keep up with shifting
demands.
 Product and service improvement. Organizational development leads to
innovation, which can help improve products and services. This innovation
often comes as the result of intensive market research and analysis.

 Increased profit. Organizational development helps increase profits by

optimizing communication, employee processes, and products or services.
Each serves to increase a company’s bottom line.
ORGANISATIONAL DEVELOPMENT PROGRAMME
 An organisational development programme uses employee
training to improve organisational functioning and help
employees develop their skills so they can be a greater
benefit to the organisation.
 Some characteristics of a successful organisational

development programme
1. Training aligned to goals

2. Leadership committed to the process

3. Communication is effective at all levels

4. High quality of training and coaching

5. Taking a long term view.

ORGANIZATIONAL LEARNING
 It is the process by which an organization improves itself over time
through gaining experience and using that experience to create
knowledge. The knowledge created is then transferred within the
organization.
 There are three key processes that occur in organizational learning:

 Knowledge Creation: Organizations learn by gaining experience and

using that experience to create new knowledge.

 Knowledge Retention: Ensuring that newly acquired knowledge is

stored and accessible within the organization.

 Knowledge Transfer: Sharing knowledge and experience across

different levels and departments within the organization.

IMPORTANCE OF ORGANIZATIONAL LEARNING
 Increased employee job satisfaction
 Lower turnover rates

 Increased productivity, profits and efficiency

 Developing leaders at all levels

 Enhanced adaptability throughout the organization

OD INTERVENTION
 Organizational development interventions are the programs
and processes designed to solve a specific problem. The
purpose of these interventions is to improve an organization’s
efficiency and help leaders manage more effectively.

 Definition
OD intervention is a sequence of activities actions and events
intended to help an organisation improve its performance
and effectiveness.
Rober Zawacki
OD INTERVENTIONS EXAMPLES
 Microsoft relied on OD interventions aimed at behavioural changes and operational
changes.

 Cisco initiated change through substantial structural interventions, statistical evaluation

interventions and process interventions. It also focuses on CSR initiatives.

 Dell focused on six sigma as an OD intervention for zero defects.

 Hyundai and Toyota focus on cultural interventions and quality management systems.

 Wipro adopted for internal organizational restructuring to meet customer specific needs.

 ONGC relies on succession planning, employee participation, training, organizational

remodeling and climate surveys as OD interventions.
CATEGORIES
Human Resource Management (HRM) Interventions:
 These focus on areas like performance management, talent

development, and employee well-being. Examples include:

 Performance management systems

 Talent development programs

 Employee engagement initiatives

Strategic change interventions

 Through mergers, restructurings, and transformational changes,

strategic change interventions combine two or more organizations.

Human process interventions
 These interventions focus on the dynamics of group performance and

interpersonal relationships.
 They can be implemented to modify how an individual, such as a manager,

communicates with staff members or even how staff members communicate

with one another.

Techno-structural interventions
 These interventions were developed in response to the organization

systems’ successful implementation of innovations.

 To do that, it is necessary to assess which technologies should be used as

well as to ensure that staff members are qualified to use them.

OBJECTIVES OF OD INTERVENTION
 Improve work
 Develop leadership skills

 Enhance communication flow

 Build trust to create a positive workplace culture

 Reduce workplace conflict

POWER POLITICS AND ETHICS IN OD
 All three of these factors interrelate and the dynamics of the
relationships each has with the other will create varying
effects on organizational culture.
 Power is “the capacity to influence others who are in a state

of dependence”
 Power is the ability to influence others, and it can stem from

various sources like legitimate authority, reward power,

coercive power, expert knowledge, or referent power.
 Power can be used constructively to promote organizational

goals or destructively for personal gain. Ethical use of power

involves transparency, fairness, and respect for others.
POLITICS IN OD
Organizational politics refers to the activities individuals or
groups engage in to acquire, increase, and wield power to
influence decisions and outcomes.
 Positive and Negative Aspects of politics

Politics can be a force for positive change, facilitating

collaboration and resource allocation. However, it can also lead
to conflict, backstabbing, and unethical behavior.
 Managing Politics in organisation

Open communication, transparency, and clear decision-making

processes can help mitigate the negative impacts of politics.
ETHICS IN OD:
Definition:
 Ethics in OD involves establishing and upholding moral

principles and values that guide the actions of OD

practitioners and the organization as a whole.

 Importance in OD:
 Ethical behavior is essential for building trust, fostering

collaboration, and achieving sustainable organizational

change.