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Organisational development


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Organisational development

  1. 1. ORGANIZATIONAL DEVELOPMENT • Books to be Read: 1. Organization Development – French & Bell 2. Organization Development – V. G. Kondalkar 3. Organization Development & Change – Cummings & Worley 4. Organizational Development & Transformation- French, Bell & Zawacki By Isha Aggarwal
  2. 2. ORGANIZATIONAL DEVELOPMENT Organizational Development or O.D. is a planned effort initiated by process specialists to help an organization develop its diagnostic skills, coping capabilities, linkage strategies( in the form of temporary and semi-permanent systems) and a culture of mutuality. • A planned effort – thinking and planning • initiated by process specialists • Diagnostic skills- data collection-overtime • Coping capabilities-problem-solving,confront and cope • Linking strategies-Indl.& Organl. Goals • Culture of Mutuality-OCTAPACE-fostering of certain values and open and proactive systems viz. openness,confrontation, trust, authenticity,pro-activeness, autonomy, collaboration and experimentation.
  3. 3. Definition of Edgar Schein An organization is the planned coordination of the activities of a number of people for the achievement of some common explicit purpose or goals through the division of labour and function, and through a hierarchy of authority and responsibility. Development is the act, process, result or state of being developed-which in turn means to advance, to promote the growth of, to evolve the possibility of, to further, to improve or to enhance something Two elements stand out viz. (a)Development may be an act, process or an end state (b)Development means bettering something O. D. is the act, process or result of furthering,advancing, or promoting the growth of an organization
  4. 4. The O. D. Approach to Change treats the organization as a system. A system is an orderly group of logically related parts, principles and beliefs. Alternatively, it is a grouping or arrangement that relate or interact with each other in such a way as to form a whole. Thus this approach has the following characteristics: (a) Total view not a limited view (b) Relationship between the Orgn. and the environment and the internal dynamics of the Orgn. © Teams-temporary, semi-permanent and permanent-continous improvement (d) Inter-personal Communication (e) Individuals- self awareness and self acceptance-developing skills, knowledge and ability of individuals
  5. 5. Inter-teams-inter face-manage conflicts, developing collaboration, attainment of goals. Organization-stable entity which sets the goals. To carry on the efforts begun by the outside consultant/ expert through an internal O. D. Facilitator. From a Behavioural science perspective: „O.D. is a long –range effort to improve an Orgn‟s problem solving and renewal processes, particularly through a more effective and collaborative management of organizational culture with special emphasis on the culture of formal work teams- with the assistance of a change agent, or catalyst, and the use of theory and technology of applied behavioural science including Action Research.‟ Renewal is the process of initiating , creating and confronting needed changes to make it possible for organizations to become more viable, to adapt to new conditions, to solve problems, to learn from experiences and to move towards greater maturity.
  6. 6. ORGANISATIONAL DEVELOPMENT O. D. is a systemic and systematic change effort, using behavioural science knowledge and skill, to transform an orgn. to a new state. O.D. is system-wide and value-based collaborative process of applying behavioural science knowledge to the adaptive development , improvement and reinforcement of such organizational features as the strategies, structures, processes, people and cultures that lead to organizational effectiveness The characteristics of O. D. are: 1. It is a system-wise process 2. It is value-based 3. It is collaborative 4. It is based on behavioural science knowledge 5. It is concerned with strategies, structures, processes, people and culture 6. It is about organizational effectiveness
  7. 7. ORGANIZATIONAL DEVELOPMENT Organizational Development is a long-term effort, led and supported by top management, to improve an organizational visioning, empowerment, learning, and problem-solving processes,through an ongoing, collaborative management of organizational culture- with special emphasis on the culture of intact work teams and other team configurations-using the consultant-facilitator role and the theory and technology of applied behavioural science, including action research. The important aspects include: (a) Long-term effort (b) Led and supported by top management (c) Visioning processes-viable, coherent and shared picture (d) Empowerment processes (e) Learning processes (f) Problem solving processes (g) Ongoing collaborative management of the organizational culture (h) Intact work teams and other configurations (i) Cross- functional teams (j) Consultant- facilitator role (k) Theory and technology of applied behavioural science (l) Action research
  8. 8. “Organization transformation can occur in response to or in anticipation of major changes in the organization‟s environment or technology. In addition these changes are often associated with significant alterations in the firm‟s business strategy, which, in turn, may require modifying corporate culture as well as internal structures and processes to support the new direction. Such fundamental change entails new paradigm for organizing and managing organizations. It involves qualitatively different ways of perceiving, thinking, and behaving in the organizations.” Beer (1980), the aim of OD are (1) enhancing congruence between organizational structure, processes, strategy, people, and culture; (2) developing new and creative organizational solutions; and (3) developing the organization‟s self-renewing capacity.
  9. 9. OD is a system wide application of behavioural science knowledge to the planned development and re-enforcement of organizational strategies, structures, and processes for improving an organization‟s effectiveness (Cummings and Worley, 1993). “Organizational Development is a long-term behavioural philosophy initiated by the top management. It relates to use of latest technologies and organizational processes to affect planned change by establishing cultural framework based on vision, empowerment and employee well being leading to attainment of quality of work life and organizational effectiveness thus creating a learned organization.”
  10. 10. OBJECTIVES OF ORGANIZATIONAL DEVELOPMENT PROGRAMME 1.Individual and group development. 2.Development of organization culture and processes by constant interaction between members irrespective of levels of hierarchy. 3.Inculcating team spirit. 4.Empowerment of social side of employees. 5.Focus of value development. Contd..
  11. 11. 6. Employee participation, problem-solving and decision- making at various levels. 7. Evaluate present systems and introduction of new systems thereby achieving total system change if required. 8. Transformation and achievement of competitive edge of the organization. 9. Achieve organization growth by total human inputs by way of research and development, innovations, creativity and exploiting human talent. 10.Behaviour modification and self managed team as the basic unit of an organization.
  12. 12. Implications: 1.For Individuals a) Most individuals believe in their personal growth. Even today, training and development, promotion to the next higher position dominates the organization philosophy. b) Majority of the people are desirous of making greater contributions to the organizations they are serving. Achievements of organizational goals are however, subject to limitations or environmental constraints. It is for the organizations to tap the skills that are available in abundance. Contd..
  13. 13. This leads to adopt the following organization strategy for development: • Ask questions to resolve doubts. • Listen to superior‟s advice. • Support employees in their venture. • Accept challenge. • Leaders to encourage creativity and promote risk taking. • Give additional responsibility to subordinates. • Set high standards of quality. • Empower employees. • Initiate suitable reward system that should be compatible, if not more than the industry norms.
  14. 14. 2. For Groups a) One of the most important factors in the organization is the „work group‟ around whom the organization functions. This includes the peer group and the leader (boss) b) More people prefer to be part of the group because the group accepts them. c) Most people are capable of making higher contributions to the group‟s effectiveness. Contd..
  15. 15. Following strategy is required to be adopted for group development based on the above assumptions: a) Invest in training and development of the group. Money and time spent on this is an investment for the organization. Leaders should also invest in development of skills and thus help create a position organizational climate. b) Let the team flourish. Teams are the best approach to get the work done. Apart from the above, teams enjoy emotional and job satisfaction when they work in groups. c) Leaders should adopt team leadership style and not autocratic leadership style. To do this, jobs should be allotted to the team and not to the individual. Contd..
  16. 16. d) It is not possible for one individual (leader) to perform both, the leadership and maintenance functions. It is therefore necessary for team members to assist leader in performance of his duties. e) Group should be trained in conflict management, stress management, group decision-making, collaboration, and effective interpersonal communication. This will improve organizational effectiveness. Empowerment is the corner stone of the successful organizations. f) Leaders should pay particular attention to the feelings of the employees. It should be understood that suppressed feeling and attitudes adversely affect problem-solving, personal growth and job satisfaction. g) Development of group cohesiveness.
  17. 17. 3. For Organizations a) Create learning organization culture. b) Adopt win-win strategy for sustained growth. c) Create cooperative dynamics rather than competitive organizational dynamics in the organization. d) Needs and aspirations of the employees in the organization must be met. This leads to greater participation of the employees. Organizations should adopt developmental outlook and seek opportunities in which people can experience personal and professional growth. Such orientation creates a self-fulfilling prophecy. Contd..
  18. 18. f) People must be treated with due respect and considered important. The credit of success must be given to the employees unconditionally. g) Promote organizational citizenship. 4. It is possible to create organizations that are humane, democratic and empowering on one hand and high performing in terms of productivity, quality of output, profitability, and growth on the other. It is the responsibility of every entrepreneur to ensure that the needs of the society are met.
  19. 19. ORGANIZATIONAL DEVELOPMENT Top values associated with O. D. today: 1. Increasing effectiveness and efficiency 2. Creating openness in communication 3. Empowering employees to act 4. Enhancing productivity 5. Promoting organizational participation Values considered to be most important: 1. Empowering employees to act 2. Creating openness in communication 3. Facilitating ownership of process and outcome 4. Promoting a culture of collaboration 5. Promoting inquiry and continuous learning
  20. 20. ORGANISATIONAL DEVELOPMENT Organizational Development is planned change in the organizational context. In this context of change it is necessary to refer to Kurt Lewin He has provided two principle ideas viz. 1. What is occurring at any point of time is a resultant in a field of opposing forces e. g. production level at a particular point of time is the resultant equilibrium of some forces pushing towards higher levels of production and other forces pushing towards lower levels of production. The production levels tend to remain at the same levels as the field of forces remains constant. Another example could be the level of morale. 2. The second contribution is the change itself. He has described a three- stage process viz. (a Unfreezing the old behaviour (b)Moving to a new level of behaviour (c )Refreezing the behavior at the new level
  21. 21. ORGANIZATIONAL DEVELOPMENT Kurt Lewin‟s Three –Stage Model : as modified by Lippitt & others 1. Developing a need for change. (Lewin‟s unfreezing phase) 2. Establishing a change relationship. In this phase a client system in need of help and a change agent from outside the system establish a working relationship 3. Clarifying or diagnosing the clients system‟s problem 4. Examining alternative routes and goals; establishing goals and intentions of actions 5. Transforming intentions into actual change efforts.Phases 3, 4 and 5 correspond to Lewin‟s moving phase 6. Generalizing and stabilizing change. This corresponds to Lewin‟s refreezing phase 7. Achieving a terminal relationship, that is, terminating the client- consultant relationship
  22. 22. ORGANIZATIONAL DEVELOPMENT The Burke-Litwin Model of Organizational Change (a) First-order change- transactional, evolutionary, adaptive, incremental, or continuous change (b) Second-order change- transformational, revolutionary, radical, or discontinuous change n.b.. O. D. programs are directed toward both first-order and second order change with an increasing emphasis on second –order transformational change. First-Order Second-Order 1. Structure 1. Mission and Strategy 2. Management Practices 2. Leadership 3. Systems 3. Organizational Culture (Transactional) (Transformational) Distinguishing Organizational Climate and Organizational Culture. Climate- people‟s perceptions and attitudes about the organization Culture- deep seated assumptions about values and beliefs that are enduring, often unconscious and difficult to change