Organization Development and Change Introduction to Organization Development Shailaja Karve
Learning Objectives To provide a definition of Organization Development (OD) To distinguish OD and planned change from other forms of organization change To describe the historical development of OD
Burke’s Definition of OD OD is a planned process of change in an organization’sculture through the utilization of behavioral science technology, research, and theory.
French’s Definition of OD OD refers to a long-range effort to improve an organization’s problem-solving capabilities andits ability to cope with changes inits external environment with the help of external or internal behavioral-scientist consultants.
Beckhard’s Definition of ODOD is an effort: (1) planned, (2) organization-wide, and(3) managed from the top, to (4) increase organizationeffectiveness and health through (5) planned interventions in theorganization’s “processes,” usingbehavioral science knowledge.
Beer’s Definition of ODOD is a system-wide process of data collection,diagnosis, action planning, intervention, andevaluation aimed at: (1) enhancing congruence between organizationalstructure, process, strategy, people, and culture;(2) developing new and creative organizationalsolutions; and(3) developing the organization’s self-renewingcapacity.It occurs through collaboration of organizationalmembers working with a change agent usingbehavioral science theory, research, andtechnology.
Cummings Definition:Organization Development is...a systemwide application andtransfer of behavioral scienceknowledge to the planneddevelopment, improvement, andreinforcement of the strategies,structures, and processes thatlead to organizationeffectiveness.
Distinction between OD from other forms of Organization Change(consulting, technological innovation, operations management,T&D, & Change mgt. OD applies to Technological strategy, structure innovation, & processes of an operations entire system management, T&D (dept., SBU, or focus on one or organization in few aspects of the totality) system. The attention is limited to product, process or service delivery systems.
Distinction between OD from other formsof Organization Change (contd..) OD is based on Focus on eco, behavioral Sc. financial & Knowledge (eg. technical aspects Micro variables – and neglect the leadership, group. personal and social dynamics, work characteristics of design & macro the system. variables– strategy, org. design , international relations)
Distinction between OD from other formsof Organization Change (contd..) OD is concerned Other types of with planned changes are more chance which is programmatic, adaptive in nature expert driven & & undergoes having a blue print revisions as new as to how things information comes are to be done in
Distinction between OD from other formsof Organization Change (contd..) OD involves the This initiative is creation & not found in other subsequent change initiatives reinforcement of (except T&D) change which do not It not only institutionalize implements change change but also stabilizes and institutionalizes change
Distinction between OD from other formsof Organization Change (contd..) OD aims at improving Mgt consulting organization focuses only on effectiveness financial performance, It is based on two T&D only on individual assumptions effectiveness 1). An effective organization is able to solve its own problems 2). An effective organization has both high performance (financial returns, quality products/services, continuous improvement) and high quality of work life
Difference between OD & ChangeManagement (contd..) OD has a behavioral Change mgt. is more science foundation focused on values of which supports values economic potential & of human potential, the creation of participation & development competitive advantage OD is concerned with It does not necessarily transfer of knowledge require the transfer of & skills to be able to these skills manage change in All OD involves future change mgt. but change mgt. may not involve OD.
Difference between OD & OrganizationChange (contd..) OD can be applied to Organization change is managing more broadly focused & organizational change can apply to any kind of in such a way that KSAs change including are transferred to build technical & managerial the organizations innovations, org. capability to achieve decline, or evolution of goals & solve problems the system over time. The aim of OD is to These changes may of achieve may not be directed in3. Improved problem making the organization solving more developed in the4. Responsiveness sense implied in OD.5. Quality of work life6. Effectiveness
Growth & Relevance of ODThree major trends are shaping organization2. Globalization3. IT4. Managerial innovation (strategic HRM, organization design, proactivity & customer focus, learning organizations)
Why OD in Indian Settings With the opening of economy intense competition from internal & external corporate Indian minds are less systems-driven & more people & relationship driven Indian mindsets are tradition bound, fatalistic and resistant to change Tendency to work for short term than long term goalsTherefore a need for OD
Five Stems of OD Practice Laboratory Training Action Research/Survey Feedback Current Practice Normative Approaches Quality of Work Life Strategic Change1950 1960 1970 1980 1990 2000 Today
Laboratory Training Known as T-groups & defined as a small unstructured group in which participants learn from their own interactions & evolving dynamics about issues like interpersonal relations, personal growth, leadership & group dynamics Began with Lewin & asso. in MIT studying community interrelations of American Jews Results showed the following.4. Feedback from group interaction was rich learning experience5. The process of group building had potential for learning that could be transferred to ‘backhome’ situations
Laboratory Training (contd..) In 1947 NTL was setup in Bethel, Maine In 1950s three trends emerged3. Emergence of regional labs.4. Converting summer program sessions to year round sessions5. Expansion of t-groups to business & industry with NTL members contributing significantly (McGregor-Union Carbide, Shephard & Blake in Esso Standard Oil now Exxon, McGregor & Beckhard at General Mills) Application of T group was later called team building exercises
Action Research/Survey Feedback Began in 1940s, major work by Lewin, Collier & Whyte Research needed to be closely linked to action if organization members were to use it to manage change A collaborative effort was initiated between organization members & social scientists to collect research data about organization’s functioning, to analyze it for causes & to devise & implement solutions. After implementation further data was needed to assess the results & thus the cycle of data collection & assessment continued. Major researches in this field- overcoming resistance to change (Coch & French) & participative mgt. as a means of getting employees involved in planning & managing change.
Action Research/Survey Feedback(contd..) The chief point of action research was systematic collection of survey data that was fed back to the client organization. After Lewin, major contribution by Likert (measurement of attitudes, creation of Likert-type scale).
Normative Approaches(Participative Management ) Based on the belief that human relations approach was the best way to manage organizations It was exemplified in the research that associated Likert’s participative management (system 4) style with organizational effectiveness The four types of management systems are as follows¡ Exploitative authoritative (S1) autocratic, top down, carrot & stick, resulting in mediocre performance¡ Benevolent authoritative (S2) mgt. little paternalistic, employees allowed a little more interaction & freedom in decision making but within limits¡ Consultative (S3) increased employee interaction in decision making but mgt. still makes the final decision.productivity good, employees moderately satisfied.¡ Participative group (S4) fosters high involvement, commumnication laterally & vertically, work groups involved in goal setting, decision making & appraisal.
Normative Approaches (ParticipativeManagement (contd..) Likert applied system 4 mgt. to organizations using survey feedback process with the foll. Steps2. Employees completing the form of ‘profile of organizational characteristics’ about both the present & ideal conditions of six organizational features: leadership, motivation, communication, decisions, goals & control3. Data was fed back to different work groups within the organization4. The discrepancy between the present & the ideal situation was examined using S4 as the ideal benchmark5. Action plans were generated to move the organization toward S4 condition.
Productivity & Quality of Work Life(QWL) The impact on OD took place in two phases In phase I the movement began in Europe (1950) & US (1960) Based on the works of Eric Trist et al. at Tavistock Institute of Human Relations, London Developed work designs aimed at integrating technology & people. Involved joint participation of union & management
Productivity & Quality of Work Life(QWL) contd… Phase II began in 1979 Chief reason was international competition faced by US at home & abroad Low cost high quality foreign goods (japanese) & Japanese management expanded the initial focus from work design to reward, management styles, work settings Led to the rise of quality circles & TQM Now emphasis has shifted from TQM to employee involvement (EI) to employee empowerment (power to the lower levels)
Strategic Change Recent influence Emphasis on competitive strategy,finance & marketing,team buliding & action research
Analysis Facts. Problems: Macro, Micro. Causes of Problems Macro, Micro. Implications of Problems Macro, Micro. Manifestations of Problems Macro, Micro. Systems Affected (Structural, Psychosocial, Technical, Managerial, Goals & Vision). Systems Affected (Individual, Group, Organization) Alternatives Macro, Micro. Recommended Interventions. Anticipated outcomes on Systems at Macro & Micro level.