Organisation Development

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Organisation Development, an methodology who help companies to bring togheter managers and employees.

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  • Front Page
  • Organisation Development

    1. 1. ORGANIZATION DEVELOPMENT The New Approach to change
    2. 2. What is OD <ul><li>A series of planned processes by which human resources are identified, utilized, and developed in ways that strengthen organizational effectiveness by increasing problem-solving capabilities and planning </li></ul>OD IMPLIES: <ul><li>planning </li></ul><ul><li>identification and use of human resources </li></ul><ul><li>strengthening of organizational effectiveness </li></ul>
    3. 3. How does OD affect top management? <ul><li>It is long-range in perspective </li></ul><ul><li>Requests support from the top managers, because they control resources and rewards </li></ul><ul><li>Expands their ideas, beliefs, and behavior </li></ul>
    4. 4. How does OD affect employees? <ul><li>diagnosing problems </li></ul><ul><li>considering solutions </li></ul><ul><li>selecting a solution </li></ul><ul><li>identifying change objectives </li></ul><ul><li>implementing planned change </li></ul><ul><li>evaluating results </li></ul>
    5. 5. <ul><li>OD brings </li></ul><ul><li>MANAGERS </li></ul><ul><li>and </li></ul><ul><li>EMPLOYEES together </li></ul>holding them all responsible for the success and failure of a change effort.
    6. 6. Key terms in OD <ul><li>CHANGE = a departure from the status quo </li></ul><ul><li>Alpha change – constant progress </li></ul><ul><li>Beta change – variable progress </li></ul><ul><li>Gamma change – variable progress combined with a radical change = transformational change </li></ul><ul><li>CHANGE AGENT = the person responsible for beginning and maintaining a change effort </li></ul><ul><li>CLIENT = organization, group, individual whose interests the change agent primarily servers </li></ul><ul><li>CULTURE = basic assumption and beliefs shared by the members of an organization </li></ul><ul><li>INTERVENTION = a change effort </li></ul>
    7. 7. <ul><li>ORGANIZATIONAL DEVELOPMENT ( different from OD ) = any effort to improve an organization </li></ul><ul><li>SPONSOR = one who underwrites, legitimizes and champions a change effort or OD intervention </li></ul><ul><li>STAKEHOLDER = one who has an interest in an OD intervention </li></ul><ul><li>SUBSYSTEM = part of a system (e.g. work units, department, divisions, activities, processes, structures) </li></ul><ul><li>SYSTEM = inputs, transformation processes, outputs </li></ul>Key terms in OD
    8. 8. Philosophical Influence on the OD: Schools of Management Thought <ul><li>THE CLASSICAL SCHOOL </li></ul><ul><li>Assumptions </li></ul><ul><li>Work is inherently distasteful to most people </li></ul><ul><li>What workers do is less important than what they earn for doing it </li></ul><ul><li>Policies </li></ul><ul><li>The manager’s basic task is to supervise and closely control subordinates. </li></ul><ul><li>The manager must break down tasks into simple, repetitive, easily-learned operations. </li></ul><ul><li>THE HUMAN RESOURCES SCHOOL </li></ul><ul><li>Assumptions </li></ul><ul><li>Work is not inherently distasteful. People want to contribute to meaningful goals which they have helped establish. </li></ul><ul><li>Most people can exercise far more creative, responsible self-direction and self-control than their present jobs demand. </li></ul><ul><li>Policies </li></ul><ul><li>The manager’s basic task is to coach and to make use of “untapped” human resources. </li></ul><ul><li>The manager must create an environment in which all members may contribute to the limits of their abilities. </li></ul><ul><li>THE HUMAN RELATIONS SCHOOL </li></ul><ul><li>Assumptions </li></ul><ul><li>People want to feel useful and important. </li></ul><ul><li>People desire to belong and to be recognized as individuals. </li></ul><ul><li>Policies </li></ul><ul><li>The manager’s basic task is to make each worker feel useful and important. </li></ul><ul><li>The manager should keep subordinates informed and listen to their objections to the manager’s plans. </li></ul>
    9. 9. <ul><li>THE CLASSICAL SCHOOL </li></ul><ul><li>The manager must establish work routines and procedures and enforce these firmly and fairly. </li></ul><ul><li>Expectations </li></ul><ul><li>People can tolerate work if the pay is decent ant the boss is fair. </li></ul><ul><li>If tasks are simple enough and people are closely controlled, they will produce up to standards. </li></ul><ul><li>THE HUMAN RELATIONS SCHOOL </li></ul><ul><li>The manager should allow subordinates to exercise some self-directions and self-control on routine matters. </li></ul><ul><li>Expectations </li></ul><ul><li>Sharing information with subordinates and involving them in routing decisions will satisfy their basic needs to belong and feel important. </li></ul><ul><li>Satisfying these needs will improve morale and reduce resistance to formal authority; subordinates will “willingly cooperate”. </li></ul><ul><li>THE HUMAN RESOURCES SCHOOL </li></ul><ul><li>The manager must encourage full participation on important matters, continually broadening subordinate self-direction and control. </li></ul><ul><li>Expectations </li></ul><ul><li>Expanding subordinate influence, self-direction, and self-control will lead to direct improvements in operating efficiency. </li></ul><ul><li>Work satisfaction may improve as a “by-product” of subordinates’ making full use of their resources. </li></ul>Source: Miles, R.E.(1975), Theories of Management: Implications for Organizational Behavior and Development , New York: McGraw-Hill, p. 35.
    10. 10. Methodological Influences to OD <ul><li>Laboratory training </li></ul><ul><li>Survey Research and Feedback – Rensis Likert </li></ul>Likert’s Four Types of Organizations <ul><li>System 1: Exploitive - Authoritarian </li></ul><ul><li>Dogmatic leadership </li></ul><ul><li>Manipulative use of rewards </li></ul><ul><li>Top-down communication </li></ul><ul><li>System 2: Benevolent - Authoritative </li></ul><ul><li>Parental approach of management </li></ul><ul><li>System 3: Consultative </li></ul><ul><li>Management listens to employees, but reserves the right to male decisions </li></ul><ul><li>Some reliance on intrinsic rewards; most rewards are based on extrinsic (money rewards) </li></ul><ul><li>System 4: Participative </li></ul><ul><li>Leadership based in influence </li></ul><ul><li>Intrinsic rewards predominate </li></ul><ul><li>Two-way communication </li></ul>
    11. 11. Newer contributions to the development of OD <ul><li>TQM = Total Quality Management </li></ul><ul><li>drives attention on the creative human potential and on people’s ability to improve their work </li></ul><ul><li>BPR = Business Process Reengineering </li></ul><ul><li>brings interest to the radical organizational change and restructuring </li></ul>
    12. 12. Human Relations Fields 1. HR Development <ul><li>Training </li></ul><ul><li>Education </li></ul><ul><li>Development </li></ul>Common Goal: to bring about “the possibility of performance improvement and/of personal growth” 2. HR Management <ul><li>Recruitment </li></ul><ul><li>Selection </li></ul><ul><li>Placement </li></ul><ul><li>Compensation </li></ul><ul><li>Benefits </li></ul><ul><li>Appraisal </li></ul><ul><li>HR information systems </li></ul>Common Goal: to increase organizational productivity by using the talents of its current employee 3. HR Environment <ul><li>Organization Development </li></ul><ul><li>Job redesigning </li></ul>Common Goal: to improve the work environment through planned, long-term, and group-oriented change in organizational structures or interpersonal relations
    13. 13. The Human Relations Wheel (McLagan, 1989) HR Development represents the integrated use of: TRAINING AND DEVELOPMENT ORGANIZATION DEVELOPMENT CAREER DEVELOPMENT TO IMPROVE INDIVIDUAL, GROUP AND ORGANIZATIONAL EFFECTIVENESS
    14. 14. Knowledge Requirements for OD specialists <ul><li>Organization Development </li></ul><ul><li>HR planning </li></ul><ul><li>Training and development </li></ul><ul><li>Employment and personnel practices </li></ul><ul><li>Compensation and benefits </li></ul><ul><li>Personnel research </li></ul><ul><li>Collective bargaining </li></ul><ul><li>HR information system </li></ul><ul><li>Health and safety </li></ul>
    15. 15. OD can only intervene in situations of: <ul><li>Need for change felt at the top of the management </li></ul><ul><li>Problems in the work environment </li></ul><ul><li>Managers committed to long-term improvement </li></ul><ul><li>Managers and employees are all willing to listen to the OD’s key assumptions formulated by internal or external consultants </li></ul><ul><li>Trust and cooperation </li></ul><ul><li>Top managers are willing to provide all necessary resources for expertise </li></ul>
    16. 16. Alternatives to OD <ul><li>THE LEGALISTIC APPROACH – intervenes when there are differences between the legal standards and the organization’s practices </li></ul><ul><li>THE DIALECTIC APPROACH – public debate between two persons or groups analyzing the same problem from two different perspectives </li></ul><ul><li>THE LEADERSHIP CHANGE APPROACH – the temporary change of the leader </li></ul><ul><li>4. THE PERSUASIVE APPROACH – convincing people that change is needed </li></ul><ul><li>5. THE COERCITIVE APPROACH – imposing change by force; it is generally counterproductive and it is considered as a last alternative </li></ul>
    17. 17. BRAS OV Str. Zizinului bl. 9, ap. 3 Tel: 0742 060716 [email_address] SIBIU Str. Some s ului nr.7 Tel: 0723 774455 office @analytics.ro www.analytics.ro | www.teamevent.ro

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