1. Organization Development and Change
Introduction to
Organization Development
Shailaja Karve

2. 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

3. Burke’s Definition of OD
OD is a planned process of
change in an organization’s
culture through the utilization of
behavioral science technology,
research, and theory.

4. French’s Definition of OD
OD refers to a long-range effort
to improve an organization’s
problem-solving capabilities and
its ability to cope with changes in
its external environment with the
help of external or internal
behavioral-scientist consultants.

5. Beckhard’s Definition of OD
OD is an effort:
(1) planned,
(2) organization-wide, and
(3) managed from the top, to
(4) increase organization
effectiveness and health through
(5) planned interventions in the
organization’s “processes,” using
behavioral science knowledge.

6. Beer’s Definition of OD
OD is a system-wide process of data collection,
diagnosis, action planning, intervention, and
evaluation aimed at:
(1) enhancing congruence between organizational
structure, process, strategy, people, and culture;
(2) developing new and creative organizational
solutions; and
(3) developing the organization’s self-renewing
capacity.
It occurs through collaboration of organizational
members working with a change agent using
behavioral science theory, research, and
technology.

7. Cummings Definition:
Organization Development is...
a systemwide application and
transfer of behavioral science
knowledge to the planned
development, improvement, and
reinforcement of the strategies,
structures, and processes that
lead to organization
effectiveness.

8. 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.

9. Distinction between OD from other forms
of 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)

10. Distinction between OD from other forms
of 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

11. Distinction between OD from other forms
of 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

12. Distinction between OD from other forms
of 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

13. Difference between OD & Change
Management (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.

14. Difference between OD & Organization
Change (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 in
3. Improved problem making the organization
solving more developed in the
4. Responsiveness sense implied in OD.
5. Quality of work life
6. Effectiveness

15. Growth & Relevance of OD
Three major trends are shaping
organization
2. Globalization
3. IT
4. Managerial innovation (strategic
HRM, organization design,
proactivity & customer focus,
learning organizations)

16. 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 goals
Therefore a need for OD

17. Five Stems of OD Practice
Laboratory Training
Action Research/Survey Feedback
Current Practice
Normative Approaches
Quality of Work Life
Strategic Change
1950 1960 1970 1980 1990 2000 Today

18. 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
experience
5. The process of group building had potential for
learning that could be transferred to ‘backhome’
situations

19. Laboratory Training (contd..)
 In 1947 NTL was setup in Bethel, Maine
 In 1950s three trends emerged
3. Emergence of regional labs.
4. Converting summer program sessions to year
round sessions
5. 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

20. 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.

21. 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).

22. 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.

23. Normative Approaches (Participative
Management (contd..)
 Likert applied system 4 mgt. to organizations
using survey feedback process with the foll. Steps
2. Employees completing the form of ‘profile of
organizational characteristics’ about both the
present & ideal conditions of six organizational
features: leadership, motivation, communication,
decisions, goals & control
3. Data was fed back to different work groups within
the organization
4. The discrepancy between the present & the ideal
situation was examined using S4 as the ideal
benchmark
5. Action plans were generated to move the
organization toward S4 condition.

24. 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

25. 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)

26. Strategic Change
 Recent influence
 Emphasis on competitive
strategy,finance & marketing,team
buliding & action research

27. 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.